This bill establishes a new Office of the Inspector General (OIG) within the state government to improve oversight and accountability in the use of public funds. It outlines the powers and responsibilities of the inspector general, including investigating fraud, waste, and abuse in state programs, creating a fraud reporting hotline, and requiring state agencies to suspend payments when fraud is suspected. The bill also mandates coordination with the legislative auditor and reporting of documented fraud to the Legislative Audit Commission, which may result in budget reductions for the implicated agency. Existing agency-based offices of inspector general in the Departments of Education, Human Services, and Children, Youth, and Families will be abolished, with all active investigations, personnel, and resources transferred to the new OIG.

Furthermore, the bill modifies reporting requirements for individuals involved in licensing functions, directing them to report suspected fraud to county investigators and the OIG instead of the previously designated departments. It includes provisions for data privacy, allowing for the sharing of information while maintaining confidentiality, and emphasizes the protection of whistleblowers by prohibiting retaliation against those who report misconduct. The bill also establishes procedures for imposing sanctions on program participants found engaging in misconduct, including withholding payments and terminating contracts, while ensuring participants have the right to appeal these sanctions. Overall, the legislation aims to enhance accountability and transparency in state programs while safeguarding the rights of whistleblowers.

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