1.1                          A bill for an act 
  1.2             relating to legislature; prescribing the powers and 
  1.3             duties of the legislative audit commission and the 
  1.4             legislative auditor; making various technical changes; 
  1.5             amending Minnesota Statutes 1998, sections 3.97; 
  1.6             3.971; 3.974; 3.975; 6.74; 10.48; 13.46, subdivision 
  1.7             8; 16A.27, subdivision 2; 37.06; 37.07; 85A.02, 
  1.8             subdivision 5c; 89.05; 161.08; 192.551; 352.03, 
  1.9             subdivision 6; 353.03, subdivision 3a; 353A.05, 
  1.10            subdivision 1; 354.06, subdivision 2a; 360.015, 
  1.11            subdivision 19; 574.20; and 609.456; Laws 1990, 
  1.12            chapter 535, section 5; repealing Minnesota Statutes 
  1.13            1998, sections 3.973; 116.072, subdivision 12; 
  1.14            469.207, subdivision 1; and 574.02. 
  1.15  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.16     Section 1.  Minnesota Statutes 1998, section 3.97, is 
  1.17  amended to read: 
  1.18     3.97 [AUDIT POLICY; CREATION OF COMMISSION; TRANSFER OF 
  1.19  FUNCTIONS OF PUBLIC EXAMINER; DUTIES OF LEGISLATIVE AUDITOR; 
  1.20  ACCESS TO DATA.] 
  1.21     Subdivision 1.  Continuous legislative review of the ~~effect~~ 
  1.22  ~~of grant-in-aid programs, the~~ spending of public funds and ~~their~~ 
  1.23  financing at all levels of government is required in the public 
  1.24  interest to enable the enactment of appropriate legislation.  
  1.25     Subd. 2.  The legislative audit commission ~~is created.  The~~ 
  1.26  ~~commission~~ consists of: 
  1.27     (1) the majority leader of the senate and the president of 
  1.28  the senate or their designees; 
  1.29     (2) ~~the chair of the senate committee on taxes or a~~ 
  1.30  ~~designee who is a member of the committee;~~ two members of the 
  2.1   senate, appointed by the committee on committees; 
  2.2      ~~(3) the chair of the senate committee on governmental~~ 
  2.3   ~~operations and reform or a designee who is a member of the~~ 
  2.4   ~~committee;~~ 
  2.5      ~~(4) the chair of the senate committee on finance or a~~ 
  2.6   ~~designee who is a member of the committee;~~ 
  2.7      ~~(5)~~ (3) ~~five~~ four members of the senate appointed by the 
  2.8   senate minority leader; 
  2.9      ~~(6)~~ (4) the speaker of the house and the chair of the house 
  2.10  committee on rules or their designees; 
  2.11     ~~(7) the chair of the house committee on taxes or a designee~~ 
  2.12  ~~who is a member of the committee;~~ (5) two members of the house, 
  2.13  appointed by the speaker; 
  2.14     ~~(8) the chair of the house committee on governmental~~ 
  2.15  ~~operations and gaming or a designee who is a member of the~~ 
  2.16  ~~committee;~~ 
  2.17     ~~(9) the chair of the house ways and means committee or a~~ 
  2.18  ~~designee who is a member of the committee; and~~ 
  2.19     ~~(10)~~ (6) ~~five~~ four members of the house appointed by the 
  2.20  house minority leader.  
  2.21  The appointed members of the commission shall serve for a term 
  2.22  commencing upon appointment and expiring at the opening of the 
  2.23  next regular session of the legislature in the odd-numbered year 
  2.24  and until a successor is appointed.  A vacancy in the membership 
  2.25  of the commission shall be filled for the unexpired term in a 
  2.26  manner that will preserve the representation established by this 
  2.27  subdivision.  
  2.28     The commission shall meet in January of each odd-numbered 
  2.29  year to elect its chair and other officers as it may determine 
  2.30  necessary.  A chair shall serve a two-year term, expiring on 
  2.31  January 1 in the odd-numbered year following election, and until 
  2.32  a successor is elected.  The chair shall alternate biennially 
  2.33  between the senate and the house.  The commission shall meet at 
  2.34  the call of the chair or the executive secretary.  The members 
  2.35  shall serve without compensation but be reimbursed for their 
  2.36  reasonable expenses as members of the legislature.  The 
  3.1   commission may exercise the powers prescribed by section 3.153. 
  3.2      Subd. 3.  The department of public examiner is transferred 
  3.3   from the executive to the legislative branch.  
  3.4      Subd. 4.  The legislative auditor is the executive 
  3.5   secretary of the commission.  The legislative auditor shall be 
  3.6   appointed by the commission for a six-year term and serve in the 
  3.7   unclassified service.  When in office, the legislative auditor 
  3.8   ~~shall~~ may not at any time ~~while in office~~ hold any other public 
  3.9   office.  The legislative auditor ~~shall~~ may not be removed from 
  3.10  office before the expiration of the term of service except for 
  3.11  cause after public hearing.  
  3.12     Subd. 5.  The legislative auditor shall establish a 
  3.13  financial audits division and a program evaluation division to 
  3.14  fulfill the duties prescribed in this section.  Each division 
  3.15  ~~shall~~ must be supervised by a deputy auditor, appointed by the 
  3.16  legislative auditor, with the approval of the commission, for a 
  3.17  term coterminous with the legislative auditor's term.  The 
  3.18  deputy auditors may be removed before the expiration of their 
  3.19  terms only for cause.  The legislative auditor and deputy 
  3.20  auditors may each appoint a confidential secretary to serve at 
  3.21  pleasure.  The ~~commission shall fix the~~ salaries and benefits of 
  3.22  the legislative auditor, deputy auditors and confidential 
  3.23  secretaries shall be determined by the compensation plan 
  3.24  approved by the legislative coordinating commission.  The deputy 
  3.25  auditors may perform and exercise the powers, duties and 
  3.26  responsibilities imposed by law on the legislative auditor when 
  3.27  authorized by the legislative auditor.  The deputy auditors and 
  3.28  the confidential secretaries serve in the unclassified civil 
  3.29  service, but all other employees of the legislative auditor are 
  3.30  in the classified civil service.  While in office, a person 
  3.31  appointed deputy for the financial audit division must hold an 
  3.32  active license as a certified public accountant. 
  3.33     Subd. 6.  All the powers, duties, and responsibilities of 
  3.34  the department of public examiner relating to the state of 
  3.35  Minnesota, its departments and agencies as described in 
  3.36  Minnesota Statutes 1971, section 215.03, and any other law 
  4.1   concerning powers, duties, and responsibilities of the public 
  4.2   examiner not otherwise dealt with by Laws 1973, chapter 492, are 
  4.3   transferred to the legislative auditor.  Nothing in this 
  4.4   subdivision shall supersede the powers conferred upon the 
  4.5   commissioner of finance under section 16A.055.  
