House Journal 25th Day Friday, April 25, 2025

A quorum was present.

Swedzinski was excused until 1:00 p.m.

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Pursuant to Rule 10.05, relating to Remote House Operations, the DFL Caucus Leader permitted the following members to vote via remote means between the hours of 11:00 a.m. and 1:00 p.m.: Carroll, Kotyza-Witthuhn and Pinto.

The Chief Clerk proceeded to read the Journal of the preceding day. There being no objection, further reading of the Journal was dispensed with and the Journal was approved as corrected by the Chief Clerk.

REPORTS OF CHIEF CLERK

S. F. No. 3196 and H. F. No. 3006, which had been referred to the Chief Clerk for comparison, were examined and found to be not identical.

Moller moved that S. F. No. 3196 be substituted for H. F. No. 3006 and that the House File be indefinitely postponed. The motion prevailed.

PETITIONS AND COMMUNICATIONS

The following communication was received:

STATE OF MINNESOTA

OFFICE OF THE SECRETARY OF STATE

ST. PAUL 55155

The Honorable Lisa Demuth

Speaker of the House of Representatives

The Honorable Bobby Joe Champion

President of the Senate

I have the honor to inform you that the following enrolled Act of the 2025 Session of the State Legislature has been received from the Office of the Governor and is deposited in the Office of the Secretary of State for preservation, pursuant to the State Constitution, Article IV, Section 23:

S. F.

No.

H. F.

No.

Session Laws

Chapter No.

Time and

Date Approved

2025

Date Filed

2025

1075 5 12:45 p.m. April 24 April 24

Sincerely,

Steve Simon

Secretary of State

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REPORTS OF STANDING COMMITTEES AND DIVISIONS

Stephenson and Torkelson from the Committee on Ways and Means to which was referred:

S. F. No. 1959, A bill for an act relating to state government; establishing a budget for the Department of Military Affairs and the Department of Veterans Affairs; modifying veterans services and benefits provisions; requiring the commissioner of administration to place a memorial plaque honoring Gold Star and Blue Star families on State Capitol grounds; providing benefits to veterans of the Secret War in Laos; requiring county veteran services officers to aid certain additional veterans; establishing a task force; requiring reports; appropriating money; amending Minnesota Statutes 2024, sections 13.461, subdivision 27; 193.143; 197.065; 197.236, subdivisions 8, 9; 197.603, subdivision 1; 197.608, subdivision 6; 197.75, subdivision 1; 197.791, subdivision 4; proposing coding for new law in Minnesota Statutes, chapter 197.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"ARTICLE 1

MILITARY AFFAIRS AND VETERANS AFFAIRS APPROPRIATIONS

Section 1. APPROPRIATIONS.

The sums shown in the columns marked "Appropriations" are appropriated to the agencies and for the purposes specified in this article. The appropriations are from the general fund, or another named fund, and are available for the fiscal years indicated for each purpose. The figures "2026" and "2027" used in this article mean that the appropriations listed under them are available for the fiscal year ending June 30, 2026, or June 30, 2027, respectively. "The first year" is fiscal year 2026. "The second year" is fiscal year 2027. "The biennium" is fiscal years 2026 and 2027.

			APPROPRIATIONS
			Available for the Year
			Ending June 30
			2026	2027

Sec. 2. MILITARY AFFAIRS

Subdivision 1. Total Appropriation

$26,872,000

$27,081,000

The amounts that may be spent for each purpose are specified in the following subdivisions.

Subd. 2. Maintenance of Training Facilities

10,067,000

Subd. 3. General Support

4,391,000

4,600,000

Subd. 4. Enlistment Incentives

12,114,000

The appropriations in this subdivision are available until June 30, 2029.

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If the amount for fiscal year 2026 is insufficient, the amount for 2027 is available in fiscal year 2026. Any unencumbered balance does not cancel at the end of the first year and is available for the second year.

Subd. 5. Emergency Services

300,000

Sec. 3. VETERANS AFFAIRS

Subdivision 1. Total Appropriation

$125,804,000

$126,847,000

The base for this appropriation is $126,756,000 in fiscal year 2028 and each fiscal year thereafter. The amounts that may be spent for each purpose are specified in the following subdivisions.

Subd. 2. Veterans Programs and Services

25,617,000

25,494,000

The amounts that may be spent for each purpose are specified in the following paragraphs.

(a) State Veterans Cemeteries. $3,782,000 each year is for the operation of the state veterans cemeteries.

(b) Veterans Service Organizations. $500,000 each year is for grants to the following congressionally chartered veterans service organizations as designated by the commissioner: Disabled American Veterans, Military Order of the Purple Heart, the American Legion, Veterans of Foreign Wars, AMVETS, and Paralyzed Veterans of America. This funding must be allocated in direct proportion to the funding currently being provided by the commissioner to these organizations.

(c) Honor Guards. $200,000 each year is for compensation for honor guards at the funerals of veterans under Minnesota Statutes, section 197.231.

(d) Minnesota GI Bill. $200,000 each year is for the costs of administering the Minnesota GI Bill postsecondary educational benefits, on-the-job training, and apprenticeship program under Minnesota Statutes, section 197.791.

(e) Gold Star Program. $100,000 each year is for administering the Gold Star Program for surviving family members of deceased veterans.

(f) County Veterans Service Office. $1,610,000 each year is for the County Veterans Service Office grant program under Minnesota Statutes, section 197.608. Of this amount, $20,000 is for a women veterans technical assistance coordinator, $20,000 is for a veteran suicide prevention technical assistance coordinator, and $20,000 is for a justice-involved veteran technical assistance coordinator. Any unencumbered balance in the first year does not cancel and is available in the second year.

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(g) Comprehensive Plan to Prevent Veteran Suicides in Minnesota. The commissioner shall develop a comprehensive plan to prevent Minnesota veterans from dying by suicide. The plan must include:

(1) a community integration and collaboration strategy that brings together veteran-serving organizations to provide veterans with coordinated services and supports, including services and supports related to employment, health, housing, benefits, recreation, education, and social connections;

(2) strategies to promote a sense of belonging and purpose among veterans by connecting veterans with each other, with civilians, and with the veteran's communities through a range of activities, including physical activity, community service, and disaster response efforts; and

(3) an implementation strategy that identifies opportunities to coordinate existing efforts within federal, state, local, and Tribal governments and nongovernmental entities and includes a description of the policy changes and resources that are required to prevent veteran suicides.

The commissioner must submit a report containing the required plan to the chairs and ranking minority members of the legislative committees with jurisdiction over veterans affairs policy and finance by February 15, 2026.

(h) Homeless Veterans and SOAR Program. $1,394,000 each year is to operate the homeless veteran registry and homeless programs and to assist veterans, former service members, and veterans' and former service members' dependents with obtaining federal benefits through the Social Security Administration. The commissioner of veterans affairs may use money for personnel, training, research, marketing, and professional or technical contracts.

(i) State Soldiers Assistance Program. $5,600,000 each year is for veteran financial assistance through the state soldiers assistance program.

(j) Higher Education Veterans Assistance. $1,629,000 each year is for veterans higher education assistance.

(k) Claims and Outreach Office. $3,621,000 each year is for the claims and outreach office to assist veterans and the veterans' families in accessing benefits and services.

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(l) Camp Bliss. $1,000 the first year is for a grant to Independent Lifestyles, Inc., to provide therapy, transportation, and activities customized for veterans who are Minnesota residents and the veterans' spouses, domestic partners, and children at Camp Bliss in the city of Walker. The commissioner of veterans affairs must report to the chairs and ranking minority members of the legislative committees with jurisdiction over veterans affairs on:

(1) the number of veterans and veterans' family members served; and

(2) a detailed explanation of expenditures of the grant money.

(m) Veterans of Secret Guerilla Units and Irregular Forces in Laos Advisory Task Force. $118,000 the first year is for the commissioner to staff and support the work of Veterans of Secret Guerilla Units and Irregular Forces in Laos Advisory Task Force.

(n) Metro Meals on Wheels. $250,000 each year is for a grant to Metro Meals on Wheels to provide: (1) home-delivered meals to veterans; and (2) technical, enrollment, outreach, and volunteer recruitment assistance to member programs. Metro Meals on Wheels must report to the commissioner of veterans affairs and the chairs and ranking minority members of the legislative committees with jurisdiction over veterans affairs policy and finance by September 1 each year with a detailed explanation of how the grant money was used and the number of veterans and service members served by the program. The base for this appropriation is $250,000 in fiscal year 2028 and each fiscal year thereafter.

(o) Hometown Hero Outdoors. $1,000 the first year is for a grant to Hometown Hero Outdoors, a 501(c)(3) nonprofit organization based in Stillwater, Minnesota, to fund outdoor recreational activities and mental health services for currently serving military personnel and veterans to promote positive mental health and interactions with mental health service professionals; to promote longevity and quality of life through outdoor activities and mental health services, including public education; and to ensure that the organization is able to continue supporting persons who are currently serving or have served in the military. Hometown Hero Outdoors must report to the commissioner of veterans affairs and the chairs and ranking minority members of the legislative committees with jurisdiction over veterans affairs policy and finance no later than September 1, 2026, and by September 1 of each subsequent year. Each report must include, at a minimum, a detailed explanation of how the grant money was used and the number of veterans served by the program.

(p) Veterans on the Lake. $1,000 the first year is for a grant to Veterans on the Lake for expenses related to retreats for veterans, including therapy, transportation, and activities customized for veterans. Veterans on the Lake must report to the commissioner of

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veterans affairs and the chairs and ranking minority members of the legislative committees with jurisdiction over veterans affairs policy and finance no later than September 1, 2026, and by September 1 of each subsequent year. Each report must include, at a minimum, a detailed explanation of how the grant money was used and the number of veterans served by the program.

(q) Fishing with Vets. $1,000 the first year is for a grant to Fishing with Vets to organize and conduct guided fishing trips for veterans across Minnesota. Fishing with Vets must report to the commissioner of veterans affairs and the chairs and ranking minority members of the legislative committees with jurisdiction over veterans affairs policy and finance no later than September 1, 2026, and by September 1 of each subsequent year. Each report must include, at a minimum, a detailed explanation of how the grant money was used and the number of veterans served by the program.

(r) Veteran Mentorship Program for Black Youth. $1,000 the first year is for the commissioner of veterans affairs to award a grant to an organization to develop, operate, and administer a veteran mentorship program to prevent youth violence through employing veterans who will mentor Black youth and assisting Black youth in exploring career opportunities in the armed forces. The grant recipient must report to the commissioner of veterans affairs and the chairs and ranking minority members of the legislative committees with jurisdiction over veterans affairs policy and finance no later than September 1, 2026, and by September 1 of each subsequent year. Each report must include, at a minimum, a detailed explanation of how the grant money was used and the number of veterans participating in the program.

(s) CORE Program. $1,475,000 each year is for the Counseling and Case Management Outreach Referral and Education (CORE) program.

(t) LinkVet Call Center. $369,000 each year is for the operation of the state's LinkVet Call Center.

(u) Recently Separated Veterans Program. $300,000 each year is for the operation of the recently separated veterans program. The commissioner of veterans affairs may use Department of Defense and other veteran data that was provided with an appropriate disclosure to assist with connecting veterans to resources and new programming. The commissioner may use money for personnel, research, marketing, technology solutions, and professional or technical contracts.

