Minnesota Senate Bill SF435

Minnesota 2025-2026 Regular Session

• Introduced: 1/21/25
• Refer: 1/21/25

Caption

Business impact analysis of proposed legislation provision and appropriation

Summary

SF435 creates a new requirement for the Minnesota Legislative Budget Office to prepare a “business impact note” for any bill when requested by the chair or ranking minority member of the committee or division to which the bill has been referred. The note must estimate the total financial impact on affected businesses, including expenditures, savings, revenue effects, labor-cost changes, and other financial consequences, and it must also assess the bill’s regulatory burden on businesses. The bill defines “business” broadly to include for-profit and nonprofit entities with fewer than 100 employees. The bill specifies that the business impact note must address whether a proposal increases or decreases burdens such as reporting, recordkeeping, fees, training, testing, licensing, background checks, inspections, or insurance requirements. It also requires the note to identify assumptions and supporting data, and it allows the Legislative Budget Office to suggest alternative methods to achieve a bill’s purpose if those alternatives would be less costly or less burdensome for businesses. The bill includes an appropriation from the general fund in fiscal year 2026 to support these duties.

Impact

If enacted, SF435 would add a new statutory section to Minnesota Statutes chapter 3 and expand the analytical responsibilities of the Legislative Budget Office. It would create a formal process for business impact analysis of proposed legislation, similar in concept to fiscal notes but focused on small business and regulatory effects. The bill would affect legislative procedure by giving committee leadership a mechanism to request these notes and by requiring state agencies to provide information needed to complete them. It also includes an appropriation to fund the new workload, though the amount is left blank in the introduced text.

Sentiment

The available record shows no committee transcript, vote tally, or recorded floor debate, so there is no direct evidence of support or opposition from the legislative history provided. Based on the bill’s structure, it appears intended to improve transparency about how legislation affects businesses, especially smaller employers, and to inform lawmakers before action is taken. The absence of recorded votes or discussion means overall sentiment cannot be measured from the supplied materials.

Contention

The main potential points of contention are the added administrative burden and cost of requiring business impact notes for bills, the scope of bills eligible for analysis, and whether the Legislative Budget Office should be tasked with making alternative policy suggestions. Supporters would likely emphasize better information for lawmakers and protection for small businesses, while critics may question the workload, the need for a new appropriation, and whether the note process could slow the legislative process or duplicate existing fiscal analysis. The bill’s definition of business, which includes nonprofits and entities with fewer than 100 employees, may also be debated because it sets the range of affected parties broadly.