The proposed bill establishes the Office of the Inspector General (OIG) in Minnesota, an independent entity tasked with ensuring accountability, transparency, and integrity within state agencies and programs. The OIG will operate independently from state executive branch agencies and report directly to the chief administrative law judge. The bill outlines the qualifications and appointment process for the Inspector General, who will have the authority to conduct investigations, issue subpoenas, and refer matters for civil or criminal action. It also mandates the publication of audit and investigation reports and requires the maintenance of a current exclusion list of individuals or programs under investigation. The bill includes provisions for the Legislative Inspector General Advisory Commission, which will recommend candidates for the Inspector General position and oversee the office's operations to ensure impartiality.

Additionally, the bill introduces new data classifications, ensuring that data from active investigations remains confidential until the investigation is complete, with certain exceptions. It expands the definition of "credible allegation of fraud" and transfers specific fraud investigation responsibilities from existing departments to the OIG. The bill allows for the temporary withholding of payments to providers when credible allegations of fraud arise and outlines the authority of the OIG to impose sanctions on program participants suspected of misconduct. It emphasizes the protection of data practices and confidentiality, prohibits retaliation against whistleblowers, and ensures that state employees cannot obstruct OIG investigations. The effective date for the new provisions is set for January 1, 2026, with the OIG required to be fully operational by September 1, 2026.

Statutes affected:
Introduction: 3.971, 15A.0815, 609.456, 142A.03, 142A.12, 144.05, 245.095, 256.01