Committee hears governor's fraud-prevention package that includes AI pilot, new enforcement tools and tougher penalties

The State Government Finance and Policy Committee convened an informational hearing March 20, 2025 to review the governor's proposed fraud-prevention package. House author Representative Lindsey Pinto said the package "builds on work that we've done in past years" and that some provisions are moving as separate bills (Representative Elkins is carrying the data-sharing portion, House File 2429; Representative Pinto said she is carrying House File 2370 on payment-withhold authority).

The package is organized around three goals: stronger investigative and enforcement authority, better detection and oversight, and increased criminal penalties. Erin Campbell, Commissioner of Minnesota Management and Budget (MMB), told the committee the state intends to use a mix of executive, budget and statutory changes to equip agencies to detect and stop fraud and to hold offenders accountable. "Fraud against these public programs is unacceptable. It's not a victimless crime and it harms the same people that we're trying to help with these services," Campbell said.

Nut graf: Agency witnesses described investments and policy changes that would affect Medicaid and other state-administered programs, charter school oversight, grant administration and licensing for select provider types. Key proposals include an AI pilot to identify Medicaid payment anomalies in real time, expanded interagency data sharing, authority for agencies to temporarily stop payments when credible allegations exist, creation of a distinct theft-of-government-funds statute with higher penalties, and added investigative capacity across the BCA, Attorney General's office and agency inspector general offices.

Most important details - Detection and data tools: Tarek Tombs, commissioner of Minnesota IT Services (MNIT), described a…