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HF 3850

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/02/2026 02:40 p.m.

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to fraud prevention; requiring providers, vendors, and individuals seeking
to receive public money for providing services to submit proof of operation and
finances for the most recent three years; proposing coding for new law in Minnesota
Statutes, chapters 142A; 245.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [142A.125] ELIGIBILITY TO RECEIVE PUBLIC MONEY; FINANCIAL
SCREENING.
new text end

new text begin (a) Any provider, vendor, or individual seeking to enroll, become licensed, receive grant
money, or register in any program administered by the commissioner must provide:
new text end

new text begin (1) proof that the provider, vendor, or individual has performed services during the most
recent three-year period that are substantially similar to those for which the provider, vendor,
or individual is seeking to receive public money;
new text end

new text begin (2) financial records for the most recent three-year period; and
new text end

new text begin (3) for a provider, vendor, or individual that is a business or nonprofit organization,
evidence of registration and good standing with the secretary of state for the most recent
three-year period.
new text end

new text begin (b) For purposes of providing financial records pursuant to this section:
new text end

new text begin (1) a nonprofit organization must provide the Form 990 or Form 990-EZ filed with the
Internal Revenue Service in the three most recent years; and
new text end

new text begin (2) any other provider, vendor, or individual must provide audit reports of its financial
statements from the three most recent years performed by an independent third party in
accordance with generally accepted accounting principles.
new text end

Sec. 2.

new text begin [245.0953] ELIGIBILITY TO RECEIVE PUBLIC MONEY; FINANCIAL
SCREENING.
new text end

new text begin (a) Any provider, vendor, or individual seeking to enroll, become licensed, receive grant
money, or register in any program administered by the commissioner must provide:
new text end

new text begin (1) proof that the provider, vendor, or individual has performed services during the most
recent three-year period that are substantially similar to those for which the provider, vendor,
or individual is seeking to receive public money;
new text end

new text begin (2) financial records for the most recent three-year period; and
new text end

new text begin (3) for a provider, vendor, or individual that is a business or nonprofit organization,
evidence of registration and good standing with the secretary of state for the most recent
three-year period.
new text end

new text begin (b) For purposes of providing financial records pursuant to this section:
new text end

new text begin (1) a nonprofit organization must provide the Form 990 or Form 990-EZ filed with the
Internal Revenue Service in the three most recent years; and
new text end

new text begin (2) any other provider, vendor, or individual must provide audit reports of its financial
statements from the three most recent years performed by an independent third party in
accordance with generally accepted accounting principles.
new text end