SF 1648

Introduction - 94th Legislature (2025 - 2026)

Posted on 02/21/2025 09:47 a.m.

A bill for an act
relating to human services; requiring background checks for medical assistance
vendors; establishing a fraud detection system for the Department of Human
Services and the Department of Children, Youth, and Families; requiring reports;
amending Minnesota Statutes 2024, sections 245C.03, by adding a subdivision;
256.983, by adding a subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 245C.03, is amended by adding a subdivision
to read:

new text begin Subd. 16. new text end

new text begin Medical assistance vendors. new text end

new text begin (a) The commissioner shall conduct background
studies of all controlling individuals and managerial officials, as defined in section 245A.02,
for vendors that receive reimbursement through the medical assistance program not otherwise
covered under this section.
new text end

new text begin (b) The vendor must comply with all requirements for entities initiating background
studies under this chapter.
new text end

new text begin (c) In order to be eligible for medical assistance payments, a vendor must demonstrate
that all individuals who are required to have a background study according to paragraph (a)
have a notice stating that:
new text end

new text begin (1) the individual is not disqualified under section 245C.14; or
new text end

new text begin (2) the individual is disqualified and the individual has been issued a set-aside of the
disqualification for the setting under section 245C.22.
new text end

Sec. 2.

Minnesota Statutes 2024, section 256.983, is amended by adding a subdivision to
read:

new text begin Subd. 6. new text end

new text begin Fraud detection system. new text end

new text begin (a) The commissioners of human services and children,
youth, and families shall establish an automated or semiautomated fraud detection system
that is capable of reviewing all vendor payments and requests for payments for suspicious,
unusual, and potentially fraudulent activity. Fraud investigators must review any payments
or requests for payments that the system in this subdivision indicates as suspicious, unusual,
or potentially fraudulent.
new text end

new text begin (b) At least once every ... years, the commissioners of human services and children,
youth, and families must analyze its fraud detection system using earned value management
analysis to measure the efficiency and effectiveness of the system. During the regular
legislative session following the conclusion of each analysis under this paragraph, the
commissioners must report their findings to the chairs and ranking minority members of
the legislative committees with jurisdiction over human services.
new text end