MICA Weekly Legislative Update - Issue #10

County Issues Heard at the Capitol last week

All three county priorities are included in the Senate Health and Human Services omnibus bill SF4612 (Wiklund). The bill passed out of committee on Thursday and was referred to Finance where it will be heard this Thursday. Floor action will likely take place the following week.

 

Technology Modernization: SF4612 includes a version of SF4719 (Wiklund) on which we have been engaged. The language includes our steering committee language that gives counties an equal voice with the state in the development and prioritizing of modernization projects. It includes funding of $45 million in FY26-27 and $25 million in FY28-29. Last week the House heard the companion bill to SF4612 and counties continue to have positive conversations with members and leaders on both sides of the aisle about our technology modernization request.

 

MAAFPCWDA Modifications: We also have a positive position on our request to resource and effectively implement the Minnesota African-American Family Preservation and Child Welfare Disproportionality Act. This includes $15 million per year to counties for administration and implementation, as well as requiring DCYF to conduct case reviews of ten percent of certain child protection cases. The House Children and Families committee heard amendments to modify the law but those amendments did not pass and any bill failed to move out of the committee.

 

Supplemental Nutrition Assistance Program: The Senate includes funding to address cost shifts to the state from the federal government relating to SNAP by specifically holding counties harmless from the non-federal cost shifts. This includes the portion of the SNAP benefit costs that has been shifted to states based on “error rates” and covering lost federal administrative reimbursement for state information technology systems. The SNAP benefits shift totals $167.9 million in FY 28-29, and the administrative reimbursement totals $24.3 million in FY 26-27 and $64.7 million in FY 28-29.

More details on these and all other issues are covered in greater depth in the issue specific updates.

 

Legislative leaders start to meet to discuss path to end of session as we move to next phase of session: On Thursday House Speaker Lisa Demuth, House DFL Caucus Leader Zach Stephenson, and Senate Majority Leader Erin Murphy met with Governor Walz to discuss session dynamics and what the legislative priorities are heading into the final four weeks of session. This is notably a little bit earlier than when these behind closed doors negotiations typically begin. If anything it’s a good sign that leaders understand that the lack of targets and difficulty with bills matching up likely means they need to be in more regular communication to provide a path to a productive end of session. According to the leaders in this first meeting there was some agreement that work needs to get done to address fraud, pass a bonding bill, and help Hennepin County Medical Center. Of course there was not agreement on how to do those things, but they were each saying positive things about talking together at this early stage.

Sen. Murphy said that technology priorities for counties are an “absolute priority for our caucus this session” but noted that whatever is done on that front this year would require more work in future sessions as well. She also said that a bonding bill was at “the top of the list” for the Senate DFL caucus, but noted that any technology modernization approach would happen on the appropriations side rather than the bonding side. Senate Minority Leader Mark Johnson did not participate in this meeting, if a bonding bill is to pass his caucus would need to put up votes for it, though leaders said bonding was not discussed in detail at this meeting.

Legislative timeline:

• April 28: Governor state of the state address
• May 18: Constitutional deadline for adjournment

Star Tribune column on Hennepin Energy Resource Center: The Star Tribune published a column with a nuanced look at the Hennepin Energy Resource Center, with columnist Eric Roper noting that there are real tradeoffs to closing the HERC, most notably increasing landfills in suburban communities.

 

2027 County Program Aid run made public: House Research staff released their early projection of county program aid amounts to be made in 2027 assuming no law changes to the appropriation or formula in between now and then.

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House hears bill flipping the burden of proof for assessments: On Tuesday, the House Committee on Taxes heard HF3971 (Huot) which would make it so that for property taxpayers claims that their property taxes were based on mistaken property valuations, counties would have the initial burden of showing that the property valuations were correct rather than taxpayers showing they were incorrect. The proposal was being pushed by Ownwell, a private company. Ownwell runs an app that makes it easy to appeal your property taxes in numerous other states, receiving a percentage of any savings they bring you by contesting your valuation. Ownwell’s testimony focused on the importance of making it easy to contest valuations, but did admit they would need this proposal to become law for the “value proposition” to make it worth operating in Minnesota. MICA Executive Director Nathan Jesson testified with concerns about the language, noting that in Minnesota state oversight and the property tax system emphasize getting the assessment right initially, whereas in other states assessors will often aim high treating their initial valuation as more of an opening offer. Jesson also testified with concerns that the proposal would create a large wave of appeals without any state funding to match, slowing the process for current more legitimate appeals. The bill was laid over for possible inclusion, with DFL members expressing concerns. The Senate companion has not received a hearing.

 

Senate Republicans roll out their tax plan, including levy limits: On Wednesday Senate Republicans held a press conference highlighting their tax proposals for consideration this session. Included in their proposals was SF4756 a levy limits bill which Sen. Michael Kreun said was designed to reduce unfunded mandates in the future. The bill is somewhat more nuanced than any other levy limit proposals, with adjustments for population growth and an inflation measure, two exceptions that were in law when levy limits were in place from 2008-2010. The bill does include a new factor allowing some unused capacity to carry forward just one year. Sen. Kreun has spoken about how if a local government needs to increase their levy beyond the limit they can go to the voters, similar to how school districts do. Also, nowhere in the language is there an exception for unfunded mandates passed onto local governments from the state or federal government.

