MICA Weekly Legislative Update #13

May 11, 2026

Headlines

Legislature enters final week as budget agreement remains elusive

The legislature enters its final week before adjournment with little progress being made at the leadership level. As expected the initial deadline for reaching targets of May 8 that Governor Walz set as a marker weeks ago came and went without event. Optimists may point out that when it comes to divided government during an election year, agreement on targets often come later than the Monday before adjournment. In 2022 leaders didn’t reach agreement on targets until the Wednesday before adjournment. In 2016 there wasn’t agreement on targets until the Friday before adjournment. So in that sense, there is still plenty of time. When the legislature decides bills will move, they do.

Pessimists would justifiably point out that in 2016 or 2022 those targets were released to House and Senate chairs that had already begun negotiations in conference committees. This year very few bills have reached the conference committee stage, just Commerce, Public Safety Policy, Housing, and a Capitol Safety and Security bill. Other bills still have time to move through a normal process, with the ability to amend bills that are already on the floor and have gone through committee. But that is a far trickier process, existing language can’t just be pulled from a bill that’s already passed one chamber or the other and those bills are subject to amendments, unlike conference committee reports. That’s before mentioning that any type of late agreement will be more difficult to navigate with a tied House. And those agreements that came later in 2016 and 2022 that had the bonus of being negotiated in conference committees? It’s worth noting that those deals largely fell apart, with few bills getting through and getting the Governor’s signature.

That said, progress continues on individual bills. Both chambers continue to move single subject bills. The Governor has signed more bills into law in 2026 than he did during the 2025 session. But the signed bills are typically narrow in scope. More bills are on the way, with agreement between the three caucuses and the Governor on things like the Office of the Inspector General. The Pensions bill received an individual target from the leaders and is currently moving through the process. The Public Safety Policy Conference Committee adopted an agreement. Negotiations continue at the highest leadership level but little is trickling out of those negotiations.

When it comes to county priorities, MICA continues to have positive discussions at the chairs level. Three of our top priorities are included in the Senate Health and Human Services bill, SF4612, but they all cost money and it’s difficult to gauge how viable each of them is individually at this moment when it’s unclear how much that committee has to spend. Each step of the way every legislative leader has said that IT modernization for counties is a priority. Optimism about a bonding bill was higher this past week than it had been in some time, but the fate of the bonding bill is never secure until the final hours of session (if then). Bonding chairs held a press conference this past week and answered questions about the bonding bill, with Senate Capital Investment Chair Sandy Pappas saying she was a “nervous nelly” about the bonding bill.

 

Omnibus bill tracking

Figuring out exactly what bills match up where and what is traveling and what isn’t, is more challenging than typical this year. MICA is providing an omnibus bill tracker to help, that will be periodically updated on our website. But with such an abnormal session and process, the caveats to this bill tracker are bigger than ever. Language could be moved from one bill to another. An old conference committee left open from 2025 could be re-opened with brand new language in consideration. A supplemental omnibus bill could be added as a last minute amendment to a single subject stand alone bill. That said, the tracker should be a useful tool over the next week to figure out where we are in the process. As it shows, very few bills have advanced to conference committee so far.

News and Notes

Legislative timeline:

  • May 17: Midnight deadline for the legislature to pass bills that can be signed into law during regular legislative session
  • May 18: Constitutional deadline for adjournment, member retirement speeches

2nd Congressional District : On Saturday the DFL endorsed former State Senator Matt Little in the race to succeed Angie Craig for the 2nd Congressional district. Little’s DFL opponents, Sen. Matt Klein and Rep. Kaela Berg, both have said they will run in the primary. The winner will face Republican Sen. Eric Pratt in the general election. Both DFL and Republican party state endorsing conventions are being held at the end of this month.

Update Next Week: With the midnight deadline on Sunday for final passage of any bills, the MICA legislative update timing is going to be a little different next week. On Monday we will send out a headlines-only update without the issue specific updates. Then by the end of the day on Friday we will send out our end of session report that includes greater depth on what did and did not pass, along with the implications for counties.



 

Tax & Fiscal Policy - Last Week

House and Senate chairs meet to go over language as tax bill appears to stall: On Wednesday Senate Taxes committee members held a joint informational “discussion group” with six members of the House Tax committee. The discussion group was supposed to cover local sales taxes, tax increment financing, the minerals article, and various non-controversial no cost proposals. Even before the meeting began it was unclear what purpose it was supposed to serve, without the House having released a bill there is still no clear House position. Meanwhile, because bills that raise revenue must originate in the House, the Senate has still not passed their bill off the floor, it has only moved out of its Taxes committee.

Revenue Commissioner Paul Marquart convened the meeting and it quickly became apparent that no negotiation, and very little actual discussion, would occur during the meeting. Sen. Ann Rest (DFL-New Hope) said that rather than explain the Senate bill, she directed House members to read the language. House Tax Committee Co-Chair Rep. Greg Davids (R-Preston) did offer up that the House Republicans had put together positions on tax increment financing and local sales tax articles, but had not reached agreement on those positions with the House DFL. The House Republicans offer did include the local sales tax proposal from Sherburne County, which is also included in the Senate bill.

When asked whether the House was going to put a tax bill together, House Tax Committee Co-Chair Rep. Aisha Gomez (DFL-Minneapolis) said that they hadn’t received targets from leadership and were still waiting for that before the House could release a bill. The bulk of the meeting was spent with the Senate verbalizing a list of the various individual local sales tax that are included in their bill. Rep. Gomez emphasized her position that any local sales tax proposal that is considered should follow the requirements in 297a.99 which governs local sales tax, such as a one-year gap between extensions and only allowing specifically named capital projects, trails, and parks. In response Sen. Rest said that “we’re not explaining our bill, we passed it.”

