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Panel hears bill to expand revenue department authority to collect fraudulent program losses
Summary
Senate File 5032 would let the Department of Revenue collect amounts tied to program fraud by sharing investigative data with the financial crimes and fraud section, permit jeopardy assessments, and impose tax liabilities and up to 100% penalties on organizational officers; recovered funds would be deposited into a tax relief account.
Senator Koski presented Senate File 5032 as legislation to strengthen recovery of funds lost to public‑program fraud by allowing the Department of Revenue to use data shared by financial crimes and fraud investigators, impose tax liabilities and penalties on organizations and responsible officers, and conduct jeopardy assessments where collection is at risk.
Sponsor remarks described statutory mechanics: confidential investigative data sharing, certification of fraud amounts by the alleging agency, authority for the department to impose tax liability on officers of organizations, and a potential 100% tax penalty before criminal conviction in certain circumstances. The bill would deposit recovered sums into a tax relief account, and once a threshold is reached that could reduce a portion of the first‑tier income tax rate (described in the bill text as a redistribution mechanism tied to annually determined balances).
Supporters argued the measure helps return taxpayer dollars and hold accountable actors who benefit from public‑program fraud. Committee discussion focused on definitions, safeguards, and the interplay between civil tax collection and criminal prosecution. The bill was moved to General Orders by committee motion.
