2024 Minnesota Legislative Review

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2024 MINNESOTA LEGISLATIVE REVIEW

ENHANCING OUR IMPACT

Thank you to our Public Policy Sponsors for investing in this crucial work.

PROGRAM SPONSORS

SUPPORTING SPONSORS

American Crystal Sugar Company | Beverage Wholesalers, Inc.

Bobcat Company | Cardinal IG | Choice Bank

Cornerstone Bank | Corval Group | Eide Bailly LLP

Essentia Health | Eventide Senior Living Communities | Gate City Bank

A LETTER FROM LEADERSHIP

As a catalyst for regional growth and prosperity, the Fargo Moorhead West Fargo Chamber of Commerce (The Chamber) serves as the united voice of our business community at local, state and federal levels. We are proud to publish this 2024 Legislative Review as a valuable resource for our members.

During the 2024 Minnesota Legislative Session, The Chamber actively opposed restrictive regulations and mandates, while championing policies that protect and strengthen our region’s economy. Through direct engagement with Minnesota leaders and policymakers, we have continued to elevate our region’s presence in St. Paul and amplify our unified voice.

This review outlines the outcomes of The Chamber’s top legislative priorities in Minnesota, including local legislators and voting records on issues critical to our business community. Our aim is to enhance accountability and awareness while recognizing those who supported key issues. This publication is not an endorsement of any political candidate, party or organization. The highlighted bills reflect the most significant issues of session, though not the entirety of The Chamber’s legislative agenda.

As one of the largest chambers in Minnesota and North Dakota, representing over 1,600 member businesses and more than 100,000 employees, we understand the power of public policy and advocacy. The Chamber has earned its reputation as a trusted voice, building coalitions and shaping policy. With increased member investment, we have expanded our influence addressing more bills, uniting area legislators and publicly sharing voting records on critical issues. Legislative policies impact us all – our collective voice grows stronger with informed and active member engagement.

TAKING A STANCE:

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PUBLIC POLICY COMMITTEE

Made up of business and community leaders from across the region, the Public Policy Committee is The Chamber’s advocacy arm. The Committee is dedicated to advancing sound polices that foster a stable environment for businesses and the community to thrive.

The group drafts stances and legislative priorities, acting on individual policies as they become relevant. These recommendations are submitted to the board for approval, where they become official Chamber positions.

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THE CHAMBER’S STANCE

Once the Board of Directors has voted on an official stance, The Chamber takes action. We engage with public officials to represent business interests, raise awareness and build impactful coalitions. We also empower local businesses by providing essential resources like policy briefs, talking points, legislative contacts and bill updates.

BOARDVOTE RECOMMENDATION

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BOARD OF DIRECTORS

The Board of Directors, comprised of diverse leaders in our local business community, is the policymaking body for The Chamber. They shape and execute the organization’s vision. Once the Public Policy Committee makes a recommendation for a policy stance, the Board reviews and considers whether to adopt it as an official Chamber position.

Given the fast-paced nature of policy, the Board may address urgent issues directly without formal recommendation from the Public Policy Committee.

THE CHAMBER’S MINNESOTA LEGISLATIVE PRIORITIES

COMPREHENSIVE WORKFORCE SOLUTIONS

• Continue investments in regional workforce grants and programs to support talent attraction, acclimation, retention and development of workforce.

• Continue investments into the K-12 educational system to fund categorical expenses and further invest in Career Workforce Academies to create a strong pathway of workers for in-demand fields, as well as upskilling the current workforce.

• Support funding for post-secondary initiatives to augment curricula, enhance student attraction and retention and address tuition funding gaps.

QUALITY, ACCESSIBLE AND AFFORDABLE CHILD CARE

• Advance public-private partnership models for childhood and school-aged care providers to provide communities with affordable and accessible care.

• Create a sustainable and stable childhood and school-aged care sector through adequate funding, grants, incentives, training and shared service resources.

• Increase access to fingerprinting services in Greater Minnesota.

BUILDING A COMMUNITY FOR THE FUTURE

• Dedicate funding to finalize the construction of the Moorhead Flood Protection projects.

• Secure funding to support the construction and sustainability of the Moorhead Cultural Mall.

• Expand funding for the Heartland Trail project's construction from Moorhead to Park Rapids.

BUSINESS AND COMMUNITY VITALITY

• Enact pragmatic adjustments to the State’s Paid Family and Medical Leave program to accommodate businesses and address concerns.

• Ensure all policies, programs, initiatives and incentives are comprehensive and inclusionary of Greater Minnesota and border-city communities, to keep Clay County competitive with neighboring states.

