The proposed bill establishes the Office of the Inspector General in Minnesota, an independent entity tasked with ensuring accountability, transparency, and integrity within state agencies and programs. The Inspector General will operate independently from state executive branch agencies and report directly to the chief administrative law judge. The bill outlines the qualifications, appointment process, and powers of the Inspector General, including the authority to conduct investigations, issue subpoenas, and refer matters for civil or criminal action. It also mandates the publication of reports on audits and investigations 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 and effectiveness.

Additionally, the bill introduces new data classifications, stating that data from active investigations will be confidential until the investigation is complete, with certain exceptions. It expands the definition of "credible allegation of fraud" and abolishes specific duties related to fraud investigations in certain departments, transferring those responsibilities to the new Office of the Inspector General. The bill also outlines the authority for the Office to impose sanctions on program participants suspected of fraud, waste, or abuse, and emphasizes the protection of data practices and confidentiality. It includes provisions to prevent retaliation against whistleblowers and ensures that state employees cannot obstruct investigations. The effective date for the new provisions is set for January 1, 2026, with the Office 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