SO THAT'S WHY I'M HERE.

>> >> ERIC: FRAUD, WASTE, AND ABUSE CONTINUE TO BE THEMES IN THE LEGISLATURE THIS SESSION.

THIS WEEK, THE HOUSE FRAUD COMMITTEE LAUNCHED A WHISTLE BLOWER PORTAL, AND CALLED ON LAWMAKERS TO STOP EARMARKING DIRECT FUNDS TO NON-PROFITS.

REPUBLICAN REPRESENTATIVE KRISTIN ROBBINS HEADS THE HOUSE FRAUD COMMITTEE AND JOINS US NOW.

THANKS FOR BEING HERE.

WHAT IS THE PORTAL?

TELL US ABOUT IT.

>> YES, IT'S A NEW WEBSITE THAT LAUNCHED.

WWW.MNFRAUD.COM.

AND PEOPLE CAN SUBMIT AREAS WHERE THEY HAVE SEEN OR EXPERIENCED FRAUD OR ARE CONCERNED ABOUT IT, NOT NECESSARILY IF IT'S, YOU KNOW, IDENTIFIED, BUT JUST THAT THEY HAVE CONCERNS ABOUT SOMETHING.

AND, HONESTLY, IT'S BEEN OFF THE CHARTS, AS I WAS LEAVING TODAY, THEY TOLD ME THERE'S BEEN 530 SUBMISSIONS SINCE IT OPENED ON, I THINK, WE ANNOUNCED IT ON MONDAY OR TUESDAY.

>> Cathy: DO YOU THINK IF THIS WEBSITE WOULD HAVE BEEN UP AND RUNNING THAT SOMEBODY WOULD HAVE CAUGHT THE FEEDING OUR FUTURE, HAT MASSIVE FRAUD SCHEME A LITTLE EARLIER?

>> I HOPE SO.

AND I HOPE THAT THE THINGS THAT ARE BEING SUBMITTED, WE HONESTLY HAVEN'T HAD TIME TO TRIAGE IT BECAUSE IT'S DEADLINE HE WEEK, BUT WE WILL GO THROUGH EVERYTHING, OUR STAFF WILL O THROUGH AND SOME THINGS WILL BE ACTIONABLE, SOME THINGS MAY NOT.

AND, YOU KNOW, THIS GIVES US A PLACE TO SORT OF TRIAGE EVERYTHING AND MAKE SURE THAT WE'RE LOOKING AT IT CAREFULLY.

>> Eric: I WANT TO TALK A LITTLE BIT ABOUT THE PRACTICE OF SENDING MONEY TO NONPROFITS BY NAME, VERY SPECIFICALLY, IT'S A BILLION ONE OR SOMETHING IN 2023.

>> YES.

>> Eric: HOW DID THAT GET STARTED?

AND WHAT ARE YOUR THOUGHTS ON IF IT SHOULD CONTINUE?

>> SO, THAT'S ONE OF THE THINGS THE OFFICE OF LEGISLATIVE AUDITOR HAS REPEATEDLY SAID HAT THESE LEGISLATIVELY NAMED GRANTS, SOME PEOPLE CALL THEM EARMARKS.

>> Eric: EARMARKS.

>> ARE REALLY NOT BEST PRACTICE BECAUSE THEN SINCE THE AGENCIES HAVE TO PROVIDE IT, BECAUSE IT'S MANDATED IN LAW, THERE'S A LITTLE LESS OVERSIGHT GIVEN TO THE GROUP THAT'S RECEIVING THE MONEY JUST BECAUSE THEY HAVE TO GET IT ANYWAY.

>> Eric: THEY BYPASSES THE SCREENING PROCESS, DON'T THEY?

>> THEY BYPASS THE SCREENING PROCESS.

THERE'S BEEN MORE OF AN EFFORT BY SOME OF THE AGENCIES TO SAY, WE'RE GOING TO DO RISK MANAGEMENT, REQUIRE THE REPORTS, DO ALL OF THE THINGS.

IN OTHER AGENCIES THAT HASN'T BEEN THE CASE.

WE'RE TRYING TO CHANGE THE CULTURE IN A LOFT WAYS ACROSS STATE GOVERNMENT ABOUT FRAUD, AND ONE OF THE WAYS TO POLICE OURSELVES IS TO ASK FOR NO LEGISLATIVE EARMARKS.

SO OUR BIPARTISAN COMMITTEE, WITH LEAD PINTO, WE SENT A LETTER THIS WEEK TO ALL OF OUR COLLEAGUES ASKING THAT THEY'S TRAIN FROM LEGISLATIVE EARMARKS.

