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Fogelman
Hello from St. Paul,
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July 1 marked the date when many new laws were implemented in Minnesota. I wanted to highlight some of them in this update.
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*TRANSPORTATION TAX INCREASES*
Minnesota now has the 5th highest vehicle tax in the United States, as the Motor Vehicle Sales Tax jumped from 6.5% to 6.875%.
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It now also costs $6 more to secure a new driver?s license.
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*?FREE? SCHOOL LUNCES AND COLLEGE TUITION*
In the past, schools have provided free and reduced-price breakfast and lunch to many students coming from families that were income qualified for certain government programs. Now, every Minnesota student, regardless of their family?s income level, will receive a free breakfast and lunch in school each day, and any student in a family that makes less than $80,000 each year will receive free college tuition under a pair of separate proposals passed this year.
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Of course, neither of these programs is truly free. $450 million in taxpayer resources will be spent on school lunches, and at least $215 million will be used to pay for the college program. Those totals are expected to rise in future years.
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*?SECURE? NURSING ROOM FOR WORKING MOTHERS NOW NEEDED IN EVERY BUSINESS*
Prior to this year, state law required employers to make reasonable efforts to provide a private space for employees who are nursing. Now, business owners must now follow a new requirement that the room must be ?clean, private, and secure.?
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*NEW FUNDING FOR MINNESOTA?S SCHOOLS*
The main mechanism through which the state funds local school districts is the basic funding formula, and it has now increased 4% in fiscal year 2024 and 2% in fiscal year 2025. This translates to a formula allowance of $7,138 and $7,281 per pupil, respectively. Beginning fiscal year 2026, the formula will be indexed to inflation, though the law will limit this annual increase to between 2% and 3%.
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Unfortunately, many school administrators fear that with the more than 65 mandates the legislative majority forced on Minnesota?s school districts, much of this new money will be spent trying to meet these new state guidelines rather than head to the classroom.
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*LEGALIZED MARIJUANA*
A new law establishing a framework for statewide and local entities to regulate, tax, and manage marijuana sales to adults is set to begin. The law appropriates $70.3 million in the 2024-25 biennium to establish cannabis regulatory programs. An Office of Cannabis Management is established to approve product categories of cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer products for retail sale, and prohibit any product that is packaged in a way to be attractive to children; establish environmental standards in the cannabis industry, in consultation with the Pollution Control Agency; and set limits on the personal use of cannabis for individuals 21 years of age or older. A 10% tax will be charged on retail cannabis sales.
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You cannot legally possess marijuana in Minnesota until August 1.
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*LIMITS ON NO-KNOCK WARRANTS FOR POLICE*
The new law significantly curtails when a judge can issue a no-knock search warrant, only permitting it when a search cannot be executed while the premises is unoccupied and ?the occupant or occupants of the dwelling will present an immediate threat of death or injury to the officers executing the warrant if the officers announce their presence or purpose prior to entering the dwelling.?
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*?HIGH SPEED? RAIL LINE TO DULUTH*
Nearly $200 million ? which is closer to $1 billion when you take into account federal dollars ? will be spent on a new passenger rail line between the Twin Cities and Duluth. Interestingly, this ?high speed? rail line will take more time to get to Duluth than if you would have driven your own car. Also of note, the cost of the train ride would be more expensive than the cost of a bus ticket to Duluth.
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Speaking of transit, $40 million is also included in this transportation law for Greater Minnesota transit needs.
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*HEALTH CARE WORKER SAFETY PROTECTIONS*
Hospitals must develop an incident response plan to deal with any act of violence against their employees under a new statute.
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*FIRST RESPONDER MEDICAL HEALTH*
As a response to the growing number of post-traumatic stress disorder (PTSD) retirements among first responders, the legislative majority approved a law requiring up to 32 weeks of mental health treatment before a peace officer or firefighter with a psychological condition such as PTSD, or other serious mental health issue, can apply for duty disability benefits from the Minnesota State Retirement System or the Public Employees Retirement Association. Public safety agencies will be required to continue paying the employee?s full salary and employer-provided benefits during the treatment period.
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On August 1, another batch of new laws will take effect, and I?ll keep you updated on those in the weeks ahead.
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Talk to you soon,
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Marj
323 State Office Bldg.
100 Rev. Dr. Martin Luther King Jr. Blvd.
St. Paul, MN 55155
651-296-5373
[email protected]
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