Purpose of the Bill

The bill aims to combat fraud within state or federally funded programs by allowing for the withholding of payments to program participants when there are credible allegations of fraud under investigation.

Main Provisions

1. Definitions:

   • Fraud: Deceitful activities to gain money or property illegally, including submitting false information.
   • Credible Allegation of Fraud: Verified assertions or reports of fraudulent activity sourced from complaints, audits, investigations, or legal documents.

2. Withholding Payments:

   • State agencies can temporarily withhold payments to program participants suspected of fraud.
   • Notification must be provided to the participant within five days, explaining the withholding without compromising any investigation details.
   • The withholding is temporary and ceases once there’s insufficient evidence or the legal process concludes.

3. Data Management:

   • Data concerning allegations and payment withholdings remain confidential during investigations.
   • Confidential data can be shared with government or law enforcement agencies to prevent further fraud.
   • Once investigations conclude, most related data become public, except for the identity of the complainant.

Significant Changes to Existing Law

• Introduces the ability for state agencies to withhold payments upon identifying credible allegations of fraud, streamlining the response to potential misuse of funds.
• Establishes procedures for maintaining confidentiality of data during investigations and allows specific disclosures to aid in law enforcement.

Relevant Terms

credible allegation of fraud, fraud, withholding payments, program participant, state agency, confidential data, public programs, law enforcement.