Committee advances bill lowering standard for temporary payment withholding across agencies

The House Judiciary Committee on March 10 adopted oral amendments and an amended A2 to the first engrossment of House File 3621, a bill that changes how state agencies may temporarily withhold payments from program participants when there is an allegation of fraud.

Author Representative Cleburne said the bill lowers the standard for temporary withholding from a preponderance of evidence to a ‘credible allegation’ and extends withholding authority to individuals as well as entities. Chris McNulty, general counsel for Minnesota Management and Budget, told members that when one agency shares information about potential fraud it can trigger a separate agency’s assessment under the bill and that affected entities would retain the right to administrative reconsideration under the new language.

Members debated whether cross‑agency withholding should be mandatory or discretionary, with concerns raised about the risk of disrupting services for vulnerable populations while an allegation is assessed. Counsel noted the measure preserves an internal assessment process and that the bill does not supersede agencies’ existing authorities.

The committee adopted technical oral changes to ensure the A2 aligns with the first engrossment and approved re‑referral to the General Register by voice vote.

What’s next: HF3621 was moved to the General Register for further consideration; members asked that nonpartisan staff and legal counsel remain involved to clarify implementation safeguards for affected providers and recipients.