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A bill for an act
relating to state government; creating the Office of the State Inspector General;
creating an advisory committee; requiring reports; transferring certain agency
duties; placing limits and prohibiting certain programs from receiving public funds;
making conforming and technical changes; providing for interagency agreements;
appropriating money; amending Minnesota Statutes 2024, sections 3.971, by adding
a subdivision; 15A.0815, subdivision 2; 127A.21, subdivision 1a, by adding
subdivisions; 142A.03, by adding a subdivision; 142A.12, subdivision 5; 144.05,
by adding a subdivision; 245.095, subdivision 5; 256.01, by adding a subdivision;
609.456, subdivision 2; Minnesota Statutes 2025 Supplement, sections 10A.01,
subdivision 35; 127A.21, subdivision 5; proposing coding for new law as Minnesota
Statutes, chapter 15E.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
OFFICE OF THE STATE INSPECTOR GENERAL
Section 1.
Minnesota Statutes 2024, section 3.971, is amended by adding a subdivision
to read:
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Subd. 3b.
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Public reports of fraud and misuse.
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Notwithstanding the classification of
data as not public, the legislative auditor must refer all reports from the public about potential
fraud or misuse, as those terms are defined in chapter 15E, to the state inspector general.
The legislative auditor may coordinate reviews and investigations with the state inspector
general when coordination conserves resources and does not compromise the reviews or
investigations.
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Sec. 2.
Minnesota Statutes 2025 Supplement, section 10A.01, subdivision 35, is amended
to read:
Subd. 35.
Public official.
"Public official" means any:
(1) member of the legislature;
(2) individual employed by the legislature as secretary of the senate, legislative auditor,
director of the Legislative Budget Office, chief clerk of the house of representatives, revisor
of statutes, or researcher, legislative analyst, fiscal analyst, or attorney in the Office of
Senate Counsel, Research and Fiscal Analysis, House Research, or the House Fiscal Analysis
Department;
(3) constitutional officer in the executive branch and the officer's chief administrative
deputy;
(4) solicitor general or deputy, assistant, or special assistant attorney general;
(5) commissioner, deputy commissioner, or assistant commissioner of any state
department or agency as listed in section
15.01
or
15.06
, or the state chief information
officer;
(6) member, chief administrative officer, or deputy chief administrative officer of a state
board or commission that has either the power to adopt, amend, or repeal rules under chapter
14
, or the power to adjudicate contested cases or appeals under chapter
14
;
(7) individual employed in the executive branch who is authorized to adopt, amend, or
repeal rules under chapter
14
or adjudicate contested cases under chapter
14
;
(8) executive director of the State Board of Investment;
(9) deputy of any official listed in clauses (7) and (8);
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(10) the state inspector general;
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(10)
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(11)
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judge of the Workers' Compensation Court of Appeals;
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(11)
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(12)
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administrative law judge or compensation judge in the State Office of
Administrative Hearings or unemployment law judge in the Department of Employment
and Economic Development;
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(12)
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(13)
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member, regional administrator, division director, general counsel, or operations
manager of the Metropolitan Council;
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(13)
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(14)
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member or chief administrator of a metropolitan agency;
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(14)
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(15)
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director of the Division of Alcohol and Gambling Enforcement in the
Department of Public Safety;
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(15)
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(16)
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member or executive director of the Health and Education Facilities Authority;
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(16)
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(17)
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member of the board of directors or president of Enterprise Minnesota, Inc.;
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(17)
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(18)
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member of the board of directors or executive director of the Minnesota State
High School League;
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(18)
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(19)
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member of the Minnesota Ballpark Authority established in section
473.755
;
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(19)
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(20)
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citizen member of the Legislative-Citizen Commission on Minnesota Resources;
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(20)
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(21)
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manager of a watershed district, or member of a watershed management
organization as defined under section
103B.205, subdivision 13
;
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(21)
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(22)
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supervisor of a soil and water conservation district;
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(22)
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(23)
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director of Explore Minnesota Tourism;
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(23)
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(24)
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citizen member of the Lessard-Sams Outdoor Heritage Council established in
section 97A.056;
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(24)
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(25)
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citizen member of the Clean Water Council established in section
114D.30
;
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(25)
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(26)
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member or chief executive of the Minnesota Sports Facilities Authority
established in section
473J.07
;
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(26)
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(27)
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district court judge, appeals court judge, or supreme court justice;
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(27)
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(28)
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county commissioner;
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(28)
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(29)
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member of the Greater Minnesota Regional Parks and Trails Commission;
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(29)
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(30)
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member of the Destination Medical Center Corporation established in section
469.41
; or
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(30)
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(31)
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chancellor or member of the Board of Trustees of the Minnesota State Colleges
and Universities.
Sec. 3.
Minnesota Statutes 2024, section 15A.0815, subdivision 2, is amended to read:
Subd. 2.
Agency head salaries.
The salary for a position listed in this subdivision shall
be determined by the Compensation Council under section
15A.082
. The commissioner of
management and budget must publish the salaries on the department's website. This
subdivision applies to the following positions:
Commissioner of administration;
Commissioner of agriculture;
Commissioner of education;
Commissioner of children, youth, and families;
Commissioner of commerce;
Commissioner of corrections;
Commissioner of health;
Commissioner, Minnesota Office of Higher Education;
Commissioner, Minnesota IT Services;
Commissioner, Housing Finance Agency;
Commissioner of human rights;
Commissioner of human services;
Commissioner of labor and industry;
Commissioner of management and budget;
Commissioner of natural resources;
Commissioner, Pollution Control Agency;
Commissioner of public safety;
Commissioner of revenue;
Commissioner of employment and economic development;
Commissioner of transportation;
Commissioner of veterans affairs;
Executive director of the Gambling Control Board;
Executive director of the Minnesota State Lottery;
Executive director of the Office of Cannabis Management;
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State inspector general;
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Commissioner of Iron Range resources and rehabilitation;
Commissioner, Bureau of Mediation Services;
Ombudsman for mental health and developmental disabilities;
Ombudsperson for corrections;
Chair, Metropolitan Council;
Chair, Metropolitan Airports Commission;
School trust lands director;
Executive director of pari-mutuel racing;
Commissioner, Public Utilities Commission;
Chief Executive Officer, Direct Care and Treatment; and
Director of the Office of Emergency Medical Services.
Sec. 4.
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[15E.01] OFFICE OF THE STATE INSPECTOR GENERAL.
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(a) The state inspector general serves as an independent entity responsible for ensuring
accountability, transparency, and integrity in the operations of state agencies and programs.
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(b) In exercising the state inspector general's powers and duties, the state inspector
general is in the executive branch and must operate independently of all state executive
branch agencies and report directly to the governor. The state inspector general is not subject
to direction or interference from any executive or legislative authority.
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(c) The state inspector general shall direct an Office of the State Inspector General.
