SF 2981

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/28/2025 09:27 a.m.

A bill for an act
relating to government data practices; modifying provisions for the Office of the
Inspector General within the Department of Education; providing for access to
records by the Office of the Inspector General; classifying data; providing for
immunity and confidentiality in reporting or participating in an investigation;
establishing a process for notice, appeal, and withholding of payments; clarifying
definitions of fraud, theft, waste, and abuse; amending Minnesota Statutes 2024,
sections 13.32, subdivision 5; 13.82, subdivision 1; 120B.021, subdivision 3;
120B.117, subdivision 4; 127A.21, subdivisions 1, 1a, 4, 5, 6, 7, by adding
subdivisions; 127A.49, subdivision 3; 268.19, subdivision 1; proposing coding
for new law in Minnesota Statutes, chapter 13.

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

Section 1.

Minnesota Statutes 2024, section 13.32, subdivision 5, is amended to read:

Subd. 5.

Directory information.

(a) Educational data designated as directory information
is public data on individuals to the extent required under federal law. Directory information
must be designated pursuant to the provisions of:

(1) this subdivision; and

(2) United States Code, title 20, section 1232g, and Code of Federal Regulations, title
34, section 99.37, which were in effect on January 3, 2012.

(b) When conducting the directory information designation and notice process required
by federal law, an educational agency or institution shall give parents and students notice
of the right to refuse to let the agency or institution designate specified data about the student
as directory information. This notice may be given by any means reasonably likely to inform
the parents and students of the right.

(c) An educational agency or institution may not designate a student's home address,
telephone number, email address, or other personal contact information as directory
information under this subdivision. This paragraph does not apply to a postsecondary
institution.

(d) When requested, educational agencies or institutions must share personal student
contact information and directory information, whether public or private, with the Minnesota
Department of Education, as required for federal reporting purposes.

(e) When requested, new text begin and in accordance with requirements for parental consent in the
Code of Federal Regulations, title 34, section 300.622 (b)(2) and part 99, new text end educational agencies
or institutions may share personal student contact information and directory information
for students served in special education with postsecondary transition planning and services
under section 125A.08, paragraph (b), clause (1), whether public or private, with the
Department of Employment and Economic Development, as required for coordination of
services to students with disabilities under sections 125A.08, paragraph (b), clause (1);
125A.023; and 125A.027.

Sec. 2.

new text begin [13.3211] DEPARTMENT OF EDUCATION OFFICE OF THE INSPECTOR
GENERAL; INVESTIGATIVE DATA.
new text end

new text begin (a) Data on persons that are collected, maintained, used, or disseminated by the
Department of Education in an investigation conducted under section 127A.21 are
confidential data on individuals pursuant to section 13.02, subdivision 3, or protected
nonpublic data on an individual pursuant to section 13.02, subdivision 13, and shall not be
disclosed except:
new text end

new text begin (1) pursuant to section 13.05;
new text end

new text begin (2) pursuant to statute or valid court order;
new text end

new text begin (3) to a party named in a civil or criminal proceeding for preparation of a defense;
new text end

new text begin (4) to an investigator acting on behalf of a county, state, or federal government, including
a law enforcement officer or attorney in the investigation or prosecution of a criminal, civil,
or administrative proceeding, unless the inspector general determines that disclosure may
compromise an investigation; or
new text end

new text begin (5) to provide notices required or permitted by statute.
new text end

new text begin (b) The data referred to in this section shall be classified as public data upon submission
to a court in a civil or criminal proceeding, or when the investigation is no longer being
pursued actively, except that the data shall be disclosed as required to comply with section
6.67 or 609.456, unless chapter 13 provides otherwise.
new text end

new text begin (c) Notwithstanding paragraph (a), the existence of an investigation conducted by the
Office of the Inspector General or withholding of payment by the commissioner may be
disclosed if the commissioner, after consulting with the inspector general, determines that
it will not compromise the investigation.
new text end

Sec. 3.

Minnesota Statutes 2024, section 13.82, subdivision 1, is amended to read:

Subdivision 1.

