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Agriculture
2025-2026 Regular Session

Financial reporting requirements for grain buyers modified

To be a licensed grain buyer in Minnesota, a grain buyer must submit an annual financial statement to the Department of Agriculture.

This requirement applies to feed mills, ethanol plants, elevators, cooperatives, food manufacturers, and others who purchase grain for the purpose of reselling the grain or products made from it.

A new law that took effect March 18, 2025, modifies financial reporting requirements by requiring all licensees to have their financial statements prepared, reviewed, or audited by a third-party independent accountant or a certified public accountant.

Licensees purchasing between $7.5 million and $17.5 million of grain annually will be allowed to have their financial statements reviewed by a CPA instead of audited by a CPA. But licensees who purchase $17.5 million or more annually must have their financial statements audited by a CPA.

Grain buyers making less than $1 million annually in cash sales only are exempt from making financial statements to the department, but the new law allows the department to require financial reporting from these cash sales under certain circumstances.

The new law requires the department to review all submitted annual reports.

Rep. Paul Anderson (R-Starbuck) and Sen. Robert Kupec (DFL-Moorhead) are the sponsors.

HF1603/SF1552*/CH1



Agriculture
2025-2026 Regular Session

Agriculture and broadband funding, policy changes are among provisions in new law

A new law will appropriate $138.5 million from the General Fund for the 2026-27 biennium for agriculture-related purposes, including the Department of Agriculture, Board of Animal Health, Agricultural Utilization Research Institute and Broadband Development Office in the Department of Employment and Economic Development.

It also makes several policy changes, including raising grain buyers’ inspection and grain storage fees and establishing a new license for milk marketers.

Rep. Paul Anderson (R-Starbuck) and Sen. Aric Putnam (DFL-St. Cloud) sponsor the law that takes effect July 1, 2025, unless noted.

HF2446*/SF2458/CH34

Appropriations

The Department of Agriculture is to receive $114.2 million, a $49.3 million decrease from the 2024-25 base; the Board of Animal Health gets an $835,000 increase to $13.5 million; $8.8 million for the Agricultural Utilization Research Institute is a $1.7 million decrease; and the Office of Broadband Development is hit with a $123 million decrease to $2 million. (Art. 1, Secs. 1-9; Art. 2; Secs. 1-2)

Appropriations for the Agricultural Growth, Research, and Innovation Program within the Department of Agriculture are $35.2 million, including $6 million for bioincentive payments (a decrease of $5.5 million). Established in 2015, the program encourages the production of advanced biofuels, renewable chemicals and biomass thermal energy.

Other General Fund AGRI Program spending includes $5.5 million for biofuels infrastructure development, $3.5 million for urban and youth agriculture programs, $3.1 million for farm to school and early care programs, $2 million for food retail improvement and development programs, $2 million for county fair grants, and $400,000 to combat the spread of livestock and poultry diseases. (Art. 1, Sec. 2)

The law transfers $21.35 million to the University of Minnesota agriculture research, education, extension, and technology transfer program: $5 million for the Minnesota Agricultural Education Leadership Council to enhance agricultural education; $2 million for research on avian influenza, salmonella, and other turkey-related diseases and disease prevention measures; $1.6 million for the Forever Green Initiative, which develops winter-hardy, living soil cover crops; and $1.2 million for the Minnesota Agricultural Experiment Station’s agriculture rapid response fund. (Art. 1, Sec. 6)

The law transfers $1.5 million in fiscal year 2026 from the General Fund to the agricultural emergency account, with up to $750,000 of the funds available to test milk, milk products, poultry products, and pet food for the presence of avian influenza before retail sale; for Health Department biomonitoring for the presence of avian influenza in agricultural workers, farm workers, and poultry or livestock processing employees; and for the University of Minnesota to develop rapid testing for avian influenza in urban wastewater treatment processes, drinking water treatment processes, and public and private wells. (Art. 1, Sec. 6)

Two cancellations of previous appropriations are in the law: $3 million for funding grants to green fertilizer production facilities; and $1 million for funding Dairy Assistance, Investment, Relief Initiative grants. These took effect May 24, 2025. (Art. 1 Sec. 7)

Other specific appropriations in the law include:

• $3 million for dairy processing wastewater infrastructure at First District Association in Litchfield;

• $2.5 million for farm downpayment assistance grants;

• $2 million for the milk grant program;

• $2 million for the emerging farmers office;

• $1.7 million to replace capital equipment in the Department of Agriculture’s analytical laboratory;

• $1.5 million for additional meat and poultry inspection services;

• $1.4 million for local food purchasing assistance programs;

• $1.3 million for the soil health financial assistance program;

• $1 million for grants to counties to support county agricultural inspectors;

• $720,000 for mental health outreach and support to farmers, ranchers, farm workers and employees;

• $525,000 for wolf depredation compensation;

• $500,000 for a pilot biofertilizer innovation and efficiency program; and

• $485,000 for elk crop damage compensation. (Art. 1, Sec. 2)

Policy provisions

The Department of Agriculture must develop and administer a nitrogen reduction incentive program to address water quality by incentivizing Minnesota farmers to improve nitrogen management and incorporate innovative technologies into crop nutrient management plans.

The law expands the definition of livestock for the purposes of the livestock investment grant program to include “animals raised for the production of fiber, meat, and animal by-products for sale or as breeding stock,” including aquaculture. The law also expands eligibility for livestock investment grants to include tribal governments.

A new section in the state’s Dairy Law chapter is created that defines “milk marketer” and sets forth new regulations requiring a license for any such person. (Art. 3, Secs. 6-7, 16-17, 38)

Other provisions in the law include those that will:

• require noxious weed inspector or county-designated employee to attempt to contact landowners before entering property to conduct an inspection for noxious weeds;

• effective Aug. 1, 2027, modify the cottage foods exemption for home-processed pet treats to include sole proprietorships, single-member limited liability companies, and limited liability companies owned by two individuals residing at the same residence;

• authorize the state veterinarian to issue a permit to certain zoos to import live reindeer from another state under certain conditions;

• require that Rural Finance Authority loans for beginning farmers be no less than $20,000 and no more than $500,000;

• modify the eligibility for the disaster recovery loan program to require that a borrower’s total net worth be less than $10 million;

• raise inspection fees for grain buyers and modify grain storage fees;

• authorize the Department of Agriculture to award grants to eligible applicants to purchase and distribute food at no cost to Minnesotans experiencing food insecurity;

• require the Board of Veterinary Medicine to consult with veterinarians regarding the prohibition of cat declawing and to submit recommendations to the Legislature by Feb. 1, 2026;

• require the Board of Animal Health to prepare by March 1, 2026, information and materials about highly pathogenic avian influenza and preventing its spread in companion animals;

• modify requirements for bond claim hearings in case of default by licensed livestock dealers and agents;

• modify food handler and meat processing licensing application and renewal provisions;

• raise food handler license fees and authorize the Department of Agriculture to adjust fees every five years in line with inflation;

• raise reinspection fees for each reinspection of a food handler or custom exempt food handler that commits a major violation of requirements; and

• effective Aug 1, 2027, allow cottage foods to be delivered by mail or commercial delivery and lower the cottage foods exemption annual registration fee from $50 to $30. (Art. 3, Secs. 10, 14, 18, 20, 24, 29, 33-37; Art. 4, Secs. 11-14; Art. 5, Secs. 4, 9, 11, 14-15, 17)



Business and Commerce
2025-2026 Regular Session

Legislation eases broadband installation staffing, training rules

A new law rolls back provisions of a 2024 law that imposed stricter training and staffing requirements on broadband installation projects.

Effective May 20, 2025, it eliminates a mandate that two installers be present at all times when directional digging is used for broadband installation near underground utilities.

The new law also amends classroom training requirements by removing an early deadline of July 1, 2025, for metro-area workers; all installers statewide now have until July 1, 2026, to complete their coursework.

Additionally, approved trainers may retroactively seek approval for past course offerings, and if granted, they can apply that approval to individuals who previously completed training under them. However, those individuals must still pass the required exam to obtain certification

Rep. Isaac Schultz (R-Elmdale Township) and Sen. Robert Kupec (DFL-Moorhead) sponsor the law.

HF47/SF908*/CH23



Business and Commerce
2025-2026 Regular Session

Insurance boards can request financial info from high net-worth policyholders

A new law will change Minnesota’s existing high net-worth exclusion law by allowing the Minnesota Insurance Guaranty Association to request financial information from an insured to prove net worth when a property and casualty insurance company becomes insolvent and is ordered by a court to be liquidated.

Existing law does not provide consequences if a high net-worth policyholder doesn’t provide the requested information. If the association can’t determine whether the policyholder is in the high category of at least $25 million in net worth, it’s required to pay the insured’s claim.