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(d) The state inspector general serves in the unclassified service.
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EFFECTIVE DATE.
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This section is effective July 1, 2027.
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Sec. 5.
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[15E.02] DEFINITIONS.
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For the purposes of this chapter, the following terms have the meanings given:
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(1) "agency program" means a program funded or administered by a state agency,
including grants and contracts;
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(2) "fraud" means an intentional or deceptive act or failure to act in order to gain an
unlawful benefit;
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(3) "investigation" means an audit, review, or inquiry conducted by the inspector general
to detect or prevent fraud or misuse;
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(4) "misuse" means improper use of authority or position for personal gain or to cause
harm to others, including the improper use of public resources or programs contrary to the
intended purpose; and
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(5) "personal gain" means a benefit to a person; to a person's spouse, parent, child, or
other legal dependent; or to an in-law of the person or the person's child.
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EFFECTIVE DATE.
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This section is effective July 1, 2027.
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Sec. 6.
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[15E.03] STATE INSPECTOR GENERAL.
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Subdivision 1.
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Minimum qualifications.
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(a) To be eligible for appointment as state
inspector general, a candidate must:
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(1) have a bachelor's or higher degree in criminal justice, public administration, law, or
a related field;
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(2) have at least ten years of professional experience in auditing, investigations, law
enforcement, or a related area;
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(3) hold a professional certificate from the Association of Inspectors General, including
Certified Inspector General or Certified Inspector General Investigator; and
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(4) demonstrate a commitment to safeguarding the mission of public service and provide
a public disclosure of prior professional opinions, positions, or actions that may influence
the candidate's approach to the role.
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(b) Current or former commissioners, agency heads, deputy agency heads, governors,
or legislators are not eligible to serve as state inspector general within five years of service
in any of these positions. A person elected to an office other than the governor or legislature
is not eligible until ten years after the end of service in an elected position.
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Subd. 2.
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Appointment.
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The Legislative Inspector General Advisory Commission must
recommend candidates for inspector general after completing a competitive process from
among eligible applicants for the position of inspector general. To be recommended by the
commission, a candidate must be approved for recommendation by five of the eight members
of the commission. The commission must assess eligible candidates based on qualifications,
including experience in auditing, financial analysis, public administration, law enforcement,
or related fields. The state inspector general is appointed by the governor after consideration
of recommendations from the Legislative Inspector General Advisory Commission with
the advice and consent of the senate.
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Subd. 3.
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Term.
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The state inspector general serves a five-year term and may be appointed
to unlimited additional terms with the advice and consent of the senate.
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Subd. 4.
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Vacancy.
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The Legislative Inspector General Advisory Commission must provide
recommendations to the governor for appointment to fill a vacancy in the position of the
state inspector general within 90 days of a vacancy occurring or within 60 days of being
advised by the state inspector general that a vacancy is expected to occur. The governor
must appoint a state inspector general within 30 days of receiving recommendations from
the Legislative Inspector General Advisory Commission or within 45 days of a vacancy
occurring if the advisory commission does not provide recommendations within the time
allotted for recommendations under this subdivision.
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Subd. 5.
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Disclosure.
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A candidate considered by the Legislative Inspector General
Advisory Commission or selected for appointment by the governor must disclose all political
affiliations, appointments, campaign work, or partisan activities prior to confirmation.
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Subd. 6.
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Nonpartisanship.
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The state inspector general, and all employees of the office,
must perform duties of the office without regard to partisan preferences or influences. While
serving, the state inspector general, and all employees of the office, must not engage in
partisan activities, campaign work, or public political speech, unless the activity, campaign
work, or public political speech is protected by the Minnesota or United States Constitution.
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Subd. 7.
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Removal.
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The state inspector general may only be removed by the governor
before the expiration of the term for cause after a public hearing conducted by the governor
and with approval of both the senate and the house of representatives.
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EFFECTIVE DATE.
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This section is effective January 1, 2027.
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Sec. 7.
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[15E.04] POWERS AND DUTIES.
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Subdivision 1.
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Authorized powers and responsibilities.
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The state inspector general is
authorized and responsible to:
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(1) conduct inspections, evaluations, and investigations of state executive branch agencies
and programs according to professional auditing standards to: (i) identify fraud and misuse;
(ii) make recommendations for changes to programs to prevent fraud and misuse; and (iii)
protect the integrity of the use of public funds, data, and systems;
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(2) refer matters for civil, criminal, or administrative action to the Bureau of Criminal
Apprehension, the attorney general's office, or other appropriate authorities;
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(3) recommend legislative or policy changes to improve program efficiency and
effectiveness;
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(4) publish reports on completion of an audit or investigation summarizing findings,
recommendations, and outcomes of the inspector general's activities;
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(5) investigate any public or private entity that receives public funds to ensure compliance
with applicable laws, proper use of funds, and adherence to program requirements;
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(6) submit an annual report summarizing the work of the office to the Legislative
Inspector General Advisory Commission and make the report publicly available by posting
the report on the inspector general's website. The report must include the implementation
status of recommendations the state inspector general has provided to state agency heads;
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(7) alert relevant commissioners or heads of agencies when the state inspector general
has a reasonable suspicion that fraud or misuse is being committed, whether or not the state
inspector general is conducting an investigation, as provided in subdivision 3; and
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(8) establish and maintain a current exclusion list in a format readily accessible to
agencies and shared pursuant to section 13.39, that identifies each program and individual
for which the state inspector general has obtained a court order to freeze or cease distribution
of funds, an agency has otherwise sanctioned or terminated a grant or contract, payments
have been withheld, or the state inspector general has made a recommendation under
subdivision 3, paragraph (b), to freeze or cease distribution of funds.
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Subd. 2.
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Relationship to powers and duties of other agencies.
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(a) The state inspector
general has oversight over agency inspector general offices and has authority to investigate
fraud and misuse of public funds across all programs administered by state agencies and
has access to all agency inspector general investigative files. To the extent resources allow,
agency inspector general offices must maintain investigative files in a format and manner
consistent with those of the state inspector general.
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(b) The state inspector general may establish policies and procedures that must be
followed by the agency inspector general offices.
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(c) The oversight of a Medicaid investigation within the Department of Human Services
or establishment of policies and procedures by the human services inspector general must
remain within the requirements of Code of Federal Regulations, title 42, section 431.10(e),
or other federal requirements.
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(d) The state inspector general may perform the state inspector general's duties and apply
the state inspector general's authority without obtaining approval from another agency.
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(e) The Department of Human Services has primary responsibility to investigate fraud
in the Medicaid program, and the state inspector general has authority to conduct independent
investigations related to the Medicaid program as necessary.
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(f) The Department of Children, Youth, and Families has primary responsibility to
investigate fraud in child care programs under chapters 142D and 142E, and the state
inspector general has authority to conduct independent investigations related to the child
care programs under chapters 142D and 142E.
