MnTech keeps the pulse on policy with this bi-weekly update.
MnTech Policy Pulse
April 13, 2026
Good morning. The Legislature is back from Easter/Passover break and the clock is ticking. Lawmakers returned April 7 with the third committee deadline on April 17, when major appropriation and finance bills must be acted on favorably. The 67-67 House split continues to shape the process: with committees co-chaired by both parties and 68 votes needed to pass anything on the floor, bipartisan buy-in is essential. The session must adjourn by May 18. Here’s what’s moving and what to watch.
MnTech Connect 2026 Recap
MnTech Connect 2026 brought together more than 500 technology leaders at the Saint Paul RiverCentre on April 9 — and this year’s event was highlighted by powerful remarks from three prominent voices shaping Minnesota’s tech future. Saint Paul Mayor Kaohly Her, House Speaker Lisa Demuth, and Senator Amy Klobuchar each took the stage to speak about their commitment to fostering innovation, supporting the tech workforce, and building the brightest possible future for Minnesota’s technology ecosystem. Breakout sessions and panels throughout the day dove deep into AI, leadership, and what’s next for Minnesota innovation.
Why it matters: Participation from bipartisan speakers shows the importance of Minnesota’s tech economy heading into 2027. MnTech continues to serve as the central convener bridging industry and government, ensuring members have a seat at the table as policymakers shape the state’s tech future.
NDA Ban Advances in Both Chambers
HF4077 / SF4379, co-sponsored by Senator Maye Quade (DFL-Apple Valley) and Senator Drazkowski (R-Mazeppa), would ban all NDAs between local governments and private entities — not just data centers. The Senate bill has cleared two committees and awaits a floor vote. The House bill was pulled back from the General Register to go through Judiciary.
Why it matters: A rare bipartisan issue with real momentum. The 67-67 House split actually favors this kind of cross-party bill — it’s one of the few proposals this session with a clear path to 68 votes on the floor.
New Chatbot Regulation Bill Introduced
HF4452, introduced April 7, would bar AI chatbots from providing advice that requires a professional license — including mental health, medical, and legal counsel. Operators could not disclaim liability simply by disclosing that users are interacting with AI. The bill also requires companion chatbot operators to make good-faith efforts to identify minor users.
Why it matters: HF4452 is another addition to a growing suite of AI regulations authored by Senator Erin Maye Quade, joining SF1857 (minors chatbot ban, laid over in Senate Commerce). As a newly introduced bill, it still needs committee hearings and has a long road ahead — but it signals continued legislative interest in AI guardrails. Civil penalties reach up to $5 million.
AI Workplace and Displacement Bills Move to Next Committees
Senator Maye Quade’s AI employment bills — SF4689 (automated decision systems), SF4686 (electronic monitoring), and SF4573 (AI employment discrimination) — cleared Senate Labor before the break. SF4689 and SF4686 are now in State and Local Government; SF4573 was referred to Judiciary. The displacement notice bill, SF4576 and its House companion HF4369, would require 90 days’ notice before deploying AI that displaces jobs.
Why it matters: These bills face a narrowing window to clear State and Local Government and reach the floor before May 18. With employers, labor, and tech companies all at the table, there are many stakeholders who need to agree before these proposals can advance — and the 68-vote House threshold makes that alignment essential.
AI Disclosure Bill Awaits Hearing in Senate Commerce
SF1886 would require businesses to disclose when a person is communicating with AI, prohibit deceptive practices, and give consumers the option to speak with a human instead. The bill continues to sit in Senate Commerce and has not had a hearing there. Violations would carry individual damages up to $1,000 and AG-enforced penalties up to $5 million.
Why it matters: Part of the bipartisan Maye Quade-Lucero (R-St. Michael) AI package. Would apply to any business using AI chatbots, virtual assistants, or automated phone systems in customer-facing roles — with broad implications for tech companies in Minnesota.
Advertising Tax and Social Media Tax Proposals in Play
HF4343 / SF4787 would impose sales tax on digital and nondigital advertising services, with carveouts for services rendered in respect to printing, publishing, radio, and television. Washington and Maryland have passed similar taxes; Maryland’s is currently undergoing litigation. MnTech and other member organizations have expressed opposition, emphasizing that businesses rely on advertising to compete globally and raising concerns about tax pyramiding.
Separately, Governor Walz’s supplemental budget includes a proposed tax on social media companies with 100,000+ monthly users in Minnesota, with revenue directed toward AI workforce displacement programs. Conversations are still being had on its feasibility, with MnTech weighing in. Both proposals need bipartisan support to clear the split House.
Quick Hits
- Nudification bill advances: Rep. Hanson’s (DFL-Burnsville) HF1606 banning AI nudification technology passed House Commerce unanimously and heads to Judiciary. FOX 9 →
- Third deadline ahead: Committees must act favorably on major appropriation and finance bills by 5 p.m. on Friday, April 17. Omnibus bills are being assembled now.
- Surveillance pricing in limbo: SF4711 (Senator Port) was laid over in Senate Commerce before the break. House bills could still be folded into broader packages. KARE 11 →
- Session ends May 18: The Legislature must complete all work by this date. Floor action on remaining policy bills will intensify in the coming weeks.
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