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Did Not Advance

Minnesota House Bill 2 Requires Mandatory State Employee Fraud Reporting and Strengthens Grant Oversight

Original title: Fraud reporting required when a state employee has reason to suspect fraud, and grants management requirements strengthened.

Last action · February 24, 2025: Author added SextonSponsors: Ben Davis and 31 others

Introduced
Committee
Floor Vote
Passed
Law

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Public stanceCommunity reactions are separate from the official record and reporting.

What This Bill Proposed

Official description

Fraud reporting required when a state employee has reason to suspect fraud, and grants management requirements strengthened.

Why it matters

Grant recipients face mandatory in-person monitoring visits, potential funding freezes for missing progress reports, and stricter internal control requirements, while state employees gain explicit whistleblower protections for reporting financial misconduct.

Background
  • HF 2 is a legislative proposal introduced in the 94th session of the Minnesota Legislature to increase financial accountability and transparency in state-administered grants. context
  • Minnesota state statutes governing grants management and state operations are primarily outlined in chapters 15 and 16B of the Minnesota Statutes. context

Who It Would Have Affected

Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.

Directly affected

State employees

Directly affected

Grant recipients

Grant recipients face mandatory unannounced in-person monitoring visits, website transparency rules, suspension upon criminal charges, and strict progress reporting requirements.

Directly affected

State agencies

State agencies must implement mandatory fraud reporting workflows, post organizational charts, conduct risk assessments, and perform unannounced grant monitoring visits.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

What must a state employee do if they suspect fraud?
The employee must immediately notify their supervisor, the head of their agency or designee, or the legislative auditor.
What new monitoring requirements apply to large state grants?
Agencies must conduct at least one in-person, unannounced monitoring visit before final payment for grants over $50,000, and annual unannounced visits for grants over $250,000.
Are nonprofits required to disclose executive compensation before receiving a grant?
Yes, agencies must inquire about compensation that is in excess of the amount customarily paid to those in comparable positions before awarding a grant.

What else do you want to know?

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Where This Stands

This bill did not become law - Died at adjournment · in House committee.

Procedural history

7 actions
  1. Feb 24, 2025House
    Author added Sexton
  2. Feb 20, 2025House
    Author added Altendorf
  3. Feb 20, 2025HouseCommittee
    Committee report, to adopt as amended and re-refer to Ways and Means
  4. Feb 17, 2025House
    Author added Gordon
  5. Feb 13, 2025House
    Authors added McDonald, Koznick and Murphy
  6. Feb 10, 2025House
    Authors added Perryman; Engen; Bennett; Anderson, P. H.; Hudson; Robbins; Johnson, W.; Harder; Allen; and Swedzinski
Show 1 earlier action
  1. Feb 6, 2025HouseIntroduced
    Introduction and first reading, referred to State Government Finance and Policy

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Sponsors

Show 27 more sponsors

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift98% confidence

Shift from Encouraged to Mandatory Reporting

The legislation changes state employee fraud reporting from being merely encouraged to a strict legal requirement with mandatory notification pathways.

Connected Entities

Minnesota, Steve Gander, Krista Knudsen and 12 more
locationMinnesota“State jurisdiction for the legislation”Map →
PersonSteve Gander“Cosponsor”Map →
PersonKrista Knudsen“Cosponsor”Map →
PersonTom Sexton“Author added”Map →
PersonJeff Dotseth“Cosponsor”Map →
PersonBen Davis“Bill author/sponsor in the Minnesota House”Map →
PersonMax Rymer“Cosponsor”Map →
PersonJim Joy“Cosponsor”Map →
OrganizationLegislative Audit Commission“Commission receiving reports from the legislative auditor regarding multiple com”Map →
PersonJeff Backer“Cosponsor”Map →
PersonJohn Burkel“Cosponsor”Map →
OrganizationInternal Revenue Service“Federal agency receiving Form 990 or Form 990-EZ filings from potential grantees”Map →
PersonAnderson, P. E.“Cosponsor”Map →
PersonBidal Duran“Cosponsor”Map →
PersonVan Binsbergen“Cosponsor”Map →

Sources

Open source document

www.revisor.mn.gov

Analysis Score

0–100
  • Significance20
    Lowered because this bill did not pass (its text scored 75)
  • Controversy25
    Intensity of disagreement among stakeholders
  • Entertainment10
    Compellingness for a non-policy-wonk reader
  • Buzz40
    Current news / social attention level

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