Last week, the House introduced HF232, which puts in place additional funding for Explore Minnesota Tourism (EMT). The bill has 3 components, which include: 

• $215,000 in fiscal year 2024 and $215,000 in fiscal year 2025 for EMT to build administrative capacity to support in the areas of brand strategy, communications and industry relations. This would be from the general fund.  
  
• $10M in fiscal year 2024 to EMT for a tourism industry recovery grant program. The grant program must provide money to organizations, tribal governments and communities to excel the recovery of the state’s tourism industry. This is a onetime appropriation from the general fund. 
  
• $250,000 in fiscal year 2024 to EMT for a grant to the Grand Portage Band to focus on tourism to Grand Portage. This is a onetime appropriation from the general fund. 

The Senate and House have introduced SF225/HF406, which establish carbon monoxide alarm requirements modifications for hotels and lodging houses. This would a result in a change to “provide and install one approved and operational carbon monoxide alarm in each room lawfully used for sleeping” and “replace any required carbon monoxide alarm that has been stolen, removed, found missing or rendered inoperable” before a new occupancy. We are closely monitoring the legislation and checking in with members, as it has not yet been scheduled for a hearing. 
 
Please reach out to HM Director of Government Relations, Jill Sims, if you’d like to share feedback of how this would impact your business.  

 Read SF225/HF406 

Reach out to Jill regarding Carbon Monoxide Alarms

​This week, Governor Walz has begun to roll out components of his budget, which will be fully available by Tuesday, January 24. The announcement thus far has been focused on education and children. We will provide more updates next week as we have a full picture of the Governors proposed budget for 2024-2025. 

This week, the Senate began the hearing process for Paid Family and Medical Leave, SF2/HF2. Today, Senate Jobs and Economic Development committee heard the bill, and tomorrow Senate Labor will hear the bill. HM is closely monitoring the bill as a one size fits all mandate is challenging for small businesses. HM is weighing in appropriately and working in coalitions to give feedback on the legislation. 

Key components of the Paid Family and Medical Leave legislation, as drafted: 

• Establishment of a state-administered paid leave insurance program. 
  
• Payroll tax of 0.7%. 
  
• Employer will pay a yearly premium on employees taxable wages. Employer may deduct up to 50% of premium for employees wage. 
  
• Beginning on January 1, 2026 premiums may increase or decrease annual percentage rates based on the formula set by the state.  
  
• Funds partial wage replacement benefits for 12 weeks of paid parental and family leave; and 12 weeks of paid medical leave.  
  
• Employees could miss up to 24 weeks of work, plus potentially add Earned Safe and Sick Time or Family Medical Leave Act.  
  
• Effective January 1, 2024.  

Read SF2/HF2 

Read Senate Counsel Research Summary

Read HM Written Testimony for SF2

After a whirlwind week of legislative action, we’ve achieved a big win! Our association has been advocating for federal tax conformity to ensure that pandemic relief funds would not be taxable. The legislation takes effect immediately, just in time for the tax prep season.
 
We were honored to be invited to witness the bill signing, and be asked to make some brief comments. You can find the moment that Governor Walz thanks Hospitality Minnesota, Liz Rammer/CEO; and Cathy Bovard/Board Chair at 1:02 in KSTP's coverage. Liz takes the podium at 23:30 to make brief remarks and answer questions.
 
Watch KSTP's Coverage of Yesterday's Signing

Read Liz's Statement on the Passage

​On Monday, the House introduced their cannabis legalization bill, HF100, as well as the House Research Summary describing various provisions the bill would allow if signed into law. In order to best advocate for our industry, HM staff is coordinating conversations with other state associations across the country that have gone through similar legislation to guide our advocacy. To formalize our association's position on the issue, HM staff will conduct outreach to members to gather input on cannabis legalization. Watch for details.
 
For those unfamiliar with the details of what cannabis legalization could entail for Minnesota, the HM staff suggests reading the latest Star Tribune article discussing what impact legalization would have on the state. 

This week, Drivers Licenses for All (HF4/SF27) has received multiple hearings in the House and Senate. HM Director of Government Relations Jill Sims testified in support of HF4/SF27 in House Transportation on Tuesday and in support of HF4/SF27 in the Senate yesterday.

To date, 18 states across the country have enacted laws in which immigrants are able to obtain driving credentials, which provides for safer and more reliable transportation to and from work. As we await comprehensive immigration reform at the federal level, the reform at the state level will bring forward a practical solution what will benefit all of Minnesota.