MICA Weekly Legislative Update

First week at the capitol starts with bipartisan remembrance of former Speaker Melissa Hortman, ends with typical partisan maneuvering

The legislative session opened with the House and Senate meeting together in the House chamber and passing a joint resolution honoring the lives of Melissa, Mark and Gilbert Hortman. Governor Walz, Senate Majority Leader Erin Murphy, House Speaker Lisa Demuth, and House DFL Caucus Leader Zack Stephenson offered comments honoring the Hortmans.

On Tuesday, the Senate honored Sen. John Hoffman who survived the attack. The memory of former Senator Bruce Anderson, who passed away last July, was celebrated during the floor session on Thursday.

In the following days, across numerous committees in the House, we got a bit of a preview of what the rest of session might look like. In different committees both parties voted down author’s amendments coming from across the aisle. During the Thursday floor session the DFL and GOP both moved to suspend the rules to take up different issues. The GOP brought forward a motion to pass the Senate Office of the Inspector General language rather than the House DFL version. The DFL brought forward a motion to require the Bureau of Criminal Apprehension's Use of Force Investigations Unit conduct investigations of incidents involving federal agents. Both motions failed on party line votes.

Minnesota Inter-County Association Priorities

Comments from Legislative Leaders

At the Minnesota Chamber of Commerce Session Priorities Dinner on Tuesday, February 17, House DFL Caucus Leader Zack Stephenson surprised some when asked about the prospects for a bill on federal tax conformity, he responded that HR1 increased costs for counties, resulting in higher levies across the state. And on Friday, when asked on a call about what issue could see some unexpected bipartisan cooperation, he pointed to the technology modernization issue that MICA and other county associations are bringing forward as one possibility. This follows comments House Speaker Lisa Demuth made the week prior that updating systems for counties could help reduce fraud on the front end.

Committee Hearings

On Thursday, February 19 the Senate Health and Human Services Finance Committee held a hearing on the impacts of HR1, including impacts at the county level. County officials (including Scott County Health and Human Services Director Barb Dahl) highlighted the impact of the unfunded mandates included in HR1, the impact they have on levies, the misnomer of the SNAP “error rate” and the additional stress they put on outdated systems that county staff have to use to make all these changes work. Much of the committee hearing was devoted to public testimony, there was minimal discussion from members. Chair Melissa Wiklund (DFL-Bloomington) did note that the committee would be talking more about technology modernization for counties in future committee hearings.

Legislative timeline:

·        February 17: Session begins

·        March 19: Eid Break

·        March 27: First and Second Committee Deadlines

·        March 28-April 6: Easter/Passover Break

·        April 17: Third Committee Deadline

·        May 18: Constitutional deadline for adjournment

February Forecast: Minnesota Management and Budget announced that they will release their next economic forecast on February 27. That forecast will show what the budget picture will be for the 2026 legislative session. The last economic forecast in December showed a $2.5 billion surplus in FY 26-27 but with general fund spending projected to be $4.5 billion greater than revenues in FY 28-29.

House and Senate Housing committees hear bill on one-time emergency rental assistance: The House language would each appropriate $44 million in one-time aid to counties and $6 million to Tribes for rental assistance. The distribution formula would mirror the existing Local Homelessness Prevention Aid that is already in law. The House adopted an amendment that incorporated feedback from counties on the timing requirements as well as allowing 3% of the funds to be used for administrative purposes. House Republicans voiced concerns about moving a bill with significant costs in advance of the February forecast and committee targets with the structural imbalance the state is facing in future years. House DFLers said the appropriation was needed as emergency spending. In the House the bill failed to advance on a party line vote.

In the Senate, Chair Lindsey Port (DFL-Burnsville) amended her bill to add reporting requirements and increase the appropriation to $66 million to counties and $9 million to tribal governments. Senator Jim Abeler offered an A3 amendment for his preferred reporting language, but withdrew it before it faced a vote. In the Senate hearing several St. Louis County Commissioners submitted a letter in support of the bill. The bill was referred to the Senate Taxes committee.

Senate Taxes Committee hears federal conformity and fraud prevention presentations from the Department of Revenue: On Wednesday, February 18 the Senate Taxes committee began its session hearing these two different presentations from the Department of Revenue. The federal conformity presentation was informational, and did not include any recommendations from the Governor, who has not yet released his supplemental budget proposal. Most significantly Commissioner Paul Marquart noted that if the legislature conforms to the new federal tax laws this year, including items like income tax subtractions on tips and overtime, taxpayers would need to amend their returns. There have been times in the past when the agency was able to automatically adjust taxpayer returns, but with so many taxpayers potentially being eligible and filing season already open, that’s not an option this year.

