1.1 	A bill for an act
1.2 	relating to state government; creating the Office of the Inspector General; creating 
1.3 	an advisory committee; making conforming and technical changes; providing for 
1.4 	interagency agreements; requiring reports; appropriating money;amending 
1.5 	Minnesota Statutes 2024, sections 3.971, by adding a subdivision; 15A.0815, 
1.6 	subdivision 2; 127A.21, subdivision 1a, by adding subdivisions; 142A.03, by 
1.7 	adding a subdivision; 142A.12, subdivision 5; 144.05, by adding a subdivision; 
1.8 	245.095, subdivision 5; 256.01, by adding a subdivision; 609.456, subdivision 2; 
1.9 	Minnesota Statutes 2025 Supplement, sections 10A.01, subdivision 35; 13.82, 
1.10 	subdivision 1; 127A.21, subdivision 5; 626.84, subdivision 1; proposing coding 
1.11 	for new law as Minnesota Statutes, chapter 15E; repealing Minnesota Statutes 
1.12 	2024, sections 13.321, subdivision 12; 127A.21, subdivisions 1, 2, 3, 4, 6, 7.
1.13 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.14 	ARTICLE 1
1.15 	OFFICE OF THE INSPECTOR GENERAL

1.16 	Section 1. Minnesota Statutes 2024, section 3.971, is amended by adding a subdivision 
1.17 	to read:
1.18 		Subd. 3b.Public reports of fraud and misuse. Notwithstanding the classification of 
1.19 	data as not public, the legislative auditor must refer all credible reports from the public 
1.20 	about potential fraud or misuse, as those terms are defined in chapter 15E, to the inspector 
1.21 	general appointed under chapter 15E. The legislative auditor may coordinate reviews and 
1.22 	investigations with the inspector general when coordination conserves resources and does 
1.23 	not compromise the reviews or investigations.

1.24 	EFFECTIVE DATE. This section is effective January 1, 2027.

2.1 	Sec. 2. Minnesota Statutes 2025 Supplement, section 10A.01, subdivision 35, is amended 
2.2 	to read:
2.3 		Subd. 35.Public official. "Public official" means any:
2.4 	(1) member of the legislature;
2.5 	(2) individual employed by the legislature as secretary of the senate, legislative auditor, 
2.6 	director of the Legislative Budget Office, chief clerk of the house of representatives, revisor 
2.7 	of statutes, or researcher, legislative analyst, fiscal analyst, or attorney in the Office of 
2.8 	Senate Counsel, Research and Fiscal Analysis, House Research, or the House Fiscal Analysis 
2.9 	Department;
2.10 	(3) constitutional officer in the executive branch and the officer's chief administrative 
2.11 	deputy;
2.12 	(4) solicitor general or deputy, assistant, or special assistant attorney general;
2.13 	(5) commissioner, deputy commissioner, or assistant commissioner of any state 
2.14 	department or agency as listed in section 15.01 or 15.06, or the state chief information 
2.15 	officer;
2.16 	(6) member, chief administrative officer, or deputy chief administrative officer of a state 
2.17 	board or commission that has either the power to adopt, amend, or repeal rules under chapter 
2.18 	14, or the power to adjudicate contested cases or appeals under chapter 14;
2.19 	(7) individual employed in the executive branch who is authorized to adopt, amend, or 
2.20 	repeal rules under chapter 14 or adjudicate contested cases under chapter 14;
2.21 	(8) executive director of the State Board of Investment;
2.22 	(9) deputy of any official listed in clauses (7) and (8);
2.23 	(10) judge of the Workers' Compensation Court of Appeals;
2.24 	(11) administrative law judge or compensation judge in the State Office of Administrative 
2.25 	Hearings or unemployment law judge in the Department of Employment and Economic 
2.26 	Development;
2.27 	(12) member, regional administrator, division director, general counsel, or operations 
2.28 	manager of the Metropolitan Council;
2.29 	(13) member or chief administrator of a metropolitan agency;
2.30 	(14) director of the Division of Alcohol and Gambling Enforcement in the Department 
2.31 	of Public Safety;
3.1 	(15) member or executive director of the Health and Education Facilities Authority;
3.2 	(16) member of the board of directors or president of Enterprise Minnesota, Inc.;
3.3 	(17) member of the board of directors or executive director of the Minnesota State High 
3.4 	School League;
3.5 	(18) member of the Minnesota Ballpark Authority established in section 473.755;
3.6 	(19) citizen member of the Legislative-Citizen Commission on Minnesota Resources;
3.7 	(20) manager of a watershed district, or member of a watershed management organization 
3.8 	as defined under section 103B.205, subdivision 13;
3.9 	(21) supervisor of a soil and water conservation district;
3.10 	(22) director of Explore Minnesota Tourism;
3.11 	(23) citizen member of the Lessard-Sams Outdoor Heritage Council established in section 
3.12 	97A.056;
3.13 	(24) citizen member of the Clean Water Council established in section 114D.30;
3.14 	(25) member or chief executive of the Minnesota Sports Facilities Authority established 
3.15 	in section 473J.07;
3.16 	(26) district court judge, appeals court judge, or supreme court justice;
3.17 	(27) county commissioner;
3.18 	(28) member of the Greater Minnesota Regional Parks and Trails Commission;
3.19 	(29) member of the Destination Medical Center Corporation established in section 
3.20 	469.41; or
3.21 	(30) chancellor or member of the Board of Trustees of the Minnesota State Colleges 
3.22 	and Universities; or
3.23 	(31) inspector general appointed under chapter 15E, or individual employed by the Office 
3.24 	of the Inspector General.

3.25 	EFFECTIVE DATE. This section is effective January 1, 2027.

3.26 	Sec. 3. Minnesota Statutes 2024, section 15A.0815, subdivision 2, is amended to read:
3.27 		Subd. 2.Agency head salaries. The salary for a position listed in this subdivision shall 
3.28 	be determined by the Compensation Council under section 15A.082. The commissioner of 
4.1 	management and budget must publish the salaries on the department's website. This 
4.2 	subdivision applies to the following positions:
4.3 	Commissioner of administration;
4.4 	Commissioner of agriculture;
4.5 	Commissioner of education;
4.6 	Commissioner of children, youth, and families;
4.7 	Commissioner of commerce;
4.8 	Commissioner of corrections;
4.9 	Commissioner of health;
4.10 	Commissioner, Minnesota Office of Higher Education;
4.11 	Commissioner, Minnesota IT Services;
4.12 	Commissioner, Housing Finance Agency;
4.13 	Commissioner of human rights;
4.14 	Commissioner of human services;
4.15 	Commissioner of labor and industry;
4.16 	Commissioner of management and budget;
4.17 	Commissioner of natural resources;
4.18 	Commissioner, Pollution Control Agency;
4.19 	Commissioner of public safety;
4.20 	Commissioner of revenue;
4.21 	Commissioner of employment and economic development;
4.22 	Commissioner of transportation;
4.23 	Commissioner of veterans affairs;
4.24 	Executive director of the Gambling Control Board;
4.25 	Executive director of the Minnesota State Lottery;
4.26 	Executive director of the Office of Cannabis Management;
4.27 	Inspector general appointed under chapter 15E;
5.1 	Commissioner of Iron Range resources and rehabilitation;
5.2 	Commissioner, Bureau of Mediation Services;
5.3 	Ombudsman for mental health and developmental disabilities;
5.4 	Ombudsperson for corrections;
5.5 	Chair, Metropolitan Council;
5.6 	Chair, Metropolitan Airports Commission;
5.7 	School trust lands director;
5.8 	Executive director of pari-mutuel racing;
5.9 	Commissioner, Public Utilities Commission;
5.10 	Chief Executive Officer, Direct Care and Treatment; and
5.11 	Director of the Office of Emergency Medical Services.

5.12 	EFFECTIVE DATE. This section is effective January 1, 2027.

5.13 	Sec. 4. [15E.10] OFFICE OF THE INSPECTOR GENERAL.
5.14 	(a) The inspector general serves as an independent entity in the executive branch 
5.15 	responsible for ensuring accountability, transparency, and integrity in the operations of state 
5.16 	agencies and programs.
5.17 	(b) In exercising the inspector general's powers and duties, the inspector general must 
5.18 	operate independently of all state executive branch agencies and report directly to the 
5.19 	governor. The inspector general is not subject to direction or interference from any executive 
5.20 	or legislative authority, except as directed by enacted law.
5.21 	(c) The inspector general shall direct an Office of the Inspector General.
5.22 	(d) The inspector general serves in the unclassified service.

5.23 	EFFECTIVE DATE. This section is effective January 1, 2027.

5.24 	Sec. 5. [15E.15] DEFINITIONS.
5.25 	For the purposes of this chapter, the following terms have the meanings given:
5.26 	(1) "agency program" means a program funded or administered by a state department 
5.27 	or agency, including grants and contracts;
6.1 	(2) "fraud" means an intentional or deceptive act or failure to act to gain an unlawful 
6.2 	benefit;
6.3 	(3) "investigation" means an audit, review, or inquiry conducted by the inspector general 
6.4 	to detect or prevent fraud or misuse;
6.5 	(4) "misuse" means improper use of authority or position for personal gain or to cause 
6.6 	harm to others, including the improper use of public resources or programs contrary to their 
6.7 	intended purpose; and
6.8 	(5) "personal gain" means a benefit to a person; to a person's spouse, parent, child, or 
6.9 	other legal dependent; or to an in-law of the person or the person's child.

