HF 2319

1st Division Engrossment - 91st Legislature (2019 - 2020) Posted on 03/03/2020 08:13am

A bill for an act
relating to human services; creating human services programs crimes; providing
criminal penalties; amending Minnesota Statutes 2018, sections 13.82, subdivision
1; 245C.15, subdivisions 2, 4; 245E.01, subdivision 8; 256B.12; 628.26; Minnesota
Statutes 2019 Supplement, sections 245C.15, subdivision 3; 256B.064, subdivision
1a; proposing coding for new law in Minnesota Statutes, chapter 609.

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

Section 1.

Minnesota Statutes 2018, section 13.82, subdivision 1, is amended to read:

Subdivision 1.

Application.

This section shall apply to agencies which carry on a law
enforcement function, including but not limited to municipal police departments, county
sheriff departments, fire departments, the Bureau of Criminal Apprehension, the Minnesota
State Patrol, the Board of Peace Officer Standards and Training, the Department of
Commerce, new text begin the Department of Human Services, new text end and county human service agency client
and provider fraud investigation, prevention, and control units operated or supervised by
the Department of Human Services.

Sec. 2.

Minnesota Statutes 2018, 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 256.98 (wrongfully obtaining assistance); 268.182 (fraud);
393.07, subdivision 10, paragraph (c) (federal Food Stamp Program fraud); 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); 609.255 (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); 609.466 (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); 609.525 (bringing stolen goods into Minnesota); 609.527 (identity
theft); 609.53 (receiving stolen property); 609.535 (issuance of dishonored checks); new text begin 609.542
(human services programs crimes); new text end 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); 609.82 (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); 624.713 (certain persons not to possess firearms); chapter 152 (drugs;
controlled substance); or Minnesota Statutes 2012, section 609.21; or a felony-level
conviction involving alcohol or drug use.

(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).

(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.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2020.
new text end

Sec. 3.

Minnesota Statutes 2019 Supplement, 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);
268.182 (fraud); 393.07, subdivision 10, paragraph (c) (federal Food Stamp Program 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); 609.466 (medical assistance fraud); 609.52 (theft);
609.525 (bringing stolen goods into Minnesota); 609.527 (identity theft); 609.53 (receiving
stolen property); 609.535 (issuance of dishonored checks); new text begin 609.542 (human services programs
crimes); new text end 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); repeat
offenses under 609.746 (interference with privacy); 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.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2020.
new text end

Sec. 4.

Minnesota Statutes 2018, 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); 268.182
(fraud); 393.07, subdivision 10, paragraph (c) (federal Food Stamp Program 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); 609.466 (medical assistance fraud);
609.52 (theft); 609.525 (bringing stolen goods into Minnesota); 609.527 (identity theft);
609.53 (receiving stolen property); 609.535 (issuance of dishonored checks); new text begin 609.542
(human services programs crimes); new text end 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 626.556, subdivision 3, or 626.557,
subdivision 3, for incidents in which: (i) the final disposition under section 626.556 or
626.557 was substantiated maltreatment, and (ii) the maltreatment was recurring or serious;
or

(2) substantiated serious or recurring maltreatment of a minor under section 626.556, 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 626.556 or 626.557 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.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2020.
new text end

Sec. 5.

Minnesota Statutes 2018, section 245E.01, subdivision 8, is amended to read:

Subd. 8.

Financial misconduct or misconduct.

"Financial misconduct" or "misconduct"
means an entity's or individual's acts or omissions that result in fraud and abuse or error
against the Department of Human Services. Financial misconduct includes new text begin : (1) new text end acting as a
recruiter offering conditional employment on behalf of a provider that has received funds
from the child care assistance program new text begin ; and (2) committing an act or acts that meet the
definition of offenses listed in section 609.542 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2020.
new text end

Sec. 6.

Minnesota Statutes 2019 Supplement, section 256B.064, subdivision 1a, is amended
to read:

Subd. 1a.

