2025 LEGISLATIVE REVIEW
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WHAT YOU NEED TO KNOW
Despite the workforce need, the bill unfortunately did not advance. A similar fate ensued for HF3089/SF3164, which would have allocated funds for the expansion of the University of Minnesota Rochester’s health sciences campus and programming to address the healthcare workforce needs in the state. During the legislature’s special session, SF17 was passed, allocating $375k annually for the Bridges to Healthcare program. Despite it not being the full requested amount, this funding plays a key role in addressing workforce shortages while providing career education, job skills training for low- income parents, non-native English speakers, and other individuals seeking careers in high demand healthcare fields. Additionally, the P-TECH program, a key tool in preparing students for a successful career with academic, technical, and professional skills saw the program process clarified and funds allocated during the special session. HOUSING In the housing sector, HF457/SF768 the Catalyzing Underutilized Building Tax Credit (CUB), was backed by the Chamber to strengthen Minnesota’s economy by incentivizing reinvestment in underutilized properties for housing. Benefits of this bill include stronger commercial districts, stabilized property value and tax base, and job creation and economic growth. However, CUB failed to advance this session, leaving the potential for fewer jobs, higher costs for businesses, and weakened economic vitality. GENERAL BUSINESS A successfully defeated proposal was HF974/SF2045, the Internet Tax Bill, which if enacted, would have hindered broadband expansion and affordability for Minnesota businesses and consumers. Specifically, the bill would have required broadband providers to negotiate new franchise agreements leading to increased costs and slowed broadband deployment, a policy straying from the Chamber’s goals of growth and innovation. CONTINUED ADVOCACY AND ENGAGEMENT Throughout the 2025 legislative session, the Chamber remained focused on fostering relationships between Chamber members, our local delegation, and legislative leadership. We are grateful for their openness to dialogue and discussion on the impacts of policy on the business community. We were also proud to bring back the Rochester Area Chamber Day at the Capitol which provided businesses an opportunity to engage directly with legislators.
INFRASTRUCTURE/BONDING Although 2025 was a budget year, there remained hope that a bonding bill would be passed, especially following the lack of one in the 2024 session. The bonding priorities of the City of Rochester and Olmsted County were once again included in the Chamber’s legislative agenda. Unfortunately, key local projects such as the Highway 14 interchanges CSAH 3 and CSAH 5, sewer infrastructure investments to support housing development, the integrated resource recovery facility, and others went unfunded again due to the lack of a bonding bill. The Chamber will continue to work with our local legislators to champion these beneficial projects for our community next session. MANDATES Over the past biennium, Chamber members have consistently voiced concerns about the Paid Family and Medical Leave (PFML) program, particularly the need for meaningful modifications prior to its implementation on January 1, 2026. Numerous bills were introduced in the 2025 session aimed at reforming PFML, including: • HF11/SF2529, which proposed a one-year delay in implementation • HF1976/SF2466, a GOP-led proposal to modify leave duration, narrow the definition of family member, and scale benefits based on employer size • HF2962/SF3141, a bipartisan bill that would have exempted businesses with fewer than 15 employees, adjusted the definition of family member, expanded the definition of seasonal employee, and revised the program's total length. Despite broad business community interest, none of these proposals advanced due to political dynamics at the Capitol. Nevertheless, the Chamber was pleased to engage in productive conversations with Representative Dave Pinto, Co-Chair of the House Workforce, Labor, and Economic Development Finance and Policy Committee. These discussions provided businesses a platform to voice concerns and offer constructive feedback on reducing the program’s negative impacts. We were also pleased to partner with the Rochester Area SHRM Chapter in our PFML advocacy efforts, expanding our coalition to over 100 businesses. WORKFORCE Following licensure compact expansion during the 2024 session, HF1925/SF2608, the Nurse Licensure Compact, was reintroduced this session as a potential tool to reduce barriers to employment and address workforce gaps.
12 | ROCHESTER AREA CHAMBER OF COMMERCE ADVANTAGE MAGAZINE — AUGUST 2025
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