6.10 	EFFECTIVE DATE. This section is effective January 1, 2027.

6.11 	Sec. 6. [15E.20] INSPECTOR GENERAL.
6.12 		Subdivision 1.Minimum qualifications. (a) To be eligible to be appointed as inspector 
6.13 	general, a candidate must:
6.14 	(1) have a bachelor's or higher degree in criminal justice, public administration, law, or 
6.15 	a related field;
6.16 	(2) have at least ten years of professional experience in auditing, investigations, law 
6.17 	enforcement, or a related area;
6.18 	(3) hold a professional certificate from the Association of Inspectors General, including 
6.19 	Certified Inspector General or Certified Inspector General Investigator; and
6.20 	(4) demonstrate a commitment to safeguarding the mission of public service and provide 
6.21 	a public disclosure of prior professional opinions, positions, or actions that may influence 
6.22 	the candidate's approach to the role.
6.23 	(b) Current or former commissioners, agency heads, deputy commissioners or agency 
6.24 	heads, governors, or legislators, and persons elected to an office other than governor or 
6.25 	legislator, are not eligible to serve as inspector general within five years of their service in 
6.26 	those roles.
6.27 		Subd. 2.Appointment. The Legislative Inspector General Advisory Commission must 
6.28 	recommend candidates for inspector general after a competitive process from among eligible 
6.29 	applicants for the position of inspector general. To be recommended by the commission, a 
6.30 	candidate must be approved for recommendation by five of the eight members of the 
6.31 	commission. The commission must assess eligible candidates based on qualifications, 
6.32 	including experience in auditing, financial analysis, public administration, law enforcement, 
7.1 	or related fields. The inspector general is appointed by the governor, after consideration of 
7.2 	recommendations from the Legislative Inspector General Advisory Commission, with 
7.3 	confirmation by a vote of three-fifths of the senate. Section 15.066, subdivision 3, does not 
7.4 	apply.
7.5 		Subd. 3.Term. The inspector general serves a five-year term and may be appointed to 
7.6 	unlimited additional terms. An appointment to an additional term must be confirmed by a 
7.7 	vote of three-fifths of the senate.
7.8 		Subd. 4.Vacancy. The Legislative Inspector General Advisory Commission must provide 
7.9 	recommendations to the governor for appointment to fill a vacancy in the position of the 
7.10 	inspector general within 90 days of a vacancy occurring or within 60 days of being advised 
7.11 	by the inspector general that a vacancy is expected to occur. The governor must appoint an 
7.12 	inspector general within 30 days of receiving recommendations from the Legislative Inspector 
7.13 	General Advisory Commission or within 45 days of expiration of the 90- or 60-day period 
7.14 	if the advisory commission does not provide recommendations within the time allotted.
7.15 		Subd. 5.Disclosure. A candidate considered by the Legislative Inspector General 
7.16 	Advisory Commission or selected for appointment by the governor must disclose all political 
7.17 	affiliations, appointments, campaign work, or partisan activities prior to confirmation.
7.18 		Subd. 6.Nonpartisanship. The inspector general, and all employees of the office, must 
7.19 	perform duties of the office without regard to partisan preferences or influences. While 
7.20 	serving, the inspector general, and all employees of the office, may not engage in partisan 
7.21 	activities, campaign work, or public political speech, unless protected by the state or federal 
7.22 	constitution.
7.23 		Subd. 7.Removal. The inspector general may only be removed by the governor before 
7.24 	the expiration of the term for cause after a public hearing conducted by the governor and 
7.25 	with the approval of both the senate and the house of representatives.

7.26 	EFFECTIVE DATE. This section is effective January 1, 2027.

7.27 	Sec. 7. [15E.25] POWERS AND DUTIES.
7.28 		Subdivision 1.Authorized powers and responsibilities. The inspector general is 
7.29 	authorized and responsible to:
7.30 	(1) establish standards and best practices concerning the operation, investigations, and 
7.31 	fraud prevention processes of department and agency inspectors general, and periodically 
7.32 	review department and agency compliance with these standards and best practices. 
8.1 	Departments and agencies must follow standards developed by the inspector general under 
8.2 	this clause;
8.3 	(2) facilitate information sharing between departments and agencies, including 
8.4 	coordinating investigations that involve multiple departments or agencies and designating 
8.5 	a lead department or agency, coordinating and assisting department or agency identification 
8.6 	and review of suspicious documents and data anomalies, and alerting other departments or 
8.7 	agencies when a person suspected of committing fraud against any agency program may 
8.8 	also be participating in, or applying to participate in, a program administered by another 
8.9 	department or agency;
8.10 	(3) evaluate the performance of department and agency inspector general offices and 
8.11 	recommend improvements, as needed, to the department's commissioner or agency's head 
8.12 	and inspector general. A commissioner or agency head that receives a recommendation 
8.13 	under this clause must report annually to the chairs and ranking minority members of the 
8.14 	legislative committees with jurisdiction over the department or agency regarding the 
8.15 	department's or agency's implementation of the inspector general's recommendations until 
8.16 	the inspector general notifies the commissioner or agency head and the chairs and ranking 
8.17 	members that the recommendation was resolved in a satisfactory manner;
8.18 	(4) conduct inspections, evaluations, and investigations of state executive branch 
8.19 	departments and agencies and programs, with a focus on recipients of public funds and 
8.20 	publicly funded services, to: (i) identify fraud and misuse; (ii) make recommendations for 
8.21 	changes to programs to prevent fraud and misuse; and (iii) protect the integrity of the use 
8.22 	of public funds, data, and systems;
8.23 	(5) refer matters for civil, criminal, or administrative action to the Office of the Inspector 
8.24 	General Anti-Fraud and Waste Bureau under section 15E.27, the Bureau of Criminal 
8.25 	Apprehension, the attorney general's office, or other appropriate authorities;
8.26 	(6) recommend legislative or policy changes to improve program efficiency and 
8.27 	effectiveness;
8.28 	(7) publish reports on completion of an investigation summarizing findings, 
8.29 	recommendations, and outcomes of the inspector general's activities;
8.30 	(8) investigate any public or private entity that receives public funds to ensure compliance 
8.31 	with applicable laws, proper use of funds, and adherence to program requirements;
9.1 	(9) submit an annual report summarizing the work of the office to the Legislative 
9.2 	Inspector General Advisory Commission and make the report publicly available by posting 
9.3 	the report on the inspector general's website;
9.4 	(10) alert relevant commissioners or heads of departments and agencies when the 
9.5 	inspector general has a reasonable suspicion that fraud or misuse is being committed, whether 
9.6 	or not the inspector general is conducting an investigation, as provided in subdivision 3; 
9.7 	and
9.8 	(11) establish and maintain a current exclusion list in a format readily accessible to 
9.9 	departments and agencies that identifies each program and individual for which the inspector 
9.10 	general has obtained a court order to freeze or cease distribution of funds or made a 
9.11 	recommendation under clause (10) to freeze or cease distribution of funds.
9.12 		Subd. 2.Relationship to powers and duties of other agencies. (a) The inspector general 
9.13 	has authority to investigate fraud and misuse of public funds across all programs administered 
9.14 	by state departments and agencies.
9.15 	(b) The inspector general may perform the inspector general's duties and apply the 
9.16 	inspector general's authority without obtaining approval from another department or agency.
9.17 	(c) The Department of Human Services has primary responsibility to investigate fraud 
9.18 	in the Medicaid program, but the inspector general has authority to conduct independent 
9.19 	investigations related to the Medicaid program as necessary.
9.20 	(d) The Department of Children, Youth, and Families has primary responsibility to 
9.21 	investigate fraud in the child care assistance program, but the inspector general has authority 
9.22 	to conduct independent investigations related to the child care assistance program.
9.23 	(e) The Department of Health has primary responsibility to investigate fraud related to 
9.24 	women, infants, and children (WIC) and food support programs, but the inspector general 
9.25 	has authority to conduct independent investigations related to WIC and food support 
9.26 	programs.
9.27 	(f) The inspector general has concurrent authority over program integrity assessments 
9.28 	that are related to fraud or misuse.
9.29 	(g) The inspector general must refer all credible reports from the public about potential 
9.30 	fraud or misuse to the legislative auditor, and to the commissioner of human services for 
9.31 	reports related to Medicaid. The inspector general may coordinate investigations with the 
9.32 	legislative auditor, and the commissioner of human services for investigations related to 
9.33 	Medicaid, when coordination conserves resources and does not compromise an investigation.
10.1 	(h) The Department of Information Technology Services shall provide services to the 
10.2 	Office of the Inspector General, under a managed services contract, according to section 
10.3 	16E.016.
10.4 	(i) Nothing in this chapter may be construed to limit or interfere with the legislative 
10.5 	auditor's authority or responsibility.
10.6 		Subd. 3.Alerting agency of issue; seeking a court order to freeze funds. (a) If the 
10.7 	department or agency does not have primary investigative authority under subdivision 2, 
10.8 	the inspector general shall investigate and, if the inspector general has a reasonable suspicion 
10.9 	that fraud or misuse is occurring, then the inspector general may, at the inspector general's 
10.10 	discretion, alert the commissioner or agency head and seek a court order to freeze or stop 
10.11 	distribution of public funds, including any applicable due process and appeal rights, working 
10.12 	in cooperation with the department or agency where practical and where it would not 
10.13 	jeopardize an investigation.
10.14 	(b) If the department or agency has primary investigative authority under subdivision 2 
10.15 	but the inspector general is not satisfied that the department's or agency's internal 
10.16 	investigation is adequate or proceeding quickly enough, the inspector general may 
10.17 	independently investigate and, if the inspector general has a reasonable suspicion that fraud 
10.18 	or misuse is being committed, may make a recommendation to the department or agency 
10.19 	to freeze or cease distribution of funds and notify the appropriate law enforcement agencies.
10.20 	(c) If a commissioner of a department or head of an agency does not act on a 
10.21 	recommendation to freeze or cease distribution of funds as requested, after reasonable notice 
10.22 	and consistent with any applicable interagency agreements under section 19, unless prohibited 
10.23 	by federal requirements, the inspector general may, at the inspector general's discretion, 
10.24 	seek a court order to freeze or stop distribution of public funds, consistent with applicable 
10.25 	due process and appeal rights.
10.26 	(d) If public funds are stopped or frozen pursuant to this subdivision, the inspector 
10.27 	general, working with and through the applicable state department or agency, must ensure 
10.28 	that any person whose public funds are interrupted and who is not implicated in the suspected 
10.29 	fraud or misuse receive notice of their rights related to continued receipt of the public funds, 
10.30 	services, or programs for which they are eligible.

