March 25, 2016

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Legislative Week 3 
Unemployment Insurance Trust Fund Reform and Unemployment Benefits Extension Passes Legislature; Governor Dayton Signs  
 
After weeks of floor debates and committee hearings in both chambers, the Legislature this week passed a bill reforming the unemployment insurance (UI) trust fund by creating a high-water mark that triggers a reduction in the tax rate paid by employers when the fund has excess solvency. Additionally, the legislation provides a one-time tax credit of $258 million to employers to offset costs of unemployment insurance.

Along with reform, in a separate bill the Legislature provided an important 26 week extension of unemployment benefits to Iron Range workers.   
 
In previous weeks MnRA testified in support of UI reform as it moved through the committee process. Governor Dayton's late Thursday signature represents important relief for workers and a balanced approach to maintaining adequate solvency in the UI trust fund.

Unemployment insurance trust fund reform was a top priority for MnRA this session. 
Ordinance Notification
Notice Of Proposed Hearings On Local Ordinances Impacting Licensed Businesses Moves Out Of Committee; Sent To House Floor

A bill (HF 1769) authored by Representative Chris Swedzinski would require counties and cities to notify licensed businesses about hearings on local ordinances that may impact them. The legislation as amended by the author would require a 14-day notice sent via email to businesses while also posting on the local unit of governments website in additional publication in the newspaper. 

MnRA's government relations director & legal counsel, Brian Carr, testified this week in support of the notification legislation. During his testimony Carr explained that in many circumstances impacted businesses are only learning of hearings the day or night before they are set to take place, and in worst case scenarios after the ordinance has been enacted.

This legislation passed out of the House Government Operations Committee on a 9 to 4 vote. It now moves to the House floor for further action.  

MnRA supports legislation to provide adequate hearing notice to local license holders. 
Insurance Benefit Program
Paid Family & Medical Leave Quiet This Week; Hearing Most Likely Next Week

The paid family & medical leave bill introduced two weeks ago by Senator Katie Sieben
(S.F. 2558) was not heard in any committees this week. During meetings with legislators involved with the bill MnRA learned that the author may be in the process of substantially revising the bill. Last week the legislation passed out of two committees and sent to the Senate Jobs Committee last week. As of today no hearing has been scheduled for that committee. In order for the legislation to meet the first committee deadline on April 1 a hearing must be held next week.  

The current form of the bill would create a new insurance benefit program administered by DEED and funded with a new payroll tax paid 50/50 by employers and employees. Employees could draw on the fund for up to twelve weeks for medical leave with a separate twelve weeks for family (bonding) leave. Only three states in the country have a similar program in nature and they are 100 percent funded by employees.


MnRA is actively engaged and monitoring this legislation. 
Minneapolis And St. Paul Paid Sick/Safe Leave Update 
 
Minneapolis

The Minneapolis Workplace Regulations Partnership Group recommendation on paid sick/safe leave is now in the hands of a multi-department staff group tasked with drafting an ordinance, determining program finances, and exploring known issues identified previously through public input. The staff report is due to the Council on May 5.

St. Paul

St. Paul's sick/safe leave work group continues meeting as it works toward a June report deadline. The St. Paul work group primarily meets to discuss the elements of an ordinance as opposed to collecting public input.

MnRA has an e-mail update distribution list for both cities. E-mail [email protected] to be placed on either of those lists.

Bag Regulation
Minneapolis Committee Passes Bag Ban + Fee; Full Council To Take Action April 1  

On Monday the City of Minneapolis Health, Environment and Community Engagement Committee passed a ban on plastic bags at checkout nearly unanimously. The only non-yes vote was from a Councilmember who indicated a desire to strengthen the ban language.

In a StarTribune unscientific poll earlier this week, poll-takers not in favor or a ban slightly outweighed those in favor.  Click here to see the poll.

MnRA opposes the Minneapolis plastic bag ban.
Issue Update
'Patent Trolling' Protection Puts Focus On Bad Faith Claims

From Session Daily, Nick Longworth, March 22, 2016

"In the land of 10,000 lakes there's perhaps only one kind of trolling that is harming humans today. It's called "patent trolling," and 27 states have already passed legislation to help prevent it.

"Some of our members became concerned about patent controls several years ago when they saw lawsuits being initiated against small businesses," said Tess Rice, general counsel and director of government relations for the Minnesota Bankers Associations General Council.
Rep. Joe Hoppe

HF1586, sponsored by Rep. Joe Hoppe (R-Chaska), would allow an attorney general to bring civil action against someone who has made a "bad faith claim" against another for infringement on any potentially patented product. A penalty of up to $50,000 per violation could be imposed on any individual or business.

Approved by the House Civil Law and Data Practices Committee Tuesday, the bill now moves to the House Floor. A companion, SF1321, sponsored by Sen. Kari Dziedzic (DFL-Mpls) awaits action by the Senate Commerce Committee.

