2021 Legislative Session L
Q: What are one or two outcomes from the 2021 Legislative Session that will have a significant impact on the Rochester area business community? A: Since its introduction in 2017, Minnesota’s reinsurance system has acted as a national standard for stabilizing healthcare markets. Unfortunately, Minnesota’s reinsurance program was not extended over the next biennium, which is a significant disappointment. Reinsurance helped stabilize the insurance market following the enactment of the Affordable Care Act, which saw substantial premium increases. Without reinsurance, Minnesotans will likely see higher premiums and fewer options in their healthcare. Unfortunately, despite frequent debate on the House Floor and within committee, reinsurance did not get the attention it deserved. Without an extension to reinsurance, those who participate A: I am happy to say that Payment Protection Program tax conformity will be included within the final tax bill. However, it remains disappointing that the legislature was unable to pass Paycheck Protection Program relief before Minnesotans’ taxes were due on May 17th. Our families and businesses needed these funds to make ends meet during the pandemic. While PPP funds will be fully forgiven in the final budget, it was a shame we could not get this done before we adjourned in the regular session. in the individual market will be disproportionately harmed. Q: What is a notable or key accomplishment from the session? Q: What are one or two outcomes from the 2021 Legislative Session that will have a significant impact on the Rochester area business community? A: As recently as late 2020, the state was looking at a budget deficit but thanks to a recovering economy and federal funds flowing into our state, Minnesota instead has a $4+ billion-dollar budget surplus. Despite this, there were still calls to raise taxes on Minnesotans – stopping these proposed tax increases on Minnesotans and Minnesota businesses is the biggest accomplishment from the soon to be completed special session. The legislature also passed several bipartisan business relief grants on top of what was coming from the federal government. Many of these grants and programs ran through the state as well as county level. As of this writing on June 24, there is an agreement in place to exempt forgiven PPP loans from state taxes and exempt the increase in UI taxes to match what the federal government did for state taxes as well. Q: What is a notable or key accomplishment from the session? A: Unfortunately, with remote hearings and the state budget looming over session there were fewer bills passed on their own during legislative session. The bipartisan work done all year long to help businesses and individuals harmed by the pandemic and shutdowns were among the most notable accomplishment from the past year. While the budget bills are still being passed, the fact PPP & UI tax relief was included and all tax increases removed while transportation funding was increased by almost 22% are all good news for our state.
Rep. Nels Pierson District 26B
Rep. Duane Quam District 25A
Advantage Magazine | 11
July 2021
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