While it’s easy to say that levy limits would make it less likely for the state to pass unfunded mandates, reality suggests otherwise, with many committees outside of taxes having limited understanding of the impact they have on property taxes. SF4756 has not been scheduled for a hearing nor has its companion bill received a hearing in the House. But as unfunded mandates continue to impact county levies we anticipate that this issue will return in 2027.

Levy limit talking points

• The overwhelming majority of county budgets are to fill out state and federal mandates, there is not wiggle room in making sure counties comply with state and federal law
• The state and federal government continue to increase mandates and cost shifts
• Proposing levy limits after passing nearly $100 million in cost shifts and aid reductions to counties in FY 28-29 (as the legislature did in 2025) is backward, the state can’t have this issue both ways
• The other main cost driver of county budgets are wages and benefits, which are collectively bargained and in some cases are fixed costs as is the case with pension benefits
• 21 of the last 24 years counties have averaged lower levy increases than school districts, switching to the levy limit model that school districts use is unlikely to have the intended effect

 

Senate hears Governor’s supplemental tax bill: On Tuesday the Senate Tax Committee heard SF 5052 (Rest) which contains the governor’s supplemental tax bill. Commissioner Paul Marquart presented the bill. There are limited components that would directly impact counties in the bill. While the sales tax rate reduction proposed would have some small flow through impact on transportation funding, expanding the sales tax base as the Governor proposes is the larger revenue change (on net the proposal raises sales taxes) which would have a positive impact on counties that have transportation sales taxes, which would benefit from the expanded base. Most of the discussion on the bill focused on the proposed tax on social media companies and sales tax base expansion to accounting, banking, and legal services.

 

House Transportation Committee hears from Met Council on transportation revenue : On Wednesday the Met Council presented on regional transit and governance with Rep. Jon Koznick presiding. The presentation showed the history of met council transportation revenues and governance, the current roles and funding of suburban communities, how the new metro transportation sales tax flows to cover certain spending (as shown in slide 10 of the presentation), as well as a discussion of county transportation sales taxes. Many of the questions centered around slide 12 of the presentation, which shows the projected balances from existing county transportation sales taxes. Rep. Erin Koegel emphasized that Anoka and Dakota are not currently imposing their maximum tax increase allowed half cent rate that they’re allowed to under current law.

Tuesday, April 21

Senate Taxes

• SF5139 (Rarick) Class 2 agricultural property classification modification to include certain farm wineries
• SF5010  (Hauschild) Property tax refunds increments by reduction of co-pay percentages

 

House Taxes

• HF4251 (K. Lee) Capitol complex county host program aid established, and money appropriated.
• Numerous tax increment financing proposals from suburban cities

 

Thursday, April 23

Senate Taxes

• SF2766 (Hauschild) A delete everything amendment will be added to this bill that will encompass the senate minerals article
• SF4570 (Hauschild) Peace officer in certain municipalities minimum employment threshold qualification for purposes of police state aid apportionment modifications
• SF4749 (Weber) Task Force on Housing Taxes and Fees establishment

 

Bill introductions of Interest:

• HF4934 (Perryman) Providing a sales exemption for construction materials used in a courthouse facility
• HF4937 (Mekeland) Electric generation transition aid; modifying the criteria for an eligible taxing jurisdiction to qualify for aid
• HF4974 (K. Lee) Increasing the homestead credit refund; authorizing the commissioner of revenue to implement a tax compliance program
• HF5014 (Howard) Modifying the distribution of local affordable housing aid

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Committee Discusses Transit Planning Reform

Last Monday, the House Transportation Committee held an informational hearing on HF4449, which chief author Rep. Katie Jones (DFL-Minneapolis) has dubbed “Transit for a Resilient Metro.” In a PowerPoint presentation on the bill, Rep. Jones said it will help the metropolitan area be more efficient with its space as it grows by prioritizing density and transit oriented development when planning transit corridors. To accomplish this, the bill:

1. Establishes benchmarks for prioritizing transit corridors based on service density, operating costs, and frequency.
2. Requires increased coordination between road and transit improvements in a corridor by financially penalizing road authorities who make improvements without considering the transit plans for the area.
3. Gives Met Council the authority to buy and develop property around transit stations, so the development supports increased transit ridership.

Rep. Jones also offered an amendment creating an Investment Framework Coordination Committee, comprised of local governments, transit riders, and others, that would advise the Met Council on development of its transit plan and determine when a road project moves forward that is inconsistent with transit plans for the area.

Testifying in support of the bill were Hennepin County Commissioner Marion Greene, who shared that more than 35% of development in the Twin Cities has happened in high-frequency transit corridors. A representative of Move MN said the bill is needed to ensure the resources from the 2023 transportation funding bill are used more efficiently. Scott County Commissioner Jody Brennan relayed concerns about conflicts the framework creates with existing county transit plans that were vetted by the community and the penalties for noncompliance that divert county funds to the Met Council.

The committee discussed an amendment that would have allowed projects inconsistent with a transit plan to move forward without penalty if they addressed a safety issue. A second amendment would have allowed local governments to deviate from the transit framework if a local referendum were held. Both failed on party-line voice votes.

While the legislation is not going anywhere this session, Rep. Jones and Co-Chair Brad Tabke (DFL-Shakopee) are committed to pursuing some version of the proposal next year. MICA will be engaging to ensure any future transit plans, like what’s being proposed here, don’t favor Hennepin and Ramsey Counties over the rest of the metro area and allow for transit and transportation investments that reflect the community’s desires. Rep. Jones tried to frame this as a “good governance” initiative, but giving increased power to the Met Council, an unelected body that is not accountable to anyone, should give everyone pause.

