2024 Legislative Session Overview

June 24, 2024

An overview of the key legislative issues and outcomes for cities from the 2024 legislative session.

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Minnesota’s 2024 legislative session wrapped up May 19 with a chaotic finish. Frustrated with Republican filibusters, the Democratic-Farmer-Labor (DFL) House and Senate majorities advanced a 1,430-page omnibus bill in the final hour before the deadline for passing bills. The omnibus bill contained
policy, supplemental budget, and tax measures, as well as provisions aimed at keeping Uber and Lyft from leaving the state.

Adjournment marked the end of a consequential biennium in which more than 11,000 bills were introduced, and Gov. Tim Walz signed 126 chapters of law.

Throughout the 2024 legislative session, the League advocated for city priorities and interests. As effective dates of new laws approach, the League is here to analyze the implications for cities. Detailed information about new laws is included in the LMC 2024 Law Summaries (pdf). We will also share city-by-city funding estimates of various state aids to cities as they become available.

Key Outcomes for Cities

BONDING

The Legislature failed to bring a bonding bill up for a vote in either body, and also failed a last-minute attempt to pass a $71 million general fund appropriation package to fund a few projects.

BROADBAND

Decades-old statutory barriers that made it difficult for cities to create municipal broadband networks were removed. Cities will no longer be required to obtain a supermajority voter approval to construct a network nor will cities be prohibited from constructing a network if it competes with service provided by private entities.

CANNABIS

Social equity applicants who receive preapproval and comply with local zoning ordinances are allowed to start early cultivation; the application window opens July 24, 2024.
Municipal cannabis retailers may bypass the lottery selection process if they meet minimum qualifications. Any municipal cannabis business would not count toward a license limit imposed by a local government.

CYBERSECURITY

Government entities will be required to report cybersecurity incidents to the Minnesota Department of Information Technology Services through a new reporting system that will be developed by Sept. 30, 2024.

EARNED SICK AND SAFE TIME (ESST)

Paid on-call firefighters and volunteer ambulance attendants will be exempt from ESST, and use of ESST will be limited for certain employees responding to weather events.
The law expanded application of ESST to all employee leave, including more generous benefits, used for personal illness or injury accrued after Jan. 1, 2024.
Eligible use of ESST was expanded to allow for time off related to funeral or legal matters arising after the death of a family member.

ELECTIONS

A new Minnesota Voting Rights Act that prohibits vote dilution and voter suppression and establishes a process for bringing and analyzing voting rights claims was enacted.
The omnibus elections bill directed additional funding to the voting operations, technology, and election resources (VOTER) account that assists local governments with election-related expenses.
Beginning Jan. 1, 2025, temporary pop-up polling locations for state general and odd-year city general elections may be required at certain post-secondary institutions that provide housing to 100 or more students.

EMERGENCY MEDICAL SERVICES (EMS)

$24 million in rural emergency ambulance service aid will be distributed to qualifying licensed ambulance services on Dec. 26, 2024.
$6 million will fund sprint medic pilot programs in Grant, St. Louis, and Ottertail counties.
The Emergency Medical Services Regulatory Board will be replaced with a new Office of Emergency Medical Services in January 2025.

EMPLOYMENT

Employers will be required to include salary ranges in job postings beginning Jan. 1, 2025.

ENVIRONMENT

New grant programs were created for community tree planting, with $8 million for statewide use and another $3 million dedicated to the seven-county metro area.
Comprehensive plans are protected from Minnesota Environmental Rights Act lawsuits for all cities in the seven-county metro area.

HOUSING

No bills that would have preempted city zoning and land use authority passed this session including the “Missing Middle Housing” bill, multifamily residential developments allowed by right in commercial areas, or the “People Over Parking Act.”
$50 million was authorized for housing infrastructure bonds.
Cities receiving aid under the Local Affordable Housing Aid and Statewide Affordable Housing Aid will be required to supplement, not supplant, local funding for housing and include any reductions in housing expenditures in their annual reports for continued aid payments.
Cities are no longer able to impose rental licensing requirements on certain group homes that are licensed by the Minnesota Department of Health or Minnesota Department of Human Services and have six or fewer residents.

OPEN MEETING LAW

No amendments to the Open Meeting Law were enacted, although several changes related to closed meetings, penalties for violations, public comment periods, and remote participation were considered.

PAID FAMILY AND MEDICAL LEAVE (PFML)

A February 2024 actuarial analysis indicated that the premium rate necessary to meet the requirements of the PFML program is 0.88%. Legislation passed in 2024 authorizes the Department of Employment and Economic Development to adjust the premium rate based on program experience and actuarial principles, so the initial 0.7% rate in statute can be changed to the rate provided in the analysis.

PUBLIC SAFETY

A law enacted in March 2024 clarifies the duties and authority school resource officers (SROs) have when working in a school setting and requires training and model policies for SROs.
New rules for scrap metal dealers and individuals selling copper metal that aim to reduce copper wire theft were passed.
When making a traffic stop, peace officers are now prohibited from asking if the driver can identify the reason for the stop.

TAXES

The Legislature did not pass an omnibus tax bill and only a few tax provisions were included in the supplemental spending bill. Outside of changes to tax forfeiture, none of the changes directly impact cities.
Both the House and Senate passed differing versions of a local sales tax general authority, but no changes were enacted. The local sales tax moratorium remains in place through the 2025 legislative session.

TRANSPORTATION

Cities with a population of less than 5,000 will receive revenue from a $11.35 million, one-time appropriation for the Small Cities Assistance Program. This is intended to provide short-term relief while revenues in the permanent Transportation Advancement Account are collected.
The Small Cities Assistance and Larger Cities Assistance funds provided through the Transportation Advancement Account can now be used for debt service on bonds for cities that borrow for transportation capital improvements.
Dozens of policy provisions were enacted, including authority to establish pedestrian malls, a traffic safety camera system pilot, uniform disability parking signs, and new restrictions on towing.