This week we saw the introduction of a couple bills that would provide wholesale property tax exemptions for large groups of employees or homeowners. While we don’t anticipate these two bills to advance, they do speak to the challenge that local governments are facing at the capitol this year, having to respond and educate on bills that sound politically popular, don’t carry a state general fund cost so they’re “free” for committee chairs, but significantly shift property taxes onto other homeowners, businesses, and others. We do anticipate that the House will hear a wide swath of bills that get introduced. MICA will continue to work with legislators to explain the negative effects of bills like these or those that impose levy limits.

When talking to your legislators about county property taxes, here are a couple key points to emphasize:

·     The vast majority of county budgets are spent on mandated services. Those mandated costs cannot be controlled. Programs that aren’t strictly mandated are usually the most popular parts of the county budget, like libraries and parks.

·    Cost shifts from both the federal and state government are predominantly falling on counties, which is driving up levies at higher rates than in the past.

·    The federal HR1 bill which passed last July has the potential to have an even greater impact on county budgets unless the state acts.

Tuesday, February 24

Senate Taxes

• Office of the State Auditor presentation on the Tax Increment Financing 2024 Annual Report
• SF 3608 (Rest) Requirements modification for return of excess tax increments

House Taxes

• House Research and Fiscal Overview of 2025 Taxes Bill / HF9 1st Special Session

Wednesday, February 25

Senate Taxes

• Minnesota Department of Revenue presentation on the 2026 Property Values and Assessment Practices Report

House Taxes

• House Research and House Fiscal Overview (of tax provisions only) included in federal HR1.

Bill introductions of interest:

·        HF3535 (Roach)/SF3810 (Lieske) Creating a 100% property tax exemption for homesteads that have been owned by the same person for ten years

·        HF3536 (Roach)/SF3817 (Lieske) Creating a 100% property tax exemption for homestead property owned by public safety officers, as well as an income tax subtraction for their earnings

Key Policymakers Share Priorities at Transportation Day at the Capitol

On Thursday, transportation leaders from the Walz Administration and Legislature shared their priorities for the upcoming session at Transportation Day at the Capitol, hosted by the Minnesota Transportation Alliance.

MnDOT Commissioner Nancy Daubenburger kicked things off with a rundown of projects in the Governor’s bonding recommendations, then revealed the items the agency would be pursuing in its policy bill. Of note to county engineers are changes to the definitions of bridges and tunnels that need to be inspected. The legislation, which will be introduced in the Senate as SF3824, aligns the statute on bridge inspections to recently-changed federal standards and embraces the risk-based inspection interval approach, allowing for inspection resources to focus on higher-risk bridges.

House Transportation Co-Chair Brad Tabke (DFL-Shakopee) reiterated the priorities he previously shared with MICA and previewed the transportation safety bills he’ll be hearing in committee this week. Meanwhile, Senate Transportation Minority Lead John Jasinski (R-Faribault) and House Transportation Co-Chair Jon Koznick (R-Lakeville) both raised concerns about how high tab fees have gotten and expressed their interest in ensuring the greenhouse gas assessment and mitigation requirements don’t stall necessary highway projects.

House Capital Investment Co-Chair Fue Lee (DFL-Minneapolis) broke some news that even Senators in the room weren’t aware of. He reported that MMB recently changed its guidance and said that the state has the capacity to bond for $1.2 million in general obligation bonds plus another $700 million in trunk highway bonds! This was welcome news to the transportation advocates in the room. Previously, the agency counted the debt service owed on trunk highway bonds toward the overall cap.

“Celebratory Hearing” on MnDOT’s Updated Cost Participation Policy

In his remarks at Transportation Day, Senate Transportation Chair Scott Dibble (DFL-Minneapolis) recapped the “celebratory hearing” his committee held as it reviewed recent changes to MnDOT’s Cost Participation Policy. Last session, legislators directed the agency to rethink how it requests local governments share in the costs of trunk highway projects. Since the end of last session, MnDOT officials and local government representatives, including St. Louis County Engineer Jim Foldesi and Scott County Engineer Tony Winiecki, met monthly to negotiate several topics, including establishing an individual project maximum, based on a local government’s ability to pay. For projects beginning July 1, 2026, and after, the trunk highway-eligible costs paid by local governments on MnDOT-initiated projects will be capped at 0.8% of a community’s 5-year average adjusted net tax capacity.

Representatives from numerous local government groups, including MICA Transportation Liaison Amber Backhaus, heralded the change and thanked legislators for prompting this report and MnDOT for listening. The new policy should provide welcome relief to counties who are facing numerous pressures on their property tax base.

House Committee Scrutinizes Transit Costs

On Wednesday, the House Transportation Committee heard the results of a legislatively-mandated report from the Met Council on High Subsidy Transit Routes. The Council was directed to calculate per-passenger operating subsidies by route type and estimate capital and operating savings from discontinuing each high-subsidy route.

In its findings, the report found over 10% of routes amongst Metro Transit and the opt-out systems are “high-subsidy,” which is defined as having a per-passenger subsidy of 60% or more higher than the peer average. Eliminating these routes would result in approximately $20 million of annual savings.

