HF 2354

5th Engrossment - 94th Legislature (2025 - 2026)

Posted on 05/17/2026 11:51 a.m.

A bill for an act
relating to consumer protection; adding and modifying provisions governing
medical assistance 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; 214.10, subdivision 2a; 245C.15, subdivisions 2, 3, 4; 609.52, subdivision 2;
Minnesota Statutes 2025 Supplement, sections 145A.061, subdivision 3; 256B.12;
609.531, subdivision 1; 609.902, subdivision 4; 628.26; Laws 2026, chapter 88,
article 1, section 181; 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:

ARTICLE 1

MEDICAL ASSISTANCE FRAUD PREVENTION

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 of new text begin : (1) new text end any records of new text begin : (i) new text end
telephone companies, cellular phone companies, new text begin and new text end paging companies deleted text begin , deleted text end new text begin ; new text end new text begin (ii) new text end subscribers of
private computer networks new text begin , new text end including Internet service providers or computer bulletin board
systems deleted 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 and new text end water utilities deleted text begin , deleted text end new text begin ; (iv) new text end chemical suppliers deleted text begin , deleted text end new text begin ; new text end new text begin
(v) new text end hotels and motels deleted text begin , deleted text end new text begin ; new text end new text begin (vi) new text end pawn shops deleted text begin , deleted text end new text begin ; (vii) new text end airlines, buses, taxis, and other entities engaged
in the business of transporting people deleted text begin , deleted text end new text begin ; new text end and new 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 delivery deleted text begin , and deleted text end new text begin ; (2) wage and employment records
relating to an investigation conducted under the attorney general's authority under section
256B.12; (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
companies new text begin ; (4) insurance records related to claim settlement relating to an investigation
conducted under the attorney general's authority under section 256B.12; and (5) 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 name new 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 2025 Supplement, 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 county agency in all matters pertaining
hereto. To prosecute under this chapter or sections deleted text begin 609.466 deleted text end new text begin 609.467 new text end ; 609.52, subdivision
2; and 609.542 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 does any of the
following is guilty of medical assistance fraud and may be sentenced as provided in
subdivision 2:
new text end

new text begin (1) acting with intent to defraud, executes or participates in, or attempts or conspires to
execute or participate in, a scheme or artifice to obtain, by means of any false or fraudulent
pretenses, representations, or promises, or concealment of any material fact, any money or
credits relating to the payment of medical assistance funds under chapter 256B;
new text end

new text begin (2) acting with intent to defraud, presents, submits, tenders, offers, or participates in, or
attempts or conspires to execute or participate in, the preparation of a claim for payment,
claim for reimbursement, cost report, or rate application, knowing or having reason to know
that any part of the claim, report, or application is ineligible for payment or reimbursement;
new text end

new text begin (3) acting with intent to defraud, knowingly provides false information or intentionally
omits material information as part of any enrollment application, provider agreement, or
ownership and management disclosure required by any state or federal law as a medical
assistance provider under chapter 245A or 256B;
new text end

new text begin (4) owns, operates, manages, or exercises control over any entity receiving medical
assistance money, while knowing or having reason to know that the person has been
suspended or prohibited from enrolling as a medical assistance provider by any state agency
or under any state law or is excluded or prohibited from enrolling as a medical assistance
provider by any federal agency or under any federal law;
new text end

new text begin (5) knowingly and intentionally permits another person to own, operate, manage, or
exercise control over any entity receiving medical assistance money, while knowing or
having reason to know the other person is suspended or prohibited from enrolling as a
medical assistance provider by any state agency or under any state law or is excluded or
prohibited from enrolling as a medical assistance provider by any federal agency or under
any federal law;
new text end

new text begin (6) falsely makes or alters any record relating to the delivery of medical assistance
services so that the record purports to have been made by another person or by the maker
or alterer under an assumed or fictitious name, or at another time, or with different provisions,
or by the authority of a person who did not give such authority;
new text end

new text begin (7) acting with intent to defraud, presents, submits, tenders, offers, or participates in, or
attempts or conspires to participate in, the preparation of a claim for reimbursement for
personal care assistance services under section 256B.0659 or community first services and
supports under section 256B.85, knowing or having reason to know that required conditions
for payment under chapter 256B were not met, including applicable service authorization,
service delivery plan, documentation, training, supervision, evaluation, or other program
requirements; or
new text end

new text begin (8) after receiving a lawful request for records by any state agency or law enforcement
agency, intentionally destroys, or attempts or conspires to destroy, medical, health care, and
financial records required to be maintained under chapter 245A or 256B or rules adopted
pursuant to those chapters.
new text end

new text begin Subd. 2. new text end

new text begin Penalties. new text end

new text begin (a) A person who is convicted under subdivision 1 may be sentenced
to imprisonment for not more than ten years or to payment of not more than $20,000, or
both.
new text end

new text begin (b) A person who is convicted under subdivision 1 may be sentenced to imprisonment
for not more than 20 years or to payment of not more than $100,000, or both, if the violation
causes a loss to any victim in an aggregate amount of more than $100,000, but not more
than $1,000,000.
new text end

