Ewald at the Capitol - June 24, 2010

New Laws Effective July 1

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Ewald Government
Relations Team

Feel free to contact any member of our team:

David Ewald
651-290-6276
davide@ewald.com

Valerie Dosland
651-265-7857
valeried@ewald.com

Becca Pryse
651-265-7858
beccap@ewald.com

Bill Amberg
651-203-7251
billa@ewald.com

Eric Ewald
651-290-6266
erice@ewald.com

Nick de Julio
651-290-6286
nickd@ewald.com

John Arlandson
651-203-7252
johna@ewald.com

Key Legislative Contact Info
House Information Office
651-296-2146

Senate Information Office
651-296-0504

State Legislature Website
www.leg.mn

Every year, new laws are passed during the legislative session. While some laws take effect as soon as they are signed by the governor, others go into effect at later dates, so there is time for affected parties to prepare for the new laws. Sometimes new laws can be small changes to statutes and sometimes they are major changes. On Thursday, July 1, 2010, SSHF 1 — the Omnibus State Budget Bill and largest bill of the session — will go into affect.

SSHF 1 authored by Rep. Lyndon Carlson, Sr. (DFL-Crystal) and Sen. Richard Cohen (DFL-St. Paul), erases a projected $3 billion shortfall through spending cuts and payment delays. It ratifies many of Governor Tim Pawlenty’s 2009 spending unallotments — with a few changes — and makes some additional Health and Human Services cuts. While the law has various effective dates, key pieces that take effect on July 1, 2010, are as follows:

A statute is modified that previously required the state to withhold payments to school districts to reduce the need for short-term borrowing. Under the new law, the Department of Minnesota Management & Budget may withhold school aid payments in those circumstances. The law also raises the levels of cash reserves school districts must have on hand before the state can begin withholding payments from them.
The Revenue Department is directed to delay refunds for overpayment of sales and corporate taxes, including capital equipment refunds. The result will be to push $152 million in refunds that would otherwise have been paid in fiscal year 2011 into the next biennium.
Payment rates for certain physician and professional services will be reduced by seven percent, with the exception of certain areas, including primary care, preventative medicine and family planning services.
The law delays the rebasing of hospital operating payment rates until fiscal year 2013, except for long-term care hospitals.

See a list of the other bills that will take effect July 1, 2010.

Absentee Balloting Begins June 25

They said it:

“Signing Minnesota up early for this entitlement program would strain the state budget and put us at significant risk. Rather than simply expanding these rapidly growing and unsustainable programs, we should reform health care to pay for quality, rather than volume of procedures, and look for ways to provide additional access through the private market.”

- Governor Tim Pawlenty, explaining his rejection of early entry into the expanded Medicaid program.

Absentee balloting for the August 10 state primary elections is set to begin on Friday, June 25. The new date is part of a new state law that was passed early on this past session moving the primary from September to August to provide active-duty military and overseas voters more time to participate in Minnesota’s elections.

The absentee balloting period for the state primary is
June 25 - August 9. State law allows eligible Minnesota voters to vote absentee either by mail or in person for one of the following reasons:

Absence from the precinct on election day (away from home)
Illness or disability
Serving as an election judge in another precinct
Religious discipline

For more information about the absentee process or to download an absentee ballot application, visit the Minnesota Secretary of State’s website or contact your county auditor/municipal clerk to receive an application.

Pawlenty Rejects Early Medicaid Program

This week, Gov. Tim Pawlenty rejected the Legislature’s offer to enroll the state in an early Medicaid program that could have brought $1.4 billion to the state. Enrollment in the program was a major sticking point between Gov. Pawlenty and DFL legislative leaders last month in the final hours of session as leaders believed that the state would be in line to receive $7 for every $1 the state invested. However, at the last minute, inclusion in to the program was dropped as it was clear that Pawlenty would not accept a deal with the Medicaid language included. But as part of the end of session deal, the door was left open for either Pawlenty or the next governor to explore entering into early enrollment.

In his letter to Human Services Commissioner Cal Ludeman, Pawlenty said that the state will not participate in the early enrollment because of significant General Fund costs totaling $430 million over the next three years, and his uncertainty regarding the federal government’s ability to fulfill the spending obligations in the program in the future. However, under the federal health care law, all states will expand Medicaid eligibility to low-income adults without children in 2014.