Purpose of the Bill

The bill aims to strengthen the reporting requirements for state employees in Minnesota regarding fraud, theft, embezzlement, or unlawful use of public funds or property.

Main Provisions

• Discipline for Non-Reporting: State employees who know about fraudulent payment claims but do not report them will face professional consequences. Specifically, they will not be eligible for promotion or a wage increase for two years after failing to report such knowledge.

• Mandatory Reporting: Employees or officers of the state, including those at the University of Minnesota, who discover or suspect theft, embezzlement, or unlawful use of public funds or property must report these suspicions in writing to the legislative auditor and the attorney general. Reporting should not happen if it knowingly impedes an ongoing investigation.

• Penalties for Non-Compliance: Employees who fail to report such incidents will face disciplinary actions. This includes having their salary frozen for two years following the failure to report.

Significant Changes to Existing Law

• The bill amends Minnesota Statutes 2024 sections 179A.07 and 609.456 to include stricter disciplinary measures for employees who disburse fraudulent payments or fail to report suspected fraudulent activities. Previously, the penalties concerning fraudulent activities may not have been as specific or severe.

Relevant Terms

fraudulent payment, promotion, wage increase, theft, embezzlement, unlawful use of funds, disciplinary actions, legislative auditor, attorney general, report in writing, salary freeze.