new text begin (c) A person who is convicted under subdivision 1 may be sentenced to imprisonment
for not more than 30 years or to payment of not more than $1,000,000, or both, if the violation
causes a loss to any victim in an aggregate amount of more than $1,000,000.
new text end

new text begin Subd. 3. new text end

new text begin Failure to keep or maintain medical assistance records. new text end

new text begin A person who
submits a claim for reimbursement, claim for payment, claim for reimbursement cost report,
or rate application and knowingly and intentionally fails to maintain medical, health care,
and financial records as required under chapter 245A or 256B or rules adopted pursuant to
those chapters is guilty of a gross misdemeanor.
new text end

new text begin Subd. 4. new text end

new text begin Continuing offense. new text end

new text begin For purposes of calculating the statute of limitations
identified in section 628.26, any violation of subdivision 1 or 3 is a continuing offense. Any
violation of subdivision 1 or 3 extends to any act committed during the course of the scheme,
conspiracy, or conduct and is within the statute of limitations identified in section 628.26
so long as any part of the continuing scheme, conspiracy, or conduct comprising a violation
occurred within the identified statute of limitations.
new text end

new text begin Subd. 5. 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 that received a claim for payment, claim for
reimbursement, cost report, or rate application is located.
new text end

new text begin Subd. 6. new text end

new text begin Restitution. new text end

new text begin The court may order a person convicted of violating this section
to pay restitution for any costs, expenses, or losses resulting from the crime and for costs,
expenses, or losses resulting from similar conduct that was related to the offense but was
not charged. The court may order restitution for similar conduct that was related to the
offense if the related conduct occurred within the applicable statute of limitations and the
prosecutor provides notice of intent to seek restitution for that conduct at least five business
days before the sentencing hearing. The offender may challenge restitution as provided in
section 611A.045, subdivision 3. A dispute as to whether restitution is for similar conduct
that was related to the offense must be resolved by the court by the preponderance of the
evidence. The burden of demonstrating that the court may order restitution for any cost,
expense, or loss described in this subdivision is on the prosecution.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2026, and applies to crimes
committed on or after that date.
new text end

Sec. 4.

Minnesota Statutes 2024, section 609.52, subdivision 2, is amended to read:

Subd. 2.

Acts constituting theft.

(a) Whoever does any of the following commits theft
and may be sentenced as provided in subdivision 3:

(1) intentionally and without claim of right takes, uses, transfers, conceals or retains
possession of movable property of another without the other's consent and with intent to
deprive the owner permanently of possession of the property; or

(2) with or without having a legal interest in movable property, intentionally and without
consent, takes the property out of the possession of a pledgee or other person having a
superior right of possession, with intent thereby to deprive the pledgee or other person
permanently of the possession of the property; or

(3) obtains for the actor or another the possession, custody, or title to property of or
performance of services by a third person by intentionally deceiving the third person with
a false representation which is known to be false, made with intent to defraud, and which
does defraud the person to whom it is made. "False representation" includes without
limitation:

(i) the issuance of a check, draft, or order for the payment of money, except a forged
check as defined in section 609.631, or the delivery of property knowing that the actor is
not entitled to draw upon the drawee therefor or to order the payment or delivery thereof;
or

(ii) a promise made with intent not to perform. Failure to perform is not evidence of
intent not to perform unless corroborated by other substantial evidence; or

deleted text begin (iii) the preparation or filing of a claim for reimbursement, a rate application, or a cost
report used to establish a rate or claim for payment for medical care provided to a recipient
of medical assistance under chapter deleted text end deleted text begin 256B deleted text end deleted text begin , which intentionally and falsely states the costs
of or actual services provided by a vendor of medical care; or
deleted text end

deleted text begin (iv) deleted text end new text begin (iii) new text end the preparation or filing of a claim for reimbursement for providing treatment
or supplies required to be furnished to an employee under section 176.135 which intentionally
and falsely states the costs of or actual treatment or supplies provided; or

deleted text begin (v) deleted text end new text begin (iv) new text end the preparation or filing of a claim for reimbursement for providing treatment
or supplies required to be furnished to an employee under section 176.135 for treatment or
supplies that the provider knew were medically unnecessary, inappropriate, or excessive;
or

(4) by swindling, whether by artifice, trick, device, or any other means, obtains property
or services from another person; or

(5) intentionally commits any of the acts listed in this subdivision but with intent to
exercise temporary control only and:

(i) the control exercised manifests an indifference to the rights of the owner or the
restoration of the property to the owner; or

(ii) the actor pledges or otherwise attempts to subject the property to an adverse claim;
or

(iii) the actor intends to restore the property only on condition that the owner pay a
reward or buy back or make other compensation; or

(6) finds lost property and, knowing or having reasonable means of ascertaining the true
owner, appropriates it to the finder's own use or to that of another not entitled thereto without
first having made reasonable effort to find the owner and offer and surrender the property
to the owner; or

