| 69 | | - | REVISOR SGS H0001-4HF1 FOURTH ENGROSSMENT 3.1 Subd. 6.Misuse."Misuse" means the improper use of authority or position for personal |
|---|
| 70 | | - | 3.2gain or to cause harm to others, including the improper use of public resources or programs |
|---|
| 71 | | - | 3.3contrary to their intended purpose. |
|---|
| 72 | | - | 3.4 Subd. 7.Office."Office" means the Office of the Inspector General. |
|---|
| 73 | | - | 3.5 Subd. 8.Personal gain."Personal gain" means a benefit to a person; a person's spouse, |
|---|
| 74 | | - | 3.6parent, child, or other legal dependent; or an in-law of the person or the person's child. |
|---|
| 75 | | - | 3.7 Subd. 9.Program."Program" or "state program" means any program fully or partially |
|---|
| 76 | | - | 3.8administered or fully or partially funded by the state. |
|---|
| 77 | | - | 3.9 Subd. 10.Recipient of state funds."Recipient of state funds" means any entity or |
|---|
| 78 | | - | 3.10person, including associated persons, that receives, disburses, or has custody of funds or |
|---|
| 79 | | - | 3.11other resources transferred or disbursed under a program. Recipient of state funds includes |
|---|
| 80 | | - | 3.12but is not limited to a private person or entity currently or formerly under contract with the |
|---|
| 81 | | - | 3.13state to provide benefits, goods, or services to eligible recipients. |
|---|
| 82 | | - | 3.14 Sec. 7. [3.991] OFFICE OF THE INSPECTOR GENERAL. |
|---|
| 83 | | - | 3.15 Subdivision 1.Establishment.The Office of the Inspector General is established in the |
|---|
| 84 | | - | 3.16legislative branch under the direction of the inspector general. The inspector general reports |
|---|
| 85 | | - | 3.17to the Legislative Audit Commission but may independently initiate investigations and |
|---|
| 86 | | - | 3.18allocate the resources of the office to effectively achieve the purpose in subdivision 2. |
|---|
| 87 | | - | 3.19 Subd. 2.Purpose.The inspector general must investigate and combat suspected fraud, |
|---|
| 88 | | - | 3.20misuse, and other unlawful uses of public funds in state government with a focus on the |
|---|
| 89 | | - | 3.21providers and recipients of state-funded services. |
|---|
| 90 | | - | 3.22 Subd. 3.Inspector general appointment; term.(a) The Legislative Audit Commission |
|---|
| 91 | | - | 3.23must appoint an inspector general to serve for a six-year term. When in office, the inspector |
|---|
| 92 | | - | 3.24general may not at any time hold another public office. The commission may not remove |
|---|
| 93 | | - | 3.25an inspector general from office before the expiration of the term of service except for cause |
|---|
| 94 | | - | 3.26after public hearing. |
|---|
| 95 | | - | 3.27 Subd. 4.Qualifications.The commission must select an inspector general without regard |
|---|
| 96 | | - | 3.28to political affiliation and on the basis of outstanding professional qualifications and |
|---|
| 97 | | - | 3.29demonstrated integrity, leadership, and ability in accounting, auditing, financial analysis, |
|---|
| 98 | | - | 3.30law, management analysis, public administration, investigation, criminal justice, or a related |
|---|
| 99 | | - | 3.31field. The inspector general must hold at the time of appointment, or be required by the |
|---|
| 100 | | - | 3.32commission to obtain within a time certain after appointment, certification from the |
|---|
| 101 | | - | 3.33Association of Inspectors General. |
|---|
| 69 | + | REVISOR SGS H0001-3HF1 THIRD ENGROSSMENT 3.1 Subd. 4.Inspector general."Inspector general" means the person appointed under |
|---|
| 70 | + | 3.2section 3.991 or an employee of the office designated by the inspector general. |
|---|
| 71 | + | 3.3 Subd. 5.Investigation."Investigation" means a proceeding or inquiry by the office |
|---|
| 72 | + | 3.4concerning a provider or recipient of state-funded services. |
|---|
| 73 | + | 3.5 Subd. 6.Office."Office" means the Office of the Inspector General. |
|---|
| 74 | + | 3.6 Subd. 7.Program."Program" or "state program" means any program fully or partially |
|---|
| 75 | + | 3.7administered or funded by the state. |
|---|
| 76 | + | 3.8 Subd. 8.Recipient of state funds."Recipient of state funds" means any entity or person, |
|---|
| 77 | + | 3.9including associated persons, that receives, disburses, or has custody of funds or other |
|---|
| 78 | + | 3.10resources transferred or disbursed under a program. Recipient of state funds includes but |
|---|
| 79 | + | 3.11is not limited to a private person or entity currently or formerly under contract with the state |
|---|
| 80 | + | 3.12to provide benefits, goods, or services to eligible recipients. |
|---|
| 81 | + | 3.13 Sec. 7. [3.991] OFFICE OF THE INSPECTOR GENERAL. |
|---|
| 82 | + | 3.14 Subdivision 1.Establishment.The Office of the Inspector General is established in the |
|---|
| 83 | + | 3.15legislative branch under the direction of the inspector general. The inspector general reports |
|---|
| 84 | + | 3.16to the Legislative Audit Commission but may independently initiate investigations and |
|---|
| 85 | + | 3.17allocate the resources of the office to effectively achieve the purpose in subdivision 2. |
|---|
| 86 | + | 3.18 Subd. 2.Purpose.The inspector general must investigate and combat suspected fraud, |
|---|
| 87 | + | 3.19misuse, and other unlawful uses of public funds in state government with a focus on the |
|---|
| 88 | + | 3.20providers and recipients of state-funded services. |
|---|
| 89 | + | 3.21 Subd. 3.Inspector general appointment; term.(a) The Legislative Audit Commission |
|---|
| 90 | + | 3.22must appoint an inspector general to serve in the unclassified service for a six-year term. |
|---|
| 91 | + | 3.23When in office, the inspector general may not at any time hold another public office. The |
|---|
| 92 | + | 3.24commission may not remove an inspector general from office before the expiration of the |
|---|
| 93 | + | 3.25term of service except for cause after public hearing. |
|---|
| 94 | + | 3.26 Subd. 4.Qualifications.The commission must select an inspector general without regard |
|---|
| 95 | + | 3.27to political affiliation and on the basis of outstanding professional qualifications and |
|---|
| 96 | + | 3.28demonstrated integrity, leadership, and ability in accounting, auditing, financial analysis, |
|---|
| 97 | + | 3.29law, management analysis, public administration, investigation, criminal justice, or a related |
|---|
| 98 | + | 3.30field. The inspector general must hold at the time of appointment, or be required by the |
|---|
| 99 | + | 3.31commission to obtain within a time certain after appointment, certification from the |
|---|
| 100 | + | 3.32Association of Inspectors General. |
|---|
| 168 | | - | REVISOR SGS H0001-4HF1 FOURTH ENGROSSMENT 6.1 (ii) there was a criminal, civil, or administrative adjudication of fraud, misuse, or other |
|---|
| 169 | | - | 6.2unlawful use of public funds against the recipient in Minnesota or in another state or |
|---|
| 170 | | - | 6.3jurisdiction; |
|---|
| 171 | | - | 6.4 (iii) the recipient was receiving funds under any contract or registered in any program |
|---|
| 172 | | - | 6.5administered by another Minnesota state agency, a government agency in another state, or |
|---|
| 173 | | - | 6.6a federal agency, and was under investigation or excluded from that contract or program |
|---|
| 174 | | - | 6.7for reasons credibly indicating fraud, misuse, or other unlawful use of public funds by the |
|---|
| 175 | | - | 6.8recipient; or |
|---|
| 176 | | - | 6.9 (iv) the recipient demonstrates a pattern of noncompliance with an investigation. |
|---|
| 177 | | - | 6.10When the inspector general makes a recommendation under this clause, the inspector general |
|---|
| 178 | | - | 6.11must immediately notify the Legislative Audit Commission; |
|---|
| 179 | | - | 6.12 (3) recommend actions to be taken by an agency to prevent fraud, misuse, and other |
|---|
| 180 | | - | 6.13unlawful uses of public funds; |
|---|
| 181 | | - | 6.14 (4) require agencies to provide suitable office space and facilities access for inspector |
|---|
| 182 | | - | 6.15general staff physically embedded within the agency; and |
|---|
| 183 | | - | 6.16 (5) monitor the implementation of requirements and recommendations issued by the |
|---|
| 184 | | - | 6.17office. |
|---|
| 185 | | - | 6.18 Sec. 10. [3.994] ENHANCED OVERSIGHT OF STATE GRANTMAKING. |
|---|
| 186 | | - | 6.19 The inspector general must provide enhanced legislative oversight of state grantmaking, |
|---|
| 187 | | - | 6.20including but not limited to: |
|---|
| 188 | | - | 6.21 (1) monitoring the commissioner of administration's development and implementation |
|---|
| 189 | | - | 6.22of policies under sections 16B.97 to 16B.991, and providing formal recommendations to |
|---|
| 190 | | - | 6.23the commissioner of administration and the Legislative Audit Commission; |
|---|
| 191 | | - | 6.24 (2) monitoring the commissioner of administration's suspension or debarment of grantees |
|---|
| 192 | | - | 6.25under section 16B.97, subdivision 3, clause (6), and recommending to the commissioner |
|---|
| 193 | | - | 6.26the suspension or debarment of specific grantees as necessary, in the inspector general's |
|---|
| 194 | | - | 6.27judgment, to prevent or minimize fraud, misuse, and other unlawful uses of public funds. |
|---|
| 195 | | - | 6.28When the inspector general makes a recommendation to the commissioner of administration |
|---|
| 196 | | - | 6.29under this clause, the inspector general must immediately report to the Legislative Audit |
|---|
| 197 | | - | 6.30Commission; |
|---|
| 198 | | - | 6.31 (3) monitoring the commissioner of administration's receipt and disposition of comments |
|---|
| 199 | | - | 6.32under section 16B.97, subdivision 4, clause (6), concerning alleged state agency violations |
|---|
| 167 | + | REVISOR SGS H0001-3HF1 THIRD ENGROSSMENT 6.1 (5) recommend that the commissioner of administration for state grants, or the |
|---|
| 168 | + | 6.2commissioner of management and budget for all other state funds, impose, in consultation |
|---|
| 169 | + | 6.3with law enforcement, appropriate temporary sanctions including the withholding of payment |
|---|
| 170 | + | 6.4to a recipient of state funds, if: |
|---|
| 171 | + | 6.5 (i) the inspector general determines there is credible indicia of fraud, misuse, or other |
