Good morning and welcome to Thursday. I hate to break it to you, but it sure doesn’t look like the legislative session is going to end today. 

There is a deal on a tax bill. Brian Bakst and Dana Ferguson report: Late Wednesday, negotiators on a multi-billion dollar tax bill outlined their almost-finished agreement. They said they would reconvene Thursday to complete it. “I am very pleased with the amount of tax relief we are providing to Minnesota taxpayers,” said Senate Tax Chair Ann Rest, DFL-New Hope. The plan would result in $1.1 billion in one-time tax rebates of $260 per tax filer — $520 for couples — under an income limit. For qualifying households comprised of joint filers and three children, it would amount to $1,300 back. That’s far lower than the $1,000 per person and $200 dependent add-on that Gov. Tim Walz proposed. An exemption for Social Security income would be enlarged to keep more retirees from facing taxes on those benefits and a new child tax credit aimed at low income families would offer another financial lift. House Tax Chair Aisha Gomez, DFL-Minneapolis, said that child tax credit of up to $1,750 per dependent would “significantly cut child poverty.” “In a state like Minnesota, I think we all should just come together and say no child should live in poverty. Period,” Gomez said. “And this moves us toward that.” There are enhancements to property tax refund programs and those that absorb the shock of big jumps in tax bills of homeowners. To make the numbers balance, some filers with investment earnings or businesses with global earnings would be forced to pay more — to the tune of $1 billion in this two-year budget and the next one. “We hear in press conferences and so forth this is the biggest tax reduction in history. But we must also let the record reflect this is the largest tax increase in history, too,” said Rep. Greg Davids, R-Preston.

State lawmakers have reached agreement on what backers say is a historic environment, energy and climate budget bill that will make transformative investments to help Minnesota combat climate change and move more aggressively toward a carbon-free economy. MPR’s Dan Kraker reports that the $2 billion package tackles big conservation issues like so-called “forever chemicals,” or PFAS, and chronic wasting disease, while also addressing longstanding environmental justice concerns. And it invests hundreds of millions of dollars in dozens of initiatives to cut greenhouse gas emissions, from funding for solar panels on schools to electric vehicle rebates. “This is the most significant environment and climate bill in Minnesota history, both in terms of its investments and its reforms. There are things in here that we have worked on for years,” said Rick Hansen, DFL-South St. Paul, who helped negotiate the deal. Negotiators from the House and Senate agreed to a compromise bill late Tuesday night. It was sent back to conference committee Wednesday for violating a legislative rule, but is expected to pass the DFL-controlled legislature and be signed by Walz.

As part of that plan, Minnesota lawmakers are poised to adopt tough new regulations on the use of PFAS, known as "forever chemicals,” that will be the most restrictive in the nation. MPR’s Kirsti Marohn reports: The legislation, expected to pass the full House and Senate soon as part of a larger environmental bill, includes a sweeping ban on the non-essential use of the chemicals. Walz is expected to sign it. Starting in 2025, Minnesota will prohibit the sale of many products with PFAS that's been intentionally added. The lengthy list includes carpeting, cookware, children's products, cosmetics, dental floss, menstruation products and ski wax. There’s also a requirement that manufacturers disclose if the products they sell in Minnesota contain PFAS. By 2032, no product with intentionally added PFAS could be sold in Minnesota unless state officials decide it's essential for the health, safety or the functioning of society, and there are no reasonable alternatives. “What this bill is saying is that if it's not essential, we don't need to use it,” said Avonna Starck, state director of Clean Water Action Minnesota, which advocated for the restrictions. “So this bill is really encouraging innovation and a process for coming up with clean, safe alternatives.” 

