MICA Weekly Legislative Update - Issue #6

March 23, 2026

Headlines

Governor Walz rolls out supplemental budget, with a wide range of county impacts included

On Tuesday, March 17 Governor Walz released his supplemental budget. At a high level it would on net spend $63 million in this biennium and reduce state general fund spending by $435 million in FY 28-29. There is little true detail available at this point, outside of a two page spreadsheet and a brief paragraph summary of each individual proposal. Non-partisan staff are working on language for these bills, but it’s not anticipated that it will be introduced until after the legislature returns from its break.

The Governor emphasized a significant expansion of the dependent care tax credit for taxpayers with children five and under, nearly tripling the credit and increasing the income cap (when the credit starts to decrease) from $64,150 to $120,000. The proposal costs about $150 million a year, the largest individual cost item included in the governor’s recommendations.

Cost Savings Proposals

The biggest cost savings item in the governor’s recommendations is a multi-pronged proposal to reduce costs in disability, older adult, and behavioral health services. The proposal includes establishing or modifying billing limits; extending electronic visit verification to more services; expanding the agency's authority to request service documentation directly from providers; and limiting the use of remote services. The proposal includes net savings of $282 million in FY 28-29.

Another cost savings measure is his proposal to “modernize program and payment integrity safeguards” which would enhance technology and data-driven processes that support Medical Assistance by strengthening prepayment review, post-payment analysis, and continuous fraud detection. It would also link licensing, enrollment, claims review, and auditing into a unified oversight framework. According to MMB the proposal would result in $167 million in cost savings in FY 26-27. The cost savings from both of those proposals are based on assumptions that MMB is making that the new processes would realize rather than clear reductions in spending.

 

Technology Modernization and Contracted Case Management

Another one of the largest spending items in the Governor’s supplemental budget is $25 million in FY 2027 and $5 million in FY 2028-29 to address MAXIS issues. The state would leverage a federal match to invest $45.5 million in total across three years. $4 million in FY 2027 would be for the state portion of costs to complete a comprehensive study that would establish a phased roadmap to develop modernized program eligibility policies, processes, and technology with the ultimate goal of achieving a modernized cross-agency, universal eligibility determination capability

And as discussed in last week’s update just a little more detail came out about the Governor’s proposal to “transform human services delivery” in Minnesota. The recommendation would transition the Medicaid program from multiple managed care organizations to a single statewide administrative service organization and shifts several financial eligibility responsibilities from counties and Tribal Nations to the state by July 1, 2028, and establishes an assessment and implementation work plan for future transfer of functions to DHS by December 31, 2032. It would add a state based MnCHOICES assessment team to address county assessment backlogs, develop assessor prioritization and policy guidance, and evaluate system-wide assessment reforms to inform how the state could assume full responsibility in the future. The recommendation proposes to phase out contracted case management by July 1, 2031, and fund a study to guide future case management improvements. The study would make recommendations for the 2029 legislature to consider.

 

What They’re Saying

On technology modernization

  • Governor Walz said that his proposal is a first step of something that would require work over several years. “We need to know exactly what we need to get before that kind of investment (in the hundreds of millions) is made. This is going to be a multi-year process, but I think this is the best way to start.”
  • When asked about whether bonding could be an option for technology modernization as some legislators have proposed, Minnesota Management and Budget Commissioner Erin Campbell said that depending on what the study recommends that “bonding is an option that could be considered in the future.”
  • On the total cost of replacing systems Campbell said, “we’ll look to the study to see what the total cost would be and how to best pay for that.” Recommendations from the study would be ready or consideration by the legislature in 2029.

 

On disability services

  • In explaining the impact of the changes he’s proposing to disability services, Governor Walz said “Minnesota is the most generous state in those areas and we’ll continue to be. We’re talking about trying to resize and make sure these programs are as efficient as they can possibly be.”

 

On prospects at the capitol

  • When asked about how his budget would be received at the capitol, Governor Walz said “there’s a lot of bipartisan agreement, this upgrade of the systems is one of them….We’ll get reforms where we need them, I won’t get everything I want, but we’re focused on very common themes here.”
  • House Ways & Means Co-Chair Rep. Paul Torkelson (R-Hanska) thought there was some common ground on technology modernization but less enthused about other parts of the budget. “New taxes on Minnesotans, especially ones that make it harder for low-income residents to access legal services, and cuts to nursing home providers, will face strong resistance.”

 

Senate DFL releases fraud response package, includes technology modernization

On Tuesday the Senate DFL held a press conference announcing their fraud prevention package. The package included the much-discussed creation of the Office of Inspector General, increasing compliance measures for providers before enrollment, strengthening conflicts of interest laws, and most significantly providing funds for technology modernization at the state and county level. Senate Majority Leader Erin Murphy (DFL-St Paul) said, “We’ve heard from counties across the state for years about the need for badly needed upgrades to IT systems, and both parties recognize that without these upgrades we’re left vulnerable to waste and abuse.”

When discussing different technology modernization proposals, Sen. Erin Maye Quade (DFL-Apple Valley) referenced a meeting she had over the interim with commissioners from Dakota, Scott, and Rice counties. “We can’t attempt to deliver services using technology that’s five years away from being ready for Y2K,” Maye Quade said. “And I think the technology we had before using this system was called paper. We have to start making significant investments in our human services technology at the state and county levels.”

 

Legislative retirement announcements keep coming

Last week Rep. Patti Anderson (R-Dellwood), Rep. Paul Novotny (R-Elk River), and Rep. Chris Swedzinski (R-Ghent) all announced plans to retire from legislative service when their current terms end. That brings the total number of legislators who are either retiring or running for a different office at 41.

News and Notes

Legislative timeline:

  • 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

 

Article on contracted case management: The Star Tribune published an article on how different counties and managed care organizations have responded to the Governor’s proposal to phase out contracted case management. The article quotes a number of county officials pushing back on the idea that contracted case management increases fraud and details a bit about the scope of what the change would mean at individual county levels.

 

Non-disclosure agreements and data centers becoming hotter topic at the Capitol: On Friday night Almanac ran a feature on data centers locating in Minnesota and the response at the state capitol, with bills moving out of committee on non-disclosure agreements. Both Sen. Erin Maye Quade (DFL-Apple Valley) and Sen. Steve Drazkowski (R-Mazeppa) were featured.

MICA Legislative Update timing over the next two weeks

With the legislature heading into Easter/Passover break (5:00pm on Friday, March 27 until 8:00am Tuesday, April 7), our publication schedule will change to share the most relevant information with MICA members when you need it, while also making sure our lobby team gets a little break too!

  • Legislative Update Issue #7 – will publish on Tuesday, March 31 by end of day – focus will be on what happened this week (March 23-27)
  • Legislative Update Issue #8 – will publish on Tuesday, April 7 by noon – focus will be on anything major that happened during the break, as well as what’s on tap for the week ahead (April 7-10)

 

Tax & Fiscal Policy - Last Week

Governor’s supplemental budget tax proposals not focused on counties: The Governor’s supplemental budget recommendations in the tax area don’t focus on counties or property taxes. There are no proposed cuts to County Program Aid or changes to property taxes. The recommendations are more focused on income taxes, including the change to the dependent care credit covered in the headlines section, a federal conformity package that we don’t have details on yet, and reviving the tax on social media companies that Sen. Ann Rest (DFL-New Hope) proposed last year. The Governor proposes dedicating the revenue raised from that tax to support workforce development initiatives targeted at workers who experience job loss due to artificial intelligence.

One area that would potentially impact counties more indirectly would be his proposal returning from last year that would expand the sales tax base to legal, accounting, brokerage and trust services, and some bank service charges for consumers services with a slight rate reduction (.075%, so less than one tenth of one percent) at the state level. On net the proposal would raise $243 million in FY 28-29. For counties that have a county transportation sales tax or a special authorization for a specific project, they would benefit from the expanded sales tax base without having to provide the corresponding rate reduction. House and Senate Republicans expressed skepticism when asked about the proposal, much like last year.

