The bill establishes an Office of the Inspector General within the legislative branch of Minnesota state government, tasked with investigating and addressing fraud, waste, and abuse in state-funded services. It outlines the inspector general's powers, including access to government data, conducting investigations, and reporting findings to the Legislative Audit Commission. The inspector general will be appointed for a six-year term and must have exceptional professional qualifications. The bill also introduces fraud reporting tools, such as a hotline and website for anonymous tips, and requires collaboration with the legislative auditor when credible fraud reports arise. Additionally, it enhances oversight by defining terms like "fraud," "abuse," and "waste," and establishes protections for whistleblowers.

Moreover, the bill mandates that state agencies report any identified fraud or misuse of public funds to law enforcement and the inspector general, ensuring full cooperation with investigations. It requires both state agencies and nonprofit organizations involved in grant agreements to display fraud reporting tools prominently on their websites. The legislation streamlines the reporting process for fraud, waste, and abuse, ensuring timely reporting to the inspector general. It includes appropriations for the inspector general and legislative auditor for fiscal years 2026 and 2027, abolishes certain fraud investigation duties in specific departments, and transfers those responsibilities to the inspector general. The bill is set to take effect on July 1, 2025.

Statutes affected:
1st Engrossment: 3.97, 3.971, 609.456, 3.855, 142B.53, 245A.24, 268.19, 268B.30