10.31 	EFFECTIVE DATE. Subdivision 2, paragraph (c), and subdivision 3, paragraphs (b) 
10.32 	and (c), are effective January 1, 2027, or upon federal approval from the Centers for Medicare 
10.33 	and Medicaid Services, whichever is later. The commissioner of human services must notify 
11.1 	the revisor of statutes when the Centers for Medicare and Medicaid Services approve or 
11.2 	deny this section. The remainder of this section is effective January 1, 2027.

11.3 	Sec. 8. [15E.27] LAW ENFORCEMENT POWERS.
11.4 		Subdivision 1.Authorization. (a) The inspector general may appoint peace officers, as 
11.5 	defined in section 626.84, subdivision 1, paragraph (c), and establish a law enforcement 
11.6 	agency, as defined in section 626.84, subdivision 1, paragraph (f), known as the Office of 
11.7 	the Inspector General Anti-Fraud and Waste Bureau, to conduct statewide investigations, 
11.8 	and to make statewide arrests under sections 629.30 and 629.34. The primary jurisdiction 
11.9 	of the agency is limited to offenses involving fraud, abuse, and any other criminal conduct 
11.10 	within the jurisdiction of the Office of the Inspector General as described in this chapter.
11.11 	(b) Upon request and at the inspector general's discretion, the bureau may respond to a 
11.12 	law enforcement agency's request to exercise law enforcement duties in cooperation with 
11.13 	the law enforcement agency that has jurisdiction over the particular matter.
11.14 		Subd. 2.Arrests and investigations. The initial processing of a person arrested by the 
11.15 	bureau for an offense within its jurisdiction is the responsibility of the bureau unless otherwise 
11.16 	directed by the law enforcement agency with primary jurisdiction. Subsequent investigation 
11.17 	is the responsibility of the bureau unless otherwise directed by the law enforcement agency 
11.18 	with primary jurisdiction. At the request of the primary jurisdiction, the bureau may assist 
11.19 	in a subsequent investigation being carried out by the primary jurisdiction.
11.20 		Subd. 3.Policy for notice of investigations. The bureau must develop a policy for 
11.21 	notifying the law enforcement agency with primary jurisdiction when it has initiated 
11.22 	investigation of any person within the jurisdiction of that agency.
11.23 		Subd. 4.Chief law enforcement officer. If the inspector general establishes a law 
11.24 	enforcement agency under this section, the inspector general shall appoint a peace officer 
11.25 	employed full time to be the chief law enforcement officer and to be responsible for the 
11.26 	management of the bureau. The chief law enforcement officer shall possess the necessary 
11.27 	police and management experience to manage a law enforcement agency. The chief law 
11.28 	enforcement officer may appoint, discipline, and discharge all employees of the bureau. All 
11.29 	police managerial and supervisory personnel must be full-time employees of the bureau. 
11.30 	Supervisory personnel must be on duty and available any time peace officers of the bureau 
11.31 	are on duty.
12.1 		Subd. 5.Compliance; powers and duties. (a) Except as otherwise provided in this 
12.2 	section, the bureau shall comply with all statutes and administrative rules relating to the 
12.3 	operation and management of a law enforcement agency.
12.4 	(b) The bureau has the powers and duties of a law enforcement agency as provided by 
12.5 	law, including this section. Other powers and duties provided to the inspector general or 
12.6 	the Office of the Inspector General under this chapter do not apply to the bureau.
12.7 		Subd. 6.Evidence, documentation, and related materials. If the bureau seeks evidence, 
12.8 	documentation, and related materials pertinent to an investigation, and the matter is located 
12.9 	outside of this state, the bureau may designate representatives, including officials of the 
12.10 	state where the matter is located, to secure the matter or inspect the matter on its behalf.
12.11 		Subd. 7.Annual report on activities and cost-effectiveness. The bureau shall maintain 
12.12 	records and information in order to produce an annual report of its activities as may be 
12.13 	prescribed by the inspector general. The inspector general shall report annually to the chairs 
12.14 	and ranking minority members of the house of representatives and senate committees with 
12.15 	jurisdiction over the inspector general as to the activities and the cost-effectiveness of the 
12.16 	bureau.
12.17 		Subd. 8.Assignment of peace officers. Regardless of whether a law enforcement agency 
12.18 	is established under this section, the inspector general may enter into memorandums of 
12.19 	understanding with chief law enforcement officers of state and local law enforcement 
12.20 	agencies to allow peace officers from those agencies to be assigned with the Office of the 
12.21 	Inspector General to enforce criminal laws and investigate matters within the jurisdiction 
12.22 	of the office. A peace officer assigned under this subdivision must be a licensed peace 
12.23 	officer as defined in section 626.84, subdivision 1, paragraph (c). Participating officers 
12.24 	remain employees of the same entity that employed them before being assigned under this 
12.25 	subdivision. Participating officers are subject to annual performance reviews conducted by 
12.26 	the entity's operational supervisor. Peace officers assigned under this subdivision have 
12.27 	statewide jurisdiction to conduct criminal investigations and have the same powers of arrest 
12.28 	as those possessed by a sheriff.
12.29 		Subd. 9.Data practices. The Office of the Inspector General Anti-Fraud and Waste 
12.30 	Bureau is subject to chapter 13.

12.31 	EFFECTIVE DATE. This section is effective January 1, 2027.

13.1 	Sec. 9. [15E.30] AUXILIARY POWERS.
13.2 		Subdivision 1.Subpoena power. In all matters relating to official duties, the inspector 
13.3 	general has the powers possessed by courts of law to issue and have subpoenas served.
13.4 		Subd. 2.Inquiry and inspection power; duty to aid inspector general. All executive 
13.5 	branch officials and their deputies and employees, all political subdivision officials and 
13.6 	employees administering state-funded programs, and all corporations, firms, and individuals 
13.7 	having business involving the receipt, disbursement, or custody of public funds shall at all 
13.8 	times:
13.9 	(1) afford reasonable facilities for examinations by the inspector general;
13.10 	(2) provide returns and reports required by the inspector general;
13.11 	(3) attend and answer under oath the inspector general's lawful inquiries;
13.12 	(4) produce and exhibit all books, accounts, documents, data of any classification, and 
13.13 	property that the inspector general requests to inspect; and
13.14 	(5) in all things cooperate with the inspector general.
13.15 		Subd. 3.Penalties. (a) If a person refuses or neglects to obey any lawful direction of 
13.16 	the inspector general, a deputy, or assistant, or withholds any information, book, record, 
13.17 	paper or other document called for by the inspector general for the purpose of examination, 
13.18 	after having been lawfully required by order or subpoena, upon application by the inspector 
13.19 	general, a judge of the district court in the county where the order or subpoena was made 
13.20 	returnable shall compel obedience or punish disobedience as for contempt, as in the case 
13.21 	of a similar order or subpoena issued by the court.
13.22 	(b) A person who swears falsely concerning any matter stated under oath is guilty of a 
13.23 	gross misdemeanor.

13.24 	EFFECTIVE DATE. This section is effective January 1, 2027.

13.25 	Sec. 10. [15E.35] IDENTIFICATION OF FRAUD REPORTING TOOL.
13.26 	(a) The commissioner or head of each executive branch department or agency must 
13.27 	prominently highlight on the department's or agency's website the fraud reporting tools 
13.28 	administered by the Office of the Inspector General under this chapter, and by the Office 
13.29 	of the Legislative Auditor under chapter 3.
13.30 	(b) As part of any grant agreement between the state and a nonprofit organization, the 
13.31 	agreement must require the nonprofit organization to prominently highlight on the 
14.1 	organization's website the fraud reporting tools administered by the Office of the Inspector 
14.2 	General under this chapter, and by the Office of the Legislative Auditor under chapter 3. 
14.3 	The state department or agency administering the grant must regularly confirm and document 
14.4 	the organization's compliance with the requirement under this paragraph for the life of the 
14.5 	grant agreement.

