Signed by Governor Tim Walz

Vote Smart's Synopsis:

Vote to amend and pass a bill that establishes the Office of Inspector General to oversee public funds in Minnesota.

Highlights:

• Establishes an Office of the Inspector General that operates independently from state agencies and reports to the chief administrative law judge (Art. 1).

• Requires the legislative auditor to report all reports from the public about potential fraud or misuse to the inspector general (Art. 1).

• Establishes educational and professional requirements for the individual appointed as Inspector General, and prohibits individuals who hold or have held certain positions in state government from appointment (Art. 1).

• Authorizes the Legislative Inspector General Advisory Commission to recommend candidates for inspector general after a competitive process, and requires the chief judge of the Office of Administrative Hearings to appoint an inspector general from among the recommended candidates (Art. 1).

• Specifies that the Inspector General serves a term of five years, and may serve unlimited terms (Art. 1).

• Requires a candidate for Inspector General to disclose political affiliations, appointments, or other partisan activities prior to confirmation (Art. 1).

• Requires the Inspector General to perform duties of the office without regard to partisan preference or influence, and prohibits them from engaging in any partisan activity while serving (Art. 1).

• Specifies that the Inspector General may only be removed for cause by the chief judge of the Office of Administrative Hearings after a public hearing and approval of the state House and Senate (Art. 1).

• Requires the Inspector General to conduct inspections, evaluations, and investigations of state executive branch agencies and programs to identify fraud, make recommendations for changes to programs to prevent fraud and misuse, and protect the integrity of the use of public funds (Art. 1).

• Requires the Inspector General to refer matters to appropriate authorities for civil, criminal, or administrative action and may recommend legislative or policy changes to improve program efficiency and effectiveness, and publish reports on the office’s work (Art. 1).

• Requires the Inspector General to investigate public and private entities that receive state funds to ensure compliance with laws, proper use of funds, and adherence to program requirements (Art. 1).

• Authorizes the Inspector General to alert agency heads on an emergency basis when it has a reasonable suspicion that fraud or misuse is being committed, with a recommendation to freeze or cease distribution of funds (Art. 1).

• Authorizes the Inspector General to perform its duties and apply its authority without approval from an agency (Art. 1).

• Requires that agency heads and contracted nonprofit organizations prominently highlight a fraud reporting tool on the websites for their agencies (Art. 1).

• Specifies that the Inspector General is subject to the Government Data Practices Act (Art. 1).

• Requires the Inspector General to issue public reports detailing completed audits, investigations, and corrective actions, and to maintain a phone and website for the public to anonymously report fraud and misuse (Art. 1).

• Expands the list of conduct an employee or officer of the state, the University of Minnesota, or certain other organizations must report to the legislative auditor or Inspector General to include fraud (Art. 1).

• Requires the commissioners of children, youth, and families; human services; and health to submit final investigative reports to the Inspector General (Art. 2).

• Repeals the duties pertaining to fraud, abuse, and other unlawful use of public funds in an existing Office of Inspector General when the new Inspector General certifies it has assumed those duties (Art. 2).

Full Bill Text