Proposal would allow suits against state workers and require benefit-fraud prison terms

The attorney general may sue a state officer or employee who knowingly fails or refuses to act against covered benefit fraud they could help prevent. Covered benefits include food and income aid, health coverage, child care support, and other programs that send funds to states. The worker must know about fraud in the administration or use of a covered benefit and have the power to prevent or help prevent it. For losses of $500,000 or less, damages may not exceed the loss; for losses above $500,000, damages may not exceed three times the loss. The bill says immunity based on acting within the job would not apply.

A person convicted of a listed fraud crime involving a covered benefit would have to serve a minimum prison term based on the amount of loss. Covered benefits include food and income aid, health coverage, child care support, and other programs that send funds to states. Only the crimes listed in the proposal qualify. Minimum terms range from one year for losses under $40,000 to 20 years for losses of $100 million or more; the court could impose a sentence up to life in prison. For this rule, loss is the greatest of actual harm, intended harm, or the gain from the fraud. A person who commits another covered fraud crime after a prior conviction becomes final would face at least twice the applicable term. Courts could not suspend the sentence or impose probation. The required terms would apply only to criminal conduct that occurs after the bill becomes law.