April 16, 2014 

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Week 8
Special Retail Issue Update    

 

As legislators spend time connecting with constituents in their district this week during an 11 day break, the Minnesota Retailers Association takes this opportunity to update members on the status of issues at the State Capitol.  Note: MnRA will not publish Retail At The Capitol this Friday.


Business-To-Business Tax Repeal - HF 1777 (Lenczewski/Skoe)

On March 21 Governor Dayton signed a tax cut bill as part of his "unsession" initiative that included the repeal of business-to-business tax (B2B) as well as a number of federal tax conformity changes.

 

MnRA supported the B2B repeal and was pleased to see the repeal passed before April 1 when the storage and warehouse taxes were slated to take effect.    

 

 

Minimum Wage - HF 2091 (Hayden/ Winkler)

On April 7 members of the Minimum Wage Conference Committee stated that they came to a compromise on increasing the minimum wage agreeing on $9.50/hr. for large business over $500,000 and $7.75/hr. for businesses under $500,000 by 2016 phased-in over a two and a half year period as well as a $7.75/hr. training wage for large businesses. The legislation also incorporates an inflator tied to the implicit price deflator beginning 2018, capped at 2.5% and gives the commissioner of labor and industry the authority to suspend and/or accelerate the inflator. Changes to the minimum wage were signed into law by Governor Dayton on April 14.

 

MnRA actively lobbied in opposition to a dramatic increase in minimum wage with future increases tied to inflation.  We remain concerned about the increase's impact on prices, hours, jobs, and communities.    

 

 

Data Breach - HF 2253 (Schoen)

 

This bill seeks to regulate data breach notifications and requires retailers to notify and compensate consumers in the event of a data breach. After being heard in the House Commerce and Consumer Protection Committee this bill has not seen much movement and will likely not see action this session.

 

MnRA opposes this legislation as its provisions hurt retailers who already work hard to protect consumers' data. We will continue to monitor this legislation and work with legislators.    

 

 

Smart Phone Kill Switch And Mobile Device Resale - HF 1952 (Atkins)/SF 1740 (Sieben)

This legislation requires a "kill switch" function to be installed on smart phones that would allow a consumer to render their phone useless in the event of a theft in hopes of deterring cell-phone theft. It also combined the cell phone re-sell language from SF 1964 (Dziedzic) and HF 2388 (Nelson) to further regulate retailers who buy and re-sell cell phones. This legislation is currently on the Senate and House floors and will likely be debated again after the Easter/Passover break.

 

MnRA has worked diligently with legislators to include language that exempts responsible retailers who operate under established re-sell programs and supports efforts to make the "kill switch" function a software modification rather than a hardware modification.   

 

 

Gas Price Bill - HF 1975(Schoen)/SF 1704 (Seiben)

SF 1704 and HF 1975 relate to the regulation of gasoline prices based on distance from a terminal. The Senate version was heard mid-March before the Senate Commerce Committee and has been laid over pending further discussion between stakeholders. The House version has not yet been heard.

 

MnRA will continue to work with the authors to address concerns of over pricing.   

 

 

Payday Loan Regulation - SF 2368 (Hayden)/HF 2293 (Atkins)

SF 2368 and HF 2293 seek to further regulate the payday lending process by capping the number of loans a consumer can take out annually and mandating that consumer short-term lenders must first determine that the borrower has the ability to repay the loan. Both versions of the bill have passed out of committee to their respective floors and await further debate.

 

MnRA is concerned this legislation will damage responsible retailers and opposes undue regulation of the retail industry.  

 

 

Pharmacy Practices Act Changes - SF 2135 (Rosen)/HF 2545 (Liebling)

This legislation seeks to deal with a number of changes to the Pharmacy Practices Act including substances schedules modification, defining and redefining terms, modifying pharmacist participation in immunizations, as well as certain reporting obligations and licensing requirements. Both versions have passed through a number of committee stops. The language was included in SF1484 (Sheran) and will likely be considered on the floor after the legislature returns from break.

MnRA supports changes to Minnesota's Pharmacy Practices Act based on collaboration between retailers, industry groups, and the Minnesota Board of Pharmacy.   

 

 

Wholesale Gas Taxes - SF 2107 (Dibble)/HF 2395 (Hornstein)

As part of a comprehensive transportation finance bill, this provision imposes a tax on gasoline distributors. Both versions received one hearing in their respective bodies. They are currently still in Committee and may be debated further in when the legislature reconvenes after the Easter/Passover break.

 

MnRA opposes this legislation because of its negative impact on Minnesota's gasoline retailers and consumers.   

 

 

Criminal Records Expungement - HF 2576 (Melin/Champion)

This legislation deals with modifying the expungement process and requires business screening services to delete expunged records. HF 2576 passed the House on an 85-47 vote on April 8. The Senate is likely to take up the bill after the legislature returns from break.


MnRA continues to ensure the employer-employee relationship is upheld as well as ensuring retailers are not liable for hiring an employee with an expunged charge.   

 

 

E-Cigarette Regulation - SF 2027 (Sheran)/HF 1931 (Halverson)

SF 2027 and HF 1931 deal with the regulation of e-cigarettes. SF 2027 seeks to add e-cigarettes to the Freedom to Breathe Act (2012) thus prohibiting their use indoors while HF 1931 bans e-cigarettes only from state-owned buildings. The Senate version passed a number of Committee stops it remains in Senate Rules while the House version awaits debate by the full body.

 

MnRA is watching these bills to ensure e-cigarettes are not subject to more restrictions than traditional tobacco products.