Grounds for sanctions against vendors.

(a) The commissioner may impose
sanctions against a vendor of medical care for any of the following: (1) fraud, theft, or abuse
in connection with the provision of medical care to recipients of public assistance; (2) a
pattern of presentment of false or duplicate claims or claims for services not medically
necessary; (3) a pattern of making false statements of material facts for the purpose of
obtaining greater compensation than that to which the vendor is legally entitled; (4)
suspension or termination as a Medicare vendor; (5) refusal to grant the state agency access
during regular business hours to examine all records necessary to disclose the extent of
services provided to program recipients and appropriateness of claims for payment; (6)
failure to repay an overpayment or a fine finally established under this section; (7) failure
to correct errors in the maintenance of health service or financial records for which a fine
was imposed or after issuance of a warning by the commissioner; deleted text begin and deleted text end (8) any reason for
which a vendor could be excluded from participation in the Medicare program under section
1128, 1128A, or 1866(b)(2) of the Social Security Act new text begin ; and (9) commission of an act or acts
that meet the definition of offenses listed in section 609.542 when supported by a
preponderance of evidence new text end .

(b) The commissioner may impose sanctions against a pharmacy provider for failure to
respond to a cost of dispensing survey under section 256B.0625, subdivision 13e, paragraph
(h).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2020.
new text end

Sec. 7.

Minnesota Statutes 2018, 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 609.466 deleted text begin and deleted text end new text begin ; new text end 609.52, subdivision 2 deleted text begin , deleted 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.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2020.
new text end

Sec. 8.

new text begin [609.542] HUMAN SERVICES PROGRAMS CRIMES.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) "Federal health care program" has the definition provided
in United States Code, title 42, section 1320a-7b(f).
new text end

new text begin (b) "Remuneration" has the definition provided in United States Code, title 42, section
1320a-7a(i)(6).
new text end

new text begin Subd. 2. new text end

new text begin Illegal remunerations for medical assistance. new text end

new text begin (a) Whoever intentionally
solicits or receives any remuneration, including any kickback, bribe, or rebate, directly or
indirectly, overtly or covertly, in cash or in kind (1) in return for referring an individual to
a person for the furnishing or arranging for the furnishing of any item or service for which
payment may be made in whole or in part under a federal health care program, or (2) in
return for purchasing, leasing, ordering, or arranging for or recommending purchasing,
leasing, or ordering any good, facility, service, or item for which payment may be made in
whole or in part under a federal health care program, is guilty of solicitation of a kickback
and, upon conviction thereof, shall be fined or imprisoned, or both, as described in
subdivision 4, paragraph (a).
new text end

new text begin (b) Whoever intentionally offers or pays any remuneration, including any kickback,
bribe, or rebate, directly or indirectly, overtly or covertly, in cash or in kind to any person
to induce such person (1) to refer an individual to a person for the furnishing or arranging
for the furnishing of any item or service for which payment may be made in whole or in
part under a federal health care program, or (2) to purchase, lease, order, or arrange for or
recommend purchasing, leasing, or ordering any good, facility, service, or item for which
payment may be made in whole or in part under a federal health care program, is guilty of
offering a kickback and, upon conviction thereof, shall be fined or imprisoned, or both, as
described in subdivision 4, paragraph (b).
new text end

new text begin (c) This subdivision does not apply to remuneration exempted under the Anti-Kickback
Statute in United States Code, title 42, section 1320a-7b(b)(3), or payment practices listed
in Code of Federal Regulations, title 42, section 1001.952, or section 62J.23, subdivision
2, paragraphs (b) to (d), or 4.
new text end

new text begin Subd. 3. new text end

new text begin Illegal remunerations in the child care assistance program. new text end

