State and local government, elections funding and policy changes

Ensuring the government functions for the people is a key component of the omnibus state and local government and elections law.

The $1.35 billion spending package for the 2026-27 biennium is a $46.5 million increase over forecast base and contains a plethora of policy provisions.

Rep. Ginny Klevorn (DFL-Plymouth) and Sen. Tou Xiong (DFL-Maplewood) sponsor the law that takes effect July 1, 2025, unless otherwise noted.

HF2783/SF3045*/CH39

State government funding

Most state agencies and departments will get an operating increase, in many cases to maintain current levels of service.

Among the increases are legislative operating adjustments of $23.2 million, including $13.92 million for the House, $4.62 million for the Senate, and almost $3.96 million for the Legislative Coordinating Commission.

Also included is $579,000 for the Office of the Legislative Auditor to produce 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.

Almost $3.34 million in new funding is to the Office of the State Auditor: $2.04 million operating adjustment, $560,000 to add two auditors, $456,000 for data warehouse purposes and $283,000 for two trainers to support public finance staff.

For the Administration Department, a $1.95 million increase is for in lieu of rent that covers maintenance and operations for entities that do not pay for their leased spaces and a $911,000 operating adjustment. However, dissolving the Infrastructure Advisory Council will save $946,000 and reducing enterprise translation office transfers will save another $300,000.

The $1.04 million increase for election purposes includes $760,000 for the Campaign Finance and Public Disclosure Board for litigation expenses in the Minnesota Chamber of Commerce vs. Choi case and $200,000 for a Help America Vote Act federal funds match.

Other non-operating adjustment increases include: $717,000 to Minnesota Management and Budget for its Office of Strategic Planning, $100,000 to the Latino Affairs Council, $100,000 to the LGBTQIA2S+ Minnesotans Council, and $55,000 in fiscal year 2026 so the Department of Children, Youth, and Families can integrate application information and a referral process for the transit assistance program into the MNbenefits web portal.

Effective May 24, 2025, the law permits agencies to carry forward unexpended and unencumbered non-grant operating balances from fiscal year 2025 into fiscal year 2026.

The law better specifies the use of a 2023 allocation and eliminates the Capitol Area community vitality account in the special revenue fund and instead appropriates the amount directly from the General Fund. It also appropriates $3 million from the account “for the Ramsey County sheriff to implement a coordinated public safety and livability plan in the Capitol Area.” (Art. 1, Secs. 2-38, 44-46; Art. 2, Sec. 66)

Elections funding

Elections spending in the bill totals $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.

Effective May 24, 2025, the secretary of state’s office must transfer $3 million in fiscal years 2026 and 2027 from the General Fund to the voting operations, technology, and election resources account; $200,000 in fiscal year 2026 from the General Fund to the Help America Vote Act; and $25,000 in each fiscal year from the General Fund to the Voting Rights Act cost sharing account.

Minnesota Management and Budget is now allowed to transfer $162,000 in the fiscal year of a gubernatorial election from the General Fund Contingent Account to establish a transition office for the governor-elect and to pay certain necessary and prudent expenses. The law adds transfers in fiscal year 2027 to provide the same for the attorney general-elect ($75,000), secretary of state-elect ($50,000) and state auditor-elect ($50,000). (Art. 1, Sec. 46; Art. 7, Secs. 1-3)

Fighting fraud

By Feb. 1 each year, and as resources permit, the Office of the Legislative Auditor must report to the Legislature whether an entity subject to an audit “has implemented any recommendations identified by the legislative auditor during the prior five years in a financial audit, program evaluation, or special review.” And by July 1, a report is due listing the House and Senate committees to which the legislative auditor did or did not present their report in a public hearing.

An agency will be permitted to withhold payments to a program participant for up to 60 days if there is a preponderance of evidence the participant has committed fraud to obtain payments.

State agency staff assigned grant management responsibilities must complete initial grants management training before assuming grants management job duties and must complete continuing grants management training on an annual basis.

