New Minnesota laws that take effect in August: List

ST. PAUL, Minn. (FOX 9) - From crypto kiosk bans to a kratom age raise, Minnesota will see several significant new laws go into effect in August. Here's a look at everything that is changing next month.

Minnesota new laws

Each one of these laws will take effect starting August 1 in Minnesota:

Food banks and egg donations

A new law allows food banks to accept egg donations past their quality assurance date. Eggs are still good past that date – in fact, refrigerated eggs are typically safe to eat for about a month after their pack date. However, they begin to lose their flavor or quality. Donated cartons must be labeled with the distribution date, program name, and a "Not for Resale" notice. 

Modifying Statutes for Veterinary medicine

Updates statutory definitions for telemedicine and teletriage in veterinary practice. It allows licensed veterinarians to dispense prescription drugs without a prior veterinarian-client-patient relationship under specific conditions. Additionally, unused veterinary drugs can now be donated without resale to shelters, pounds, or facilities in need. 

New commerce laws

Paddlewheel prize maximums will increase to $200 and the maximum ticket price will increase to $5. The law also changes the maximum that can be deposited into the Consumer Protection Restitution Account to $10 million annually.

The law also includes changes to distributions from the Consumer Protection Restitution Account. It also repeals the Prescription Drug Affordability Advisory Council and mandates a study on home care nursing services. The law also sets new regulatory, cybersecurity, and continuity standards for securities broker-dealers and crowdfunding offerings.

The law also adds the card game hasenpfeffer to the list of social skill games for tournaments and contests.

Banks and credit unions can offer crypto custody services

The law allows banks and credit unions to provide virtual currency custody services in a nonfiduciary capacity. Institutions offering these services are required to do so in a "safe and sound manner" with written policies and procedures governing risk management, internal controls, cybersecurity, business continuity and compliance.

Helping subcontractors get paid

The "Payment Transparency Act" requires state and local public contracting agencies to provide project payment dates and amounts within seven days of a written request. Public agencies must also publish subcontractor contact details on their websites or offer an automated request system.

Customers can designate "trusted contact" with financial services

This law allows a financial services customer to designate someone a "trusted contact" who can be notified of suspected fraud in an account. The designation can be removed or withdrawn at any time.

Nudification technology access banned

This law prohibits owning, controlling, or advertising software, applications, or websites designed to "nudify" images or videos. Victims can file civil lawsuits and violators would face a penalty up to $500,000 for each unlawful access, download, or use.

Crypto kiosks banned

The new law bans crypto kiosks across Minnesota and requires operators to remove public-facing machines by December 31, 2026. Kiosk operators must return customer funds in USD or transfer them to designated crypto wallets by the end of 2026. Customers can still access their crypto through other means.

Stronger disability protections

Changes Minnesota's Human Rights Act to add language that specifies that an employer's failure to engage in a process to determine reasonable disability accommodations can be classified as an unfair discriminatory practice and therefore subject to a civil remedy.

New judicial branch policy laws

One law allows a judicial branch to publish notices solely on its website if there isn't a "qualified" local newspaper available for such notices.

Another change requires people petitioning for a dissolution or separation to notify the applicable county child support enforcement agency if either party is receiving public benefits. This only applies to cases involving children.

Finally, for orders for restitution docketed as a civil judgment, the filing will not expire until it is satisfied or if a court order is issued. Currently, civil judgments expire after ten years. 

Digital estate planning documents allowed

This law allows for some estate planning documents to be issued in digital form, including documents like trusts, power of attorney, health care directives, and documents for guardianship and probate to be electronic.

READ Act changes

The READ Act is updated by exempting new teacher prep graduates from duplicate training, adding annual reading screeners for grades 4–12, and incorporating school libraries into local literacy plans. 

The change also requires school districts to issue high school diplomas upon request to veterans of the Korean Conflict and Vietnam War who left school to serve.

Constitutional Amendment on ballot

This places a constitutional amendment on the 2026 general election ballot asking voters to increase annual school fund distributions to up to 4.5% of its average value.

Grooming a minor made a felony

This creates a felony offense for someone who engages in a deliberate pattern of behavior to manipulate a child into future sexual conduct. Mandated reporter training for educational staff must be updated by August 2027 to cover identifying, mitigating, and reporting grooming behaviors.

Fund to replace outdated piping

This allows money from the "Petrofund" – cash used to reimburse applicants for responding to a petroleum tank leak – for 50% of the cost of replacing single-walled steel piping and related equipment with piping and equipment that meets all current state and federal standards.

Gopher State One Call and electronic notices

Requires underground utility facility operators to provide electronic status updates to the Gopher State One Call notification center regarding utility marking. The notification center must then forward these electronic notices directly to excavators and land surveyors.

Tribal governments added wastewater discharge notifications.

The Minnesota Pollution Control Agency is now required to include tribal governments in the list of entities notified about wastewater discharge issues.

New licensing for health occupations

Updates licensing requirements and practice scopes across multiple health fields, including dentistry, social work, pharmacy, physical therapy, and advanced nursing. It also creates a registration system for massage therapists and Asian bodywork therapists and establishes licensure for music therapists.

Regions Hospital gets exemption on hospital construction moratorium

Regions is allowed to move forward with a project to add 85 beds.

Fraud policy changes

A framework of changes to combat fraud in higher education.

