The proposed bill establishes an Office of Inspector General within the Minnesota legislative branch to enhance oversight and combat fraud, misuse, and unlawful use of public funds. The inspector general will be appointed for a six-year term and will operate independently while reporting to the Legislative Audit Commission. Key provisions include the inspector general's authority to conduct investigations, recommend sanctions against recipients of state funds, and collaborate with the legislative auditor. The bill also mandates the development of policies for reporting and investigating fraud allegations, the maintenance of a hotline for anonymous tips, and the requirement for public officials to assist the inspector general while prohibiting retaliation against whistleblowers.

Additionally, the bill amends Minnesota Statutes to transfer certain investigative responsibilities from the Departments of Education, Human Services, and Children, Youth, and Families to the newly established Office of Inspector General. It includes provisions for penalties for non-compliance with the inspector general's requests, mandates reporting of suspected fraud to the Legislative Audit Commission, and outlines the procedures for imposing sanctions on program participants found guilty of misconduct. The bill also emphasizes data privacy, allowing for the dissemination of investigative data to relevant agencies while ensuring confidentiality and protecting individuals who report misconduct. The new provisions are 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
2nd Engrossment: 3.97, 3.971, 609.456, 3.855, 16B.97, 16B.98, 16B.991, 142B.53, 245A.24, 268.19, 268B.30
3rd Engrossment: 3.97, 3.971, 609.456, 3.855, 16B.97, 16B.98, 16B.991, 142B.53, 245A.24, 268.19, 268B.30
4th Engrossment: 3.97, 3.971, 609.456, 3.855, 16B.97, 16B.98, 16B.991, 142B.53, 245A.24, 268.19, 268B.30