Rep. Davids offered closing remarks saying that the legislature should advance as large a federal conformity package as possible, noting that the Senate only conformed to a few limited items. Commissioner Marquart closed the meeting by comparing it to Alan Shepard’s initial space flight that did not orbit the earth but was an important first step. While a future meeting was discussed, nothing has been scheduled and it’s difficult to imagine what purpose another meeting would serve without some type of leadership agreement or further movement from the House DFL and Republican co-chairs in coming to some sort of combined position.

Senate omnibus tax bill language
Senate omnibus tax bill summary

Senate omnibus tax bill spreadsheet

 

House holds another informational hearing on Hennepin County local sales tax proposal: On Tuesday the House Taxes committee held its third hearing on the proposal from Hennepin County to increase their local sales tax. Rep. Esther Agbaje (DFL-Minneapolis) offered a draft amendment that reflected a 0.75% tax rate, rather than the 1% rate that had been heard in March. The amendment did not include any direct appropriation for North Memorial, which was announced to merge with Sanford Health later in the week. The amendment also creates a statewide hospital stabilization fund and creates a task force to examine governance questions. The draft amendment was not considered for a vote.

Some DFL members raised concerns about the local sales tax, saying it was too big a burden on Hennepin County and the state should be paying instead of the county. Hennepin County has said that a conservative estimate of the amount of their local sales tax paid by those from outside the county would be about 22%-24%. Rep. Greg Davids said that it was still unclear exactly how much Hennepin County needs but said that he supported an ongoing solution that would require a referendum.

Rep. Aisha Gomez closed the meeting by saying “This might be the last time we’re time coming together…unless something happens and we’re back in here doing something. Sorry, that was very cryptic…as my co-chair likes to say, the situation is fluid.” And that’s still probably the best summation of where the tax bill stands at this moment in time, even six days closer to adjournment.

Tax & Fiscal Policy - The Week Ahead

No working group meetings have been posted. With tax bills that raise revenue being required to originate in the House it’s unlikely that we see the Senate move its bill off the floor. 


 

Transportation - Last Week

Wait and See

There was no movement on SF3988, the Senate Omnibus Transportation Bill, which continues to sit in Senate Finance. In the House, no transportation bills MICA is tracking advanced last week either. One of the Transportation committee chairs advised that we “keep expectations low,” as we go into the final week of the legislative session.

MICA will continue to monitor Senate and House floor sessions in case any relevant bills or amendments are brought forward.

 

Bill Introductions of Interest:

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


 

Health & Human Services

Another shakeup at DHS: The day before her scheduled confirmation, Commissioner Shireen Gandhi stepped down as the agency lead. John Connolly, who has been serving as Deputy Commissioner and is the State Medicaid Director, was named as her successor.

Health & Human Services - Senate Omnibus Health Professional Scope and Licensing - includes Use of Social Work Title - SF3298 (Wiklund)

SF3298 was heard on the Senate floor on Tuesday, May 5. The proposal combines 11 bills that addresses licensing for various health-related practices, including: (1) acupuncture and herbal medicine,  (2) athletic trainer, (3) massage therapy and Asian bodywork therapy, (4) mortuary science, (5) music therapy, (6) physician assistant, (7) social work, (8) dentistry, (9) marriage and family therapy (10) pharmacy, and (11) physical therapy. Bill Summary The bill passed on a vote of 44-21.

Article 7: Social Work Practice: Amends provisions related to professional title use applicable to county social workers. Current law provides that the licensure of a county agency social worker is “voluntary” and, therefore, such workers are not required to be licensed as social workers. SF3298 provides that individuals hired by a county after July 1, 2027, and providing social work services cannot use a title with the words “social work” or “social worker” unless the individual is licensed as a social worker or holds a baccalaureate degree or graduate degree in social work. Current county employees are grandfathered in.

Amendments:

  • A14 (Kupec) Advanced Practice Nurses; adopted
  • A13 (Bahr) massage therapy; failed
  • A12 (Maye-Quade) misrepresentation as a psychologist; adopted

Health & Human Services - Senate "Mega" Supplemental Budget Bill - SF4059 (Marty)

SF4059(Marty) contains language relating to MA fraud, as well as provisions related to education, higher education, environment and natural resources (including battery stewardship program), energy, jobs and economic development, labor, state government, and clemency. On Tuesday, the bill passed on a vote of 35-31. Bill Summary

Article 17: Medicaid Fraud; expands the authority of the Attorney General to issue subpoenas in ongoing legitimate law enforcement investigations to include wage and employment records, insurance records related to claim settlement, and specified financial records when related to suspected public benefit fraud.

Spreadsheet

  • Line 147: Attorney General; Expand MA Fraud Division Staffing: $1,231M (FY25-26); $2,462M (FY28-29)


As a reminder,
Speaker Lisa Demuth earlier indicated that the House will not be putting together a counterpart “mega” appropriations bill. It is unclear at this time how a conference committee will proceed.

Health & Human Services - House Omnibus Human Services Finance - HF4338 (Schomacker/Noor)

On Tuesday, May 5, the Ways and Means Committee approved HF4338  on a voice vote and sent the bill to the House floor.

 

HF4338Bill Summary

HF4338 A21 Amendment; Medicaid conformity; adopted

Items of county interest include:

  • Modernizing program and payment integrity safeguards; enhancing program integrity in MA program.
  • Federal compliance:
    • access to services for incarcerated individuals
    • Medicaid access rule
    • Household members background study FBI compliance.
  • 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 within the provider community.
  • DHS directive to assist counties in conducting long-term care assessments (MnCHOICES) using certified assessors.


