The proposed bill establishes the Office of the Inspector General (OIG) in Minnesota, an independent entity tasked with ensuring accountability and transparency in state agencies and programs. The OIG will report directly to the chief administrative law judge and will have the authority to conduct investigations, issue subpoenas, and refer cases for civil or criminal action. The bill mandates the publication of investigation reports and the creation of a fraud reporting tool on agency websites. It also includes provisions for the OIG's nonpartisanship, conflict of interest regulations, and requires public officials to cooperate with investigations. The bill sets an effective date for the establishment of the OIG as January 1, 2026, and includes appropriations from the general fund for its operational needs in fiscal years 2026 and 2027.

Additionally, the bill amends existing statutes to enhance the OIG's role in monitoring fraud, particularly in programs related to child care assistance and nutrition. It expands the definition of "credible allegation of fraud" and transfers certain fraud investigation responsibilities from the Departments of Education, Human Services, and Children, Youth, and Families to the OIG. The bill also outlines procedures for imposing sanctions on program participants found engaging in misconduct, while ensuring the protection of data practices and confidentiality. It prohibits retaliation against whistleblowers and emphasizes the importance of maintaining the integrity of investigations, ultimately aiming to bolster accountability within state programs.

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