HF2963

HF2963 (Legislative Session 94 (2025-2026))

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grant oversight provided, retaliation prohibited, existing executive Offices of Inspector General transferred or repealed, detection and prevention of fraud provided, penalties provided, and money appropriated.

AI Generated Summary

Purpose of the Bill

The bill aims to establish an Office of the Inspector General in Minnesota to enhance the oversight and transparency related to the use of public funds. The Office will be responsible for investigating fraud, misuse, and other unlawful activities within state programs. It seeks to promote accountability and ensure efficient use of public resources.

Main Provisions

Creation of the Office of Inspector General (OIG): The Office is established under the legislative branch to monitor the use of public funds, particularly focusing on services funded by the state.
Powers and Duties: The Inspector General will have the authority to subpoena witnesses, conduct investigations, and report findings. The Office will also maintain a website and hotline for reporting suspected misuse of funds.
Preventing Fraud and Misuse: The bill outlines procedures for detecting and preventing fraud and requires agencies to cooperate fully with investigations conducted by the Inspector General.
Oversight of Grantmaking: The Inspector General will provide enhanced oversight over state grant activities, including the ability to recommend actions to prevent misuse of funds.
Coordination with Other Entities: The Office must work in conjunction with the Legislative Auditor and law enforcement agencies when dealing with suspected unlawful activities.
Reporting Requirements: The Inspector General is required to report regularly to the Legislative Audit Commission and provide summaries of their findings and actions.

Significant Changes to Existing Law

Transfer of Functions: Any existing offices related to the Inspector General within executive branches will be transferred or repealed to centralize these tasks under the new Office within the legislative branch.
Prohibition of Retaliation: Employees who report misuse or fraud will have protections against retaliation under section 181.932.
Mandatory Reporting: Agencies and specific public officials are required to promptly report any suspicions of fraud or misuse to the Inspector General and the Legislative Auditor.

Relevant Terms

Inspector General
Fraud Detection and Prevention
Legislative Audit Commission
State Fund Misuse
Government Accountability
Public Fund Oversight
Whistleblower Protections

Bill text versions

Introduction PDF file

Past committee meetings

Human Services Finance and Policy on: April 02, 2025 08:15

Actions

Date	Chamber	Where	Type	Name	Committee Name
March 31, 2025	House	Floor	Action	Introduction and first reading, referred to	Human Services Finance and Policy

Citations

[
  {
    "analysis": {
      "added": [
        "Expanded duties and oversight mechanisms for the new Office of Inspector General."
      ],
      "removed": [],
      "summary": "Modifications to the legislative review of the spending of public funds under section 3.855 subd. 3.",
      "modified": []
    },
    "citation": "3.855",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [
        "Clarification that fraud and misuse must be prevented and prosecuted."
      ],
      "removed": [],
      "summary": "Continuous legislative review of the spending of public funds under section 3.97 subd. 1.",
      "modified": [
        "Added responsibilities relating to cooperation with the inspector general."
      ]
    },
    "citation": "3.97",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Appointment and term obligations for legislative auditors under section 3.971 subd. 1.",
      "modified": [
        "Clarification that the legislative auditor may not hold any other public office."
      ]
    },
    "citation": "3.971",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Obligation for chief officers to notify the legislative auditor under section 3.971 subd. 9.",
      "modified": [
        "Requires coordination with the inspector general regarding unlawful use of funds."
      ]
    },
    "citation": "3.971",
    "subdivision": "subdivision 9"
  },
  {
    "analysis": {
      "added": [],
      "removed": [
        "Specific subd. 12 classification requirements."
      ],
      "summary": "The repeal of section 13.321 subd. 12 regarding data classification.",
      "modified": []
    },
    "citation": "13.321",
    "subdivision": "subdivision 12"
  },
  {
    "analysis": {
      "added": [
        "New directive to provide enhanced oversight of the state's grant-making process."
      ],
      "removed": [],
      "summary": "Oversight of grants under section 16B.97 subd. 2.",
      "modified": []
    },
    "citation": "16B.97",
    "subdivision": "subdivision 2"
  },
  {
    "analysis": {
      "added": [
        "Enhanced monitoring of compliance with grant management policies."
      ],
      "removed": [],
      "summary": "State grant management and compliance under section 16B.97 subd. 4.",
      "modified": []
    },
    "citation": "16B.97",
    "subdivision": "subdivision 4"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Reporting requirements for evidence of fraud under section 609.456 subd. 2.",
      "modified": [
        "Now includes reference to notifying the inspector general."
      ]
    },
    "citation": "609.456",
    "subdivision": "subdivision 2"
  }
]