Senate Committee Passes Omnibus Transportation Bill

The Senate Transportation Committee spent this week’s hearing time assembling an Omnibus Transportation Bill, SF3988. The legislation cobbles together several standalone bills heard by the committee this year; a comprehensive list of them can be found here. There are not many provisions of interest to MICA beyond pieces of MnDOT’s housekeeping bill regarding changes to bridge inspection standards. During committee mark-up of the bill, Sen. John Jasinski (R-Faribault) successfully added an amendment to allow local utility relocations that are part of a state highway project to be paid for from the trunk highway fund and not borne by the local community. This was a recommendation from MnDOT’s recent Cost-Participation Report.

The next stop for the bill is the Senate Finance Committee, which is scheduled to hear the bill on Wednesday, April 22. There is no companion bill in the House, which makes enactment of a transportation omnibus unlikely.

 

Bill Introductions of Interest:

• HF4989 (Gordon)/SF5115 (Koran) Projects financed with state money must use cement, concrete, and steel sourced in the United States.
• SF5085 (Dibble)/HF4958 (Greene) All pedestrian crossings in the state compliance with the American with Disabilities Act program establishment provision, appropriation, and bond issuance authorization.

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

 

Senate Transportation

Monday, April 20

Chair Dibble is having an informational hearing on a suite of bills supported by the Sierra Club and Our Streets that elevate transit, walking, and biking – sometimes to the detriment of highway projects. These include:

• SF4657 (Dibble) Department of Transportation to modify the evaluation and planning process for certain transportation projects requirement
• SF4598 (Dibble) Requirements relating to design standards and variances in certain transportation projects modification
• SF3990(Dibble) Trunk highway project development, scoping, and alternatives analysis requirements modification

Counties will be weighing in on SF4598 and the work being undertaken by local elected officials and engineers to update the state-aid design standards.

 

Senate Finance

Wednesday, April 22

• SF3988 (Dibble) Various transportation-related provisions modifications

As SF3988 is a finance & policy bill, budget items will be amended out, and the remaining policy bill will be moved to the floor as a standalone

The supplemental finance bill (HF2433) will be taken up, and an amendment will be offered to add relevant language from SF3988 to HF2433 and align with intended passage out of Finance Committee, followed by time for consideration of additional amendments.

At the end of the discussion, HF2433 will be laid over.
Some language from SF3988 will also be added to the Safety & Security Package (SF3432)

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MICA Bonding Priorities Discussed

Last week, the House Capital Investment Committee spent time discussing MICA’s top bonding priorities including funding for the local road improvement program, local bridge rehabilitation program, and the local government road wetland replacement program. On Tuesday, the Minnesota Transportation Alliance coordinated testimony from several groups, including counties, to discuss the substantial outstanding needs in these important statewide programs.

On Thursday, the committee heard HF4507, which provides $15 million in bonding to the Board of Water and Soil Resources for the Local Government Road Wetland Replacement Program. Thank you to Scott County Engineer Tony Winiecki for delivering compelling testimony in support of the bill.

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Senate: All three county priorities are included in the Senate Health and Human Services omnibus bill SF4612 (Wiklund). The bill passed out of committee on Thursday and was referred to Finance where it will be heard this Thursday. Floor action will likely take place the following week.

Technology Modernization: SF4612 includes a version of SF4719 (Wiklund) on which we have been engaged. The language includes our steering committee language that gives counties an equal voice with the state in the development and prioritizing of modernization projects. It includes funding of $45 million in FY26-27 and $25 million in FY28-29.

MAAFPCWDA Modifications: We also have a positive position on our request to resource and effectively implement the Minnesota African-American Family Preservation and Child Welfare Disproportionality Act. This includes $15 million per year to counties for administration and implementation, as well as requiring DCYF to conduct case reviews of ten percent of certain child protection cases.

Supplemental Nutrition Assistance Program: The Senate includes funding to address cost shifts to the state from the federal government relating to SNAP by specifically holding counties harmless from the non-federal cost shifts. This includes the portion of the SNAP benefit costs that has been shifted to states based on  “error rates” and covering lost federal administrative reimbursement for state information technology systems. The SNAP benefits shift totals $167.9 million in FY 28-29, and the administrative reimbursement totals $24.3 million in FY 26-27 and $64.7 million in FY 28-29.

 

House:

MAAFPCWDA Modifications

Back in March, the House Children and Families Committee addressed HF4125 (Agbaje), the counties’ language, which would require DCYF to conduct the required case reviews and provide funding directed to counties for implementation. On the day of the hearing, Rep. Agbaje amended the bill, which phased in the case review more slowly in response to requests from the Department. While she had previously been working with her co-author Rep. Gillman on any changes to the bill, Rep. Dawn Gillman had concerns with the amendment. When the committee voted on that bill, it did not receive any votes from the Republican members - but it stayed in the committee.

On Tuesday, the committee heard HF4407 from Rep. Gillman, which includes pushing back the implementation date by one year, along with other changes. She also amended her bill to add in Rep. Agbaje’s language, including the counties’ two original positions (resources and case management to the state).

Minnesota Rural Counties testified in favor of HF4407. There was a lot of conversation about where AMC stood, with some House DFL members saying that counties pushing for an implementation date change is only relevant if AMC or all 87 counties agree.

