Skip to main content Skip to office menu Skip to footer
Capital IconMinnesota Legislature

Virtual currency kiosks to be banned in the state

Beginning Aug. 1, 2026, virtual currency kiosks will be banned in Minnesota.

Virtual currency kiosk operators have until Dec. 31, 2026, to remove kiosks from any location where they are visible or accessible to the public.

With one exception, operators who conduct virtual currency transactions exclusively through a kiosk must pay out any money or virtual currency held for or owed to a new or existing customer by Dec. 31, 2026, in a manner chosen by the customer. The payouts can be in U.S. dollars equal to the market value of the customer’s virtual currency plus any fiat currency or to a virtual currency wallet designated by the customer. If the payout is to a virtual currency wallet designated by the customer, the operator must transfer the full amount to the wallet within 30 days of the date the customer submits the payout request. The payout must be recorded on the applicable blockchain, and the operator must retain proof that a transfer was made.

A virtual currency kiosk operator is not required to make a payout if customers can still access and sell the money or virtual currency in their wallet through some other means.

The law is sponsored by Rep. Erin Koegel (DFL-Spring Lake Park) and Sen. Amanda Hemmingsen-Jaeger (DFL-Woodbury).

HF3642/SF3868*/CH65



Customers can designate ‘trusted contact’ with financial services

As part of a law taking effect Aug. 1, 2026, customers will be able to designate a trusted contact their financial services provider can contact if there’s suspected fraud in an account.

A financial institution will contact the customer’s trusted contact if:

• the customer isn’t responsive to the institution’s communications;

• there’s an emergency or urgent matter involving the customer and the institution can’t locate the customer;

• the financial institution suspects fraudulent activity or financial exploitation targeting the customer; or

• the customer’s account is deemed dormant, and the financial institution is attempting to verify the customer’s status and location.

A customer will be permitted to terminate a person’s designation as a trusted contact at any time and a trusted contact can withdraw their status at any time.

Rep. Bernie Perryman (R-St. Augusta) and Sen. Zach Duckworth (R-Lakeville) are the sponsors.

HF4502*/SF4652/CH86



Age to purchase and possess kratom raised from 18 to 21

The age for sale or possession of kratom is increasing by three years.

Effective Aug. 1, 2026, it will be a gross misdemeanor to sell kratom to a person under age 21 and a misdemeanor for a person under age 21 to possess kratom.

The current age is 18 for both.

Rep. Jessica Hansen (DFL-Burnsville) and Sen. Alice Mann (DFL-Edina) sponsor the law.

HF3453*/SF3704/CH63



Agriculture

Modifying statutes on the practice of veterinary medicine and veterinary technology

A new law makes several technical and clarifying changes in state statutes relating to the practice of veterinary medicine and veterinary technology.

Among its provisions taking effect Aug. 1, 2026, are new definitions of “telemedicine” and “teletriage,” allowing a licensed veterinarian to dispense veterinary prescription drugs without a veterinarian-client-patient relationship under certain conditions, and permitting the donation of unused veterinary drugs under certain circumstances if the accepting veterinary medical facility does not resell the drugs and instead reissues the drugs at no charge to a veterinary medical facility in need, an animal shelter or a pound.

Effective July 1, 2026, the law requires veterinary technicians to complete 16 hours of continuing education credits each licensing period. And the state Board of Veterinary Medicine’s authority will expand to revoke and suspend veterinary technicians’ licenses and add additional grounds for license revocation and suspension for veterinary technicians.

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

HF3718*/SF4069/CH53



Agriculture

DAIRI eligibility is expanded

Eligibility for grants under the Fiscal Year 2024 and Fiscal Year 2025 Dairy Assistance, Investment, Relief Initiative appropriation are broadened.

The DAIRI program provides grants to dairy farmers who enroll in the USDA Farm Service Agency’s Dairy Margin Coverage program, which offers financial assistance if the margin between the price of milk and feed costs falls below a certain level.

Because the Dairy Margin Coverage program was not open for enrollment in 2024 or 2025, farmers were unable to establish eligibility for DAIRI. DMC has since opened for enrollment at the beginning of 2026. But because DAIRI participation depended on production amounts in 2022, new dairy farmers were unable to establish eligibility.

This law allows new dairy farms to establish eligibility for DAIRI grants with their farm production history cited in the farm’s DMC enrollment.

Sponsored by Rep. Nathan Nelson (R-Hinckley) and Sen. Robert Kupec (DFL-Moorhead), the law took effect April 30, 2026.

HF3508/SF3832*/CH54



Agriculture

New law allows food banks to accept donated eggs past quality assurance date

A new law aims to reduce food waste while supplying a valuable commodity to food banks.

Taking effect Aug. 1, 2026, it will allow eggs to be donated past their quality assurance date — a point after which eggs are still safe to eat but may begin to lose flavor or quality.

Retailers are prohibited from selling Grade A eggs more than 46 days past their coded pack date.

Per the law, eggs can be donated if they remain in their original packaging, have been kept under continuous refrigeration, and reach the end consumer no more than 30 days after their quality assurance date.

The egg carton must also be marked with the name of the charitable food assistance program distributing the egg, a distribution date no more than 30 days after the quality assurance date and with the statement: “Donated Eggs – Not for Resale.”

Rep. Andrew Myers (R-Tonka Bay) and Sen. Erin Maye Quade (DFL-Apple Valley) are the sponsors.

HF3579/SF3891*/CH110



Bonding

Cash bonding bill focuses on employment and economic development projects

A $46.47 million cash law supports projects across the state with a focus on projects from the Department of Employment and Economic Development.

However the law only calls for $28.7 million in new spending because it has almost $17.77 million in cancellations from previous appropriations: North St. Paul community outreach facility, South St. Paul meat processing facility, Apple Valley transit station and $7 million in targeted grant programs.

Sponsored by Rep. Fue Lee (DFL-Mpls) and Sen. Sandra Pappas (DFL-St. Paul), the law takes effect July 1, 2026, unless noted.

HF2484*/SF2827/CH129

Employment and Economic Development

The law contains $18.98 million for the Department of Employment and Economic Development to appropriate:

• $10 million for predesign and design of updates and improvements to Grand Casino Arena in St. Paul;

• $2.25 million for environmental remediation activities and geotechnical soil corrections a public works facility in South St. Paul;

• $1.3 million for Neighborhood HealthSource to construct a new clinic in North Minneapolis;

• $1 million for design and construction of a city park at The Heights in St. Paul;

• $1 million for the Bridge for Youth to design and acquire land for a multiuse facility in Hennepin County;

• $1 million to construct a new Center for Communication and Development in Minneapolis;

• $630,000 for the Capitol Area economic development grant program;

• $500,000 for a renovation project at Haven for Heroes in Anoka;

• $400,000 for the Organization of Liberians in Minnesota to renovate their Brooklyn Park facility;

• $350,000 to expand a veteran’s memorial in Stillwater;

• $250,000 to build a regional shelter facility in Cambridge to provide comprehensive support services for families with children experiencing homelessness;

• $200,000 for the Gammelgarden Museum of Scandia for preservation and restoration purposes; and

• $100,000 for a veteran’s memorial in Ottertail.

Other Funds

The law also spends General Fund dollars in the following ways:

• $6.1 million to design the renovation of the existing water treatment plant in Apple Valley to address PFAS in the city’s drinking water supply;

• $4.5 million to Minnesota State: $3 million for systemwide demolition and $1.5 million for a legislative engagement center at Winona State University;

• $4.5 million to construct a water tower in North St. Paul;

• $2.9 million for local road improvement planning and a future Mississippi River crossing in Ramsey;

• $2.3 million for Department of Corrections’ asset preservation;

• $1.8 million for drinking water regionalization planning and assistance grants;

• $808,000 for predesign and design of a Dakota language immersion public charter school in Redwood County;

• $750,000 to erect signage along Truck Highway 610 that is designated as “Hortman Memorial Highway”;

• $650,000 for statewide drinking water contamination mitigation;

• $550,000 for administration of emergency shelter facility grants;

• $500,000 to furnish and equip a critical access dental clinic in Alexandria;

• $500,000 for installation of mobile radar infrastructure and equipment to enhance airspace and marine surveillance;

• $400,000 to acquire property and design a fire station in Medford;

• $400,000 for final design of an interchange at Trunk Highway 61 and County Highway 22 in St. Paul Park;

• $400,00 for improvements and repairs to the historic Pickwick Mill Dam in Winona County;

• $300,000 to construct wayfinding and interpretive signage for the Heroes and Heritage Interpretive Trail Loop in Dakota County; and

• $125,000 for an infectious waste study.

Article 2 of the law, effective May 28, 2026, contains miscellaneous policy, transfers, and appropriations. One provision is $800,000 from a 2023 law (amended in 2025) to implement the updated Capitol Mall Design Framework is to install a tribute recognizing Speaker Emerita Melissa Hortman, who was assassinated in June 2025. The tribute is to be incorporated into the design of a memorial garden on the State Office Building site.

Another provision transfers $3.8 million from the Workforce Development Fund in Fiscal Year 2026 to the General Fund to help the Minnesota Zoo address an operation deficiency.

And $2 million is appropriated in Fiscal Year 2027 from the State Airports Fund to construct an air traffic control tower and base building at the Duluth International Airport. The project received $5 million in the 2025 transportation law. And almost $1.27 million from the fund will be used to construct an air traffic control tower at the Mankato Regional Airport

Article 3 of the law, also effective May 28, 2026, modifies or cancels myriad previous appropriations by, for example, extending the appropriation deadline, updating the project description, and changing the name of the grantee.



Bonding

$1.24 billion capital investment law funds projects statewide, reduces car tab fees for a year

A new law will fund capital investment projects across the state focusing on transportation, public facilities authority and employment and economic development projects.

It also contains language for a onetime temporary car tab fee reduction and a Fiscal Year 2027 transfer of $254 million from the General Fund to the Highway User Tax Distribution Fund for this purpose.

Sponsored by Rep. Mary Franson (R-Alexandria) and Sen. Sandra Pappas (DFL-St. Paul), the law took effect May 28, 2026, unless noted.

[MORE: View the spreadsheet]

HF719*/SF390/CH130

Transportation

The law appropriates nearly $176.32 million for transportation projects which includes $99 million in grants to municipalities and counties for road improvements, interchange projects and reconstruction, $47 million for local road improvement fund grants and $25 million for local bridge replacement programs.

Employment and Economic Development

The law appropriates $135.4 million to the Department of Employment and Economic Development, mostly for 28 grants to political subdivisions. Funding includes $40 million for renovations to the Roy Wilkins Auditorium in St. Paul, $10 million for a skilled nursing facility in Mahnomen, $4.15 million for a South St. Paul aquatic facility, $3.6 million to construct a Minnesota Latino Museum in St. Paul, $3 million for a Mississippi Riverwalk Connection Project in St. Cloud, and $800,000 for improvements to a public works building in Osseo.

Water

The law appropriates $409.01 million for the Public Facilities Authority, including $30 million for drinking water grants, $26 million for wastewater projects, $19 million to match federal grants for the clean water revolving fund, $17 million for the emerging contaminants grant program and $15 million for lead service line replacement.

The law also appropriates $216 million across 67 grants to political subdivisions for projects including $17.5 million for a water treatment plant in Hastings, $13.22 for a sanitary sewer expansion in Rochester, $13 million for underground sanitary sewer infrastructure improvements under West Seventh Street/Trunk Highway 5 in St. Paul, $12.36 million for a structural liner along 2.6 miles of a 36-inch water main in Minneapolis and $12 million for Phase I of a new wastewater treatment facility in Goodhue County.

Education

The University of Minnesota will receive $40 million for asset preservation and $35 million for construction of a campus center on the St. Paul campus. Minnesota State is to receive $69.8 million: $64.61 million for asset preservation, $4 million for Phase 2 of capital improvements at Alexandria Technical and Community College, and $1.2 million for renovation of a gymnasium at Southwest Minnesota State University.

Construction of an education learning center in East Grand Forks to house a regional educational program for students with autism, cognitive disabilities, emotional and behavioral disorders, and other students with specific educational needs is funded with $6.5 million.

The law also provides $1.7 million for asset preservation at the Minnesota state academies and $1.3 million for Perpich Center for Arts Education asset preservation.

Department of Natural Resources

Of the $79.4 million for the Department of Natural Resources, $30 million is for asset preservation; $19.84 million goes to the state’s flood hazard mitigation grant assistance program, including $10 million for a flood mitigation infrastructure project in Moorhead; $5.6 million for Coon Rapids Dam improvements; almost $4.7 million for operational and safety improvements to the Rum River Dam in Anoka; $3.5 million is for reforestation; $3 million is for betterment of DNR buildings; $2 million each for upgrades at the Brainerd airport to support the state’s emergency response, state trail renovation, constructing a paved trail segment of the Cuyana Lakes State Trail, extending the Root River State Trail from Preston to Carimona, and constructing the rehabilitation of the historic Forestville Bridge; $840,000 for design of flood hazard mitigation projects in the Interstate 35W corridor; and $350,000 to construct a jetty and bank stabilization improvements upstream of Mississippi crossings in Champlin.

Other funding includes:

• $77 million to veterans affairs: $45.1 million for renovations at the Minnesota Veterans Home in Hastings; $17.2 million to renovate Minnesota Veterans home Building 16 in Minneapolis, and $15 million for asset preservation at the state’s veterans homes and veterans cemeteries;

• $57.83 million to the Metropolitan Council, including $15 million for the inflow and infiltration grant program and $10 million for the Metropolitan Regional Parks and Trails Grant Program, and $27.83 million for political subdivision grants that include $9.35 million for a new big cats and African animal exhibit at Como Zoo and $6 million to equip improvements at North Commons park in Minneapolis;

• $52.14 million for the Department of Corrections, including $39.21 million for asset preservation and $10.71 million to expand vocational programming space at the Faribault facility;

• $23 million to direct care and treatment asset preservation;

• $19 million for public safety-related grants to political subdivisions including Lake of the Woods County for law enforcement and government facilities and the City of Mendota Heights for a public safety and city hall facility;

• $17.5 million for public housing rehabilitation;

• $12.01 million to the Pollution Control Agency: $10.51 million for a solid waste capital assistance program and $1.5 million for the statewide drinking water contamination mitigation program;

• $10 million for newly created emergency shelter facility capital grants;

• $10 million for the Capital Asset Preservation and Replacement Account;

• $9 million for asset preservation and betterments to infrastructure and exhibits at the Minnesota Zoo;

• $5.8 million for military affairs: $3.5 million for a new hangar at the Duluth airport in support of the 148th Fighter Wing and $2.3 million in asset preservation;

• $5 million for historic sites asset preservation;

• $4.5 million for the local government roads wetland replacement program;

• $4.5 million for asset preservation at the National Sports Center;

• $2 million for the Reinvest in Minnesota Reserve Program;

• $2 million for library construction grants;

• $800,000 for Capitol Area trees; and

• $750,000 for Mighty Ducks grants.

A handful of policy provisions are in the law, including removal of a requirement from a 2023 law that an 8-foot perimeter fence and security controls are not required to be built at the Bureau of Criminal Apprehension Maryland Building site. This takes effect July 1, 2026.

Also effective that day, the state must convey for no consideration all state-owned land within the Cloquet Forestry Center to the University of Minnesota. A $1.3 million Fiscal Year 2027 General Fund appropriation “is to prepay and defease any outstanding state general obligation bonds used for improvements and betterments at the University of Minnesota Cloquet Forestry Center, and other associated financing costs to facilitate the university's goal of returning this land to the Fond du Lac Band of Lake Superior Chippewa.

An emergency shelter facility account is created in the bond proceeds fund, effective July 1, 2026. Money in the account is appropriated to the Department of Human Services to make grants for projects to improve or expand emergency shelter facility options by:

• renovating existing facilities not currently operating as emergency shelter facilities;

• renovating existing emergency shelter facilities, including major projects that address an accumulation of deferred maintenance or repair or replacement of mechanical, electrical, and safety systems and components in danger of failure;

• adding additional emergency shelter facility beds through acquisition and construction of new emergency shelter facilities; and

• improving the safety, sanitation, accessibility, and habitability of existing emergency shelter facilities,

A grant can pay for 100% of total project capital expenditures or a specified project phase, up to $7 million per project. At least 40% must be awarded to Greater Minnesota projects.



Business and Commerce

Deadline for cannabis lab testing requirements extended

A new law changes the timeline for allowing any accredited laboratory, including out-of-state facilities to test lower-potency hemp edibles and hemp-derived consumer products that don’t contain intoxicating cannabinoids.

Cannabis and hemp products can now be tested at out-of-state facilities until May 31, 2027, instead of the previous date of Jan. 1, 2026. After that date, cannabis and hemp products must be tested at a Minnesota-licensed cannabis testing facility.

Sponsored by Rep. Jessica Hanson (DFL-Burnsville) and Sen. Lindsey Port (DFL-Burnsville), the new took effect March 28, 2026.