 

On the sales tax proposal

  • “It (Minnesota sales tax) is getting out of balance,” said Governor Walz. “People are buying less goods and more services. You need to put it back into balance.”
  • Senate Minority Leader Mark Johnson (R-East Grand Forks) was pessimistic, saying “I think we’re probably going to end up with the same arguments against those ideas again. I don’t see a pathway for this happening.”

 

House Tax Committee hears proposal on modifying interest accrued for unpaid special assessments: On Tuesday, the House Committee on Taxes heard HF238 (W. Johnson) which would require that, when a property owner pays an installment on a special assessment prior to the end of the year, the owner be refunded the difference between the interest accrued up to the date of payment and the interest accrued to the end of the year. This bill would also require that, if a property owner prepaid a special assessment, only interest accrued up to the date of payment would be due with the prepayment. This is a challenge since counties are not banks and are not calculating interest rates every month. It would also require counties to distribute the refund to the taxpayer in proportion to the amount of their respective taxes included in the levy for the tax year overpaid. Testimony from the committee hearing centered around taxpayers who pay off a large chunk of an assessment after the November 15 deadline but before the end of the year, and the result that would have on higher interest payments for the taxpayer the following year. MICA is working with county officials and the author to find other possible alternatives to this legislation.

 

Tax & Fiscal Policy - The Week Ahead

Senate Taxes is not meeting on Tuesday or Wednesday. On Thursday it will hear a variety of local sales tax and tax increment financing bills.

 

Tuesday, March 24

House Committee on Taxes

·        Presentation from the Minnesota Department of Revenue on the 2026 Tax Incidence Study

·        HF331 (Engen) Sales and use tax exemption provided for all school supplies.

·        HF916 (Baker) Individual income and corporate franchise taxes; income subtraction provided for certain commercial loans issued by financial institutions.

 

Wednesday, March 25

House Committee on Taxes

  • Presentations on Local Homelessness Aid Implementation
  • HFXXXX (Gomez) Repeal of Local Homelessness Aid Sunset (Pending Introduction)

 

Bill Introductions of Interest:

  • SF4756 (Kreun) Establishing levy limits for local governmental units
  • SF4608 (Abeler) Establishing levy limits for cities and counties; modifying the authorization process for additional levies above the limit (these levy limit bills are not scheduled for a hearing, but MICA did include talking points in response to these types of proposal in a previous update you can refer to)
  • HF4485 (Schultz) Onetime property tax refund or credit provided, and money appropriated
  • SF4685 (Hemmingsen-Jaeger) Prohibiting the imposition of certain fees for residential improvements necessary to accommodate the disability of a veteran
  • SF4725 (Hemmingsen-Jaeger) One time increase to the targeted property tax refund

 

Transportation - Last Week

Governor’s Recommendations Indirectly Reduce Transportation Spending

Governor Walz’s supplemental budget recommendations reduce funding for both roads and transit.

One of Walz’s signature proposals is to reduce the rate of the statewide sales tax from 6.500% to 6.425%. While he does propose extending the application of the sales tax to some professional services to offset a portion of the lost revenue, estimates show sales tax proceeds could still decrease by $78.6 million in FY26-27 and $242.8 million in FY28-29. Because the revenue from the sales tax on auto parts is dedicated to the trunk highway fund, the lower sales rate would mean a loss to the HUTDF and the accounts it funds, such as the county state-aid highways (CSAH). In the next biennium, the loss to CSAH is estimated to be $771,000 and grows to $2.38 million in FY28-29.

On the transit side of things, the lower sales tax rate results in a minimal loss to greater Minnesota transit funding.  However, Walz also recommends cutting over $41 million from Metro Transit’s general fund allocation over the next four years.

Fortunately for transportation advocates, neither of these recommendations is expected to garner legislative support, maintaining the current levels of spending.

 

Tensions Rise in House Transportation Committee

Tensions between Democrats and Republicans on the House Transportation Committee have been growing over the past few weeks, with numerous issues failing on party-line votes. Frustrations spilled over at last Tuesday’s hearing, as Republicans roll-called a non-controversial bill to make technical corrections to the ignition interlock program. A recess was hastily called by Co-Chair Brad Tabke (DFL-Shakopee), who stormed out with Co-Chair Jon Koznick (R-Lakeville). Things were a bit calmer when they reconvened, but Tabke’s decision to prevent Republicans from offering prepared amendments to the last bill on the agenda before abruptly adjourning ruffled feathers.  The following day, the inability to cooperate continued as Democrats blocked Co-Chair Koznick’s third attempt to move his autonomous vehicle legislation from committee.

Bill Introductions of Interest      

  • HF4434 (Jones)/ SF4598 (Dibble) Requirements relating to state-aid design standards and variances in certain transportation projects modified, and report required.
  • HF4507 (Heintzeman)/SF4538 (Kreun) $15 million general obligation appropriation for the Local Government Road Wetland Replacement Program.
  • HF4485 (Freiberg) Land monument protection fund established for the public land survey system monument grant program, and new fee set for registration of a mortgage or deed.
  • HF4449 (Jones) Requirements governing transit planning, project development, performance, and related transit-oriented development, including to establish performance measures, require a transit system investment framework, limit certain highway projects, and establish zoning requirements modified; and reallocation of funds provided.

 

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

Transportation - The Week Ahead

House Transportation

Monday, March 23

Co-Chair Tabke holds the gavel

The committee is slated to take up a variety of bills including agency housekeeping bills, an autonomous vehicle study, and passenger rail development.

 

House Transportation

Wednesday, March 25

Co-Chair Koznick holds the gavel.

Several bills are on the agenda including:

  • HF3441 (Koznick) Puts the onus on Hennepin County to pay for outstanding costs related to the Blue Line Light rail extension.
  • HF3507 (Koznick) Reallocates state appropriations for the Blue Line light rail transit extension project money for arterial bus rapid transit.
  • HF3562 (Anderson, PE) Lowers the rate of the motor vehicle registration tax from 1.575% to 1.285% and accelerates the depreciation schedule.

Senate Transportation

Wednesday, March 25

The Committee will take up a variety of bills and spend time marking up the autonomous vehicle bills discussed the week prior.


 

Health & Human Services - Governor Supplemental Budget

Governor Walz released his 2026 supplemental budget proposal on Tuesday. HHS highlights:

  • Lowering Costs for Families: would offset rising child care costs by providing families with child care tax credit by $3,000  for one child and $6,000 for two or more children under five years old. The proposal also includes $33 million for permanent supportive housing, $34 million for first-time homebuyer down payment assistance, and a cut to the statewide sales tax by .075%.
  • Fraud Prevention and Financial Integrity: establishes a Statewide Office of Inspector General; prohibits legislatively-named grants; adds capacity for fraud prevention at the Attorney General’s Medicaid Fraud Unit; strengthens program integrity at managed care organizations; and allocates $30 million over three years to update Minnesota’s legacy IT systems.

 

Health & Human Services - Fraud Prevention

CMS has approved Minnesota’s “corrective action plan,” possibly voiding the federal administration’s moves to block retroactive and future Medicaid dollars to Minnesota out of concern over fraud. In a statement, DHS stated that the federal government took almost 7 weeks to review but, in the end, did not add anything new to Minnesota’s corrective action plan, which was originally submitted on January 30. The corrective action plan includes various steps to strengthen state oversight over 14 Medicaid services deemed vulnerable to fraud. CMS had earlier threatened to withhold $2 billion in yearly Medicaid funding. This week’s communication indicated that the state’s successful completion of the plan addresses concerns that make the $2 billion withhold moot. 

In other action, the federal administration also demanded $259 million in 2025 Medicaid claims be repaid by the state in an administrative “deferral,” which Minnesota has sued over. In a Friday letter to the court, the Attorney General’s office said they are trying to understand how the CMS approval of the corrective action plan will affect the $259 million deferral. 