|---|
| 172 | + | 6.6unlawful use of public funds by the recipient; |
|---|
| 173 | + | 6.7 (ii) there was a criminal, civil, or administrative adjudication of fraud, misuse, or other |
|---|
| 174 | + | 6.8unlawful use of public funds against the recipient in Minnesota or in another state or |
|---|
| 175 | + | 6.9jurisdiction; |
|---|
| 176 | + | 6.10 (iii) the recipient was receiving funds under any contract or registered in any program |
|---|
| 177 | + | 6.11administered by another Minnesota state agency, a government agency in another state, or |
|---|
| 178 | + | 6.12a federal agency, and was under investigation or excluded from that contract or program |
|---|
| 179 | + | 6.13for reasons credibly indicating fraud, misuse, or other unlawful use of public funds by the |
|---|
| 180 | + | 6.14recipient; or |
|---|
| 181 | + | 6.15 (iv) the recipient demonstrates a pattern of noncompliance with an investigation. |
|---|
| 182 | + | 6.16When the inspector general makes a recommendation under this clause, the inspector general |
|---|
| 183 | + | 6.17must immediately notify the Legislative Audit Commission; |
|---|
| 184 | + | 6.18 (6) require state employees to fully cooperate with an investigation of suspected fraud, |
|---|
| 185 | + | 6.19misuse, or other unlawful use of public funds; |
|---|
| 186 | + | 6.20 (7) recommend actions to be taken by an agency to prevent fraud, misuse, and other |
|---|
| 187 | + | 6.21unlawful uses of public funds; |
|---|
| 188 | + | 6.22 (8) require agencies to provide suitable office space and facilities access for inspector |
|---|
| 189 | + | 6.23general staff embedded within the agency; and |
|---|
| 190 | + | 6.24 (9) monitor the implementation of requirements and recommendations issued by the |
|---|
| 191 | + | 6.25office. |
|---|
| 192 | + | 6.26 Sec. 10. [3.994] ENHANCED OVERSIGHT OF STATE GRANTMAKING. |
|---|
| 193 | + | 6.27 The inspector general must provide enhanced legislative oversight of state grantmaking, |
|---|
| 194 | + | 6.28including but not limited to: |
|---|
| 195 | + | 6.29 (1) monitoring the commissioner of administration's development and implementation |
|---|
| 196 | + | 6.30of policies under sections 16B.97 to 16B.991, and providing formal recommendations to |
|---|
| 197 | + | 6.31the commissioner of administration and the Legislative Audit Commission; |
|---|
| 201 | | - | REVISOR SGS H0001-4HF1 FOURTH ENGROSSMENT 7.1of state grants management policies and fraud, misuse, or other unlawful use of state funds |
|---|
| 202 | | - | 7.2in grant programs; and |
|---|
| 203 | | - | 7.3 (4) monitoring state agency compliance with state grantmaking laws and policies, |
|---|
| 204 | | - | 7.4including but not limited to the site visit and progress report requirements under section |
|---|
| 205 | | - | 7.516B.97, subdivision 4, clause (11). |
|---|
| 206 | | - | 7.6 Sec. 11. [3.995] DATA PRACTICES. |
|---|
| 207 | | - | 7.7 (a) The inspector general has access to all government data regardless of classification. |
|---|
| 208 | | - | 7.8 (b) It is not a violation of rights conferred by chapter 13 or any other statute related to |
|---|
| 209 | | - | 7.9the confidentiality of government data for an agency to provide data or information to the |
|---|
| 210 | | - | 7.10inspector general. |
|---|
| 211 | | - | 7.11 (c) The inspector general is subject to the Government Data Practices Act, chapter 13, |
|---|
| 212 | | - | 7.12and must protect from unlawful disclosure data classified as not public. Data collected, |
|---|
| 213 | | - | 7.13created, received, or maintained by the inspector general relating to an investigation are |
|---|
| 214 | | - | 7.14subject to section 13.392. |
|---|
| 215 | | - | 7.15 (d) If data provided by the inspector general to the Legislative Audit Commission is |
|---|
| 216 | | - | 7.16disseminated by the commission or its members or agents in violation of section 13.05, |
|---|
| 217 | | - | 7.17subdivision 4, the commission is subject to liability under section 13.08, subdivisions 1 and |
|---|
| 218 | | - | 7.183. Members of the commission have access to not public data that is collected or used by |
|---|
| 219 | | - | 7.19the inspector general only as authorized by resolution of the commission. The commission |
|---|
| 220 | | - | 7.20may not authorize its members to have access to private or confidential data on individuals |
|---|
| 221 | | - | 7.21collected or used in connection with the collection of any tax. |
|---|
| 222 | | - | 7.22 Sec. 12. [3.996] RETALIATION PROHIBITED. |
|---|
| 223 | | - | 7.23 An employee or other individual who discloses information to an agency or the inspector |
|---|
| 224 | | - | 7.24general about suspected fraud, misuse, or other unlawful use of public funds in state programs |
|---|
| 225 | | - | 7.25is protected under section 181.932, governing disclosure of information by employees. |
|---|
| 226 | | - | 7.26 Sec. 13. [3.997] DUTY TO AID INSPECTOR GENERAL; PENALTIES. |
|---|
| 227 | | - | 7.27 Subdivision 1.Duty to aid.All public officials and their deputies and employees, and |
|---|
| 228 | | - | 7.28all corporations, firms, and individuals having business involving the receipt, disbursement, |
|---|
| 229 | | - | 7.29or custody of public funds must at all times: |
|---|
| 230 | | - | 7.30 (1) afford reasonable facilities for examination by the inspector general; |
|---|
| 231 | | - | 7.31 (2) provide returns and reports required by the inspector general; |
|---|
| 232 | | - | 7Article 1 Sec. 13. |
|---|
| 233 | | - | REVISOR SGS H0001-4HF1 FOURTH ENGROSSMENT 8.1 (3) attend and answer under oath the inspector general's lawful inquiries; |
|---|
| 234 | | - | 8.2 (4) produce and exhibit all books, accounts, documents, data of any classification, and |
|---|
| 235 | | - | 8.3property that the inspector general requests to inspect; and |
|---|
| 236 | | - | 8.4 (5) in all things cooperate with the inspector general. |
|---|
| 237 | | - | 8.5 Subd. 2.Penalties.(a) If a person refuses or neglects to obey any lawful direction of |
|---|
| 238 | | - | 8.6the inspector general or withholds any information, data, book, record, paper, or other |
|---|
| 239 | | - | 8.7document called for by the inspector general for the purpose of examination, after having |
|---|
| 240 | | - | 8.8been lawfully required by order or subpoena, upon application by the inspector general, a |
|---|
| 241 | | - | 8.9judge of the district court in the county where the order or subpoena was made returnable |
|---|
| 242 | | - | 8.10must compel obedience or punish disobedience as for contempt, as in the case of a similar |
|---|
| 243 | | - | 8.11order or subpoena issued by the court. |
|---|
| 244 | | - | 8.12 (b) A person who swears falsely to the inspector general concerning any matter stated |
|---|
| 245 | | - | 8.13under oath is guilty of a gross misdemeanor. |
|---|
| 246 | | - | 8.14 Sec. 14. [3.998] REPORTING REQUIRED. |
|---|
| 247 | | - | 8.15 (a) When the inspector general documents the existence of suspected fraud, misuse, or |
|---|
| 248 | | - | 8.16other unlawful use of public funds in an agency or program administered by an agency, the |
|---|
| 249 | | - | 8.17inspector general must quantify the amount of suspected fraud, misuse, and other unlawful |
|---|
| 250 | | - | 8.18use of public funds and report this amount to the Legislative Audit Commission and the |
|---|
| 251 | | - | 8.19chairs and ranking minority members of the legislative committees with jurisdiction over |
|---|
| 252 | | - | 8.20the agency's operating budget. |
|---|
| 253 | | - | 8.21 (b) By December 1, 2026, and by each December 1 thereafter, the inspector general |
|---|
| 254 | | - | 8.22must submit a report to the Legislative Audit Commission summarizing its activities for |
|---|
| 255 | | - | 8.23the past calendar year. The report must include but is not limited to: |
|---|
| 256 | | - | 8.24 (1) summary data, as defined in section 13.02, subdivision 19, for all reports or tips |
|---|
| 257 | | - | 8.25received, disaggregated by type of allegation, agency or program at issue, and disposition; |
|---|
| 258 | | - | 8.26 (2) the number of investigations conducted during the past calendar year; and |
|---|
| 259 | | - | 8.27 (3) for all investigations closed during the past calendar year, a list of the state agencies |
|---|
| 260 | | - | 8.28and programs investigated and summary information regarding each investigation's findings, |
|---|
| 261 | | - | 8.29actions taken by the inspector general as a result of those findings, and known outcomes. |
|---|
| 262 | | - | 8Article 1 Sec. 14. |
|---|
| 263 | | - | REVISOR SGS H0001-4HF1 FOURTH ENGROSSMENT 9.1 Sec. 15. [15.442] DETECTION AND PREVENTION OF FRAUD AND OTHER |
|---|
| 264 | | - | 9.2MISUSES OF PUBLIC FUNDS. |
|---|
| 265 | | - | 9.3 Subdivision 1.Definitions.(a) For purposes of this section, the following terms have |
|---|
| 266 | | - | 9.4the meanings given. |
|---|
| 267 | | - | 9.5 (b) "Agency" has the meaning given in section 3.99. |
|---|
| 268 | | - | 9.6 (c) "Obligated officer" means an agency's: |
|---|
| 269 | | - | 9.7 (1) chief executive officer; |
|---|
| 270 | | - | 9.8 (2) deputy and assistant chief executive officers; |
|---|
| 271 | | - | 9.9 (3) chief administrative, chief financial, chief information, and chief investigative officers; |
|---|
| 272 | | - | 9.10 (4) heads of divisions, bureaus, departments, institutes, or other such organizational |
|---|
| 273 | | - | 9.11units; and |
|---|
| 274 | | - | 9.12 (5) where applicable, board chair. |
|---|
| 275 | | - | 9.13 Subd. 2.Suspected fraud or other misuse.Notwithstanding any law to the contrary, |
|---|
| 276 | | - | 9.14if an obligated officer finds or receives credible indicia of fraud, misuse, or other unlawful |
|---|
| 277 | | - | 9.15use of public funds in a grant program or other program administered by the agency, the |
|---|
| 278 | | - | 9.16agency must: |
|---|
| 279 | | - | 9.17 (1) report to the appropriate law enforcement entity; |
|---|
| 280 | | - | 9.18 (2) report to the inspector general and the legislative auditor under section 609.456; |
|---|
| 281 | | - | 9.19 (3) fully cooperate with law enforcement and the inspector general, including but not |
|---|
| 282 | | - | 9.20limited to assisting in any investigation and subsequent civil or criminal prosecution; and |
|---|
