Rep.

Tim O'Driscoll (13B) - Legislative Update

Greetings! This is the second of a few updates following the end of the legislative session which adjourned last night. Here are some topics covered below: Tax Increase Approved Election Reform Bill Child Care and PCA Unionization Moves Forward Tax Increases Approved The Minnesota House of Representatives passed a $2 billion tax increase on the hardworking taxpayers of Minnesota. The bill passed 69-65 with bipartisan opposition. Some of the provisions in the bill include: A new fourth tier income tax bracket for individuals earning $150,000 and couples earning $250,000. The new rate is 9.85%, a 25% increase over the current rate. An increase of $1.60 per pack of cigarettes, some of which will be dedicated to helping solve the current funding dilemma for the new Vikings stadium. Taxes on other tobacco products will also rise sharply. A new warehousing tax which will affect the goods businesses take in before selling. Cutting deductions for corporations, resulting in $400 million in tax increases on Minnesota job creators. Some business-to-business sales taxes on select services. Local governments would be exempt from statewide sales taxes and also receive funding aimed at issuing property tax decreases. Election Reform Bill The Minnesota House of Representatives passed a strong bipartisan elections bill off the floor Monday, 99-32. I was a key member of the working group that helped to craft this bill. Although this bill is largely technical in nature, it does correct some issues with elected office vacancies that have arisen as a result of federal law changes and a recent Minnesota Supreme Court ruling. Child Care and PCA Unionization Moves Forward After nearly 17 hours of debate over a three day period, the Minnesota House of Representatives passed the very controversial child care provider unionization bill (SF 778) on a vote of 68-66. The bill had bipartisan opposition, as five DFL members joined the entire Republican membership of the House in voting "no" on the bill. This vote was so close that if one more Democrat member had voted "no," this provision would not have become law. There is a high likelihood that Gov. Dayton will sign this bill into law. This revision in law marks a stark departure from the traditional organization of labor in the state of Minnesota. The

change would now allow union organizers to approach private child care providers who receive state subsidies and solicit them for membership in a union or require them to pay "fair share" union dues. I will be providing more updates in the coming days. Sincerely, Tim