HF1240

HF1240 (Legislative Session 94 (2025-2026))

Policy related to the legislative auditor modified.

Related bill: SF1772

AI Generated Summary

This bill modifies policies related to the Minnesota Legislative Auditor. Key provisions include:

Legislative Auditor Structure and Staffing:
- Establishes three divisions: Financial Audits, Program Evaluation, and Special Reviews.
- Authorizes appointment of deputy auditors, who can be removed only for cause.
- Requires the Financial Audit Division deputy to hold an active CPA license.
- Prohibits Legislative Auditor employees from running for partisan elected office.
Special Reviews Expansion:
- Allows the Legislative Auditor to conduct special reviews related to legal compliance, financial misuse, data security breaches, legislative requests, and follow-ups on prior reviews.
Obligations to Notify the Legislative Auditor:
- Expands the definition of "obligated officers" responsible for notifying the auditor of financial or data misuse.
- Mandates reporting of unlawful use of public money or unauthorized access to government data.
Inquiry and Inspection Powers:
- Requires public officials and organizations dealing with public funds to cooperate fully.
- Grants the auditor authority to access state information systems without notifying affected entities.
Protection of Legislative Data:
- Allows the auditor to classify data provided by legislators or legislative staff as private or nonpublic.
Reporting Misuse of Public Resources or Data:
- Requires state agencies to direct concerns about misuse of funds or data to obligated officers or the Legislative Auditor.
- Directs the Commissioner of Management and Budget to create a standardized reporting policy.
Repeal of Prior Statute:
- Repeals Minnesota Statutes 16B.45, which allowed the Legislative Auditor to evaluate information systems, computerization efforts, and performance of various agencies.

Overall, the bill enhances oversight responsibilities, strengthens reporting requirements, and expands the Legislative Auditor's authority to investigate and protect state resources.

Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
February 19, 2025	House	Floor	Action	Introduction and first reading, referred to	State Government Finance and Policy
February 19, 2025	House	Floor	Action	Introduction and first reading, referred to	State Government Finance and Policy
March 12, 2025	House	Floor	Action	Committee report, to adopt and re-refer to	Judiciary Finance and Civil Law
March 19, 2025	House	Floor	Action	Author added
March 19, 2025	House	Floor	Action	Motion to recall and re-refer, motion prevailed	State Government Finance and Policy

Citations

[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill modifies staffing and compensation structure for the legislative auditor under section 3.971 subdivision 2.",
      "modified": [
        "Clarifies the supervisory roles and compensation determination for deputy auditors."
      ]
    },
    "citation": "3.971",
    "subdivision": "subdivision 2"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill modifies the scope and criteria for special reviews by the legislative auditor under section 3.971 subdivision 8a.",
      "modified": [
        "Expands and clarifies conditions under which special reviews can be conducted."
      ]
    },
    "citation": "3.971",
    "subdivision": "subdivision 8a"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill modifies notification obligations of officers to the legislative auditor under section 3.971 subdivision 9.",
      "modified": [
        "Requires prompt notification to the legislative auditor if there's suspicion of unlawful public resource usage."
      ]
    },
    "citation": "3.971",
    "subdivision": "subdivision 9"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill amends inquiry and inspection duties related to audits under section 3.978 subdivision 2.",
      "modified": [
        "Clarifies cooperation requirements and audit-related data production."
      ]
    },
    "citation": "3.978",
    "subdivision": "subdivision 2"
  },
  {
    "analysis": {
      "added": [
        "Allows legislative auditor to classify certain data provided by legislators as private or nonpublic."
      ],
      "removed": [],
      "summary": "A new subdivision is added to section 3.979 concerning data classification.",
      "modified": []
    },
    "citation": "3.979",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill references conditions under which legislative auditor employees cannot hold partisan office, related to section 43A.32 subdivisions 2 and 3.",
      "modified": [
        "Prohibits legislative auditor employees from being candidates for partisan elected public office."
      ]
    },
    "citation": "43A.32",
    "subdivision": "subdivision 2"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Tied to restrictions imposed on legislative auditor employees in connection with partisan office, related to section 43A.32 subdivisions 2 and 3.",
      "modified": [
        "Prohibits legislative auditor employees from being candidates for partisan elected public office."
      ]
    },
    "citation": "43A.32",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill involves references to compliance within section 43A.38 possibly involving special reviews by the legislative auditor.",
      "modified": []
    },
    "citation": "43A.38",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill references compliance checks under section 43A.39 regarding special reviews by the legislative auditor.",
      "modified": []
    },
    "citation": "43A.39",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill refers to compensation plan approvals related to section 3.855 subdivision 3.",
      "modified": [
        "Includes legislative approval for compensation plan for legislative auditor's office classified employees."
      ]
    },
    "citation": "3.855",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [],
      "removed": [
        "Repeals the legislative auditor's ability to conduct performance evaluations of systems analysis and information services."
      ],
      "summary": "This bill repeals section 16B.45, impacting the legislative auditor's functions.",
      "modified": []
    },
    "citation": "16B.45",
    "subdivision": ""
  }
]