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MN SF3793
Bill
Status
2/23/2026
Primary Sponsor
Michael Kreun
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AI Summary
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Requires state agencies to report suspected fraud within 30 days to the Commissioner of Management and Budget and Legislative Audit Commission, including estimated amounts fraudulently obtained
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Mandates corrective action plans detailing the fraud summary, staff accountability measures (including dismissal, discipline, or training), recommended law changes, and recovery plans
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Suspends program enrollment when fraud is detected until certification requirements are met, and requires discharge of employees whose intentional or negligent acts enabled the fraud, with a 5-year ban on state employment
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Imposes automatic budget reductions when fraud is reported: 10% cut to agency administration/central office and 25% cut to agency head salary for current and subsequent biennium
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Requires state budget forecasts to include estimates of fraud's impact on the state budget and administration actions to detect/prevent fraud; repeals the July 1, 2027 sunset date on agency payment withholding authority for suspected fraud
Legislative Description
Fraud Isn't Free Act establishment
Last Action
Referred to State and Local Government
2/23/2026