Application.

This section shall apply to agencies which carry on a law
enforcement function, including but not limited to municipal police departments, county
sheriff departments, fire departments, the Bureau of Criminal Apprehension, the Minnesota
State Patrol, the Board of Peace Officer Standards and Training, the Department of
Commerce, new text begin the Office of the Inspector General within the Department of Education, new text end and
county human service agency client and provider fraud investigation, prevention, and control
units operated or supervised by the Department of Human Services.

Sec. 4.

Minnesota Statutes 2024, section 120B.021, subdivision 3, is amended to read:

Subd. 3.

Rulemaking.

(a) The commissioner, consistent with the requirements of this
section and section 120B.022, must adopt statewide rules under new text begin , and may use the process
outlined in, new text end section 14.389 new text begin , new text end for implementing statewide rigorous core academic standards
in language arts, mathematics, science, social studies, physical education, and the arts.

(b) The commissioner must adopt statewide rules for implementing statewide rigorous
core academic standards in health.

Sec. 5.

Minnesota Statutes 2024, section 120B.117, subdivision 4, is amended to read:

Subd. 4.

Reporting.

The deleted text begin Professional Educator Licensing and Standards Board deleted text end new text begin
Department of Education new text end must collaborate with the deleted text begin Department of Education deleted text end new text begin Professional
Educator Licensing and Standards Board new text end and the Office of Higher Education to publish a
summary report of each of the programs they administer and any other programs receiving
state appropriations that have or include an explicit purpose of increasing the racial and
ethnic diversity of the state's teacher workforce to more closely reflect the diversity of
students. The report must include programs under sections 122A.59, 122A.63, 122A.635,
122A.70, 122A.73, 124D.09, 124D.861, 136A.1274, 136A.1276, and 136A.1791, along
with any other programs or initiatives that receive state appropriations to address the shortage
of teachers of color and American Indian teachers. The deleted text begin board deleted text end new text begin commissioner new text end must, in
coordination with the new text begin Professional Educator Licensing and Standards Board and the new text end Office
of Higher Education deleted text begin and Department of Education deleted text end , provide policy and funding
recommendations related to state-funded programs to increase the recruitment, preparation,
licensing, hiring, and retention of racially and ethnically diverse teachers and the state's
progress toward meeting or exceeding the goals of this section. The report must include
recommendations for state policy and funding needed to achieve the goals of this section,
plans for sharing the report and activities of grant recipients, and opportunities among grant
recipients of various programs to share effective practices with each other. The initial report
must also include a recommendation of whether a state advisory council should be established
to address the shortage of racially and ethnically diverse teachers and what the composition
and charge of such an advisory council would be if established. The board must consult
with the Indian Affairs Council and other ethnic councils along with other community
partners, including students of color and American Indian students, in developing the report.
The deleted text begin board deleted text end new text begin commissioner new text end must submit the report to the chairs and ranking minority members
of the legislative committees with jurisdiction over education and higher education policy
and finance by November 3, 2025, for the initial report, and by November 3 each
even-numbered year thereafter. The report must be available to the public on the deleted text begin board's deleted text end new text begin
commissioner's new text end website.

Sec. 6.

Minnesota Statutes 2024, section 127A.21, subdivision 1, is amended to read:

Subdivision 1.

Establishment of Office of the Inspector General; powers; duties.

The
commissioner must establish within the department an Office of the Inspector General. The
inspector general shall report directly to the commissioner. The Office of the Inspector
General is charged with protecting the integrity of the department and the state by detecting
and preventing fraud, new text begin theft, new text end waste, and abuse in department programs. The Office of the
Inspector General must conduct independent and objective investigations to promote the
integrity of the department's programs and operations. When fraud new text begin , theft, new text end or other misuse
of public funds is detected, the Office of the Inspector General must report it to the
appropriate law enforcement entity and collaborate and cooperate with law enforcement to
assist in the investigation and any subsequent civil and criminal prosecution.

Sec. 7.

