The proposed "Fraud Isn't Free Act" aims to enhance accountability and oversight in state programs by implementing a series of measures in response to fraud. Key provisions include the requirement for agency heads to report suspected fraud, submit corrective action plans, and suspend further enrollment in affected programs. The act mandates that agencies take corrective actions, which may include employee dismissals, and outlines the process for reporting fraud to law enforcement and legislative bodies. Additionally, the act introduces budget reductions for agencies found to have committed fraud, with specific percentages outlined for reductions in agency administration and salaries.

The bill also amends existing statutes to ensure that fraud impacts are incorporated into budget forecasts, requiring estimates and discussions on fraud's effect on the state budget. It repeals the expiration of agency payment withholding authority and eliminates a sunset provision related to program payments withheld due to fraud. Overall, the act seeks to strengthen the state's response to fraud, improve financial accountability, and ensure that measures are in place to prevent future occurrences.

Statutes affected:
Introduction: 16A.103