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SF 1019

2nd Engrossment - 92nd Legislature (2021 - 2022) Posted on 05/06/2021 08:36am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 2nd Engrossment

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A bill for an act
relating to legislative audits; modifying various provisions governing Office of
the Legislative Auditor activities; appropriating money; repealing certain auditing
duties; amending Minnesota Statutes 2020, sections 3.971, subdivision 2, by adding
a subdivision; 3.972, subdivisions 2, 2a; 3.9741, subdivision 5; 3.978, subdivision
2; 3.979, subdivision 3; 299D.03, subdivision 2a; repealing Minnesota Statutes
2020, section 3.972, subdivisions 2c, 2d.

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

Section 1.

Minnesota Statutes 2020, section 3.971, subdivision 2, is amended to read:


Subd. 2.

Staff; compensation.

(a) The legislative auditor shall establish a Financial
Audits Division and a Program Evaluation Division to fulfill the duties prescribed in this
section.

(b) Each division may be supervised by a deputy auditor, appointed by the legislative
auditor, with the approval of the commission, for a term coterminous with the legislative
auditor's term. The deputy auditors may be removed before the expiration of their terms
only for cause. The legislative auditor and deputy auditors may each appoint deleted text begina confidential
secretary
deleted text endnew text begin an administrative support specialistnew text end to serve at pleasure. The salaries and benefits
of the legislative auditor, deputy auditorsnew text begin,new text end and deleted text beginconfidential secretariesdeleted text endnew text begin administrative support
specialists
new text end shall be determined by the compensation plan approved by the Legislative
Coordinating Commission. The deputy auditors may perform and exercise the powers,
duties and responsibilities imposed by law on the legislative auditor when authorized by
the legislative auditor.

deleted text begin (c) The legislative auditor must appoint a fiscal oversight officer with duties that include
performing the review under section 3.972, subdivision 4.
deleted text end

deleted text begin (d)deleted text endnew text begin (c)new text end Thenew text begin legislative auditor,new text end deputy auditorsnew text begin,new text end and deleted text beginthe confidential secretariesdeleted text endnew text begin
administrative support specialists shall
new text end serve in the unclassified civil service, but deleted text beginthe fiscal
oversight officer and
deleted text end all other employees of the legislative auditor deleted text beginaredeleted text endnew text begin shall servenew text end in the
classified civil service. Compensation for employees of the legislative auditor in the classified
service shall be governed by a plan prepared by the legislative auditor and approved by the
Legislative Coordinating Commission and the legislature under section 3.855, subdivision
3
.

deleted text begin (e)deleted text endnew text begin (d)new text end While in office, a person appointed deputy for the Financial Audit Division must
hold an active license as a certified public accountant.

new text begin (e) Notwithstanding Minnesota Statutes, section 43A.32, subdivisions 2 and 3, or any
other law to the contrary, an employee of the legislative auditor is prohibited from being a
candidate for an elected public office.
new text end

Sec. 2.

Minnesota Statutes 2020, section 3.971, is amended by adding a subdivision to
read:


new text begin Subd. 8a. new text end

new text begin Special reviews. new text end

new text begin The legislative auditor may conduct a special review to: (1)
fulfill a legal requirement; (2) investigate allegations that an individual or organization
subject to audit by the legislative auditor may not have complied with legal requirements
related to the use of public money, other public resources, or government data classified as
not public; (3) respond to a legislative request for a review of an organization or program
subject to audit by the legislative auditor; or (4) investigate allegations that an individual
may not have complied with Minnesota Statutes, section 43A.38 or 43A.39.
new text end

Sec. 3.

Minnesota Statutes 2020, section 3.972, subdivision 2, is amended to read:


Subd. 2.

Audits of state and semistate agencies.