Minnesota Statutes 2024, section 127A.21, subdivision 1a, is amended to read:

Subd. 1a.

Definitions.

(a) For purposes of this section, the following terms have the
meanings given.

(b) "Abuse" means actions that may, directly or indirectly, result in unnecessary costs
to department programs. Abuse may involve paying for items or services when there is no
legal entitlement to that payment new text begin , or behavior that is deficient or improper when compared
with behavior that a prudent person would consider a reasonable and necessary business
practice given the facts and circumstances. Abuse includes but is not limited to new text end deleted text begin . deleted text end new text begin :
new text end

new text begin (1) obtaining or attempting to obtain department program funds when required
information is missing or incorrect;
new text end

new text begin (2) failing to correct errors in the filing or maintenance of records in a timely manner
after a request by the department;
new text end

new text begin (3) obtaining or attempting to obtain department program funds that overstate the level
or amount that is allowed to be reimbursed under law, program rules, or contract;
new text end

new text begin (4) obtaining or attempting to obtain grant funds from the department program by means
that are not allowed or do not comply with grant requirements;
new text end

new text begin (5) failing to disclose or make available requested records to the department pursuant
to law, program rules, or contract;
new text end

new text begin (6) refusing to provide access to records as required by subdivision 4;
new text end

new text begin (7) failing to keep or maintain records as required by law, rule, or contract; and
new text end

new text begin (8) a program participant seeking department program funds after being excluded.
new text end

(c) "Department program" means a program funded by the Department of Education
that involves the transfer or disbursement of public funds or other resources to a program
participant. "Department program" includes state and federal aids or grants received by a
school district or charter school or other program participant.

new text begin (d) "Excluded" means removed by any means from a program administered by a
Minnesota state agency or federal agency.
new text end

deleted text begin (d) deleted text end new text begin (e) new text end "Fraud" means an intentional or deliberate act to deprive another of property or
money or to acquire property or money by deception or other unfair means. Fraud includes
intentionally submitting false information to the department for the purpose of new text begin either new text end
obtaining a greater compensation or benefit than that to which the deleted text begin person deleted text end new text begin program participant new text end
is legally entitled new text begin or hiding the misuse of funds new text end . deleted text begin Fraud also includes failure to correct errors
in the maintenance of records in a timely manner after a request by the department. deleted text end new text begin Fraud
also includes acts that constitute a crime against any program, or attempts or conspiracies
to commit those crimes, including but not limited to the following:
new text end

new text begin (1) theft in violation of section 609.52;
new text end

new text begin (2) perjury in violation of section 609.48; and
new text end

new text begin (3) aggravated forgery and forgery in violation of sections 609.625 and 609.63.
new text end

deleted text begin (e) deleted text end new text begin (f) new text end "Investigation" means an audit, investigation, proceeding, or inquiry by the Office
of the Inspector General related to a program participant in a department program.

deleted text begin (f) deleted text end new text begin (g) new text end "Program participant" means any entity or person, including associated new text begin entities
or new text end persons, that receives, disburses, or has custody of funds or other resources transferred
or disbursed under a department program. new text begin Associated persons or entities include but are not
limited to vendors or other entities or persons that contract with recipients of department
program funds.
new text end

new text begin (h) "Theft" means the act defined in section 609.52, subdivision 2.
new text end

deleted text begin (g) deleted text end new text begin (i) new text end "Waste" means practices that, directly or indirectly, result in unnecessary costs
to department programs, such as misusing resources. new text begin Waste includes an attempt or act using
or expending resources carelessly, extravagantly, or to no purpose.
new text end

deleted text begin (h) deleted text end new text begin (j) new text end For purposes of this section, neither "fraud," new text begin "theft," new text end "waste," nor "abuse" includes
decisions on instruction, curriculum, personnel, or other discretionary policy decisions made
by a school district, charter school, cooperative unit as defined by section 123A.24,
subdivision 2, or any library, library system, or library district defined in section 134.001.

Sec. 8.

Minnesota Statutes 2024, section 127A.21, subdivision 4, is amended to read:

Subd. 4.