  4.6      Subd. 7.  In addition to the legislative auditing duties 
  4.7   concerning state financial matters, the legislative auditor 
  4.8   shall also exercise and perform duties prescribed by rule of the 
  4.9   legislature or either body of it or by the commission.  ~~The~~ 
  4.10  ~~legislative auditor shall review department policies and~~ 
  4.11  ~~evaluate projects or programs requested by the commission.  Any~~ 
  4.12  ~~standing legislative committee having legislative jurisdiction~~ 
  4.13  ~~may request the commission to review projects or programs.~~  
  4.14     Subd. 8.  The legislature may, by rule, provide to the 
  4.15  legislative auditor the testimonial powers that are conferred by 
  4.16  law on legislative standing commissions or committees. 
  4.17     Subd. 9.  The legislative auditor is subject to the 
  4.18  Government Data Practices Act, chapter 13, and shall protect 
  4.19  from unlawful disclosure data classified as not public.  If data 
  4.20  provided by the legislative auditor to the commission is 
  4.21  disseminated by the commission or its members or agents in 
  4.22  violation of section 13.05, subdivision 4, the commission is 
  4.23  subject to liability under section 13.08, subdivisions 1 and 3.  
  4.24     Subd. 10.  Members of the commission have access to data 
  4.25  that is collected or used by the legislative auditor and 
  4.26  classified as not public or as private or confidential only as 
  4.27  authorized by resolution of the commission.  The commission 
  4.28  ~~shall~~ may not authorize its members to have access to private or 
  4.29  confidential data on individuals collected or used in connection 
  4.30  with the collection of any tax.  
  4.31     Subd. 11.  (a) "Audit" as used in this subdivision means a 
  4.32  financial audit, ~~a~~ review, program evaluation, ~~a~~ best practices 
  4.33  review, or ~~an~~ investigation.  Data relating to an audit are not 
  4.34  public or with respect to data on individuals are confidential 
  4.35  until the final report of the audit has been ~~published~~ released 
  4.36  by the legislative auditor or the audit is no longer being 
  5.1   actively pursued.  Upon release of a final audit report by the 
  5.2   legislative auditor, data relating to an audit are public except 
  5.3   data otherwise classified as not public.  
  5.4      (b) Data ~~that support the conclusions of the~~ related to an 
  5.5   audit but not published in the audit report and that the 
  5.6   legislative auditor reasonably believes will ~~result~~ be used in 
  5.7   litigation are not public and with respect to data on 
  5.8   individuals are confidential until the litigation has been 
  5.9   completed or is no longer being actively pursued.  
  5.10     (c) Data on individuals that could reasonably be used to 
  5.11  determine the identity of an individual supplying data for an 
  5.12  audit are private if the data supplied by the individual were 
  5.13  needed for an audit and the individual would not have provided 
  5.14  the data to the legislative auditor without an assurance that 
  5.15  the individual's identity would remain private, or the 
  5.16  legislative auditor reasonably believes that the subject would 
  5.17  not have provided the data.  
  5.18     (d) The definitions of terms provided in section 13.02 
  5.19  apply for purposes of this subdivision.  
  5.20     Subd. 11a.  If, before releasing a report, the legislative 
  5.21  auditor provides a person with data relating to the audit for 
  5.22  the purpose of review and verification of the data, the person 
  5.23  must protect the data from unlawful disclosure or be subject to 
  5.24  the penalties and liabilities provided in sections 13.08 and 
  5.25  13.09. 
  5.26     Subd. 12.  The commission shall periodically select topics 
  5.27  for the legislative auditor to evaluate.  Topics may include any 
  5.28  agency, program, or activity established by law to achieve a 
  5.29  state purpose, or any topic that affects the operation of state 
  5.30  government, but the commission shall give primary consideration 
  5.31  to topics that are likely, upon examination, to produce 
  5.32  recommendations for cost savings, increased productivity, or the 
  5.33  elimination of duplication among public agencies.  Legislators 
  5.34  and legislative committees may suggest topics for evaluation, 
  5.35  but the legislative auditor shall only conduct evaluations 
  5.36  approved by the commission. 
  6.1      Sec. 2.  Minnesota Statutes 1998, section 3.971, is amended 
  6.2   to read: 
  6.3      3.971 [POWERS AND DUTIES OF LEGISLATIVE AUDITOR.] 
  6.4      Subdivision 1.  ~~To perform financial audits~~ The legislative 
  6.5   auditor shall ~~postaudit and make a complete examination and~~ 
  6.6   ~~verification of all accounts, records, inventories, vouchers,~~ 
  6.7   ~~receipts, funds, securities, and other assets of~~ audit the 
  6.8   financial statements of the state of Minnesota required by 
  6.9   section 16A.50 and, as resources permit, shall audit Minnesota 
  6.10  state colleges and universities, the University of 
  6.11  Minnesota, ~~all~~ state agencies, departments, boards, commissions, 
  6.12  courts, and other state ~~agencies at least once a year, if money~~ 
  6.13  ~~and personnel permit, and oftener if deemed necessary or as~~ 
  6.14  ~~directed by the legislature or the legislative audit~~ 
  6.15  ~~commission.  Audits may include detailed checking of every~~ 
  6.16  ~~transaction or test checking as the legislative auditor deems~~ 
  6.17  ~~best.  The books of the state treasurer and commissioner of~~ 
  6.18  ~~finance may be examined monthly.~~ organizations subject to audit 
  6.19  by the legislative auditor, including the state agricultural 
  6.20  society, agricultural utilization research institute, Minnesota 
  6.21  Technology, Inc., Minnesota historical society, labor 
  6.22  interpretive center, Minnesota partnership for action against 
  6.23  tobacco, metropolitan sports facilities commission, metropolitan 
  6.24  airports commission, and metropolitan mosquito control 
  6.25  district.  Financial audits must be conducted according to 
  6.26  generally accepted government auditing standards.  The 
  6.27  legislative auditor shall see that all provisions of law 
  6.28  respecting the appropriate and economic use of public funds are 
  6.29  complied with ~~by all~~ and may, as part of a financial audit or 
  6.30  separately, investigate allegations of noncompliance by 
  6.31  employees of departments and agencies of the state 
  6.32  government and the other organizations listed in this 
  6.33  subdivision.  