Health & Human Services - County Priorities

MAAFPCWDA:HF4125 (Agbaje and Gillman) represents one of counties‘ priority bills which would modify the MAAFPCWD. As introduced, the proposal requires DCYF to conduct the required case reviews and create the summary reports and remediation plans, and requires the responsible counties to provide the commissioner with information requested. It also changes the due date for the first report to October 1, 2031, from October 1, 2029, and appropriates money to DCYF to distribute to counties to implement the MAAFPCDWA. Hearing Link

 

The Children and Families Committee addressed the bill on Wednesday. Rep. Esther Agbaje (DFL-Minneapolis) presented the A-4 Amendment; adopted

  • defines disproportionately represented child;
  • requires the commissioner to determine the communities that are disproportionately represented in​ Minnesota's child protection system
  • requires commissioner to define what constitutes disability and low-income socioeconomic status​
  • counties must​document the efforts the agency takes when determining whether a child meets or does not​ meet the definition of disproportionately represented child
  • phases in case review to DCYF beginning in January 2028.
  • extends Hennepin and Ramsey Counties‘ appropriations from June 30 to December 31, 2026.

 

County Testimony:

  • Washington County Commissioner Karla Bigham and Executive Director Stacie Hennen, Western Prairie Human Services, testified in support of the underlying bill.
  • Ramsey County Commissioner Rena Moran and Hennepin County Commissioner Irene Fernando both testified from the perspective of the phase-in counties who began this work in 2025.
  • Tina Schenk and Kristin Langeron (Meeker County) testified on behalf of counties on the underlying bill. They noted that Meeker County’s reduction in out-of-home placements, indicating the county has had an 87% decrease since 2019.

 

Other Testimony:

  • Kalis Houston, Village Arms, indicated that phased-in case reviews is not appropriate; all cases should be reviewed. She also stated that the first report date should remain due in October 2029 – rather than changing it to 2031.
  • Joanna Woman, Keeping Families Connected Minnesota
  • Family from Kandiyohi County regarding their experience as foster parents/adoptive parents.

Combined Written Testimony

Rep. Nathan Nelson (R-Hinckley)  then presented the DE-2 Amendment, which would have paused statewide  implementation of MAAFPCDWA by one year (until January 2028). Rep. Agbaje spoke in opposition of both the delay and that there were no resources included for counties in the proposal. The amendment failed on a vote of 7-7.

Rep. Natalie Zeleznikar (R- Fredenberg Township) called out IT issues, as well as funding for the other 85 counties to be able to implement. Rep. Agbaje replied that, while sympathetic with counties workers regarding IT, it is going to take time for the money to flow through the system; we cannot stop the work because of an archaic computer system. She also pointed out that there is a blank appropriation in the bill as we do not yet know what the budget will allow.

The motion to pass the bill onto Judiciary failed on a voice vote along party lines. The bill remains in the House Children and Families Committee.

The Senate companion, SF4335 (Champion) is scheduled to be heard Tuesday evening in the Senate Health and Human Services Committee.

Health & Human Services - Last Week

Monday Senate Human Services

  • SF4399 (Oumou Verbeten) DCT 2026 Policy Bill; includes clarification relating to data sharing and improves patient care by allowing more time for forensics patients to voluntarily return for medical care and providing routine patient care before emergencies arise. The bill passed and was referred to Judiciary.

     Bill Summary

     Bill Index

  • sc4098.pdf (Hoffman) Continuity of care legislation: Although no formal action was taken, in presenting his proposal regarding payment withholds, Sen. Hoffman (DFL-Champlin) addressed three main concerns: protecting services, housing security, and shared responsibility of caring for our neighbors and establishing that we have clear coordination guidelines.


Monday: House Floor Session

  • HF3379 (Schomacker) formally repeals the Housing Stabilization Services program, which has been in the media of late. The bill passed on unanimous vote (134-0).
  • HF3615 (Hanson) extends a deadline for the state's low-dose hemp industry to test its products in-state to May 31, 2027. Minnesota testing companies are facing delays due to increasing amounts of cannabis headed to the market. In addition, Rep. Jessica Hanson (DFL-Burnsville) stated that hemp businesses are facing a dark future with an impending federal hemp ban in November and needs help from the state. The House passed the bill 100-34. A companion bill has cleared Senate committees and is awaiting a vote on the Senate floor.

 

Tuesday House Human Services:

  • HF4101 (Schultz) requires continued submission of a report to the Legislature on the use of periodic data matching in Medical Assistance. Removes the reporting sunset of September 1, 2026. The bill was laid over for possible inclusion in the committee’s omnibus bill. Bill Summary

 

Committee Materials:

 

Tuesday House State Government

  • HF3682 (Nash) would require the Department of Administration’s Office of Grants Management (OGM) to develop a grantee fraud risk rating system policy. Would be informed by the principles of vendor risk management, a process of identifying and mitigating the risks that organizations face when working with external vendors or service providers. The bill passed as amended and was sent to Ways and Means.

    HF3682 A1; extends the implementation date to July 1, 2027.

 

Tuesday Senate Health and Human Services:

  • SF2868 (Clark) allows persons convicted of a felony-level drug offense within the previous ten years to receive MFIP benefits if otherwise eligible and removes the random drug testing requirement for persons receiving MFIP or SNAP benefits who were convicted of a felony-level drug offense within the previous ten years. The bill passed on a voice vote and was sent to the Senate floor.
  • SF3439 (Boldon) effective August 1, 2026, prohibits the use of the conscientiously-held beliefs exemption for the measles, mumps, and rubella (MMR) vaccine for a person enrolling or enrolled in a child care facility, certified license exempt child care center, preschool, prekindergarten program, or elementary or secondary school. The bill passed on a voice vote  and was sent to the Education Policy Committee.
  • SF4388 (Wiklund) establishes early childhood mental health consultation grants; modifies home and community-based services protection-related rights; and modifies treatment program requirements. The bill was laid over. Bill Summary
  • SF3970 (Port) modifies eligibility requirements for foster care benefits after age 18 to include children for whom permanent legal and physical custody is transferred to a relative after age ten. The bill was laid over. Bill Summary
    • Anna Broskoff (Brown County) testified regarding county concerns about implementation costs wherein additional staff will be needed and caseloads increased beyond capacity.
  • SF1509 (Port) to be included in Housing Finance Agency Vehicle. Exempts income received from “lived-experience” engagement from being considered income, assets, or personal property for certain public assistance programs. The bill was laid over.
  • SF3859 (Klein) establishes coverage without cost-sharing requirement of immunization for routine use without a prescription; establishes a Minnesota Science-Based Vaccine Advisory Council. The bill passed on a vote of 5-4 and was referred to Finance. Bill Summary
  • SF4416 (Wiklund) MDH Bill relating to Immunizations: Defines “medically acceptable standards" as the immunization schedule determined by MDH. The bill passed on a vote of 5-4 and was referred to Education Policy. Bill Summary
  • SF3734 (Boldon), a policy bill with no cost, modifies intensive residential treatment services and intensive nonresidential rehabilitative mental health services requirements. The bill was laid over for possible inclusion in the committee’s omnibus bill. Bill Summary

     scs3734a-1; Adopted

  • SF4091 (Wiklund) MDH Policy Bill Bill Summary
    • Modifies suicide prevention plan and 988 Lifeline reporting provisions.
    • Exception to the Contract Term Limit for the WIC Program: The WIC program relies on complex Management Information Systems (MIS) and Electronic Benefits Transfer (EBT) systems to deliver supplemental nutrition benefits to eligible families. Current state law limits professional and technical contracts to a maximum of five years, requiring near-constant reprocurement of these mission-critical systems. Conforms with federal USDA guidance by providing an exception to the contract term limit for WIC, MIS, and EBT services, allowing an initial five-year contract with extensions up to a total of ten years. Promotes service continuity, reduces administrative burden, and supports more competitive pricing for the state’s WIC program, while ensuring uninterrupted access to essential nutrition benefits for Minnesotans.
    • Option for Tribal Governments to participate in the State Community Health Services Advisory Committee (SCHAC).

The bill was laid over for possible inclusion in the committee’s omnibus bill.

