Transcript Highlights:

• The SR contract outlines termination for fraud.
• and detect any fraud or abuse within the SR and VPK programs.
• ELCs are required by law to report any instances of fraud or abuse to the DOE OIG.
• As previously mentioned, the number one goal Mitigating fraud.
• I will say just briefly in terms of the fraud restitution is that when we do see that fraud has resulted

Summary: The Pre-K through 12 Budget Subcommittee met with a quorum and first heard House Bill 731, which would address coach and extracurricular sponsor compensation and change how student-athlete transfer eligibility is determined. The bill would allow local school boards to adopt policies letting booster clubs or similar associations support coaches and activity sponsors, and it would let superintendents treat certain coaches and athletic leaders as administrative personnel for compensation purposes. It would also shift eligibility decisions for transferred student-athletes to the governing athletic association and require clearer bylaws and timelines for those determinations. Members raised questions about booster club oversight, pay equity, the new athletic administrator language, and safeguards against abuse or unequal treatment, while supporters argued the bill would help retain coaches and better support student athletics. The bill was debated and then reported favorably by roll call vote. The committee then received presentations from the Department of Education’s Division of Early Learning and the Florida Association of Early Learning Coalitions on school readiness fraud prevention and mitigation. Speakers explained that Florida’s school readiness program pays providers based on verified attendance rather than enrollment, requires daily parent sign-in/sign-out records, and uses multiple layers of oversight including coalition anti-fraud plans, annual audits, programmatic monitoring, DCF inspections, and referrals to state fraud investigators when needed. They emphasized that Florida delayed implementation of a federal rule that would have required prospective enrollment-based payments, and said the state’s current system makes fraud difficult. Members asked about military and grandparent guardianship situations, audit findings, and the number of fraud referrals; presenters said fraud cases are relatively limited and that the existing controls and public enforcement act as deterrents. The meeting ended after members thanked the presenters and the committee adjourned without further business.

Transcript Highlights:

• Is the OLA allowed to see this<00:17:42.800> report? this report? this report?
• O'Malley report. O'Malley report.
• who want to report fraud to leadership, like yourself, the commissioner.
• forward and reporting fraud, and yet uh forward and reporting fraud, and yet uh leadership<00:38
• . fraud. fraud.

Keywords: 1187, senate, all

Transcript Highlights:

• and protect against fraud, including responsiveness to employee reports, which we believe are currently
• and protect against fraud, including responsiveness to employee reports, which we believe are currently
• and protect against fraud, including responsiveness to employee reports, which we believe are currently
• The department has processes to report and protect against fraud, including responsiveness to employee
• reports, which we believe are currently effectively coordinated within the OA reporting process.

Bills: HF627, HF474, HF361, HF1837

Keywords: HF627, fiscal note, fiscal notes, Minnesota Legislature, state government, committee procedure, ranking minority member, minority party, standing committee, Ways and Means, Finance Committee, legislative process, budget analysis, fiscal impact, Minnesota Statutes 3.98, committee chair, legislative transparency, HF474, Hubert H. Humphrey, Henry Mower Rice

Transcript Highlights:

• And we have a fraud reporting portal online today as well as anybody can call our customer contact center
• And we have a fraud reporting portal online today as well as anybody can call our customer contact center
• reporting portal um online have a fraud reporting portal um online today<00:18:40.799> as<00:
• we you know we have a we have a fraud we you know we have a we have a fraud reporting<01:14:01.600
• trigger an investigation, right, whether through our fraud reporting, whether through an employer item

Keywords: 1183, house

Transcript Highlights:

• They do fraud monitoring and chargebacks, and we can talk about chargebacks with Keeley and fraud.
• Card fraud is systemic and growing.
• According to the FTC, consumers reported losing more than $12.5 billion to fraud in 2024, a 25% increase
• We heard a lot about fraud.
• It's what lets fraud protection work. It's what lets fraud protection work in real time.

