Minnesota 2025-2026 Regular Session

Minnesota House Bill HF2783

Introduced
3/24/25  
Refer
3/24/25  

Caption

State government finance bill.

Summary

HF2783 is a broad state government finance and policy bill that establishes a biennial budget for fiscal years 2026 and 2027 and appropriates money to the legislature, constitutional officers, executive agencies, retirement systems, the Minnesota Historical Society, public broadcasting, and several other state entities. It also sets spending limits and base funding levels for future years in a number of agencies and programs. In addition to the appropriations, the bill makes a wide range of policy changes affecting legislative operations, state reporting requirements, aging policy coordination, accounting licensure, lottery retailer standards, horse-racing wagering fees, Medicaid fraud enforcement, business filing fraud, and deceptive business mailings. A major policy feature is the creation of a Healthy Aging Subcabinet and Office of Healthy Aging within Minnesota Management and Budget. That new structure is intended to coordinate state planning on aging, engage the public and Tribal Nations, and produce a Minnesota Healthy Aging Plan by 2028. The bill also expands the attorney general’s subpoena authority for certain investigations, creates a new medical assistance fraud offense with criminal penalties, and changes the theft statute to include fraudulent Medicaid-related billing conduct. It further revises CPA licensing rules by moving Minnesota toward a master’s-degree-or-higher pathway after 2030 while preserving a transitional period, and it broadens CPA mobility rules for out-of-state licensees. The bill also addresses business and consumer protection issues. It creates a process for challenging fraudulent business filings with the Secretary of State, including declarations of wrongful filing, notice and response procedures, final orders, judicial review, and data classification rules. Relatedly, it prohibits deceptive mailings that look like official government notices and makes violations a misdemeanor and an unfair trade practice. The bill also authorizes the Secretary of State to impose a late penalty on certain business renewals and creates a fraud prevention and data security account to support filing integrity and cybersecurity. In terms of state-law impact, HF2783 amends or creates provisions in multiple chapters of Minnesota Statutes and repeals several existing provisions, including the prior medical assistance fraud statute and the CPA substantial equivalency rule. It changes legislative compensation rules by allowing up to six leadership positions in each chamber to receive enhanced pay, requires additional reporting on audit recommendation implementation and executive branch vacancies, and modifies lottery retailer eligibility and cancellation standards. It also raises the advance deposit wagering fee from one percent to two percent and adjusts related breeders fund funding, while limiting the State Lottery operating budget to $45 million in each fiscal year of the biennium. Because there were no committee transcripts or recorded votes provided, the overall sentiment cannot be tied to specific floor or committee debate. Based on the bill’s structure, it appears to be a comprehensive, largely administrative and budget-focused package with several governance and anti-fraud provisions. The most likely points of contention are the expansion of attorney general and enforcement authority, the new criminal penalties for Medicaid-related fraud, the changes to CPA education requirements, the increased wagering fee, and the creation of new state offices and reporting mandates, all of which could raise concerns about cost, regulatory burden, and implementation. At the same time, the bill’s fraud-prevention, aging-policy, and public-service provisions suggest support from lawmakers interested in oversight, consumer protection, and long-term planning.

Impact

HF2783 would significantly affect Minnesota state government operations by appropriating funds across a wide range of agencies and by creating or revising multiple statutory programs and enforcement tools. It establishes new structures such as the Healthy Aging Subcabinet and Office of Healthy Aging, creates a business filing fraud remedy at the Secretary of State, and adds a new medical assistance fraud offense while repealing the prior related statute. It also changes licensing and regulatory statutes for certified public accountants, lottery retailers, advance deposit wagering, and legislative compensation, and it imposes new reporting duties on executive agencies and the legislative auditor. These changes would affect state agencies, regulated businesses, accountants, lottery retailers, Medicaid providers, and older adults and caregivers who may benefit from the new aging policy framework.

Sentiment

No committee testimony or vote history was provided, so there is no direct record of support or opposition to summarize. On its face, the bill reads as a broad state government finance package with a mix of popular oversight and anti-fraud provisions alongside more controversial regulatory and budget changes. The inclusion of new planning bodies, reporting requirements, and fraud enforcement tools suggests a generally managerial and reform-oriented approach, while the absence of recorded debate makes it impossible to identify formal partisan alignment or final legislative sentiment.

Contention

The most likely areas of contention are the bill’s expansion of enforcement authority and criminal penalties, especially the new medical assistance fraud offense and broader subpoena powers for the attorney general. The CPA licensure changes may also draw concern from the accounting profession because they raise education requirements after 2030 while changing mobility rules for out-of-state practitioners. Gaming-related provisions, including the higher advance deposit wagering fee and lottery retailer restrictions, could be disputed by affected industries. Finally, the creation of new offices, subcabinet structures, and reporting mandates may prompt questions about administrative cost, duplication of existing functions, and whether the bill’s many policy changes belong in a single state government finance measure.

Companion Bills

MN SF3045

Similar To Omnibus State and Local Government and Elections policy and appropriations

Previously Filed As

MN HF4591

State government policy and finance bill.

MN HF2438

Taxation bill; financing and operation of state and local government provided.

MN SF3045

Omnibus State and Local Government and Elections policy and appropriations

MN HF1837

State government policy bill.

MN SF4555

Omnibus State and Local Government policy bill

MN HF1141

Housing finance and policy bill.

MN HF2563

Legacy finance bill.

MN HF2445

Housing finance bill.

MN HF2431

Higher education policy and finance bill.

MN HF14

Transportation finance and policy bill.

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