MnTech keeps the pulse on policy with this bi-weekly update.
Good morning. The April 17 committee deadline is behind us and the Legislature is deep in negotiations. The Senate is moving large omnibus bills, while the House is a mixed picture — some co-chaired committees have been able to assemble omnibus packages, while others are struggling to find agreement and may rely on single-subject bills instead. The 67-67 split and 68-vote threshold continue to complicate reconciliation. Twenty-four days remain until May 18 adjournment. Here’s what’s moving.
AI & Consumer Protection
House Passes Nudification Ban 132-1
Rep. Jess Hanson’s (DFL-Burnsville) HF1606 passed the House 132-1 on April 23. The bill bans apps and websites that use AI to create fake nude or pornographic images from a person’s likeness. Companies in violation face civil penalties up to $500,000.
Why it matters: A 132-1 vote is a strong bipartisan signal. The bill now heads to the Senate with a realistic path to the governor’s desk.
CBS Minnesota coverage → • PetaPixel →
NDAs & Data Centers
Senate Passes NDA Ban in Omnibus Bill; House Path Uncertain
The Senate passed the State and Local Government omnibus bill (SF4555) on April 21 with the NDA ban added through amendment A38. During floor debate, Sen. Holmstrom pushed to expand the ban to all local government NDAs, Republicans argued against targeting one industry, and Sen. Mathews raised constitutionality concerns.
On the House side, HF4077 stalled 7-7 in Judiciary, and House GOP leaders have resisted large omnibus packages — leaving the bill’s vehicle uncertain.
Why it matters: Despite bipartisan co-authorship from Sen. Maye Quade (DFL) and Sen. Drazkowski (R), the bill’s fate hinges on whether both chambers can agree on a vehicle before May 18.
Senate DFL coverage → • MinnPost →
Youth & Online Safety
Social Media Protections for Minors Advance in Both Chambers
HF4138 (Scott) and its Senate companion SF4696 (Kreun) would require age verification and parental approval for minor social media accounts and restrict addictive design features for children under 15.
Senate Finance heard the bill today, taking up a Maye Quade bill and replacing it with the SF4696 language. MnTech shared a letter in opposition.
Why it matters: Youth online safety has bipartisan momentum at both the state and federal level. Tech companies operating in Minnesota should be watching for compliance requirements around age verification and parental consent.
Tax & Revenue
Tech Tax Proposals Move Through House Taxes
The advertising tax (HF4343/SF4787) has been laid over for possible omnibus tax inclusion. It would impose sales tax on advertising services with carveouts for printing, publishing, radio, and television — estimated to generate $92.2 million in FY2027. MnTech and other organizations have expressed opposition, emphasizing global competitiveness concerns.
Separately, HF5055 (Gomez), containing Governor Walz’s proposed social media tax on companies with 100,000+ monthly Minnesota users, received an informational hearing in House Taxes. Revenue would be directed toward AI workforce displacement programs. Feasibility conversations continue, with MnTech weighing in.
Why it matters: Two distinct tech tax proposals are moving through House Taxes. Washington and Maryland have passed similar ad taxes; Maryland’s is undergoing litigation. Both proposals need 68 votes.
Session Daily on ad tax → • MPR News on social media tax →
Government Technology
County IT Modernization Proposals Gain Traction
Senator Wiklund’s (DFL-Bloomington) SF3733 would establish an information technology modernization account, and her HHS omnibus bill includes county technology funding and a $20 million cybersecurity grant program.
Separately, Senator Dibble is proposing a constitutional amendment that would permit the use of bonding dollars for IT infrastructure — a significant shift that would open a new funding mechanism for county technology projects.
Why it matters: County systems are decades overdue for upgrades, delaying services like food assistance and health care. These proposals signal growing recognition that IT is critical public infrastructure — and could create opportunities for MnTech members statewide.
Senate DFL on Wiklund HHS bill → • Session Daily on county IT →

























