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Legacy fund rule breakers would be cut off by new bill, committee hears

Legislative Auditor Jim Nobles, left, answers a members question during testimony on HF462, sponsored by Rep. Steve Green, right, which would modify the eligibility for Legacy fund appropriations. Photo by Paul Battaglia
Legislative Auditor Jim Nobles, left, answers a members question during testimony on HF462, sponsored by Rep. Steve Green, right, which would modify the eligibility for Legacy fund appropriations. Photo by Paul Battaglia

While there is agreement that those who receive Legacy funds should not be eligible for future funding if they violate the rules governing their original appropriation, a bill that seeks to make that sentiment official did provoke debate Monday in the House Legacy Funding Finance Committee.

Sponsored by Rep. Steve Green (R-Fosston), HF462 would prohibit previous Legacy fund recipients from receiving additional money if the legislative auditor determines they violated any laws, rules or regulations related to the funding.

“All this does is it tells recipients of money from the Legacy fund that when we find non-compliance, they need to correct that before they come back and are eligible for funding again,” said Legislative Auditor Jim Nobles.

However, Rep. Erin Murphy (DFL-St. Paul) said the Legislature should be cautious because the bill could blur the lines of authority between the House and the legislative auditor in determining whether a grant recipient is in compliance.

Her perspective was echoed by Bob Meier, Department of Natural Resources assistant commissioner. He said HF462, which was laid over for possible omnibus bill inclusion, could add another layer of bureaucracy to the Legacy process.

“If somebody falls out of compliance, we will make sure that we have a certificate of compliance or a letter from the auditor confirming that they’re in compliance before we issue those grants,” Meier said. “So we’re going to create a level of scrutiny that may or may not be needed.”

However, Nobles said he did not read the bill’s language the same way and suggested it would do nothing to change the current approach his office takes.

“The law says, ‘if we find someone out of compliance,’ that doesn’t mean we have to go and audit every appropriation all at once,” Nobles said.

Committee Chair Rep. Dean Urdahl (R-Grove City) agreed the bill wouldn’t result in “a mass audit” of every Legacy project, but directed the parties to work together to search for common ground.

Minnesota voters approved the Clean Water, Land and Legacy Amendment in 2008, increasing the state sales tax by three-eighths of 1 percent until 2034 to provide a dedicated revenue stream for Minnesota’s natural and cultural resources. Four funds were created help manage and distribute this money – the Clean Water Fund; the Outdoor Heritage Fund; the Arts and Cultural Heritage Fund; and the Parks and Trails Fund.

The companion bill, SF952, is sponsored by Sen. Scott Newman (R-Hutchinson) and awaits action by the Senate Environment and Energy Committee.


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