Fraud prevention, whistleblower protection included in state government policy bill that clears House

Going after fraudulent behavior through withholding payments, adding whistleblower protection and honoring the giant beaver are all aspects of the omnibus state government policy bill.

The proposal would also, in part, establish a retained savings program to encourage state agencies to innovate and identify efficiencies and cost savings, modify the state’s small business procurement program, and repeal inactive legislative commissions.

Passed 131-1 Thursday by the House, HF1837 next heads to the Senate.

Rep. Ginny Klevorn (DFL-Plymouth) is the bill sponsor. She and Rep. Jim Nash (R-Waconia) co-chair the House State Government Finance and Policy Committee.

Part of the bill would provide the state with tools to safeguard public funds.

Going after fraudulent behavior, the bill states “the head of any state agency may withhold payments to a program participant in any program administered by that agency if the agency head determines there is a credible allegation of fraud under investigation and the program participant is a subject of the investigation.”

And a government entity would be permitted to disclose any data to another government entity or law enforcement if the data relates to public program fraud.

State employees would receive better whistleblower protection when reporting state program information, including suspected fraud, to their employer, a legislator, constitutional officer, any governmental body, the Office of the Legislative Auditor or law enforcement.

State employees would be required — current law is encourage — to promptly report violations or suspected violations of laws or rules governing grants to their supervisor or manager, Department of Administration or Office of the Legislative Auditor. If the employee notifies their supervisor or manager, the commissioner or a commissioner's designee, that person must notify the legislative auditor’s office.

Other notable provisions would:

• designate Castoroides ohioensis, commonly known as the giant beaver, as the state fossil;
• designate Ursa Minor as the state constellation;
• change the name of the Office of Administrative Hearings to the Court of Administrative Hearings;
• require state agencies to post an organizational chart online that includes the names and contact information for top officials;
• require state grant recipients to post on their website the names and contact information for the grantee’s leadership and who will manage and oversee the grant;
• prohibit state entities from agreeing to certain contract terms, including automatically renewing state funds in subsequent fiscal years;
• let a retired state employee’s spouse purchase coverage for themselves under the State Employee Group Insurance Program if the retiree loses eligibility by enrolling in Medical Assistance, and has a disability that satisfies the categorical eligibility requirements of the federal Supplemental Security Income program; and
• eliminate the inactive Legislative Commission on Minnesota Sports Facilities, Legislative Commission on Housing Affordability, Driver and Vehicle Systems Oversight Committee and Legislative COVID-19 Response Commission.