SF 856

as introduced - 94th Legislature (2025 - 2026) Posted on 02/12/2025 03:06pm

A bill for an act
relating to state government; creating the Office of the Inspector General; requiring
reports; appropriating money; proposing coding for new law as Minnesota Statutes,
chapter 15D.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [15D.01] OFFICE OF THE INSPECTOR GENERAL.
new text end

new text begin (a) The Office of the Inspector General serves as an independent entity responsible for
ensuring accountability, transparency, and integrity in the operations of state agencies and
programs.
new text end

new text begin (b) The Office of the Inspector General shall operate independently of all state executive
branch agencies and report directly to the Inspector General Advisory Council established
in this chapter. The office shall not be subject to direction or interference from any executive,
legislative, or judicial authority, other than the Inspector General Advisory Council.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026.
new text end

Sec. 2.

new text begin [15D.02] DEFINITIONS.
new text end

new text begin For the purposes of this chapter, the following terms have the meanings given:
new text end

new text begin (1) "abuse" means the misuse of authority or position for personal gain or to cause harm
to others, including the improper use of state resources or programs contrary to their intended
purpose;
new text end

new text begin (2) "agency program" means a program funded or administered by a state agency,
including grants and contracts;
new text end

new text begin (3) "fraud" means intentional acts of deception to gain an unlawful benefit;
new text end

new text begin (4) "investigation" means an audit, review, or inquiry conducted by the inspector general
to detect or prevent fraud, waste, or abuse; and
new text end

new text begin (5) "waste" means the negligent or careless expenditure, mismanagement, or squandering
of resources that result in unnecessary costs. Waste may also include inefficient practices
that could be avoided through reasonable efforts.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026.
new text end

Sec. 3.

new text begin [15D.03] INSPECTOR GENERAL.
new text end

new text begin Subdivision 1. new text end

new text begin Minimum qualifications. new text end

new text begin (a) To be eligible to be appointed as inspector
general, a candidate must:
new text end

new text begin (1) have a bachelor's degree in criminal justice, public administration, law, or a related
field;
new text end

new text begin (2) have at least ten years of professional experience in auditing, investigations, law
enforcement, or a related area;
new text end

new text begin (3) hold a professional certificate from the Association of Inspectors General, including
Certified Inspector General or Certified Inspector General Investigator; and
new text end

new text begin (4) demonstrate a commitment to safeguarding the mission of public service and provide
a public disclosure of prior professional opinions, positions, or actions that may influence
the candidate's approach to the role.
new text end

new text begin (b) Current or former commissioners, agency heads, or deputy agency heads are not
eligible to serve as inspector general within five years of their service in those roles.
new text end

new text begin Subd. 2. new text end

new text begin Appointment. new text end

new text begin The Inspector General Advisory Council will select the inspector
general after a competitive process from among eligible applicants for the position of
inspector general. The council must assess eligible candidates based on qualifications,
including experience in auditing, financial analysis, public administration, law enforcement,
or related fields.
new text end

new text begin Subd. 3. new text end

new text begin Term. new text end

new text begin The inspector general serves a five-year term and may be appointed to
two terms. The inspector general may only be removed for cause by a vote of at least 60
percent of the members of the advisory council.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026.
new text end

Sec. 4.

new text begin [15D.04] POWERS AND DUTIES.
new text end

new text begin The inspector general is authorized and responsible for:
new text end

new text begin (1) conducting audits, inspections, evaluations, and investigations of state executive
branch agencies and programs according to professional auditing standards to: (i) identify
fraud, waste, abuse, and inefficiencies; (ii) make recommendations for changes to programs
for improving effectiveness and efficiency; and (iii) protect the integrity of the use of state
funds;
new text end

new text begin (2) issuing subpoenas to compel the production of documents or testimony relevant to
investigations;
new text end

new text begin (3) referring matters for civil, criminal, or administrative action to the appropriate
authorities;
new text end

new text begin (4) recommending legislative or policy changes to improve program efficiency and
effectiveness;
new text end

new text begin (5) publishing reports on completion of an audit or investigation summarizing findings,
recommendations, and outcomes of the inspector general's activities;
new text end

new text begin (6) establishing a specialized division within the Office of the Inspector General to
investigate fraud, waste, and abuse involving state law enforcement and public safety
programs. This division shall ensure that investigations are independent and distinct from
the roles of the attorney general or Department of Public Safety;
new text end

new text begin (7) investigating any public or private entity that receives taxpayer funds to ensure
compliance with applicable laws, proper use of funds, and adherence to program
requirements;
new text end

new text begin (8) conducting pre-appointment reviews for all senior agency officials to identify potential
conflicts of interest, ensuring their suitability for positions of public trust; and
new text end

new text begin (9) submitting an annual report summarizing the work of the office to the Inspector
General Advisory Council and make the report publicly available by posting the report on
the inspector general's website.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026.
new text end

Sec. 5.