HF3615*/SF3670/CH43



Business and Commerce

Law legalizes alcohol in nursing homes, allows local liquor provisions

A new law will allow nursing homes, boarding care homes and assisted living facilities to serve alcohol without obtaining a license or permit for service of intoxicating liquor, effective April 22, 2026.

Intoxicating liquor can only be served to the residents of the facility and their guests and only at activities or events for residents and guests on the facility’s property. The facility can’t offer alcohol for sale.

To serve alcohol, the facility must submit notice to the Department of Public Safety of its intent to allow the service of intoxicating liquor and hold a license from the Department of Health required to be a valid licensed facility.

Facilities must be open to inspections regarding the law and the Department of Public Safety can take enforcement action against the facility for violations that include service to an obviously intoxicated person, providing underage access to alcohol, and unlawful possession or storage of alcohol.

The law also allows a manufacturer or wholesaler who is engaged in selling nonalcoholic products to engage in the trade practices of the nonalcoholic product industry, if the sales and practices of selling the nonalcoholic products aren’t used as an unlawful inducement to buy alcoholic beverages. This provision is effective Aug. 1, 2026.

The new law allows counties, with the approval of the Department of Commerce, to issue seasonal on-sale licenses and seasonal on-sale malt liquor licenses to resorts, effective Aug. 1, 2026.

In Douglas County, the law will allow cities to issue a temporary on-sale intoxicating liquor license to a food truck in connection with private events in the county in which the food truck has a contract to serve food and beverages. The licenses must be limited to four consecutive days, not to exceed 12 days per year, and aren’t required to be associated with a permanent building or fixed establishment. The provision is effective upon approval by the Douglas County Board and expires one year after it takes effect.

The law’s other provisions will:

• allow St. Paul to issue on-sale intoxicating liquor licenses to the Science Museum of Minnesota and the Union Depot, effective upon approval by the St. Paul City Council;

• allow an on-sale intoxicating liquor license to be issued to any entity holding a concessions contract with the University of Minnesota Board of Regents, effective April 22, 2026;

• allow a license to sell intoxicating liquor to be issued for the campus of the College of Agriculture at the University of Minnesota, effective April 22, 2026;

• allow an on-sale intoxicating liquor license for a food hall at 800 LaSalle Ave., effective upon approval by the City of Minneapolis;

• allow Mankato to issue an on-sale wine and malt liquor intoxicating liquor license to Minnesota State University, Mankato, for events at the Taylor Center, effective upon approval by the Mankato City Council;

• allow Rochester to issue an on-sale intoxicating liquor license to the Historic Chateau Theater, effective upon approval by the Rochester City Council;

• allow Bloomington to issue an on-sale intoxicating liquor license for the Bloomington Dwan Golf Course, effective upon approval by the Bloomington City Council;

• allow Lake of the Woods County to issue temporary licenses for premises of the Baudette Arena Association, effective upon approval by the Lake of the Woods County Board;

• allow St. Louis Park to issue an on-sale intoxicating liquor license to an anchor tenant for a food hall at The Shops at West End, effective upon approval by the St. Louis Park City Council;

• allow Springfield to issue an on-sale intoxicating liquor license, an on-sale wine and strong beer license or an on-sale including Sunday intoxicating liquor license for the Springfield Area Community Center, effective upon approval by the Springfield City Council;

• allow Erhard to issue an on-sale intoxicating liquor license to the Erhard Community Park, effective upon approval by the Erhard City Council;

• allow Marshall to issue an on-sale wine and malt liquor intoxicating liquor license to Southwest Minnesota State University for events at the Schwan Regional Event Center and the recreation/athletic facility, effective upon approval by the Marshall City Council; and

• allow Brainerd to issue an intoxicating liquor license to the Northern Pacific Center, effective upon approval by the Brainerd City Council.

Rep. Tim O’Driscoll (R-Sartell) and Sen. Matt Klein (DFL-Mendota Heights) are the sponsors.

HF2027/SF2511*/CH48



Business and Commerce

Credit unions can insure accounts through credit union share guaranty corporation

Credit unions will be allowed to insure accounts through an approved credit union guaranty corporation instead of only through the National Credit Union Administration.

The corporation must be in compliance with Minnesota Statute Section 52.24 subd. 1a and be approved by the Department of Commerce.

The law makes technical changes in references to credit unions, financial institutions and federally insured finance institutions to add credit union guaranty corporations as an approved type of insurer.

Sponsored by Rep. Carlie Kotyza-Witthuhn (DFL-Eden Prairie) and Sen. Nick Frentz (DFL-North Mankato), it takes effect Aug. 1, 2026.

HF4118*/SF4444/CH56



Business and Commerce

New law modifies residential mortgage loan fees and penalties

A new law modifies the application of certain residential mortgage loan fees and penalties.

It clarifies that subdivisions 1 and 2 of Section 58.137 of state statutes don’t apply to residential mortgage loans if the loan is for investment purposes only; the borrower, guarantor or cosigner don’t occupy the residential real property; and the seller doesn’t continue to occupy the residential real property after the sale.

It also defines a debt service coverage ratio loan as a mortgage that isn’t a qualified mortgage under federal law, secured by investment property and where the loan is made based on the money the investment property will generate.

The law takes effect Aug. 1, 2026, and applies to residential mortgage loans executed on or after that date.

It’s sponsored by Rep. Keith Allen (R-Kenyon) and Sen. Zach Duckworth (R-Lakeville).

HF3437*/SF4168/CH58



Business and Commerce

New law updates telecommunications statutes

A new law repeals obsolete statutes governing regulations for telephone companies due to technological advances and price deregulations.

The Legislature ended the Public Utilities Commission’s regulation of telephone rates in 2016, and all local exchange service areas have met the condition that signifies the existence of a competitive market.

Sponsored by Rep. Ron Kresha (R-Little Falls) and Sen. Jordan Rasmusson (R-Fergus Falls), the law takes effect Aug. 1, 2026.

HF4052*/SF4496/CH73



Business and Commerce

‘Payment Transparency Act’ aims to help subcontractors get paid

Helping small businesses get paid on time and creating better working relationships is the crux of the so-called “Payment Transparency Act.”

Sponsored by Rep. Peggy Scott (R-Andover) and Sen. Ann Johnson Stewart (DFL-Wayzata) the new law aims to increase payment transparency on state agency and political subdivision construction projects, and give subcontractors not being paid the information necessary to enforce the Prompt Payment Act.

Taking effect Aug. 1, 2026, the law will require, upon written request from the contractor or subcontractor, state and local governments to provide within seven calendar days, and without charge, specified information regarding any project payment made by the public contracting agency, including date of payment and the amount. Public contracting agencies will also be required to make contact information available to subcontractors and provide that information on their website.

A contracting agency can request contractors and subcontractors use an automated internet-based system for requests if the agency has such a system.

HF1234/SF1714*/CH90



Business and Commerce

Homeowner's insurance specified exclusions prohibited when damage done by peace officer

A homeowner’s insurance policy coverage exclusion for certain circumstances involving peace officers will be banned.

Per a new law that takes effect Jan. 1, 2027, a homeowner’s insurance policy must not exclude coverage for property damage if the homeowner is an innocent third party entitled to compensation owed by a local government unit due to damage caused by a peace officer in the course of executing a search warrant or apprehending a criminal suspect, and the damage results from a peace officer’s use of chemical irritants, smoke screens or diversionary devices.

The change applies to policies offered, issued or renewed on or after the effective date.

An insurer must allow a homeowner to choose a mitigation contractor and, if necessary, an industrial hygienist to assess and remediate damage due to the use of the peace officer’s chemical irritants, smoke screens or diversionary devices. The work of the mitigation contractor or industrial hygienist must follow recognized industry standards and chemical manufacturer guidelines.

If an insurer pays benefits to or on behalf of a homeowner for the damage, the insurer is subrogated to the homeowner’s right to recover just compensation from the responsible local government unit.

Local government reimbursement may be denied only with proof the payment was obtained by fraud or the insurer acted in bad faith. An insurer can bring legal action to recover the amount if a reimbursement isn’t made and is entitled to reasonable attorney fees, costs and disbursements including interest.

If an insurer is reimbursed by a local government unit, the insurer must remit to the homeowner an amount equal to any deductible the homeowner has paid toward the damage.

Rep. Kelly Moller (DFL-Shoreview) and Sen. Bonnie Westlin (DFL-Plymouth) sponsor the law.

HF4133*/SF4406/CH68



Business and Commerce

New law bans access to nudification technology

Access to nudification technology will be banned.

Effective Aug. 1, 2026, “a person who owns or controls a website, application, software, program or other service must not allow a user to access, download or use the website, application, software, program or other service to nudify an image or video, or nudify an image or video on behalf of a user.”

Advertising or promoting any website, application, software, program or other service that nudifies a video or image will also prohibited.

A person depicted in a nudified image or video will be permitted to bring a civil action in district court against the person who violated this section for compensatory damages, including mental anguish or suffering, in an amount up to three times the actual damages sustained; punitive damages; injunctive relief; reasonable attorney fees, costs and disbursements; and other relief the court deems just and equitable.

Additionally, a violator will be subject to a civil penalty up to $500,000 for each unlawful access, download or use. Those funds will be used by the Office of Justice Programs for grants to organizations to provide direct services and advocacy for victims of sexual assault, general crime, domestic violence and child abuse.

Rep. Jessica Hanson (DFL-Burnsville) and Sen. Erin Maye Quade (DFL-Apple Valley) sponsor the law.

HF1606*/SF1119/CH72



Business and Commerce

Commerce commissioner can consult disciplinary matrix for sanctions

A new law will allow the Department of Commerce to consider the current version of the Voluntary Disciplinary Action Matrix published by the Appraisal Foundation as nonbinding guidance when establishing a sanction for a real estate appraiser.

The commissioner will retain discretion in determining the appropriate sanction based on the specific facts of the case, regardless of the matrix’s suggestions.

Sponsored by Rep. John Huot (DFL-Rosemount) and Sen. Bill Weber (R-Luverne), the law takes effect Aug. 1, 2026.

HF2400/SF2814*/CH87



Business and Commerce

Banks, credit unions can offer virtual currency custody services

A new law will allow banking institutions and credit unions to provide virtual currency custody services in a nonfiduciary capacity.

Any institution offering the services must do so in a safe and sound manner and will be required to maintain written policies and procedures governing risk management, internal controls, cybersecurity, business continuity and compliance.

At least 60 days prior to commencing virtual currency custody services, an institution must provide written notice, including the nature of the services and its risk management framework, to the Department of Commerce.

The law takes effect Aug. 1, 2026, and applies to virtual currency custody services commenced on or after that date.

It was sponsored by Rep. Bernie Perryman (R-St. Augusta) and Sen. Judy Seeberger (DFL-Afton).

HF3790*/SF3794/CH93



Business and Commerce

New law overhauls medical and adult-use cannabis supply chain

A new cannabis law will merge the medical and adult-use supply chains and create a new macrobusiness license.

Sponsored by Rep. Jessica Hanson (DFL-Burnsville) and Sen. D. Scott Dibble (DFL-Mpls), most of the law goes into effect Aug. 1, 2026.

However, a prominent portion of the law takes effect Jan. 1, 2027: elimination of the medical cannabis combination business license, creation of a macrobusiness license in its place and amending statutory provisions to reflect the changes.

Those include requiring a cannabis macrobusiness to obtain a medical cannabis manufacturing endorsement and at least one other medical cannabis endorsement.

A macrobusiness with a retail operations endorsement will be allowed to operate up to eight retail locations. If it has more than five locations, at least three will need to be in areas identified by the Office of Cannabis Management as high medical need areas. A macrobusiness with retail and medical cannabis retail operations endorsements will be required to carry and make available at each retail location all high medical need products identified by the office. Cannabis testing facilities will be allowed to prioritize the testing of high medical need products.

Under the new law, macrobusinesses that cultivate cannabis indoors will be allowed to cultivate up to 38,000 square feet of plant canopy.

Other provisions in the law will:

• effective Jan. 1, 2027, legalize a “ratio hemp-infused cannabis product” that contains no more than 100 milligrams of cannabidiol, cannabigerol, cannabinol or cannabichromene per serving, a maximum of 10 milligrams of THC per serving and 200 milligrams of THC per package for edibles and a maximum of 10 milligrams of THC per serving and two servings per container for beverages;

• simplify the Office of Cannabis Management’s annual market analysis of the cannabis industry and annual report to the Legislature;

• modify local control provisions that pertain to interim ordinances and reporting to the office;

• modify a local government's ability to cap local registration by the number of residents;

• effective May 27, 2026, allow the Office of Cannabis Management to revoke an applicant’s qualified applicant status if it determines the applicant isn’t eligible for a license under state law. The office can then deny final license authorization if the applicant’s location would violate local zoning ordinances or state fire or building codes;

• amend the true party of interest standard to allow a person who contracts with a city or county to operate a maximum of 10 municipal cannabis stores and allow a person to hold up to 33% ownership of up to four social equity businesses;

• give the Office of Cannabis Management the authority to inspect unlicensed facilities where lower-potency hemp edibles are manufactured, processed or sold and allow the office to assess civil penalties to those facilities;

• require a cannabis cultivator, macrobusiness, mezzobusiness or microbusiness with a cannabis cultivation endorsement to choose to cultivate either indoors or outdoors;

• require the Office of Cannabis Management to publish a report by Jan. 15, 2027, with recommendations on administering a psilocybin therapeutic use program;

• allow a person, cooperative or business that holds a hemp business license to hold a cannabis license; and

• require local governments with retail registration authority that perform compliance checks to annually submit data on those checks to the Office of Cannabis Management.

HF4203/SF4401*/CH123



Business and Commerce

New commerce laws affect consumer protections, businesses

Paddlewheel prize maximums are going up to $200; the maximum ticket price will increase to $5.

That is part of a new law that, additionally, will change distributions from the Consumer Protection Restitution Account and direct the Department of Commerce to study home care nursing services.

The maximum that can be deposited annually into the Consumer Protection Restitution Account will increase to $10 million. A formula will be implemented for distributions from the account to eligible consumers: the full amount up to $50,000, and then 50% of the amount over $50,000 or $50,000, whichever is less.

The new law requires the Department of Commerce to evaluate home care nursing services and, by Jan. 15, 2027, report to the Legislature on the evaluation and proposals for legislative action to support the needs of medically complex individuals and their families using home care nursing services.

Additionally, the law makes technical changes to the state’s reinsurance program, repeals the Prescription Drug Affordability Advisory Council and adds hasenpfeffer to the list of social skill games for tournaments and contests.

Sponsored by Rep. Erin Koegel (DFL-Spring Lake Park) and Sen. Matt Klein (DFL-Mendota Heights), the law takes effect Aug. 1, 2026, unless otherwise noted.

HF4188*/SF4365/CH124

Consumer protections, financial products and insurance

The Rental Home Marketplace Guarantees Act will be created by the new law. It will establish requirements for providers and state that a rental home marketplace guarantee isn’t insurance.

Other provisions will:

• clarify when a licensee engaged in virtual currency business activities can include virtual currency in the licensee’s total assets for the calculation of the licensee’s tangible net worth;

• set mortgage loan servicing standards;

• clarify student loan requirements, including providing written notice to the borrower in the case the student loan servicer changes;

• authorize a policyholder to assume responsibility for notifying all covered persons if group life, group accidental death and dismemberment or group disability income policy is canceled;

• authorize the Department of Commerce to issue a limited lines travel insurance producer license and allow a travel retailer to offer and disseminate travel insurance on behalf of or under such license under certain circumstances;

• allow a qualified insurer to offer, issue and renew short-term home health and nursing care insurance; and

• create a comprehensive framework for travel insurance to be sold in Minnesota.

When it comes to securities, the new law will establish regulations for federal crowdfunding offerings; require broker-dealers to establish written supervisory procedures, business continuity and succession plans, and physical security and cybersecurity policies and procedures; and require broker-dealers to observe high standards. The law will outline conduct considered contrary to those standards.

Health insurers and nonprofit health service plan corporations will be required to notify the Department of Commerce if the entity experiences a significant increase in total enrollees; and all health plans must reimburse clinical trainees in an amount that is at least as much as that paid to independently licensed mental health professionals if the trainee is providing alcoholism, mental health and chemical dependency services.

The state’s unclaimed property statute will be amended to define when the prepayment of a funeral or other funeral-related expenses is presumed abandoned; exempt property held in a section 529 or 529A account; and define when virtual currency is presumed abandoned.



Civil Law

Uniform Electronic Estate Planning Documents Act established

The Uniform Electronic Estate Planning Documents Act developed by the Uniform Law Commission allows estate planning documents like trusts, power of attorney, health care directives, and documents for guardianship and probate to be electronic.

The commission promotes enactment of uniform acts in areas of state law where uniformity is desirable and practical across jurisdictions.

The law, effective Aug. 1, 2026, is similar to the 2023 Uniform Electronic Wills Act that allows electronic wills.