  6.34     ~~A copy of all postaudits, reports, and results of~~ 
  6.35  ~~examinations made by the legislative auditor shall be deposited~~ 
  6.36  ~~with the legislative reference library.~~  
  7.1      Subd. 2.  ~~To perform program evaluation,~~ The legislative 
  7.2   auditor shall conduct program evaluations to determine the 
  7.3   degree to which the activities and programs entered into or 
  7.4   funded by the state are accomplishing their goals and 
  7.5   objectives, including a critical analysis of goals and 
  7.6   objectives, measurement of program results and effectiveness, 
  7.7   alternative means of achieving the same results, and efficiency 
  7.8   in the allocation of resources.  The legislative auditor shall 
  7.9   recommend ways to improve the effectiveness of the programs, 
  7.10  reduce the cost of providing state services, and ~~to~~ eliminate 
  7.11  services of one agency that overlap with or duplicate the 
  7.12  services performed by another agency.  At the direction of the 
  7.13  commission the legislative auditor may ~~perform~~ conduct program 
  7.14  evaluations of any state department, board, commission, or 
  7.15  agency and any metropolitan agency, board, or commission created 
  7.16  under chapter 473; or any program or activity established or 
  7.17  funded, in whole or in part, by the state.  After an evaluation 
  7.18  report has been released, the legislative auditor may 
  7.19  periodically conduct a follow-up review to assess what changes 
  7.20  have occurred. 
  7.21     Subd. 4.  (a) ~~To perform best practices reviews,~~ The 
  7.22  legislative auditor ~~through the program evaluation division~~ 
  7.23  shall conduct best practices reviews that examine the procedures 
  7.24  and practices used to deliver local government 
  7.25  services, ~~including those of municipalities and counties,~~ 
  7.26  determine the methods of local government service delivery, 
  7.27  identify variations in cost and effectiveness, and identify 
  7.28  practices to save money or provide more effective service 
  7.29  delivery.  The legislative auditor shall recommend to local 
  7.30  governments service delivery methods and practices to improve 
  7.31  the cost-effectiveness of services.  The legislative auditor and 
  7.32  the board of government innovation and cooperation shall notify 
  7.33  each other of projects being conducted relating to improving 
  7.34  local government services. 
  7.35     (b) The commission shall ~~identify~~ approve local government 
  7.36  services to be reviewed with advice from an advisory council 
  8.1   appointed by the legislative auditor and consisting of: 
  8.2      (1) three representatives from the Association of Minnesota 
  8.3   Counties; 
  8.4      (2) three representatives from the League of Minnesota 
  8.5   Cities; 
  8.6      (3) two representatives from the Association of 
  8.7   Metropolitan Municipalities; 
  8.8      (4) one representative from the Minnesota Association of 
  8.9   Townships; and 
  8.10     (5) one representative from the Minnesota Association of 
  8.11  School Administrators.  
  8.12     ~~(c) This subdivision expires June 30, 1999.~~ 
  8.13     Sec. 3.  Minnesota Statutes 1998, section 3.974, is amended 
  8.14  to read: 
  8.15     3.974 [TO FILE WRITTEN REPORTS.] 
  8.16     For each audit ~~done~~, evaluation, or other review completed, 
  8.17  the legislative auditor shall ~~file~~ provide a written report ~~with~~ 
  8.18  to the ~~department, agency, society, or association~~ 
  8.19  ~~concerned,~~ organization or individual audited, evaluated, or 
  8.20  reviewed; the legislative reference library; and the legislative 
  8.21  audit commission ~~for its consideration and action~~.  
  8.22     ~~Each audit report shall set forth:~~ 
  8.23     ~~(1) whether all funds have been expended for the purposes~~ 
  8.24  ~~authorized in their appropriation;~~ 
  8.25     ~~(2) whether all receipts have been accounted for and paid~~ 
  8.26  ~~into the state treasury as required by law;~~ 
  8.27     ~~(3) all illegal and unbusinesslike practices, if any;~~ 
  8.28     ~~(4) an assessment of the financial control practices used~~ 
  8.29  ~~in the agency, a measurement of performance, and recommendations~~ 
  8.30  ~~for improved effectiveness; and~~ 
  8.31     ~~(5) other data, information, and recommendations as the~~ 
  8.32  ~~legislative auditor may deem advisable and necessary.~~  
  8.33     Sec. 4.  Minnesota Statutes 1998, section 3.975, is amended 
  8.34  to read: 
  8.35     3.975 [DUTIES WHEN ~~VIOLATIONS~~ MISUSE OF PUBLIC MONEY OR 
  8.36  OTHER RESOURCES ARE DISCOVERED.] 
  9.1      If a legislative auditor's examination discloses 
  9.2   ~~malfeasance, misfeasance, or nonfeasance in office on the part~~ 
  9.3   ~~of an officer or employee, a copy of the report shall be signed~~ 
  9.4   ~~and verified, and it shall be the duty of~~ misuse of public money 
  9.5   or other public resources, the legislative auditor ~~to~~ shall file 
  9.6   ~~the~~ a report with the legislative audit commission ~~and~~, the 
  9.7   attorney general, and the appropriate county attorney.  ~~It shall~~ 
  9.8   ~~be the duty of~~ The attorney general ~~to institute and prosecute~~ 
  9.9   ~~civil proceedings against the delinquent officer or employee, or~~ 
  9.10  ~~upon the officer's or employee's official bond, or both, as~~ 
  9.11  ~~appropriate to secure to the state the~~ shall seek recovery of 
  9.12  ~~funds or~~ money and other ~~assets misappropriated~~ resources as the 
  9.13  evidence may warrant.  The ~~attorney general~~ county attorney 
  9.14  shall cause criminal proceedings to be instituted ~~by the proper~~ 
  9.15  ~~authorities~~ as the evidence may warrant.  
  9.16     Sec. 5.  Minnesota Statutes 1998, section 6.74, is amended 
  9.17  to read: 
  9.18     6.74 [INFORMATION COLLECTED FROM LOCAL GOVERNMENTS.] 
  9.19     The state auditor, or a designated agent, shall collect 
  9.20  annually from all city, county, and other local units of 
  9.21  government, information as to the assessment of property, 
  9.22  collection of taxes, receipts from licenses and other sources, 
  9.23  the expenditure of public funds for all purposes, borrowing, 
  9.24  debts, principal and interest payments on debts, and such other 
  9.25  information as may be needful.  The data shall be supplied upon 
  9.26  blanks prescribed by the state auditor, and all public officials 
  9.27  so called upon shall fill out properly and return promptly all 
  9.28  blanks so transmitted.  The state auditor or assistants, may 
  9.29  examine local records in order to complete or verify the 
  9.30  information.  ~~Copies of all reports so received shall be~~ 
  9.31  ~~forwarded by the state auditor to the legislative auditor.~~  
  9.32     Sec. 6.  Minnesota Statutes 1998, section 10.48, is amended 
  9.33  to read: 
  9.34     10.48 [EXPENSE REPORTS.] 
  9.35     The house of representatives and senate shall by rule 
  9.36  require detailed quarterly reports of expenditures by the house 
 10.1   of representatives and senate to their respective committees on 
 10.2   rules and legislative administration.  ~~Each constitutional~~ 
 10.3   ~~officer, the district courts, court of appeals, and supreme~~ 
 10.4   ~~court shall submit detailed quarterly reports of their~~ 
 10.5   ~~expenditures to the legislative auditor.~~  These reports are 
 10.6   public information. 