(7) intentionally obtains property or services, offered upon the deposit of a sum of money
or tokens in a coin or token operated machine or other receptacle, without making the
required deposit or otherwise obtaining the consent of the owner; or

(8) intentionally and without claim of right converts any article representing a trade
secret, knowing it to be such, to the actor's own use or that of another person or makes a
copy of an article representing a trade secret, knowing it to be such, and intentionally and
without claim of right converts the same to the actor's own use or that of another person. It
shall be a complete defense to any prosecution under this clause for the defendant to show
that information comprising the trade secret was rightfully known or available to the
defendant from a source other than the owner of the trade secret; or

(9) leases or rents personal property under a written instrument and who:

(i) with intent to place the property beyond the control of the lessor conceals or aids or
abets the concealment of the property or any part thereof; or

(ii) sells, conveys, or encumbers the property or any part thereof without the written
consent of the lessor, without informing the person to whom the lessee sells, conveys, or
encumbers that the same is subject to such lease or rental contract with intent to deprive the
lessor of possession thereof; or

(iii) does not return the property to the lessor at the end of the lease or rental term, plus
agreed-upon extensions, with intent to wrongfully deprive the lessor of possession of the
property; or

(iv) returns the property to the lessor at the end of the lease or rental term, plus
agreed-upon extensions, but does not pay the lease or rental charges agreed upon in the
written instrument, with intent to wrongfully deprive the lessor of the agreed-upon charges.

For the purposes of items (iii) and (iv), the value of the property must be at least $100.

Evidence that a lessee used a false, fictitious, or not current name, address, or place of
employment in obtaining the property or fails or refuses to return the property or pay the
rental contract charges to lessor within five days after written demand for the return has
been served personally in the manner provided for service of process of a civil action or
sent by certified mail to the last known address of the lessee, whichever shall occur later,
shall be evidence of intent to violate this clause. Service by certified mail shall be deemed
to be complete upon deposit in the United States mail of such demand, postpaid and addressed
to the person at the address for the person set forth in the lease or rental agreement, or, in
the absence of the address, to the person's last known place of residence; or

(10) alters, removes, or obliterates numbers or symbols placed on movable property for
purpose of identification by the owner or person who has legal custody or right to possession
thereof with the intent to prevent identification, if the person who alters, removes, or
obliterates the numbers or symbols is not the owner and does not have the permission of
the owner to make the alteration, removal, or obliteration; or

(11) with the intent to prevent the identification of property involved, so as to deprive
the rightful owner of possession thereof, alters or removes any permanent serial number,
permanent distinguishing number or manufacturer's identification number on personal
property or possesses, sells or buys any personal property knowing or having reason to
know that the permanent serial number, permanent distinguishing number or manufacturer's
identification number has been removed or altered; or

(12) intentionally deprives another of a lawful charge for cable television service by:

(i) making or using or attempting to make or use an unauthorized external connection
outside the individual dwelling unit whether physical, electrical, acoustical, inductive, or
other connection; or by

(ii) attaching any unauthorized device to any cable, wire, microwave, or other component
of a licensed cable communications system as defined in chapter 238. Nothing herein shall
be construed to prohibit the electronic video rerecording of program material transmitted
on the cable communications system by a subscriber for fair use as defined by Public Law
94-553, section 107; or

(13) except as provided in clauses (12) and (14), obtains the services of another with
the intention of receiving those services without making the agreed or reasonably expected
payment of money or other consideration; or

(14) intentionally deprives another of a lawful charge for telecommunications service
by:

(i) making, using, or attempting to make or use an unauthorized connection whether
physical, electrical, by wire, microwave, radio, or other means to a component of a local
telecommunication system as provided in chapter 237; or

(ii) attaching an unauthorized device to a cable, wire, microwave, radio, or other
component of a local telecommunication system as provided in chapter 237.

The existence of an unauthorized connection is prima facie evidence that the occupier
of the premises:

(A) made or was aware of the connection; and

(B) was aware that the connection was unauthorized;

(15) with intent to defraud, diverts corporate property other than in accordance with
general business purposes or for purposes other than those specified in the corporation's
articles of incorporation; or

(16) with intent to defraud, authorizes or causes a corporation to make a distribution in
violation of section 302A.551, or any other state law in conformity with it; or

(17) takes or drives a motor vehicle without the consent of the owner or an authorized
agent of the owner, knowing or having reason to know that the owner or an authorized agent
of the owner did not give consent; or

(18) intentionally, and without claim of right, takes motor fuel from a retailer without
the retailer's consent and with intent to deprive the retailer permanently of possession of
the fuel by driving a motor vehicle from the premises of the retailer without having paid
for the fuel dispensed into the vehicle; or

(19) commits wage theft under subdivision 1, clause (13).