Member comments:

• Co-Chair West stated that “active effort” is not well defined.
• Reps. Samantha Sencer-Mura and Kim Hicks expressed concern about the inclusion of language relating to synthetic opioids.
• Rep. Bjorn Olson inquired as to what happens if counties are unable to comply with the January 1, 2027, date.
• Rebecca St. George (DCYF) responded that there are no direct penalties; that the Department would provide more technical assistance to help counties with compliance. She also indicated that it was possible that counties could end up in court situations.

• Co-Chair Kotyza-Witthuhn stated that she thought this proposal should be part of the committee’s omnibus bill.
• Co-Chair West indicated a delay is the responsible thing to do in light of the fact that DCYF is unable to complete all of the case reviews; he also stated concerns that counties could find themselves in court due to non-compliance. Finally, he referenced that only two of the 87 counties have been funded.

The bill failed on a tie vote of 7-7 and was laid over. Tuesday Hearing Link

In response to committee comments made on Tuesday, AMC sent a letter to the committee reiterating their position on the Act (which is the same position as MICA: funding for services and staffing and shifting case review to the state). Their communication also included the message that “if the legislature does not provide a viable path to provide ongoing support and a plan to shift case review to the state, we believe there must be an honest legislative conversation about the implementation date of January 1, 2027.”

On Wednesday, the committee took up its Omnibus Children and Families bill (HF2929), which contained previously agreed-upon measures relating to child care modernization. During the hearing, Co-Chair Kotyza-Witthuhn offered an amendment which represented the Agbaje MAAFPCDA language, and the letter from AMC was brought up by DFL members. The Republican members did not support that amendment, so it was not added to the bill. Then, as has been the case in numerous committees, the omnibus bill did not get the necessary votes to move out of the committee. Bottom line, there is no Children and Families bill to match up with the Senate. Wednesday Hearing Link

Committee materials:

• Scott County Letter
• Washington State Experience
• Session Daily

 

Technology Modernization

HF4675 (Nadeau) was addressed on Tuesday. County testimony and a brief demonstration of the out-of-date technology came from county staff:

• Wright County Commissioner Jeanne Holland and Wright County Administrator Greg Kryzer
• Crystal Linder, Dakota County
• Dana DeMaster, Dakota County
• Matt Hilgart on behalf of county associations
  
  

Testimony in support of the measure also came from the Long-Term Care Imperative. Hearing Link

Written Testimony; counties’ joint letter can be found on pages 3-4
Session Daily

The bill was laid over.

In addition to the three county priorities addressed above, SF4612 contains components related to federal implementation, including several of the Governor’s recommendations:

• Funding for the resources necessary to comply with new federal Medicaid eligibility requirements, maintaining coverage for eligible enrollees, minimizing workforce burdens on local government, and conducting outreach with impacted community members.
• Ensuring that Medicaid targeted case management rates are compliant with federal law, cost-based, and reconciled using a CMS-approved cost-report.
• Aligning with federal regulations that prohibit FBI background studies for household members of adult day service and adult foster care providers.
• Enhancing safety standards for department licensing staff who face threatening and violent interactions in the workplace.

Bill Index
Spreadsheet

Commissioners Barb Weckman Brekke and Jenny Mongeau testified on behalf of counties, thanking the committee for prioritizing the three issues brought forward by all county organizations, all of which will help greatly in our mission to serve our clients.

Written testimony:

• MICA/AMC/MACSSA/Rural Counties
• Blood-Cancer-United
• ACS-CAN-Letter
• Children-and-Nature-Network-Benefits-of-Time-Outdoors Research
• Nature-Based-Child-Care-Program-
• Lead-Care
• NAMI-Minnesota
• The-Remedy-Support
• MACMHP-Letter-of-Support
• MN-Pharmacy-Alliance
• NASW-MN Coalition
• Testimony-for-Senate-Hearing-of-Governors-Budget-Proposal-PDF.pdf
• This-Is-Medicaid

SF4476  (Hoffman) contains many items of county interest, including:

• Measures to transform the human services delivery system to study the roles and responsibilities of counties, Tribes, and the state.
• Providing continuity of care when individuals are affected by disruptions in our provider community.
• The direction of DHS to assist counties in conducting long-term care assessments (MnCHOICES) using certified assessors.
• The inclusion of several items that counties and others have been discussing as part of our work to find savings in the Long-Term Services and Supports (LTSS) area to prevent significant cost shifts. Counties are pleased to see the “buy back” of $112 million of the original $178 million proposed cost shift to counties.

Notably the bill does not include the language that would have banned counties from using contracted case management. Rather, the proposal focuses on a study that examines current uses of contracted case management, evaluates payment rates, explores appropriate guardrails, and discusses the proper role of counties.

Author’s A-1 Amendment
Bill Index
Spreadsheet

Written Testimony; counties’ joint letter can be found on pages 20-23.

Stearns County Commissioner Tarryl Clark testified on behalf of counties, thanking the committee for holding counties harmless from cost shifts, addressing LTSS savings and human services transformation, as well as the needed date change for non-emergency medical transportation (NEMT).

The committee’s work this session has prioritized program integrity in an effort to fight fraud. HF4338 is expected to save $141.3 million in FY27 and $197 million in following years. Bill Summary. The bill was approved by voice vote and was referred to Ways and Means.

