SF856

Purpose

Establish a new independent Office of the Inspector General (OIG) to ensure accountability, transparency, and integrity across state agencies and programs. The OIG is intended to operate separately from the rest of the executive branch and to receive public and internal referrals regarding waste, fraud, and abuse.

Main provisions

• Public referrals on waste, fraud, and abuse
  • The legislative auditor must refer any public reports about waste, fraud, or abuse (as defined in chapter 15D) to the inspector general for handling.
• Office of the Inspector General structure and independence
  • The inspector general will lead the Office of the Inspector General.
  • The inspector general operates as an independent entity and reports directly to the chief administrative law judge under chapter 14.
  • The inspector general must not be subjected to direction or interference from executive, legislative, or judicial authorities other than the chief administrative law judge.
  • The inspector general serves in the unclassified service.
• Salary transparency for agency heads
  • Many top state officials’ salaries must be determined by the Compensation Council.
  • The Commissioner of Management and Budget must publish these salaries on each department’s website.
  • The provision applies to a wide list of positions, including state agency commissioners, executive directors, and other high-level officials (e.g., Commissioner of Administration, Education, Health, Human Services, Transportation, Public Safety, and others, plus several specific executive roles and board/commission leaders).
• Codification and scope
  • Establishes the Office of the Inspector General within new or updated law and references the definition framework for waste, fraud, and abuse (as used in chapter 15D).

Significant changes to existing law

• New public reporting channel
  • Adds Subd.3b to Minnesota Statutes 2024 section 3.971, requiring all public reports of waste, fraud, and abuse to be referred to the inspector general.
  • Creates a formal pathway from the legislative auditor to the OIG for these issues.
• Salary disclosure requirement for agency heads
  • Amends Minnesota Statutes 2024 section 15A.0815 subdivision 2 to mandate salary determinations by the Compensation Council for a broad set of high-level state positions and require posting on department websites.
  • This change increases public visibility into compensation for top officials.
• Creation and governance of the OIG
  • Adds Minnesota Statutes chapter 15D to codify the Office of the Inspector General, define its independence, reporting line (to the chief administrative law judge), and its unclassified service status.
  • The OIG is positioned as an independent watchdog for state agencies and programs.

Relevant Terms - Office of the Inspector General - waste, fraud, and abuse - public reports - legislative auditor - Chapter 15D (definitions of waste, fraud, and abuse) - independent oversight - chief administrative law judge - chapter 14 - unclassified service - compensation council - agency head salaries - Minnesota statutes 2024 - Commissioner/Executive Director/Chair (various listed positions) - transparency - accountability