HF 2458

2nd Engrossment - 87th Legislature (2011 - 2012) Posted on 04/19/2012 11:27am

A bill for an act
relating to state government; creating an advisory inspections process; proposing
coding for new law in Minnesota Statutes, chapter 15.

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

Section 1.

new text begin [15.985] ADVISORY INSPECTIONS.
new text end

new text begin (a) Upon the voluntary request of a person to a state agency for an advisory
inspection for the purpose of complying with state law, the agency must, except as
provided in paragraphs (f) and (g), conduct an advisory inspection. An agency is not
required to conduct an advisory inspection if the agency has a regularly scheduled
inspection that would occur within 90 days after the request for the advisory inspection,
or if before an advisory inspection is requested, the agency has notified the person that
it will be conducting an inspection within 45 days. If an advisory inspection results in
findings that potentially could make a person subject to a fine or other penalty imposed
by the agency, the agency must notify the person in writing of those findings within ten
days of the inspection.
new text end

new text begin (1) Except as provided in clause (2), if within 60 days of receiving notice the person
notifies that agency it has corrected the situation that made the person potentially subject
to the fine or penalty, and the agency later determines that the situation is corrected,
the agency may not impose a fine or penalty as a result of the findings in the advisory
inspection.
new text end

new text begin (2) For violations of chapter 177, if the person notifies the agency within the time
period for remedying violations required under the applicable section of chapter 177, that
it has corrected the situation that made the person potentially subject to the fine or penalty,
and the agency later determines that the situation is corrected, the agency may not impose
a fine or penalty as a result of the finding in the advisory inspection.
new text end

new text begin (3) A person may not request more than one advisory inspection from the same
agency in a calendar year.
new text end

new text begin (b) For purposes of this section:
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new text begin (1) "inspection" includes an examination of real or personal property, or an audit or
other examination of financial or other documents;
new text end

new text begin (2) "penalty" includes a civil or administrative fine or other financial sanction;
new text end

new text begin (3) "person" includes a real person and businesses, including corporations,
partnerships, limited liability companies, and unincorporated associations; and
new text end

new text begin (4) "state agency" means a department, agency, board, commission, constitutional
office, or other group in the executive branch of state government.
new text end

new text begin (c) If an agency revises, amends, extends, or adds additional violations to a notice,
the person has 60 days from the date of those changes to correct the situation without fine
or penalty. For violations of chapter 177, the person has the time period for remedying
violations under the applicable section of chapter 177, to correct the situation without
fine or penalty.
new text end

new text begin (d) An agency conducting an inspection under this section may impose and collect
from the person requesting the inspection, a fee equal to the costs incurred by the agency
related to the inspection. Fees under this section shall be considered as charges for goods
and services provided for the direct and primary use of a private individual, business, or
other entity under section 16A.1283, paragraph (b), clause (3). Fee revenue collected
under this section must be deposited in an appropriate fund other than the general fund
and is appropriated from that fund to the agency collecting the fee for the purpose of
conducting inspections under this section.
new text end

new text begin (e) Nothing in this section shall prohibit or interfere with an agency offering similar
programs that allow independent audits or inspections, including the environmental
improvement program under chapter 114C.
new text end

new text begin (f) If agency staff resources are limited, an agency must give higher priority to
the agency's regular inspections over advisory inspections under this section. In so
far as conducting advisory inspections reduces an agency's costs, the savings must be
reflected in the charges for advisory inspections. An agency may not add additional staff
complement for purposes of this section before July 1, 2013. An agency may not add
additional staff complement for purposes of this section after July 1, 2013, unless: (1)
the agency has presented a request for additional staff complement to the legislature; (2)
the agency has documented the demand for advisory inspections and has documented
why additional staff complement is needed to meet the demand; and (3) the agency has
documented that the revenue generated by advisory inspections will cover the expenses of
the additional staff complement.
new text end

new text begin (g) This section does not apply to:
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new text begin (1) criminal penalties;
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new text begin (2) situations in which implementation of this section is prohibited by federal law or
would result in loss of federal funding or other federal sanctions;
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new text begin (3) conduct constituting fraud;
new text end

new text begin (4) violations in a manner that endangers a human life or presents significant risk of
major injury or severe emotional harm to humans;
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new text begin (5) violations that are part of a pattern that has occurred repeatedly and shows
willful intent;
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new text begin (6) violations for which it may be demonstrated that the alternative inspections
process is being used to avoid enforcement;
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new text begin (7) violations that occur within three years of violating an applicable law;
new text end

new text begin (8) the Department of Revenue;
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new text begin (9) the Workers' Compensation Division at the Department of Labor and Industry;
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new text begin (10) violations of vehicle size and weight limits under sections 169.80 to 169.88; and
new text end

new text begin (11) commercial motor vehicle inspections under section 169.781 and motor carrier
regulations under chapter 221.
new text end

new text begin (h) An agency may terminate an advisory inspection and proceed as if an inspection
were a regular inspection if, in the process of conducting an advisory inspection, the
agency finds a situation that the agency determines: could lead to criminal penalties;
endangers human life or presents significant risk of major injury or severe emotional harm
to humans; or evidences a pattern of willful violations.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012.
new text end