2021 Policy Results

Driver’s License Suspension Reform was included in the Transportation omnibus budget bill.

This provision ends driver’s license suspensions for:

• Failure to pay court fines related to a traffic violation

• Failure to appear in court on a petty misdemeanor traffic violation or a driving after suspension charge

• A conviction for driving after suspension or revocation

The provision included in the original bill to apply this reform retroactively was not included. Effective date: January 1, 2022.

It also ends the practice of “stacking” driver’s license reinstatement fees. A person will now be required to pay a single reinstatement fee, once all holds on their license are resolved, rather than multiple reinstatement fees, even if there were multiple tickets involved in the suspension of their license. This provision does not apply to reinstatement fees related to DUI convictions. Effective date: March 1, 2022, or upon completion of the necessary programming changes to the driver services information system.

The provision also requires an annual report from the Department of Public Safety and Court Administration on several metrics related to driver’s license suspensions, driving after suspension charges and convictions, and payment of or default on fines and fees related to traffic violations. This will enable us to analyze the impact of driver’s license suspension reform.

Fines and Fees Reform is included in the Public Safety and Judiciary omnibus budget bill.

The provision gives judges discretion to waive, reduce, or offer a community service alternative in lieu of the $75 State Surcharge in cases where imposition of the surcharge would cause financial hardship to the convicted person or their immediate family. This surcharge is imposed on every traffic and criminal violation. Effective date: July 1, 2022.

It also requires the standard citation (ticket) form as well as the “Pay Fines” court web site to add a prominent notice that fines, fees, and surcharges may be reduced or waived based on financial hardship, along with instructions for requesting this consideration.

The final provision in our original bill, which would have required judges to consider a person’s ability to pay before imposing a sentence that includes fines, fees, or surcharges, was not included.

Getting to Work funding is included in the Jobs omnibus budget bill.

$500,000 was appropriated for Getting to Work grants, to be awarded between July 1, 2021 and July 1, 2023. These grants are administered by the Minnesota Department of Employment and Economic Development (DEED) and are available for nonprofit organizations offering low-interest vehicle loans or leases, free or low-cost vehicle repairs, or donated vehicles to low-income individuals who need a vehicle to find or keep a job.

Taxpayer Assistance Grants (TAG) funding is included in the Tax omnibus bill.

TAG base funding, currently at $600,000 per year, will increase by $100,000 for FY 22 and thereafter by $150,000 each year, for a new base funding level of $750,000 per year. These grants are administered by the Minnesota Department of Revenue and are available to nonprofit organizations offering Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) services. For FY 22-23, the funding will be combined and available to be applied for as 2-year grants.

Results for member campaigns MABC supported:

An expansion of the Working Family Credit was included in the Tax omnibus budget bill.

Campaign led by the Minnesota Budget Project

The legislation includes an expansion of Working Family Credit eligibility to 19 and 20 year-olds without dependents. Unfortunately it does not include an increase to the Renter's Credit or an expansion of eligibility to ITIN filers.

The Jobs omnibus budget bill extended unemployment insurance benefits to high school students.

Campaign led by Youthprise

Starting July 3, 2022, high school students will be able to access unemployment benefits they've earned. The legislation repeals a 1939 law that made high school students ineligible to receive these benefits.

The Health & Human Services omnibus budget bill raised the childcare provider reimbursement rates and funded affordable childcare for more families.

Campaign led by the Kids Can't Wait coalition (with Joint Religious Legislative Coalition as our primary contact)

The legislation raises the rates at which the Child Care Assistance Program (CCAP) reimburses childcare providers, and provides $15 million per year over the next four years to move more families off of the waiting list.

The Jobs omnibus budget bill provided $7 million for technical assistance to small businesses.

Campaign led by Catalyst and Metropolitan Consortium of Community Developers

The legislation provides a $7 million one-time funding increase for the Business Development Competitive Grant Program, which provides grants to nonprofit community development organizations to offer technical assistance to small businesses.