Access to records.

(a) For purposes of an investigation, and regardless of the
data's classification under chapter 13, the Office of the Inspector General shall have access
to all relevant books, accounts, documents, data, and property related to department programs
that are maintained by a program participant, charter school, or government entity as defined
by section 13.02.

(b) Notwithstanding paragraph (a), the Office of the Inspector General must issue a
subpoena under subdivision 3 in order to access routing and account numbers to which
Department of Education funds have been disbursed.

(c) Records requested by the Office of the Inspector General under this subdivision shall
be provided in a format, place, and time frame reasonably requested by the Office of the
Inspector General.

(d) The department may enter into specific agreements with other state agencies related
to records requests by the Office of the Inspector General.

new text begin (e) In an investigation, program participants must give the Office of the Inspector General
immediate access without prior notice to any locations of potential record storage and the
records themselves, whether physical or electronic, during regular business hours, and to
any records related to a department program. Denying the Office of the Inspector General
access to requested records is cause for immediate suspension of payment.
new text end

new text begin (f) The Office of the Inspector General, at its own expense, may photocopy or otherwise
duplicate any record related to a department program. Photocopying or electronic duplication
shall be done on the program participant's premises when immediate access is requested,
unless removal is specifically permitted by the program participant. If requested, a program
participant must help the Office of the Inspector General duplicate any department program
record or other records related to a department program's operation, including hard copies
or electronically stored data, on the day when access is requested.
new text end

Sec. 9.

Minnesota Statutes 2024, section 127A.21, subdivision 5, is amended to read:

Subd. 5.

Sanctions; appeal.

(a) This subdivision does not authorize any sanction that
reduces, pauses, or otherwise interrupts state or federal aid to a school district, charter school,
cooperative unit as defined by section 123A.24, subdivision 2, or any library, library system,
or library district defined in section 134.001.

(b) The inspector general may recommend that the commissioner impose appropriate
deleted text begin temporary deleted text end sanctions deleted text begin , including withholding of payments under the department program, deleted text end on
a program participant deleted text begin pending an investigation by the Office of the Inspector General deleted text end if:

deleted text begin (1) during the course of an investigation, the Office of the Inspector General finds credible
indicia of fraud, waste, or abuse by the program participant;
deleted text end

deleted text begin (2) deleted text end new text begin (1) new text end there has been a criminal, civil, or administrative adjudication of fraud, new text begin theft, new text end
waste, or abuse against the program participant in Minnesota or in another state or
jurisdiction; new text begin or
new text end

deleted text begin (3) the program participant was receiving funds under any contract or registered in any
program administered by another Minnesota state agency, a government agency in another
state, or a federal agency, and was excluded from that contract or program for reasons
credibly indicating fraud, waste, or abuse by the program participant; or
deleted text end

deleted text begin (4) deleted text end new text begin (2) new text end the program participant has a pattern of noncompliance with an investigation.

(c) If an investigation finds, by a preponderance of the evidence, fraud, new text begin theft, new text end waste, or
abuse by a program participant, the inspector general may, after reviewing all facts and
evidence and when acting judiciously on a case-by-case basis, recommend that the
commissioner impose appropriate sanctions on the program participant.

(d) Unless prohibited by law, the commissioner has the authority to implement
recommendations by the inspector general, including imposing appropriate sanctions deleted text begin ,
temporarily or otherwise, deleted text end on a program participant. Sanctions may include ending program
participation, stopping disbursement of funds or resources, monetary recovery, and
termination of department contracts with the participant for any current or future department
program or contract. A sanction may be imposed for up to the longest period permitted by
state or federal law. Sanctions authorized under this subdivision are in addition to other
remedies and penalties available under law.

(e) If the commissioner imposes sanctions on a program participant under this subdivision,
the commissioner must notify the participant in writing within seven business days of
imposing the sanction, unless requested in writing by a law enforcement agency to
temporarily delay issuing the notice to prevent disruption of an ongoing law enforcement
agency investigation. A notice of sanction must state:

(1) the sanction being imposed;

(2) the general allegations that form the basis for the sanction;

(3) the duration of the sanction;

(4) the department programs to which the sanction applies; and

(5) how the program participant may appeal the sanction pursuant to paragraph (e).

