Friends and Neighbors,
Last week began as most do during this time of the year in the legislature. Unfortunately, unforeseen circumstances have put a halt on proceedings until more is learned. While I am prepared to comment on what I believe the correct course of action should be for our legislative body, I’d like to take the opportunity to share information that was recently released regarding the state Attorney General’s Office and a report released by the Office of the Legislative Auditor.
Office of The Legislative Auditor – “State Grant Processes”
On Thursday, April 25, the Minnesota Office of the Legislative Auditor (OLA) released a report following an audit of state agencies’ compliance with the Office of Grants Management (OGM) policies. The report, titled Grant Award Processes, shows that the Department of Human Services’ (DHS) Behavioral Health Division (BHD) has failed to keep records regarding conflicts of interest where the reviewer might benefit from a grant being awarded to a certain applicant.
The OLA had similar findings in a 2021 audit, suggesting these issues are pervasive and often go unaddressed.
As a member of the Legislative Audit Commission (LAC), this is not a surprise. For years, we have been calling out the overwhelming need for more oversight in the state’s grants processes. With millions of state dollars going out the door each year in grants, it’s our job to hold both government and non-profits accountable in order to prevent any misuse of these funds.
Additionally, the report found:
- OGM policy does not establish sufficient standards for single/sole source grant justification.
- In the absence of statewide requirements, state agencies have used a variety of approaches to form grant review panels.
- BHD did not comply with the state’s pre-award risk assessment requirements for more than 40 percent of grants reviewed. Minnesota State Arts Board (MSAB) did not complete pre-award risk assessments for the few grants it awarded without a competitive process.
I look forward to further discussing the OLA’s recommendations with the Legislative Audit Commission. We’ll aim to provide great clarity around our expectations for foundational documentation requirements to ensure the prevention of any conflicts of interest.
Letter to Attorney General Ellison
On April 9, I signed a joint letter with Senator Andrew Mathews and Representative Jim Nash addressed to Attorney General Keith Ellison after learning about some disturbing allegations of his office’s involvement in a pending Ramsey County court case, State of Minnesota v. American Petroleum Institute, et al., against a select group of energy companies and a trade association (the “Minnesota climate litigation”).
Per a recently released report, while AG Ellison and his Office are employing two Special Attorneys General to prepare and handle the litigation, their wages are being paid by New York billionaire Michael Blomberg through the New York University School of Law’s State Energy & Environment Impact Center. Furthermore, the litigation itself was initially proposed by, among others, the New York-based Rockefeller Family Fund, the D.C.-based Center for Climate Integrity, and Minnesota-based Fresh-Energy organizations.
We also learned AG Keith Ellison and his Office have engaged with a San Francisco-based law firm, Sher Edling, LLP in a highly lucrative fee agreement. Even though the agreement is based on the State recovering damages – what he compared to the “$7 billion 1998 settlement with the tobacco industry” – the contract suggested the payout to the law firm could be more than half a billion dollars. This information was only made available to the public after an open records request was made by the organization Government Accountability and Oversight (GAO), contrary to the AG’s Office, past practice of disclosing contracts.
There are many more factors at play that raise red flags and questions that need to be answered, such as:
- Why did the AG’s Office retain Sher Edling, LLC to litigate the MN climate litigation even though they were already employing two Spec. Asst. Attorneys General to work on it full-time?
- Why wasn’t the contract information disclosed to the Legislative Audit Commission or the public until it was asked for through an open records request?
- Who are the others that have funded the Minnesota climate litigation, Sher Edling’s work in climate litigation, and how much money in received annually from each entity?
- Did Sher Edling, LLC or any of their employed attorneys donate to AG Ellison’s 2022 election campaign?
On face value, this is “lawfare” being used by our highest state law enforcement official. Using tort law in an effort to provide kickbacks to law firms to funnel dark money for politically-motivated climate change lawsuits is not only illegal, it’s unethical and further casts a shadow of distrust for Minnesota residents. I hope Attorney General Ellison has some common sense answers to our questions and this was all a big misunderstanding. If not, I’m prepared to take action to ensure our legal system isn’t weaponized to harm Minnesota residents.
Contact Me
Please don’t ever hesitate to reach out! I truly believe I’m a better legislator when I hear your feedback. I can be reached via email at Sen.Mark.Koran@mnsenate.gov or 651-296-5419. My Legislative Assistant, Melissa Field, is also a great resource if you need assistance! She can be reached at Melissa.Field@mnsenate.gov or 651-296-6200.
I’m looking forward to seeing you in the community soon!
Sincerely,
Minnesota Senate, District 28