Minnesota's new fraud watchdog committee holds first Capitol meeting: "It's going to make a big difference"

After years of debate and drafting legislation, a new task force on fraud held its first meeting Wednesday at the Minnesota State Capitol.

Lawmakers say the Office of Inspector General is the most significant step towards fighting fraud in the state's history. When the office is built, it will be home to dozens of full-time investigators who will inspect every level of state agency to find malfeasance.

"We finally got here. The OIG is finally happening," said Republican state Sen. Michael Kreun. "It's going to make a big difference in Minnesota."

Investigations will be turned over to a new, in-house law enforcement division for civil or criminal charges. 

The committee is made of a bipartisan group of eight lawmakers from both the House and Senate. Wednesday morning, the team chose a chair and vice chair, and then immediately got to work on their next step: finding and hiring a new inspector general.

They're looking for someone with a background in auditing, law enforcement or investigations. The committee plans to have a recommendation to go to the state's new governor by Jan. 1, 2027. Then the new governor will have another month to approve the pick followed by Senate ratification.

The governor will then make a recommendation, and that candidate would go to the Senate for approval.

The team on Wednesday touted the moment's significance.

"This is a historic moment for Minnesota," said DFL state Sen. Heather Gustafson, who was chosen as the new board chair. "Our state took a step forward. This office has teeth, subpoena power, investigative authority, real consequences for fraud and misuse of public funds." 

Rep. Jim Nash said the inspector general will have the power to inspect any agency or level of state government. He says they can't get here soon enough.

The office will cost more than $10 million to run each year, but lawmakers say it's money well spent.