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| March 12, 2021 |
| Neighbors, With first deadline today we had a lot of hearings this week and I had 8 of my bills heard in committee. I also had another one of my bills passed off the Senate Floor, 67-0, which would allow Manufactured Home Installers to take continuing education online, it awaits action in the House. I’m looking forward to second deadline next week and more bill hearings. Thank you, Rich Helping Small Businesses Yesterday, the Minnesota Senate passed a bipartisan PPP tax conformity bill, which will provide substantial relief to small businesses by ensuring they are not penalized for keeping their employees on the payroll through the COVID-19 pandemic. Last year, the federal government passed the Paycheck Protection Program (PPP) to be an emergency measure to help small businesses keep their employees on payroll. Unfortunately, struggling business owners are now facing large state tax bills on these loans. Local businesses and workers have suffered enough through the pandemic and Minnesota is better financially than we expected to be, so passing relief to protect businesses that used these funds to make sure their employees had an income during such a volatile time is just common-sense. I hope the House and Governor see the value of this and now understand the importance of opening up businesses for Minnesota’s working families. If we fail to get this done, we’re leaving the tax burden to fall on thousands of small business owners still struggling to stay afloat across Minnesota. Last year the federal CARES Act established the PPP program for small businesses experiencing hardship and revenue losses resulting from the COVID-19 pandemic. Under the program, loans would be forgiven if they were utilized to fund qualified costs, and 60% of the loan proceeds were used for payroll costs. The federal government made it clear that forgiven PPP loans were not considered taxable income at the federal level, but they are at the state level according to Minnesota Law. This bill will bring Minnesota into federal tax conformity so that these forgivable loans are not subject to state taxes. Additionally, the bill will give some small businesses greater flexibility to file as C-corporations, reducing their tax burden. If the bill is not signed into law, Minnesota small businesses will be forced to pay millions on PPP loans meant to keep businesses alive. Without action, many of these struggling small businesses will have sizable state tax bills due on March 15. Twenty-five other states, led by Governors of both parties, have already acted on PPP tax conformity. In addition to small business PPP tax relief, the legislation will provide tax relief for struggling Minnesotans who received expanded federal unemployment benefits. This added relief will be good news to the thousands of Minnesotans left unemployed during the pandemic through no fault of their own. Helping our Law Enforcement On Monday, the Senate passed legislation funding the Law Enforcement Operations Account (LEO), securing resources for emergency law enforcement operations tied to extraordinary and unplanned emergency events. The resources can be accessed by state and local law enforcement following an emergency declaration or when the Minnesota State Patrol requests assistance for state properties, particularly the Minnesota Capitol. Our government has a responsibility to help keep the public safe and maintain order during times of unrest. This bill ensures law enforcement has the proper resources and that Minnesota is prepared to protect its residents. The Law Enforcement Operations Account will be funded with a $20 million appropriation from the General Fund. Applications for the funds can then be made by both tribal or local entities and are not exclusively limited to law enforcement. Fire services, emergency medical services, and other governmental operations can also apply for funding for their needs. Eligible costs include mutual aid, overtime, food, lodging, damaged or destroyed equipment, and emergency management costs. Jurisdictions experiencing the emergency qualify for reimbursement up to 75% of their expenses, and assisting jurisdictions can receive the full 100%. Applicants have 90 days following the event to request funds. All applications will be reviewed by a five-member reimbursement panel consisting of three sheriffs and two police chiefs, who will evaluate the requests and make binding recommendations for reimbursement from the account. Additionally, the legislation excludes riot costs from the Disaster Assistance Contingency Account. Over the past year, Governor Walz raided 70% of the account to provide Hennepin County $11.7 million to help rebuild public infrastructure, undermining the spirit of the fund. Under the reform, the account would be only eligible for natural disasters and some human-made disasters like dam or bridge failure. Contacts I’ve heard from many of you but wanted to make sure you have contact information for myself and other elected officials in the State: State Senator Rich Draheim 651-296-5558 Sen.Rich.Draheim@senate.mn Governor Tim Walz 651-201-3400 https://mn.gov/governor/contact/ US Rep. Jim Hagedorn 202-225-2472 https://hagedorn.house.gov/contact US Rep. Angie Craig 202-225-2271 https://craig.house.gov/zip-code-lookup?form=/contact/email-me US Sen. Amy Klobuchar 202-224-3244 https://www.klobuchar.senate.gov/public/index.cfm/email-amy US Sen. Tina Smith 202-224-5641 https://www.smith.senate.gov/share-your-opinion Follow me on Facebook @SenRichDraheim Follow me on Facebook to see what I am up to in the Senate and around the district! www.facebook.com/SenatorRichDraheim |