The Health & Human Services omnibus budget bill provided a one-time payment to MFIP families and an ongoing cost of living adjustment.

Campaign led by Legal Services Advocacy Project

The legislation provides current MFIP families with a one-time emergency payment of $435, and includes an ongoing, annual cost of living adjustment to the cash grant so benefits will keep up with inflation.

Changes to the K-12 Education Credit were not included in the Tax omnibus budget bill.

Campaign led by Youthprise

Unfortunately, the legislation does not expand or simplify the K-12 Education Credit, which reimburses families under a particular income threshold for after-school enrichment and academic programs and expenses.

2021 Policy Agenda

stop the fines and fees debt trap

Fines and fees from traffic tickets and minor criminal violations strip assets from low income communities and communities of color. Tacked-on fees and surcharges drive up the cost of a basic traffic ticket to over $100, which is a hardship for many families. A single unpaid ticket can lead to a driver's license suspension, and a license suspension often causes job loss and mounting debt. View more information on this issue.

Our Proposal:

• Stop suspending driver's licenses for unpaid traffic tickets.

• Allow judges to reduce or waive the $75 state surcharge on traffic and criminal violations in cases of financial hardship or offer a community service option.

• Require judges to consider a person's ability to pay before imposing a sentence that requires payment of fines, fees, or surcharges.

make auto insurance more affordable

The law requires all drivers to carry liability insurance, but the lowest-income drivers often pay the most for insurance, because factors such as credit score and zip code increase their rates. When insurance is unaffordable, it creates a hardship for low income families, who may have to give up a job because they need to drive to get there. Some states have addressed this issue through solutions like targeted insurance programs with more affordable rates for low income, good drivers.

Our Proposal:

• Convene policymakers and key stakeholders, including consumer advocates and industry representatives, to find common ground on how to make auto insurance affordable for all Minnesotans, such as more equitable pricing or creating a low-income driver program.

PROTECT EQUITABLE ASSET BUILDING PROGRAMS

The legislature must pass a balanced budget during the 2021 legislative session, and in light of the projected state budget shortfall for the next biennium, lawmakers will be proposing spending cuts and revenue-raising strategies. Low income Minnesotans rely on the support they get from state programs, particularly during this challenging period.

Our Proposal:

• MABC will monitor state agency and legislative committee proposals for addressing the budget shortfall and advocate against budget cuts to equitable asset-building programs and other programs that affect low-income communities or communities of color.

MABC supports these campaigns led by our members:

Tax credits for low-income Individuals & families

MABC supports the Minnesota Budget Project's initiative to monitor and respond to opportunities and threats to tax credits that promote economic security and a fairer Minnesota tax code, with a particular focus on the Renters’ Credit and the Working Family Credit.

UNEMPLOYMENT INSURANCE FOR HIGH SCHOOL STUDENTS

MABC supports Youthprise’s initiative to repeal the current Minnesota law prohibiting high school students from receiving unemployment insurance and to replace it with a statute that permits high school students to qualify for unemployment insurance if they meet certain criteria.

Affordable child care

MABC supports the Kids Can’t Wait campaign to increase provider rates using available federal funds and to significantly reduce the number of families on the waiting list for child care assistance, allowing them to work and move into economic stability.

Promoting entrepreneurship

MABC supports the Catalyst Group’s initiative to support small businesses owned by women, individuals with physical disabilities, members of identified minority groups, military veterans, and those located in economically disadvantaged areas by improving access to the state procurement process and increasing state funding for business technical assistance and access to affordable loans.

Streamlined access to k-12 education tax credit

MABC supports Youthprise’s initiative to increase access to the K-12 Education Tax Credit, which helps low-income families afford educational and arts afterschool and summer programming, by simplifying the process for claiming and assigning the credit, updating the income eligibility threshold, and making eligibility adjustments for family size.