HF4338 Spreadsheet

 

Department of Human Services:

 

  • Line 145: Transforming the Human Services System; $5,219M (FY26-27); $14,149M (FY28-29)
  • Line 211: Modernizing program and payment integrity safeguards; ($6,230M) (FY26-27); $27,686M (FY28-29)
  • Line 224: Enhancing program integrity in MA program; $24,330M (FY26-27); $46,632M (FY28-29)
  • Line 248: Billing and Payment Oversight for Disability, Older Adults, and Behavioral Health; ($9,896) (FY26-27); ($279,195M) (FY28-29)
  • Line 343: Uniform Service Standards; $1,561M (FY26-27); $1,458M (FY28-29)
  • Line 356: Earlier Effective Date for Improving Supportive Housing Options; ($9,163M) (FY26-27); ($1,784M) (FY28-29)
  • Line 385: Federal compliance: Access to Services for Incarcerated Individuals; $178,000 (FY26-27); $3,023M (FY28-29)
  • Line 406: Federal compliance: Medicaid Access Rule; $1,400M (FY26-27); $2,268M (FY28-29)
  • Line 425: Federal compliance: Household Members Background Study FBI Compliance; $49,000 (FY26-27)
  • Line 530: Individualized Home Supports (IHS) with Training; $284,000 (FY26-27); $7,684M (FY28-29)
  • Line 536: Require Surety Bond for MA Providers; $223,000 (FY26-27); $532,000 (FY28-29)
  • Line 541: Compliance Training for High-Risk Providers; $1,295M (FY26-27); $2,888M (FY28-29)
  • Line 555: Case Management Working Group; $374,000 (FY26-27); $374,000 (FY28-29)
  • Line 561: MA Provider Enrollment Requirements Modified; $1,612M (FY26-27); $3,072M (FY28-29)
  • Line 569: Continuity of Care; $4,574M (FY26-27); $11,386M (FY28-29)

 

Department of Children, Youth, and Families:

 

  • Line 584: Human Services Redesign (Transforming the Human Services System); $2,247M (FY26-27); $1,296M (FY28-29)

 

 

Health & Human Services - Senate Omnibus Human Services Finance - SF4476 (Hoffman)

On Wednesday, May 6, the Senate debated SF4476. The bill passed on a vote of 35-32. SF4476
Bill Summary

SF4476 Spreadsheet

The bill includes several items resulting in LTSS savings:

  • Line 155: Modify Nursing Facility Level of Care Eligibility for CADI/BI: ($2,612M) (FY26-27); ($42,649M) (FY28-29)
  • Line 205: Reduce the LTSS Assumed Spending Reductions: $122,643M (FY28-29). Note that this “buyback” represents a 31% decrease in potential county costs; the 2025 legislation required LTSS savings of $178 million.
  • Line 221: Disability Waiver Annual Vehicle and Home Limit Modifications: unknown savings at this time
  • Line 443: Reduce Human Services Grants: ($73,746M) (FY26-27); ($5,762M) (FY28-29)
    • Line 450: LTSS Loan Program Balance: ($70,854) (FY26)
    • Line 452: LTSS Loan Program Appropriation: ($822,000) (FY26)

 

 A comprehensive analysis of SF4486 is contained in MICA’s May 4 Legislative Update.

Health & Human Services - Senate Omnibus Cannabis - SF4401 (Dibble)

On Wednesday, May 6, Senate Finance reviewed SF4401, which establishes the Office of Cannabis Management policy provisions related to licensing, endorsements, and medical cannabis and adult-use streamlining.

SF4401 1st Engrossment Bill Summary
SF4401 Spreadsheet
SF4401 Fiscal Note

Council for Minnesotans of African Heritage Support Letter

Amendments:

  • A3; technical; adopted
  • A6; $13,000 cost that Department will absorb; adopted
  • A9; requires Office of Cannabis Management to regularly analyze the availability of federal​ programs to provide funds to support state efforts to establish a psilocybin therapeutic use​ program. DOES NOT CREATE THE PROGRAM; adopted 5-4
  • A11; defines “ratio hemp-infused cannabis product.” Requires product label to contain the following statement: “This product contains nonintoxicating​ cannabinoids derived from hemp.” Adopted
  • A10; Macrobusinesses may choose to engage in outdoor or indoor cultivation, but they​ may not do both. Addresses differences between medical and recreational cannabis. Adopted 6-5.

Arguing that policy language from the majority had been adopted, while minority policy amendments were not, Sen. Pratt moved that the bill be referred back to Senate Commerce. Failed 5-5.

The motion to approve the bill as amended then passed on a vote of 6-5.

Health & Human Services - House Omnibus Health Finance - SF4621 (Bierman)

On Thursday, May 7, the House took up SF4612 (Bierman), which addresses requirements of federal compliance. It also includes language relating to the insulin safety net program. It passed on a vote of 69-63. The Senate previously passed the bill on April 29; a conference committee will be appointed to work out the differences.

The bill codifies federal changes in state law that 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

Bill Summary
Spreadsheet

Session Daily

 

Department of Human Services:

  • Line 12: Human services savings; ($1,520M) (FY26-27); ($96,845M) (FY28-29)
  • Line 17: Medical Assistance by Eligibility Category:
    • Line 19: Families and Children; ($1,096M) (FY26-27); ($6,851M); (FY28-29)
    • Line 20: Elderly and Disabled; $3,633M (FY26-27); $68,174M (FY28-29)
    • Line 23: Adults Without Children; ($18,460M) (FY26-27); ($198,097M) (FY28-29)
  • Line 35: Federal Compliance/MA Eligibility Changes/HR1: ($3,776M) FY26-27; ($99,365M) (FY28-29)
  • Line 56: Federal Compliance/HR1 Financing-Related Response: $1,334M (FY26-27); $1,669M (FY28-29)

 

Department of Health:

  • Line 67: Minnesota All Payer Claims Data Base Fee Schedule; $55,000 (FY26-27)
  • Line 74: HMO Fees Appropriation; $880,000 (FY26-27); $880,000 (FY28-29)

 

Amendments:

  • A7 (Backer) CARMA enrollment; adopted on a voice vote
  • A4-2 (Smith) adds psilocybin therapeutic use program; adopted 114-15
  • A17 (Davis) would have deleted Article 1 (Health-related licensing Boards, Article 2 (MDH article), and Article 7 (MDH Appropriations); failed 66-67
  • A14 (Mahamoud) would have deleted Article 3, section 6 (reduction of excess assets); failed 66-67
  • A11 (XP Lee) would have deleted Article 3, sections 14-17 (cost-sharing and co-payments); failed 67-67
  • A10 (Liebling) community engagement requirements (work requirements); failed 67-67
  • A13 (Liebling) work or community engagement requirements; add limitations and suspension of implementation and enforcement; failed
  • A15 (Liebling) community engagement requirements; withdrawn
  • A9 (Nadeau) data sharing for program integrity; failed 67-67
  • A18 (Kotyza-Witthuhn) would have added child care modernization/economic supports article; ruled not germane

Health & Human Services - Senate Omnibus Program Integrity - HF3379 (Hoffman/Wiklund)

On Friday, May 8, the Senate Finance Committee reviewed HF3379, which was just introduced this week. Many of the provisions, but not all, were heard earlier in the HHS, Human Services, or Judiciary Committees.
HF3379 A4 Delete all Amendment; adopted
HF3379 Bill Index

 

Billing and Service Delivery Oversight:

  • Article 1, section 20: Requires commissioner to conduct prepayment review of all submitted

fee-for-service claims; provides 60-day notice prior to review; requires commissioner to phase-in implementation of prepayment review.

  • Article 1, section 21: Authorizes commissioner to conduct post-payment review identify potential improper payments and seek recovery.
  • Article 1, section 42: Governor’s budget bill (DHS; IG-61); requires managed care plans to conduct prepayment review of all claims and to publish program integrity metrics.
  • Article 5, section 7: Requires a license holder providing remote overnight supervision in a community residential setting to ensure that any third-party monitoring company the license holder contracts with maintains an appropriate staff ratio to ensure that the maximum permissible response time is met.
  • Article 5, section 20: Governor’s budget bill (DHS; AD-68); requires commissioner to grant providers limited access to a person support plan in the MnCHOICES system to document the providers’ understanding and agreement to deliver the services outlined in the support plan.
  • Article 5, section 28: Governor’s budget bill (DHS; AD-59); clarifies that HCBS providers may not use MA revenue to pay for room and board, including associated housing costs, unless those costs are explicitly included in the service description under the applicable waiver plan.
  • Article 5, sections 32; 43: Governor’s budget bill (DHS; AD-68); establish direct care staffing documentation requirements for residential services provided under the disability waivers and the elderly waiver; provides for the submission of the data annually to the commissioner; provides for the commissioner to use the submitted data to make recommendations to lead agencies regarding authorized reimbursement rates; provides for administrative sanctions for failure to comply with the data requirements.

 

Children, Youth and Families:

  • Article 7, section 1: Requires certain documentation from any provider, vendor, or individual seeking to enroll, become licensed, receive grant money, or register in any program administered by DCYF.
  • Article 7, section 2: Governor’s budget bill (DCYF); requires all providers who receive child care assistance payments to complete compliance training.

 

Electronic Visit Verification:

  • Article 5, sections 9-10; 12-19; 46; 47, paragraph (a): Modify the requirements of electronic visit verification (EVV), expands the services subject to EVV, authorizes the commissioner to exempt service components or service settings otherwise subject to EVV, clarifies the options available to providers to comply with EVV, specifies data element requirement, clarifies provider responsibilities, and specifies responsibilities of third-party providers of EVV systems.

 

Human Services Administrative Reform:

  • Article 6, section 1: Requires the commissioner of management and budget (MMB) to include the forecasted costs of each covered service provided under MA in the forecast of state revenues and expenditures. Requires MMB, in consultation with DHS, to submit a report to the legislature that includes certain information.
  • Article 6, section 2: Governor’s budget bill (DHS; OP-50); clarifies that DHS may administer specific duties related to determining MA eligibility of behalf of county agency administrations.
  • Article 6, section 3: Governor’s budget bill (DHS; OP-50); directs DHS  to assess transferring the administration of MA eligibility functions from the counties to the commissioner.
  • Article 6, section 4: Governor’s budget bill (DHS/DCYF); directs DHS and DCYF to conduct a study to assess and recommend improvements to the roles and responsibilities of the departments, counties, and Minnesota’s Tribal Nations.
  • Article 6, section 5: Directs DHS to contract with an external vendor to continue and complete the project initiated under Executive Order 25-10, section 1, paragraph (g) (Fraud Prevention Overhaul) and requires the commissioner to provide reports.

 

Licensing and Background Studies:

  • Article 3, sections 1-7: Governor’s budget bill (DHS; IG-61); modifies who must undergo background studies and adds provider types to prohibition on providing services pending background study results.
  • Article 5, sections 1; 34: Governor’s budget bill (DHS; AD-59); imposes a new 245D licensing moratorium for both initial licenses to provide ICS service as well as license changes to add ICS services to an existing license; provides for limited exceptions to the ICS moratorium; imposes a moratorium on approving new ICS service settings; provides for limited exceptions to the setting approval moratorium.

 

Medical Assistance Provider Enrollment:

  • Article 1, sections 2; 4; 8-9; 12-19; 39-41; 45: These sections include the recodification of the provider enrollment requirements as well as the following policy changes:
    • authorizing the commissioner to perform pre-enrollment risk assessment
    • Authorizing the commissioner to terminate MA enrollment if an enrolled provider does not bill medical assistance during any 12-month period
    • Requiring mandatory compliance training for providers of high-risk services
  • Article 1, section 10: Requires certain documentation from any provider, vendor, or individual seeking to enroll, become licensed, receive grant money, or register in any program administered by DHS.
  • Article 1, section 22: Governor’s policy bill (DHS; IG-35); authorizes DHS access to records and documents of enrolled MA providers to verify the accuracy of any information submitted by the vendor to the commissioner, to determine compliance with service delivery and billing requirements, or to determine compliance with any other applicable laws or rules.
  • Article 5, section 6: Requires commissioner to establish an HCBS early and often licensor and compliance teams to assist HCBS license applicants understand licensing requirements and provide newly licensed providers with technical assistance to comply with licensing requirements.
  • Article 5, section 8: Requires the commissioner to establish an HCBS provider support and technical assistance team to provide technical assistance and education to all HCBS providers and to act as a liaison between providers and the various administrations and offices DHS responsible for regulating and overseeing the licensing, service provisions, and billing for HCBS services.

