Office of the Revisor of Statutes
HF 2354
1st Engrossment - 94th Legislature (2025 - 2026)
Posted on 03/26/2025 12:22 p.m.
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A bill for an act
relating to consumer protection; adding and modifying provisions governing
Medicaid fraud; providing the attorney general certain subpoena and enforcement
authority; providing criminal penalties; making conforming changes; appropriating
money; amending Minnesota Statutes 2024, sections 8.16, subdivision 1; 256B.12;
628.26; proposing coding for new law in Minnesota Statutes, chapter 609; repealing
Minnesota Statutes 2024, section 609.466.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2024, section 8.16, subdivision 1, is amended to read:
Subdivision 1.
Authority.
new text begin (a) new text end The attorney general, or any deputy, assistant, or special
assistant attorney general whom the attorney general authorizes in writing, has the authority
in any county of the state to subpoena and require the production ofnew text begin : (1)new text end any records ofnew text begin : (i)new text end
telephone companies, cellular phone companies,new text begin andnew text end paging companiesdeleted text begin ,deleted text end new text begin ;new text end new text begin (ii)new text end subscribers of
private computer networksnew text begin ,new text end including Internet service providers or computer bulletin board
systemsdeleted text begin ,deleted text end new text begin ;new text end new text begin (iii)new text end electric companies, gas companies,new text begin andnew text end water utilitiesdeleted text begin ,deleted text end new text begin ; (iv)new text end chemical suppliersdeleted text begin ,deleted text end new text begin ;new text end new text begin
(v)new text end hotels and motelsdeleted text begin ,deleted text end new text begin ;new text end new text begin (vi)new text end pawn shopsdeleted text begin ,deleted text end new text begin ; (vii)new text end airlines, buses, taxis, and other entities engaged
in the business of transporting peopledeleted text begin ,deleted text end new text begin ;new text end andnew text begin (viii)new text end freight companies, self-service storage
facilities, warehousing companies, package delivery companies, and other entities engaged
in the businesses of transport, storage, or deliverydeleted text begin , anddeleted text end new text begin ; (2) wage and employment records;
(3)new text end records of the existence of safe deposit box account numbers and customer savings and
checking account numbers maintained by financial institutions and safe deposit companiesnew text begin ;
(4) insurance records related to claim settlement; and (5) the banking, credit card, and
financial records, including but not limited to a safe deposit, loan and account application
and agreement, signature card, statement, check, transfer, account authorization, safe deposit
access record, and documentation of fraud, that belong to the subject of an investigation
conducted pursuant to the attorney general's authority under section 256B.12, whether the
record is held in the investigation subject's name or in another person's namenew text end .
new text begin (b) new text end Subpoenas may only be issued for records that are relevant to an ongoing legitimate
law enforcement investigation.
Sec. 2.
Minnesota Statutes 2024, section 256B.12, is amended to read:
256B.12 LEGAL REPRESENTATION.
The attorney general or the appropriate county attorney appearing at the direction of the
attorney general shall be the attorney for the state agency, and the county attorney of the
appropriate county shall be the attorney for the local agency in all matters pertaining hereto.
To prosecute under this chapter or sections deleted text begin 609.466 anddeleted text end new text begin 609.467;new text end 609.52, subdivision 2deleted text begin ,deleted text end new text begin ;new text end new text begin
and 609.542,new text end or to recover payments wrongfully made under this chapter, the attorney
general or the appropriate county attorney, acting independently or at the direction of the
attorney general may institute a criminal or civil action.
Sec. 3.
new text begin
[609.467] MEDICAL ASSISTANCE FRAUD.
new text end
new text begin Subdivision 1. new text end
new text begin Medical assistance fraud prohibited. new text end
new text begin
A person who intentionally
presents, submits, tenders, offers, or participates in the preparation of a claim for payment,
claim for reimbursement, cost report, or rate application relating to the payment of medical
assistance funds under chapter 256B knowing or having reason to know that any part of the
claim, report, or application is false is guilty of medical assistance fraud and may be
sentenced as provided in subdivision 2.
new text end
new text begin Subd. 2. new text end
new text begin Penalties. new text end
new text begin
Whoever violates subdivision 1 may be sentenced as follows:
new text end
new text begin
(1) to imprisonment of not more than 20 years, payment of a fine of not more than
$100,000, or both if the part of any claim for payment, claim for reimbursement, cost report,
or rate application submitted, tendered, or offered that is false is more than $35,000;
new text end
new text begin
(2) to imprisonment of not more than ten years, payment of a fine of not more than
$20,000, or both if:
new text end
new text begin
(i) the part of any claim for payment, claim for reimbursement, cost report, or rate
application submitted, tendered, or offered that is false is more than $5,000 but not more
than $35,000; or
new text end
new text begin
(ii) the part of any claim for payment, claim for reimbursement, cost report, or rate
application submitted, tendered, or offered that is false is not more than $5,000 and the
person has been convicted within the preceding five years for an offense under this section,
section 256.98; 268.182; 609.24; 609.245; 609.247; 609.522; 609.53; 609.582, subdivision
1, 2, or 3; 609.625; 609.63; 609.631; or 609.821, or a statute from another state, the United
States, or a foreign jurisdiction, in conformity with any of those sections, and the person
received a felony or gross misdemeanor sentence for the offense, or a sentence that was
stayed under section 609.135 if the offense to which a plea was entered would allow
imposition of a felony or gross misdemeanor sentence; or
new text end
new text begin
(3) to imprisonment of not more than five years, payment of a fine of not more than
$10,000, or both if the part of any claim for payment, claim for reimbursement, cost report,
or rate application submitted, tendered, or offered that is false is not more than $5,000.
