1.1 A bill for an act
1.2 relating to public safety; establishing the crime of illegal remunerations; making
1.3 a conforming change; amending Minnesota Statutes 2024, section 256B.12;
1.4 proposing coding for new law in Minnesota Statutes, chapter 609.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2024, section 256B.12, is amended to read:
1.7 256B.12 LEGAL REPRESENTATION.
1.8 The attorney general or the appropriate county attorney appearing at the direction of the
1.9attorney general shall be the attorney for the state agency, and the county attorney of the
1.10appropriate county shall be the attorney for the local agency in all matters pertaining hereto.
1.11To prosecute under this chapter or sections 609.466 and; 609.52, subdivision 2,; and 609.542,
1.12or to recover payments wrongfully made under this chapter, the attorney general or the
1.13appropriate county attorney, acting independently or at the direction of the attorney general
1.14may institute a criminal or civil action.
1.15 Sec. 2. [609.542] ILLEGAL REMUNERATIONS.
1.16 Subdivision 1.Definitions.(a) For purposes of this section, the following terms have
1.17the meanings given.
1.18 (b) "Grant" means the transfer of cash or something of value from a federal agency, an
1.19executive agency, or a political subdivision to another person to support a public purpose
1.20authorized by law or ordinance or an agreement or promise to make such a transfer. Grant
1.21does not include a payment, contract, lease, or other promise to pay for property or services
1.22for the direct benefit of the executive agency or political subdivision.
1Sec. 2.
REVISOR KLL/LJ 25-0519803/25/25
State of Minnesota
This Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 3043
NINETY-FOURTH SESSION
Authored by Robbins; Anderson, P. E.; Witte; Rymer and Engen04/02/2025
The bill was read for the first time and referred to the Committee on Public Safety Finance and Policy 2.1 (c) "Federal health care program" has the meaning given in United States Code, title 42,
2.2section 1320a-7b(f).
2.3 (d) "Political subdivision" means a county, a statutory or home rule charter city, or a
2.4township.
2.5 Subd. 2.Human services program; unauthorized remuneration.(a) A person who
2.6intentionally solicits or receives money, a discount, a credit, a waiver, a rebate, a good, a
2.7service, employment, or anything else of value in return for doing any of the following is
2.8guilty of a crime and may be sentenced as provided in subdivision 5:
2.9 (1) referring an individual to a person for the furnishing or arranging for the furnishing
2.10of any item or service for which payment may be made in whole or in part under a federal
2.11health care program, behavioral health program under chapter 254B, or family program
2.12under chapter 142E;
2.13 (2) purchasing, leasing, ordering, or arranging for or recommending purchasing, leasing,
2.14or ordering any good, facility, service, or item for which payment may be made in whole
2.15or in part under a federal health care program, behavioral health program under chapter
2.16254B, or family program under chapter 142E; or
2.17 (3) applying for or receiving any item or service for which payment may be made in
2.18whole or in part under a federal health care program, behavioral health program under
2.19chapter 254B, or family program under chapter 142E.
2.20 (b) A person who intentionally offers or provides money, a discount, a credit, a waiver,
2.21a rebate, a good, a service, employment, or anything else of value to induce a person to do
2.22any of the following is guilty of a crime and may be sentenced as provided in subdivision
2.235:
2.24 (1) refer an individual to a person for the furnishing or arranging for the furnishing of
2.25any item or service for which payment may be made in whole or in part under a federal
2.26health care program, behavioral health program under chapter 254B, or family program
2.27under chapter 142E;
2.28 (2) purchase, lease, order, or arrange for or recommend purchasing, leasing, or ordering
2.29any good, facility, service, or item for which payment may be made in whole or in part
2.30under a federal health care program, behavioral health program under chapter 254B, or
2.31family program under chapter 142E; or
2Sec. 2.