Under the new law, the insured’s net worth will be assumed to be at least $25 million if they do not provide the requested financial information within 60 days of the association’s request.

Sponsored by Rep. Liz Reyer (DFL-Eagan) and Sen. Gary Dahms (R-Redwood Falls), the new law takes effective Aug. 1, 2025.

HF1014*/SF1758/CH14



Business and Commerce
2025-2026 Regular Session

Minnesota Business Corporations Act updated

A new law updates the Minnesota Business Corporations Act regarding a corporation’s directors, owners, and officers.

The updates were requested by the Minnesota State Bar Association to ensure Minnesota remains aligned with other states on business law.

The law provides model bylaws for a board of directors to manage the corporation during an emergency. A board of directors can also follow the procedures laid out in the model bylaws during an emergency in the absence of the board having bylaws.

It also will:

• create a new section regulating how a board and shareholders can approve a defective corporate act;

• allow articles of incorporation to limit board powers and an officer’s personal liability;

• allow a board of directors to ratify an agreement when a certificate must be filed with the secretary of state;

• allow a court to require a corporation to allow an inspection if it violates the right to inspect section of the law and award the expenses to the plaintiff;

• allow a shareholder to obtain payment for their shares if the corporation diminishes or abolishes the board’s right to manage the corporation; and

• allow a plan of merger or exchange to include penalties for a party’s failure to perform its obligations and an appointment is irrevocable and unamendable.

It also updates definitions for beneficial ownership, defective corporate act, emergency, failure of authorization, overissue, putative shares, time of defective corporate act, validation effective time and valid shares.

Sponsored by House Republican Floor Leader Harry Niska (R-Ramsey) and Sen. Michael Kreun (R-Blaine), the law takes effect Aug. 1, 2025.

HF747*/SF1431/CH11



Business and Commerce
2025-2026 Regular Session

Cannabis law clarifies policies for medical patients, businesses

The omnibus cannabis law expands medical cannabis patient protections, clarifies expungement eligibility for some Minnesotans and creates a new lower-potency hemp wholesaler license.

Sponsored by Rep. Zack Stephenson (DFL-Coon Rapids) and Sen. D. Scott Dibble (DFL-Mpls), the new law took effect May 24, 2025.

Medical cannabis

Schools won’t be allowed to refuse to enroll a medical cannabis patient or penalize them solely based on cannabis being federally listed as a controlled substance, nor will landlords be allowed to refuse to rent to a medical cannabis patient or panelize them solely based on cannabis’ federal classification.

Additionally, protections for medical cannabis patients will be extended to patients enrolled in tribal medical cannabis programs, medical cannabis patients from out of state will be allowed to purchase products from a medical cannabis business while visiting Minnesota, and patients will be allowed to have medical cannabis flower and medical cannabinoid products delivered.

Health care facilities in Minnesota will be allowed to adopt restrictions on cannabis products, lower-potency hemp edibles and hemp-derived products. Those restrictions can include that the facility won’t store or maintain a patient’s cannabis products, the patient must keep their cannabis products in a locked container, it won’t provide cannabis or hemp for patients, and cannabis and hemp products must be used in a specific location.

Cannabis convictions

The law allows a person who received a stay of adjudication for possessing or selling cannabis to qualify as a social equity applicant.

A person will be eligible for expungement of a case involving multiple charges if they’re convicted of a cannabis-related count and the other counts were cannabis related and dismissed. Records related to both the conviction and the dismissed charges will be sealed.

Businesses

The law will allow a single-serving beverage to contain a maximum of 10 milligrams of THC and remove the requirement that those beverages be labeled as two servings. It will also increase the limit per serving from 25 to 100 milligrams of cannabidiol, cannabigerol, cannabinol, or cannabichromene.

Retailers will be allowed to give samples of cannabis plants, cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived consumer products during a cannabis event.

The law creates a deliver-only option for lower-potency hemp edibles (the gummies and beverages with THC from hemp). A lower-potency hemp edible retailer can have an actual retail location, operate as a delivery service, or both. This would allow companies like DoorDash to deliver a range of things including lower-potency products.

Lower-potency hemp edible manufacturers will be allowed to manufacture, pack and label products intended for sale outside of Minnesota that aren’t compliant with Minnesota law but are compliant with the importing state’s law. Requirements placed on the manufacturers include physically separating those products from Minnesota-compliant products during the process and clearly stating on the packaging that the product isn’t for sale in Minnesota.

The new law creates a lower-potency hemp edible wholesaler license and sets the application fee at $250 and an initial license fee and a renewal license fee at $10,000 each. It also outlines from whom the wholesaler can purchase products and to whom they can sell products, as well as sets requirements for wholesaler operations, importations and transportation.

Two pieces of information will become mandatory for cannabis license applicants to provide: proof that they are a social equity applicant and an attestation that their business policies comply with state law. State law previously said applicants may provide that information.

For business license holders, the law will allow:

• a cannabis microbusiness and mezzobusiness to purchase immature cannabis plants and seedlings, cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer products from a cannabis cultivator, a medical cannabis combination business, a lower-potency hemp edible manufacturer or a lower-potency hemp edible wholesaler;

• a cannabis cultivator to sell immature cannabis plants and seedlings and cannabis flower to other cannabis businesses; and

• a cannabis retailer or cannabis wholesaler to purchase from a medical cannabis combination business and from a lower-potency hemp edible wholesaler.

Cities and counties that own or operate a municipal cannabis store will be allowed to hold a lower-potency hemp edible retailer license.

Other policy in the law will:

• make technical changes to reflect the medical cannabis program’s move from the Department of Health to the Office of Cannabis Management;

• add additional security requirements for people transporting cannabis consumer products;

• allow a cannabis testing facility to begin testing while its accreditation is pending if it follows requirements that include showing it is progressing in the accreditation process; and

• require the Office of Cannabis Management to submit a proposal to the Legislature by Jan. 15, 2026, on how to streamline the medical- and adult-use cannabis supply chain while preserving access to medical cannabis for rare and childhood diseases.

HF1615/SF2370*/CH31



Business and Commerce
2025-2026 Regular Session

Workers’ compensation law ups protected claim amount, enacts other council proposals

A new law makes updates and technical corrections to make the workers’ compensation system operate more effectively.

The changes follow recommendations made by the Workers' Compensation Advisory Council, whose voting members include equal membership between representatives of employers and labor.

Sponsored by Rep. Dave Baker (R-Willmar) and Sen. Jennifer McEwen (DFL-Duluth), the law is effective May 23, 2025, unless otherwise noted.

The law raises the dollar amount of workers’ compensation claims exempt from seizure or sale for debt repayment. Previously set at $1 million, the threshold is $10 million for injuries incurred on or after Oct. 1, 2025.

Among other updates, the law strengthens protections against insurance premium fraud in the construction industry. Starting Jan. 1, 2026, applicants for zero-estimated exposure policies must attest to the accuracy of their statements with specific language, including that they “have no employees and an estimated exposure of zero.”

Construction employers holding such policies must provide written notification and a copy of the policy to businesses they contract with, who must retain these documents for three years.

The law also clarifies the use of wrap-up policies covering multiple contractors and subcontractors working on a single project. The state shall approve policies for single projects valued at more than $100 million that generate at least $500,000 in workers’ compensation premiums annually, provided project sponsors, contractors and subcontractors have not been convicted of insurance fraud in the recent past. This provision takes effect Jan. 1, 2026.

Additional changes provide technical clarifications, such as:

• updating definitions related to personal care assistants and executive officers;

• expanding definitions to include household and family members as recipients of paid nursing services in cases of permanent total disability; and

• revising reporting requirements and deadlines.

HF3228*/SF3407/CH27



Business and Commerce
2025-2026 Regular Session

‘Minnesota Partition Act’ will modernize property partition, clarify eminent domain laws

The “Minnesota Partition Act” will clarify and reflect modern practices for how court actions involving two or more owners are decided.

Effective Aug. 1, 2025, unless otherwise noted, a new law modernizes Minnesota’s statute on property partition, clarifies eminent domain laws, updates statute to reflect case law on partitions, and changes the effective date a 2024 certain transfer on death deed law.

Among its provisions, the law:

• describes who may bring legal action regarding sales of real property held by two or more joint tenants or tenants-in-common;

• provides that a partition can still occur when there is a dispute as to who owns shares of the property;

• outlines the duties and powers of referees assigned by a court to facilitate property sales, including that referees “shall sell the property by any means to assure the highest and best price, under the most favorable terms”;

• states a court must accept a referee’s report “unless the party seeking to set aside or modify the report can demonstrate that the report is clearly and palpably against the evidence, by a preponderance of the evidence that clearly suggests a mistake, improper motive, bias, or caprice in making the report”;

• modifies who must be notified of an eminent domain report filed by court-appointed commissioners; and

• expands the ways a person affected by an eminent domain action may file an appeal of a district court’s decision.