(b) Proof that the driver of a motor vehicle into which motor fuel was dispensed drove
the vehicle from the premises of the retailer without having paid for the fuel permits the
factfinder to infer that the driver acted intentionally and without claim of right, and that the
driver intended to deprive the retailer permanently of possession of the fuel. This paragraph
does not apply if: (1) payment has been made to the retailer within 30 days of the receipt
of notice of nonpayment under section 604.15; or (2) a written notice as described in section
604.15, subdivision 4, disputing the retailer's claim, has been sent. This paragraph does not
apply to the owner of a motor vehicle if the vehicle or the vehicle's license plate has been
reported stolen before the theft of the fuel.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2026, and applies to crimes
committed on or after that date.
new text end

Sec. 5.

Minnesota Statutes 2025 Supplement, section 609.902, subdivision 4, is amended
to read:

Subd. 4.

Criminal act.

"Criminal act" means conduct constituting, or a conspiracy or
attempt to commit, a felony violation of chapter 152, or a felony violation of section 299F.79;
299F.80; 299F.82; 609.185; 609.19; 609.195; 609.20; 609.205; 609.221; 609.222; 609.223;
609.2231; 609.228; 609.235; 609.245; 609.25; 609.27; 609.322; 609.342; 609.343; 609.344;
609.345; 609.42; new text begin 609.467; new text end 609.48; 609.485; 609.495; 609.496; 609.497; 609.498; 609.52,
subdivision 2, if the offense is punishable under subdivision 3, clause (1), if the property is
a firearm, clause (3)(b), or clause (3)(d)(v); section 609.52, subdivision 2, paragraph (a),
clause (1) or (4); 609.527, if the crime is punishable under subdivision 3, clause (4); 609.528,
if the crime is punishable under subdivision 3, clause (4); 609.53; 609.561; 609.562; 609.582,
subdivision 1 or 2; 609.668, subdivision 6, paragraph (a); 609.67; 609.687; 609.713; 609.86;
609.894, subdivision 3 or 4; 609.895; 624.713; 624.7191; or 626A.02, subdivision 1, if the
offense is punishable under section 626A.02, subdivision 4, paragraph (a). "Criminal act"
also includes conduct constituting, or a conspiracy or attempt to commit, a felony violation
of section 609.52, subdivision 2, clause (3), (4), (15), or (16), if the violation involves an
insurance company as defined in section 60A.02, subdivision 4, a nonprofit health service
plan corporation regulated under chapter 62C, a health maintenance organization regulated
under chapter 62D, deleted text begin or deleted text end a fraternal benefit society regulated under chapter 64B new text begin , or any state
agency new text end .

Sec. 6.

Minnesota Statutes 2025 Supplement, 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 a violation of section 609.561 shall be found or made
and filed in the proper court within ten years after the commission of the offense.

(g) Indictments or complaints for violation of sections deleted text begin 609.466 deleted text end new text begin 609.467 new 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.

(h) 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.

(i) 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.

(j) Indictments or complaints for violation of sections 609.562 and 609.563, shall be
found or made and filed in the proper court within five years after the commission of the
offense.

(k) 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.

(l) 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.

(m) 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.

(n) 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.

(o) 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. 7. new text begin APPROPRIATION.
new text end

new text begin $1,230,000 in fiscal year 2027 is appropriated from the general fund to the attorney
general to combat medical assistance fraud under Minnesota Statutes, section 609.467.
new text end

Sec. 8. 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

ARTICLE 2

CONFORMING CHANGES

Section 1.

Minnesota Statutes 2025 Supplement, section 145A.061, subdivision 3, is
amended to read:

Subd. 3.

Denial of service.

The commissioner may deny an application from any
applicant who has been convicted of any of the following crimes:

Section 609.185 (murder in the first degree); section 609.19 (murder in the second
degree); section 609.195 (murder in the third degree); section 609.20 (manslaughter in the
first degree); section 609.205 (manslaughter in the second degree); section 609.25
(kidnapping); section 609.2661 (murder of an unborn child in the first degree); section
609.2662 (murder of an unborn child in the second degree); section 609.2663 (murder of
an unborn child in the third degree); section 609.342 (criminal sexual conduct in the first
degree); section 609.343 (criminal sexual conduct in the second degree); section 609.344
(criminal sexual conduct in the third degree); section 609.345 (criminal sexual conduct in
the fourth degree); section 609.3451 (criminal sexual conduct in the fifth degree); section
609.3453 (criminal sexual predatory conduct); section 609.352 (solicitation of children to
engage in sexual conduct); section 609.352 (communication of sexually explicit materials
to children); section 609.365 (incest); section 609.377 (felony malicious punishment of a
child); section 609.378 (felony neglect or endangerment of a child); section 609.561 (arson
in the first degree); section 609.562 (arson in the second degree); section 609.563 (arson in
the third degree); section 609.749, subdivision 3, 4, or 5 (felony harassment or stalking);
section 152.021 (controlled substance crimes in the first degree); section 152.022 (controlled
substance crimes in the second degree); section 152.023 (controlled substance crimes in the
third degree); section 152.024 (controlled substance crimes in the fourth degree); section
152.025 (controlled substance crimes in the fifth degree); section 243.166 (violation of
predatory offender registration law); section 617.23, subdivision 2, clause (1), or subdivision
3, clause (1) (indecent exposure involving a minor); section 617.246 (use of minors in sexual
performance); section 617.247 (possession of child sexual abuse material); section 609.221
(assault in the first degree); section 609.222 (assault in the second degree); section 609.223
(assault in the third degree); section 609.2231 (assault in the fourth degree); section 609.224
(assault in the fifth degree); section 609.2242 (domestic assault); section 609.2247 (domestic
assault by strangulation); section 609.228 (great bodily harm caused by distribution of
drugs); section 609.23 (mistreatment of persons confined); section 609.231 (mistreatment
of residents or patients); section 609.2325 (criminal abuse); section 609.233 (criminal
neglect); section 609.2335 (financial exploitation of a vulnerable adult); section 609.234
(failure to report); section 609.24 (simple robbery); section 609.245 (aggravated robbery);
section 609.247 (carjacking); section 609.255 (false imprisonment); section 609.322
(solicitation, inducement, and promotion of prostitution and sex trafficking); section 609.324,
subdivision 1 (hiring or engaging minors in prostitution); section 609.465 (presenting false
claims to a public officer or body); new text begin Minnesota Statutes 2024, new text end section 609.466 new text begin or section
609.467 new text end (medical assistance fraud); section 609.52 (felony theft); section 609.82 (felony
fraud in obtaining credit); section 609.527 (felony identity theft); section 609.582 (felony
burglary); section 609.611 (felony insurance fraud); section 609.625 (aggravated forgery);
section 609.63 (forgery); section 609.631 (felony check forgery); section 609.66, subdivision
1e (felony drive-by shooting); section 609.71 (felony riot); section 609.713 (terroristic
threats); section 609.72, subdivision 3 (disorderly conduct by a caregiver against a vulnerable
adult); section 609.821 (felony financial transaction card fraud); section 609.855, subdivision
5 (shooting at or in a public transit vehicle or facility); or aiding and abetting, attempting,
or conspiring to commit any of the offenses in this subdivision.

Sec. 2.

Minnesota Statutes 2024, section 214.10, subdivision 2a, is amended to read:

Subd. 2a.

Proceedings.

A board shall initiate proceedings to suspend or revoke a license
or shall refuse to renew a license of a person licensed by the board who is convicted in a
court of competent jurisdiction of violating section 609.2231, subdivision 8, 609.23, 609.231,
609.2325, 609.233, 609.2335, 609.234, 609.465, new text begin Minnesota Statutes 2024, section new text end 609.466, new text begin
section 609.467, new text end 609.52, or 609.72, subdivision 3.

Sec. 3.

Minnesota Statutes 2024, section 245C.15, subdivision 2, is amended to read:

Subd. 2.

15-year disqualification.

(a) An individual is disqualified under section 245C.14
if: (1) less than 15 years have passed since the discharge of the sentence imposed, if any,
for the offense; and (2) the individual has committed a felony-level violation of any of the
following offenses: sections 152.021, subdivision 1 or 2b, (aggravated controlled substance
crime in the first degree; sale crimes); 152.022, subdivision 1 (controlled substance crime
in the second degree; sale crimes); 152.023, subdivision 1 (controlled substance crime in
the third degree; sale crimes); 152.024, subdivision 1 (controlled substance crime in the
fourth degree; sale crimes); 256.98 (wrongfully obtaining assistance); 268.182 (fraud);
393.07, subdivision 10, paragraph (c) (federal SNAP fraud); 518B.01, subdivision 14
(violation of an order for protection); 609.165 (felon ineligible to possess firearm); 609.2112,
609.2113, or 609.2114 (criminal vehicular homicide or injury); 609.215 (suicide); 609.223
or 609.2231 (assault in the third or fourth degree); repeat offenses under 609.224 (assault
in the fifth degree); 609.229 (crimes committed for benefit of a gang); 609.2325 (criminal
abuse of a vulnerable adult); 609.2335 (financial exploitation of a vulnerable adult); 609.235
(use of drugs to injure or facilitate crime); 609.24 (simple robbery); 609.247, subdivision
4 (carjacking in the third degree); 609.255 (false imprisonment); 609.2664 (manslaughter
of an unborn child in the first degree); 609.2665 (manslaughter of an unborn child in the
second degree); 609.267 (assault of an unborn child in the first degree); 609.2671 (assault
of an unborn child in the second degree); 609.268 (injury or death of an unborn child in the
commission of a crime); 609.27 (coercion); 609.275 (attempt to coerce); new text begin Minnesota Statutes
2024, section new text end 609.466 new text begin or section 609.467 new text end (medical assistance fraud); 609.495 (aiding an
offender); 609.498, subdivision 1 or 1b (aggravated first-degree or first-degree tampering
with a witness); 609.52 (theft); 609.521 (possession of shoplifting gear); 609.522 (organized
retail theft); 609.525 (bringing stolen goods into Minnesota); 609.527 (identity theft); 609.53
(receiving stolen property); 609.535 (issuance of dishonored checks); 609.562 (arson in the
second degree); 609.563 (arson in the third degree); 609.582 (burglary); 609.59 (possession
of burglary tools); 609.611 (insurance fraud); 609.625 (aggravated forgery); 609.63 (forgery);
609.631 (check forgery; offering a forged check); 609.635 (obtaining signature by false
pretense); 609.66 (dangerous weapons); 609.67 (machine guns and short-barreled shotguns);
609.687 (adulteration); 609.71 (riot); 609.713 (terroristic threats); 609.746 (interference
with privacy); 609.82 (fraud in obtaining credit); 609.821 (financial transaction card fraud);
617.23 (indecent exposure), not involving a minor; repeat offenses under 617.241 (obscene
materials and performances; distribution and exhibition prohibited; penalty); or 624.713
(certain persons not to possess firearms).