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(g) The Department of Health has primary responsibility to investigate fraud related to
Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) and food
support programs, and the state inspector general has authority to conduct independent
investigations related to WIC and food support programs.
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(h) The Department of Education has primary responsibility to investigate fraud related
to programs the department administers, and the state inspector general has authority to
conduct independent investigations related to programs administered by the Department of
Education.
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(i) The state inspector general has concurrent authority over general compliance reviews,
information technology security audits, or administrative program integrity assessments
that are related to fraud or misuse.
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(j) The state inspector general must refer all reports from the public about potential fraud
or misuse to the legislative auditor, the commissioner of human services for reports related
to Medicaid, the commissioner of children, youth, and families for reports related to child
care programs, the commissioner of health for reports related to WIC and food support
programs, and the commissioner of education for reports related to programs administered
by the Department of Education. The state inspector general may coordinate investigations
with the legislative auditor, the commissioner of human services for investigations related
to Medicaid, the commissioner of children, youth, and families for reports related to child
care programs, the commissioner of health for reports related to WIC and food support
programs, and the commissioner of education for reports related to programs administered
by the Department of Education when coordination conserves resources and does not
compromise an investigation.
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(k) The Office of the State Inspector General is a consolidated agency for purposes of
section 16E.016.
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(l) Agency inspectors general must regularly consult with and report on activities of
their offices to the state inspector general.
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(m) Agency heads must consult with the state inspector general in selecting or removing
an agency inspector general.
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(n) Agency inspectors general must report to the state inspector general when they
become aware of malfeasance by an employee at their agency in administering a public
program.
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Subd. 3.
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Alerting agency of issue; seeking a court order to freeze funds.
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(a) If an
agency does not have primary investigative authority under subdivision 2, the state inspector
general shall investigate. If the state inspector general has a reasonable suspicion that fraud
or misuse is occurring, then the state inspector general may, at the state inspector general's
discretion, alert the commissioner or agency head and seek a court order to freeze or stop
distribution of public funds, including any applicable due process and appeal rights, working
in cooperation with the agency where practical and where it would not jeopardize an
investigation.
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(b) If the agency has primary investigative authority under subdivision 2 but the state
inspector general is not satisfied that the agency's internal investigation is adequate or
proceeding quickly enough, the state inspector general may independently investigate and,
if the state inspector general has a reasonable suspicion that fraud or misuse is being
committed, may make a recommendation to the agency to freeze or cease distribution of
funds and notify the appropriate law enforcement agencies.
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(c) If a commissioner or head of an agency does not act on the state inspector general's
recommendation to freeze or cease distribution of funds as requested, after reasonable notice
and consistent with any applicable interagency agreements under section 16, unless prohibited
by federal requirements, the state inspector general may, at the state inspector general's
discretion, seek a court order to freeze or stop distribution of public funds, consistent with
applicable due process and appeal rights.
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(d) If public funds are stopped or frozen pursuant to this subdivision, the state inspector
general, working with and through the applicable state agency, must ensure that any person
whose public funds are interrupted and who is not implicated in the suspected fraud or
misuse receive notice of the person's rights related to continued receipt of the public funds,
services, or programs for which they are eligible.
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Subd. 4.
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Exceptions for federal funding.
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(a) The state inspector general must not
comply with any provision under this section if compliance with the provision would:
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(1) prevent the state from receiving federal financial participation for the medical
assistance program;
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(2) result in a financial penalty to the state or a reduction in funding the state receives
for a state-administered program or grant;
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(3) result in a lower level of coverage or reduced access to coverage for medical assistance
enrollees; or
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(4) prevent the state from receiving federal grants the state has received previously or
anticipates receiving on the date of enactment of this section.
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(b) Nothing in this section shall limit the ability of the state inspector general to
investigate or report suspected instances of fraud that may result in a financial recovery to
the federal government or repayment to the federal government.
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EFFECTIVE DATE.
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This section is effective July 1, 2027.
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Sec. 8.
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[15E.042] AUXILIARY POWERS.
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Subdivision 1.
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Subpoena power.
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In all matters relating to official duties, the state
inspector general has the powers possessed by courts of law to issue and have subpoenas
served.
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Subd. 2.
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Inquiry and inspection power; duty to aid state inspector general.
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All public
officials and their deputies and employees, and all corporations, firms, and individuals
having business involving the receipt, disbursement, or custody of public funds shall at all
times:
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(1) afford reasonable facilities for examinations by the state inspector general;
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(2) provide returns and reports required by the state inspector general;
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(3) attend and answer under oath the state inspector general's lawful inquiries;
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(4) produce and exhibit all books, accounts, documents, data as provided in section
15E.046, and property that the state inspector general requests to inspect; and
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(5) cooperate with the state inspector general in all matters.
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Subd. 3.
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Penalties.
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(a) If a person refuses or neglects to obey any lawful direction of
the state inspector general, a deputy or assistant, or withholds any information, book, record,
paper or other document called for by the state inspector general for the purpose of
examination, after having been lawfully required by order or subpoena, upon application
by the state inspector general, a judge of the district court in the county where the order or
subpoena was made returnable shall compel obedience or punish disobedience as for
contempt, as in the case of a similar order or subpoena issued by the court.
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(b) A person who swears falsely concerning any matter stated under oath is guilty of a
gross misdemeanor.
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Sec. 9.
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[15E.043] IDENTIFICATION OF FRAUD REPORTING TOOL.
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(a) The commissioner or other chief executive officer of each agency must prominently
highlight on the agency's website the fraud reporting tools administered by the Office of
the State Inspector General and the Office of the Legislative Auditor under chapter 3.
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(b) As part of any grant agreement between the state and a nonprofit organization, the
agreement must highlight the Office of the State Inspector General's role in fraud prevention
and include reference to the fraud reporting tools administered by the Office of the State
Inspector General, under chapter 15E, and the Office of the Legislative Auditor, under
chapter 3.
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Sec. 10.
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[15E.046] DATA PRACTICES.
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Subdivision 1.
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Definitions.
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(a) For the purposes of this section, the following terms have
the meanings given.
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(b) "Confidential data on individuals" has the meaning given in section 13.02, subdivision
3.
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(c) "Government entity" has the meaning given in section 13.02, subdivision 7a.
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(d) "Nonpublic data" has the meaning given in section 13.02, subdivision 9.
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(e) "Not public data" has the meaning given in section 13.02, subdivision 8a.
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(f) "Private data on individuals" has the meaning given in section 13.02, subdivision 12.
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(g) "Protected nonpublic data" has the meaning given in section 13.02, subdivision 13.
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Subd. 2.
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Government Data Practices Act.
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The state inspector general is a government
entity subject to the Government Data Practices Act in chapter 13.
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Subd. 3.
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Access.
