State government, elections conferees delve into finance, fraud and absentee voting

No votes were taken Friday on the omnibus state government and elections bill. But plenty of information was shared before any votes are cast.

Like most other conference committees, the first gathering was a walkthrough of differences and taking of some public testimony. No member comments were shared, nor was a subsequent get together announced.

Rep. Ginny Klevorn (DFL-Plymouth) and Sen. Tou Xiong (DFL-Maplewood) sponsor the respective versions of HF2783/SF3045*.

State government finance

Total spending in the House and Senate versions is about $1.5 billion, with the Senate calling for $1.32 million more.

[MORE: View the change item; detailed spreadsheets]

Among the differences is the House would provide $1.92 million more for the Office of the State Auditor, an operating adjustment for the Office of the Attorney General that is $1.02 million higher, and the House would cut Minnesota IT Services by $1.2 million, but the Senate provides for a $564,000 operating adjustment. The House also calls for a $1.02 reduction to the Department of Administration and the Senate would provide an extra $911,000.

A couple House-only funding provisions are Minnesota Management and Budget would get $2.35 million for a new Healthy Aging Subcabinet and $782,000 would go to help expand Medicaid Fraud Division staffing in the attorney general’s office by nine persons.

Additionally, the House, but not the Senate, calls for spending $579,000 for a special review unit within the Office of the Legislative Auditor. The same amount would be for an annual report showing if identified recommendations by the office during the prior five years in a financial audit, program evaluation, or special review have been implemented.

State government policy

Both bills would establish the giant beaver as the state fossil, require a state employee to report evidence of violation of laws governing grants, modify the experience and education requirements for certification as public accountant, and establish a process for challenging and removing fraudulent business filings filed with the Office of the Secretary of State.

Among the House-only policy is:

• permitting the attorney general to issue subpoenas for certain wage, insurance, and financial information when there is an ongoing law enforcement investigation;
• letting a government entity disclose any data to another government entity or law enforcement if it relates to public program fraud;
• withholding payments to a program participant if there is a credible allegation of fraud under investigation and the program participant is a subject of the investigation;
• replacing the existing Medical Assistance fraud crime with a new offense that could result in a 20-year prison sentence;
• expanding the scope of existing whistleblower protections for state employees;
• establishing a retained savings program to encourage state agencies to innovate and identify efficiencies and cost savings; and
• establishing Ursa Minor as the state constellation.

[MORE: View policy comparisons]

Senate-only provisions include:

• establishing a state building renewable energy, storage and electric vehicle account so state agencies can, in part, purchase state fleet electric vehicles, and provide renewable energy improvement and renewable energy storage projects at state buildings;
• encouraging agencies to spend half of their advertising expenditures with local news organizations;
• establishing a Task Force on Best Legislative Practices for Appropriating Money for Grants;
• requiring a state contract with the federal government to allow the state to withhold payments to a recipient if there is reasonable suspicion that the recipient has secured the payment through an intentional or deception act; and
• increasing various business filing fees imposed by the secretary of state’s office.

[MORE: Compromise bill funding state government, elections passes off House Floor]

Elections finance

Elections spending in each version total $3.86 million in biennial spending, with a majority — $1.81 million in fiscal year 2026 and $1.84 million in fiscal year 2027 — going to the Campaign Finance and Public Disclosure Board.

Both chambers would provide a $200,000 appropriation in fiscal year 2026 to the secretary of state’s office for the Help America Vote Act account. Minnesota received $1 million in federal funds in 2024, and this funding is the required 20% state match.

Senate-only provisions would direct the secretary of state to transfer $3 million from the General Fund in each fiscal year 2026 through 2031 to the voting operations, technology and election resources account, and $25,000 in those same years to the Voting Rights Act cost sharing account.

[MORE: Committee approves $3.9 million election finance bill]

Absentee voting

In both bill versions, online absentee ballot applicants would be required to provide both a Minnesota driver’s license or state identification card number and the last four digits of their Social Security number to verify identity.

Mailed and online absentee ballot applications would need to be received at least seven days before an election in House language and five days in Senate language. Once absentee ballots are received, both chambers’ language would require the absentee ballot boards to verify the number of envelopes and ballots at various stages of the counting process.

To ensure more election security, the bill would require counties to develop a chain of custody plan for handling election-related materials, including absentee ballots, which would need to account for both the physical and cybersecurity of materials.

[MORE: Omnibus elections policy bill clears committee, heads to House Floor]

Other common provisions would:

• allow additional proof of residence for students during the 18 days before an election and on Election Day;
• remove a box to join a permanent absentee voter list from the voter registration application;
• allow a petition to correct errors, omissions or wrongful acts on an official ballot if all candidates agree; and
• allow a public water or sewer district to install water and sewer lines and all other ancillary infrastructure within a public road right-of-way.

House-only provisions would prohibit an organization that receives state funding from making political contributions or expending money for a political purpose and it would prohibit polling places from being in, or in any adjoining room to, a location where cannabis products are served or sold.

Senate-only provisions include directing the secretary of state’s office to conduct voter outreach efforts, focusing on counties with the lowest voter turnout in the 2022 and 2024 general elections; and making it a felony to bribe someone to register to vote or sign a petition that is materially related to an election beginning at the start of absentee voting until Election Day.

• Session Daily writer Brian Basham contributed to this story