Minnesota State CapWatch
House and Senate Committee Hearings in Full Swing
Legislative activity increased significantly this week as members of the Minnesota Senate and House of Representatives worked through a variety of policy and budget proposals. Committee hearings touched on a wide range of topics from agency overviews and budget proposals to specific policy initiatives of legislators that might eventually be included in the omnibus finance bills that are put together as part of the biennial budget process.
The Senate and House capital investment committees are also working to review a variety of infrastructure proposals as committee leaders are hoping to pass an infrastructure package this session after a last-ditch effort at the end of last year’s legislative session did not pass.
Fraud Shaping Up to Be Key Issue this Session
With the recent reports of state agencies failing to adequately prevent and investigate fraud with public funds, the Walz Administration and numerous state legislators have released various program integrity proposals outlining different ways of tackling the issue. The House of Representatives has taken it one step further with the formation of the House Committee on Fraud Prevention and State Agency Oversight Policy chaired by Rep. Kristin Robbins (R-Maple Grove). The committee has been charged with examining state agency’s ability to oversee state funds and ensure outside organizations, particularly nonprofits, are using funds for their intended purposes.
The House Republican Caucus introduced H.F. 1, a bill aimed at fighting fraud, waste and abuse, within programs administered by state agencies, as one of their main priorities this session. Authored by Rep. Patti Anderson (R-Dellwood), the bill creates an Office of the Inspector General within the legislative branch which would be supervised by the nonpartisan Legislative Audit Commission. The Senate companion to H.F. 1, S.F. 1219, is authored by Sen. Mark Koran (R-North Branch). H.F. 1 was heard last week in the House Health and Human Services Committee and was passed by a vote on 9-8 to the House Education Finance Committee.
In the Senate, S.F. 856, authored by Sen. Heather Gustafson (DFL-Vadnais Heights) also creates an Office of the Inspector General within the executive branch and has bi-partisan support in the Senate, with Sen. Michael Kreun (R-Blaine) partnering with Sen. Gustafson to present the bill when it was heard in committee. The House of Representatives and Senate proposals both seek to create a new office but differ in significantly in structure and authorities. S.F. 856 was heard last week in the Senate State and Local Government Committee and was passed to the Senate Judiciary and Public Safety Committee.
Lastly, the “Anti-Fraud Package” released as part of Gov. Walz’s biennial budget recommendations included the following:
Governor Walz has not yet stated weather he supports the creation of an Office of Inspector General proposals by the legislature. Earlier this year Walz signed an executive order that moves the Commerce Department’s fraud investigators to the Bureau of Criminal Apprehension and creates a centralized fraud investigations unit. It is unclear how this would impact legislator’s proposals, as some changes are already being made due to the executive order. This is likely to be an ongoing discussion and something the House of Representatives, Senate and Governor must come to an agreement on by the end of the legislative session.
Change to Data Practices Act Subject of First Stalemate in the House
On Thursday, February 20, 2025, the Minnesota House of Representatives took up and voted on its first bill of the session. The proposal, H.F. 20, ultimately failed to receive the 68 votes necessary for passage.
Authored by House Majority Leader Rep. Harry Niska (R-Ramsey), the proposal would have made data collected by the Attorney General’s office classified as private only if it were actually data “on individuals.” Presented as an attempt to “fix” the Minnesota Supreme Court’s interpretation of the Minnesota Government Data Practices Act in Energy Policy Advocates v. Ellison, Rep. Niska argued that the Supreme Court had allowed the Minnesota Attorney General’s Office too much authority to hide from the public how it investigates complaints and various “whistleblower” actions. House Democrats opposed the bill, arguing that the proposal would hamper the Attorney General’s investigation into civil complaints and expose potential whistleblowers to retaliation.
When the bill appeared destined to fall short on a 67-65 party-line vote, Rep. Niska switched his vote to “NO”, causing it to fail 66-66. The procedural move allowed Rep. Niska to subsequently move to reconsider the vote and then move to lay the bill on the table.
Important Dates to Remember
March 6, 2025 Updated Budget Forecast Released
March 11, 2025 HD 40B Special Election
March 29, 2025 Eid break Begins
April 1, 2025 Legislature Resumes
April 11, 2025 Easter/Passover Break Begins
April 21, 2025 Legislature Resumes at 12:00 PM
May 19, 2025 Constitutional Deadline to adjourn legislative session
Federal CapWatch
Budget Resolution Action
House Republicans are preparing to vote on their version of a budget blueprint. The measure is described as procedural and is expected to open negotiations with the Senate on implementing legislation. Debate is anticipated over proposed Medicaid cuts, with some Republicans expressing concerns that the cuts may be too steep while others feel they do not go far enough.
Defense and Federal Workforce Concerns
Recent actions have sparked controversy on Capitol Hill. Following the dismissal of Air Force General Brown as Joint Chiefs chairman, President Trump has appointed retired Air Force Lieutenant General Dan Caine as his replacement. Lawmakers have also questioned an email sent to federal workers over the weekend, which requested that they detail five accomplishments from the previous week. Critics argue that this directive undermines the dignity and respect owed to public employees.
Labor Nomination Vote
The Senate Health, Education, Labor and Pensions Committee is scheduled to vote on the nomination of former Representative Lori Chavez-DeRemer for Labor secretary. During the hearing, she was questioned regarding her previous support for legislation intended to expand worker protections. As Labor secretary, she has stated her intention to implement the President’s policy vision.
Judicial Tactics Under Scrutiny
Republicans have voiced frustration with recent court tactics employed by district court judges. These tactics have hindered some of the administration’s initiatives. Both parties appear reluctant to curtail the use of judicial injunctions, as such measures are a key strategy when the opposing party controls the executive branch.
