This bill establishes a new Office of the Inspector General within the state government to improve oversight and accountability concerning fraud, waste, and abuse in public programs. It grants the inspector general the authority to investigate fraud allegations, develop a fraud reporting hotline, and require state agencies to suspend payments when fraud is suspected. The bill also mandates coordination with the legislative auditor and requires reporting of documented fraud or waste to the Legislative Audit Commission, which may result in budget reductions for the implicated agency. Additionally, it repeals existing agency-based offices of inspector general and appropriates funds for the new office, while including protections for whistleblowers and prohibiting state employees from interfering with investigations.

The bill further amends existing Minnesota statutes to streamline the reporting of suspected fraud and restructure oversight responsibilities. It requires individuals involved in licensing functions to report suspected fraud to county investigators, replacing references to the Department of Children, Youth, and Families and the Department of Human Services with the Inspector General. The bill also abolishes the Offices of Inspector General in the Departments of Education, Human Services, and Children, Youth, and Families, transferring their responsibilities to the new Inspector General. It includes provisions for data privacy, ensuring confidentiality of data collected under the Minnesota Unemployment Insurance Law, and establishes a timeline for the transition of oversight responsibilities. Overall, the bill aims to enhance the efficiency of fraud reporting processes and strengthen accountability in state programs while protecting sensitive data and the rights of whistleblowers.

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