Transcript Highlights:

• So, we have asked for a base pay increase of $53,000 to $65,000.
• The base salary and the recommended $12,000 increase to $65,000.
• Increase. Bailiffs are paid $42,000 a year.
• The judicial salary increase is the same, and the staff salary increase. I've said it last year.
• We've asked for a 5.5% pay increase.

Committee: House A&B Judiciary Subcommittee

Transcript Highlights:

• Reforms would increase this capacity statewide.
• Increase to Medicaid, I think you said, 30 years ago.
• That slope is maybe a little bit misleading because that increase is... a lot of that increase is from
• Those will increase revenues.
• room, and that would increase the uncompensated care.

Committee: House Legislative Health & Human Services Committee

Transcript Highlights:

• revenue, increasing taxes on Minnesotans, given what we have all seen on the increases and the spending
• tax increases proposed in what<00:09:32.720><c> we've</c><00:09:33.040><c> presented.
• We're just not doing 13% increases; we're doing a 2% increase, and I think around education.
• not doing 13% increases we're doing a<00:26:29.760><c> 2%</c><00:26:30.400><c> increase</c><00:26:30.960
• </c><00:27:15.360><c> the</c> drivers to be able to increase the drivers to be able to increase the spending

Transcript Highlights:

• The bill is estimated to increase local revenues by about $4 million for the 2027-29 biennium.
• Do we want to increase that? Do we want to maintain it? What do we want to do?
• It also increases the total lodging tax limit for those cities to 15.2%.
• That fiscal note shows a $3,000 increase in state sales tax in fiscal year 2027 and a $37,000 increase
• You forced upon us the largest tax increase in history, and here you are asking for even more.

Summary: House Finance heard testimony on several tax and local government bills. HB 2278 would remove the July 1, 2027 expiration on the additional $3-per-room-night tourism promotion area lodging charge; supporters from destination marketing organizations said the revenue has produced strong returns for tourism and events, while questions were raised about how the local ordinances would continue. HB 2583 would lower the population threshold for cities to impose a higher lodging tax and expand authority for public facilities districts; the sponsor and Vancouver supporters said it would help fund a proposed performing arts center and other tourism investments, while hospitality, short-term rental, and some local advocates raised concerns about stakeholder input, equity, and whether the bill was too broad. HB 2224 would change how a city forming a single-city fire protection district handles levy reductions and would exempt part of one levy from the local tax limit; city and firefighter groups supported it as a needed tool for fire and EMS funding, while hospital districts and tax opponents warned about prorationing, governance, and higher taxes. HB 2325 would create a statewide tourism self-supported assessment program funded by participating tourism businesses; supporters from tourism, hospitality, wine, and brewing groups said it would provide a competitive, industry-driven statewide marketing program, while members questioned impacts on specific communities and the need for broader local benefits. HB 2431 would expand from 15 to 50 days the amount of fundraising activity allowed in nonprofit public assembly halls and meeting places, and the Grange supported it as a practical way to keep community halls open. After public testimony, the committee moved into executive session and advanced three bills. HB 2584, a sales and use tax exemption for qualifying farm equipment sold to eligible farmers, passed 14-0 with one excused. HB 2610, which modifies the property tax exemption for nonprofit homeownership development, also passed 14-0 with one excused. HB 2615, which codifies the voluntary disclosure tax program and authorizes temporary tax amnesty, likewise passed 14-0 with one excused. The chair also announced a deadline for amendments on items to be acted on the following day.

Transcript Highlights:

• This will increase costs to litigants.
• What it does is increase incarceration without increasing safety.
• What it does has an increase in incarceration without increasing safety.
• Can you point to where this bill increases mandatory minimums? It does not increase the minimums.
• Like increased sentencing might be a different subject.

