The proposed bill establishes the Office of the Inspector General (OIG) in Minnesota, an independent entity tasked with ensuring accountability and integrity within state agencies. The OIG will have the authority to conduct investigations, issue subpoenas, and refer cases for civil or criminal action. It will also maintain a current exclusion list of individuals or programs under investigation and publish reports on audits and investigations. The bill creates the Legislative Inspector General Advisory Commission to recommend candidates for the Inspector General position and emphasizes nonpartisanship and ethical conduct. It includes provisions for the transition of employees from existing inspector general offices and mandates that the OIG be fully operational by September 1, 2026.

Additionally, the bill outlines the OIG's responsibilities in investigating fraud and misuse of public funds across various departments, including Education and Human Services. It requires the OIG to enter into an interagency agreement with the Department of Children, Youth, and Families by December 31, 2026, and appropriates funds for its establishment and operations for fiscal years 2026 and 2027. The bill expands the definition of "credible allegation of fraud" and transfers certain existing duties related to fraud investigations to the OIG. It also establishes procedures for imposing sanctions on program participants suspected of misconduct, while ensuring protections for whistleblowers and confidentiality of data practices.

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