 10.7      Sec. 7.  Minnesota Statutes 1998, section 13.46, 
 10.8   subdivision 8, is amended to read: 
 10.9      Subd. 8.  [ACCESS FOR AUDITING.] To the extent required by 
 10.10  state or federal law, representatives of federal, state, or 
 10.11  local agencies shall have access to data maintained by public or 
 10.12  private community mental health centers, mental health divisions 
 10.13  of counties, and other providers under contract to deliver 
 10.14  mental health services which is necessary to achieve the purpose 
 10.15  of auditing.  Public or private community mental health centers, 
 10.16  mental health divisions of counties, and other providers under 
 10.17  contract to deliver mental health services shall not permit this 
 10.18  data to identify any particular patient or client by name or 
 10.19  contain any other unique personal identifier~~, except data~~ 
 10.20  ~~provided to the legislative auditor.  Notwithstanding any~~ 
 10.21  ~~statute or rule to the contrary, and solely for the purposes of~~ 
 10.22  ~~conducting an audit approved by the legislative audit commission~~ 
 10.23  ~~in 1988, the legislative auditor shall be given access to all~~ 
 10.24  ~~data, records, and files classified as not public.  The~~ 
 10.25  ~~legislative auditor shall maintain all data collected under this~~ 
 10.26  ~~subdivision in accordance with chapter 13 and may not disclose~~ 
 10.27  ~~data that identify a patient or client by name or that contain~~ 
 10.28  ~~any other personal identifier~~. 
 10.29     Sec. 8.  Minnesota Statutes 1998, section 16A.27, 
 10.30  subdivision 2, is amended to read: 
 10.31     Subd. 2.  [DAILY REPORT.] By 9:00 a.m. every business day, 
 10.32  a depository holding a total of over $100,000 in 
 10.33  non-interest-bearing state deposits shall report the balances as 
 10.34  of the close of the last business day to the treasurer and the 
 10.35  commissioner.  The commissioner shall record the balances~~,~~ and 
 10.36  send a copy of them to the legislative reference library~~, and~~ 
 11.1   ~~report them monthly to the legislative audit commission~~.  
 11.2      Sec. 9.  Minnesota Statutes 1998, section 37.06, is amended 
 11.3   to read: 
 11.4      37.06 [SECRETARY; LEGISLATIVE AUDITOR; DUTIES; REPORT.] 
 11.5      The secretary shall keep a complete record of the 
 11.6   proceedings of the annual meetings of the state agricultural 
 11.7   society and all meetings of the board of managers and any 
 11.8   committee of the board, keep all accounts of the society other 
 11.9   than those kept by the treasurer of the society, and perform 
 11.10  other duties as directed by the board of managers.  On or before 
 11.11  December 31 each year, the secretary shall report to the 
 11.12  governor for the fiscal year ending October 31 all the 
 11.13  proceedings of the society during the current year and its 
 11.14  financial condition as appears from its books.  This report must 
 11.15  contain a full, detailed statement of all receipts and 
 11.16  expenditures during the year.  
 11.17     The books and accounts of the society for the fiscal year 
 11.18  must be examined and audited annually by the legislative 
 11.19  auditor.  The cost of the examination must be paid by the 
 11.20  society to the state and credited to the ~~legislative auditor's~~ 
 11.21  ~~revolving~~ general fund.  
 11.22     A summary of this examination, certified by the legislative 
 11.23  auditor, must be appended to the secretary's report, along with 
 11.24  the legislative auditor's recommendations and the proceedings of 
 11.25  the first annual meeting of the society held following the 
 11.26  secretary's report, including addresses made at the meeting as 
 11.27  directed by the board of managers.  The summary, 
 11.28  recommendations, and proceedings must be printed in the same 
 11.29  manner as the reports of state officers.  Copies of the report 
 11.30  must be printed annually and distributed as follows:  to each 
 11.31  society or association entitled to membership in the society, to 
 11.32  each newspaper in the state, and the remaining copies as 
 11.33  directed by the board of managers. 
 11.34     Sec. 10.  Minnesota Statutes 1998, section 37.07, is 
 11.35  amended to read: 
 11.36     37.07 [MONTHLY STATEMENTS BY SECRETARY; PURCHASES, 
 12.1   EXPENDITURES.] 
 12.2      The secretary of the state agricultural society shall 
 12.3   prepare a signed statement each month summarizing receipts and 
 12.4   expenditures for the preceding month, which must be approved by 
 12.5   the president or a vice-president of the board of managers.  The 
 12.6   secretary's affidavit must be attached to this statement.  The 
 12.7   affidavit must state:  
 12.8      (1) that all articles were purchased by or under the 
 12.9   secretary's direction, and that to the secretary's best 
 12.10  information and belief, all articles purchased by the board of 
 12.11  managers were purchased at a fair cash market value and received 
 12.12  by the society, and that all services charged for were actually 
 12.13  provided; 
 12.14     (2) that neither the secretary nor any person in the 
 12.15  secretary's behalf, or the board of managers, to the secretary's 
 12.16  best information and belief, had any pecuniary or other interest 
 12.17  in any purchase made or services rendered, or received any 
 12.18  pecuniary or other benefit from the purchases or services, 
 12.19  directly or indirectly, by commission, percentage, deduction, or 
 12.20  otherwise; and 
 12.21     (3) that the articles specified conformed in every respect 
 12.22  to the goods ordered, in both quality and quantity.  
 12.23     The report must also show the amount of money in the hands 
 12.24  of the treasurer of the society.  
 12.25     Copies of the secretary's monthly report must be furnished 
 12.26  to the commissioner of finance ~~and the office of the legislative~~ 
 12.27  ~~auditor~~ and to each member of the board of managers no later 
 12.28  than the tenth of the month following the month's activities 
 12.29  reported.  
 12.30     The board of managers shall designate one or more national 
 12.31  or state banks, or trust companies authorized to do a banking 
 12.32  business, as official depositories for the society's money, and 
 12.33  shall then require the treasurer to deposit all or part of that 
 12.34  money in the designated bank or banks.  The designation must be 
 12.35  in writing and must set forth all the terms and conditions upon 
 12.36  which the deposits are made, and it must be signed by the 
 13.1   president and secretary and made a part of the minutes of the 
 13.2   board.  Any bank or trust company designated must qualify as a 
 13.3   depository by furnishing a corporate surety bond or collateral 
 13.4   as required by section 118A.03, and must, as long as any of the 
 13.5   society's money is on deposit with it, maintain the bond or 
 13.6   collateral in the amounts required by that section.  No bond or 
 13.7   collateral is required to secure any deposit if it is insured 
 13.8   under federal law, as provided in section 118A.03.  
