The proposed bill establishes the Office of the Inspector General in Minnesota, an independent entity tasked with ensuring accountability, transparency, and integrity within state agencies and programs. The Inspector General will report directly to the governor and will have the authority to conduct investigations, publish reports, and recommend legislative changes. The bill also creates the Legislative Inspector General Advisory Commission to recommend candidates for the Inspector General position and mandates the Inspector General to disclose any political affiliations prior to confirmation. Additionally, the Inspector General will investigate fraud and misuse of public funds, with specific responsibilities related to various departments, and is empowered to alert agencies of potential fraud, freeze funds, and establish an Anti-Fraud and Waste Bureau.

The bill includes provisions for the Inspector General to issue subpoenas, requires cooperation from public officials during investigations, and emphasizes transparency through public reporting on audits. It mandates the establishment of the Office of the Inspector General by January 1, 2026, with full operational status by September 1, 2026, and ensures the transition of employees from existing offices while maintaining their employment status. The bill also amends Minnesota Statutes to clarify sanctions and payment withholding procedures in educational and library programs, empowering the commissioner to act on credible allegations of fraud. It expands protections for employees reporting fraud and outlines notification processes for affected program participants. The effective dates for various provisions are set for January 1, 2026, and July 1, 2025.

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