More Than Three Dozen New Minnesota Laws Take Effect Saturday

(KNSI) – More than three dozen new state laws passed during the 2026 legislative session take effect Saturday, August 1st, touching everything from cryptocurrency kiosks and gift card theft to a new felony charge for grooming a minor.

Several were sponsored by lawmakers representing central Minnesota.

Republican Representative Bernie Perryman of St. Augusta sponsored two of them, both dealing with financial services. One allows banks and credit unions to store cryptocurrency for customers, but only as a custodian, not as an advisor managing the investment. The other lets customers designate a “trusted contact” their financial services provider can reach if fraud is suspected in an account. Either party can end the designation at any time.

Republican Representative Shane Mekeland of Clear Lake sponsored a change to the Petroleum Tank Release Cleanup Fund, commonly called the Petrofund. Starting Saturday, part of the fund can reimburse owners of underground petroleum storage tanks for 50% of the cost of replacing single-walled steel piping with equipment meeting current standards. Up to $4 million a year can go toward the reimbursements, for projects beginning after January 1st, 2027.

Democratic-Farmer-Labor Representative Dan Wolgamott of St. Cloud sponsored the higher education finance and policy law, which gives the Office of Higher Education additional tools to determine whether a school has committed fraud and to act on it. The office can deny student aid to applicants who provide false information, refuse inspections or have been found to have committed fraud involving government funding. The law also requires colleges to tell students in writing when developmental or remedial courses will not earn credit toward a degree, and strengthens protections for pregnant and parenting students, including priority registration.

DFL Senator Aric Putnam of St. Cloud was the Senate sponsor of a veterans law providing veteran designation for Special Guerrilla and Irregular Forces veterans who served under CIA direction in the 1961-1975 Secret War in Laos, and establishing a process for them to access many of the same benefits other Minnesota veterans receive. The law also allows honorably discharged members of the National Guard or another reserve component, along with eligible dependents, to be interred in a state veterans cemetery.

When it comes to public safety, the state’s new omnibus policy law requires prosecutors to make a good faith effort to tell a crime victim about an impending plea agreement, and judges must ask at a plea hearing whether a victim objects. The law also adds ‘forged digital likeness’ to crimes prosecutable under identity theft statutes and extends the statute of limitations to seven years for several fraud and financial crimes, including theft by swindle.

One provision of that law will not take effect as scheduled. Language making it a felony to create a prediction market, operate a wagering platform for one or advertise products promoting prediction market wagering was blocked Monday by a federal judge. U.S. District Judge Katherine Menendez granted a preliminary injunction sought by the Commodity Futures Trading Commission, the Justice Department and the platforms Kalshi and Polymarket, which argue federal law gives the CFTC exclusive authority over the contracts they offer. The ban stays on hold while the case proceeds.

Another new public safety law stiffens the penalty for impersonating a peace officer. The charge increases from a misdemeanor to a felony, carrying up to two years in prison for someone who does so intending to mislead another person but takes no further action. The maximum climbs to five years if the impersonator gets into a government building closed to the public, directs someone to act or not act, or drives a vehicle falsely marked as law enforcement.

Grooming a minor becomes a felony. The law defines it as an adult expressing a desire or intent to engage in sexual conduct with a child while deliberately building a false trusting relationship meant to manipulate the child into sexual conduct later, regardless of whether any sexual conduct occurs. By August 1st, 2027, mandated reporter training for education professionals must be updated to address how to identify signs of grooming.

Domestic violence offenders ordered to surrender firearms will have to follow a standardized transfer process, turning weapons over to local law enforcement, a federally licensed dealer or a third party who does not live with them. Courts must hold compliance hearings within 10 business days of issuing a transfer order.

The organized retail theft statute expands to cover gift cards, including stealing codes and PINs before a card is sold so thieves can drain the money once a retailer activates it.

Technology is getting new rules as well. Websites, apps and software that let users create nudified images or videos will be banned, as will advertising those services. Elon Musk’s artificial intelligence company, xAI, sued Minnesota Attorney General Keith Ellison in federal court Monday, arguing the law is too broad and infringes on free speech. No ruling has been issued, so the ban takes effect Saturday as scheduled. The measure passed the House 132-1 and the Senate 65-0.

Virtual currency kiosks are banned statewide. Operators have until December 31st, 2026, to remove the machines from any location where the public can see or reach them, and generally must pay out money or virtual currency owed to customers by that same date.

Education funding heads to the ballot this fall. Voters will decide at the 2026 state general election whether to amend the Minnesota Constitution to increase the annual distribution from the permanent school fund endowment to as much as 4.5% of the fund’s three-year average.

Food banks will be able to accept donated eggs past their quality assurance date, as long as the eggs stay in original packaging, remain refrigerated, reach the consumer within 30 days of that date and carry a label reading “Donated Eggs – Not for Resale.”

Tow trucks will be allowed to display variable message signs such as “Keep Left” or “Stalled Vehicle on Shoulder” while performing emergency services. And paddlewheel prize maximums increase to $200, with the maximum ticket price rising to $5.

A full list of the laws taking effect Saturday is available by clicking here.

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