This bill establishes a tax on individuals and organizations convicted of fraud, specifically targeting those who benefit from fraudulent activities related to public programs. It amends several sections of Minnesota Statutes, including the introduction of a new section that imposes a tax equal to 100% of the "program fraud amount" on any convicted party. The bill also outlines the process for data sharing between the Department of Revenue and the Financial Crimes and Fraud Section (FCFS) to facilitate tax administration and enforcement of fraud-related laws. Additionally, it includes provisions for the disclosure of tax return information to the legislative auditor, state auditor, and inspector general, ensuring that these entities can effectively carry out their oversight responsibilities.

Key amendments include the addition of a subdivision in section 270B.14 that allows for the exchange of criminal investigative data between the Department of Revenue and the FCFS, and the introduction of a new section (290.034) that details the tax on amounts obtained through fraud. The bill specifies that penalties for fraud-related tax evasion can be as high as 100% of the amounts received due to fraud, and it establishes a tax relief account for the funds collected from this new tax. The effective dates for various provisions are also included, with some sections becoming effective immediately upon enactment and others set for future dates, particularly for convictions of fraud occurring after December 31, 2025.

Statutes affected:
1st Engrossment: 270B.14, 270B.15, 270C.56, 289A.60