Plethora of policy, funding changes for state and local governments, election activity

State and local government policy, funding state government, and elections-related changes are included in one new law.

Among the addressed issues are a new state flag and seal, maintaining effective levels of government service for Minnesotans, and when the Legislature meets.

Rep. Ginny Klevorn (DFL-Plymouth) and Sen. Erin Murphy (DFL-St. Paul) sponsor the law, that takes effect July 1, 2023, unless otherwise noted.

HF1830*/SF1426/CH62

Dollars and cents

The law calls for $1.53 billion in net General Fund 2023-25 biennial spending, $410 million over base. It includes additional spending for the state’s constitutional offices, more than 30 boards, agencies and councils, and the Administration and Revenue departments. Much of the increase is to maintain current levels of service.

When it comes to legislative spending, the law provides a $75.44 million increase over base: $49.9 million for the Legislative Coordinating Commission, including $23.21 million for IT upgrades, $14 million for a new bill drafting system for the Office of the Revisor of Statutes, and nearly $10.46 million in operating adjustment; $15.74 million for the House; and $9.8 million for the Senate. These latter two include $3,500 member pay increases as recommended by the Legislative Salary Council. House members daily per diem will also increase from $66 to $86 to match senators. (Art. 1, Sec. 2)

Funding increases for the constitutional officers include: $37.8 million for the attorney general’s office, $11.2 million for the governor’s office, $6.22 million for the secretary of state’s office for more than a dozen purposes, and $5.03 million for the state auditor’s office. (Art. 1, Secs. 3-6)

Minnesota IT Services is to receive an additional $127.9 million in onetime funding, including $40 million to modernize targeted applications to improve user experiences with digital services provided by state agencies, almost $33.6 million for executive branch cloud transformation, $32.88 million for cybersecurity enhancements, and $600,000 to support accessible government in Minnesota. A structure will be created to allocate $5.73 million in local government cybersecurity grants called for in the law. (Art. 1, Sec. 10; Art. 6, Sec. 16)

The Department of Administration will see a $67 million increase, mostly onetime dollars, that includes $12.5 million for a transfer to the risk management fund and $5 million to implement the updated Capitol Mall Design Framework, including plans to integrate green space campuswide, creation of a mature tree canopy, and visual markers and welcome information for the Capitol Complex. (Art. 1, Sec. 11; Art. 2, Sec. 124)

Other state agency/board appropriations include:

• $53.1 million for Minnesota Management and Budget, including $27.98 million to secure the state’s enterprise resource planning system;

• $41.6 million for the Department of Revenue to maintain current service levels;

• $9.7 million to help counties fund the perpetuation of monuments that mark public land survey corners;

• $9.39 million to the Minnesota Historical Society for historic site asset preservation;

• $2.5 million onetime for the Minnesota Humanities Center to award cultural awareness programs and grants;

• $2.47 million to establish an Office of Enterprise Translations that’ll, in part, provide translation services for written material for executive agencies and create language-specific webpages in Spanish, Hmong, Somali, and other languages determined by the Department of Administration;

• $1 million for a geophysical study and hazard assessment of the St. Anthony Falls area and St. Anthony Falls cutoff wall in Minneapolis;

• $999,000 to establish the Council on LGBTQIA2S+ Minnesotans;

• $986,000 for the Minnesota Amateur Sports Commission, including $850,000 for upgrades to the National Sports Center roof to support the installation of solar panels;

• $878,000 for the Office of Collaboration and Dispute Resolution to “assist state agencies; offices of the executive, legislative, and judicial branches; Tribal governments; and units of local government in improving collaboration, dispute resolution, and public engagement”;

• $750,000 onetime to the Science Museum of Minnesota for revenue recovery; and

• $500,000 onetime for the Capitol Area Architectural Board to support commemorative artwork activities. (Art. 1, Secs. 12-14, 18, 23-24, 26, 46-47; Art. 2, Secs. 34, 70, 111, 128)

Compensation Council salary recommendations for the state’s constitutional officers — 9% increase July 1, 2023, and 7.5% bump effective July 1, 2024 — is adopted.

Effective May 27, 2023, the council will also determine agency head salaries, and the limit of 133% of the governor’s salary is eliminated. A dozen positions are added to the list of salaries to be determined by the council. The makeup of the council is also changed.

