The proposed bill establishes the Office of the Inspector General (OIG) in Minnesota, an independent entity tasked with ensuring accountability, transparency, and integrity within state agencies. The OIG will operate independently from state executive branch agencies and report directly to the chief administrative law judge. The bill outlines the qualifications and appointment process for the Inspector General, who will have the authority to conduct investigations, issue subpoenas, and refer cases for civil or criminal action. It also mandates the publication of audit and investigation reports and requires the maintenance of an exclusion list for individuals or programs under investigation. The bill includes provisions for the Legislative Inspector General Advisory Commission, which will recommend candidates for the Inspector General position and oversee the office's operations to ensure impartiality.

Additionally, the bill introduces new data classifications, stating that data from active investigations will be confidential until the investigation is complete, with certain exceptions. It appropriates funds from the general fund to support the OIG's operations in fiscal years 2026 and 2027 and requires the OIG to enter into interagency agreements with the Department of Children, Youth, and Families by December 31, 2026. The bill also expands the definition of "credible allegation of fraud" and transfers existing fraud investigation responsibilities to the OIG while repealing outdated statutes. It emphasizes the protection of data practices and confidentiality, prohibits retaliation against whistleblowers, and ensures that state employees cannot obstruct OIG investigations. The effective dates for various provisions are set for January 1, 2026, and July 1, 2025, contingent upon the OIG's readiness.

Statutes affected:
1st Engrossment: 3.971, 15A.0815
2nd Engrossment: 3.971, 15A.0815
3rd Engrossment: 3.971, 15A.0815
4th Engrossment: 3.971, 15A.0815, 142A.03, 256.01
5th Engrossment: 3.971, 15A.0815, 142A.03, 142A.12, 144.05, 245.095, 256.01
6th Engrossment: 3.971, 15A.0815, 142A.03, 142A.12, 144.05, 245.095, 256.01
7th Engrossment: 3.971, 15A.0815, 142A.03, 142A.12, 144.05, 245.095, 256.01
8th Engrossment: 3.971, 15A.0815, 609.456, 142A.03, 142A.12, 144.05, 245.095, 256.01