SF2856

SF2856 (Legislative Session 94 (2025-2026))

Payments termination to program participants under certain circumstances

Related bill: HF2370

AI Generated Summary

Purpose of the Bill

The bill aims to address and control fraud within government-run programs by authorizing state agencies to temporarily withhold payments to any program participants suspected of fraud. This measure seeks to protect public funds and ensure that resources are not unlawfully obtained or misused.

Main Provisions

Definitions: The bill defines important terms, such as "credible allegation of fraud," "fraud," "program," and "program participant." This helps clarify who and what can be affected by the measures in the bill.
Authority to Withhold Payments: The head of a state agency can withhold payments if there is a "credible allegation of fraud" under investigation concerning a program participant.
Notification Requirement: Agencies must notify participants within five days that payments are being withheld, the reasons for this decision, and the temporary nature of the action. Participants have the right to submit written evidence to be considered by the agency.
Temporary Action: The withholding of payments is temporary and can be lifted if there is insufficient evidence of fraud or once legal proceedings are concluded. The withholding is not open to appeal.
Data Confidentiality: During the investigation, data related to the fraud allegation and the withholding of payments is classified as confidential. This protects the integrity of the investigation and the identities involved, although it may be shared with other government or law enforcement agencies to prevent fraud or aid investigations.

Significant Changes to Existing Law

New Law Addition: This bill proposes adding new regulations to Minnesota Statutes that specifically address how allegations of fraud in public programs should be managed, focusing on withholding payments as a preventive measure.

Relevant Terms

credible allegation of fraud, fraud, program participant, withholding of payments, state agency, public funds, investigation, data classification, legal proceedings, confidential data, law enforcement

Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
March 19, 2025	Senate	Floor	Action	Introduction and first reading
March 19, 2025	Senate	Floor	Action	Referred to	State and Local Government
March 31, 2025	Senate	Floor	Action	Comm report: To pass and re-referred to	Judiciary and Public Safety

Citations

[
  {
    "analysis": {
      "added": [
        "A new definition of credible allegation of fraud incorporated."
      ],
      "removed": [
        "Specific examples of theft not detailed anymore."
      ],
      "summary": "The bill references theft as a form of fraud under section 609.52.",
      "modified": [
        "The approach to handling theft allegations in program funds context."
      ]
    },
    "citation": "609.52"
  },
  {
    "analysis": {
      "added": [
        "Criteria for fraud related to governmental submissions expanded."
      ],
      "removed": [
        "No specific forms of perjury removed."
      ],
      "summary": "The bill includes perjury under section 609.48 as an example of fraud.",
      "modified": [
        "Broadens the understanding of fraud to include multiple violation types."
      ]
    },
    "citation": "609.48"
  },
  {
    "analysis": {
      "added": [
        "Clarification on what constitutes document-related fraud acts."
      ],
      "removed": [
        "Eliminates certain examples of aggravated forgery scenarios."
      ],
      "summary": "Aggravated forgery reference categorized under fraud as per section 609.625.",
      "modified": [
        "Ensures consistency with legal precedent on forgery and fraud."
      ]
    },
    "citation": "609.625"
  },
  {
    "analysis": {
      "added": [
        "Explanation and examples of forgery types as related to fraud."
      ],
      "removed": [
        "Broader definition of forgery, omitting certain specifics."
      ],
      "summary": "The inclusion of forgery as a fraud act references section 609.63.",
      "modified": [
        "Aligns reporting of forgery with fraud investigation procedures."
      ]
    },
    "citation": "609.63"
  },
  {
    "analysis": {
      "added": [
        "Expanded parameters for what constitutes an agency relevant to fraud."
      ],
      "removed": [
        "Previous iterations had narrower scoping."
      ],
      "summary": "Definition of state agency aligns with section 15.01.",
      "modified": [
        "Standardizes agency classification for legal consistency."
      ]
    },
    "citation": "15.01"
  },
  {
    "analysis": {
      "added": [
        "New clarifications on agency roles in fraud detection."
      ],
      "removed": [
        "Prior focus solely on larger departments discarded."
      ],
      "summary": "Further defines state agency under section 15.012 regarding fraud processes.",
      "modified": [
        "Clarifies agency responsibilities and reach in fraud matters."
      ]
    },
    "citation": "15.012"
  }
]