HF 5381

as introduced - 93rd Legislature (2023 - 2024) Posted on 04/15/2024 03:37pm

A bill for an act
relating to education; expanding authority of the Department of Education Office
of the Inspector General; amending Minnesota Statutes 2023 Supplement, section
127A.21, subdivision 2, by adding subdivisions.

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

Section 1.

Minnesota Statutes 2023 Supplement, section 127A.21, subdivision 2, is
amended to read:

Subd. 2.

deleted text begin Data practices; deleted text end Hiring; reporting.

deleted text begin The Office of the Inspector General has
access to all program data, regardless of classification under chapter deleted text end deleted text begin 13 deleted text end deleted text begin , held by the
department, school districts or charter schools, grantees, and any other recipient of funds
from the department. deleted text end The commissioner, or the commissioner's designee, must hire an
inspector general to lead the Office of the Inspector General. The inspector general must
hire a deputy inspector general and, at the discretion of the inspector general, sufficient
assistant inspectors general to carry out the duties of the office. In a form and manner
determined by the inspector general, the Office of the Inspector General must develop a
public platform for the public to report instances of potential fraud, waste, or abuse of public
funds administered by the department.

Sec. 2.

Minnesota Statutes 2023 Supplement, section 127A.21, is amended by adding a
subdivision to read:

new text begin Subd. 3. new text end

new text begin Subpoenas. new text end

new text begin (a) For the purpose of any audit, investigation, proceeding, or
inquiry related to the duties and responsibilities of the inspector general, the inspector general
or a designee may administer oaths and affirmations, subpoena witnesses, compel attendance,
take evidence, and issue subpoenas duces tecum to require the production of books, papers,
correspondence, memoranda, agreements, financial records, or other documents or records
that the inspector general considers relevant to an audit or investigation.
new text end

new text begin (b) A subpoena issued pursuant to this subdivision must state that the subpoena recipient
may not disclose the fact that the subpoena was issued or the fact that the requested records
have been given to the inspector general, or their staff, except:
new text end

new text begin (1) in so far as the disclosure is necessary to find and disclose the records; or
new text end

new text begin (2) pursuant to court order.
new text end

new text begin (c) The fees for service of a subpoena must be paid in the same manner as prescribed
by law for a service of process issued by a district court.
new text end

new text begin (d) The subpoena issued under this subdivision shall be enforceable through the district
court in the district where the subpoena is issued.
new text end

Sec. 3.

Minnesota Statutes 2023 Supplement, section 127A.21, is amended by adding a
subdivision to read:

new text begin Subd. 4. new text end

new text begin Access to records. new text end

new text begin (a) For purposes of a fraud, waste, or abuse investigation,
the Office of the Inspector General shall have the authority to receive from other state
agencies routing and account numbers to which the Department of Education's public funding
has been disbursed, provided that a subpoena has been issued by the inspector general under
this section.
new text end

new text begin (b) For purposes of detecting fraud, waste, or abuse, the Office of the Inspector General
shall have access to all books, accounts, documents, data, and property related to programs
funded by the Department of Education that are held by the department, state agencies,
school districts, or charter schools. The program and financial data shall be provided in a
format and time frame prescribed by the inspector general. The department may enter into
specific agreements with other agencies related to each request.
new text end

new text begin (c) For purposes of detecting fraud, waste, or abuse, the Office of the Inspector General
shall have access to all books, accounts, documents, data, and property related to programs
funded by the Department of Education that are held by entities, corporations, firms, or
individuals that receive, disburse, or have custody of program funds disbursed by the
department. Requested records shall be made available at a time and place requested by the
Office of the Inspector General. The information shall be provided in a format and time
frame prescribed by the inspector general.
new text end

Sec. 4.

