HF2814

Purpose of the Bill

The purpose of this bill is to strengthen the requirements for state employees in Minnesota to report any activity related to fraud, specifically regarding the misuse of public funds.

Main Provisions

• Discipline for Disbursing Fraudulent Payments: The bill amends Minnesota Statutes to establish that any state employee who is involved in disbursing payments they know to be fraudulent, even if they do not benefit personally, will face penalties. These penalties include ineligibility for any promotion or wage increase for two years after the incident is discovered.

• Mandatory Reporting of Fraudulent Activity: State employees and officers, including those from the University of Minnesota, who find evidence or suspect instances of theft, embezzlement, or unlawful use of public funds, are required to report these in writing to both the legislative auditor and the attorney general. Reporting must be done unless it would interfere with an active criminal investigation.

Significant Changes

• The bill introduces new disciplinary actions for failing to report suspected fraudulent activities. Failing to report such incidents will result in the employee's salary being frozen for two years.

These adjustments aim to ensure transparency and accountability among state employees in handling public funds.

Relevant Terms

state employees, fraud, public funds, disbursement, legislative auditor, attorney general, theft, embezzlement, unlawful use, disciplinary actions, salary freeze, promotion ineligibility