(b) An individual is disqualified under section 245C.14 if less than 15 years has passed
since the individual's aiding and abetting, attempt, or conspiracy to commit any of the
offenses listed in paragraph (a), as each of these offenses is defined in Minnesota Statutes.

(c) An individual is disqualified under section 245C.14 if less than 15 years has passed
since the termination of the individual's parental rights under section 260C.301, subdivision
1, paragraph (b), or subdivision 3.

(d) An individual is disqualified under section 245C.14 if less than 15 years has passed
since the discharge of the sentence imposed for an offense in any other state or country, the
elements of which are substantially similar to the elements of the offenses listed in paragraph
(a) or since the termination of parental rights in any other state or country, the elements of
which are substantially similar to the elements listed in paragraph (c).

(e) If the individual studied commits one of the offenses listed in paragraph (a), but the
sentence or level of offense is a gross misdemeanor or misdemeanor, the individual is
disqualified but the disqualification look-back period for the offense is the period applicable
to the gross misdemeanor or misdemeanor disposition.

(f) When a disqualification is based on a judicial determination other than a conviction,
the disqualification period begins from the date of the court order. When a disqualification
is based on an admission, the disqualification period begins from the date of an admission
in court. When a disqualification is based on an Alford Plea, the disqualification period
begins from the date the Alford Plea is entered in court. When a disqualification is based
on a preponderance of evidence of a disqualifying act, the disqualification date begins from
the date of the dismissal, the date of discharge of the sentence imposed for a conviction for
a disqualifying crime of similar elements, or the date of the incident, whichever occurs last.

Sec. 4.

Minnesota Statutes 2024, section 245C.15, subdivision 3, is amended to read:

Subd. 3.

Ten-year disqualification.

(a) An individual is disqualified under section
245C.14 if: (1) less than ten years have passed since the discharge of the sentence imposed,
if any, for the offense; and (2) the individual has committed a gross misdemeanor-level
violation of any of the following offenses: sections 256.98 (wrongfully obtaining assistance);
260B.425 (criminal jurisdiction for contributing to status as a juvenile petty offender or
delinquency); 260C.425 (criminal jurisdiction for contributing to need for protection or
services); 268.182 (fraud); 393.07, subdivision 10, paragraph (c) (federal SNAP fraud);
609.2112, 609.2113, or 609.2114 (criminal vehicular homicide or injury); 609.221 or 609.222
(assault in the first or second degree); 609.223 or 609.2231 (assault in the third or fourth
degree); 609.224 (assault in the fifth degree); 609.224, subdivision 2, paragraph (c) (assault
in the fifth degree by a caregiver against a vulnerable adult); 609.2242 and 609.2243
(domestic assault); 609.23 (mistreatment of persons confined); 609.231 (mistreatment of
residents or patients); 609.2325 (criminal abuse of a vulnerable adult); 609.233 (criminal
neglect of a vulnerable adult); 609.2335 (financial exploitation of a vulnerable adult);
609.234 (failure to report maltreatment of a vulnerable adult); 609.265 (abduction); 609.275
(attempt to coerce); 609.324, subdivision 1a (other prohibited acts; minor engaged in
prostitution); 609.33 (disorderly house); 609.377 (malicious punishment of a child); 609.378
(neglect or endangerment of a child); new text begin Minnesota Statutes 2024, section new text end 609.466 new text begin or section
609.467 new text end (medical assistance fraud); 609.52 (theft); 609.522 (organized retail theft); 609.525
(bringing stolen goods into Minnesota); 609.527 (identity theft); 609.53 (receiving stolen
property); 609.535 (issuance of dishonored checks); 609.582 (burglary); 609.59 (possession
of burglary tools); 609.611 (insurance fraud); 609.631 (check forgery; offering a forged
check); 609.66 (dangerous weapons); 609.71 (riot); 609.72, subdivision 3 (disorderly conduct
against a vulnerable adult); 609.749, subdivision 2 (harassment); 609.82 (fraud in obtaining
credit); 609.821 (financial transaction card fraud); 617.23 (indecent exposure), not involving
a minor; 617.241 (obscene materials and performances); 617.243 (indecent literature,
distribution); 617.293 (harmful materials; dissemination and display to minors prohibited);
or Minnesota Statutes 2012, section 609.21; or violation of an order for protection under
section 518B.01, subdivision 14.