14.6 	EFFECTIVE DATE. This section is effective January 1, 2027.

14.7 	Sec. 11. [15E.40] DATA PRACTICES.
14.8 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
14.9 	the meanings given.
14.10 	(b) "Confidential data on individuals" has the meaning given in section 13.02, subdivision 
14.11 	3.
14.12 	(c) "Government entity" has the meaning given in section 13.02, subdivision 7a.
14.13 	(d) "Nonpublic data" has the meaning given in section 13.02, subdivision 9.
14.14 	(e) "Not public data" has the meaning given in section 13.02, subdivision 8a.
14.15 	(f) "Private data on individuals" has the meaning given in section 13.02, subdivision 12.
14.16 	(g) "Protected nonpublic data" has the meaning given in section 13.02, subdivision 13.
14.17 		Subd. 2.Government Data Practices Act. The Office of the Inspector General is a 
14.18 	government entity and is subject to the Government Data Practices Act, chapter 13. The 
14.19 	inspector general is the head of a state agency for purposes of section 13.43, subdivision 2, 
14.20 	paragraph (e).
14.21 		Subd. 3.Access. In order to perform the duties under this chapter, the inspector general 
14.22 	has access to data of any classification, including data classified as not public data. It is not 
14.23 	a violation of chapter 13 or any other statute classifying government data as not public data 
14.24 	if a government entity provides data pursuant to a subpoena issued under this chapter.
14.25 		Subd. 4.Dissemination. The inspector general may disseminate data of any classification, 
14.26 	including not public data, to:
14.27 	(1) a government entity, other than a law enforcement agency or prosecuting authority, 
14.28 	if the dissemination of the data aids a pending investigation or administrative action;
14.29 	(2) a law enforcement agency or prosecuting authority if there is reason to believe that 
14.30 	the data are evidence of criminal activity within the agency's or authority's jurisdiction;
14.31 	(3) the legislative auditor; or
15.1 	(4) the commissioner of human services as provided in section 15E.25, subdivision 2, 
15.2 	paragraph (g).
15.3 		Subd. 5.Data classifications; civil investigations. (a) Notwithstanding any other law, 
15.4 	data relating to a civil investigation conducted under this chapter are confidential data on 
15.5 	individuals or protected nonpublic data while the investigation is active. Whether a civil 
15.6 	investigation is active shall be determined by the inspector general.
15.7 	(b) Data relating to a civil investigation conducted under this chapter become public 
15.8 	data upon the inspector general's completion or referral of the investigation, unless:
15.9 	(1) the release of the data would jeopardize another active investigation by the inspector 
15.10 	general or another government entity;
15.11 	(2) the inspector general reasonably believes the data will be used in litigation related 
15.12 	to any civil, criminal, or administrative actions, including reconsideration or appeal of any 
15.13 	such action; or
15.14 	(3) the data are classified as not public under another statute or paragraph (e).
15.15 	(c) Data subject to paragraph (b), clause (2), are confidential data on individuals or 
15.16 	protected nonpublic data and become public when the litigation has been completed or the 
15.17 	time period to appeal has expired, or the litigation is no longer being actively pursued.
15.18 	(d) Unless the data are subject to a more restrictive classification, upon the inspector 
15.19 	general's decision to no longer actively pursue a civil investigation under this chapter, data 
15.20 	relating to a civil investigation are private data on individuals or nonpublic data except the 
15.21 	following data are public:
15.22 	(1) data relating to the investigation's general description, existence, status, and 
15.23 	disposition; and
15.24 	(2) data that document the inspector general's work.
15.25 	(e) Inactive civil investigative data on an individual supplying information for an 
15.26 	investigation that could reasonably be used to determine the individual's identity are private 
15.27 	data on individuals if the information supplied was needed for the investigation and would 
15.28 	not have been provided to the inspector general without an assurance to the individual that 
15.29 	the individual's identity would remain private.
15.30 	(f) Data relating to a civil investigation conducted under this chapter that are obtained 
15.31 	from an entity that is not a government entity have the same classification that the data 
15.32 	would have if obtained from a government entity.
16.1 		Subd. 6.Privileges. Nothing in this section or section 15E.30 requires the disclosure of 
16.2 	documents or information that is legally privileged under statute or other law, including 
16.3 	documents or information subject to section 13.393 or 595.02.
16.4 		Subd. 7.Criminal investigations. This section does not apply to criminal investigations 
16.5 	conducted by the Office of the Inspector General Anti-Fraud and Waste Bureau under 
16.6 	section 15E.27.

16.7 	EFFECTIVE DATE. This section is effective January 1, 2027.

16.8 	Sec. 12. [15E.45] RESOURCES.
16.9 		Subdivision 1.Staff. (a) The inspector general may hire and manage staff as necessary 
16.10 	and in accordance with chapter 43A. The inspector general must employ and manage at 
16.11 	least one attorney to serve as legal counsel for the office and to advise the inspector general 
16.12 	on all legal matters relating to the office. Except for the inspector general, the staff in the 
16.13 	Office of the Inspector General shall serve in the classified civil service. Except as provided 
16.14 	in paragraph (b), compensation for employees of the inspector general in the classified 
16.15 	service who are represented by an exclusive representative shall be governed by a collective 
16.16 	bargaining agreement negotiated between the commissioner of management and budget 
16.17 	and the exclusive representative. Compensation for employees of the inspector general in 
16.18 	the classified service who are not represented by an exclusive representative shall be as 
16.19 	provided in the nonrepresented employees compensation plan under section 43A.18, 
16.20 	subdivision 2, or by the managerial plan under section 43A.18, subdivision 3, depending 
16.21 	on the employee's job classification.
16.22 	(b) Section 15.039, subdivision 7, applies to employees transferred into the Office of 
16.23 	the Inspector General from other offices of inspectors general within the first year following 
16.24 	enactment of chapter 15E.
16.25 		Subd. 2.Contracting. The inspector general may contract with external experts to 
16.26 	support the work of the office, subject to section 16C.08.

16.27 	EFFECTIVE DATE. This section is effective January 1, 2027.

16.28 	Sec. 13. [15E.50] REPORTING AND TRANSPARENCY.
16.29 		Subdivision 1.Reports. The inspector general must issue public reports detailing 
16.30 	completed investigations and corrective actions taken.
16.31 		Subd. 2.Public tips. The inspector general must maintain a phone line and website for 
16.32 	reporting fraud and misuse that allows the person making the report to remain anonymous.
17.1 		Subd. 3.Report; inactive investigations. By December 1, 2027, and each December 
17.2 	1 thereafter, the inspector general must submit a report to the legislative auditor and the 
17.3 	chairs and ranking minority members of the legislative committees with jurisdiction over 
17.4 	state government and data practices regarding all investigations the inspector general did 
17.5 	not open after receiving a tip or complaint or decided to no longer actively pursue for the 
17.6 	preceding calendar year. The report must include, at a minimum, summary data as defined 
17.7 	in section 13.02, subdivision 19, for:
17.8 	(1) all complaints or tips received;
17.9 	(2) the type of allegation;
17.10 	(3) if the complaint or tip was not frivolous, the reason that the inspector general did 
17.11 	not open an investigation or decided to no longer pursue the investigation; and
17.12 	(4) referrals to other agencies or the legislative auditor.

17.13 	EFFECTIVE DATE. This section is effective January 1, 2027.

17.14 	Sec. 14. [15E.55] PROFESSIONAL STANDARDS AND REVIEW.
17.15 	(a) The inspector general's activities must adhere to professional standards as promulgated 
17.16 	by the Association of Inspectors General or other recognized bodies.
17.17 	(b) The governor must contract for an external quality assurance review of the inspector 
17.18 	general every three years and must make findings from the review public.

17.19 	EFFECTIVE DATE. This section is effective January 1, 2027.

17.20 	Sec. 15. [15E.60] LEGISLATIVE INSPECTOR GENERAL ADVISORY 
17.21 	COMMISSION.
17.22 		Subdivision 1.Membership. The Legislative Inspector General Advisory Commission 
17.23 	is comprised of:
17.24 	(1) two senators appointed by the majority leader of the senate;
17.25 	(2) two senators appointed by the minority leader of the senate;
17.26 	(3) two members of the house of representatives appointed by the speaker of the house 
17.27 	of representatives; and
17.28 	(4) two members of the house of representatives appointed by the minority leader of the 
17.29 	house of representatives.
18.1 		Subd. 2.Terms. Members serve at the pleasure of their appointing authority and each 
18.2 	member serves until a replacement is appointed.
18.3 		Subd. 3.Chair. The commission must select a chair after consideration of its members 
18.4 	by January 31 of each odd-numbered year. The chair serves until a successor is elected. The 
18.5 	chair must alternate biennially between the senate and the house of representatives.
18.6 		Subd. 4.Duties. (a) The Legislative Inspector General Advisory Commission:
18.7 	(1) must consider applicants for and make recommendations to the governor for the 
18.8 	position of inspector general; and
18.9 	(2) may conduct hearings to review the work of the inspector general to ensure 
18.10 	impartiality, independence, and effectiveness.
18.11 	(b) By January 1, 2027, the commission must conduct at least one hearing on, and provide 
18.12 	recommendations to the chairs and ranking minority members of the committees in the 
18.13 	senate and the house of representatives with jurisdiction over commerce and public safety 
18.14 	on, merging the Financial Crimes and Fraud Section of the Department of Public Safety 
18.15 	into the Office of the Inspector General. The recommendations should include proposed 
18.16 	legislation to effectuate the merger.
18.17 		Subd. 5.Per diem; expense reimbursement. Members may be compensated for time 
18.18 	spent on commission duties and may be reimbursed for expenses according to the rules of 
18.19 	their respective bodies.
18.20 		Subd. 6.Meeting space; staff. The Legislative Coordinating Commission must provide 
18.21 	meeting space and staff to assist the commission in performing its duties.
18.22 		Subd. 7.Open meetings. The Legislative Inspector General Advisory Commission is 
18.23 	subject to the requirements in section 3.055.

18.24 	EFFECTIVE DATE. This section is effective the day following final enactment.

18.25 	Sec. 16. Minnesota Statutes 2024, section 609.456, subdivision 2, is amended to read:
18.26 		Subd. 2.Legislative auditor or inspector general. Whenever an employee or officer 
18.27 	of the state, University of Minnesota, or other organization listed in section 3.971, subdivision 
18.28 	6, discovers evidence of fraud, theft, embezzlement, or other unlawful use of public funds 
18.29 	or property, the employee or officer shall, except when to do so would knowingly impede 
18.30 	or otherwise interfere with an ongoing criminal investigation, promptly report in writing to 
18.31 	the legislative auditor and the inspector general appointed under chapter 15E a detailed 
18.32 	description of the alleged incident or incidents.

