This bill establishes a new Office of the Inspector General within the state government to improve oversight and accountability in the use of public funds. It outlines the inspector general's powers and duties, including investigating fraud, waste, and abuse in state programs, creating a fraud reporting hotline, and requiring state agencies to suspend payments when fraud is suspected. The bill also mandates coordination with the legislative auditor and reporting of documented fraud to the Legislative Audit Commission, which may result in budget reductions for the implicated agency. Existing agency-based offices of inspector general will be abolished, and all active investigations, personnel, and resources will be transferred to the new office to streamline fraud detection and prevention.

Furthermore, the bill modifies reporting requirements for individuals involved in licensing functions, specifying that suspected fraud must be reported to county investigators and the Inspector General. It includes provisions for data privacy, allowing certain data to be shared without consent, and repeals outdated statutes related to previous Inspector General offices. The bill enhances the authority of the Inspector General regarding investigations, allowing for temporary sanctions against program participants and establishing a process for notifying them of sanctions and their right to appeal. It also clarifies that sharing information with the inspector general does not violate confidentiality rights and emphasizes the protection of sensitive data and whistleblower rights.

Statutes affected:
Introduction: 3.97, 3.971, 142B.53, 245A.24, 268.19, 268B.30