The results put a target on the back of the Minnesota Valley Transit Authority, which operates 18 of 43 routes with high subsidies, four of which have subsidies of over $100 per passenger. The discussion highlighted the challenges of providing suburban local bus service, which accounted for the greatest number of high-subsidy routes.

Bill Introductions of Note:           

• HF3515 (Koznick) Establishing regulations for autonomous vehicles
• HF3531 (Joy) Certain retail fuel transactions exempted from retail delivery fee
• SF3824 (Dibble) MnDOT Policy Changes

To see a list of all the transportation bills being tracked on behalf of MICA, click here.      

House Transportation

Monday, February 23

Co-Chair Tabke holds the gavel.

The committee will hear a traffic safety report from bicycle and pedestrian safety groups before acting on the following bills:

• HF3429 (Kraft) Intelligent speed assistance program established
• HF3418 (Tabke) Community-based pedestrian safety program established, and money appropriated.
• HF3431 (Sencer-Mura) Traffic safety camera system pilot program modified and made permanent.
• HF1597 (Norris) Task Force on Establishing a Yellow Alert System (for hit and runs) established.

House Transportation

Wednesday, February 25

Co-Chair Koznick holds the gavel.

The Committee will receive the report on MnDOT’s Cost Participation Policy and then consider a variety of bills including:

• HF3531 (Joy) Certain retail fuel transactions exempted from retail delivery fee.

Senate Transportation

Monday, February 23

The committee will consider the confirmation of Robin Hutcheson as Met Council Chair before hearing three bills.

Senate Transportation

Wednesday, February 25

TBD

Capital Investment Preview

2026 is slated to be a bonding year – and key legislators from both bodies and parties have expressed their support for passage of a bill in the $1.2 billion range that includes local projects, which were absent from last year’s capital improvements package.

Besides the challenge of attaining an affirmative vote of 3/5ths of the members in each body, this year’s bill faces an additional hurdle: appropriating money to pay for the debt service. Historically, the debt service has been baked into the state’s budget forecast, but last session, the Legislature enacted a change requiring the funds to be identified and appropriated. Whether lawmakers are willing to spend limited general fund dollars on debt service (which would total $180 million to support a $1.2 billion bill) when there are competing spending priorities could be difficult.

Meanwhile, Governor Walz surprised many when he proposed a capital investment package that included only $750 million in state bonds– well below the state’s capacity. Unfortunately, his recommendations neglected to include several of MICA’s top priorities. No funding was suggested for the local road improvement program, the local bridge replacement program, nor the MPCA’s Capital Assistance Program. However, he did include $5 million for the Local Government Road Wetland Replacement Program and $5 million of the MPCA’s $118 million request for construction and demolition (C&D) landfill transition costs, such as upgraded cover systems or new transfer stations and mixed-use facilities. With legislators supporting a larger package, MICA will be encouraging lawmakers to fund these priority programs.

Overviews from state agencies and their bonding requests continue in both the House and Senate Capital Investment Committees. On Thursday, the Senate committee will be hearing from the Board of Soil and Water Resources about the Local Government Road Wetland Replacement Program. MICA and other local government groups will be sharing a handout describing the importance of this program – and the unmet needs, which far exceed the governor’s $5 million general obligation request.

Senate Capital Investment

Thursday, February 26

Roll call from the following agencies and stakeholders:

• Minnesota Public Facilities Authority
• Minnesota Water Infrastructure Coalition: Laborer's International Union, MN, SD, ND - International Union of Operating Engineers, Local 49 - Conservation Minnesota - Coalition of Greater Minnesota Cities - Minnesota Department of Health
• Minnesota State Academies for the Deaf and the Blind
• Minnesota Board of Soil & Water Resources

Federal Activities:

TRO Extended on CDC’s Termination of Public Health Grants: Last week, MDH received notice of the termination of two CDC grants, and the intent to cancel three more this week, the largest of which is the Public Health Infrastructure Grant ($65 million). These terminations would cut local public health, tribal health, funds to monitor and prevent HIV and STD inspections, and funding for MDH employees. On February 12, a multistate lawsuit resulted in a 14-day temporary restraining order, which, on Wednesday, was extended to March 12. MMB-Federal-Funds-Overview-Feb-2026_Senate-HHS

Wednesday, February 18, House Human Services:

• DHS Presentation: DHS provided an update of activities since the end of the 2025 legislative session, including the splitting of the Department into now three separate agencies: DHS, DCYF, and DCT. They also addressed their response to federal changes and actions related to program integrity. Included in its presentation was an update on the 2025 modifications to MnCHOICES.

