SF475

Purpose

This bill aims to strengthen protections for whistleblowers who are public employees by expanding definitions of improper conduct (abuse, fraud, waste) and broadening the circumstances in which employees can report problems without facing retaliation. It updates Minnesota law to clarify when disclosures are protected and who may receive those disclosures.

Key Definitions Added

• Abuse: Actions that may create unnecessary costs for a state agency or political subdivision, including paying for items or services when there is no legal entitlement.
• Fraud: An intentional or deliberate act to deprive someone of property or money or to obtain property or money by deception or unfair means. It also includes submitting false information to obtain greater compensation or benefits, and failing to correct errors in records promptly after a request.
• Waste: Practices that directly or indirectly cause unnecessary costs to state programs or services, such as misusing resources.

Main Provisions

• Prohibited retaliation and discrimination: An employer may not discharge, discipline, penalize, interfere with, threaten, restrain, coerce, or otherwise retaliate against an employee for certain protected activities.
• Protected activities include: 1) In good faith reporting suspected or planned violations of law or rules to an employer or government body or law enforcement. 2) Being requested to participate in an investigation, hearing, or inquiry. 3) Refusing an order the employee reasonably believes violates law or rules, and informing the employer of that reason. 4) In good faith reporting concerns about health care quality that could place the public at risk due to a violation of legal or professional standards. 5) Communicating in good faith findings of a scientific or technical study believed to be truthful and accurate, including reports to government bodies or law enforcement. 6) Communicating in good faith information about state public services or financing of those services to a legislator, the legislative auditor, or a constitutional officer. 7) In good faith reporting fraud, waste, or abuse in programs of a state agency or political subdivision to appropriate authorities (employer, governmental body, law enforcement, legislative auditor, legislator, or constitutional officer).
• Data protection: Disclosures protected under the bill do not authorize sharing data that is otherwise protected by law.

Changes to Existing Law

• Minnesota Statutes 2024, section 181.931 is amended to add:
  • Subd.1a: Abuse defined (see above).
  • Subd.3a: Fraud defined (see above).
  • Subd.7: Waste defined (see above).
• Minnesota Statutes 2024, section 181.932, subdivision 1 is amended to specify the prohibited actions and the broad set of recipients and contexts for protected disclosures (including health care standards, scientific findings, and financing of state services).

Implications and Context

• The bill broadens whistleblower protections beyond traditional reporting to include health care quality, scientific findings, and state public service financing, and it explicitly includes disclosures to legislators, the legislative auditor, and constitutional officers.
• It clarifies that protected disclosures must be made in good faith and that retaliation for such disclosures is prohibited, with limited exceptions only where not aligned with the defined protected activities.
• It strengthens the enforcement framework by explicitly listing multiple channels and authorities to which disclosures can be made, while also reinforcing data privacy protections.

Relevant Terms - Abuse - Fraud - Waste - Whistleblower protections - Public employee - Good faith - Retaliation - Health care standards - Scientific or technical study - State public services - Financing - Legislative auditor - Legislator - Constitutional officer - Data protection / protected data - Minnesota Statutes 181.931 and 181.932