March 31, 2026
Friday was the deadline for policy bills to have advanced out of committees of jurisdiction this week, and you could tell that by the long agendas that many committees juggled last week. This past week also continued to follow the recent pattern that many, many bills are failing to advance through House Committees.
Zoning and Land Use
Notably, the House bill that would preempt local zoning and land use decisions, HF3895 (Igo) failed to advance out of the House Elections Finance and Government Operations Committee this week. It’s unclear where the bill goes from here, but Speaker Demuth expressed her opinion that that bill still has a path to advance to a Star Tribune reporter on Wednesday.
Small Business Relief
It was also notable this week that the Senate bills for economic relief for small businesses impacted by recent federal actions stalled in the Senate Jobs Committee after differences of opinion surfaced during a hearing on Monday. The House is planning to take up their bills for this relief after the legislative break.
NDA Prohibition
The Senate Judiciary Committee amended and sent the NDA prohibition bill SF4379 to the Senate floor on Friday. This is a bill we’ve been following closely as this prohibition is very broad in its definition of "municipality" with the definition being:
Municipality" means a county, home rule charter or statutory city, town, school district, housing and redevelopment authority, economic development authority, port authority, or any other political subdivision of the state with authority to enter into a contract for the use of real property and includes any person acting in their capacity as an employee, elected official, appointed official, or other representative of a municipality.
The bill was amended with the intention to clarify and strengthen the NDA restrictions - the new language in the amendment that was adopted restricts NDAs for the development of land and economic development projects.
Bonding
The Governor also began a push this week to encourage the Legislature to pass a bonding package this session. The Governor is advocating for his bonding recommendations and is expected to continue his advocacy efforts in coming weeks.
Significant Happenings Last Week
Monday 3/23/26
Senate Jobs Committee – Heard bills that would provide small business economic relief funding:
- SF4527 (Pha) Small businesses negatively impacted by federal enforcement activity relief program establishment and appropriation. This bill was tabled for possible inclusion after lengthy discussion about some of the details around the program.
- SF4535 (Champion) Minnesota business recovery loan program establishment and appropriation. Scott Marquardt, President, Southwest Initiative Foundation joined a group of supporters to testify in support of this bill. This bill was tabled for possible inclusion after lengthy testimony and discussion.
House Elections Finance and Government Operations Committee – Heard HF3895 (Igo) Zoning authority of local governments over certain housing types limited. The bill had lively testimony from cities that shared their concerns about the bill. Thank you to everyone who testified including Monticello, Grand Rapids, Cannon Falls, and Detroit Lakes (CGMC members) which were joined by the city of Woodbury.
All cities came out in opposition to the bill and the common theme was that it is construction cost and infrastructure cost that was driving the high cost of housing development and despite this, cities are still building new housing and adopting new planning to increase density. The motion to pass bill and send to general register failed 5-7.
Tuesday 3/24/26
House Workforce Committee – Heard HF4097 (Frazier) Money transferred for emerging entrepreneur loan program. The bill was amended so that the bill increases funding for the emerging entrepreneur loan program by $2 million and the small business partnerships program by $1 million. The bill was tabled for possible inclusion in an Omnibus bill.
Wednesday 3/25/26
House Workforce, Labor and Economic Development Committee – Heard a package of bills that would make changes to the rest break and meal break requirements as well as three bills that would make changes to the Minnesota Paid Leave law. None of the bills were able to be voted out of committee and were laid on the table.
- HF4110 (Zeleznikar) - Rest break and meal break requirements adjusted under certain circumstances
- HF2113 (Robbins) - Small employers exempted from requirement to provide paid leave
- HF4569 (Bakeberg) – Modifying the definition of seasonal employee under Minnesota Paid Leave law
- HF4414 (Baker) - Elected officials exempted from Minnesota Paid Leave Law
Thursday 3/26/26
House Workforce, Labor and Economic Development Finance and Policy Committee – Heard a presentation on the Report of the Review of Competitive Grant Processes. The co-chairs asked a number of questions getting at the question – if competitive programs are responsive to community needs. The agency shared their community reviewer process, the way the agency evaluates workforce grantee outcomes and expressed an interest in continued improvement. The co-chairs expressed their interest to continue conversations about competitive vs. legislatively directed grants.
Friday 3/27/26
Senate Judiciary Committee - Heard SF4379, which would prohibit municipalities from signing NDAs. Senator Maye Quade offered up the A-6 amendment which further clarifies the bill language. The amendment was adopted, and the bill was sent to the Senate floor.
Significant Upcoming Hearings
Monday 3/23/26
Lawmakers are on legislative break from March 27 at 5:00 p.m. To April 7 at 8:00 a.m. Many members will be meeting with constituents in-district during this period, and it can be a good time to connect with them on key legislative initiatives.
Key Bills We’re Watching
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SF3695 (Port) Federal immigration enforcement operation economic impact study requirement provision and appropriation.
- SF3608 (Rest) Requirements modification for return of excess tax increments
- HF3663/SF4212
(Jones/McEwen) State Building Code; funding provided for competitive grants to
assist municipalities with streamlining State Energy Code compliance
report required, and money appropriated.
- SF3664/HF3732 (Champion/Pinto) – Agency policy bill
- HF3843/SF4427 (Baker/Housley) Requires a sub-committee of the Workforce Development Board to make recommendations for appropriations from the Workforce Development Fund.
- SF3839/HF3806 (Port/Howard) Housing infrastructure bond issue and appropriation
- HF3600 (Perryman) – Competitive selection processes modified for certain housing development programs.
- SF4123/HF3895 (Port/Igo) Zoning authority of local governments over certain housing types limited.
- SF4158/HF4602 (Jasinski/Skraba) BDPI bond issue and appropriation
- HF4077/SF4379 (Greenman/Maye Quade) Municipalities prohibition from entering into nondisclosure agreements. This bill was sent to the General Register in the House and Judiciary Committee in the Senate.
- HF4097/SF4272 (Frazier/Pha) Adds $2 million in additional funding for the Emerging Entrepreneur Loan Program.
- HF4342/SF4527 (Frazier/Pha) Relief program for small businesses negatively impacted by federal enforcement activity established, report required, and money appropriated.
- SF4535/HF4477 (Champion/Xiong) Minnesota business recovery loan program establishment and appropriation