CMS Implementation Status:

• Attestation to no changes in needs or services; pending review and approval. Delayed effective date expected.
• Use of MnCHOICES certified assessors in hospitals through contracts with counties: CMS approved EW amendments; waiting on disability amendment approval before implementing. Delayed effective date expected.
• Assessor qualifications, training, certification; removal of Bachelor’s degree requirement: CMS approved elderly waiver amendments; waiting on disability amendment approval before implementing. Delayed effective date expected.
• Verbal attestation or alternative to replace required assessment signatures: CMS DENIED THIS LANGUAGE IN THE EW AMENDMENT; THEREFORE, IT WILL NOT BE IMPLEMENTED.

Note slides 8-13 of the DHS presentation regarding the federal approval process for current waivers and State Plan Amendments (SPAs).

• Housing Stabilization Services: Legislators have started the process to codify into law the termination of the state’s housing stabilization services program. DHS formally shut down the program in October on the guidance of its Office of Inspector General after a data analysis exposed large-scale fraud in the program. HF3379, sponsored by Rep. Joe Schomacker (R-Luverne), would formally repeal the program in state law. The committee approved the bill, as amended, on a voice vote and sent it to the House Floor. Session Daily Link

Wednesday, February 18, House Children and Families Committee:

The committee received updates from DCYF regarding the implementation of SSIS andelectronic attendance,as well as a presentation regarding Child Care Regulation Modernization. DCYF Presentation

• SSIS: The Department is planning the implementation of a new Child Welfare Information System (CWIS) to replace SSIS.Jennifer Sommerfeld, DCYF Government Relations Director, reported that they developed and submitted a planning document to the federal government on November 18; it has been approved, which secures a 50% match for planning activities.

A planning vendor has been selected to help develop the RFP and the Implementation Advance Planning Document (IAPD). The IAPD is scheduled to be submitted in May. Procurement and contracting for the CWIS vendor are expected to begin in 2027.

• Child Care Regulation Modernization: The goals for new licensing standards are to simplify rules, increase transparency for families, meet federal requirements, reduce business burdens, and ensure child safety. The proposal is to move from two separate rules to two statutory provisions: one for child care centers and one for family child care.

Key changes for both program types include:

o   Strengthening attendance tracking;

o   Increasing transparency with new notice requirements for radon testing, presence of animals, and social media/image sharing policies.

o   Clarifying acceptable behavior guidance and ensuring support for children with special needs.

Specific Changes for Family Child Care:

o   Licensing classes will be streamlined, and capacity will be increased for some larger program sizes to provide more flexibility.

o   Variance approval for capacity will be moved from the county to the state level for uniform application of rules.

o   Training requirements will be made more clear.

o   The rules for providing overnight care will be clarified.

o   Providers will be required to notify parents if firearms are present in the home.

Child Care Regulation Modernization Report to the Legislature January 2026

Thursday, February 19, Senate Housing:

The Senate Housing Committee addressed SF3595 relating to supportive housing. David Dunn, Olmsted Housing and Planning Director, testified in support of the bill, reflecting on the success of several clients being housed at the “Frances.”

Wednesday, February 18, Senate Human Services:

• DHS Presentation: DHS again provided an update of activities since the end of the 2025 legislative session – this time in the Senate

Member comments:

• Sen. Glenn Gruenhagen (R-Glencoe) indicated that he has heard from his counties regarding our ongoing technology problems. With counties at the tipping point, he asked the Department why this has not been addressed.

DHS responded that systems upgrades are needed, but that they are really expensive, and ongoing sustainable funding is necessary.

• Sen. Erin Maye-Quade (DFL-Apple Valley) reported that she is drafting legislation that will call for a constitutional amendment which, if passed, would allow the Legislature to bond for technology.
• Chair Hoffman mentioned that he had heard that Rep. Paul Torkelson (R-Hanska) is taking the lead in the House.
• Counties’ message is clearly being heard; we are optimistic that real progress can be made this year.

Thursday, February 19, Senate Human Services:

Federal Funding Update: In her presentation, State Budget Director Ahna Minge illustrated several county concerns regarding federal changes, including work requirements, state penalties for eligibility errors, and lost federal funding for both administering the SNAP program, as well as benefits.

In addition, CMS has indicated the intent to withhold $515 million per quarter in future federal funding, which they estimate will be the cost of the federal share of 14 Minnesota “high-risk services.” DHS has submitted an administrative appeal, which is still pending. CMS has further indicated that it would undertake a review of recent claims already reimbursed, which may result in a deferral of additional federal funds.

County Presentation: County representatives were then given nearly 30 minutes to discuss the impacts we face in light of the federal changes.

Hearing Link; county presentation begins at the 37 minute mark

HR1-Impacts-on-Counties-HHS-Presentation-260218

Testimony came from Matt Hilgart, AMC; Barb Dahl, Scott County Human Services; and Ramsey County Commissioner Garrison McMurtrey. They focused on the direct federal cost shifts, including both SNAP administrative costs, as well as the contribution requirement for the benefit itself based on the state SNAP error rate. Also discussed was the increased workload for work requirements and eligibility changes for both SNAP and Medicaid. Finally, they spoke about the archaic “green screen” technology that counties continue to wrestle with. Chair Melissa Wiklund (DFL-Bloomington) commented that the committee would be spending additional time on technology modernization in the future.

