This bill establishes the Office of the Inspector General (OIG) in Minnesota as an independent entity within the executive branch, tasked with ensuring accountability, transparency, and integrity in state agencies and programs. The inspector general will be appointed by the governor based on recommendations from the Legislative Inspector General Advisory Commission and can only be removed for cause after a public hearing. The bill outlines the qualifications for the inspector general, including relevant educational and professional experience, and grants the office the authority to conduct investigations into fraud and misuse of public funds, coordinate with other agencies, and publish reports on its findings. It also mandates the maintenance of an exclusion list of individuals and programs under investigation and includes provisions for the inspector general to alert agency heads and seek court orders to freeze public funds if fraud is suspected.

Additionally, the bill creates the Office of the Inspector General Anti-Fraud and Waste Bureau, which will have law enforcement powers starting January 1, 2028, to conduct statewide investigations and make arrests related to fraudulent activities involving state agencies. It includes provisions for the bureau to develop policies for coordination with other law enforcement agencies and mandates annual reporting on its activities. The bill also introduces new definitions related to data practices, clarifying the inspector general's access to various data types and the confidentiality of data during civil investigations. Furthermore, it establishes the Legislative Inspector General Advisory Commission, outlines employee transition provisions, and appropriates funds for the OIG's establishment and operation, with most provisions set to take effect on January 1, 2027.

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
11th Engrossment: 3.971, 15A.0815, 609.456, 43A.32, 127A.21, 142A.03, 142A.12, 144.05, 245.095, 256.01
1st Unofficial Engrossment: 3.971, 15A.0815, 609.456, 127A.21, 142A.03, 142A.12, 144.05, 245.095, 256.01
2nd Unofficial Engrossment: 3.971, 15A.0815, 609.456, 127A.21, 142A.03, 142A.12, 144.05, 245.095, 256.01
3rd Unofficial Engrossment: 3.971, 15A.0815, 609.456, 43A.32, 127A.21, 142A.03, 142A.12, 144.05, 245.095, 256.01
4th Unofficial Engrossment: 3.971, 15A.0815, 609.456, 43A.32, 127A.21, 142A.03, 142A.12, 144.05, 245.095, 256.01