Further, in odd-number years, the council will establish salaries for constitutional officers, Supreme Court justices, Court of Appeals and district court judges, and the heads of some state and metropolitan agencies. Those numbers will take effect that July 1 unless the Legislature by law decides differently.

The law provides terms and conditions for legislative employees to be determined by collective bargaining agreement if an exclusive representative is elected. (Art. 2, Secs. 38, 40-43, 125-126, 130, 132)

Legislative changes

Beginning with the 2025 session, the session start date will be “the first Tuesday after the second Monday in January of each odd-numbered year.” Additionally, a legislative day will be redefined to when either body “gives any bill a third reading, adopts a rule of procedure or organization, elects a university regent, confirms a gubernatorial appointment, or votes to override a gubernatorial veto.” Current statute describes a legislative day as “a day when either house of the legislature is called to order.”

The electrolier hanging in the Capitol Rotunda will be lit on days the Legislature meets in regular or special session and at other special events when requested jointly by the House and Senate.

Effective July 1, 2025, if the governor vetoes funding for the House, Senate, Legislative Coordinating Commission or any other joint legislative office, council, or commission, the General Fund appropriation base plus 3% is appropriated in the next fiscal year. This change is in addition to a new, ongoing statutory appropriation for member expenses.

For gubernatorial appointments that require Senate or House confirmation, effective Jan. 1. 2027, if the Senate or House, as applicable, has not acted to reject an appointment within 60 legislative days after receipt of the appointment letter the body has consented to the appointment. (Art. 2, Secs. 7-8, 11, 36, 92)

New state flag, seal

The law includes $35,000 to fund a 13-member State Emblems Redesign Commission to develop and adopt a new design for the official state flag and official state seal no later than Jan. 1, 2024.

Per the law, “The designs must accurately and respectfully reflect Minnesota's shared history, resources, and diverse cultural communities. Symbols, emblems, or likenesses that represent only a single community or person, regardless of whether real or stylized, may not be included in a design.”

Effective May 11, 2024, designs certified by the commission are the new state flag and seal. (Art. 1, Sec. 24; Art. 2, Secs. 1-5, 118)

Other state government policy

Among policy changes the law will:

• require a state agency to perform a financial review of grant and business subsidy recipients when at least $50,000 is to be allotted;

• require the Administration Department to assess the viability of implementing a single grants management system for executive agencies;

• create a consumer litigation account that the attorney general may authorize distributions for specific purposes related to multistate consumer litigation;

• the Office of Enterprise Sustainability is given permanent status in statute, to “assist state agencies in making measurable progress toward improving the sustainability of government operations by reducing the impact on the environment, controlling unnecessary waste of natural resources and public funds, and spurring innovation”;

• a Working Group on Youth Intervention is established “to develop recommendations on the design of a regional system of care for youth interventions, sustainable financing models, and alternatives to criminal penalties”;

• expand types of collateral that the state’s Executive Council may approve as sufficient to secure state funds;

• prohibit a current employee of an entity in the executive or judicial branch to serve on the Legislative Salary Council;

• require Minnesota Management and Budget to develop a statewide system of economic, social, and environmental performance measures;

• create a Legislative Task Force on Aging to review and develop state resources for an aging demographic; identify and prioritize necessary support for an aging population through statewide and local endeavors for people to remain in their communities; and ensure all aging-related state policies are inclusive of race, gender, ethnicity, culture, sexual orientation, abilities, and other characteristics that reflect the full population of the state”;

• establish an Infrastructure Resilience Advisory Task Force “to evaluate issues related to coordination, sustainability, resiliency, and federal funding on state, local, and private infrastructure in the state”;

• require the Administration Department to review unique issues of small agencies and examine if the current support model is adequate;

• set Dec. 6 as a deadline for delivery of the November state budget forecast;

• replace Columbus Day with Indigenous Peoples Day;

• change the effective date of a Juneteenth law enacted earlier this session to Feb. 4, 2023;

• adopt some recommendations from a January 2021 report of the Advisory Task Force on State Employment and Retention of Employees with Disabilities;

• designate the Bill and Bonnie Daniels Firefighters Hall and Museum in Minneapolis as the state fire museum;

• encourage schools to offer instruction about Hmong history in honor of Hmong Special Guerilla Units Remembrance Day on May 14, or the Friday preceding if May 14 is a Saturday or Sunday;

• create a license for hair technicians, and, effective July 1, 2024, establish applicant requirements and training;

