Violations of law related to misuse of public funds required to be reported to law enforcement.

HF 1239 requires state employees, University of Minnesota staff, and other covered officials to report suspected theft, embezzlement, or misuse of public funds to law enforcement immediately. It amends Minnesota Statutes 2024, section 609.456, subdivision 2, to mandate written reports to the legislative auditor within the same timeframe, unless reporting would interfere with an active criminal investigation. The bill directly affects public sector employees handling public funds. This creates a clear reporting pathway for financial misconduct, ensuring such cases are directed to law enforcement rather than internal resolution alone.