This bill amends Minnesota Statutes 2025 Supplement, section 15.013, to establish new procedures for withholding payments to program participants under certain circumstances related to fraud. The bill introduces the concept of a "credible allegation of fraud," which allows the head of a state agency to withhold payments if there is a verified allegation of fraud under investigation. The agency head must notify the program participant within five days of the withholding action, providing reasons for the decision while maintaining confidentiality regarding ongoing investigations. The bill also outlines the rights of program participants to submit evidence for reconsideration and specifies that the withholding of payments is a temporary measure that cannot continue if there is insufficient evidence of fraud.

Additionally, the bill includes provisions for data classification and access during the payment withholding period, ensuring that data related to credible allegations of fraud is treated as confidential or protected nonpublic data. It allows for the disclosure of such data to law enforcement or other government agencies if it aids in preventing fraud. The bill emphasizes that the withholding of payments does not supersede existing laws that authorize similar actions and clarifies that the withholding process is not subject to appeal under chapter 14. Overall, the bill aims to enhance the state's ability to address fraud in public programs while ensuring due process for program participants.