 13.9      Sec. 11.  Minnesota Statutes 1998, section 85A.02, 
 13.10  subdivision 5c, is amended to read: 
 13.11     Subd. 5c.  [FINANCIAL REPORT.] The board shall employ a 
 13.12  certified public accountant to audit and examine its financial 
 13.13  records each year.  The board shall submit to the legislative 
 13.14  auditor a report of the accountant's examination or audit.  The 
 13.15  legislative auditor shall review the report and ~~accept it or~~ may 
 13.16  make additional examinations if these would be in the public 
 13.17  interest.  The working papers of the certified public accountant 
 13.18  relating to the board must be made available to the legislative 
 13.19  auditor on request.  
 13.20     Sec. 12.  Minnesota Statutes 1998, section 89.05, is 
 13.21  amended to read: 
 13.22     89.05 [ACCOUNTING SYSTEM.] 
 13.23     The department of natural resources shall consolidate and 
 13.24  simplify the accounting system within the department for 
 13.25  receipts from department managed lands, disbursements made on a 
 13.26  regular basis, and the program for federal aids and grant 
 13.27  reimbursements.  The new accounting system shall be implemented 
 13.28  with the cooperation and under the supervision of the department 
 13.29  of finance~~, utilizing the assistance and recommendations of the~~ 
 13.30  ~~office of the legislative auditor~~. 
 13.31     Sec. 13.  Minnesota Statutes 1998, section 161.08, is 
 13.32  amended to read: 
 13.33     161.08 [BOOKS OF ACCOUNT.] 
 13.34     The commissioner shall keep accurate and complete books of 
 13.35  account ~~of such character~~ as may be prescribed by the 
 13.36  ~~legislative auditor~~ commissioner of finance, the same to show in 
 14.1   detail itemized receipts and disbursements of the trunk highway 
 14.2   fund.  The books of account shall show the following facts, 
 14.3   among others: 
 14.4      (1) The expenses of maintaining the transportation 
 14.5   department, including the salaries and expenses of the 
 14.6   individual members thereof; 
 14.7      (2) The amounts of money expended in each county of the 
 14.8   state for the construction of trunk highways, and when, where, 
 14.9   and upon what job or portion of road expended so that the cost 
 14.10  per mile of such construction can be easily ascertained; 
 14.11     (3) Any other money expended by the state in connection 
 14.12  with any roads other than trunk highways and when, where, and 
 14.13  upon what portion of road so expended; and 
 14.14     (4) The amount of road equipment and materials purchased, 
 14.15  and when, where, and from whom purchased, and the price paid for 
 14.16  each item.  The original invoices shall form a part of the 
 14.17  permanent files and records in the department of transportation 
 14.18  and be open to public inspection. 
 14.19     Sec. 14.  Minnesota Statutes 1998, section 192.551, is 
 14.20  amended to read: 
 14.21     192.551 [ARMY REGULATIONS TO APPLY.] 
 14.22     All money and property received from any source for the 
 14.23  military forces ~~shall~~ must be kept, disbursed, and accounted for 
 14.24  as prescribed by army regulations, where applicable, otherwise 
 14.25  as prescribed by state rules.  All such accounts ~~shall~~ must be 
 14.26  examined and audited at least once annually by officers of the 
 14.27  military forces detailed by the adjutant general as military 
 14.28  auditors.  The legislative auditor may ~~appoint any military~~ 
 14.29  ~~auditor as an assistant examiner, with all the powers incident~~ 
 14.30  ~~thereto, in connection with the examination of such accounts.~~  
 14.31  ~~The provisions of the state Civil Service Act shall not be~~ 
 14.32  ~~applicable to such appointments~~ also audit those activities of 
 14.33  the accounts that are subject to state law or rule. 
 14.34     Sec. 15.  Minnesota Statutes 1998, section 352.03, 
 14.35  subdivision 6, is amended to read: 
 14.36     Subd. 6.  [DUTIES AND POWERS OF EXECUTIVE DIRECTOR.] The 
 15.1   management of the system is vested in the director, who is the 
 15.2   executive and administrative head of the system.  The director 
 15.3   shall be advisor to the board on matters pertaining to the 
 15.4   system and shall also act as the secretary of the board.  The 
 15.5   director shall: 
 15.6      (1) attend meetings of the board; 
 15.7      (2) prepare and recommend to the board appropriate rules to 
 15.8   carry out this chapter; 
 15.9      (3) establish and maintain an adequate system of records 
 15.10  and accounts following recognized accounting principles and 
 15.11  controls; 
 15.12     (4) designate an assistant director with the approval of 
 15.13  the board; 
 15.14     (5) appoint any employees, both permanent and temporary, 
 15.15  that are necessary to carry out the provisions of this chapter; 
 15.16     (6) organize the work of the system as the director deems 
 15.17  necessary to fulfill the functions of the system, and define the 
 15.18  duties of its employees and delegate to them any powers or 
 15.19  duties, subject to the control of the director and under 
 15.20  conditions the director may prescribe.  Appointments to exercise 
 15.21  delegated power must be by written order and shall be filed with 
 15.22  the secretary of state; 
 15.23     (7) with the advice and consent of the board, contract for 
 15.24  the services of an approved actuary, professional management 
 15.25  services, and any other consulting services as necessary and fix 
 15.26  the compensation for those services.  The contracts are not 
 15.27  subject to competitive bidding under chapter 16C.  Any approved 
 15.28  actuary retained by the executive director shall function as the 
 15.29  actuarial advisor of the board and the executive director, and 
 15.30  may perform actuarial valuations and experience studies to 
 15.31  supplement those performed by the actuary retained by the 
 15.32  legislative commission on pensions and retirement.  Any 
 15.33  supplemental actuarial valuations or experience studies shall be 
 15.34  filed with the executive director of the legislative commission 
 15.35  on pensions and retirement.  Professional management services 
 15.36  may not be contracted for more often than once in six years.  
 16.1   Copies of professional management survey reports must be 
 16.2   transmitted to the secretary of the senate, the chief clerk of 
 16.3   the house of representatives, and the legislative reference 
 16.4   library as provided by section 3.195, and to the executive 
 16.5   director of the commission ~~and to the legislative auditor~~ at the 
 16.6   time as reports are furnished to the board.  Only management 
 16.7   firms experienced in conducting management surveys of federal, 
 16.8   state, or local public retirement systems are qualified to 
 16.9   contract with the director; 
 16.10     (8) with the advice and consent of the board provide 
 16.11  in-service training for the employees of the system; 
 16.12     (9) make refunds of accumulated contributions to former 
 16.13  state employees and to the designated beneficiary, surviving 
 16.14  spouse, legal representative, or next of kin of deceased state 
 16.15  employees or deceased former state employees, as provided in 
 16.16  this chapter; 
 16.17     (10) determine the amount of the annuities and disability 
 16.18  benefits of employees covered by the system and authorize 
 16.19  payment of the annuities and benefits beginning as of the dates 
 16.20  on which the annuities and benefits begin to accrue, in 
 16.21  accordance with the provisions of this chapter; 
 16.22     (11) pay annuities, refunds, survivor benefits, salaries, 
 16.23  and necessary operating expenses of the system; 
 16.24     (12) certify funds available for investment to the state 
 16.25  board of investment; 
 16.26     (13) with the advice and approval of the board request the 
 16.27  state board of investment to sell securities when the director 
 16.28  determines that funds are needed for the system; 
 16.29     (14) prepare and submit to the board and the legislature an 
 16.30  annual financial report covering the operation of the system, as 
 16.31  required by section 356.20; 
 16.32     (15) prepare and submit biennial and annual budgets to the 
 16.33  board and with the approval of the board submit the budgets to 
 16.34  the department of finance; and 
 16.35     (16) with the approval of the board, perform other duties 
 16.36  required to administer the retirement and other provisions of 
 17.1   this chapter and to do its business. 