The legislative auditor shall deleted text beginmake a
constant
deleted text endnew text begin, as resources permit,new text end audit deleted text beginof alldeleted text endnew text begin thenew text end financial deleted text beginaffairsdeleted text endnew text begin activitiesnew text end ofnew text begin (1)new text end all departments
deleted text begin anddeleted text endnew text begin,new text end agencies deleted text beginofdeleted text endnew text begin, offices, and other organizations innew text end the statedeleted text begin,deleted text endnew text begin executive branch; (2) courts,
offices, and other organizations in the state judicial branch;
new text end and deleted text beginof the financial records and
transactions of
deleted text endnew text begin (3) new text end public boards, associations, deleted text beginanddeleted text end societiesnew text begin,new text endnew text begin and other public organizations
created by state law or
new text end supported, wholly or in part, by state funds. deleted text beginOnce in each year, if
funds and personnel permit, without previous notice,
deleted text end The legislative auditor shall deleted text beginvisit each
state department and agency, association or society and, so far as practicable,
deleted text end

deleted text begin (1) inspect;
deleted text end

deleted text begin (2) thoroughly examine its books and accounts, verifying the funds, securities, and other
assets;
deleted text end

deleted text begin (3) check the items of receipts and disbursements with its voucher records;
deleted text end

deleted text begin (4) ascertain the character of the official bonds for its officers and the financial ability
of the bonding institution;
deleted text end

deleted text begin (5) inspect its sources of revenue and the use and disposition of state appropriations and
property;
deleted text end

deleted text begin (6) investigate the methods of purchase and sale and the character of contracts on public
account;
deleted text end

deleted text begin (7) ascertain proper custody and depository for its funds and securities;
deleted text end

deleted text begin (8) verify the inventory of public property and other assets held in trust; and
deleted text end

deleted text begin (9)deleted text end ascertain that all financial transactions and operations involving the public funds and
property of the state comply with the spirit and purpose of the law, are sound by modern
standards of financial managementnew text begin,new text end and are for the best protection of deleted text beginthedeleted text end public deleted text begininterestdeleted text endnew text begin
funds and other public resources
new text end.

Sec. 4.

Minnesota Statutes 2020, 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 deleted text begincontinuousdeleted text endnew text begin effectivenew text end
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 beginThe audits shall determine whetherdeleted text endnew text begin As resources permit, the legislative auditor
shall track and assess expenditures throughout the human service delivery system, from
new text end the
department deleted text beginoffereddeleted text endnew text begin to the point of service deliverynew text endnew text begin, and determine whether human servicesnew text end
programs deleted text beginand provideddeleted text endnew text begin,new text end servicesnew text begin,new text end and benefitsnew text begin are being provided cost-effectively andnew text end only
to eligible deleted text beginpersonsdeleted text endnew text begin individualsnew text end and organizationsdeleted text begin, and complieddeleted text endnew text begin in compliancenew text end with applicable
legal requirements.

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. 5.

Minnesota Statutes 2020, section 3.9741, subdivision 5, is amended to read:


Subd. 5.

deleted text beginStatedeleted text end Data securitydeleted text begin;deleted text end accountdeleted text begin,deleted text endnew text begin;new text end appropriation.

deleted text begin(a)deleted text end The data security account
is created in the special revenue fund.new text begin Money in the account is appropriated to the legislative
auditor.
new text end

deleted text begin (b) Subject to available funds appropriated under paragraph (a), the legislative auditor
shall:
deleted text end

deleted text begin (1) review and audit the audit reports of subscribers and requesters submitted under
section 168.327, subdivision 6, including producing findings and opinions;
deleted text end

deleted text begin (2) in collaboration with the commissioner and affected subscribers and requesters,
recommend corrective action plans to remediate any deficiencies identified under clause
(1); and
deleted text end

deleted text begin (3) review and audit driver records subscription services and bulk data practices of the
Department of Public Safety, including identifying any deficiencies and making
recommendations to the commissioner.
deleted text end

deleted text begin (c) The legislative auditor shall submit any reports, findings, and recommendations
under this subdivision to the legislative commission on data practices.
deleted text end

Sec. 6.

Minnesota Statutes 2020, section 3.978, subdivision 2, is amended to read:


Subd. 2.

Inquiry and inspection power; duty to aid legislative auditor.

All public
officials and their deputies and employees, and all corporations, firms, and individuals
having business involving the receipt, disbursement, or custody of public funds shall at all
times afford reasonable facilities for examinations by the legislative auditor, make returns
and reports required by the legislative auditor, attend and answer under oath the legislative
auditor's lawful inquiries, produce and exhibit all books, accounts, documents, data of any
classification, and property that the legislative auditor deleted text beginmay needdeleted text endnew text begin requestsnew text end to inspect, and in
all things deleted text beginaiddeleted text endnew text begin cooperate withnew text end the legislative auditor deleted text beginin the performance of dutiesdeleted text end.

