Good morning. Haven’t filed your taxes yet? You have one week.

The second half of the legislative session started out Tuesday with dueling ethics complaints. House DFLers filed ethics complaints against GOP Reps. Elliott Engen and Walter Hudson, who were both in a vehicle pulled over in White Bear Lake last month. Engen, who was behind the wheel, has been charged with DWI. Hudson, who was a passenger, had a handgun on him (while he had a permit to carry, officers took the gun for safekeeping because he’d been drinking). House GOP leadership took Engen and Hudson off committees, and other party actions could be taken within the caucus. Meanwhile, House GOP members filed an ethics complaint about DFL Rep. Alex Falconer’s previous work lobbying for a Boundary Waters group, and his work in the legislature since backing legislation to benefit the Boundary Waters. Republicans say they are holding their members to account, while DFLers are not taking any action to do the same. Democrats say the complaint against Falconer is just a tit-for-tat move aimed at taking some of the spotlight off of the DWI case.  The roster for the House Ethics Committee is here.

 

Day 1 after the recess also featured a lengthy debate over a certain-to-fail procedural motion to force a vote on bills about transgender athlete participation in youth sports. Republicans tried to advance several bills, including one motion that would have required 90 votes to get moving. All of the procedural attempts failed on 67-66 party-line votes, as this writeup by the internal House publication Session Daily notes . Those pushing the legislation say the bills are a response to federal threats to cut off certain education dollars to Minnesota and to address a ruling last year by the state Supreme Court. But House GOP Leader Harry Niska didn’t hide the practical effect of getting DFLers on the record again. He said, “210 days until the election. Girls sports are on the ballot.” DFLers said there was no emergency and they called the GOP comments about protecting girls and women hollow. This won’t be the last time this issue is before lawmakers and, as Niska suggested, voters.

 

The two DFLers running for U.S. Senate intend to debate before a likely August primary, but when, where and how often isn’t yet settled. U.S. Rep. Angie Craig proposed a set of three debates with Lt. Gov. Peggy Flanagan; one would be televised, one over radio (hmmm) and one at the early August expo known as FarmFest. The request sought for two to be held before the May 29 state DFL convention and one before the Aug. 11 primary. Flanagan’s campaign said she “looks forward to debating Congresswoman Craig this summer” and said it’s important for voters to have the candidates appear face-to-face to take tough questions. There was no further information about the format. Both got digs in on the other. “In August, all Democratic primary voters will decide if they want a senator with a record of legislative results in Washington and winning tough races or one who offers a lot of promises but barely shows up for her current job,” Craig said in a written statement Tuesday. Flanagan’s campaign responded: “Congresswoman Craig’s problem isn’t a lack of debate stages — it’s that she hasn’t been showing up.” The nomination winner will face a yet-decided Republican who must weave their way through a crowded field. The seat is open because U.S. Sen Tina Smith is not running for a new term.

A pair of wealth tax plans billed as conversation starters got an airing at Minnesota's Capitol yesterday. The legislation didn’t get a vote in the House Taxes Committee, but did attract the spirited debate the backers anticipated. Committee Co-Chair Aisha Gomez, DFL-Minneapolis, said it’s a response to a new gilded era. “A society where children can’t eat but we’re on the verge of having our first trillionaire, it’s unjust and we all know it,” she said. “Everybody knows it as we look around. Everybody feels it. Everybody feels like it’s wrong.” The Gomez bill would impose a 1 percent annual tax on wealth above $10 million, which could yield nearly $300 million per year . Business groups contend the tax would cast a chill over economic development. They say it could stifle entrepreneurs and lead to wealth flight. Brian Cook, a government affairs official with the Minnesota Chamber of Commerce, said even having the discussion could be detrimental. Rep. Mike Wiener, R-Long Prairie, was among several Republicans to push back. “When is enough enough? It seems like there's an insatiable lust for more taxes,” he said. Any new taxes would be difficult to pass this year because the split Legislature requires bipartisan backing for bills to advance. Republicans say they won't raise taxes.

The Minnesota Senate voted yesterday to make sure drug companies keep providing discounts to certain hospitals per federal law. The 340B Drug Pricing Program has been around since the ‘90s and requires companies to provide discounted medications to hospitals and clinics that serve low-income, uninsured or rural patients. Hospitals can then bill insurance companies the full price. Medicaid and Medicare don’t fully reimburse hospitals so advocates of the program say 340B helps fill that funding gap. The federal government has accused pharmaceutical companies of skirting federal law . The Minnesota Senate voted yesterday to give the Minnesota Attorney General’s Office the power to prosecute companies that do so in Minnesota. “This isn't a fair fight. On one side, you have rural hospitals, local pharmacies and patients in rural communities. On the other, you have some of the most profitable corporations in the world,” said Sen. Grant Hauschild, DFL-Hermantown, who supports the bill. Drug companies have lobbied against the legislation and their lobbying organization, PhRMA, said in a statement that “despite the profits reaped by tax-exempt hospitals” the 340B program “drives higher costs for patients, taxpayers, and employers.” The bipartisan bill is in committee in the House.

Minnesota has lost a round in the legal skirmish over Medicaid dollars. In February, federal officials announced they would freeze $259 million in Medicaid funding to the state, citing concerns over fraud. In response, Minnesota Attorney General Keith Ellison sued the federal Centers for Medicare and Medicaid Services and the U.S. Department of Health and Human Services to stop them from halting $243 million of that funding. Estelle Timar-Wilcox reports that on Monday, U.S. District Court Judge Eric Tostrud declined to require the federal government to reinstate the payments. Tostrud wrote that the courts need to wait for federal agencies to finish their own investigations and make a final decision on the funding freeze. Tostrud also wrote that Minnesota “credibly complains that the federal government’s deferral is historically unprecedented in its size and timing,” but the freeze likely complies with federal regulations. The lawsuit is ongoing.

The Minnesota Department of Health is preparing to launch a cannabis education campaign. Nicole Ki reports that the state's health agency is seeking a contractor to develop a prevention and education program on the risks of cannabis use. The program will focus on educating individuals who are pregnant, breastfeeding or may become pregnant. This effort is part of a general goal of increasing public awareness on substance use and also accompanies the rollout of Minnesota's new cannabis market. A chosen contractor would be expected to develop a cohesive plan and create materials that can best engage the targeted audience. It would also do ongoing analysis to measure the impact. The contract is expected to start July 1 of this year and go through June of next year. Total funding for this project is up to $1 million.

Elk River is the latest Minnesota city to vote to continue flying the former state flag. Kirsti Marohn writes about a meeting held Monday night. The Elk River City Council voted unanimously to draft a resolution to fly the retired Minnesota state flag on all city properties. The new flag’s design incorporates symbolism specific to Minnesota, including the eight-pointed star of the north evoking Minnesota’s motto. The old flag drew criticism for its complexity and depiction of Indigenous people. Other Minnesota cities that have chosen to keep the old state flag include Champlin, Zumbrota and North Branch. More than a dozen people spoke at the Elk River meeting before the vote. Opinions were mixed on whether the city should keep flying the former flag or the official design adopted in 2024. Linda Schultz urged the council to keep the old flag, instead of flying the official design adopted in 2024. “The new flag has nothing to do with Minnesota and does not represent any of our values. I'm actually appalled at this flag. It is time to stand up and get back what is rightfully ours.” Others — like Andy Price — spoke in favor of the official flag, and chided the city council for creating divisiveness. Flying the old flag sends a message, whether intended or not, that Elk River is resistant to positive change, and I don't believe that reflects who we are in Elk River." A final vote on the resolution is expected on April 20.