Effective retroactively from April 27, 2024, the law also changes the application of a transfer on death deed law enacted in 2024.

Rep. Sandra Feist (DFL-New Brighton) and Sen. Michael Kreun (R-Blaine) sponsor the law.

HF359/SF202*/CH2



Civil Law
2025-2026 Regular Session

Updates, changes to contract for deed statutes

A largely technical new law updates terms, definitions and notices for contracts for deed, i.e., real estate contracts between buyers and sellers of real property in which sellers provide buyers financing in the purchase and the buyers repay the resulting loan in installments.

Effective May 1, 2025, the law makes a technical change to state statutes on conveyances and taxes paid by removing a reference to determine the time frame for taxes owed related to a contract for deed presented to a county auditor for transfer. It also updates a reference to contract for deed statutes defining an “investor seller.”

The remainder of the law takes effect Aug,1, 2025.

It updates and makes a technical correction to the term “churning” in contract for deed statutes and adds a definition of family member in the same statutes.

A definition of “investor seller” is updated for the application of contract for deed laws and adds two exemptions to the term investor seller: a state agency or political subdivision and a legal entity who has a single natural person as an owner and meets the criteria of the exceptions.

And the law updates the terms in a notice that must be sent to a purchaser for a contract for deed regarding a disclosure of price paid by investor seller to acquire property.

Rep. Anquam Mahamoud (DFL-Mpls) and Sen. Zaynab Mohamed (DFL-Mpls) are the sponsors.

HF1792*/SF505/CH9



Civil Law
2025-2026 Regular Session

Office of Ombudsperson for American Indian Families exempt from court fees

The Office of Ombudsperson for American Indian Families will be exempt from the requirement to pay court fees in certain cases.

Current law exempts tribes and tribal representatives from the fee requirement.

The list of actions for which fees are exempt will also be expanded to include those seeking relief under Chapter 256 of state statute (human services matters), Chapter 257 (children and child custody matters), Chapter 518 (marriage dissolution), and portions of Chapter 524 (guardianship of a minor or incapacitated person).

Sponsored by Rep. Sandra Feist (DFL-New Brighton) and Sen. Mary Kunesh (DFL-New Brighton), the law takes effect Aug. 1, 2025.

HF2184*/SF472/CH10



Civil Law
2025-2026 Regular Session

Trust, probate code get largely technical updates

A new law makes technical changes, clarifications and statutory updates to the state’s Trust Code, the rule against perpetuities, powers of appointment, and the Uniform Probate Code.

Sponsored by Rep. Peggy Scott (R-Andover) and Sen. Bonnie Westlin (DFL-Plymouth), the law takes effect Aug. 1, 2025, unless otherwise noted.

HF360/SF571*/CH15

Uniform Statutory Rule Against Perpetuities

The time that an interest must vest to be valid will expand from 90 years to up to 500 years, unless a different number of years is included in the trust document, to trusts created on or after Aug. 1, 2025. These trusts are sometimes called Dynasty Trusts and their terms last 360 to 1,000 years, or in perpetuity, in other states.

Trust Code

The new law provides for many Trust Code clarifications, including:

• changes related to representatives who act on behalf of another;

• laws on representation by a holder of a power of appointment;

• when an oral intent can apply for real property or a testamentary trust which has requirements for writing in law;

• when an agent can modify terms of a noncharitable irrevocable trust by consent, including termination;

• when an agent can modify the terms of a revocable trust;

• time limits related to commencing a judicial proceeding related to the validity of a revocable trust;

• specifying that a designated trustee who does not accept a trusteeship within 120 days is deemed to have rejected the trusteeship;

• definitions in the Trust Code;

• power of an investment trust advisor, distribution trust advisor or trust protector;

• the role and powers of a directing party;

• the duty of an “excluded fiduciary” that will allow the excluded fiduciary to act as an interested party to petition a court under certain sections of the Trust Code, and require the excluded fiduciary to keep the directing party (or parties) up to date with information on the duties they perform;

• specifying that many laws related to a trustee apply to a directing party, including compensation, removal, resignation, and successor appointments;

• the effect of relying on a certificate of trust that is recorded related to real property in a trust;

• allowing an affidavit of trustee to be used to transfer personal property through a statutory form used for real property;

• changes regarding charging expenses to trust instruments; and

• specifying that a decedent’s estate includes any trust that was revocable by the decedent at the time of the decedent’s death.

Powers of appointment of property

In addition to a plethora of clarifying changes, the law sets forth procedures to follow when attempting to decant a trust when a portion of the appointed trust instrument doesn’t comply with existing statutes. It also removes a prohibition for a trustee related to receiving any paying commission or compensation for decanting a trust.

Uniform Probate Code

Effect May 7, 2025, a parent is prohibited from inheriting from a child when the child died after reaching the age of 18, and during the child’s minority the parental rights of a parent could have been terminated under the laws of the state and the parent and child were estranged. It also clarifies that this provision of law does not affect inheritance related to federal Indian trust land.

And the law clarifies how a divorce affects a trust that provides for a spouse or their family.



Civil Law
2025-2026 Regular Session

Limited confidentiality established for restorative justice participants

A privilege has been established for communications that take place within restorative justice programs, similar to confidentiality protections between attorneys and clients or doctors and patients.

Restorative justice programs allow an offender to meet with the victim or victims of their crimes and other community members to discuss the impact of the offense. In some cases, a prosecutor will dismiss a case if the person successfully completes a restorative process and in others a court may order participation as part of a sentence.

The law’s intent is to encourage program participants to share honest information with other parties without fear the information could be used against them.

Under the law that takes effect Aug. 1, 2025, a restorative practice participant will be prohibited from disclosing any communication, documents, or other information made or used in the course of the program.

Several exceptions and limitations to privileged communications are provided for, including:

• the prohibition does not exempt mandatory reporters from complying with existing statutes requiring reporting of maltreatment of children or vulnerable adults;

• establishing exceptions allowing disclosure of information necessary to prevent reasonably certain death, great bodily harm or criminal activity;

• allowing disclosure when the information relates to professional misconduct by a participant; and

• allowing disclosure of information to verify to a court that a person ordered to participate in a program is participating.

A cross-reference will be added to the Government Data Practices Act, thus classifying individual data on restorative practice participants as private.

Grantees who receive state funds to conduct restorative practice programs will be required to report data on recidivism, public safety impacts, and financial investments in restorative practices to the Restorative Practices Office.

Rep. Sandra Feist (DFL-New Brighton) and Sen. Sandra Pappas (DFL-St. Paul) are the sponsors.

HF104/SF2200*/CH24



Employment
2025-2026 Regular Session

New law sets safety standards for underwater weed-clearing operations

Scuba training, safety equipment and a stand-by diver are now required for companies using divers to clear lakes and ponds of unwanted aquatic plants under the Brady Aune and Joseph Anderson Safety Act.

Named after two young men who died in separate workplace drownings, the law sets training and equipment standards for commercial operations that employ scuba divers to make improvements to the land. Often this means pulling underwater weeds, which had largely been an unregulated industry.

Sponsored by Rep. Dave Baker (R-Willmar) and Sen. Liz Boldon (DFL-Rochester), the law mostly took effect May 2, 2025.

Workers must have, at minimum, a valid open-water scuba diver certificate and be trained in first aid and cardiopulmonary resuscitation.

Companies must provide buoyancy-control devices, quick-release weight systems and illuminated dive beacons for their divers. On request of the diver, companies must provide a depth-monitoring device, an alternative air source, and a dive computer or recreational dive planner.

Companies that willfully violate safety standards may not be issued a license to operate for two years and could not get a license simply by reorganizing.

Before receiving a permit to operate, companies must declare if they will be using scuba equipment. If so, their work must be reviewed by a third-party qualified safety professional, which includes a Labor Department workplace safety consultant, a worker’s compensation loss-control representative or a private safety consultant. This section is effective Oct. 1, 2025.

HF1355*/SF1346/CH8



Employment
2025-2026 Regular Session

Pensions law especially benefits educators and public safety personnel

Teachers with decades of experience will be able to retire sooner with a lower early retirement reduction from the full retirement benefit they would have received at age 65.

That is a key provision in the omnibus pension and retirement law sponsored by Rep. Leon Lillie (DFL-North St. Paul) and Sen. Nick Frentz (DFL-North Mankato). The new benefit for teachers is effective June 30, 2025.

The law provides about $78 million in pension funding for firefighters, police officers, state patrol, and teachers in the 2026-27 biennium. About half is targeted to the Minnesota Teachers Retirement Association.