(v) Minnesota Military and Veterans Museum. $300,000 each year is for a grant to the Minnesota Military and Veterans Museum for museum staff to provide direct services to veterans and their families.

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Subd. 3. Veterans Health Care

100,187,000

101,353,000

(a) $98,137,000 the first year and $99,303,000 the second year may be transferred to a veterans homes special revenue account in the special revenue fund in the same manner as other receipts are deposited according to Minnesota Statutes, section 198.34, and are appropriated to the commissioner of veterans affairs for the operation of veterans homes facilities and programs. The base for this transfer is $99,204,000 in fiscal year 2028 and each fiscal year thereafter.

(b) The department shall seek opportunities to maximize federal reimbursements of Medicare-eligible expenses and provide annual reports to the commissioner of management and budget on the federal Medicare reimbursements that are received. Contingent upon future federal Medicare receipts, reductions to the veterans homes' general fund appropriation may be made.

(d) $1,650,000 each year is for the department to operate the veteran suicide prevention program.

(e) The commissioner of veterans affairs is not required to perform the annual calculation of the cost of care for veterans homes in Montevideo, Preston, and Bemidji in the first year and second year. In the first year and second year, the commissioner must calculate the average daily cost of care per resident by averaging the cost of care of veterans homes in Luverne and Fergus Falls. The commissioner must only use this method of calculating the cost of care of veterans homes in the first year and second year. This paragraph expires June 30, 2027.

ARTICLE 2

MILITARY AFFAIRS AND VETERANS AFFAIRS POLICY

Section 1. Minnesota Statutes 2024, section 13.461, subdivision 27, is amended to read:

Subd. 27. ~~State soldiers assistance program~~ Veterans affairs programs. Access to information for purposes of verifying eligibility for the State Soldiers Assistance Program, the Veterans Stable Housing Initiative, and veterans programs is governed by section 197.065.

Sec. 2. Minnesota Statutes 2024, section 192.49, subdivision 1, is amended to read:

Subdivision 1. Officers. Every commissioned officer of the military forces shall receive from the state, while engaged in ~~any~~ state active service ~~ordered by the governor~~ as defined in section 190.05, subdivision 5a, pay and allowances at the rate now or hereafter paid or allowed by law to officers of the same grade and length of service in the armed forces of the United States, but not less than $130 a day.

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Sec. 3. Minnesota Statutes 2024, section 192.49, subdivision 2, is amended to read:

Subd. 2. Enlisted persons. When called into state active service by the governor, other than for encampment or maneuvers, including the time necessarily consumed in travel, each enlisted person of the military forces shall be paid by the state the pay and the allowances, when not furnished in kind, provided by law for enlisted persons of similar grade, rating, and length of service in the armed forces of the United States, or $130 a day, whichever is more.

Sec. 4. Minnesota Statutes 2024, section 192.49, is amended by adding a subdivision to read:

Subd. 2a. Pension offset stipend. The adjutant general is authorized to pay service members ordered into state active service a stipend equivalent to five percent of basic pay for the period of duty to compensate the service member for pension inequity compared to similar federal service.

Sec. 5. Minnesota Statutes 2024, section 193.143, is amended to read:

193.143 STATE ARMORY BUILDING COMMISSION, POWERS.

Such corporation, subject to the conditions and limitations prescribed in sections 193.141 to 193.149, shall possess all the powers of a body corporate necessary and convenient to accomplish the objectives and perform the duties prescribed by sections 193.141 to 193.149, including the following, which shall not be construed as a limitation upon the general powers hereby conferred:

(1) To acquire by lease, purchase, gift, or condemnation proceedings all necessary right, title, and interest in and to the lands required for a site for a new armory and all other real or personal property required for the purposes contemplated by the Military Code and to hold and dispose of the same, subject to the conditions and limitations herein prescribed; provided that any such real or personal property or interest therein may be so acquired or accepted subject to any condition which may be imposed thereon by the grantor or donor and agreed to by such corporation not inconsistent with the proper use of such property by the state for armory or military purposes as herein provided.

(2) To exercise the power of eminent domain in the manner provided by chapter 117, for the purpose of acquiring any property which such corporation is herein authorized to acquire by condemnation; provided, that the corporation may take possession of any such property so to be acquired at any time after the filing of the petition describing the same in condemnation proceedings; provided further, that this shall not preclude the corporation from abandoning the condemnation of any such property in any case where possession thereof has not been taken.

(3) To construct and equip new armories as authorized herein; to pay therefor out of the funds obtained as hereinafter provided and to hold, manage, and dispose of such armory, equipment, and site as hereinafter provided. The total amount of bonds issued on account of such armories shall not exceed the amount of the cost thereof; provided also, that the total bonded indebtedness of the commission shall not at any time exceed the aggregate sum of ~~$15,000,000~~ $45,000,000.

(4) To provide partnerships with federal and state governments and to match federal and local funds, when available.

(5) To sue and be sued.

(6) To contract and be contracted with in any matter connected with any purpose or activity within the powers of such corporations as herein specified; provided, that no officer or member of such corporation shall be personally interested, directly or indirectly, in any contract in which such corporation is interested.

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(7) To employ any and all professional and nonprofessional services and all agents, employees, workers, and servants necessary and proper for the purposes and activities of such corporation as authorized or contemplated herein and to pay for the same out of any portion of the income of the corporation available for such purposes or activities. The officers and members of such corporation shall not receive any compensation therefrom, but may receive their reasonable and necessary expenses incurred in connection with the performance of their duties; provided however, that whenever the duties of any member of the commission require full time and attention the commission may compensate the member therefor at such rates as it may determine.

(8) To borrow money and issue bonds for the purposes and in the manner and within the limitations herein specified, and to pledge any and all property and income of such corporation acquired or received as herein provided to secure the payment of such bonds, subject to the provisions and limitations herein prescribed, and to redeem any such bonds if so provided therein or in the mortgage or trust deed accompanying the same.

(9) To use for the following purposes any available money received by such corporation from any source as herein provided in excess of those required for the payment of the cost of such armory and for the payment of any bonds issued by the corporation and interest thereon according to the terms of such bonds or of any mortgage or trust deed accompanying the same:

(a) to pay the necessary incidental expenses of carrying on the business and activities of the corporation as herein authorized;

(b) to pay the cost of operating, maintaining, repairing, and improving such new armories;

(c) if any further excess money remains, to purchase upon the open market at or above or below the face or par value thereof any bonds issued by the corporation as herein authorized, provided that any bonds so purchased shall thereupon be canceled.

(10) To adopt and use a corporate seal.

(11) To adopt all needful bylaws and rules for the conduct of business and affairs of such corporation and for the management and use of all armories while under the ownership and control of such corporation as herein provided, not inconsistent with the use of such armory for armory or military purposes.

(12) Such corporation shall issue no stock.

(13) No officer or member of such corporation shall have any personal share or interest in any funds or property of the corporation or be subject to any personal liability by reason of any liability of the corporation.

(14) The Minnesota State Armory Building Commission created under section 193.142 shall keep all money and credits received by it as a single fund, to be designated as the "Minnesota State Armory Building Commission fund," with separate accounts for each armory; and the commission may make transfers of money from funds appertaining to any armory under its control for use for any other such armory; provided such transfers shall be made only from money on hand, from time to time, in excess of the amounts required to meet payments of interest or principal on bonds or other obligations appertaining to the armory to which such funds pertain and only when necessary to pay expenses of construction, operation, maintenance, debt service, and other obligations reasonable and necessary, of such other armory; provided further, no such transfer of any money paid for the support of any armory by the municipality in which such armory is situated shall be made by the commission.

(15) The corporation created under section 193.142 may designate one or more state or national banks as depositories of its funds, and may provide, upon such conditions as the corporation may determine, that the treasurer of the corporation shall be exempt from personal liability for loss of funds deposited in any such depository due to the insolvency or other acts or omissions of such depository.

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(16) The governor is empowered to apply for grants of money, equipment, and materials which may be made available to the states by the federal government for leasing, building, and equipping armories for the use of the military forces of the state which are reserve components of the armed forces of the United States, whenever the governor is satisfied that the conditions under which such grants are offered by the federal government, are for the best interests of the state and are not inconsistent with the laws of the state relating to armories, and to accept such grants in the name of the state. The Minnesota State Armory Building Commission is designated as the agency of the state to receive such grants and to use them for armory purposes as prescribed in this chapter, and by federal laws, and regulations not inconsistent therewith.

Sec. 6. Minnesota Statutes 2024, section 197.065, is amended to read:

197.065 ACCESS TO DATABASE.

(a) Notwithstanding section 13.46, subdivision 2, the commissioner of veterans affairs may electronically access the MAXIS database maintained by the Department of ~~Human Services~~ Children, Youth, and Families for the purpose of verifying eligibility status of applicants for benefits under the State Soldiers Assistance Program, the Veterans Stable Housing Initiative, and veterans programs. The commissioner may electronically access the MAXIS database to ensure that veterans are connected to all available state and federal resources for which the veterans are eligible.

(b) In order to access any private data on individuals, as defined by section 13.02, subdivision 12, pursuant to paragraph (a), the commissioner of veterans affairs must have received informed consent from the subject of the data.

Sec. 7. Minnesota Statutes 2024, section 197.236, subdivision 8, is amended to read:

Subd. 8. Eligibility. Cemeteries must be operated solely for the burial of service members who die on active duty, eligible veterans, and their spouses and dependent children, as defined in United States Code, title 38, section ~~101~~ 2402, paragraph ~~(2)~~ (a), subparagraphs 1 to 5 and 7.

Sec. 8. Minnesota Statutes 2024, section 197.236, subdivision 9, is amended to read:

Subd. 9. Burial fees. (a) The commissioner of veterans affairs shall establish a fee schedule, which may be adjusted from time to time, for the interment of eligible spouses and dependent children. The fees shall cover as nearly as practicable the actual costs of interment, excluding the value of the plot.

(b) Upon application, the commissioner may waive or reduce the burial fee for an indigent eligible person. The commissioner shall ~~develop~~ maintain a policy, eligibility standards, and application form for requests to waive or reduce the burial fee to indigent eligible applicants.

(c) No plot or interment fees may be charged for the burial of service members who die on active duty or eligible veterans, as defined in United States Code, title 38, section ~~101~~ 2402, paragraph ~~(2)~~ (a), subparagraphs 1 to 4 and 7.

Sec. 9. [197.448] VETERAN OF THE SECRET WAR IN LAOS.

Subdivision 1. Definition. As used in this section, the term "veteran of the secret war in Laos" means a person who resides in Minnesota and who:

(1) was naturalized as provided in section 2(1) of the federal Hmong Veterans' Naturalization Act of 2000, Public Law 106-207; or

(2) is a person who the commissioner of veterans affairs determines served honorably with a special guerrilla unit or with irregular forces that operated from a base in Laos in support of the armed forces of the United States at any time during the period beginning February 28, 1961, and ending May 14, 1975, and is a citizen of the United States or an alien lawfully admitted for permanent residence in the United States.

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Subd. 2. Eligibility for benefits and privileges. (a) A veteran of the secret war in Laos, as defined in subdivision 1, clause (1), is entitled to the benefits and privileges listed in paragraph (c) the day following the effective date of this act.

