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Hospitality industry adds 16,690 jobs in June.

8/11/2022

 
​Continuing a positive trend, Minnesota’s hospitality and leisure industry added 16,690 from May to June, according to new data from the Department of Employment and Economic Development.  As Minnesotans continue to re-enter the workforce and/or move industries, thousands are choosing hospitality which is a positive sign.  Overall, Minnesota is still down 33,644 private sector workers compared to pre-pandemic levels, and hospitality continues to make up an out-sized portion of this deficit (68%).  This points to the uneven nature of the recovery, as cited in recent news reports and evidenced by our quarterly Economic Snapshots based on surveys  with the Federal Reserve Bank of Minneapolis and Explore Minnesota Tourism. 
View DEED Data
Related News Report
HM Quarter Economic Snapshots

Update on Short-Term Vacation Rentals

7/13/2022

 
​Our advocacy to help create a level playing field in the market continues to have success, as more and more counties have developed local regulations in the last two years. While there are currently over 8,000 vacation rental units in the state, government regulations have been challenged to keep up with the changing marketplace. Hospitality Minnesota, through its Short-Term Vacation Rental Work Group, has developed a Model Policy Checklist to aid counties and other local governments in developing fair regulations.
Read Our Issue Brief
Check Out Our Model STVR Policy Checklist
Beltrami, Blue Earth and Carlton Counties add Ordinances in 2022
Beltrami, Blue Earth, and Carlton counties are the most recent local governments to tackle the challenges around fair regulation of short-term vacation rentals by passing ordinances. The policies adopted by these counties include many of our recommendations, and we will continue to communicate with local governments as they adapt to market conditions and challenges posed by the changing technology and practices in overnight accommodation.
Lake County and Some Stearns County Townships hit “Pause” on Vacation Rentals  
In May, Lake County passed a one-year moratorium on any new short-term vacation rentals as the county grapples with concerns around housing shortages, property stewardship, and fair regulations. Several townships in Stearns County have taken similar actions to pause new rentals until the local governments can figure out the correct regulatory balance.
Review Lake County's Moratorium
Stearns County and Cook County Consider Updates to their Ordinances
As local townships hit pause, County Commissioners and staff in Stearns County are strongly considering updates to their regulations county-wide. Stearns was one of the first counties in the state in 2012 to address vacation rental regulation by requiring permits. Hospitality Minnesota has been in communication with county officials and hospitality thought leaders and we have shared both the Issue Brief and Model STVR Policy Checklist with the county and offered to serve as a resource. Similarly, Cook County has created a committee to review the ordinance it passed in 2019, which Hospitality Minnesota worked on. Much of the ordinance includes our suggestions. As in Stearns, we are in conversation with county officials and local hospitality leaders and have provided our resource materials and offers to aid in any way helpful.
Read Our Issue Brief
Access Our Model STVR Policy Checklist
Want to get involved? 
Are you interested in advocating for your county or local government to create a fair and level playing field through a vacation rental ordinance, or to improve the current regulations? We have tools and networking resources to help. 
Contact Ben

Session Wrap-Up

5/23/2022

 
Legislative Deadline Passes With Work Unfinished, Special Session Unclear
The Legislature could not come to agreement on a variety of spending bills prior to last night’s midnight deadline and will adjourn today. There are ongoing discussions regarding the potential of a short special session if agreement can be reached quickly. Unfortunately, several of our key objectives were caught in the crossfire because larger bills they were attached to did not get passed. The following measures would require a special session in order to pass omnibus bills related to taxes, jobs and environment:
  • Restaurant Revitalization Fund Grants Tax-Free
  • Online Hospitality Training Grant
  • Property and Other Tax Relief
  • Explore Minnesota Tourism Funding Expansion
What Did Pass? 
Several of our legislative priorities were passed into law this session:
  • Unemployment Insurance The State agreed to pay $2.7B from the general fund to pay back the federal government and replenish the UI Trust Fund, rather than raising payroll taxes on hospitality (and other businesses). ​
  • Coleman Act Fix—Open Wholesale on Liquor The State will now allow open wholesale on liquor, a reaction to the federal court striking down Minnesota’s Coleman Act as unconstitutional. Had the Legislature not acted, large out-of-state producers would have been allowed to use exclusive contracts, likely driving up price for any purchasers of liquor across all three sectors.
Read Our Coalition Brief
  • Broadband Expansion The Legislature authorized the state to seek an additional $60M in American Rescue Plan dollars to expand broadband and allocated an additional $50M from the general fund over the next two years. This significant investment, in addition to other large investments we supported in recent years will continue to improve statewide connectivity, a long-term priority of our association. 
Read Our Issue Brief
Stay tuned for additional updates on a potential special session.
Reference Our Legislative Agenda