Committees: House Judiciary , House Judiciary and Civil and Criminal Jurisprudence

Transcript Highlights:

• Phoenix construction index that we've been using for the last 12 years, our staff suggests a 4.8% increase
• at that time, so there was no need to increase that adjustment.
• I would like to know what it was the previous year, how much of the increase, what year over year was
• That is just a huge increase. Mr.
• Does that also play a factor in the Increased costs of this program? Mr.

Committee: Joint Joint Legislative Budget Committee

Transcript Highlights:

• Is, again, increasing the use of data-driven practices, increasing support to teachers, so it's that
• Measure that would increase the appropriation, or excuse me, it would increase the administrative carve-out
• In fiscal 2024, we saw an increase in that program, and we're in the second year of that increase.
• Increased challenges for peers in the classroom.
• will increase.

Bills: HF2430 , HF2433

Committee: House Education Finance

Transcript Highlights:

• </c> that uh increases that uh increases u<00:06:14.479><c> the</c><00:06:14.800><c> actual</c><00:06
• </c><00:10:01.600><c> And</c><00:10:01.760><c> then</c> we think the increase would be.
• And then we think the increase would be.
• And how soon will this increase happen? >> Um, that's really up to the Public Service Commission.
• </c> and how soon will this increase happen? and how soon will this increase happen?

Committee: House Madison County Legislation

Transcript Highlights:

• I mean, we saw an increase of 25% across the board, across the entire United States.
• Let's just say 10%, okay, because of increased cost.
• of the yearly increase then should have seen a, let's just say, 10% reduction.
• Okay, so then everybody from that point gets a 10% increase.
• Dealing with increases in points and some of the other, really the increases in points and looking at

Summary: The conference committee on House Bill 1229 met to try to resolve differences between the House and Senate versions of the bill, which deals with reporting certain traffic offenses to driving records and, by extension, insurance companies. House members argued that the House position was driven by concern that reporting lower-level offenses would unfairly raise insurance costs, while Senate members said they opposed removing reporting because they wanted transparency and believed people who break the law should face consequences. The discussion focused heavily on whether the bill should continue to exclude offenses at two points and below from reporting, or whether a narrower compromise such as one point and below might be acceptable. Committee members and DOT Driver and Vehicle Director Brad Schaefer reviewed a color-coded list of offenses and how they are currently reported. Schaefer explained that salmon-shaded items automatically appear on driving records because they trigger suspension or revocation, green items are commercial-driver violations that also trigger suspension, and the remaining unshaded zero-, one-, and some two-point violations were the main subject of the conference discussion. Members debated whether some low-point items, such as equipment violations, no child restraint, distracted driving, and failure to use due care, should remain reportable, while acknowledging that serious offenses like fleeing and human trafficking would remain reportable regardless. No final compromise was reached. Several members expressed interest in a possible middle ground limited to one-point-and-below offenses, but others worried the Senate would not accept it. The committee agreed to adjourn and reschedule after members had more time to review the list and consider possible amendments.

Transcript Highlights:

• </c><01:30:12.040><c> and</c> units have positions increase and units have positions increase and certain
• We didn't increase the hourly pay.
• </c> don't consistently see those increases don't consistently see those increases and<01:40:42.119><
• I just... if there's a way to increase that, I guess any increase triggers a requirement to go to the
• </c><02:11:55.840><c> rebate</c> the back end is higher increase rebate the back end is higher increase

