Plain English Breakdown
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SF4874 • 2026
State contracts preclusion with a person or business convicted of fraud
State contracts preclusion with a person or business convicted of fraud
Passed Legislature
This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.
Bill History
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2026-04-07
House
Comm report: To pass as amended
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2026-03-26
House
Introduction and first reading
Official Summary Text
State contracts preclusion with a person or business convicted of fraud
Current Bill Text
Read the full stored bill text
A bill for an act relating to state government; precluding state contracts with person or business convicted of fraud; proposing coding for new law in Minnesota Statutes, chapter 16C. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: Section 1. new text begin [16C.0535] CONTRACTS PROHIBITED WITH VENDORS WHO HAVE COMMITTED FRAUD. new text end new text begin Subdivision 1. new text end new text begin Contract prohibited. new text end new text begin An agency must not enter into a contract to procure goods or services with a company owned by a person that has been within the previous ten years: new text end new text begin (1) convicted of theft in violation of section 609.52, perjury in violation of section 609.48, or aggravated forgery or forgery in violation of sections 609.625 and 609.63, or convicted under substantially similar federal laws; new text end new text begin (2) convicted of an attempt or conspiracy to commit any of the crimes listed in clause (1); or new text end new text begin (3) held liable for making false claims against the state under chapter 15C or held liable for making false claims against the United States under substantially similar federal laws. new text end new text begin Subd. 2. new text end new text begin Ownership. new text end new text begin For purposes of this section, a person who owns the company is: new text end new text begin (1) for a sole proprietorship, the sole proprietor; new text end new text begin (2) for a business partnership, any one of the partners with at least a ten percent ownership interest in the partnership or a person who has control over management or contracting decisions for the partnership; or new text end new text begin (3) for a corporation, any one of the persons with at least a ten percent ownership interest in the corporation or a person who has control over management or contracting decisions for the corporation. new text end new text begin Subd. 3. new text end new text begin Definition. new text end new text begin For purposes of this section, "agency" is defined in section 16C.02, subdivision 2, and includes the Minnesota State Colleges and Universities. new text end new text begin Subd. 4. new text end new text begin Permanent exclusion. new text end new text begin A state agency must not enter into a contract to procure goods or services with a company that has been the subject of two occurrences of the conditions of subdivision 1, clause (1) or (2). new text end