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HF2813 (Legislative Session 94 (2025-2026))

Penalties for employees and officials for failure to stop fraudulent payments increased, and responsibilities for employees and officials to stop fraudulent payments enhanced.

Related bill: SF2672

AI Generated Summary

Purpose of the Bill

The bill aims to strengthen accountability among Minnesota state government employees and officials by enhancing their responsibilities in preventing fraudulent payments. It also seeks to increase penalties for those who fail to stop fraudulent transactions involving state funds.

Main Provisions

  • The bill amends two sections of the Minnesota Statutes (2024):
    1. Section 16A.41, subdivision 1: Clarifies that if an employee or official becomes aware of a potential misuse of public funds, they must not disburse the funds until the claim has been cleared by an investigation conducted by the attorney general or the legislative auditor.
    2. Section 609.455: Specifies that public officers or employees who knowingly approve, allow, or pay false or fraudulent claims against the government can face increased penalties.

Significant Changes

  • Increased Penalties: The maximum imprisonment for officials involved in fraudulent payments is increased from five years to seven years. The maximum fine is increased from $10,000 to $20,000.
  • Enhanced Oversight: The bill mandates a thorough investigation before any funds are disbursed if there is a report of misuse, ensuring stricter oversight of public funds.

Relevant Terms

  • Fraudulent payments
  • Public funds
  • State government accountability
  • Financial oversight
  • Government officials
  • Penalties for fraud
  • Misuse of public funds

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 25, 2025HouseFloorActionIntroduction and first reading, referred toState Government Finance and Policy

Citations

 
[
  {
    "analysis": {
      "added": [
        "A requirement to wait for investigation completion if misuse of funds is suspected."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill amends responsibilities related to the certification of claims against the state as outlined in section 16A.41.",
      "modified": [
        "Clarifies conditions under which claims must be certified."
      ]
    },
    "citation": "16A.41",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "This bill increases penalties for allowing or preventing false and fraudulent claims against the government as defined in section 609.455.",
      "modified": [
        "Increases maximum imprisonment from five to seven years and fines from $10,000 to $20,000."
      ]
    },
    "citation": "609.455",
    "subdivision": ""
  }
]

Sponsors