Summary: The meeting began as a Division 3 work session on HB 71, but much of the early discussion focused on whether a previously discussed non-germane amendment could be considered or voted on that day. Members and the chair debated process and notice requirements, and the clerk’s guidance was that the amendment needed a separate public hearing before the full Finance Committee. The amendment was described as requiring DHHS contracts and addenda to include compliance with the Patient Bill of Rights, with a repeal date so the requirement would expire on November 30, 2026. The motion to move OTP on HB 71 with the amendment was withdrawn, and the committee agreed the amendment would be scheduled for a future full Finance hearing instead. The committee then turned to HB 71 itself and heard testimony from DHHS representatives John Williams and Jenny O’Higgins on the fiscal note and policy implications. Members questioned the estimate that the bill could put $12 million to $18 million per year in federal funding at risk, including HUD and Office of Refugee Resettlement funds. DHHS explained that the estimate was based on a broad reading of the bill’s term “specified alien,” which they said was not clearly defined in the bill, so they analyzed it using the federal definition of “alien” and assumed the bill could affect lawfully present non-citizens as well as undocumented individuals. They said the figure represented a worst-case scenario and that they were not claiming the loss was certain. Members also pressed DHHS on whether the bill could affect emergency sheltering in schools, public academies, or institutions of higher learning during disasters. DHHS said the language could create conflicts with federal funding conditions because emergency shelter programs generally cannot impose barriers on who may be sheltered, and they warned that excluding certain people could affect refugee-related and HUD funding. Questions were raised about whether the bill’s language would apply to private institutions as well as public ones, and whether the state could still use schools in short-term emergencies. DHHS said the language was broad, that they could not answer every legal question definitively, and that they would need input from public health and legal staff. No final vote on HB 71 was taken in the portion provided; the committee remained in discussion/work session mode after the amendment motion was withdrawn.

Transcript Highlights:

• And the process of doing that, we're going to have both an increase in quantity and an increase in the
• And the process of doing that, we're going to have both an increase in quantity and an increase in the
• increase?
• </c> would say for the last waiver increase would say for the last waiver increase it it it was<01:20
• , the guardianship rate increase, the BDS service rate increase.

Summary: The Division of Long-Term Supports and Services presented its budget and program overview as part of the Department of Health and Human Services operating budget review. Leadership described the division’s three bureaus—Aging and Adult Services, Developmental Services, and Family-Centered Services—and explained that the division provides guidance, technical assistance, quality monitoring, and contracted provider oversight across the lifespan. Members also discussed staffing, with reported vacancy rates of 4% in Aging and Adult Services, 15% in Developmental Services, and 6% in Family-Centered Services; the division said the higher BDS vacancy rate is partly due to the small number of authorized positions. The governor’s budget had left eight positions unfunded in the division, including three in Aging and Adult Services and five in BDS. A major topic was the division’s roadmap initiatives, especially building a system of care for healthy aging and strengthening developmental disabilities systems through a new reimbursement rate structure. The division said it contracted with an actuary to study DD service costs and found rates had not been reviewed since 2017 and were significantly below actual costs and other states’ rates, contributing to provider shortages even when services are authorized. Members asked about the impact on service delivery and whether rates would need to rise overall; the division said its strategy is to focus on lower-cost services that help people remain in the community. The division also reported waiver enrollment figures, including about 4,161 people on the Choices for Independence waiver, 3,688 average nursing facility residents, 5,061 people on the DD waiver, 228 on the acquired brain disorder waiver, and 488 children on the in-home support waiver, while noting there is no funding waitlist but provider availability remains a constraint. The division highlighted IT modernization as a major accomplishment, especially moving Adult Protective Services and Developmental Services into the New Heights system. Officials said these changes improve case-note access, data retrieval, service authorization tracking, and transparency for providers, and they asked for future oversight discussion focused on IT leverage. Members noted that New Heights maintenance is budgeted in the Office of the Commissioner under class 27 and suggested better transparency on system costs and benefits. The division also reported that it closed out a long-running CMS corrective action plan for BDS on July 1, 2023, and said it is now focused on strengthening the system rather than compliance alone. Other discussion covered the Aging and Adult Services bureau’s name change from Elderly and Adult Services to Adult and Aging Services, intended to avoid negative connotations and better reflect preventative services. The bureau described Adult Protective Services trends involving scams, financial exploitation, self-neglect, and isolation, and explained that it administers the CFI waiver, determines medical eligibility for nursing facility level of care, and braids funding from Medicaid, state funds, Older Americans Act money, Social Service Block Grants, and other grants. Members asked about waiver growth targets and federal consequences if enrollment remains below projections; the division said it would explain the shortfall in a future waiver amendment and did not anticipate a federal penalty. The meeting ended without any votes or formal actions taken.