There are several positions of interest to counties, including:

• measures to transform the human services delivery system to study the roles and responsibilities of counties, Tribes, and the state;
• providing continuity of care when individuals are affected by disruptions in our provider community;
• the direction of DHS to assist counties in conducting long-term care assessments (MnCHOICES) using certified assessors; and
• the inclusion of several items that counties and others have been discussing as part of our work to find savings in our Long-Term Services and Supports (LTSS) area in advance of proposed cost shifts.

Notably the bill does not include the language that would ban countries from using contracted case management in the future. Rather, the House proposal focuses on a study that examines current uses of contracted case management, evaluates payment rates, explores appropriate guardrails, and discusses the proper role of counties.

Also included in the bill is the proposal to create an Office of Inspector General, sponsored by Rep. Matt Norris (DFL-Blaine). The bill currently allocates $1.23 million in FY27 to the Attorney General’s Medicaid fraud investigation unit to be used primarily for hiring 18 new positions. Rep. Norris proposed an amendment for additional funding through FY29, which he noted would qualify Minnesota for a federal funding match of about $3 for every $1 spent by the state. However, while Republican members agree that they want more investigation and prosecution of fraudsters in the state, they pushed back for funding for the Attorney General’s office beyond FY27. This led to an impasse on Thursday that left only a year of funding for increased staffing for the state’s Medicaid fraud investigation unit.

Author’s Delete all Amendment
Bill Summary
Written Testimony; counties’ joint letter can be found on pages 24-25
Session Daily

On a vote of 14-8, HF4466 passed out of Health on Wednesday and was referred to Ways and Means. Sponsored by Rep. Robert Bierman, the bill brings the state into compliance with many of the federal changes from HR1.

Bill Index
Spreadsheet
Session Daily

Federal changes the bill would codify under state law include:

• implementing new federally-mandated work requirements for adults without children using Medicaid;
• establishing new six-month renewal requirements;
• establishing cost sharing requirements across departments;
• shortening retroactive coverage for adults without children from three months to one month.

House nonpartisan staff said the bill would save the state $15.9 million in this biennium and $136 million in the next - primarily from cuts around the state’s expansion population, or adults without children.

It came to counties’ attention that DHS recently withdrew the RFP related to the state takeover of the administration of NEMT. Crystal Zaviska, Western Prairie Health and Human Services, raised the concern this week in both the House and Senate Human Services Committees. She highlighted the need for clarity as the state is scheduled to take over the administration of the program on July 1, 2026. At this time, a vendor is not in place, and county attorneys have advised that counties cannot enter into contracts with providers without statutory clarity. She also stated that ancillary costs (food and lodging) were not included when shifted to the state last year. This is of concern not only to county health and human services, but to county-based purchasing and managed care organizations

On Friday, the bill was amended by Sen. Jordan Rasmusson (A14); it would bump the effective date out a year: January 1, 2027, for counties, and July 1, 2027, for CBPs and MCOs. Note that this is placeholder language; ancillary costs were not addressed on Friday.

We will continue to work with DHS and the other stakeholders to ensure that this issue is addressed.

Monday Senate Judiciary:

• SF2689 (Johnson Stewart) expands the authority of the Attorney General to issue subpoenas in ongoing legitimate law enforcement investigations to include the following when relating to suspected public benefit fraud: wage and employment records; insurance records related to claim settlement; and specified financial records. Passed and referred to Health and Human Services. Bill Summary
• SF4414 (Westlin) requires law enforcement and local governments to disclose origin of chemical irritants used in certain buildings. Passed and sent to Senate floor.

 

Tuesday House Human Services: The following bills were all heard and laid over:

• HF4421 (Duran) modifies DCT county cost-share requirements for certain economically distressed counties; and modifies the opiate epidemic response fund appropriation. Defined as counties with more than 15% of their population living in poverty, and more than 70% of the counties’ total acreage is exempt from property taxes.
• HF4684 (Robbins) requires NEMT providers to equip their vehicles with a global positions system and rear-facing camera; compile information for each trip; and retain recordings for two years.
• HF1937 (Reyer) provides for the establishment and implementation of the Program for

All-Inclusive Care for the Elderly (PACE). Bill Summary

Tuesday House Judiciary: 

• HF4478 (Frederick) expands the protection of specified personnel data on employees of secure treatment programs or similar treatment programs, including the Minnesota Sex Offender Program. Passed and was sent to the House floor.
  
  

The following bills were both heard and laid over for possible inclusion in an omnibus bill:

• HF3901 (Johnson, W.) modifies the powers of the Office of the Foster Youth Ombudsperson by modifying data classifications, expanding individuals who may be investigated, allowing the ombudsperson to enter and inspect without notice any place where a foster youth is residing, specifying that the ombudsperson or staff may conduct private meetings or calls with foster youth, removing the requirement to inform certain individuals and entities of actions taken on a complaint, allowing the ombudsperson direct access to the social services information system, and expanding the ombudsperson’s access to data. Bill Summary

     Written Testimony
     A26 Amendment

• HF4428 (Nadeau) requires work requirements for Medicaid enrollees who are adults without children. Bill Summary

     A1 Amendment
     Written Testimony

Bill Introductions of Interest:

