Bill > SF2677

This bill requires that any contract between the state of Minnesota (or a state agency) and a federal government entity for administering federal funds must include a provision allowing the state to withhold payments if state officials have a reasonable suspicion of fraud. Specifically, the state can withhold funds if it believes a recipient has intentionally used deceptive means to unlawfully obtain financial benefits. The bill proposes adding this requirement to Minnesota Statutes, Chapter 16C, and would apply to contracts executed on or after the day following its final enactment. This legislation appears designed to provide state officials with more robust protections against potential fraudulent claims and to give them a proactive tool for preventing improper use of federal funds by creating a mechanism to pause payments when suspicious activity is detected.

Government Affairs

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF2677&ssn=0&y=2025