House Republican Floor Leader Harry Niska (R-Ramsey) and Sen. Bonnie Westlin (DFL-Plymouth) are the sponsors.

HF3560/SF3602*/CH45



Civil Law

New judicial branch policy laws

A new law makes changes to some judicial branch operations.

Once the law takes effect Aug. 1, 2026, district courts will be permitted to publish a notice, summons, order or process in judicial proceedings on the official website of the Minnesota judicial branch if the judicial branch determines there is no qualified local newspaper for such notices.

A person petitioning for a dissolution or legal separation must notify the applicable county child support enforcement agency if either party is receiving public benefits. Per the new law, that requirement will apply only in cases where the dissolution or separation involves children.

Further, when an order for restitution is docketed as a civil judgment, the filing will not expire until it is satisfied or pursuant to a court order. Currently, civil judgments expire after 10 years.

Rep. Tina Liebling (DFL-Rochester) and Sen. Bonnie Westlin (DFL-Plymouth) are the sponsors.

HF3875*/SF4064/CH71



Civil Law

Termination of contracts for deed modified for victims of domestic violence

A right to petition the court to remove someone from a contract for deed when the person has committed domestic violence, sexual assault or harassment against another owner or their child is the focus of a new law.

A contract for deed is a seller-financed real estate transaction where the buyer(s) purchase a property by making installment payments directly to the seller instead of obtaining a traditional bank mortgage.

This new law that takes effect July 1, 2026, will allow an unmarried person to petition the court to terminate another person’s interest in a contract for deed when that person has been the victim of domestic violence, sexual assault or harassment from the other person, and the person who committed the assault or abuse has not resided at the property and the person petitioning has been making payments for the home or other real property that is under contract.

Rep. Kelly Moller (DFL-Shoreview) and Sen. Heather Gustafson (DFL-Vadnais Heights) are the sponsors.

HF3970*/SF3907/CH80



Civil Law

Strengthening disability rights in Minnesota Human Rights Act

The Minnesota Human Rights Act requires an employer to engage in an interactive process to provide accommodation for someone with a disability.

A new law that takes effect Aug. 1, 2026, will add language to the public policy statement of the act specifying that failure to engage in a process to determine if a reasonable accommodation exists could be classified as an unfair discriminatory practice and therefore subject to a civil remedy.

Rep. Kim Hicks (DFL-Rochester) and Sen. Erin Maye Quade (DFL-Apple Valley) are the sponsors.

HF2380/SF3210*/CH99



Civil Law

Restrictions on social media to safeguard underage users

Effective July 1, 2027, restrictions will be placed on social media to safeguard underage users by requiring age monitoring and verification for social media platforms, parental approval, and specific treatment of accounts for children under age 16 related to addictive features, paid advertising, and the creation and termination of accounts.

Notable provisions are:

• requiring verifiable parental consent to create an account for a user under age 16;

• requiring the default settings on a social media account for a child 15 years or younger to be the most private;

• requiring the social media platform to offer parental options to monitor and limit platform use when creating or continuing a child account; and

• prohibiting addictive interface features — such as infinite scrolling and push notifications — and targeted paid ads from being displayed on the account of a child 15 years of age or younger.

A private right of action will be permitted for violations, and can include both statutory and punitive damages for a reckless or knowing violation by a social media platform.

Per the new law, social media platforms that violate the law also violate the state Deceptive Trade Practices Act, which is enforceable by the state attorney general.

Rep. Peggy Scott (R-Andover) and Sen. Erin Maye Quade (DFL-Apple Valley) are the sponsors.

HF4138*/SF4696/CH111



Education

Paraprofessional competency requirements modified

Paraprofessionals who demonstrate the specified competencies must be deemed to have satisfied federal requirements for paraprofessionals.

That is the focus of a new law that took effect May 20, 2026.

Further, districts and charter schools must maintain a paraprofessional’s completed assessment and documentation within their personnel file, and the Department of Education is required to provide guidance on how to validate these competencies by Aug. 1, 2026.

Rep. Sydney Jordan (DFL-Mpls) and Sen. Doran Clark (DFL-Mpls) sponsor the law.

HF3067*/SF3368/CH107



Education

February forecast adjustments law features miscellaneous educational provisions

A new law adjusts budgets for the Department of Education, Department of Human Services, Department of Children, Youth, and Families and Metropolitan Council to match the February 2026 forecast data and contains various educational provisions.

Sponsored by Rep. Cheryl Youakim (DFL-Hopkins) and Sen. Mary Kunesh (DFL-New Brighton), the law takes effect July 1, 2026, unless otherwise noted.

The law contains several non-budget educational provisions:

• paraprofessionals who have demonstrated work skill competencies satisfy state and federal requirements for paraprofessionals;

• establishing a General Fund aid program for the state’s four tribal contract schools, equal to the amount apportioned to school districts and charter schools from the permanent school fund;

• authorizing school districts to use operating capital revenue to pay utility service costs starting in Fiscal Year 2027;

• effective May 28, 2026, extending availability of previously allocated grants for gender-neutral single-user restrooms through June 30, 2029; and

• also effective May 28, 2026, authorizing West St. Paul-Mendota Heights-Eagan ($4.5 million) and Maple Lake ($1.8 million) school districts to make permanent transfers on June 30, 2026, from their building construction funds to the reserved account for operating capital in the general fund without making levy reductions if the districts’ respective school boards approve the transfer.

HF4213/SF4282*/CH109



Education

Constitutional amendment could increase aid from permanent school fund

State voters will be asked to allow the annual distribution from the permanent school fund endowment be increased up to 4.5% of the fund’s three-year average.

The law, effective Aug. 1, 2026, requires that the proposed amendment be submitted to the people at the 2026 state general election: “Shall the Minnesota Constitution be amended to increase the funding going to all school districts from the permanent school fund, which is a fund that supports school districts without raising individual income or property taxes, effective July 1, 2027?”

If the change is approved by voters, statutes would be updated to reflect the change, effective July 1, 2027, for aid payable in Fiscal Year 2028.

Additionally, the director of the permanent school fund endowment will need to report by Aug. 15 the distributable amount to the Legislative Permanent School Fund Commission and the Department of Education.

Rep. Spencer Igo (R-Wabana Township) and Sen. Mary Kunesh (DFL-New Brighton) are the sponsors.

HF3900/SF3593*/CH114



Education

School districts must adopt anonymous threat reporting system

The board of a school district or charter school must adopt a policy to implement the use of an anonymous threat reporting system by June 30, 2027, and implementing a system by July 1, 2028.

The law taking effect July 1, 2026, establishes requirements for anonymous threat reporting systems, inclduing a 24-hour mobile application, website or toll-free hotline that can receive anonymous tips regarding dangerous, violent, threatening, harmful, or potentially harmful activity that occurs, or is threatened on, school property or relates to an enrolled student or school personnel.

School districts or charter schools that do not implement their own system must provide information to students, families, employees and the school community about the Department of Public Safety’s statewide anonymous threat reporting system.

Active data collected with anonymous threat reporting systems will be permitted to be shared among a school district, charter school, the Department of Public Safey, the Department of Education, law enforcement agencies and noncriminal justice partners.

Data will become inactive when the school district or charter school, the Department of Education, or a law enforcement agency has determined it is no longer connected to a potential risk or threat, or two years have passed following the last associated report of potential risk or threat.

The law will appropriate $4 million in Fiscal Year 2027 for grants to schools for the development, purchase, implementation, operation and maintenance of anonymous threat reporting systems. It will also appropriate $1 million in Fiscal Year 2027 to the Department of Public Safety and Bureau of Criminal Apprehension for staffing and operating costs related to threat assessment and investigations.

Compensatory education revenue

Additionally, the law will provide $10 million statewide in additional compensatory education revenue for Fiscal Year 2027 for school buildings scheduled to receive less compensatory circumstances revenue in fiscal year 2027 than in 2026. It’ll also adjust general education aid from Fiscal Years 2027 and 2028.

Rep. Cheryl Youakim (DFL-Hopkins) and Sen. Steve Cwodzinski (DFL-Eden Prairie) are the sponsors.

HF2433/SF2255*/CH117



Education

READ Act changes, diplomas for Korea, Vietnam veterans

Better late than never is one aspect of a new law.

It requires school districts and charter schools to issue, upon request, high school diplomas to veterans who to served their country during the Korean Conflict and the Vietnam War and did not finish their secondary education.

Rep. Patricia Mueller (R-Austin) and Sen. Steve Cwodzinski (DFL-Eden Prairie) sponsor the law that will also make changes to the state’s READ Act that aims to ensure every Minnesota child, beginning in kindergarten, annually reads at or above grade level, and supports multilingual learner and students receiving special education services in achieving their individualized reading goals to meet grade-level benchmarks.

The law takes effect Aug. 1, 2026, unless otherwise noted.

Per the law, any teacher candidate enrolled in a Minnesota-approved elementary, special education, or early childhood education teacher preparation program on or after June 1, 2026, will not have to take READ Act training because they get that education in their teacher preparation program.

By Oct. 1, 2026, the Education Department is to establish an ongoing review process to identify curriculum and intervention materials using the READ Act rubric that’s posted on the department’s website. This is effective May 28, 2026.

Among other changes, the law will direct a district to administer an approved reading screener to grade 4-12 students not reading at grade level at least once per year until the student reaches grade-level proficiency, require local literacy plans to include a description of how schools in the district will use the school library media center to complement students’ foundational reading skills, and allow an English language learner’s screening for the characteristics of dyslexia to be done according to vendor assessment guidelines.

And the law deals with early literacy field experience by requiring a teacher preparation program that prepares candidates to provide instruction in early literacy to provide candidates with a supervised early literacy field experience aligned to evidence-based best practices in reading consistent with the Read Act. This takes effect July 1, 2026.

HF4492*/SF4560/CH125



Elections

New law makes changes to elections, selections for three entities

A new law changes election and selection criteria for the Three Rivers Park District, Hennepin County medical examiner and Independent School District 535 in Rochester.

Candidates for the Three Rivers Park District Board will be required to file a statement of economic interest with Hennepin County within 14 days of the end of the candidate filing period. Elected officials will be required to annually file a statement of economic interest. This section takes effect Aug. 1, 2026.

The law also changes the three people who, as a Medical Examiner Board, select the Hennepin County medical examiner. The new criteria are a professor of pathology at the University of Minnesota’s Department of Laboratory Medicine and Pathology, a pathologist practicing at Hennepin Healthcare and the director of medical examiner operations at the county’s medical examiner’s office.

It changes two of the requirements for Hennepin County medical examiner applicants to include that the applicant must be eligible for a license to practice medicine in Minnesota and be board-certified in forensic pathology by the American Board of Pathology. It also changes the requirement that the Medical Examiner Board report to the county board all the applicants instead of only the top seven. This section is effective April 30, 2026.

Requirements for the Rochester School Board’s at-large elections will be removed and candidates will be required to file for specified seats. The district will be permitted to alter its organization into separate election districts despite being a district in a city of the first class. This takes effect upon school board approval for school district elections held after completion of local approval with the caveat that the local approval process must be completed by June 30, 2026, to apply to 2026 school district elections.

The law is sponsored by Rep. Mike Freiberg (DFL-Golden Valley) and Sen. Ann Johnson Stewart (DFL-Wayzata).

HF4241*/SF4660/CH55



Employment

Workers’ compensation law adds PTSD diagnosticians, adjusts disability payments

A new workers’ compensation law makes several technical and policy updates recommended by the Workers’ Compensation Advisory Council, a body with equal employer and labor representation.

It took effect May 19, 2026, unless otherwise noted. Rep. Dave Baker (R-Willmar) and Sen. Jennifer McEwen (DFL-Duluth) are the sponsors.

The law adds psychiatric mental health nurse practitioners to the list of healthcare providers allowed to diagnose post-traumatic stress disorder. This provision, effective for dates of injury on or after Oct. 1, 2026, could loosen bottlenecks for first responders and other workers seeking mental health care coverage.

Also for injuries occurring on or after that date the law updates the dollar multipliers used to calculate compensation for permanent partial disabilities, allowing increased financial payouts for injured workers who suffer permanent bodily impairment.

The law also:

• allows employees to bring an unpaid witness with them to a physical exam requested by their employer;

• extends a "pay-and-investigate" period to 90 days instead of 60 for dates of injury on or after Oct. 1, 2026, giving employers more time to investigate a claim before filing a denial;

• updates the maximum dollar limit on workers’ compensation attorney fees;

• allows judges from the Office of Administrative Hearings to serve on the Workers’ Compensation Court of Appeals when needed, and

• modifies laws that regulate internal operations of the Workers' Compensation Reinsurance Association.

HF4598/SF3720*/CH103



Employment

Pensions law includes new plans, decreased employee contributions for some members, and other enhanced benefits

This year’s pension and retirement law contains myriad good news, especially for probation officers and 911 telecommunicators, retirees of the Public Employees Police and Fire Plan, members and retirees of the Local Government Correctional Service Retirement Plan, and members of the St. Paul Teachers’ Retirement Fund Association.

The law, enacted on May 19, 2026, consists of 17 bills and many amendments approved by the Legislative Commission on Pensions and Retirement during the 2026 legislative session.

Rep. Leon Lillie (DFL-North St. Paul) and Sen. Nick Frentz (DFL-North Mankato) sponsored the law that checks in at just under $15.37 million in new Fiscal Year 2027 spending and almost $25.4 million more in the 2028-29 biennium. This includes annual state aids to the Police and Fire Plan and St. Paul Teachers Plan, appropriations to several agencies, one-time payments to the two new pension plans, and an increase in the cost to the General Fund due to a change at the State Board of Investment in allocating expenses.

[MORE: View the spreadsheet]

The 2025 pensions law required the convening of a work group to create pension plans for probation officers and 911 telecommunicators. That has been realized with the creation of the Probation and Telecommunicator Retirement Subplan that’ll be administered by the Minnesota State Retirement System (MSRS) and the Local Government Probation and Telecommunicator Retirement Plan that’ll be administered by the Public Employees Retirement Association (PERA).

Per a commission summary of the 2026 law, “Employees who meet the definition of either “probation officer” or “public safety telecommunicator” are required to participate in the Subplan. Any eligible employee who is currently a member of the MSRS General Plan will be transferred to the Subplan on January 1, 2027, except employees who are age 60 or older with three years of service in the MSRS General Plan on January 1, 2027.” Members of the new MSRS Subplan will be eligible for a full retirement annuity at age 60 rather than age 66, paid for by increased employer and employee contributions.

The PERA Local Government Probation and Telecommunicator Retirement Plan will feature full retirement at age 60 and an increased benefit formula multiplier of 1.9%, up from the General Plan’s 1.7% multiplier, paid for by employee contributions increasing to 8.82% of pay, up from the PERA General Plan’s 6.5%. Probation officers and telecommunicators eligible for the Rule of 90 will stay in the PERA General Plan.

For both newly created plans, employee contributions rates are reduced for the first 20 months (through August 2028).

Per the summary, “For the MSRS Subplan, instead of paying the General Plan rate of 6% of pay plus 2.71% of pay, members will pay the General Plan rate of 6% of pay plus an additional 2% of pay through August 2028. Beginning in September 2028, the total employee contribution rate will increase from 8% of pay to 8.71% of pay….For the PERA Plan, instead of paying 8.82% of pay, members will pay 8% of pay through August 2028. Beginning in September 2028, the employee contribution rate will increase from 8% of pay to 8.82% of pay.”

The new pension plans take effect Jan. 1, 2027.

Another key point of the law is providing $8 million in direct state aid to the Public Employees Police and Fire Plan by Oct. 1, 2026, and each Oct. 1 thereafter to fund reducing a postretirement adjustment — or COLA — delay. This will reduce the waiting period for a retiree to receive a full COLA from 24 months to 12 months. The removal of the COLA delay is effective for COLAs beginning on or after Jan. 1, 2027.

Employees in the Local Government Correctional Service Retirement Plan will see their contribution rate decrease from 6.83% to 6% or pay, the employer contribution rate will decrease from 10.25% to 9% of pay, and the COLA maximum will increase from 2.5% to 3%. The contribution decreases are effective Jan. 1, 2027, and the increased COLA maximum is effective for COLAs beginning on or after Jan. 1, 2027.

The law also includes $3.4 million per fiscal year for lowering by 1% the employee contribution rate for members of the St. Paul Teachers’ Retirement Fund Association. This reduction means that members will contribute 8% of pay, which matches the contribution rate for members of the Teachers Retirement Association (TRA). The employee contribution decrease is effective July 1, 2026.

A pair of work groups are ordered to meet during the interim between the 2026 and 2027 legislative sessions and recommend potential legislation.

Among the charges for the Work Group on Vesting and Emergency Medical Providers in Firefighter Relief Associations and the Statewide Volunteer Firefighter Plan is to shorten the maximum permitted vesting requirement from 20 years to 10 years and require volunteer or paid on-call emergency medical providers to be included in fire relief associations and the Statewide Volunteer Firefighter Plan.

