This bill establishes the Office of the Inspector General in Minnesota as an independent entity tasked with ensuring accountability, transparency, and integrity in state agency operations. The inspector general will report directly to the governor, free from interference by executive or legislative authorities. The bill outlines qualifications for the inspector general, including a relevant bachelor's degree and ten years of professional experience, and details the appointment process involving recommendations from the Legislative Inspector General Advisory Commission and Senate confirmation. The inspector general will have the authority to conduct investigations, publish reports, and recommend legislative changes to enhance program efficiency. Additionally, the bill creates the Office of the Inspector General Anti-Fraud and Waste Bureau, which will have law enforcement powers to investigate fraud and abuse statewide.

The legislation also amends Minnesota Statutes to enhance oversight of program participants receiving state or federal aid, particularly concerning allegations of fraud, waste, or misuse. It introduces new sanctions that can be imposed on participants pending investigations, including prohibiting participation in other programs and withholding payments. The bill clarifies the definitions of program participants and outlines the notification process for sanctions, ensuring participants are informed of their rights to appeal. Furthermore, it enhances the authority of the commissioner regarding the withholding of payments in cases of suspected fraud and mandates the submission of final investigative reports related to fraud within the Medicaid program to the Office of the Inspector General. The bill sets effective dates for these provisions, with many taking effect on January 1, 2026, and the Office of the Inspector General required to be fully operational by September 1, 2026.

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
9th Engrossment: 3.971, 15A.0815, 609.456, 142A.03, 142A.12, 144.05, 245.095, 256.01
10th Engrossment: 3.971, 15A.0815, 609.456, 13.82, 127A.21, 142A.03, 142A.12, 144.05, 181.932, 245.095, 256.01, 626.84