(b) An individual is disqualified under section 245C.14 if less than ten years has passed
since the individual's aiding and abetting, attempt, or conspiracy to commit any of the
offenses listed in paragraph (a), as each of these offenses is defined in Minnesota Statutes.

(c) An individual is disqualified under section 245C.14 if less than ten years has passed
since the discharge of the sentence imposed for an offense in any other state or country, the
elements of which are substantially similar to the elements of any of the offenses listed in
paragraph (a).

(d) If the individual studied commits one of the offenses listed in paragraph (a), but the
sentence or level of offense is a misdemeanor disposition, the individual is disqualified but
the disqualification lookback period for the offense is the period applicable to misdemeanors.

(e) When a disqualification is based on a judicial determination other than a conviction,
the disqualification period begins from the date of the court order. When a disqualification
is based on an admission, the disqualification period begins from the date of an admission
in court. When a disqualification is based on an Alford Plea, the disqualification period
begins from the date the Alford Plea is entered in court. When a disqualification is based
on a preponderance of evidence of a disqualifying act, the disqualification date begins from
the date of the dismissal, the date of discharge of the sentence imposed for a conviction for
a disqualifying crime of similar elements, or the date of the incident, whichever occurs last.

Sec. 5.

Minnesota Statutes 2024, section 245C.15, subdivision 4, is amended to read:

Subd. 4.

Seven-year disqualification.

(a) An individual is disqualified under section
245C.14 if: (1) less than seven years has passed since the discharge of the sentence imposed,
if any, for the offense; and (2) the individual has committed a misdemeanor-level violation
of any of the following offenses: sections 256.98 (wrongfully obtaining assistance); 260B.425
(criminal jurisdiction for contributing to status as a juvenile petty offender or delinquency);
260C.425 (criminal jurisdiction for contributing to need for protection or services); 268.182
(fraud); 393.07, subdivision 10, paragraph (c) (federal SNAP fraud); 609.2112, 609.2113,
or 609.2114 (criminal vehicular homicide or injury); 609.221 (assault in the first degree);
609.222 (assault in the second degree); 609.223 (assault in the third degree); 609.2231
(assault in the fourth degree); 609.224 (assault in the fifth degree); 609.2242 (domestic
assault); 609.2335 (financial exploitation of a vulnerable adult); 609.234 (failure to report
maltreatment of a vulnerable adult); 609.2672 (assault of an unborn child in the third degree);
609.27 (coercion); violation of an order for protection under 609.3232 (protective order
authorized; procedures; penalties); new text begin Minnesota Statutes 2024, section new text end 609.466 new text begin or section
609.467 new text end (medical assistance fraud); 609.52 (theft); 609.522 (organized retail theft); 609.525
(bringing stolen goods into Minnesota); 609.527 (identity theft); 609.53 (receiving stolen
property); 609.535 (issuance of dishonored checks); 609.611 (insurance fraud); 609.66
(dangerous weapons); 609.665 (spring guns); 609.746 (interference with privacy); 609.79
(obscene or harassing telephone calls); 609.795 (letter, telegram, or package; opening;
harassment); 609.82 (fraud in obtaining credit); 609.821 (financial transaction card fraud);
617.23 (indecent exposure), not involving a minor; 617.293 (harmful materials; dissemination
and display to minors prohibited); or Minnesota Statutes 2012, section 609.21; or violation
of an order for protection under section 518B.01 (Domestic Abuse Act).

(b) An individual is disqualified under section 245C.14 if less than seven years has
passed since a determination or disposition of the individual's:

(1) failure to make required reports under section 260E.06 or 626.557, subdivision 3,
for incidents in which: (i) the final disposition under section 626.557 or chapter 260E was
substantiated maltreatment, and (ii) the maltreatment was recurring or serious; or

(2) substantiated serious or recurring maltreatment of a minor under chapter 260E, a
vulnerable adult under section 626.557, or serious or recurring maltreatment in any other
state, the elements of which are substantially similar to the elements of maltreatment under
section 626.557 or chapter 260E for which: (i) there is a preponderance of evidence that
the maltreatment occurred, and (ii) the subject was responsible for the maltreatment.

(c) An individual is disqualified under section 245C.14 if less than seven years has
passed since the individual's aiding and abetting, attempt, or conspiracy to commit any of
the offenses listed in paragraphs (a) and (b), as each of these offenses is defined in Minnesota
Statutes.

(d) An individual is disqualified under section 245C.14 if less than seven years has
passed since the discharge of the sentence imposed for an offense in any other state or
country, the elements of which are substantially similar to the elements of any of the offenses
listed in paragraphs (a) and (b).

