State government budget bill set up as vehicle; panel adopts A1 amendment adding racing commission fee change

House File 2,783, the governor's recommended state government budget, was presented to the Minnesota House State Government Finance and Policy Committee on March 27 and laid over for possible inclusion as the committee's vehicle bill. Chair Cleavorn moved adoption of an A1 amendment that committee members adopted by voice vote. The A1 makes technical corrections across the bill and contains a provision that increases the regulatory fee the Racing Commission may charge advanced-deposit wagering platforms from 1 percent to 2 percent to help cover the Commission's regulatory costs.

The bill presented is intended by the author to be the committee's vehicle for state government budget work this year. Chair Cleavorn told the committee the bill will be the vehicle and that a future delete-all is expected. Commissioner Tamara Grunvall of the Department of Administration and Deputy Commissioner Britta Reitan of Minnesota Management and Budget (MMB) appeared to summarize agency requests and to answer technical questions.

Chair Cleavorn described Article 1 as setting appropriations across the agencies the committee oversees and Article 2 as state government policy, including a legislative code of ethics and changes to data practices. Commissioner Grunvall summarized the Administration's requests, including an operating increase to cover rising personnel and utility costs, an in-lieu-of-rent increase for capital-area occupants that do not pay rent, elimination of unassigned fiscal agent funding, and flexibility for internal transfers with legislative notification. Grunvall also described a new state building renewable energy storage and electric vehicle account to leverage federal funds and a technical, budget-neutral correction for the insulin repayment account.

The A1 amendment was presented by Chair Cleavorn as containing a range of technical corrections, noted on the amendment pages as addressing LCC budget recommendations, State Board of Investment technical corrections and, in Section 16, the Racing Commission fee increase. Chair Cleavorn said a Racing Commission letter in the packet (dated March 24, 2025) explained the proposed fee increase, with the letter noting Minnesota's assessment under the Horse Racing Integrity and Safety Authority (HISA) for 2025 is nearly $700,000 and that the commission asked to increase the advanced-deposit-wagering fee from 1% to 2% to offset regulatory costs; the letter also states the proposal would have no general fund impact.

Representative Kosnick asked where the Racing Commission language appeared in the amendment and expressed concern that the fee increase essentially doubles the rate and that it may primarily affect Canterbury Park; Chair Cleavorn and staff noted the letter was posted in the packet dated March 24. The committee voted to adopt the A1 amendment by voice vote and then adopted the motion to lay House File 2,783, as amended, over for possible inclusion as the vehicle bill.

No formal roll-call vote was recorded on the A1 adoption in the transcript; the A1 passed by voice vote. Chair Cleavorn said chairs Nash and she would work with committee members and that no bill can leave Ways and Means without joint consent of the Ways and Means co-chairs, underscoring that laying a bill over as a vehicle does not finalize final appropriations.

The transcript includes detailed policy and appropriation summaries from the Administration that committee members may request for follow-up; staff and the named agency witnesses offered to answer technical questions.

The committee proceeded to other agenda items after laying over HF 2,783 as amended.