[MORE: View the spreadsheet]

For that pension plan, the law reduces the age at which a member becomes eligible for the enhanced early retirement reduction from 62 to 60 and lowers the associated benefit reduction percentage from 6% to 5% (which is further reduced by the 2.5% or 3% augmentation under current law).

Per a summary from the Legislative Commission on Pensions and Retirement, “This change means that if a member has reached age 60 (instead of 62) with 30 years of service, the member’s retirement benefit is reduced by approximately 2-2.5%.”

Teachers hired before July 1, 1989, have a career “Rule of 90,” meaning they can retire with full pension benefits if their age plus years of service adds up to 90. Educators hired after that date who elect early retirement (before age 65) have their pension reduced for each year that the start of the pension precedes age 65.

The law will also increase employer contributions to the Teachers Retirement Association from 9.5% to 9.81% for each coordinated member and from 13.5% to 13.81% for members who do not receive Social Security based on their teaching service. An appropriation to school districts and other employers in TRA funds the increase. This is effective June 30, 2025.

For public safety personnel who are members of the Public Employees Retirement Association (PERA) Police and Fire Plan, the law reduces the delay in receiving the first cost-of-living adjustment from three years to two. It also provides a one-time, compounded 3% cost-of-living increase in calendar year 2026, which thereafter reverts to the 1% COLA under current law. These changes come with a $17.7 million cost in each fiscal year.

At a cost of $2.3 million per fiscal year, every state patrol retiree will get a 1.25% annual cost of living increase — up from 1%.

Other parts of the law include:

• for peace officers and firefighters who are members of the Police and Fire Plan and who leave active service due to a duty disability, the period of time that that employers must continue health insurance coverage is capped at 60 months, and once a duty disability determination is made, cities and counties are prohibited from challenging the continuation and payment of health coverage;

• increasing the multiplier used to calculate the retirement annuity for members of the Minnesota State Retirement System (MSRS) General State Employees Retirement Plan from1.7% to 1.9% for years of service earned after June 30, 2025;

• effective for cost-of-living adjustments on or after Jan. 1, 2026, increasing the cost-of-living adjustment from 1.5% to 1.75% for the MSRS General Plan, Legislators Plan and Unclassified Employees Retirement Program;

• effective for cost-of-living adjustments on or after Jan. 1, 2026, increasing the maximum cost-of-living adjustment for the PERA General Plan so it is 1% annually unless the Social Security cost-of-living adjustment is greater than 1%, in which case the COLA matches the Social Security adjustment, not to exceed 1.75%;

• upping the cap on employer matching contributions to the Minnesota State higher education supplemental retirement plan from $2,700 to $4,300 per year;

• implementing legislation recommended by the MSRS correctional plan eligibility work group, the amortization work group, and the state auditor’s fire relief association working group, which met during the interim;

• for defined benefit firefighter relief associations, increasing the maximum lump-sum pension amount for each year of service from $15,000 to $20,000 annually;

• adding penalties for noncompliance by employers required to participate in the Minnesota Secure Choice Retirement Program; and

• requiring a working group to be convened to recommend the features of new pension plans to be administered by MSRS and PERA for probation officers and 911 telecommunicators who are public employees. A report is due to the Legislature by Jan. 15, 2026.

HF1889/SF2884*/CH37



Employment
2025-2026 Regular Session

Summer unemployment insurance for hourly school workers boosted by $100 million

A new law that takes effect July 1, 2025, will provide a onetime $100 million appropriation in fiscal year 2026 to reimburse school districts to fund the summer unemployment insurance program.

Funds in the account are used to reimburse school districts, charter schools, intermediate school districts, and other cooperative units for costs associated with providing unemployment benefits to hourly school employees over the summer.

Sponsored by Rep. Emma Greenman (DFL-Mpls) and Sen. Jennifer McEwen (DFL-Duluth), the law will cancel a $77.23 million appropriation made in 2023 for the Northern Lights Express rail project — a proposed passenger rail service between Minneapolis and Duluth — and reduce $683,000 for fiscal year 2026 and $22.09 million for fiscal year 2027 from special education aid to provide the $100 million to the school unemployment aid account.

However, the special education reductions in the bill are not an actual loss in revenue to schools since these costs are fully covered by the direct state unemployment insurance aid payments for the 2026-27 biennium. In subsequent years, if no direct unemployment aid is provided to schools, the special education formula will reimburse a portion of the unemployment insurance costs for special education paraprofessionals in the same manner as other eligible special education expenditures.

Hourly workers will remain eligible for the summer unemployment insurance program in future years, but districts will eventually have to absorb the cost.

HF1143*/SF906/CH33



Environment and Natural Resources
2025-2026 Regular Session

Legacy dollars will fund $777 million to outdoors, clean water, parks and trails, and the arts

A new law will appropriate nearly $777 million from legacy funds to protect drinking water sources; protect, enhance, and restore wetlands, prairies, forests, and fish, game, and wildlife habitat; preserve arts and cultural heritage; support parks and trails; and protect, enhance, and restore lakes, rivers, streams, and groundwater.

The Legacy Amendment approved by voters in 2008 increases the state sales tax by three-eighths of 1% from July 1, 2009 until 2034. That additional revenue is dedicated to four funds: 33% Clean Water Fund; 33% Outdoor Heritage Fund; 19.75% Arts and Cultural Heritage Fund; and 14.25% Parks and Trails Fund.

Rep. Samantha Vang (DFL-Brooklyn Center) and Sen. Foung Hawj (DFL-St. Paul) sponsor the law that takes effect July 1, 2025, unless otherwise noted.

HF2563*/SF2865/CH36

The Outdoor Heritage Fund is the only one of the four funds to be distributed annually rather than biennially, and $162.11 million will be appropriated in fiscal year 2026 broken down as:

• $77.65 million for 21 habitat projects, and a conservation partners grant program;

• $33.43 million for 10 prairie projects;

• $29.03 million for eight wetland protection or restoration projects;

• $19.96 million for seven forest projects; and

• $2.04 million for administration purposes.

[MORE: View the spreadsheet for all fund categories]

Almost $303.93 million from the Clean Water Fund is appropriated for 2026-27 biennium projects, including:

• $139.34 million for 17 Board of Water and Soil Resources projects; including $88.1 million to implement state-approved watershed-based plans;

• $49.2 million for the Pollution Control Agency for nine projects, including $18.9 million to complete statewide assessments of surface water quality and trends;

• $33.35 million for the Department of Agriculture for 11 projects;

• $30.14 million for six Department of Health projects;

• $28.8 million for the Department of Natural Resources for 10 projects, including $5.65 million for stream flow monitoring;

• $16.54 million for Public Facilities Authority with all but $100,000 for the point source implementation grants program;

• $4.15 million for the Metropolitan Council, including $2.75 million for projects to address emerging drinking water supply threats and overall water sustainability; and

• $2.4 million for University of Minnesota, largely “for a program to evaluate performance and technology transfer for stormwater best management practices.”

The Parks and Trails Fund appropriations are $130.17 million for the 2026-27 biennium.

Of the $78.63 million for the Department of Natural Resources, $51.53 million is to “connect people to the outdoors; acquire land and create opportunities; maintain existing holdings; and improve cooperation by coordinating with partners to implement the 25-year long-range parks and trails legacy plan.”

Also at $51.53 million is the Metropolitan Council appropriation “to fund the list of projects approved by the elected representatives of each of the metropolitan parks implementing agencies.”

The Arts and Cultural Heritage Fund will receive $179.91 million for projects in fiscal years 2026-27. Funding can only be spent for arts, arts education and access, and to preserve Minnesota's history and cultural heritage:

• $84.56 million to the Minnesota State Arts Board, of which, $67.65 million is for arts and arts access initiatives;

• $36.39 million for the Minnesota Historical Society, including $13.94 million for historic and cultural programs and purposes related to state heritage, and $12.95 million for statewide historic and cultural grants to local, county, regional, or other historical or cultural organizations or for activities to preserve significant historic and cultural resources;

• $26.44 million for the Minnesota Humanities Center, including $16.17 million for a community identity and heritage grant program;

• $19.61 million for the Department of Administration, including $8.37 million to public television production and acquisition grants, $3.61 million for public radio, $3.04 million for Como Zoo program development, $2 million for Minnesota Public Radio, and $100,000 for cultural programming at the Minnesota African American Heritage Museum and Gallery;

• $5.4 million for Department of Education for “the 12 Minnesota regional library systems to provide educational opportunities in the arts, history, literary arts, and cultural heritage of Minnesota”;

• $3.4 million for the Minnesota Zoo “to provide access and education related to programs on the cultural heritage of Minnesota”;

• $2.61 million for the Indian Affairs Council, including $1.3 million to preserve and foster education programs and services for Dakota and Ojibwe language; and

• $1.5 million for the Department of Agriculture for grants to county fairs and Minnesota FFA programming.

