1.1Senator Kunesh moved to amend H.F. No. 5237, as amended pursuant to Rule 45,
1.2adopted by the Senate May 2, 2024, as follows:
1.3(The text of the amended House File is identical to S.F. No. 5252.)
1.4Page 77, after line 15, insert:

1.5    "Section 1. Minnesota Statutes 2022, section 13.321, is amended by adding a subdivision
1.6to read:
1.7    Subd. 12. Office of inspector general; access to data. Data sharing with the Department
1.8of Education's Office of the Inspector General is governed by section 127A.21.

1.9    Sec. 2. Minnesota Statutes 2023 Supplement, section 127A.21, subdivision 2, is amended
1.10to read:
1.11    Subd. 2. Data practices; Hiring; reporting. The Office of the Inspector General has
1.12access to all program data, regardless of classification under chapter 13, held by the
1.13department, school districts or charter schools, grantees, and any other recipient of funds
1.14from the department. The commissioner, or the commissioner's designee, must hire an
1.15inspector general to lead the Office of the Inspector General. The inspector general must
1.16hire a deputy inspector general and, at the discretion of the inspector general, sufficient
1.17assistant inspectors general to carry out the duties of the office. In a form and manner
1.18determined by the inspector general, the Office of the Inspector General must develop a
1.19public platform for the public to report instances of potential fraud, waste, or abuse of public
1.20funds administered by the department.

1.21    Sec. 3. Minnesota Statutes 2023 Supplement, section 127A.21, is amended by adding a
1.22subdivision to read:
1.23    Subd. 3. Subpoenas. (a) For the purpose of any audit, investigation, proceeding, or
1.24inquiry related to the duties and responsibilities of the inspector general, the inspector general
1.25or a designee may administer oaths and affirmations, subpoena witnesses, compel attendance,
1.26take evidence, and issue subpoenas duces tecum to require the production of documents
1.27relevant to an audit or investigation.
1.28(b) A subpoena issued pursuant to this subdivision must state that the subpoena recipient
1.29may not disclose the fact that the subpoena was issued or the fact that the requested records
1.30have been given to the inspector general, or their staff, except:
1.31(1) in so far as the disclosure is necessary to find and disclose the records; or
2.1(2) pursuant to court order.
2.2(c) The fees for service of a subpoena must be paid in the same manner as prescribed
2.3by law for a service of process issued by a district court.
2.4(d) The subpoena issued under this subdivision shall be enforceable through the district
2.5court in the district where the subpoena is issued.

2.6    Sec. 4. Minnesota Statutes 2023 Supplement, section 127A.21, is amended by adding a
2.7subdivision to read:
2.8    Subd. 4. Access to records. (a) For purposes of a fraud, waste, or abuse investigation,
2.9the Office of the Inspector General shall have the authority to receive from other state
2.10agencies routing and account numbers to which the Department of Education's public funding
2.11has been disbursed, provided that a subpoena has been issued by the inspector general under
2.12this section.
2.13(b) For purposes of detecting fraud, waste, or abuse, the Office of the Inspector General
2.14shall have access to all books, accounts, documents, data, and property related to programs
2.15funded by the Department of Education that are held by the department, state agencies,
2.16school districts, or charter schools. The program and financial data shall be provided in a
2.17reasonable format and time frame prescribed by the inspector general. The department may
2.18enter into specific agreements with other agencies related to each request.
2.19(c) For purposes of detecting fraud, waste, or abuse, the Office of the Inspector General
2.20shall have access to all books, accounts, documents, data, and property related to programs
2.21funded by the Department of Education that are held by entities, corporations, firms, or
2.22individuals that receive, disburse, or have custody of program funds disbursed by the
2.23department. Requested records shall be made available at a time and place requested by the
2.24Office of the Inspector General. The information shall be provided in a reasonable format
2.25and time frame prescribed by the inspector general.

