MN HF3395

Agency heads must report estimated fraud amounts to the Commissioner of Management and Budget and Legislative Audit Commission within 30 days of suspected fraud, submit corrective action plans, and suspend program enrollment until compliance requirements are met.

Agencies experiencing fraud face mandatory 10% budget reductions to administration/central office functions and 25% salary reductions for agency heads, continuing until evidence is referred to law enforcement, responsible staff are discharged, and a specified percentage of fraudulently obtained funds are recovered.

Agency heads must discharge employees whose intentional or negligent acts enabled fraud, including deputy agency heads and division directors responsible for the affected program; discharged employees are barred from state employment for five years.

State budget forecasts must include estimates and discussion of fraud's impact on the state budget and summarize administration actions taken since the last forecast to detect and prevent fraud.

Repeals the July 1, 2027 sunset provision for agency payment withholding authority under section 15.013, making that fraud-related authority permanent.