This bill amends various provisions of Minnesota Statutes concerning false claims against the state, aiming to strengthen the legal framework for addressing fraudulent activities. It introduces a new definition for "ownership or investment interest," clarifying the criteria for financial stakes in entities involved in fraudulent claims. The bill expands liability under section 15C.02 to include knowingly making false records or statements that lead to the underpayment of unemployment insurance taxes, and it establishes new penalties for individuals who fail to disclose known violations. Additionally, it modifies the roles of prosecuting attorneys, allowing the attorney general to intervene in cases involving political subdivisions upon request, and clarifies the process for unsealing complaints.

Moreover, the bill enhances protections against retaliatory actions for employees, contractors, or agents reporting violations, specifying relief measures such as reinstatement and back pay. It defines "lawful acts" to include participation in investigations and sharing information about potential false claims, while ensuring law enforcement retains investigative authority. The bill also outlines the distribution of net proceeds from actions under this chapter, creating a false claims account and detailing fund allocation. It mandates the attorney general to report on metrics related to complaints and interventions and allows the state auditor to share data on potential false claims. The act is set to take effect on August 1, 2026, and will apply retroactively to claims made since January 1, 2017.

Statutes affected:
Introduction: 15C.01, 15C.02, 15C.03, 15C.05, 15C.06, 15C.11, 15C.145, 15C.15, 15C.16