new text end
new text begin Subd. 3. new text end
new text begin Aggregation. new text end
new text begin
The total of all claims for payment, claims for reimbursement,
cost reports, and rate applications submitted, tendered, or offered in violation of subdivision
1 within any six-month period may be aggregated and the defendant charged accordingly
in applying the provisions of subdivision 2. When the same person commits two or more
offenses in two or more counties, the accused may be prosecuted for all of the offenses
aggregated under this subdivision in any county in which one of the offenses was committed.
new text end
new text begin Subd. 4. new text end
new text begin Venue. new text end
new text begin
Notwithstanding anything to the contrary in section 627.01, a violation
of this section may be prosecuted in:
new text end
new text begin
(1) the county where any part of the offense occurred; or
new text end
new text begin
(2) the county where the entity who received a claim for payment, claim for
reimbursement, cost report, or rate application is located.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective August 1, 2025, and applies to crimes
committed on or after that date.
new text end
Sec. 4.
Minnesota Statutes 2024, section 628.26, is amended to read:
628.26 LIMITATIONS.
(a) Indictments or complaints for any crime resulting in the death of the victim may be
found or made at any time after the death of the person killed.
(b) Indictments or complaints for a violation of section 609.25 may be found or made
at any time after the commission of the offense.
(c) Indictments or complaints for violation of section 609.282 may be found or made at
any time after the commission of the offense if the victim was under the age of 18 at the
time of the offense.
(d) Indictments or complaints for violation of section 609.282 where the victim was 18
years of age or older at the time of the offense, or 609.42, subdivision 1, clause (1) or (2),
shall be found or made and filed in the proper court within six years after the commission
of the offense.
(e) Indictments or complaints for violation of sections 609.322, 609.342 to 609.345, and
609.3458 may be found or made at any time after the commission of the offense.
(f) Indictments or complaints for violation of sections deleted text begin 609.466deleted text end new text begin 609.467new text end and 609.52,
subdivision 2, paragraph (a), clause (3), item (iii), shall be found or made and filed in the
proper court within six years after the commission of the offense.
(g) Indictments or complaints for violation of section 609.2335, 609.52, subdivision 2,
paragraph (a), clause (3), items (i) and (ii), (4), (15), or (16), 609.631, or 609.821, where
the value of the property or services stolen is more than $35,000, or for violation of section
609.527 where the offense involves eight or more direct victims or the total combined loss
to the direct and indirect victims is more than $35,000, shall be found or made and filed in
the proper court within five years after the commission of the offense.
(h) Except for violations relating to false material statements, representations or
omissions, indictments or complaints for violations of section 609.671 shall be found or
made and filed in the proper court within five years after the commission of the offense.
(i) Indictments or complaints for violation of sections 609.561 to 609.563, shall be found
or made and filed in the proper court within five years after the commission of the offense.
(j) Indictments or complaints for violation of section 609.746 shall be found or made
and filed in the proper court within the later of three years after the commission of the
offense or three years after the offense was reported to law enforcement authorities.
(k) In all other cases, indictments or complaints shall be found or made and filed in the
proper court within three years after the commission of the offense.
(l) The limitations periods contained in this section shall exclude any period of time
during which the defendant was not an inhabitant of or usually resident within this state.
(m) The limitations periods contained in this section for an offense shall not include any
period during which the alleged offender participated under a written agreement in a pretrial
diversion program relating to that offense.
(n) The limitations periods contained in this section shall not include any period of time
during which physical evidence relating to the offense was undergoing DNA analysis, as
defined in section 299C.155, unless the defendant demonstrates that the prosecuting or law
enforcement agency purposefully delayed the DNA analysis process in order to gain an
unfair advantage.
Sec. 5. new text begin APPROPRIATION.
new text end
new text begin
$390,750 in fiscal year 2026 and $390,750 in fiscal year 2027 are appropriated from the
general fund to the attorney general to combat medical assistance fraud under Minnesota
Statutes, section 609.467. The base for the appropriation under this section is $390,750 in
fiscal year 2028 and $390,750 in fiscal year 2029.
new text end
Sec. 6. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2024, section 609.466,
new text end
new text begin
is repealed.
new text end
APPENDIX
Repealed Minnesota Statutes: H2354-1
609.466 MEDICAL ASSISTANCE FRAUD.
Any person who, with the intent to defraud, presents a claim for reimbursement, a cost report or a rate application, relating to the payment of medical assistance funds pursuant to chapter 256B, to the state agency, which is false in whole or in part, is guilty of an attempt to commit theft of public funds and may be sentenced accordingly.