HF2743 (Legislative Session 94 (2025-2026))

Office of the Inspector General provisions modified; access to records provided; data classified; immunity and confidentiality in reporting or participating in an investigation provided; process for notice, appeal, and withholding of payments established; and fraud, theft, waste, and abuse definitions modified.

Related bill: SF2981

AI Generated Summary

Purpose of the Bill

This bill aims to enhance the rules around data handling, investigation, and enforcement related to public funds within the Minnesota Department of Education, specifically through the establishment of an Office of the Inspector General (OIG). The objective is to prevent fraud, theft, waste, and abuse in educational programs by establishing transparent processes and safeguards.

Main Provisions

  • Office of the Inspector General (OIG): Creation of the OIG within the Department of Education to foster accountability and integrity by investigating suspected misuse of educational funds.
  • Data Access and Confidentiality: Provides OIG with access to relevant data while maintaining confidentiality during investigations. Allows the OIG to access records from educational institutions to facilitate investigations and prevent inappropriate use of resources.
  • Reporting and Immunity: Individuals reporting in good faith about fraud, waste, or abuse are granted immunity from civil liability. Confidentiality for whistleblowers is protected unless a court deems otherwise for prosecution purposes.
  • Investigation and Sanctions: Describes the process through which the OIG can recommend sanctions, such as withholding payments, to program participants if evidence of fraud or abuse is found. Sanctions can include temporarily suspending payment or full exclusion from programs.
  • Appeal Processes: Establishes mechanisms for program participants to appeal decisions made by the OIG and the commissioner regarding sanctions or exclusion from programs.
  • Fraud and Misuse Definitions: Clarifies definitions for terms like fraud, waste, abuse, and theft within the context of educational programs, outlining what constitutes each.

Significant Changes to Existing Law

  • Educational Data Sharing: Amends existing statutes to update how educational data, especially personal student data, can be shared between educational institutions for reporting and service coordination purposes.
  • Sanction and Investigation Procedures: Introduces new processes for handling sanctions and investigations by the Department of Education, focusing on transparency and fair treatment during investigations.

Relevant Terms

  • Office of the Inspector General (OIG)
  • Fraud, Waste, Abuse
  • Sanctions
  • Whistleblower Immunity
  • Data Confidentiality
  • Program Participant
  • Educational Data Sharing

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 23, 2025HouseFloorActionIntroduction and first reading, referred toJudiciary Finance and Civil Law
April 06, 2025HouseFloorActionCommittee report, to adopt and re-refer toEducation Policy

Citations

 
[
  {
    "analysis": {
      "added": [
        "Clarification on the process for educational agencies to share personal contact information with the Department of Education and other institutions when required."
      ],
      "removed": [
        ""
      ],
      "summary": "Modification of provisions for educational data classified as directory information under section 13.32, subdivision 5.",
      "modified": [
        "Specifies restrictions on designating certain personal contact information as directory information."
      ]
    },
    "citation": "13.32",
    "subdivision": "subdivision 5"
  },
  {
    "analysis": {
      "added": [
        "The inclusion of the Office of the Inspector General within the Department of Education."
      ],
      "removed": [
        ""
      ],
      "summary": "Modification to the application section for agencies carrying out law enforcement functions under section 13.82, subdivision 1",
      "modified": [
        ""
      ]
    },
    "citation": "13.82",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [
        "Addition of rule adoption requirements for standards in health."
      ],
      "removed": [
        ""
      ],
      "summary": "Modifications to the rulemaking requirements for implementing academic standards under section 120B.021, subdivision 3",
      "modified": [
        "Clarifies the process and requirements for adopting statewide academic standards."
      ]
    },
    "citation": "120B.021",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [
        "Publishing requirements for reports on programs aimed at increasing teacher diversity."
      ],
      "removed": [
        ""
      ],
      "summary": "Requires the collaboration between education boards and departments for publishing reports under section 120B.117, subdivision 4",
      "modified": [
        "Clarifies the entities required to collaborate and report."
      ]
    },
    "citation": "120B.117",
    "subdivision": "subdivision 4"
  },
  {
    "analysis": {
      "added": [
        "Establishes an Office of Inspector General within the Department of Education."
      ],
      "removed": [
        ""
      ],
      "summary": "Adds powers and duties for establishing the Office of Inspector General under section 127A.21, subdivision 1",
      "modified": [
        ""
      ]
    },
    "citation": "127A.21",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [
        "Procedures clarified for adjusting school district aid based on excess tax increments."
      ],
      "removed": [
        ""
      ],
      "summary": "Details the certification and handling of excess tax increments under section 127A.49, subdivision 3",
      "modified": [
        "Detailed adjustments based on previous fiscal year's excess tax increments."
      ]
    },
    "citation": "127A.49",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [
        "Allows specified departments and agencies access to unemployment insurance data for program administration purposes."
      ],
      "removed": [
        ""
      ],
      "summary": "Regulates the use and disclosure of data gathered under the Minnesota Unemployment Insurance Law under section 268.19, subdivision 1.",
      "modified": [
        "Specifies the conditions for data sharing and confidentiality."
      ]
    },
    "citation": "268.19",
    "subdivision": "subdivision 1"
  }
]