• SF5070 (Nelson) Nonemergency medical transportation providers requirement to operate vehicles equipped with a global position system and rear-facing camera
• SF5094 (Seeberger) Commissioner's duties modification related to allocating federal SNAP fiscal disallowances or sanctions
• SF5098 (Rarick) Public disclosure of information requirement related to child fatalities and near fatalities
• SF5099 (Koran) Fraud risk scoring and fraud risk score benchmarks requirement for grants to political subdivisions
• SF5109 (Boldon) Health impact assessments requirement to be conducted in certain circumstances to assess the impact of proposed projects on human health
• SF5110 (Boldon) Direct Care and Treatment new secure psychiatric residential treatment facility bond issue and appropriation
• SF5126 (Mann) Child care licensing and reporting requirements provisions modifications
• SF5151 (Clark) Homeless families, those at risk of homelessness, or highly mobile families assistance appropriation modification
• SF5170 (Maye Quade) Dakota County lead exposure study grant appropriation
• HF4965 (Smith) Commissioner of health and commissioner of agriculture required to develop a proposal for the regulation of itinerant food sales in the state, report required, and money appropriated.
• HF4967 (Liebling) Policy for theft of public funds, school safety, and emergency vehicles provided; crimes of first-degree murder and impersonating a peace officer modified; new crimes created; firearms policy provided; criminal penalties provided; and money appropriated.
• HF4968 (Bierman) Health policy changes made to all-payer claims data provisions, newborn screening program, health professional loan forgiveness program, rural residency training program, and international graduates assistance program; and money appropriated.
• HF4969 (Bierman) Human services provisions on aging and health care, behavioral health, housing, licensing and program integrity, mental health licensing, background studies, and forecasted program appropriations adjustments modified; and money appropriated.
• HF5010 (Tabke) Pilot program established for delegation of authority for licensing and inspection of food, beverage, and lodging establishments; Shakopee delegation authorized; statewide expansion provided; and reports required.
• HF5013 (Howard) Minnesota Housing Finance Agency supplemental budget adjustments made, and money appropriated.
• HF5014 (Howard) Distribution of local affordable housing aid modified.

Legislative work now shifts the Tax, Finance, and Ways and Means Committees. Both bodies have a number of bills to process on their respective floors this week.

Combined legislative schedule

 

Monday, April 20

House Ways and Means

Co-Chair Torkelson holds the gavel

• SF856 (Norris) Office of the Inspector General created, advisory committee created, conforming and technical changes made, interagency agreements provided, reports required, and money appropriated.
• HF3682 (Nash) Grantee fraud risk rating system and corresponding grants management required

1:00 PM
House Floor Session
Watch HTV 1
CALENDAR FOR THE DAY.

• HF2358 (Van Binsbergen) Enhanced criminal penalty provided for violations of coercion crime.
• HF3453 (Hanson) Legal age to possess kratom established as 21 years of age or older.
• HF3496 (Harder) Supervision abatement status policy modified.
• HF3593 (Jacob) Zumbrota; portion of marked Trunk Highway 58 designated as "Officer/Firefighter Gary L Schroeder, Jr Memorial Highway".
• HF3621 (Klevorn) Fraud; payments to program participants withheld under certain circumstances.
• HF3629 (Bahner) Provisions for grants management changed.
• HF3676 (Nash) Safe at Home program; protections, remedies, and various provisions provided and modified; and criminal penalties established.
• HF3762 (Witte) Chiefs of police and sheriffs authorized to open certain expunged records to determine eligibility to purchase, receive, or carry a firearm.
• HF3768 (Curran) Department of Corrections licensed juvenile and adult community-based residential correctional facilities responsibilities clarified.
• HF3769 (Curran) Multiple levels of substance abuse care provided by the commissioner of corrections clarified in law, access to mental health unit beds for incarcerated persons expanded, and mandatory tuberculosis screening in correctional facilities clarified.
• HF3782 (Moller) Disclosure of chemical irritants used in certain buildings required, and commissioner of public safety required to develop a standard form.
• HF3825 (Repinski) Judge required to inquire whether victim has been notified of plea and sentencing hearings, victim protected from identification in prosecutor's petition for sentence adjustment, victim notification of defendant eligibility for automatic expungement expanded, and other crime victim provisions 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.
• HF3827 (Duran) Grants from Bureau of Criminal Apprehension to local law enforcement clarified as reimbursements, law related to recording of crimes updated, process for determining how certain criminal records are ineligible for sealing established, and court required to provide order for protection for access by law enforcement.
• HF4133 (Moller) Certain exclusions in homeowner's insurance policies prohibited when damage is done by a peace officer.
• HF4425 (Myers) Statute of limitations for crimes involving medical assistance fraud or other theft of money belonging to the government increased.
• HF4467 (Bierman) Provider disenrollment, premium payment requirements, and physician-directed clinic staff services coverage modified; enrollment for county-administered rural medical assistance program modified; language recodified; and report required.
• SF3832 (Nelson) Eligibility for the Dairy Assistance, Investment, Relief Initiative (DAIRI) program modified.

 

Tuesday, April 21

Senate Finance

• SF203 (Port) Omnibus Housing
  Following presentation of SF203 and consideration of amendments, a motion will be made to pass it to the floor as the Housing Omnibus Bill

SF203 Summary

SF203 Spreadsheet

SF203 A20

SF203-ISAIAH-Support-Letter

SF203-SF2691-MHRC-Overview

SF203-MN-Reformer-Manufactured-Home-Resident-Article

SF203-Legal-Aid-Support-Letter

SF203-Housing-Justice-Center-Support-Letter

SF203-Fe-Y-Justicia-Support-Letter

SF203-Gina-Washburn-Support-Letter

 

House Capital Investment

• HF4896 (Hicks) New secure psychiatric residential treatment facility operated by Direct Care and Treatment funding provided, bonds issued, and money appropriated.

