1.1 A bill for an act 1.2 relating to employment; providing definitions; modifying whistleblower protections 1.3 for public employees; amending Minnesota Statutes 2024, sections 181.931, by 1.4 adding subdivisions; 181.932, subdivision 1. 1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.6 Section 1. Minnesota Statutes 2024, section 181.931, is amended by adding a subdivision 1.7to read: 1.8 Subd. 1a.Abuse."Abuse" means actions that may, directly or indirectly, result in 1.9unnecessary costs to programs of a state agency or political subdivision. Abuse may involve 1.10paying for items or services when there is no legal entitlement to that payment. 1.11 Sec. 2. Minnesota Statutes 2024, section 181.931, is amended by adding a subdivision to 1.12read: 1.13 Subd. 3a.Fraud."Fraud" means an intentional or deliberate act to deprive another of 1.14property or money or to acquire property or money by deception or other unfair means. 1.15Fraud includes intentionally submitting false information to the department for the purpose 1.16of obtaining a greater compensation or benefit than that to which the person is legally 1.17entitled. Fraud also includes failure to correct errors in the maintenance of records in a 1.18timely manner after a request by a state agency or political subdivision. 1Sec. 2. S0475-1 1st EngrossmentSF475 REVISOR SS SENATE STATE OF MINNESOTA S.F. No. 475NINETY-FOURTH SESSION (SENATE AUTHORS: MATHEWS, Dornink, Hoffman and Marty) OFFICIAL STATUSD-PGDATE Introduction and first reading01/21/2025 Referred to Labor Author added Hoffman01/23/2025 Comm report: To pass as amended and re-refer to State and Local Government01/27/2025 Author added Marty 2.1 Sec. 3. Minnesota Statutes 2024, section 181.931, is amended by adding a subdivision to 2.2read: 2.3 Subd. 7.Waste."Waste" means practices that, directly or indirectly, result in unnecessary 2.4costs to programs of a state agency or political subdivision, such as misusing resources. 2.5 Sec. 4. Minnesota Statutes 2024, section 181.932, subdivision 1, is amended to read: 2.6 Subdivision 1.Prohibited action.An employer shall not discharge, discipline, penalize, 2.7interfere with, threaten, restrain, coerce, or otherwise retaliate or discriminate against an 2.8employee regarding the employee's compensation, terms, conditions, location, or privileges 2.9of employment because: 2.10 (1) the employee, or a person acting on behalf of an employee, in good faith, reports a 2.11violation, suspected violation, or planned violation of any federal or state law or common 2.12law or rule adopted pursuant to law to an employer or to any governmental body or law 2.13enforcement official; 2.14 (2) the employee is requested by a public body or office to participate in an investigation, 2.15hearing, inquiry; 2.16 (3) the employee refuses an employer's order to perform an action that the employee 2.17has an objective basis in fact to believe violates any state or federal law or rule or regulation 2.18adopted pursuant to law, and the employee informs the employer that the order is being 2.19refused for that reason; 2.20 (4) the employee, in good faith, reports a situation in which the quality of health care 2.21services provided by a health care facility, organization, or health care provider violates a 2.22standard established by federal or state law or a professionally recognized national clinical 2.23or ethical standard and potentially places the public at risk of harm; 2.24 (5) a public employee communicates the findings of a scientific or technical study that 2.25the employee, in good faith, believes to be truthful and accurate, including reports to a 2.26governmental body or law enforcement official; or 2.27 (6) an a public employee in the classified service of state government communicates 2.28information that the public employee, in good faith, believes to be truthful and accurate, 2.29and that relates to state public services, including the financing of state public services, to: 2.30 (i) a legislator or the legislative auditor; or 2.31 (ii) a constitutional officer.; or 2Sec. 4. S0475-1 1st EngrossmentSF475 REVISOR SS 3.1 (7) a public employee, in good faith, reports fraud, waste, or abuse in programs of a state 3.2agency or political subdivision to the employer, any governmental body, law enforcement 3.3official, the legislative auditor, a member of the legislature, or a constitutional officer. 3.4The disclosures protected pursuant to this section do not authorize the disclosure of data 3.5otherwise protected by law. 3Sec. 4. S0475-1 1st EngrossmentSF475 REVISOR SS