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grant oversight provided, retaliation prohibited, existing executive Offices of Inspector General transferred or repealed, detection and prevention of fraud provided, penalties provided, and money appropriated.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

This bill aims to enhance the oversight and transparency of state funds and programs in Minnesota. It establishes an Office of the Inspector General to prevent fraud, misuse, and other unlawful uses of public funds. The bill seeks to provide more robust checks on how state resources are allocated and managed.

Main Provisions

Establishment of Office of the Inspector General: Creates a new office within the legislative branch, with the inspector general appointed by the Legislative Audit Commission for a six-year term.
Roles and Responsibilities: The inspector general is tasked to investigate suspected fraud and misuse of public funds, focusing specifically on state-funded services. This includes collaborating with law enforcement and providing oversight on state grantmaking.
Enhanced Grant Oversight: The inspector general will monitor state grant policies and recommend actions to prevent fraud or misuse. They will have the authority to embed staff within other state departments to increase oversight.
Data and Reporting: The inspector general has access to all government data for investigations and must protect this data in compliance with the Government Data Practices Act. Annual reports summarizing activities must be submitted to the Legislative Audit Commission.

Significant Changes to Existing Law

Transfer of Powers: Existing executive offices related to the inspector general are amended or repealed to consolidate these roles under the new Office of the Inspector General.
Penalties and Compliance: New legal penalties are introduced for failing to comply with investigations and for providing false information under oath.
Protection Against Retaliation: Employees who report suspected fraud or misuse are protected from retaliation under Minnesota law.

Relevant Terms

Inspector General
Fraud Prevention
Misuse of Public Funds
Legislative Audit Commission
Data Practices Act
State-Funded Services
Grant Oversight
Subpoena Power
Whistleblower Protection

Bill text versions

Introduction PDF file

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": [],
      "removed": [],
      "summary": "Amendments to legislative procedures relating to continuous legislative review of spending.",
      "modified": [
        "Adjusts review and financing procedures at all levels of government."
      ]
    },
    "citation": "3.855",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [
        "Clauses on fraud prevention and notification obligations."
      ],
      "removed": [],
      "summary": "This section was amended regarding policy on legislative review of public spending.",
      "modified": []
    },
    "citation": "3.97",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Appointment and term restrictions for the legislative auditor.",
      "modified": [
        "Clarification on removal conditions before term expiration."
      ]
    },
    "citation": "3.971",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [
        "Coordinate efforts between legislative auditor and inspector general."
      ],
      "removed": [],
      "summary": "Obligation to notify the legislative auditor of unlawful financial activities.",
      "modified": []
    },
    "citation": "3.971",
    "subdivision": "subdivision 9"
  },
  {
    "analysis": {
      "added": [
        "Increased requirements for the monitoring and potential debarment in grantmaking."
      ],
      "removed": [],
      "summary": "Provisions on state grant agreements and oversight are modified.",
      "modified": []
    },
    "citation": "16B.97",
    "subdivision": "subdivisions 2, 4"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Changes to grant administration and related oversight processes.",
      "modified": [
        "Inclusions for coordinated efforts in detection and deterrence of grant fraud."
      ]
    },
    "citation": "16B.98",
    "subdivision": "subdivisions 4, 8, 14"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Modifications to grant management policies.",
      "modified": [
        "Changes to specific roles and responsibilities in grant monitoring."
      ]
    },
    "citation": "16B.991",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Reporting obligations for fraud or misuse of public funds to the legislative auditor and inspector general.",
      "modified": [
        "Enhances coordination between entities on reporting obligations."
      ]
    },
    "citation": "609.456",
    "subdivision": "subdivision 2"
  }
]