The Work Group on Duty Disability and the Public Safety Officer’s Benefit Account is to make recommendations for reforming the duty disability process for members of the PERA Police & Fire Plan and ensuring plan members who become duty disabled or retire before age 65 have access to affordable health insurance coverage until they are Medicare eligible.

In addition to numerous administrative and technical changes, other aspects of the law that took effect May 20, 2026, unless otherwise noted, include:

• effective July 1, 2026, allowing two deputy state fire marshals who missed making the election for special coverage to make the election and pay the missed employee contributions plus interest—the employer must then pay the missed employer contributions plus interest;

• reducing from 62 to 59 1/2 the age at which a teacher covered by TRA can enter into a return-to-work agreement before the effective date of retirement and still commence receipt of a retirement annuity from TRA;

• upon various effective dates in 2026 and 2027, requiring the employer of a reemployed annuitant (i.e., retirees who receive a government pension but return to public-sector work) to make employer contributions to the applicable pension plan administered by MSRS, PERA, or TRA—employers were previously exempt from making these contributions;

• providing changes associated with the Maple Plain Fire Department terminating its participation in the Statewide Volunteer Firefighter Plan;

• for the Minnesota Secure Choice Retirement Program, eliminating the requirement that employers provide information to employees about the Program and the related penalty and making administrative and operational changes to the statutes governing the Program, which opened for enrollment in January 2026;

• allowing elected officials to participate in the Health Care Savings Plan administered by MSRS by allowing contributions to be defined in a participation plan or resolution of a governing body;

• requiring Minnesota State to locate a specific eligible person's missing IRAP account or pay the eligible person $30,000; and

• upon local approval, requiring the City of Minneapolis to purchase credit for periods of missed service for a former employee.

HF4074*/SF4276/CH106



Energy

Community solar garden program renamed in Hortman’s honor

The state’s community solar garden program is now the “Melissa Hortman Community Solar Garden Program.”

Speaker Emerita Melissa Hortman (DFL-Brooklyn Park) was chair of the House Energy Finance and Policy Committee when she sponsored legislation to create the program, which was launched in 2013 to help residents and businesses benefit from solar energy without installing their own panels. The country’s first of its kind, it became a model for other states creating their own programs.

Hortman was assassinated in June 2025.

This law took effect April 15, 2026. It’s sponsored by Rep. Patty Acomb (DFL-Minnetonka) and Sen. John Hoffman (DFL-Champlin).

HF3556*/SF3800/CH44



Energy

Certificate of need requirement for large energy facilities has a new exemption

Any utility applying to site or construct a large energy facility in Minnesota must apply to the Public Utilities Commission and present a “determination of need” that shows that demand for electricity cannot be met more cost effectively through energy conservation and load-management measures.

But there are several exemptions to the requirement available, and a new law adds another.

It allows utilities to bypass the certificate of need process if upgrading or rebuilding an existing electric line and associated facilities with a capacity of less than 100 kilovolts to a high-voltage transmission line with a capacity of 115 kilovolts. The exemption is available provided that at least 80% of the length of the upgrade or rebuilt high-voltage transmission line in Minnesota is located along an existing electric line right-of-way.

Sponsored by Rep. Athena Hollins (DFL-St. Paul) and Sen. Nick Frentz (DFL-North Mankato), the law took effect April 22, 2026, and applies to any applicable project for which upgrading or rebuilding has begun on or after that date.

HF3802*/SF3760/CH47



Energy

Dig this: Gopher State One Call must employ electronic notice to excavators

Be it before planting a tree, starting a garden or planning a larger-scale excavation, Minnesotans have, since 1988, been directed to contact Gopher State One Call to establish where utility pipes, wires or cables may lie before they put a shovel in the ground.

Gopher State One Call is a central notification center that contacts the operators of underground utility facilities in the area and requests that, within a certain period, they mark the location of their facilities in the area of a proposed excavation or planned survey with paint or ?ags or determine the work area is clear.

Sponsored by Rep. Larry Kraft (DFL-St. Louis Park) and Sen. John Hoffman (DFL-Champlin), a new law will require underground utility facility operators to provide an electronic notice to the notification center regarding the status of its marking of utilities in the excavation area. It will also require the notification center to provide that electronic notice to the excavator or land surveyor. This portion of the law takes effect Aug. 1, 2026.

Kraft compared it to being able to track a package on a delivery service’s website, as those requesting information to safely dig can follow the activity online.

Operators will also be required to provide up-to-date contact information to the notification center as soon as practicable after a change, and at least quarterly. This takes effect Jan. 1, 2027.

HF4233/SF4339*/CH112



Energy

Reimbursement fund established to replace outdated piping

The Petroleum Tank Release Cleanup Fund (commonly known as the “Petrofund”) is used to reimburse eligible applicants for up to 90% of costs they incur in responding to a petroleum tank leak.

A new law taking effect Aug. 1, 2026, will establish that a portion of the fund can be used to reimburse owners of underground petroleum storage tanks for 50% of the cost of replacing single-walled steel piping and related equipment with piping and equipment that meets all current state and federal standards.

Sponsored by Rep. Shane Mekeland (R-Clear Lake) and Sen. Bill Weber (R-Luverne), this law will allow up to $4 million of the “Petrofund” to be used annually for such reimbursements, for replacement projects beginning after Jan. 1, 2027.

To qualify for the reimbursement, owners must consider at least two bids and select the lowest bid, which the Petroleum Tank Release Compensation Board must determine is reasonable.

The program expires June 30, 2037.

HF3298*/SF3477/CH113



Environment and Natural Resources

Requirements added for state park license plate contest

Change have been made to a law requiring the Department of Natural Resources to hold a contest to select a new design for the state park license plate.

The new law adds requirements of the contest, including requiring that the design:

• celebrate the North Shore and the Lake Superior Agate;

• not be created using artificial intelligence;

• be created by a Minnesota resident; and

• be selected by Dec. 18, 2026.

Rep. David Gottfried (DFL-Shoreview) and Sen. Grant Hauschild (DFL-Hermantown) sponsor the law that took effect April 30, 2026.

HF3699*/SF4374/CH57



Environment and Natural Resources

Tribal governments added to wastewater pollutant discharge notification

The Pollution Control Agency must be notified of all discharges, accidental or otherwise, of any substance or material under its control that, if not recovered, may cause pollution of state waters.

If the discharge comes from a publicly owned treatment works or a publicly or privately owned domestic sewer system, the owner must notify the potentially affected public and any downstream drinking water facility that may be affected by the discharge.

A new law, effective Aug. 1, 2026, adds downstream tribal governments to the list of those to be promptly notified.

Rep. Peter Fischer (DFL-Maplewood) and Sen. Mary Kunesh (DFL-New Brighton) sponsor the law.

HF4224*/SF4525/CH79



Environment and Natural Resources

Environment and Natural Resources Trust Fund supports $130.22 million in projects

Nearly $102.04 million in Fiscal Year 2027 from the Environment and Natural Resources Trust Fund is targeted for 108 projects aimed at environmental protection, conservation, preservation and enhancement.

This includes land acquisition, data collection and research, environmental education, invasive species management, and habitat restoration.

[MORE: View the list of funded projects]

The projects and amounts awarded are selected based on recommendations of the Legislative-Citizen Commission on Minnesota Resources. Fund money is generated by state lottery proceeds and investment income.

An additional $28.18 million from the fund goes to the Department of Natural Resources for community grants. By law, the DNR cannot award community grants to state agencies, the University of Minnesota, a for-profit business or for a scientific research project.

Sponsored by Rep. Sydney Jordan (DFL-Mpls) and Sen. Foung Hawj (DFL-St. Paul), the new law takes effect July 1, 2026.

HF3426*/SF3857/CH104



Environment and Natural Resources

Legacy Amendment funds total $191 million into state prairies, forests, wetlands

More than $191 million from the Outdoor Heritage Fund will be distributed to protect, enhance, and restore wetlands, prairies, forests, and habitat for fish, game and other wildlife. The money was allocated as recommended by the Lessard-Sams Outdoor Heritage Council.

The law also updates rules for buying property, alters the borders on some state parks, authorizes the sale or transfer of specific state lands, provides funds to defend a state trademark and extends additional unemployment benefits.

Rep. Josh Heintzeman (R-Nisswa) and Sen. Foung Hawj (DFL-St. Paul) sponsor the law that takes effect July 1, 2026, unless otherwise noted.

[MORE: View the spreadsheet]

HF2439/SF2077*/CH126

Outdoor Heritage Fund

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% Outdoor Heritage Fund; 33% Clean Water Fund; 19.75% Arts and Cultural Heritage Fund; and 14.25% Parks and Trails Fund.

The Outdoor Heritage Fund is the only one of the four funds to be distributed annually rather than biennially, and $191.08 million appropriated in Fiscal Year 2027 will be broken down as:

• $82.41 million for 27 habitat projects, including $13.8 million for metro-area conservation partners grant program;

• $36.39 million for 11 prairie projects;

• $33.19 million for eight wetland protection or restoration projects;

• $36.94 million for four forest projects; and

• $2.16 million for administration purposes.

AURI trademark

Effective May 28, 20026, the new law makes a onetime appropriation of $80,000 in Fiscal Year 2026 to the Agricultural Utilization Research Institute for supporting a legislatively-created nonprofit’s trademark litigation.. The legislatively-created nonprofit, which researches and develops markets for expanded uses of agricultural products, is in a federal court legal battle over trademark infringement against a dietary company called Auri Nutrition.

Policy

Also effective May 28, 2026, many policy provisions in the law extend, update or clarify previous Legacy Amendment grants.

The law carries over $11 million to protect the Mississippi River from invasive carp. Projects connected to the Mesabi Trail, Zollman Zoo, Plum Creek Park and Robinson Quarry Park are among those getting extensions of grants from the Parks and Trails Fund. It also delays funding for Phase 3 of the Roseau Lake Rehabilitation project until the outcome of possible litigation is more certain.

Other provisions:

• term limits will be placed on public members of the Lessard-Sams Outdoor Heritage Council so they cannot serve more than eight years. Years served before that date apply to the limit, but sitting members may finish their term regardless of years served;

• allow the Outdoor Heritage Council to meet in closed session to interview executive director candidates; and

• update regulations around the Greater Minnesota Regional Parks and Trails Commission and set a two-year, instead of one-year, term for the chair.

State lands

Also in the law are DNR provisions clarifying how the department acquires land and establishes easements for access to streams and native prairies.

The new law describes additions to the statutory boundaries of the Frontenac and Great River Bluffs state parks, and a deletion from the Mille Lacs Kathio State Park.

And, effective May 28, 2026, the new law specifies the private or public sale or conveyance of surplus state land or tax-forfeited land by the state in Becker, Mille Lacs, Pine, Redwood, St. Louis, Wabasha and Washington counties.

Employment

A provision in the law applies to layoffs in the Iron Range. It extends additional unemployment insurance benefits for mining workers subject to mass layoffs. This is effective retroactively from Nov. 1, 2025.



Game and Fish

Crossbow hunting expiration date is deleted

Since 2023, state law has allowed a properly licensed person to take deer, bear, turkey, common carp, and native rough fish by crossbow during the respective archery seasons.

A new law makes the change permanent by removing a June 30, 2026, expiration date.

Rep. Josh Heintzeman (R-Nisswa) and Sen. Susan Pha (DFL-Brookyln Park) sponsor the law that took effect May 6, 2026.

HF1531/SF1251*/CH64



Health and Human Services

Law expands which medical professionals can consult community health boards

A new law modifies the definition of medical consultant to include doctors of osteopathic medicine, physician assistants and advanced practice registered nurses certified to practice as clinical nurse specialists or nurse practitioners.

It took effect April 15, 2026.

The change qualifies these professions to be appointed by, be employed by, or contract with a community health board to provide advice and information, to authorize medical procedures through protocols, and to assist a community health board and its staff in coordinating their activities with local medical practitioners and health care institutions.

Rep. Bianca Virnig (DFL-Eagan) and Sen. Paul Utke (R-Park Rapids) are the sponsors.

HF2393/SF3402*/CH46



Health and Human Services

Regions Hospital gets exception to moratorium on hospital construction projects

Regions Hospital, a level one trauma center in St. Paul, will be able to complete a construction project that adds 85 beds.

Sponsored by Rep. Jeff Backer (R-Browns Valley) and Sen. Sandra Pappas (DFL-St. Paul), a new law that takes effect Aug. 1, 2026, will provide an exception to the state’s hospital construction moratorium.

HF3521*/SF3587/CH91



Health and Human Services

Human services policy law balances fraud, waste and abuse with continuity of care

Ensuring continuity of care in human services programs while also combating fraud is at the core of the human services policy law.

Sponsored by Rep. Mohamud Noor (DFL-Mpls) and Sen. John Hoffman (DFL-Maple Grove), here are some changes that took effect May 16, 2026, unless otherwise noted.

HF729/SF476*/CH95

Program integrity for Medicaid funded programs susceptible to fraud

Stronger enrollment requirements are created for Medicaid providers to detect and prevent fraudulent providers. The law also gives more authority to the Department of Human Services and clarifies its authority to reduce ambiguous language that has led to inconsistent enforcement measures.

For example, the law requires those enrolled or seeking enrollment as a Minnesota healthcare provider not have a lead agency contract or provider agreement discontinued because of a fraud conviction.

Protections for vulnerable adults experiencing mistreatment

The state will be in compliance with the federal Adult Protective Services Act, reforming and giving new duties to county investigative services in order to protect vulnerable adults.

The Department of Human Services is responsible for supervision of adult protective services administered by county social services agencies who must investigate allegations of abuse, waste, financial exploitation, caregiver neglect, and situations for which the county agency finds that a determination of responsibility of maltreatment may safeguard a vulnerable adult or prevent further maltreatment.

A court will be allowed to appoint an emergency guardian and/or an emergency conservator for a vulnerable adult in certain circumstances for a duration of up to 60 days.

Restraint usage

Effective Jan. 1, 2027, an assisted living facility must ensure that staff authorized to use manual restraints receive at least four hours of training in the use of manual restraints, including de-escalation techniques and prohibited restraint procedures. A two-hour refresher course is required annually thereafter.

However, the law prohibits the use of restraints except when immediate intervention is needed to protect the resident or others from imminent risk of physical harm and is the least restrictive intervention to address the risk. The resident's legal representative must be notified within 24 hours of an emergency use of a manual restraint and of the circumstances that prompted the use.

Optum report

Optum is prohibited from selling or disseminating any private data on individuals it received when working with the Department of Human Services.

The department is required to release the initial Optum report with limited redactions to specified members of the Legislature. Legislative members and staff are prohibited from disseminating or publishing any non-public data contained in the report



Health and Human Services

Licensure, scope of practice for some health occupations modified by new law

A new law contains a dozen provisions that will modify licensing and scope of practice for some health-related occupations.

Those affected include acupuncture and herbal medicine practice, athletic training, mortuary science, social work, dentistry practice, marriage and family therapy, pharmacy practice, physical therapists and advanced practice registered nurses. The law also makes it unlawful for a person who is not a natural person to practice medicine, optometry, or psychology.

The law also establishes registration for massage therapists and Asian bodywork therapists and establishes licensure for music therapists.

Sponsored by Rep. Aaron Repinski (R-Winona) and Sen. Melissa Wiklund (DFL-Bloomington), the law mostly takes effect Aug. 1, 2026.

Two provisions requiring licensure of music therapists and a section requiring individuals to be registered as massage therapists or Asian bodywork therapists to use protected titles take effect Jan. 1, 2028. Another provision requires county agency social workers to hold certain qualifications or be employed by a county agency before July 1, 2027, to use certain titles.

In Fiscal Year 2027, the law will appropriate $147,000 from the state government special revenue fund to the Department of Health to administer regulatory requirements for massage therapists and Asian bodywork therapists and $87,000 to administer licensing requirements for music therapists.

The base for administering regulatory requirements for massage and Asian bodywork therapists is $1.76 million in Fiscal Year 2028 and $1.82 million in Fiscal Year 2029. It is $55,000 each year to administer music therapist licensing requirements.

HF3825*/SF3875/CH115



Health and Human Services

Law helps keep HCMC open, sets state in compliance with feds

Key funding to keep open Hennepin County Medical Center, Minnesota’s flagship trauma center and safety net hospital, is included in a health and human services law.

The law also includes provisions to align Minnesota with new federal Medicaid and SNAP requirements included in HR1, also known as the “One Big Beautiful Bill.”

Multiple statutory provisions for the Department of Children, Youth, and Families are also in the law.

Sponsored by Rep. Robert Bierman (DFL-Apple Valley) and Sen. Melissa Wiklund (DFL-Bloomington), the law makes supplemental appropriations to the Department of Human Services; Department of Health; Department of Children, Youth, and Families; and other state agencies. The law appropriates around $50 million in Fiscal Year 2026 and $263 million in Fiscal Year 2027, with most of the funding coming from the General Fund and some from the state government special revenue fund. In Fiscal Years 2028 and 2029, the state will save $5.5 million and $33.6 million respectively. (View the spreadsheet)

HF4466/SF4612*/CH127

Funding for HCMC, governance update

Beset by costs, many for uncompensated care, that had threatened to shut down the state’s busiest Level 1 trauma center, the law will provide a $105 million direct stabilization payment for Hennepin County Medical Center and a $100 million payment toward the nonfederal share of HCMC’s Directed Payment Program.