 

Medical Assistance Sanctions:

  • Article 1, sections 1; 3; 11; 23-30; 33-37: These sections include the recodification of the MA sanctions statutory section and also include the following policy changes:
    • defining “fraud” in chapter 256B and includes a reference to illegal remunerations
    • clarifying that a payment withhold is temporary
    • requiring additional information in the notice provided by the commissioner when withholding payments
    • provides that “abuse” does not include billing errors that result in unintended overcharges
    • provides that the commissioner may obtain monetary recovery for an overpayment as defined by federal law
    • provides that the commissioner may seek the recovery for investigative costs from an individual or entity that violates the False Claims Act
  • Article 1, section 31: Allows an individual or entity that receives notice of a payment withhold to request an appeal. Requires DHS to refer the appeal request to the Office of Administrative Hearings and provides that the burden of proof is limited to whether the commissioner can establish there is a credible allegation of fraud. Requires the commissioner to provide notice to the individual or entity when the appeal process is complete.

 

Miscellaneous:

  • Article 8, section 1: Removes “substantial” from the requirement that DHS cannot implement any substantial changes to a grant funding formula without providing a report to the legislature.
  • Article 8, section 2: Directs DHS to provide statutory language to the legislature by December 1, 2026, that codifies the DHS Office of the Inspector General.

 

Non-Medical Assistance Human Services Sanctions:

  • Article 2, section 1: Governor’s policy bill (DHS; IG-33); for purposes of section 245.095, defines “convicted” and “fraud,” moves the definition of “credible allegation of fraud” into the definitions subdivision, and clarifies the definition of “excluded.”
  • Article 2, section 2: Governor’s policy bill (DHS; IG-33); expands the authority of DHS in section 245.095 to stop payments when a license is suspended or revoked, when there is a criminal conviction of fraud, and when there is a background study disqualification.
  • Article 2, sections 7-8: Governor’s policy bill (DHS; IG-24); allows DHS to suspend a license if there is a related, ongoing investigation or judicial proceeding.

 

Uniform Service Standards:

  • Article 4, sections 1-48: Governor’s budget bill (DHS; IG-52); transition services to be licensed by DHS that are currently certified and make technical and conforming changes.

 

Amendments:

  • A8 (Draheim) removes pre-award risk assessments relating to nursing homes; adopted
  • A7 (Mohamed) deletes requirement for individual provider identifier; systems changes related to electronic visit verification and MA claims validation; adopted
  • A9 (Mohamed) technical; adopted
  • A5 (Pratt) does not prohibit a utilization review organization, health plan​ company, or claims administrator from conducting or requiring prior authorization to​ authorize services by a provider type designated as high-risk. Adopted – but Sen. Wiklund indicates that this may need further work.

 

Written Testimony:

HF3379 Spreadsheet

 

Department of Human Services:

  • Line 62: Transforming the Human Services System; $10,742M (FY26-27); $40,159M (FY28-29)
  • Line 102: Market and Receipt-Based Rate Reform for Disability and Older Adults Services; ($504,000) (FY26-27); ($4,536M) (FY28-29)
  • Line 111: Enhancing program integrity in MA program; $24,330M (FY26-27); $46,632M (FY28-29)
  • Line 135: Modernizing program and payment integrity safeguards; ($165,196M) (FY26-27); $2,317M (FY28-29)
  • Line 157: Uniform Service Standards; $1,561M (FY26-27); $1,458M (FY28-29)
  • Line 170: Billing and Payment Oversight for Disability, Older Adults, and Behavioral Health; $2,566M (FY26-27); ($4,703M) (FY28-29)
  • Line 254: Enhancing Program Integrity and Quality Nursing Facility Rates; ($6,656M) (FY26-27); ($33,688M) (FY28-29)
  • Line 265: Enhancing Program Integrity in Integrated Community Supports Services; $2,807M (FY26-27); $8,136M (FY28-29)
  • Line 278: Repeal and Redesign Housing Stabilization Services (HSS); Post Public Comments for Waiver and State Plan Amendments; Prohibit Executive Termination of MA Benefits; $199,000 (FY26-27); $466,00 (FY28-29)
  • Line 285: Pre-Award Risk Assessment Activities; $4,304M (FY26-27); $9,828M (FY28-29)
  • Line 296: Required Compliance Training for High-Risk Providers; $10,026M (FY26-27); $21,411M (FY28-29)

 

Department of Children, Youth, and Families:

  • Line 323: Childcare Assistance Program (CCAP) Program Integrity; $3,324M (FY26-27); $5,662M (FY28-29)
  • Line 340: Human Services Redesign (Transforming the Human Services System); $2,246M (FY26-27); $1,296M (FY28-29)
  • Line 346: Pre-Award Risk Assessment Activities; $1,352M (FY26-27); $2,808M (FY28-29)

 

The bill passed, as amended, on a voice vote and was sent to the Senate floor. However, it was noted that there are provisions in the bill that require review by the Judiciary Committee, which is expected to occur on Monday.

Health & Human Services - Housing Conference Committee - HF1141 (Howard / Igo / Port)

On Monday, May 4, on a vote of 99-34 the House passed HF1141, which makes supplemental appropriations to the Minnesota Housing Finance Agency (MHFA), funded both with MHFA earnings from investments of state appropriations and with the early return and cancellation of payments made to a claims administrator to settle legal claims against the state and its counties regarding county disposition of tax-forfeited properties.
Session Daily

House HF1141 Second Engrossment

House HF1141 Bill Summary

The Senate took up its bill on Thursday, May 7, and passed it on a vote of 35-31
Senate HF1141 First-Unofficial Engrossment
Senate Bill Summary HF1141 First Unofficial Engrossment

Senate Spreadsheet

Housing Infrastructure Bonds (HIB) Debt Service Spreadsheet

Conference Committee: The bill was sent back to the House on Thursday, which refused to concur with the Senate language. A conference committee was appointed, which included Representatives Igo, Nash, Howard, and Kozlowski, and Senators Port, Boldon, and Lucero. They met on Friday and came to an agreement the same day.