Transcript Highlights:

• </c> Revenue Increase Revenue Increase Bill<00:01:41.960><c> is</c><00:01:42.080><c> in</c><00:01:42.160
• We oppose any increasing exclusion.
• </c> actually increase costs over time. actually increase costs over time.
• </c> increased from 1,800 to over 1,900. increased from 1,800 to over 1,900.
• </c><01:17:59.000><c> That</c> numbers are increasing. That numbers are increasing.

Bills: HF3493 , HF4114

Committee: House Education Finance

Transcript Highlights:

• </c> simple change was that they did increase simple change was that they did increase a<00:04:24.800
• </c> little choice but to pay the increasing little choice but to pay the increasing rents<00:38:04.640
• </c> because they are looking to increase because they are looking to increase this<00:38:08.720><c>
• Their value is only going to increase as they increase land rents.
• as they increase land going to increase as they increase land rents. rents. rents.

Bills: HF4234 , HF484 , HF483 , HF2614

Committee: House Housing Finance and Policy

Keywords: HF4234, Minnesota private activity bonds, tax-exempt bonds, bond cap, aggregate bond limitation, residential rental projects, multifamily housing, affordable housing finance, housing bonds, public finance, bond allocation, private activity bond cap, Minnesota Statutes 474A.02, tax committee, natural gas, gas hookups, residential construction, energy policy, local control, state preemption

Transcript Highlights:

• But I'll turn to President ... million uh target in increase with the million uh target in increase with
• </c><00:26:41.120><c> I</c><00:26:41.360><c> noticed</c> the um increase in spending.
• I noticed the um increase in spending.
• Meredith said there are reductions in things that just recently were increased.
• Uh, that's an increase of $200 million over the last year.

Committee: Senate Higher Education

Transcript Highlights:

• the use of datadriven again increasing the use of datadriven practices<00:13:28.160><c> increasing</
• </c><00:13:35.120><c> the</c> coaching component and increasing the coaching component and increasing
• In fiscal 24, we saw an increase in that program, and we're in the second year of that increase.
• will increase.
• will increase.

Bills: HF2430 , HF2433

Committee: House Education Finance

Keywords: education finance, teacher training, Read Act, state aid, school funding, education funding, children with disabilities, transition aid, special education, school district consolidation

Transcript Highlights:

• This primary care issue is going there might be an increase in premium, a slight increase in premium
• This primary care issue is going there might be an increase in premium, a slight increase in premium
• Um, increased cannabis use does increase the risk of psychosis and progression to schizophrenia.
• </c> increased access will lead to increased increased access will lead to increased use<01:08:00.240
• ><c> increase</c><01:08:26.880><c> the</c> increased cannabis use does increase the increased cannabis

Summary: The committee first heard SB 888, which would bar operators of smart household security devices from sharing user data with law enforcement unless the user consents or police obtain a warrant. DCCA’s Office of Consumer Protection offered comments and Judiciary submitted written support. Several individuals also submitted written support. The committee recommended passage with amendments clarifying that the Office of Consumer Protection may enforce violations and adopting Judiciary’s recommended changes, while also deferring the effective date to July 1, 2050. The motion passed unanimously among members present, with one senator excused. The committee then took up SB 2777 on insurance disclosures. The bill would require authorized insurers to disclose claim-handling data to consumers, including claims open at the start of a period, closed with payment, closed without payment, and open at the end of the period. The committee described amendments to clarify the bill, remove a requirement for the DCCA insurance division to handle publication, and defer the effective date to July 1, 2050. The measure was passed with amendments and the recommendation was adopted, with one member voting no and another excused. In a joint Commerce and Consumer Protection/Judiciary hearing on SP2738 relating to tax haven abuse, the Department of Taxation offered comments and the Tax Foundation testified in opposition, arguing the state should rely on IRS audits and existing worldwide reporting rules rather than create a separate state approach. Other written testimony was noted in both support and opposition. The committees recommended passage with amendments adopting Taxation’s technical changes and deferring the effective date to July 1, 2050; the recommendation was adopted, with one senator noting reservations. The joint hearing then moved to health-related bills, including SB 2690 on primary care spending, SB 3103 on energy assistance, SB 3137 on Department of Health authority over food, drugs, and cosmetics, SB 3164 on child welfare service organizations, and SB 3206 on cannabinoids. SB 2690 drew strong support from physicians and advocates who said it would address primary care shortages, especially on neighbor islands, while HMSA and others warned a fixed spending percentage could raise costs and suggested a working group. SB 3164 drew support from child welfare providers and opposition from the Attorney General over indemnification language, and SB 3206 drew mixed testimony: state agencies raised federal-law and vagueness concerns, while hemp and cannabis advocates and some farmers supported the measure and urged broader legalization or amendments.

