Minnesota Session Laws - 1990, Regular Session

  

                         Laws of Minnesota 1990 

                        CHAPTER 566-S.F.No. 1854 
           An act relating to statutes and other government data; 
          establishing procedures for computerized comparisons 
          of data; requiring matching agreements; providing for 
          contesting of data; requiring reports; correcting 
          certain statutory references; amending Minnesota 
          Statutes 1988, sections 90.301, subdivision 6; 256.98, 
          subdivision 1; 256B.35, subdivision 5; 268.18, 
          subdivision 3; proposing coding for new law as 
          Minnesota Statutes, chapter 13B. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
     Section 1.  [13B.01] [DEFINITIONS.] 
    Subdivision 1.  [GENERAL.] For purposes of this chapter, 
the following terms have the meanings given them.  
    Subd. 2.  [BENEFIT PROGRAM.] "Benefit program" means a 
program administered by a public entity or agent of a public 
entity that provides cash or in-kind assistance in the form of 
payments, grants, subsidies, loans, loan guarantees, or any 
other form of financial assistance to individuals. 
    Subd. 3.  [FRONT END VERIFICATION.] "Front end verification"
means a computerized procedure operated by a public entity that 
checks the accuracy and truthfulness of data provided by an 
individual as part of an application with the public entity. 
    Subd. 4.  [GOVERNMENT DATA.] "Government data" has the 
meaning given the term in section 13.02, subdivision 7. 
    Subd. 5.  [INDIVIDUAL.] "Individual" has the meaning given 
the term in section 13.02, subdivision 8. 
    Subd. 6.  [LAW ENFORCEMENT AGENCY.] "Law enforcement 
agency" means an agency of the state, a political subdivision, 
or the University of Minnesota with the power to conduct 
criminal investigations or make arrests or an attorney 
authorized by law to prosecute or participate in the prosecution 
of criminal offenses. 
    Subd. 7.  [MATCHING PROGRAM.] "Matching program" means a 
computerized comparison of government data to government or 
nongovernment data for use by a public entity for purposes of 
determining the eligibility of individuals for a license, 
privilege, benefit program, or employment.  Matching program 
does not include a comparison performed: 
    (1) by a public entity if all data used in the comparison 
are government data of one responsible authority within the 
public entity, other than personnel or payroll data; 
    (2) by a law enforcement agency after initiation of a law 
enforcement investigation for gathering evidence for a law 
enforcement proceeding against an identified individual; 
    (3) to produce aggregate statistical data without data that 
identify individuals in the final product; or 
    (4) to support a research or statistical project, the 
specific data of which may not be used to make decisions 
concerning the rights, benefits, or privileges of specific 
individuals. 
    Subd. 8.  [PUBLIC ENTITY.] "Public entity" means a state 
agency or statewide system as those terms are defined in section 
13.02. 
    Subd. 9.  [RESPONSIBLE AUTHORITY.] "Responsible authority" 
has the meaning given in section 13.02, subdivision 16. 
    Sec. 2.  [13B.02] [MATCHING AGREEMENTS.] 
    Before participating in a matching program, the responsible 
authority in each public entity that participates in the 
matching program shall enter into a written agreement with the 
other person specifying: 
    (1) the rationale, purpose, and legal authority for 
conducting the program; 
    (2) a description of the data that will be matched, 
including each data element that will be used, the approximate 
number of records that will be matched, and the projected 
starting and completion dates of the matching program; 
    (3) procedures for retention and destruction of data 
created by the matching program consistent with section 138.17; 
    (4) procedures for ensuring the security of the data; 
    (5) prohibitions on duplication and redisclosure of data by 
the person who receives the data, unless authorized by the 
public entity that releases the data; 
    (6) procedures governing the use of the data provided by 
the public entity for the matching program, including procedures 
governing return to the public entity or destruction of the data 
consistent with section 138.17; and 
    (7) information on assessments that have been made on the 
accuracy of the data that will be used in the matching program. 
    Sec. 3.  [13B.03] [FRONT END VERIFICATION AND MATCHING 
PROGRAMS; RIGHTS OF SUBJECTS.] 
    A public entity may not suspend, terminate, reduce, or make 
a final denial of employment or a license or other privilege or 
of assistance under a benefit program, or take other adverse 
action against an individual as a result of data produced by a 
matching program or front end verification, until the entity has 
independently verified the data.  If independent verification 
shows that the data are correct, the entity shall give the 
individual written notice of its findings and an opportunity to 
contest the findings.  The requirements of this section may be 
satisfied by verification, notice, hearing, and appeal rights 
governing the particular benefit program or employment or 
licensing procedure from which data were obtained to be used in 
the matching program. 
    Sec. 4.  [13B.04] [REPORT.] 
    A responsible authority that participates in a matching 
program shall prepare a report describing matching programs in 
