HF 2225

as introduced - 91st Legislature (2019 - 2020) Posted on 04/08/2019 05:18pm

A bill for an act
relating to Legislative Audit Commission and the legislative auditor; modifying
certain duties and agency responsibilities to notify the legislative auditor of unlawful
access to not public data; amending Minnesota Statutes 2018, sections 3.97,
subdivision 3a; 3.971, subdivision 9; 3.972, subdivision 2a; repealing Minnesota
Statutes 2018, section 3.9735.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2018, section 3.97, subdivision 3a, is amended to read:

Subd. 3a.

Evaluation topics.

deleted text begin (a) deleted text end The commission shall periodically select topics for the
legislative auditor to evaluate. Topics may include any agency, program, or activity
established by law to achieve a state purpose, or any topic that affects the operation of state
government deleted text begin , but deleted text end new text begin . new text end The commission shall give primary consideration to topics that are likely,
upon examination, to produce recommendations for cost savings, increased productivity,
or the elimination of duplication among public agencies. new text begin The commission shall also give
consideration to programs and statutory provisions that authorize grants, tax incentives, and
other inducements for economic development. new text end Legislators and legislative committees may
suggest topics for evaluation, but the legislative auditor shall only conduct evaluations
approved by the commission.

deleted text begin (b) The commission is requested to direct the auditor, in response to a suggestion from
an individual legislator of an evaluation topic, to estimate the scope of the proposed
evaluation and the time required to complete it. The estimate must be reported to the legislator
who submitted the suggestion and to the commission. The commission must determine
deleted text end deleted text begin within 60 days of receiving the estimate whether to proceed with the suggested evaluation
and must convey its decision to the legislator along with the reasons for its decision.
deleted text end

Sec. 2.

Minnesota Statutes 2018, section 3.971, subdivision 9, is amended to read:

Subd. 9.

Obligation to notify the legislative auditor.

The chief executive, financial,
or information officers of an organization subject to audit under this section must promptly
notify the legislative auditor when the officer obtains information indicating that public
money or other public resources may have been used for an unlawful purpose, or when the
officer obtains information indicating that government data classified by chapter 13 as not
public may have been accessed deleted text begin or used unlawfully deleted text end new text begin by or provided to a person without lawful
authorization new text end . As necessary, the legislative auditor shall coordinate an investigation of the
allegation with appropriate law enforcement officials.

Sec. 3.

Minnesota Statutes 2018, section 3.972, subdivision 2a, is amended to read:

Subd. 2a.

Audits of Department of Human Services.

deleted text begin (a) deleted text end To ensure continuous
legislative oversight and accountability, the legislative auditor shall give high priority to
auditing the programs, services, and benefits administered by the Department of Human
Services. deleted text begin The audits shall determine whether the department offered programs and provided
services and benefits only to eligible persons and organizations, and complied with applicable
legal requirements.
deleted text end

deleted text begin (b) The legislative auditor shall, based on an assessment of risk and using professional
standards to provide a statistically significant sample, no less than three times each year,
test a representative sample of persons enrolled in a medical assistance program or
MinnesotaCare to determine whether they are eligible to receive benefits under those
programs. The legislative auditor shall report the results to the commissioner of human
services and recommend corrective actions. The commissioner shall provide a response to
the legislative auditor within 20 business days, including corrective actions to be taken to
address any problems identified by the legislative auditor and anticipated completion dates.
The legislative auditor shall monitor the commissioner's implementation of corrective actions
and periodically report the results to the Legislative Audit Commission and the chairs and
ranking minority members of the legislative committees with jurisdiction over health and
human services policy and finance. The legislative auditor's reports to the commission and
the chairs and ranking minority members must include recommendations for any legislative
actions needed to ensure that medical assistance and MinnesotaCare benefits are provided
only to eligible persons.
deleted text end

Sec. 4. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2018, section 3.9735, new text end new text begin is repealed.
new text end

Sec. 5. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 4 are effective the day following final enactment.
new text end

APPENDIX

Repealed Minnesota Statutes: 19-3736

3.9735 EVALUATION OF ECONOMIC DEVELOPMENT INCENTIVE PROGRAMS.

Subdivision 1.

Definitions.

For purposes of this section, the terms defined in this section have the meanings given them.

(a) "General incentive" means a state program, statutory provision, or tax expenditure, including tax credits, tax exemptions, tax deductions, grants, or loans, that is intended to encourage businesses to locate, expand, invest, or remain in Minnesota or to hire or retain employees in Minnesota. To be a general incentive, a state program, statutory provision, or tax expenditure must be funded by an appropriation from the general fund, and be available to multiple entities, projects, or associated projects or include eligibility criteria with the intent that it will be available to multiple entities, projects, or associated projects.

(b) "Exclusive incentive" means a state program, statutory provision, tax expenditure, or section of a general incentive, including tax credits, tax exemptions, tax deductions, grants, or loans, that is intended to encourage a single specific entity, project, or associated projects to locate, expand, invest, or remain in Minnesota or to hire or retain employees in Minnesota.

Subd. 2.

Selection of general incentives for review; schedule for evaluation; report.

Annually, the legislative auditor shall submit to the Legislative Audit Commission a list of three to five general incentives proposed for review. In selecting general incentives to include on this list, the legislative auditor may consider what the incentive will cost state and local governments in actual spending and foregone revenue currently or projected into the future, the legislature's need for information about a general incentive that has an upcoming expiration date, and the legislature's need for regular information on the results of all major general incentives. Annually, the Legislative Audit Commission will select at least one general incentive for the legislative auditor's evaluation. The legislative auditor will evaluate the selected general incentive or incentives, prepared according to the evaluation plan established under subdivision 4, and submit a written report to the Legislative Audit Commission.

Subd. 3.

Exclusive incentive schedule.

The legislative auditor's schedule shall ensure that at least once every four years the legislative auditor will complete an analysis of best practices for exclusive incentives.

Subd. 4.

Evaluation plans.

By February 1, 2016, the Legislative Audit Commission shall establish evaluation plans that identify elements that the legislative auditor must include in evaluations of a general incentive and an exclusive incentive. The Legislative Audit Commission may modify the evaluation plans as needed.