 

The following bills were heard on an information basis only – due to late introductions:

  • SF4520 (Boldon) DCYF Policy Bill: authorizes nonprofit limited liability companies to apply to be a child-placing agency authorization, modifies childcare background study timing, and modifies foster care, child placement, and child maltreatment provisions.

    scs4520a-1; deletes section 1 relating to “individuals who are related.”

    Bill Index

  • 26-06084 (Wiklund) Department of Human Services Office of Inspector General Policy Bill

    Bill Summary

    Bill Index

    ahl005a-2.pdf

  • 26-06082 (Wiklund) Department of Human Services Health Care Administration Policy Bill: Extends report for the pilot program in which counties and Tribes are reimbursed for long-acting injectable antipsychotic medications administered to prisoners in county correctional institutions. Extends the report to November 2026 as the pilot is still underway.

    Bill Summary

    Bill Index

    A-2 amendment (Utke) addresses CARMA enrollment. In response to litigation, the language ensures alignment with the court decision.

  • 26-06081 (Boldon) Department of Human Services Behavioral Health Policy Bill

    Bill Summary

    Bill index

  • 26-06083 (Mohamed) Department of Human Services Housing Policy Bill

    Bill Summary

    Bill Index

 

Tuesday House Children and Families:

    • Posters identifying possible abuse injuries in daycares
    • Make permanent the Volunteer Guardian ad litem Program
    • Fiscal Analysis of Child Welfare Funding Streams
    • Transparency for Child Fatalities
  • HF3819 (West) modifies licensing inspection requirements for child care providers, establishes program integrity requirements for child care assistance program. The bill failed to advance to Judiciary on a vote of 7-5. The bill was then laid over. Bill Summary
  • HF3901 (Johnson, W) Investigative powers added to the Office of the Foster Youth Ombudsperson. The bill passed on a voice vote and was referred to Judiciary. Bill Summary
  • HF4408 (Nelson) Requiring Transparency in Child Fatality reports. The bill passed and was referred to Ways and Means.Bill Summary

    HF4408 A1 (Nelson) interview of caseworkers; adopted

    Arizona Child Fatality Report
    Oregon Child Fatality Report

  • HF4316 (Olson) Requiring notification of maltreatment in child care centers. The bill was laid over and will be brought back next week. Bill Summary

    HF4316 A1 (Olson) self reporting; adopted on a voice vote

  • HF4277 (West) would require a licensed child care center that receives any amount of CCAP funds, Great Start compensation support payments, early learning scholarships, or a combination thereof to have video security cameras in public and shared areas of its facility. Must comply with video camera requirements established under current law governing camera coverage, retention and disposal of recordings, access to and dissemination of recordings, usage policies, and notices. The bill failed to advance to Judiciary on a vote of 7-6. Bill Summary

Amendments:

    • HF4277 A3 (Coulter) requires consent of parents/legal guardians; adopted on a voice vote
    • HF4277 A8 (XP Lee) requires employment references; adopted on a voice vote

 

Tuesday House Public Safety

  • HF3453 (Hanson) establishes the legal age to possess kratom as 21 years of age or older. Passed and sent to the House Floor. HF3453 Bill Summary

Tuesday Senate Commerce
The committee heard a series of Office of Cannabis Management bills

  • SF4402 (Dibble) states that data reported to the Office of Cannabis Management through the statewide monitoring system is not public data. The bill passed and was referred to Judiciary and Public Safety. Bill Summary

 

Wednesday Senate Health and Human Services

  • SF4531 (Wiklund) appropriations for various mental health grants, including school-linked behavioral health grants, family peer specialist start-up grants, mobile crisis grants, mental health grants for health care professionals, and crisis stabilization grants. The bill passed as amended and was referred to Judiciary.

    A-1 Amendment; author’s amendment; deleted appropriation for children’s residential mental health; adopted

  • SF4222 (Abeler) modifies MA provider enrollment requirements, including the existing authority of DHS to impose sanctions on MA providers. Amended; laid over.

    A-2 Amendment; author’s delete all amendment; adopted

    A-2 Bill Summary; delete all summary

  • SF3861 (Mohamed) expands list of services subject to electronic visit verification, including the 14 programs identified as high risk for fraud. The bill passed as amended and was referred to Judiciary. Bill Summary

    A-4 Amendment (Wicklund) limits redactions in the Optum report, which audited Medicaid for the 14 identified high-risk services. Adopted on a voice vote.

  • SF4267 (Hoffman) Recodification of commissioner’s authority to impose sanctions on MA providers. The bill passed and was referred to Human Services. Bill Summary

 

Wednesday House Human Services

  • HF4354 (Frederick) technical Direct Care and Treatment Policy Bill. The bill was laid over for additional work at a later date. Bill Summary

    HFA7 (Frederick) addresses disclosure of certain personnel data; adopted


Wednesday House Children and Families:

  • HF3665 (Pinto) modifies out-of-home placement plan requirements to include early childhood education and child care programs, and requires agencies to provide information on early childhood education and child care programs for children in foster care. The bill was laid over pending a fiscal note. Bill Summary

    A-1 Author’s Amendment; responsible social agency to provide early childhood education and child care program options in the foster parent's​ geographic area, the Northstar foster     care benefits child care allowance, and eligibility requirements for the CCAP and Early Learning​ Scholarships. Adopted.

    Combined Testimony

  • HF3002 (Hicks) modifies eligibility requirements for foster care benefits after age 18 to include children for whom permanent legal and physical custody is transferred to a relative after age ten. The bill was laid over for possible inclusion in the committee’s omnibus bill.

    DE2 Author’s Delete All Amendment; adopted

    Combined Testimony

Wednesday Senate Human Services: The following bills were laid over for possible inclusion in the committee’s omnibus bill:

  • SF4395 (Mohamed) addresses contracted HCBS waiver case management. Requires counties to utilize a competitive contracting process every two years and prohibits new or renewed contracts for waiver case management after July 1, 2029. Requires DHS to establish a waiver case management quality working group and to conduct a rate study with a report due on January 15, 2028. Bill Summary

    Louelle Kauffer, Hennepin County, testified on behalf of counties. She indicated county support for both the rate study and the working group called for in the legislation. She then     expressed several concerns if this legislation were to pass as written, including loss of client choice, reduction in availability of culturally-specific case managers, and the already     severe workforce challenges experienced within the county system. Specific to Hennepin County, they estimate that 500-600 new hires would be required to replace contracted case     management.

    Sen. Jim Abeler (R-Anoka) and Sen. Melissa Wiklund (DFL-Bloomington) stated their support for the working group and the rate study - as it is clear that the case management system     needs to be examined. Both signaled that additional information is necessary before making the decision to eliminate counties’ ability to contract.

    MSSA Letter

    MACSSA Letter

    A Team Minnesota

  • SF3928 (Mohamed) clarifies community first services and supports requirements for shared services; establishes requirements regarding a passthrough to support workers of a CFSS provider’s reimbursement rate when a single support worker provides services to two or three participants at the same time. Bill Summary

    SEIU Shared-Services Flyer

  • SF813 (Fateh) establishes new reporting requirements concerning integrated community services (ICS); modifies the ICS setting capacity reporting process; establishes an ICS program integrity and sustainability work group; and prohibits the commissioner from modifying ICS until the Legislature has had an opportunity to review the working group’s required report. Bill Summary

    A-2.Author’s Delete All Amendment; adopted

  • SF4354 (Abeler) makes modifications to the existing authority of DHS to impose sanctions on MA providers, as well as modifications to MA provider enrollment. Bill Summary

    A-2 Amendment (Abeler) adopted

    A-3 Amendment (Wiklund) DHS OIG itself is not in statute; this would direct commissioner to come up with the statutory language to codify what exists today. Adopted

 

Wednesday House Health

  • HF3769 (Curran) Department of Corrections Technical Omnibus Bill: Includes screening of inmates  for tuberculosis (TB) within 14 days of intake and annually thereafter. Establishes the protocol that the commissioner must follow if an incarcerated person refuses to submit to a TB test which requires the commissioner to secure a court order compelling the incarcerated person to submit to the test. Requires all new employees at facilities operated or licensed by the Department of Corrections to be screened for tuberculosis prior to beginning employment and annually thereafter. The bill passed and was sent to the House floor. Bill Summary

    Rep. Danny Nadeau (R-Rogers) commented that this would have a cost for counties.