LPHA Testimony: Nick Kelley, Public Health Director for the City of Bloomington, emphasized Minnesota as a leader and innovator in our public health system. He thanked the committee for the significant investment in 2023. He closed his comments by stating that the lack of federal support threatens public health’s ability to complete its mission, including work relating to WIC, immunizations, and home visiting.

Hearing Link; Nick Kelley presentation begins at the 1:32 minute mark

Thursday, February 19, House Human Services:

Program Integrity Efforts: Kristy Graume, Director of Government Relations for DHS, updated the committee on program integrity. House_HS_Program_integrity_updates

Her presentation focused on transparency, prevention, detection, and enforcement around fraud. She addressed the action of bad actors within some programs, which has ultimately resulted in hurting honest providers and patients alike.

Rep. Tom Murphy (R-Underwood) and Rep. Brion Curran (DFL-White Bear Lake) both lamented that no one within the Department has been fired as continued instances of fraud were uncovered over the past year.

Co-Chair Rep. Mohamud Noor (DFL-Minneapolis) said more department leaders will be available to answer committee member questions at a future date. Session Daily Link

Bill Introductions of Interest:

• HF3403 (Kozlowski)/SF3596 (Port) Onetime emergency rental assistance aid for counties established, and money appropriated.
• HF3439 (Backer) Eligibility for medical assistance and expedited disability determinations modified, review of death master file required, and contract requirements for managed care plans provided.
• HF3469 (Virnig) Appropriation availability for the Direct Care and Treatment county correctional facility support pilot program extended.
• HF3546 (Schomacker) Program integrity requirements for high-risk provider types under medical assistance established, and report required.
• SF3618 (Maye Quade) County program aid increase to offset county costs associated with federal Supplemental Nutrition Assistance Program (SNAP) changes.
• SF3671 (Gruenhagen)/HF3519 (Schomacker) Medical assistance coverage stoppage when federal financial participation is temporarily withheld or discontinued.
• SF3682 (Mohamed)/HF3454 (Hanson, J) Social work titles usage requirement modifications.
• SF3704 (Mann)/HF3453 (Hanson, J) Kratom possession legal age establishment as 21 years of age or older.
• SF3711 (Mann)/HF3452 (Hanson, J) Kratom classified as a Schedule II controlled substance

Discussions on HR1 impacts will continue this week, as well as Department updates regarding SSIS and program integrity. On Wednesday, there will be further discussions on county impacts related to SNAP/HR1 in the House Children and Families Committee. MMB will present the February forecast on Friday.

Combined legislative schedule

Monday, February 23

House Fraud Prevention and State Agency Oversight Policy

• Minnesota Department of Human Services – Presentation on the Early Intensive Developmental and Behavioral Intervention (EIDBI) Benefits program.
• HF3542 (Hudson) Requiring disclosure of certain investigations and withholding payments within 30 days of a request.

House Health Finance and Policy

Co-Chair Robert Bierman holds the gavel.

• HF362 (Pinto) Licensure for massage therapy and Asian bodywork therapy established, fees established, criminal penalties provided, and money appropriated.

• HF2590 (Norris) Clinical art therapist licensure established, Board of Behavioral Health and Therapy membership modified, fees and civil penalties imposed, and money appropriated.
• HF2760 (Mahamoud) Reimbursement procedures for federally qualified health centers modified.
• HF3444 (Mahamoud) Prior authorization prohibited for treatment of opioid use disorder.
• HFXXXX (Mahamoud) Modifying medication repository program procedures (informational only)

Senate Human Services

• Presentation from Residential Providers Association of Minnesota
• Presentation from Association of Residential Resources in Minnesota
• Presentation from Mid-Minnesota Legal Aid
• Presentation from the Office of the Ombudsperson for Long-Term Care
• Presentation from the Office of the Ombudsperson for Mental Health and Developmental Disabilities

Tuesday, February 24

House Human Services Committee

Co-Chair Mohamud Noor holds the gavel

• Presentation on HR1 from Department of Human Services – discussion of impact on state Medicaid programs

House State Government Finance and Policy

Co-Chair Jim Nash holds the gavel.

• SF856 (Norris) Office of the Inspector General creation and appropriation.

Senate Health and Human Services

• Updates from the Department of Children, Youth, and Families (DCYF)
• IT Implementation Updates
• Impacts from H.R.1 and Federal Actions
• Implemented Program Integrity Measures
• DCYF Presentation on the Child Care Regulation Modernization Report and Proposed Legislative Language

Child-Care-Regulation-Modernization-Report-to-Legislature-1-2026-002

sc3865

Senate Housing and Homelessness Prevention

• Presentation: State of Housing 2026, Anne Mavity, Minnesota Housing Partnership
• Updates from the Minnesota Housing Finance Agency, Commissioner Jennifer Ho
• SF2434 (Draheim) Certain Housing development fund expenditure provisions modifications and certain Minnesota Housing Finance Agency allowed expenditures repealer provision.

