On Tuesday, the Minnesota House passed HF100 to legalize recreational cannabis by a vote of 71 – 59. Today, the Senate will take up SF73 and is also expected to legalization recreational cannabis. There are differences between the bills, which will lead to a conference committee. Hospitality Minnesota will continue to monitor the progress of the legislation.
Conference Committees Named
As each body passes their omnibus packages, conference committees are being established and conferees appointed. The most important committee for the hospitality industry and our priority bills is the Omnibus Jobs, Economic Development, Labor and Industry appropriations committee. Appointees include:
All conference committees, bills, and conferee appointments can be tracked here.
Tax Bills Updates
The Senate tax package was introduced on Wednesday. Key provisions include:
The House tax package was approved on Thursday. Key provisions include:
Both packages include a new worldwide combined reporting provision for corporations – which would make Minnesota the first state and first governing body in the world to have such tax implications. The Council on State Taxation (COST) released a statement in response to this unprecedented provision.
Omnibus Bills Breakdown
As we approach the final month of session, we’re in full swing with “omnibus” bills; which are policies that are lumped together by topic into one package of bills. Hospitality Minnesota is tracking multiple omnibus bills, which are making their way through House and Senate now. Once omnibus bills pass their respective bodies, a conference committee is hosted to negotiate the differences between the House and Senate. Below are the omnibus bills with policy provisions we are tracking:
Jobs/Economic Development Omnibus
Public Safety Omnibus
State Government Omnibus
Hospitality Minnesota will continue to weigh in as appropriate and keep you updated through Capitol updates on these bills.
Next week, the House and Senate will vote on the omnibus cannabis bills (HF100 and SF73, respectively). While there are some differences, which are expected to be negotiated on in a conference committee, here are a few things to know regarding the legislation. The House version has made 15 committee stops, and would allow an individual age 21 and older to:
Other significant changes to Minnesota law include:
What about hemp-derived THC?
What about workforce issues?
We are currently working to better understand the bills implications for the workforce. A few things the bill does include:
Hospitality Minnesota will continue to review and monitor the cannabis bills over the coming days and weeks, with the intention of putting together a memo of relevant information.
Retail Delivery Fee
Last Thursday, the Senate Taxes Committee removed the 75-cent retail delivery fee from the Transportation omnibus bill. Senator Dibble, the Transporation Chair, indicated that there is not the political will or interest to pass this language in the Senate. This is a testament to the work of Hospitality Minnesota and the No Delivery Tax Coalition (www.nodeliverytax.com). Thank you to all members who have testified or completed the action alert.
Last week, the House Transportation Omnibus bill – which includes the retail delivery fee, passed it’s final committee of Ways and Means and is now eligible for a floor vote. The floor vote has been scheduled for Tuesday April 18. Transportation Chair Frank Hornstein and delivery fee author Representative Erin Koegel have indicated they will continue to push the delivery fee in conference negotiations.
Read MinnPost Coverage
Each session, the legislature moves omnibus bills, which are compilations of policies that are generally heard during session related to a particular topic. This week, we will compile and highlight the various omnibus bills that have policies/bills we have discussed so far this legislative session.
As omnibus bills are making their ways to the final committee stops and floor votes, they will then go to conference committees where the two chambers will negotiate on final language. Hospitality Minnesota will have continue to engage members through the final steps of this process.
The cannabis legalization bills have begun to move, with a House Ways and Means (final stop) and Senate Taxes (second to last stop) hearing scheduled for today. The legislative intentions seem to move the bill to the floor at least on the House side for a vote around 04/20.
More details to come on the cannabis bill this week.
Paid Family Medical Leave
Last Tuesday, the House Commerce committee heard HF2, the Paid Family Medical Leave bill. This is the first house hearing since February, and Paula Soderberg (Morrissey Hospitality) and Stephanie Shimp (Blue Plate Restaurant Group) shared industry insights on the challenges of the bill. The bill is awaiting its final hearing in the Senate and final hearings in the House. We anticipate those to happen in the next week or so.
Questions about Paid Family Medical Leave or Earned Sick and Safe Time? If you were unable to join us last week for the Earned Sick and Safe Time and Paid Family Medical Leave Member All Call, please head to the Member Portal to review the recording, the Paid Family Medical Leave memo and related slides.
Metro Sales Tax Increase
Despite a record $17.5 billion surplus, legislators are on track to raise taxes and various fees. In the metro area specifically, this will encompass a tax to generate $2.8 billion through a 1% sales tax rate to fund transportation and housing. The 1% metro sales tax increase will send .75% to transportation and .25% to housing. This does not include the delivery fee. If you have any questions, please reach out to Jill.
Follow as we advocate for the hospitality industry at the local, state and federal levels. This work has been a hallmark of the Association for decades, and will continue to be a core benefit of membership.