  • HF3978 (Reyer) Technical bill related to 2025 legislation that established a health care provider wellness program for physicians. Expands to all health care providers. The bill passed and was sent to the House floor. Bill summary

 

Wednesday House Health

  • HF3476 (Liebling) establishes a Patient-Centered Care program for certain MA and MinnesotaCare enrollees. Would require DHS to either terminate or let expire current contracts with managed care organizations and instead pay health care providers directly for services provided to the program’s enrollees. The commissioner would be permitted to contract with administrative services organizations (ASOs) to carry out some functions of the program, but the ASOs would not be able to take on any of the risk for the program. The bill was laid over as amended for possible inclusion in the committee’s omnibus bill. Bill Summary

    HF3476A1; author’s amendment; aligns with the Senate language; adopted
    HF3476 Combined Testimony

Wednesday House Public Safety

  • HF4282 (Witte) modifies the statute that requires jails to provide inmates with prescriptions for the drugs they were taking at the time they were incarcerated, which the 2025 Legislature enacted. The bill was laid over. Bill Summary

    HF4282 MN Sheriffs Association Support Letter

    HF4282-0 Completed Fiscal Note.pdf

Opposition:

o   HF4282 NAMI-MN Letter

o   HF4282 MN Justice Research Center letter.pdf

o   HF4282 MN Freedom Fund Opposition Letter.pdf

o   HF4282 ACLU-MN opposition letter.pdf

o   HF4282 Mental Health Work Group of CUAPB opposition letter.pdf

 

Thursday Senate Judiciary

  • SF4064 (Westlin) Minnesota Judicial Branch policy provisions; extends the availability of an appropriation for the Supreme Court Council on Child Protection from June 30, 2026 to June 30, 2027. The bill passed as amended and was sent to the Senate Floor.

 

Bill Introductions of Interest:

  • SF4473 (Kreun) Harvey's Law establishment
  • SF4512 (Hoffman) Delay implementation of Waiver Reimagine by one year
  • SF4514 (Marty) Onetime emergency rental assistance aid for counties and Tribal governments establishment
  • SF4530 (Wiklund) Basic sliding fee allocation formula provisions modifications
  • SF4550 (Utke) Legislative working group on intellectual and developmental disabilities creation
  • SF4581 (Oumou Verbeten)/HF4432 (Perez-Vega) Child care assistance program absent days limit exemption establishment
  • SF4604 (Mohamed) Compliance training requirement for high-risk medical assistance providers
  • SF4614 (Abeler) Due process procedures for home and community-based residential services modification
  • HF4301 (Gander)/SF4457 (Johnson) County, municipality, and township funding provided for planning and assistance to support drinking water regionalization; report required; and money appropriated.
  • HF4327 (Harder) Departments of Human Services and Children, Youth, and Families required to provide a report to the legislature on program integrity.
  • HF4378 (Kozlowski) Onetime emergency rental assistance aid for counties and Tribal governments established, claims administrator required to return unused funds, prior appropriation canceled, time period to correct delinquent rent temporarily extended, and money appropriated.
  • HF4394 (Feist) Funding provided for support services for young adults released from juvenile detention or prison, and money appropriated.
  • HF4407 (Gillman) Minnesota African American Family Preservation and Child Welfare Disproportionality Act modified.
  • HF4408 (Nelson) Public disclosure of information related to child fatalities and near fatalities required, and child mortality review panel annual report requirements modified.
  • HF4428 (Nadeau) Community engagement requirements established for the medical assistance program.
  • HF4491 (Schomacker) Medical assistance prepayment review requirements established, and report required.

Health & Human Services - The Week Ahead

With policy committee deadlines quickly approaching (Friday at 5 PM), the committees will be meeting day and night this week. MICA’s three HHS priorities are all scheduled for the evening session on Tuesday in Senate Health and Human Services. This includes technology modernization, HR1 impacts relating to SNAP, and amending the MAAFPCWD by (1) transferring case reviews to the state; and (2) the state providing resources for counties’ staffing and services for implementation.

Combined legislative schedule

 

Monday, March 23

Senate Judiciary and Public Safety

  • SF2689 (Johnson Stewart) Modifying provisions governing Medicaid fraud addition *(Pending Committee Referral)*

 

House Health Finance

Co-Chair Bierman holds the gavel.

  • HF4438 (Bierman) MDH Policy Bill
  • HF4467 (Bierman) DHS Health Care Administration Policy Bill
  • HF4379 (Bierman) Early childhood mental health consultation grants established, protection-related rights for home and community-based services modified, day treatment program requirements modified, intensive rehabilitative mental health services modified, and reports required.
  • SF3402 (Virnig) Community health board medical consultant acceptable professions to serve modifications.

 

Senate Human Services

  • SF3755/HF3379 (Hoffman) Housing stabilization services repealer provision, commissioners authority to terminate or modify the medical assistance program clarifying provision, and medical assistance prepayment implementation authority for the commissioner clarification provision
  • SFXXXX (Hoffman) Department of Human Services aging and disability services policy bill
  • SF XXXX (Boldon) Department of Human Services behavioral health policy bill

 

Tuesday, March 24

House Human Services

Co-Chair Schomacker holds the gavel

  • HF4491 (Schomacker) Medical assistance prepayment review requirements established, and report required.
  • HF4338 (Schomacker) Parties who may be awarded fees and expenses in proceedings involving the state modified, requirements for assisted living facilities to provide residents with a means to request assistance modified, and assisted living facilities exempted from the provider tax
  • HF4288 (Franson) Framework rates for family residential services reenacted.
  • HFXXXX (Franson) Relating to human services; permitting suspension of medical assistance payments during investigation of kickback fraud; requiring rulemaking to include kickbacks in the definition of fraud

 

House State Government

Co-Chair Nash holds the gavel

  • SF856 (Norris) Office of the Inspector General creation and appropriation.
  • HF3672 (Quam) Recommendations of the legislative auditor regarding agency grant, inventory, and debt collection practices implemented.

 

Senate Health and Human Services; this hearing will extend into Tuesday evening. The Committee will meet at the regular time in the morning from 8:30 to 10:30 AM 1100 MSB. The evening portion of the hearing will be held in Capitol 123 beginning at 5:30 PM

 

  • SF2689 (Johnson Stewart) Modifying provisions governing Medicaid fraud addition *(Pending Committee Referral)*
  • SF4604 (Mohamed) Compliance training requirement for high-risk medical assistance providers
  • SF4551 (Utke) Providers, vendors, and individuals seeking to receive public money for providing services submission of proof of operation and finances for the most recent three years requirement provision
  • SF4092 (Wiklund) Certain transfer of funds repeal and certain rates increase limitation
  • SF4187 (Pappas) Notice of unlawfully transported infectious waste or pathological waste requirement
  • SF4719  (Wiklund) County Information Technology
  • SF4359 (Boldon) County share for administrative costs for the Supplemental Nutrition Assistance Program modification
  • SF4335 (Champion) Minnesota African American Family Preservation and Child Welfare Disproportionality Act modification
  • SF4581 (Oumou Verbeten) Child care assistance program absent days limit exemption establishment
  • SF4545 (Boldon) Great start compensation support payments grant program modifications
  • SF4324 (Wiklund) Licensed child care centers and licensed family care governing policies and rules encodement and modernization provisions

(A-26 delete-everything amendment contains only changes that are technical and clarifying to the underlying bill. No substantive changes.)

 

House Public Safety Finance and Policy

  • HF2354 (Norris) Medical assistance fraud governing provisions added and modified, attorney general provided subpoena and enforcement authority, criminal penalties provided, conforming changes made, and money appropriated

 

House Children and Families

Co-Chair West holds the gavel.