Grant agreements will require the grantee to clearly post on their website the names and contact information for organization leadership and the person who directly manages and oversees the grant for the grantee;

The commissioner or chief executive officer of each department, board, commission, office, or other agency, must ensure that employee and nonemployee concerns about the misuse of public money, other public resources, or government data is promptly directed to an obligated officer — including the chief executive officer, deputy or assistant chief executive officer, board chair, and division or department head — or the legislative auditor’s office.

The scope of existing whistleblower protections for state employees is expanded.

The list of officers who must notify the legislative auditor’s office when they obtain information indicating that public money or other public resources may have been used for an unlawful purpose is expanded to include deputy and assistant chief executive officers, chief administration officers, chief investigative officers, heads of divisions, bureaus, departments, institutes, or other organizational units, and board chairs, where applicable.

And the legislative auditor’s office is to establish a Special Reviews Division to fulfill relevant statutory duties, including to investigate allegations that an individual or organization subject to an audit has not complied with a legal requirement. The office may periodically conduct a follow-up special review to assess what changes have occurred.

Except where a provision of law to the contrary specifically prohibiting data sharing, any government entity can disclose data relating to suspected or confirmed fraud in public programs to any other government entity, federal agency, or law enforcement agency if the access promotes the protection of public resources, promotes the integrity of public programs, or aids the law enforcement process. (Art. 2, Secs. 8-11, 16, 22-23, 39-41, 57)

State government policy

Other state government policy in the law includes provisions that will:

• establish Castoroides ohioensis, commonly known as the giant beaver, or capa in Dakota and amik in Ojibwe, as the state fossil;

• designate Ursa Minor as the state constellation;

• effective June 30, 2025, establish a retained savings program to encourage state agencies to innovate and identify efficiencies and cost savings. This expires June 30, 2030;

• require Minnesota Management and Budget to submit an annual report to the Office of the Legislative Auditor detailing the implementation status of all office recommendations issued the previous five years;

• not permit expenditure estimates in the state budget forecasts related to the amount of state bonding to include assumptions of future authorizations of state general obligation bonds;

• prohibit state entities from agreeing to certain contract terms, including automatically renewing state funds in subsequent fiscal years;

• let a retired state employee’s spouse purchase coverage for themselves under the State Employee Group Insurance Program if the retiree loses eligibility by enrolling in Medical Assistance, and has a disability that satisfies the categorical eligibility requirements of the federal Supplemental Security Income program;

• expand from 1% to 2% the regulatory fee imposed of all amounts wagered by Minnesota residents with an authorized advance deposit wagering provider;

• add the Office of Ombudsman for Long-Term Care to the list of people for whom state-provided motor vehicles are not required to be marked;

• change the Office of Administrative Hearings to the Court of Administrative Hearings;

• create a process for an agency to request a remand of a decision of an administrative law judge that may be a finding of fact, conclusion of law or recommendation;

• require state agencies to post an organizational chart online that includes the names and contact information for top officials;

• beginning Feb. 1, 2026 and annually for five subsequent years, require all state agencies to publish on their website for the previous fiscal year the total advertising spending by the agency and the total percent of advertising spent with local news organizations. This is effective Aug. 1, 2025;

• extend the due date and funding for a University of Minnesota geophysical study and hazard assessment of the St. Anthony Falls area and St. Anthony Falls cutoff wall in Minneapolis to June 30, 2026. This took effect May 24, 2025;

• define "responsible lottery official” for purposes of retailer eligibility criteria and contract conditions;

• require Minnesota Management and Budget to report to the Legislature three times in the 2026-27 biennium the number of posted executive branch job openings that have gone unfilled for at least six months;

• allow the Department of Administration to accept private funds for replacement of one of Minnesota’s two statues in the U.S. Capitol;

• repeal the Legislative Commission on Minnesota Sports Facilities, Legislative Commission on Housing Affordability, Legislative COVID-19 Response Commission and Driver and Vehicle Systems Oversight Committee;

