After weeks-long standstill, independent office designed to fight fraud advances in Minnesota House
After weeks in limbo, a proposal to set up a new independent watchdog agency to crack down on fraud in social services programs is moving forward in the Minnesota House.
The bill to establish an Office of Inspector General advanced out of a key committee on Tuesday after it had been at a standstill since the session began. The proposal passed smoothly out of the Senate with broad bipartisan support last year, but Republicans and Democrats in the House were at odds about what the office should look like.
Then the small breakthrough arrived to move it forward out of the deadlocked committee ahead of a key deadline this week. In a tied House, any legislation needs bipartisan support to advance and ultimately pass the chamber.
Among the sticking points was whether there should be a law enforcement division inside the office — or if that work was too similar to what the Minnesota Bureau of Criminal Apprehension is already doing when it comes to financial crimes, which is what House Democrats initially argued.
An amendment that passed in the House State Government Committee put those powers back into the bill and also added some fraud prevention measures, so the work of the OIG expands beyond just investigations and prosecutions after the theft of public funds occurred.
"I am committed to working with my colleagues on both sides of the aisle including [GOP] Rep. Anderson as this bill progresses through future committee stops to resolve the remaining sticking points required for it to pass the House and deliver on our shared goal of fighting fraud in Minnesota," said DFL Rep. Matt Norris, who is the lead author of the House bill.
The Senate version passed 60-7 last session and the changes approved Tuesday mirror some provisions in that bill. Under the updated House legislation, the Office of Inspector General would establish best practices for fraud state agencies and check for compliance; conduct investigations into fraud; have subpoena power; and maintain a tip line for the public.
The proposal also empowers the office to seek a court order to freeze funds to program recipients if suspected of fraud. A commission would recommend candidates to be the inspector general for the governor to choose from and any pick of his would require Senate confirmation, like other agency heads, subject to a three-fifths majority vote.
"This bill is going to leave this committee in a better condition than it showed up in," said Rep. Jim Nash, the Republican co-chair of the panel who had fought for provisions in the bill that closely aligned with the Senate plan.
While Tuesday marked a notable step forward, some lawmakers have lingering concerns, which signals there could still be a bumpy road ahead. Additional changes could be coming.
"I will not commit to a floor vote until these really important issues are fixed," said Rep. Ginny Klevorn, the DFL co-chair of the state government panel.
There will be at least two hearings before the measure goes to the House floor for a full chamber vote and DFL Gov. Tim Walz has indicated he would sign it into law if it comes to his desk.
GOP House Speaker Lisa Demuth told WCCO News on Monday that she expects the bill to move more quickly once lawmakers return from a short break for the Easter and Passover holiday next week.
"If House Democrats are serious about wanting to get it done instead of just delays in committees, they will get it done when we return. I would fully expect that you will see that be calendared and passed in a heavily bipartisan vote here on the House floor," she said.
DFL Sen. Heather Gustafason, the author of the Senate bill, in a statement praised the step forward for the effort in the House, calling the move "substantial progress." Both parties at the Capitol have cited fighting fraud as a top priority this legislative session.
"Minnesotans deserve both compassion in their programs and accountability in how those programs are run. This office will deliver both. I look forward to working with colleagues in the House to get this across the finish line," she said.