This bill aims to enhance oversight and accountability within Minnesota's human services by implementing background checks for medical assistance vendors and establishing a fraud detection system. Specifically, it amends Minnesota Statutes 2024, section 245C.03, by adding a new subdivision that mandates the commissioner to conduct background studies for all controlling individuals and managerial officials of vendors receiving medical assistance reimbursements. Vendors must comply with these background study requirements and demonstrate that individuals subject to these checks are either not disqualified or have received a set-aside of disqualification.

Additionally, the bill amends Minnesota Statutes 2024, section 256.983, to introduce a new subdivision that requires the commissioners of human services and children, youth, and families to create an automated or semi-automated fraud detection system. This system will review vendor payments for suspicious or potentially fraudulent activity, with fraud investigators tasked to examine flagged transactions. Furthermore, the commissioners are required to analyze the effectiveness of this fraud detection system periodically and report their findings to relevant legislative committees, ensuring ongoing oversight and improvement of the system.

Statutes affected:
Introduction: 245C.03, 256.983