• Evaluate the State’s existing tax and regulatory structure and implement policies and initiatives that prioritize the State’s global competitiveness, streamline regulatory processes and reflect a fair and balanced tax system.

OVERVIEW OF KEY BILLS, CHAMBER STANCES AND VOTING RECORDS

PASSED

The following bills were introduced and were voted on individually by both the House and the Senate. These bills were pivotal issues for The Chamber.

4 Senator Rob Kupec

4A Representative Heather Keeler

4B Representative Jim Joy

1 Senator Mark Johnson

1B Representative Debra Kiel

= Aligned with The Chamber's Stace = Unaligned with The Chamber's Stance = Absent or Did Not Vote

BILL SUMMARIES

HF 2757 | TAX CORRECTION BILL

Passed and signed by Minnesota Governor Tim Walz

This bill fixes an error in last year’s tax bill that mistakenly used the 2019 standard deduction amounts rather than the inflation-adjusted figures for 2024. The amendment updates the State’s tax code to include the correct inflationadjusted standard deduction amounts.

The Chamber supported this bill

The Chamber supported this bill because it fixed a tax code error that would have cost Minnesotans an additional $2.3 million.

HF 3489 | SCHOOL RECOURSE OFFICER STANDARDS BILL

Passed and signed by Minnesota Governor Tim Walz

This bill clarifies the rules on the use of force by school resource officers (SRO), sets new training requirements, mandates the creation of a model policy for SROs and allocates funds to the commissioner of public safety to hire more SROs on staff.

The Chamber supported this bill

The Chamber supported this bill because it gives law enforcement clear guidelines to legally, effectively and safely perform their duties in schools while ensuring student safety. Public safety is crucial for maintaining a welcoming and secure community.

HF 3769 | NET OPERATING LOSS BILL

Passed and signed by Minnesota Governor Tim Walz

This bill fixed a mistake in last year’s tax bill about the effective date for a change to the State’s corporate net operating loss. Lawmakers intended to reduce the net operating loss deduction from 80% to 70% of a corporation's taxable income for tax years starting after December 31, 2023. However, the bill mistakenly listed December 31, 2022, as the effective date.

The Chamber supported this bill

The Chamber supported this bill because it retroactively corrected a tax code error that would have unfairly reduced the deduction percentage a year earlier than businesses expected.

SF 3852 | LABOR AND INDUSTRY BILL

Passed and signed by Minnesota Governor Tim Walz

This omnibus labor and industry policy bill covers a range of topics, including employment, construction codes, licensing, labor standards and apprenticeship policies. It specifically addresses changes to minimum wage, tip reporting, noncompetes, earn statement file retention, group insurance and health care benefits, and other employment and labor standards.

The

Chamber opposed this bill

The Chamber opposed this bill because it creates more obstacles for businesses. It increases financial pressure by allowing the Department of Labor and Industry to adjust minimum wage rates and removes the distinction between large and small employees for specific industries. It also makes non-compete agreements void and unenforceable.

HF 5247 | TAX OMNIBUS BILL

Passed and signed by Minnesota Governor Tim Walz

The omnibus tax bill updated the State’s child tax credit program to allow for advanced payments. However, it also included many unrelated provisions covering areas such as transportation, housing, labor, health care, higher education, firearms, energy, agriculture, human services, Earned Sick and Safe Time, Paid Family and Medical Leave, and others.

The Chamber opposed this bill

The Chamber opposed this bill because it imposes burdensome regulations on businesses, including expanded Earned Sick and Safe Time, higher penalties for employee misclassification and increased payroll taxes and additional regulations for the Paid Family and Medical Leave. These provisions restrict the region’s ability to attract and retain businesses, as well as businesses’ ability to attract and retain workforce.

INTRODUCED / DID NOT PASS

The following bills were introduced but were never voted upon individually or included into an Omnibus bill. The table represents which legislators sponsored particular bills. These bills were pivotal issues for The Chamber.

4 Senator Rob Kupec

4A Rep. Heather Keeler

4B Rep. Jim Joy

1 Senator Mark Johnson

1B Rep. Debra Kiel

= Sponsored a bill that is aligned with The Chamber’s priorities = Sponsored a bill that is unaligned with The Chamber’s priorities = Did not sponsor the bill

*This review does not constitute an endorsement of any political candidate, party or organization

BILL SUMMARIES

HF 3446 / SF 3588 | EXPANSION OF UNEMPLOYMENT INSURANCE BILLS

Not voted on and not included in the Omnibus Jobs and Economic Development Bill

These bills would have revised unemployment law to ensure striking workers are not automatically denied benefits during a labor dispute.