 17.2      Sec. 16.  Minnesota Statutes 1998, section 353.03, 
 17.3   subdivision 3a, is amended to read: 
 17.4      Subd. 3a.  [EXECUTIVE DIRECTOR.] (a)  [APPOINTMENT.] The 
 17.5   board shall appoint, with the advice and consent of the senate, 
 17.6   an executive director on the basis of education, experience in 
 17.7   the retirement field, and leadership ability.  The executive 
 17.8   director shall have had at least five years' experience in an 
 17.9   executive level management position, which has included 
 17.10  responsibility for pensions, deferred compensation, or employee 
 17.11  benefits.  The executive director serves at the pleasure of the 
 17.12  board.  The salary of the executive director is as provided by 
 17.13  section 15A.0815. 
 17.14     (b)  [DUTIES.] The management of the association is vested 
 17.15  in the executive director who shall be the executive and 
 17.16  administrative head of the association.  The executive director 
 17.17  shall act as adviser to the board on all matters pertaining to 
 17.18  the association and shall also act as the secretary of the 
 17.19  board.  The executive director shall: 
 17.20     (1) attend all meetings of the board; 
 17.21     (2) prepare and recommend to the board appropriate rules to 
 17.22  carry out the provisions of this chapter; 
 17.23     (3) establish and maintain an adequate system of records 
 17.24  and accounts following recognized accounting principles and 
 17.25  controls; 
 17.26     (4) designate, with the approval of the board, up to two 
 17.27  persons who shall serve in the unclassified service and whose 
 17.28  salary is set in accordance with section 43A.18, subdivision 3, 
 17.29  appoint a confidential secretary in the unclassified service, 
 17.30  and appoint employees to carry out this chapter, who are subject 
 17.31  to chapters 43A and 179A in the same manner as are executive 
 17.32  branch employees; 
 17.33     (5) organize the work of the association as the director 
 17.34  deems necessary to fulfill the functions of the association, and 
 17.35  define the duties of its employees and delegate to them any 
 17.36  powers or duties, subject to the control of, and under such 
 18.1   conditions as, the executive director may prescribe; 
 18.2      (6) with the approval of the board, contract for the 
 18.3   services of an approved actuary, professional management 
 18.4   services, and any other consulting services as necessary to 
 18.5   fulfill the purposes of this chapter.  All contracts are subject 
 18.6   to chapter 16C.  The commissioner of administration shall not 
 18.7   approve, and the association shall not enter into, any contract 
 18.8   to provide lobbying services or legislative advocacy of any 
 18.9   kind.  Any approved actuary retained by the executive director 
 18.10  shall function as the actuarial advisor of the board and the 
 18.11  executive director and may perform actuarial valuations and 
 18.12  experience studies to supplement those performed by the actuary 
 18.13  retained by the legislative commission on pensions and 
 18.14  retirement.  Any supplemental actuarial valuations or experience 
 18.15  studies shall be filed with the executive director of the 
 18.16  legislative commission on pensions and retirement.  Copies of 
 18.17  professional management survey reports shall be transmitted to 
 18.18  the secretary of the senate, the chief clerk of the house of 
 18.19  representatives, and the legislative reference library as 
 18.20  provided by section 3.195, and to the executive director of the 
 18.21  commission ~~and to the legislative auditor~~ at the same time as 
 18.22  reports are furnished to the board.  Only management firms 
 18.23  experienced in conducting management surveys of federal, state, 
 18.24  or local public retirement systems shall be qualified to 
 18.25  contract with the director hereunder; 
 18.26     (7) with the approval of the board provide in-service 
 18.27  training for the employees of the association; 
 18.28     (8) make refunds of accumulated contributions to former 
 18.29  members and to the designated beneficiary, surviving spouse, 
 18.30  legal representative or next of kin of deceased members or 
 18.31  deceased former members, as provided in this chapter; 
 18.32     (9) determine the amount of the annuities and disability 
 18.33  benefits of members covered by the association and authorize 
 18.34  payment of the annuities and benefits beginning as of the dates 
 18.35  on which the annuities and benefits begin to accrue, in 
 18.36  accordance with the provisions of this chapter; 
 19.1      (10) pay annuities, refunds, survivor benefits, salaries, 
 19.2   and necessary operating expenses of the association; 
 19.3      (11) prepare and submit to the board and the legislature an 
 19.4   annual financial report covering the operation of the 
 19.5   association, as required by section 356.20; 
 19.6      (12) prepare and submit biennial and annual budgets to the 
 19.7   board for its approval and submit the approved budgets to the 
 19.8   department of finance for approval by the commissioner; 
 19.9      (13) reduce all or part of the accrued interest payable 
 19.10  under section 353.27, subdivisions 12, 12a, and 12b, or 353.28, 
 19.11  subdivision 5, upon receipt of proof by the association of an 
 19.12  unreasonable processing delay or other extenuating circumstances 
 19.13  of the employing unit.  The executive director shall prescribe 
 19.14  and submit for approval by the board the conditions under which 
 19.15  such interest may be reduced; and 
 19.16     (14) with the approval of the board, perform such other 
 19.17  duties as may be required for the administration of the 
 19.18  association and the other provisions of this chapter and for the 
 19.19  transaction of its business.  
 19.20     Sec. 17.  Minnesota Statutes 1998, section 353A.05, 
 19.21  subdivision 1, is amended to read: 
 19.22     Subdivision 1.  [COMMISSION ACTIONS.] Upon initiation of 
 19.23  consolidation as provided in section 353A.04, the executive 
 19.24  director of the commission shall direct the actuary retained by 
 19.25  the commission to undertake the preparation of the actuarial 
 19.26  calculations necessary to complete the consolidation.  