19.1 	Sec. 17. OFFICE OF THE INSPECTOR GENERAL ESTABLISHMENT AND 
19.2 	TRANSITION.
 19.3 		Subdivision 1.Appointment. Notwithstanding Minnesota Statutes, section 15E.20, 
19.4 	subdivision 4, by January 1, 2027, the Legislative Inspector General Advisory Commission 
19.5 	must make recommendations for appointment of an inspector general under Minnesota 
19.6 	Statutes, chapter 15E. By February 1, 2027, the governor must appoint an inspector general.
19.7 		Subd. 2.Operational. By September 1, 2027, the Office of the Inspector General must 
19.8 	be fully operational.
19.9 		Subd. 3.Transition of employees. (a) Before September 1, 2027, all officers and 
19.10 	employees employed in an office of inspector general for a state department or agency shall 
19.11 	transition to employment under the Office of the Inspector General under Minnesota Statutes, 
19.12 	chapter 15E, except as specified in subdivision 6.
19.13 	(b) The following protections shall apply to employees who are transferred to the Office 
19.14 	of the Inspector General under Minnesota Statutes, chapter 15E, from state departments or 
19.15 	agencies:
19.16 	(1) no transferred employee shall have their employment status and job classification 
19.17 	altered as a result of the transfer;
19.18 	(2) transferred employees who were represented by an exclusive representative prior to 
19.19 	the transfer shall continue to be represented by the same exclusive representative after the 
19.20 	transfer;
19.21 	(3) any applicable collective bargaining agreements with exclusive representatives shall 
19.22 	continue in full force and effect for transferred employees after the transfer while the 
19.23 	agreement remains in effect;
19.24 	(4) when an employee in a temporary unclassified position is transferred to the Office 
19.25 	of the Inspector General, the total length of time that the employee has served in the 
19.26 	appointment must include all time served in the appointment at the transferring department 
19.27 	or agency and the time served in the appointment at the Office of the Inspector General. An 
19.28 	employee in a temporary unclassified position who was hired by a transferring department 
19.29 	or agency through an open competitive selection process under a policy enacted by the 
19.30 	commissioner of management and budget is considered to have been hired through a 
19.31 	competitive selection process after the transfer;
19.32 	(5) the state must meet and negotiate with the exclusive representatives of the transferred 
19.33 	employees about proposed changes to the transferred employees' terms and conditions of 
20.1 	employment to the extent that the proposed changes are not addressed in the applicable 
20.2 	collective bargaining agreement; and
20.3 	(6) if the state transfers ownership or control of any facilities, services, or operations of 
20.4 	the Office of the Inspector General to another private or public entity by subcontracting, 
20.5 	sale, assignment, lease, or other transfer, the state must require as a written condition of the 
20.6 	transfer of ownership or control the following:
20.7 	(i) employees who perform work in the facilities, services, or operations must be offered 
20.8 	employment with the entity acquiring ownership or control before the entity offers 
20.9 	employment to any individual who was not employed by the transferring department or 
20.10 	agency at the time of the transfer; and
20.11 	(ii) the wage and benefit standards of the transferred employees must not be reduced by 
20.12 	the entity acquiring ownership or control through the expiration of the collective bargaining 
20.13 	agreement in effect at the time of the transfer or for a period of two years after the transfer, 
20.14 	whichever is longer.
20.15 	There is no liability on the part of, and no cause of action arises against, the state of 
20.16 	Minnesota or its officers or agents for any action or inaction of any entity acquiring ownership 
20.17 	or control of any facilities, services, or operations of the department.
20.18 		Subd. 4.Assets. Before September 1, 2027, assets and unused appropriations for existing 
20.19 	offices of inspectors general shall be transferred to the Office of the Inspector General under 
20.20 	Minnesota Statutes, chapter 15E, except as specified in subdivision 6.
20.21 		Subd. 5.Office space. The commissioner of administration must provide or lease office 
20.22 	space in the city of St. Paul for the Office of the Inspector General under Minnesota Statutes, 
20.23 	chapter 15E, under a rental agreement.
20.24 		Subd. 6.Exceptions. (a) No employees or positions in the Department of Human Services 
20.25 	are transferred under this section.
20.26 	(b) No employees or positions in the Department of Corrections are transferred under 
20.27 	this section.
20.28 	(c) No employees or positions in the student maltreatment program of the Department 
20.29 	of Education or other Department of Education employees or positions dedicated to student 
20.30 	maltreatment investigations under Minnesota Statutes, chapter 260E, are transferred under 
20.31 	this section.
20.32 	(d) No employees or positions in the Department of Children, Youth, and Families are 
20.33 	transferred under this section.

21.1 	EFFECTIVE DATE. This section is effective January 1, 2027.

21.2 	Sec. 18. LEGISLATIVE INSPECTOR GENERAL ADVISORY COMMISSION; 
21.3 	INITIAL APPOINTMENTS AND FIRST MEETING.
 21.4 		Subdivision 1.Initial appointments. Appointing authorities must make appointments 
21.5 	to the Legislative Inspector General Advisory Commission by August 1, 2026.
21.6 		Subd. 2.First meeting. The senate majority leader must designate one member of the 
21.7 	Legislative Inspector General Advisory Commission to convene the first meeting of the 
21.8 	Legislative Inspector General Advisory Commission by September 15, 2026.
21.9 		Subd. 3.Chair. The Legislative Inspector General Advisory Commission must elect a 
21.10 	chair from among its senate members at its first meeting. The first chair shall serve until a 
21.11 	successor is selected at the start of the next biennium as provided in Minnesota Statutes, 
21.12 	section 15E.60, subdivision 3.

21.13 	EFFECTIVE DATE. This section is effective the day following final enactment.

21.14 	Sec. 19. INTERAGENCY AGREEMENTS.
 21.15 	(a) By December 31, 2027, the Office of the Inspector General must enter into an 
21.16 	interagency agreement with the Department of Human Services. The agreement must not 
21.17 	preclude the department from performing, or give the inspector general authority to take 
21.18 	actions that would interfere with the department's ability to perform, duties required as a 
21.19 	condition for securing or maintaining federal funding. The interagency agreement must 
21.20 	include a clause on cost-sharing for investigations that may require multiagency coordination 
21.21 	and a clause that details what process will be followed if a joint investigation is required. 
21.22 	The interagency agreement must not limit the inspector general's authority or authorized 
21.23 	powers and responsibilities. The department and the inspector general may coordinate 
21.24 	investigative efforts as necessary or practical, but an interagency agreement must not 
21.25 	diminish, delay, or restrict the inspector general's ability to investigate fraud and misuse 
21.26 	when an independent investigation is pursued.
21.27 	(b) By December 31, 2027, the Office of the Inspector General must enter into an 
21.28 	interagency agreement with the Department of Children, Youth, and Families. The 
21.29 	interagency agreement must include a clause on cost-sharing for investigations that may 
21.30 	require multiagency coordination and a clause that details what process will be followed if 
21.31 	a joint investigation is required. The interagency agreement must not limit the inspector 
21.32 	general's authority or authorized powers and responsibilities. The department and the 
22.1 	inspector general may coordinate investigative efforts as necessary or practical, but an 
22.2 	interagency agreement must not diminish, delay, or restrict the inspector general's ability 
22.3 	to investigate fraud and misuse when an independent investigation is pursued.
22.4 	(c) By December 31, 2027, the Office of the Inspector General must enter into an 
22.5 	interagency agreement with the Department of Health. The interagency agreement must 
22.6 	include a clause on cost-sharing for investigations that may require multiagency coordination 
22.7 	and a clause that details what process will be followed if a joint investigation is required. 
22.8 	The interagency agreement must not limit the inspector general's authority or authorized 
22.9 	powers and responsibilities. The department and the inspector general may coordinate 
22.10 	investigative efforts as necessary or practical, but an interagency agreement must not 
22.11 	diminish, delay, or restrict the inspector general's ability to investigate fraud and misuse 
22.12 	when an independent investigation is pursued.
22.13 	(d) As soon as practicable after January 1, 2027, the Office of the Inspector General 
22.14 	must enter into an interagency agreement with the Department of Education. The interagency 
22.15 	agreement must not limit the inspector general's authority or authorized powers and 
22.16 	responsibilities. Effective immediately, nothing in Minnesota Statutes, chapter 15E, 
22.17 	authorizes any sanction by the commissioner or inspector general that reduces, pauses, or 
22.18 	otherwise interrupts state or federal aid to a school district; charter school; cooperative unit 
22.19 	as defined by Minnesota Statutes, section 123A.24, subdivision 2; or any library, library 
22.20 	system, or library district defined in Minnesota Statutes, section 134.001.

22.21 	EFFECTIVE DATE. Paragraph (a) is effective January 1, 2027, or upon federal approval 
22.22 	from the Centers for Medicare and Medicaid Services, whichever is later. The commissioner 
22.23 	of human services must notify the revisor of statutes when the Centers for Medicare and 
22.24 	Medicaid Services approve or deny this section. The remainder of this section is effective 
22.25 	January 1, 2027.

22.26 	Sec. 20. APPROPRIATIONS.
 22.27 	(a) $644,000 in fiscal year 2027 is appropriated from the general fund to the commissioner 
22.28 	of administration to establish the Office of the Inspector General. The base for this 
22.29 	appropriation is $430,000 in fiscal year 2028 and $0 in fiscal year 2029 and each fiscal year 
22.30 	thereafter.
22.31 	(b) $3,034,000 in fiscal year 2027 is appropriated from the general fund to the Office 
22.32 	of the Inspector General for purposes of this act. The base for this appropriation is $4,432,000 
22.33 	in fiscal year 2028 and $4,439,000 in fiscal year 2029. The commissioner of administration, 
22.34 	in consultation with the commissioner of management and budget, may transfer amounts 
23.1 	in fiscal year 2027 to the commissioner of administration for office build out, cost of space, 
23.2 	office equipment, and other costs directly related to the establishment of the office.

23.3 	ARTICLE 2
23.4 	CONFORMING ITEMS AND REPEALERS

23.5 	Section 1. Minnesota Statutes 2025 Supplement, section 13.82, subdivision 1, is amended 
23.6 	to read:
23.7 		Subdivision 1.Application. This section shall apply to agencies which carry on a law 
23.8 	enforcement function, including but not limited to municipal police departments, county 
23.9 	sheriff departments, fire departments, the Bureau of Criminal Apprehension, the Minnesota 
23.10 	State Patrol, the Board of Peace Officer Standards and Training, the Office of the Inspector 
23.11 	General Anti-Fraud and Waste Bureau, and county human service agency client and provider 
23.12 	fraud investigation, prevention, and control units operated or supervised by the Department 
23.13 	of Human Services.