  • HF3831 (Altendorf) SNAP income and asset requirements modified.
  • HF3603 (Olson) Commissioner of children, youth, and families directed to request a federal waiver to prohibit the purchase of certain items with SNAP benefits.
  • HF1900 (Nadeau) Benefit eligibility offense provisions changed.
  • HF495 (West) Day care costs paid by the taxpayer provided a subtraction.
  • HF3750 (Torkelson) Requirements governing licenses and license exemptions for crisis nurseries amended, and report required.
  • HF4316 (Olson) Child care background study notification requirements modified, child care leadership made responsible for maltreatment at centers, and maltreatment notification requirements modified.

 

Wednesday, March 25

House Commerce

Co-Chair Koegel holds the gavel. 

  • HF4203 (Hanson, J.) Studies and an annual market analysis conducted by the Office of Cannabis Management modified, and reports required. **Omnibus Cannabis Policy Vehicle**

 

House Human Services Committee

Co-Chair Noor holds the gavel.

  • HF4210 (Fischer) Senior nutrition programs modified.
  • HF4212 (Virnig) Access to certain information allowed, references to chapter 144D removed, documentation on use of patient restraints required, and change of ownership provisions clarified.
  • HFXXXX (Noor) DHS policy bill on housing
  • HFXXXX (Fischer) DHS policy bill on behavioral health
  • HFXXXX (Noor) Updates to forecast appropriation article

 

Senate Health and Human Services

  • Overview of the Governor's HHS Supplemental Budget Items -MN Department of Children, Youth, and Families
    • MNsure
    • MN Department of Health
    • MN Department of Human Services
  • Testimony on the Omnibus Health Professional Scope and Licensing Bill (The bill will be posted here on Monday, March 23rd)

 

Senate Judiciary

  • SF3711 (Mann) Kratom classification as a Schedule II controlled substance
  • SF3704 (Mann) Kratom possession legal age establishment as 21 years of age or older

 

House Health

  • HF4493 (Baker) Pharmacists authorized to initiate, prescribe, administer, and dispense drugs for the treatment of opioid use disorder; and grounds for disciplinary action for pharmacists and pharmacist interns modified.
  • HF4289 (Backer) Parent allowed to request one free certified birth record per child.
  • HF3756 (Backer) Definition for covered insulin provided for the insulin safety net program and manufacturer registration fee.
  • HF4143 (Nadeau) Assessment of the hospital surcharge temporarily stopped.
  • HF4142 (Nadeau) Medical assistance coverage of prescription drugs solely for weight loss prohibited.

 

House Children and Families

Co-Chair Kotyza-Witthuhn holds the gavel.

  • HF4432 (Pérez-Vega) Child care assistance program absent days limit exemption established, and technical changes made.
  • HF3773 (Lee) Minnesota supplemental nutrition assistance program established, and money appropriated.
    *** Note that testimony on 
    HF3773 was previously heard in committee on February 25, 2026 and additional public testimony may be limited

 

House Public Safety

Co-Chair Novotny holds the gavel.

  • HF4425 (Myers) Statute of limitations for crimes involving medical assistance fraud or other theft of money belonging to the government increased.
  • HF3990 (Novotny/Moller) Public Safety Policy Package.
    Consideration of amendments, markup of bill, and passage out of committee. The DE1 with the language of the policy package is attached.

Committee Materials:

HF 3990 DE1 amendment.pdf
HF 3496 DE1 authors amendment.pdf
HF 4151 A1 authors amendment.pdf

 

Senate Human Services

  • SF476 (Hoffman) will be the vehicle for the Omnibus Human Services policy bill. A delete-everything amendment with the omnibus language will be posted prior to the hearing.

The hearing will be a walkthrough of the omnibus Human Services policy bill only. No public testimony will be taken on Wednesday.

 

Thursday, March 26

Senate Health and Human Services

  • Omnibus HHS Policy Bill (The bill will be posted here on Monday, March 23)
  • Omnibus Health Professional Scope and Licensing Bill (The bill will be posted here on Monday, March 23)

 

Friday, March 27

Senate Human Services

  • SF476 (Hoffman) Certain medical assistance services expansion to include coverage of care evaluation, home care preceptor grant program establishment, and appropriation
    • SF476 will be the vehicle for the Omnibus Human Services policy bill. A delete-everything amendment with the omnibus language will be posted prior to Wednesday's hearing.

     

Environment - Last Week

For awareness, the Senate companion to the waste-to-energy (WTE) facility incineration standards bill was introduced on Thursday: SF4578 (Fateh). Our current intel is that the Senate Environment, Climate and Legacy committee is unlikely to hear this bill, and certainly not before the combined first and second deadlines on March 27. We’ll be ready to respond quickly if needed, but for now, signs are pointing to this bill not getting much traction this session.

Also of note, significant progress has been made in negotiations with industry stakeholders on the updated battery and electronic waste bills in the works from the Association of Minnesota Counties (AMC), MPCA, and Recycling Electronics for Climate Action (RECA). As of now, the plan is that new language will be amended on to last year’s bills (HF1426/SF1690), with Rep. Athena Hollins (DFL-St. Paul) taking over as the chief author of HF1426. We expect both the House and Senate bills will be heard late this week, and MICA will submit a letter of support as we did last session.

Unsurprisingly, the Governor’s proposed supplemental budget, which was released on Tuesday, included requests for both electronic waste and loose battery product stewardship programs. There were no other items of interest for MICA’s environment priorities in the Governor’s budget.

Last week was relatively quiet on the hearing front given Monday’s cancelled hearings and the Eid break later in the week. The House Environment and Natural Resources committee heard HF4224 (Fischer), a non-controversial Minnesota Pollution Control Agency (MPCA) bill, on Tuesday. It would amend a law passed in 2023 that added notification requirements when there is a pollutant discharge from a publicly owned water treatment facility or a publicly or privately owned domestic sewer system, as well as add downstream Tribal governments to the list of those required to be promptly notified. The bill passed and was re-referred to the General Register.

The committee also continued their work on HF3426 (Jordan), the Environment and Natural Resources Trust Fund (ENRTF) appropriations for FY2027. Co-Chair Peter Fischer (DFL-Maplewood) offered the A10 amendment, which relates to the emerging issues account and adds new language to create guardrails around how these funds can be spent, which was adopted. He also offered the A11 amendment, which adds in the community grants program language with a new requirement that organizations applying for these funds are required to have surety bonds, that was also adopted. The bill was laid over for continued discussion, with plans to focus on possible changes based on feedback from the Office of the Legislative Auditor (OLA) on the community grants program.

Environment - Bill Introductions of Interest

Bill

Author

Title

HF4295

McDonald

County authorized to approve up to 24 chickens on any lot by ordinance.

Companions: SF4547

SF4547

Hoffman

County authorization to approve up to 24 chickens on any lot by ordinance

Companions: HF4295

HF4301

Gander

County, municipality and township funding provided for planning and assistance to support drinking water regionalization; report required; and money appropriated.

Companions: SF4457

SF4457

Johnson

Counties, municipalities and townships for planning and assistance to support drinking water regionalization appropriation

Companions: HF4301

HF4311

Zeleznikar

Duluth North Shore Sanitary District funding provided, bonds issued and money appropriated.

Companions: SF4384

HF4337

Skraba

Commissioner of natural resources authority to provide training to individuals to inspect watercraft for aquatic macrophytes, aquatic invasive species and water modified.

Companions: SF4229

HF4350

Hansen, R.

Agriculture policy provisions modified.

Companions: SF4561

SF4561

Putnam

Agriculture policy provisions modifications

Companions: HF4350

HF4383

Igo

Forests and forestry capital projects funding provided, bonds issued and money appropriated.

Companions: SF4528

SF4528

Dibble

Forests and forestry capital projects appropriation and bond issuance authorization

Companions: HF4383

HF4411

Wiener

100 percent carbon free by 2040 standard repealed.

