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Committee narrows state data-sharing language after concern about federal disclosure and oversight

2811726 · March 28, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

Sen. Gustafson's bill to let government entities share suspected fraud information drew extensive committee debate over scope and federal sharing; committee adopted an amendment limiting disclosures to agencies with oversight, investigative or prosecutorial authority.

Senate File 2574, introduced by Sen. Gustafson on March 28, would allow government entities to share data about suspected or confirmed fraud in public programs with other government agencies to improve investigations and protect public resources.

Julie Barrow, legislative director at the Department of Administration, said the language was part of an anti-fraud package and intended to be narrowly drafted to help agencies communicate while preserving legal restrictions. "The language is narrowly drafted for this specific purpose and does not allow for the sharing of data when specifically prohibited by law," she told the committee.

Committee members raised repeated concerns about the breadth of the proposal. Sen. Rich Limmer asked whether chapter 13 (the Government Data Practices Act) definitions would apply; counsel confirmed that the new section would sit within chapter 13 and that those definitions would apply. Members also questioned whether sharing with "any federal agency" would strip Minnesota of its data protections if the data left the state. Committee counsel explained federal treatment would be governed by federal law and that protections may differ.

Committee counsel proposed narrowing the disclosure language so that agencies could only share with entities "with oversight, investigative, or prosecutorial authority over the suspected or confirmed fraud." That change was adopted as an amendment; proponents and some members said it addressed several concerns while preserving cross-jurisdictional investigations.

Why it matters: The bill touches both privacy and fraud enforcement. Committee members pressed for guardrails to avoid open-ended data transfers where protections could be lost when data leaves state custody.

Committee action: After discussion and the Croon amendment (adding "oversight, investigative or prosecutorial authority"), the committee recommended SF 2574 to pass and re-refer to the State & Local Government Committee.

Next steps: The bill moves forward with narrower sharing language; counsel will finalize drafting and stakeholders may request further technical changes as it moves through State & Local Government.