• make largely technical changes to statutes regarding state personnel management;

• modify education and reciprocity requirements for certified public accountants, including provisions effective May 24, 2025, and Jan. 1, 2026;

• modify Board of Cosmetology requirements for cosmetologists and hair technicians relating to textured hair;

• effective May 24, 2025, allow the Office of the Secretary of State to assess an up to $40 late penalty when a person files for renewal or reinstatement of business entity that was administratively dissolved;

• effective May 24, 2025, establish a process to challenge and remove fraudulent business filings filed with the Office of the secretary of State; and

• effective May 24, 2025, require solicitations, as defined, to include certain information, be formatted in a specific way, and include a disclaimer. (Art. 1, Sec. 41; Art. 2, Secs. 1-3, 5, 17-18, 21, 24-26, 29-30, 45, 52, 58-62, 66, 69; Art. 3, Secs. 1-30; Art. 4, Secs. 1-4, 13-16; Art. 5, Secs. 1-2, 5-11, 13)

Local government policy

The law amends the state’s open meeting laws by removing restrictions so members of a public body can participate remotely in a meeting from a location that is not open and accessible to the public without limitation. Before the change a member could participate from a nonpublic location up to three times a year and only if they were serving in the military or had personal or family medical reasons for not being in a public place.

The law will also:

• create a Ramsey County Economic Development Authority upon compliance with the local approval requirements. The Ramsey County Housing and Development Authority's powers will expand to include the economic authority's powers;

• permit St. Louis County to have more than two deputy administrators;

• give statutory cities the option to establish a public utilities commission with three, five, or seven members with staggered terms;

• allow statutory city public utility commission membership to be increased or decreased by ordinance, but will be subject to a reverse referendum;

• require cities and towns to provide landlords with a link to the attorney general’s landlord-tenant guide upon issuance or renewal of a rental license, or registration or certificate of occupancy;

• let certain individuals who volunteer to provide emergency services to purchase tires for their personal vehicles under the contract that the city, town, or fire department uses to purchase vehicle tires;

• double the maximum reimbursement amounts — to $3,000 for single- and two-family residential property and minimum damage acquisitions and $10,000 for other types of property — for an appraisal of property conducted for a property owner whose property is to be acquired through eminent domain;

• permit public water district, sewer district, and combination water and sewer districts to install water and sewer lines and ancillary infrastructure within public road right-of-way;

• permit public notice postings on a political subdivision’s website and the Minnesota Newspaper Association’s statewide public notice website when no qualified newspaper is available for publication;

• effective Aug. 1, 2025, increase the annual revenue threshold that a town, standard plan statutory city, or statutory city, plan A, with combined the offices of clerk and treasurer must have an annual financial audit;

• decrease the Swift County Joint Powers Hospital District membership to six voting members. This is effective upon compliance with the local approval requirements. (Art. 6, Secs. 1-18)

Elections policy

The law establishes deadlines for the submission of absentee ballot applications.

Applications not submitted in person must be received at least seven days before the election. If an application is received after 5 p.m. seven days prior to the election, the official in charge of the absentee ballot board must attempt to contact the applicant by telephone or email to notify the applicant of other opportunities to vote in the election. Attempts must be documented.

Within seven days of an election, the secretary of state’s office must replace the online absentee ballot application with information detailing the available options to vote before and on the upcoming election day.

A person using the online application to request an absentee ballot applicant will, effective Jan. 1, 2026, need to provide both a Minnesota driver’s license or state ID card number and the last four digits of their Social Security Number, unless the applicant affirmatively certifies that they do not possess one of those numbers.

The delivery of an absentee ballot application by someone other than the voter must be returned within seven days, rather than the previous 10, after the voter dates the application, and no later than seven days prior to the election.

The law also makes changes about encouraging someone to request an absentee ballot.