The law also updates HCMC governance by requiring 75% of non-county commissioner board members to have expertise in hospital administration, finance, law, business, health equity, or other relevant experience. It requires the Hennepin County Board to reconstitute the corporate board of Hennepin Healthcare System by Jan. 15, 2027, and creates a task force to make recommendations related to Hennepin Healthcare’s financing and governance going forward.

By July 15, 2027, the state must transfer $354 million to a hospital stabilization reserve account. Another $146 million must be transferred by July 15, 2028. This section takes effect July 1, 2027.

Money in the hospital stabilization reserve account is available over the next five years for payments to hospitals that are in financial distress and meet other eligibility requirements. An additional $30 million will be provided for a new statewide Hospital Stabilization Program to provide financial relief to critical access hospitals, rural emergency hospitals and hospitals that provide a disproportionate level of uncompensated care.

Compliance with HR1, federal law

Federal alignment provisions in the law include limits on retroactive Medical Assistance coverage (reduced from three months to one or two months of retroactive coverage), a six-month enrollee redetermination, Medical Assistance cost-sharing requirements for some enrollees and, effective May 28, 2026, creation of a health care eligibility oversight unit tasked with decreasing health care eligibility errors to ensure the state meets federal requirements.

Medical assistance fraud prevention, penalties

Effective Aug. 1, 2026, the law goes after Medicaid fraud by updating penalties and creating new ones whose penalties call for up to 30 years in prison and $1 million in restitution.

Expansion of the Medicaid Fraud Control Unit

The bill grants an additional $1.23 million annually to the Attorney General’s Office to expand its Medicaid Fraud Control Unit.

Supplemental Children and Families budget

The $50 million Fiscal Year 2027 supplemental children and families budget is this law, which allocates $10 million to emergency food support, modernizes childcare and crisis nursery licensing, funds forensic interview training and appropriates funding to counties to administer SNAP benefits.

This also includes childcare center licensing and family childcare licensing modernization, which includes updates to staff orientation and training requirements; behavioral guidance for staff working with children; requirements around children with special healthcare needs or disabilities; required information a facility must provide parents; facility inspection requirements; and maltreatment of minors internal review.

The law also includes policy changes around support for foster youth and families. It includes $15 million for counties working to implement Minnesota African American Family Preservation and Child Welfare Disproportionality Act, which is meant to reduce disparities in the state’s foster care system.

Mental health funding

The law allocates an additional $12.5 million for school-linked behavioral health grants and $3.8 million for mobile crisis grants.

Helping Paws grant

In honor of the late Speaker Emerita Melissa Hortman, the budget includes a $200,000 grant to Helping Paws Inc. The nonprofit breeds, trains and places service dogs with individuals with disabilities and veterans and first responders with PTSD.



Higher Education

Higher education law provides funding boost to Fostering Independence Grants, fighting fraud

The higher education supplemental policy and finance law affects funding and policies for the Office of Higher Education, Minnesota State, University of Minnesota, and other postsecondary institutions in the state.

Sponsored by Rep. Dan Wolgamott (DFL-St. Cloud) and Sen. Omar Fateh (DFL-Mpls), the law’s provisions take effect Aug. 1, 2026, except where indicated.

HF4252*/SF3943/CH116

Appropriations

Taking effect July 1, 2026, appropriations in the law are:

• $3 million to the Minnesota State system to implement an identity verification system to combat “ghost student” financial aid fraud;

• $2.7 million — $1.5 million from the General Fund and $570,000 from the Workforce Development Fund — to address a funding shortfall in the Fostering Independence Higher Education Grants program; and

• $5,000 to Bemidji State University for a grant to replant trees lost in last summer’s derecho.

Policy

The law will give the Office of Higher Education additional tools to determine and then act if a school has committed fraud. It also provides technical updates to higher education administrative procedures.

Other policy provisions will:

• authorize the Office of Higher Education to deny student aid to applicants who provide false information, refuse inspections, or have been legally found to have committed fraud regarding government funding;

• mandate that postsecondary institutions clearly inform students in writing when courses — often called developmental or remedial courses — do not earn credits toward a degree or certification;

• strengthen anti-discrimination protections for pregnant and parenting students at postsecondary institutions, including priority registration;

• prohibit Minnesota State, and request the University of Minnesota, from imposing fees or extra tuition for the maintenance of facilities primarily designated for student-athletes, such as training centers or athlete housing;

• remove outdated language on work-study grants;

• allow Minnesota State employees to take paid time off for off-site blood donations, consistent with other state employees;

• authorize Rochester Community and Technical College to enter into a lease agreement with the City of Rochester to build a recreation center; and

• require a report on medical school curriculum, in part to monitor curriculum designed by for-profit companies.

Private Career School Act

Regulatory framework will be updated for private career schools, spurred in part by the October 2025 ruling in Mox et al v. Olson, which addressed the constitutionality of the Minnesota Private Career School Act.

The lawsuit was initiated after owners of a company teaching equine massage techniques contested application of the state’s licensing and bonding requirements to their coursework.

Changes include:

• refining the legal definition of a “private career school” and removing certain exceptions to licensure requirements;

• standardizing financial reporting requirements for license applications to better reflect the scale of smaller training providers;

• providing increased flexibility for schools submitting audit information; and

• allowing the Office of Higher Education to maintain student records in some cases, while removing the requirement for schools to retain paper copies.



Housing

Supportive housing programs get $9 million to bridge potential funding gaps

Supportive housing programs facing potential funding gaps will be eligible for relief under a new law that took effect March 28, 2026.

It calls for $9 million for supportive housing programs, which provide rental assistance and support services for people with complex needs, such as health challenges or addiction issues. It reallocates unspent funds appropriated in 2023 to the Minnesota Housing Finance Agency for supportive housing.

Sponsored by Rep. Michael Howard (DFL-Richfield) and Sen. Lindsey Port (DFL-Burnsville), the law directs money to recipients of the federal Continuum of Care Program that could be facing funding disruptions due to changes in grant administration by the federal Department of Housing and Urban Development.

HF3425*/SF3595/CH43



Housing

Clarifying the right to postpone a foreclosed home sale

A new law clarifies the right to request postponement of a sheriff’s sale on a foreclosed home.

If the owner or mortgagor is deceased, the law allows a representative or any person entitled to a transfer of ownership to postpone the sale. If a defective affidavit is accepted, it doesn’t invalidate the foreclosure unless there is misconduct. The right to postpone a foreclosure sale can be exercised only once during each foreclosure proceeding.

The law also makes technical changes to the affidavit form.

Effective April 22, 2026, the law applies to foreclosures with notice of pendency or a lis pendens for a foreclosure recorded on or after the effective date.

Rep. Mike Freiberg (DFL-Golden Valley) and Sen. Sandra Pappas (DFL-St. Paul) are the sponsors.

HF3479*/SF3791/CH51



Housing

Housing omnibus provides $100 million in housing infrastructure bonds, $40 million for homelessness prevention

A new law aims to help address Minnesota’s housing needs by authorizing the sale of $100 million in housing infrastructure bonds and providing emergency relief for housing costs.

Sponsored by Rep. Michael Howard (DFL-Richfield) and Sen. Lindsey Port (DFL-Burnsville), the law also improves legislators’ line-of-sight on the Minnesota Housing budget, creates new investment opportunities for local governments, and supports a pilot program allowing older adults to share their homes.

Most provisions took effect May 19, 2026, unless noted otherwise.

Finance provisions

The law provides $163 million in new housing investments without using additional General Fund dollars.

Instead, it repurposes unspent funds set aside for Tyler v. Hennepin County settlement claims and allocates some interest earned from investment accounts linked to the $1 billion housing appropriation from the 2023–24 budget.

Funds provided will finance the bond sales as well as result in an additional $40 million for the Family Homeless Prevention and Assistance Program, which can be used for emergency rental assistance.

The law also redirects $25 million of Minnesota Housing Finance Agency investment earnings to provide:

• $14.275 million for the Greater Minnesota Workforce Housing Development Program;

• $4 million for supportive housing providers facing gaps due to uncertain federal funding;

• $4 million for grants to improve infrastructure at manufactured home parks;

• $425,000 for a grant to a statewide tenant education and hotline service;

• $150,000 for homeownership education, counseling and training; and

• $150,000 for the Minnesota Nice HomeShare pilot program in St. Louis County to connect older adults with extra space to renters who need a home.

[MORE: View the spreadsheet]

Policy provisions

The new law clarifies the distinction between Minnesota Housing’s traditional banking operations and its management of state-appropriated funds. New reporting requirements aim to provide greater oversight of how state tax dollars and their associated investment earnings are used.

Othe policy provisions will:

• allow cities, counties, and Housing and Redevelopment Authorities to invest in high grade securities issued by companies with a mission to develop local multifamily housing;

• ensure stipends earned by participants in lived experience engagement opportunities are not counted as income for the purposes of benefit eligibility;

• require reporting on how Minnesota Housing can give legislative staff remote access to Minnesota Housing’s accounting subsystem; and

• permit the Minnesota Housing board to meet remotely, provided the meetings are livestreamed and archived. This provision takes effect Aug. 1, 2026.

HF1141*/SF203/CH100



Housing

Law modifies Minnesota Common Interest Ownership Act

Technical and clarifying changes will be made to the Minnesota Common Interest Ownership Act that governs common interest communities such as condominium and homeowners’ associations.

Effective Aug. 1, 2026, the law modifies certain exemptions, board composition requirements and liability insurance provisions.

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

HF3459/SF3622*/CH61



Housing

New law targets gaps in renter, landlord rules

A new law that takes effect Aug. 1, 2026, aims to solve problems vexing both renters and landlords when it comes to utility billing, online payment platforms and eviction procedures.

Tenants’ move-out dates and utility billing periods sometimes don’t coincide, so a landlord might not know what tenants owe on their utilities until after they’ve left. The new law allows landlords to estimate a tenant’s final utility bill based on the previous billing cycle.

Other provisions will:

• require landlords to offer a free alternative payment method if an online payment platform malfunctions;

• prohibit landlords from listing a minor child as a defendant in an eviction action unless the minor is the sole renter; and

• include assaults on landlords or their employees as grounds for an expedited eviction action.

Rep. Spencer Igo (R-Wabana Township) and Sen. Lindsey Port (DFL-Burnsville) are the sponsors.

HF3951/SF4171*/CH81



Housing

New regulations created for homeowner associations, common interest communities

A wide-ranging law will set regulations for homeowner associations and common interest communities that focus on transparency, best practices and consumer protections.

Its provisions include regulations that will add transparency to board meetings and documents, prohibit conflicts of interest for board members and property managers, ban retaliation against unit owners, add requirements for maintenance contracts, limit fines imposed on unit owners, create a new process for terminating an HOA and limit a local government’s ability to require an HOA as a permit condition for new housing developments.

The definition section of the law took effect May 13, 2026, and all other parts will take effect Jan. 1, 2027. It’s sponsored by Rep. Kristin Bahner (DFL-Maple Grove) and Sen. Eric Lucero (R-St. Michael).

HF1268/SF1750*/CH82

Terminations

Beginning Jan. 1, 2027, a slightly lower threshold is established to terminate an HOA that has no common elements and is only single-family dwellings.

Unit owners’ association duties

An association will be required to give unit owners at least 21 days’ notice for review and comment before it votes to adopt, amend or revoke a rule or regulation. A temporary rule can be adopted without notice in an emergency if notice is given as soon as practicable to unit owners before permanently adopting the rule.

Fines will be capped at $100 for a single violation of the declaration, bylaws and rules and regulations unless association members approve a greater amount at a board meeting. The association can impose a fine exceeding $100 for subsequent violations for the same conduct or if the violation has serious and immediate impacts on a resident’s health or safety, causes damage to a unit or common element or involving using property for financial enrichment. The new law will also provide regulations on payments for a fine.

An association will be required to provide every unit owner a list of fines for common violations and a description of available remedies.

Interest on delinquent assessments for common expenses and special assessments will be capped at 8%; the fee for late payments on common expenses and special assessments will be capped at the greater of $20 or 5% of the amount owed.

Board of directors

Under the new law, elections of directors must occur regularly, and each term can’t exceed three years if there isn’t a limit on the number of terms a director may serve.

Meeting agendas, contracts and other documents the board intends to vote on at a board meeting must be made available to unit owners in a reasonable manner. A unit owner or a person designated in writing by the owner must be allowed to speak on an agenda item.

Board members will not be allowed to participate in deliberations or vote on a contract where they or their family member have a financial interest in the contract or will likely realize a financial gain as a result. Nor will board members be allowed to solicit or accept money or other compensation as an inducement for them to vote in favor of a contract for property maintenance, construction, repair or reconstruction services. The same prohibitions will be placed on property managers.

The board or property manager will be required to solicit a minimum of three written competitive bids before entering into a contract for property maintenance, construction, repair or reconstruction services estimated to cost at least $50,000. Records must be kept of the bid selection process.

Retaliation

Effective Jan. 1, 2027, an association will be banned from retaliating against a unit owner for asserting any statutory right the owner has. It won’t include commencing a foreclosure action for an unpaid fine after time allowed for payment.

The association’s disclosure of data in violation of the Safe at Home program will be considered a violation of this section.

Local government regulation

For all common interest communities created on or after Jan. 1, 2027, local governments will be banned from conditioning approval of a residential building permit or conditional use permit, residential subdivision development or residential planned unit development or any other permit on:

• the creation of a homeowners association;

• inclusion of any service, feature or common property necessitating a homeowners association, unless requested by the developer;

• inclusion of any terms in a homeowners association declaration, bylaws, articles of incorporation or other governing documents; or

• adoption, revocation or amendment to a rule or regulation governing the homeowners association or its members.

Other provisions

The new law will also:

• set a process for an owner requesting an alteration and for an association to decide on the request;

• clarify provisions related to an association’s authority over parking and the local government’s authority on delegating policing powers;

• require associations to adopt a collection policy and provide a copy to all unit owners; and

• outline the requirements for notification and legal fees when an association refers a unit owner’s inquiry to the association’s legal counsel.



Local Government

New law allows towns, watershed districts to self-insure

Towns, watershed districts and watershed management organizations that have at least 100 employees either individually or jointly will be permitted to self-insure for certain employee health benefits, excluding employee life insurance.

Sponsored by Sen. Eric Pratt (R-Prior Lake) and Rep. Ben Bakeberg (R-Jordan), the law takes effect Aug. 1, 2026.

HF3571/SF3887*/CH66



Military and Veterans Affairs

Veterans education program consolidation

Statutory references to veterans higher education programs will be modified, including repealing one, which should result in a simplified benefit application and administration process for veterans and their families.

The law, effective Aug. 1, 2026, includes closure of a rarely used $750 educational benefit that is currently available to veterans, but preserves that benefit for the surviving spouse and dependents of a prisoner of war (POW), a servicemember missing in action (MIA), or a deceased veteran. Veterans rarely used the benefit in recent years due to increased benefits for the Minnesota GI Bill and changes to a federal post-9/11 GI Bill.

Also included is some technical and administrative updates.

Rep. Josiah Hill (DFL-Stillwater) and Sen. Judy Seeberger (DFL-Afton) are the sponsors.

HF3741*/SF3957/CH49



Military and Veterans Affairs

Forfeiture of veteran benefits, title change at Department of Veterans Affairs

Organizational structure change at the Veterans Affairs Department and conformity with federal veterans’ benefits policy are among the components of a new law that takes effect Aug. 1, 2026.

Sponsored by Rep. Aaron Repinski (R-Winona) and Sen. Robert Kupec (DFL-Moorhead), the law will reclassify the chief of staff position to deputy commissioner of administration to align the department with similar-sized agencies and ensure parity among division leaders, strengthening organizational clarity and authority.

The law also provides that any veteran who has forfeited federal veteran benefits is also ineligible for state benefits.

And two statutes are eliminated: the “Environmental Hazards Information and Assistance Act” enacted in 1982 to address the issue of veterans exposed to Agent Orange and other chemical agents, and one that requires the department to collect and maintain data about Minnesota residents who died from service-connected causes.

HF3544*/SF4072/CH50



Military and Veterans Affairs

Clarification made for state department resources to aid groups helping veterans

Clarity is the goal of a new law that aims to help groups who serve veterans.

Sponsored by Rep. Kari Rehrauer (DFL-Coon Rapids) and Sen. Heather Gustafson (DFL-Vadnais Heights), the law provides clear statutory authority that Department of Veterans Affairs’ staff time and non-monetary resources can, if available, be used to “support initiatives relating to veterans’ food insecurity, homelessness, suicide prevention, and other critical issues.”