Capitol Update | May 13, 2022

5/13/2022

 
Some Victories, More Work to be Done as Session Nears Conclusion
​With only 10 days left in the legislative session and a historic budget surplus, legislators remain far apart on numerous policy and finance decisions.  Here’s a status breakdown of legislation in-play or concluded affecting our industry; use the the link below to review our legislative priorities for this session.
2022 Legislative Agenda

Unemployment Insurance Fix  The biggest bipartisan accomplishment to date is passage of legislation paying back the federal government and the UI Trust fund without spiking payroll taxes on hospitality (and other business) operators.  This was a top legislative priority of ours this session.  We appreciate the work of Senator Pratt, Representatives Noor and Pelowski, and Governor Walz to get this done and the engagement of all of our members that participated in our calls to action on this.

“Frontline” Worker Pay  As part of the UI Trust Fund negotiations, legislators agreed to expand the “frontline” worker pay agreement from last session.  The benefits include foodservice and hotel workers (though there are exclusions, including for workers who received 20 or more weeks of unemployment benefits).  Employers are required to notify workers of their potential benefits.  
Read More and Sign-Up for Notifications

Tax Relief for Hospitality Businesses  Hospitality Minnesota supports 1) ensuring Restaurant Revitalization Fund grants and other federal relief are tax free; 2) phasing out the state levy property tax; 3) exempting restaurant equipment from the sales tax; 4) providing property tax relief to small resorts by increasing the class tier caps; 5) protecting the lodging tax from diversions to capital projects (such as proposals in Woodbury and Plymouth).  We issued a letter to the two tax chairs outlining our priorities. This week, we also testified before the Senate Tax Committee to advance our advocacy.  
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The Senate and House positions remain widely divergent on tax policy and there is very real concern about the ability to find compromise in the coming days, potentially jeopardizing policy that could help our industry.  Here’s a breakdown of where the two bodies are at on our key issues.

Restaurant Revitalization Fund Grants Tax-Free
State General Property Tax Phase-Out
Exempt Restaurant Equipment from Sales Tax
Small Resorts Property Tax Relief
​Diversion of Lodging Tax in Woodbury and Plymouth
In Senate Tax Bill
​x
x

​x

In House Tax Bill
​x

x

​x

Take Action NOW
Use the messaging in our Issue Briefs linked below to contact the senate tax chair and house conferees for the omnibus tax bill conference committee today and ask them to support our industry by:
  1. Ensuring Restaurant Revitalization Fund grants and other federal relief are tax-Free
  2. Phasing out the state general levy property tax
  3. Exempting restaurant equipment from the sales tax
  4. Providing property tax relief to small resorts; and
  5. Protecting the lodging tax and not diverting it to capital projects in Woodbury and Plymouth
Current Conferees:
  • Chair Carla Nelson
  • Chair Paul Marquart
  • Representative Cheryl Youakim
  • Representative Dave Lislegard
  • Representative Kaohly Her
  • Representative Greg Davids
Additional conferees will be announce on Monday, May 16; stay tuned.
Read Our Letter to the Tax Chairs
Watch Our Testimony
Read Our Issue Brief: Phase Out the Statewide Business Property Tax
Read Our Issue Brief: Exempt Restaurant Equipment from the Sales Tax
Read Our Issue Brief: Protect the Use of Local Option Lodging Taxes

Open Wholesale on Liquor  This issue impacts any hospitality business that purchases liquor, from small ma-and-pa resorts, to restaurants, bars, and hotels.  Last month, the U.S. Federal District Court struck down Minnesota’s “Coleman Act” as unconstitutional.  Unless the legislature acts to ensure open wholesale, large-scale out-of-state producers will be able to use exclusive contracts, driving up cost for our members and other retail purchasers.  This is a top issue for our industry, and we are working with a coalition to ensure open wholesale for all.  
 
