SF 4874
1st Engrossment - 94th Legislature (2025 - 2026)
Posted on 04/08/2026 10:33 a.m.
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A bill for an act
relating to state government; precluding state contracts with person or business
convicted of fraud; proposing coding for new law in Minnesota Statutes, chapter
16C.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
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[16C.0535] CONTRACTS PROHIBITED WITH VENDORS WHO HAVE
COMMITTED FRAUD.
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new text begin Subdivision 1. new text end
new text begin Contract prohibited. new text end
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An agency must not enter into a contract to procure
goods or services with a company owned by a person that has been within the previous ten
years:
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(1) convicted of theft in violation of section 609.52, perjury in violation of section 609.48,
or aggravated forgery or forgery in violation of sections 609.625 and 609.63, or convicted
under substantially similar federal laws;
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(2) convicted of an attempt or conspiracy to commit any of the crimes listed in clause
(1); or
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(3) held liable for making false claims against the state under chapter 15C or held liable
for making false claims against the United States under substantially similar federal laws.
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new text begin Subd. 2. new text end
new text begin Ownership. new text end
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For purposes of this section, a person who owns the company is:
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(1) for a sole proprietorship, the sole proprietor;
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(2) for a business partnership, any one of the partners with at least a ten percent ownership
interest in the partnership or a person who has control over management or contracting
decisions for the partnership; or
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(3) for a corporation, any one of the persons with at least a ten percent ownership interest
in the corporation or a person who has control over management or contracting decisions
for the corporation.
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new text begin Subd. 3. new text end
new text begin Definition. new text end
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For purposes of this section, "agency" is defined in section 16C.02,
subdivision 2, and includes the Minnesota State Colleges and Universities.
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new text begin Subd. 4. new text end
new text begin Permanent exclusion. new text end
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A state agency must not enter into a contract to procure
goods or services with a company that has been the subject of two occurrences of the
conditions of subdivision 1, clause (1) or (2).
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