Examples would be collaborating with a local, nonprofit organization that can more quickly connect with veterans when an issue arises.

The law takes effect Aug. 1, 2026.

An annual report is due the Legislature about any activities or initiatives that occurred under the new law.

HF3467*/SF3956/CH52



Military and Veterans Affairs

Secret guerilla unit recognition updates, five other changes in veterans’ law

A single topic turned into a multi-part new law that focuses on veterans.

Among its provisions, the law that largely takes effect Aug. 1, 2026, provides veteran designation for Special Guerrilla and Irregular Forces veterans who served under CIA direction in the 1961-1975 Secret War in Laos.

A 2025 law created state statute recognizing Veteran of the Secret War in Laos who served honorably with special guerrilla units or other irregular forces and made these veterans eligible for specific state benefits, including veteran designation on driver’s licenses and identification cards, burial privileges at state veterans’ cemeteries, grave markers purchased by the Department of Veteran Affairs, honor guards, and permissive preference for veterans in private employment. It also created a working group on benefits for veterans of the Secret War in Laos.

The 2026 law includes working group recommendations, including clarifying technical changes and modifications, including a burial fee reference, addition of “SGU Veteran” on driver’s licenses or state identification cards beginning Jan. 1, 2027, and civil service recruitment preference. It also establishes a comprehensive eligibility process for Special Guerilla Unit veterans to access many of the same benefits as other Minnesota veterans and modifies the benefits these veterans are entitled to receive.

The law calls for $200,000 from the General Fund — $141,000 is onetime funding — in Fiscal Year 2027; however, it also cancels a $100,000 appropriation from the 2025 law.

The law will also:

• allow honorably discharged members of the National Guard or another reserve component of the armed forces and their eligible dependents to be interred in a state veterans cemetery;

• meet federal requirements by eliminating the need for legislative approval and permitting the Department of Veterans Affairs to close a veterans home in the unlikely event the Centers for Medicare and Medicaid Services issue an involuntary termination notice for a state veterans home;

• set the base pay for E-1 (Private) through E-4 (Specialist) National Guard members called to state service under emergency executive order at the rate set by the federal government’s Defense Finance and Accounting Service pay tables for an E-5 (Sergeant) service member;

• enact into statute the Commanders Task Force that has advised the Legislature, governor, Department of Veterans Affairs and others on veterans-related issues since 1988; and

• establish requirements for the Department of Veterans Affairs when administering legislatively directed competitive and direct grants, including creation of a grant application scoring system to evaluate applicants based on their demonstrated history of serving veterans; establishing grantee eligibility; and placing limitations on the use of grant money to fund services for veterans and active service members and their immediate family, and immediate family members of a veteran who died in the line of duty.

Rep. Bidal Duran (R-Bemidji) and Sen. Aric Putnam (DFL-St. Cloud) are the sponsors.

HF3522*/SF3955/CH96



Public Safety

Peace officers must disclose their use of chemical irritants within a building

Notice and disclosure will need to be given when peace officers deploy chemical irritants within a building.

Chemical irritants such as tear gas and pepper spray are often used to force a person to leave a room or building. Peace officers may also use smoke screens and diversionary devices (such as “flash bang” devices) when entering a building or room. Those products may leave residue requiring specialized cleaning or treatment.

Effective Aug. 1, 2026, a new law requires peace officers to provide notice to building owners, and the occupant if the building is a home or apartment, when the officer uses a chemical irritant in the building.

It will also require law enforcement agencies and local units of government to share specific information about the products used when asked by the building owner, a tenant, insurance company or someone hired to clean or treat the building or room.

Additionally, the Department of Public Safety must develop a standard notification form for officers to provide to building owners and occupants.

Rep. Kelly Moller (DFL-Shoreview) and Sen. Melissa Wiklund (DFL-Bloomington) are the sponsors.

HF3782*/SF4144/CH69



Public Safety

New law alters BCA records sharing

A new law contains provisions related to data collection, sharing information regarding orders for protection against financial exploitation of a vulnerable adult, and terminology used in relation to the undercover buy fund and witness and victim protection fund.

Notable provisions in the new law effective Aug. 1, 2026, unless otherwise noted, include:

• authorizing the Bureau of Criminal Apprehension to determine that a record sealed pursuant to the automatic expungement law was sealed in error and should be unsealed;

• changing references to “grants” in the undercover buy fund and witness and victim protection fund to “reimbursements”;

• repealing a statute that requires peace officers to keep a permanent written record of certain information and share that with the BCA; and

• effective Jan. 1, 2027, requiring a court administrator to make orders for protection against financial exploitation of a vulnerable adult available to law enforcement officers.

Rep. Bidal Duran (R-Bemidji) and Sen. Doron Clark (DFL-Mpls) are the sponsors.

HF3827*/SF4371/CH70



Public Safety

Changes made to the Safe at Home address confidentiality program

Safe at Home is an address confidentiality program administered by the Secretary of State’s Office that is available to Minnesota residents who are victims of domestic violence, sexual assault, harassment, or stalking or who otherwise fear for their personal safety.

A new law that takes effect Aug. 1, 2026, makes various changes statutes regarding the program. They include:

• prohibiting discrimination against people based on their status as Safe at Home participants;

• adding emancipated minors to the list of possible Safe at Home program participants;

• imposing a gross misdemeanor penalty for a violation of the Safe at Home chapter that results in bodily harm;

• specifies steps to be accomplished before a court can direct a participant in the Safe at Home program to disclose their address, including issuance of a written order with specified content, and giving the secretary of state standing to request reconsideration of the order or to intervene in a proceeding; and

• amending a section of statute regarding mandated training for judges to require the training program to include information on the Safe at Home program.

Rep. Jim Nash (R-Waconia) and Sen. Doron Clark (DFL-Mpls) are the sponsors.

HF3676*/SF3959/CH67



Public Safety

Organized retail theft statute expanded to include theft of gift cards

The organized retail theft statute enacted in 2023 will expand to include theft involving gift cards.

Per the 2023 law, that crime applies when a person is part of a group of two or more individuals who steal merchandise from a retailer, has committed previous theft-related offenses and resells or tries to return the stolen merchandise for credit.

Effective Aug. 1, 2026, the law will include theft involving gift cards under the organized retail theft statute. Theft of gift cards includes stealing codes and PINs before a retailer sells the card so that the thieves can take the money when a retailer sells and activates a card. Penalties are based on the amount that could be taken from a gift card, not necessarily the amount a thief actually steals. The law also includes situations where someone tampers with stolen merchandise for the purpose of obtaining something of value from the retailer or a retail customer.

Rep. Brad Tabke (DFL-Shakopee) and Sen. Zach Duckworth (R-Lakeville) are the sponsors.

HF3155*/SF3338/CH74



Public Safety

Criminal penalties increased for extortion using private sexual images

Minnesota laws on coercion (also commonly known as blackmail or extortion) penalize anyone who causes another to pay money for committing, or refrain from committing, some act.

For example, a person can commit the crime by threatening to violate state laws prohibiting the nonconsensual dissemination of private sexual images.

A new law that takes effect Aug. 1, 2026, will enhance penalties when the threat to disseminate private sexual images is a substantial contributing factor in the victim sustaining great bodily harm or death.

Per the law, a perpetrator may be sentenced up to 10 years in prison if the threat is a substantial factor in the victim sustaining great bodily harm, 15 years if the violation is a substantial factor in the victim’s death.

Rep. Scott Van Binsbergen (R-Montevideo) and Sen. Andrew Lang (R-Olivia) are the sponsors.

HF2358*/SF281/CH76



Public Safety

Grooming a minor established as a felony and other education provisions

A new law will establish grooming a minor as a felony offense.

Taking effect Aug. 1, 2026, the crime of grooming occurs when a person 18 years of age or older that “expresses the desire or intent to engage in sexual conduct with a child; and engages in a deliberate pattern of conduct to methodically develop a false trusting relationship with the child that is intended to strategically manipulate the child to engage in sexual conduct with the person at a future time, regardless of whether any sexual conduct occurs.”

A police department or county sheriff must notify the appropriate licensing board when a teacher is criminally charged with an offense that triggers automatic license denial, refusal to renew, or revocation without a right to a hearing, or with any other offense that requires the person to register as a predatory offender. This takes effect July 1, 2026.

Screening guidelines issued by the Department of Children, Youth and Families must not limit an agency’s ability to screen in and investigate a report of alleged grooming that occurred more than three years prior to the report.

By Aug. 1, 2027, the Department of Children, Youth, and Families, in consultation with the Department of Education, must update the mandated reporter training for education professionals or professionals’ delegates engaged in education. The update must include, but not be limited to, “the requirement to report allegations of maltreatment of students, including students receiving special education services; and addressing grooming and threatened sexual abuse, including the duty to report grooming as maltreatment, … how to identify the signs of grooming, and recognizing environments and circumstances that present an increased risk of grooming.”

Rep. Peggy Bennett (R-Albert Lea) and Sen. Erin Maye Quade (DFL-Apple Valley) are the sponsors.

HF3489/SF3969*/CH108



Public Safety

Supplemental budget law funds Capitol, courtroom security

A public safety and judiciary safety and security finance law appropriates $47.44 million in the 2026-27 biennium to fund legislative, judicial, and State Capitol security programs, plus provide services to crime victims.

Rep. Kelly Moller (DFL-Shoreview) and Sen. Ron Latz (DFL-St. Louis Park) sponsor the law that also includes several policy changes relating to public safety and security.

Spending provisions are effective July 1, 2026; policy provisions are effective Aug. 1, 2026, unless otherwise noted.

HF3230/SF3432*/CH118

Judiciary appropriations

To curb the increasing threats of violence judges and other judicial staff are facing, the law appropriates $6.97 million in Fiscal Year 2027:

• $4 million for a competitive grant program for courthouse safety and security improvements;

• $1.69 million for the judicial branch to monitor and respond to threats to judges and judicial staff;

• $967,000 for home security systems for judges and judicial staff; and

• $312,000 for additional security personnel for the judicial branch. (Art. 1, Secs. 1-7)

Public safety appropriations

The largest public safety appropriation is $12 million in Fiscal Year 2027 to a new Minnesota Victims of Crime account in the Office of Justice Programs for grants to community-based crime victim service providers such as emergency shelters and legal advocacy.

A $7.32 million appropriation in the 2026-27 biennium is for staffing, overtime, and equipping costs of additional State Patrol personnel and associated scanning equipment to perform screening of individuals entering the State Capitol. The law calls for $6.39 million in ongoing biennial funding beginning in 2028-29.

Also in the 2026-27 biennium is $2.12 million to the Philando Castile Memorial Training Fund to conduct mandatory training for peace officers in de-escalation techniques, implicit bias and crisis management to improve community-police relations.

Other notable public safety-related appropriations in Fiscal Year 2027 unless noted are:

• $7.95 million in the 2026-27 biennium for legislator security protection from the State Patrol and other law enforcement agencies when they receive credible safety threats;

• $4.7 million for Capitol security enhancements to protect legislators and visitors;

• $1.92 million in Fiscal Year 2026 to fill a State Patrol budget deficiency caused by extra Capitol detail assignments;

• $1.74 million in Fiscal Year 2026 for a new legislative services security team for the Capitol Complex;

• $1.01 million for the Bureau of Criminal Apprehension’s threat assessment and investigation team;

• $905,000 to the BCA for non-fatal shooting clearance grants;

• $300,000 ($100,000 each) for the safety and security of the attorney general, secretary of state and state auditor;

• $159,000 to fund a domestic violence task force;

• $125,000 to provide post-release services for adult and juvenile offenders;

• $125,000 for trafficking prevention grants for youths;

• $100,000 for the Public Safety Department to maintain a database with emergency contact information for elected officials; and

• $13,000 for an expected increased incarceration rate due to a new law that increases the penalties for theft from a vulnerable adult.

Policy provisions

Changes regarding public safety and security policies are also in the new law, some of which will receive appropriations. These include:

• requiring the Department of Public Safety to maintain a database containing emergency contact information for elected officials;

• establishing a legislative services unit within Capitol Security to assess and respond to threats. An annual report will be due the Legislature;

• establishing a security services task force;

• giving the attorney general administrative subpoena power in cases of suspected fraud;

• establishing a task force on improving responses to domestic violence crimes;

• establishing the Minnesota clearance grant program to award grants to law enforcement agencies to reduce violent crime by increasing the solve rate of crimes that involve a nonfatal shooting;

• making the assault of a hospital or clinic worker a gross misdemeanor;

• increasing the criminal penalties for assaulting a vulnerable adult; and

• banning prediction market wagering.



Public Safety

More procedural due process granted to local correctional officers

A new law clarifies and expands the due process rights of correctional officers under the Correctional Officers Discipline Procedures Act as follows:

• requires a written complaint to be filed to require a correctional officer to provide a formal statement;

• requires parties to a complaint to share witness lists and witness statements;

• requires investigative reports to be provided to an accused correctional officer;

• establishes standards for sessions where formal statements are taken from correctional officers;

• requires a complete electronic recording of sessions where an officer’s formal statement is taken. Transcripts of the sessions must be provided to the officer providing the statement without fee;

• establishes that an officer providing a formal statement has the right to have an attorney or union representative present while providing the statement;

• authorizes a correctional officer to sue their employer if the employer violates the Correctional Officer Discipline Procedures Act.

The act also clarifies provisions within the Peace Officers Discipline Procedures Act.

Rep. Jeff Witte (R-Lakeville) and Sen. Warren Limmer (R-Maple Grove) are the sponsors.

HF1410*/SF2422/CH59



Public Safety

New law standardizes firearm surrender in domestic violence cases

A standard firearm transfer process will be created for cases where domestic violence offenders are ordered to surrender their firearms.

Taking effect Aug. 1, 2026, a new law will require firearm transfers be completed as soon as reasonably practical and made to the subject’s local law enforcement agency, a federally licensed firearms dealer or a third party who does not reside with the subject.

Third-party transfers must be completed at a law enforcement agency.

Offenders must file a proof of their firearms transfer or a declaration of non-possession of firearms and any required third-party affidavit with a district court. Courts must hold compliance hearings within 10 business days of issuing a transfer order.

Rep. Peggy Scott (R-Andover) and Sen. Bonnie Westlin (DFL-Plymouth) are the sponsors.

HF4075*/SF4294/CH75



Public Safety

Partnerships no longer eligible for private detective or protective agent licenses

Partnerships will be removed from the class of parties entitled to apply for a license from the Board of Private Detectives and Protective Agent Services.

This change will allow the board to have full access to the FBI’s criminal records databases to vet private detective or protective agent license applicants.

If a corporation is the license applicant, its chief executive officer, chief financial officer, qualified representative and Minnesota manager must all meet the licensing requirements (rather than just one member of the corporation under current law) and submit fingerprints for a criminal history check.

Rep. Jeff Witte (R-Lakeville) and Sen. Warren Limmer (R-Maple Grove) sponsor the law that takes effect Aug. 1, 2026.

HF4151*/SF3827/CH83



Public Safety

New law aims to improve prison inmates’ access to treatment programs

The Department of Corrections is required to have mental health and substance abuse programs available to prison inmates.

A new law, effective Aug. 1, 2026, aims to improve prisoner access to those treatment programs.

Some of the notable provisions are:

• clarifying that the department must provide substance use disorder programs for both adults and juveniles and that those programs must meet minimum statutory standards;

• clarifying that the department is authorized to operate mental health units at more than one of the state’s adult correctional facilities;

• expanding the grounds for a mental health professional to refer an incarcerated person to a facility’s mental health unit; and

• eliminating the department’s authority to seek a judicially ordered mental health commitment for an incarcerated person who “refuses to voluntarily participate” in a mental health treatment program.

Rep. Brion Curran (DFL-White Bear Lake) and Sen. Bonnie Westlin (DFL-Plymouth) are the sponsors.

HF3769*/SF4293/CH84



Public Safety

Omnibus public safety policy law

The omnibus public safety policy law contains numerous policy provision impacting public safety, public safety officers, corrections, crime victims, and criminal investigations and offenses , ranging from ensuring that a crime victim has the right to object to a plea agreement to banning prediction market wagering.

The wide-ranging law, effective Aug. 1, 2026, unless otherwise noted, is sponsored by Rep. Paul Novotny (R-Elk River) and Sen. Ron Latz (DFL-St. Louis Park).

