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Labor and Industry budget bill laid on table after failed referral; committee adopts technical and program amendments
Summary
Senate File 2373, the Department of Labor and Industry omnibus budget bill, was presented and amended in the Senate Finance Committee. The committee adopted technical amendment A14 and amendment A16 (which reallocates $1,000,000 and adjusts apprenticeship funding). A motion to refer the bill to the tax committee failed on a roll call (5 ayes, 7 n
Senate File 2373, the omnibus budget bill for the Department of Labor and Industry, the Workers’ Compensation Court of Appeals and the Bureau of Mediation Services, was considered April 21 by the Minnesota Senate Finance Committee. Committee members adopted technical and programmatic amendments but declined to refer the bill to the Senate Tax Committee by roll call. The bill was later laid on the table for further consideration.
Sponsor Senator McEwen opened the item with a summary of articles in the bill, which include construction codes and licensing fee alignment, clarifying employer/employee rights on breaks, a misclassification fraud impact report requirement, and a broadband installation safety standards update. "Article 2, section 1 allows the Department of Labor and Industry to apply for a temporary restraining order in district court," Senator McEwen said, summarizing key provisions.
Committee staff and agency witnesses described the bill's fiscal impacts. Megan Bursch, the fiscal analyst supporting the Labor Committee, walked members through a detailed spreadsheet of appropriations and policy impacts. Notable fiscal items she cited included a general fund operating adjustment for the Labor Standards Division, a workers’ compensation fund operating adjustment, a proposed $1,000,000 one-time general fund appropriation for construction industry mental health initiatives in the 2026-27 biennium, and estimated construction code fund revenue increases tied to proposed fee adjustments.
The committee adopted the A14 technical amendment (reallocating an existing $500,000 from labor standards to the construction codes and licensing division as part of an internal shift) on voice vote. The A16 amendment, described by Senator McEwen and fiscal staff, cancels $1,000,000 to the Clean Economy Apprenticeship Program grants and reallocates a portion to the misclassification fraud report and to apprenticeship readiness programming; the amendment was adopted by voice vote.
During discussion Senator Pratt moved that SF 2373 be referred to the Senate Tax Committee, expressing concern that the fiscal note and revenue assumptions for the misclassification study had not been vetted in taxes. Senator Pratt asked for a roll call; the roll call recorded 5 ayes and 7 nays, so the motion did not prevail. The committee then moved to lay the bill on the table; the motion to lay SF 2373 on the table prevailed.
Agency testimony: Nicole Blisenbach, commissioner of the Minnesota Department of Labor and Industry, testified in support and thanked the sponsor for including several department priorities, including construction codes and licensing fee alignment and the break-time clarifications. The commissioner also expressed disappointment that other department priorities — such as a statewide teacher apprenticeship program and enhanced misclassification enforcement funding — were not included in the bill because of fiscal constraints.
Votes at a glance: A14 (technical reallocation) adopted by voice vote. A16 (apprenticeship/cancellation and reallocation) adopted by voice vote. Motion to refer SF 2373 to Taxes failed on roll call, 5 ayes to 7 nays. Motion to lay SF 2373 on the table prevailed.
The committee closed the hearing and announced next meeting logistics; SF 2373 remains on the table for further work.