Minnesota Statutes 2023 Supplement, section 127A.21, is amended by adding a
subdivision to read:

new text begin Subd. 5. new text end

new text begin Recommended actions. new text end

new text begin (a) If a criminal conviction or guilty plea results from
a fraud, waste, or abuse investigation related to a department program, the inspector general
may recommend to the commissioner that sanctions, including ending program participation,
stopping funds disbursement, or ending, denying, or declining all department contracts with
the impacted entity, may be imposed. The commissioner has the authority to implement
recommendations from Office of the Inspector General investigations.
new text end

new text begin (b) If, during the course of an investigation by the Office of the Inspector General, there
are credible indicia of fraud, waste, or abuse, the inspector general may recommend to the
commissioner that temporary sanctions, including temporary stop payment, be imposed.
The commissioner has the authority to implement recommendations from Office of the
Inspector General investigations.
new text end

new text begin (c) If a fraud, waste, or abuse investigation conducted by the Office of the Inspector
General results in a finding of fraud, waste, or abuse by a preponderance of the evidence,the
inspector general may recommend to the commissioner that sanctions, including ending
program participation, stopping funds disbursement, or ending, denying, or declining all
department contracts with the impacted entity, may be imposed. The commissioner has the
authority to implement recommendations from the Office of the Inspector General
investigations.
new text end

new text begin (d) If an entity, provider, vendor, or individual enrolled or otherwise receiving funds
under any contract or registered in any program administered by a Minnesota state or federal
agency is excluded from that program, the Office of the Inspector General may recommend
that the commissioner:
new text end

new text begin (1) prohibit the excluded provider, vendor, individual, or any associated entities or
associated individuals from enrolling, receiving grant funds, or registering in any program
administered by the commissioner; and
new text end

new text begin (2) disenroll, disqualify, or debar the excluded provider, vendor, individual, or any
associated entities or associated individuals in any program administered by the
commissioner.
new text end

new text begin The duration of a prohibition, disenrollment, disqualification, or debarment may last until
up to the longest applicable sanction or disqualifying period in effect for the entity, provider,
vendor, individual, associated entity, or associated individual as permitted by state or federal
law.
new text end

new text begin (e) The commissioner must send notice of a sanction under paragraph (a), (b), or (c)
within seven business days of taking such action 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. The notice must state: (1) the action being
taken; (2) the general allegations that form the basis for the sanction; (3) except in the case
of a conviction for conduct described in paragraph (a), state the duration of the exclusion,
suspension, or termination; (4) identify the programs to which the sanction applies; and (5)
provide notice of the right to request reconsideration.
new text end

new text begin (f) Upon receipt of a notice under paragraph (e), a provider, vendor, individual, associated
individual, or associated entity may request a contested case hearing, as defined in section
14.02, subdivision 3, by filing with the Office of the Inspector General a written request of
appeal. The scope of any contested case hearing is solely limited to action taken under this
section. The Office of the Inspector General must receive the appeal request no later than
30 days after the date the notice was mailed to the provider, vendor, individual, associated
individual, or associated entity. The appeal request must specify:
new text end

new text begin (1) each disputed item and the reason for the dispute;
new text end

new text begin (2) the authority in statute or rule upon which the provider, vendor, individual, associated
individual, or associated entity relies for each disputed item;
new text end

new text begin (3) the name and address of the person or entity with whom contacts may be made
regarding the appeal; and
new text end

new text begin (4) any other information required by the Office of the Inspector General.
new text end

new text begin (g) The commissioner shall stop withholding payments if the Office of the Inspector
General determines there is insufficient evidence of fraud by the entity, provider, vendor,
individual, associated individual, or associated entity or when legal proceedings relating to
the alleged fraud are completed.
new text end

new text begin (h) For the purposes of this subdivision, fraud, waste, or abuse includes any of the
following, but is not limited to:
new text end

new text begin (1) a pattern of presentment of false or duplicate information or claims;
new text end

new text begin (2) a pattern of making false statements of material facts for the purpose of obtaining
greater compensation than that to which the individual or entity is legally entitled;
new text end

new text begin (3) suspension or termination as a vendor, provider, or contractor with any other state
agency;
new text end

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

new text begin (5) failure to correct errors in the maintenance of records after a request by the
commissioner or the department.
new text end

Sec. 5.

Minnesota Statutes 2023 Supplement, section 127A.21, is amended by adding a
subdivision to read:

new text begin Subd. 6. new text end

new text begin Data practices. new text end

new text begin (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.
new text end

new text begin (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.
new text end