1.1 	A bill for an act
1.2 	relating to state government; requiring the commissioner of human services to 
1.3 	issue a request for proposals for a public assistance fraud detection and business 
1.4 	intelligence contract.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. REQUEST FOR PROPOSALS.
 1.7 	(a) The commissioner of human services shall issue a request for proposals 
1.8 	for a contract to use technologically advanced software and services to improve the 
1.9 	identification and rejection of improper public assistance payments before payment is 
1.10 	made to the recipient or provider. The request for proposals must ensure that a system 
1.11 	recommended and implemented by the contractor will:
1.12 	(1) implement a more comprehensive, robust, and technologically advanced 
1.13 	improper payments identification program;
1.14 	(2) utilize state-of-the-art fraud detection methods and technologies such as 
1.15 	predictive modeling, link analysis, and anomaly or outlier detection;
1.16 	(3) have the ability to identify and report  improper claims before the claims are paid;
1.17 	(4) include a mechanism so that the system improves its detection capabilities over 
1.18 	time;
1.19 	(5) leverage technology to make the claims evaluation and payment process more 
1.20 	transparent and cost-efficient; and
1.21 	(6) result in increased state savings by reducing or eliminating payouts of wrongful 
1.22 	claims and payment.
2.1 	(b) For purposes of this section, "public assistance payments" are payments made 
2.2 	through MFIP, general assistance, food support, SSI, Minnesota supplemental aid, child 
2.3 	care assistance, medical assistance, and MinnesotaCare.
2.4 	(c) Based on responses to the request for proposal, the commissioner must enter into 
2.5 	a contract for the services specified in paragraph (a) by October 1, 2011. The contract 
2.6 	shall incorporate a performance-based vendor financing option whereby the vendor shares 
2.7 	in the risk of the project's success.

2.8 	EFFECTIVE DATE. This section is effective the day following final enactment.