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SF2672 (Legislative Session 94 (2025-2026))

State government employees and officials failure to stop fraudulent payments penalties increase; state employees and officials responsibility to stop fraudulent payments enhancement

Related bill: HF2813

AI Generated Summary

Purpose of the Bill

The bill aims to reduce fraudulent payments within state government operations by increasing penalties for employees and officials who fail to stop fraudulent payments. It focuses on enhancing the responsibilities of state employees and officials to prevent such payments.

Main Provisions

  • Increased Penalties: The bill amends the Minnesota Statutes to increase penalties for state government employees and officials who knowingly audit, allow, or pay false or fraudulent claims or demands. The maximum prison sentence is raised from five years to seven years, and the maximum fine increases from $10,000 to $20,000.

  • Certification Requirements: State officials who have the authority to approve claims must certify that services or goods were provided before paying any claims against the state. This includes ensuring monthly services, like telephone services, are ongoing and correctly claimed.

  • Investigation Clause: If misuse of public funds is reported regarding a claim, the official must not disburse the funds. Payments can only be made after a complete investigation by the attorney general or legislative auditor concludes the claim does not violate laws.

Significant Changes to Existing Law

  • The bill extends the imprisonment period and increases fines for knowingly permitting fraudulent claims against the government.
  • Strengthens the investigation process for any suspected misuse of public funds by prohibiting disbursement of funds before an investigation concludes that the claim is lawful.

Relevant Terms

fraudulent payments, penalties, state government employees, investigation, misuse of public funds, audit, imprisonment, fines, certification, attorney general, legislative auditor.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 17, 2025SenateFloorActionIntroduction and first reading
March 17, 2025SenateFloorActionReferred toState and Local Government
March 20, 2025SenateFloorActionAuthors added

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The amendment modifies the certification process for claims against the state, emphasizing penalties for disbursement before completing an investigation.",
      "modified": [
        "Clarifies conditions under which claims must be certified and introduces penalties related to fraudulent claims."
      ]
    },
    "citation": "16A.41",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This amendment increases penalties related to the allowance and payment of false and fraudulent claims against the government.",
      "modified": [
        "Increases imprisonment from five to seven years and fines from 10,000 to 20,000 for false claims."
      ]
    },
    "citation": "609.455",
    "subdivision": ""
  }
]

Progress through the legislative process

17%
In Committee

Sponsors