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Minnesota2026Passed Legislature

HF3629

Withholding Payments for Credible Fraud Allegations

Last scannedAug 22, 2026, 3:39 AM

In one sentence

This law allows state agency heads to stop payments for up to 60 days if they find credible evidence of fraud, requires them to give notice and report these actions, and sets rules for keeping investigation data private.

What it does

  • Allows agency heads to withhold program payments for up to 60 days when a preponderance of the evidence shows fraud occurred.
  • Requires agencies to notify recipients at least 24 hours before stopping payment, stating reasons while protecting active investigations.
  • Gives recipients the right to submit written evidence and appeal the decision through court or administrative processes.
  • Classifies data about fraud evidence as confidential during the withholding period but makes it public afterward unless other laws apply.
  • Mandates that agencies report details of withheld payments, including amounts and reasons, to state officials by March 1, 2026.

Who it affects

  • State agency heads who manage programs
  • Entities or individuals receiving money from state programs (program participants)
  • The commissioner of management and budget

Limits and unknowns

  • Agencies cannot withhold payments if federal law or existing contracts prevent them from doing so.
  • The rules in this section expire on July 1, 2027.
  • Specific details about active investigations may be kept secret to protect the process.

Plain language

Terms to know

Credible allegation of fraud
A claim verified by an agency head using sources like audits, police reports, court records, or complaints.
Program participant
Any person or organization that receives, manages, or holds public funds under a state program.

Official record

Sources

Validated
Official bill pageIntroduced textOfficial digestCurrent bill textStored full record

Official summary

Program payment withholding provided for credible allegation of fraud, grant management provisions changed, and program integrity reports required.

Official activity

Bill history

  1. Presented to Governor 05/20/2026House
  2. Presentment date 05/20/26Senate
  3. Returned from Senate with amendmentHouse
  4. Taken from tableSenate
  5. Taken from tableSenate
  6. Received from HouseSenate
  7. Amendments offeredHouse
  8. House rule 1.21, placed on Calendar for the Day Monday, April 20, 2026House
  9. Author added EngenHouse
  10. Committee report, to adoptHouse
  11. Introduction and first reading, referred to State Government Finance and PolicyHouse