REVISOR KLL/LJ 25-0519803/25/25 3.1 (3) apply for or receive any item or service for which payment may be made in whole
3.2or in part under a federal health care program, behavioral health program under chapter
3.3254B, or family program under chapter 142E.
3.4 Subd. 3.Grants; unauthorized remuneration.(a) A person who intentionally solicits
3.5or receives money, a discount, a credit, a waiver, a rebate, a good, a service, employment,
3.6or anything else of value in return for doing any of the following is guilty of a crime and
3.7may be sentenced as provided in subdivision 5:
3.8 (1) awarding a grant;
3.9 (2) recommending that a federal agency, an executive agency, or a political subdivision
3.10award another person a grant;
3.11 (3) providing false information or withholding accurate information in support of an
3.12application for a grant or request for payment under the terms of a grant; or
3.13 (4) providing any portion of a good, service, or other thing of value for which the person
3.14receives payment or reimbursement pursuant to the terms of a grant.
3.15 (b) A person who intentionally offers or provides money, a discount, a credit, a waiver,
3.16a rebate, a good, a service, employment, or anything else of value to induce a person to do
3.17any of the following is guilty of a crime and may be sentenced as provided in subdivision
3.185:
3.19 (1) award a grant;
3.20 (2) recommend that a federal agency, an executive agency, or a political subdivision
3.21award another person a grant; or
3.22 (3) provide false information or withhold accurate information in support of an application
3.23for a grant or request for payment under the terms of a grant.
3.24 Subd. 4.Exceptions.(a) Subdivision 2 does not apply to any payment, discount, waiver,
3.25or other remuneration exempted under United States Code, title 42, section 1320a-7b(b)(3),
3.26or payment made under a federal health care program which is exempt from liability by
3.27United States Code, title 42, section 1001.952.
3.28 (b) For actions involving a family program under chapter 142E, subdivision 2 does not
3.29apply to:
3.30 (1) any amount paid by an employer to a bona fide employee for providing covered
3.31items or services under chapter 142E while acting in the course and scope of employment;
3.32or
3Sec. 2.
REVISOR KLL/LJ 25-0519803/25/25 4.1 (2) child care provider discounts, scholarships, or other financial assistance to families
4.2allowed under section 142E.17, subdivision 7.
4.3 Subd. 5.Penalties.Whoever violates subdivisions 2 or 3 may be sentenced as follows:
4.4 (1) to imprisonment of not more than ten years or to payment of a fine of not more than
4.5$20,000, or both, if the value of any money, discount, credit, waiver, rebate, good, service,
4.6employment, or other thing of value solicited, received, offered, or provided exceeds $5,000;
4.7or
4.8 (2) imprisonment for not more than five years or to payment of a fine of not more than
4.9$10,000, or both, if the value of any money, discount, credit, waiver, rebate, good, service,
4.10employment, or other thing of value solicited, received, offered, or provided is not more
4.11than $5,000.
4.12 Subd. 6.Aggregation.In a prosecution under this section, the value of any money,
4.13discount, credit, waiver, rebate, good, service, employment, or other thing of value solicited,
4.14received, offered, or provided within a six-month period may be aggregated and the defendant
4.15charged accordingly. When two or more offenses are committed by the same person in two
4.16or more counties, the accused may be prosecuted in any county in which one of the offenses
4.17was committed for all of the offenses aggregated under this subdivision.
4.18 Subd. 7.False claims; termination of grant.(a) In addition to the penalties provided
4.19for in this section, a claim, as defined in section 15C.01, subdivision 2, that includes items
4.20or services resulting from a violation of this section constitutes a false or fraudulent claim
4.21for purposes of section 15C.02.
4.22 (b) A conviction under subdivision 3 constitutes a criminal offense relating to a state
4.23grant agreement for purposes of section 16B.991, subdivision 1.
4.24 EFFECTIVE DATE.This section is effective August 1, 2025, and applies to crimes
4.25committed on or after that date.
4Sec. 2.
REVISOR KLL/LJ 25-0519803/25/25