Committee Approves Amendment and Advances Bill Allowing 10% Award for State Fraud Reports, Excluding Investigators
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Summary
Senate Bill 450 would allow the secretary of administration to grant a monetary award equal to 10% of savings realized when a state employee's report leads to recovered funds. The committee approved an amendment excluding employees whose investigative or auditing duties produced the information and moved the bill favorably.
A state Senate committee advanced Senate Bill 450 after adopting an amendment that narrows eligibility for a proposed state employee award for reporting fraud, waste or abuse.
David Weese, the reviser, told the committee the bill authorizes the secretary of administration, in consultation with the inspector general or attorney general, to grant an award to a state employee whose report results in savings to the state. The award would be 10% of the savings realized after deducting investigation and recovery costs and would be paid only after the recovered funds have actually been collected.
Senator Thompson proposed a balloon amendment to bar eligibility for employees whose reports were derived from their regular auditing or investigative duties—specifically naming offices such as legislative post audit and the office of the inspector general as examples of functions that should be excluded. "If any state employee's information was derived from the investigating or auditing of state agencies or the function of state government as part of such state employee's position or regular job duties, then they would not be eligible for the reward," Thompson said.
Senator Murphy described the change as correcting a likely oversight in the original bill language and supported the amendment. Senator Hoelscher asked clarifying questions during debate; no member recorded opposition to the amendment in the transcript, and the chair announced the amendment passes.
After adopting the amendment, Senator Thompson moved that the committee pass Senate Bill 450 as amended favorably; Senator Murphy seconded. The committee advanced the bill by voice vote; the transcript records at least one oral 'Aye' and the chair announced the motion carries. The record does not include a roll‑call tally.
The amendment narrows the scope of eligible reporters by excluding those whose employment duties are to investigate or audit, and the bill otherwise retains the 10% award formula and the requirement that awards be paid only after recovered funds are collected.