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In order to perform the duties authorized by this chapter, the state
inspector general has access to data of any classification, including data classified as not
public data. This also includes active investigative data under section 13.82, subdivision 7,
as it relates to the inspector general's duties authorized by this chapter. It is not a violation
of chapter 13 or any other statute classifying government data as not public data if a
government entity provides data pursuant to this chapter.
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Subd. 4.
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Dissemination.
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The state inspector general may disseminate data of any
classification, including not public data, to:
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(1) a government entity, other than a law enforcement agency or prosecuting authority,
if the dissemination of the data aids a pending investigation or administrative action; or
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(2) a law enforcement agency or prosecuting authority if there is reason to believe that
the data are evidence of criminal activity within the agency's or authority's jurisdiction.
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Subd. 5.
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Data classifications; civil investigations.
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(a) Notwithstanding any other law,
data relating to a civil investigation conducted under this chapter are confidential data on
individuals or protected nonpublic data while the investigation is active. Whether a civil
investigation is active shall be determined by the inspector general.
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(b) Data relating to a civil investigation conducted under this chapter become public
data upon the state inspector general's completion of the investigation, unless:
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(1) the release of the data would jeopardize another active investigation by the inspector
general or another government entity;
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(2) the state inspector general reasonably believes the data will be used in litigation
related to any civil, criminal, or administrative actions, including reconsideration or appeal
of any such action; or
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(3) the data are classified as not public under another statute or paragraph (e).
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(c) Data subject to paragraph (b), clause (2), are confidential data on individuals or
protected nonpublic data and become public when the litigation has been completed or the
time period to appeal has expired, or the litigation is no longer being actively pursued.
new text end
new text begin
(d) Unless the data are subject to a more restrictive classification, upon the state inspector
general's decision to no longer actively pursue a civil investigation under this chapter, data
relating to a civil investigation are private data on individuals or nonpublic data except the
following data are public:
new text end
new text begin
(1) data relating to the investigation's general description, existence, status, and
disposition; and
new text end
new text begin
(2) data that document the state inspector general's work.
new text end
new text begin
(e) Inactive civil investigative data on an individual supplying information for an
investigation that could reasonably be used to determine the individual's identity are private
data on individuals if the information supplied was needed for the investigation and would
not have been provided to the state inspector general without an assurance to the individual
that the individual's identity would remain private.
new text end
new text begin
(f) Data relating to a civil investigation conducted under this chapter that are obtained
from an entity that is not a government entity have the same classification that the data
would have if obtained from a government entity.
new text end
new text begin
Subd. 6.
new text end
new text begin
Privileges.
new text end
new text begin
Nothing in this section or section 15E.042 requires the disclosure
of documents or information that is legally privileged under statute or other law, including
documents or information subject to section 13.393 or 595.02.
new text end
Sec. 11.
new text begin
[15E.05] RESOURCES.
new text end
new text begin
Subdivision 1.
new text end
new text begin
Staff.
new text end
new text begin
(a) The state inspector general may hire and manage staff as
necessary and in accordance with chapter 43A. The state inspector general must employ
and manage at least one attorney to serve as legal counsel for the office and to advise the
state inspector general on all legal matters relating to the office. Except for the state inspector
general, the staff in the Office of the State Inspector General shall serve in the classified
civil service. Compensation for employees of the state inspector general in the classified
service who are represented by an exclusive representative shall be governed by a collective
bargaining agreement negotiated between the commissioner of management and budget
and the exclusive representative.
new text end
new text begin
(b) Compensation for employees of the state inspector general in the classified service
who are not represented by an exclusive representative shall be as provided in the
commissioner's plan under section 43A.18, subdivision 2, or by the managerial plan under
section 43A.18, subdivision 3, depending on the employee's job classification.
new text end
new text begin
Subd. 2.
new text end
new text begin
Contracting.
new text end
new text begin
The state inspector general may contract with external experts
to support the work of the office, subject to section 16C.08.
new text end
new text begin
EFFECTIVE DATE.
new text end
new text begin
This section is effective July 1, 2027.
new text end
Sec. 12.
new text begin
[15E.06] REPORTING AND TRANSPARENCY.
new text end
new text begin
Subdivision 1.
new text end
new text begin
Reports.
new text end
new text begin
The state inspector general must issue public reports detailing
completed audits, investigations, and corrective actions taken.
new text end
new text begin
Subd. 2.
new text end
new text begin
Public tips.
new text end
new text begin
The state inspector general must maintain a phone line and website
for reporting fraud and misuse that allows the person making the report to remain anonymous.
new text end
new text begin
Subd. 3.
new text end
new text begin
Report; inactive investigations.
new text end
new text begin
By December 1, 2027, and each December
1 thereafter, the state inspector general must submit a report to the legislative auditor and
the chairs and ranking minority members of the legislative committees with jurisdiction
over state government and data practices regarding all investigations the state inspector
general did not open after receiving a tip or complaint or decided to no longer actively
pursue for the preceding calendar year. The report must include, at a minimum, summary
data as defined in section 13.02, subdivision 19, for:
new text end
new text begin
(1) all complaints or tips received;
new text end
new text begin
(2) the type of allegation;
new text end
new text begin
(3) if the complaint or tip was not frivolous, the reason that the inspector general did
not open an investigation or decided to no longer pursue the investigation; and
new text end
new text begin
(4) referrals to other agencies or the legislative auditor.
new text end
new text begin
EFFECTIVE DATE.
new text end
new text begin
This section is effective July 1, 2027.
new text end
Sec. 13.
new text begin
[15E.07] PROFESSIONAL STANDARDS AND REVIEW.
new text end
new text begin
(a) The state inspector general's activities must adhere to professional standards as
promulgated by the Association of Inspectors General or other recognized bodies.
new text end
new text begin
(b) The governor may contract for an external quality assurance review of the state
inspector general every three years and must make findings from the review public.
new text end
new text begin
EFFECTIVE DATE.
new text end
new text begin
This section is effective July 1, 2027.
new text end
Sec. 14.
new text begin
[15E.08] LEGISLATIVE INSPECTOR GENERAL ADVISORY
COMMISSION.
new text end
new text begin
Subdivision 1.
new text end
new text begin
Membership.
new text end
new text begin
The Legislative Inspector General Advisory Commission
is comprised of:
new text end
new text begin
(1) two senators appointed by the majority leader of the senate;
new text end
new text begin
(2) two senators appointed by the minority leader of the senate;
new text end
new text begin
(3) two members of the house of representatives appointed by the speaker of the house
of representatives; and
new text end
new text begin
(4) two members of the house of representatives appointed by the minority leader of the
house of representatives.
new text end
new text begin
Subd. 2.
new text end
new text begin
Terms.
new text end
new text begin
Members serve at the pleasure of their appointing authorities and each
member serves until a replacement is appointed.
new text end
new text begin
Subd. 3.
new text end
new text begin
Chair.