With a few exceptions, such as accessibility accommodations, money from the arts and cultural heritage fund cannot be used for new construction or capital construction projects except for preservation of historic structures or sites.



Family
2025-2026 Regular Session

New law continues recodifying Department of Children, Youth, and Families legislation

A new law continues to recodify 2023 legislation that established the Department of Children, Youth, and Families while also making technical changes.

Sponsored by Rep. Carlie Kotyza-Witthuhn (DFL-Eden Prairie) and Sen. Melissa Wiklund (DFL-Bloomington) the law, effective Aug. 1, 2025, contains technical and conforming statutory and reference changes that were missed in previous legislation.

The conforming changes maintain the continuity of authorities, powers, and duties that the transferred programs had at the originating agency, update statutory cross-references, and add department representatives to state advisory councils.

HF2551*/SF2706/CH21



Health and Human Services
2025-2026 Regular Session

Adult ‘undocumented noncitizens’ no longer eligible for subsidized health insurance

A new law that took effect June 15, 2025, limits a 2023 law that expanded access to MinnesotaCare to “undocumented noncitizens.”

Sponsored by Rep. Jeff Backer (R-Browns Valley) and Sen. Jordan Rasmusson (R-Fergus Falls), the law states “undocumented noncitizens who are age 18 years old or older” who are enrolled in MinnesotaCare will no longer eligible after Dec. 31, 2025.

Further, undocumented adult immigrants not enrolled in MinnesotaCare by June 15, 2025, are ineligible for the state’s subsidized health insurance program.

2025 Special Session: SSHF1*/SSSF8/CH2



Housing
2025-2026 Regular Session

Service dog trainers gain housing protections

A new law effective Aug. 1, 2025, will ensure people who have a service dog in training are entitled to “full and equal access to all housing accommodations,” that apply to people who have a service dog with them permanently.

About 1,000 volunteers across the state help train and socialize assistance dogs, who are typically ready to go to permanent homes at age 3. Some who want to train dogs have been unable to because of homeowner association restrictions on any pets or those of a certain breed or weight.

Trainers can’t be charged extra to have the dog but are liable for any damage it might cause.

The dogs must be actively trained under the guidance of an accredited organization. Landlords or homeowners may require written notice of that fact, ensuring pets aren’t kept under the guise of being a service dog-in-training.

Rep. Cedrick Frazier (DFL-New Hope) and Sen. Bonnie Westlin (DFL-Plymouth) sponsor the law.

HF688*/SF1317/CH16



Housing
2025-2026 Regular Session

Budget includes $184 million for Minnesota Housing, $50 million in housing infrastructure bonds

A new law provides $184 million from the General Fund to a variety of loan and grant programs operated by the Minnesota Housing Finance Agency. It also authorizes the sale of $50 million in housing infrastructure bonds.

Sponsored by Rep. Spencer Igo (R-Wabana Township) and Sen. Lindsey Port (DFL-Burnsville) the omnibus housing law mostly takes effect July 1, 2025.

HF2309/SF2298*/CH32

The law provides $46 million for the state’s rental assistance program, which offers help to lower income, and rent-burden Minnesotans.

It also appropriates $23.29 million for the Housing Trust Fund Account, which offers loans or grants to develop, acquire, preserve and rehabilitate low-income rental or co-op housing along with providing support programs for families with school-aged children.

Among other appropriations are:

• $28.89 million for a family homelessness prevention and assistance program. Base funding is set at $10.72 million staring in fiscal year 2028;

• $27.85 million for the Challenge Grant Program;

• $10.68 million for rental assistance for individuals with a mental illness;

• $8.46 million affordable rental investment fund which supports federally assisted rental property;

• $7.49 million to rehabilitate rental housing;

• $5.54 million for rehabilitation of owner-occupied housing;

• $5.5 million for the Homework Starts with Home program to provide assistance to families who are highly mobile, homeless or at risk of becoming homeless;

• $4 million for a Greater Minnesota workforce housing development program;

• $2.5 million for the workforce homeownership program, with the base set at $250,000 in fiscal year 2028 and beyond;

• $3.77 million ($2 million over base) for a fund aiming to address significant racial gaps in home ownership; and

• $2 million for manufactured home park infrastructure grants.

One-time funding includes $2 million for Greater Minnesota housing infrastructure grants and $2 million for community-based, first-generation homebuyer downpayment assistance grants.

The law also provides less than $1 million per year for homeownership education and training programs, capacity building grants, and Build Wealth Minnesota, which offers resources in financial literacy, budgeting and debt counseling. (Art. 1, Sec. 2)

Policy

The law encourages communities to reduce some zoning regulations by offering a boost to competitive grant scores. The Housing Finance Agency shall award points, capped at 5% of total points available, to applicants in communities that do at least one of the following:

• allow multifamily housing in at least 50% of the area in commercial zones;

• allow smaller units such as duplexes, accessory dwelling units, or townhomes in 50% of areas zoned for single-family housing;

• don’t require more than one parking space per unit;

• don’t require lot sizes bigger than 1/8-acre for new single-family home construction;

• don’t have aesthetic mandates on new home construction such as a specific exterior finish, decks, porches, shutters or a minimum garage size;

• have density bonus for affordable housing; or

• have adopted inclusionary zoning to increase the supply of affordable homes.

This scoring boost took effect May 24, 2025, and expires after five years. The boost only applies in the next scoring system developed by the agency. (Art. 3, Sec. 13)

The law also requires the Minnesota Housing Finance Agency to work with stakeholders and develop a framework by Feb. 15, 2026, to preserve regulated affordable housing. Per the law, "The goal of this framework is to preserve and sustain affordable housing development organizations, the affordable rental buildings they own, and the housing for the people who live in the buildings today and in the future."

Additionally, the Community-Based First-Generation Homebuyers program administered by the Midwest Minnesota Community Development Corporation will not be a pilot project, but a program. The law makes eligibility apply to a homebuyer, not household. Grants can be up to 10% of the median home sales price, beginning in 2027. (Art. 1, Secs. 9, 11)

Other policy provisions include those that will:

• require the agency to inform manufactured home park owners about a tax credit for selling to cooperatives;

• require Minnesota Housing to post rights and responsibilities of landlords and tenants on its website;

• clarify that income needs to be recertified annually for rental assistance, not eligibility;

• allow rental assistance to be distributed by formula;

• make contract alternative schools and contract tribal schools eligible for Housing Challenge Grants;

• allow housing infrastructure bonds to be used for adaptive reuse, such as converting former school buildings into apartments;

• require Local Housing Trust Fund Grants to be used within five years instead of eight;

• change the high-rise sprinkler grant and loan program so more buildings are eligible;

• require Minnesota Housing to report its asset management portfolio, including operating expenses compared to revenue and a summary of tenant receivables, including late rent, fees and damages; and

• require a report on accessible housing. (Art. 3, Secs. 1-8, 10, 12, 15-16)

Other changes include: landlords must ensure living quarters, including kitchens and bathrooms, are capable of maintaining a temperature of at least 68 degrees Fahrenheit in the winter and may not disclose information about a tenant who is a victim of violence even if the renter needs to break their lease; anti-wage theft laws apply to all agencies allocating low-income housing tax credits; and, in a provision effective May 24, 2025, counties cannot charge to remove illegal restrictive covenants from title documents. (Art. 4, Secs. 1, 4-5, 9).



Local Government
2025-2026 Regular Session

North Koochiching Sanitary Sewer Board, Crane Lake Water and Sanitary District reorganized

A new law will reorganize the North Koochiching Sanitary Sewer Board and the Crane Lake Water and Sanitary District.

Four member positions are removed; however, two are redistributed. The result is International Falls loses a member, the East Koochiching county sewer district gains one, and an at-large member position is created.

The law also allows the Crane Lake Water and Sanitary District to be reduced from five members to three and makes technical corrections to the election process once the district has three members. This takes effect upon the Crane Lake Water and Sanitary District’s compliance with the local approval requirements.

The rest of the law takes effect the day after the North Koochiching board’s compliance with local approval.

Rep. Roger Skraba (R-Ely) and Sen. Grant Hauschild (DFL-Hermantown) are the sponsors.

HF1058*/SF563/CH6



Military and Veterans Affairs
2025-2026 Regular Session

Omnibus veterans and military affairs law includes new funding, policy changes

A new law will provide a $50.5 million increase over base for veterans and military affairs funding and make a handful of policy changes.

Sponsored by Rep. Matt Bliss (R-Pennington) and Sen. Aric Putnam (DFL-St. Cloud), the law, effective July 1, 2025, will spend $365.23 million from the General Fund in the 2026-27 biennium.

