Survivors and providers urge funding for Safe Harbor; bill would redirect narrow tax exemptions

Representative Keeler introduced House File 4738 to provide sustained funding for Safe Harbor emergency shelter, navigation and housing for victims of sex trafficking by repealing a narrow sales-tax exemption that applies largely to premium stadium suites and related amenities.

Multiple service providers and survivors testified. James Lewis, chief program officer at The Link, said Minnesota has fewer than 200 emergency beds and housing units specifically for trafficking victims across the state and that his agency turns away "at least 16 youth" every month, roughly 192 annually. Chloe Ross, a program alum and youth leader, described entering care as a teen and said the program "provided me with stability that I needed at the time to be able to go out into the world." Advocates argued that Safe Harbor funding is both lifesaving and cost-effective; one testifier said prior research estimated about $34 in social benefit for every $1 invested in trafficking intervention and prevention.

Supporters proposed closing a narrow exemption mainly benefitting purchasers of high-end suites at sporting events; witnesses and some members discussed how much of the projected $8'.8 million annual funding would derive from suites versus collegiate seating or amenities. The University of Minnesota representative said ticket-linked distributions go to scholarships and offered to provide a further breakdown.

Opponents and some committee members questioned whether the tax committee was the appropriate vehicle and whether the proposed repeal would affect scholarships or other designated funds; the author suggested drafting adjustments to preserve scholarships while capturing revenue from high-end suite exemptions. The bill was moved and laid over for possible inclusion in the 2026 tax omnibus.