1.1.................... moves to amend H.F. No. 5237, the second engrossment, as follows:
1.2Page 84, after line 16, insert:
1.3 "Section 1. Minnesota Statutes 2022, section 13.321, is amended by adding a subdivision
1.4to read:
1.5 Subd. 12. Office of the Inspector General; access to data. Data involving the
1.6Department of Education's Office of the Inspector General is governed by section 127A.21.
1.7 Sec. 2. Minnesota Statutes 2023 Supplement, section 127A.21, is amended to read:
1.8127A.21 OFFICE OF THE INSPECTOR GENERAL.
1.9 Subdivision 1.
Establishment of Office of the Inspector General; powers; duties. The
1.10commissioner must establish within the department an Office of the Inspector General.
The
1.11Office of the Inspector General is charged with protecting the integrity of the department
1.12and the state by detecting and preventing fraud, waste, and abuse in department programs.
1.13The Office of the Inspector General must conduct independent and objective investigations
1.14to promote the integrity of the department's programs and operations. When fraud or
other
1.15misuse of public funds is detected, the Office of the Inspector General must report
it to the
1.16appropriate law enforcement entity and collaborate and cooperate with law enforcement
to
1.17assist in the investigation and any subsequent civil and criminal prosecution.
1.18 Subd. 1a. Definitions. (a) For purposes of this section, the following terms have the
1.19meanings given.
1.20(b) "Abuse" means actions that may, directly or indirectly, result in unnecessary
costs
1.21to department programs. Abuse may involve paying for items or services when there
is no
1.22legal entitlement to that payment.
2.1(c) "Department program" means a program funded by the Department of Education
2.2that involves the transfer or disbursement of public funds or other resources to a
program
2.3participant.
2.4(d) "Fraud" means an intentional or deliberate act to deprive another of property
or
2.5money by deception or other unfair means. Fraud includes intentionally submitting
false
2.6information to the department for the purpose of obtaining a greater compensation
or benefit
2.7than that to which the person is legally entitled. Fraud also includes failure to
correct errors
2.8in the maintenance of records in a timely manner after a request by the department.
2.9(e) "Investigation" means an audit, investigation, proceeding, or inquiry by the Office
2.10of the Inspector General related to a program participant in a department program.
2.11(f) "Program participant" means any person, including associated persons, that receives,
2.12disburses, or has custody of funds or other resources transferred or disbursed under
a
2.13department program. Program participant does not include a charter school or government
2.14entity as defined by section 13.02.
2.15(g) "Waste" means practices that, directly or indirectly, result in unnecessary costs
to
2.16department programs, such as misusing resources.
2.17 Subd. 2.
Data practices; Hiring; reporting. The Office of the Inspector General has
2.18access to all program data, regardless of classification under chapter 13, held by the
2.19department, school districts or charter schools, grantees, and any other recipient
of funds
2.20from the department. The commissioner, or the commissioner's designee, must hire an
2.21inspector general to lead the Office of the Inspector General. The inspector general
must
2.22hire a deputy inspector general and, at the discretion of the inspector general, sufficient
2.23assistant inspectors general to carry out the duties of the office. In a form and
manner
2.24determined by the inspector general, the Office of the Inspector General must develop
a
2.25public platform for the public to report instances of potential fraud, waste, or abuse
of public
2.26funds administered by the department.
2.27 Subd. 3. Subpoenas. (a) For the purpose of an investigation, the inspector general or a
2.28designee may administer oaths and affirmations, subpoena witnesses, compel attendance,
2.29take evidence, and issue subpoenas duces tecum to require the production of books,
papers,
2.30correspondence, memoranda, agreements, financial records, or other documents or records
2.31relevant to the investigation.
2.32(b) A subpoena issued pursuant to this subdivision must state that the subpoena recipient
2.33may not disclose the fact that the subpoena was issued or the fact that the requested
records
2.34have been given to the inspector general, or their staff, except:
3.1(1) in so far as the disclosure is necessary to find and disclose the records; or
3.2(2) pursuant to court order.
3.3(c) The fees for service of a subpoena must be paid in the same manner as prescribed
3.4by law for a service of process issued by a district court.
3.5(d) The subpoena issued under this subdivision shall be enforceable through the district
3.6court in the district where the subpoena is issued.