Of the increased funding, $40.9 million is targeted to the Department of Veterans Affairs, with $39.17 million to support operations at the state’s eight veterans’ homes, including staffing increases for the Bemidji, Montevideo and Preston facilities (each opened early in 2024) to reduce the waitlist of veterans seeking to live there.

Other department increases include a nearly $1.19 million operating adjustment; $300,000 to increase suicide prevention; $300,000 to expand home-delivered meals to veterans, including in Greater Minnesota; $120,000 to provide technical assistance to county veterans service officers for three areas: women veterans, suicide prevention and justice-involved veterans; and $100,000 to Hometown Hero Outdoors to fund outdoor recreational activities and mental health services for currently serving military personnel and veterans.

A fiscal year 2026 allocation of $118,000 is for a task force to develop eligibility requirements for “Veteran of the Secret War in Laos” status. The task force must first meet by Sept. 15, 2025, and it will expire Feb. 15, 2026.

Such status will be granted under state law to certain people who served with special guerilla units or other irregular forces in Laos: naturalized under the federal Hmong Veterans’ Naturalization Act of 2000 or whom the Department of Veterans Affairs has determined “served honorably with a special guerrilla unit or other irregular forces that operated from a base in Laos in support of the armed forces of the United States at any time during the period beginning Feb. 28, 1961, and ending May 14, 1975, and is a citizen of the United States or an alien lawfully admitted for permanent residence in the United States.” An eligibility certificate for the benefits and privileges will be provided to show a veteran’s status.

Five spending increases are targeted to the Department of Military Affairs: $8 million to maintain enlistment and retention bonuses, a $599,000 operating adjustment, $750,000 to sustain the agency’s current Cyber Coordination Cell program that provides “sustained support for Cyber operations readiness within the Minnesota National Guard,” $242,000 in fiscal year 2026 to operate the Holistic Health and Fitness program for the Army National Guard, and $4,000 so 5% of service member base pay is a pension offset for those activated for state active duty. Prior to the law taking effect, only federal active service days are credited towards a National Guard member’s pension.

The law eliminates a $200,000 appropriation each year to the veterans resilience project, an organization that makes eye movement and desensitization and reprocessing therapy available to veterans, current military members and the spouses of each, suffering from posttraumatic stress disorder and trauma.

Other policy in the law will:

• increase the maximum bonded indebtedness allowed for the State Armory Building Commission from $15 million to $45 million;

• increase to $160,000 the annual grant amount that can be made from the Department of Veterans Affairs to the Minnesota Association of County Veterans Services Officers, and allowing up to $60,000 be used “to train technical assistance coordinators and for technical assistance coordinators to travel to consult with Minnesota counties on specific areas of expertise upon request”;

• extend the Department of Veterans Affairs’ read-only access to MAXIS, a computer system used to determine eligibility for public assistance;

• update state statutes governing burial provisions to align with federal laws governing eligibility for burial in veterans cemeteries;

• allow surviving spouses of service members who die because of their military service to remain eligible to use the service member’s education benefits even if the surviving spouse remarries; and

• require placement of a memorial plaque in the Court of Honor on State Capitol grounds to recognize the service and sacrifices of Minnesota’s Gold Star and Blue Star families.

HF2444/SF1959*/CH30



Public Safety
2025-2026 Regular Session

New law clarifies intent of Hometown Heroes Assistance Program

Legislative intent is clarified regarding the types of care eligible for reimbursement under the Hometown Heroes Assistance Program created in 2021 to assist firefighters experiencing critical illnesses and mental health issues.

The law specifies that expenses related to peer-to-peer counseling are reimbursable under the program. It also provides that each firefighter is eligible for two hours of training in understanding and mitigating the risk of job-related critical illnesses and emotional trauma.

Sponsored by Rep. Cheryl Youakim (DFL-Hopkins) and Sen. Jeff Howe (R-Rockville), the law took effect May 7, 2025.

HF1163*/SF1427/CH17



Public Safety
2025-2026 Regular Session

Department of Corrections gets $9 million in to fill budget deficiency

The Department of Corrections will receive $9.09 million from the General Fund in fiscal year 2025 to eliminate a funding deficiency in incarceration and prerelease services.

Increased staffing costs associated with the agency hiring additional staff created the shortfall.

Sponsored by Rep. Kelly Moller (DFL-Shoreview) and Sen. Ron Latz (DFL-St. Louis Park), the law also authorizes the department to reallocate $10 million in unspent fiscal year 2025 appropriations.

The law took effect May 9, 2025.

HF3006/SF3196*/CH19



Public Safety
2025-2026 Regular Session

Rules set for gifts related to the death of public safety officers killed in the line of duty

A new law allows state agencies and political subdivisions to receive certain gifts after a public safety officer from the same agency or political subdivision is killed in the line of duty.

The gift must honor or commemorate the fallen officer, or provide team morale and cohesion services to the recipients, and the gift must follow applicable government gift policies.

Public safety officers include peace officers, corrections officers, firefighters, emergency medical service providers and others in public safety roles.

A state agency or political subdivision shall report any gifts received within three months of use or distribution to the Department of Public Safety. The report must specify the amount or description of the gift, its source, and the use to which it was put. The state agency or political subdivision shall also post this information on its website.

The law also authorizes certain local governments to expend money for a funeral or memorial for a fallen officer, and for travel and participation costs for qualified individuals in national memorial events for fallen public safety officers that occur within 24 months of the death of an officer or local government employee.

Sponsored by Rep. Kaela Berg (DFL-Burnsville) and Sen. Zach Duckworth (R-Lakeville), the law took effect May 1, 2025.

HF124*/SF1266/CH7



Public Safety
2025-2026 Regular Session

Performing national criminal background checks on adult business license applicants

Cities and counties can conduct a criminal background check that includes the national database for applications for a license to operate an adult entertainment establishment or provide massage services.

Prior to a new law taking effect Aug. 1, 2025, cities and counties could only conduct a criminal background check that includes records within the state.

Rep. Bernie Perryman (R-St. Augusta) and Sen. Jeff Howe (R-Rockville) sponsor the law.

HF286*/SF803/CH22



Public Safety
2025-2026 Regular Session

Law modifies reporting requirements for biennial report on child sex trafficking prevention

A 2013 law established a director for child sex trafficking prevention within the Department of Health and required the director to submit an evaluation of the statewide program for Safe Harbor for sexually exploited youth to the commissioner every two years.

This law requires the director to also submit the evaluation to the chairs and ranking minority members of the Senate and House of Representatives committees with jurisdiction over health and public safety by Sept. 1 of each odd-numbered year.

Rep. Aaron Repinski (R-Winona) and Sen. Paul Utke (R-Park Rapids) sponsor the law that takes effective Aug. 1, 2025.

HF129*/SF2210/CH12



Public Safety
2025-2026 Regular Session

Increased use of ignition interlock approved for monitoring repeat impaired driving offenders

People with more than one DWI offense and wish to be licensed to drive again will be required to participate in an ignition interlock program, thus having to establish before driving that they are not at a certain alcohol concentration level.

A new law, effective Aug. 1, 2025, will consolidate license revocation requirements into one section of law, maintaining the existing revocation requirements for those with no prior incidents while extending the lookback period for prior offenses from 10 years to 20 years. It will also specify the time a person must participate in the ignition interlock program before becoming eligible for reinstatement of a standard driver’s license.

Eligibility for ignition interlock is expanded to include criminal vehicular homicide. For someone who commits criminal vehicular homicide or criminal vehicular operation, the license revocation period will be extended, as it will for anyone with a DWI-related offense who has had a prior incident. A gross misdemeanor penalty is established for driving with a license that’s been revoked for a DWI-related offense unless the vehicle is equipped with an ignition interlock device.

All participants in the ignition interlock program must complete a licensed substance use disorder treatment or rehabilitation program.

Prior to the law, a person had to pay the $680 license reinstatement fee before starting interlock. With the change they can start the program without making any payment, but the fee must be fully paid before reinstatement of a standard license.

Rep. Larry Kraft (DFL-St. Louis Park) and Sen. Ron Latz (DFL-St. Louis Park) are the sponsors.

An appropriation from the driver and vehicle services operating account of $382,000 for fiscal year 2026 to expand the ignition interlock program is effective July 1, 2025.

HF2130*/SF2068/CH29



State Government
2025-2026 Regular Session

Annual revisor’s law makes miscellaneous minor changes

The annual revisor’s law makes miscellaneous and technical corrections to laws and statutes, corrects erroneous, obsolete, and omitted text and references, corrects poor grammar, and removes redundant, conflicting, and superseded provisions.

Sponsored by Rep. Peggy Scott (R-Andover) and Sen. Warren Limmer (R-Maple Grove), the effective dates are dependent on provisions needing clarification.