 

Wednesday, April 23

11:00 AM—Senate Floor Session

Special Orders:

• SF4807 (Putnam) Omnibus Veterans policy and appropriations (pending committee passage)
• SF3295 (Wiklund) Omnibus Health and Human Services policy bill
• SF4446 (Hawj) Soil and water conservation provisions modification
• SF4390 (Rasmusson) Supplemental health insurance product establishment to cover short-term home health and nursing care
• SF2971 (Dibble) Kayla's HOPE Act establishment (bridge-related suicides)

 

Thursday, April 24

Senate Finance

• SF4612 (Wiklund) Omnibus Health and Human Services

Following presentation of SF4612 and consideration of amendments, a motion will be made to pass it the floor as the HHS Finance Omnibus

 

11:00 AM—Senate Floor Session

Special Orders:

• HF3593 (Drazkowski) Portion of marked Trunk Highway 58 in Zumbrota designation as "Officer/ Firefighter Gary L. Schroeder, Jr. Memorial Highway" (pending House passage)
• HF3453 (Mann) Kratom possession legal age establishment as 21 years of age or older (pending House passage)
• SF4223 (Westlin) Omnibus Elections policy provisions
• SF476 (Hoffman) Omnibus Human Services policy bill

 

Friday. April 27

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SF4214 (Hawj), as amended by the A1 DE amendment, is the Senate environment supplemental budget bill. A bill summary and budget spreadsheet are linked here. Article 2 contains the battery product stewardship language, Section 3 of Article 1 extends two previous appropriations for community tree planting and for planting trees in metropolitan parks, and Section 5 of Article 1 funds a Minnesota Pollution Control Agency (MPCA) study on the unlawful shipment of infectious and pathological waste. The bill passed out of committee and was re-referred to the Senate Finance committee. 

Two amendments were adopted: the A7 amendment (Hawj) makes technical changes based on feedback from the Department of Natural Resources (DNR) and the A19 amendment (Hawj) makes further changes to the battery product stewardship language, including removing all large format batteries.

Senator Steve Drazkowski (R) had questions about how the study of infectious waste would work, wondering why language requiring audits wasn't included in the bill. Senator Nathan Wesenberg (R) expressed his frustration that the committee failed to advance a policy omnibus bill for the second year in a row. 

Letters of support for the solid waste provisions in the bill were submitted by counties and environmental groups: Minnesota Inter-County Association, Association of Minnesota Counties (AMC)/Solid Waste Administrators Association (SWAA), Minnesota Resource Recovery Association (MRRA), Partnership on Waste and Energy (PWE), Minnesota Zero Waste Coalition, and Eureka Recycling. 

 

On Monday, the Senate Agriculture, Veterans, Broadband and Rural Development committee did an initial walk through of its omnibus supplemental budget bill, SF5073 (Putnam). On Wednesday, the committee heard testimony and considered amendments to the A1 DE amendment. Most testimony, written and in committee, was focused on either the paraquat ban or encouraging the committee to adopt stronger protections for wild rice waters. There are no major provisions of interest for MICA in this year’s bill. The bill was passed out of committee and re-referred to the Senate Finance committee. 

 

Also on Monday, the Senate Energy, Utilities, Environment and Climate committee continued its markup of SF4504 (Frentz), itsjoint policy and finance omnibus bill. For awareness, the bill includes appropriations for projects in and/or requested by MICA member counties: a biomass energy generation plant in Shakopee (Scott County) to help process wood waste, an anaerobic digester energy system in Louisville Township (Scott County), and an anaerobic digester or biomass facility in Becker (Sherburne County). The bill, as amended, passed out of committee on a 6-5 vote and was re-referred to the Senate Finance committee.

 

The House Agriculture, Energy and Environment and Natural Resources committees were all unsuccessful in advancing supplemental budget bills out of committee last week. While we expect those chairs will have some say in negotiations on final bills with their Senate counterparts, there’s no strong House position on any issues of interest.

House Ways and Means

Wednesday, April 22

• HF3426 (Jordan) Funding provided from environment and natural resources trust fund, and prior appropriations extended.

 

Senate Finance

Tuesday, April 21

• SF4214 (Hawj) Natural resources reporting requirements modifications to improve efficiency (Environment Omnibus)
  Following presentation of SF4214, it will be laid over. The supplemental finance bill (HF2433) will be taken up, and an amendment will be offered to add relevant language of SF4214 to HF2433, followed by time for consideration of additional amendments. At the end of the discussion, HF2433 will be laid over.

 

Friday, April 24

• SF5073 (Putnam) Agricultural provisions modification
  Following presentation of SF5073, it will be laid over. The supplemental finance bill (HF2433) will be taken up, and an amendment will be offered to add relevant language of SF5073 to HF2433, followed by time for consideration of additional amendments. At the end of the discussion, HF2433 will be laid over.

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Capital investment committees hear bills on allowing technology infrastructure: On Tuesday, the House Capital Investment committee heard a couple of bills that would expand the technology modernization conversation into bonding. The first bill, HF4840 (Frederick) would authorize the commissioner of management and budget to enter into a lease-purchase agreement and sell and issue certificates of participation to fund the development, acquisition, installation, and implementation of a modernization plan or replacement of the state’s MAXIS system. It would cost $10 million a year for the next ten years. Rep. Roger Skraba spoke strongly in favor of the bill, noting the concern about recruitment and retention of employees working with these outdated systems. The committee also heard HF3352 (Hansen, R.) proposes an amendment to the Minnesota Constitution to be submitted to the voters at the 2026 general election. The amendment would authorize the state to issue bonds and incur public debt to pay for public information technology systems, licenses, and infrastructure. MICA submitted a joint letter with other county organizations in support of the bills.