(b) A veteran of the secret war in Laos, as defined in subdivision 1, clause (2), is entitled to the benefits and privileges listed in paragraph (c) after the commissioner of veterans affairs verifies the person's veteran status. The commissioner must not begin accepting applications for verification until the legislature enacts criteria and a protocol to determine:

(1) which Minnesotans served in secret guerilla units or with irregular forces in Laos; and

(2) which of the Minnesotans who served in secret guerilla units or with irregular forces in Laos are deserving of Minnesota veterans benefits.

(c) The following statutory benefits and privileges available to a veteran, as defined in section 197.447, are also available to a veteran of the secret war in Laos: section 171.07, subdivision 15 (veteran designation on drivers' licenses and state identification cards); section 197.23 (purchase of grave markers); section 197.231 (honor guards); section 197.236 (state veterans cemeteries); section 197.455 (veterans preference); section 197.4551 (permissive preference for veterans in private employment); section 197.55 (quarters for meetings of veterans organizations); section 197.56 (use of quarters); section 197.58 (veterans organizations); section 197.61 (veterans service organizations grant program); section 197.63 (vital records, certified copies); section 197.65 (renewal of professional license, motor vehicle registration, and driver's license); and section 197.987 (honor and remember flag).

Sec. 10. Minnesota Statutes 2024, section 197.75, subdivision 1, is amended to read:

Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this section.

(b) "Commissioner" means the commissioner of veterans affairs.

(c) "Deceased veteran" means a veteran who has died as a result of the person's military service, as determined by the United States Veterans Administration, and who was a resident of this state: (1) within six months of entering the United States armed forces, or (2) for the six months preceding the veteran's date of death.

(d) "Eligible child" means a person who:

(1) is the natural or adopted child or stepchild of a deceased veteran; and

(2) is a student making satisfactory academic progress at an eligible institution of higher education.

(e) "Eligible institution" means a postsecondary educational institution located in this state that either is operated by this state or the Board of Regents of the University of Minnesota, or is licensed or registered with the Office of Higher Education.

(f) "Eligible spouse" means the surviving spouse of a deceased veteran, regardless of whether the surviving spouse remarries.

(g) "Eligible veteran" means a veteran who:

(1) is a student making satisfactory academic progress at an eligible institution of higher education;

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(2) had Minnesota as the person's state of residence at the time of the person's enlistment or any reenlistment into the United States armed forces, as shown by the person's federal form DD-214 or other official documentation to the satisfaction of the commissioner;

(3) except for benefits under this section, has no remaining military or veteran-related educational assistance benefits for which the person may have been entitled; and

(4) while using the educational assistance authorized in this section, remains a resident student as defined in section 136A.101, subdivision 8.

(h) "Satisfactory academic progress" has the meaning given in section 136A.101, subdivision 10.

(i) "Student" has the meaning given in section 136A.101, subdivision 7.

(j) "Veteran" has the meaning given in section 197.447.

Sec. 11. Minnesota Statutes 2024, section 197.791, subdivision 4, is amended to read:

Subd. 4. Eligibility. (a) A person is eligible for educational assistance under subdivision 5 if:

(1) the person is:

(i) a veteran who is serving or has served honorably in any branch or unit of the United States armed forces at any time;

(ii) a nonveteran who has served honorably for a total of five years or more cumulatively as a member of the Minnesota National Guard or any other active or reserve component of the United States armed forces, and any part of that service occurred on or after September 11, 2001;

(iii) the surviving spouse or child of a person who has served in the military and who has died as a direct result of that military service, only if the surviving spouse or child is eligible to receive federal education benefits under United States Code, title 38, chapter 33, as amended, or United States Code, title 38, chapter 35, as amended, except that remarriage does not terminate a surviving spouse's eligibility; or

(iv) the spouse or child of a person who has served in the military at any time and who has a total and permanent service-connected disability as rated by the United States Veterans Administration, only if the spouse or child is eligible to receive federal education benefits under United States Code, title 38, chapter 33, as amended, or United States Code, title 38, chapter 35, as amended; and

(2) the person receiving the educational assistance is a Minnesota resident, as defined in section 136A.101, subdivision 8; and

(3) the person receiving the educational assistance:

(i) is an undergraduate or graduate student at an eligible institution;

(ii) is maintaining satisfactory academic progress as defined by the institution for students participating in federal Title IV programs;

(iii) is enrolled in an education program leading to a certificate, diploma, or degree at an eligible institution;

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(iv) has applied for educational assistance under this section prior to the end of the academic term for which the assistance is being requested;

(v) is in compliance with child support payment requirements under section 136A.121, subdivision 2, clause (5); and

(vi) has completed the Free Application for Federal Student Aid (FAFSA).

(b) A person's eligibility terminates when the person becomes eligible for benefits under section 135A.52.

(c) To determine eligibility, the commissioner may require official documentation, including the person's federal form DD-214 or other official military discharge papers; correspondence from the United States Veterans Administration; birth certificate; marriage certificate; proof of enrollment at an eligible institution; signed affidavits; proof of residency; proof of identity; or any other official documentation the commissioner considers necessary to determine eligibility.

(d) The commissioner may deny eligibility or terminate benefits under this section to any person who has not provided sufficient documentation to determine eligibility for the program. An applicant may appeal the commissioner's eligibility determination or termination of benefits in writing to the commissioner at any time. The commissioner must rule on any application or appeal within 30 days of receipt of all documentation that the commissioner requires. The decision of the commissioner regarding an appeal is final. However, an applicant whose appeal of an eligibility determination has been rejected by the commissioner may submit an additional appeal of that determination in writing to the commissioner at any time that the applicant is able to provide substantively significant additional information regarding the applicant's eligibility for the program. An approval of an applicant's eligibility by the commissioner following an appeal by the applicant is not retroactively effective for more than one year or the semester of the person's original application, whichever is later.

(e) Upon receiving an application with insufficient documentation to determine eligibility, the commissioner must notify the applicant within 30 days of receipt of the application that the application is being suspended pending receipt by the commissioner of sufficient documentation from the applicant to determine eligibility.

Sec. 12. [197.989] GOLD STAR AND BLUE STAR FAMILIES; MEMORIAL PLAQUE.

Subdivision 1. Purpose. The state of Minnesota wishes to honor and recognize the service and sacrifices of Gold Star and Blue Star families.

Subd. 2. Memorial plaque. The commissioner of administration shall place a memorial plaque in the court of honor on State Capitol grounds to recognize the service and sacrifices of Minnesota's Gold Star and Blue Star families. The Capitol Area Architectural and Planning Board must solicit design submissions from the public. The Capitol Area Architectural and Planning Board shall select a design from the submitted designs to use as a basis for final production. The selected design must be approved by the commissioner of veterans affairs and must be furnished by the person or group who submitted the design at no cost to the state of Minnesota.

Sec. 13. ADVISORY TASK FORCE ESTABLISHED; VETERANS OF SECRET GUERILLA UNITS AND IRREGULAR FORCES IN LAOS.

Subdivision 1. Establishment; membership. (a) The commissioner of veterans affairs must establish a Veterans of Secret Guerilla Units and Irregular Forces in Laos Advisory Task Force.

Journal Of the House - 25th -Friday, April 25, 2025 - Top of Page 2609

(b) The advisory task force must consist of the commissioner, or a designee, and the following additional 12 members appointed by the commissioner, except as otherwise provided:

(1) a representative of the United States Department of Veterans Affairs, appointed by the United States Commissioner of Veterans Affairs;

(2) a representative of the Minnesota Commanders Task Force designated by the Commanders Task Force;

(3) a representative of the Disabled American Veterans of Minnesota;

(4) a United States armed forces veteran who served on active duty in Vietnam during the Vietnam War;

(5) a Hmong American Minnesota resident who served in the United States armed forces;

(6) a veteran of a secret guerilla unit or irregular forces in Laos;

(7) a historian knowledgeable about the secret guerilla units and irregular forces in Laos;

(8) a representative of the Minnesota Military Museum who has knowledge of the Vietnam War designated by the museum's director; and

(9) four legislators, with one member each appointed by the speaker of the house of representatives, the house DFL leader, the senate majority leader, and the senate minority leader.

Subd. 2. Duties; report. (a) The task force must:

(1) establish criteria for determining which Minnesotans served in the secret guerrilla units or with irregular forces in Laos; and

(2) establish criteria and a protocol to determine which Minnesotans who served in the secret guerilla units or with irregular forces in Laos are deserving of the benefits of a veteran under Minnesota law and which veterans benefits should be extended to these Minnesotans.

(b) The task force must prepare a report to the legislature that includes the findings, criteria, protocol, and recommendations required under paragraph (a). The commissioner must deliver the report to the chairs and ranking minority members of the legislative committees with jurisdiction over veterans affairs policy and finance by February 15, 2026.

Subd. 3. Administration; terms of membership. The commissioner shall convene the first meeting of the advisory task force by August 15, 2025, and provide staff support to the advisory task force. Minnesota Statutes, section 15.059, subdivision 6, governs the terms and removal of members of the advisory task force. Members of the task force serve without compensation or per diem.

Subd. 4. Expiration. The task force expires February 15, 2026."

Delete the title and insert:

"A bill for an act relating to state government; establishing a budget for the Department of Military Affairs and the Department of Veterans Affairs; requiring the commissioner of administration to place a memorial plaque honoring Gold Star and Blue Star families on State Capitol grounds; establishing a Veterans of Secret Guerilla Units and Irregular Forces in Laos Advisory Task Force; requiring reports; transferring money; appropriating money; amending Minnesota Statutes 2024, sections 13.461, subdivision 27; 192.49, subdivisions 1, 2, by adding a subdivision; 193.143; 197.065; 197.236, subdivisions 8, 9; 197.75, subdivision 1; 197.791, subdivision 4; proposing coding for new law in Minnesota Statutes, chapter 197."

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With the recommendation that when so amended the bill be placed on the General Register.

The report was adopted.

Stephenson and Torkelson from the Committee on Ways and Means to which was referred:

S. F. No. 2216, A bill for an act relating to commerce; establishing a budget for the Department of Commerce; adding, modifying, and eliminating various provisions governing insurance, financial institutions, commercial regulations and consumer protection, and telecommunications; modifying cannabis provisions; modifying fees assessed by the Department of Commerce; establishing a common interest community ombudsperson and a common interest community register; classifying data; making technical changes; appropriating money; amending Minnesota Statutes 2024, sections 45.027, subdivisions 1, 2, by adding a subdivision; 45.24; 46A.04; 47.20, subdivisions 2, 4a, 8; 47.77; 53B.61; 55.07, by adding a subdivision; 58B.02, subdivision 8a; 58B.051; 60A.201, subdivision 2, by adding a subdivision; 60C.09, subdivision 2; 60D.09, by adding a subdivision; 60D.15, subdivisions 4, 7, by adding subdivisions; 60D.16, subdivision 2; 60D.17, subdivision 1; 60D.18, subdivision 3; 60D.19, subdivision 4, by adding subdivisions; 60D.20, subdivision 1; 60D.217; 60D.22, subdivisions 1, 3, 6, by adding a subdivision; 60D.24, subdivision 2; 60D.25; 62A.31, subdivisions 1r, 1w; 62A.65, subdivisions 1, 2, by adding a subdivision; 62D.12, subdivisions 2, 2a; 62D.121, subdivision 1; 62D.221, by adding a subdivision; 62J.26, subdivisions 1, 2, 3, by adding subdivisions; 62Q.73, subdivision 4; 65A.01, subdivision 3c; 72A.20, by adding a subdivision; 80A.65, subdivision 2; 80A.66; 80E.12; 82.63, subdivision 2; 116.943, subdivisions 1, 5; 168.27, by adding a subdivision; 216B.40; 216B.62, by adding a subdivision; 325E.3892, subdivisions 1, 2; 325F.072, subdivision 3; 325G.24, subdivision 2; 334.01, subdivision 2; 342.17; 342.37, by adding subdivisions; Laws 2023, chapter 63, article 9, section 5; proposing coding for new law in Minnesota Statutes, chapters 45; 60D; 62A; 168A; 216B; 237; 239; 325E; 325F; 515B.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"ARTICLE 1

COMMERCE AND OFFICE OF CANNABIS MANAGEMENT FINANCE

Section 1. APPROPRIATIONS.