SO, WE'LL SEE HOW SUCCESSFUL WE ARE.

AT LEAST IN HOPEFULLY LIMITING IT.

>> Cathy: GETTING BACK TO THE REPORTS THAT YOU RECEIVED SO FAR THROUGH MNFRAUD.COM, DO YOU THINK THERE'S ANOTHER FEEDING OUR FUTURE FRAUD OUT THERE?

>> BASED ON THE WHISTLEBLOWER REPORTS I'VE BEEN TAKING ACTUALLY SINCE JANUARY WHEN THE COMMITTEE OPENED UP, I WOULD SAY THERE ARE SERIOUS PROBLEMS STILL GOING ON WITH SEVERAL PROGRAMS.

AND WE REALLY NEED TO FOCUS ON MAKING SURE THAT THE STATE AGENCIES HAVE THE TOOLS AND THAT AGENCY GRANT MANAGERS ARE REQUIRED TO GO THROUGH THE TRAINING OF HOW TO MANAGE GRANTS.

BECAUSE RIGHT NOW IT'S RECOMMENDED, BUT IT'S NOT REQUIRED.

AND I THINK THAT'S ANOTHER RECOMMENDATION THE O.L.A.

HAS HAD FOR YEARS.

THAT PEOPLE WHO MANAGE THESE GRANTS SHOULD BE REQUIRED TO GO THROUGH THE TRAINING.

AND I THINK THAT'S N EFFORT WE ARE GOING TO BE FOCUSING ON.

>> Cathy: ARE YOU GETTING ANY PUSHBACK FROM NONPROFITS TO THIS?

>> YES, I MEAN, SOME OF THE NONPROFITS HAVE REACHED OUT AND SAID, DON'T PAINT US ALL WITH A BROAD BRUSH, NOT EVERYONE'S BAD.

AND I'VE ALWAYS SUPPORTED THAT.

BUT THERE ARE BAD ACTORS.

AND IT'S NOT NECESSARILY NONPROFITS ONLY.

RIGHT?

SO THOSE HAVE BEEN SOME OF THE HIGH-PROFILE ONES.

BUT THIS IS -- THE BIGGER PROBLEM IS WHERE PEOPLE PREY ON MINNESOTANS AS A BUSINESS MODEL, SO THEY ARE PREYING ON OUR MOST VULNERABLE CITIZENS TO TAKE ADVANTAGE OF THEM BY NOT EITHER GIVING SERVICES OR PROVIDING SUBSTANDARD SERVICES AND THEN MAKING MONEY OFF THAT.

SO, IT'S REALLY RYING TO GET AT THOSE PLACES WHERE FEEDING OUR FUTURE IS AN EXAMPLE, WHERE THEY'RE USING IT AS A BUSINESS MODEL TO TAKE ADVANTAGE OF HARDWORKING TAXPAYERS AND OUR VULNERABLE CITIZENS.

>> Eric: WITH SO CLOSE IN THE HOUSE AND SENATE, A GOVERNOR WITH HIS OWN PLAN, HOW DO YOU SEE THE FINAL PRODUCT BEING FORMED HERE?

>> SO THE GOVERNOR HAD A FRAUD PACKAGE THAT OUR COMMITTEE HEARD ON MONDAY.

AND THAT IS MOVING IN PIECES IN DIFFERENT COMMITTEES.

AND THEN OUR FRAUD COMMITTEE, I PUT IN BILL BASE N ALL THE HEARINGS WE'VE HAD SO FAR, WITH SOME DIFFERENT ELEMENTS FROM WHAT THE GOVERNOR HAS, AND THEN WE HAVE SOME OTHER BILLS THAT THE REPUBLICANS HAVE PUT FORWARD FOR AN INSPECTOR GENERAL OFFICE AND FOR FISCAL NOTE ABOUT FRAUD.

SO WE HAVE SOME OF OUR OWN IDEAS.

SO I THINK IN THE END, SEVERAL OF THE GOVERNOR'S PIECES, ESPECIALLY ABOUT CREATING NEW CRIMES FOR PUBLIC THEFT AND KICKBACKS, THAT'S ANOTHER THING IN ONE OF MY BILLS, I THINK WE'LL HAVE AGREEMENT ON SEVERAL THINGS, AND THEN HOPEFULLY IN THE NEGOTIATIONS WE'LL GET MULTIPLE THINGS THROUGH.

BECAUSE FRAUD IS NOT A PARTISAN ISSUE.

AND THERE ARE GOOD IDEAS ON BOTH SIDES.

AND WE NEED TO CRACK DOWN ON IT.

>> Eric: WE'LL BE WATCHING.

>> Cathy: WE WISH YOU WELL.