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Anderson: House Republicans unveil legislation to combat fraud in state programs

Thursday, January 23, 2025
 

 

ST. PAUL – House Republicans have introduced a series of bills aimed at curbing fraud, waste, and abuse in state programs.

Rep. Paul Anderson, R-Starbuck, said the intent is to increase accountability and protect taxpayers at a time fraud and waste is rampant in Minnesota. From Feeding our Future to childcare assistance, frontline worker pay, and DHS and the Department of Education, reports of fraud and waste have cost Minnesota taxpayers hundreds of millions of dollars – and counting.

“Fraud has grown into a major concern among Minnesotans and we’re working to help get it under control,” Anderson said. “Minnesota already is a high-tax state by a number of metrics, and we owe it to the people of our state to be careful stewards of their tax dollars. These bills are geared toward helping our state do a better job of tracking state program funding after years of lacking some of the oversight that’s needed.”

The first three bills House Republicans drafted in response to this issue this session include:

  • House File 1: Establishes a centralized Office of the Inspector General to lead the fight against fraud across state programs. The bill consolidates agency-based inspector general offices into a unified entity, requires agencies to halt payments when fraud is suspected, and mandates the creation of a fraud reporting hotline. Additionally, it provides funding to ensure the new OIG has the resources to be effective.
  • House File 2: Strengthens fraud prevention by mandating stricter reporting requirements for state agencies and equipping them with additional tools to identify and prevent fraudulent activities. This bill emphasizes transparency and swift action to address fraud concerns.
  • House File 3: Establishes “fraud notes,” a groundbreaking tool to assess the susceptibility of proposed legislation to fraud. Similar to fiscal notes, fraud notes would provide lawmakers with an evaluation of potential fraud risks before enacting new programs or policies.

Anderson said House Republicans anticipate each of the three bills will receive their first House committee hearings in the coming weeks.

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