Greetings District 10!

Minnesota Senate Pass Bipartisan PPP Conformity Bill
The Minnesota Senate passed legislation SF263 that seeks to ensure businesses are not penalized for keeping their employees on payroll through the COVID-19 pandemic. Last year, the Paycheck Protection Program (PPP) was an emergency measure passed by the federal government which allowed businesses to take out loans in order to keep their employees on payroll. Unfortunately, business owners are now being faced with the possibility of an unexpected tax on these loans.

“Our small businesses have been hurt by this pandemic, and the one lifeline they were given should not turn into a tax burden. Tax deadlines are right around the corner, and these businesses did what they needed to keep their doors open and their employees paid. Our businesses did their part, now we need to do ours by making sure they don’t face a ridiculous tax bill just for trying to save their businesses and help their employees.”

In order for the PPP loan to be forgiven by the federal government, the loan needed to be used to fund qualifying costs (payroll, health insurance for paid sick/medical/family leave, mortgage interest payments, rent, utilities), with at least 60% of the loan proceeds used for payroll. In December 2020, the federal stimulus bill made it evident that forgiven PPP loans were not considered taxable income at the federal level. Unfortunately, Minnesota does not automatically conform to federal tax law changes. 

This bill seeks to bring Minnesota into federal conformity so that these forgivable loans are not taxed in Minnesota. With tax season on the horizon, passing this bill offers relief to business owners who have been left wondering if they would be hit with an unexpected tax, after a year of uncertainty and floundering revenues. 

The passage of this bill ensures that small businesses that have been negatively impacted by COVID in the last year are not also hit with an unprecedented tax for trying to save their businesses and helping their employees during a pandemic.

Minnesota Tourism “Menu” Detailing Annual Tourism Industry Report
This week, the Minnesota Department of Tourism released their annual tourism industry report in the form of a diner menu. The report includes economic indicators from 2019, as well as findings from 2020 that affirm the profound impact COVID-19 had on Minnesota’s tourism and economy. 

Highlights of 2019 include $16.6 billion gross sales across the Leisure and Hospitality Industry, $6.4 billion in wages, and 275,000 Minnesota jobs. Minnesota travel and tourism had a banner year in 2019, but travel spending decreased by $7.1 billion in 2020. Today, it is predicted that leisure travel will likely aid in recovery, as leisure travel is expected to recover faster than business travel. 

“2020 was a less than ideal for tourism, due to the wide-reaching effects of COVID-19. However, the current data is encouraging—pointing toward economic recovery for our tourism industry within the next few years.”

Department of Natural Resources Data Classification
My Department of Natural Resources (DNR) data collection legislation SF672 passed the full Senate unanimously yesterday. The legislation makes data collected by the DNR on minors (example: fishing & hunting licenses) private data.   

Governor Walz’s Restrictions Rollback—effective Monday, March 15 at noon (unless noted otherwise). 

Gatherings:

• Social gatherings: Up to 50 people outdoors or 15 people for indoor gatherings, both without household limits.
• Youth sports: Pod size increasing to 50 for outdoor activities.
• Religious services: Remove occupancy limits, but social distancing required.
• Celebrations: Follow venue guidance.

Small Businesses:

• Bars & Restaurants: Increasing allowable occupancy to 75%, up from 50%, with a limit of 250 people. The limits apply separately indoors and outdoors. Bar seating increases to parties of 4.
• Salons & Barbers: Removing the occupancy limit, but social distancing required.
• Gyms/Fitness Centers/Pools: Increasing allowable occupancy to 50%, up from 25%. Outdoor classes can increase to 50 people.
• Entertainment Venues: Increasing allowable occupancy to 50%, up from 25%, both indoors and outdoors, with a limit of 250.

All Venues—can open at 50% capacity up to 250 people. Venues with normal occupant capacity over 500 can add additional guests, effective April 1:

• Seated outdoor venues can add an additional 25% of their capacity over 500, with a limit of 10,000 people.
• Non-seated outdoor venues can add an additional 15% of their capacity over 500, with a limit of 10,000 people.
• Seated indoor venues can add an additional 15% of their capacity over 500, with a limit of 3,000 people.
• Non-seated indoor venues can add an additional 10% of their capacity over 500, with a limit of 1,500 people.

Thank you for reaching out—it was a pleasure meeting through Zoom:
Explore Minnesota Tourism, Brainerd Lakes Area Development Corporation, Great Lakes Commission, Community of Minnesota Resorts, AFSCME Council 5, Hunger Solutions, Minnesota Association of Soil Water Conservation District, Minnesota Licensed Beverage Association, Minnesota Family Council & Institute.

Staying in Touch
If you’re looking to hear more from the Capitol, please like me on Facebook. Have a great weekend!As always please feel free to contact my office with any questions you might have. My office can be reached by phone at (651) 296-4913 or at sen.carrie.ruud@senate.mn. Talk to you soon!

Carrie Ruud