Minnesota Legislative Bulletin

February 25, 2008

Join Monday's Conference Call to Get Caught up on the State Legislature
 
Courtesy of Mn Retail Association and Marathon Petroleum, 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. All members are welcome to participate.
 
Just call toll-free: 1-800-713-8900, and enter PIN: 4213757#.
 
The busy upcoming schedule for the week of February 25th, will be discussed.  The Agenda will be as follows:

I.Sales Tax Holiday on Energy Star Products
II.Minimum Wage
III.Environmental Issues
IV.Wireless Phone Regulation Senate File 833
V.Sales Tax Expansion to Clothes and Business Services
VI.Streamlining Government—Senator Metzen
VII.Economic Forecast
VIII.Motor Sports Bill
IX.Pawnbroker Bill
X.Override of the Gas Tax
 

Other Highlights Reported from Capitol Watch*
It's a Frantic Pace 

There is a frantic pace at the state Capitol with initiatives of all types coming daily.  Many of these initiatives have costly impacts on business. When the legislature acts in haste, the legislation proposed has secondary consequences that are not often anticipated.  MnRA is attempting to interact with as many legislators as possible to prevent costly unanticipated impacts on businesses.   This lists many of the key issues that were raised this week on Capitol Hill.  

Social Security Numbers

The Senate Commerce Committee met to discuss S.F. 2390, the legislation intended to solve the problem related to the restriction on the use of social security numbers. The bill was amended with a delete all amendment attached as a PDF in this Email.  Note that the delete all amendment was further altered with a minor change on line 1.34.  On that line, after the semi-colon, the word or was changed to and.
 
CDIA has indicated that the delete all amendment solves their problem with last year’s legislation and that if this language is enacted, the credit bureaus will continue to provide credit reports to retailers in Minnesota.
 
The solution adopted in yesterday's Senate Commerce Committee still has a long way to go in the legislative process.  It will be much more problematic to get this language passed through the House of Representatives.  MnRA will be meeting with other business groups today to discuss next steps. If you have any comments, please forward to shana@mnretail.org.

Elimination of Burdensome Rules on Business

Senator Metzen, Senate President and Chair of the Business, Industry, and Jobs Committee has let the association know that he  is interested in trying to eliminate state rules and regulations that are troublesome for business. He is hoping  the business community can give him some examples. 
 
If you have suggestions, please advice what are burdensome to you? Email me and I will see that it is forwarded to Sen. Metzen.

Transportation

A multi-billion-dollar state transportation plan sits in limbo   after clearing both houses of the Legislature, but lacking a clear sign that it can survive a promised veto from Gov. Tim Pawlenty, who believes it is too costly.   The $6.6 billion initiative, which would raise the state gasoline tax for the first time since 1988, was passed first by the House and then by the Senate after hours of debate Thursday.
DFLers had spent the day scaling back several tax increases in the measure and by midday had gained the support of the Minnesota Chamber of Commerce, one of the state's most influential lobbying groups.   The bill passed the House 89-4 4   and the Senate by  47-20 .  After the expected veto, the House will still need one more Republican vote to override the expected a veto.
In the House, 83 DFLers and 6 Republicans voted for the bill, while 42 Republicans and 2 DFLers opposed it.

DFLers said the tax increases in the bill would cost $126 annually for a family of four earning between $49,000 and $79,000 a year.
The bill would raise the gasoline tax by 5 cents a gallon by mid-September and add as much as another 3.5 cents until bonds that finance transportation projects are paid off. Under another provision, license tab fees on many cars and trucks, particularly luxury vehicles, would increase significantly.
In addition, county boards in the seven-county metro area could impose a quarter-cent sales tax and a $20 excise tax on new vehicles. The revenue from the sales tax would go toward transit. No referendum would be required.
With Thursday's changes, especially in the metro sales taxes, the bill's cost over the next decade was reduced by nearly $2 billion from the plan DFLers had introduced just over a week ago. 
House leaders said they wouldn't bring up another transportation bill if this one doesn't become law.  

Environment "Working Group"
 
This week a "working group" meeting was also held regarding environmental initiatives that some in the environment talk community think need to be considered this year.  The "working group" discussed a special beverage tax at point of sale for bottles and cans, a plastic bag-recycling program, a manufacturer responsibility model for collecting light bulbs containing mercury, and other initiatives. Since a "working group” does not have authority to vote on legislation, it is unclear if any of the discussion will result in legislation to be considered this year. 
 
Expanding the Sales Tax

Two key tax bills, HF 2163 and HF 2551 will be heard next week. These bills are scheduled for a hearing before the House Tax Committee on Tuesday, February 26 at 10:00a.m.

