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HF2813 (Legislative Session 94 (2025-2026))

Penalties for employees and officials for failure to stop fraudulent payments increased, and responsibilities for employees and officials to stop fraudulent payments enhanced.

Related bill: SF2672

AI Generated Summary

Purpose of the Bill

The purpose of the bill is to increase the responsibilities and penalties for state employees and officials in Minnesota concerning fraudulent payments. It seeks to strengthen the requirements for halting fraudulent financial activities involving public funds directed to individuals, businesses, or organizations.

Main Provisions

  • Increased Penalties: The bill proposes extending the potential prison sentence from five to seven years for public officers or employees who knowingly audit, allow, or pay claims that are fraudulent, either in whole or in part. The maximum fine is increased from $10,000 to $20,000.
  • Investigation Requirement: It mandates that no payment should be made if there is a reported misuse of public funds related to a claim until a complete investigation by the attorney general or legislative auditor confirms the claim does not violate any laws.
  • Scope of Claims: Defines "claims" broadly as any payment of public funds under various schemes, including government grants or contracts.

Significant Changes to Existing Law

  • The legislation amends existing Minnesota statutes by enhancing penalties for fraudulent claims against the state and enforcing stricter oversight and investigation requirements before public funds can be disbursed.
  • It introduces more robust deterrents for fraudulent activities involving state funds, thereby tightening financial controls within Minnesota's state government operations.

Relevant Terms

  • Fraudulent claims
  • Public funds misuse
  • Government grants
  • Imprisonment increase
  • Fine increase
  • Financial oversight

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 25, 2025HouseFloorActionIntroduction and first reading, referred toState Government Finance and Policy

Citations

 
[
  {
    "analysis": {
      "added": [
        "New requirements for reporting misuse of public funds."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill modifies the responsibilities of officials in certifying claims against the state under section 16A.41.",
      "modified": [
        "Clarifies procedure for certifying claims related to fraudulent payments."
      ]
    },
    "citation": "16A.41",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "This legislation increases penalties for permitting fraudulent claims against the government under section 609.455.",
      "modified": [
        "Increases imprisonment sentence and fines for fraudulent claims."
      ]
    },
    "citation": "609.455",
    "subdivision": ""
  }
]

Sponsors