which the responsible authority has participated during the 
previous calendar year.  The report must be included in a state 
agency's description of its information systems prepared under 
section 3.3026, subdivision 3. 
     Sec. 5.  Minnesota Statutes 1988, section 90.301, 
subdivision 6, is amended to read: 
    Subd. 6.  [TICKET FOR THEFT VIOLATIONS.] The commissioner 
may design and issue a ticket in the form, and having the 
effect, of a summons and complaint, for use in cases of theft of 
state timber or other state property, where the value of the 
property is within the limits established by section 609.52, 
subdivision 3, clause (7) (5).  The ticket shall provide for the 
name and address of the person charged with the violation, the 
offense charged, the time and place the person is to appear 
before a court, and any other necessary information.  
    Sec. 6.  Minnesota Statutes 1988, section 256.98, 
subdivision 1, is amended to read: 
    Subdivision 1.  [WRONGFULLY OBTAINING ASSISTANCE.] A person 
who obtains, or attempts to obtain, or aids or abets any person 
to obtain by means of a willfully false statement or 
representation, by intentional concealment of a material fact, 
or by impersonation or other fraudulent device, assistance to 
which the person is not entitled or assistance greater than that 
to which the person is entitled, or who knowingly aids or abets 
in buying or in any way disposing of the property of a recipient 
or applicant of assistance without the consent of the local 
agency with intent to defeat the purposes of sections 256.12, 
256.72 to 256.871, and chapter 256B, or all of these sections is 
guilty of theft and shall be sentenced pursuant to section 
609.52, subdivision 3, clauses (2), (3), (6), and (7) (3)(a) and 
(c), (4), and (5). 
    Sec. 7.  Minnesota Statutes 1988, section 256B.35, 
subdivision 5, is amended to read: 
    Subd. 5.  The nursing home may transfer the personal 
allowance to someone other than the recipient only when the 
recipient or the recipient's guardian or conservator designates 
that person in writing to receive or expend funds on behalf of 
the recipient and that person certifies in writing that the 
allowance is spent for the well-being of the recipient.  
Persons, other than the recipient, in possession of the personal 
allowance, may use the allowance only for the well-being of the 
recipient.  Any person, other than the recipient, who, with 
intent to defraud, uses the personal needs allowance for 
purposes other than the well-being of the recipient shall be 
guilty of theft and shall be sentenced pursuant to section 
609.52, subdivision 3, clauses (2), (3), and (7) (3)(a) and (c), 
(4), and (5).  To prosecute under this subdivision, the attorney 
general or the appropriate county attorney, acting independently 
or at the direction of the attorney general, may institute a 
criminal action.  A nursing home that transfers personal needs 
allowance funds to a person other than the recipient in good 
faith and in compliance with this section shall not be held 
liable under this subdivision.  
    Sec. 8.  Minnesota Statutes 1988, section 268.18, 
subdivision 3, is amended to read: 
    Subd. 3.  [FALSE REPRESENTATIONS; CONCEALMENT OF FACTS; 
PENALTY.] (a) Whoever obtains, or attempts to obtain, or aids or 
abets any person to obtain by means of a willfully false 
statement or representation, by intentional concealment of a 
material fact, or by impersonation or other fraudulent device, 
benefits to which the person is not entitled or benefits greater 
than that to which the person is entitled under this chapter, or 
under the employment security law of any state or of the federal 
government or of a foreign government, either personally or for 
any other person, shall be guilty of theft and shall be 
sentenced pursuant to section 609.52, subdivision 3, clauses 
(2), (3), (6), and (7) (3)(a) and (c), (4), and (5).  The amount 
of the benefits incorrectly paid shall be the difference between 
the amount of benefits actually received and the amount which 
the person would have been entitled under state and federal law 
had the department been informed of all material facts. 
    (b) Any employing unit or any officer or agent of an 
employing unit or any other person who makes a false statement 
or representation knowing it to be false, or who knowingly fails 
to disclose a material fact, to prevent or reduce the payment of 
benefits to any individual entitled thereto, or to avoid 
becoming or remaining a subject employer or to avoid or reduce 
any contribution or other payment required from an employing 
unit under this chapter or under the employment security law of 
any state or of the federal government, or who willfully fails 
or refuses to make any such contributions or other payment at 
the time required shall be guilty of a gross misdemeanor unless 
the benefit underpayment, contribution, or other payment 
involved exceeds $250, in which event the person is guilty of a 
felony.  
    (c) Any person who willfully fails to produce or permit the 
inspection or copying of books, papers, records, or memoranda as 
required or when requested under section 268.12, subdivision 8, 
or to furnish any required reports other than contribution 
reports shall be guilty of a gross misdemeanor. 
     Sec. 9.  [REPEALER.] 
    Section 2 is repealed effective July 31, 1992. 
    Presented to the governor April 26, 1990 
    Signed by the governor May 3, 1990, 5:32 p.m.