The Chamber opposed these bills

The Chamber opposed these bills because they would have unnecessarily expanded the Unemployment Insurance program, increasing costs for employers and undermining the program’s integrity. The Chamber supports a fair and balanced system, and these bills would have harmed the State’s competitiveness.

HF 3499 / SF 4161 | MAXIMUM TRAIN LENGTH BILLS

Sponsored by Senator Kupec | Not voted on and not included in the Omnibus Transportation Bill

These bills would have imposed a maximum train length limit of 8,500 feet on railroads operating in Minnesota and established fines for those that exceed this limit.

The Chamber opposed these bills

The Chamber opposed these bills because they impose unnecessary restrictions on the railroad industry and would create inconsistencies with federal regulations overseen by the Federal Railroad Administration. The Chamber supports an efficient, multi-modal transportation system for the safe and convenient movement of people and goods. These bills lacked clear safety benefits and would have hindered the movement of goods to, from and within Minnesota.

HF 3566 / SF 3940 | MINNESOTA E-WASTE PROGRAM BILLS

Sponsored by Senator Kupec | Not voted on and not included in the Omnibus Environment and Natural Resources Bill

These bills would have expanded the definition of electronic waste, provided free collection, created incentives to reduce electronic waste and imposed a 3.2% recycling fee on new electronic devices to fund the expansion of the State’s e-waste program.

The Chamber opposed these bills

The Chamber opposed these bills because they would have increased taxes on consumers, creating an additional financial burden. The Chamber supports a fair and balanced system, and this bill would have negatively impacted the State’s competitiveness by raising taxes.

HF 4204 / SF 4256 | PSYCHIATRIC FACILITY BILLS

Sponsored by Representatives Keeler, Kiel and Joy

Not voted on and not included in the Bonding Bill

These bills would have appropriated $20 million of bond funds to Clay County to predesign, design, construct, furnish and equip a psychiatric residential treatment facility.

The Chamber supported these bills

The Chamber supported these bills because they would alleviate strain on existing health and correctional services and provide access to essential behavioral health services. This investment would have improved health and safety, fostering regional vibrancy.

HF 4357 / SF 3943 | RAILROAD WAYSIDE DETECTORS BILLS

Sponsored by Senator Kupec | Not voted on and not included in the Omnibus Transportation Bill

These bills would have required railroads to install way-side detectors every 10 to 15 miles on mainline tracks. These detectors would automatically scan for defects or potential issues in equipment and notify individuals if any problems are detected.

The Chamber opposed these bills

The Chamber opposed these bills because they impose unnecessary restrictions on the railroad industry and would create inconsistencies with federal regulations overseen by the Federal Railroad Administration. The Chamber supports a quality, multi-modal transportation system for the efficient and safe movement of people and goods. These bills, however, lacked a clear safety benefit and would have negatively impacted the movement of goods to, from and within Minnesota.

HF 4832 / SF 4726 | CULTURAL MALL BILLS

Sponsored by Senator Kupec and Representative Keeler Not voted on and not included in the Bonding Bill

These bills would have appropriated $3 million from the general fund to the Immigrant Development Center, a Moorhead nonprofit, to acquire, renovate and reconstruct a building to house a cultural mall in the city of Moorhead.

The Chamber supported these bills

The Chamber supported these bills because they provide necessary funding to foster a vibrant business environment for New Americans. Inclusive projects are essential for driving economic growth and innovation in our community. This space encourages community cohesion, attracts and retains diverse populations, and inspires new ideas.

HF 5332 / SF 5411 | FLOOD MITIGATION FUNDING BILLS

Sponsored by Senator Kupec and Representatives Joy, Keeler and Kiel | Not voted on and not included in the Bonding Bill

These bills would have appropriated $52 million in bond funds for flood hazard mitigation in the City of Moorhead, Clay County and Wilkin County. Of the funding allocated, $14.71 million was earmarked for flood mitigation projects in Moorhead, while the rest was designated for the Moorhead-Clay County Joint Powers Authority to support Fargo-Moorhead flood diversion project components in Clay County and Wilkin County.

The Chamber supported these bills

The Chamber supported these bills because they provide the necessary funding to complete the Minnesota components of the Fargo-Moorhead flood diversion project and to finalize the Moorhead flood mitigation projects. Key state investments into water projects like this improve the livability of our region, promote economic vibrancy and maintain regional safety.

CALE DUNWOODY Vice

of Public Policy cdunwoody@fmwfchamber.com (701) 306-2235

CLAIRE STOLTENOW Public Affairs Specialist cstoltenow@fmwfchamber.com (218) 303-6381

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