Van Binsbergen: House Passes Key Anti-Fraud Bill

ST. PAUL – State Rep. Scott Van Binsbergen, R-Montevideo, said Minnesotans scored a major victory Thursday as the House passed significant anti-fraud legislation on a 127-5 vote.

The bill (S.F. 856) creates an Office of the Inspector General that would operate independently with future law enforcement authority. Van Binsbergen said this is an important step toward providing more transparency and accountability in state government to help get a handle on fraud that has cost state taxpayers $9 billion or more by some estimates.

Van Binsbergen said he has insisted on establishing a truly independent Office of the Inspector General that has enforcement authority to address Minnesota’s rampant fraud problem. Meanwhile, Democrats sought to amend these components out of the proposal soon after the session started in mid-February, grinding progress to a halt for more months on end in Minnesota’s tied House.

“As much as we need to crack down on the criminals who steal from state programs, we need to make sure the state workers are doing their part to safeguard taxpayer dollars,” Van Binsbergen said. “I continue to insist that measures for accountability and transparency are crucial if we’re going to take a serious approach to stopping fraud in our state. This bill is a step in the right direction in those regards. More work needs to be done on fraud, of course, but it’s good to see this bill finally moved through the House after House Republicans stood their ground on important provisions to give this bill teeth.”

Van Binsbergen said the finished product closely resembles legislation which passed the Senate on a 60-7 vote last year before Democrats blocked it from passing the House. The legislation that passed the House on Thursday makes the OIG responsible for investigating state agencies, grant recipients, and contractors. It would have subpoena power and the authority to freeze or stop distribution of funds under court order. Per the bill, the OIG would be housed in the executive branch due to constitutionality concerns, and to permit the office to have law enforcement authority, Van Binsbergen said.

Federal officials have estimated that fraud within Minnesota’s social services and Medicaid programs could total $9 billion or more. This figure stems from investigations into 14 different high-risk Medicaid programs, with officials suggesting that half or more of the roughly $18 billion billed since 2018 may be fraudulent.

The bill is now in the hands of the Senate.