Minnesota 2025-2026 Regular Session

Minnesota House Bill HF2420 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to state government; establishing a Commission on Government Efficiency
3	3	1.3 and Ethics to investigate allegations of fraud in state programs and undisclosed
4	4	1.4 legislative conflicts of interest; requiring a report; appropriating money; amending
5	5	1.5 Minnesota Statutes 2024, section 16B.98, subdivision 8; proposing coding for new
6	6	1.6 law in Minnesota Statutes, chapter 3.
7	7	1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
8	8	1.8 Section 1. [3.99] COMMISSION ON GOVERNMENT EFFICIENCY AND ETHICS.
9	9	1.9 Subdivision 1.Creation.The Commission on Government Efficiency and Ethics is
10	10	1.10established to investigate allegations of fraud in state government and undisclosed conflicts
11	11	1.11of interest in the legislature.
12	12	1.12 Subd. 2.Membership.The commission consists of six members, three citizens appointed
13	13	1.13by the speaker of the house and three citizens appointed by the minority leader of the house
14	14	1.14of representatives, with the six citizen appointees approved as a slate by both the majority
15	15	1.15leader and minority leader of the senate. If the majority leader or minority leader of the
16	16	1.16senate rejects the slate, the speaker of the house and minority leader of the house of
17	17	1.17representatives must appoint a new slate for consideration. The speaker of the house and
18	18	1.18minority leader of the house must make appointments as soon as possible after the opening
19	19	1.19of the regular session of the legislature each odd-numbered year and must not appoint a
20	20	1.20current federal, state, or local elected official or a person who at any time was a candidate
21	21	1.21for partisan office.
22	22	1.22 Subd. 3.Terms.Members of the commission serve a two-year term beginning upon
23	23	1.23appointment and expiring upon appointment and approval of a successor after the opening
24	24	1Section 1.
25	25	REVISOR SGS/LJ 25-0453603/12/25
26	26	State of Minnesota
27	27	This Document can be made available
28	28	in alternative formats upon request
29	29	HOUSE OF REPRESENTATIVES
30	30	H. F. No. 2420
31	31	NINETY-FOURTH SESSION
32	32	Authored by Engen, Niska, Allen, Stier, Zeleznikar and others03/17/2025
33	33	The bill was read for the first time and referred to the Committee on State Government Finance and Policy 2.1of the next regular session of the legislature in the odd-numbered year. There is no term
34	34	2.2limit for commission members.
35	35	2.3 Subd. 4.Reporting; reward.(a) The commission must maintain a website and telephone
36	36	2.4hotline for any person to report, and to do so anonymously if the person so chooses:
37	37	2.5 (1) suspected fraud in a program funded fully or partially, or administered fully or
38	38	2.6partially, by the state; or
39	39	2.7 (2) an undisclosed conflict of interest by a member of the house of representatives or
40	40	2.8senate.
41	41	2.9 (b) The commission may award up to $5,000 to any person whose report results in a
42	42	2.10criminal conviction, successful civil action, or the expulsion of a member of the house of
43	43	2.11representative or senate.
44	44	2.12 (c) For purposes of this section, "undisclosed conflict of interest" means voting on a
45	45	2.13question when the member has an immediate financial interest in the question without first
46	46	2.14disclosing the conflict as required under the rules of the house of representatives for members
47	47	2.15of the house, or the rules of the senate for members of the senate.
48	48	2.16 Subd. 5.Investigations; private investigator; cooperation required.(a) Any member
49	49	2.17of the commission may order an investigation based on a report or tip received by the
50	50	2.18commission or a commission member under subdivision 4 or otherwise.
51	51	2.19 (b) The commission must contract with a private investigator to perform an investigation
52	52	2.20under this subdivision.
53	53	2.21 (c) All public officials and their deputies and employees and all corporations, firms, and
54	54	2.22individuals having business involving the receipt, disbursement, or custody of public funds
55	55	2.23shall at all times:
56	56	2.24 (1) afford reasonable facilities for examinations by an investigator performing an
57	57	2.25investigation ordered by the commission;
58	58	2.26 (2) provide returns and reports required by the investigator;
59	59	2.27 (3) attend and answer under oath the investigator's lawful inquiries;
60	60	2.28 (4) produce and exhibit all books, accounts, documents, and property that the investigator
61	61	2.29requests to inspect; and
62	62	2.30 (5) in all things cooperate with the investigator.
63	63	2Section 1.
64	64	REVISOR SGS/LJ 25-0453603/12/25 3.1 Subd. 6.Forensic audits.A member of the commission may order a full forensic audit
65	65	3.2of any state agency or grantee named by the legislature. The commission must contract with
66	66	3.3a private entity to conduct the audit. For purposes of this subdivision, "forensic audit" means
67	67	3.4a systematic evaluation of the effectiveness of the grantee's internal controls over programs,
68	68	3.5processes, receipts, and expenditures to identify ineffective controls and vulnerabilities and
69	69	3.6to expose fraud, waste, and abuse.
