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 other authorities, and must possess a relevant bachelor's degree and at least ten years of professional experience. An advisory commission will be created to recommend candidates for the Inspector General position, which requires 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 introduces the Office of the Inspector General Anti-Fraud and Waste Bureau, which will have law enforcement powers to investigate fraud and abuse statewide.

The bill also amends Minnesota Statutes to strengthen oversight of program participants receiving state or federal aid, particularly concerning allegations of fraud or misuse. It empowers the Inspector General to recommend sanctions, including withholding payments, based on credible evidence of fraud. The bill outlines a clear process for appealing sanctions and emphasizes the importance of timely notifications to affected parties. Furthermore, it transfers certain fraud investigation responsibilities from the Department of Education to the Inspector General and establishes new reporting requirements for the commissioner regarding fraud within the Medicaid program. The effective dates for various provisions are set for January 1, 2026, and July 1, 2025, for different sections.

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