Transcript Highlights:

• acreage and a 5% increase in yield.
• That the increased costs for equipment, land, and fuel.
• We've seen a 33.67% increase in the cost of diesel from this time last year.
• Ag land in the state of Idaho has seen a year-over-year increase of, excuse me, 4.7%.
• We had an investment in insurance and an increase in market development programs.

Committee: House Agricultural Affairs

Transcript Highlights:

• So, we've seen significant increases through budgets that have been passed by this body.
• With increased funding, you're also empowered with greater flexibility.
• Do we have any data about these percentages that they've used and how much it's increased?
• I was curious how much they’ve increased their base.
• I mean, is it an increase of another $1,000 per student?

Committee: House Education Policy

Transcript Highlights:

• </c><00:32:34.559><c> tax</c> compensate for the increased tax compensate for the increased tax liability
• This increased tax liability is jointly.
• c><00:48:15.440><c> of</c><00:48:15.599><c> a</c> also increases the likelihood of a also increases the
• modifications to increase Potential modifications to increase efficiency<01:04:48.559><c> or</c><01:
• </c><01:16:04.159><c> without</c> installations going to increase without installations going to increase

Committee: Senate Taxes

Transcript Highlights:

• :38.240><c> active</c> sort of modest increases in the active sort of modest increases in the active
• </c> Um but they are entitled to increases Um but they are entitled to increases because<00:53:18.160
• </c> as well as like I said the um increase as well as like I said the um increase in<01:00:14.720><c
• Due to the increased risk of errors, we increased our testing sample size for certain accounts.
• </c> increase. Do you? increase. Do you? &gt;&gt; Yeah. &gt;&gt; Yeah. &gt;&gt; Yeah.

Summary: The Fiscal Committee met on January 23, 2026, approved the December 19, 2025 minutes, and adopted the remaining items on the consent calendar after noting several withdrawals. The committee then took up Department of Safety item FIS 26007, which involved Homeland Security/FEMA grant funding for equipment and UAS-related activities. Senators asked whether any of the funding would support federal civil immigration enforcement or shared operations with federal agencies, and about privacy protections for drone data. The department said the grant is governed by federal parameters, that the state uses the remaining 20 percent after federally directed uses, and that privacy law in this area is evolving. The item was adopted on an 8-2 vote. The committee next considered Department of Environmental Services item 26003, which had been withdrawn by the Senate. A senator said concerns about using the funds for a different project had been resolved after speaking with the commissioner, and the item was adopted without further debate. The committee then moved to Department of Health and Human Services item 260005, a request for about $700,000 in remaining ARPA-related funds for the Hampstead children’s facility project. Commissioners explained that the project had been funded in stages because the original appropriation was based on estimates and bid assumptions, and that the remaining money would cover alternates and finish the project without using general funds. Senators raised concerns about repeated requests for additional money, the adequacy of security, site-selection costs, and why the project had not been fully funded at the outset. The department said the project had been intentionally structured to proceed in phases and that required security would be provided.