Theft of public funds stand-alone crime establishment provision

A bill for an act

relating to public safety; establishing a new stand-alone crime for theft of public

funds; providing criminal penalties; proposing coding for new law in Minnesota

Statutes, chapter 609.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

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[609.5523] THEFT OF PUBLIC FUNDS.

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Subdivision 1.

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Definitions.

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(a) For purposes of this section, the following terms have

the meanings given.

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(b) "Government entity" has the meaning given in section 13.02, subdivision 7a.

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(c) "Public funds" means money from all general, special, permanent, trust, and other

funds, regardless of source or purpose, held or administered by a government entity.

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Subd. 2.

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Acts constituting theft of public funds.

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Whoever does any of the following

commits theft of public funds and may be sentenced as provided in subdivision 3:

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(1) intentionally and without claim of right takes, uses, transfers, conceals, or retains

possession of public funds of a government entity or a third party administering a program

funded by public vendors without consent and with intent to deprive the government entity

permanently of possession of public funds;

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(2) obtains for the actor or another the possession or custody of public funds from a

government entity or a third party administering a program funded by public funds by

intentionally deceiving the government entity or third party with a false representation that

is known to be false, is made with intent to defraud, and does defraud the government entity

or third party. False representation includes but is not limited to:

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(i) a promise made with intent not to perform. Failure to perform is not evidence of

intent not to perform unless corroborated by other substantial evidence; or

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(ii) the preparation or filing of a claim for reimbursement, a rate application, or a cost

report which intentionally and falsely states the costs of or actual services provided by a

vendor; or

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(3) by swindling, whether by artifice, trick, device, or any other means, obtains public

funds or services funded by public funds from a government entity or a third party

administering a program funded by public funds.

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Subd. 3.

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Sentence.

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(a) Whoever commits theft of public funds may be sentenced to

imprisonment:

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(1) for not more than 24 years or to payment of a fine of not more than $100,000, or

both, if the value of the property stolen is more than $35,000;

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(2) for not more than 12 years or to payment of a fine of not more than $20,000, or both,

if the value of the property stolen exceeds $5,000; or

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(3) for not more than six years or to payment of a fine of not more than $10,000, or both,

if the value of the property stolen is more than $1,000 but not more than $5,000.

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(b) In a prosecution for theft of public funds, the value of the money or property received

by the defendant in violation of any of these provisions within a six-month period may be

aggregated and the defendant charged accordingly.

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EFFECTIVE DATE.

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This section is effective August 1, 2026, and applies to crimes

committed on or after that date.

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