This bill establishes the Office of the Inspector General (OIG) in Minnesota, which will operate independently to ensure accountability, transparency, and integrity within state agencies and programs. The inspector general will be appointed by the governor based on recommendations from the Legislative Inspector General Advisory Commission and will serve a five-year term. The bill outlines qualifications for the inspector general, including relevant educational background and professional experience, and mandates that the position operates without partisan influence. The OIG will have the authority to conduct investigations, issue subpoenas, and publish reports, while also requiring state agencies and nonprofit organizations receiving state funds to highlight fraud reporting tools on their websites. The new provisions will take effect on January 1, 2026.

Additionally, the bill amends existing statutes to enhance the OIG's authority regarding investigations into fraud, waste, and misuse of public funds, particularly in programs like child care assistance and the special supplemental nutrition program. It expands the definition of "credible allegation of fraud" and allows for temporary withholding of payments to providers when credible allegations arise. The bill also establishes a process for notifying participants of sanctions and provides them with the right to appeal through a contested case proceeding. It includes provisions to protect confidential data, prohibits retaliation against whistleblowers, and ensures that state employees cannot interfere with investigations, ultimately aiming to strengthen oversight and accountability in state programs.

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