new text end
new text begin
The commission must select a chair after consideration of its members
by January 31, 2027. The chair shall serve until a successor is elected. The chair must
alternate biennially between the senate and the house of representatives.
new text end
new text begin
Subd. 4.
new text end
new text begin
Duties.
new text end
new text begin
The Legislative Inspector General Advisory Commission must:
new text end
new text begin
(1) consider applicants for and make recommendations to the governor for the position
of inspector general; and
new text end
new text begin
(2) may conduct hearings to review the work of the state inspector general to ensure
impartiality, independence, and effectiveness.
new text end
new text begin
Subd. 5.
new text end
new text begin
Per diem; expense reimbursement.
new text end
new text begin
Members may be compensated for time
spent on commission duties and may be reimbursed for expenses according to the rules of
their respective bodies.
new text end
new text begin
Subd. 6.
new text end
new text begin
Meeting space; staff.
new text end
new text begin
The Legislative Coordinating Commission must provide
meeting space and staff to assist the commission in performing its duties.
new text end
new text begin
Subd. 7.
new text end
new text begin
Open meetings.
new text end
new text begin
The Legislative Inspector General Advisory Commission is
subject to the requirements in section 3.055.
new text end
new text begin
Subd. 8.
new text end
new text begin
Recommendations.
new text end
new text begin
The commission must submit recommendations for a state
inspector general by January 1, 2027.
new text end
new text begin
EFFECTIVE DATE.
new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 15.
Minnesota Statutes 2024, section 609.456, subdivision 2, is amended to read:
Subd. 2.
Legislative auditor
new text begin
and state inspector general
new text end
.
Whenever an employee or
officer of the state, University of Minnesota, or other organization listed in section
3.971,
subdivision 6
, discovers evidence of
new text begin
fraud,
new text end
theft, embezzlement, or
new text begin
other
new text end
unlawful use of
public funds or property, the employee or officer shall
deleted text begin
, except when to do so would
knowingly impede or otherwise interfere with an ongoing criminal investigation,
deleted text end
promptly
report in writing to the legislative auditor
new text begin
or state inspector general
new text end
a detailed description
of the alleged incident or incidents.
Sec. 16.
new text begin
LEGISLATIVE INSPECTOR GENERAL ADVISORY COMMISSION;
INITIAL APPOINTMENTS AND FIRST MEETING.
new text end
new text begin
Subdivision 1.
new text end
new text begin
Initial appointments.
new text end
new text begin
Appointing authorities must make appointments
to the Legislative Inspector General Advisory Commission by August 1, 2026.
new text end
new text begin
Subd. 2.
new text end
new text begin
First meeting.
new text end
new text begin
The senate majority leader must designate one member of the
Legislative Inspector General Advisory Commission to convene the first meeting of the
Legislative Inspector General Advisory Commission by September 15, 2026.
new text end
new text begin
Subd. 3.
new text end
new text begin
Chair.
new text end
new text begin
The Legislative Inspector General Advisory Commission must elect a
chair from among its senate members at its first meeting. The first chair shall serve until a
successor is selected at the start of the next biennium as provided in Minnesota Statutes,
section 15E.08, subdivision 3.
new text end
Sec. 17.
new text begin
INTERAGENCY AGREEMENTS.
new text end
new text begin
(a) By December 31, 2027, the Office of the State Inspector General must enter into an
interagency agreement with the Department of Human Services. The agreement must not
preclude the agency from performing, or give the state inspector general authority to take
actions that would interfere with the agency's ability to perform, duties required as a condition
for securing or maintaining federal funding. The interagency agreement must include a
clause on cost-sharing for investigations that may require multiagency coordination and a
clause that details what process will be followed if a joint investigation is required. The
interagency agreement must not limit the state inspector general's authority or authorized
powers and responsibilities. The agency and the state inspector general may coordinate
investigative efforts as necessary or practical, but an interagency agreement must not
diminish, delay, or restrict the state inspector general's ability to investigate fraud and misuse
when an independent investigation is pursued.
new text end
new text begin
(b) By December 31, 2027, the Office of the State Inspector General must enter into an
interagency agreement with the Department of Children, Youth, and Families. The
interagency agreement must include a clause on cost-sharing for investigations that may
require multiagency coordination and a clause that details what process will be followed if
a joint investigation is required. The interagency agreement must not limit the state inspector
general's authority or authorized powers and responsibilities. The agency and the state
inspector general may coordinate investigative efforts as necessary or practical, but an
interagency agreement must not diminish, delay, or restrict the state inspector general's
ability to investigate fraud and misuse when an independent investigation is pursued.
new text end
new text begin
(c) By December 31, 2027, the Office of the State Inspector General must enter into an
interagency agreement with the Department of Health. The interagency agreement must
include a clause on cost-sharing for investigations that may require multiagency coordination
and a clause that details what process will be followed if a joint investigation is required.
The interagency agreement must not limit the state inspector general's authority or authorized
powers and responsibilities. The agency and the state inspector general may coordinate
investigative efforts as necessary or practical, but an interagency agreement must not
diminish, delay, or restrict the state inspector general's ability to investigate fraud and misuse
when an independent investigation is pursued.
new text end
new text begin
(d) By December 31, 2027, the Office of the State Inspector General must enter into an
interagency agreement with the Department of Education. The interagency agreement must
include a clause on cost-sharing for investigations that may require multiagency coordination
and a clause that details what process will be followed if a joint investigation is required.
The interagency agreement must not limit the state inspector general's authority or authorized
powers and responsibilities. Effective immediately, nothing in Minnesota Statutes, chapter
15E, authorizes any sanction by the commissioner or state inspector general that reduces,
pauses, or otherwise interrupts state or federal aid to a school district; charter school;
cooperative unit as defined by Minnesota Statutes, section 123A.24, subdivision 2; or any
library, library system, or library district defined in Minnesota Statutes, section 134.001.
new text end
new text begin
EFFECTIVE DATE.
new text end
new text begin
This section is effective July 1, 2027.
new text end
ARTICLE 2
CONFORMING ITEMS
Section 1.
Minnesota Statutes 2024, section 127A.21, subdivision 1a, is amended to read:
Subd. 1a.
Definitions.
(a) For purposes of this section, the following terms have the
meanings given.
(b) "Abuse" means actions that may, directly or indirectly, result in unnecessary costs
to department programs. Abuse may involve paying for items or services when there is no
legal entitlement to that payment.
(c) "Department program" means a program funded by the Department of Education
that involves the transfer or disbursement of public funds or other resources to a program
participant. "Department program" includes state and federal aids or grants received by a
school district or charter school or other program participant.
(d) "Fraud" means an intentional or deliberate act to deprive another of property or
money or to acquire property or money by deception or other unfair means. Fraud includes
intentionally submitting false information to the department for the purpose of obtaining a
greater compensation or benefit than that to which the person is legally entitled. Fraud also
includes failure to correct errors in the maintenance of records in a timely manner after a
request by the department.
