Requirements for state employees to report fraud strengthened.

HF 2814 strengthens Minnesota state employees' obligations to report suspected fraud involving public funds. It requires state employees (including University of Minnesota staff) to promptly report suspected theft, embezzlement, or misuse of public funds in writing to the legislative auditor and attorney general. Employees who fail to report face a two-year salary freeze, while those who knowingly disburse fraudulent payments (without personal gain) lose eligibility for promotions or pay raises for two years. The bill directly affects all state employees handling public funds, creating clear reporting duties and consequences for non-compliance.