| 283 | | - | 9.21 (4) if approved or directed by law enforcement, stop payment, increase oversight, or |
|---|
| 284 | | - | 9.22take other action necessary to prevent further suspected fraud or misuse of public funds in |
|---|
| 285 | | - | 9.23the program. |
|---|
| 286 | | - | 9.24 Subd. 3.Identification of fraud reporting tools.(a) The commissioner or other chief |
|---|
| 287 | | - | 9.25executive officer of each agency must prominently highlight on the agency's website the |
|---|
| 288 | | - | 9.26fraud reporting tools administered by the Office of the Inspector General and the Office of |
|---|
| 289 | | - | 9.27the Legislative Auditor under chapter 3. |
|---|
| 290 | | - | 9.28 (b) As part of any grant agreement between the state and a nonprofit organization, the |
|---|
| 291 | | - | 9.29agreement must require the nonprofit organization to prominently highlight on the |
|---|
| 292 | | - | 9.30organization's website the fraud reporting tools administered by the Office of the Inspector |
|---|
| 293 | | - | 9.31General and the Office of the Legislative Auditor under chapter 3. The state agency |
|---|
| 294 | | - | 9Article 1 Sec. 15. |
|---|
| 295 | | - | REVISOR SGS H0001-4HF1 FOURTH ENGROSSMENT 10.1administering the grant must regularly confirm and document the organization's compliance |
|---|
| 296 | | - | 10.2with the requirement under this paragraph for the life of the grant agreement. |
|---|
| 297 | | - | 10.3 Sec. 16. Minnesota Statutes 2024, section 609.456, subdivision 2, is amended to read: |
|---|
| 298 | | - | 10.4 Subd. 2.Legislative auditor and inspector general.Whenever an employee or officer |
|---|
| 299 | | - | 10.5of the state, University of Minnesota, or other organization listed in section 3.971, subdivision |
|---|
| 300 | | - | 10.66, discovers evidence of fraud, theft, embezzlement, or other unlawful use of public funds |
|---|
| 301 | | - | 10.7or property, the employee or officer shall, except when to do so would knowingly impede |
|---|
| 302 | | - | 10.8or otherwise interfere with an ongoing criminal investigation, promptly report in writing to |
|---|
| 303 | | - | 10.9the legislative auditor and inspector general a detailed description of the alleged incident |
|---|
| 304 | | - | 10.10or incidents. |
|---|
| 305 | | - | 10.11Sec. 17. APPROPRIATION. |
|---|
| 306 | | - | 10.12 $....... in fiscal year 2026 and $....... in fiscal year 2027 are appropriated from the general |
|---|
| 307 | | - | 10.13fund to the inspector general for purposes of this act. |
|---|
| 308 | | - | 10.14Sec. 18. APPROPRIATION. |
|---|
| 309 | | - | 10.15 $....... in fiscal year 2026 and $....... in fiscal year 2027 are appropriated from the general |
|---|
| 310 | | - | 10.16fund to the legislative auditor. The amount each year is in addition to the legislative auditor's |
|---|
| 311 | | - | 10.17base general fund budget. |
|---|
| 312 | | - | 10.18Sec. 19. EFFECTIVE DATE. |
|---|
| 313 | | - | 10.19 This article is effective July 1, 2025. |
|---|
| 314 | | - | 10.20 ARTICLE 2 |
|---|
| 315 | | - | 10.21 CONFORMING ITEMS AND REPEALERS |
|---|
| 316 | | - | 10.22Section 1. Minnesota Statutes 2024, section 3.855, subdivision 3, is amended to read: |
|---|
| 317 | | - | 10.23 Subd. 3.Other salary and compensation plan plans.The commission shall review |
|---|
| 318 | | - | 10.24and approve or reject the plan for compensation, terms, and conditions of employment of |
|---|
| 319 | | - | 10.25classified employees in the office of the legislative auditor under section 3.971, subdivision |
|---|
| 320 | | - | 10.262, and a plan for compensation, terms, and conditions of employment for employees of the |
|---|
| 321 | | - | 10.27Office of the Inspector General under section 3.991, subdivision 5. |
|---|
| 322 | | - | 10Article 2 Section 1. |
|---|
| 323 | | - | REVISOR SGS H0001-4HF1 FOURTH ENGROSSMENT 11.1 Sec. 2. Minnesota Statutes 2024, section 16B.97, subdivision 2, is amended to read: |
|---|
| 324 | | - | 11.2 Subd. 2.Grants governance.The commissioner shall provide leadership and direction |
|---|
| 325 | | - | 11.3for policy related to grants management in Minnesota in order to foster more consistent, |
|---|
| 326 | | - | 11.4streamlined interaction between executive agencies, funders, and grantees that will enhance |
|---|
| 327 | | - | 11.5access to grant opportunities and information, prevent fraud, misuse, and other unlawful |
|---|
| 328 | | - | 11.6uses of public funds, and lead to greater program accountability and transparency. The |
|---|
| 329 | | - | 11.7commissioner has the duties and powers stated in this section. Executive agencies shall |
|---|
| 330 | | - | 11.8fully cooperate with the commissioner in the creation, management, and oversight of state |
|---|
| 331 | | - | 11.9grants and must do what the commissioner requires under this section. The commissioner |
|---|
| 332 | | - | 11.10may adopt rules to carry out grants governance, oversight, and management. |
|---|
| 333 | | - | 11.11Sec. 3. Minnesota Statutes 2024, section 16B.97, subdivision 4, is amended to read: |
|---|
| 334 | | - | 11.12 Subd. 4.Duties.(a) The commissioner shall: |
|---|
| 335 | | - | 11.13 (1) create general grants management policies and procedures that are applicable to all |
|---|
| 336 | | - | 11.14executive agencies. The commissioner may approve exceptions to these policies and |
|---|
| 337 | | - | 11.15procedures for particular grant programs, however the commissioner must not approve an |
|---|
| 338 | | - | 11.16exception to the requirements under clause (11) for any grant over $500,000. Exceptions |
|---|
| 339 | | - | 11.17shall expire or be renewed after five years. The commissioner must report each approved |
|---|
| 340 | | - | 11.18exception to the inspector general and the chairs and ranking minority members of the |
|---|
| 341 | | - | 11.19legislative committees with jurisdiction over the agency. If a grant is suspended under |
|---|
| 342 | | - | 11.20section 16B.991, subdivision 1, the commissioner must revoke for at least 12 months any |
|---|
| 343 | | - | 11.21approved exception to the requirements under clause (11) for that particular grant program, |
|---|
| 344 | | - | 11.22but the commissioner's revocation only applies to any grant over $50,000. Executive agencies |
|---|
| 345 | | - | 11.23shall retain management of individual grants programs; |
|---|
| 346 | | - | 11.24 (2) provide a central point of contact concerning statewide grants management policies |
|---|
| 347 | | - | 11.25and procedures; |
|---|
| 348 | | - | 11.26 (3) serve as a resource to executive agencies in such areas as training, evaluation, |
|---|
| 349 | | - | 11.27collaboration, and best practices in grants management; |
|---|
| 350 | | - | 11.28 (4) ensure grants management needs are considered in the development, upgrade, and |
|---|
| 351 | | - | 11.29use of statewide administrative systems and leverage existing technology wherever possible; |
|---|
| 352 | | - | 11.30 (5) oversee and approve future professional and technical service contracts and other |
|---|
| 353 | | - | 11.31information technology spending related to executive agency grants management systems |
|---|
| 354 | | - | 11.32and activities; |
|---|
| 199 | + | REVISOR SGS H0001-3HF1 THIRD ENGROSSMENT 7.1 (2) monitoring the commissioner of administration's suspension or debarment of grantees |
|---|
| 200 | + | 7.2under section 16B.97, subdivision 3, clause (6), and recommending to the commissioner |
|---|
| 201 | + | 7.3the suspension or debarment of specific grantees as necessary, in the inspector general's |
|---|
| 202 | + | 7.4judgment, to prevent or minimize fraud, misuse, and other unlawful uses of public funds. |
|---|
| 203 | + | 7.5When the inspector general makes a recommendation to the commissioner of administration |
|---|
| 204 | + | 7.6under this clause, the inspector general must immediately report to the Legislative Audit |
|---|
| 205 | + | 7.7Commission; |
|---|
| 206 | + | 7.8 (3) monitoring the commissioner of administration's receipt and disposition of comments |
|---|
| 207 | + | 7.9under section 16B.97, subdivision 4, clause (6), concerning alleged state agency violations |
|---|
| 208 | + | 7.10of state grants management policies and fraud, misuse, or other unlawful use of state funds |
|---|
| 209 | + | 7.11in grant programs; and |
|---|
| 210 | + | 7.12 (4) monitoring state agency compliance with state grantmaking laws and policies, |
|---|
| 211 | + | 7.13including but not limited to the site visit and progress report requirements under section |
|---|
| 212 | + | 7.1416B.97, subdivision 4, clause (11). |
|---|
| 213 | + | 7.15 Sec. 11. [3.995] DATA PRACTICES. |
|---|
| 214 | + | 7.16 (a) The inspector general has access to all government data regardless of classification. |
|---|
| 215 | + | 7.17 (b) It is not a violation of rights conferred by chapter 13 or any other statute related to |
|---|
| 216 | + | 7.18the confidentiality of government data for an agency to provide data or information to the |
|---|
| 217 | + | 7.19inspector general. |
|---|
| 218 | + | 7.20 (c) The inspector general is subject to the Government Data Practices Act, chapter 13, |
|---|
| 219 | + | 7.21and must protect from unlawful disclosure data classified as not public. Data collected, |
|---|
| 220 | + | 7.22created, received, or maintained by the inspector general relating to an investigation are |
|---|
| 221 | + | 7.23subject to section 13.39. |
|---|
| 222 | + | 7.24 (d) If data provided by the inspector general to the Legislative Audit Commission is |
|---|
| 223 | + | 7.25disseminated by the commission or its members or agents in violation of section 13.05, |
|---|
| 224 | + | 7.26subdivision 4, the commission is subject to liability under section 13.08, subdivisions 1 and |
|---|
| 225 | + | 7.273. Members of the commission have access to not public data that is collected or used by |
|---|
| 226 | + | 7.28the inspector general only as authorized by resolution of the commission. The commission |
|---|
| 227 | + | 7.29may not authorize its members to have access to private or confidential data on individuals |
|---|
| 228 | + | 7.30collected or used in connection with the collection of any tax. |
|---|
| 229 | + | 7Article 1 Sec. 11. |
|---|
| 230 | + | REVISOR SGS H0001-3HF1 THIRD ENGROSSMENT 8.1 Sec. 12. [3.996] RETALIATION PROHIBITED. |
|---|