Keywords: 995, all

Summary: The Special Legislative Commission on the Future of Payments and Sales Transactions by Credit Card and the Impacts for Small Businesses held a public hearing focused on interchange fees, sales tax and tip processing, chargebacks, fraud, surcharging, and the broader future of payment systems. Chair Paul Feeney and co-chair Rep. Jamie Murphy opened by explaining the commission’s charge and inviting testimony from small businesses, industry groups, banks, and policy experts. Representative Sean Garballey testified first, arguing that Massachusetts tourism depends on universal card acceptance and stable interchange, and urging the commission not to disrupt the current system ahead of major events expected to bring millions of visitors to the Commonwealth. A large portion of the hearing featured independent restaurant owners and advocates describing thin margins and the burden of paying percentage-based processing fees on sales tax and tips that are not business revenue. Jen Ziskin, Kristen Canty, Nancy Cushman, Kerry Colzer, and others said restaurants often operate on very small profits and that processing fees on taxes and gratuities can amount to tens or hundreds of thousands of dollars annually. Ryan Lotz also urged reforms to chargebacks, including refunding chargeback fees when merchants prevail, requiring consumers to contact businesses before disputing charges, and limiting repeat abuse. Commission members pressed witnesses on whether tax and tip amounts could be separated at the point of sale, and several witnesses said current consumer card systems do not transmit that level of detail. Testimony from credit union, banking, and payments representatives largely opposed state-level changes that would carve out taxes or tips from interchange, warning of compliance burdens, higher costs, reduced rewards, and possible effects on fraud protection and access to credit. Alex Verine of America’s Credit Unions and Deb Peters and Keely McEwen of the Electronic Payments Coalition said the payment system is complex, that interchange funds fraud prevention and network infrastructure, and that new state mandates could create operational and legal uncertainty. Dan Swanson argued states have authority to act and pointed to Illinois litigation and federal court rulings, while Julian Morris and Brad Popolado emphasized the benefits of card acceptance, the decline of cash, and the need to consider other payment methods and check fraud as well. Several witnesses discussed international payment systems, instant payments, and QR standards as possible future directions. The chairs and members engaged in extended back-and-forth with witnesses about whether Massachusetts could exempt sales tax from swipe fees, whether surcharging should be revisited, and whether vendor compensation or other targeted relief might be more workable than broad changes to interchange. No votes were taken. At the close of the hearing, the chairs said the commission would hold one additional public hearing date to be determined, after which members would begin developing next steps and a report.

Transcript Highlights:

• Fraud prevention relies on those that report program concerns.
• who make good faith reports on suspected fraud,<00:08:36.880> waste,<00:08:37.120> and<
• Data from the sexual assault data report indicated a decline in reports from 419 in the 2020 report to
• CO 19 report to 316 in the 2024 report.
• /c><00:48:00.480> but reported in the 2021 report, but reported in the 2021 report, but institutions

Keywords: 1187, senate, all

Transcript Highlights:

• I move House Bill 1110 and the committee report to the finance report. Thank you, Madam Chair.
• older adult has been impacted by fraud. older adult has been impacted by fraud.
• impacted by um the fraud and abuse. impacted by um the fraud and abuse.
• on the committee report?
• vote on the committee report. vote on the committee report.

Keywords: 981, all

Summary: The meeting included routine floor business, announcements, and several committee notices, followed by consideration of resolutions and third-reading votes on multiple bills. Members also recognized visiting groups, including North Glenn High School students, NFIB members for Small Business Day at the Capitol, Parker Day participants, and advocates for intellectual and developmental disabilities. A resolution honoring Youth Mental Health Action Day was taken up and adopted 62-0, with sponsors emphasizing the shortage of mental health services in many Colorado counties and the need to support children’s mental health. The House then passed several bills on third reading. House Bill 1189, concerning property held by a community property spouse under the Uniform Community Property Disposition at Death Act, passed 61-1. House Bill 1039, concerning requirements for municipal jails, passed 46-16. House Bill 1044, aimed at improving equity in maternal health, passed 49-13. House Bill 1135, increasing transparency about chemicals used in certain hair products, passed 42-20. House Bill 1134, addressing conditions for municipal court defendants, passed 43-19. House Bill 1113, concerning modifications to election laws, passed 41-22. The House also heard a lengthy debate on House Bill 1110, which would allow financial institutions to place temporary holds on suspicious transactions involving vulnerable adults and provide related protections. Supporters said the bill would help prevent elder financial exploitation and give banks and credit unions tools to intervene. Opponents argued the bill’s liability protections for financial institutions were too broad and could weaken protections for victims. Representative Garcia offered amendment L007 to strike the immunity provision, and several members spoke for and against the amendment, but the transcript cuts off before any vote on the amendment or final action on the bill.

