This bill seeks to strengthen the integrity of state government programs by establishing protocols for withholding payments in cases of credible allegations of fraud. It defines "credible allegation of fraud" and outlines the process for state agency heads to withhold payments when fraud is suspected. Program participants must be notified within five days of any payment withholding, including the reasons for the action and their rights to contest it. The bill also ensures that data related to these allegations remains confidential during the withholding period but becomes public once the withholding is lifted, unless otherwise classified by law.

Additionally, the bill amends existing statutes concerning grants management, requiring the commissioner to report any exceptions to legislative committees and mandating the immediate termination of grant agreements if the recipient is convicted of a related criminal offense. It introduces new annual reporting requirements for the Department of Children, Youth, and Families and the Department of Human Services, starting in 2026 and 2027, respectively. These reports will provide detailed updates on program integrity functions, including metrics on licensing, maltreatment reports, and investigations, thereby enhancing accountability and transparency in the management of public funds.

Statutes affected:
Introduction: 16B.97, 16B.98, 16B.991
1st Engrossment: 16B.97, 16B.98, 16B.991
2nd Engrossment: 16B.97, 16B.98, 16B.991, 142A.03, 256.01
1st Unofficial Engrossment: 16B.97, 16B.98, 16B.991, 142A.03, 256.01