SF2674 (Legislative Session 94 (2025-2026))
Requirements for state employees to report fraud enhancement
Related bill: HF2814
AI Generated Summary
Purpose of the Bill
The purpose of this bill is to enhance the accountability of state employees in Minnesota in reporting fraudulent activities, particularly regarding the disbursement of funds. It aims to ensure more stringent consequences for failing to report or actually engaging in fraudulent activities.
Main Provisions
Disciplinary Actions for Fraudulent Payment Disbursement:
- A new subdivision is added to Minnesota Statutes section 179A.07 which stipulates penalties for employees involved in disbursing payments they know to be fraudulent.
- Employees found participating in such disbursements, even if they do not personally benefit, will be ineligible for promotions or pay raises for two years following their failure to act.
Reporting Requirements of Fraud:
- Amends Minnesota Statutes section 609.456 regarding the obligations of state employees or officers upon discovering or suspecting fraudulent activities, such as theft or embezzlement.
- Employees or officers, including those from the University of Minnesota, must report in writing to the legislative auditor and the attorney general unless such reporting would interfere with an ongoing investigation.
- Non-compliance in reporting these suspected fraudulent activities will result in disciplinary measures, including a salary freeze for two years.
Significant Changes to Existing Law
- The bill introduces new disciplinary measures for employees who fail to report fraudulent activities and for those involved in disbursing fraudulent payments. This includes freezing salaries and restricting promotions and wage increases.
- The existing requirement for reporting fraud is expanded to include more specific disciplinary consequences for failing to report, thereby strengthening the overall fraud detection and prevention mechanisms within state employment.
Relevant Terms
fraudulent payment disbursement, state employee accountability, promotion freeze, salary freeze, reporting fraud, theft embezzlement, public funds misuse, legislative auditor, Minnesota statutes amendment
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 16, 2025 | Senate | Floor | Action | Introduction and first reading | |
| March 16, 2025 | Senate | Floor | Action | Referred to | State and Local Government |
| March 19, 2025 | Senate | Floor | Action | Author added |
Citations
[
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill strengthens the requirements for state employees reporting fraud under section 609.456.",
"modified": [
"Clarifies disciplinary actions for failure to report suspected theft, embezzlement, or unlawful use of public funds."
]
},
"citation": "609.456",
"subdivision": "subdivision 2"
}
]