Sec. 7.

Minnesota Statutes 2020, section 3.979, subdivision 3, is amended to read:


Subd. 3.

Audit data.

(a) "Audit" as used in this subdivision means a financial audit,
deleted text begin review,deleted text end program evaluation, deleted text beginbest practicesdeleted text endnew text begin specialnew text end review, or investigation. Data relating to
an audit are not public or with respect to data on individuals are confidential until the final
report of the audit has been released by the legislative auditor or the audit is no longer being
actively pursued. Upon release of a final audit report by the legislative auditor, data relating
to an audit are public except data otherwise classified as not public.

(b) Data related to an audit but not published in the audit report and that the legislative
auditor reasonably believes will be used in litigation are not public and with respect to data
on individuals are confidential until the litigation has been completed or is no longer being
actively pursued.

(c) Data deleted text beginon individualsdeleted text end that could reasonably be used to determine the identity of an
individual supplying data for an audit are private if the data supplied by the individual were
needed for an audit and the individual would not have provided the data to the legislative
auditor without an assurance that the individual's identity would remain private, or the
legislative auditor reasonably believes that the subject would not have provided the data.

(d) The definitions of terms provided in section 13.02 apply for purposes of this
subdivision.

Sec. 8.

Minnesota Statutes 2020, section 299D.03, subdivision 2a, is amended to read:


Subd. 2a.

Salary and benefits survey.

(a) By January 1 of 2021, deleted text begin2023, 2027deleted text endnew text begin 2024,
2027
new text end, and deleted text begin2031deleted text endnew text begin 2030new text end, the legislative auditor must conduct a compensation and benefit survey
of law enforcement officers in every police department:

(1) in a city with a population in excess of 25,000, located in a metropolitan county, as
defined in section 473.121, subdivision 4, that is represented by a union certified by the
Bureau of Mediation Services; or

(2) in a city of the first class.

The State Patrol must also be included in the survey.

(b) The legislative auditor must base the survey on compensation and benefits for the
past completed calendar year. The survey must be based on full-time equivalent employees.
The legislative auditor must calculate compensation using base salary, overtime wages, and
premium pay. Premium pay is payment that is received by a majority of employees and
includes but is not limited to education pay and longevity pay. The legislative auditor must
not include any payments made to officers or troopers for work performed for an entity
other than the agency that employs the officer or trooper, regardless of who makes the
payment. The legislative auditor must also include in the survey all benefits, including
insurance, retirement, and pension benefits. The legislative auditor must include contributions
from both the employee and employer when determining benefits.

(c) The legislative auditor must compile the survey results into a report. The report must
show each department separately. For each department, the survey must include:

(1) an explanation of the salary structure, and include minimum and maximum salaries
for each range or step; and

(2) an explanation of benefits offered, including the options that are offered and the
employee and employer contribution for each option.

Wherever possible, the report must be designed so that the data for each department is in
the same table or grid format to facilitate easy comparison.

(d) By January 15 of 2021, 2023, 2027, and 2031, the legislative auditor must transmit
the survey report to the chairs and ranking minority members of the house of representatives
and senate committees with jurisdiction over the State Patrol budget.

(e) It is the legislature's intent to use the information in this study to compare salaries
between the identified police departments and the State Patrol and to make appropriate
increases to patrol trooper salaries. For purposes of this paragraph, "patrol troopers" has the
meaning given in subdivision 2, paragraph (a).

Sec. 9. new text beginREPEALER.
new text end

new text begin Minnesota Statutes 2020, section 3.972, subdivisions 2c and 2d, new text end new text begin are repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: S1019-2

3.972 AUDITS OF AGENCIES.

Subd. 2c.

Audits of the Department of Transportation.

The legislative auditor must audit, as resources permit, the programs and services administered by the Department of Transportation.

Subd. 2d.

Audits of the Department of Public Safety.

The legislative auditor must audit, as resources permit, the programs and services administered by the Department of Public Safety.