23.14 	EFFECTIVE DATE. This section is effective January 1, 2027.

23.15 	Sec. 2. Minnesota Statutes 2024, section 127A.21, subdivision 1a, is amended to read:
23.16 		Subd. 1a.Definitions. (a) For purposes of this section, the following terms have the 
23.17 	meanings given.
23.18 	(b) "Abuse" means actions that may, directly or indirectly, result in unnecessary costs 
23.19 	to department programs. Abuse may involve paying for items or services when there is no 
23.20 	legal entitlement to that payment.
23.21 	(c) (b) "Department program" means a program funded by the Department of Education 
23.22 	that involves the transfer or disbursement of public funds or other resources to a program 
23.23 	participant. "Department program" includes state and federal aids or grants received by a 
23.24 	school district or charter school or other program participant.
23.25 	(c) "Inspector general" means the inspector general appointed under chapter 15E.
23.26 	(d) "Fraud" means an intentional or deliberate act to deprive another of property or 
23.27 	money or to acquire property or money by deception or other unfair means. Fraud includes 
23.28 	intentionally submitting false information to the department for the purpose of obtaining a 
23.29 	greater compensation or benefit than that to which the person is legally entitled. Fraud also 
23.30 	includes failure to correct errors in the maintenance of records in a timely manner after a 
23.31 	request by the department.
24.1 	(e) "Investigation" means an audit, investigation, proceeding, or inquiry by the Office 
24.2 	of the Inspector General related to a program participant in a department program.
24.3 	(f) (d) "Program participant" means any entity or person, including associated persons, 
24.4 	that receives, disburses, or has custody of funds or other resources transferred or disbursed 
24.5 	under a department program.
24.6 	(g) "Waste" means practices that, directly or indirectly, result in unnecessary costs to 
24.7 	department programs, such as misusing resources.
24.8 	(h) For purposes of this section, neither "fraud," "waste," nor "abuse" includes decisions 
24.9 	on instruction, curriculum, personnel, or other discretionary policy decisions made by a 
24.10 	school district, charter school, cooperative unit as defined by section 123A.24, subdivision 
24.11 	2, or any library, library system, or library district defined in section 134.001.

24.12 	EFFECTIVE DATE. Paragraph (c) is effective the day after the inspector general 
24.13 	appointed under Minnesota Statutes, chapter 15E, notifies the revisor of statutes that the 
24.14 	Office of the Inspector General under Minnesota Statutes, chapter 15E, has assumed 
24.15 	responsibility for identifying and investigating fraud, misuse, and other unlawful use of 
24.16 	public funds in the Department of Education. The remainder of this section is effective July 
24.17 	1, 2026.

24.18 	Sec. 3. Minnesota Statutes 2025 Supplement, section 127A.21, subdivision 5, is amended 
24.19 	to read:
24.20 		Subd. 5.Sanctions; appeal. (a) This subdivision does not authorize any sanction that 
24.21 	reduces, pauses, or otherwise interrupts state or federal aid to a school district, charter school, 
24.22 	cooperative unit as defined by section 123A.24, subdivision 2, or any library, library system, 
24.23 	or library district defined in section 134.001.
24.24 	(b) The inspector general may recommend that the commissioner impose appropriate 
24.25 	temporary sanctions, including withholding of payments under the department program, on 
24.26 	a program participant pending an investigation by the Office of the Inspector General if:
24.27 	(1) during the course of an investigation, the Office of the Inspector General finds credible 
24.28 	indicia of fraud, waste, or abuse by the program participant;
24.29 	(2)(1) there has been a criminal, civil, or administrative adjudication of fraud, waste, 
24.30 	or abuseor misuse against the program participant in Minnesota or in another state or 
24.31 	jurisdiction; or
25.1 	(3) the program participant was receiving funds under any contract or registered in any 
25.2 	program administered by another Minnesota state agency, a government agency in another 
25.3 	state, or a federal agency, and was excluded from that contract or program for reasons 
25.4 	credibly indicating fraud, waste, or abuse by the program participant; or
25.5 	(4)(2) the program participant has a pattern of noncompliance with an investigation.
25.6 	(c) If an investigation finds, by a preponderance of the evidence, fraud, waste, or abuse
25.7 	misuse by a program participant, the inspector general may, after reviewing all facts and 
25.8 	evidence and when acting judiciously on a case-by-case basis, recommend that the 
25.9 	commissioner impose appropriate sanctions on the program participant.
25.10 	(d) Unless prohibited by law, the commissioner has the authority to implement 
25.11 	recommendations by the inspector general, including imposing appropriate sanctions, 
25.12 	temporarily or otherwise, on a program participant. Sanctions may include ending program 
25.13 	participation, stopping disbursement of funds or resources, monetary recovery, and 
25.14 	termination of department contracts with the participant for any current or future department 
25.15 	program or contract. A sanction may be imposed for up to the longest period permitted by 
25.16 	state or federal law. Sanctions authorized under this subdivision are in addition to other 
25.17 	remedies and penalties available under law.
25.18 	(e) If the commissioner imposes sanctions on a program participant under this subdivision, 
25.19 	the commissioner must notify the participant in writing within seven business days of 
25.20 	imposing the sanction, unless requested in writing by a law enforcement agency to 
25.21 	temporarily delay issuing the notice to prevent disruption of an ongoing law enforcement 
25.22 	agency investigation. A notice of sanction must state:
25.23 	(1) the sanction being imposed;
25.24 	(2) the general allegations that form the basis for the sanction;
25.25 	(3) the duration of the sanction;
25.26 	(4) the department programs to which the sanction applies; and
25.27 	(5) how the program participant may appeal the sanction pursuant to paragraph (f).
25.28 	(f) A program participant sanctioned under this subdivision may, within 30 days after 
25.29 	the date the notice of sanction was mailed to the participant, appeal the determination by 
25.30 	requesting in writing that the commissioner initiate a contested case proceeding under 
25.31 	chapter 14. The scope of any contested case hearing is limited to the sanction imposed under 
25.32 	this subdivision. An appeal request must specify with particularity each disputed item, the 
26.1 	reason for the dispute, and must include the name and contact information of the person or 
26.2 	entity that may be contacted regarding the appeal.
26.3 	(g) The commissioner shall lift sanctions imposed under this subdivision if the Office 
26.4 	of the inspector general notifies the commissioner that the inspector general determines 
26.5 	there is insufficient evidence of fraud, waste, or abusemisuse by the program participant. 
26.6 	The commissioner must notify the participant in writing within seven business days of lifting 
26.7 	the sanction.

26.8 	Sec. 4. Minnesota Statutes 2024, section 127A.21, is amended by adding a subdivision to 
26.9 	read:
26.10 		Subd. 8.Limits on receiving public funds; prohibition. (a) This subdivision does not 
26.11 	authorize any action that reduces, pauses, or otherwise interrupts state or federal aid to a 
26.12 	school district; charter school; cooperative unit as defined in section 123A.24, subdivision 
26.13 	2; or any library, library system, or library district defined in section 134.001.
26.14 	(b) For purposes of this subdivision, "program participant" includes individuals or persons 
26.15 	who have an ownership interest in, control of, or the ability to control a program participant 
26.16 	in a department program.
26.17 	(c) If a program participant is excluded from a department program, the commissioner 
26.18 	may:
26.19 	(1) prohibit the excluded program participant from enrolling in, receiving grant money 
26.20 	from, or registering in any other program administered by the commissioner; and
26.21 	(2) disenroll or disqualify the excluded program participant from any other program 
26.22 	administered by the commissioner.
26.23 	(d) If a program participant enrolled, licensed, or receiving funds under any contract or 
26.24 	program administered by a Minnesota state agency or federal agency is excluded from that 
26.25 	program, the inspector general shall notify the commissioner, who may:
26.26 	(1) prohibit the excluded program participant from enrolling in, becoming licensed, 
26.27 	receiving grant money from, or registering in any other program administered by the 
26.28 	commissioner; and
26.29 	(2) disenroll or disqualify the excluded program participant from any other program 
26.30 	administered by the commissioner.
26.31 	(e) The duration of a prohibition, disenrollment, revocation, suspension, or 
26.32 	disqualification under paragraph (c) must last for the longest applicable sanction or 
27.1 	disqualifying period in effect for the program participant permitted by state or federal law. 
27.2 	The duration of a prohibition, disenrollment, revocation, suspension, or disqualification 
27.3 	under paragraph (d) may last up until the longest applicable sanction or disqualifying period 
27.4 	in effect for the program participant as permitted by state or federal law.

27.5 	Sec. 5. Minnesota Statutes 2024, section 127A.21, is amended by adding a subdivision to 
27.6 	read:
27.7 		Subd. 9.Notice. Within five days of taking an action against a program participant under 
27.8 	subdivision 8, paragraph (c) or (d), the commissioner must send notice of the action to the 
27.9 	program participant. The notice must state the:
27.10 	(1) basis for the action;
27.11 	(2) effective date of the action;
27.12 	(3) right to appeal the action; and
27.13 	(4) requirements and procedures for reinstatement.

27.14 	Sec. 6. Minnesota Statutes 2024, section 127A.21, is amended by adding a subdivision to 
27.15 	read:
27.16 		Subd. 10.Appeal. (a) Upon receipt of a notice under subdivision 9, a program participant 
27.17 	may request a contested case hearing, as defined in section 14.02, subdivision 3, by filing 
27.18 	with the commissioner a written request of appeal. The appeal request must be received by 
27.19 	the commissioner no later than 30 days after the date the notification was mailed to the 
27.20 	program participant.
27.21 	(b) The appeal request must specify:
27.22 	(1) each disputed item and the reason for the dispute;
27.23 	(2) the authority in statute or rule upon which the program participant relies for each 
27.24 	disputed item;
27.25 	(3) the name and address of the person or entity with whom contacts may be made 
27.26 	regarding the appeal; and
27.27 	(4) other information required by the commissioner.
27.28 	(c) Unless a timely and proper appeal is received by the commissioner, the action of the 
27.29 	commissioner shall be considered final and binding on the effective date of the action as 
27.30 	stated in the notice under subdivision 9, clause (2).

