Prepared and Distributed by The Midwest Hardware Association, Inc.
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Wisconsin Supreme Court Selects Republican Redistricting Maps
By Misha Lee, MHA Wisconsin Lobbyist
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In a 4-3 decision, Wisconsin’s highest state court adopted a legislative redistricting plan drawn by Republican lawmakers, a surprising reversal of the court’s earlier decision to approve maps proposed by Democrat Governor Tony Evers. The outcome gives Republicans a significant political victory headed into the 2022 elections and gives the party’s candidates running for the Legislature an even bigger advantage for the next decade. The court’s decision is likely to be its final ruling in the redistricting saga where the United States Supreme Court originally struck down Evers’ plan that had been previously approved by the Wisconsin Supreme Court.
Wisconsin Chief Justice Annette Ziegler delivered the majority opinion, joined by the court’s three other judicial conservatives. Justice Jill Karofsky filed a dissenting opinion on behalf of the court’s three liberal leaning justices. In addition to joining the majority opinion, Justices Rebecca Bradley and Brian Hagedorn also filed concurrences. Justice Hagedorn has been a swing vote on several issues before the court and he originally sided with the more liberal wing in choosing Governor Evers’ proposed legislative and congressional maps. Then in March, the U.S. Supreme Court directed the state Supreme Court to reconsider part of its decision adopting the redistricting plan by Governor Evers. In an unsigned opinion, adopted on a 7-2 vote with Justices Kagan and Sotomayor dissenting, the Wisconsin high court was ordered to “choose from among the other submissions” or else to “take additional evidence if it prefers to reconsider the governor’s maps.” Governor Evers’ maps used race as a factor to create seven Assembly districts where Black residents are a very narrow majority of the voting-age population. The governor argued that this was necessary to satisfy the Voting Rights Acts (VRA) and related requirements because of population changes. However, the U.S. Supreme Court found that Wisconsin’s justices failed to consider whether there was a race-neutral alternative available that would otherwise satisfy the VRA and related equal protection jurisprudence.
In selecting the state legislative maps proposed by Republicans, the majority on the Wisconsin Supreme Court argued that the maps are the best option because they are race-neutral while also satisfying the VRA, the Equal Protection Clause, and other applicable federal and state requirements. The maps also satisfy the “least change” approach to redistricting that the court established last year. In his concurrence, Justice Hagedorn wrote that he viewed “the Legislature’s proposal constituting our only feasible option” because he interpreted the U.S. Supreme Court’s order directing the state’s justices to begin with a race-neutral map. Although neutral with respect to race, the maps proposed by Republican leaders include five majority-Black Assembly districts, one fewer than the previous maps based on the 2010 Census and two fewer than Governor Evers’ proposal. That will be the most likely point of contention if Governor Evers or other parties decide to appeal this decision and ask the U.S. Supreme Court to invalidate the Legislature’s maps. However, the elections are fast approaching and time is running out to challenge the maps for the current election cycle.
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Illinois Passes State Budget and Adjourns Session
By Alec Laird, MHA Illinois Lobbyist and Vice President, Government Relations for the Illinois Retail Merchants Association
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Illinois passed its budget and adjourned early for the first time in over 20 years.
The Democratic leaders agreed upon a general revenue fund budget, excluding federal sources, of just over $49 billion. This is an 11% increase over the FY 22 budget—approximately $4.8 billion—and driven primarily by ARPA monies, income tax receipt increases as a result of supplemented unemployment insurance benefits, as well as on-going spikes in sales tax revenue. The budgeted included an array of temporary tax relief provisions including two of note to retail and further detailed below. Monies were used to pay down past-due bills, pay down pension obligations, and put approximately $1 billion into Illinois’ Rainy Day Fund. While Illinois is currently in a good position, the overall fiscal position will deteriorate quickly particularly if there is any sort of recession. The budget impacted the following retail related items:
GROCERY TAX
From July 1, 2022 thru June 30, 2023, SB 157 (Sen. Michael Hastings, D- Frankfort/Rep. Michael Zalewski, D- Riverside) removes the 1% tax on “…food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, food consisting of or infused with adult use cannabis, soft drinks, and food that has been prepared for immediate consumption)…”. Non-food items that are taxed at the low-rate of 1% (e.g. adult diapers, feminine hygiene products, etc.) will continue to be taxed at 1%.
