Office of the Inspector General creation and appropriation

Added new sections 37.1 through 38.28, which appear to be a continuation of the bill's text or new provisions not present in the previous version.

Removed sections 8.33, 9.33, 11.32-34, 12.31, 13.24, 13.32, 14.4, 15.30-32, 16.27, 16.32, 17.13, 17.20, 17.21, 18.24, 18.31-32, 19.31, 20.30-33, 21.14, 21.26-27, 22.34-35, 23.17, 23.32-34, 24.14, 24.16, 24.25-26, 25.4, 25.6, 26.9, 27.31-32, 28.30-32, 29.10, 29.27, 31.9-10, 31.30, 32.22-23, 32.29-32, 34.10-11, 34.17-18, 34.30-31, 35.32, 36.5, 36.24, 36.29-32, and 37.1-37.32.

Changed the term 'advisory committee' to 'advisory commission' in the bill's summary description.

Added an effective date provision stating that the section is effective January 1, 2027.

Modified the list of officials subject to the Inspector General's oversight by removing several commissioners and adding the Inspector General as an appointee under the new chapter.

The definition of the Inspector General's jurisdiction was modified to explicitly include 'state executive branch agencies,' ensuring comprehensive oversight of the executive branch.

A new section (36.20+) was added containing extensive new definitions and provisions that were previously absent or structured differently.

The original standalone definitions section (Sec. 5) was removed and its content was integrated into the new section structure.

The bill title and version number were updated from '2nd Unofficial Engrossment' to '3rd Unofficial Engrossment' to reflect the latest legislative status.

The Inspector General's independence was modified to include an exception, allowing them to be subject to direction or interference if specifically directed by enacted law.

New sections were added to the bill, including 9.32-9.33, 10.31-10.33, and various sections in Chapters 11 through 22, expanding the bill's content.

Several sections were removed from the bill, including 8.32-8.33, 11.32, 12.32-12.33, and others, reducing the bill's original content.

The posting date of the bill was updated from March 25, 2026, to April 7, 2026, reflecting the progression in the legislative timeline.

The effective date for the new Office of the Inspector General was changed from January 1, 2026, to January 1, 2027.

The statutory chapter number for the Office of the Inspector General was changed from 15D to 15E throughout the bill.

The requirement for the legislative auditor to refer public reports of fraud was modified to specify that the reports must be 'credible' before referral.

The definition of 'public official' was updated to explicitly include the inspector general and individuals employed by the Office of the Inspector General.

Added a requirement that appointments to additional Inspector General terms must be confirmed by a vote of three-fifths of the Senate.

Clarified that the Inspector General can independently investigate and recommend freezing funds even if an agency has primary investigative authority, provided the Inspector General is not satisfied with the agency's speed or adequacy.

Expanded the Inspector General's referral authority to include a new 'Office of the Inspector General Anti-Fraud and Waste Bureau'.

Updated the bill title and posting date from the 9th Engrossment to the 10th Engrossment.

The inspector general now reports to the governor instead of the chief administrative law judge, changing the office from an independent legislative entity to one operating within the executive branch.

The removal process for the inspector general was changed to require the governor's approval, whereas previously the chief administrative law judge held this authority.

New provisions establish a specific timeline for the Advisory Commission to recommend a replacement for a vacant inspector general position and require the governor to appoint a successor within 30 days.

The inspector general gained new authority to seek court orders to freeze public funds and alert agencies of suspected fraud, even when the agency does not have primary investigative authority.

Reporting requirements were updated to include referrals to the commissioner of human services for Medicaid-related issues, and the inspector general's staff hiring rules were adjusted to align with general civil service chapters.

A new exception was added preventing the inspector general from enforcing certain provisions if doing so would jeopardize the state's receipt of federal financial participation for medical assistance programs.

Raised the educational requirement for the Inspector General from a bachelor's degree to a bachelor's or higher degree in relevant fields.

Changed the appointment authority from the Chief Judge of the Office of Administrative Hearings to the Governor, with confirmation required by a vote of three-fifths of the Senate.

Altered removal procedures so the Inspector General can no longer be removed solely by the Chief Judge after a hearing; removal now requires a public hearing and approval from both the Senate and House of Representatives.

Added a requirement for candidates to disclose all political affiliations, campaign work, and partisan activities prior to confirmation.

Established a strict nonpartisanship rule prohibiting the Inspector General and office employees from engaging in partisan activities or public political speech while in office.

Removed the restriction limiting the Inspector General to two terms, allowing for unlimited additional terms.

Replaced the 'at pleasure' appointment term for Advisory Commission members with fixed terms until a replacement is appointed.

Reconfigured the Legislative Inspector General Advisory Commission by removing specific minority leader appointments and reducing the total number of members from eight to six.

The legislative auditor must now refer all public reports on potential fraud to the Inspector General, even if the data is classified as non-public, and may coordinate investigations to conserve resources.

A new requirement mandates that the Inspector General submit an annual report by December 1 regarding all complaints or tips that were not pursued or were decided inactive.

New language ensures that documents or information legally privileged under existing statutes cannot be required to be disclosed under this bill.

The definition of an 'active' investigation was updated to explicitly state that the Inspector General determines whether an investigation is active.

The deadline for the Office of the Inspector General to become fully operational was set to September 1, 2026, with a transition period for employees starting before that date.

Data dissemination to government entities is now permitted if it aids a pending investigation or administrative action, broadening the criteria beyond just investigations.

