New laws in Minnesota took effect on July 1 covering various areas including business, economic development, education, and employment.

Homeowners’ association ombudsperson and commerce law

A new law establishes a common interest community ombudsperson to assist unit owners and associations in understanding their rights and resolving disputes.  Additional provisions include access to free water at large events and new regulations for financial institutions regarding account closures due to harassment.

Creation of a common interest community ombudsperson within the Department of Commerce. 

Requirement for places of entertainment with 100+ attendees to provide free water access. 

Financial institutions can close accounts of harassing customers. 

Economic development and jobs funding

The law allocates approximately $460 million for jobs and economic development initiatives in the 2026-27 biennium, with significant funding directed towards community development and workforce services.  It also includes policy changes to enhance labor law enforcement and grant processes. 

Total funding of about $460 million for economic development and jobs programs. 

$95 million for business and community development; $92.34 million for workforce development services. 

$88.4 million for vocational rehabilitation services for people with severe disabilities. 

Summer unemployment insurance for school workers

A new law provides a one-time $100 million appropriation to support summer unemployment insurance for hourly school workers, funded by reallocating previous appropriations.  This ensures that school districts can cover unemployment benefits for eligible employees during the summer months. 

A total of $100 million has been allocated for summer unemployment insurance for hourly school workers. 

Funding sourced from cuts to the Northern Lights Express rail project and special education aid.

Special education costs will be covered by direct state unemployment insurance aid payments. 

K-12 education finance and policy law

The K-12 education law allocates $25.73 billion for schools, increasing funding while implementing cuts in certain areas.  It includes provisions for teacher programs and a commission to address special education funding challenges.

Total funding of $25.73 billion for K-12 education, with a $4.2 million increase. 

There is a total of $55.64 million for compensatory revenue and $22.96 million for teacher programs.

Creation of a Blue Ribbon Commission on Special Education to address funding issues. 

Protections for minors in online media

A new law regulates the use of minors in online content, requiring compensation and trust accounts for minors featured in videos.  It prohibits children under 14 from working in content creation while allowing older minors to produce their own content. 

Regulations established for minors appearing in compensated online content. 

Trust accounts required for minors’ earnings until they turn 18. 

Children under 14 cannot appear in more than 30 percent of videos but are entitled to 100 percent of profits. 

Environmental law and funding

The environmental law allocates $1.19 billion for state agencies focused on preserving air, water, and wildlife, while reforming permitting processes.  It also includes measures to regulate PFAS in consumer products and enhance enforcement against abandoned watercraft. 

A total of $1.19 billion has been allocated for environmental protection and agency funding. 

Reforms to Pollution Control Agency permitting processes for efficiency.

New regulations on PFAS in consumer products and enforcement against abandoned watercraft. 

Legacy Funds for outdoors and arts

Nearly $777 million from legacy funds will be used to protect natural resources, support arts, and enhance parks and trails.  This funding aims to ensure the preservation of Minnesota’s environment and cultural heritage. 

A total of $777 million has been appropriated from legacy funds for environmental and arts initiatives. 

Funding includes $139.34 million for watershed projects and $67.65 million for arts initiatives. 

Focus on protecting drinking water sources and enhancing wildlife habitats.

New boater operator permit requirements

A new law mandates that many boaters must obtain an operator’s permit, starting with those aged 21 and younger.  The requirement will gradually extend to older age groups by 2028. 

New operator’s permit required for boaters aged 21 and younger, expanding to older groups by 2028. 

Permits available for individuals 12 years and older who complete a water safety course. 

Motorboat rental businesses must ensure renters have valid permits. 

Health and human services funding

The law directs $7.01 billion in funding for health and human services, aiming to maintain services while curbing spending growth.  It includes various initiatives to improve health care access and efficiency.

A total of $7.01 billion has been allocated for health and human services in the 2026-27 biennium. 

Modifications to MinnesotaCare and Medical Assistance to reduce spending. 

Establishment of a dementia service program and expanded optometrist practices.

Higher education funding and policy changes

The higher education law appropriates $4.01 billion for the 2026-27 biennium, addressing a grant program deficit and implementing policy changes to improve funding efficiency.  It includes significant funding for Minnesota State and the University of Minnesota.

A total of $4.01 billion has been allocated for higher education, including $1.76 billion for Minnesota State. 

A total of $494.6 million has been targeted to the State Grant Program to address a deficit.

Policy changes include lowering the maximum lifetime credit cap for state grants. 

Veterans and military affairs funding

The new law increases funding for veterans and military affairs by $50.5 million, enhancing support for veterans’ homes and various services.  It also establishes a task force for veterans of the Secret War in Laos.

There is a $50.5 million increase for veterans and military affairs funding. 

A total of $40.9 million has been allocated to the Department of Veterans Affairs for operations. 

Task force created to develop eligibility requirements for veterans of the Secret War in Laos. 

Public safety and judiciary law changes

This law increases funding for public safety and judiciary services while implementing various legal changes, including increased penalties for certain crimes and enhanced electronic access to court records.  It also mandates the phased closure of the Stillwater prison. 

A total of $792.8 million has been allocated for district courts and public safety initiatives.

Increased penalties for assaulting firefighters and expanded police use of drones.

Phased closure of the Stillwater prison with a $1 million study for decommissioning. 

Annual claims law payments

The annual claims law allocates nearly $72,381 for various claims against the state, including compensation for wrongful imprisonment. It addresses personal injury claims related to the Department of Corrections. 

Nearly $72,381 allocated for claims against the state in fiscal year 2026.

A $65,000 payment to the estate of Vincent Beaulieu for wrongful imprisonment.

Additional payments for personal injury claims related to the Department of Corrections. 

State government funding and policy changes

The omnibus state and local government law allocates $1.35 billion for the 2026-27 biennium, with various policy provisions aimed at improving government efficiency and fraud prevention. It includes new designations for state symbols and transparency measures.

A total of $1.35 billion has been allocated for state government operations in the 2026-27 biennium.

New policies to combat fraud and improve transparency in government operations.

Establishment of the giant beaver as the state fossil and Ursa Minor as the state constellation.

Motorcyclists allowed to lane split

Effective July 1, 2025, motorcyclists will be permitted to lane split and filter, enhancing their ability to navigate traffic safely.  Specific speed limits and conditions are outlined for these maneuvers.

Motorcyclists allowed to lane split and filter in traffic starting July 1, 2025. 

Lane splitting permitted at speeds up to 25 mph or 15 mph over traffic speed. 

Lane filtering allowed in stopped traffic at speeds up to 15 mph over. 

Permanent medical exceptions for window tinting

The law allows permanent medical exceptions for vehicle window tinting restrictions when a physician determines a driver’s light sensitivity is permanent.  This change eliminates the need for renewals every two years.

Permanent medical exceptions for window tinting effective July 1, 2025. 

Exceptions granted based on a physician’s determination of permanent light sensitivity. 

Eliminates the need for periodic renewals of tinting exceptions.

Transportation law and State Patrol headquarters

The transportation law allocates $9.88 billion for various projects, including a new State Patrol headquarters and significant road construction initiatives.  It aims to enhance transportation infrastructure across Minnesota.

A total of $9.88 billion has been allocated for transportation projects in the 2026-27 biennium. 

Funding includes $650 million for the John A. Blatnik Bridge rebuild and $97.03 million for a new State Patrol headquarters. 

Additional funds for state highway improvements and airport development projects.