Minnesota Senate gives final OK to Office of Inspector General to fight fraud, sending bill to Gov. Tim Walz's desk
The Minnesota Senate on Monday unanimously gave final approval to a new statewide Office of Inspector General to fight fraud, sending the legislation to Gov. Tim Walz's desk for signature in what supporters see as a significant step to combatting theft of taxpayer money in public programs that's beleaguered the state for years.
After months of back and forth over the details, Republicans and Democrats in both chambers found a way forward to get the new independent watchdog agency over the finish line when the House finally passed a version off the floor last week.The Senate on Monday then quickly adopted the same language. Walz is expected to sign the bill into law, which would set off a monthslong process of getting the office off the ground.
The inspector general at the helm — who must be nonpartisan and subject to three-fifths majority Senate confirmation — is tasked with conducting investigations, recommending changes to state law, instructing agencies to withhold payments to providers for credible allegations of fraud and maintaining a tip line for reports of misuse of funds.
It also empowers the office to hire staff, if the inspector general chooses, for a specific law enforcement division that can conduct criminal investigations and make arrests. The legislation initially cleared the Senate last session, but didn't pass the House.
A small group of lawmakers in both chambers worked for months on a deal.
"What has not changed is everything that matters most about this bill. The inspector general answers to no commissioner, no agency head, no single executive. Removal requires cause, a public hearing and approval of both chambers," said Sen. Heather Gustafson, DFL-Vadnais Heights, the Senate author.
"It is a truly independent oversight authority," she added.
A bipartisan advisory committee will assemble a slate of candidates for the top role starting in August. The governor would then choose from that list, and then there would be an appointment to the role, subject to Senate confirmation by Feb. 1, 2027.
Starting the new agency from scratch will cost anywhere from $3 million to $6 million to set up, and upwards of $12 million per year on an ongoing basis for the office to function on its own and for other agencies to interact with it.
But Republicans and Democrats both agree the price tag is worth it if the return on investment is saving millions of taxpayer money from fraud in the future.
A lot of the decisions about funding will be left for future Legislatures to decide. There would be even more costs associated with standing up a law enforcement division at the inspector general's discretion.
"I think Minnesotans should be proud of how we conducted our work on this bill and I think it will make a difference," said Sen. Michael Kreun, R-Blaine, the Republican Senate lead on the measure.