 19.27     These actuarial calculations shall include for each active 
 19.28  member, each deferred former member, each retired member, and 
 19.29  each current beneficiary the computation of the present value of 
 19.30  future benefits, the future normal costs, if any, and the 
 19.31  actuarial accrued liability on the basis of the existing relief 
 19.32  association benefit plan and on the basis of the public 
 19.33  employees police and fire fund benefit plan.  These actuarial 
 19.34  calculations shall also include for the total active, deferred, 
 19.35  retired, and benefit recipient membership the sum of the present 
 19.36  value of future benefits, the future normal costs, if any, and 
 20.1   the actuarial accrued liability on the basis of the existing 
 20.2   relief association benefit plan, on the basis of the public 
 20.3   employees police and fire fund benefit plan, and on the basis of 
 20.4   the benefit plan which produced the largest present value of 
 20.5   future benefits for each person.  The actuarial calculations 
 20.6   shall be prepared using the entry age actuarial cost method for 
 20.7   all components of the benefit plan and using the actuarial 
 20.8   assumptions applicable to the fund for the most recent actuarial 
 20.9   valuation prepared under section 356.215, except that the 
 20.10  actuarial calculations on the basis of the existing relief 
 20.11  association benefit plan shall be prepared using an interest 
 20.12  rate actuarial assumption during the postretirement period which 
 20.13  is in the same amount as the interest rate actuarial assumption 
 20.14  applicable to the preretirement period.  The actuarial 
 20.15  calculations shall include the computation of the present value 
 20.16  of the initial postretirement adjustment anticipated by the 
 20.17  executive director of the state board as payable after the 
 20.18  effective date of the consolidation from the Minnesota 
 20.19  postretirement investment fund under section 11A.18.  
 20.20     The chief administrative officer of the relief association 
 20.21  shall, upon request, provide in a timely manner to the executive 
 20.22  director of the commission and to the actuary retained by the 
 20.23  commission the most current available information or documents, 
 20.24  whichever applies, regarding the demographics of the active, 
 20.25  deferred, retired, and benefit recipient membership of the 
 20.26  relief association, the financial condition of the relief 
 20.27  association, and the existing benefit plan of the relief 
 20.28  association.  
 20.29     Upon completion of the actuarial calculations required by 
 20.30  this subdivision, the actuary retained by the commission shall 
 20.31  issue a report in the form of an appropriate summary of the 
 20.32  actuarial calculations and shall provide a copy of that report 
 20.33  to the executive director of the commission, the executive 
 20.34  director of the public employees retirement association, the 
 20.35  chief administrative officer of the relief association, the 
 20.36  chief administrative officer of the municipality in which the 
 21.1   relief association is located, and the state auditor~~, and the~~ 
 21.2   ~~legislative auditor~~. 
 21.3      Sec. 18.  Minnesota Statutes 1998, section 354.06, 
 21.4   subdivision 2a, is amended to read: 
 21.5      Subd. 2a.  [DUTIES OF EXECUTIVE DIRECTOR.] The management 
 21.6   of the association is vested in the executive director who shall 
 21.7   be the executive and administrative head of the association.  
 21.8   The executive director shall act as advisor to the board on all 
 21.9   matters pertaining to the association and shall also act as the 
 21.10  secretary of the board.  The executive director shall: 
 21.11     (1) attend all meetings of the board; 
 21.12     (2) prepare and recommend to the board appropriate rules to 
 21.13  carry out the provisions of this chapter; 
 21.14     (3) establish and maintain an adequate system of records 
 21.15  and accounts following recognized accounting principles and 
 21.16  controls; 
 21.17     (4) designate an assistant executive director in the 
 21.18  unclassified service and two assistant executive directors in 
 21.19  the classified service with the approval of the board, and 
 21.20  appoint such employees, both permanent and temporary, as are 
 21.21  necessary to carry out the provisions of this chapter; 
 21.22     (5) organize the work of the association as the director 
 21.23  deems necessary to fulfill the functions of the association, and 
 21.24  define the duties of its employees and delegate to them any 
 21.25  powers or duties, subject to the director's control and under 
 21.26  such conditions as the director may prescribe; 
 21.27     (6) with the approval of the board, contract and set the 
 21.28  compensation for the services of an approved actuary, 
 21.29  professional management services, and any other consulting 
 21.30  services.  These contracts are not subject to the competitive 
 21.31  bidding procedure prescribed by chapter 16C.  An approved 
 21.32  actuary retained by the executive director shall function as the 
 21.33  actuarial advisor of the board and the executive director and 
 21.34  may perform actuarial valuations and experience studies to 
 21.35  supplement those performed by the actuary retained by the 
 21.36  legislative commission on pensions and retirement.  Any 
 22.1   supplemental actuarial valuations or experience studies shall be 
 22.2   filed with the executive director of the legislative commission 
 22.3   on pensions and retirement.  Copies of professional management 
 22.4   survey reports must be transmitted to the secretary of the 
 22.5   senate, the chief clerk of the house of representatives, and the 
 22.6   legislative reference library as provided by section 3.195, and 
 22.7   to the executive director of the commission ~~and to the~~ 
 22.8   ~~legislative auditor~~ at the same time as reports are furnished to 
 22.9   the board.  Only management firms experienced in conducting 
 22.10  management surveys of federal, state, or local public retirement 
 22.11  systems are qualified to contract with the executive director; 
 22.12     (7) with the approval of the board, provide in-service 
 22.13  training for the employees of the association; 
 22.14     (8) make refunds of accumulated contributions to former 
 22.15  members and to the designated beneficiary, surviving spouse, 
 22.16  legal representative, or next of kin of deceased members or 
 22.17  deceased former members, under this chapter; 
 22.18     (9) determine the amount of the annuities and disability 
 22.19  benefits of members covered by the association and authorize 
 22.20  payment of the annuities and benefits beginning as of the dates 
 22.21  on which the annuities and benefits begin to accrue, under this 
 22.22  chapter; 
 22.23     (10) pay annuities, refunds, survivor benefits, salaries, 
 22.24  and necessary operating expenses of the association; 
 22.25     (11) prepare and submit to the board and the legislature an 
 22.26  annual financial report covering the operation of the 
 22.27  association, as required by section 356.20; 
 22.28     (12) certify funds available for investment to the state 
 22.29  board of investment; 
 22.30     (13) with the advice and approval of the board, request the 
 22.31  state board of investment to sell securities on determining that 
 22.32  funds are needed for the purposes of the association; 
 22.33     (14) prepare and submit biennial and annual budgets to the 
 22.34  board and with the approval of the board submit those budgets to 
 22.35  the department of finance; and 
 22.36     (15) with the approval of the board, perform such other 
 23.1   duties as may be required for the administration of the 
 23.2   association and the other provisions of this chapter and for the 
 23.3   transaction of its business.  The executive director may: 
 23.4      (i) reduce all or part of the accrued interest and fines 
 23.5   payable by an employing unit for reporting requirements under 
 23.6   section 354.52, based on an evaluation of any extenuating 
 23.7   circumstances of the employing unit; 
 23.8      (ii) assign association employees to conduct field audits 
 23.9   of an employing unit to ensure compliance with the provisions of 
 23.10  this chapter; and 
 23.11     (iii) recover overpayments, if not repaid to the 
 23.12  association, by suspending or reducing the payment of a 
 23.13  retirement annuity, refund, disability benefit, survivor 
 23.14  benefit, or optional annuity under this chapter until the 
 23.15  overpayment, plus interest, has been recovered. 
