Criminal penalties for failure to report theft, embezzlement, or unlawful use of public funds provided.

This bill requires employees and officers of the state, the University of Minnesota, and certain other organizations to immediately report in writing to the legislative auditor if they discover theft, embezzlement, or unauthorized use of public funds. The law includes an exception for situations where reporting would knowingly hinder an active criminal investigation. Failure to comply with this reporting requirement when necessary is classified as a gross misdemeanor. The new penalties will take effect on August 1, 2026, and apply to crimes committed on or after that date.