(f) A program participant sanctioned under this subdivision may, within 30 days after
the date the notice of sanction was mailed to the participant, appeal the determination by
requesting in writing that the commissioner initiate a contested case proceeding under
chapter 14. The scope of any contested case hearing is limited to the sanction imposed under
this subdivision. An appeal request must specify with particularity each disputed item, the
reason for the dispute, and must include the name and contact information of the person or
entity that may be contacted regarding the appeal.

(g) The commissioner shall lift sanctions imposed under this subdivision if the Office
of the Inspector General determines there is insufficient evidence of fraud, new text begin theft, new text end waste, or
abuse by the program participant. The commissioner must notify the participant in writing
within seven business days of lifting the sanction.

Sec. 10.

Minnesota Statutes 2024, section 127A.21, subdivision 6, is amended to read:

Subd. 6.

Data practices.

(a) It is not a violation of rights conferred by chapter 13 or any
other statute related to the confidentiality of government data for a government entity as
defined in section 13.02 to provide data or information under this section.

(b) The inspector general is subject to the Government Data Practices Act, chapter 13,
and shall protect from unlawful disclosure data classified as not public. Data collected,
created, received, or maintained by the inspector general relating to an deleted text begin audit, deleted text end investigation,
proceeding, or inquiry are subject to deleted text begin section 13.39 deleted text end new text begin sections 13.3211 and 13.82 new text end .

Sec. 11.

Minnesota Statutes 2024, section 127A.21, subdivision 7, is amended to read:

Subd. 7.

deleted text begin Retaliation, deleted text end Interference prohibited.

deleted text begin (a) An employee or other individual
who discloses information to the Office of the Inspector General about fraud, waste, or
abuse in department programs is protected under section 181.932, governing disclosure of
information by employees.
deleted text end

deleted text begin (b) deleted text end No state employee may interfere with or obstruct an investigation authorized by this
section.

Sec. 12.

Minnesota Statutes 2024, section 127A.21, is amended by adding a subdivision
to read:

new text begin Subd. 8. new text end

new text begin Immunity and confidentiality. new text end

new text begin (a) A person who makes a good faith report
is immune from any civil liability that might otherwise arise from reporting or participating
in the investigation. Nothing in this subdivision affects an individual's or entity's
responsibility for any monetary recovery under existing law or contractual obligation when
receiving public funds.
new text end

new text begin (b) For purposes of this subdivision, "person" means a natural person.
new text end

new text begin (c) After an investigation is complete, the reporter's name and any identifying information
must be kept confidential. The subject of the report may compel disclosure of the reporter's
name only with the consent of the reporter or upon a written finding by a district court that
the report was false and there is evidence that the report was made in bad faith. This
subdivision does not alter disclosure responsibilities or obligations under the Rules of
Criminal Procedure, except that when the identity of the reporter is relevant to a criminal
prosecution the district court shall conduct an in-camera review before determining whether
to order disclosure of the reporter's identity.
new text end

Sec. 13.

Minnesota Statutes 2024, section 127A.21, is amended by adding a subdivision
to read:

new text begin Subd. 9. new text end

new text begin Limits on receiving public funds; prohibition. new text end

new text begin (a) This subdivision does not
authorize any action that reduces, pauses, or otherwise interrupts state or federal aid to a
school district, charter school, cooperative unit as defined in section 123A.24, subdivision
2, or any library, library system, or library district defined in section 134.001.
new text end

new text begin (b) For purposes of this subdivision, "program participant" includes individuals or persons
who have an ownership interest in, control of, or the ability to control a program participant
in a department program.
new text end

new text begin (c) If a program participant is excluded from a department program, the inspector general
shall notify the commissioner, who shall:
new text end

