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SF2856 (Legislative Session 94 (2025-2026))

Payments termination to program participants under certain circumstances

Related bill: HF2370

AI Generated Summary

Purpose of the Bill

The bill aims to establish procedures for withholding payments to program participants when there is a credible allegation of fraud. It targets programs funded by state or federal agencies where public funds or resources are disbursed.

Main Provisions

  • Definitions:

    • "Credible allegation of fraud" includes verified fraud claims from various sources such as audits, law enforcement investigations, and other legal documents.
    • "Fraud" involves intentional deception to wrongfully gain money or property, including submitting false information to government entities.
    • "Program" and "program participant" refer to any state or federally funded program and entities or individuals receiving those funds.

  • Withholding Payments:

    • The head of a state agency can withhold payments if there's an ongoing investigation into credible fraud allegations against a program participant.
    • The agency must notify the participant within five days, stating reasons for withholding without revealing specific investigation details and explaining circumstances for ending the withholding.
    • Withholding is temporary, not subject to appeal, and must end if there’s insufficient evidence or conclusion of legal proceedings, unless further action is legally warranted.

  • Data Classification:

    • During the withholding period, related data is classified as confidential or protected nonpublic data. The agency can disclose the withholding if it won’t impact the investigation.
    • Once withholding ends, data becomes public unless otherwise classified, except the complainant's identity, which remains private.
    • State agencies may share confidential data with other agencies to prevent fraud or aid law enforcement.

Significant Changes to Existing Law

This bill introduces new legal provisions specifically for withholding payments in cases of fraud allegations, creating a structured process and defining the data's confidentiality during such proceedings.

Relevant Terms

  • Allegation of fraud
  • Withholding payments
  • State agency
  • Program participant
  • Confidential data
  • Public programs

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 19, 2025SenateFloorActionIntroduction and first reading
March 19, 2025SenateFloorActionReferred toState and Local Government
March 31, 2025SenateFloorActionComm report: To pass and re-referred toJudiciary and Public Safety

Citations

 
[
  {
    "analysis": {
      "added": [
        "Includes theft as a type of fraud against public programs."
      ],
      "removed": [],
      "summary": "The bill references existing criminal law related to theft under section 609.52.",
      "modified": []
    },
    "citation": "609.52",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "Cites perjury as a component of fraudulent activities subject to penalty."
      ],
      "removed": [],
      "summary": "The bill references existing criminal law relating to perjury under section 609.48.",
      "modified": []
    },
    "citation": "609.48",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "Classifies aggravated forgery as a form of fraud under investigation."
      ],
      "removed": [],
      "summary": "The bill mentions aggravated forgery under section 609.625.",
      "modified": []
    },
    "citation": "609.625",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "Recognizes forgery as fraudulent behavior in the context of program fraud."
      ],
      "removed": [],
      "summary": "The bill includes references to forgery under section 609.63.",
      "modified": []
    },
    "citation": "609.63",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "Identifies the treatment of data on individuals as confidential during investigations."
      ],
      "removed": [],
      "summary": "The bill refers to the classification of data concerning individuals under section 13.02, subdivision 3.",
      "modified": []
    },
    "citation": "13.02",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [
        "Classifies non-individual data as protected nonpublic during the withholding period."
      ],
      "removed": [],
      "summary": "The bill discusses the classification of data not on individuals under section 13.02, subdivision 13.",
      "modified": []
    },
    "citation": "13.02",
    "subdivision": "subdivision 13"
  },
  {
    "analysis": {
      "added": [
        "Defines which departments or agencies are considered state agencies for administering these rules."
      ],
      "removed": [],
      "summary": "The bill references state agency definitions under section 15.01.",
      "modified": []
    },
    "citation": "15.01",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "Clarifies the entities included under the term 'state agency' with further specificity."
      ],
      "removed": [],
      "summary": "The bill refers to state agency definitions under section 15.012.",
      "modified": []
    },
    "citation": "15.012",
    "subdivision": ""
  }
]

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