H2163 extends the sales tax to clothing, gasoline, drugs and several services, including legal, accounting, financial planning and brokerage. The bill reduces the sales tax rate from 6.5 percent to 4.5 percent and creates a clothing sales tax credit under the income tax law. H2551 extends the sales tax to clothing, creates a clothing sales tax credit and reduces the sales tax rate from 6.5 percent to 5.96 percent.

It is very unlikely that either of these bills will be adopted into law in 2008. However, the hearing regarding these bills is an indication of support for a serious consideration of expanding the sales tax base in Minnesota. We wanted you to be aware of this hearing and take notice of the beginning of this important debate.

Bill Introductions
 
Minnesota House

Unemployment Comp/ Independent Contractors
Johnson, Anzelc, Howes, Bigham and Mahoney introduced:
H. F. 3296, A bill for an act relating to unemployment compensation; eliminating an exception to the general rule for determining independent contractor status; requiring certain audit activities; repealing Minnesota Statutes 2007 Supplement, section 268.035, subdivision 25b.

The bill was read for the first time and referred to the Committee on Commerce and Labor.

Business Taxes/ R & D Credit

Mahoney, Carlson, Ruud and Solberg introduced:
H. F. 3315, A bill for an act relating to taxation; allowing additional research and development credit for small businesses; appropriating money; amending Minnesota Statutes 2006, section 290.068, subdivision 3, by adding subdivisions.
The bill was read for the first time and referred to the Committee on Taxes.

Credit Card Surcharge Regulation

Dill introduced:
H. F. 3332, A bill for an act relating to commerce; regulating surcharges on credit cards; amending Minnesota Statutes 2006, section 325G.051, subdivision 1.
The bill was read for the first time and referred to the Committee on Commerce and Labor

ATV Regulation

Dill introduced:
H. F. 3057, A bill for an act relating to natural resources; modifying requirements for youth operation of all-terrain vehicles; amending Minnesota Statutes 2006, section 84.9256, subdivision 1.

The bill was read for the first time and referred to the Committee on Environment and Natural Resources.

Uniform Permit Expirations on Motor Sports

Dill introduced:
H. F. 3068, A bill for an act relating to natural resources; providing a uniform expiration date for snowmobile registrations and trail stickers; extending effective period of temporary permits for snowmobiles, off-highway motorcycles, all-terrain vehicles, and watercraft; modifying temporary permit information requirements for snowmobiles; amending Minnesota Statutes 2006, sections 84.788, subdivision 3; 84.82, subdivision 2, by adding a subdivision; 84.922, subdivision 2; 86B.401, subdivision 2; Minnesota Statutes 2007 Supplement, section 84.8205, subdivision 1.

The bill was read for the first time and referred to the Committee on Environment and Natural Resources

Social Security Number Restrictions

Hilstrom introduced:
H. F. 3146, 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.

The bill was read for the first time and referred to the Committee on Commerce and Labor.

Bottled Water Regulations

Murphy, E. introduced:
H. F. 3148, A bill for an act relating to water; establishing the "Bottled Water Right-to-Know Act"; adding labeling requirements for bottled water; proposing coding for new law in Minnesota Statutes, chapter 31.

The bill was read for the first time and referred to the Committee on Commerce and Labor

Minnesota Senate

Mandatory Plastic Bag Recycling

Senator Olson, M. introduced:

S.F. No. 2780: A bill for an act relating to capital investment; authorizing spending to acquire and better public land and buildings and other improvements of a capital nature; authorizing the issuance of state bonds; appropriating money for a grant to the city of Cass Lake.

Referred to the Committee on Finance.

School Starts before Labor Day

Senators Lynch, Wiger and Hann introduced:

S.F. No. 2835: A bill for an act relating to education; providing an alternative school start date in 2009 and 2010.

Referred to the Committee on Education.

Sports Retail Fishing Regulation

Senators Prettner Solon, Marty, Chaudhary, Frederickson and Dille introduced:

S.F. No. 2889: A bill for an act relating to consumer protection; requiring lead sinkers, jigs, and lures offered for sale to bear a warning label; proposing coding for new law in Minnesota Statutes, chapter 325F.

Referred to the Committee on Commerce and Consumer Protection

Cell Phone Regulation

Senators Anderson, Dibble, Prettner Solon and Olson, M. introduced:

S.F. No. 2953: A bill for an act relating to consumer protection; limiting customer liability for the unauthorized use of lost or stolen cellular phones; proposing coding for new law in Minnesota Statutes, chapter 325F.

Referred to the Committee on Commerce and Consumer Protection.

Regards,
Paula Siewert, CAE
President
Northwestern Lumber Association
800-469-9078

*Capitol Watch is the weekly email publication of Mn Retail Association