| 231 | + | 8.2 An employee or other individual who discloses information to an agency or the inspector |
|---|
| 232 | + | 8.3general about fraud, misuse, or other unlawful use of public funds in state programs is |
|---|
| 233 | + | 8.4protected under section 181.932, governing disclosure of information by employees. |
|---|
| 234 | + | 8.5 Sec. 13. [3.997] INTERFERENCE PROHIBITED. |
|---|
| 235 | + | 8.6 No state employee may interfere with or obstruct an investigation conducted pursuant |
|---|
| 236 | + | 8.7to sections 3.991 to 3.998. |
|---|
| 237 | + | 8.8 Sec. 14. [3.998] REPORTING REQUIRED. |
|---|
| 238 | + | 8.9 When the inspector general documents the existence of suspected fraud, misuse, or other |
|---|
| 239 | + | 8.10unlawful use of public funds in an agency or program administered by an agency, the |
|---|
| 240 | + | 8.11inspector general must quantify the amount of suspected fraud, misuse, and other unlawful |
|---|
| 241 | + | 8.12use of public funds and report this amount to the Legislative Audit Commission and the |
|---|
| 242 | + | 8.13chairs and ranking minority members of the legislative committees with jurisdiction over |
|---|
| 243 | + | 8.14the agency's operating budget. |
|---|
| 244 | + | 8.15 Sec. 15. [15.442] DETECTION AND PREVENTION OF FRAUD AND OTHER |
|---|
| 245 | + | 8.16MISUSES OF PUBLIC FUNDS. |
|---|
| 246 | + | 8.17 Subdivision 1.Definitions.(a) For purposes of this section, the following terms have |
|---|
| 247 | + | 8.18the meanings given. |
|---|
| 248 | + | 8.19 (b) "Agency" has the meaning given in section 3.99. |
|---|
| 249 | + | 8.20 (c) "Obligated officer" means an agency's: |
|---|
| 250 | + | 8.21 (1) chief executive officer; |
|---|
| 251 | + | 8.22 (2) deputy and assistant chief executive officers; |
|---|
| 252 | + | 8.23 (3) chief administrative, chief financial, chief information, and chief investigative officers; |
|---|
| 253 | + | 8.24 (4) heads of divisions, bureaus, departments, institutes, or other such organizational |
|---|
| 254 | + | 8.25units; and |
|---|
| 255 | + | 8.26 (5) where applicable, board chair. |
|---|
| 256 | + | 8.27 Subd. 2.Suspected fraud or other misuse.Notwithstanding any law to the contrary, |
|---|
| 257 | + | 8.28if an obligated officer finds or receives credible indicia of fraud, misuse, or other unlawful |
|---|
| 258 | + | 8.29use of public funds in a grant program or other program administered by the agency, the |
|---|
| 259 | + | 8.30agency must: |
|---|
| 260 | + | 8Article 1 Sec. 15. |
|---|
| 261 | + | REVISOR SGS H0001-3HF1 THIRD ENGROSSMENT 9.1 (1) report to the appropriate law enforcement entity; |
|---|
| 262 | + | 9.2 (2) report to the inspector general and the legislative auditor under section 609.456; |
|---|
| 263 | + | 9.3 (3) fully cooperate with law enforcement and the inspector general, including but not |
|---|
| 264 | + | 9.4limited to assisting in any investigation and subsequent civil or criminal prosecution; and |
|---|
| 265 | + | 9.5 (4) if approved or directed by law enforcement, stop payment, increase oversight, or |
|---|
| 266 | + | 9.6take other action necessary to prevent further suspected fraud or misuse of public funds in |
|---|
| 267 | + | 9.7the program. |
|---|
| 268 | + | 9.8 Subd. 3.Identification of fraud reporting tools.(a) The commissioner or other chief |
|---|
| 269 | + | 9.9executive officer of each agency must prominently highlight on the agency's website the |
|---|
| 270 | + | 9.10fraud reporting tools administered by the Office of the Inspector General and the Office of |
|---|
| 271 | + | 9.11the Legislative Auditor under chapter 3. |
|---|
| 272 | + | 9.12 (b) As part of any grant agreement between the state and a nonprofit organization, the |
|---|
| 273 | + | 9.13agreement must require the nonprofit organization to prominently highlight on the |
|---|
| 274 | + | 9.14organization's website the fraud reporting tools administered by the Office of the Inspector |
|---|
| 275 | + | 9.15General and the Office of the Legislative Auditor under chapter 3. The state agency |
|---|
| 276 | + | 9.16administering the grant must regularly confirm and document the organization's compliance |
|---|
| 277 | + | 9.17with the requirement under this paragraph for the life of the grant agreement. |
|---|
| 278 | + | 9.18 Sec. 16. Minnesota Statutes 2024, section 609.456, subdivision 2, is amended to read: |
|---|
| 279 | + | 9.19 Subd. 2.Legislative auditor and inspector general.Whenever an employee or officer |
|---|
| 280 | + | 9.20of the state, University of Minnesota, or other organization listed in section 3.971, subdivision |
|---|
| 281 | + | 9.216, discovers evidence of fraud, theft, embezzlement, or other unlawful use of public funds |
|---|
| 282 | + | 9.22or property, the employee or officer shall, except when to do so would knowingly impede |
|---|
| 283 | + | 9.23or otherwise interfere with an ongoing criminal investigation, promptly report in writing to |
|---|
| 284 | + | 9.24the legislative auditor and inspector general a detailed description of the alleged incident |
|---|
| 285 | + | 9.25or incidents. |
|---|
| 286 | + | 9.26 Sec. 17. APPROPRIATION. |
|---|
| 287 | + | 9.27 $....... in fiscal year 2026 and $....... in fiscal year 2027 are appropriated from the general |
|---|
| 288 | + | 9.28fund to the inspector general for purposes of this act. |
|---|
| 289 | + | 9Article 1 Sec. 17. |
|---|
| 290 | + | REVISOR SGS H0001-3HF1 THIRD ENGROSSMENT 10.1 Sec. 18. APPROPRIATION. |
|---|
| 291 | + | 10.2 $....... in fiscal year 2026 and $....... in fiscal year 2027 are appropriated from the general |
|---|
| 292 | + | 10.3fund to the legislative auditor. The amount each year is in addition to the legislative auditor's |
|---|
| 293 | + | 10.4base general fund budget. |
|---|
| 294 | + | 10.5 Sec. 19. EFFECTIVE DATE. |
|---|
| 295 | + | 10.6 This article is effective July 1, 2025. |
|---|
| 296 | + | 10.7 ARTICLE 2 |
|---|
| 297 | + | 10.8 CONFORMING ITEMS AND REPEALERS |
|---|
| 298 | + | 10.9 Section 1. Minnesota Statutes 2024, section 3.855, subdivision 3, is amended to read: |
|---|
| 299 | + | 10.10 Subd. 3.Other salary and compensation plan plans.The commission shall review |
|---|
| 300 | + | 10.11and approve or reject the plan for compensation, terms, and conditions of employment of |
|---|
| 301 | + | 10.12classified employees in the office of the legislative auditor under section 3.971, subdivision |
|---|
| 302 | + | 10.132, and a plan for compensation, terms, and conditions of employment for employees of the |
|---|
| 303 | + | 10.14Office of the Inspector General under section 3.991, subdivision 5. |
|---|
| 304 | + | 10.15Sec. 2. Minnesota Statutes 2024, section 16B.97, subdivision 2, is amended to read: |
|---|
| 305 | + | 10.16 Subd. 2.Grants governance.The commissioner shall provide leadership and direction |
|---|
| 306 | + | 10.17for policy related to grants management in Minnesota in order to foster more consistent, |
|---|
| 307 | + | 10.18streamlined interaction between executive agencies, funders, and grantees that will enhance |
|---|
| 308 | + | 10.19access to grant opportunities and information, prevent fraud, misuse, and other unlawful |
|---|
| 309 | + | 10.20uses of public funds, and lead to greater program accountability and transparency. The |
|---|
| 310 | + | 10.21commissioner has the duties and powers stated in this section. Executive agencies shall |
|---|
| 311 | + | 10.22fully cooperate with the commissioner in the creation, management, and oversight of state |
|---|
| 312 | + | 10.23grants and must do what the commissioner requires under this section. The commissioner |
|---|
| 313 | + | 10.24may adopt rules to carry out grants governance, oversight, and management. |
|---|
| 314 | + | 10.25Sec. 3. Minnesota Statutes 2024, section 16B.97, subdivision 4, is amended to read: |
|---|
| 315 | + | 10.26 Subd. 4.Duties.(a) The commissioner shall: |
|---|
| 316 | + | 10.27 (1) create general grants management policies and procedures that are applicable to all |
|---|
| 317 | + | 10.28executive agencies. The commissioner may approve exceptions to these policies and |
|---|
| 318 | + | 10.29procedures for particular grant programs, however the commissioner must not approve an |
|---|
| 319 | + | 10.30exception to the requirements under clause (11) for any grant over $500,000. Exceptions |
|---|
| 320 | + | 10Article 2 Sec. 3. |
|---|
| 321 | + | REVISOR SGS H0001-3HF1 THIRD ENGROSSMENT 11.1shall expire or be renewed after five years. The commissioner must report each approved |
|---|
| 322 | + | 11.2exception to the inspector general and the chairs and ranking minority members of the |
|---|
| 323 | + | 11.3legislative committees with jurisdiction over the agency. If a grant is suspended under |
|---|
| 324 | + | 11.4section 16B.991, subdivision 1, the commissioner must revoke for at least 12 months any |
|---|
| 325 | + | 11.5approved exception to the requirements under clause (11) for that particular grant program, |
|---|
| 326 | + | 11.6but the commissioner's revocation only applies to any grant over $50,000. Executive agencies |
|---|
| 327 | + | 11.7shall retain management of individual grants programs; |
|---|
| 328 | + | 11.8 (2) provide a central point of contact concerning statewide grants management policies |
|---|
| 329 | + | 11.9and procedures; |
|---|
| 330 | + | 11.10 (3) serve as a resource to executive agencies in such areas as training, evaluation, |
|---|
| 331 | + | 11.11collaboration, and best practices in grants management; |
|---|
| 332 | + | 11.12 (4) ensure grants management needs are considered in the development, upgrade, and |
|---|
| 333 | + | 11.13use of statewide administrative systems and leverage existing technology wherever possible; |
|---|
| 334 | + | 11.14 (5) oversee and approve future professional and technical service contracts and other |
|---|
| 335 | + | 11.15information technology spending related to executive agency grants management systems |
|---|
| 336 | + | 11.16and activities; |
|---|
| 337 | + | 11.17 (6) provide a central point of contact for comments about executive agencies violating |
|---|
| 338 | + | 11.18statewide grants governance policies and about fraud, misuse, and waste other unlawful |
|---|
| 339 | + | 11.19uses of public funds in grants processes; |
|---|
| 340 | + | 11.20 (7) forward received comments to the appropriate agency for further action, and may |