Children and Families Finance and Policy

Co-Chair Nolan West holds the gavel.

• Presentation: A Better Future for Minnesota Child Care Licensing and Quality
• Dr. Nicole Smerillo, Small Think Director of Data, Research, and Policy
• Ericca Mass, Small Think
• Department of Children, Youth and Families (DCYF) Implementation Updates
• Inspector General Randall Keys

House Housing

Co-Chair Spencer Igo holds the gavel.

• Presentation – Minnesota Housing

Wednesday, February 25

House Human Services Finance and Policy

Co-Chair Joe Schomacker holds the gavel.

• HF3378 (Schomacker) Commissioner of human services required to release unredacted initial Optum reports
• Pre-Payment Review Overview
• Department of Human Services
• Optum

Senate Health and Human Services

• Presentation from MNsure and the MN Department of Commerce on the Individual Market, 2026 Enrollment and Federal Impacts

• Update from the MN Department of Health (MDH) on Impacts from Federal Actions
• Presentation from MDH on the Rural Health Transformation Program
• Update on the Financial Status of Hennepin County Medical Center

House Health Finance and Policy

Co-Chair Jeff Backer holds the gavel.

• HF 2753 (Nadeau) Default surrogate for health decisions created, and process to appoint default surrogate for health decisions provided.
• HF 1807 (Gillman) Nonopioid drugs coverage required for treatment or management of pain.
• HF 1270 (Gillman) Licensing for practice of acupuncture and herbal medicine modified.
• HF 2070 (Dippel) Provisions for the cost of health records changed.

House Children and Families Finance and Policy

Co-Chair Carlie Katyza-Witthuhn holds the gavel.

• Presentation: County Impact and Perspective of HR 1 on Supplemental Nutrition Assistance Program (SNAP)
• HF45 (Pérez-Vega) Supplemental Nutrition Assistance Outreach Program funding provided, and money appropriated.
• HF1148 (Coulter) Prepared meals food grant program established, and money appropriated.
• HF777 (Coulter) Food shelf program funding provided, and money appropriated.
• 26-06438 (Gander) Regional food bank grant program established, and money appropriated.
• SC3756 -1 (Lee, X.) Minnesota supplemental nutrition​ assistance program established.
• Presentation: Current Federal Landscape, Update on Federal Funding Actions, Department of Children, Youth and Families (DCYF).

House Housing Finance and Policy

Co-Chair Michael Howard holds the gavel.

• HF3425 (Howard) Supportive housing provider grant funding provided, and money appropriated.

Thursday, February 26

House Human Services Finance and Policy

Co-Chair Mohamud Noor holds the gavel.

• HF3423 (Hicks) Requirements for provider enrollment in medical assistance modified.
• HF2354 (Norris) Medicaid fraud provisions added and modified, attorney general provided subpoena and enforcement authority, criminal penalties provided, conforming changes made, and money appropriated.
• HFXXXX (Noor) Expansion of electronic visit verification

Senate Health and Human Services

• TBA

The start of session was largely filled with overview presentations and updates from state agencies. On Thursday, the House Environment and Natural Resources Committee heard an overview of PFAS and information about the rollout of the reporting system for products containing intentionally added PFAS, which will begin in July of 2026. 

Minnesota Pollution Control Agency (MPCA) Legislative Director Tom Johnson and Assistant Commissioner Kirk Koudelka both presented before the committee, offering background on the need to regulate and mitigate the impacts of PFAS in Minnesota before providing a summary and update on the implementation of Amara’s Law. They ended with an update on the rollout of PRISM, the platform which will be used by manufacturers that are required to report intentionally added PFAS in products on July 1, 2026. Various manufacturing trade groups testified with concerns about the rollout of the PRISM system, including some technical problems, and questioned whether the system will allow for proper compliance by the July reporting deadline. 

Republican members asked a lot of questions about how strictly MPCA will be enforcing compliance given manufacturer concerns about the ability to use and navigate the PRISM system. MPCA repeatedly stated their focus will be on education, and that they will be looking for intentional non-compliance as manufacturers begin reporting on July 1, 2026. 

The PRISM system is used in other states to report certain chemicals. The goal of Minnesota’s build-out is to allow Minnesota reporting to align with other states who pass similar PFAS reporting laws. Based on feedback, MPCA has already made a few changes to PRISM and will release detailed information on this. Assistant Commissioner Koudelka indicated the agency’s expectation is for manufacturers to report data three years back, but acknowledged there will be gaps in what manufacturers are able to report. 