			APPROPRIATIONS
			Available for the Year
			Ending June 30
			2026	2027

Sec. 2. DEPARTMENT OF COMMERCE

Subdivision 1. Total Appropriation			$ 42,250,000	$ 42,901,000
Journal Of the House - 25th -Friday, April 25, 2025 - Top of Page 2611 Appropriations by Fund
	2026	2027
General	39,342,000	39,993,000
Workers' Compensation Fund	815,000	815,000
Special Revenue	2,093,000	2,093,000

The amounts that may be spent for each purpose are specified in the following subdivisions.

Subd. 2. Financial Institutions

3,035,000

(a) $400,000 each year is for a grant to Prepare and Prosper to develop, market, evaluate, and distribute a financial services inclusion program that (1) assists low-income and financially underserved populations to build savings and strengthen credit, and (2) provides services to assist low-income and financially underserved populations to become more financially stable and secure. Money remaining after the first year is available for the second year.

(b) $543,000 each year is for additional adviser and broker-dealer examiners.

Subd. 3. Administrative Services

11,643,000

12,321,000

(a) $401,000 each year is for unclaimed property compliance.

(b) $353,000 each year is for information technology systems and cybersecurity upgrades for the unclaimed property program.

(d) $5,000 each year is for compensating the Real Estate Appraisal Advisory Board under Minnesota Statutes, section 82B.073.

(e) $23,000 each year is for preliminary licensing applications.

(f) $249,000 each year is for the senior safe fraud prevention program.

(g) $500,000 each year is to operate the Prescription Drug Affordability Board established under Minnesota Statutes, section 62J.87.

(h) $75,000 each year is for copper metal licensing and enforcement under Minnesota Statutes, section 325E.21.

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(i) $12,000 each year is for the intermediate blends of gasoline and biofuels report under Minnesota Statutes, section 239.791, subdivision 8.

(j) $343,000 each year is for the common interest community ombudsperson established under Minnesota Statutes, section 45.0137.

Subd. 4. Enforcement

7,751,000

Appropriations by Fund

General

7,536,000

Workers' Compensation

215,000

(a) $215,000 each year is from the workers' compensation fund.

(b) $225,000 each year is to operate the Mental Health Parity and Substance Abuse Accountability Office under Minnesota Statutes, section 62Q.465.

Subd. 5. Telecommunications

3,235,000

Appropriations by Fund

General

1,142,000

Special Revenue

2,093,000

$2,093,000 each year is from the telecommunications access Minnesota fund under Minnesota Statutes, section 237.52, subdivision 1, in the special revenue fund for the following transfers:

(1) $1,620,000 each year is to the commissioner of human services to supplement the ongoing operational expenses of the Commission of Deaf, DeafBlind, and Hard-of-Hearing Minnesotans. This transfer is subject to Minnesota Statutes, section 16A.281;

(2) $290,000 each year is to the chief information officer to coordinate technology accessibility and usability;

(3) $133,000 each year is to the Legislative Coordinating Commission for captioning legislative coverage. This transfer is subject to Minnesota Statutes, section 16A.281; and

(4) $50,000 each year is to the Office of MN. IT Services for a consolidated access fund to provide grants or services to other state agencies related to accessibility of web-based services.

Journal Of the House - 25th -Friday, April 25, 2025 - Top of Page 2613

Subd. 6. Insurance

13,689,000

13,483,000

Appropriations by Fund

General

13,089,000

12,883,000

Workers' Compensation

600,000

(a) $600,000 each year is from the workers' compensation fund.

(b) $136,000 each year is to advance standardized health plan options.

(c) $105,000 each year is to evaluate legislation for new mandated health benefits under Minnesota Statutes, section 62J.26.

(d) $42,000 each year is to ensure health plan company compliance with Minnesota Statutes, section 62Q.47, paragraph (h).

(e) $432,000 each year is for pharmacy benefit manager licensing and enforcement under Minnesota, Statutes, chapter 62W.

(f) $25,000 each year is to evaluate existing statutory health benefit mandates.

Subd. 7. Weights and Measures Division

2,897,000

3,076,000

Sec. 3. LEGISLATIVE COORDINATING COMMISSION

$200,000

$-0-

$200,000 in fiscal year 2025 is to the Legislative Coordinating Commission to provide administrative support to the task force on homeowners and commercial property insurance under article 2, section 5. Upon request of the task force, the commissioners of the Department of Commerce, Minnesota Housing and Finance Agency, and the Department of Employment and Economic Development must provide technical support and expertise. This is a onetime appropriation and is available until June 30, 2026.

Sec. 4. OFFICE OF CANNABIS MANAGEMENT

$36,454,000

$39,347,000

(a) $14,258,000 each year is for cannabis industry community renewal grants under Minnesota Statutes, section 342.70. Of these amounts, up to three percent may be used for administrative expenses incurred by the Office of Cannabis Management. The base is $7,500,000 each year beginning in fiscal year 2028.

(b) $1,000,000 each year is for transfer to the CanGrow revolving loan account established under Minnesota Statutes, section 342.73, subdivision 4. Of these amounts, up to three percent may be used for administrative expenses incurred by the Office of Cannabis Management.

Journal Of the House - 25th -Friday, April 25, 2025 - Top of Page 2614

Sec. 5. Laws 2023, chapter 63, article 9, section 5, is amended to read:

Sec. 5. OFFICE OF CANNABIS MANAGEMENT

$21,614,000

$17,953,000

The base for this appropriation is $35,587,000 in fiscal year 2026 and $38,144,000 in fiscal year 2027.

$1,000,000 the second year is for cannabis industry community renewal grants under Minnesota Statutes, section 342.70. Of these amounts, up to three percent may be used for administrative expenses. Notwithstanding Minnesota Statutes, section 16A.28, the amount appropriated in fiscal year 2025 does not cancel and is available until June 30, 2026. The base for this appropriation is $15,000,000 in fiscal year 2026 and each fiscal year thereafter.

$1,000,000 each year is for transfer to the CanGrow revolving loan account established under Minnesota Statutes, section 342.73, subdivision 4. Of these amounts, up to three percent may be used for administrative expenses.

EFFECTIVE DATE. This section is effective the day following final enactment.

ARTICLE 2

COMMERCE POLICY

Section 1. [45.0137] COMMON INTEREST COMMUNITY OMBUDSPERSON.

Subdivision 1. Definitions. (a) For purposes of this section, the terms defined in this subdivision have the meanings given.

(b) "Association" means an association of apartment owners, as defined in section 515.02, subdivision 5, an association, as defined in section 515A.1-103, clause (3), and association as defined in section 515B.1-103, clause (4).

(d) "Governing documents" means a common interest community's declaration, articles of incorporation, bylaws, and any amendments thereto.

(e) "Unit owner" means an apartment owner, as defined in section 515.02, subdivision 3, a unit owner under section 515A.1-103, clause (20), and a unit owner, as defined in section 515B.1-103, clause (37).

Subd. 2. Establishment. (a) A common interest community ombudsperson position is established within the Department of Commerce to:

(1) assist unit owners, their tenants, and associations in understanding their rights under chapter 515B and their governing documents; and

(2) facilitate the resolution of disputes between unit owners and associations.

(b) The ombudsperson is appointed by the governor, serves in the unclassified service, and may be removed only for just cause.

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Subd. 3. Qualifications. The ombudsperson must be selected without regard to political affiliation, must be qualified and experienced to perform the duties of the office, and must be skilled in dispute resolution techniques. The ombudsperson must not be a unit owner, be employed by a business entity that provides management or consulting services to an association, or otherwise be affiliated with an association or management company. A person is prohibited from serving as ombudsperson while holding another public office.

Subd. 4. Duties. (a) The ombudsperson must execute the duties under subdivision 2, paragraph (a), by taking the following actions:

(1) creating plain language explanations of common provisions in governing documents; and

(2) identifying and providing resources and referrals related to the rights and responsibilities of unit owners and associations.

(b) Upon the request of a unit owner or an association, the ombudsperson must provide dispute resolution services, including acting as a mediator, in disputes concerning chapter 515B and governing documents, except where:

(1) a complaint based on the same dispute is pending in a judicial or administrative proceeding;

(2) the same disputed issue has been addressed or is currently in arbitration, mediation, or another alternative dispute resolution process; or

(3) the association notifies the ombudsperson that an order under section 609.748 is in effect against the unit owner.

(d) The ombudsperson must maintain a website containing, at a minimum:

(1) the text of chapter 515B and any other relevant statutes or rules;

(2) a plain language explanation of common provisions of governing documents;

(3) information regarding the services provided by the common interest community ombudsperson, including assistance with dispute resolution;

(4) information and referrals regarding alternative dispute resolution methods and programs, and resources regarding the rights and responsibilities of unit owners and associations; and

(5) any other information that the ombudsperson determines is useful to unit owners, their tenants, associations, and common interest community property management companies.

(e) When requested or as the ombudsperson deems necessary, the ombudsperson must provide reports and recommendations to the legislative committees with jurisdiction over common interest communities.

(f) In the course of assisting to resolve a dispute, the ombudsperson may, at reasonable times and with 24 hours prior notice, enter and view premises within the control of the common interest community.

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Subd. 5. Powers limited. The ombudsperson and the commissioner are prohibited from rendering a formal legal opinion regarding a dispute between a unit owner and an association. The ombudsperson and commissioner are prohibited from making a formal determination or issuing an order regarding disputes between a unit owner and an association. Nothing in this paragraph limits the ability of the commissioner to execute duties or powers under any other law.

Subd. 6. Cooperation. Upon request, unit owners and associations must participate in the dispute resolution process under this section and make good faith efforts to resolve disputes.

Subd. 7. Landlord and tenant law. Nothing in this section modifies, supersedes, limits, or expands the rights and duties of landlords and tenants established under chapter 504B or any other law.

Sec. 2. Minnesota Statutes 2024, section 80A.58, is amended to read:

80A.58 SECTION 403; INVESTMENT ADVISER REGISTRATION REQUIREMENT AND EXEMPTIONS.

(a) Registration requirement. It is unlawful for a person to transact business in this state as an investment adviser or investment adviser representative unless the person is registered under this chapter or is exempt from registration under subsection (b).