2.26    Sec. 5. Minnesota Statutes 2023 Supplement, section 127A.21, is amended by adding a
2.27subdivision to read:
2.28    Subd. 5. Recommended actions. (a) If a criminal conviction or guilty plea results from
2.29a fraud, waste, or abuse investigation related to a department program, the inspector general
2.30may recommend to the commissioner that sanctions, including ending program participation,
2.31stopping funds disbursement, or ending, denying, or declining all department contracts with
2.32the impacted entity, may be imposed.
3.1(b) If, during the course of an investigation by the Office of the Inspector General, there
3.2are credible indicia of fraud, waste, or abuse, the inspector general may recommend to the
3.3commissioner that temporary sanctions, including temporary stop payment, be imposed.
3.4(c) If a fraud, waste, or abuse investigation conducted by the Office of the Inspector
3.5General results in a finding of fraud, waste, or abuse by a preponderance of the evidence,
3.6the inspector general may recommend to the commissioner that sanctions, including ending
3.7program participation, stopping funds disbursement, or ending, denying, or declining all
3.8department contracts with the impacted entity, may be imposed.
3.9(d) If an entity, provider, vendor, or individual enrolled or otherwise receiving funds
3.10under any contract or registered in any program administered by a Minnesota state or federal
3.11agency is excluded from that program, the Office of the Inspector General may recommend
3.12that the commissioner:
3.13(1) prohibit the excluded provider, vendor, individual, or any associated entities or
3.14associated individuals from enrolling, receiving grant funds, or registering in any program
3.15administered by the commissioner; and
3.16(2) disenroll, disqualify, or debar the excluded provider, vendor, individual, or any
3.17associated entities or associated individuals in any program administered by the
3.18commissioner.
3.19The duration of a prohibition, disenrollment, disqualification, or debarment may last until
3.20up to the longest applicable sanction or disqualifying period in effect for the entity, provider,
3.21vendor, individual, associated entity, or associated individual as permitted by state or federal
3.22law.
3.23(e) The commissioner has the authority to implement recommendations from the Office
3.24of Inspector General pursuant to paragraphs (a) to (d).
3.25(f) The commissioner must send notice of a sanction under paragraph (a), (b), or (c)
3.26within seven business days of taking such action unless requested in writing by a law
3.27enforcement agency to temporarily delay issuing the notice to prevent disruption of an
3.28ongoing law enforcement agency investigation. The notice must state: (1) the action being
3.29taken; (2) the general allegations that form the basis for the sanction; (3) except in the case
3.30of a conviction for conduct described in paragraph (a), state the duration of the exclusion,
3.31suspension, or termination; (4) identify the programs to which the sanction applies; and (5)
3.32provide notice of the right to request reconsideration.
4.1(g) Upon receipt of a notice under paragraph (f), a provider, vendor, individual, associated
4.2individual, or associated entity may request a contested case hearing, as defined in section
4.314.02, subdivision 3, by filing with the Office of the Inspector General a written request of
4.4appeal. The scope of any contested case hearing is solely limited to action taken under this
4.5section. The Office of the Inspector General must receive the appeal request no later than
4.630 days after the date the notice was mailed to the provider, vendor, individual, associated
4.7individual, or associated entity. The appeal request must specify:
4.8(1) each disputed item and the reason for the dispute;
4.9(2) the authority in statute or rule upon which the provider, vendor, individual, associated
4.10individual, or associated entity relies for each disputed item;
4.11(3) the name and address of the person or entity with whom contacts may be made
4.12regarding the appeal; and
4.13(4) any other information required by the Office of the Inspector General.
4.14(h) The commissioner shall stop withholding payments if the Office of the Inspector
4.15General determines there is insufficient evidence of fraud by the entity, provider, vendor,
4.16individual, associated individual, or associated entity or when legal proceedings relating to
4.17the alleged fraud are completed.
4.18(i) For the purposes of this subdivision, fraud, waste, or abuse includes any of the
4.19following, but is not limited to:
4.20(1) a pattern of presentment of false or duplicate information or claims;
4.21(2) a pattern of making false statements of material facts for the purpose of obtaining
4.22greater compensation than that to which the individual or entity is legally entitled;
4.23(3) suspension or termination as a vendor, provider, or contractor with any other state
4.24agency;
4.25(4) refusal to provide access to records as required by subdivision 4; or
4.26(5) failure to correct errors in the maintenance of records after a request by the
4.27commissioner or the department.

5.1    Sec. 6. Minnesota Statutes 2023 Supplement, section 127A.21, is amended by adding a
5.2subdivision to read:
5.3    Subd. 6. Data practices. (a) It is not a violation of rights conferred by chapter 13 or any
5.4other statute related to the confidentiality of government data for a government entity as
5.5defined in section 13.02 to provide data or information under this section.
5.6(b) The inspector general is subject to the Government Data Practices Act, chapter 13,
5.7and shall protect from unlawful disclosure data classified as not public."
5.8Renumber the sections in sequence and correct the internal references
5.9Amend the title accordingly
5.10The motion prevailed. #did not prevail. So the amendment was #not adopted.