HF3022*/SF3289/CH20



State Government
2025-2026 Regular Session

Former Rep. Mary Murphy honored with library grant program name change

Rep. Mary Murphy was the longest serving woman in the history of the House.

Representing her district near Duluth from 1977 to 2023, the DFLer from Hermantown championed the library construction grant program.

To honor the memory of Murphy, who died from complications of a stroke on Dec. 25, 2024, at age 85, the library construction grants program will be known as the “Mary C. Murphy Library Construction Grants Program.”

A competitive dollar-for-dollar matching grant program, it provides public libraries with funding for renovation, construction, and improvement projects for more accessible facilities. Libraries can receive up to $450,000 to remove architectural barriers and up to $1 million to renovate or expand an existing building or construct a new library.

The law, effective May 20, 2025, is sponsored by Rep. Fue Lee (DFL-Mpls) and Sen. Sandra Pappas (DFL-St Paul).

HF1090*/SF1661/CH25



State Government
2025-2026 Regular Session

State and local government, elections funding and policy changes

Ensuring the government functions for the people is a key component of the omnibus state and local government and elections law.

The $1.35 billion spending package for the 2026-27 biennium is a $46.5 million increase over forecast base and contains a plethora of policy provisions.

Rep. Ginny Klevorn (DFL-Plymouth) and Sen. Tou Xiong (DFL-Maplewood) sponsor the law that takes effect July 1, 2025, unless otherwise noted.

HF2783/SF3045*/CH39

State government funding

Most state agencies and departments will get an operating increase, in many cases to maintain current levels of service.

Among the increases are legislative operating adjustments of $23.2 million, including $13.92 million for the House, $4.62 million for the Senate, and almost $3.96 million for the Legislative Coordinating Commission.

Also included is $579,000 for the Office of the Legislative Auditor to produce an annual report showing if identified recommendations by the office during the prior five years in a financial audit, program evaluation, or special review have been implemented.

Almost $3.34 million in new funding is to the Office of the State Auditor: $2.04 million operating adjustment, $560,000 to add two auditors, $456,000 for data warehouse purposes and $283,000 for two trainers to support public finance staff.

For the Administration Department, a $1.95 million increase is for in lieu of rent that covers maintenance and operations for entities that do not pay for their leased spaces and a $911,000 operating adjustment. However, dissolving the Infrastructure Advisory Council will save $946,000 and reducing enterprise translation office transfers will save another $300,000.

The $1.04 million increase for election purposes includes $760,000 for the Campaign Finance and Public Disclosure Board for litigation expenses in the Minnesota Chamber of Commerce vs. Choi case and $200,000 for a Help America Vote Act federal funds match.

Other non-operating adjustment increases include: $717,000 to Minnesota Management and Budget for its Office of Strategic Planning, $100,000 to the Latino Affairs Council, $100,000 to the LGBTQIA2S+ Minnesotans Council, and $55,000 in fiscal year 2026 so the Department of Children, Youth, and Families can integrate application information and a referral process for the transit assistance program into the MNbenefits web portal.

Effective May 24, 2025, the law permits agencies to carry forward unexpended and unencumbered non-grant operating balances from fiscal year 2025 into fiscal year 2026.

The law better specifies the use of a 2023 allocation and eliminates the Capitol Area community vitality account in the special revenue fund and instead appropriates the amount directly from the General Fund. It also appropriates $3 million from the account “for the Ramsey County sheriff to implement a coordinated public safety and livability plan in the Capitol Area.” (Art. 1, Secs. 2-38, 44-46; Art. 2, Sec. 66)

Elections funding

Elections spending in the bill totals $3.86 million in biennial spending, with a majority — $1.81 million in fiscal year 2026 and $1.84 million in fiscal year 2027 — going to the Campaign Finance and Public Disclosure Board.

Effective May 24, 2025, the secretary of state’s office must transfer $3 million in fiscal years 2026 and 2027 from the General Fund to the voting operations, technology, and election resources account; $200,000 in fiscal year 2026 from the General Fund to the Help America Vote Act; and $25,000 in each fiscal year from the General Fund to the Voting Rights Act cost sharing account.

Minnesota Management and Budget is now allowed to transfer $162,000 in the fiscal year of a gubernatorial election from the General Fund Contingent Account to establish a transition office for the governor-elect and to pay certain necessary and prudent expenses. The law adds transfers in fiscal year 2027 to provide the same for the attorney general-elect ($75,000), secretary of state-elect ($50,000) and state auditor-elect ($50,000). (Art. 1, Sec. 46; Art. 7, Secs. 1-3)

Fighting fraud

By Feb. 1 each year, and as resources permit, the Office of the Legislative Auditor must report to the Legislature whether an entity subject to an audit “has implemented any recommendations identified by the legislative auditor during the prior five years in a financial audit, program evaluation, or special review.” And by July 1, a report is due listing the House and Senate committees to which the legislative auditor did or did not present their report in a public hearing.

An agency will be permitted to withhold payments to a program participant for up to 60 days if there is a preponderance of evidence the participant has committed fraud to obtain payments.

State agency staff assigned grant management responsibilities must complete initial grants management training before assuming grants management job duties and must complete continuing grants management training on an annual basis.

Grant agreements will require the grantee to clearly post on their website the names and contact information for organization leadership and the person who directly manages and oversees the grant for the grantee;

The commissioner or chief executive officer of each department, board, commission, office, or other agency, must ensure that employee and nonemployee concerns about the misuse of public money, other public resources, or government data is promptly directed to an obligated officer — including the chief executive officer, deputy or assistant chief executive officer, board chair, and division or department head — or the legislative auditor’s office.

The scope of existing whistleblower protections for state employees is expanded.

The list of officers who must notify the legislative auditor’s office when they obtain information indicating that public money or other public resources may have been used for an unlawful purpose is expanded to include deputy and assistant chief executive officers, chief administration officers, chief investigative officers, heads of divisions, bureaus, departments, institutes, or other organizational units, and board chairs, where applicable.

And the legislative auditor’s office is to establish a Special Reviews Division to fulfill relevant statutory duties, including to investigate allegations that an individual or organization subject to an audit has not complied with a legal requirement. The office may periodically conduct a follow-up special review to assess what changes have occurred.

Except where a provision of law to the contrary specifically prohibiting data sharing, any government entity can disclose data relating to suspected or confirmed fraud in public programs to any other government entity, federal agency, or law enforcement agency if the access promotes the protection of public resources, promotes the integrity of public programs, or aids the law enforcement process. (Art. 2, Secs. 8-11, 16, 22-23, 39-41, 57)

State government policy

Other state government policy in the law includes provisions that will:

• establish Castoroides ohioensis, commonly known as the giant beaver, or capa in Dakota and amik in Ojibwe, as the state fossil;

• designate Ursa Minor as the state constellation;

• effective June 30, 2025, establish a retained savings program to encourage state agencies to innovate and identify efficiencies and cost savings. This expires June 30, 2030;

• require Minnesota Management and Budget to submit an annual report to the Office of the Legislative Auditor detailing the implementation status of all office recommendations issued the previous five years;

• not permit expenditure estimates in the state budget forecasts related to the amount of state bonding to include assumptions of future authorizations of state general obligation bonds;

• prohibit state entities from agreeing to certain contract terms, including automatically renewing state funds in subsequent fiscal years;

• let a retired state employee’s spouse purchase coverage for themselves under the State Employee Group Insurance Program if the retiree loses eligibility by enrolling in Medical Assistance, and has a disability that satisfies the categorical eligibility requirements of the federal Supplemental Security Income program;

• expand from 1% to 2% the regulatory fee imposed of all amounts wagered by Minnesota residents with an authorized advance deposit wagering provider;

• add the Office of Ombudsman for Long-Term Care to the list of people for whom state-provided motor vehicles are not required to be marked;

• change the Office of Administrative Hearings to the Court of Administrative Hearings;

• create a process for an agency to request a remand of a decision of an administrative law judge that may be a finding of fact, conclusion of law or recommendation;

• require state agencies to post an organizational chart online that includes the names and contact information for top officials;

• beginning Feb. 1, 2026 and annually for five subsequent years, require all state agencies to publish on their website for the previous fiscal year the total advertising spending by the agency and the total percent of advertising spent with local news organizations. This is effective Aug. 1, 2025;

• extend the due date and funding for a University of Minnesota geophysical study and hazard assessment of the St. Anthony Falls area and St. Anthony Falls cutoff wall in Minneapolis to June 30, 2026. This took effect May 24, 2025;

• define "responsible lottery official” for purposes of retailer eligibility criteria and contract conditions;

• require Minnesota Management and Budget to report to the Legislature three times in the 2026-27 biennium the number of posted executive branch job openings that have gone unfilled for at least six months;

