Penalties for employees and officials for failure to stop fraudulent payments increased, and responsibilities for employees and officials to stop fraudulent payments enhanced.

HF 2813 increases penalties for state employees and officials who fail to stop fraudulent payments. It amends Minnesota Statutes to raise the maximum penalty for knowingly processing false claims from 5 years in prison/$10,000 fines to 7 years/$20,000 fines. The bill also requires officials to halt payments if misuse is reported until an investigation by the attorney general or legislative auditor concludes the claim is lawful. This directly affects state employees and officials handling payment approvals, particularly in finance or procurement roles. The changes clarify and strengthen existing responsibilities to prevent fraud in public fund disbursements.