Companions: SF4463

SF4463

Mathews

Repeal the 100 percent carbon free by 2040 standard

Companions: HF4411

SF4525

Kunesh

Water discharges notice requirements modifications

Companions: HF4224

SF4533

Xiong

New disposal facilities near school prohibition provision

Companions: HF3842

SF4578

Fateh

Methods of emissions measurements, emissions limit, and capacity limits for municipal solid waste incinerators provisions

Companions: HF4197

SF4610

Johnson Stewart

Certain single-use plastic use prohibition

Environment - The Week Ahead

House Elections Finance and Government Operations

Monday, March 23

  • HF4295 (McDonald) County authorized to approve up to 24 chickens on any lot by ordinance.

 

Wednesday, March 25

  • HF3883 (Freiberg) - Water supply planning and reporting requirements clarified.

 

House Environment and Natural Resources

Tuesday, March 24

  • HF4253 (Bliss) - Rule amendments on boat storage structures in public waters required.
  • HF4257 (Heintzeman) - Date by which manufacturers are required to submit information about products containing intentionally added PFAS modified, and use of PFAS in products as currently unavoidable uses clarified.
  • HF3236 (Burkel) - Requirements for water appropriations permits modified.
  • HF4264 (Heintzeman) - Permitting efficiency provisions modified.
  • HF4149 (Heintzeman) - Soil and water conservation provisions modified.
  • HF4019 (Schultz) - Mt. Simon-Hinckley aquifer appropriation permits eligibility criteria expanded.

 

House Legacy Finance

Wednesday, March 25

  • Clean Water Fund Update

 

Senate Environment, Climate and Legacy

Tuesday, March 24

  • SF4446 (Hawj) Soil and water conservation provisions modification
  • SF4374 (Hauschild) State park license plate contest requirements provision
  • SF4525 (Kuensh) Water discharges notice requirements modifications
  • SF3594 (Kunesh) School trust lands director duties modification provision, Legislative Permanent School Fund Commission director's required report modification

 

Pensions & General Government - Last Week

Legislative Commission on Pensions hears bills related to PERA plan: The Legislative Commission on Pensions and Retirement heard two bills relevant to counties. SF4373 (Frentz) would amend the law so that payments made to a member from the family and medical benefit insurance account for Minnesota Paid Leave would not be included in the member’s salary for pension purposes. Sen. Nick Frentz (DFL-North Mankato) said this would line up paid leave with the treatment of workers compensation. It would allow employees to purchase service credits for the time missed and would increase the stability of the plans. PERA testified in favor of the bill and the committee approved the motion to include it in the pensions omnibus bill.

The committee also heard HF4162 (O’Driscoll) which would require school districts of reemployed annuitants to make employer contributions to TRA during the period of reemployment. Since the employee would already be receiving their pension benefit, they would not (and are not) required to make employee contributions while they’re re-employed. While the bill language was specific to TRA, Rep. O’Driscoll (R-Sartell) said that he would like this treatment to also apply to all other plans as well.

Sen. Jordan Rasmusson (R-Fergus Falls) expressed concern that such a proposal would increase costs and property taxes at the local level. MICA is working with PERA to help determine what the statewide cost to such a proposal would be to the PERA and Police & Fire plans. TRA estimated that for that plan it would increase employer contributions by $5.4 million statewide. The bill was laid over for possible inclusion and the committee generally agreed that if the change is made for TRA it would make sense for other plans as well. This policy is also in place for the St. Paul Teachers plan.

 

Senate State & Local Government hearing on non-disclosure agreements: On Tuesday the Senate State & Local Government Committee heard two bills from Sen. Erin Maye Quade (DFL-Apple Valley). SF4296 would require local governments to hold at least two public hearings before voting to approve a permit for a data center project. SF4379 would ban counties, cities, towns, school districts, and other political subdivisions from signing a non-disclosure agreement which prevents disclosure of information to the public, unless state or federal law restricts disclosure. An A2 amendment to SF4379 was adopted that would narrow the bill to development of land or economic development projects, very similar to how the bill was amended in the House.

Though the two bills are distinct they were largely discussed together in committee. Sen. Mark Koran (R-North Branch) expressed skepticism about the bill, saying elections are ultimately the better check on non-disclosure agreements if voters find they are irresponsible and noted that if this ban is going to apply to local governments it should also apply to state agencies. Sen. Andrew Matthews (R-Princeton) offered an amendment to extend the ban to the state level, Sen. Maye Quade said that she might be open to this idea but that the language needs more work. That amendment was voted down and the bill was referred to Judiciary with support from the DFL and Sen. Steve Drazkowski (R-Mazeppa).

Pensions & General Government - The Week Ahead

Most committees have listed their scheduled hearings through Wednesday. There will be more committee meetings that get scheduled for both Thursday and Friday that are not posted yet, but likely will be by the end of the day Tuesday.

Monday, March 23

House Elections and Government Operations

  • HF3295 (Gordon) Open Meeting Law; meeting broadcasting through social media authorized.
  • HF3589 (Gordon) Voter permitted to briefly leave a polling place to address an unexpected need, at the discretion of the head election judge.
  • HF3587 (Gordon) Election judges who assist a voter outside of a polling place required to handle only one voted ballot at a time.
  • HF3588 (Quam) Eligible persons who may request a public information list expanded.
  • HF4295 (McDonald) County authorized to approve up to 24 chickens on any lot by ordinance.
  • HF3895 (Igo) Zoning authority of local governments over certain housing types limited.

 

Tuesday, March 24

House State Government Finance and Policy

  • SF856 (Norris) Office of the Inspector General creation and appropriation.
  • HF1234 (Scott) Payment transparency required in public contracts. (Pending motion to recall and re-refer)
  • HF0936 (Nash) Cost-benefit analysis required for proposed administrative rules, adoption of certain rules prohibited, and notice to legislature upon adoption of exempt rules required.

 

House Capital Investment

  • HF2418 First Engrossment (Tabke) was heard in Capital Investment on April 30, 2025. The H2418DE4 amendment was adopted and the bill was laid over as amended. The Chair will bring up HF2418 as amended by the H2418DE4 for further consideration. Additional testimony will not be taken.
    • MICA worked with Rep. Tabke (DFL-Shakopee) on the language included in the delete everything amendment. The amendment calls for maintenance and preservation plans rather than the original language, which required local governments to establish and fund capital replacement accounts to require they have the funds before being considered for state capital investment.

 

Senate State and Local Government

  • SF4548 (Hauschild) Ban local elected officials from entering certain nondisclosure agreements
  • SF2621 (Mohamed) Constitutional Amendment proposal to increase the sales tax rate by three-eighths of one percent and dedicating the receipts for housing purposes; Homeownership opportunity fund, community and household stability fund, and rental opportunity fund establishment; fund councils establishment

 

Senate Commerce

  • SF4541 (Dibble) Cannabis business licensing provisions modification
  • SF4540 (Dibble) Cannabis business license and endorsement provisions modification
  • SF4519 (Dibble) Local unit of government's cannabis business regulations provisions modifications
  • SF4542 (Dibble) Cannabis event provisions modification

 

Senate Labor

  • SF1714 (Johnson-Stewart) Public contracts payment transparency requirement provision

 

Senate Elections

  • SF4223 (Westlin) Certain reporting threshold increase provision, certain deadlines and filing periods clarification provision, and conforming and technical changes
    • This is a vehicle bill. No additional testimony will be taken.
  • SF4006 (Westlin) Various election administration changes provisions, absentee voting provisions modifications, technical and clarifying changes, and appropriation
    • This is the vehicle for the Elections Policy Omnibus bill. Policy Omnibus rollout / overview only. Testimony and markup will take place on Thursday, March 26. The DE amendment will be posted before the hearing on Tuesday.

 

Legislative Commission on Pensions and Retirements

  • Recommendations of the Probation Officers and 911 Telecommunicators Pension Plans Work Group
  • If time permits: 
    • SF4588 (Frentz) MSRS, PERA, TRA; moving investment return assumption for calculating joint and survivor annuities from statute to the Standards' Appendix.

