The proposed bill establishes the Office of the Inspector General in Minnesota as 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, issue subpoenas, and publish reports on findings. The bill also creates the Legislative Inspector General Advisory Commission to recommend candidates for the Inspector General position and mandates that the office operates without partisan influences. Additionally, the Inspector General will have the power to appoint peace officers and establish a law enforcement agency, the Office of the Inspector General Anti-Fraud and Waste Bureau, which will focus on fraud and abuse investigations.

Furthermore, the bill amends Minnesota Statutes to enhance the authority of the commissioner regarding sanctions and the withholding of payments in cases of fraud or misuse within state-administered programs. It removes the term "temporary" in relation to sanctions, allowing for more permanent measures against program participants found to have committed fraud. The bill also expands the definition of a "credible allegation of fraud" and establishes clearer procedures for notifying program participants of sanctions and their right to appeal. Overall, these changes aim to improve oversight and accountability in the administration of public funds, with many provisions set to take effect on January 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