While the Senate passed SF3008 the fix to the Coleman Act unanimously, the House added a variety of additional alcohol policy items to its bill before passing it 85-48.  The House version of the bill, summarized by House Research and linked below, expands freedom for craft brewers/distillers to sell their products (in volume and/or container), allows 17-year-olds limited ability to serve alcohol, allows counties to issue liquor licenses to resorts and others and other provisions.
Take Action NOW
Contact the conferees and tell them to pass the Coleman Act fix and help our hospitality businesses!

Conferees:
  • Chair Gary Dahms
  • Senator Karin Housley
  • Senator Paul Utke
  • Senator Paul Jasinski
  • Senator Susan Kent
  • Chair Zack Stephenson
  • Representative Liz Olson
  • Representative Dan Wolgamott
  • Representative Carlie Kotyza-Witthuhn
  • Representative Jim Nash
Read Our Coalition Brief
Review SF3008
Read the House Research Summary

Workforce and Jobs Proposals  As we previously reported, we were disappointed that neither the House nor Senate omnibus jobs bills included our online hospitality training program.  This bipartisan legislation would appropriate $275,000 to create an online hospitality training program through the University of Minnesota Tourism Center (in partnership with Explore Minnesota Tourism), modeled after the highly successful program in South Dakota.   We have sent a letter asking that the conference committee reconsider including HF3550/SF3771.  
Take Action NOW
Contact the conferees today and ask them to invest in much-needed hospitality workforce training by including HF3550/SF3771 in the omnibus jobs bill.
Conferees:

  • Chair Eric Pratt
  • Senator Jason Rarick
  • Senator Gary Dahms
  • Senator David Senjem
  • Senator Nick Frentz
  • Chair Mohamud Noor
  • Representative Rob Ecklund
  • Representative Jamie Long
  • Representative Zack Stephenson
  • Representative Chris Swedzinski
The House workforce/jobs bill also includes a scaled-downed version or Rep. Sandstede’s bill to provide direct grant relief to small businesses impacted by COVID.  The current proposal would provide $35M in grants (down from $100M) but is not included in the Senate proposal.
Visit South Dakota Site
Review HF3550/SF3771
Read Our Issue Brief
Read Our Letter

New Hotel/Overnight Accomodation Regulations  The House State Government Omnibus bill includes a provision allowing local governments to add new and unnecessary regulatory burden on hotels and overnight accommodations on top of existing state and county licensure.  We sent a letter opposing this legislation and are in communication with the senate chair, Mary Kiffmeyer, who has also expressed that she shares our concerns. We continue to work to protect hotels and other overnight accommodations from over-regulation.
Read Our Letter

Explore Minnesota Tourism Funding  Hospitality Minnesota supports an additional $10M in funding for Explore Minnesota Tourism in the House Omnibus Environment bill for tourism industry recovery grants.  While the Tourism Growth Coalition (of which we are part) proposed $6M, the House has increased the ask substantially, which we support.  The Senate bill does not currently include this provision and instead would direct $1.45M to Minnesota Sports and Events to attract large scale sports and events to the state. 
Read Our Issue Brief

Broadband Expansion  The House Agriculture omnibus bill includes a proposal for $25M in new funding for expanding broadband.  We have had good success in recent years working with a coalition to expand access to broadband to all four corners of the state and continue to support additional investment that will aid hospitality businesses and guests.  
Read Our Issue Brief

Invasive Species  In addition to the $45M investments made last year to prevent and mitigate invasive species, the House Omnibus Environment bill proposes an additional $2.3M ($1.8M to local governments and lake associations to deal with aquatic species and $500,000 for cooperative weed management).  Hospitality Minnesota supports an aggressive and comprehensive approach to dealing with invasive species. 
Read Our Issue Brief

Boating Licensure   We are monitoring a provision in the House Omnibus Environment bill (and heard in senate committee) to create a license requirement for boat operators in Minnesota.  We have relayed some concerns about requirements for resorts and rental operators to enforce the law, in particular a provision that could require them to administer a test to renters even if the renter has already obtained a license or is exempt. The mark-up linked below includes exemptions and requirements of note.
Read the Mark-Up

Paid Leave Proposals  Hospitality Minnesota supports the ability of operators to offer competitive leave benefits on a voluntary basis within their financial means.  The House and Senate have competing proposals on paid leave, with the House passing government mandated benefits funded by employers (and potentially partially funded by employees for family leave).  The Senate proposal would incentive purchase of insurance or payment of benefits through tax credits up to $3,000 per worker, rather than mandating a specific benefit package.  With only 10 days left in session and the parties so far apart, a deal appears unlikely on this issue this session.  
Read Our Issue Brief 

With only 10 days left in the legislative session and wide gaps between the parties’ policy and finance philosophies and positions, the situation is very fluid.  Stay-tuned for additional updates and potential opportunities for grassroots engagement in the endgame.  