(e) "Investigation" means an audit, investigation, proceeding, or inquiry by the Office
of the Inspector General related to a program participant in a department program.
(f) "Program participant" means any entity or person, including associated persons, that
receives, disburses, or has custody of funds or other resources transferred or disbursed under
a department program.
new text begin
(g) "State inspector general" means the state inspector general as defined in section
15E.01.
new text end
deleted text begin
(g)
deleted text end
new text begin
(h)
new text end
"Waste" means practices that, directly or indirectly, result in unnecessary costs
to department programs, such as misusing resources.
deleted text begin
(h)
deleted text end
new text begin
(i)
new text end
For purposes of this section, neither "fraud," "waste," nor "abuse" includes
decisions on instruction, curriculum, personnel, or other discretionary policy decisions made
by a school district, charter school, cooperative unit as defined by section
123A.24,
subdivision
2, or any library, library system, or library district defined in section
134.001
.
Sec. 2.
Minnesota Statutes 2025 Supplement, section 127A.21, subdivision 5, is amended
to read:
Subd. 5.
Sanctions; appeal.
(a) This subdivision does not authorize any sanction that
reduces, pauses, or otherwise interrupts state or federal aid to a school district, charter school,
cooperative unit as defined by section
123A.24, subdivision 2
, or any library, library system,
or library district defined in section
134.001
.
(b) The inspector general may recommend that the commissioner impose appropriate
deleted text begin
temporary
deleted text end
sanctions
deleted text begin
, including withholding of payments under the department program, on
a program participant pending an investigation by the Office of the Inspector General
deleted text end
if:
deleted text begin
(1) during the course of an investigation, the Office of the Inspector General finds credible
indicia of fraud, waste, or abuse by the program participant;
deleted text end
deleted text begin
(2)
deleted text end
new text begin
(1)
new text end
there has been a criminal, civil, or administrative adjudication of fraud
deleted text begin
, waste,
or abuse
deleted text end
new text begin
or misuse
new text end
against the program participant in Minnesota or in another state or
jurisdiction;
new text begin
or
new text end
deleted text begin
(3) the program participant was receiving funds under any contract or registered in any
program administered by another Minnesota state agency, a government agency in another
state, or a federal agency, and was excluded from that contract or program for reasons
credibly indicating fraud, waste, or abuse by the program participant; or
deleted text end
deleted text begin
(4)
deleted text end
new text begin
(2)
new text end
the program participant has a pattern of noncompliance with an investigation.
(c) If an investigation finds, by a preponderance of the evidence, fraud
deleted text begin
, waste,
deleted text end
or
deleted text begin
abuse
deleted text end
new text begin
misuse
new text end
by a program participant, the inspector general may, after reviewing all facts and
evidence and when acting judiciously on a case-by-case basis, recommend that the
commissioner impose appropriate sanctions on the program participant.
(d) Unless prohibited by law, the commissioner has the authority to implement
recommendations by the inspector general, including imposing appropriate sanctions,
temporarily or otherwise, on a program participant. Sanctions may include ending program
participation, stopping disbursement of funds or resources, monetary recovery, and
termination of department contracts with the participant for any current or future department
program or contract. A sanction may be imposed for up to the longest period permitted by
state or federal law. Sanctions authorized under this subdivision are in addition to other
remedies and penalties available under law.
(e) If the commissioner imposes sanctions on a program participant under this subdivision,
the commissioner must notify the participant in writing within seven business days of
imposing the sanction, unless requested in writing by a law enforcement agency to
temporarily delay issuing the notice to prevent disruption of an ongoing law enforcement
agency investigation. A notice of sanction must state:
(1) the sanction being imposed;
(2) the general allegations that form the basis for the sanction;
(3) the duration of the sanction;
(4) the department programs to which the sanction applies; and
(5) how the program participant may appeal the sanction pursuant to paragraph (f).
(f) A program participant sanctioned under this subdivision may, within 30 days after
the date the notice of sanction was mailed to the participant, appeal the determination by
requesting in writing that the commissioner initiate a contested case proceeding under
chapter 14. The scope of any contested case hearing is limited to the sanction imposed under
this subdivision. An appeal request must specify with particularity each disputed item, the
reason for the dispute, and must include the name and contact information of the person or
entity that may be contacted regarding the appeal.
(g) The commissioner shall lift sanctions imposed under this subdivision if the Office
of the Inspector General
new text begin
notifies the commissioner that it
new text end
determines there is insufficient
evidence of fraud
deleted text begin
, waste,
deleted text end
or
deleted text begin
abuse
deleted text end
new text begin
misuse
new text end
by the program participant. The commissioner
must notify the participant in writing within seven business days of lifting the sanction.
Sec. 3.
Minnesota Statutes 2024, section 127A.21, is amended by adding a subdivision to
read:
new text begin
Subd. 8.
new text end
new text begin
Limits on receiving public funds; prohibition.
new text end
new text begin
(a) This subdivision does not
authorize any action that reduces, pauses, or otherwise interrupts state or federal aid to a
school district; charter school; cooperative unit as defined in section 123A.24, subdivision
2; or any library, library system, or library district defined in section 134.001.
new text end
new text begin
(b) For purposes of this subdivision, "program participant" includes individuals or persons
who have an ownership interest in, control of, or the ability to control a program participant
in a department program.
new text end
new text begin
(c) If a program participant is excluded from a department program, the commissioner
may:
new text end
new text begin
(1) prohibit the excluded program participant from enrolling in, receiving grant money
from, or registering in any other program administered by the commissioner; and
new text end
new text begin
(2) disenroll or disqualify the excluded program participant from any other program
administered by the commissioner.
new text end
new text begin
(d) If a program participant enrolled, licensed, or receiving funds under any contract or
program administered by a Minnesota state agency or federal agency is excluded from that
program, the inspector general shall notify the commissioner, who may:
new text end
new text begin
(1) prohibit the excluded program participant from enrolling in, becoming licensed,
receiving grant money from, or registering in any other program administered by the
commissioner; and
new text end
new text begin
(2) disenroll or disqualify the excluded program participant from any other program
administered by the commissioner.
new text end
new text begin
(e) The duration of a prohibition, disenrollment, revocation, suspension, or
disqualification under paragraph (c) must last for the longest applicable sanction or
disqualifying period in effect for the program participant permitted by state or federal law.
The duration of a prohibition, disenrollment, revocation, suspension, or disqualification
under paragraph (d) may last up until the longest applicable sanction or disqualifying period
in effect for the program participant as permitted by state or federal law.
new text end
Sec. 4.
Minnesota Statutes 2024, section 127A.21, is amended by adding a subdivision to
read:
new text begin
Subd. 9.
new text end
new text begin
Notice.
new text end
new text begin
Within five days of taking an action against a program participant under
subdivision 8, paragraph (c) or (d), the commissioner must send notice of the action to the
program participant. The notice must state the:
new text end
new text begin
(1) basis for the action;
new text end
new text begin
(2) effective date of the action;
new text end
new text begin
(3) right to appeal the action; and
new text end
new text begin
(4) requirements and procedures for reinstatement.
new text end
Sec. 5.
