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Bill > SF2856


MN SF2856

Payments termination to program participants under certain circumstances


summary

Introduced
03/20/2025
In Committee
04/01/2025
Crossed Over
Passed
Dead

Introduced Session

94th Legislature 2025-2026

Bill Summary

A bill for an act relating to state government; withholding payments to program participants under certain circumstances; proposing coding for new law in Minnesota Statutes, chapter 15.

AI Summary

This bill establishes a legal framework for state agencies to temporarily withhold payments from 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 federally funded program involving public funds), and "program participant" (any entity receiving or managing program funds). Under this legislation, a state agency head can pause payments to a participant if there is an ongoing fraud investigation, but must provide written notice within five days explaining the reason for withholding payments, noting it is temporary, and informing the participant of their right to submit evidence. The withholding of payments must end when insufficient evidence of fraud is found or legal proceedings conclude. The bill also addresses data privacy, classifying investigation-related data as confidential or protected non-public, with provisions allowing agencies to share this information with other government or law enforcement agencies to prevent fraud. Importantly, the payment withholding is considered a temporary action not subject to administrative appeal, providing state agencies with a tool to protect public funds during fraud investigations.

Committee Categories

Government Affairs, Justice

Sponsors (1)

Last Action

Comm report: To pass and re-referred to Judiciary and Public Safety (on 04/01/2025)

bill text


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