Bill > SF3793

This bill, titled the "Fraud Isn't Free Act," establishes new requirements for state agencies when fraud is committed against a program, which is defined as any program administered by an agency and funded by the state or federal government that involves the transfer or disbursement of public funds or other public resources. When fraud is suspected, the agency head must report it to the commissioner of management and budget and the Legislative Audit Commission, and then develop a corrective action plan detailing the fraud, steps taken to prevent it, recommended law changes, and a plan to recover stolen funds. Furthermore, the agency must suspend enrollment in the affected program and dismiss any employees whose intentional or negligent actions abetted the fraud, with those discharged being prohibited from state employment for five years. The bill also mandates budget reductions for agencies found to have committed fraud, including a ten percent reduction in administrative budgets and a 25 percent reduction in the agency head's salary, which continue until fraud is recovered and responsible staff are dismissed. Additionally, budget forecasts will now need to include estimates and discussions of fraud's impact on the state budget and summarize actions taken to combat it, and the bill repeals the expiration date for an agency's authority to withhold payments due to fraud.

Government Affairs

https://www.revisor.mn.gov/bills/94/2026/0/SF/3793/