new text begin (1) prohibit the excluded program participant from enrolling in, receiving grant money
from, or registering in any other program administered by the commissioner; and
new text end

new text begin (2) disenroll or disqualify the excluded program participant from any other program
administered by the commissioner.
new text end

new text begin (d) If a program participant enrolled, licensed, or receiving funds under any contract or
program administered by a Minnesota state agency or federal agency is excluded from that
program, the inspector general shall notify the commissioner, who may:
new text end

new text begin (1) prohibit the excluded program participant from enrolling in, becoming licensed,
receiving grant money from, or registering in any other program administered by the
commissioner; and
new text end

new text begin (2) disenroll or disqualify the excluded program participant from any other program
administered by the commissioner.
new text end

new text begin (e) The duration of a prohibition, disenrollment, revocation, suspension, or
disqualification under paragraph (c) must last for the longest applicable sanction or
disqualifying period in effect for the program participant permitted by state or federal law.
The duration of a prohibition, disenrollment, revocation, suspension, or disqualification
under paragraph (d) may last up until the longest applicable sanction or disqualifying period
in effect for the program participant as permitted by state or federal law.
new text end

Sec. 14.

Minnesota Statutes 2024, section 127A.21, is amended by adding a subdivision
to read:

new text begin Subd. 10. new text end

new text begin Notice. new text end

new text begin Within five days of taking an action against a program participant
under subdivision 9, paragraph (c) or (d), the commissioner must send notice of the action
to the program participant. The notice must state:
new text end

new text begin (1) the basis for the action;
new text end

new text begin (2) the effective date of the action;
new text end

new text begin (3) the right to appeal the action; and
new text end

new text begin (4) the requirements and procedures for reinstatement.
new text end

Sec. 15.

Minnesota Statutes 2024, section 127A.21, is amended by adding a subdivision
to read:

new text begin Subd. 11. new text end

new text begin Appeal. new text end

new text begin (a) Upon receipt of a notice under subdivision 10, a program
participant may request a contested case hearing, as defined in section 14.02, subdivision
3, by filing with the commissioner a written request of appeal. The appeal request must be
received by the commissioner no later than 30 days after the date the notification was mailed
to the program participant.
new text end

new text begin (b) The appeal request must specify: (1) each disputed item and the reason for the dispute;
(2) the authority in statute or rule upon which the program participant relies for each disputed
item; (3) the name and address of the person or entity with whom contacts may be made
regarding the appeal; and (4) other information required by the commissioner.
new text end

new text begin (c) Unless timely and proper appeal is received by the commissioner, the action of the
commissioner shall be considered final and binding on the effective date of the action as
stated in the notice under subdivision 10, clause (2).
new text end

Sec. 16.

Minnesota Statutes 2024, section 127A.21, is amended by adding a subdivision
to read:

new text begin Subd. 12. new text end

new text begin Withholding of payments. new text end

new text begin (a) This subdivision does not authorize withholding
of payments that reduces, pauses, or otherwise interrupts state or federal aid to a school
district, charter school, cooperative unit as defined in section 123A.24, subdivision 2, or
any library, library system, or library district defined in section 134.001.
new text end

new text begin (b) Except as otherwise provided by state or federal law, the inspector general shall
notify and recommend to the commissioner to withhold payments to a program participant
in any program administered by the commissioner, to the extent permitted under federal
law, if the commissioner determines there is a credible allegation of fraud or theft for which
an investigation is pending for a program administered by the department, a Minnesota state
agency, or a federal agency.
new text end

new text begin (c) Allegations are considered credible when they have indicia of reliability and the
inspector general has reviewed the evidence and acts on a case-by-case basis. A credible
allegation of fraud is an allegation that has been verified by the commissioner from any
source, including but not limited to:
new text end

new text begin (1) fraud hotline complaints;
new text end

new text begin (2) claims data mining; and
new text end

new text begin (3) patterns identified through provider audits, civil false claims cases, and investigations.
new text end

