Bill > SF2856

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.

Government Affairs, Justice

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF2856&ssn=0&y=2025