|---|
| 341 | + | 11.21follow up as necessary; |
|---|
| 342 | + | 11.22 (8) provide a single listing of all available executive agency competitive grant |
|---|
| 343 | + | 11.23opportunities and resulting grant recipients; |
|---|
| 344 | + | 11.24 (9) selectively review development and implementation of executive agency grants, |
|---|
| 345 | + | 11.25policies, and practices; and |
|---|
| 346 | + | 11.26 (10) selectively review executive agency compliance with best practices.; and |
|---|
| 347 | + | 11.27 (11) require executive agencies to: |
|---|
| 348 | + | 11.28 (i) conduct at least one in-person, unannounced monitoring visit before final payment |
|---|
| 349 | + | 11.29is made for any grant over $50,000 and at least annual in-person, unannounced monitoring |
|---|
| 350 | + | 11.30visits for any grant over $250,000; and |
|---|
| 351 | + | 11.31 (ii) withhold funds from any grantee that does not submit a progress report required |
|---|
| 352 | + | 11.32under the grant agreement until the grantee submits a satisfactory report, unless the grantee's |
|---|
| 356 | | - | REVISOR SGS H0001-4HF1 FOURTH ENGROSSMENT 12.1 (6) provide a central point of contact for comments about executive agencies violating |
|---|
| 357 | | - | 12.2statewide grants governance policies and about fraud, misuse, and waste other unlawful |
|---|
| 358 | | - | 12.3uses of public funds in grants processes; |
|---|
| 359 | | - | 12.4 (7) forward received comments to the appropriate agency for further action, and may |
|---|
| 360 | | - | 12.5follow up as necessary; |
|---|
| 361 | | - | 12.6 (8) provide a single listing of all available executive agency competitive grant |
|---|
| 362 | | - | 12.7opportunities and resulting grant recipients; |
|---|
| 363 | | - | 12.8 (9) selectively review development and implementation of executive agency grants, |
|---|
| 364 | | - | 12.9policies, and practices; and |
|---|
| 365 | | - | 12.10 (10) selectively review executive agency compliance with best practices.; and |
|---|
| 366 | | - | 12.11 (11) require executive agencies to: |
|---|
| 367 | | - | 12.12 (i) conduct at least one in-person, unannounced monitoring visit before final payment |
|---|
| 368 | | - | 12.13is made for any grant over $50,000 and at least annual in-person, unannounced monitoring |
|---|
| 369 | | - | 12.14visits for any grant over $250,000; and |
|---|
| 370 | | - | 12.15 (ii) withhold funds from any grantee that does not submit a progress report required |
|---|
| 371 | | - | 12.16under the grant agreement until the grantee submits a satisfactory report, unless the grantee's |
|---|
| 372 | | - | 12.17inability to submit a progress report is caused by the executive agency, including but not |
|---|
| 373 | | - | 12.18limited to a malfunction or failure of the executive agency's grant portal. |
|---|
| 374 | | - | 12.19 (b) The commissioner may determine that it is cost-effective for agencies to develop |
|---|
| 375 | | - | 12.20and use shared grants management technology systems. This system would be governed |
|---|
| 376 | | - | 12.21under section 16E.01, subdivision 3, paragraph (b). |
|---|
| 377 | | - | 12.22Sec. 4. Minnesota Statutes 2024, section 16B.98, subdivision 4, is amended to read: |
|---|
| 378 | | - | 12.23 Subd. 4.Reporting of violations.A state employee who discovers evidence of violation |
|---|
| 379 | | - | 12.24of laws or rules governing grants is encouraged to must report the violation or suspected |
|---|
| 380 | | - | 12.25violation to the employee's supervisor, the commissioner or the commissioner's designee, |
|---|
| 381 | | - | 12.26the inspector general, or the legislative auditor. If the state employee notifies the employee's |
|---|
| 382 | | - | 12.27supervisor, the commissioner, or the commissioner's designee, then the supervisor, |
|---|
| 383 | | - | 12.28commissioner, or commissioner's designee must immediately notify the inspector general |
|---|
| 384 | | - | 12.29and the legislative auditor. The legislative auditor inspector general shall report to the |
|---|
| 385 | | - | 12.30Legislative Audit Commission if there are multiple complaints about the same agency. The |
|---|
| 386 | | - | 12.31auditor's report to the Legislative Audit Commission under this section must disclose only |
|---|
| 387 | | - | 12.32the number and type of violations alleged. An employee making a good faith report under |
|---|
| 388 | | - | 12Article 2 Sec. 4. |
|---|
| 389 | | - | REVISOR SGS H0001-4HF1 FOURTH ENGROSSMENT 13.1this section has the protections provided for under section 181.932, prohibiting the employer |
|---|
| 390 | | - | 13.2from discriminating against the employee. |
|---|
| 391 | | - | 13.3 Sec. 5. Minnesota Statutes 2024, section 16B.98, subdivision 8, is amended to read: |
|---|
| 392 | | - | 13.4 Subd. 8.Audit.(a) A grant agreement made by an executive agency must include an |
|---|
| 393 | | - | 13.5audit clause that provides that the books, records, documents, and accounting procedures |
|---|
| 394 | | - | 13.6and practices of the grantee or other party that are relevant to the grant or transaction are |
|---|
| 395 | | - | 13.7subject to examination by the commissioner, the granting agency, the inspector general, |
|---|
| 396 | | - | 13.8and either the legislative auditor or the state auditor, as appropriate, for a minimum of six |
|---|
| 397 | | - | 13.9years from the grant agreement end date, receipt and approval of all final reports, or the |
|---|
| 398 | | - | 13.10required period of time to satisfy all state and program retention requirements, whichever |
|---|
| 399 | | - | 13.11is later. If a grant agreement does not include an express audit clause, the audit authority |
|---|
| 400 | | - | 13.12under this subdivision is implied. |
|---|
| 401 | | - | 13.13 (b) If the granting agency is a local unit of government, and the governing body of the |
|---|
| 402 | | - | 13.14local unit of government requests that the state auditor examine the books, records, |
|---|
| 403 | | - | 13.15documents, and accounting procedures and practices of the grantee or other party according |
|---|
| 404 | | - | 13.16to this subdivision, the granting agency shall be liable for the cost of the examination. If |
|---|
| 405 | | - | 13.17the granting agency is a local unit of government, and the grantee or other party requests |
|---|
| 406 | | - | 13.18that the state auditor examine all books, records, documents, and accounting procedures |
|---|
| 407 | | - | 13.19and practices related to the grant, the grantee or other party that requested the examination |
|---|
| 408 | | - | 13.20shall be liable for the cost of the examination. |
|---|
| 409 | | - | 13.21Sec. 6. Minnesota Statutes 2024, section 16B.98, subdivision 14, is amended to read: |
|---|
| 410 | | - | 13.22 Subd. 14.Administrative costs.Unless amounts are otherwise appropriated for |
|---|
| 411 | | - | 13.23administrative costs, a state agency may retain up to five four percent of the amount |
|---|
| 412 | | - | 13.24appropriated to the agency for grants enacted by the legislature and formula grants and up |
|---|
| 413 | | - | 13.25to ten nine percent for competitively awarded grants. This subdivision applies to |
|---|
| 414 | | - | 13.26appropriations made for new grant programs enacted on or after July 1, 2023. The state |
|---|
| 415 | | - | 13.27agency must transfer one percent of the amount appropriated to the agency for grants to the |
|---|
| 416 | | - | 13.28inspector general established under section 3.991. This subdivision does not apply to grants |
|---|
| 417 | | - | 13.29funded with an appropriation of proceeds from the sale of state general obligation bonds. |
|---|
| 418 | | - | 13.30Sec. 7. Minnesota Statutes 2024, section 16B.991, subdivision 1, is amended to read: |
|---|
| 419 | | - | 13.31 Subdivision 1.Criminal charge or conviction.Each grant agreement subject to sections |
|---|
| 420 | | - | 13.3216B.97 and 16B.98 must provide that the agreement will immediately be terminated |
|---|
| 421 | | - | 13Article 2 Sec. 7. |
|---|
| 422 | | - | REVISOR SGS H0001-4HF1 FOURTH ENGROSSMENT 14.1suspended if the recipient is convicted of charged with a criminal offense relating to a state |
|---|
| 423 | | - | 14.2grant agreement and terminated if the recipient is convicted. |
|---|
| 424 | | - | 14.3 Sec. 8. Minnesota Statutes 2024, section 142B.53, is amended to read: |
|---|
| 425 | | - | 14.4 142B.53 MANDATORY REPORTING. |
|---|
| 426 | | - | 14.5 Any individual engaging in licensing functions and activities under this chapter, including |
|---|
| 427 | | - | 14.6authorities delegated under section 142B.30, must immediately report any suspected fraud |
|---|
| 428 | | - | 14.7to county children, youth, and families investigators or and the Department of Children, |
|---|
| 429 | | - | 14.8Youth, and Families Office of the Inspector General. |
|---|
| 430 | | - | 14.9 Sec. 9. Minnesota Statutes 2024, section 245A.24, is amended to read: |
|---|
| 431 | | - | 14.10 245A.24 MANDATORY REPORTING. |
|---|
| 432 | | - | 14.11 Any individual engaging in licensing functions and activities under this chapter, including |
|---|
| 433 | | - | 14.12authorities delegated under section 245A.16, must immediately report any suspected fraud |
|---|
| 434 | | - | 14.13to county human services investigators or the Department of Human Services Office of |
|---|
| 435 | | - | 14.14Inspector General, and the Office of the Inspector General for the purposes of an investigation |
|---|
| 436 | | - | 14.15conducted under section 3.991. |
|---|
| 437 | | - | 14.16Sec. 10. Minnesota Statutes 2024, section 268.19, subdivision 1, is amended to read: |
|---|
| 438 | | - | 14.17 Subdivision 1.Use of data.(a) Except as provided by this section, data gathered from |
|---|
| 439 | | - | 14.18any person under the administration of the Minnesota Unemployment Insurance Law are |
|---|
| 440 | | - | 14.19private data on individuals or nonpublic data not on individuals as defined in section 13.02, |
|---|
| 441 | | - | 14.20subdivisions 9 and 12, and may not be disclosed except according to a district court order |
|---|
| 442 | | - | 14.21or section 13.05. A subpoena is not considered a district court order. These data may be |
|---|
| 443 | | - | 14.22disseminated to and used by the following agencies without the consent of the subject of |
|---|
| 444 | | - | 14.23the data: |