(b) Exemptions from registration. The following persons are exempt from the registration requirement of subsection (a):

(1) any person whose only clients in this state are:

(A) federal covered investment advisers, investment advisers registered under this chapter, or broker-dealers registered under this chapter;

(B) bona fide preexisting clients whose principal places of residence are not in this state if the investment adviser is registered under the securities act of the state in which the clients maintain principal places of residence; or

(2) a person without a place of business in this state if the person has had, during the preceding 12 months, not more than five clients that are resident in this state in addition to those specified under paragraph (1);

(3) A private fund ~~advisor~~ adviser, subject to the additional requirements of subsection (c), if the private fund adviser satisfies each of the following conditions:

(i) neither the private fund adviser nor any of its advisory affiliates are subject to a disqualification as described in Rule 262 of SEC Regulation A, Code of Federal Regulations, title 17, section 230.262;

(ii) the private fund adviser files with the state each report and amendment thereto that an exempt reporting adviser is required to file with the Securities and Exchange Commission pursuant to SEC Rule 204-4, Code of Federal Regulations, title 17, section 275.204-4; or and

(iii) the private fund adviser pays the fees under section 80A.65, subdivision 2b; or

(4) any other person exempted by rule adopted or order issued under this chapter.

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(c) Additional requirements for private fund advisers to certain 3(c)(1) funds. In order to qualify for the exemption described in subsection (b)(3), a private fund adviser who advises at least one 3(c)(1) fund that is not a venture capital fund shall, in addition to satisfying each of the conditions specified in subsection (b)(3), comply with the following requirements:

(1) The private fund adviser shall advise only those 3(c)(1) funds, other than venture capital funds, whose outstanding securities, other than short-term paper, are beneficially owned entirely by persons who, after deducting the value of the primary residence from the person's net worth, would each meet the definition of a qualified client in SEC Rule 205-3, Code of Federal Regulations, title 17, section 275.205-3, at the time the securities are purchased from the issuer;

(2) At the time of purchase, the private fund adviser shall disclose the following in writing to each beneficial owner of a 3(c)(1) fund that is not a venture capital fund:

(i) all services, if any, to be provided to individual beneficial owners;

(ii) all duties, if any, the investment adviser owes to the beneficial owners; and

(iii) any other material information affecting the rights or responsibilities of the beneficial owners; and

(3) The private fund adviser shall obtain on an annual basis audited financial statements of each 3(c)(1) fund that is not a venture capital fund and shall deliver a copy of such audited financial statements to each beneficial owner of the fund.

(d) Federal covered investment advisers. If a private fund adviser is registered with the Securities and Exchange Commission, the adviser shall not be eligible for the private fund adviser exemption under paragraph (b), clause (3), and shall comply with the state notice filing requirements applicable to federal covered investment advisers in section 80A.58.

(e) Investment adviser representatives. A person is exempt from the registration requirements of section 80A.58, paragraph (a), if he or she is employed by or associated with an investment adviser that is exempt from registration in this state pursuant to the private fund adviser exemption under paragraph (b), clause (3), and does not otherwise engage in activities that would require registration as an investment adviser representative.

(f) Electronic filings. The report filings described in subsection (b)(3)(ii) shall be made electronically through the IARD. A report shall be deemed filed when the report and the fee required by sections 80A.60 and 80A.65 are filed and accepted by the IARD on the state's behalf.

(g) Transition. An investment adviser who becomes ineligible for the exemption provided by this section must comply with all applicable laws and rules requiring registration or notice filing within 90 days from the date of the investment adviser's eligibility for this exemption ceases.

(h) Grandfathering for investment advisers to 3(c)(1) funds with nonqualified clients. An investment adviser to a 3(c)(1) fund (other than a venture capital fund) that has one or more beneficial owners who are not qualified clients as described in paragraph (c), clause (1), is eligible for the exemption contained in paragraph (b), clause (3), if the following conditions are satisfied:

(1) the subject fund existed prior to August 1, 2013;

(2) as of August 1, 2013, the subject fund ceases to accept beneficial owners who are not qualified clients, as described in paragraph (c), clause (1);

(3) the investment adviser discloses in writing the information described in paragraph (c), clause (2), to all beneficial owners of the fund; and

(4) as of August 1, 2013, the investment adviser delivers audited financial statements as required by paragraph (c), clause (3).

Journal Of the House - 25th -Friday, April 25, 2025 - Top of Page 2618

(i) Limits on employment or association. It is unlawful for an investment adviser, directly or indirectly, to employ or associate with an individual to engage in an activity related to investment advice in this state if the registration of the individual is suspended or revoked or the individual is barred from employment or association with an investment adviser, federal covered investment adviser, or broker-dealer by an order under this chapter, the Securities and Exchange Commission, or a self-regulatory organization, unless the investment adviser did not know, and in the exercise of reasonable care could not have known, of the suspension, revocation, or bar. Upon request from the investment adviser and for good cause, the administrator, by order, may waive, in whole or in part, the application of the prohibitions of this subsection to the investment adviser.

Sec. 3. Minnesota Statutes 2024, section 80A.65, subdivision 2, is amended to read:

Subd. 2. Registration application and renewal filing fee. Every applicant for an initial or renewal registration shall pay a filing fee of $200 in the case of a broker-dealer, $65 in the case of an agent, $100 in the case of an investment adviser, and $50 in the case of an investment adviser representative. When an application is denied or withdrawn, the filing fee shall be retained. A registered agent who has terminated employment with one broker‑dealer shall, before beginning employment with another broker-dealer, pay a transfer fee of ~~$25~~ $65. A registered investment adviser representative who has terminated employment with one investment adviser must, before beginning employment with another investment adviser, pay a $50 transfer fee.

Sec. 4. Minnesota Statutes 2024, section 80A.65, is amended by adding a subdivision to read:

Subd. 2b. Private fund adviser filings. A private fund adviser must pay a $100 filing fee when filing an initial or renewal notice required under section 80A.58.

Sec. 5. TASK FORCE ON HOMEOWNERS AND COMMERCIAL PROPERTY INSURANCE.

Subdivision 1. Establishment. A task force is established to evaluate issues and provide recommendations relating to insurance affordability with respect to single-family housing, multifamily rental housing, common interest communities, cooperatives, and small businesses, and preventing disruptions or loss to the development, preservation, and long-term sustainability of Minnesota's housing infrastructure and small businesses.

Subd. 2. Membership. (a) The task force consists of the following:

(1) one member appointed by the commissioner of commerce;

(2) one member appointed by the speaker of the house;

(3) one member appointed by the speaker emerita of the house;

(4) one member appointed by the senate majority leader;

(5) one member appointed by the senate minority leader;

(6) one member appointed by the Minnesota Consortium of Community Developers;

(7) four members with expertise in property and casualty insurance and reinsurance for single-family and multifamily housing markets, including nonprofit and cooperative housing, appointed by the Insurance Federation of Minnesota;

(8) one member appointed by Big I Minnesota;

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(9) one member appointed by the Minnesota Realtors;

(10) one member appointed by the Minnesota Community Development Financial Institutions Coalition;

(11) one member appointed by the Minnesota Homeownership Center;

(12) one member appointed by the Greater Minneapolis Building Owners and Managers Association;

(13) one member appointed by the Minnesota chapter of the Community Associations Institute;

(14) one member appointed by the Minnesota Multi Housing Association;

(15) one member appointed by the Housing Justice Center; and

(16) one member with climate science expertise appointed by the chair and vice-chair of the Legislative Coordinating Commission.

(b) The appointing authorities must make the appointments by August 15, 2025.

Subd. 3. Duties. (a) The task force must identify recommendations to strengthen and stabilize the homeowners and commercial property insurance industry.

(b) The task force must consult with the commissioners of the Minnesota Housing Finance Agency, the Department of Employment and Economic Development, and other key stakeholders in the homeowners and commercial property insurance and housing industries.

(1) risk mitigation methodologies;

(2) liability laws impacting insurance costs;

(3) minimum notice for coverage changes, including enforcement and oversight;

(4) public reporting of aggregated data relating to insurance plan costs and coverage;

(5) the reinsurance market for homeowners and commercial property insurance;

(6) the current state-supported insurance program and the potential to expand the program to include a catastrophic reinsurance fund and a self-insured pool;

(7) factors that increase claim costs, including but not limited to post-loss contractors, fraudulent claims, climate, inflation, and discontinued building materials; and

(8) other areas that would strengthen and stabilize the homeowners and commercial property insurance industry.

Subd. 4. Meetings. (a) The Legislative Coordinating Commission must ensure the first meeting of the task force convenes no later than September 15, 2025, and must provide accessible physical or virtual meeting space as necessary for the task force to conduct work.

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(b) At the first meeting, the task force must elect a chair or cochairs from the members appointed by the house of representatives and senate by a majority vote of the members present and may elect a vice-chair as necessary.

(c) The task force must establish a schedule for meetings and must meet as necessary to accomplish the duties under subdivision 3.

(d) The task force is subject to Minnesota Statutes, chapter 13D.

Subd. 5. Report required. (a) The task force must submit a report to the commissioners of the Department of Commerce, Minnesota Housing Finance Agency, and the Department of Employment and Economic Development, and the chairs and ranking minority members of the legislative committees having jurisdiction over the agencies listed in this paragraph by February 15, 2026.

(b) The report must:

(1) summarize the activities of the task force;

(2) provide findings and recommendations adopted by the task force;

(3) list recommended administrative changes to the relevant agencies;

(4) include draft legislation to implement nonadministrative recommendations; and

(5) include other information the task force believes is necessary to report.

Subd. 6. Expiration. The task force expires upon submission of the report required under subdivision 5.

EFFECTIVE DATE. This section is effective the day following final enactment."

Delete the title and insert:

"A bill for an act relating to commerce; appropriating money for Department of Commerce, Office of Cannabis Management, and Legislative Coordinating Commission duties and activities; creating a common interest community ombudsperson; modifying certain private fund adviser registration fees; creating a task force on homeowners and commercial property insurance; requiring a report; amending Minnesota Statutes 2024, sections 80A.58; 80A.65, subdivision 2, by adding a subdivision; Laws 2023, chapter 63, article 9, section 5; proposing coding for new law in Minnesota Statutes, chapter 45."

With the recommendation that when so amended the bill be placed on the General Register.

The report was adopted.

Stephenson and Torkelson from the Committee on Ways and Means to which was referred:

S. F. No. 2298, A bill for an act relating to housing; establishing budget for Minnesota Housing Finance Agency; making policy, finance, and technical changes to housing provisions; establishing a task force on homeowners and commercial property insurance; removing certain real property recording fees; transferring money; requiring a report; appropriating money; amending Minnesota Statutes 2024, sections 327C.095, subdivision 12; 462A.051, subdivision 2; 462A.07, subdivision 19, by adding a subdivision; 462A.2095, subdivision 3; 462A.222, by adding a subdivision; 462A.33, subdivisions 2, 9; 462A.40, subdivision 3; 507.18, subdivisions 5, 6; Laws 2023, chapter 37, article 1, section 2, subdivisions 20, 21, 29, as amended; article 2, section 10; proposing coding for new law in Minnesota Statutes, chapter 462A; repealing Minnesota Statutes 2024, sections 16A.287; 462A.43.

Journal Of the House - 25th -Friday, April 25, 2025 - Top of Page 2621

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"ARTICLE 1

HOUSING BUDGET APPROPRIATIONS

Section 1. APPROPRIATIONS.

The sums shown in the columns marked "Appropriations" are appropriated to the agency for the purposes specified in this article. The appropriations are from the general fund, or another named fund, and are available for the fiscal years indicated for each purpose. The figures "2026" and "2027" used in this article mean that the appropriations listed under them are available for the fiscal year ending June 30, 2026, or June 30, 2027, respectively. "The first year" is fiscal year 2026. "The second year" is fiscal year 2027. "The biennium" is fiscal years 2026 and 2027.