Housing Omnibus Side-By-Side
Housing Omnibus Comparison Spreadsheet

Housing Omnibus Side-By-Side Spreadsheet

Session Daily

House provisions:

  • $160 million for additional housing and homelessness prevention, including authority to issue $100 million in housing infrastructure bonds, $40 million for the Family Homeless Prevention Assistance Program, and $20 million for the Greater Minnesota Workforce Housing program.
    • The result would be more than 2,000 new housing units of all kinds in all areas with funds coming from interest earned on legislative appropriations by Minnesota Housing and unspent money set aside for the Tyler Settlement.
  • The House bill also includes $150,000 each for a senior housing homeshare pilot program and homeowners’ education.

 

Senate provisions:

  • Creates a “Manufactured Homes Bill of Rights.”
  • Directs Minnesota Housing to apply $5 million in Housing Infrastructure Bond proceeds to improvements in manufactured home parks.
  • Creates a task force to examine how state, county and local taxes and fees affect housing costs.

 

Written Testimony:

 

We anticipate both bodies taking up the conference committee report sometime this week.

Health & Human Services - Fraud Prevention

Tuesday, May 5, House Ways and Means: HF2354 (Norris) makes changes related to MA fraud. Authorizes the Attorney General to issue subpoenas for certain wage, insurance, and financial information when there is an ongoing law enforcement investigation. Appropriates $1,230 million each year on an ongoing basis to the Office of the Attorney General. Passed on a voice vote and was sent to the House floor

HF2354 Bill Summary
HF2354 A9 Amendment; technical; adopted
Session Daily

Wednesday, May 6, House Ways and Means:HF3093 (Greenman) aims to stop people who have defrauded the state from getting additional money in the future from another agency. Would require anyone applying for a government grant to certify that they have not violated labor laws or defrauded another state program. Bill Summary The bill failed to advance; Rep. Greenman indicated she would find another path forward regarding this proposal.

Thursday, May 7, House Floor Session:

  • On a vote of 127-5, the House passedSF856 (Norris), which creates an independent state Office of Inspector General (OIG), the result of months of stakeholder meetings that included all four legislative caucuses. The Senate passed a version of the bill last year on a vote of 60-7. With the changes since last year, the Senate plans to take up the bill, championed by Sen. Heather Gustafson (DFL-Vadnais Heights), on Monday. The Governor has indicated he will sign the bill when it reaches his desk.

Bill Summary
Session Daily

  • HF3682 (Nash) would require the Department of Administration’s Office of Grants Management (OGM) to develop a grantee fraud risk rating system policy. The new 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. Effective: July 1, 2027. Passed 128-0.

Health & Human Services - Last Week

Wednesday, May 7, House Floor Session: HF4195 (Kotyza-Witthuhn) establishes grants to youth intervention programs under DCYF. Youth intervention programs are nonresidential community-based programs that provide advocacy, education, counseling, mentoring, and referral services to youth and their families who are experiencing personal, familial, school, legal, or chemical problems, with the goal of resolving the problems and preventing future issues. Passed 104-30

HF4195 Bill Summary
HF4195 Fiscal Note

Wednesday, May 7, Senate Floor Session: HF3769 (Westlin) multiple levels of substance abuse care provided by the commissioner of corrections; expanding access to mental health unit beds for incarcerated persons. Passed 57-9; the House previously passed the bill on April 20 on a vote of 129-5.

Bill Introductions of Interest:

  • SF5258 (Lieske) Health care access fund transfers prohibition

Health & Human Services - The Week Ahead

The Legislature is expected to be on their respective floors every day this week. They must complete their work by midnight on Sunday night. Leadership negotiations related to an overall deal remain behind closed doors.
Combined legislative schedule

Monday, May 11

9:00 AM
Senate Judiciary and Public Safety

  • SF4895 Westlin Guardian ad litem program volunteer participation clarification provision

This file will be used as a vehicle for the committee to hear and act on program integrity language within its jurisdiction. An amendment will be posted when available.


11:00 AM

Senate Floor Session

  • Returning from the House--motion to concur expected:
    • SF856 (Gustafson) Office of the Inspector General creation and appropriation

Special Orders:

  • SF3720 (McEwen) 2026 recommendations adoption of the Workers' Compensation Advisory Council
  • SF3699 (Latz) Omnibus Immigration Enforcement and Civil Remedies
  • HF3426 (Hawj Environment and Natural Resources Trust Fund
  • HF4252 (Fateh) Omnibus Higher Education policy bill

 

11:00 AM
House Floor Session

Watch HTV 1

Calendar for the Day:

  • SF476 (Noor) Human services; various provisions modified relating to Direct Care and Treatment, the Department of Health, aging and disability services, behavioral health, homelessness, housing, and maltreatment of vulnerable adults; housing stabilization supports provisions removed; rulemaking required; release of initial Optum reports required; Optum prohibited from disseminating private data; reports required; and money appropriated.
  • HF4546 (Noor) Department of Human Services and Department of Children, Youth, and Families forecasted program adjustments made.
  • HF1695 (Koznick) Metropolitan Council; special transportation service forecast adjustments made, and money appropriated

 

Tuesday, May 12

10:00 AM
House Fraud Prevention and State Agency Oversight Policy

  • Adoption of Committee Report

 

11:00 AM
House Floor Session

Watch HTV 1


Calendar for the Day:

  • HF1597 (Norris) Task Force on Establishing a Yellow Alert System established, and report required.
  • HF4017 (Johnson, W.) Unlawful shipment of infectious or pathological waste study required, and money appropriated.
  • HF4138 (Scott) Requirements for social media platforms related to accounts for minors established, and enforcement mechanisms for regulations on child social media accounts established.