 

Pensions commission hears bill allowing physical duty disabilities guaranteed through age 65, creating future unfunded mandate: On Tuesday the legislative commission on pensions heard SF4464 (Howe) which would require employers to continue to provide and pay for health insurance coverage for peace officers and firefighters who are receiving duty disability benefits under the MSRS State Patrol Plan or the PERA Police and Fire Plan. The language would require continued health insurance coverage until age 65, rather than for 60 months, for peace officers and firefighters receiving duty disability benefits unless the duty disability is based solely on a psychological condition. This undoes the law change that passed last year which only impacted employees prospectively (May 23, 2025 or later) providing the health insurance benefit for them and their family for sixty months rather than guaranteed through age 65. Sen. John Hoffman co-presented the bill with Sen. Howe.

MICA submitted a joint letter with other local government associations in opposition to the bill. Primary among those concerns is that once the $100 million one-time appropriation that the legislature made in 2023 runs out, this requirement will shift from a funded mandate to an unfunded mandate. Numerous employees spoke in favor of the change, as well as the Minnesota Police and Peace Officers Association and the Law Enforcement Labor Services organizations. A handout from PERA was also included showing the recent history of duty disability applications. The bill was laid over, with Pensions Chair Sen. Nick Frentz saying that the commission would discuss it further at a future meeting and that he was generally supportive of the bill.

Tuesday, April 21

Senate Capital Investment

• SF3879 (Dibble) Constitutional amendment proposal for public debt to be incurred for public information technology systems, licenses, and infrastructure
• SF4982 (Hemmingsen-Jaeger) Lease-purchase agreement and the sale and issuance of certificates of participation to fund improvements to or replacement of the state's MAXIS system authorization provision and appropriation
• SF4971 (Dibble) Emergency shelter facility grant program establishment
• SF3839 (Port) Housing infrastructure bond issue and appropriation

 

Legislative Commission on Pensions

1. SF1122 (Frentz)/ HF139 (O'Driscoll) PERA Police & Fire; MSRS State Patrol; increasing COLAs; reducing the waiting period for a PERA P&F Plan COLA.
• Individuals scheduled to give testimony at the meeting on the 14th and previously submitted written testimony will appear again on the agenda when it is re-posted on the morning of the 21st.
• Delete-everything amendment S1122-DE1
• S1122-DE1 Summary 

Laid over bills:
Because public testimony was taken when the laid over bills were previously heard, no additional in-person testimony will be taken.

1. HF4402 (Jordan) PERA General; special legislation authorizing purchase of past service credit for periods of omitted service.
2. SF4410 (Pappas)/ HF4069 (Feist) TRA and PERA; modifying eligibility definitions to exclude J-1 visa holders.
• Amendment S4410-1A - adopted by the Commission on March 24
• SF4410-HF4069 Summary
3. HF4162 (O'Driscoll) TRA; requiring the employer of a reemployed annuitant to make employer contributions.
• Amendment H4162-1A - adopted by Commission on March 17
• HF4162 Summary

 

Bill introductions of Interest:

• HF4988 (Novotny) 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 (this is the House companion to the Howe bill which was heard last week in Pensions and summarized above)
• HF4990 (Mekeland) Making modifications to data center laws
• HF5004 (Finke) Prohibiting penalties for certain uses of public land by homeless individuals

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The Legislature reached its third and final committee deadline last Friday, marking a major milestone in the 2026 session. With that deadline now met, both the House and Senate have completed their committee work and are shifting toward floor action and budget negotiations as the session enters its final stretch.

A key development is HF1082, authored by Co-Chair Kelly Moller, which serves as the Public Safety Supplemental Budget bill. The proposal includes targeted appropriations within the Department of Public Safety, including funding for non-fatal shooting clearance grants and a domestic violence task force, along with support for a first responder uniform identification initiative. The bill also provides more than $2 million across fiscal years 2026 and 2027 for Philando Castile training reimbursements through the Peace Officer Standards and Training Board. Additional provisions include funding impacts tied to policy changes within the Department of Corrections and a one-time $12 million transfer to the Victims of Crime Account. In total, the bill appropriates approximately $15.4 million across fiscal years 2026 and 2027, with smaller amounts in the out years.

 

Over in the Senate, SF4548, authored by Sen. Grant Hauschild, was heard in committee. The bill would prohibit local elected officials and as amended, local government entities from entering into nondisclosure agreements related to potential data center developments. During testimony, members raised questions about whether the scope should extend beyond elected officials to include staff, as well as whether the bill’s focus solely on data centers was too narrow. Sen. Hauschild noted the proposal is in response to what is emerging as a real issue in communities across the state, while expressing openness to further refinement. The bill was ultimately laid over for possible inclusion.

The committee also heard SF4244, authored by Sen. Warren Limmer, which serves as the Legislature’s technical corrections bill to address unintended or outdated statutory language following recent legislative changes. The hearing marked Sen. Limmer’s final bill before the committee, closing out a 38-year legislative career that began in the House and continued in the Senate after his election in 1995, where he served with distinction as both chair and ranking member and played a central role in shaping Minnesota’s public safety policy.

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