28.1 	Sec. 7. Minnesota Statutes 2024, section 127A.21, is amended by adding a subdivision to 
28.2 	read:
28.3 		Subd. 11.Withholding of payments. (a) This subdivision does not authorize withholding 
28.4 	of payments that reduces, pauses, or otherwise interrupts state or federal aid to a school 
28.5 	district; charter school; cooperative unit as defined in section 123A.24, subdivision 2; or 
28.6 	any library, library system, or library district defined in section 134.001.
28.7 	(b) Except as otherwise provided by state or federal law, the inspector general shall 
28.8 	notify and recommend to the commissioner to withhold payments to a program participant 
28.9 	in any program administered by the commissioner, who shall have the authority to withhold 
28.10 	such payments to the extent permitted under federal law, if the inspector general determines 
28.11 	there is a credible allegation of fraud or misuse for which an investigation is pending for a 
28.12 	program administered by the department, a Minnesota state agency, or a federal agency.
28.13 	(c) Allegations are considered credible when they have indicia of reliability and the 
28.14 	inspector general has reviewed the evidence and acts on a case-by-case basis. A credible 
28.15 	allegation of fraud is an allegation that has been verified by the commissioner from any 
28.16 	source, including but not limited to:
28.17 	(1) fraud hotline complaints;
28.18 	(2) claims data mining; and
28.19 	(3) patterns identified through provider audits, civil false claims cases, and investigations.
28.20 	(d) The commissioner must send notice of the withholding of payments within five days 
28.21 	of taking such action. The notice must:
28.22 	(1) state that payments are being withheld according to this paragraph;
28.23 	(2) set forth the general allegations as to the reasons for the withholding action, but need 
28.24 	not disclose any specific information concerning an ongoing investigation;
28.25 	(3) state that the withholding is for a temporary period and cite the circumstances under 
28.26 	which withholding will be terminated; and
28.27 	(4) inform the program participant of the right to submit written evidence for 
28.28 	consideration by the commissioner.
28.29 	(e) The withholding of payments shall not continue after the inspector general determines 
28.30 	there is insufficient evidence of fraud by the program participant or after legal proceedings 
28.31 	relating to the alleged fraud are completed, unless the commissioner has sent notice under 
28.32 	subdivision 5 of the intention to take an additional action related to the program participant's 
29.1 	participation in a program administered by the commissioner. If the inspector general 
29.2 	determines there is insufficient evidence of fraud by the program participant or after legal 
29.3 	proceedings relating to the alleged fraud are completed, the inspector general shall notify 
29.4 	the commissioner within ten days of the determination.
29.5 	(f) The withholding of payments is a temporary action and shall not be subject to appeal 
29.6 	under this subdivision or chapter 14.

29.7 	Sec. 8. Minnesota Statutes 2024, section 142A.03, is amended by adding a subdivision to 
29.8 	read:
29.9 		Subd. 36.Office of the Inspector General; reports. The commissioner must submit 
29.10 	final investigative reports to the inspector general appointed under chapter 15E, for any 
29.11 	investigation conducted by the commissioner into fraud or misuse, as defined in section 
29.12 	15E.15, within the child care assistance program.

29.13 	EFFECTIVE DATE. This section is effective January 1, 2027.

29.14 	Sec. 9. Minnesota Statutes 2024, section 142A.12, subdivision 5, is amended to read:
29.15 		Subd. 5.Withholding of payments. (a) Except as otherwise provided by state or federal 
29.16 	law, the commissioner may withhold payments to a provider, vendor, individual, associated 
29.17 	individual, or associated entity in any program administered by the commissioner if the 
29.18 	commissioner determines there is a credible allegation of fraud for which an investigation 
29.19 	is pending for a program administered by a Minnesota state or federal agency.
29.20 	(b) For purposes of this subdivision, "credible allegation of fraud" means an allegation 
29.21 	that has been verified by the commissioner from any source, including but not limited to:
29.22 	(1) fraud hotline complaints;
29.23 	(2) claims data mining;
29.24 	(3) patterns identified through provider audits, civil false claims cases, and law 
29.25 	enforcement investigations; and
29.26 	(4) court filings and other legal documents, including but not limited to police reports, 
29.27 	complaints, indictments, informations, affidavits, declarations, and search warrants; and
29.28 	(5) information from the inspector general, including information listed on the inspector 
29.29 	general's exclusion list under section 15E.25, subdivision 1, clause (11).
29.30 	(c) The commissioner must send notice of the withholding of payments within five days 
29.31 	of taking such action. The notice must:
30.1 	(1) state that payments are being withheld according to this subdivision;
30.2 	(2) set forth the general allegations related to the withholding action, except the notice 
30.3 	need not disclose specific information concerning an ongoing investigation;
30.4 	(3) state that the withholding is for a temporary period and cite the circumstances under 
30.5 	which the withholding will be terminated; and
30.6 	(4) inform the provider, vendor, individual, associated individual, or associated entity 
30.7 	of the right to submit written evidence to contest the withholding action for consideration 
30.8 	by the commissioner.
30.9 	(d) If the commissioner withholds payments under this subdivision, the provider, vendor, 
30.10 	individual, associated individual, or associated entity has a right to request administrative 
30.11 	reconsideration. A request for administrative reconsideration must be made in writing, state 
30.12 	with specificity the reasons the payment withholding decision is in error, and include 
30.13 	documents to support the request. Within 60 days from receipt of the request, the 
30.14 	commissioner shall judiciously review allegations, facts, evidence available to the 
30.15 	commissioner, and information submitted by the provider, vendor, individual, associated 
30.16 	individual, or associated entity to determine whether the payment withholding should remain 
30.17 	in place.
30.18 	(e) The commissioner shall stop withholding payments if the commissioner determines 
30.19 	there is insufficient evidence of fraud by the provider, vendor, individual, associated 
30.20 	individual, or associated entity or when legal proceedings relating to the alleged fraud are 
30.21 	completed, unless the commissioner has sent notice under subdivision 3 to the provider, 
30.22 	vendor, individual, associated individual, or associated entity.
30.23 	(f) The withholding of payments is a temporary action and is not subject to appeal under 
30.24 	section 256.0451 or chapter 14.

30.25 	EFFECTIVE DATE. This section is effective January 1, 2027.

30.26 	Sec. 10. Minnesota Statutes 2024, section 144.05, is amended by adding a subdivision to 
30.27 	read:
30.28 		Subd. 9.Office of the Inspector General; reports. The commissioner must submit 
30.29 	final investigative reports to the inspector general appointed under chapter 15E for any 
30.30 	investigation conducted by the commissioner into fraud or misuse, as defined in section 
30.31 	15E.15, within the special supplemental nutrition program for women, infants, and children.

30.32 	EFFECTIVE DATE. This section is effective January 1, 2027.

31.1 	Sec. 11. Minnesota Statutes 2024, section 245.095, subdivision 5, is amended to read:
31.2 		Subd. 5.Withholding of payments. (a) Except as otherwise provided by state or federal 
31.3 	law, the commissioner may withhold payments to a provider, vendor, individual, associated 
31.4 	individual, or associated entity in any program administered by the commissioner if the 
31.5 	commissioner determines there is a credible allegation of fraud for which an investigation 
31.6 	is pending for a program administered by a Minnesota state or federal agency.
31.7 	(b) For purposes of this subdivision, "credible allegation of fraud" means an allegation 
31.8 	that has been verified by the commissioner from any source, including but not limited to:
31.9 	(1) fraud hotline complaints;
31.10 	(2) claims data mining;
31.11 	(3) patterns identified through provider audits, civil false claims cases, and law 
31.12 	enforcement investigations; and
31.13 	(4) court filings and other legal documents, including but not limited to police reports, 
31.14 	complaints, indictments, informations, affidavits, declarations, and search warrants; and
31.15 	(5) information from the inspector general appointed under chapter 15E, including 
31.16 	information listed on the inspector general's exclusion list under section 15E.25, subdivision 
31.17 	1, clause (11).
31.18 	(c) The commissioner must send notice of the withholding of payments within five days 
31.19 	of taking such action. The notice must:
31.20 	(1) state that payments are being withheld according to this subdivision;
31.21 	(2) set forth the general allegations related to the withholding action, except the notice 
31.22 	need not disclose specific information concerning an ongoing investigation;
31.23 	(3) state that the withholding is for a temporary period and cite the circumstances under 
31.24 	which the withholding will be terminated; and
31.25 	(4) inform the provider, vendor, individual, associated individual, or associated entity 
31.26 	of the right to submit written evidence to contest the withholding action for consideration 
31.27 	by the commissioner.
31.28 	(d) If the commissioner withholds payments under this subdivision, the provider, vendor, 
31.29 	individual, associated individual, or associated entity has a right to request administrative 
31.30 	reconsideration. A request for administrative reconsideration must be made in writing, state 
31.31 	with specificity the reasons the payment withholding decision is in error, and include 
31.32 	documents to support the request. Within 60 days from receipt of the request, the 
32.1 	commissioner shall judiciously review allegations, facts, evidence available to the 
32.2 	commissioner, and information submitted by the provider, vendor, individual, associated 
32.3 	individual, or associated entity to determine whether the payment withholding should remain 
32.4 	in place.
32.5 	(e) The commissioner shall stop withholding payments if the commissioner determines 
32.6 	there is insufficient evidence of fraud by the provider, vendor, individual, associated 
32.7 	individual, or associated entity or when legal proceedings relating to the alleged fraud are 
32.8 	completed, unless the commissioner has sent notice under subdivision 3 to the provider, 
32.9 	vendor, individual, associated individual, or associated entity.
32.10 	(f) The withholding of payments is a temporary action and is not subject to appeal under 
32.11 	section 256.045 or chapter 14.

32.12 	EFFECTIVE DATE. This section is effective January 1, 2027.

32.13 	Sec. 12. Minnesota Statutes 2024, section 256.01, is amended by adding a subdivision to 
32.14 	read:
32.15 		Subd. 45.Office of the Inspector General; reports. The commissioner must submit 
32.16 	final investigative reports to the inspector general, appointed under chapter 15E, for any 
32.17 	investigation conducted by the commissioner into fraud or misuse, as defined in section 
32.18 	15E.15, within the Medicaid program.