The law defines bad faith claims as trying to enforce a patent that is not yours, trying to enforce an expired patent, or falsely claiming that someone has filed a lawsuit against another.

The bill has the intent of targeting patent assertion entities - businesses that acquire patents with no intention of using the technology itself, but rather suing for alleged infringement. It would not limit any other rights or remedies available under existing laws related to patent infringement.

Week 3
Bill Introductions

Below is a digest of bills introduced this week that may impact Minnesota retailers and consumers.  

House of Representatives
 

Liebling introduced:
H. F. 3376, A bill for an act relating to health; allowing pharmacists to provide a drug refill without a prescription; requiring insurance coverage; authorizing rulemaking; proposing coding for new law in Minnesota Statutes, chapters 62Q; 151. The bill was read for the first time and referred to the Committee on Health and Human Services Reform. 

Mahoney, Mullery and Davnie introduced:
H. F. 3505, A bill for an act relating to paid family medical leave benefits; establishing a family and medical leave benefit insurance program; imposing a wage tax; authorizing rulemaking; creating an account; appropriating money; amending Minnesota Statutes 2014, sections 13.719, by adding a subdivision; 268.19, subdivision 1; 290.01, subdivision 19b; Minnesota Statutes 2015 Supplement, section 177.27, subdivision 4; proposing coding for new law as Minnesota Statutes, chapter 268B. The bill was read for the first time and referred to the Committee on Job Growth and Energy Affordability Policy and Finance.

O'Neill and Mahoney introduced:
H. F. 3512, A bill for an act relating to unemployment insurance; adopting recommendations of the Unemployment Insurance Advisory Council; amending Minnesota Statutes 2014, sections 268.035, subdivisions 12, 20, 23a, 29, by adding subdivisions; 268.051, subdivision 5; 268.085, subdivisions 4, 5; 268.0865, subdivisions 3, 4; 268.095, subdivisions 1, 2, 5; 268.101, subdivision 2; 268.18; 268.182, subdivision 2; Minnesota Statutes 2015 Supplement, sections 268.07, subdivision 3b; 268.085, subdivision 2. The bill was read for the first time and referred to the Committee on Job Growth and Energy Affordability Policy and Finance.

Senate


Senators Rosen, Skoe, Ortman, Rest and Gazelka introduced:
S.F. No. 3029: A bill for an act relating to taxation; providing a property tax exemption for certain properties; providing aid adjustments; providing a sales tax exemption for certain construction projects; amending Minnesota Statutes 2014, sections 272.02, by adding a subdivision; 297A.71, by adding a subdivision; 477A.013, subdivision 13; Minnesota Statutes 2015 Supplement, section 477A.03, subdivision 2a.
Referred to the Committee on Taxes.

Senator Osmek introduced:
S.F. No. 3227: A bill for an act relating to environment; modifying electronic waste management; amending Minnesota Statutes 2014, section 115A.1318, subdivision 1.
Referred to the Committee on Environment and Energy.

Senators Skoe and Rest introduced:
S.F. No. 3093: A bill for an act relating to taxation; sales and use; modifying requirements for collecting sales and use tax; amending Minnesota Statutes 2014, section 297A.66, subdivisions 1, 3, 4, by adding subdivisions.
Referred to the Committee on Taxes.

Senators Torres Ray and Eaton introduced:
S.F. No. 3137: A bill for an act relating to paid family medical leave benefits; establishing a family and medical leave benefit insurance program; imposing a wage tax; authorizing rulemaking; creating an account; appropriating money; amending Minnesota Statutes 2014, sections 13.719, by adding a subdivision; 268.19, subdivision 1; 290.01, subdivision 19b; Minnesota Statutes 2015 Supplement, section 177.27, subdivision 4; proposing coding for new law as Minnesota Statutes, chapter 268B.
Referred to the Committee on Jobs, Agriculture and Rural Development.

Senators Tomassoni and Sparks introduced:
S.F. No. 3216: A bill for an act relating to unemployment insurance; adopting recommendations of the Unemployment Insurance Advisory Council; amending Minnesota Statutes 2014, sections 268.035, subdivisions 12, 20, 23a, 29, by adding subdivisions; 268.051, subdivision 5; 268.085, subdivisions 4, 5; 268.0865, subdivisions 3, 4; 268.095, subdivisions 1, 2, 5; 268.101, subdivision 2; 268.18; 268.182, subdivision 2; Minnesota Statutes 2015 Supplement, sections 268.07, subdivision 3b; 268.085, subdivision 2. Referred to the Committee on Jobs, Agriculture and Rural Development.

Senator Hoffman introduced:
S.F. No. 3223: A bill for an act relating to taxes; sales and use; providing a small business refund for the cost of using a certified service provider or a certified automated system; proposing coding for new law in Minnesota Statutes, chapter 297A.Referred to the Committee on Taxes.
 
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Minnesota Retailers Associaiton
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St. Paul, MN 55101
Tel. (651) 227-6631 - mnretail.org - [email protected]