A whole host of new laws—many of which are tied to the $66 billion state budget lawmakers approved earlier this month—went into effect on Tuesday.
One of those provides $100 million to school districts to fund an unemployment insurance program for their part-time staff who don’t work in the summer.
That program is being funded courtesy of a compromise bill that Democrats and Republicans in the Minnesota legislature agreed on in the final hours of the legislative session.
Republican leaders were able to convince their DFL colleagues to fund that item with $77 million in appropriations that were previously dedicated to the Northern Lights Express project, which is a planned commuter train from the Twin Cities to Duluth. The legislation reflecting that expenditure shift went into effect on Tuesday, July 1. The enactment effectively defunds the Northern Lights Express, which Republicans celebrated on the House floor when the bill was passed in May.
“For years, Democrats have spent hundreds of millions of dollars on wasteful rail projects that Minnesotans barely use and can’t afford,” Rep. Jon Koznick, R-Lakeville, co-chair of the House Transportation Committee, said during the bill’s passage on May 19.
“With the House and Senate voting to shift a significant amount of the state’s share of the project’s funding, the Northern Lights Express train is effectively dead, and taxpayers are better off because of it,” he added.
Despite the additional money for summer unemployment insurance, state funding is still set to expire in 2028. At that point, districts will be on their own to come up with money for the program, or the legislature will have to pass additional measures to fund the program.
Other new laws that went into effect July 1, which is the enactment date for most budgetary bills, and some policy bills, include:
Compensating ‘kidfluencers’
New compensation-related regulations for online “kidfluencer” content take effect today. The House and Senate agreed to legislation that now requires a process for parents or other adults who create online content that features children to compensate those children for their work.
The law will also require parents to keep records about when their children appear online and how much they earn from the content. It would also require that a portion of the pay be kept in a trust fund for the child.
The law will apply when at least 30% of a content creator’s compensated video content produced within a 30-day period included the likeness, name, or photograph of any minor.
The bill was passed during the 2024 legislative session, with a July 1, 2025 enactment date.
Boating permits now required
Starting Tuesday, July 1, boaters age 21 and under must have an operator’s permit to drive a boat or personal watercraft in Minnesota. The new law, authored by Rep. Rick Hansen, DFL-South St. Paul, and Sen. Foung Hawj, DFL-St. Paul, includes language that will gradually apply to older age groups by 2028.
The Department of Natural Resources will “issue a watercraft operator’s permit to a person 12 years of age or older who successfully completes a water safety course and written test,” the new law states.
An 11-year-old can earn the permit, but it will not be valid until the person is 12.
Under the new law, which was passed in 2023, a motorboat rental business will be prohibited from renting or leasing a motorboat unless the person is at least 18 and has a valid watercraft operator’s permit or is exempt from the requirements.
School districts allowed more flexibility to start school later in the fall
A new law allows school districts across Minnesota to begin their academic calendar on or after Sept. 1 in 2026 and 2027 because Labor Day is as late as it can be those years. Supporters and critics of this change broke across party lines when legislators debated the measure in May. Many legislators from Greater Minnesota said allowing school districts to begin their year before Labor Day would negatively impact resorts and participation in the Minnesota State Fair. Urban and suburban legislators argued that providing school districts with the ability to start the school year early addresses individual needs of some districts who value starting the school year earlier and getting out earlier in the spring.
Other new laws
Other new laws taking effect today include:
- Motorcyclists are now allowed to lane split and lane filter
- State agencies will be permitted to withhold payments to a program participant for up to 60 days if there is evidence of fraud
- Expansion of existing whistleblower protections for state employees
- Funding for a new State Patrol headquarters
- Increased penalties for assaulting firefighters
Click here for a rundown of other new laws that took effect on July 1.
Hank Long
Hank Long is a journalism and communications professional whose writing career includes coverage of the Minnesota legislature, city and county governments and the commercial real estate industry. Hank received his undergraduate degree at the University of Minnesota, where he studied journalism, and his law degree at the University of St. Thomas. The Minnesota native lives in the Twin Cities with his wife and four children. His dream is to be around when the Vikings win the Super Bowl.