new text begin (a) Whoever
intentionally solicits or receives any remuneration, including any kickback, bribe, or rebate,
directly or indirectly, overtly or covertly, in cash or in kind (1) in return for referring an
individual to a person for the furnishing or arranging for the furnishing of any item or service
for which payment may be made in whole or in part under chapter 119B, or (2) in return
for using a service for which payment may be made in whole or in part under chapter 119B,
is guilty of solicitation of a kickback and, upon conviction thereof, shall be fined or
imprisoned, or both, as described in subdivision 4, paragraph (a).
new text end

new text begin (b) Whoever intentionally offers or pays any remuneration, including any kickback,
bribe, or rebate, directly or indirectly, overtly or covertly, in cash or in kind to any person
to induce such person (1) to refer an individual to a person for the furnishing or arranging
for the furnishing of any item or service for which payment may be made in whole or in
part under chapter 119B, or (2) to use any item or service for which payment may be made
in whole or in part under chapter 119B, is guilty of offering a kickback and, upon conviction
thereof, shall be fined or imprisoned, or both, as described in subdivision 4, paragraph (b).
new text end

new text begin (c) This subdivision does not apply to any amount paid by an employer to a bona fide
employee for providing covered items or services under chapter 119B while acting in the
course and scope of employment.
new text end

new text begin (d) This subdivision does not apply to marketing or promotional offerings that directly
benefit an eligible individual's child for whom the child care provider is providing child
care services.
new text end

new text begin Subd. 4. new text end

new text begin Penalties for solicitation of a kickback. new text end

new text begin (a) Whoever commits solicitation of
a kickback may be sentenced pursuant to section 609.52, subdivision 3. For the purposes
of sentencing under this section, "value" in section 609.52, subdivision 3, means the amount
or monetary value of the remuneration solicited or received.
new text end

new text begin (b) Whoever commits the crime of offering a kickback may be sentenced pursuant to
section 609.52, subdivision 3. For the purposes of sentencing under this section, "value" in
section 609.52, subdivision 3, means the amount of public funds expended in providing the
good, facility, service, or item that the person obtained as a direct or indirect result of the
prohibited remuneration.
new text end

new text begin (c) In any prosecution under subdivision 2 or 3, the value of a remuneration, good,
facility, service, or item solicited or received, or offered or provided, within any six-month
period may be aggregated and the defendant charged accordingly in applying the provisions
of this subdivision, provided that when two or more offenses are committed by the same
person in two or more counties, the accused may be prosecuted in any county in which one
of the offenses was committed for all of the offenses aggregated under this paragraph.
new text end

new text begin (d) A claim for any good, facility, service, or item rendered in violation of this section
is noncompensable and unenforceable at the time it is made.
new text end

new text begin Subd. 5. new text end

new text begin False claims. new text end

new text begin In addition to the penalties in subdivision 4, a claim that includes
items or services resulting from a violation of this section constitutes a false or fraudulent
claim for purposes of the Minnesota False Claims Act, sections 15C.01 to 15C.16.
new text end

Sec. 9.

Minnesota Statutes 2018, 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 and 609.342 to 609.345,
if the victim was under the age of 18 years at the time the offense was committed, shall be
found or made and filed in the proper court within the later of nine years after the commission
of the offense or three years after the offense was reported to law enforcement authorities.

(f) Notwithstanding the limitations in paragraph (e), indictments or complaints for
violation of sections 609.322 and 609.342 to 609.344 may be found or made and filed in
the proper court at any time after commission of the offense, if physical evidence is collected
and preserved that is capable of being tested for its DNA characteristics. If this evidence is
not collected and preserved and the victim was 18 years old or older at the time of the
offense, the prosecution must be commenced within nine years after the commission of the
offense.

(g) Indictments or complaints for violation of sections 609.466 deleted text begin and deleted text end new text begin , new text end 609.52, subdivision
2, new text begin paragraph (a), new text end clause (3), item (iii), new text begin and 609.542, new text end 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,
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 609.561 to 609.563, shall be found
or made and filed in the proper court within five years after the commission of the offense.

(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.