HF7 Summary

• Amends Minnesota Statutes to clarify that no official or employee in the executive, legislative, or judicial branches may intentionally use appropriated money for any purpose other than appropriated, with violations constituting gross misdemeanor and grounds for immediate removal from office.

• Establishes the Commissioner of Finance's responsibility to develop and implement a comprehensive system of internal controls and internal auditing across executive agencies to safeguard public funds and minimize fraud, waste, and abuse.

• Requires the Legislative Auditor to audit financial statements of state entities and investigate allegations of noncompliance and misuse of public money, with findings reported to the Legislative Audit Commission, attorney general, and county attorney.

• Creates a five-member Financial Controls Council appointed by the executive council to advise on internal control systems and review audits, with council members required to have public or private sector internal control experience.

• Mandates the Commissioner of Finance to develop best practices policies for conducting investigations into allegedly inappropriate activity and requires all appointing authorities to follow these policies or develop their own in consultation with the attorney general.