 

 

Sunday Liquor Sales - HF 2590 (Loon)/SF 2031 (Reinert)

This legislation deals with allowing off-sale liquor on Sundays and holidays. Neither bills to repeal Sunday liquor laws in Minnesota made their policy deadlines. At this time, we believe no action will be taken on repealing Sunday liquor laws during this session.


MnRA is interested in the progress of these bills this year.   

 

 

Online/Electronic Lottery Sale Prohibition - SF 2128 (Skoe)/HF 2207 (Lenczewski)

This legislation seeks to prohibit the online sale of lottery tickets as well as the sale of lottery tickets at the gas pump. The Senate version awaits debate by the full body while the House version continues to be held up.

 

MnRA is concerned with the impact of online lottery sales on retailers and continues to monitor this legislation.    

 

 

Lead and Mercury Products - SF 2192 (Marty)/HF 2542 (Hortman)

This legislation regulates lead and mercury products (thermostats) and modifies the formaldehyde ban in children's products. Both bills are on the floor of their respective bodies.

 

MnRA will continue to work with the Minnesota Pollution Control Agency on this bill as it relates to impacts on retailers.   

 

 

Women's Economic Security Act - SF 2050 (Pappas)/HF 2536 (Melin)

The Women's Economic Security Act became the vehicle for a number of bills that MnRA was tracking this session including Sick and Safe Leave, Pay Equity, Pregnancy and Nursing Accommodations, as well as a number of other labor regulations. The House version passed as amended 106-24 on 4/9/14 while the Senate version awaits further action once the legislature returns from break. It is very likely that the Women's Economic Security Act will move to conference committee.

 

MnRA supports equal employment opportunities for women but is concerned with mandates in the bill that could result in liability for retailers.

 

 

AED Registration - SF 2260 (Nelson)/HF 1971 (Liebling)

This legislation requires that all AED's must be registered within 30 days of receiving the AED and mandates that the owner of the AED must post required information about its location, and its model and manufacturer. This legislation is currently on the floor of each respective body and both the Senate and House version have had a second reading. Expect this legislation to pass at some point when the Legislature returns from break.

 

MnRA will continue to monitor this legislation.

 

 

Triclosan Regulation 

HF 3089 (Atkins)/ No Senate companion: Under this bill products that contain triclosan or similar antibacterial compounds are permitted to be labeled as "triclosan free" under certain circumstances.


HF 2772
(Loeffler)/ SF 2908 (Hayden): Cleaning products containing triclosan would be prohibited from sale under this bill.

H.F. 3089 was introduced in the House Commerce and Consumer Protection Finance and Policy, where it was passed as amended; it awaits action by the full House. HF 3089 is less intrusive than HF 2772/ SF 2908.  

MnRA will continue to monitor this legislation.

 

 

Toxic Free Kids Act - HF 605 (Winkler)/SF 466 (Eaton)

On April 1, the Toxic Free Kids Act was included in HF3172, the House Supplemental Appropriations Omnibus Bill. On April 3, the Supplemental Omnibus was voted on in the House, where it passed 70-59. On April 8, the Senate passed HF3172 as amended 37-27. However, the Senate version of the bill does not contain the Toxic Free Kids Act. HF3172 will go to conference committee after the legislative recess.   

 

MnRA is concerned with this legislation due to its significant financial cost to retailers.

 

 

Employee E-Payment Regulation - HF 3276 (Erhardt)/SF 2242 (Franzen)

The E-payment legislation would allow employers to provide earnings statements to employees via electronic mail addresses or a cell phone number if an employee voluntarily consents to this method in writing. Both the House and the Senate version are currently held up in committee.

 

MnRA will continue to monitor this issue and work with legislators.

 

 

Cigarette Excise Tax - HF 3303 (Anzelc)/SF 2910 (Skoe)

This bill modifies the tax rate on certain cigarettes and repeals the annual indexing for cigarettes. Both the House and Senate version are currently still in committee with little likelihood of moving this year.

 

MnRA supports the modification of the cigarette tax rate and the repeal of the annual indexing for cigarettes.   

 

 

Biodiesel Minimum Content Requirements - HF 3203 (Johnson, C.)/SF 2222 (Sparks); SF 2618 (Sparks)

 

This bill, as amended, delays the effective date of the 20 percent biodiesel mandate by three years, until 2018. Additionally it extends the equipment exemptions indefinitely for shipping, railroads, mining and forestry industries and exempts #1 diesel fuel year-round until 2020. The bill language as amended was included in SF 2618 (Sparks), the Department of Agriculture "unsession" bill. Currently the House has passed the bill's companion, and the Senate will likely take up the legislation following the Easter/Passover break.

 

MnRA supports the extension of the biodiesel mandate and the exemption of #1 diesel fuel.

Updates From The Capitol
Weekly Legislative Update Calls Each Monday

   

For members seeking an insiders look at the legislative week, MnRA hosts a weekly 10:00 a.m. Monday conference call. This members-only activity takes place each week of legislative session through its conclusion and includes opportunities for retailers to get involved in the policy making process.

   

Thanks to our Retail at the Capitol calls sponsor, Holiday Companies, there is no cost for these calls and no advance RSVP is required. Simply dial in for the calls that interest you and work with your schedule. Calls last approximately 30 minutes.

To obtain dial-in information for these calls, contact MnRA at [email protected] or call us at (651) 227-6631. 
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Minnesota Retailers Associaiton
400 Robert Street North, suite 1540
St. Paul, MN 55101
Tel. (651) 227-6631 - mnretail.org - [email protected]


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