Sign required. Initially, the proposal required retailers to notify customers on any receipt issued to the customer that the 1% tax was removed. However, after IRMA explained the technical impossibilities, they added the words “if feasible”. If retailers cannot do so on a receipt, they are asked to post a 4x8 sign somewhere visible to the consumer that states the following: “From July 1, 2022 through July 1, 2023, the State of Illinois sales tax on groceries is 0%.”
MOTOR FUEL TAX
Beginning July 1, 2019, Illinois amended its laws to require the state sales tax on motor fuel to increase by the rate of inflation. As part of the consumer relief package proposed by the Governor, that inflationary increase was suspended and the rate of tax frozen at $0.39.2 per gallon from July 1, 2022 thru December 31, 2022. On January 1, 2023, the inflationary increase will return.
Sign required. As part of the removal of the inflationary increase, motor fuel retailers are required to post a sign on each dispensing device, no smaller than 4x8, bearing the following message: “As of July 1, 2022, the State of Illinois has suspended the inflation adjustment to the motor fuel tax through December 31, 2022. The price on this pump should reflect the suspension of the tax increase.” Unlike the grocery sign noted above, failure to post this sign from July 1, 2022 thru December 31, 2022 is guilty of a petty offense for which the fine shall be $500 per day per each retail premises where a violation occurs.
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If you'd like to place an ad, please contact Sam Schmidt at
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Minnesota Frontline Worker Pay
This text offered in partnership with Minnesota Retailers Association
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About
To thank those Minnesotans who worked on the frontlines during the COVID-19 peacetime emergency, Gov. Tim Walz signed a law April 29, 2022, enabling those workers to apply for Frontline Worker Pay. Details of the program, including the application process and timeline, are online at frontlinepay.mn.gov. Visit the website to sign up to receive emailed updates about Frontline Worker Pay.
Who is eligible
There are initially two parts to who is eligible to apply: the work requirements and the job sector.
Work requirements
To be eligible for Frontline Worker Pay, the applicant:
- must have been employed at least 120 hours in Minnesota in one or more frontline sectors between March 15, 2020, and June 30, 2021;
- for the hours worked during this time period the applicant -
- was not able to telework due to the nature of the individual’s work and
- worked in close proximity to people outside of the individual’s household;
- must meet the income requirements for at least one of the 2020 or 2021 tax years -
- workers with direct COVID-19 patient care responsibilities must have had an adjusted gross income* less than $350,000 for married taxpayers filing jointly, or less than $175,000 for other filers and
- for workers in occupations without direct COVID-19 patient care responsibilities, the adjusted gross income* limit is $185,000 for married taxpayers filing jointly, or $85,000 for other filers; and
- must not have received an unemployment insurance benefit payment for more than 20 weeks on a cumulative basis for weeks between March 15, 2020, and June 26, 2021.
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Minimum wage, salary level for exempt employees likely going up
Former wage and hour administrator offers insights at SHRM conference
Copyright 2022 J. J. Keller & Associates, Inc.
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A minimum wage increase and an update to the exempt employee minimum salary level changes are likely on the way in this year, according to Tammy McCutchen, a former administrator of the Wage and Hour Division.
McCutchen spoke at the Society for Human Resources Management (SHRM) Employment Law and Compliance Conference in Washington, D.C., on March 29, 2022. She pointed out that 30 states and 64 municipalities have a minimum wage that’s higher than the federal rate of $7.25, which took effect in 2009.
