Purpose of the Bill

The bill aims to enhance the responsibilities and penalties for state employees and officers in Minnesota concerning the reporting and handling of fraudulent activities involving public funds.

Main Provisions

• Disciplinary Actions for Involvement in Fraud: State employees who knowingly disburse funds claimed fraudulently, even if they do not personally benefit, will face disciplinary action. These employees will not be eligible for promotions or salary increases for two years following their failure to act appropriately.

• Mandatory Reporting of Fraud: The bill requires any state employee or officer who discovers or suspects theft, embezzlement, or unlawful use of public funds or property to report these activities in writing to both the legislative auditor and the attorney general, unless such reporting would interfere with an ongoing criminal investigation.

Significant Changes to Existing Law

• New Penalty for Not Reporting Fraud: Failure to report suspected fraudulent activities will now result in disciplinary measures. Specifically, the employee's salary will be frozen for two years after the failure to report the suspected fraud.

• Expansion of Reporting Obligations: The bill formalizes the obligation of employees and officers from the University of Minnesota and other state organizations to communicate the details of suspected fraud to oversight bodies, thus tightening the accountability measures in state governance.

Relevant Terms

• Fraudulent payment
• Disciplinary actions
• Theft and embezzlement
• Public funds
• Legislative auditor
• Attorney general
• Reporting obligations