By Joel Crandall, President & CEO, Minnesota Technology Association
As the 2025 legislative session officially comes to a close, we want to thank our members, partners, and policymakers for their engagement and advocacy throughout a dynamic and consequential year. Below is a final summary of key issues MnTech tracked and engaged on during the regular and special sessions.
Social Media Tax
MnTech submitted a letter in opposition to SF 3197, a proposal to impose a tax on social media companies. While the bill did not advance beyond initial committee discussions, comments made by Senate Majority Leader Erin Murphy in a post-session interview suggest that this concept may return in future sessions. MnTech will continue to monitor and engage on this issue to ensure innovation and digital access are not hindered by overly broad taxation frameworks.
AI Regulation and Health Insurance
No comprehensive AI regulatory framework passed this session. However, a targeted bill authored by Senator Erin Maye Quade sought to prohibit the use of artificial intelligence in the utilization review process within health insurance. The bill would have required that all evaluations, decisions, and appeals remain under human oversight. While the bill ultimately died in committee, it signals growing legislative interest in AI governance, particularly in sensitive sectors like healthcare.
Data Center Policy
The special session produced a significant policy package affecting data centers. The final legislation repealed the electricity sales tax exemption and introduced new permitting requirements, labor standards, and fees for large-scale facilities. MnTech submitted formal comments during the session and supported key elements of the final language, which aims to balance infrastructure growth with workforce and environmental considerations.
Computer Science Education
MnTech remained deeply engaged in efforts to preserve and expand computer science education. Proposals from the Governor and Senate to eliminate the Computer Science liaison at the Minnesota Department of Education were met with strong opposition. MnTech testified in both House and Senate E-12 committees and submitted a letter of support requesting $1 million in ongoing funding and continued support for the “computer science supervisor” role. We are pleased to report that this request was included in the final agreement.
Noncompete Reform
Language to further clarify and expand exemptions for noncompete agreements was considered but ultimately dropped from final negotiations. MnTech submitted comments in support of the proposed reforms, which aimed to provide greater flexibility for both employers and employees. While the proposal did not pass, we anticipate continued discussion in future sessions.
As always, MnTech remains committed to advocating for policies that support Minnesota’s innovation economy. Thank you for your continued partnership.