(e) When a disqualification is based on a judicial determination other than a conviction,
the disqualification period begins from the date of the court order. When a disqualification
is based on an admission, the disqualification period begins from the date of an admission
in court. When a disqualification is based on an Alford Plea, the disqualification period
begins from the date the Alford Plea is entered in court. When a disqualification is based
on a preponderance of evidence of a disqualifying act, the disqualification date begins from
the date of the dismissal, the date of discharge of the sentence imposed for a conviction for
a disqualifying crime of similar elements, or the date of the incident, whichever occurs last.

(f) An individual is disqualified under section 245C.14 if less than seven years has passed
since the individual was disqualified under section 256.98, subdivision 8.

Sec. 6.

Minnesota Statutes 2025 Supplement, section 609.531, subdivision 1, is amended
to read:

Subdivision 1.

Definitions.

For the purpose of sections 609.531 to 609.5318, the
following terms have the meanings given.

(a) "Conveyance device" means a device used for transportation and includes, but is not
limited to, a motor vehicle, trailer, snowmobile, airplane, and vessel and any equipment
attached to it. The term "conveyance device" does not include property which is, in fact,
itself stolen or taken in violation of the law.

(b) "Weapon used" means a dangerous weapon as defined under section 609.02,
subdivision 6, that the actor used or had in possession in furtherance of a crime.

(c) "Property" means property as defined in section 609.52, subdivision 1, clause (1).

(d) "Contraband" means property which is illegal to possess under Minnesota law.

(e) "Appropriate agency" means the Bureau of Criminal Apprehension, the Minnesota
Division of Driver and Vehicle Services, the Minnesota State Patrol, a county sheriff's
department, the Three Rivers Park District Department of Public Safety, the Department of
Natural Resources Division of Enforcement, the University of Minnesota Police Department,
the Department of Corrections Fugitive Apprehension Unit, a city, metropolitan transit, or
airport police department; or a multijurisdictional entity established under section 299A.642
or 299A.681.

(f) "Designated offense" includes:

(1) for weapons used: any violation of this chapter, chapter 152 or 624;

(2) for driver's license or identification card transactions: any violation of section 171.22;
and

(3) for all other purposes: a felony violation of, or a felony-level attempt or conspiracy
to violate, section 325E.17; 325E.18; 609.185; 609.19; 609.195; 609.2112; 609.2113;
609.2114; 609.221; 609.222; 609.223; 609.2231; 609.2335; 609.24; 609.245; 609.247;
609.25; 609.255; 609.282; 609.283; 609.322; 609.342, subdivision 1, or subdivision 1a,
clauses (a) to (f) and (i); 609.343, subdivision 1, or subdivision 1a, clauses (a) to (f) and (i);
609.344, subdivision 1, or subdivision 1a, clauses (a) to (e), (h), or (i); 609.345, subdivision
1, or subdivision 1a, clauses (a) to (e), (h), and (i); 609.352; 609.42; 609.425; new text begin Minnesota
Statutes 2024, section new text end 609.466; new text begin section 609.467; new text end 609.485; 609.487; 609.52; 609.525; 609.527;
609.528; 609.53; 609.54; 609.551; 609.561; 609.562; 609.563; 609.582; 609.59; 609.595;
609.611; 609.631; 609.66, subdivision 1e; 609.671, subdivisions 3, 4, 5, 8, and 12; 609.687;
609.821; 609.825; 609.86; 609.88; 609.89; 609.893; 609.895; 617.246; 617.247; or a gross
misdemeanor or felony violation of section 609.891 or 624.7181; or any violation of section
609.324; or a felony violation of, or a felony-level attempt or conspiracy to violate, Minnesota
Statutes 2012, section 609.21.

(g) "Controlled substance" has the meaning given in section 152.01, subdivision 4.

(h) "Prosecuting authority" means the attorney who is responsible for prosecuting an
offense that is the basis for a forfeiture under sections 609.531 to 609.5318.

(i) "Asserting person" means a person, other than the driver alleged to have used a vehicle
in the transportation or exchange of a controlled substance intended for distribution or sale,
claiming an ownership interest in a vehicle that has been seized or restrained under this
section.

Sec. 7.

Laws 2026, chapter 88, article 1, section 181, is amended to read:

Sec. 181.

Minnesota Statutes 2025 Supplement, section 299C.061, subdivision 1, is
amended to read:

Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms have
the meanings given.

(b) "Fraud involving state funded or administered programs or services" includes any
violation of section 609.445, 609.465, new text begin Minnesota Statutes 2024, section new text end 609.466, new text begin section
609.467, new text end 609.52, 609.611, 609.651, 609.7475, or 609.821 involving a state agency or
state-funded or administered program or service.

(c) "Peace officer" has the meaning given in section 626.84, subdivision 1, paragraph
(c).

(d) "Section" means the Financial Crimes and Fraud Section of the Bureau of Criminal
Apprehension.

(e) "State agency" has the meaning given in section 13.02, subdivision 17.

(f) "Superintendent" means the superintendent of the Bureau of Criminal Apprehension.

APPENDIX

Repealed Minnesota Statutes: H2354-5

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.