Department of Public Safety provisions in the law include:

• designating as private data certain information collected by the Office of Justice Programs;

• requiring the Office of Missing and Indigenous Relatives and the Office of Missing and Murdered Black Women and Girls to provide case support to victims and families. Data created as part of case support work will be classified as private;

• requiring a prosecutor to make a good faith effort to inform a crime victim of an impending plea agreement and informing the victim of the eligibility for automatic expungement of any offense pleaded to or dismissed as part of the plea agreement;

• clarifying that crime victims have the right to object to a plea agreement at a plea hearing and requiring judges to ask if a victim has an objection;

• adding stalking to the definition of “violent crime” in the victims’ rights statute;

• requiring courts to ask a prosecutor if any crime victims wish to submit a victim impact statement at a sentencing hearing; and

• directing the Revisor of Statutes to change “battered women” to "domestic abuse victims” or a similar term in state statutes. (Art. 1, Secs. 1, 4-21, 24-33)

Identity theft and financial crimes provisions in the law include:

• authorizing the Office of the Attorney General to issue administrative subpoenas to gather information related to a law enforcement investigation of financial crimes and fraud, including fraud involving state-funded or administered programs or services and insurance fraud;

• adding “forged digital likeness” to the crimes prosecutable under identity theft statutes; and

• extending the statute of limitations to seven years for several financial crimes and crimes involving fraud, including theft by swindle, failure to pay state funds, fraudulent certificate of title and receiving stolen property. (Art. 3, Secs. 1-4)

Department of Corrections provisions in the law include:

• modifying rules on how medications are disbursed to persons in jail;

• placing new regulations on MINNCOR Industries, the business program run by the Department of Corrections that employs inmates in state facilities to manufacture products and provide services;

• effective Sept. 1, 2026, requiring the corrections commissioner to consider an inmate’s efforts to pay court-ordered restitution before placing the inmate on supervision abatement status;

• establishing a working group to recommend statutory changes needed to provide clarity regarding the roles, responsibilities and obligations of supervision delivery systems when a county transitions between state-operated and county-operated community supervision systems. This is effective July 1, 2026;

• modifying statutes regulating the licensing and inspection of juvenile and adult community-based residential correctional facilities; and

• specifying licensing actions the Department of Corrections can take to correct deficiencies at juvenile and adult community-based residential correctional facilities. (Art. 4, Secs. 1-8; Art. 5, Secs. 1-9)

Domestic violence provisions in the law include:

• requiring a sheriff, law enforcement officer or designee to make reasonable efforts to notify a petitioner before or immediately after service of a restraining order that the respondent will be or has been served the order;

• requiring the Bureau of Criminal Apprehension in its annual report to indicate the number of incidents that began with a law enforcement response to a situation involving suspected or alleged domestic abuse;

• modifying procedures a domestic violence victim can use to be released from a shared wireless plan and obtain a new telephone number;

• effective Jan. 1, 2028, requiring local law enforcement agencies to catalog every incident a peace officer reasonably believes, or a victim alleges, constitutes an act of domestic abuse be included in an annual report to the Department of Public Safety; and

• allowing peace officers 14 days to make a warrantless arrest of a person accused of committing domestic assault who flees the scene of an assault. (Art. 6, Sec. 4; Art. 7, Secs. 1, 3, 5-6)

Miscellaneous provisions in the law include:

• adding to the statutory list of aggravating factors applicable to felony sentencing situations where an adult offender intentionally deceives a minor victim into believing that the offender was also a minor to facilitate the commission of the crime (Art. 6, Sec.1);

• making it a felony to create a prediction market, operate a platform where users can make wagers in a prediction market or advertise or market financial or technological products that promote prediction market wagering (Art. 8, Secs. 1-3);

• effective May 19, 2026, allowing the denial of public employment or a professional license to someone based on a criminal conviction unless the applicant shows evidence of both rehabilitation and current fitness to perform the duties of the position or licensed occupation (Art. 9, Secs. 1-3);

• effective Oct. 1, 2026, prohibiting a person from selling or transferring a law enforcement vehicle to the public without removing any equipment or insignia that could mislead a reasonable person to believe the vehicle is a law enforcement vehicle (Art. 12, Sec. 1);

• adding certain cancers and infectious diseases to the conditions that qualify as duty-related deaths for peace officers and firefighters. This took effect May 19, 2026, and applies retroactively to Feb. 1, 2020 (Art. 12, Secs. 2-9); and

• establishing the Task Force to Establish a Statewide Network Funding for Public Safety Radio Communications Infrastructure and make recommendations regarding transitioning the Allied Radio Matrix for Emergency Response (ARMER) network and related interoperable communications to a statewide, state-funded framework. This, too, took effect May 19, 2026. (Art. 12, Sec. 12).

HF3990/SF4760*/CH97



Public Safety

New law increases penalties for impersonating a peace officer

Penalties for impersonating a peace officer will increase.

Effective Aug. 1, 2026, the charge will increase from a misdemeanor to a felony with a maximum penalty of two years imprisonment if an offender does so intending to mislead another person but taking no further action.

Increasing to a felony with up to five years imprisonment, from a gross misdemeanor, are instances where the impersonator also uses the deception to gain access to a public building or government facility that is not open to the public; directs someone to take a certain action or refrain from acting; violates statutes related to vehicle lights and sirens; and operates a vehicle marked with “police” or a similar marking falsely indicating the vehicle is a law enforcement vehicle.

The new law also goes after repeat offenders by increasing the penalty for impersonating a peace officer within five years of a previous felony conviction to a maximum prison sentence of 10 years. It was two years.

A person who possesses a firearm while impersonating an officer could also face a felony charge with a maximum prison sentence of 10 years, again from two years.

The new law will also require someone working as a peace officer to identify their employer, and provide their name and identification number when performing acts regularly performed by peace officers, such as stopping, detaining, or arresting individuals. An officer in uniform that displays the information will satisfy the requirement. Failure to do so does not make an arrest unlawful and cannot be used as the basis to suppress any evidence identified or seized following an arrest.

Rep. Ginny Klevorn (DFL-Plymouth) and Sen. John Hoffman (DFL-Champlin) are the sponsors.

HF3404*/SF3735/CH98



State Government

César Chávez Day is no more in Minnesota

César Chávez played an integral role in the farm worker rights movement, pushing for labor rights, political representation, environmental justice, and improving literacy.

However, a multi-year New York Times investigation released in March 2026 also shows he committed rape and groomed and sexually abused girls that were part of his movement.

Now, March 31, a day to celebrate the state’s Latino community is no longer named César Chávez Day. A new law, effective March 28, 2026, removes the designation from state statute.

Rep. María Isa Pérez-Vega (DFL-St. Paul) and Sen. Sandra Pappas (DFL-St. Paul) are the sponsors.

HF4541*/SF4759/CH42



State Government

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.

HF4057/SF4244*/CH88



State Government

New law creates Office of Inspector General

A new law that mostly takes effect on Jan. 1, 2027, aims to prevent fraud against the state’s programs and services, help coordinate program integrity measures across agencies, and act as a government watchdog and protector of tax dollars.

Sponsored by Rep. Matt Norris (DFL-Blaine) and Sen. Heather Gustafson (DFL-Vadnais Heights), an independent Office of the Inspector General will be created in the executive branch.

Fully operational by Sept. 1, 2027, the office will oversee current agency-based inspectors general and investigate credible allegations of fraud or misuse in state-administered programs.

The office will be an independent entity in the executive branch “responsible for ensuring accountability, transparency, and integrity in the operation of state executive branch agencies and programs.” Classified as a public official, the inspector general will report directly to the governor.

An inspector general must be appointed by Feb. 1, 2027.

The governor will appoint that person to a five-year term; however, they will be subject to a three-fifths supermajority confirmation by the Senate. A newly created eight-member joint House-Senate commission will recommend candidates; however, the governor does not have to select a candidate recommended by the commission. The commission creation part of the law took effect May 16, 2026.

The inspector general may only be removed by the governor before term expiration for cause after a public hearing conducted by the governor and with approval of the House and Senate.

In addition to investigating fraud in state programs, 11 specific inspector general duties are prescribed in the law:

• establishing standards and best practices concerning the operation, investigations, and fraud prevention processes of agency inspectors general and periodically review agency compliance with these standards and practices;

• alerting relevant state agencies when there is a credible allegation of fraud or misuse;

• facilitating information sharing between agencies and coordinating investigations involving multiple agencies;

• evaluating the performance of agency inspector general offices and recommend improvements;

• conducting inspections, evaluations and investigations of agencies and programs, with a focus on recipients of public funds and publicly funded services;

• referring matters for civil, criminal, or administrative action to the Office of the Inspector General Anti-Fraud and Waste Bureau, Bureau of Criminal Apprehension, the attorney general's office, the federal Department of Justice for federal programs, or other appropriate authorities;

• recommending legislative or policy changes to improve program efficiency and effectiveness;

• publishing reports on completion of investigative findings, recommendations and outcomes of inspector general activity;

• investigating a private entity or local unit of government administering a state program, or any private recipient of state funds or services, to ensure proper use of state funds;

• submitting an annual summary of office work to the Legislative Inspector General Advisory Commission and making it public; and

• maintaining a list that includes each program and individual for which the inspector general has obtained a court order or made a recommendation to freeze or cease payment.

In all matters relating to official duties, the inspector general will have subpoena power.

State officers and employees must now report evidence of the unlawful use of public funds or property to the legislative auditor. That information will also go to the Office of the Inspector General. Additionally, the legislative auditor will be required to refer all credible reports from the public about potential or misuse to the office. The legislative auditor will be permitted to coordinate investigations with the inspector general when coordination will conserve resources and not compromise a review or investigation.

State agencies will be required to prominently post on their website the fraud reporting tools administered by the Office of the Inspector General and the Office of the Legislative Auditor.

Beginning Jan. 1, 2028, the office will have the authority to appoint licensed peace officers and establish a law enforcement agency to be called the Inspector General Anti-Fraud and Waste Bureau to conduct statewide investigations and make arrests.

Current Department of Education inspector general staff will be embedded within the new office; however, they will still office at the department to focus on its programs. Statutes establishing and governing work within the department will be abolished the day after the new office assumes responsibility for the work.

The law provides $7.29 million in Fiscal Year 2027 funding and sets a $23.01 million base for the 2028-29 biennium.

HF1338/SF856*/CH92



State Government

Quartet of payments comprise multi-million-dollar claims law

Each year, the joint House-Senate Subcommittee on Claims decides which tort claims against the state should be funded.

This year’s law contains just over $5.1 million in Fiscal Year 2027 payments, including $4.5 million to Marvin Haynes. He was wrongfully incarcerated for 19 1/2 years on a murder conviction that was overturned because it was based on false evidence and due process was violated.

Haynes sought relief under the Imprisonment and Exoneration Remedies Act that provides a compensation process for cases where a person was exonerated of a felony for which they were wrongfully incarcerated.

Also under the act, Clayton Groves will receive $350,000 for spending nearly 52 months in prison before his sexual misconduct conviction was vacated by the Minnesota Court of Appeals, and James Davis will be paid $250,000. He spent almost three years in prison on the exonerated convictions before it was vacated “due to ineffective assistance of counsel.”

The law also contains a $4,570 payment to Mark Carroll for a personal injury claim. He sustained permanent right ankle injuries while performing assigned duties at the Stillwater prison.

State statute permits a claim “for losses suffered while incarcerated in a state correctional facility or for injuries suffered by and medical services provided to persons injured while performing community service or sentence-to-service work for correctional purposes or while incarcerated in a state correctional facility.”

The law, which takes effect July 1, 2026, is sponsored by Rep. Luke Frederick (DFL-Mankato) and Sen. Doron Clark (DFL-Mpls).

HF5074*/SF5202/CH105



State Government

Second revisor’s law makes trio of small changes

A second revisor’s law makes three small corrections to laws previously passed. The errors, including a missing effective date, were found in the final few days of the 2026 session.

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

HF5067/SF5200*/CH131



State Government

Fund established to upgrade county human services program technology

Minnesota is among a shrinking number of states that administer their human services programs at the county level.

In recent years, urgency has grown to upgrade the information technology used to administer those programs — some of which has not been updated in decades — especially since federal mandates were signed into law in 2025 requiring states to develop more stringent oversight of human services programs.

A new law taking effect July 1, 2026, establishes a state fund to modernize the IT systems used by state agencies, counties and tribal nations to administer human services programs. It also creates a Human Services Modernization Advisory Council and a Legislative Commission on Human Services Systems.

The law includes General Fund or new modernization fund appropriations in Fiscal Year 2027 of:

• $27.94 million to the Department of Children, Youth, and Families;

• $15 million to advance fraud prevention and detection;

• $11.46 million to the Department of Human Services;

• $11.42 million to Minnesota IT Services; and

• $10 million for priority upgrades to the IT systems that counties use to administer state human services programs.

Minnesota Management and Budget officials must also transfer just under $50 million in Fiscal Year 2027 from the General Fund to the Human Services Systems Modernization Fund, and must transfer money to the new fund if its balance at the end of a biennium is less than $50 million.

A Human Services Systems Modernization Fund will be established to provide a funding source for multiyear modernization of human services systems. Funding sources include money appropriated or transferred to the fund by law; money transferred to the fund under an interagency agreement or other lawful agreement; federal financial participation; and gifts, grants, donations and other contributions.

Dollars may only be distributed in consultation with the Human Services Systems Modernization Advisory Council.

The funds must be used only for eligible multiyear modernization activities that replace,

modernize, consolidate, integrate, migrate, or substantially enhance legacy human services systems and shared technology infrastructure used by the Department of Human Services; the Department of Children, Youth and Families; counties; federally recognized Indian Tribes located in Minnesota; providers; beneficiaries; and other program partners.

Minnesota IT Services must develop a preliminary multiyear modernization plan by March 1, 2027, and — beginning Feb. 1, 2027, and annually thereafter — submit a report to the Human Services Systems Modernization Advisory Council and the Legislative Commission on Human Services Systems.

The Human Services Systems Modernization Advisory Council is tasked with providing recommendations on the planning, prioritization, governance, financing, development, implementation, integration, replacement and modernization of current and future human services systems. Its work will be supported by a $3.9 million Fiscal Year 2027 appropriation.

The council must consist of the commissioners (or their designees) from the Department of Human Services, Department of Children, Youth, and Families, and Minnesota IT Services, as well as two members appointed by the Association of Minnesota Counties; two members appointed by the Minnesota Association of County Social Service Administrators; and one member appointed by the Minnesota Indian Affairs Council.

Beginning Feb. 1, 2027, the council must annually submit a report to the Legislative Commission on Human Services Systems.

To provide legislative oversight, monitoring and recommendations regarding the planning, financing, procurement, development, implementation, operation and modernization of human services systems a Legislative Commission on Human Services Systems is established. Its Fiscal Year 2027 appropriation is $559,000.

Comprised of four members of the House of Representatives and four members of the Senate, each chamber represented by two members from each party, the commission must annually, beginning Feb. 15, 2028, provide a report to the Legislature.

Initial appointments for both the advisory council and the commission must be made by Aug. 15, 2026, and the first meeting must be convened by Sept. 15, 2026.

HF744/SF334*/CH120



State Government

Reporting date for the disaster assistance contingency account modified

The annual reporting date for Minnesota Management and Budget to report to the Legislature on disaster assistance account appropriations and expenditures from the previous calendar year will change from Jan. 15 to Jan. 31.

Rep. Pete Johnson (DFL-Duluth) and Sen. Doron Clark (DFL-Mpls) sponsor the law that takes effect Aug.1, 2026.

HF3771/SF3958*/CH60



State Government

Local media funding, Hortman state park working group and no pennies in state government law

What started as a bill to provide additional funding for 17 independent locally programmed and managed radio stations across the state blossomed into a law includes more than a dozen changes related to state government.

Sponsored by Rep. Jim Nash (R-Waconia) and Sen. Heather Gustafson (DFL-Vadnais Heights), the law takes effect July 1, 2026, unless noted.

Effective May 28, 2026, it contributes to the almost $1.83 million in Fiscal Year 2026 for grants to a quintet of public television stations in Greater Minnesota for operations and $100,000 in Fiscal Year 2027 to the Association of Minnesota Public Educational Radio Stations, better known as AMPERS, for resources, software and other training to help its member stations consolidate resources and expenses. And it decreases the statutory minimum number of required staff per radio station needed to qualify for state funding from two full-time equivalents to 1.5.

To help with this funding, the law cancels $1 million of unused funds from a previous allocation for implementation of the Department of Children, Youth, and Families.

[MORE: View the spreadsheet]

Other Fiscal Year 2027 financial changes, effective July 1, 2026, include:

• reducing by $1.84 million — from $4.92 million to $3.07 million — money for the Department of Human Services to coordinate with the newly created Office of Inspector General;

• $561,000 to Minnesota IT Services for data sharing between agencies;

• an additional $264,000 for creation of the Office of Inspector General;

• $262,000 to the Department of Education for data sharing preparation; and

• $86,000 for administrative costs of the Mark and Melissa Hortman Memorial State Park working group.

The working group is charged with making recommendations for the creation of the Melissa and Mark Hortman Memorial State Park within the Capitol Area. It must convene its first meeting by Aug. 15, 2026, and a report is due to the Legislature by Feb. 1, 2027. This provision took effect May 28, 2026.