70	70	3.7 Subd. 7.Reporting required.(a) If an investigation or forensic audit documents credible
71	71	3.8evidence of fraud, the commission must report to the appropriate law enforcement entity,
72	72	3.9the chair and ranking minority member of the Committee on Rules and Legislative
73	73	3.10Administration in the house of representatives, and the chair and ranking minority member
74	74	3.11of the Committee on Rules and Administration in the senate.
75	75	3.12 (b) If an investigation documents credible evidence of an undisclosed conflict of interest,
76	76	3.13the commission must issue a public report and submit this report to the chair and ranking
77	77	3.14minority member of the Committee on Rules and Legislative Administration in the house
78	78	3.15of representatives for an investigation concerning a member of the house of representatives,
79	79	3.16or the chair and ranking minority member of the Committee on Rules and Administration
80	80	3.17in the senate for an investigation concerning a member of the senate.
81	81	3.18 (c) At least annually, the commission must submit a report to the chair and ranking
82	82	3.19minority member of the Committee on Rules and Legislative Administration in the house
83	83	3.20of representatives and the chair and ranking minority member of the Committee on Rules
84	84	3.21and Administration in the senate with recommendations concerning the prevention of fraud
85	85	3.22in state programs and undisclosed conflicts of interest in the legislature.
86	86	3.23 Subd. 8.Meetings; officers.(a) The open meeting requirements of section 3.055 apply
87	87	3.24to meetings of the Commission on Government Efficiency and Ethics, except the commission
88	88	3.25may conduct a closed meeting when discussing a report received under subdivision 4, an
89	89	3.26active investigation ordered under subdivision 5, or a forensic audit ordered under subdivision
90	90	3.276. A meeting is not required for a member of the commission to order an investigation under
91	91	3.28subdivision 5 or a forensic audit under subdivision 6.
92	92	3.29 (b) The commission members must elect a chair and vice-chair, and other officers from
93	93	3.30its membership as it deems necessary.
94	94	3.31 Subd. 9.Staff support.The executive director of the Legislative Coordinating
95	95	3.32Commission must provide administrative support for the Commission on Government
96	96	3.33Efficiency and Ethics under section 3.305, subdivision 4.
97	97	3Section 1.
98	98	REVISOR SGS/LJ 25-0453603/12/25 4.1 Subd. 10.Compensation.Members serve without compensation but, if approved by
99	99	4.2the chair, may be reimbursed for their reasonable expenses in the same manner and amount
100	100	4.3as authorized by the commissioner's plan adopted under section 43A.18, subdivision 2.
101	101	4.4 Sec. 2. Minnesota Statutes 2024, section 16B.98, subdivision 8, is amended to read:
102	102	4.5 Subd. 8.Audit.(a) A grant agreement made by an executive agency must include an
103	103	4.6audit clause that provides that the books, records, documents, and accounting procedures
104	104	4.7and practices of the grantee or other party that are relevant to the grant or transaction are
105	105	4.8subject to examination by the commissioner, the granting agency, private investigators
106	106	4.9under contract with the Commission on Government Efficiency and Ethics, and either the
107	107	4.10legislative auditor or the state auditor, as appropriate, for a minimum of six years from the
108	108	4.11grant agreement end date, receipt and approval of all final reports, or the required period
109	109	4.12of time to satisfy all state and program retention requirements, whichever is later. If a grant
110	110	4.13agreement does not include an express audit clause, the audit authority under this subdivision
111	111	4.14is implied.
112	112	4.15 (b) If the granting agency is a local unit of government, and the governing body of the
113	113	4.16local unit of government requests that the state auditor examine the books, records,
114	114	4.17documents, and accounting procedures and practices of the grantee or other party according
115	115	4.18to this subdivision, the granting agency shall be liable for the cost of the examination. If
116	116	4.19the granting agency is a local unit of government, and the grantee or other party requests
117	117	4.20that the state auditor examine all books, records, documents, and accounting procedures
118	118	4.21and practices related to the grant, the grantee or other party that requested the examination
119	119	4.22shall be liable for the cost of the examination.
120	120	4.23 (c) A grant agreement between an executive agency and a grantee named by the legislature
121	121	4.24must include a forensic audit clause requiring the grantee to fully cooperate with an
122	122	4.25investigation or forensic audit ordered by a member of the Commission on Government
123	123	4.26Efficiency and Ethics.
124	124	4.27 Sec. 3. APPROPRIATION; COMMISSION ON GOVERNMENT EFFICIENCY
125	125	4.28AND ETHICS.
126	126	4.29 $....... in fiscal year 2026 and $....... in fiscal year 2027 are appropriated from the general
127	127	4.30fund to the executive director of the Legislative Coordinating Commission for purposes of
128	128	4.31the Commission on Government Efficiency and Ethics.
129	129	4Sec. 3.
130	130	REVISOR SGS/LJ 25-0453603/12/25