Transcript Highlights:

• And to report workers' compensation fraud in Louisiana, individuals can contact the Louisiana Workforce
• The LWCC also offers 24-hour claims reporting hotlines for reporting injuries and potential fraud.
• And to report workers' compensation fraud in Louisiana, individuals can contact the Louisiana and submit
• The LWCC also offers 24-hour claims reporting hotlines for reporting injuries and potential fraud.
• And if somebody can come back, you know, lines for reporting injuries and potential fraud. Yes.

Bills: SR145, SR146, SR147, SR148, SCR78, SCR12, HB302, HB221, HCR58, HB59, HB89, HB153, HB243, HB335, HB342, HB350, HB407, HB451, HB513, HB595, HB682, HB688, HB690, HB730, HB762, HB802, HB816, HB940, HB944, HB1003, HB1011, HB1029, HB1053, HB1058, HB1062, HB1064, HB1079, HB1084, HB1098, HB1161, HB1189, HB1203, HB1215, HB1247, HB1248, HB1251, HB1253, HB1257, HB1258, SCR3, SB393, SB401, SB415, SB426, SB435, SB487, SB488, SB523, SB56, SB163, SB341, SB504, SB322, SR125, SCR54, SCR59, SCR9, SCR58, SB35, SB65, SB215, SB246, SB249, SB269, SB282, SB296, SB323, SB363, SB369, SB474, SB490, SB492, SB500, SB514, HCR27, HCR28, HCR66, HCR67, HCR72, HCR5, HCR32, HCR49, HCR50, HCR53, HCR60, HCR62, HCR64, HCR68, HCR78, HCR81, HCR86, HCR97, HCR102, HCR31, HCR47, HCR3, HB1095, HB1096, HB1103, HB1129, HB1154, HB1166, HB1195, HB1230, HB316, HB511, HB799, HB1039, HB12, HB66, HB145, HB167, HB196, HB213, HB218, HB222, HB256, HB291, HB326, HB352, HB401, HB430, HB433, HB434, HB448, HB456, HB476, HB481, HB487, HB492, HB549, HB579, HB608, HB621, HB624, HB626, HB632, HB637, HB656, HB722, HB745, HB804, HB818, HB821, HB833, HB864, HB867, HB874, HB893, HB909, HB951, HB968, HB969, HB978, HB979, HB988, HB989, HB1001, HB1005, HB1007, HB1024, HB1032, HB1038, HB1050, HB1051, HB1056, HB1059, HB1077, HB1080, HB1081, HB1086, HB1108, HB1112, HB1153, HB1172, HB1173, HB1175, HB1192, HB1193, HB1204, HB1218, HB1242, HB1244, HB1249, HB1252, HB1254, HB1, HB2, HB3, HB42, HB45, HB71, HB79, HB158, HB160, HB169, HB227, HB251, HB289, HB312, HB313, HB314, HB330, HB383, HB394, HB410, HB429, HB769, HB971, HB983, HB1017, HB1126, HB1234, HB1235, HB17, HB27, HB36, HB41, HB47, HB73, HB126, HB133, HB140, HB159, HB166, HB205, HB211, HB226, HB259, HB271, HB308, HB310, HB324, HB337, HB351, HB399, HB403, HB571, HB712, HB723, HB726, HB740, HB750, HB759, HB812, HB844, HB966, HB1006, HB1009, HB1018, HB1036, HB1107, SB29, SB42, SB43, SB78, SB208, SB217, SB274, SB300, SB379, SB382, SB387, SB441, SB449, HB74, HB134, HB258, HB359, HB468, HB956, HB1117, SB149

