MVMA

Update for the Week Ending February 29, 2008

The third week of the 2008 legislative session, as will be discussed below, was historic.  While the MVMA was not intimately involved in the veto override, Molnau confirmation battle, or the budget deficit, we still had some noteworthy activity this week.

On Wednesday the 27^th, we monitored two hearings in the House.  In Rep. Otremba’s Committee on Agriculture, Rural Economies, & Veteran’s Affairs heard and passed HF3139 (Tschumper), a bill originating from the Board of Veterinary Medicine, which positively altered several laws pertaining to veterinarians.   This bill changes several laws pertaining to veterinarians. Specifically, the bill allows foreign-trained veterinarians to submit “PAVE” certification as a demonstration of knowledge and skill equivalent to that of a graduate of an accredited and approved college of veterinary medicine; allows certain non-licensed veterinarians to work at the University of Minnesota’s Veterinary Medical Center; authorizes the Board of Veterinary Medicine to send cease and desist orders by standard mail; and modifies laws pertaining to veterinary drugs including allowing veterinarians and their employees to prescribe human drugs for extra-label use in or on animals, subject to restrictions in federal law.   

Next, we continued to follow HF2906 (Paymar) which makes various changes to the statutory provisions relating to the regulation of dangerous dogs.  HF2906 is palatable to the MVMA, as currently drafted, as it regulates bad owners, as opposed to bad dogs, but has been a target for those seeking to amend breed banning legislation onto another bill.  This did not occur in the House Local Government committee, but we will continue to follow this bill as it moves through the House.  Senator Anderson’s companion bill to HF2906 was originally scheduled to be heard in the Senate Agriculture committee next Tuesday, but has been removed from its original date and will be heard in Senator Vickerman’s committee on Thursday of next week.

Next week, we will continue to watch for other bill hearings that concern the MVMA.  On Monday HF3501 (Thao) will be heard at 6PM in the House Licensing Subcommittee.  Rep. Thao’s bill seeks to alter the definition of chiropractor in Minnesota law.  While this bill only deals with the definition of a human chiropractor, we will still monitor the discussion.  On Tuesday at 3PM, SF2878 (Dille), the Senate companion to HF3139, will be heard in the Senate Agriculture committee.  Also, HF3614 (Koenen) has been introduced, has not yet been scheduled for a hearing.  HF3614 seeks to alter the Chiropractic Practice Act in such as was so as to allow, with a certain amount of training, human chiropractors to ply their craft on animals.  This, quite obviously, is of great concern to the MVMA, and will we watched for closely by your lobbyists.

It is certainly shaping up to be another busy week at the Capitol.  Please contact us with any concerns or questions.

General Update

This whirlwind week certainly made history at the legislature.  The size and momentous nature of Monday’s vote to override Governor Pawlenty’s veto of the $6.6 Billion transportation bill was just the start.  Three days later the Senate voted to remove Lt. Governor Carol Molnau from her position as MnDOT Commissioner, yet another attempt by the Democrats to exercise their power.  While some are calling the transportation funding package the largest tax increase in state history, others call it an investment in our future – something so large because the legislature failed to pass such an investment in 20 years.  With the announcement of nearly a $1 Billion deficit coming the same week, lawmakers must now battle over how to balance a budget when raising more taxes is seemingly improbable.  While the Senate has the votes to pass a tax increase, the House does not. To complicate things further, the entire House of Representatives is up for reelection in November, and some argue the Republicans have plenty of ammunition to work with already. An additional tax increase coming out of the House is unlikely.  Senate Majority Leader Larry Pogemiller (DFL – Minneapolis) said at a lunch with LGN clients and guests, this week, which the legislature will work on major policy issues until Easter. After the Easter break, both bodies will spend time on balancing the budget, something the legislature is legally bound to do.

Lockridge Grindal Nauen Hosts Leadership Lunch:

LGN hosted a leadership lunch during an exciting week at the legislature.  The week entailed the first successful override during the Pawlenty Administration, the announcement of nearly a $1 Billion deficit and the ousting of Lt. Governor Carol Molnau as MnDOT Commissioner.

The lunch allowed those impacted by the legislative session to hear what the Speaker of the House and Senate Majority Leader are saying about these events, and the future of the 2008 session.  Legislative leaders seemed hopeful that the legislature would continue to work to improve the state of the economy in the months ahead.

Near $1 Billion Deficit Projected:

Last Thursday the February forecast was released, projecting a $935 million deficit for the 2008-09 Biennium.  Since the November forecast, revenues are projected down $530 million.   The new deficit number is 2.7 percent of total general fund spending.  Experts are bracing the public for a recession in the U.S. Economy in the first half of 2008. They are calling the recession “short, and mild.” The further weakening of the U.S. economy was cited as a reason for the growing deficit in Minnesota.  Another reason cited for the growing deficit is that the individual and corporate income tax revenue is in large decline.

Major economic concerns outlined by the State Economist, Tom Stinson, include housing markets, credit markets and energy prices.   The outlook for 2010- 2011 is also of concern to Stinson.  Budget planning estimates for FY 2010-2011 are showing a projected deficit of almost $1.1 Billion.

Health Care Reform Bills are Introduced, the Debates Continue:

Hundreds of meetings on health care reform throughout the interim produced two sets of reform recommendations to the legislature.  This week, reform bills in the House and Senate were proposed and conversations from the interim continued.  After the announcement of an enormous state deficit, experts question what type of real reform is possible for health care this year.  

Tax Bill Up in House Monday:
A purportedly “non-controversial” tax conformity bill that has been moving through committees in both bodies has now passed on the House floor.  The bill, which Republicans argue would raise taxes, will be debated at length Monday in the House. The debate centers on a provision that would raise taxes for utility companies.  If the provision stays in the bill as-is, the tax bill will likely be vetoed.  It’s speculated that House and Senate tax chairs will work to avoid yet another vetoed tax bill.  This means avoiding tax hikes of any sort.  

I-35W Bridge Collapse Compensation Fund Passes House:

On the same day that nearly a $1 Billion deficit was announced, the House passed legislation, with an overwhelming majority, which would give compensation to victims of the I-35W Bridge Collapse.  The package in the House does not cap compensation to the victims, unlike the bill in the Senate, which caps recovery funds at $40,000 per person.  The two bodies will likely be forced to form a conference committee and come to a compromise between the two packages.