Minnesota Statutes 2024, section 127A.21, is amended by adding a subdivision to
read:
new text begin
Subd. 10.
new text end
new text begin
Appeal.
new text end
new text begin
(a) Upon receipt of a notice under subdivision 9, a program participant
may request a contested case hearing, as defined in section 14.02, subdivision 3, by filing
with the commissioner a written request of appeal. The appeal request must be received by
the commissioner no later than 30 days after the date the notification was mailed to the
program participant.
new text end
new text begin
(b) The appeal request must specify:
new text end
new text begin
(1) each disputed item and the reason for the dispute;
new text end
new text begin
(2) the authority in statute or rule upon which the program participant relies for each
disputed item;
new text end
new text begin
(3) the name and address of the person or entity with whom contacts may be made
regarding the appeal; and
new text end
new text begin
(4) other information required by the commissioner.
new text end
new text begin
(c) Unless a timely and proper appeal is received by the commissioner, the action of the
commissioner shall be considered final and binding on the effective date of the action as
stated in the notice under subdivision 9, clause (2).
new text end
Sec. 6.
Minnesota Statutes 2024, section 127A.21, is amended by adding a subdivision to
read:
new text begin
Subd. 11.
new text end
new text begin
Withholding of payments.
new text end
new text begin
(a) This subdivision does not authorize withholding
of payments that reduces, pauses, or otherwise interrupts state or federal aid to a school
district; charter school; cooperative unit as defined in section 123A.24, subdivision 2; or
any library, library system, or library district defined in section 134.001.
new text end
new text begin
(b) Except as otherwise provided by state or federal law, the inspector general shall
notify and recommend to the commissioner to withhold payments to a program participant
in any program administered by the commissioner, who shall have the authority to withhold
such payments to the extent permitted under federal law, if the inspector general determines
there is a credible allegation of fraud or misuse for which an investigation is pending for a
program administered by the department, a Minnesota state agency, or a federal agency.
new text end
new text begin
(c) Allegations are considered credible when they have indicia of reliability and the
inspector general has reviewed the evidence and acts on a case-by-case basis. A credible
allegation of fraud is an allegation that has been verified by the commissioner from any
source, including but not limited to:
new text end
new text begin
(1) fraud hotline complaints;
new text end
new text begin
(2) claims data mining; and
new text end
new text begin
(3) patterns identified through provider audits, civil false claims cases, and investigations.
new text end
new text begin
(d) The commissioner must send notice of the withholding of payments within five days
of taking such action. The notice must:
new text end
new text begin
(1) state that payments are being withheld according to this paragraph;
new text end
new text begin
(2) set forth the general allegations as to the reasons for the withholding action, but need
not disclose any specific information concerning an ongoing investigation;
new text end
new text begin
(3) state that the withholding is for a temporary period and cite the circumstances under
which withholding will be terminated; and
new text end
new text begin
(4) inform the program participant of the right to submit written evidence for
consideration by the commissioner.
new text end
new text begin
(e) The withholding of payments shall not continue after the inspector general determines
there is insufficient evidence of fraud by the program participant or after legal proceedings
relating to the alleged fraud are completed, unless the commissioner has sent notice under
subdivision 5 of the intention to take an additional action related to the program participant's
participation in a program administered by the commissioner. If the inspector general
determines there is insufficient evidence of fraud by the program participant or after legal
proceedings relating to the alleged fraud are completed, the inspector general shall notify
the commissioner within ten days of the determination.
new text end
new text begin
(f) The withholding of payments is a temporary action and shall not be subject to appeal
under this subdivision or chapter 14.
new text end
Sec. 7.
Minnesota Statutes 2024, section 127A.21, is amended by adding a subdivision to
read:
new text begin
Subd. 12.
new text end
new text begin
Office of the State Inspector General; reports.
new text end
new text begin
The commissioner must
submit final investigative reports to the state inspector general, serving under section 15E.01,
for any investigation conducted by the commissioner into fraud or misuse, as defined in
section 15E.02, within programs administered by the Department of Education.
new text end
Sec. 8.
Minnesota Statutes 2024, section 142A.03, is amended by adding a subdivision to
read:
new text begin
Subd. 36.
new text end
new text begin
Office of the State Inspector General; reports.
new text end
new text begin
The commissioner must
submit final investigative reports to the state inspector general, serving under section 15E.01,
for any investigation conducted by the commissioner into fraud or misuse, as defined in
section 15E.02, within child care programs.
new text end
Sec. 9.
Minnesota Statutes 2024, section 142A.12, subdivision 5, is amended to read:
Subd. 5.
Withholding of payments.
(a) Except as otherwise provided by state or federal
law, the commissioner may withhold payments to a provider, vendor, individual, associated
individual, or associated entity in any program administered by the commissioner if the
commissioner determines there is a credible allegation of fraud for which an investigation
is pending for a program administered by a Minnesota state or federal agency.
(b) For purposes of this subdivision, "credible allegation of fraud" means an allegation
that has been verified by the commissioner from any source, including but not limited to:
(1) fraud hotline complaints;
(2) claims data mining;
(3) patterns identified through provider audits, civil false claims cases, and law
enforcement investigations;
deleted text begin
and
deleted text end
(4) court filings and other legal documents, including but not limited to police reports,
complaints, indictments, informations, affidavits, declarations, and search warrants
new text begin
; and
new text end
new text begin
(5) information from the state inspector general, including information listed on the state
inspector general's exclusion list under section 15E.04, subdivision 1, clause (8)
new text end
.
(c) The commissioner must send notice of the withholding of payments within five days
of taking such action. The notice must:
(1) state that payments are being withheld according to this subdivision;
(2) set forth the general allegations related to the withholding action, except the notice
need not disclose specific information concerning an ongoing investigation;
(3) state that the withholding is for a temporary period and cite the circumstances under
which the withholding will be terminated; and
(4) inform the provider, vendor, individual, associated individual, or associated entity
of the right to submit written evidence to contest the withholding action for consideration
by the commissioner.
(d) If the commissioner withholds payments under this subdivision, the provider, vendor,
individual, associated individual, or associated entity has a right to request administrative
reconsideration. A request for administrative reconsideration must be made in writing, state
with specificity the reasons the payment withholding decision is in error, and include
documents to support the request. Within 60 days from receipt of the request, the
commissioner shall judiciously review allegations, facts, evidence available to the
commissioner, and information submitted by the provider, vendor, individual, associated
individual, or associated entity to determine whether the payment withholding should remain
in place.