Also on Thursday, the House Energy committee heard an update from the Public Utilities Commission.Their presentation touched on their recent ruling allowing waste to energy in Minnesota. They received no questions or comments on this subject from committee members.

Finally, the Senate Environment, Climate and Legacy Committee heard a presentation from the Department of Natural Resources (DNR) about the 2025 Environment and Natural Resources Trust Fund (ENRTF) Community Grant Program Report. Aquatic invasive species management was one of the five allowable uses for community grant funds. As of now, no funds have been allocated, but the DNR is beginning the application process for ENRTF Community Grant Advisory Council members with the goal of getting expedited funds out in the second half of 2026 while also opening up the standard grant application process. 

The committee was also slated to hear a presentation on Minnesota’s 2026 Climate Action Framework from the MPCA, but this was postponed until a later meeting due to lack of time.

Bill introductions of interest:

·        HF3420 (Lee, K.) /SF3589 (Rest) Hennepin County and Ramsey County deed and mortgage taxes expiration extended.

·        HF3460 (Hill) Washington County; regional facility to process wood waste and diseased trees funding provided, bonds issued, and money appropriated.

·        SF3577 (Seeberger)/HF3252 (Myers) Drinking water contaminate mitigation program establishment.

·        SF3638 (Green)  Commissioner of natural resources conveyance and approval of certain sales of tax-forfeited land duties and requirements provision.

House Environment and Natural Resources

Tuesday, February 24

• Overview and updates on groundwater management, water sustainability, and community tree planting from the Minnesota Department of Natural Resources and Metropolitan Council.

Legislative Audit Commission – Audit Subcommittee

Tuesday, February 24

• Department of Natural Resources: Outdoor Heritage Fund Grants

House Legacy Finance

Wednesday, February 25

• Presentation on Legacy budget reserves
• Presentation from Lessard-Sams Outdoor Heritage Council

Senate Energy, Utilities, Environment and Climate

Wednesday, February 25

• Public Utilities Commission

Senate Capital Investment

Thursday, February 26

• Minnesota Public Facilities Authority
• Minnesota Water Infrastructure Coalition

Senate Taxes

Thursday, February 26

SF3589 (Rest) – Hennepin County and Ramsey County deed and mortgage taxes expiration extension

Office of Inspector General Bill stalls in State Government Finance and Policy committee and on House floor: After hearing from numerous state agencies on what they were doing to address fraud concerns and implement ongoing monitoring, the committee started to hear SF856, which passed the Senate in 2025 (60-7) and had been referred to the committee. The House author of the bill, Rep. Matt Norris (DFL-Blaine) introduced his delete everything amendment to the Senate language, with the chair requesting a roll call vote. House Republicans loudly voiced concerns with the new amendment, saying it was a significant change from the Senate language and that they were not consulted. DFLers said that it is relatively routine for authors to introduce delete everything amendments in a committee of origin. The amendment failed on a party line vote, so the bill was withdrawn. The next day on the House floor the House GOP moved to suspend the rules to take up the original Senate language of SF856 for passage. That motion failed on a party line vote. The bill is currently scheduled for a hearing on Tuesday in State Government Finance committee, when Rep. Jim Nash (GOP-Waconia) will be chairing the meeting.

Monday, February 23

Senate Jobs and Economic Development

Paid Leave Presentation From DEED

2026.02 Paid Leave Legislative Update

House Elections Finance and Government Operations

• HF1667 (Schomacker) Water and sewer districts added to the definition of municipality, and maximum tort liability for certain water and sewer districts set.
• HF2526 (Duran) Exceptions to prohibition against gifts to local officials expanded.
• HF0068 (Quam) Retention elections for persons appointed to certain county offices required.

Tuesday, February 24

House State Government Finance

• SF0856 (Norris) Office of the Inspector General creation and appropriation. (This bill was heard at the previous committee hearing, but the delete everything amendment was not adopted).

House Workforce, Labor, and Economic Development Finance and Policy

• Department of Employment and Economic Development presentation on implementation of the Paid Family Medical Leave program

Senate Elections

• SF3823 (Boldon) All local official requirement to file statement of economic interest

Legislative Commission on Pensions and Retirement

• Annual Update by the Commission actuary, VIA Actuarial Solutions
• Annual Updates by the Pension Fund Executive Directors, including PERA
  
  

Wednesday, February 25

Thursday, February 26

Senate Elections

SF 3644 (Draheim) Statement of economic interest requirement to include disclosures relating to stock and virtual currency

Bill introductions of interest:

·        HF3461(Luger-Nikolai)/SF3693(Johnson-Stewart) Aligning certain benefit rights for legislative leaves of absence from state and local government employment

·        HF3499(Johnson) Exempting paid on call firefighters from the Minnesota Paid Leave Law

·        HF3505(Duran)/SF3743(Green) Prohibiting cannabis businesses from being located near Youth Athletic Facilities

Public Safety policy discussions this week continue to reflect two dominant threads that have emerged early in session: firearms regulation and the intersection of state and federal enforcement authority. In a divided House, committee agendas remain carefully structured, with each co-chair setting the tone on alternating days. Consistent with Minnesota’s constrained budget outlook, proposals moving forward are largely policy-driven rather than finance-heavy, emphasizing criminal penalties, statutory refinements, and procedural clarifications rather than significant new appropriations.