|---|
| 445 | | - | 14.24 (1) state and federal agencies specifically authorized access to the data by state or federal |
|---|
| 446 | | - | 14.25law; |
|---|
| 447 | | - | 14.26 (2) any agency of any other state or any federal agency charged with the administration |
|---|
| 448 | | - | 14.27of an unemployment insurance program; |
|---|
| 449 | | - | 14.28 (3) any agency responsible for the maintenance of a system of public employment offices |
|---|
| 450 | | - | 14.29for the purpose of assisting individuals in obtaining employment; |
|---|
| 451 | | - | 14.30 (4) the public authority responsible for child support in Minnesota or any other state in |
|---|
| 452 | | - | 14.31accordance with section 518A.83; |
|---|
| 354 | + | REVISOR SGS H0001-3HF1 THIRD ENGROSSMENT 12.1inability to submit a progress report is caused by the executive agency, including but not |
|---|
| 355 | + | 12.2limited to a malfunction or failure of the executive agency's grant portal. |
|---|
| 356 | + | 12.3 (b) The commissioner may determine that it is cost-effective for agencies to develop |
|---|
| 357 | + | 12.4and use shared grants management technology systems. This system would be governed |
|---|
| 358 | + | 12.5under section 16E.01, subdivision 3, paragraph (b). |
|---|
| 359 | + | 12.6 Sec. 4. Minnesota Statutes 2024, section 16B.98, subdivision 4, is amended to read: |
|---|
| 360 | + | 12.7 Subd. 4.Reporting of violations.A state employee who discovers evidence of violation |
|---|
| 361 | + | 12.8of laws or rules governing grants is encouraged to must report the violation or suspected |
|---|
| 362 | + | 12.9violation to the employee's supervisor, the commissioner or the commissioner's designee, |
|---|
| 363 | + | 12.10the inspector general, or the legislative auditor. If the state employee notifies the employee's |
|---|
| 364 | + | 12.11supervisor, the commissioner, or the commissioner's designee, then the supervisor, |
|---|
| 365 | + | 12.12commissioner, or commissioner's designee must immediately notify the inspector general |
|---|
| 366 | + | 12.13and the legislative auditor. The legislative auditor inspector general shall report to the |
|---|
| 367 | + | 12.14Legislative Audit Commission if there are multiple complaints about the same agency. The |
|---|
| 368 | + | 12.15auditor's report to the Legislative Audit Commission under this section must disclose only |
|---|
| 369 | + | 12.16the number and type of violations alleged. An employee making a good faith report under |
|---|
| 370 | + | 12.17this section has the protections provided for under section 181.932, prohibiting the employer |
|---|
| 371 | + | 12.18from discriminating against the employee. |
|---|
| 372 | + | 12.19Sec. 5. Minnesota Statutes 2024, section 16B.98, subdivision 8, is amended to read: |
|---|
| 373 | + | 12.20 Subd. 8.Audit.(a) A grant agreement made by an executive agency must include an |
|---|
| 374 | + | 12.21audit clause that provides that the books, records, documents, and accounting procedures |
|---|
| 375 | + | 12.22and practices of the grantee or other party that are relevant to the grant or transaction are |
|---|
| 376 | + | 12.23subject to examination by the commissioner, the granting agency, the inspector general, |
|---|
| 377 | + | 12.24and either the legislative auditor or the state auditor, as appropriate, for a minimum of six |
|---|
| 378 | + | 12.25years from the grant agreement end date, receipt and approval of all final reports, or the |
|---|
| 379 | + | 12.26required period of time to satisfy all state and program retention requirements, whichever |
|---|
| 380 | + | 12.27is later. If a grant agreement does not include an express audit clause, the audit authority |
|---|
| 381 | + | 12.28under this subdivision is implied. |
|---|
| 382 | + | 12.29 (b) If the granting agency is a local unit of government, and the governing body of the |
|---|
| 383 | + | 12.30local unit of government requests that the state auditor examine the books, records, |
|---|
| 384 | + | 12.31documents, and accounting procedures and practices of the grantee or other party according |
|---|
| 385 | + | 12.32to this subdivision, the granting agency shall be liable for the cost of the examination. If |
|---|
| 386 | + | 12.33the granting agency is a local unit of government, and the grantee or other party requests |
|---|
| 387 | + | 12Article 2 Sec. 5. |
|---|
| 388 | + | REVISOR SGS H0001-3HF1 THIRD ENGROSSMENT 13.1that the state auditor examine all books, records, documents, and accounting procedures |
|---|
| 389 | + | 13.2and practices related to the grant, the grantee or other party that requested the examination |
|---|
| 390 | + | 13.3shall be liable for the cost of the examination. |
|---|
| 391 | + | 13.4 Sec. 6. Minnesota Statutes 2024, section 16B.98, subdivision 14, is amended to read: |
|---|
| 392 | + | 13.5 Subd. 14.Administrative costs.Unless amounts are otherwise appropriated for |
|---|
| 393 | + | 13.6administrative costs, a state agency may retain up to five four percent of the amount |
|---|
| 394 | + | 13.7appropriated to the agency for grants enacted by the legislature and formula grants and up |
|---|
| 395 | + | 13.8to ten nine percent for competitively awarded grants. This subdivision applies to |
|---|
| 396 | + | 13.9appropriations made for new grant programs enacted on or after July 1, 2023. The state |
|---|
| 397 | + | 13.10agency must transfer one percent of the amount appropriated to the agency for grants to the |
|---|
| 398 | + | 13.11inspector general established under section 3.991. This subdivision does not apply to grants |
|---|
| 399 | + | 13.12funded with an appropriation of proceeds from the sale of state general obligation bonds. |
|---|
| 400 | + | 13.13Sec. 7. Minnesota Statutes 2024, section 16B.991, subdivision 1, is amended to read: |
|---|
| 401 | + | 13.14 Subdivision 1.Criminal charge or conviction.Each grant agreement subject to sections |
|---|
| 402 | + | 13.1516B.97 and 16B.98 must provide that the agreement will immediately be terminated |
|---|
| 403 | + | 13.16suspended if the recipient is convicted of charged with a criminal offense relating to a state |
|---|
| 404 | + | 13.17grant agreement and terminated if the recipient is convicted. |
|---|
| 405 | + | 13.18Sec. 8. Minnesota Statutes 2024, section 142B.53, is amended to read: |
|---|
| 406 | + | 13.19 142B.53 MANDATORY REPORTING. |
|---|
| 407 | + | 13.20 Any individual engaging in licensing functions and activities under this chapter, including |
|---|
| 408 | + | 13.21authorities delegated under section 142B.30, must immediately report any suspected fraud |
|---|
| 409 | + | 13.22to county children, youth, and families investigators or and the Department of Children, |
|---|
| 410 | + | 13.23Youth, and Families Office of the Inspector General. |
|---|
| 411 | + | 13.24Sec. 9. Minnesota Statutes 2024, section 245A.24, is amended to read: |
|---|
| 412 | + | 13.25 245A.24 MANDATORY REPORTING. |
|---|
| 413 | + | 13.26 Any individual engaging in licensing functions and activities under this chapter, including |
|---|
| 414 | + | 13.27authorities delegated under section 245A.16, must immediately report any suspected fraud |
|---|
| 415 | + | 13.28to county human services investigators or the Department of Human Services Office of the |
|---|
| 416 | + | 13.29Inspector General. |
|---|
| 417 | + | 13Article 2 Sec. 9. |
|---|
| 418 | + | REVISOR SGS H0001-3HF1 THIRD ENGROSSMENT 14.1 Sec. 10. Minnesota Statutes 2024, section 268.19, subdivision 1, is amended to read: |
|---|
| 419 | + | 14.2 Subdivision 1.Use of data.(a) Except as provided by this section, data gathered from |
|---|
| 420 | + | 14.3any person under the administration of the Minnesota Unemployment Insurance Law are |
|---|
| 421 | + | 14.4private data on individuals or nonpublic data not on individuals as defined in section 13.02, |
|---|
| 422 | + | 14.5subdivisions 9 and 12, and may not be disclosed except according to a district court order |
|---|
| 423 | + | 14.6or section 13.05. A subpoena is not considered a district court order. These data may be |
|---|
| 424 | + | 14.7disseminated to and used by the following agencies without the consent of the subject of |
|---|
| 425 | + | 14.8the data: |
|---|
| 426 | + | 14.9 (1) state and federal agencies specifically authorized access to the data by state or federal |
|---|
| 427 | + | 14.10law; |
|---|
| 428 | + | 14.11 (2) any agency of any other state or any federal agency charged with the administration |
|---|
| 429 | + | 14.12of an unemployment insurance program; |
|---|
| 430 | + | 14.13 (3) any agency responsible for the maintenance of a system of public employment offices |
|---|
| 431 | + | 14.14for the purpose of assisting individuals in obtaining employment; |
|---|
| 432 | + | 14.15 (4) the public authority responsible for child support in Minnesota or any other state in |
|---|
| 433 | + | 14.16accordance with section 518A.83; |
|---|
| 434 | + | 14.17 (5) human rights agencies within Minnesota that have enforcement powers; |
|---|
| 435 | + | 14.18 (6) the Department of Revenue to the extent necessary for its duties under Minnesota |
|---|
| 436 | + | 14.19laws; |
|---|
| 437 | + | 14.20 (7) public and private agencies responsible for administering publicly financed assistance |
|---|
| 438 | + | 14.21programs for the purpose of monitoring the eligibility of the program's recipients; |
|---|
| 439 | + | 14.22 (8) the Department of Labor and Industry and the Commerce Fraud Bureau in the |
|---|
| 440 | + | 14.23Department of Commerce for uses consistent with the administration of their duties under |
|---|
| 441 | + | 14.24Minnesota law; |
|---|
| 442 | + | 14.25 (9) the Department of Human Services and, the Office of the Inspector General, and its |
|---|
| 443 | + | 14.26agents within the Department of Human Services, including county fraud investigators, for |
|---|
| 444 | + | 14.27investigations related to recipient or provider fraud and employees of providers when the |
|---|
| 445 | + | 14.28provider is suspected of committing public assistance fraud; |
|---|
| 446 | + | 14.29 (10) the Department of Human Services for the purpose of evaluating medical assistance |
|---|
| 447 | + | 14.30services and supporting program improvement; |
|---|
| 448 | + | 14.31 (11) local and state welfare agencies for monitoring the eligibility of the data subject |