new text begin (d) The commissioner must send notice of the withholding of payments within five days
of taking such action. The notice must: (1) state that payments are being withheld according
to this paragraph; (2) set forth the general allegations as to the reasons for the withholding
action, but need not disclose any specific information concerning an ongoing investigation;
(3) state that the withholding is for a temporary period and cite the circumstances under
which withholding will be terminated; and (4) inform the program participant of the right
to submit written evidence for consideration by the commissioner.
new text end

new text begin (e) The withholding of payments shall not continue after the commissioner determines
there is insufficient evidence of fraud by the program participant or after legal proceedings
relating to the alleged fraud are completed, unless the commissioner has sent notice under
subdivision 5 of the intention to take an additional action related to the program participant's
participation in a program administered by the commissioner.
new text end

new text begin (f) The withholding of payments is a temporary action and shall not be subject to appeal
under this subdivision or chapter 14.
new text end

Sec. 17.

Minnesota Statutes 2024, section 127A.49, subdivision 3, is amended to read:

Subd. 3.

Excess tax increment.

(a) new text begin The county auditor must, prior to February 1 of each
year, certify to the commissioner of education the amount of any excess tax increment that
accrued to the district during the preceding year. new text end If a return of excess tax increment is made
to a district pursuant to sections 469.176, subdivision 2, and 469.177, subdivision 9, or upon
decertification of a tax increment district, the school district's aid and levy limitations must
be adjusted for the fiscal year in which the excess tax increment is paid under the provisions
of this subdivision.

(b) An amount must be subtracted from the district's aid for the current fiscal year equal
to the product of:

(1) the amount of the payment of excess tax increment to the district in the preceding
year, times

(2) the ratio of:

(i) the sum of the amounts of the district's certified levy in the third preceding year
according to the following:

(A) section 123B.57, if the district received health and safety aid according to that section
for the second preceding year;

(B) section 124D.20, if the district received aid for community education programs
according to that section for the second preceding year;

(C) section 142D.11, subdivision 3, if the district received early childhood family
education aid according to section 142D.11 for the second preceding year;

(D) section 126C.17, subdivision 6, if the district received referendum equalization aid
according to that section for the second preceding year;

(E) section 126C.10, subdivision 13a, if the district received operating capital aid
according to section 126C.10, subdivision 13b, in the second preceding year;

(F) section 126C.10, subdivision 29, if the district received equity aid according to
section 126C.10, subdivision 30, in the second preceding year;

(G) section 126C.10, subdivision 32, if the district received transition aid according to
section 126C.10, subdivision 33, in the second preceding year;

(H) section 123B.53, subdivision 5, if the district received debt service equalization aid
according to section 123B.53, subdivision 6, in the second preceding year;

(I) section 123B.535, subdivision 4, if the district received natural disaster debt service
equalization aid according to section 123B.535, subdivision 5, in the second preceding year;

(J) section 124D.22, subdivision 3, if the district received school-age care aid according
to section 124D.22, subdivision 4, in the second preceding year; and

(K) section 122A.415, subdivision 5, if the district received alternative teacher
compensation equalization aid according to section 122A.415, subdivision 6, paragraph (a),
in the second preceding year; to

(ii) the total amount of the district's certified levy in the third preceding year, plus or
minus auditor's adjustments.

(c) An amount must be subtracted from the school district's levy limitation for the next
levy certified equal to the difference between:

(1) the amount of the distribution of excess increment; and

(2) the amount subtracted from aid pursuant to clause (a).

If the aid and levy reductions required by this subdivision cannot be made to the aid for
the fiscal year specified or to the levy specified, the reductions must be made from aid for
subsequent fiscal years, and from subsequent levies. The school district must use the payment
of excess tax increment to replace the aid and levy revenue reduced under this subdivision.

(d) This subdivision applies only to the total amount of excess increments received by
a district for a calendar year that exceeds $25,000.

Sec. 18.

Minnesota Statutes 2024, section 268.19, subdivision 1, is amended to read:

Subdivision 1.

Use of data.