In the meantime, you can contribute to our understanding of the conditions that drive our policy and advocacy work by completing the Q2 Business Conditions Survey.

Want to get more involved?  Join the HM Advocacy Group available to all members by contacting Ben Wogsland. 
Complete The Survey
Contact Ben

Capitol Update | Tuesday, April 5, 2022

4/5/2022

 
The Big Picture  With only seven weeks to go until adjournment, our divided legislature continues to be far apart on how to best use the historic $9 billion surplus to hasten the economic recovery and to address our state’s needs.  There is increased speculation that the parties may not reach agreement and may leave much of the surplus until next year.  Given that 2022 is not a traditional budget year, the legislature technically does not have to pass finance bills or spend the surplus.   Our continued advocacy work this session is centered around two principles:
  1. Operators are not in a position to take on new cost burdens from the State in 2022; and
  2. The recovery of the industry and the economy would be hastened by economic stimulus now.

Unemployment Insurance Trust Fund  Despite early statements of support from both Senate republicans and the governor to address the $2.7 billion needed to repay the federal government and refill the Unemployment Insurance Trust Fund, resolution has been elusive.  While the Senate has already passed the bill by a wide bipartisan margin, House democrats continue to hold out for agreement on frontline worker pay beyond the $250 million agreed to last session.  We continue to work with a coalition of business organizations to push for resolution of the UI Trust Fund ASAP and block significant payroll tax increases.

Take Action:
  • Contact your representative and ask them to demand a vote on replenishing the UI Trust Fund.

Restaurant Revitalization Fund Tax Free  Our work at the Minnesota Legislature is paying off as yesterday our bill making Restaurant Revitalization Funds tax free was included in the release of both the House and Senate Omnibus Tax bills.  We have testified in multiple committees and engaged you as members in direct action to get to this point.  Thank you for going to bat!  The bills also includes conformity on the EIDL loan advances and the Shuttered Venue Operators Grant that was part of our advocacy efforts.
Left to right: Rep. Paul Marquart (Dilworth), Chair, House Tax Committee; Sen. Carla Nelson (Rochester), Chair, Senate Tax Committee;
​and Lead Authors Rep. Dave Baker (Willmar) and Sen. Karla Bingham (Cottage Grove)
Take Action
  • Send a quick note to the chairs of the House and Senate Tax Committees to thank them for including this critical provision. Contact Rep. Marquart.    Contact Sen. Nelson.​
  • Let our bipartisan lead authors know you appreciate their efforts to advance the bill.  Contact Rep. Baker.  Contact Sen. Bingham.

Push to Replenish the Restaurant Revitalization Fund  The US House, and perhaps the Senate, are expected to vote to replenish the Restaurant Revitalization Fund (RRF). Lawmakers need to hear stories from constituents about the crucial need for this additional relief.
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Take Action
  • Participate in the National Restaurant Association's grassroots activation campaign to help generate strong bipartisan support for the RRF.

Online Hospitality Workforce Training Program  Despite our bipartisan bill receiving a positive senate committee hearing and passing two House committees unanimously, HF3550/SF3771 was surprisingly not included in either the House or Senate Omnibus Bills released yesterday.  Late yesterday, we testified before the House Workforce Committee, asking for reconsideration of our bill, which would create an online hospitality training program modeled on South Dakota's offering.
Picture
Watch Our Testimony
Check Out the South Dakota Program
Take Action
  • Contact the committee chairs Rep. Noor and Sen. Pratt and ask them to include HF3550/SF3771 in the Ominbus Jobs/Workforce bill.
    • ​Send them our Issue Brief.
    • Remind them the bills is supported by:
  • Minnesota Chamber of Commerce
  • MN Tourism Growth Coalition
  • MACVB
  • Visit St. Paul
  • Meet Minneapolis
  • Minneapolis Regional Chamber
  • Brainerd Lakes Chamber
  • ​Rochester Area Chamber
  • Duluth Area Chamber
  • Visit Mankato
  • Greater Minneapolis Hotel Association
  • MLBA
  • Minnesota Craft Brewer’s Guild
  • Additionally, you might reach out to the other committee members on the House Workforce Committee and Senate Jobs committee and ask them to go to bat for HF3550/SF3771.