Landlord can estimate renter's utility bill

This law allows landlords to estimate final utility bills based on the previous billing cycle if lease and utility dates do not align. The law includes other provisions that prevent landlords from listing minors as defendants in an eviction action unless the minor is the sole renter and allows expedited evictions if there is an assault against the landlord.

Towns, watershed districts can self-insure

It allows local municipalities, including townships and watershed districts, the ability to self-insure.

Secret War veterans gain benefits

This law grants veteran status and state benefit access to veterans of the Special Guerrilla and Irregular Forces who served under the CIA's "Secret War" in Laos.

Clarification for Department of Veteran Affairs

A clarification that makes it clear that the department can ""support initiatives relating to veterans’ food insecurity, homelessness, suicide prevention, and other critical issues."

Organization change at Department of Veterans Affairs

Organizational changes to align with other similar-sized agencies. Also, a benefits change that means any veteran who forfeits his federal benefits will automatically forfeit his state benefits.

Public safety bill

Includes multiple public safety changes including:

• The Department of Public Safety is required to maintain a database containing emergency contact information for elected officials
• Establishes a legislative services unit within Capitol Security to assess and respond to threats
• Gives the attorney general administrative subpoena power in cases of suspected fraud
• Establishes a task force on improving responses to domestic violence crimes
• Establishes the Minnesota Clearance Grant Program to award grants to law enforcement agencies to reduce violent crime by increasing the solve rate of crimes that involve a nonfatal shooting
• Makes the assault of a hospital or clinic worker a gross misdemeanor
• Increases criminal penalties for assaulting a vulnerable adult
• Bans prediction market wagering. Both the Trump admin and Kalshi have filed lawsuits over Minnesota's ban.

Omnibus public safety bill

Another package of public safety changes includes:

• Requiring a prosecutor to make a good faith effort to inform a crime victim of an impending plea agreement and informing the victim of the eligibility for automatic expungement of any offense pleaded to or dismissed as part of the plea agreement
• Clarifying that crime victims have the right to object to a plea agreement at a plea hearing and requiring judges to ask if a victim has an objection
• Adding "forged digital likeness" to crimes prosecutable under identity theft statutes
• Extending the statute of limitations to seven years for several financial crimes and crimes involving fraud, including theft by swindle, failure to pay state funds, fraudulent certificate of title and receiving stolen property
• Specifying licensing actions the Department of Corrections can take to correct deficiencies at juvenile and adult community-based residential correctional facilities
• Requiring a law enforcement officer to make reasonable efforts to notify a petitioner before or immediately after service of a restraining order that the respondent will be or has been served
• Modifying procedures a domestic violence victim can use to be released from a shared wireless plan and obtain a new telephone number
• Allowing peace officers 14 days to make a warrantless arrest of a person accused of committing domestic assault who flees the scene of an assault
• Making it a felony to create a prediction market, operate a platform where users can make wagers in a prediction market or advertise or market financial or technological products that promote prediction market wagering

Increased penalties for impersonating a police officer

Changes brought in the aftermath of the assassination of Rep. Melissa Hortman and her husband Mark by an assailant who posed as a police officer. Impersonating a police officer is now a felony. The level of punishment also increases under the bill, with maximum penalties rising to up to ten years in prison.

Increased penalties for extortion using sexual images

This law increases criminal penalties for coercion when threatening to share private sexual images is a substantial factor in causing a victim severe harm or death. Prison sentences increase up to 10 years if the extortion leads to great bodily harm, and up to 15 years if it leads to death.

Standardizing firearm surrender in domestic violence cases

Creates a standardized process requiring domestic violence offenders under court orders to promptly surrender firearms to law enforcement, licensed dealers, or approved third parties at a law enforcement center. Compliance hearings by courts are required within ten business days of a transfer order being issued.

Organized retail theft change

This expands organized retail theft laws to include stealing gift card PINs or codes prior to purchase.

Police chemical use disclosure

Law enforcement are required to disclose information after they deploy chemical irritants (pepper spray, tear gas) inside a public building.

Safe at Home confidentiality changes

Changes were made to strengthen the state's Safe at Home program. The program is designed to protect people who are survivors of domestic violence or sexual abuse by making it easier to keep their address confidential.

Kratom age raise

The age to purchase or possess kratom is increased from 18 to 21. Kratom is a plant that can cause stimulating and sedative effects. The FDA warns that kratom and especially its synthetic derivative 7-OH, which is classified as an opioid, can cause adverse effects. Health officials also warn the substances can be addictive despite the fact they can be bought at some gas stations and smoke shops.

More powers to cut off payments to fraudsters

This removes a 60-day cap on withholding state payments to suspected fraudsters and lowers the evidence threshold to a "credible allegation of fraud that is verified by the agency."

Tow trucks can use variable message signs

This allows tow trucks providing emergency services to display electronic variable message signs such as "Stalled Vehicle on Shoulder" or "Keep Left."

Highway honors late officer and firefighter

Highway 58 in Zumbrota will be designated as "Officer / Firefighter Gary L. Schroeder, Jr. Memorial Highway." Schroeder died in 2023 by suicide after a long battle with PTSD. Schroeder was a long advocate for mental health and supporter of his fellow officers and veterans. After his retirement from the force in Zumbrota, he pushed the department to partner with a mental health provider to get support for his fellow officer who might struggle with PTSD and other mental health concerns. The city now provides those services to officers at no cost, thanks to Schroeder's efforts.