Bill > HF2370

This bill establishes a comprehensive framework for how state agencies can withhold payments to program participants when there is a credible allegation of fraud. The bill defines key terms such as "fraud" (which includes intentionally submitting false information to obtain undeserved benefits), "program" (any state or federal funded program involving public resources), and "program participant" (any entity receiving or managing program funds). Under the new law, the head of a state agency may temporarily withhold payments to a participant if there is a credible allegation of fraud under investigation, with the requirement to notify the participant within five days. The notice must explain the reason for withholding payments, indicate the temporary nature of the action, and inform the participant of their right to submit evidence. The bill also addresses data privacy, classifying investigation-related data as confidential or protected nonpublic, with provisions for potential disclosure to other government or law enforcement agencies if it can help prevent fraud. The withholding of payments is explicitly not subject to appeal and is meant to be a temporary protective measure until an investigation is completed or insufficient evidence of fraud is found.

Government Affairs

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF2370&ssn=0&y=2025