Minnesota Legislative Bulletin

Minnesota Legislative Bulletin

February 15, 2008

Join Capitol Connections Starting 10:30 AM, This Monday February 18, 2008Courtesy of Marathon Petroleum and MN Retail Association (MnRA) Capitol Connection Conference Calls occur each Monday (during Session) at 10:30 AM CDT. Call in to review what has been happening with politics in Minnesota. This MnRA service has been extended to our members through an alliance agreement.

Just call toll-free: 1-800-713-8900, and enter PIN: 4213757#.

The busy upcoming schedule for the week of February 18th, will be discussed. The agenda will be as follows:

Agenda

1. Minimum Wage

2. Restrictions for prescribing legend drugs-House File 2639

3. Transportation Funding

4. Pawnbroker Bill

5. Social Security Number Restriction Changes

6. Prohibition on School Year start before Labor Day

7. Health Care Reform

Two items on the agenda will be of particular interest for you:

Minimum Wage

Buzz Anderson, executive director of MnRA, met with the Department of Labor and Industry Commissioner, Steve Sviggum. Commissioner Sviggum wished to discuss a possible increase in the minimum wage.

The Commissioner is considering a 30 cents raise in the minimum wage above the current federal minimum wage. This is being done in attempt to accomplish several goals.

1.Avoid the passage of a Democratic legislative proposal that would increase the minimum wage to $7.75 per hour on August 1, 2008.

2.Avoid a Governor veto and possible override by the Democratically controlled House and Senate.

To show how the Sviggum minimum wage increase might avoid scenario one and two, please review the chart below.

Fed Minimum Wage State Minimum Wage Proposal DFL ’08

Bill $5.85 as of July 24, 2007 $6.15 per hour/passed in 2006 plus $7.75/0801/08$6.55 on July 24, 2008 $6.85 proposed for 2008 session $6.75 small business$7.25 on July 24, 2009 plus tip credit & $5. 55 for small indexing/ CPI employers, no indexing , 90 day training wage of $5.10 for 20 years of age and younger. $7.55 August 1, 2009

Commissioner Sviggum indicated that this proposal was brought forth for two reasons:

• Hospitality Minnesota wants very badly for Minnesota to adopt a tip credit. If the business community agreed to a 30-cent increase in the minimum wage, a tip credit would also have to be adopted for restaurants and there would be assurance that there would be no indexing of the new minimum wage as passed by the Senate last year. A 90-day training wage would also be added for employees 20 or younger.
• The current proposal in the legislature calls for more. A compromise of a 30 cent per hour increase with the tip credit and no indexing would theoretically discourage passage of SF 875, which has already passed the Senate and now sits in the House of Representatives. It is likely to be pushed by Rep. Tom Rukavina in House of Representatives in the 2008 session.

The proposal in SF 875 would require large employers who gross more than $625,000 per year to pay $6.75 per hour immediately and $7.75 per hour on August 1, 2008.

Small employers who gross less than $625,000 would be required to pay $5.75 immediately and $6.75 on August 1, 2008.

The Minnesota proposal also includes an indexing proposal, which requires the Commissioner of Revenue to determine that indexed amount for January 1st of each subsequent year. The increase would be based off the consumer price index for all urban consumers as determined by the United States Department of Labor during the most recent 12 –month period for which data is available. The new wage would be increased by the percentage calculated by the commissioner and to the nearest cent.

If you wish more information or to register your thoughts on how this increase would impact your business, please respond to shanna@mnretail.org at MnRA.

Social Security Number Restrictions

Senators Betzold and Scheid introduced--S.F. No. 2390: A bill for an act relating to consumer protection; modifying restrictions on the collection and use of Social Security numbers; amending Minnesota Statutes 2006, section 325E.59, subdivision 3, by adding a subdivision; Minnesota Statutes 2007 Supplement, section 325E.59, subdivision 1.

Referred to the Committee on Commerce and Consumer Protection.

Paula Siewert

800-469-9078