This bill establishes an Office of Inspector General within the Minnesota legislative branch to investigate and prevent fraud, misuse, and unlawful use of public funds. The inspector general, appointed by the Legislative Audit Commission for a six-year term, will operate independently and has the authority to conduct investigations, issue subpoenas, and recommend sanctions against those suspected of fraud. Key provisions include definitions related to fraud, protections against retaliation for whistleblowers, and requirements for public officials to cooperate with inquiries. The bill also mandates enhanced oversight of state grantmaking and requires the inspector general to coordinate with the legislative auditor on credible fraud reports.

Additionally, the bill amends Minnesota Statutes to transfer certain fraud investigation responsibilities from the Departments of Education, Human Services, and Children, Youth, and Families to the Office of the Inspector General. It includes provisions for penalties for non-compliance with the inspector general's directives, criminalizes false statements made to the inspector general, and requires annual reporting on public fund management. The legislation emphasizes transparency by mandating that agencies provide fraud reporting tools on their websites and include audit clauses in grant agreements. Overall, the bill aims to strengthen mechanisms for detecting and preventing fraud, thereby enhancing public trust in government financial management.

Statutes affected:
Introduction: 3.97, 3.971, 142B.53, 245A.24, 268.19, 268B.30
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