 

Environment - Last Week

As we enter the final week of session, it continues to appear as though limited environment legislation will cross the finish line. Negotiations continue on the battery product stewardship bill, but its success ultimately depends on the ability to get House Republicans on board. There is also significant behind-the-scenes action happening on two bills to make FY2027 appropriations from the Environment and Natural Resources Trust Fund (ENRTF) and Outdoor Heritage Fund (OHF). The House passed the ENRTF bill, HF3426 (Jordan) on April 30, but the Senate has held off on taking action while they decide how to approach funding for the Friends of the Boundary Waters (which was removed from the House bill) and community grants language. Meanwhile, the OHF bill, SF4304 (Hawj) was sent to the Senate floor last week but still needs to be voted on by the chamber, and has stalled in the House. It’s unclear if lawmakers can reach agreement on any of these items before May 18.

SF4059 (Marty) is the new vehicle for the Senate’s supplemental appropriations bill and was heard on the Senate floor on Tuesday, May 5. Finance and policy topics contained in the bill include jobs and economic development, K-12 education, higher education, agriculture, environment, labor, state and local government, Medicaid fraud, and public safety. During debate on the environment portion of the bill, there were attempts to remove the battery product stewardship language as well as water down the Packaging Waste and Cost Reduction Act language passed in 2024, both of which ultimately failed. The bill passed 35-31, but as noted previously, it’s uncertain what the path forward looks like given the lack of a comparable supplemental finance bill in the House.

During his final comments on the bill, Sen. Eric Pratt (R-Prior Lake) said the bill was a disappointment and the process blatantly disregarded the state’s single-subject rule. He also criticized the new spending authorized by the bill, and called the battery product stewardship article a $1.3 million new tax on Minnesotans. Sen. John Marty (DFL-Roseville) argued against complaints the bill violates the single-subject rule, comparing it to the omnibus technical corrections bill that is almost always adopted by the Legislature at the end of session. 

 

Environment amendments considered:

  • A20 (Green): NOT ADOPTED on a 31-35 vote; Amends the Packaging Waste and Cost Reduction Act to add new exemptions, including durable packaging (used for long-term storage or protection for at least 5 years) and limiting covered paper products to only include printed paper products sold or supplied to a consumer for personal, noncommercial use. 
    • Sen. Foung Hawj (DFL-Saint Paul) raised a point of order that this amendment wasn’t germane and Sen. Marty agreed, noting the bill only contained environment budget items and this was a policy change. Senate President Bobby Joe Champion (DFL-Minneapolis) ruled the point of order was not well taken, allowing debate on the amendment to continue. 
    • Sen. Hawj asked members to oppose the amendment.  Sen. Torrey Westrom (R-Alexandria) and Sen. Nathan Wesenberg (R-Little Falls) spoke in favor. Sen. Jen McEwen (DFL-Duluth) argued that we shouldn’t allow additional exemptions to the program given that the intent of the bill is to have industry take responsibility for the waste streams they produce, and even durable packaging ends up in landfills eventually and creates end-of-life management expenses. Sen. Steve Green (R-Fosston) said it wasn’t fair that all producers should be required to participate regardless of how long their products are used for (one time use vs. multi-year). 
  • A21 (Green): NOT ADOPTED on a 31-35 vote; Deletes the battery product stewardship article from the bill.
    • Sen. Rob Kupec (DFL-Moorhead) argued against many of the points of concern raised by Sen. Green. Sen. Kupec highlighted that consumers are already facing increased costs associated with disposing of batteries in increased property taxes as counties pay to manage these products and damage caused by battery fires. Sen. Ann Johnson Stewart (DFL-Minnetonka) expressed her support for the battery language, noting the work Sen. Kupec has done to find agreement with industry and the benefits of increased battery recycling.
  • A26 (Howe): RULED NOT GERMANE; Makes changes to requirements for the wetland replacement program. 
  • A101 (Lang): RULED NOT GERMANE; Increases ATV trail weight limits. 
  • A25 (Koran): RULED NOT GERMANE; Requires the DNR to issue a new water-use permit from the Mt. Simon-Hinckley aquifer. 
  • A19 (Hauschild): ADOPTED; Provides a one-year extension of certain timber permits. 

 

The Senate Finance committee heard SF4304 (Hawj), the Outdoor Heritage Fund appropriations bill, on Wednesday, May 6. The bill passed out of committee as amended and was sent to the Senate floor.

Amendments offered:

  • A11 (Johnson): ADOPTED; Re-add the Roseau Lake rehabilitation project back into the bill, along with an additional flood mitigation project nearby, but delays funding to account for anticipated legal action.
  • A13 (Johnson): NOT ADOPTED; Provides term limits for members of the Outdoor Heritage Council.
  • A14 (Johnson): NOT ADOPTED; Makes changes to authority/selection of executive director of Outdoor Heritage Council.

 

Bill Introductions of Interest:

No relevant bills were introduced last week.


 

Pensions & General Government - Last Week

Omnibus pensions bill moves out of committee and to the House floor and Senate Finance Committee: On Tuesday the Pensions Commission heard and approved the omnibus pensions bill. Here are a few highlights of the bill.

Reduced waiting period for Police and Fire Plan
The bill provides direct state aid to the Police & Fire Plan to fund the cost of reducing the postretirement adjustment (COLA) delay. The cost is $8,000,000 starting annually on October 1, 2026. The aid expires on July 1, 2042. The waiting period for a retiree or benefit recipient to receive a full COLA is reduced from 24 months to 12 months. In addition, the waiting period for a partial COLA is reduced from 13 months to 1 month.

Correctional Plan COLA and Contribution Reductions
The correctional plan is currently at 105% of funding and is able to absorb contribution reductions from employers and employees while also increasing benefits without requiring any general funds. MICA is supportive of these changes.

