Hospitality Minnesota went into the 2023 Legislative Session focused on policies that support our operators, address the workforce shortage, and promote tourism.
$250,000 ProStart/HTMP Appropriation
- Secured another grant for FY24/25 to support the Hospitality Minnesota Education Foundation’s mission to support existing ProStart and Hospitality Tourism & Management programs in schools across Minnesota. This will support closing our hospitality worker shortage.
$350,000 Online Hospitality Training Program Appropriation
- Secured a one-time appropriation grant for FY24/25 to create an Online Hospitality Training Program through the University of Minnesota Tourism Center.
- The training program will be an online modular hospitality-focused training program designed to prepare the hospitality workforce with basic customer service skills.
- The grant includes $25,000 annually for ongoing maintenance and program updates.
Food Exemption from Retail Delivery Fee
- The legislature established a $0.50 retail delivery fee on all retail deliveries over $100.
- Hospitality Minnesota successfully advocated for an exemption for all food deliveries.
Hospitality Seasonal Worker Exemption from Paid Family Medical Leave
- Accounting for the seasonal nature of our industry, we were able to secure an exemption for seasonal hospitality workers that work less than 150 days from the Paid Family Medical Leave program. There are revenue and disclosure requirements for the seasonal worker exemption.
Defended Appropriate Use of Special Taxes
- Prevented expansion of lodging taxes through numerous legislative attempts.
- Prevented implementation and expansion of the use of the food and beverage tax.
VETOED: Transportation Network Company (Uber/Lyft) Bill
- Would have established minimum payment requirement for TNC drivers, raising cost of rides.
- Paid Family Medical Leave (PFML)
- Establishes a state-administered paid leave insurance program that funds partial wage replacement for up to 20 weeks of paid parental and family leave; or employee medical leave.
- The program is funded through a 0.7% payroll tax collected on all taxable wages.
- Earned Sick and Safe Time (ESST)
- Creates a benefit for all employees, paid by the employer, to ensure they receive 1 hour of earned sick and safe time for every 30 hours worked.
- Employee means any person who is employed by an employer, including part time and seasonal, who work at least 80 hours per year.
- Local ordinances may exceed state law.
- Carbon Monoxide Alarms
- Requires every guest sleeping room in a hotel or lodging house to have an approved and operational carbon monoxide alarm installed effective August 01, 2024.
- Municipal Hotel Licensing
- Allows cities or townships to adopt an ordinance requiring hotels operating within its boundaries to have a valid license issued by the city or town. License can be revoked.
- Explore Minnesota Tourism Budget
- Historic funding level for Explore Minnesota Tourism, with budget doubled to $62.3 million.
- Changed the mission and structure of the agency to add business promotion.
- Tourism Improvement Districts (TID)
- Established authority for businesses and municipalities to adopt an ordinance establishing a tourism improvement district (TID).
- Allows for implementation of agreed-upon TID service charges to fund tourism projects.
- Aid to Counties Bordering Canada
- $5 million appropriated to aid business recovery from the Canadian border COVID closures.
- $2.1 million of the $5 million dedicated to remote recreational businesses in Lake of the Woods.
- Federal Tax Conformity
- Removes the state tax burden on federal relief in the form of EIDL advances, RFF grants, and Shuttered Venue grants. 2022 returns were updated, but the file was amended for 2021 and 2020.
- 1% Metro Sales Tax Increase
- Increase metro area sales tax by 1% to fund transportation (.75%) and housing (.25%).
- Counties impacted include Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.
- Local Sales Taxes
- Approved over 35 local options for sales taxes across the state.
- 2-year moratorium on new local sales tax option requests by cities (expires May 31, 2025).
- Creation of a Local Taxes Advisory Task Force to review criteria and qualifications for local food, food and beverage, and lodging taxes.
- Cannabis Legalization
- Allows for adult-use recreational cannabis for individuals 21 and older.
- Establishes the Office of Cannabis Management.
- Retailers may continue to sell THC products, under new guidelines, including a 10% tax on THC products. Retailer registration will be required in October 2023.
- Electronic Pull Tab Changes:
- Establishes changes to game interactions by requiring individually activating each line or row of play.
- Allows for removal of any device that does not conform beginning December 1, 2024.
- Drivers License for All
- Allows anyone to obtain a driver's license, regardless of immigration status.
- Boater Education
- Establishes requirement for boater education for all operators born after July 01, 1987.
- Resorts received exemption from enforcement for rentals.