Among its policy provisions the law will:

• effective Feb. 1, 2028, charge the Department of Administration with developing a grantee fraud rating system policy informed by the principles of vendor risk management;

• require the department to provide a template summary page for use by agencies that award grants;

• help alleviate the penny problem by, effective May 28, 2026, allowing state agencies and parties engaging in transactions on behalf of state agencies, to round cash transactions, as follows: when the amount ends in 1, 2, 6, or 7 cents, the agency must round down to the nearest nickel; when it ends in 3, 4, 8, or 9 cents, the agency must round up to the nearest nickel;

• effective May 28, 2026, allow the Minnesota Historical Society to contract with any person or entity for management and operation of state historic sites. Current law permits contracts with counties, municipalities, and local historical societies;

• extend the expiration date for the Legislative Commission on Cybersecurity from Dec. 31, 2028, to Dec. 31, 2035;

• move from April 1 to May 1 of each odd-numbered year when the Compensation Council must determine the salaries of constitutional officers, commissioners and other agency heads, and the chairs of the Metropolitan Council and the Metropolitan Airports Commission, and daily compensation for voting members of the Direct Care and Treatment executive board.

• change a provision in the health insurance benefit plans offered in the non-represented employees compensation plan and the managerial plan;

• provide for continuing operations of the Legislature in advance of it becoming duly organized;

• reduce from 10,000 to 5,000 the number of legislative manuals that the Office of the Secretary of State is required to print and distribute to specified recipients; and

• modify statutes pertaining to the Board of Barber Examiners and Board of Cosmetology Examiners licensing and regulations. These have various effective dates.

HF4591*/SF4889/CH119



State Government

Strengthening prevention by withholding payments to suspected fraudsters

The ability of state agencies to stop payment to program participants suspected of fraud will be strengthened.

A 2025 law allows state agencies 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. The provision is set to expire July 1, 2027.

Taking effect Aug. 1, 2026, a new law removes the 60-day cap and expiration date, and will lower the evidentiary standard to a credible allegation of fraud that is verified by the agency. An agency’s decision can no longer be appealed to the state court of administrative hearings, rather the participant can request administrative reconsideration by the agency.

Agencies will be permitted to notify each other and can withhold payment if a potential fraudster collects payments from more than one agency and if doing so will not compromise an active investigation. And the definition of “program participant” will expand to include individuals and legal entities.

Further, the Department of Human Services (beginning Nov. 30, 2026) and the Department of Children, Youth, and Families (beginning Jan. 1, 2027) will be required to annually provide a report to the Legislature on program integrity functions within the department.

To improve state grantmaking, the law will also make statutory changes by:

• adding to the definition of a grant recipient to clarify grants will be terminated for both individuals and any related parties if convicted of fraud;

• refining Department of Administration authority to approve agency-requested exceptions to policy requirements on a more granular level;

• removing Department of Administration authority to share the name of a whistleblower with the agency; and

• making technical changes to cross references.

Rep. Kristin Bahner (DFL-Maple Grove) and Sen. Amanda Hemmingsen-Jaeger (DFL-Woodbury) are the sponsors.

HF3629*/SF4149/CH122



Taxes

Tax law changes include increase in homestead credit refunds, fraud tax

The 2026 version of the collection of tax provisions offers $40.3 million in tax aids and credits and $16.2 million in increased revenue. That results in a net General Fund reduction of $24.1 million.

The law includes an increase in homestead credit refunds, a transfer of General Fund money to help reduce vehicle registration fees, the creation of a new “fraud tax” and a direct free file system, and several items designed to pull the state’s tax code into conformity with changes made at the federal level over the past three years.

Rep. Greg Davids (R-Preston) and Sen. Ann Rest (DFL-New Hope) sponsor the law.

Here are some highlights of the law.

Article 1: Federal Conformity

The law adopts most of the federal income tax changes included in Public Law 119-21, also known as the One Big Beautiful Bill Act (OBBBA). All are effective beginning in tax year 2026, except where indicated.

It adopts all that act’s changes, except that it:

• limits the charitable contribution deductions to individuals to contributions in excess of 1% of the contribution base (the limit under OBBBA is 0.5%);

• limits distributions from section 529 plans to be used for postsecondary credentialing expenses, effective at the same time the changes in federal law are effective for federal purposes;

• doesn’t adopt the federal exclusion for employer student loan payments and freezes the state exclusion from gross income for other educational assistance payments at $5,250;

• retains the pre-OBBBA inflation indexing on the exclusion from gross income for transportation fringe benefits;

• doesn’t adopt OBBBA’s provision giving hazard duty pay for individuals performing services in the Sinai Peninsula, Kenya, Mali, Burkina Faso, and Chad;

• doesn’t adopt a federal provision allowing financial institutions a 25% exclusion from gross income on interest earned from loans secured by rural and agricultural property;

• doesn’t adopt provisions allowing business meal deductions for meals provided on fishing vessels, fish processing facilities, oil and gas platforms, and food and beverages that are sold in a bona fide transaction;

• decouples from federal C corporation rules allowing immediate expensing of research and experimental expenditures, effective beginning in tax year 2022;

• decouples the state dependent care credit from the federal dependent care credit and doesn’t adopt the expansion of that credit in OBBBA; and

• doesn’t adopt the “look-through” rule for determining subpart F income and net Controlled Foreign Corporation tested income.

Article 2: Individual Income and Corporate Franchise Taxes

Sustainable aviation fuel (SAF) tax credits: The law allows a supplemental tax credit of 2 cents per gallon, up to $2 per gallon total, for SAF projects meeting certain carbon intensity reductions, effective retroactively beginning in tax year 2025. It also increases and expands the amount of money allocated to the Sustainable Aviation Fuel credit from $11.6 million from Fiscal Years 2025 through 2027 to $36.9 million from Fiscal Years 2025 through 2035, effective retroactively beginning in tax year 2026. And it expands the expiration of the credit through 2035, effective May 28, 2026.

Beginning farmer income tax credits: The law uncaps the $4 million beginning farmer credit allocation for tax year 2026 only.

Pass-through entity taxes: The law extends the expiration of the tax for tax years 2026 and 2027 and conforms the change for taxes paid to other states. It also changes the pass-through entity tax definition of net income to conform to a previous change allowing the assignment of resident pass-through owner income to Minnesota for purposes of determining the pass-through entity tax base, effective May 28, 2026. It allows the Department of Revenue to disallow the individual income tax credit for the pass-through entity tax if the tax liability of the pass-through entity has not been paid, effective May 28, 2026. And it provides that no addition is imposed to the tax penalty for pass-through entity tax estimated payments, effective for tax year 2026 only.

Direct free file program: The law requires the Revenue Department to establish an electronic system available on its website through which taxpayers can directly file their tax returns for free, with no limits to access based on income. The system must allow taxpayers to file and claim six individual income tax credits. The department is also permitted to establish a system through which taxpayers may file a federal return for free. Software vendors currently providing paid tax preparation services to Minnesota taxpayers are not eligible to participate in the system. The Revenue Department is required to use funds in the tax filing modernization account (now slated to expire in 2029) to pay for the system established in the bill. The law also appropriates $2.3 million in Fiscal Year 2027 for the direct free filing system, and sets the base for that appropriation at $3.5 million in Fiscal Years 2028 and 2029. All changes are effective May 28, 2026.

Nursing facility workforce wage supplement program: The law establishes an individual income tax subtraction for one-time payments to nursing facility workers, effective for tax year 2026 only.

Article 3: Sales and Use Tax

This article creates an exemption for the sale of the privilege of admission to certain events sponsored by the PGA (effective for sales and purchases made after June 30, 2026), and allows businesses within a tourism improvement district to collect a service charge from purchasers, exclusive of sales tax (effective retroactively for sales and purchases made after June 30, 2025).

Article 4: Property Tax Aids and Credits

Among the various changes related to property taxes and state aids to local governments, provisions in this article allow the new city of Northern to be eligible for local government aid in 2027. Here are some of the other provisions.

Seasonal tax base replacement aid: The law establishes a new school district aid that reduces a portion of voter-approved operating referendum levies in school districts with class 4c(12) seasonal recreational property. This section is effective for taxes payable in 2027 and later.

Property tax exemptions for property owned by the Fond du Lac Band of Lake Superior Chippewa: The law modifies an exemption for a property in Duluth and establishes an exemption for a property in Cloquet. Both are effective beginning with assessments and taxes payable in tax year 2027.

Homestead resort property: Tier thresholds for class 1c homestead resort properties are increased from $600,000 to $1.5 million for the first tier and from $2.3 million to $4.5 million for the second tier, effective beginning with assessment year 2026.

Local homeless prevention aid: Its expiration is extended from 2028 to 2032.

Lake City: The city is authorized to establish a port authority by Jan. 1, 2027, but the port authority’s powers are modified by removing its authority to issue debt or bonds or to exercise the power of eminent domain. This is effective May 28, 2026.

Homestead credit refunds: The homestead credit refund for refunds based on taxes payable in 2026 is increased by 14.88 percent, effective only for property taxes payable in 2026.

Article 5: Mineral Taxes

This article establishes an alternative distribution of the proceeds of the taconite production tax from Mesabi Metallics. Proceeds from the company’s production tax will be used to increase payments to various school districts and municipalities. These increases will be covered by reductions in distributions to other funds. All the changes are effective once Mesabi Metallics starts production.

Article 6: Tax Increment Financing

This article clarifies the conditions under which authorities must either return increment in excess of tax increment financing costs approved in a tax increment financing plan or modify their tax increment financing plans. It also modifies or extends special tax increment financing authority for the cities of Chaska, Columbia Heights, Eden Prairie, Hopkins, Mountain Lake and Wayzata.

Article 7: Public Finance

This article shortens the notice period prior to issuing county transportation bonds from 14 days to 10 days, and removes a requirement that port authority bonds mature serially.

Article 8: Miscellaneous

Among other provisions, this article extends the sunset on the mortgage and deed taxes in Hennepin and Ramsey counties to the end of 2036. Here are some other provisions.

Fraud tax: The law imposes a new tax equal to 100% of amounts obtained through public program fraud, effective for convictions of fraud in 2026. It also allows for information sharing between the Bureau of Criminal Apprehension’s financial crimes and fraud section and the Revenue Department (effective May 28, 2026), as well as between the Office of Inspector General and the Revenue Department, effective Jan. 1, 2027. It imposes personal liability for not paying the fraud tax, and requires a defrauded state agency to certify conviction information to the Department of Revenue, both effective for convictions of fraud beginning in 2026. Revenue collected from the tax is required to be deposited in a newly created tax relief account for use in reducing the first-tier rate for a taxable year, effective for convictions of fraud in 2026. After two consecutive rate reductions, money in the tax relief account must be deposited in the General Fund.

Claims for a refund: Taxpayers can file a claim for a refund if they’ve overpaid tax for a given year, but it is now limited to three-and-a-half years from the date the return was due, including any extension granted, and allows a claim for a refund within two years from the date that tax penalties or interest was paid, effective May 28, 2026.

Funding for a study on nuclear energy: The law appropriates $500,000 to the Department of Commerce for a contract with the Great Plains Institute for a study on nuclear energy, and requires a legislative report on the study to be submitted by Feb. 1, 2027.

Minnesota Forward Fund: This Department of Employment and Economic Development fund is designed to facilitate private investment in business attraction, retention and expansion in Minnesota. The law cancels $15 million for a Fiscal Year 2024 appropriation and transfers $15 million from the fund to the General Fund in Fiscal Year 2027.

Transfers: Under the law, $75 million is transferred from the driver and vehicle services operating account to the General Fund in Fiscal Year 2027. It also returns up to $40 million to the General Fund of an unused tax-forfeited settlement appropriation in the possession of a claims administrator.

Family homeless assistance and prevention program: In Fiscal Year 2026, a $38 million appropriation from the General Fund is provided to the Minnesota Housing Finance Agency for this program.

Articles 9-11

In these articles, nonresident partners in a partnership with Minnesota income tax liability are allowed to file composite returns under some conditions, and there’s some clarifying language on the definition of net income related to accelerated gains. But the provisions in these articles are primarily technical corrections requested by the Department of Revenue. For example, they remove and repeal obsolete property tax programs and remove references to the expired JOBZ (Job Opportunity Building Zones) program in state law.

HF2438*/SF2082/CH128



Transportation

Flashing red lights on a school bus mean ‘Stop!’ for other motorists

A law that took effect March 28, 2026, modifies the conditions when a vehicle driver must stop for a school bus, clarifying that it is based only on activation of the flashing red light system on the bus.

It also adds language stating that flashing amber lights on a school bus serve as notice to any approaching vehicle that the school bus is stopping and will soon exhibit flashing red lights.

Previous law said that a driver approaching a school bus must stop at least 20 feet away from the bus and remain stopped while the red light system is activated and the school bus stop arm is extended. But an appeals court interpreted that language as requiring a driver to stop once the stop arm is extended, not while it is in the process of extending out. This law clarifies that activation of the red light system is the signal to stop, regardless of whether the stop signal arm is extended.

Rep. Keith Allen (R-Kenyon) and Sen. Ann Johnson Stewart (DFL-Wayzata) are the sponsors.

HF3436/SF3623*/CH41



Transportation

Highway in Zumbrota renamed for officer and firefighter

The section of Trunk Highway 58 that is in Zumbrota will be designated as “Officer / Firefighter Gary L. Schroeder, Jr. Memorial Highway.”

Schroeder served as a peace officer and firefighter in Zumbrota before dying in April 2023. Funds for the memorial signs must come from non-state sources.

Sponsored by Rep. Steven Jacob (R-Altura) and Sen. Steve Drazkowski (R-Mazeppa), the law takes effect Aug. 1, 2026.

HF3593*/SF3640/CH62



Transportation

‘Kayla’s HOPE Act’ designed to prevent suicides on bridges

The Department of Transportation must identify bridges in Minnesota with a history of suicide-related deaths, and collaborate with the Department of Health to develop best practices, measures and design criteria for suicide prevention in bridge projects.

A law that took effect May 8, 2026, also requires the implementation of suicide reduction railings where appropriate on both trunk highway and local bridge projects.

This state statute is named the “Kayla’s HOPE Act,” for Kayla Gaebel, who died by suicide at Minneapolis’ Washington Avenue Bridge in 2023.

Rep. Bjorn Olson (R-Fairmont) and Sen. D. Scott Dibble (DFL-Mpls) sponsor the law.

HF3169/SF2971*/CH77



Transportation

Tow trucks permitted to use variable message signs

A tow truck will be permitted to display a variable message sign — for example, reading “Keep Left” or “Stalled Vehicle on Shoulder” — while performing emergency services, provided the sign conforms to any standards established in the Minnesota Manual on Uniform Traffic Control Devices.

Sponsored by Rep. Erin Koegel (DFL-Spring Lake Park) and Sen. John Jasinski (R-Faribault), the law takes effect Aug. 1, 2026.

HF3694/SF3888*/CH78



Transportation

School bus rules clarified

Several regulations related to pupil transportation will be modified under a law that takes effect Aug. 1, 2026.

Sponsored by Rep. Lucy Rehm (DFL-Chanhassen) and Sen. Ann Johnson Stewart (DFL-Wayzata), it will expand the definition of “school bus” to include a vehicle used to train school bus drivers.

Commercial driver training schools will be exempted from restrictions on the color, markings, and equipment of a school bus when it is not being used for pupil transportation, but will be prohibited from using the bus’s stop signal arm or specialized lighting system when training on a public street or highway.

School buses will also be required to have a U.S. Department of Transportation number. And Type III vehicles used for pupil transportation will be required to have first aid kits that meet certain state and national specifications.

HF4063/SF3985*/CH85



Transportation

Optometrists can provide statement certifying certain vehicle window tinting

Certain window glazing treatments for tinting are prohibited on motor vehicles operating in Minnesota, but exceptions exist if the driver or passenger has a prescription or statement of medical need from a physician stating that they require glazing for medical reasons.

A new law makes it possible for an optometrist (not just a physician) to issue such a statement of medical need.

Sponsored by Rep. Jim Joy (R-Hawley) and Sen. Jeff Howe (R-Rockville), the law is effective retroactively from July 1, 2025, for prescriptions issued on or after that date.

HF3844/SF3637*/CH89



Transportation

Changes in highway designations include renaming stretch for fallen soldier

Nicole Amor was a resident of White Bear Lake who served in the U.S. Army Reserve for 20 years before being killed by a drone strike in Kuwait on March 1, 2026, among the first American casualties in the region after the U.S. and Israel attacked Iran the previous day.

She will be memorialized on a stretch of Ramsey County State-Aid Highway 96 from U.S. Highway 61 to Interstate 35E near her home, that section of road being designated “Master Sergeant Nicole Amor Memorial Highway.”

in the memorial is part of a new law on certain highway designations. Among its provisions are establishing the requirements of a road authority for such memorials, including designing, erecting and maintaining signs after identifying money from nonpublic sources sufficient to pay all related costs. The Department of Transportation must act as a fiscal agent for those funds. The law also sets out a process for removing signs.

Sponsored by Rep. Bjorn Olson (R-Fairmont) and Sen. Heather Gustafson (DFL-Vadnais Heights), the law took effect May 15, 2026.

HF4987*/SF5149/CH94




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

HPIS New Laws

Main About Search