Keywords: critical infrastructure, foreign adversaries, homeland security, task force, Louisiana Senate, military bases, oil and gas, refining facilities, energy generation, industrial manufacturing, agriculture, food supply, biosecurity, agroterrorism, Chinese Communist Party, People's Republic of China, Russia, Russian government, FBI, Secret Service

Transcript Highlights:

• How big of a problem is this type of consumer fraud in Minnesota?
• How big of a problem is this type of consumer fraud in Minnesota?
• How big of a problem is this type of consumer fraud in Minnesota?
• How big of a problem is this type of consumer fraud in Minnesota?
• <00:05:15.000> over 2024 and um motans reported over 2024 and um motans reported over 22,000

Keywords: 1187, senate, all

Transcript Highlights:

• to us and we will accept those reports to us and we will accept those reports no<00:34:53.200>
• um and so when we receive those reports um and so when we receive those reports we<00:35:01.240>
• fraud that we would refer to the fraud fraud that we would refer to the fraud unit<00:56:26.680>
• One question I have is when we don't have mandated electronic attendance reporting for fraud purposes
• One question I have is when we don't have mandated electronic attendance reporting for fraud purposes

Keywords: 1183, house

Transcript Highlights:

• We bring forward to you the issue of mandatory insurance fraud reporting. Hi, Mr.
• We bring forward to you the issue of mandatory insurance fraud reporting.
• We bring forward to you the issue of mandatory insurance fraud reporting.
• new model of insurance fraud reporting. new model of insurance fraud reporting.
• And particularly, we really need insurance fraud reporting on our books within statute.

Keywords: 916, all

Summary: The chairman opened by explaining that the committee would hear proposed interim topics and then rank them by written submissions rather than debating them one by one. The Public Service Commission presented two topics: an educational session on small water utilities, citing maintenance needs, water-quality compliance, and difficulty accessing capital, and a review of civil penalties for pipeline safety violations because Wyoming’s statutory penalties are far below federal levels and could affect compliance and funding. Members and outside presenters then outlined a range of additional topics. Representative Campbell proposed work on fire protection districts and EMS districts, focusing on financial stability, mill levies, and possible county authority to combine districts and levies. He also raised public records at meetings, corporate filing fees, and fraudulent corporate filings. The Community College Commission proposed updating annexation statutes so communities can join community college districts more easily, especially where current mill-levy rules create funding issues. Senator Crago supported the fraudulent corporate filings topic and noted related technology-based solutions and overlap with blockchain issues. Other proposals included CPA “Pathways” licensing changes to address a shortage of accountants, a review of public meetings and public records laws, continuation of the electricity study with emphasis on grid reliability and large-load capacity constraints, and a broader review of the public meetings and records act. Ashley Harpstreith of the Wyoming Association of Municipalities supported extending municipal audit deadlines and described a statewide shortage of auditors and CPAs. Healthy Wyoming proposed studying health coverage options for low-income working adults, including state-sponsored or cooperative models. Representative Chestek proposed making most nonpartisan county offices elected on a nonpartisan basis. No votes or final selections were taken in the portion provided; the committee mainly heard testimony and discussed whether topics should be assigned to this committee or another one.

Transcript Highlights:

• has a high level of fraud in it? has a high level of fraud in it?
• I listened to a DHS employee who just said that, you know, a lot of her fellow employees reported fraud
• Taylor, who came out with the fraud report. The one who was appointed by the governor."
• This affects fraud. Natada. Correct. This has no impact on fraud.
• Everything has been fraud.

Keywords: 1187, senate, all

Transcript Highlights:

• You have seen daycare fraud.
• The clerk will report the bill.
• The clerk will report the bill. An act relating to agriculture, modifying financial reporting.
• From the explicit fraud, the type of fraud that occurred in the Ashby Elevator.
• The clerk will report the bill.