The OIG can now seek court orders to freeze or stop the distribution of public funds at its discretion, rather than only alerting agency heads.

The OIG's removal process now requires a public hearing conducted by the Legislative Inspector General Advisory Commission.

Governors and legislators are now explicitly listed as ineligible to serve as inspector general within five years of their service.

The OIG's authority to investigate fraud was broadened to cover all public funds, data, and systems, and the definition of fraud now explicitly includes misuse.

Jurisdictional exceptions for Medicaid, child care, and WIC were rewritten to clarify that the OIG retains authority to conduct independent investigations in these areas, rather than being completely excluded.

The OIG must refer all public reports about potential fraud to the legislative auditor, though it may coordinate reviews to conserve resources.

A new provision requires the OIG to establish an exclusion list for programs and individuals subject to fund freezes or cease recommendations.

The Office of the Inspector General's duties were expanded to include establishing and maintaining an exclusion list for programs and individuals suspected of fraud or misuse, providing agencies with specific information to stop such activities.

New text was added requiring the Inspector General to provide sufficient information to requesting agencies to allow them to exercise statutory obligations to stop fraud and misuse.

The term 'fraud and abuse' was changed to 'fraud and misuse' in the sections defining the Inspector General's jurisdiction over Medicaid, child care, and WIC programs.

The bill now includes amendments to Minnesota Statutes sections 142A.12, 144.05, 245.095, and 142A.03, expanding the legislative changes beyond the previous version.

A large number of new sections (16.27 through 19.7) were added, and the bill's title was updated to reflect the '5th Engrossment' status with a new posting date.

The definition of 'abuse' was replaced with 'misuse' in the public reporting section, and 'fraud' was redefined to explicitly include 'failure to act'.

New definitions were added for 'agency program' and 'investigation' to clarify the scope of the Inspector General's work.

The Inspector General was granted new authority to investigate any public or private entity receiving public funds to ensure compliance and proper use of funds.

A new requirement was added for the Inspector General to alert relevant commissioners immediately if there is a reasonable suspicion of fraud or misuse, recommending a freeze on funds.

The Inspector General is now required to submit an annual report summarizing the office's work to the Legislative Inspector General Advisory Commission.

Specific exemptions were created stating the Inspector General does not have jurisdiction over Medicaid, child care assistance, WIC, or general compliance reviews not related to fraud or misuse.

The list of internal teams transferred to the Inspector General was updated to include data services and analytics, while explicitly excluding licensing and child care teams from the Department of Children, Youth, and Families.

The definition of the OIG's mission was changed to remove 'waste' from its list of targets, focusing the office solely on detecting and preventing fraud and abuse.

The specific definition for 'waste' was removed from the bill's text, aligning the legal definition with the narrowed mission statement.

New provisions were added to transfer specific investigative duties regarding fraud and abuse from the Departments of Education, Human Services, and Children, Youth, and Families to the state Office of the Inspector General.

A new requirement was added for the inspector general to alert relevant agency heads immediately if there is a reasonable suspicion of fraud or abuse, recommending a freeze on funds.

New definitions for 'personal gain' and 'program participant' were added to clarify who and what is covered under the new investigative mandates.

The requirement for the inspector general to investigate 'waste' involving state law enforcement and public safety programs was removed.

The bill's scope was altered to repeal existing statutes governing the Department of Education's internal OIG, effectively centralizing these functions under the state OIG.

The requirement for the inspector general to report to the chief administrative law judge was modified to remove the phrase 'judicial authority,' ensuring the inspector general operates independently of all executive, legislative, and judicial branches except the chief administrative law judge.

The bill now requires the inspector general to hire at least two individuals with specific experience in criminal investigations, rather than mandating licensed peace officers.

A new Legislative Inspector General Advisory Commission was created to recommend candidates for the inspector general position and review the office's work to ensure impartiality and effectiveness.

New provisions were added to prevent employees from the Department of Corrections from being transferred to the Office of the Inspector General, while maintaining existing restrictions on Department of Human Services positions.

The definition of 'fraud' was broadened to include 'an intentional or deceptive act' rather than just 'intentional acts of deception,' and 'waste' was updated to explicitly list 'inefficient practices' alongside negligent expenditure.

The inspector general's authority to access and disseminate data was expanded to include 'not public data' for active investigations, with specific rules on when such data becomes public.

Created a new independent Office of the Inspector General with powers to conduct audits, investigations, and issue subpoenas, reporting directly to the chief administrative law judge.

Mandated that the OIG employ at least two licensed peace officers to assist with investigations requiring specialized law enforcement knowledge.

Added a requirement for an external quality assurance review of the OIG every three years, with findings made public.

Created an exception preventing certain divisions within the Department of Human Services (such as background studies and licensing) from transferring to the new OIG.

Established a specialized division within the OIG to investigate fraud, waste, and abuse involving state law enforcement and public safety programs, ensuring independence from the attorney general.

Changed the funding source for the OIG from the general fund directly to the office, instead of appropriating funds to the chief administrative law judge for the office's operations.

Renamed the oversight body from 'Inspector General Advisory Council' to 'Legislative Inspector General Advisory Commission' and changed its composition to include senators and representatives rather than public members.

Set a transition deadline of September 1, 2026, for the OIG to become fully operational and for existing inspector general offices to transition employees.

Added specific protections for employees transferring to the OIG, including preservation of job classification, collective bargaining agreements, and wage/benefit standards.