Deadlines!

It has been a busy week at the State Capitol. In both the House and Senate, committees raced to meet the first and second bill deadlines of Friday, April 4 (collectively), while finance committee chairs in both bodies met behind closed doors to work on omnibus finance bills. The Senate DFL majority released budget targets last Friday, March 28, and the Republicans and DFLers in the tied House released agreed-upon targets a day later. A comparison of these targets can be found here.

Data Center Update

A new data center bill was introduced in the House, H.F. 2928, establishing new regulatory requirements for the siting and operation of large-scale data centers in this state, including provisions governing water use, energy use and cost allocation, and environmental review. The bill also requires data centers to pay an annual fee, to be used for weatherization and energy conservation programs in low-income households. Rep. Patty Acomb (DFL–Minnetonka), the bill’s author, said the bill was shaped by similar laws enacted in Indiana, Nevada, and Texas, and reflected lessons learned by Virginia from its more “hands-off” approach. The bill was laid over for possible inclusion in an omnibus energy bill.

Social Media Tax Proposed

 As Minnesota faces a looming budget deficit, Senate Tax Chair Ann Rest (DFL-New Hope) is proposing a new tax on social media companies (S.F. 3197) to raise additional revenue. Though the Minnesota Department of Revenue estimates the tax would only impact 15 companies, many businesses worry that they may be inadvertently caught up in the legislation. Others worry that as technology changes over time, the lines between social media companies and others may become nearly indistinguishable and that they may face a new tax liability. House Republicans continue to argue that the state should not impose new taxes this year. Stay tuned for additional updates.

Upcoming: Budgets, then Break

In both the House and Senate, committee budgets will likely be released as early as this weekend, as each must be passed out of their respective committees by noon on Friday, April 11. Passage of the Senate bills seem simple at this point as compared to the House, where Republican and DFL co-chairs must quickly find agreement. Following committee passage of the omnibus finance bills, a legislative break will begin. There will be no committee meetings or floor session from noon on April 11 until noon on April 21. Pending any surprising news, our weekly “Top 5” updates will also be on break during that time.

Special Session Talk Expands

 While many have speculated that a special session may be needed to finish the budget-making process this year, conversations have also begun on the potential need for a late summer or fall special session to address funding needs brought on by changes at the federal level. Cuts to various agencies and programs could bring about such activity, most notably with respect to the potential cuts to the Medicaid program.

April 4, 2025