“It’s time,” she said. “I think there is going to be a battle, and the battle will happen this year.”
Minimum wage action this fall?
Among the minimum wage bills in Congress is the Raise the Wage Act would increase the minimum wage to $9.50 per hour upon passage and gradually raise it to $15 per hour. It has 37 cosponsors in the Senate and 201 cosponsors in the House.
The bill was introduced in 2021, and looming fall elections could incentivize Congress to bring it up for a vote. Its passage likely hinges on whether Democrats will compromise on the $15 per hour rate, McCutchen noted, as Senators Joe Manchin and Krysten Sinema are open to a lower increase, to $11 per hour.
“I don’t think it will pass if they don’t get off that $15 level,” she said.
If the minimum wage bill passes, the first increase would likely take effect on January 1, 2023.
Salary level increase for exempt employees
Another change on the way is an increase in the minimum salary level for exempt employees. The Department of Labor (DOL) is likely to introduce changes to overtime exemption regulations in May, McCutchen said.
The minimum annual salary for exempt employees, currently at $35,568, would increase to more than $56,000 if the DOL adjusts the rate from its 2016 proposed rule for inflation.
“I can easily see this administration wanted to take the $47,464 amount and correct it for inflation and you’re at $56,836,” she said.
She noted that a proposal from the Economic Policy Institute would put the rate at more than $73,000, but that litigation could result if the proposed rate is too high.
“They could get a salary increase if they put it at $47,000 or $48,000, but if they put it at $50,000 it’s going to be a long battle,” she said.
The Department of Labor has been holding stakeholder meetings on the topic, she said, and added that the changes could also include an update to the duties test that is also part of the employee exemption analysis.
This article was written by Terri Dougherty of J. J. Keller & Associates, Inc.
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Sales Trends February 2022
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Here are the most recent Illinois, Minnesota-Dakotas, and Wisconsin hardware store sales trends, gathered from association members using the MHA's monthly accounting services. The figures derived for each region include sales data from the following number of stores:
Illinois - 17 stores
Minn.-Dakotas - 11 stores
Wisconsin - 50 stores
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Bankcard Processing Service
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The Midwest Hardware Association has over 300 businesses using our Bankcard Processing program. We process Visa, MasterCard, Discover, and American Express offering the fastest possible turnaround time for payment of your funds.
With so many bankcard processors constantly after your business, why do dealers choose to process their credit and debit cards through the MHA? Here are just a few reasons:
- We understand the hardware business and the type of bankcard transactions that you accept. We price our service accordingly, thereby minimizing your costs.
- We have a dedicated staff with over 40 years of experience in processing bankcards for stores just like yours. You will have a specific contact person servicing your account. With other processors, you will most likely end up with an unfamiliar, different person every time you call.
- On a daily basis, your bankcard sales dollars are deposited straight into your bank account and become available for you to use, rather than being posted to your wholesaler’s billing statement as a credit towards future purchases.
- Without ongoing PCI compliance, your processing costs and risk go up. As a participating MHA member on our bankcard service, we will assist you in validating your annual PCI compliance. Most other bankcard processors do not provide this service.
- You can trust us. As your trade association, we owe it to you, our member, to fairly evaluate our bankcard program against competitors and honestly inform you of the best fit for your store.
- Our agreement does not have any termination fees or minimum requirements for the length of time that you must remain on the program.
As a member-driven organization, the Midwest Hardware Association is in business to help you become as successful as possible. Our bankcard program sets itself apart from other processors by merging together the best service with the lowest possible cost.
Testimonial
“Bankcard has grown so much over the past years that managing it has become a very important part of my business. I trust MHA and I am comfortable. I don’t want to change to anyone else.”
Wayne Cole
Cole Hardware Hank
Grand Rapids, MN
For more information about the MHA Bankcard Processing program, please contact Mac Hardin by phone at 1-800-999-4399 or by email at [email protected].
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