 

Wednesday, March 25

House Workforce, Labor, and Economic Development Finance and Policy

  • HF4110 (Zeleznikar) Rest break and meal break requirements adjusted under certain circumstances
  • HF4414 (Baker) Elected officials exempted from Minnesota Paid Leave Law
  • HFXXXX (Bakeberg) Modifying the definition of seasonal employee under Minnesota Paid Leave law
  •  HF2113 (Robbins) Small employers exempted from requirement to provide paid leave

House Elections Finance and Government Operations

  • HF4202 (J. Hanson) Provisions relating to local unit of government's regulation of cannabis businesses modified.
  • HF3882 (Virnig) Metropolitan Council program requirements modified, reporting requirements modified, Metropolitan Council and regional development commission review of city housing finance programs removed, and technical corrections made.
  • Many other bills less relevant to counties

 

Thursday, March 26

Senate Elections

  • SF4006 (Westlin) Various election administration changes provisions, absentee voting provisions modifications, technical and clarifying changes, and appropriation
    • This is the vehicle for the Elections Policy Omnibus bill. Testimony & Markup

 

Bill Introductions of Interest:

  • SF4464 (Howe) Continued health insurance coverage for peace officers and firefighters disabled in the line of duty; modifying eligibility to receive continued health insurance coverage for which the employer must pay the employer contribution
  • SF4548 (Hauschild) Ban local elected officials from entering certain nondisclosure agreements
  • HF4326 (Stier) Authorizing payment of a retirement annuity without reduction or suspension upon reemployment
  • HF4485 (Freiberg) Establishing a land monument protection fund for the public land survey system monument grant program; setting new fee for registration of a mortgage or deed
  • SF4697 (Pratt) Exempting elected officials from the Minnesota Paid Leave
    Law
  • SF4721 (Frentz) Local government correctional service retirement plan; reducing the employee and employer contribution rates; increasing postretirement adjustments
  • SF4745 (Gustafson) Requiring creation of a centralized certified payroll reporting portal and database for all state projects covered by prevailing wage requirements

 

Corrections & Public Safety


Public safety committees continued advancing a broad range of policy proposals last week, with activity spanning emerging technology, criminal enforcement standards, and regulatory updates impacting public safety systems. Much of the discussion reflected a continued legislative focus on adapting existing statutes to evolving challenges, including the use of artificial intelligence, consumer protection issues, and enforcement authority. In the House, committees maintained a steady pace across a wide array of topics, while the Senate began to expand its agenda following a slower start to session.

With committee deadlines approaching this Friday, activity has begun to accelerate as lawmakers work to move priority policy bills through the committee process. As in prior weeks, the focus remains largely on statutory and operational changes rather than new funding, though many of the proposals carry meaningful implications for courts, law enforcement, and county-administered public safety systems.

Corrections & Public Safety - Last Week

In the Senate Judiciary and Public Safety Committee, lawmakers heard a broad set of proposals spanning artificial intelligence regulation, firearms policy, fraud, and data privacy. A series of bills focused on regulating artificial intelligence, including prohibiting its use in certain health care utilization review processes, restricting minors’ access to chatbot services, and requiring disclosure when individuals are interacting with AI systems. The committee also considered legislation prohibiting the sale and possession of ghost guns, as well as proposals addressing organized retail theft through the inclusion of gift card fraud, data protection for research information, and housing-related protections such as prohibiting landlords from listing minor children on lease or eviction documents. Additional measures included policy changes related to disaster assistance reporting and remedies for victims of domestic abuse in property-related contracts.

In the House Public Safety Finance and Policy Committee, members considered a mix of criminal justice, regulatory, and operational proposals. Legislation heard included modifications to extreme risk protection order processes, establishment of a minimum age for kratom possession, and prohibitions on transporting detained individuals in vehicles not designed for law enforcement use. The committee also reviewed proposals requiring criminal case information reporting and adjusting disaster assistance reporting timelines. Later in the week, lawmakers considered bills regulating fireworks and dedicating revenue to public safety, establishing a new crime for disruption of worship services, clarifying law enforcement authority, and requiring that individuals detained in jails be provided necessary medications. Additional discussion included State Fire Code standards for alcohol-blended fuel equipment, reflecting ongoing attention to public safety regulation and infrastructure.

Corrections & Public Safety - The Week Ahead

Senate Judiciary and Public Safety Committee – Monday

  • SF2689 (Johnson Stewart) Modifying provisions governing Medicaid fraud addition 

 

Senate Judiciary and Public Safety Committee – Wednesday

  • SF4171 (Port) Vacating tenants sub metered utility service final billing provision and payment of rent by tenants provisions modifications
  • SF4537 (Seeberger) Expedited eviction process requirements modifications
  • SF3711 (Mann) Kratom classification as a Schedule II controlled substance
  • SF3704 (Mann) Kratom possession legal age establishment as 21 years of age or older
  • SF3969 (Maye Quade) Licensing boards reporting requirement provision and grooming criminal offense establishment provision
  • SF3900 (Rest) Legislative auditor recommendations regarding agency grant, inventory, and debt collection practices implementation provision

 

House Public Safety Finance and Policy Committee – Tuesday

  • HF2354 (Norris) Medical assistance fraud governing provisions added and modified, attorney general provided subpoena and enforcement authority, criminal penalties provided, conforming changes made, and money appropriated.
  • HF3407 (Pinto) Sale and possession of ghost guns prohibited, 3D printing of guns limited to federally licensed firearms manufacturers, distribution of 3D printer firearm design files prohibited.
  • HF4359 (Berg) 2024 amendment to definition of trigger activator reenacted, 2024 changes to crime of transferring a firearm to an ineligible person reenacted with amendments, and affirmative defense repealed for transfers of a firearm to an ineligible person by family or household members. HF4192 (Pinto) Fraud prevention in registrations, licenses, passes, and permits issued by the commissioner provided; and criminal penalties provided.
  • HF3356 (Huot) Removal of identifying equipment and insignia from emergency vehicles sold to the public required.
  • HF3695 (Johnson) Task force on standardized identification for emergency responders established, report required, and money appropriated.
  • HF1597 (Norris) Task Force on Establishing a Yellow Alert System established, and report required
  • HF3155 (Tabke) Gift card fraud included in organized retail theft.
  • HF3871 (Moller) Venue in child sexual abuse material law provided; on-scene preview of digital evidence in child sexual abuse material investigations; possession, sale, creation, dissemination, and purchase of child-like sex dolls prohibited.
  • HF4437 (Greenman) Wagers and other activities regarding prediction markets prohibited. 
  • HF4446 (Johnson, P) Survivor benefits eligibility expanded to include when a public safety officer dies in the line of duty from an exposure-related cancer.
  • HF3990 (Novotny) Provisions for employment or occupation due to conviction of a crime changed.
  • HF3990 will be used as the vehicle bill for a Public Safety Policy Package. A DE amendment has been posted. A PDF with a list of bills likely to be included in the DE amendment has been posted. 

 

House Public Safety Finance and Policy Committee – Wednesday

  • HF4371 (Lee, F.) Bureau of Criminal Apprehension required to perform background checks at the request of the Office of the Legislative Auditor.
  • HF4317 (Nash) Peace officer access to surplus badges provided.
  • HF2817 (Knudsen) Service line of duty death benefits provided for part-time, paid on-call, and volunteer firefighters.
  • HF4425 (Myers) Statute of limitations for crimes involving medical assistance fraud or other theft of money belonging to the government increased.
  • HF3496 (Harder) Inmates required to complete restitution payments before being placed on supervision abatement status
  • HF4151 (Witte) Eligibility of certain applicants for licenses to serve as private detectives or protective agents modified.
  • HF3826 (Witte) Identity theft crime; definitions modified and added, attorney general and county attorneys provided with additional subpoena authority, and statutes of limitation altered for fraud-related offenses.
  • HF3990 (Novotny / Moller) Public Safety Policy Package