(e) The commissioner shall stop withholding payments if the commissioner determines
there is insufficient evidence of fraud by the provider, vendor, individual, associated
individual, or associated entity or when legal proceedings relating to the alleged fraud are
completed, unless the commissioner has sent notice under subdivision 3 to the provider,
vendor, individual, associated individual, or associated entity.
(f) The withholding of payments is a temporary action and is not subject to appeal under
section
256.0451
or chapter 14.
Sec. 10.
Minnesota Statutes 2024, section 144.05, is amended by adding a subdivision to
read:
new text begin
Subd. 9.
new text end
new text begin
Office of the State Inspector General; reports.
new text end
new text begin
The commissioner must
submit final investigative reports to the state inspector general serving under section 15E.01
for any investigation conducted by the commissioner into fraud or misuse, as defined in
section 15E.02, within the special supplemental nutrition program for women, infants, and
children.
new text end
Sec. 11.
Minnesota Statutes 2024, section 245.095, subdivision 5, is amended to read:
Subd. 5.
Withholding of payments.
(a) Except as otherwise provided by state or federal
law, the commissioner may withhold payments to a provider, vendor, individual, associated
individual, or associated entity in any program administered by the commissioner if the
commissioner determines there is a credible allegation of fraud for which an investigation
is pending for a program administered by a Minnesota state or federal agency.
(b) For purposes of this subdivision, "credible allegation of fraud" means an allegation
that has been verified by the commissioner from any source, including but not limited to:
(1) fraud hotline complaints;
(2) claims data mining;
(3) patterns identified through provider audits, civil false claims cases, and law
enforcement investigations;
deleted text begin
and
deleted text end
(4) court filings and other legal documents, including but not limited to police reports,
complaints, indictments, informations, affidavits, declarations, and search warrants
new text begin
; and
new text end
new text begin
(5) information from the inspector general, including information listed on the state
inspector general's exclusion list under section 15E.04, subdivision 1, clause (8)
new text end
.
(c) The commissioner must send notice of the withholding of payments within five days
of taking such action. The notice must:
(1) state that payments are being withheld according to this subdivision;
(2) set forth the general allegations related to the withholding action, except the notice
need not disclose specific information concerning an ongoing investigation;
(3) state that the withholding is for a temporary period and cite the circumstances under
which the withholding will be terminated; and
(4) inform the provider, vendor, individual, associated individual, or associated entity
of the right to submit written evidence to contest the withholding action for consideration
by the commissioner.
(d) If the commissioner withholds payments under this subdivision, the provider, vendor,
individual, associated individual, or associated entity has a right to request administrative
reconsideration. A request for administrative reconsideration must be made in writing, state
with specificity the reasons the payment withholding decision is in error, and include
documents to support the request. Within 60 days from receipt of the request, the
commissioner shall judiciously review allegations, facts, evidence available to the
commissioner, and information submitted by the provider, vendor, individual, associated
individual, or associated entity to determine whether the payment withholding should remain
in place.
(e) The commissioner shall stop withholding payments if the commissioner determines
there is insufficient evidence of fraud by the provider, vendor, individual, associated
individual, or associated entity or when legal proceedings relating to the alleged fraud are
completed, unless the commissioner has sent notice under subdivision 3 to the provider,
vendor, individual, associated individual, or associated entity.
(f) The withholding of payments is a temporary action and is not subject to appeal under
section
256.045
or chapter 14.
Sec. 12.
Minnesota Statutes 2024, section 256.01, is amended by adding a subdivision to
read:
new text begin
Subd. 45.
new text end
new text begin
Office of the State Inspector General; reports.
new text end
new text begin
The commissioner must
submit final investigative reports to the state inspector general, serving under section 15E.01,
for any investigation conducted by the commissioner into fraud or misuse, as defined in
section 15E.02, within the Medicaid program.
new text end
ARTICLE 3
APPROPRIATIONS
Section 1.
new text begin
APPROPRIATIONS.
new text end
new text begin
The sums shown in the columns marked "Appropriations" are appropriated to the agencies
and for the purposes specified in this article. The appropriations are from the general fund,
or another named fund, and are available for the fiscal years indicated for each purpose.
The figures "2026" and "2027" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2026, or June 30, 2027, respectively.
"The first year" is fiscal year 2026. "The second year" is fiscal year 2027. "The biennium"
is fiscal years 2026 and 2027.
new text end
new text begin
APPROPRIATIONS
new text end
new text begin
Available for the Year
new text end
new text begin
Ending June 30
new text end
new text begin
2026
new text end
new text begin
2027
new text end
Sec. 2.
new text begin
STATE OFFICE OF INSPECTOR
GENERAL
new text end
new text begin
$
new text end
new text begin
-0-
new text end
new text begin
$
new text end
new text begin
17,936,000
new text end
new text begin
(a)
Technology Modernization.
$15,000,000
in fiscal year 2027 is for technology
modernization funding to improve data sharing
between agencies and to enhance security,
identity authentication, and verification
capabilities for state services. This is a onetime
appropriation and is available until June 30,
2030.
new text end
new text begin
(b)
Base Level Adjustment.
The base is
$8,566,000 in fiscal year 2028 and $9,353,000
in fiscal year 2029.
new text end
Sec. 3.
new text begin
HUMAN SERVICES
new text end
new text begin
$
new text end
new text begin
-0-
new text end
new text begin
$
new text end
new text begin
2,055,000
new text end
new text begin
Base Level Adjustment.
The base is
$2,425,000 in fiscal year 2028 and each fiscal
year thereafter.
new text end
Sec. 4.
new text begin
ADMINISTRATION
new text end
new text begin
$
new text end
new text begin
-0-
new text end
new text begin
$
new text end
new text begin
892,000
new text end
new text begin
new text begin
Base Level Adjustment.
new text end
The base is $892,000
in fiscal year 2028 and $0 in fiscal year 2029.
new text end
Sec. 5.
new text begin
DEPARTMENT OF EDUCATION
new text end
new text begin
$
new text end
new text begin
-0-
new text end
new text begin
$
new text end
new text begin
589,000
new text end
new text begin
new text begin
Base Level Adjustment.
new text end
The base is $785,000
in fiscal year 2028 and each fiscal year
thereafter.
new text end
Sec. 6.
new text begin
DEPARTMENT OF CHILDREN,
YOUTH, AND FAMILIES
new text end
new text begin
$
new text end
new text begin
-0-
new text end
new text begin
$
new text end
new text begin
465,000
new text end
new text begin
new text begin
Base Level Adjustment.
new text end
The base is $620,000
in fiscal year 2028 and each fiscal year
thereafter.
new text end
Sec. 7.
new text begin
LEGISLATURE
new text end
new text begin
$
new text end
new text begin
-0-
new text end
new text begin
$
new text end
new text begin
21,000
new text end
new text begin
new text begin
Base Level Adjustment.
new text end
The base is $7,000
in fiscal year 2028 and each fiscal year
thereafter.
new text end