• allow the Department of Administration to accept private funds for replacement of one of Minnesota’s two statues in the U.S. Capitol;

• repeal the Legislative Commission on Minnesota Sports Facilities, Legislative Commission on Housing Affordability, Legislative COVID-19 Response Commission and Driver and Vehicle Systems Oversight Committee;

• make largely technical changes to statutes regarding state personnel management;

• modify education and reciprocity requirements for certified public accountants, including provisions effective May 24, 2025, and Jan. 1, 2026;

• modify Board of Cosmetology requirements for cosmetologists and hair technicians relating to textured hair;

• effective May 24, 2025, allow the Office of the Secretary of State to assess an up to $40 late penalty when a person files for renewal or reinstatement of business entity that was administratively dissolved;

• effective May 24, 2025, establish a process to challenge and remove fraudulent business filings filed with the Office of the secretary of State; and

• effective May 24, 2025, require solicitations, as defined, to include certain information, be formatted in a specific way, and include a disclaimer. (Art. 1, Sec. 41; Art. 2, Secs. 1-3, 5, 17-18, 21, 24-26, 29-30, 45, 52, 58-62, 66, 69; Art. 3, Secs. 1-30; Art. 4, Secs. 1-4, 13-16; Art. 5, Secs. 1-2, 5-11, 13)

Local government policy

The law amends the state’s open meeting laws by removing restrictions so members of a public body can participate remotely in a meeting from a location that is not open and accessible to the public without limitation. Before the change a member could participate from a nonpublic location up to three times a year and only if they were serving in the military or had personal or family medical reasons for not being in a public place.

The law will also:

• create a Ramsey County Economic Development Authority upon compliance with the local approval requirements. The Ramsey County Housing and Development Authority's powers will expand to include the economic authority's powers;

• permit St. Louis County to have more than two deputy administrators;

• give statutory cities the option to establish a public utilities commission with three, five, or seven members with staggered terms;

• allow statutory city public utility commission membership to be increased or decreased by ordinance, but will be subject to a reverse referendum;

• require cities and towns to provide landlords with a link to the attorney general’s landlord-tenant guide upon issuance or renewal of a rental license, or registration or certificate of occupancy;

• let certain individuals who volunteer to provide emergency services to purchase tires for their personal vehicles under the contract that the city, town, or fire department uses to purchase vehicle tires;

• double the maximum reimbursement amounts — to $3,000 for single- and two-family residential property and minimum damage acquisitions and $10,000 for other types of property — for an appraisal of property conducted for a property owner whose property is to be acquired through eminent domain;

• permit public water district, sewer district, and combination water and sewer districts to install water and sewer lines and ancillary infrastructure within public road right-of-way;

• permit public notice postings on a political subdivision’s website and the Minnesota Newspaper Association’s statewide public notice website when no qualified newspaper is available for publication;

• effective Aug. 1, 2025, increase the annual revenue threshold that a town, standard plan statutory city, or statutory city, plan A, with combined the offices of clerk and treasurer must have an annual financial audit;

• decrease the Swift County Joint Powers Hospital District membership to six voting members. This is effective upon compliance with the local approval requirements. (Art. 6, Secs. 1-18)

Elections policy

The law establishes deadlines for the submission of absentee ballot applications.

Applications not submitted in person must be received at least seven days before the election. If an application is received after 5 p.m. seven days prior to the election, the official in charge of the absentee ballot board must attempt to contact the applicant by telephone or email to notify the applicant of other opportunities to vote in the election. Attempts must be documented.

Within seven days of an election, the secretary of state’s office must replace the online absentee ballot application with information detailing the available options to vote before and on the upcoming election day.

A person using the online application to request an absentee ballot applicant will, effective Jan. 1, 2026, need to provide both a Minnesota driver’s license or state ID card number and the last four digits of their Social Security Number, unless the applicant affirmatively certifies that they do not possess one of those numbers.

The delivery of an absentee ballot application by someone other than the voter must be returned within seven days, rather than the previous 10, after the voter dates the application, and no later than seven days prior to the election.

The law also makes changes about encouraging someone to request an absentee ballot.

Effective Jan. 1, 2026, a person or entity mailing an absentee ballot application or sample ballot must include the following statement in a way that is clearly visible when the mailing is opened: "This mailing is not an official election communication from a unit of government. This [absentee ballot application or sample ballot] has not been included at the request of a government official." If a sample ballot is enclosed, the statement must also include the following: "This is a sample ballot, not an official ballot. You cannot cast the enclosed sample ballot."

Further, the sender of the sample ballot or absentee ballot application must include their name and street address in the return address position on the mailing envelope. If an absentee ballot application is included, the space on the application to indicate the applicant's preference to join the permanent absentee voter list must be left blank and may only be marked by the applicant.

The law also amends the handling of absentee ballot signature envelopes. It requires counting, cross-checking, and accounting for empty signature and ballot envelopes at various steps in the process. Discrepancies in the count must be noted in the ballot board incident log and reported to the official responsible for the ballot board. All envelopes must be retained for the duration of the contest period.

The law requires the early voting official to take certain actions to remove, secure, and document ballots each day during the early voting period. This takes effective upon the revisor of statute’s receipt of the early voting certification and applies to elections held on or after the 85th day after the revisor receives the certification.

Effective May 24, 2025, a county auditor must develop a county elections chain of custody plan to be used in all state, county, municipal, school district, and special district elections held in that county. The plan must be filed with the secretary of state’s office by June 1, 2026. (Art. 8, Secs. 18, 25, 33, 40, 52)

Other elections policy includes:

• effective Sept. 1, 2025, if additional early absentee polling places are authorized, the county auditor and secretary of state’s office must post notice on their respective websites, including a polling place’s address and the dates and times it will be open for voting;

• adding to the election judge oath that the judge will not share information about voting that the judge knows to be materially false and the judge will not intentionally hinder, interfere with, or prevent a person from voting, registering to vote, or aiding another person in voting. This is effective Jan. 1, 2026;

• effective Nov. 15, 2025, for elections beginning Jan. 1, 2026, jurisdictions that conduct elections by mail must send ballots no later than 28 days rather than 14 before any election;

• amending sections of law to specifically refer to or allow for updating voter registrations;

• allowing additional proof of residence for students during the 18 days before an election and on Election Day;

• effective Jan. 1, 2026, and for elections held after Feb. 6, 2026, requiring an updated residential student housing list to be certified to the county auditor no later than 35 days before each election, instead of 20 days;

• effective Jan. 1, 2026, the secretary of state’s office and county auditors must provide a public information list within five business days of receiving a complete request. Current law is 10 days;

• effective Jan. 1, 2026, an affidavit of candidacy must include a phonetic spelling or pronunciation of the candidate’s name or a certification that the candidate will use the applicable technology’s default pronunciation;

• effective May 24, 2025, candidates for judicial office, county attorney, and county sheriff are not required to include their address on the affidavit of candidacy;

• polling places cannot be at, or in an adjoining room to, a location where cannabis products are served or sold;

• a notice must be posted in a conspicuous place if a polling place is changed. The notice must include the location of the new polling place; and

• each precinct using electronic rosters must ?— no longer shall — have a paper backup system to use if election judges cannot use the electronic roster (Art. 8, Secs. 1-23, 32, 41, 49-50, 53, 60-64, 67-71)

Campaign finance policy includes:

• effective May 24, 2025, the Campaign Finance and Public Disclosure Board must publish on its website by Jan. 15, 2026, a lobbying handbook “written in plain language”;

• effective June 1, 2025, amending the definitions of expert witness, lobbyist, local official, noncampaign disbursement, official action of a political subdivision for campaign finance purposes;

• effective Jan. 1, 2026, a candidate or their principal campaign committee must not solicit or accept any contributions or make any expenditures for inaugural event expenses or transition expenses except through the candidate’s principal campaign committee or as provided through the statutes providing state resources for transition funds; and

• also effective Jan. 1, 2026, a candidate for constitutional or legislative office must report to the board the next business day when they make a contribution or loan to their own campaign committee that exceeds the contribution limit. (Art. 7, Secs. 4-7, 11, 13)



State Government
2025-2026 Regular Session

Annual revisor’s law makes technical changes

The annual revisor’s law makes miscellaneous and technical corrections to laws and statutes, corrects erroneous, obsolete, and omitted text and references, corrects poor grammar, and removes redundant, conflicting, and superseded provisions.

Sponsored by Rep. Tina Liebling (DFL-Rochester) and Sen. Warren Limmer (R-Maple Grove), the effective dates are dependent on provisions needing clarification.

2025 Special Session: SSHF10/SSSF9*/CH11




Years before 2005 are distributed in PDF format and are available through the new laws main page.

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