1998 Minnesota Statutes

     3.97 Audit policy; creation of commission; transfer of 
  functions of public examiner; access to data. 

    Subdivision 1.  Continuous legislative review of the effect 
 of grant-in-aid programs, the spending of public funds and their 
 financing at all levels of government is required in the public 
 interest to enable the enactment of appropriate legislation.  

    Subd. 2.  The legislative audit commission is created.  The 
 commission consists of: 

    (1) the majority leader of the senate and the president of 
 the senate or their designees; 

    (2) the chair of the senate committee on taxes or a 
 designee who is a member of the committee; 

    (3) the chair of the senate committee on governmental 
 operations and reform or a designee who is a member of the 
 committee; 

    (4) the chair of the senate committee on finance or a 
 designee who is a member of the committee; 

    (5) five members of the senate appointed by the senate 
 minority leader; 

    (6) the speaker of the house and the chair of the house 
 committee on rules or their designees; 

    (7) the chair of the house committee on taxes or a designee 
 who is a member of the committee; 

    (8) the chair of the house committee on governmental 
 operations and gaming or a designee who is a member of the 
 committee; 

    (9) the chair of the house ways and means committee or a 
 designee who is a member of the committee; and 

    (10) five members of the house appointed by the house 
 minority leader.  

 The appointed members of the commission shall serve for a term 
 commencing upon appointment and expiring at the opening of the 
 next regular session of the legislature in the odd-numbered year 
 and until a successor is appointed.  A vacancy in the membership 
 of the commission shall be filled for the unexpired term in a 
 manner that will preserve the representation established by this 
 subdivision.  

    The commission shall meet in January of each odd-numbered 
 year to elect its chair and other officers as it may determine 
 necessary.  A chair shall serve a two-year term, expiring on 
 January 1 in the odd-numbered year following election, and until 
 a successor is elected.  The chair shall alternate biennially 
 between the senate and the house.  The commission shall meet at 
 the call of the chair or the executive secretary.  The members 
 shall serve without compensation but be reimbursed for their 
 reasonable expenses as members of the legislature.  The 
 commission may exercise the powers prescribed by section 3.153. 

    Subd. 3.  The department of public examiner is transferred 
 from the executive to the legislative branch.  

    Subd. 4.  The legislative auditor is the executive 
 secretary of the commission.  The legislative auditor shall be 
 appointed by the commission for a six-year term and serve in the 
 unclassified service.  The legislative auditor shall not at any 
 time while in office hold any other public office.  The 
 legislative auditor shall not be removed from office before the 
 expiration of the term of service except for cause after public 
 hearing.  

    Subd. 5.  The legislative auditor shall establish a 
 financial audits division and a program evaluation division to 
 fulfill the duties prescribed in this section.  Each division 
 shall 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 a confidential secretary to serve at 
 pleasure.  The commission shall fix the salaries of the deputy 
 auditors and confidential secretaries.  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.  The deputy auditors and the confidential 
 secretaries serve in the unclassified civil service, but all 
 other employees of the legislative auditor are in the classified 
 civil service.  

    Subd. 6.  All the powers, duties, and responsibilities of 
 the department of public examiner relating to the state of 
 Minnesota, its departments and agencies as described in 
 Minnesota Statutes 1971, section 215.03, and any other law 
 concerning powers, duties, and responsibilities of the public 
 examiner not otherwise dealt with by Laws 1973, chapter 492, are 
 transferred to the legislative auditor.  Nothing in this 
 subdivision shall supersede the powers conferred upon the 
 commissioner of finance under section 16A.055.  

    Subd. 7.  In addition to the legislative auditing duties 
 concerning state financial matters, the legislative auditor 
 shall also exercise and perform duties prescribed by rule of the 
 legislature or either body of it or by the commission.  The 
 legislative auditor shall review department policies and 
 evaluate projects or programs requested by the commission.  Any 
 standing legislative committee having legislative jurisdiction 
 may request the commission to review projects or programs.  

    Subd. 8.  The legislature may, by rule, provide to the 
 legislative auditor the testimonial powers that are conferred by 
 law on legislative standing commissions or committees. 

    Subd. 9.  The legislative auditor is subject to the 
 Government Data Practices Act, chapter 13.  If data provided by 
 the legislative auditor to the commission is disseminated by the 
 commission or its members or agents in violation of section 
 13.05, subdivision 4, the commission is subject to liability 
 under section 13.08, subdivisions 1 and 3.  

    Subd. 10.  Members of the commission have access to data 
 that is collected or used by the legislative auditor and 
 classified as not public or as private or confidential only as 
 authorized by resolution of the commission.  The commission 
 shall not authorize its members to have access to private or 
 confidential data on individuals collected or used in connection 
 with the collection of any tax.  

    Subd. 11.  "Audit" as used in this subdivision means a 
 financial audit, a program evaluation, a best practices review, 
 or an 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 published or the audit is 
 no longer being actively pursued.  Data that support the 
 conclusions of the report and that the legislative auditor 
 reasonably believes will result 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.  Data on individuals 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.  The definitions of terms provided 
 in section 13.02 apply for purposes of this subdivision. 

    Subd. 12.  The commission shall periodically select topics 
 for the legislative auditor to evaluate.  Topics may include any 
 agency, program, or activity established by law to achieve a 
 state purpose, or any topic that affects the operation of state 
 government, but the commission shall give primary consideration 
 to topics that are likely, upon examination, to produce 
 recommendations for cost savings, increased productivity, or the 
 elimination of duplication among public agencies. 

    HIST: 1973 c 492 s 12; 1973 c 720 s 76 subd 2; 1975 c 204 s 
 90; 1980 c 484 s 1-3; 1981 c 311 s 39; 1982 c 545 s 24; 1983 c 
 317 s 1; 1985 c 248 s 70; 1986 c 444; 1988 c 469 art 1 s 1; 1989 
 c 351 s 1; 1991 c 345 art 1 s 38; 1993 c 4 s 5; 1994 c 632 art 3 
 s 15; 1997 c 184 s 1