32.19 	EFFECTIVE DATE. This section is effective January 1, 2027.

32.20 	Sec. 13. Minnesota Statutes 2025 Supplement, section 626.84, subdivision 1, is amended 
32.21 	to read:
32.22 		Subdivision 1.Definitions. For purposes of sections 626.84 to 626.863, the following 
32.23 	terms have the meanings given:
32.24 	(a) "Board" means the Board of Peace Officer Standards and Training.
32.25 	(b) "Director" means the executive director of the board.
32.26 	(c) "Peace officer" means:
32.27 	(1) an employee or an elected or appointed official of a political subdivision or law 
32.28 	enforcement agency who is licensed by the board, charged with the prevention and detection 
32.29 	of crime and the enforcement of the general criminal laws of the state and who has the full 
32.30 	power of arrest, and shall also include the Minnesota State Patrol, agents of the Division of 
32.31 	Alcohol and Gambling Enforcement, state conservation officers, Metropolitan Transit police 
33.1 	officers, Department of Corrections Fugitive Apprehension Unit officers, Office of the 
33.2 	Inspector General Anti-Fraud and Waste Bureau officers, the statewide coordinator of the 
33.3 	Violent Crime Coordinating Council, and railroad peace officers as authorized by section 
33.4 	219.995 and United States Code, title 49, section 28101; and
33.5 	(2) a peace officer who is employed by a law enforcement agency of a federally 
33.6 	recognized tribe, as defined in United States Code, title 25, section 450b(e), and who is 
33.7 	licensed by the board.
33.8 	(d) "Part-time peace officer" means an individual licensed by the board whose services 
33.9 	are utilized by law enforcement agencies no more than an average of 20 hours per week, 
33.10 	not including time spent on call when no call to active duty is received, calculated on an 
33.11 	annual basis, who has either full powers of arrest or authorization to carry a firearm while 
33.12 	on active duty. The term shall apply even though the individual receives no compensation 
33.13 	for time spent on active duty, and shall apply irrespective of the title conferred upon the 
33.14 	individual by any law enforcement agency.
33.15 	(e) "Reserve officer" means an individual whose services are utilized by a law 
33.16 	enforcement agency to provide supplementary assistance at special events, traffic or crowd 
33.17 	control, and administrative or clerical assistance, and shall include reserve deputies, special 
33.18 	deputies, mounted or unmounted patrols, and all other employees or volunteers performing 
33.19 	reserve officer functions. A reserve officer's duties do not include enforcement of the general 
33.20 	criminal laws of the state, and the officer does not have full powers of arrest or authorization 
33.21 	to carry a firearm on duty.
33.22 	(f) "Law enforcement agency" means:
33.23 	(1) a unit of state or local government that is authorized by law to grant full powers of 
33.24 	arrest and to charge a person with the duties of preventing and detecting crime and enforcing 
33.25 	the general criminal laws of the state;
33.26 	(2) subject to the limitations in section 626.93, a law enforcement agency of a federally 
33.27 	recognized tribe, as defined in United States Code, title 25, section 450b(e); and
33.28 	(3) subject to the limitation of section 219.995, a railroad company.
33.29 	(g) "Professional peace officer education" means a postsecondary degree program, or a 
33.30 	nondegree program for persons who already have a college degree, that is offered by a 
33.31 	college or university in Minnesota, designed for persons seeking licensure as a peace officer, 
33.32 	and approved by the board.
34.1 	(h) "Railroad peace officer" means an individual as authorized under United States Code, 
34.2 	title 49, section 28101:
34.3 	(1) employed by a railroad for the purpose of aiding and supplementing law enforcement 
34.4 	agencies in the protection of property owned by or in the care, custody, or control of a 
34.5 	railroad and to protect the persons and property of railroad passengers and employees; and
34.6 	(2) licensed by the board.

34.7 	EFFECTIVE DATE. This section is effective January 1, 2027.

34.8 	Sec. 14. EXISTING DUTIES ABOLISHED; TRANSFERS PROVIDED.
 34.9 		Subdivision 1.Duties abolished. Except as exempted in article 1, section 17, subdivision 
34.10 	6, paragraph (c), duties pertaining to the investigation of fraud, misuse, and other unlawful 
34.11 	use of public funds in the Office of the Inspector General in the Department of Education 
34.12 	are abolished effective the day after the inspector general appointed under Minnesota Statutes, 
34.13 	chapter 15E, certifies in writing to the commissioner of education and the commissioner of 
34.14 	management and budget that the inspector general has assumed responsibility for these 
34.15 	duties.
34.16 		Subd. 2.Inspector general transfers. When the commissioner of education's duties are 
34.17 	abolished under subdivision 1, pursuant to Minnesota Statutes, section 15.039, all active 
34.18 	investigations, obligations, court actions, contracts, and records shall transfer from the 
34.19 	Department of Education to the inspector general appointed under Minnesota Statutes, 
34.20 	chapter 15E, except as provided by the inspector general and as provided in article 1, section 
34.21 	17, subdivision 6, paragraph (c).

34.22 	EFFECTIVE DATE. This section is effective July 1, 2026.

34.23 	Sec. 15. REPEALER.
 34.24 	Minnesota Statutes 2024, sections 13.321, subdivision 12; and 127A.21, subdivisions 
34.25 	1, 2, 3, 4, 6, and 7, are repealed.

34.26 	EFFECTIVE DATE. This section is effective the day after the inspector general 
34.27 	appointed under Minnesota Statutes, chapter 15E, notifies the revisor of statutes that the 
34.28 	Office of the Inspector General under Minnesota Statutes, chapter 15E, has assumed 
34.29 	responsibility for identifying and investigating fraud, misuse, and other unlawful use of 
34.30 	public funds in the Department of Education.

	ARTICLE 1	OFFICE OF THE INSPECTOR GENERAL........	Page.Ln 1.14	
	ARTICLE 2	CONFORMING ITEMS AND REPEALERS........	Page.Ln 23.3	

APPENDIX 

Repealed Minnesota Statutes: UES0856-2 

13.321 PREKINDERGARTEN TO GRADE 12 EDUCATIONAL DATA CODED ELSEWHERE.Subd. 12.Office of the Inspector General; access to data. 
Data involving the Department of Education's Office of the Inspector General are governed by section 127A.21. 

127A.21 OFFICE OF THE INSPECTOR GENERAL.Subdivision 1.Establishment of Office of the Inspector General; powers; duties. 
The commissioner must establish within the department an Office of the Inspector General. The inspector general shall report directly to the commissioner. The Office of the Inspector General is charged with protecting the integrity of the department and the state by detecting and preventing fraud, waste, and abuse in department programs. The Office of the Inspector General must conduct independent and objective investigations to promote the integrity of the department's programs and operations. When fraud or other misuse of public funds is detected, the Office of the Inspector General must report it to the appropriate law enforcement entity and collaborate and cooperate with law enforcement to assist in the investigation and any subsequent civil and criminal prosecution. 

Subd. 2. Hiring; reporting; procedures. 
(a) The commissioner, or the commissioner's designee, must hire an inspector general to lead the Office of the Inspector General. The inspector general must hire a deputy inspector general and, at the discretion of the inspector general, sufficient assistant inspectors general to carry out the duties of the office. The inspector general, deputy inspector general, and any assistant inspectors general serve in the classified service. 

(b) In a form and manner determined by the inspector general, the Office of the Inspector General must develop a public platform for the public to report instances of potential fraud, waste, or abuse of public funds administered by the department. Nothing in this paragraph shall be construed to give a member of the public standing to sue based on allegations of fraud, waste, or abuse. 

(c) The inspector general shall establish procedures for conducting investigations. Procedures adopted under this subdivision are not subject to chapter 14, including section 14.386. 

Subd. 3.Subpoenas. 
(a) For the purpose of an investigation, the inspector general or a designee may administer oaths and affirmations, subpoena witnesses, compel attendance, take evidence, and issue subpoenas duces tecum to require the production of books, papers, correspondence, memoranda, agreements, financial records, or other documents or records relevant to the investigation. 

(b) A subpoena issued pursuant to this subdivision must state that the subpoena recipient may not disclose the fact that the subpoena was issued or the fact that the requested records have been given to the inspector general, or their staff, except: 

(1) in so far as the disclosure is necessary to find and disclose the records; 

(2) pursuant to court order; or 

(3) to legal counsel for the purposes of responding to the subpoena. 

(c) The fees for service of a subpoena must be paid in the same manner as prescribed by law for a service of process issued by a district court. 

(d) The subpoena issued under this subdivision shall be enforceable through the district court in the district where the subpoena is issued. 

Subd. 4.Access to records. 
(a) For purposes of an investigation, and regardless of the data's classification under chapter 13, the Office of the Inspector General shall have access to all relevant books, accounts, documents, data, and property related to department programs that are maintained by a program participant, charter school, or government entity as defined by section 13.02. 

(b) Notwithstanding paragraph (a), the Office of the Inspector General must issue a subpoena under subdivision 3 in order to access routing and account numbers to which Department of Education funds have been disbursed. 

(c) Records requested by the Office of the Inspector General under this subdivision shall be provided in a format, place, and time frame reasonably requested by the Office of the Inspector General. 

(d) The department may enter into specific agreements with other state agencies related to records requests by the Office of the Inspector General. 

Subd. 6.Data practices. 
(a) It is not a violation of rights conferred by chapter 13 or any other statute related to the confidentiality of government data for a government entity as defined in section 13.02 to provide data or information under this section. 

(b) The inspector general is subject to the Government Data Practices Act, chapter 13, and shall protect from unlawful disclosure data classified as not public. Data collected, created, received, or maintained by the inspector general relating to an audit, investigation, proceeding, or inquiry are subject to section 13.39. 

Subd. 7.Retaliation, interference prohibited. 
(a) An employee or other individual who discloses information to the Office of the Inspector General about fraud, waste, or abuse in department programs is protected under section 181.932, governing disclosure of information by employees. 

(b) No state employee may interfere with or obstruct an investigation authorized by this section.