 23.16     Sec. 19.  Minnesota Statutes 1998, section 360.015, 
 23.17  subdivision 19, is amended to read: 
 23.18     Subd. 19.  [KEEP BOOKS AND RECORDS.] The commissioner shall 
 23.19  keep accurate and complete books of ~~account of such character as~~ 
 23.20  ~~may be prescribed by the legislative auditor, the same~~ accounts 
 23.21  to show in detail itemized receipts and disbursements of the 
 23.22  airports fund.  The books shall show~~, and it shall be the duty~~ 
 23.23  ~~of the legislative auditor to so prescribe,~~ the following facts, 
 23.24  among others: 
 23.25     (a) The expenses of maintaining the department, including 
 23.26  the salaries and expenses of the individual members thereof; 
 23.27     (b) The amounts of money expended in each county of the 
 23.28  state for the construction or maintenance of airports or 
 23.29  restricted landing areas, when, where, and upon what airport or 
 23.30  restricted landing area expended, so that the cost for each such 
 23.31  airport or restricted landing area can be easily ascertained; 
 23.32     (c) The amount of equipment and materials purchased and 
 23.33  when, where, and from whom purchased; these books shall show the 
 23.34  price paid for each item; the original invoice shall form a part 
 23.35  of the permanent files and records in the department and shall 
 23.36  be open to public inspection. 
 24.1      Sec. 20.  Minnesota Statutes 1998, section 574.20, is 
 24.2   amended to read: 
 24.3      574.20 [BONDS, BY WHOM APPROVED.] 
 24.4      Except as otherwise provided by law in particular cases, 
 24.5   bonds shall be approved as follows: 
 24.6      (1) The official bonds of all state officers, including 
 24.7   those of the treasurers, superintendents, and other officials, 
 24.8   and employees of the several public educational, charitable, 
 24.9   penal, and reformatory institutions belonging to the state, 
 24.10  shall be approved, as to form, by the attorney general, and in 
 24.11  all other respects by the governor ~~and the legislative auditor,~~ 
 24.12  ~~or one of them~~; 
 24.13     (2) The official bonds of county, town, city, and school 
 24.14  district officers and employees by the governing body of the 
 24.15  political subdivision for whose security they are, respectively, 
 24.16  given; and 
 24.17     (3) Those required or permitted by law to be given in any 
 24.18  court, by the judge or justice of the court in which the 
 24.19  proceeding is begun or pending.  
 24.20     No officer, official, or employee required to give bond 
 24.21  shall enter upon duties until the bond is duly approved and 
 24.22  filed. 
 24.23     Sec. 21.  Minnesota Statutes 1998, section 609.456, is 
 24.24  amended to read: 
 24.25     609.456 [REPORTING TO STATE AUDITOR AND LEGISLATIVE AUDITOR 
 24.26  REQUIRED.] 
 24.27     Subdivision 1.  [STATE AUDITOR.] Whenever a public employee 
 24.28  or public officer of a political subdivision discovers evidence 
 24.29  of theft, embezzlement, or unlawful use of public funds or 
 24.30  property, the employee or elected official shall, except when to 
 24.31  do so would knowingly impede or otherwise interfere with an 
 24.32  ongoing criminal investigation, promptly report in writing to 
 24.33  the state auditor a detailed description of the alleged incident 
 24.34  or incidents. 
 24.35     Subd. 2.  [LEGISLATIVE AUDITOR.] Whenever an employee or 
 24.36  officer of the state, University of Minnesota, or other 
 25.1   organization listed in section 3.971, subdivision 1, discovers 
 25.2   evidence of theft, embezzlement, or unlawful use of public funds 
 25.3   or property, the employee or officer shall, except when to do so 
 25.4   would knowingly impede or otherwise interfere with an ongoing 
 25.5   criminal investigation, promptly report in writing to the 
 25.6   legislative auditor a detailed description of the alleged 
 25.7   incident or incidents. 
 25.8      Sec. 22.  Laws 1990, chapter 535, section 5, is amended to 
 25.9   read: 
 25.10     Sec. 5.  [ACCOUNTS; AUDITS.] 
 25.11     The corporation may establish funds and accounts that it 
 25.12  finds convenient.  The board shall provide for and pay the cost 
 25.13  of an independent annual audit of its official books and records 
 25.14  by the ~~legislative~~ state auditor subject to Minnesota Statutes, 
 25.15  sections 3.971 and 3.972.  A copy of this audit shall be filed 
 25.16  with the secretary of state. 
 25.17     Sec. 23.  [REVISOR INSTRUCTION.] 
 25.18     The revisor of statutes shall renumber each section of 
 25.19  Minnesota Statutes listed in column A with the number listed in 
 25.20  column B.  The revisor shall make necessary cross-reference 
 25.21  changes consistent with the renumbering.  The revisor shall 
 25.22  provide appropriate section and subdivision headnotes in 
 25.23  Minnesota Statutes, sections 3.97, 3.971, and 3.979. 
 25.24        Column A                      Column B 
 25.25        3.97, subd. 4                 3.971, subd. 1       
 25.26        3.97, subd. 5                 3.971, subd. 2       
 25.27        3.97, subd. 6                 3.971, subd. 3a      
 25.28        3.97, subd. 7                 3.971, subd. 4      
 25.29        3.97, subd. 8                 3.971, subd. 5      
 25.30        3.97, subd. 9                 3.979, subd. 1      
 25.31        3.97, subd. 10                3.979, subd. 2      
 25.32        3.97, subd. 11                3.979, subd. 3      
 25.33        3.97, subd. 11a               3.979, subd. 4       
 25.34        3.97, subd. 12                3.97, subd. 3a
 25.35        3.971, subd. 1                3.971, subd. 6
 25.36        3.971, subd. 2                3.971, subd. 7
 26.1         3.971, subd. 4                3.971, subd. 8
 26.2      Sec. 24.  [REPEALER.] 
 26.3      Minnesota Statutes 1998, sections 3.973; 116.072, 
 26.4   subdivision 12; 469.207, subdivision 1; and 574.02, are repealed.
 26.5      Sec. 25.  [EFFECTIVE DATE.] 
 26.6      The amendments made to Minnesota Statutes 1998, section 
 26.7   3.97, subdivision 2, in section 1, are effective January 1, 
 26.8   2001.  The remainder of the act is effective the day following 
 26.9   final enactment.