House Public Safety Finance and Policy Committee – Tuesday

Co-Chair Rep. Kelly Moller will hold the gavel Tuesday as the committee hears several high-profile firearms and law enforcement–related bills.

·        HF3433 (Greenman) Bans possession of semiautomatic military-style assault weapons and provides criminal penalties.

·        HF3402 (Tabke) Bans possession of large-capacity ammunition magazines.

·        HF3412 (Finke) Modifies when an individual may conceal their identity in public and creates specific exceptions for law enforcement officers.

·        HF3405 (Moller) Requires the Bureau of Criminal Apprehension’s Use of Force Investigations Unit to investigate incidents involving federal agents.

·        HF3404 (Klevorn) Increases penalties for impersonating a peace officer, creates a firearm-related impersonation offense, and establishes identification requirements for individuals presenting as officers.

Tuesday’s agenda centers on firearms restrictions, identity concealment, impersonation of law enforcement, and increased state oversight of federal enforcement activity. The proposals reflect continued legislative attention to public demonstrations, enforcement authority, and weapons regulation.

House Public Safety Finance and Policy Committee – Wednesday

Co-Chair Rep. Paul Novotny will preside Wednesday, with the agenda shifting toward violent crime penalties and corrections-related policy adjustments.

·        HF2358 (Van Binsbergen) Enhances penalties for coercion crimes resulting in great bodily harm or death.

·        HF3504 (Duran) Establishes the crime of physically assaulting a hospital or clinic security officer.

·        HF2169 (Schwartz) Modifies second-degree unintentional murder provisions to include additional protective order violation circumstances.

·        HF3496 (Harder) Requires incarcerated individuals to complete restitution payments before being eligible for supervision abatement status.

·        HF3440 (Stier) Extends the availability of previously appropriated funds for law enforcement use-of-force training.

Wednesday’s hearing focuses on sentencing enhancements, restitution requirements tied to supervision status, protections for healthcare security personnel, and technical adjustments to previously enacted training appropriations.

Senate Judiciary and Public Safety Committee – Monday

The Senate Judiciary and Public Safety Committee will convene Monday with a hearing primarily focused on a proposed constitutional amendment related to equal rights protections.

·        SF0473 (Kunesh) Constitutional amendment establishing equal rights protections and prohibiting discrimination based on enumerated characteristics.

Bill Introductions of Note:

In addition to hearings, several bills introduced last week and referred to Public Safety committees carry implications for county operations, particularly in the areas of jail operations, prosecution, supervision, and law enforcement coordination.

House of Representatives

·        HF3405 (Moller) Requires the Bureau of Criminal Apprehension’s Use of Force Investigations Unit to investigate incidents involving federal agents.

·        HF3404 (Klevorn) Increases penalties for impersonating a peace officer, creates an offense for impersonation while possessing a firearm, and requires identification by individuals presenting as officers.

·        HF3496 (Harder) Requires incarcerated individuals to complete restitution obligations before being eligible for supervision abatement status.

·        HF3504 (Duran) Establishes the crime of physically assaulting a hospital or clinic security officer.

·        HF2358 (Van Binsbergen) Enhances penalties for coercion offenses resulting in great bodily harm or death.

·        HF3412 (Finke) Modifies when an individual may conceal their identity in public and creates specific exceptions for law enforcement officers.

·        HF3433 (Greenman) Bans possession of semiautomatic military-style assault weapons and provides criminal penalties.

·        HF3402 (Tabke) Bans possession of large-capacity ammunition magazines.

Senate

·        SF3550 (Westlin) Establishing a onetime public safety aid for local and Tribal governments

·        SF3590 (Port) A bill for an act relating to public safety; modifying circumstances when a person may conceal their identity in public and creating specific exceptions for law enforcement officers

·        SF3628 (Champion) A bill for an act relating to civil law; creating a cause of action for violations of civil rights under color of law; regulating state and local collaboration agreements with federal law enforcement agencies

·        SF3631 (Westlin) A bill for an act relating to public safety; prohibiting the possession of dangerous weapons in the Capitol complex

·        SF3632 (Westlin) A bill for an act relating to public safety; requiring policies for law enforcement relating to the safety of elected officials in the community

·        SF3634 (Holmstrom) A bill for an act relating to corrections; providing a time frame for the commissioner of corrections to make a decision relating to a comprehensive plan for correctional services

·        SF3735 (Hoffman) A bill for an act relating to public safety; increasing criminal penalty for impersonating a peace officer