|---|
| 449 | + | 14.32for assistance programs, or for any employment or training program administered by those |
|---|
| 454 | | - | REVISOR SGS H0001-4HF1 FOURTH ENGROSSMENT 15.1 (5) human rights agencies within Minnesota that have enforcement powers; |
|---|
| 455 | | - | 15.2 (6) the Department of Revenue to the extent necessary for its duties under Minnesota |
|---|
| 456 | | - | 15.3laws; |
|---|
| 457 | | - | 15.4 (7) public and private agencies responsible for administering publicly financed assistance |
|---|
| 458 | | - | 15.5programs for the purpose of monitoring the eligibility of the program's recipients; |
|---|
| 459 | | - | 15.6 (8) the Department of Labor and Industry and the Commerce Fraud Bureau in the |
|---|
| 460 | | - | 15.7Department of Commerce for uses consistent with the administration of their duties under |
|---|
| 461 | | - | 15.8Minnesota law; |
|---|
| 462 | | - | 15.9 (9) the Department of Human Services and the Office of the Inspector General and its |
|---|
| 463 | | - | 15.10agents within the Department of Human Services, including county fraud investigators, for |
|---|
| 464 | | - | 15.11investigations related to recipient or provider fraud and employees of providers when the |
|---|
| 465 | | - | 15.12provider is suspected of committing public assistance fraud; |
|---|
| 466 | | - | 15.13 (10) the Department of Human Services for the purpose of evaluating medical assistance |
|---|
| 467 | | - | 15.14services and supporting program improvement; |
|---|
| 468 | | - | 15.15 (11) local and state welfare agencies for monitoring the eligibility of the data subject |
|---|
| 469 | | - | 15.16for assistance programs, or for any employment or training program administered by those |
|---|
| 470 | | - | 15.17agencies, whether alone, in combination with another welfare agency, or in conjunction |
|---|
| 471 | | - | 15.18with the department or to monitor and evaluate the statewide Minnesota family investment |
|---|
| 472 | | - | 15.19program and other cash assistance programs, the Supplemental Nutrition Assistance Program, |
|---|
| 473 | | - | 15.20and the Supplemental Nutrition Assistance Program Employment and Training program by |
|---|
| 474 | | - | 15.21providing data on recipients and former recipients of Supplemental Nutrition Assistance |
|---|
| 475 | | - | 15.22Program (SNAP) benefits, cash assistance under chapter 256, 256D, 256J, or 256K, child |
|---|
| 476 | | - | 15.23care assistance under chapter 142E, or medical programs under chapter 256B or 256L or |
|---|
| 477 | | - | 15.24formerly codified under chapter 256D; |
|---|
| 478 | | - | 15.25 (12) local and state welfare agencies for the purpose of identifying employment, wages, |
|---|
| 479 | | - | 15.26and other information to assist in the collection of an overpayment debt in an assistance |
|---|
| 480 | | - | 15.27program; |
|---|
| 481 | | - | 15.28 (13) local, state, and federal law enforcement agencies for the purpose of ascertaining |
|---|
| 482 | | - | 15.29the last known address and employment location of an individual who is the subject of a |
|---|
| 483 | | - | 15.30criminal investigation; |
|---|
| 484 | | - | 15.31 (14) the United States Immigration and Customs Enforcement has access to data on |
|---|
| 485 | | - | 15.32specific individuals and specific employers provided the specific individual or specific |
|---|
| 486 | | - | 15.33employer is the subject of an investigation by that agency; |
|---|
| 451 | + | REVISOR SGS H0001-3HF1 THIRD ENGROSSMENT 15.1agencies, whether alone, in combination with another welfare agency, or in conjunction |
|---|
| 452 | + | 15.2with the department or to monitor and evaluate the statewide Minnesota family investment |
|---|
| 453 | + | 15.3program and other cash assistance programs, the Supplemental Nutrition Assistance Program, |
|---|
| 454 | + | 15.4and the Supplemental Nutrition Assistance Program Employment and Training program by |
|---|
| 455 | + | 15.5providing data on recipients and former recipients of Supplemental Nutrition Assistance |
|---|
| 456 | + | 15.6Program (SNAP) benefits, cash assistance under chapter 256, 256D, 256J, or 256K, child |
|---|
| 457 | + | 15.7care assistance under chapter 142E, or medical programs under chapter 256B or 256L or |
|---|
| 458 | + | 15.8formerly codified under chapter 256D; |
|---|
| 459 | + | 15.9 (12) local and state welfare agencies for the purpose of identifying employment, wages, |
|---|
| 460 | + | 15.10and other information to assist in the collection of an overpayment debt in an assistance |
|---|
| 461 | + | 15.11program; |
|---|
| 462 | + | 15.12 (13) local, state, and federal law enforcement agencies for the purpose of ascertaining |
|---|
| 463 | + | 15.13the last known address and employment location of an individual who is the subject of a |
|---|
| 464 | + | 15.14criminal investigation; |
|---|
| 465 | + | 15.15 (14) the United States Immigration and Customs Enforcement has access to data on |
|---|
| 466 | + | 15.16specific individuals and specific employers provided the specific individual or specific |
|---|
| 467 | + | 15.17employer is the subject of an investigation by that agency; |
|---|
| 468 | + | 15.18 (15) the Department of Health for the purposes of epidemiologic investigations; |
|---|
| 469 | + | 15.19 (16) the Department of Corrections for the purposes of case planning and internal research |
|---|
| 470 | + | 15.20for preprobation, probation, and postprobation employment tracking of offenders sentenced |
|---|
| 471 | + | 15.21to probation and preconfinement and postconfinement employment tracking of committed |
|---|
| 472 | + | 15.22offenders; |
|---|
| 473 | + | 15.23 (17) the state auditor to the extent necessary to conduct audits of job opportunity building |
|---|
| 474 | + | 15.24zones as required under section 469.3201; |
|---|
| 475 | + | 15.25 (18) the Office of Higher Education for purposes of supporting program improvement, |
|---|
| 476 | + | 15.26system evaluation, and research initiatives including the Statewide Longitudinal Education |
|---|
| 477 | + | 15.27Data System; and |
|---|
| 478 | + | 15.28 (19) the Family and Medical Benefits Division of the Department of Employment and |
|---|
| 479 | + | 15.29Economic Development to be used as necessary to administer chapter 268B. |
|---|
| 480 | + | 15.30 (b) Data on individuals and employers that are collected, maintained, or used by the |
|---|
| 481 | + | 15.31department in an investigation under section 268.182 are confidential as to data on individuals |
|---|
| 482 | + | 15.32and protected nonpublic data not on individuals as defined in section 13.02, subdivisions 3 |
|---|
| 521 | | - | REVISOR SGS H0001-4HF1 FOURTH ENGROSSMENT 17.1 (2) the unemployment insurance division, to the extent necessary to administer the |
|---|
| 522 | | - | 17.2programs established under this chapter and chapter 268; |
|---|
| 523 | | - | 17.3 (3) employers, to the extent necessary to support adjudication of application requests |
|---|
| 524 | | - | 17.4and to support the employer's administration of a leave of absence; |
|---|
| 525 | | - | 17.5 (4) health care providers, to the extent necessary to support verification of health care |
|---|
| 526 | | - | 17.6conditions and qualifying events; |
|---|
| 527 | | - | 17.7 (5) the public authority responsible for child support in Minnesota or any other state in |
|---|
| 528 | | - | 17.8accordance with section 518A.83; |
|---|
| 529 | | - | 17.9 (6) human rights agencies within Minnesota that have enforcement powers; |
|---|
| 530 | | - | 17.10 (7) the Department of Revenue, to the extent necessary for its duties under Minnesota |
|---|
| 531 | | - | 17.11laws; |
|---|
| 532 | | - | 17.12 (8) public and private agencies responsible for administering publicly financed assistance |
|---|
| 533 | | - | 17.13programs for the purpose of monitoring the eligibility of the program's recipients; |
|---|
| 534 | | - | 17.14 (9) the Department of Labor and Industry and the Commerce Fraud Bureau in the |
|---|
| 535 | | - | 17.15Department of Commerce for uses consistent with the administration of their duties under |
|---|
| 536 | | - | 17.16Minnesota law; |
|---|
| 537 | | - | 17.17 (10) the Department of Human Services and the Office of the Inspector General and its |
|---|
| 538 | | - | 17.18agents within the Department of Human Services, including county fraud investigators, for |
|---|
| 539 | | - | 17.19investigations related to recipient or provider fraud and employees of providers when the |
|---|
| 540 | | - | 17.20provider is suspected of committing public assistance fraud; |
|---|
| 541 | | - | 17.21 (11) the Department of Public Safety for support in identity verification; |
|---|
| 542 | | - | 17.22 (12) local, state, and federal law enforcement agencies for the purpose of ascertaining |
|---|
| 543 | | - | 17.23the last known address and employment location of an individual who is the subject of a |
|---|
| 544 | | - | 17.24criminal investigation; |
|---|
| 545 | | - | 17.25 (13) the Department of Health for the purposes of epidemiologic investigations; |
|---|
| 546 | | - | 17.26 (14) the Department of Corrections for the purposes of tracking incarceration of |
|---|
| 547 | | - | 17.27applicants; and |
|---|
| 548 | | - | 17.28 (15) contracted third parties, to the extent necessary to aid in identity verification, |
|---|
| 549 | | - | 17.29adjudication, administration, and evaluation of the program.; and |
|---|
| 550 | | - | 17.30 (16) the Office of the Inspector General for the purposes of an investigation conducted |
|---|
| 551 | | - | 17.31under section 3.991. |
|---|
| 552 | | - | 17Article 2 Sec. 11. |
|---|
| 553 | | - | REVISOR SGS H0001-4HF1 FOURTH ENGROSSMENT 18.1 (c) Data on individuals and employers that are collected, maintained, or used by the |
|---|
| 554 | | - | 18.2department in an investigation under section 268B.19, 268B.21, 268B.22, or 268B.23 are |
|---|
| 555 | | - | 18.3confidential as to data on individuals and protected nonpublic data not on individuals as |
|---|
| 556 | | - | 18.4defined in section 13.02, subdivisions 3 and 13, and must not be disclosed except under |
|---|
| 557 | | - | 18.5statute or district court order or to a party named in a criminal proceeding, administrative |
|---|
| 558 | | - | 18.6or judicial, for preparation of a defense. |
|---|