Transcript Highlights:

• fraud frauded is um aging individuals. fraud frauded is um aging individuals.
• their family I was, you know, fraud their family I was, you know, fraud frauded<00:05:05.520>
• devastating fraud. devastating fraud.
• <00:26:50.960> law never report the fraud to local law never report the fraud to local law
• As I said in my testimony, we are aware of over a million dollars of reported crypto kiosk fraud losses

Bills: HF3642, HF2700, HF3615

Keywords: virtual currency, kiosks, prohibition, customer payouts, cryptocurrency regulation, consumer privacy, data privacy, health data, sensitive data, Minnesota Consumer Data Privacy Act, personal data, data broker, targeted advertising, geofencing, location tracking, health care privacy, patient privacy, consent, minor privacy, children's privacy

Summary: The Commerce Finance and Policy Committee met on House File 3642, which would prohibit virtual currency kiosks in Minnesota. The bill was laid over, and the committee adopted a DE1 author’s amendment. Chair Kaggel and Representative Perryman described the measure as a response to widespread scams using crypto kiosks, especially against older adults and other vulnerable people, and said they would continue working with the Department of Commerce and other stakeholders. Testimony from law enforcement and advocates strongly supported the ban. A St. Cloud police sergeant and a Woodbury detective described cases in which victims lost large sums, said the current safeguards and refund rules are being bypassed, and argued that the kiosks are difficult to investigate because funds move quickly and often overseas. An AARP Minnesota volunteer also supported the bill, saying kiosks are a preferred tool for scammers and that existing protections have not kept pace with the problem. The Department of Commerce said it strongly supports the bill and reported that it has received 120 complaints over three years involving nearly $1 million in reported losses, with 2025 the worst year so far. The main opposition came from CoinFlip’s general counsel, who argued that the problem is fraud generally, not kiosks themselves, and said Minnesota already has consumer protections, including refunds for eligible victims. He urged stronger regulation rather than a ban, citing blockchain analytics, hold periods, and 24-hour customer service as alternatives. Committee members then asked questions about how long kiosks have operated in Minnesota, how many there are, who owns them, and the scale of losses; Commerce said there are hundreds statewide, operated by a variety of companies, and that reported losses are likely undercounts.

Transcript Highlights:

• of tax fraud.
• So there's tax fraud and there's program fraud. We have really dealt with tax fraud.
• fraud uh types of tax fraud fraud uh types of tax fraud uh<01:48:52.639> there<01:48:52.880
• So there's tax fraud and there's<01:50:33.920> program<01:50:34.400> fraud.
• fraud into the future. fraud into the future.

Keywords: 1187, senate, all

Transcript Highlights:

• . fraud.
• We also can't investigate or prosecute fraud in obtaining benefits, also known as welfare fraud, or fraud
• and, frankly, our consumer fraud, all fraud, but the fraud that's actually, um, the ongoing programs
• and, frankly, our consumer fraud, all fraud, but the fraud that's actually, um, the ongoing programs
• and, frankly, our consumer fraud, all fraud, but the fraud that's actually, um, the ongoing programs

Keywords: 1183, house

Transcript Highlights:

• investigating um and prosecuting fraud investigating um and prosecuting fraud and<00:04:17.359><
• <00:07:04.199> Um fraud and misuse in our programs. Um fraud and misuse in our programs.
• These expand governor's fraud package.
• This improves governor's fraud package.
• /c> self-service, or fraud to um to report self-service, or fraud to um to report that<00:11:00.880><

