Fraud Isn't Free Act established; corrective action plans, enrollment freezes, agency budget reductions, and employee dismissal required when fraud is committed against a program administered by the state; and other fraud prevention provisions established.

HF 3395, the "Fraud Isn't Free Act," requires Minnesota state agencies administering public programs (like healthcare or education funding) to take specific actions when fraud occurs. If fraud is suspected, agencies must submit a corrective plan to lawmakers within 30 days, including steps to prevent future fraud, recover stolen funds, and fire employees directly responsible for the fraud. The bill also mandates suspending new enrollments in affected programs, reducing agency budgets, and reporting fraud totals to the budget office and legislative auditors. These provisions apply to all state programs using public funds, with definitions covering intentional deception like false claims or theft.