SF1773

Purpose

To require certain university and related state organizations to report suspected misuse of public funds to law enforcement and to the Legislative Auditor, strengthening accountability for theft, embezzlement, or unlawful use of public funds or property.

Main Provisions

• The bill amends Minnesota Statutes 2024, section 609.456, subdivision 2.
• It applies to an employee or officer of the University of Minnesota or other organization listed in section 3.971 subdivision 6.
• When such an employee or officer discovers evidence of theft, embezzlement, or unlawful use of public funds or public property, they must:
  • promptly report the incident to law enforcement, and
  • promptly report in writing to the Legislative Auditor a detailed description of the alleged incident, with an exception if doing so would knowingly impede or interfere with an ongoing criminal investigation.
• The required written report to the Legislative Auditor must contain a detailed description of the alleged incident.

Significant Changes to Existing Law

• Introduces a mandatory dual reporting requirement for specific organizations: reports to law enforcement and to the Legislative Auditor.
• Establishes a prompt reporting standard and clarifies an exception related to ongoing criminal investigations.
• Expands the scope to include organizations listed in section 3.971 subdivision 6 (beyond just the University of Minnesota) within Minnesota Statutes 2024 section 609.456, subdivision 2.

Scope and Definitions

• Applies to employees or officers of the University of Minnesota and other organizations identified in section 3.971 subdivision 6.
• Covers evidence of theft, embezzlement, or unlawful use of public funds or property.
• Uses “misuse of public funds” as the general impetus and includes a requirement to report to both law enforcement and the Legislative Auditor.

Relevant Terms - Legislative Auditor - Law enforcement - Theft - Embezzlement - Unlawful use of public funds or property - Misuse of public funds - Promptly report - In writing - Detailed description - Ongoing criminal investigation - Minnesota Statutes 2024 section 609.456 subdivision 2 - University of Minnesota - Section 3.971 subdivision 6