| 559 | | - | 18.7 (d) Data gathered by the department in the administration of this chapter must not be |
|---|
| 560 | | - | 18.8made the subject or the basis for any suit in any civil proceedings, administrative or judicial, |
|---|
| 561 | | - | 18.9unless the action is initiated by the department. |
|---|
| 562 | | - | 18.10Sec. 12. EXISTING DUTIES ABOLISHED; TRANSFERS PROVIDED. |
|---|
| 563 | | - | 18.11 Subdivision 1.Duties abolished.Except as provided in subdivision 3, duties pertaining |
|---|
| 564 | | - | 18.12to the investigation of fraud, misuse, and other unlawful use of public funds in the Offices |
|---|
| 565 | | - | 18.13of Inspector General in the Departments of Education; Human Services; and Children, |
|---|
| 566 | | - | 18.14Youth, and Families are abolished effective the day after the inspector general under |
|---|
| 567 | | - | 18.15Minnesota Statutes, section 3.991, certifies in writing to the commissioner of the respective |
|---|
| 568 | | - | 18.16department and the commissioner of management and budget that the inspector general has |
|---|
| 569 | | - | 18.17assumed responsibility for these duties. |
|---|
| 570 | | - | 18.18 Subd. 2.Inspector general transfers.Pursuant to Minnesota Statutes, section 15.039, |
|---|
| 571 | | - | 18.19all active investigations, obligations, court actions, contracts, records, personnel, and |
|---|
| 572 | | - | 18.20unexpended funds shall transfer from each department in subdivision 1 to the inspector |
|---|
| 573 | | - | 18.21general under Minnesota Statutes, section 3.991, except as provided by the inspector general. |
|---|
| 574 | | - | 18.22 Subd. 3.Exceptions.(a) Positions in the following divisions and teams in the Department |
|---|
| 575 | | - | 18.23of Human Services do not transfer to the Office of the Inspector General: |
|---|
| 576 | | - | 18.24 (1) the background studies division; |
|---|
| 577 | | - | 18.25 (2) the licensing division; |
|---|
| 578 | | - | 18.26 (3) the enterprise operations and policy division; |
|---|
| 579 | | - | 18.27 (4) the background studies legal team; |
|---|
| 580 | | - | 18.28 (5) the licensing legal team; |
|---|
| 581 | | - | 18.29 (6) the Medicaid program integrity team within program integrity oversight division; |
|---|
| 582 | | - | 18.30and |
|---|
| 583 | | - | 18.31 (7) the Medicaid provider audits and investigations team within program integrity |
|---|
| 584 | | - | 18.32oversight division. |
|---|
| 585 | | - | 18Article 2 Sec. 12. |
|---|
| 586 | | - | REVISOR SGS H0001-4HF1 FOURTH ENGROSSMENT 19.1 (b) No employees or positions in the Department of Corrections are transferred under |
|---|
| 587 | | - | 19.2this section. |
|---|
| 588 | | - | 19.3 (c) No employees or positions in the student maltreatment program of the Department |
|---|
| 589 | | - | 19.4of Education or other Department of Education employees or positions dedicated to student |
|---|
| 590 | | - | 19.5maltreatment investigations under Minnesota Statutes, chapter 260E, are transferred under |
|---|
| 591 | | - | 19.6this section. |
|---|
| 592 | | - | 19.7 Sec. 13. REPEALER. |
|---|
| 593 | | - | 19.8 Minnesota Statutes 2024, sections 13.321, subdivision 12; and 127A.21, are repealed. |
|---|
| 594 | | - | 19.9 Sec. 14. EFFECTIVE DATE. |
|---|
| 595 | | - | 19.10 (a) Sections 1 to 7 and 12 are effective July 1, 2025. |
|---|
| 596 | | - | 19.11 (b) Section 8 is effective the day after the inspector general notifies the revisor of statutes |
|---|
| 597 | | - | 19.12that the Office of the Inspector General has assumed responsibility for identifying and |
|---|
| 598 | | - | 19.13investigating fraud, misuse, or other unlawful use of public funds in the Department of |
|---|
| 599 | | - | 19.14Children, Youth, and Families. |
|---|
| 600 | | - | 19.15 (c) Sections 9 to 11 are effective the day after the inspector general notifies the revisor |
|---|
| 601 | | - | 19.16of statutes that the Office of the Inspector General has assumed responsibility for identifying |
|---|
| 602 | | - | 19.17and investigating fraud, misuse, or other unlawful use of public funds in the Department of |
|---|
| 603 | | - | 19.18Human Services. |
|---|
| 604 | | - | 19.19 (d) Section 13 is effective the day after the inspector general under Minnesota Statutes, |
|---|
| 605 | | - | 19.20section 3.991, notifies the revisor of statutes that the Office of the Inspector General under |
|---|
| 606 | | - | 19.21Minnesota Statutes, section 3.991, has assumed responsibility for identifying and |
|---|
| 607 | | - | 19.22investigating fraud, misuse, or other unlawful use of public funds in the Department of |
|---|
| 608 | | - | 19.23Education. |
|---|
| 609 | | - | 19Article 2 Sec. 14. |
|---|
| 610 | | - | REVISOR SGS H0001-4HF1 FOURTH ENGROSSMENT Page.Ln 1.13OFFICE OF THE INSPECTOR GENERAL.........................................ARTICLE 1 |
|---|
| 611 | | - | Page.Ln 10.20CONFORMING ITEMS AND REPEALERS.......................................ARTICLE 2 |
|---|
| 516 | + | REVISOR SGS H0001-3HF1 THIRD ENGROSSMENT 17.1 (10) the Department of Human Services and, the Office of the Inspector General, and |
|---|
| 517 | + | 17.2its agents within the Department of Human Services, including county fraud investigators, |
|---|
| 518 | + | 17.3for investigations related to recipient or provider fraud and employees of providers when |
|---|
| 519 | + | 17.4the provider is suspected of committing public assistance fraud; |
|---|
| 520 | + | 17.5 (11) the Department of Public Safety for support in identity verification; |
|---|
| 521 | + | 17.6 (12) local, state, and federal law enforcement agencies for the purpose of ascertaining |
|---|
| 522 | + | 17.7the last known address and employment location of an individual who is the subject of a |
|---|
| 523 | + | 17.8criminal investigation; |
|---|
| 524 | + | 17.9 (13) the Department of Health for the purposes of epidemiologic investigations; |
|---|
| 525 | + | 17.10 (14) the Department of Corrections for the purposes of tracking incarceration of |
|---|
| 526 | + | 17.11applicants; and |
|---|
| 527 | + | 17.12 (15) contracted third parties, to the extent necessary to aid in identity verification, |
|---|
| 528 | + | 17.13adjudication, administration, and evaluation of the program. |
|---|
| 529 | + | 17.14 (c) Data on individuals and employers that are collected, maintained, or used by the |
|---|
| 530 | + | 17.15department in an investigation under section 268B.19, 268B.21, 268B.22, or 268B.23 are |
|---|
| 531 | + | 17.16confidential as to data on individuals and protected nonpublic data not on individuals as |
|---|
| 532 | + | 17.17defined in section 13.02, subdivisions 3 and 13, and must not be disclosed except under |
|---|
| 533 | + | 17.18statute or district court order or to a party named in a criminal proceeding, administrative |
|---|
| 534 | + | 17.19or judicial, for preparation of a defense. |
|---|
| 535 | + | 17.20 (d) Data gathered by the department in the administration of this chapter must not be |
|---|
| 536 | + | 17.21made the subject or the basis for any suit in any civil proceedings, administrative or judicial, |
|---|
| 537 | + | 17.22unless the action is initiated by the department. |
|---|
| 538 | + | 17.23Sec. 12. EXISTING DUTIES ABOLISHED; TRANSFERS PROVIDED. |
|---|
| 539 | + | 17.24 Subdivision 1.Duties abolished.Duties pertaining to the investigation of fraud, misuse, |
|---|
| 540 | + | 17.25and other unlawful use of public funds in the Offices of Inspector General in the Departments |
|---|
| 541 | + | 17.26of Education; Human Services; and Children, Youth, and Families are abolished effective |
|---|
| 542 | + | 17.27the day after the inspector general under Minnesota Statutes, section 3.991, certifies in |
|---|
| 543 | + | 17.28writing to the commissioner of the respective department and the commissioner of |
|---|
| 544 | + | 17.29management and budget that the inspector general has assumed responsibility for these |
|---|
| 545 | + | 17.30duties. |
|---|
| 546 | + | 17.31 Subd. 2.Inspector general transfers.Pursuant to Minnesota Statutes, section 15.039, |
|---|
| 547 | + | 17.32all active investigations, obligations, court actions, contracts, records, personnel, and |
|---|
| 548 | + | 17Article 2 Sec. 12. |
|---|
| 549 | + | REVISOR SGS H0001-3HF1 THIRD ENGROSSMENT 18.1unexpended funds shall transfer from each department in subdivision 1 to the inspector |
|---|
| 550 | + | 18.2general under Minnesota Statutes, section 3.991, except as provided by the inspector general. |
|---|
| 551 | + | 18.3 Sec. 13. REPEALER. |
|---|
| 552 | + | 18.4 Minnesota Statutes 2024, sections 13.321, subdivision 12; and 127A.21, are repealed. |
|---|
| 553 | + | 18.5 Sec. 14. EFFECTIVE DATE. |
|---|
| 554 | + | 18.6 (a) Sections 1 to 7 and 12 are effective July 1, 2025. |
|---|
| 555 | + | 18.7 (b) Section 8 is effective the day after the inspector general notifies the revisor of statutes |
|---|
| 556 | + | 18.8that the Office of the Inspector General has assumed responsibility for identifying and |
|---|
| 557 | + | 18.9investigating fraud, misuse, or other unlawful use of public funds in the Department of |
|---|
| 558 | + | 18.10Children, Youth, and Families. |
|---|
| 559 | + | 18.11 (c) Sections 9 to 11 are effective the day after the inspector general notifies the revisor |
|---|
| 560 | + | 18.12of statutes that the Office of the Inspector General has assumed responsibility for identifying |
|---|
| 561 | + | 18.13and investigating fraud, misuse, or other unlawful use of public funds in the Department of |
|---|
| 562 | + | 18.14Human Services. |
|---|
| 563 | + | 18.15 (d) Section 13 is effective the day after the inspector general under Minnesota Statutes, |
|---|
| 564 | + | 18.16section 3.991, notifies the revisor of statutes that the Office of the Inspector General under |
|---|
| 565 | + | 18.17Minnesota Statutes, section 3.991, has assumed responsibility for identifying and |
|---|
| 566 | + | 18.18investigating fraud, misuse, or other unlawful use of public funds in the Department of |
|---|
| 567 | + | 18.19Education. |
|---|
| 568 | + | 18Article 2 Sec. 14. |
|---|
| 569 | + | REVISOR SGS H0001-3HF1 THIRD ENGROSSMENT Page.Ln 1.13OFFICE OF THE INSPECTOR GENERAL.........................................ARTICLE 1 |
|---|
| 570 | + | Page.Ln 10.7CONFORMING ITEMS AND REPEALERS.......................................ARTICLE 2 |
|---|