Keywords: 919, house, all

Summary: The committee heard House File 2260, a Judiciary Committee clone of portions of the larger DHS policy bill, and adopted the A1 amendment, which was described as largely technical but also incorporating changes from the related human services bill. The bill was presented as covering several DHS-related policy areas, including background studies transparency, anti-kickback provisions for medical assistance and child care assistance, and personal data protections for human services judges. The amendment also added a number of provisions related to direct care and treatment, competency restoration billing and data sharing, fraud enforcement tools, behavioral health fund eligibility, and clarifications to prior law. Testimony from DHS Office of Inspector General legislative director Ardian Diddy emphasized that the bill would improve transparency in background studies, update investigative and arrest data access, extend a limited set-aside to similar provider types, and correct an effective-date error from last session. He also said the anti-kickback language would mirror federal Medicaid law for medical assistance and create a state-level prohibition for CCAP, giving DHS and law enforcement more tools to investigate fraud and misuse. Additional provisions would add human services judges to existing personal data protections for judicial officials. Diddy also explained amendment sections from the governor’s fraud package, including authority to act against entities convicted of fraud or theft, data-sharing improvements, and a disqualification from management and billing positions. Members raised questions about possible conflicts of interest involving DHS employees with outside LLCs and about the need for stronger safeguards against fraud. The chair and other members referenced recent fraud cases and said the bill would help prevent similar abuses. Christy Grumman of DHS testified on the judge privacy section, saying there are about 35 human services judges and describing a recent incident in which a judge received violent threats serious enough to require the family’s temporary relocation by the State Patrol. Representative Hudson supported the anti-kickback provisions as a needed codification of agency authority. The committee then approved the amended bill and recommended it be re-referred to the Committee on Public Safety, Finance, and Policy.

Transcript Highlights:

• In that report, how many cases were in that report, Representative Garrow? How many cases?
• Of individual criminality or fraud? Yes. Yes. Yes. Of individual criminality or fraud. Yes.
• It is the individual supervisor based on reporting period. So that way, and they report monthly.
• . ...again, and in the report, the division indicated that they had seen a decrease in fraud since we've
• By calling it fraud, sometimes...

Summary: The committee first took up CS for CS for CS for SB 462 on transportation, adopting a substitute amendment that would require counties receiving transportation surtax proceeds to report how the money is used, prohibit certain airport fees tied to collegiate flight training, create a Sarasota-Manatee Airport Authority pilot program, and fund a traffic signal modernization program with $10 million annually from the State Transportation Trust Fund. The amendment also removed several provisions from the bill, including a sales tax transfer to the trust fund, a bid protest-related contracting requirement, and repeal of the Metropolitan Planning Organization Advisory Council. A late-filed amendment was tabled, and the bill was reported favorably. The committee then heard CS for CS for SB 628, “Lucy's Law,” on boating safety, which would strengthen penalties for leaving the scene of a vessel accident and reckless vessel operation. Lucy’s parents gave emotional testimony in support, describing the fatal 2022 boating crash and urging stronger accountability. The sponsor withdrew pending amendments, and the bill was reported favorably. CS for CS for SB 700, the Florida Farm Bill, was next; the strike-all amendment covered a broad range of agriculture-related changes, including water fluoridation restrictions, labeling rules, drone restrictions over farmland, disaster recovery programs, an honest services registry, FFA-related provisions, and agricultural land preservation. Testimony included support from agricultural and gun-rights groups, opposition from banking, dental, and local-government advocates, and a lengthy public debate over fluoridation and financial discrimination. The committee adopted the amendment and reported the bill favorably. SB 796 on general permits for distributed wastewater treatment systems was reported favorably with little debate. The committee then took up CS for SB 1618 on K-12 education, adopting a delete-all amendment that combined a wide range of education provisions, including VPK flexibility, agriculture education, financial literacy, reading intervention requirements, teacher assignment reporting, restrictions on spending public funds on political or social activism, postsecondary and workforce-related changes, and other school and college system updates. Several speakers opposed the activism-related funding restriction, while the sponsor said the bill was intended to keep publicly funded schools focused on education; the bill was reported favorably. Finally, the committee considered SB 7016 on initiative petitions, adopting a strike-all amendment that would sharply tighten petition circulation rules and increase penalties. The proposal would require circulators to be Florida residents and U.S. citizens, impose training and registration requirements, shorten petition submission deadlines, require more identifying information on petition forms, limit sponsors to one amendment per election cycle, and create new enforcement and investigation triggers, including a 25% invalid-signature threshold. Sponsors argued the changes were needed to address fraud and protect the integrity of constitutional amendment petitions, while senators raised concerns about due process, public-records issues, burdens on volunteers, and the impact on voters and sponsors. The bill was not reported in the portion provided, and the discussion remained ongoing at the end of the transcript.