One of the key elements of the DFL legislative agenda is a step closer to becoming law. As Brian and Dana report, the House voted 68-62 Wednesday — largely along party lines — to approve a paid family and medical leave program that would provide up to 20 weeks off per year with partial pay.  That could be a combination of time off around a birth, adoption or family health emergency and around a worker’s own medical issues, although it is capped at 12 weeks for one qualifying event and another eight for a separate event. Leave could be taken intermittently, allowing, for example, regular days away for long-term treatments. The Senate is expected to vote as soon as Thursday. House sponsor, Rep. Ruth Richardson, said lawmakers who crafted the final plan took steps to accommodate smaller companies and limit the total leave a person could take. But she said the underlying principle is intact. “Families know that a serious illness or an injury can be devastating for families, not only physically, but financially,” said Richardson, DFL-Mendota Heights. “And a uniting factor is that all of us at some point are going to need to care for ourselves or for a loved one.” Republicans cast it as the state meddling in the employer-employee relationship with a requirement that will eventually require a payroll charge both would pay. The new tax won’t kick in until the benefit program is ready for launch, expected to be in 2026. “You will be hearing the details of that and why it is important. We have listened to Minnesotans on this. We know this is something that is important,” said House Minority Leader Lisa Demuth, R-Cold Spring. “But as proposed in this bill, it is not sustainable. It is not going to work. It is not affordable.”

And the Minnesota Senate on Wednesday voted to approve a pair of proposals that would aim to ensure equal rights based on a person’s gender.  By a 42-25 vote, the chamber approved a resolution urging Congress to take the appropriate steps to adopt the Equal Rights Amendment at the federal level. And on a vote of 43-23, the chamber approved a bill that would submit to Minnesota voters a constitutional amendment in 2024 guaranteeing equality no matter a person’s race, color, creed, sex, sexual orientation, gender identity or expression, age, disability, ancestry or national origin. “We know that our Minnesota Constitution that was written over 165 years ago, before the Civil War time, at a time when the gendered language that was used throughout our constitution applied only to the majority of white land-owning men,” Sen. Mary Kunesh, DFL-New Brighton, said. “It is well past that time to update it and to reflect our 21st Century values.” Republicans in the chamber raised concerns about including gender identity and expression in the amendment. And they worried it could affect federal Title IX protections. “Let's just be clear, we all agree on Minnesotans, we all agree on equal rights for women and girls, and we all want to oppose discrimination in society,” Sen. Carla Nelson, R-Rochester, said. “But that doesn't mean that this particular constitutional amendment is what we need to achieve our goal.” Nelson voted for the bill. It would need to pass the House before the question would be included on the 2024 ballot.

Could the Legislature raise the gas tax? It’s a possibility, the Minnesota Reformer reports: “There’s conversation but we haven’t made any decisions,” said Rep. Frank Hornstein, DFL-Minneapolis, who chairs the transportation finance conference committee. “Staff is working with us on spreadsheets, and in the next day or two we’ll have some definitive numbers.” The House approved a 75-cent fee on deliveries of packages from places like Amazon, DoorDash and restaurants for transportation and a .75 percent regional sales tax increase to fund Metro Transit. The Senate approved a .5 percent metro sales tax increase and no delivery fee, and Walz has proposed a 0.125% sales tax for transit. Hornstein also proposed a fee on Uber and Lyft rides. Hornstein said the Senate is looking seriously at the delivery fee, but maybe not at the level the House approved, at $168 million per year and growing. Walz said Wednesday afternoon he would sign an increase if the Legislature sends it to him, but it’s not his proposal. Earlier in the day, Walz told MPR News he would consider a fee for roads, too. “I'm on board with whatever it takes to get this funding. And I think they need to make sure there are exemptions, I'm very clear, for medicines for … formula ... But look, these are trucks that are driving on our roads," Walz said.

Minnesota is getting $60.5 million from the settlement of its lawsuit with e-cigarette maker Juul Labs and Altria. MPR’s Mark Zdechlik reports: The state reached the settlement with the companies last month, just before a trial in the case was to go to closing arguments. The state had argued that the companies aimed their products at young people and had hooked a new generation on nicotine. Walz and Attorney General Keith Ellison unveiled details of the settlement Wednesday. “Minnesota’s settlement is the largest per capita state settlement precisely because we took Juul and Altria to trial,” Ellison said. “The amount of our settlement is larger than all of the money Juul made in Minnesota, between 2015 and 2021. So if they got paid by selling deceptive and harmful products to our kids, we got all the money back.” Public health advocates are optimistic that — unlike billions from the state’s landmark 1998 settlement with tobacco companies — all of the proceeds from the e-cig settlement will go directly toward reducing nicotine use.

Tell MPR News: What do you hope lawmakers accomplish this session?