3.7 Subd. 4. Access to records. (a) For purposes of an investigation, and regardless of the
3.8data's classification under chapter 13, the Office of the Inspector General shall
have access
3.9to all relevant books, accounts, documents, data, and property related to department
programs
3.10that are maintained by a program participant, charter school, or government entity
as defined
3.11by section 13.02.
3.12(b) Notwithstanding paragraph (a), the Office of the Inspector General must issue
a
3.13subpoena under subdivision 3 in order to access routing and account numbers to which
3.14Department of Education funds have been disbursed.
3.15(c) Records requested by the Office of the Inspector General under this subdivision
shall
3.16be provided in a format, place, and timeframe reasonably requested by the Office of
the
3.17Inspector General.
3.18(d) The department may enter into specific agreements with other state agencies related
3.19to records requests by the Office of the Inspector General.
3.20 Subd. 5. Sanctions; appeal. (a) The inspector general may recommend that the
3.21commissioner impose appropriate temporary sanctions, including withholding of payments
3.22under the program, on a program participant pending an investigation by the Office
of the
3.23Inspector General if:
3.24(1) during the course of an investigation, the Office of the Inspector General finds
credible
3.25indicia of fraud, waste, or abuse by the program participant;
3.26(2) there has been a criminal, civil, or administrative adjudication of fraud, waste,
or
3.27abuse against the program participant in Minnesota or in another state or jurisdiction;
3.28(3) the program participant was receiving funds under any contract or registered in
any
3.29program administered by another Minnesota state agency, a government agency in another
3.30state, or a federal agency, and was excluded from that contract or program for reasons
3.31credibly indicating fraud, waste, or abuse by the program participant; or
3.32(4) the program participant has a pattern of noncompliance with an investigation.
4.1(b) If an investigation finds, by clear and convincing evidence, fraud, waste, or
abuse
4.2by a program participant, the inspector general may recommend that the commissioner
4.3impose appropriate sanctions on the program participant.
4.4(c) The commissioner has the authority to implement recommendations by the inspector
4.5general, including imposing appropriate sanctions, temporarily or otherwise, on a
program
4.6participant. Sanctions may include ending program participation, stopping disbursement
of
4.7funds or resources, and termination of department contracts with the participant for
any
4.8current or future department program or contract. A sanction may be imposed for up
to the
4.9longest period permitted by state or federal law. Sanctions authorized under this
subdivision
4.10are in addition to other remedies and penalties available under law.
4.11(d) If the commissioner imposes sanctions on a program participant under this subdivision,
4.12the commissioner must notify the participant in writing within seven business days
of
4.13imposing the sanction, unless requested in writing by a law enforcement agency to
4.14temporarily delay issuing the notice to prevent disruption of an ongoing law enforcement
4.15agency investigation. A notice of sanction must state:
4.16(1) the sanction being imposed;
4.17(2) the general allegations that form the basis for the sanction;
4.18(3) the duration of the sanction;
4.19(4) the department programs to which the sanction applies; and
4.20(5) how the program participant's may appeal the sanction pursuant to paragraph (e).
4.21(e) A program participant sanctioned under this subdivision may, within 30 days after
4.22the date the notice of sanction was mailed to the participant, appeal the determination
by
4.23requesting in writing that the commissioner initiate a contested case proceeding under
4.24chapter 14. The scope of any contested case hearing is limited to the sanction imposed
under
4.25this subdivision. An appeal request must specify with particularity each disputed
item, the
4.26reason for the dispute, and must include the name and contact information of the person
or
4.27entity that may be contacted regarding the appeal.
4.28(f) The commissioner shall lift sanctions imposed under this subdivision if the Office
4.29of the Inspector General determines there is insufficient evidence of fraud, waste,
or abuse
4.30by the program participant. The commissioner must notify the participant in writing
within
4.31seven business days of lifting the sanction.
5.1 Subd. 6. Data practices. (a) It is not a violation of rights conferred by chapter 13 or any
5.2other statute related to the confidentiality of government data for a government entity
as
5.3defined in section 13.02 to provide data or information under this section.
5.4(b) The inspector general is subject to the Government Data Practices Act, chapter
13,
5.5and shall protect from unlawful disclosure data classified as not public. Data collected,
5.6created, received, or maintained by the inspector general relating to an audit, investigation,
5.7proceeding, or inquiry are subject to section 13.39."
5.8Renumber the sections in sequence and correct the internal references
5.9Amend the title accordingly