(a) Except as provided by this section, data gathered from
any person under the administration of the Minnesota Unemployment Insurance Law are
private data on individuals or nonpublic data not on individuals as defined in section 13.02,
subdivisions 9 and 12, and may not be disclosed except according to a district court order
or section 13.05. A subpoena is not considered a district court order. These data may be
disseminated to and used by the following agencies without the consent of the subject of
the data:

(1) state and federal agencies specifically authorized access to the data by state or federal
law;

(2) any agency of any other state or any federal agency charged with the administration
of an unemployment insurance program;

(3) any agency responsible for the maintenance of a system of public employment offices
for the purpose of assisting individuals in obtaining employment;

(4) the public authority responsible for child support in Minnesota or any other state in
accordance with section 518A.83;

(5) human rights agencies within Minnesota that have enforcement powers;

(6) the Department of Revenue to the extent necessary for its duties under Minnesota
laws;

(7) public and private agencies responsible for administering publicly financed assistance
programs for the purpose of monitoring the eligibility of the program's recipients;

(8) the Department of Labor and Industry and the Commerce Fraud Bureau in the
Department of Commerce for uses consistent with the administration of their duties under
Minnesota law;

(9) the Department of Human Services and the Office of Inspector General and its agents
within the Department of Human Services, including county fraud investigators, for
investigations related to recipient or provider fraud and employees of providers when the
provider is suspected of committing public assistance fraud;

(10) the Department of Human Services for the purpose of evaluating medical assistance
services and supporting program improvement;

(11) local and state welfare agencies for monitoring the eligibility of the data subject
for assistance programs, or for any employment or training program administered by those
agencies, whether alone, in combination with another welfare agency, or in conjunction
with the department or to monitor and evaluate the statewide Minnesota family investment
program and other cash assistance programs, the Supplemental Nutrition Assistance Program,
and the Supplemental Nutrition Assistance Program Employment and Training program by
providing data on recipients and former recipients of Supplemental Nutrition Assistance
Program (SNAP) benefits, cash assistance under chapter 256, 256D, 256J, or 256K, child
care assistance under chapter 142E, or medical programs under chapter 256B or 256L or
formerly codified under chapter 256D;

(12) local and state welfare agencies for the purpose of identifying employment, wages,
and other information to assist in the collection of an overpayment debt in an assistance
program;

(13) local, state, and federal law enforcement agencies for the purpose of ascertaining
the last known address and employment location of an individual who is the subject of a
criminal investigation;

(14) the United States Immigration and Customs Enforcement has access to data on
specific individuals and specific employers provided the specific individual or specific
employer is the subject of an investigation by that agency;

(15) the Department of Health for the purposes of epidemiologic investigations;

(16) the Department of Corrections for the purposes of case planning and internal research
for preprobation, probation, and postprobation employment tracking of offenders sentenced
to probation and preconfinement and postconfinement employment tracking of committed
offenders;

(17) the state auditor to the extent necessary to conduct audits of job opportunity building
zones as required under section 469.3201;

(18) the Office of Higher Education for purposes of supporting program improvement,
system evaluation, and research initiatives including the Statewide Longitudinal Education
Data System; deleted text begin and
deleted text end

(19) the Family and Medical Benefits Division of the Department of Employment and
Economic Development to be used as necessary to administer chapter 268B deleted text begin . deleted text end new text begin ; and
new text end

new text begin (20) the Department of Education Office of the Inspector General for investigations
related to fraud, theft, waste, and abuse or other misuse of public funds by a program
participant in a department program pursuant to chapter 127A.21.
new text end

(b) Data on individuals and employers that are collected, maintained, or used by the
department in an investigation under section 268.182 are confidential as to data on individuals
and protected nonpublic data not on individuals as defined in section 13.02, subdivisions 3
and 13, and must not be disclosed except under statute or district court order or to a party
named in a criminal proceeding, administrative or judicial, for preparation of a defense.

(c) Data gathered by the department in the administration of the Minnesota unemployment
insurance program must not be made the subject or the basis for any suit in any civil
proceedings, administrative or judicial, unless the action is initiated by the department.