			APPROPRIATIONS
			Available for the Year
			Ending June 30
			2026	2027

Sec. 2. HOUSING FINANCE AGENCY

Subdivision 1. Total Appropriation

$158,698,000

$83,248,000

(a) The amounts that may be spent for each purpose are specified in the following subdivisions.

(b) Unless otherwise specified, the appropriations for the programs in this section are appropriated and made available for the purposes of the housing development fund. Except as otherwise indicated, the amounts appropriated are part of the agency's permanent budget base.

Subd. 2. Challenge Program

22,925,000

12,925,000

(a) This appropriation is for the economic development and housing challenge program under Minnesota Statutes, sections 462A.33 and 462A.07, subdivision 14.

(b) Of this amount, $1,208,000 each year shall be made available during the first 11 months of the fiscal year exclusively for housing projects for American Indians. Any funds not committed to housing projects for American Indians within the annual consolidated request for funding processes may be available for any eligible activity under Minnesota Statutes, sections 462A.33 and 462A.07, subdivision 14.

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Subd. 3. Workforce Housing Development

12,000,000

2,000,000

(a) This appropriation is for the greater Minnesota workforce housing development program under Minnesota Statutes, section 462A.39. If requested by the applicant and approved by the agency, funded properties may include a portion of income and rent restricted units. Funded properties may include owner‑occupied homes.

(b) The base for this program in fiscal year 2028 and beyond is $2,000,000.

Subd. 4. Manufactured Home Park Infrastructure Grants

3,000,000

1,000,000

(a) This appropriation is for manufactured home park infrastructure grants under Minnesota Statutes, section 462A.2035, subdivision 1b.

(b) The base for this program in fiscal year 2028 and beyond is $1,000,000.

Subd. 5. Workforce Homeownership Program

3,250,000

250,000

(a) This appropriation is for the workforce homeownership program under Minnesota Statutes, section 462A.38.

(b) The base for this program in fiscal year 2028 and beyond is $250,000.

Subd. 6. Rent Assistance Program

23,000,000

This appropriation is for the rent assistance program under Minnesota Statutes, section 462A.2095.

Subd. 7. Housing Trust Fund

11,646,000

This appropriation is for deposit in the housing trust fund account created under Minnesota Statutes, section 462A.201, and may be used for the purposes provided in that section.

Subd. 8. Homework Starts with Home

2,750,000

This appropriation is for the homework starts with home program under Minnesota Statutes, sections 462A.201, subdivision 2, paragraph (a), clause (4), and 462A.204, subdivision 8, to provide assistance to homeless families, those at risk of homelessness, or highly mobile families.

Subd. 9. Rental Assistance for Mentally Ill

5,338,000

(a) This appropriation is for the rental housing assistance program for persons with a mental illness or families with an adult member with a mental illness under Minnesota Statutes, section 462A.2097. Among comparable proposals, the agency shall prioritize those proposals that target, in part, eligible persons who desire to move to more integrated, community-based settings.

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(b) Notwithstanding any law to the contrary, this appropriation may be used for risk mitigation funds, landlord incentives, or other costs necessary to decrease the risk of homelessness, as determined by the agency.

Subd. 10. Family Homeless Prevention

40,419,000

10,719,000

(a) This appropriation is for the family homeless prevention and assistance program under Minnesota Statutes, section 462A.204.

(b) Notwithstanding any law to the contrary, this appropriation may be used for program costs necessary to decrease the risk of homelessness and improve the effectiveness of the program, as determined by the agency.

(c) When a new grantee works with a current or former grantee in a given geographic area, a new grantee may work with either an advisory committee as required under Minnesota Statutes, section 462A.204, subdivision 6, or the local continuum of care and is not required to meet the requirements of Minnesota Statutes, section 462A.204, subdivision 4.

(d) The base for this program in fiscal year 2028 and beyond is $10,719,000.

Subd. 11. Home Ownership Assistance Fund

885,000

This appropriation is for the home ownership assistance program under Minnesota Statutes, section 462A.21, subdivision 8. The agency shall continue to strengthen its efforts to address the disparity gap in the homeownership rate between white households and Indigenous American Indians and communities of color. To better understand and address the disparity gap, the agency is required to collect, on a voluntary basis, demographic information regarding race, color, national origin, and sex of applicants for agency programs intended to benefit homeowners and homebuyers.

Subd. 12. Affordable Rental Investment Fund

4,218,000

(a) This appropriation is for the affordable rental investment fund program under Minnesota Statutes, section 462A.21, subdivision 8b, to finance the acquisition, rehabilitation, and debt restructuring of federally assisted rental property and for making equity take-out loans under Minnesota Statutes, section 462A.05, subdivision 39.

(b) The owner of federally assisted rental property must agree to participate in the applicable federally assisted housing program and to extend any existing low-income affordability restrictions on the housing for the maximum term permitted.

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(c) The appropriation also may be used to finance the acquisition, rehabilitation, and debt restructuring of existing supportive housing properties and naturally occurring affordable housing as determined by the commissioner. For purposes of this paragraph, "supportive housing" means affordable rental housing with links to services necessary for individuals, youth, and families with children to maintain housing stability.

Subd. 13. Owner-Occupied Housing Rehabilitation

2,772,000

(a) This appropriation is for the rehabilitation of owner-occupied housing under Minnesota Statutes, section 462A.05, subdivisions 14 and 14a.

(b) Notwithstanding any law to the contrary, grants or loans under this subdivision may be made without rent or income restrictions of owners or tenants. To the extent practicable, grants or loans must be made available statewide.

Subd. 14. Rental Housing Rehabilitation

3,743,000

(a) This appropriation is for the rehabilitation of eligible rental housing under Minnesota Statutes, section 462A.05, subdivision 14. In administering a rehabilitation program for rental housing, the agency may apply the processes and priorities adopted for administration of the economic development and housing challenge program under Minnesota Statutes, section 462A.33, and may provide grants or forgivable loans if approved by the agency.

Subd. 15. Homeownership Education, Counseling, and Training

857,000

This appropriation is for the homeownership education, counseling, and training program under Minnesota Statutes, section 462A.209.

Subd. 16. Capacity Building Grants

645,000

This appropriation is for capacity building grants under Minnesota Statutes, section 462A.21, subdivision 3b.

Subd. 17. Build Wealth MN

500,000

This appropriation is for a grant to Build Wealth Minnesota to provide a family stabilization plan program including program outreach, financial literacy education, and budget and debt counseling.

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Subd. 18. Greater Minnesota Housing Infrastructure Grants

20,000,000

-0-

This appropriation is for the greater Minnesota housing infrastructure grant program under Minnesota Statutes, section 462A.395. This is a onetime appropriation.

Subd. 19. Statewide Tenant Education and Hotline Service

500,000

-0-

This appropriation is for a statewide tenant education and hotline service that provides free and confidential legal advice for all Minnesota renters. This is a onetime appropriation.

Subd. 20. Accessible Housing Task Force

150,000

-0-

This appropriation is for administration of the Accessible Housing Task Force established in this act. This is a onetime appropriation.

Subd. 21. Policies to Stabilize Affordable Housing

100,000

-0-

This appropriation is for administration of article 3, sections 1, 2, and 6. This is a onetime appropriation.

Subd. 22. Availability

Money appropriated in the first year in this article is available the second year.

Sec. 3. TRANSFER; HOUSING SUPPORT ACCOUNT.

The commissioner of management and budget must transfer any unencumbered balance from the housing support account, under Minnesota Statutes, section 462A.43, to the general fund by June 15, 2025.

EFFECTIVE DATE. This section is effective the day following final enactment.

Sec. 4. REPEALER.

(a) Minnesota Statutes 2024, section 16A.287, is repealed.

(b) Minnesota Statutes 2024, section 462A.43, is repealed.

EFFECTIVE DATE. Paragraph (a) is effective June 30, 2025.

ARTICLE 2

BONDING AUTHORITY AND DEBT SERVICE APPROPRIATIONS

Section 1. Minnesota Statutes 2024, section 462A.37, is amended by adding a subdivision to read:

Subd. 2k. Additional authorization. In addition to the amount authorized in subdivisions 2 to 2j and 3a, the agency may issue up to $100,000,000 in one or more series to which the payments under this section may be pledged.

EFFECTIVE DATE. This section is effective the day following final enactment.

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Sec. 2. Minnesota Statutes 2024, section 462A.37, subdivision 5, is amended to read:

Subd. 5. Additional appropriation. (a) The agency must certify annually to the commissioner of management and budget the actual amount of annual debt service on each series of bonds issued under this section.

(b) Each July 15, beginning in 2015 and through 2037, if any housing infrastructure bonds issued under subdivision 2a, or housing infrastructure bonds issued to refund those bonds, remain outstanding, the commissioner of management and budget must transfer to the housing infrastructure bond account established under section 462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed $6,400,000 annually. The amounts necessary to make the transfers are appropriated from the general fund to the commissioner of management and budget.

(c) Each July 15, beginning in 2017 and through 2038, if any housing infrastructure bonds issued under subdivision 2b, or housing infrastructure bonds issued to refund those bonds, remain outstanding, the commissioner of management and budget must transfer to the housing infrastructure bond account established under section 462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed $800,000 annually. The amounts necessary to make the transfers are appropriated from the general fund to the commissioner of management and budget.

(d) Each July 15, beginning in 2019 and through 2040, if any housing infrastructure bonds issued under subdivision 2c, or housing infrastructure bonds issued to refund those bonds, remain outstanding, the commissioner of management and budget must transfer to the housing infrastructure bond account established under section 462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed $2,800,000 annually. The amounts necessary to make the transfers are appropriated from the general fund to the commissioner of management and budget.

(e) Each July 15, beginning in 2020 and through 2041, if any housing infrastructure bonds issued under subdivision 2d, or housing infrastructure bonds issued to refund those bonds, remain outstanding, the commissioner of management and budget must transfer to the housing infrastructure bond account established under section 462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary to make the transfers are appropriated from the general fund to the commissioner of management and budget.

(f) Each July 15, beginning in 2020 and through 2041, if any housing infrastructure bonds issued under subdivision 2e, or housing infrastructure bonds issued to refund those bonds, remain outstanding, the commissioner of management and budget must transfer to the housing infrastructure bond account established under section 462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary to make the transfers are appropriated from the general fund to the commissioner of management and budget.

(g) Each July 15, beginning in 2022 and through 2043, if any housing infrastructure bonds issued under subdivision 2f, or housing infrastructure bonds issued to refund those bonds, remain outstanding, the commissioner of management and budget must transfer to the housing infrastructure bond account established under section 462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary to make the transfers are appropriated from the general fund to the commissioner of management and budget.

(h) Each July 15, beginning in 2022 and through 2043, if any housing infrastructure bonds issued under subdivision 2g, or housing infrastructure bonds issued to refund those bonds, remain outstanding, the commissioner of management and budget must transfer to the housing infrastructure bond account established under section 462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary to make the transfers are appropriated from the general fund to the commissioner of management and budget.

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(i) Each July 15, beginning in 2023 and through 2044, if any housing infrastructure bonds issued under subdivision 2h, or housing infrastructure bonds issued to refund those bonds, remain outstanding, the commissioner of management and budget must transfer to the housing infrastructure bond account established under section 462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary to make the transfers are appropriated from the general fund to the commissioner of management and budget.