Effective Jan. 1, 2026, a person or entity mailing an absentee ballot application or sample ballot must include the following statement in a way that is clearly visible when the mailing is opened: "This mailing is not an official election communication from a unit of government. This [absentee ballot application or sample ballot] has not been included at the request of a government official." If a sample ballot is enclosed, the statement must also include the following: "This is a sample ballot, not an official ballot. You cannot cast the enclosed sample ballot."

Further, the sender of the sample ballot or absentee ballot application must include their name and street address in the return address position on the mailing envelope. If an absentee ballot application is included, the space on the application to indicate the applicant's preference to join the permanent absentee voter list must be left blank and may only be marked by the applicant.

The law also amends the handling of absentee ballot signature envelopes. It requires counting, cross-checking, and accounting for empty signature and ballot envelopes at various steps in the process. Discrepancies in the count must be noted in the ballot board incident log and reported to the official responsible for the ballot board. All envelopes must be retained for the duration of the contest period.

The law requires the early voting official to take certain actions to remove, secure, and document ballots each day during the early voting period. This takes effective upon the revisor of statute’s receipt of the early voting certification and applies to elections held on or after the 85th day after the revisor receives the certification.

Effective May 24, 2025, a county auditor must develop a county elections chain of custody plan to be used in all state, county, municipal, school district, and special district elections held in that county. The plan must be filed with the secretary of state’s office by June 1, 2026. (Art. 8, Secs. 18, 25, 33, 40, 52)

Other elections policy includes:

• effective Sept. 1, 2025, if additional early absentee polling places are authorized, the county auditor and secretary of state’s office must post notice on their respective websites, including a polling place’s address and the dates and times it will be open for voting;

• adding to the election judge oath that the judge will not share information about voting that the judge knows to be materially false and the judge will not intentionally hinder, interfere with, or prevent a person from voting, registering to vote, or aiding another person in voting. This is effective Jan. 1, 2026;

• effective Nov. 15, 2025, for elections beginning Jan. 1, 2026, jurisdictions that conduct elections by mail must send ballots no later than 28 days rather than 14 before any election;

• amending sections of law to specifically refer to or allow for updating voter registrations;

• allowing additional proof of residence for students during the 18 days before an election and on Election Day;

• effective Jan. 1, 2026, and for elections held after Feb. 6, 2026, requiring an updated residential student housing list to be certified to the county auditor no later than 35 days before each election, instead of 20 days;

• effective Jan. 1, 2026, the secretary of state’s office and county auditors must provide a public information list within five business days of receiving a complete request. Current law is 10 days;

• effective Jan. 1, 2026, an affidavit of candidacy must include a phonetic spelling or pronunciation of the candidate’s name or a certification that the candidate will use the applicable technology’s default pronunciation;

• effective May 24, 2025, candidates for judicial office, county attorney, and county sheriff are not required to include their address on the affidavit of candidacy;

• polling places cannot be at, or in an adjoining room to, a location where cannabis products are served or sold;

• a notice must be posted in a conspicuous place if a polling place is changed. The notice must include the location of the new polling place; and

• each precinct using electronic rosters must ?— no longer shall — have a paper backup system to use if election judges cannot use the electronic roster (Art. 8, Secs. 1-23, 32, 41, 49-50, 53, 60-64, 67-71)

Campaign finance policy includes:

• effective May 24, 2025, the Campaign Finance and Public Disclosure Board must publish on its website by Jan. 15, 2026, a lobbying handbook “written in plain language”;

• effective June 1, 2025, amending the definitions of expert witness, lobbyist, local official, noncampaign disbursement, official action of a political subdivision for campaign finance purposes;

• effective Jan. 1, 2026, a candidate or their principal campaign committee must not solicit or accept any contributions or make any expenditures for inaugural event expenses or transition expenses except through the candidate’s principal campaign committee or as provided through the statutes providing state resources for transition funds; and

• also effective Jan. 1, 2026, a candidate for constitutional or legislative office must report to the board the next business day when they make a contribution or loan to their own campaign committee that exceeds the contribution limit. (Art. 7, Secs. 4-7, 11, 13)

SF3045* / HF2783 / CH39