​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.
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Read HF100/SF 73 
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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:
 

• Representative Hassan (62B, DFL)
• Representative Xiong (67B, DFL)
• Representative Nelson (38A, DFL)
• Representative Berg (55B, DFL)
• Representative Olson (08A, DFL)
• Senator Champion (59, DFL)
• Senator McEwen (08, DFL)
• Senator Mohamed (63, DFL)
• Senator Hauschild (03, DFL)
• Senator Gustafson (36, DFL)

 
All conference committees, bills, and conferee appointments can be tracked here.  
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The Senate tax package was introduced on Wednesday. Key provisions include:

• No significant changes to the lodging tax.
• The restaurant equipment sales tax exemption that we have advocated for was not included.
• The 1% food and beverage sales tax for the city of Wayzata is included.

 
The House tax package was approved on Thursday. Key provisions include:

• $3B in tax cuts with increases for top earners (party-line vote of 69-57).
• Local sales taxes and restaurant equipment sales tax exemption not included.
• Creates a new fifth-tier income tax rate for the highest 0.8% of earners

 
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.

​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 
House version:  

• $400K ProStart/HTMP appropriation (HF1240) 
• $2M in tourism industry recovery grants (HF232) 

Senate version: 

• $250K ProStart/HTMP appropriation (SF1578) 
• $350K Online Hospitality training program (SF2303)

 
Public Safety Omnibus 
House version:

• Carbon monoxide alarm requirement in all hotel rooms (HF406) 

 
State Government Omnibus  
House version:

• Municipal hotel licensing allowed (HF626) 

Senate version:

• Municipal hotel licensing allowed (SF833) 

 
Taxes Omnibus  

• Awaiting Senate release

 
Transportation Omnibus

• House version: $0.75 retail delivery fee (HF580) 

 
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:

• possess up to 2 ounces of cannabis flower in a public place or 1.5 pounds in a person’s residence; 
  
• possess or transport no more than 8 grams of adult-use cannabis concentrate; 
  
• possess or transport edible products infused with up to 800 milligrams of THC; 
  
• give away cannabis flower and cannabinoid products in an amount that is legal for a person to possess in public; 
  
• use cannabis flower and cannabinoid products in private areas; and 
  
• cultivate up to eight cannabis plants, of which four or fewer may be mature, flowering plants. (Note: while an individual may grow it – they cannot sell it, it’s for personal use).  

 
Other significant changes to Minnesota law include: 

• creating more than a dozen types of licenses for growing, selling, transporting and testing cannabis; 
  
• creating an Office of Cannabis Management to regulate cannabis and take enforcement actions; 
  
• taxing cannabis retail sales at 8%, in addition to any already imposed local or state taxes; 
  
• creating and funding programs to combat cannabis abuse; 
  
• creating grants to assist individuals entering the legal cannabis market; 
  
• eliminating criminal penalties for cannabis possession; and 
  
• expunging the criminal records of people previously convicted of low-level cannabis offenses. 

 
What about hemp-derived THC? 

• lower-potency hemp retailers are able to obtain licenses to continue selling edibles and drinks with no more than 5 milligrams of THC per serving (50 milligrams per package). 
• on-site consumption is permitted if the retailer has an on-site consumption endorsement; which is allowed to any lower-potency hemp edible retailer that also holds an on-sale license. 
• prior to initiating a sale, lower-potency hemp edible retailer must verify the customer is at least 21 years of age. 
• a lower-potency edible product retailer may not sell a lower-potency hemp edible to a person who is visibly intoxicated and for on-site consumption, it is prohibited to sell lower-potency hemp edibles to a customer when the retailer knows or reasonably should know the customer has consumed alcohol sold or provided by the lower-potency hemp edible retailer within the previous 5 hours.  
• a lower-potency edible product retailer may not allow for the dispensing of lower-potency hemp edibles in a vending machine or distribute or allow free samples of lower-potency hemp edibles.

 
What about workforce issues? 
 
We are currently working to better understand the bills implications for the workforce. A few things the bill does include: 

• There are not limitations on an employer’s ability to discipline or discharge and employee for cannabis flower, cannabis product, lower-potency hemp edible or hemp-derived consumer product use, procession, impairment, sale or transfer during work hours, on work premises, or while operating an employer’s vehicles, machinery, or equipment, or if a failure to do so would violate federal or state law or regulations or cause an employer to lose a monetary or licensing-related benefit under federal law or regulations.  
  
• An employer must not request or require a job applicant to undergo cannabis testing solely for the purpose of determining presence or absence of cannabis as a condition of employment unless otherwise required by state or federal law.  
  
• An employer may enact or enforce written rules prohibiting cannabis flower, cannabis product, lower-potency hemp edible or hemp-derived consumer product use, procession, impairment, sale or transfer while an employee is working or while an employee is on the employer’s premises or operating an employer’s vehicles, machinery, or equipment in a written policy that contains the minimum information required.  
  
• There are certain requirements and guidelines for when cannabis testing can be requested or required (such as an injury under believed impairment). 

 
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.  

​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.
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​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.  
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Read HF100/SF 73 

​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. 
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4/11 Testimony - Stephanie Shimp - Blue Plate Restaurant Group Testimony
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