Hospitality Grant Relief  As we reported last week, Rep. Sandstede (Hibbing) proposed $100 million in grants (up to $25,000) to certain hospitality businesses impacted by COVID.  The House Omnibus Bill released yesterday pared the relief back to $35 million.  Late yesterday, we testified before the committee to request the program be significantly expanded (both in size and scope) and that it include hotels in need, as well.  The Senate Omnibus Jobs bill thus far does not include grant relief for our industry and is limited to only $6 million in total new spending compared to $387 million in the House proposal.  
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Watch Our Testimony
Take Action
Contact the committee chairs, Rep. Noor and Sen. Pratt and ask them to include significantly expanded grant relief for hospitality businesses in need.  You can remind them that Wisconsin has passed over $900 million in small business direct grant relief (compared to Minnesota’s $345 million), including $93 million for hotels.  Minnesota can do better by businesses hit hard by the pandemic.

Open Wholesale on Liquor  This session we have been working with a coalition to ensure open wholesale on liquor.  As we reported last week, the courts have ruled the “Coleman Act” unconstitutional due to its “discriminatory treatment” of out-of-state producers.  This means that if the legislature does not act to create true open wholesale for all parties, giant out of state distributors will be permitted to use exclusive contracts, likely driving up cost for purchasers of spirits such as our members, and potentially creating further supply chain issues.  Thankfully, the judge in the case delayed the effect of the ruling for 60 days, giving the Legislature time to act.  While the senate bill has been passed to the floor, the house version awaits action in the Ways and Means committee.
Read Our Coalition Brief​
Take Action
  • Contact your legislators and urge them to pass SF3008/HF2767 this session.

Property Tax Relief  Hospitality Minnesota supports the elimination of the state property tax levy.  While last session we won an incremental victory by raising the property value exemption, there may be an opportunity to further this work this session.  Sen. Nelson (Rochester) has a bill to repeal the tax and is the senate tax chair.  While the business community has been focused on UI so far this session, there may be additional opportunities to advance business property tax reform later this session.  We have met with both tax chairs on our position and will continue to monitor the situation for opportunities. 
Read Our Issue Brief  

Sales Tax Exemption on Restaurant Equipment  Building on momentum from last session, we have pressed hard for inclusion of this long-term priority this year.  The House Omnibus Tax bill revealed yesterday does include our bill, authored by Rep. Baker (Willmar).  The current Senate Omnibus Tax bill does not include our bill, however, meaning there is more work ahead.
 
Take Action
  • Contact Chair Marquart (Dilworth) and thank him for including this critical provision and contact Rep. Baker (Willmar) and thank him for authoring the bill.
  • Contact Chair Nelson (Rochester) and the Senate Tax Committee members and ask them to include SF1318/HF921 in the Omnibus Tax bill.

​Explore Minnesota Tourism Funding  Hospitality Minnesota is part of a coalition seeking additional funding of $6 million to EMT for economic recovery grants.  The recently released Senate Omnibus Environment committee does not include this provision, but instead directs $1.45 million to EMT to promote large scale sporting and other events.  The House Omnibus Environment bill includes our ask, but also raises the investment to $10 million.  We will be monitoring this closely as it moves to conference committee.
 Read Our Issue Brief
Take Action  
  • Contact Chair Hansen (South St. Paul) and thank him for including $10 million in EMT funding and thank the bill authors, Sen. Ruud (Breezy Point) and Rep. Christensen (Stillwater).

​New Hotel Regulations  As we have reported previously, legislation creating an additional and unnecessary bureaucratic licensure structure at the city/town level over hotels (and potentially resorts) was passed to the House Floor.  We have been in contact with the Senate committee with jurisdiction over the bill and submitted a letter to key players and the author.  The Senate committee has not heard the bill to date.  We are closely monitoring the State Government Omnibus bills to see if it is added as an amendment in the coming weeks and will act accordingly.
​Read Our Letter to Legislators

​Border/BWCA Closure Assistance  Legislation supported by Hospitality Minnesota to provide $7.5 million in grants to small businesses impacted by the closures of the Canadian border and the BWCA has advanced and has now received a hearing in a Senate committee and is included in the House Omnibus Jobs bill release yesterday.  We testified in support of the measure late yesterday and will continue to advocate for its passage.  The bills are authored by Sen. Bakk (Cook) and Rep. Ecklund (International Falls).  

