SF3358

SF3358 (Legislative Session 94 (2025-2026))

Illegal remunerations crime establishment provision

Related bill: HF3043

AI Generated Summary

Purpose of the Bill

The purpose of this Minnesota legislative bill is to establish the crime of "illegal remunerations" related to health care programs and grants, and to amend existing laws to incorporate this new crime. This bill aims to prevent individuals from exploiting public funds by prohibiting unethical financial incentives in the healthcare and grant awards sectors.

Main Provisions and Objectives

Illegal Remunerations: The bill seeks to make it a crime for individuals to:
- Solicit, receive, offer, or provide money or anything of value to manipulate referrals or decisions related to federal health care programs, behavioral health programs, and family programs.
- Engage in unethical practices to influence the awarding of grants, such as offering kickbacks or falsifying information.
Penalties:
- If the value involved in the illegal activity exceeds $5,000, offenders could face up to ten years in prison or a fine up to $20,000, or both.
- For values of $5,000 or less, penalties include up to five years in prison or a fine up to $10,000, or both.
Exceptions: The bill specifies certain exceptions, like legitimate payments exempt under federal laws, and incentives offered to employees or for child care assistance as specified in related Minnesota statutes.
Aggregation and Prosecution: Illegal activities conducted over a six-month period can be aggregated for prosecution, allowing charges to be brought in any county where any of the offenses occurred.

Significant Changes to Existing Law

Amendment of Existing Statutes: The bill amends Minnesota Statutes 2024 section 256B.12, updating legal representation procedures for cases involving wrongful payments.
Criminal Classification of Violations: It introduces specific consequences for providing false claims related to grants, linking these actions to fraud statutes.
Clarification of Legal Terms: Defines terms like “grant” and “political subdivision” to avoid ambiguities in enforcement.

Relevant Terms

illegal remunerations, federal health care program, behavioral health program, family program, granting of awards, kickbacks, false claims, aggregation, fraudulent claims.

Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
April 08, 2025	Senate	Floor	Action	Introduction and first reading
April 08, 2025	Senate	Floor	Action	Introduction and first reading
April 08, 2025	Senate	Floor	Action	Referred to	Judiciary and Public Safety

Citations

[
  {
    "analysis": {
      "added": [
        "Clarifies roles of attorney general and county attorney in prosecuting wrongful payments."
      ],
      "removed": [
        ""
      ],
      "summary": "Modifies the legal representation requirements for state and local agencies under section 256B.12.",
      "modified": [
        "Updated authority for attorneys to prosecute and recover payments."
      ]
    },
    "citation": "256B.12",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "Relates to modifications in the application of theft under section 609.52 subdivision 2.",
      "modified": [
        "Includes a reference for prosecution under section 256B.12 relating to wrongful payments."
      ]
    },
    "citation": "609.52",
    "subdivision": "subdivision 2"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "Amended to ensure coverage of illegal remunerations under section 256B.12.",
      "modified": [
        ""
      ]
    },
    "citation": "609.466",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "This reference provides federal exceptions related to illegal remunerations.",
      "modified": [
        "References federal exceptions for illegal remunerations in subdivision 4."
      ]
    },
    "citation": "42 U.S.C. § 1320a-7b",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "Provides exceptions for payments under federal health care programs.",
      "modified": [
        "Referenced as exemption from liability for federal health care payment within subdivision 4."
      ]
    },
    "citation": "42 U.S.C. § 1001.952",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "Defines claims that can be considered false or fraudulent under section 15C.02.",
      "modified": [
        "Included to address false claims related to illegal remunerations."
      ]
    },
    "citation": "15C.01",
    "subdivision": "subdivision 2"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "Addresses false or fraudulent claims related to illegal remunerations.",
      "modified": [
        "Referenced in relation to claims resulting from violations of illegal remunerations."
      ]
    },
    "citation": "15C.02",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "Considers convictions related to state grant agreements as criminal offenses.",
      "modified": [
        "Specifies effects of a conviction under subdivision 3 on state grant agreements."
      ]
    },
    "citation": "16B.991",
    "subdivision": "subdivision 1"
  }
]