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Legislative Audit Commission


June 11, 2003

The Legislative Audit Commission meeting was called to order by Representative Tim Wilkin, Chair, at 1:05 P.M. in Room 200, State Office Building.

Members present:

Representative Lyndon Carlson Senator David Hann
Representative Sondra Erickson Senator Thomas Neuville
Representative Jeff Johnson Senator Ann H. Rest
Representative Aaron Peterson Senator Claire Robling
Representative Connie Ruth Senator Jim Vickerman
Representative Paul Thissen Senator Yvonne Prettner Solon
Representative Tim Wilkin

Members excused:

Representative Dan Larson Senator Richard Cohen
Senator Sheila Kiscaden

Representative Wilkin recognized James Nobles, Legislative Auditor. Mr. Nobles reviewed the special review report concerning a settlement between the Department of Commerce and American Bankers Insurance. He reviewed the allegations and methods used to investigate those allegations. He noted staff received the full cooperation of all parties involved in the investigation. Mr. Nobles reviewed the events leading up to the request for an investigation and the report findings and conclusions. He then answered questions from members.

Representative Wilkin recognized Mike Hatch, Attorney General. Attorney General Hatch reviewed the history of penalties and activities of American Bankers Insurance and the events prior to the settlement between the Department of Commerce and American Bankers Insurance. Mr. Hatch answered questions from members.

Senator Rest suggested that inasmuch as members had many unanswered questions and some of the principle people involved in the settlement were not present, that another meeting of the Commission be scheduled to hear testimony from those individuals. Those who will be asked to attend that meeting are Glenn Wilson, Commissioner of the Department of Commerce, Patrick Nelson, Deputy Commissioner, Scott Borchert, Tim Commers, and Gary Lavasseur, all of the Department of Commerce, as well as Tim Thornton, attorney representing American Bankers Insurance in the settlement negotiations.

Representative Wilkin recognized Mr. Nobles, who reviewed the seven evaluation topics recommended by the Legislative Audit Commission’s Topic Selection Subcommittee.

Senator Rest moved that the commission approve the seven topics for study by the Legislative Auditor’s Program Evaluation Division, with work to begin immediately on Medicaid home and community-based waivered services, Minnesota State Lottery, faculty and staff compensation at the University of Minnesota, and CriMNet; and work to begin as soon as staff are available on the No Child Left Behind Act of 2001, state E-government services, and coordinating technology across state agencies. Motion carried.

The meeting adjourned at 4:35 PM.

Representative Tim Wilkin, Chair

Jean Barnhill, Recording Secretary


Office of the Legislative Auditor ♦ Room 140, 658 Cedar St., St. Paul, MN 55155