• require suitable space be provided in the Capitol Complex for the Capitol Barber being displaced during the State Office Building renovation;

• ensure any reuse or replacement of the Ford Building site include mixed-use development and ground-level space for locally owned businesses;

• permit the Legislative Commission on Cybersecurity to conduct closed meetings; and

• designate information and technology systems and services infrastructure are as critical infrastructure, and the governor can declare a peacetime emergency in response to a cyberattack; and

• require an annual report to the Legislature on executive branch cloud computing adoption. (Art. 2, Secs. 6, 19-20, 28-29, 32, 44, 51-52, 115-117, 119-123, 129, 133; Art. 6, Secs. 1-4, 12, 14; Art. 7, Sec. 11; Art. 8, Secs. 1-24)

Local government policy

Potentially the most notable change the public will notice in local government-related changes is a city can allow a private property owner, authorized agent, or occupant to install and maintain a managed natural landscape. Plants and grasses more than 8 inches tall that have gone to seed will be permitted, but not noxious weeds. (Art. 3, Sec. 9)

Other local government changes will:

• eliminate the local official salary cap;

• delete the state of emergency requirement so members of certain public bodies can participate remotely up to three times a year due to medical concerns;

• effective May 27, 2023, expand the eligibility of counties and cities that can use certain long-term equity investments:

• allow a city or town to require hotels operating in their boundary to be licensed by the city or town;

• effective upon local enactment, let Anoka and Ramsey counties replace existing library boards with advisory boards;

• provide procedures for a municipality to award a contract to a construction manager at risk;

• remove a requirement that the director of the Metropolitan Mosquito Control District be an entomologist;

• effective upon local approval, an on-sale intoxicating liquor license can be issue to a restaurant in the St. Cloud Regional Airport;

• expand the authority to create, expand, or enlarge special service districts; and

• let St. Paul solicit and award a design-build contract for the East Side Skate Park project at Eastside Heritage Park based on a best value selection process. (Art. 3, Secs. 2-7, 12, 15-16, 18-21-22)

Elections

General Fund spending of almost $24.6 million in fiscal years 2023-25 is called for, a $10 million increase. That includes $2.5 million to assist local governments with election infrastructure and staffing.

Among voting changes in the law, a voter can cast a ballot using a live ballot box during the 18 days prior to an election at locations designated by the county auditor or municipal clerk; an employee can be absent from work without lost wages or other penalty for the needed time to vote during the 46 days prior to an election; the deadline for delivery of an absentee ballot is extended from 3 p.m. to 8 p.m. on Election Day; and an electronic signature is permitted on an electronic polling place roster. (Art. 4, Secs. 41-42, 44, 90)

Penalties will be established for intimidation and interference related to an election judge performing their official duties and tampering with the statewide voter registration system, registration list or polling place roster. (Art. 4, Sec. 128)

Other policy includes:

• state law would show Minnesota’s ratification of the Agreement Among the States to Elect the President by National Popular Vote, an interstate compact that’d guarantee the presidency to the candidate receiving the most popular votes across all 50 states and the District of Columbia;

• effective May 27, 2023, definition of a major political party changes so a party’s candidate in a state general election must receive at least 8% (up from 5%) of the votes at the most recent state general election, or submit signatures equal to 8% of the total number of individuals voting at the most recent state general election on or after Nov. 7, 2024;

• permitting a U.S. Census employee access to multiple-unit residential facilities for official business;

• letting students appointed as trainee election judges to continue to serve until age 18;

• eliminating the three-person limit on the number of voters a person can assist on Election Day;

• a voting operations, technology, and election resources account will be established to help local units of government with election expenditures;

• a handful of minor House and Senate district boundary changes;

• all postsecondary institutions accepting state or federal financial aid must maintain a webpage to help students determine where and how they are eligible to vote, among other requirements;

• effective May 27, 2023, certain forms of incentive-based compensation for collection of absentee ballot applications is prohibited;

• the Office of the Secretary of State is required to study issues related to voter engagement, education, and improvements to the election system, which may include ranked-choice voting;

• lobbyist registration requirements are expanded to include all political subdivisions; and

• a principal campaign committee, political committee, political fund, or party unit may accept a monetary contribution via a mobile payment or virtual currency. (Art. 4, Secs. 1-6, 9, 23, 79, 93, 124-125, 136; Art. 7, Secs. 5, 28-29)

HF1830* / SF1426 / CH62