Transcript Highlights:

• How about the fraud question you've heard all of us asking for? Is fraud accounted in the budget?
• the fraud could be having on the budget? the fraud could be having on the budget?
• <00:10:23.519> They're and prevent and stop fraud. They're and prevent and stop fraud.
• bill is a panacea to stop fraud, okay? bill is a panacea to stop fraud, okay?
• Every single dollar of fraud that fraud.

Keywords: 919, house, all

Summary: House and Senate DFL leaders Erin Murphy and Zach Stevenson discussed Minnesota’s budget forecast, arguing that rising health care costs, federal policy changes under Trump and congressional Republicans, and cuts to health care, food support, and clean energy are worsening the state’s fiscal outlook and household affordability. They said the state’s economy remains strong but is being undermined by higher premiums, tariffs, canceled projects, and shifting costs to state and local governments, while Republicans are prioritizing tax cuts for the wealthy and large corporations over working families. A major topic was fraud prevention and oversight. In response to questions, the leaders said every dollar of fraud is unacceptable, but that the budget forecast is not the right tool to measure it. They pointed to existing efforts, including BCA investigators, a governor-ordered and legislature-authorized audit, stronger laws passed in 2023-2025, and work on an independent inspector general proposal. They said the House DFL supports stronger anti-fraud measures and wants fraudsters held accountable, while also protecting services for vulnerable Minnesotans. The leaders also defended prior DFL budget decisions, saying the 2023 legislative session ended with a $5 billion surplus and rejecting Republican claims that DFL spending drained the state’s coffers. They said Minnesota must still balance its budget, but that the structural deficit is being driven largely by rising medical assistance and health care costs, which they argued are tied to federal actions and broader health system instability. No votes were taken in this transcript; it was a press availability with questions and responses.

Transcript Highlights:

• Um I want to thank committee reports.
• , And this is a kickback report, And this is a kickback report, Department<00:03:07.280> Human
• Uh fraud is going to be a big get hurt.
• <00:15:35.120> and immediately read the report and immediately read the report and I<00:15
• <00:15:40.040> OLA from the report here. OLA from the report here.

Keywords: 919, house, all

Summary: The committee took up House File 4566, authored by Representative Franssen, which responds to a recent Office of the Legislative Auditor report on alleged kickbacks in the early intensive developmental and behavioral intervention (EIBDI) program. Franssen said the bill would require DHS to use expedited rulemaking to clearly include kickbacks in the definition of fraud and would allow the department to withhold or reduce payments when there is a verified credible allegation of fraud, arguing this would protect taxpayer dollars and address a fraud scheme that she said cost about $20 million. Former Representative Matt Dean testified in support, saying the OLA report confirmed kickbacks existed and that the bill would give DHS clearer authority to stop them and pursue those involved. Members raised several technical questions about how the bill interacts with existing state and federal law, including whether it overlaps with the illegal remuneration definition enacted last session, whether it could sweep in federal safe-harbor exceptions, and whether it would expand the scope of the anti-kickback rules. Nonpartisan staff said the bill cites existing definitions in Minnesota law, but also noted that the federal-law impact would need further review. Representative Noor emphasized keeping the credible-allegation language separate from the illegal-remuneration provisions to avoid unintended consequences, and Representative Fisher asked about differences from similar language in another bill; staff said the drafting differences could be reconciled. Representative Jacob cited the OLA report’s conclusion that DHS already had authority to act on kickback allegations without legislative changes, while Representative Gander and Dean argued that even small kickbacks can drive much larger improper provider costs. After questions were closed, Representative Franssen renewed her motion to lay House File 4566 over for possible inclusion, and the motion prevailed.