March 17, 2017
Washington, D.C. Trip - April 25-27, 2017
Register Today for this Great Opportunity!
Join the MBA for the 2017 MBA Washington Visit. Head to Washington for another great opportunity to get involved in the political process and network with fellow bankers. While in Washington, you will receive informational briefings from the FDIC, CFPB, Treasury Department and the ABA.
You will have the opportunity to meet with and discuss important banking issues and other hot topics with Minnesota's Congressional Delegation and U.S. Senators.
Attendees must make their own hotel reservations soon! The Mayflower Hotel in Washington, D.C., (202-347-3000 or 800-468-3571) is holding a block of rooms for the "Minnesota Bankers" until April 10, 2017. Click here to make your room reservations online. Click here for a printable registration form.
Now is the time to head to Washington, D.C., and make sure your voice is heard! After eight years, there is a new Administration and we have the opportunity to make some changes. There has never been a time when your involvement has been needed more!
Please contact Therese Kuvaas if you have any questions.
Minnesota Legislature – Weekly Recap
Happy St. Patrick’s Day!
Today marks the Second Committee Deadline, requiring that in order for a bill to continue moving through the process, it must have passed through all the policy committees of both bodies. Third Committee Deadline is not until Friday, March 31st. That deadline requires a bill to have made it through all finance committees.
For Second Deadline week, action was busy at the beginning of the week, but slowed down towards the end of the week. The House and Senate Finance Committees will begin compiling their omnibus bills next week.
Yesterday, the Senate Republican Majority announced their Pro-Growth Tax Relief policy, which includes $900 million in tax relief.
According to their press release, the key elements of the middle income tax relief plan:
- A permanent cut to the lowest income tax rate benefiting 81% of all taxpayers but targeted at middle income families making less than $135,000 per year.
- A phase-out of the tax on Social Security income for seniors, benefitting middle income seniors making less than $120,000 per year.
- A tax credit for college graduates paying off student loans.
Pro-Growth Tax Relief Plan to Boost the Economy:
- An exemption from the statewide business property tax for the first $100,000 of market value for main street businesses and an end to the automatic increases to this tax.
- A property tax credit for agricultural land so that farmers don’t pay an inordinate amount for school district levies.
- A change in tax law that will provide incentives for small businesses to purchase new equipment, which will lead to job growth.
- A change to the estate tax to bring it more in line with federal law and allow farmers and families to hand down more money to the next generation.
The Senate Republicans released their targets this afternoon. Spending increases are focused in education, transportation and heath care. The $900 million in tax relief is the largest portion of the budget surplus, but how it will be broken down will be finalized in the next few weeks.
Today, Governor Mark Dayton released his supplemental budget proposal, which is due to the February forecast that predicted a $1.65 billion budget surplus. The Governor has set $200 million of his supplemental budget aside to go into the budget reserves, which would increase the reserves to $1.5 billion. In the Governor’s supplemental budget, he has allotted $100 million more into the voluntary preK opportunities and an additional $10 million for Pathways to Prosperity, a strategic effort to connect Minnesotans with the education and training they need to access opportunities in high-growth, high-demand careers with family-sustaining incomes.
According to the Star Tribune, “Among new priorities that Dayton wants to see funded are soft-body armor reimbursements for police officers, additional local aid to fully implement the governor’s water-quality law, as well as a Super Bowl tax exemption.”
Click here for the Governor’s press release.
With the release of budget targets by the Senate Republicans and the Governor’s supplemental budget proposal, the House Republicans are the only caucus that still needs to release their targets. These numbers will give the outline for end of session negotiations and we are still two months away from the constitutional deadline.
Special Note – Lt. Governor Tina Smith announced this afternoon she will not run for Governor in 2018.
- Legislation (H.F. 347) that would make changes to the process by which a manufactured home is determined to be an improvement to real property, because it is affixed to the real estate, or a motor vehicle, and is not affixed to real estate was heard this week in the final House Committee. This bill also creates a system for resolving situations where the ownership of a manufactured home is at issue. The bills are now awaiting action by the full House and Senate. The MBA was approached a year ago regarding this topic and has been involved in the discussions throughout the process. Here is a summary of the bill.
- Legislation (S.F. 888) that would establish a first-time home buyer savings account program, administered by the Department of Revenue (DOR) was heard on Tuesday in the Senate Tax Committee and then in the Senate State Government Committee. Under this program, individuals could establish dedicated savings accounts to help buy a home for themselves or another qualified beneficiary; contributions to and interest earning on the accounts would be exempt from Minnesota income tax, if they were used for a down payment or closing costs on a home for the beneficiary. A first-time home buyer is someone who does not own or has not owned a residence in the last three years. The program would become effective the day following enactment and, for income tax purposes, would apply beginning for tax year 2017. The legislation is being pushed by the Minnesota Realtors and the MBA is supporting the bill. The bill received a large fiscal note regarding the costs to administer the program, which is still being discussed. The Senate bill was sent back to Taxes, where it may be included in the Tax Omnibus Bill. The House version is in the State Government Committee.
Session By The Numbers
14: days until Third Committee bill deadline (March 31)
66: days until the constitutionally designated adjournment date (May 22)
2177: number of bills introduced thus far in the Senate
2488: number of bills introduced thus far in the House of Representatives
2000: average number of bills introduced in each house during odd-year sessions
Please contact Tess Rice or Therese Kuvaas for any additional information.
For more legislative updates, follow Therese Kuvaas, Government Relations Manager, on Twitter @thkuvaas
Monday: House Job Growth and Energy Affordability Hearing on the MBA-Sponsored Residential PACE legislation (H.F. 1377)
Lots of committee activity will occur throughout the week as the committees look to compile their Omnibus Bills.
H. F. 2391,A bill for an act relating to financial institutions; regulating retirement, health savings, and medical savings accounts; providing asset protection; amending Minnesota Statutes 2016, sections 47.75, subdivision 1; 48.15, subdivision 4.
H. F. 2418,A bill for an act relating to residential mortgage originators, residential mortgage servicers, and mortgage loan originators; allowing expungement of certain violations; instituting application process times; amending Minnesota Statutes 2016, sections 58.06, by adding a subdivision; 58.11, by adding a subdivision; 58.12, by adding a subdivision; 58A.04, by adding a subdivision; 58A.12