Office of Inspector General established, powers and duties provided, enhanced grant oversight provided, retaliation prohibited, existing executive Offices of Inspector General transferred or repealed, detection and prevention of fraud provided, penalties provided, and money appropriated.

HF 2963 establishes an Office of Inspector General (OIG) within the Minnesota legislature to oversee state spending and prevent fraud. The OIG will investigate misuse of public funds in state programs and grants, require state agencies to report suspected fraud, and prohibit retaliation against whistleblowers who report misconduct. The bill transfers existing executive branch inspector general functions to the new OIG, appropriates funding for its operations, and amends multiple state statutes to define key terms like "fraud" and "recipient of state funds." This directly affects state agencies, grant recipients, and entities administering state-funded programs by subjecting them to enhanced oversight.