​Protecting the Lodging Tax  Unfortunately, provisions to redirect the lodging tax for capital projects in Woodbury and to permanently allow redirection in Plymouth have advanced in the House Omnibus tax bill.  We have opposed these measures at every step and will provide additional testimony in the House Tax committee tomorrow.  These provisions are not included in the current Senate Omnibus Tax bill. 
Read Our Issue Brief    

​Resort Spa De-Regulation  A bill to de-regulate spas/hot tubs at resorts (as was allowed for Houseboats several years back) has advanced to the Senate floor and has been included in the Health and Human Services Omnibus bill.  Sen. Bakk proposes the bill would put resorts with stand-alone single unit spa pools in a room or cabin on an even playing field with cabin rentals and/or vacation rentals. In a Senate hearing, HM member Mindy Fredrikson testified that as a resort owner, the current regulations triple the cost of adding a hot tub to a unit (over $60,000 per), putting resorts on an uneven playing field with short-term vacation rentals that are under-regulated or unregulated in this area under current practice. 
Review SF2145
View the Hearing 

​Employer Mandates  While debates around minimum wage and predictive scheduling have been quiet this session, competing proposals on paid family leave have taken shape with democrats favoring a state-run program funded by a new payroll tax (0.6% split between employer and employee) and mandated on all employers. Similar programs have run into varying problems in Oregon, Washington, and New Jersey.  Alternatively, republicans have released a plan that would create tax credits for small businesses seeking to add coverage on the private marketplace.  Hospitality Minnesota supports employers adding competitive benefits packages to their employee offerings, but they must be able to do so on a voluntary basis within their financial ability. 
Read Our Issue Brief

Hotel Fire Marshall Policy Yesterday, we participated in a meeting with the State Fire Marshall Division, which is seeking input on its five-year strategic plan. Participants on the call included representatives from the governor’s office, the Department of Education, Department of Public Safety, Minnesota Management and Budget, educators, assisted living professionals and others. 
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On the call, EVP Ben Wogsland advocated for the Fire Marshall to:
  1. Eliminate onerous fees on hotels for inspections and seek general funding from the state;
  2. Ensure inspection schedules are regular (and not early) so that operators can plan; and
  3. Regulate short-term vacation rentals in the same manner as other overnight accommodations.

​Federal RRF Replenishment  In what may be the final effort to get the Restaurant Revitalization Fund Replenished at the federal level, we expect the U.S. House of Representatives to bring the bill up for a vote as a stand-alone as early as this Thursday. We believe the votes are there to pass the House, but a wide bipartisan total would dramatically improve the chances of Senate passage, which up till now has appeared unlikely (despite both MN senators supporting us).
 
Take Action
  • Contact your U.S. Representative today and ask them to vote to Replenish RRF so that 2,500 small businesses that were left behind can get the help they need.

​New Federal Visa Proposal The National Restaurant Association is supporting a new federal visa proposal that would allow up to 85,000 visa workers to enter the U.S. on 3-year terms on new “H-2C” visa to help fill the workforce shortage in foodservice businesses.
 
Take Action
  • Contact your federal lawmakers and ask them to co-author and support HF7239, the Essential Workers for Economic Advancement Act.

​These are some of the key issues we are tracking and working on at the Capitol and federally. Don’t see something you care about, or want more information?  We are also happy to help you set up meetings with your legislators and provide you with talking points to move our industry agenda forward.  Contact ben@hospitalitymn.com 
 
Want to get more involved?
  • Join the HM Advocacy Group and help set our policy agenda and strategy.  Meeting are once per month via Zoom.  Contact ben@hospitalitymn.com  

House Tax Committee Hears RRF Conformity

3/24/2022

 
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This afternoon, we provided testimony before the House Tax Committee on stand-alone legislation authored by Rep. Baker (Willmar) to conform MN to the federal standard and make RRF tax free. This is the third hearing on this issue between the House and Senate. We urged the committee to act swiftly to pass this measure as a stand-alone (like Wisconsin did last week), rather than waiting for an Omnibus Tax bill negotiation that likely won’t be completed till session’s end, missing the next tax filing deadline. We will continue to keep the pressure on and encourage members to contact their legislators and demand they pass RRF tax conformity now.

