Fraud, waste, and mismanagement in state government and authorizing the expenditure of funds

This bill provides that if an LAB or state agency investigation finds that fraud, waste, or mismanagement has occurred, the individual submitting the report must be paid a reward equal to $100,000, 2 percent of the moneys that are recovered in any legal action resulting from the fraud, waste, or mismanagement, or 2 percent of the moneys that are saved in the succeeding fiscal year as a result of eliminating the fraud, waste, or mismanagement, whichever is least. Under the bill, LAB must determine whether moneys can be saved or recovered as a result of eliminating the fraud, waste, or mismanagement and must certify to the secretary of administration the amounts to be paid as rewards to individuals. The secretary of administration must pay the rewards from the appropriation account that is used to fund the program that is the focus of the report of fraud, waste, or mismanagement.

The bill also provides that a senator or representative to the assembly may make a report to LAB on behalf of any individual who contacts the office of the senator or representative. If an LAB or state agency investigation finds that fraud, waste, or mismanagement has occurred, the senator or representative must identify the individual who must be paid the award. A senator or representative may also introduce a bill on behalf of the individual to eliminate the fraud, waste, or mismanagement. If the bill is enacted and if LAB determines that the legislation will eliminate the fraud, waste, or mismanagement, the individual shall be paid the award.