(j) Each July 15, beginning in 2026 and through 2047, if any housing infrastructure bonds issued under subdivision 2j, or housing infrastructure bonds issued to refund those bonds, remain outstanding, the commissioner of management and budget must transfer to the housing infrastructure bond account established under section 462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary to make the transfers are appropriated from the general fund to the commissioner of management and budget.

(k) Each July 15, beginning in 2027 and through 2048, if any housing infrastructure bonds issued under subdivision 2k, or housing infrastructure bonds issued to refund those bonds, remain outstanding, the commissioner of management and budget must transfer to the housing infrastructure bond account established under section 462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary to make the transfers are appropriated from the general fund to the commissioner of management and budget.

(l) The agency may pledge to the payment of the housing infrastructure bonds the payments to be made by the state under this section.

EFFECTIVE DATE. This section is effective the day following final enactment.

ARTICLE 3

HOUSING POLICY

Section 1. Minnesota Statutes 2024, section 462A.07, subdivision 19, is amended to read:

Subd. 19. Report to the legislature. (a) By February 15 each year, the commissioner must submit a report to the chairs and ranking minority members of the legislative committees having jurisdiction over housing finance and policy containing the following information:

(1) the total number of applications for funding;

(2) the amount of funding requested;

(3) the amounts of funding awarded; and

(4) the number of housing units that are affected by funding awards, including the number of:

(i) newly constructed owner-occupied units;

(ii) renovated owner-occupied units;

(iii) newly constructed rental units; and

(iv) renovated rental units.

(b) This reporting requirement applies to appropriations for competitive development programs made in Laws 2023 and in subsequent laws.

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(c) By January 5 each year, the commissioner must report on the financial stability of the affordable housing industry. The report must include:

(1) the ratio of operating expenses to revenue in affordable rental housing projects; and

(2) the percent of rents collected on time, divided into four regions of the state:

(i) the cities of St. Paul and Minneapolis;

(ii) the metropolitan counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington, except for the cities of St. Paul and Minneapolis;

(iii) urban greater Minnesota, including the cities of Duluth, Mankato, Moorhead, Rochester, and St. Cloud; and

(iv) rural greater Minnesota, which includes all of Minnesota, except for the places listed in items (i), (ii), and (iii).

Sec. 2. Minnesota Statutes 2024, section 462A.07, is amended by adding a subdivision to read:

Subd. 21. Affordable housing annual meeting. At least once each year, the commissioner must convene a meeting with the Interagency Council to End Homelessness and the cities and counties with high levels of cost‑burdened households, meaning those where gross rent or homeownership costs are 30 percent or more of household income. The purpose of the meeting is to discuss:

(1) resources received by cities and counties;

(2) regional needs for affordable housing; and

(3) recommendations for the collaborative use of funds to effectively address homelessness, housing insecurity, security of affordable housing, and the lack of housing supply.

Sec. 3. Minnesota Statutes 2024, section 462A.07, is amended by adding a subdivision to read:

Subd. 22. Prioritization of competitive development program awards. (a) When assessing applications for funding from competitive development programs, the commissioner shall prioritize applications for projects located in jurisdictions that have policies conducive to developing residential properties. For assessing applications for funding for any competitive development program, the commissioner shall develop a scoring system which awards additional points to any jurisdiction that meets any of the following criteria:

(1) the jurisdiction allows for the development of multifamily housing in at least 75 percent of the area within the jurisdiction zoned as the commercial district;

(2) the jurisdiction allows for duplexes, accessory dwelling units, or townhomes within 75 percent of the area within the jurisdiction zoned for single-family and applies the same administrative approval process to those properties that would apply to a single-family dwelling being developed on the same lot;

(3) the jurisdiction does not have parking mandates greater than one stall per unit of housing for single family or multifamily developments;

(4) the jurisdiction does not mandate lot sizes larger than one-eighth of an acre; and

(5) the jurisdiction does not place aesthetic mandates on new home construction in single-family, including type of exterior finish materials, including siding; the presence of shutters, columns, gables, decks, balconies, or porches; or minimum garage square footage, size, width, or depth.

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(b) In determining whether a jurisdiction has complied with any of the criteria in paragraph (a), the commissioner may rely on representations on the website of a municipality as to their compliance with any of those criteria.

Sec. 4. Laws 2023, chapter 37, article 1, section 2, subdivision 20, is amended to read:

Subd. 20. Community-Based First-Generation Homebuyers Down Payment Assistance

100,000,000

-0-

This appropriation is for a grant to Midwest Minnesota Community Development Corporation (MMCDC) to act as the administrator of the community-based first-generation homebuyers down payment assistance program. The funds shall be available to MMCDC for a three-year period commencing with issuance of the funds to MMCDC. At the expiration of that period, any unused funds shall be remitted to the agency. ~~Any funds recaptured by MMCDC after the expiration of that period shall be remitted to the agency.~~ Funds remitted to the agency under this paragraph are appropriated to the agency for administration of the first‑generation homebuyers down payment assistance fund.

Sec. 5. Laws 2023, chapter 37, article 2, section 9, is amended to read:

Sec. 9. COMMUNITY-BASED FIRST-GENERATION HOMEBUYERS ASSISTANCE PROGRAM.

Subdivision 1. Establishment. A community-based first-generation homebuyers down payment assistance program is established as a ~~pilot project~~ program under the administration of the Midwest Minnesota Community Development Corporation (MMCDC), a community development financial institution (CDFI) as defined under the Riegle Community Development and Regulatory Improvement Act of 1994, to provide targeted assistance to eligible ~~households~~ homebuyers.

Subd. 2. Eligible ~~household~~ homebuyer. For purposes of this section, ~~"eligible household"~~ "eligible homebuyer" means ~~a household~~ an adult person:

(1) whose income is at or below 100 percent of the ~~area~~ statewide median income at the time of ~~purchase~~ application; ~~and~~

~~(2) that includes at least one adult member:~~

~~(i)~~ (2) who is preapproved for a first mortgage loan; and

~~(ii)~~ (3)(i) who either never owned a home or who owned a home but lost it due to foreclosure; and

~~(iii)~~ (ii) whose parent or prior legal guardian either never owned a home or owned a home but lost it due to foreclosure.

~~At least one adult household member meeting the criteria under clause (2)~~ The eligible homebuyer must complete an approved homebuyer education course prior to signing a purchase agreement and, following the purchase of the home, must occupy it as their primary residence.

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Subd. 3. Use of funds. Assistance under this section is limited to ten percent of the purchase price of a one or two unit home, not to exceed $32,000. Beginning in fiscal year 2027, the maximum amount of assistance may be increased to up to ten percent of the median home sales price as reported in the previous year's Minnesota Realtors Annual Report on the Minnesota Housing Market. Funds are reserved at the issuance of preapproval. Reservation of funds is not contingent on having an executed purchase agreement. The assistance must be provided in the form of a no-interest loan that is forgiven over five years, forgivable at a rate of 20 percent per year on the day after the anniversary date of the note, with the final 20 percent forgiven on the down payment assistance loan maturity date. There is no monthly pro rata or partial year credit. The loan has no monthly payment and does not accrue interest. The prorated balance due is repayable if the property converts to nonowner occupancy, is sold, is subjected to an ineligible refinance, is subjected to an unauthorized transfer of title, or is subjected to a completed foreclosure action within the five-year loan term. Recapture can be waived in the event of financial or personal hardship. MMCDC may retain recaptured funds for assisting eligible homebuyers as provided in this section. Funds may be used for closing costs, down payment, or principal reduction. The eligible household may select any first mortgage lender or broker of their choice, provided that the funds are used in conjunction with a conforming first mortgage loan that is fully amortizing and meets the standards of a qualified mortgage or meets the minimum standards for exemption under Code of Federal Regulations, title 12, section 1026.43. Funds may be used in conjunction with other programs the eligible household may qualify for and the loan placed in any priority position.

Subd. 4. Administration. The community-based first-generation homebuyers down payment assistance program is available statewide and shall be administered by MMCDC, the designated central CDFI. MMCDC may originate and service funds and authorize other CDFIs, Tribal entities, and nonprofit organizations administering down payment assistance to reserve, originate, fund, and service funds for eligible ~~households~~ homebuyers. Administrative costs must not exceed ~~$3,200 per loan~~ ten percent of the fiscal year appropriation.

Subd. 5. Report to legislature. By January 15 each year, the fund administrator, MMCDC, must report to the chairs and ranking minority members of the legislative committees with jurisdiction over housing finance and policy the following information:

(1) the number and amount of loans closed;

(2) the median loan amount;

(3) the number and amount of loans issued by race or ethnic categories;

(4) the median home purchase price;

(5) the interest rates and types of mortgages;

(6) the credit scores of both applicants and households served;

(7) the total amount returned to the fund; and

(8) the number and amount of loans issued by county.

Sec. 6. POLICY FRAMEWORK FOR TARGETED STABILIZATION OF REGULATED AFFORDABLE HOUSING.

(a) The commissioner of housing finance must work with affordable housing stakeholders, including the Interagency Stabilization Group, to develop a policy framework for targeted stabilization of affordable rental housing. In developing this framework, the commissioner must identify:

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(1) strategies, tools, and funding mechanisms for targeted stabilization of affordable rental housing and recapitalization of distressed properties;

(2) potential improvements for regulatory relief for affordable rental housing providers and implement these improvements where feasible;

(3) a specific plan for relief when an operator of permanent housing cannot identify and secure adequate service funding that matches the tenants' needs; and

(4) a strategy with the commissioner of human services to integrate the awarding of state service dollars to permanent supportive housing so that state service dollars can accompany capital awards in the consolidated request for proposal process.

(b) The commissioner must report quarterly to the Minnesota Housing Finance Agency Board of Directors on the policy framework, improvements implemented, and any potential changes to legislation that may be needed to support targeted stabilization of regulated affordable housing and recapitalization of distressed properties.

(c) By January 5, 2026, the commissioner must report to the chairs and ranking minority members of the legislative committees having jurisdiction over housing finance and policy on the policy framework, improvements implemented, and any potential changes to legislation that may be needed to support targeted stabilization of regulated affordable housing and recapitalization of distressed properties.

Sec. 7. ACCESSIBLE HOUSING TASK FORCE.

Subdivision 1. Definitions. (a) For purposes of this section, the following terms have the meanings given.

(b) "Accessible housing" means housing that is designed, constructed, or modified to enable persons with disabilities to live independently. Accessible housing may be made accessible through design or additional features, such as modified bathrooms, cabinetry, appliances, furniture, space, shelves, or cupboards that improve the overall ability of persons with disabilities to function in the housing.

Subd. 2. Establishment of task force. An Accessible Housing Task Force is established to:

(1) examine the housing experiences of persons with disabilities, including their experiences seeking accessible housing or independent housing;

(2) examine the practices of housing providers related to accessible housing and independent housing and the issues preventing housing providers from providing accessible housing or independent housing units to persons with disabilities; and

(3) recommend legislation to increase the supply of safe and affordable, accessible housing and independent housing units.