  • Reduces the employer contribution from 10.25% to 9%
  • Reduces the employee contribution from 6.83% to 6%
  • Increases the cap on the cost of living adjustment from 2.5% to 3%

Establishes Separate Probation Officer and 911 Telecommunicator Plan(PERA General plan in parentheses for comparison purposes)

  • Employee Contribution Rate: 8.82% (PERA General-6.5%)
  • Employer Contribution Rate: 7.5% (PERA General-7.5% scheduled to decrease to 6.5% once plan reaches 98% funding, approximately 2031)
  • Cost of living adjustment: 1% floor, 1.75% cap (same as PERA general plan)
  • Normal retirement age: 60 (66 for PERA general plan)
  • Benefit formula multiplier: 1.9%  (1.7% for PERA general plan)

A new addition was also made to the bill on Tuesday evening, temporarily reducing the employee contribution rate from 8.82% for the probation officer and 911 telecommunicator plan to 8%. The reduction is paid for with $3 million in general funds from the state. Employee contributions would revert to 8.82% starting on September 1, 2028.

 

Work Group on Duty Disability and the Public Safety Officer’s Benefit Account

Previously the Pensions Commission heard language that would have separated out how physical duty disabilities are treated in comparison to psychological duty disabilities, guaranteeing the benefit through age 65 rather than capping it at 60 months under current law, as passed last year. The pensions commission instead decided to adopt an amendment turning that language into a workgroup. The work group is required to recommend legislation that would:

  • reform duty disability for members of the public employees police and fire plan; and
  • ensure that members of the police and fire plan who become duty disabled have access to affordable health insurance coverage until Medicare eligibility.

Legislation recommended by the work group must address 7 topics, including the impending shortfall in the public safety officer’s benefit account and reforming the process for approving duty disability applications, or report the reason for not including a topic in a report. The work group must report its recommendations, with proposed legislation, to the LCPR by March 1, 2027. MICA does have an appointee to the workgroup.

Reemployed Annuitants
The bill requires the employer of a reemployed annuitant to make employer contributions to the applicable pension plan. Employees in this scenario are already receiving a pension and would not be required to make contributions.

Bill Path
In pensions on May 5 the commission voted down an amendment from Sen. Jeff Howe (R-Rockville) which would have guaranteed those 55 or older the physical duty disability benefit for those that had served 20 or more years. Sen. Nick Frentz (DFL-North Mankato) noted that the commission did not have the funds to pay for the amendment and otherwise it would have to be borne by the employers, increasing property taxes. Sen. Frentz did note that while the bill overall does have a general fund cost the commission did have approval from leadership to advance the legislation and that the language met the internal target they had been given.

On Thursday the bill was heard by the State and Local Government committee in the Senate. Sen. Andrew Mathews (R-Princeton) raised concerns about probation officers near retirement paying higher employee contributions but not being able to receive the full benefit of those higher contributions. The bill was referred to the Finance committee. In the House the Ways and Means committee advanced the bill to the floor after a brief hearing on Thursday.

Current Pensions bill language
Pensions bill spreadsheet

MICA combined letter with AMC on pensions bill

Combined letter on duty disability working group

Employee association letter in support of new probation and telecommunicator plan

Pensions & General Government - The Week Ahead

In the Senate the Pensions bill is up in Finance Committee on Tuesday morning. After only receiving limited concerns about higher employee contributions so far this year, more individual probation officers have submitted letters of concern in advance of that hearing. In the House the bill has not yet been set on the calendar for the day, but it appears it will not move on Monday or Tuesday.

Tuesday, May 12
Finance Committee

  • SF 4276 (Frentz) Omnibus Pension Bill


 

Corrections & Public Safety - Last Week

The public safety policy conference committee completed its work Friday on SF4760, making it one of the first conference committees this session to finalize a policy agreement between the House and Senate. The agreement now heads to both chambers for final passage before being sent to the governor.

While the final version of the bill is less consequential to counties than other subject areas, there still are a number of provisions impacting counties. Of particular importance to MICA members, the conference committee adopted language modifying how medications are administered in local jails. The provision reflects months of stakeholder collaboration following implementation concerns tied to the Larry R. Hill reforms and is intended to reduce operational disruption, improve continuity of care, and address liability concerns raised by counties and providers.

The agreement also includes creation of a community supervision working group to refine timeline expectations for when a county transitions between supervision delivery models, additional protections for crime victims during plea proceedings, and language requiring court-ordered restitution obligations to be satisfied before an incarcerated individual may be considered for supervised release.

MICA had also prioritized a push of language delaying implementation of the increase in the age of delinquency. As mentioned in last week’s update, prior to conference committee negotiations, two amendments were offered on the House floor — one providing a one-year implementation delay and another creating a carve out for crimes of violence committed by younger juveniles. Both amendments failed on tied 67-67 votes, creating a significant hurdle for the issue advancing further during conference committee negotiations.

The conference committee also included establishment of the Task Force to Establish a Statewide Network Funding for Public Safety Radio Communications Infrastructure. The task force represents an important step toward evaluating a sustainable statewide funding framework that recognizes ARMER as critical statewide public safety infrastructure. In collaboration with AMC, county commissioners were included in the task force membership. The agreement further includes funding support for counties to upgrade handheld devices that utilize the ARMER system.

Other adopted provisions include:

  • Establishment of an Improving Responses to Domestic Crimes Task Force;
  • Prohibition on predictive market wagering;
  • Requirements to remove police markings before law enforcement vehicles are sold;
  • Expansion of duty-related death eligibility for certain cancers and infectious diseases affecting first responders; and
  • Inclusion of “forged digital likeness” under identity theft statutes.

Conference committee members also noted that several proposals not included in the final agreement were omitted because they are advancing through other legislative vehicles this session.

MICA will continue monitoring floor action on the conference report and provide additional updates as the bill moves toward final passage.