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State Representative Ryan Winkler
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-7026
For more information contact: Matt Swenson 651-297-8406
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WATCHDOG LAWMAKERS TIGHTEN LOCK ON STATE COFFERS WITH NEW LAWS
ST. PAUL, MN - A watchdog group of state lawmakers spearheaded an aggressive effort this session to reform state government and tighten the lock on the state coffers. Their coordinated efforts for enhanced oversight and accountability were in direct response to a troubling pattern of misconduct and fraud against state government from the outside and within. Those efforts paid off recently when several key bills championed by the watchdogs were signed into law. Sen. Ron Latz (DFL - St. Louis Park), Rep. Steve Simon (DFL - St. Louis Park), and Rep. Ryan Winkler (DFL - Golden Valley) say these significant changes in state law could save taxpayers millions of dollars and begin to rebuild the public’s trust in state government.
“We have seen wave after wave of misconduct and fraud in and against state government," said Rep. Winkler. “Minnesotans expect their tax dollars to be used responsibly for public services like schools and roads - not sweetheart phone calls, vacation getaways, and lavish gala events for public officials. Misconduct with taxpayer dollars is a criminal act and should be treated as such.”
After millions in taxpayer dollars have gone missing through fraud, waste, and abuse over the last several years, a new law enacted this week authored by Winkler would make it a crime for state employees to knowingly misuse public dollars. This new law:
1. More clearly defines what constitutes criminal misuse of public funds; and
2. Makes it a gross misdemeanor for government officials to misuse public resources punishable by up to a year in prison, a $3,000 fine, or both.
Sen. Ron Latz, who co-authored the legislation in the Minnesota Senate says this enhanced oversight measure is long overdue.
“If this law had been in place even one or two years ago, it would have prevented the loss of millions of dollars in public funds,” said Sen. Latz. “More than that, it would have gone far to stem the erosion of public trust and confidence in the state’s ability to manage taxpayer resources with vigilance and responsibility. This new law will help fill the cracks in state government and aggressively prosecute those who knowingly defraud Minnesota taxpayers.”
The watchdogs didn’t focus solely on waste and abuse from within state government. Additionally, they teamed up to fight fraud against taxpayers from outside the walls of state agencies. A measure signed into law yesterday will provide financial incentives to employees who blow the whistle on their private employers for knowingly defrauding state government. This new law, known as the Minnesota False Claims Act, is expected to save Minnesota taxpayers millions of dollars every year by revealing and prosecuting fraud and through increased Medicaid reimbursements from the federal government.
“Minnesota is joining 22 other states in enacting the measure. Lawmakers have a responsibility to ensure every penny of state revenue is protected from fraud by the full measure of the law,” said Rep. Simon. “We can’t afford to say no to an opportunity like the False Claims Act.”
Under the False Claims Act, employees could bring claims on behalf of the state government. Law enforcement authorities would then have the opportunity to intervene. Those who knowing defraud the taxpayers would be liable for up to three times the state’s damages.
“The False Claims Act works; it could save Minnesota taxpayers millions of dollars and protect the state from fraud that would otherwise go completely unnoticed,” said Rep. Simon.
Prior to this bill be coming law Minnesota was more susceptible to contractor fraud than other states that already had False Claims Acts in place. In those other states, whistleblowers have exposed contractors who intentionally over-bill or under-pay taxpayers. In just one settlement last year, Illinois recovered over $40 million from a health care plan that cheated the state by accepting government payments for Medicaid patients it had not enrolled. The State of Texas recovered more than $64 million from just 4 drug companies over the last 6 years.
“These settlements were made possible because state law provided the incentive for employees to come forward with strong evidence of fraud,” said Rep. Winkler. “Without this law in place employees have no reason to risk their jobs and their livelihoods to shine a light on fraudulent acts against state government. The Minnesota False Claims Act will provide that incentive, and give our state the tools to save taxpayers millions.”
According to the watchdog legislators, these two new laws could not have come at a more important time.
“Facing a $6.4 billion state budget deficit, we can’t afford to lose a nickel to fraud, waste, or neglect,” said Sen. Latz. “We need to keep every penny on a short leash with vigilant oversight and enhanced accountability. That’s exactly what these new laws will do.”
News Items
- Statement on Budget Forecast - (Posted: 2012-12-05 00:00:00)
- Statement on Final I-35 W Bridge Settlement - (Posted: 2012-11-13 00:00:00)
- Rep. Winkler: Tea Party Activists Can’t Be Trusted to Reform Our Elections - (Posted: 2012-11-01 00:00:00)
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