Subd. 3. Membership. (a) The task force consists of the following members appointed by the governor:

(1) five persons with disabilities who have experienced a lack of accessible housing;

(2) two parents of adult persons who have experienced a lack of affordable housing;

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(3) one representative of the Minnesota Council on Disability;

(4) one representative of Arc Minnesota;

(5) one representative of the Minnesota Consortium for Citizens with Disabilities;

(6) one representative of the Minnesota Housing Finance Agency;

(7) one representative of the Minnesota Department of Human Services;

(8) one representative of the Minnesota Department of Health;

(9) one staff person working for a housing stabilization services program;

(10) one representative of a housing contractor who has built accessible housing;

(11) one representative of a housing developer who has developed property that includes accessible housing;

(12) one representative of an organization or a local government agency that helps find housing for people with disabilities;

(13) one member of the Minnesota Board on Aging; and

(14) two representatives of organizations or groups who advocate for persons with disabilities.

(b) Appointments must be made no later than July 1, 2025, and must include representatives of both the metropolitan area and greater Minnesota.

(c) Task force members must serve without compensation, except for public members. Members eligible for compensation must receive expenses as provided in Minnesota Statutes, section 15.059, subdivision 6.

(d) Vacancies must be filled by the governor consistent with the qualifications of the vacating member required by this subdivision.

Subd. 4. Meetings; officers. (a) The Minnesota Housing Finance Agency shall convene the first meeting of the task force no later than August 15, 2025, and shall provide accessible physical or virtual meeting space as necessary for the task force to conduct its work.

(b) At its first meeting, the task force shall elect a chair and vice-chair from among the task force members and may elect other officers as necessary.

(c) The task force shall meet according to a schedule determined by the members or upon the call of the task force's chair. The task force must meet as often as necessary to accomplish the duties under subdivision 5.

(d) Meetings of the task force are subject to Minnesota Statutes, chapter 13D.

Subd. 5. Duties. (a) The task force must seek input from:

(1) individuals who are experiencing or who have experienced the lack of affordable, accessible housing;

(2) providers of accessible housing; and

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(3) any other persons or organizations with experience or expertise in affordable, accessible housing.

(b) The task force must:

(1) research and analyze how other states, cities, and counties address a lack of affordable, accessible housing; and

(2) develop recommendations to establish statewide education on affordable, accessible housing to ensure that local units of government include affordable, accessible housing and affordable housing policies in local planning.

Subd. 6. Report. (a) No later than February 1, 2026, the task force shall submit an initial report to the chairs and ranking minority members of the legislative committees and divisions with jurisdiction over housing on the findings and recommendations of the task force for improving the supply, quality, and affordability of accessible housing statewide.

(b) No later than August 31, 2026, the task force shall submit a final report to the chairs and ranking minority members of the legislative committees and divisions with jurisdiction over housing on the findings and recommendations in paragraph (a).

Subd. 7. Expiration. The task force expires the day following submission of the final report under subdivision 6.

EFFECTIVE DATE. This section is effective the day following final enactment."

Delete the title and insert:

"A bill for an act relating to housing; establishing a budget for the Minnesota Housing Finance Agency; authorizing the issuance of housing infrastructure bonds; establishing an Accessible Housing Task Force; modifying the community-based first-generation homebuyers down payment assistance program; providing for the creation of a policy framework for targeted stabilization of regulated affordable housing; repealing housing support account in special revenue fund; requiring reports; transferring money; appropriating money; amending Minnesota Statutes 2024, sections 462A.07, subdivision 19, by adding subdivisions; 462A.37, subdivision 5, by adding a subdivision; Laws 2023, chapter 37, article 1, section 2, subdivision 20; article 2, section 9; repealing Minnesota Statutes 2024, sections 16A.287; 462A.43."

With the recommendation that when so amended the bill be placed on the General Register.

The report was adopted.

SECOND READING OF SENATE BILLS

S. F. Nos. 3196, 1959, 2216 and 2298 were read for the second time.

INTRODUCTION AND FIRST READING OF HOUSE BILLS

The following House Files were introduced:

Stier, Koegel and Novotny introduced:

H. F. No. 3241, A bill for an act relating to transportation; modifying certain limitations on display of dynamic electronic content while operating a motor vehicle; amending Minnesota Statutes 2024, section 169.471, subdivision 1.

The bill was read for the first time and referred to the Committee on Transportation Finance and Policy.

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Dippel introduced:

H. F. No. 3242, A bill for an act relating to liquor; authorizing the city of Hastings to issue a certain on-sale license notwithstanding the terms of a lease between the city and the state of Minnesota.

The bill was read for the first time and referred to the Committee on Commerce Finance and Policy.

Anderson, P. E., and Baker introduced:

H. F. No. 3243, A bill for an act relating to employment; paid leave; requiring paid leave call center to be fully operational on January 1, 2026.

The bill was read for the first time and referred to the Committee on Workforce, Labor, and Economic Development Finance and Policy.

Anderson, P. E., introduced:

H. F. No. 3244, A bill for an act relating to capital investment; modifying previous appropriations for trail improvements in the city of Dellwood; amending Laws 2020, Fifth Special Session chapter 3, article 1, section 17, subdivision 13, as amended; Laws 2023, chapter 71, article 1, section 11, subdivision 7.

The bill was read for the first time and referred to the Committee on Capital Investment.

Igo introduced:

H. F. No. 3245, A bill for an act relating to housing; repealing the exception to the rent control prohibition; amending Minnesota Statutes 2024, section 471.9996, subdivision 1; repealing Minnesota Statutes 2024, section 471.9996, subdivision 2.

The bill was read for the first time and referred to the Committee on Housing Finance and Policy.

Norris introduced:

H. F. No. 3246, A bill for an act relating to commerce; setting payment term to 45 days for certain corporations; proposing coding for new law in Minnesota Statutes, chapter 325E.

The bill was read for the first time and referred to the Committee on Commerce Finance and Policy.

Frederick introduced:

H. F. No. 3247, A bill for an act relating to claims against the state; providing for the settlement of certain claims; appropriating money.

The bill was read for the first time and referred to the Committee on Ways and Means.

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Lee, K.; Her; Clardy and Cha introduced:

H. F. No. 3248, A bill for an act relating to workforce development; appropriating money for a grant to SEWA-AIFW.

The bill was read for the first time and referred to the Committee on Workforce, Labor, and Economic Development Finance and Policy.

Lillie introduced:

H. F. No. 3249, A bill for an act relating to retirement; modifying the method for amortizing unfunded liabilities; adding a definition for standards for actuarial work; making conforming changes; amending Minnesota Statutes 2024, section 356.215, subdivisions 1, 4, 8, 11, 17.

The bill was read for the first time and referred to the Committee on State Government Finance and Policy.

Fischer and Heintzeman introduced:

H. F. No. 3250, A bill for an act relating to transportation; establishing an outdoor recreation license plate endorsement to allow motor vehicle access to state parks and recreation areas, including use on license plates, fees, public information, and exemptions; appropriating money; amending Minnesota Statutes 2024, sections 85.053, subdivision 2; 168.002, by adding a subdivision; 168.012, subdivision 13; 168.0135, subdivision 1; 168.09, subdivision 7; 168.12, subdivisions 1, 5; 168.27, subdivision 28; 168.29; 169.79, subdivision 8; proposing coding for new law in Minnesota Statutes, chapters 85; 168.

The bill was read for the first time and referred to the Committee on Environment and Natural Resources Finance and Policy.

REPORT FROM THE COMMITTEE ON RULES

AND LEGISLATIVE ADMINISTRATION

Niska from the Committee on Rules and Legislative Administration, pursuant to rules 1.21 and 3.33, designated the following bills to be placed on the Calendar for the Day for Monday, April 28, 2025 and established a prefiling requirement for amendments offered to the following bills:

H. F. Nos. 2431 and 2438.

Niska moved that the House recess subject to the call of the Chair. The motion prevailed.

RECESS

RECONVENED

The House reconvened and was called to order by Speaker pro tempore Olson.

Journal Of the House - 25th -Friday, April 25, 2025 - Top of Page 2636

Pursuant to Rule 10.05, relating to Remote House Operations, the Speaker permitted the following members to vote via remote means for the remainder of today’s session: Baker and Swedzinski.

MESSAGES FROM THE SENATE

The following message was received from the Senate:

Madam Speaker:

I hereby announce the passage by the Senate of the following Senate File, herewith transmitted:

S. F. No. 1740.

Thomas S. Bottern, Secretary of the Senate

FIRST READING OF SENATE BILLS

S. F. No. 1740, A bill for an act relating to education policy; making changes to kindergarten through grade 12 education; modifying provisions for general education, education excellence, charter schools, the Read Act, special education, school nutrition and facilities, and state agencies; requiring a report; amending Minnesota Statutes 2024, sections 10A.071, subdivision 1; 13.03, subdivision 3; 13.32, subdivision 5; 120A.22, subdivisions 12, 13, by adding a subdivision; 120A.24, subdivision 4; 120B.021, subdivisions 2, 3; 120B.024; 120B.119, subdivisions 2a, 10; 120B.12, subdivisions 1, 2, 2a, 3, 4, 4a; 120B.123, subdivisions 1, 5, 7, by adding a subdivision; 120B.124, subdivision 2; 120B.35, subdivision 3; 120B.363, subdivisions 1, 2; 121A.031, subdivisions 2, 4, 6; 121A.041, subdivisions 2, 3; 121A.22, subdivision 2; 121A.2205; 121A.2207; 121A.224; 121A.23, subdivision 1; 121A.41, subdivision 10; 121A.49; 121A.73; 122A.09, subdivision 9; 122A.092, subdivisions 2, 5; 122A.181, subdivision 3; 122A.182, subdivision 3; 122A.183, subdivision 2; 122A.20, subdivision 2; 122A.441; 123B.09, by adding a subdivision; 123B.32, subdivisions 1, 2; 123B.52, by adding a subdivision; 124D.09, subdivisions 5, 5a, 5b, 9, 10; 124D.094, subdivision 1; 124D.111, by adding a subdivision; 124D.117, subdivision 2; 124D.119, subdivision 5; 124D.162; 124D.42, subdivision 8; 124D.52, subdivision 2; 124D.792; 124E.02; 124E.03, subdivision 2, by adding a subdivision; 124E.05, subdivision 2; 124E.06, subdivision 7, by adding a subdivision; 124E.07, subdivisions 2, 3, 5, 6, 8; 124E.10, subdivision 4; 124E.13, subdivision 3; 124E.16, subdivisions 1, 3, by adding a subdivision; 124E.17; 124E.26, subdivisions 4, 5, by adding a subdivision; 125A.091, subdivisions 3a, 5; 125A.0942, subdivisions 4, 6; Laws 2024, chapter 115, article 2, section 21, subdivisions 2, 3; proposing coding for new law in Minnesota Statutes, chapters 120B; 124D; 125A; repealing Minnesota Statutes 2024, sections 120B.124, subdivision 6; 123B.935, subdivision 2.

The bill was read for the first time.

Jordan moved that S. F. No. 1740 and H. F. No. 1306, now on the General Register, be referred to the Chief Clerk for comparison. The motion prevailed.

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CALENDAR FOR THE DAY

H. F. No. 2563, A bill for an act relating to legacy; appropriating money from outdoor heritage, clean water, parks and trails, and arts and cultural heritage funds; extending prior appropriations; providing for leveraging federal grant money; modifying reporting requirements; modifying accountability provisions; amending Minnesota Statutes 2024, sections 97A.056, by adding a subdivision; 114D.30, subdivision 7; 129D.17, subdivision 2, by adding a subdivision; Laws 2023, chapter 40, article 4, section 2, subdivision 6.

The bill was read for the third time and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 115 yeas and 19 nays as follows:

Those who voted in the affirmative were: