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Subcommittee approves $50,000-per-year state auditor authority for consumer fraud outreach
Summary
The Section A Subcommittee advanced DP 9, giving the State Auditor $50,000 per year in state special spending authority for consumer outreach and fraud-prevention education; the auditor said outreach has produced strong local demand and cited large individual losses from scams.
The Section A Subcommittee on Appropriations approved DP 9, granting the Montana State Auditor $50,000 per year in state special spending authority for consumer outreach and fraud-prevention education.
State Auditor James Brown told the committee the agency lost a prior grant that funded this work and is seeking a smaller, stable replacement to continue outreach, events and digital materials. “The agency used to receive [a] grant that helped us engage in consumer information and fraud prevention efforts. And that grant went away,” Brown said. He described the program’s work and the rationale for funding it at a modest level: “If you weigh the cost benefit analysis of what we're seeking, I think you'll find that the savings will ultimately pay for itself.”
Brown offered an example to illustrate the scale of harm his office sees in enforcement work: “In one instance, for example, an elderly lady in Southwest Montana lost $400,000 in the scheme. We have a restitution fund, but that is capped at $50,000.”
Senator Flowers, who moved the item with Senator Harvey’s proxy remarks read into the record, emphasized the potential return on investment for outreach to seniors: “Helping someone avoid one scam a year could save that person more money than we're asking for in spending authority.” Committee members asked about whether $50,000 per year was adequate; Brown said the amount would replicate the prior level of prevention activity and that he would support additional funding if the committee directed it.
The motion carried on a voice vote with Senator Harvey recorded as aye by proxy.
Why it matters: fraud and consumer scams have produced large losses for Montana residents, particularly seniors, according to the auditor’s office. The appropriation aims to preserve outreach activities — in-person events, printed materials and digital campaigns — while the office works to quantify program impact and returns on investment.
Next steps: DP 9 was advanced by the subcommittee; the auditor and committee staff said they would continue to report activity and outcomes tied to the spending authority.