Review the Legislation 
Contact Your Legislators ​
Watch the Testimony

Online Hospitality Training Bill Passes Another Committee

3/24/2022

 
Yesterday, the House Higher Education Committee heard our bill to create a free online hospitality training program. We have worked hard to build a strong coalition of supporters to address the workforce shortage, and our strategy of partnering with the U of M Tourism Center and Explore Minnesota Tourism seems to be resonating with policymakers, as the bill was passed 17-0 and sent to the Workforce Committee. With this action, the bill has now made deadline. Testifying were (l to r): Jason Subbert (TPI Hospitality), Xinyi Qian (U of M Tourism Center), and Ben Wogsland (Hospitality Minnesota).
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Read Our Issue Brief
Watch Our Testimony

DEED Hospitality Roundtable

3/24/2022

 
On Tuesday’s Hospitality Roundtable call, Ben Wogsland briefed Steve Grove, commissioner at DEED, and Lauren Bennett-McGinty, director at Explore Minnesota Tourism, and others on the current Economic Snapshot. Thank you to members Terri Huml (Gianni’s) and Pete Mihajlov (Parasole), who shared their insights on the state of the industry.

Ben also highlighted our workforce efforts, including the NE Minnesota Gathering held in Duluth on Tuesday, which welcomed hospitality leaders from across the region for lunch and a conversation on the workforce issues facing hospitality business in the region.

Read the Economic Snapshot
On seeing ProStart teams in action recently, state leaders on the call had this to say:
“The ProStart program is a great pathway for
young Minnesotans to begin building the future
of Minnesota’s hospitality industry. As Minnesota’s hospitality market roars back, we’ll need these
future leaders to help write the next chapter
​of this vital industry for the state’s economy.”

​

Steve Grove, Commissioner
MN Department of Employment and Economic Development
“Minnesota’s tourism and hospitality industry continues to experience labor challenges,
impacting the ability to deliver the same level of experience that guests experienced pre-pandemic. The ProStart program provides students with
a detailed introduction to the industry. Not only
are students excited and engaged to participate,
they walk away with new opportunities to work
at local restaurants, hotels, resorts and
more throughout the state.”  

Lauren Bennett-McGinty, Director
Explore Minnesota Tourism

HM Team Meets with Senate Majority Leader

3/16/2022

 
This morning we met with Senate Majority Leader Jeremy Miller (Winona) to push forward our legislative priorities. Thank you to HM Advocacy Group Members Tom Nesheim (Clive’s Roadhouse) and Tony Boen (Grandma’s Restaurant) for joining the meeting. We had a productive meeting and advanced our positions on workforce training investment, direct grant relief, UI Trust Fund, RRF-tax free, sales tax on restaurant equipment, tax relief, and tourism promotion. We shared our brand-new Economic Snapshot and used the data our members provided to help support our industry’s legislative priorities. In the last two weeks we’ve also met with the House Speaker and House Minority leader, as well as key legislative chairs with jurisdiction over the issues you care about most. Want to get more involved? Contact Ben Wogsland to join the HM Advocacy Group.
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Snapshot Released on 2nd Anniversary of  Shutdown

3/15/2022

 
Two years ago today, foodservice and other hospitality businesses were shut down as the state grappled with uncertainties around the developing COVID-19 pandemic.  No industry has been hit harder by the following economic conditions, including shutdowns and limitations that reduced revenue by an equivalent of up to 249 days.  Experts project that Minnesota’s hospitality and tourism industry lost over $15 billion in revenue.  At the same time, operators’ bills for rent, mortgage, insurance, utilities, taxes, and other costs continued unabated, leaving a many in debt as they work to emerge from the crisis.  Today, over half of restaurants and hotels project that revenue won’t return to “normal” until 2023 or later.  The situation is made worse by the fact that the industry now has 32,000 less workers than pre-pandemic levels.  This report and the data within helps drive our legislative engagement and communications strategy as an industry and is important information for our members and allies to understand and be conversant in.
Read the Economic Snapshot
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