1.1 A bill for an act 1.2 relating to state government; strengthening requirements for state employees to 1.3 report fraud; amending Minnesota Statutes 2024, sections 179A.07, by adding a 1.4 subdivision; 609.456, subdivision 2. 1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.6 Section 1. Minnesota Statutes 2024, section 179A.07, is amended by adding a subdivision 1.7to read: 1.8 Subd. 10.Discipline for disbursing fraudulent payment.An employee who participates 1.9in the disbursement of money the employee knows to be claimed fraudulently, but for which 1.10the employee does not personally benefit, is not eligible for a promotion or wage increase 1.11for two years following the failure to act. 1.12 Sec. 2. Minnesota Statutes 2024, section 609.456, subdivision 2, is amended to read: 1.13 Subd. 2.Legislative auditor.Whenever an employee or officer of the state, University 1.14of Minnesota, or other organization listed in section 3.971, subdivision 6, discovers evidence 1.15of, or has reason to suspect, theft, embezzlement, or unlawful use of public funds or property, 1.16the employee or officer shall, except when to do so would knowingly impede or otherwise 1.17interfere with an ongoing criminal investigation, promptly report in writing to the legislative 1.18auditor and to the attorney general a detailed description of the alleged incident or incidents. 1.19A failure to report suspected theft, embezzlement, or unlawful use of public funds or property 1.20is subject to disciplinary actions, including freezing the employee's salary for two years 1.21following the failure to report. 1Sec. 2. REVISOR SGS/MI 25-0452503/11/25 State of Minnesota This Document can be made available in alternative formats upon request HOUSE OF REPRESENTATIVES H. F. No. 2814 NINETY-FOURTH SESSION Authored by Altendorf and Anderson, P. E.,03/26/2025 The bill was read for the first time and referred to the Committee on State Government Finance and Policy