new text begin [15D.05] RESOURCES; APPROPRIATION.
new text end

new text begin Subdivision 1. new text end

new text begin Staff. new text end

new text begin The inspector general may hire and manage staff, including certified
public accountants, legal experts, and investigators, as necessary. The inspector general
must employ at least two licensed peace officers to serve as investigators and to assist with
investigations requiring specialized law enforcement knowledge.
new text end

new text begin Subd. 2. new text end

new text begin Contracting. new text end

new text begin The inspector general may contract with external experts to
support the work of the office.
new text end

new text begin Subd. 3. new text end

new text begin Appropriation. new text end

new text begin $....... is appropriated each year from the general fund for the
operations of the Office of the Inspector General.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026.
new text end

Sec. 6.

new text begin [15D.06] REPORTING AND TRANSPARENCY.
new text end

new text begin Subdivision 1. new text end

new text begin Reports. new text end

new text begin The inspector general must issue public reports detailing
completed audits, investigations, and corrective actions taken.
new text end

new text begin Subd. 2. new text end

new text begin Confidential information. new text end

new text begin In public reports, the inspector general must redact
sensitive or confidential information to comply with privacy laws and protect whistleblowers.
new text end

new text begin Subd. 3. new text end

new text begin Public tips. new text end

new text begin The inspector general must maintain a phone line and website for
reporting fraud, waste, and abuse that allows the person making the report to remain
anonymous.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026.
new text end

Sec. 7.

new text begin [15D.07] PROFESSIONAL STANDARDS AND REVIEW.
new text end

new text begin The inspector general's activities must adhere to professional standards as promulgated
by the Association of Inspectors General or other recognized bodies.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026.
new text end

Sec. 8.

new text begin [15D.08] INSPECTOR GENERAL ADVISORY COUNCIL.
new text end

new text begin Subdivision 1. new text end

new text begin Membership. new text end

new text begin To ensure impartiality and independence, the inspector
general shall be appointed and supervised by the Inspector General Advisory Council
comprised of:
new text end

new text begin (1) two members of the public appointed by the majority leader of the senate;
new text end

new text begin (2) two members of the public appointed by the minority leader of the senate;
new text end

new text begin (3) two members of the public appointed by the speaker of the house of representatives;
new text end

new text begin (4) two members of the public appointed by the minority leader of the house of
representatives;
new text end

new text begin (5) two members of the public appointed by the legislative auditor; and
new text end

new text begin (6) one representative from the Bureau of Criminal Apprehension, appointed by the
superintendent of the Bureau of Criminal Apprehension.
new text end

new text begin Subd. 2. new text end

new text begin Qualifications for membership. new text end

new text begin (a) To be eligible for appointment to the
Inspector General Advisory Council, a candidate must:
new text end

new text begin (1) not be a currently registered lobbyist and must not have been a registered lobbyist
in the five years prior to appointment; and
new text end

new text begin (2) have practical experience, expertise, or demonstrated knowledge in auditing, financial
analysis, public administration, law enforcement, or related fields.
new text end

new text begin (b) Appointing authorities may prioritize candidates for appointment to the Inspector
General Advisory Council who are members of the Minnesota State Bar Criminal Law
section or who have served in the Office of Public Corruption for the Federal Bureau of
Investigation.
new text end

new text begin Subd. 3. new text end

new text begin Terms. new text end

new text begin Members serve at the pleasure of their appointing authorities and each
member serves until a replacement is appointed.
new text end

new text begin Subd. 4. new text end

new text begin Per diem; expense reimbursement. new text end

new text begin Members may be compensated for time
spent on council duties and may be reimbursed for expenses according to section 15.059,
subdivision 3.
new text end

new text begin Subd. 5. new text end

new text begin Meeting space; staff. new text end

new text begin The Legislative Coordinating Commission must provide
meeting space and staff to assist the council in performing its duties.
new text end

new text begin Subd. 6. new text end

new text begin Contracting for external review. new text end

new text begin The council must contract for an external
quality assurance review of the Office of the Inspector General every three years and must
make findings from the review public.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. The
council must appoint an inspector general by January 1, 2026.
new text end

Sec. 9. new text begin OFFICE OF THE INSPECTOR GENERAL ESTABLISHMENT AND
TRANSITION.
new text end

new text begin Subdivision 1. new text end

new text begin Appointment. new text end

new text begin By January 1, 2026, the Inspector General Advisory
Council must appoint an inspector general under Minnesota Statutes, section 15D.03.
new text end

new text begin Subd. 2. new text end

new text begin Operational. new text end

new text begin By September 1, 2026, the Office of Inspector General must be
fully operational.
new text end

new text begin Subd. 3. new text end

new text begin Transition of employees. new text end

new text begin Before September 1, 2026, all officers and employees
employed in an office of inspector general for a state agency shall transition to employment
under the Office of the Inspector General under Minnesota Statutes, chapter 15D.
new text end

new text begin Subd. 4. new text end

new text begin Assets. new text end

new text begin Before September 1, 2026, assets and unused appropriations for existing
offices of inspectors general shall be transferred to the Office of the Inspector General under
Minnesota Statutes, chapter 15D.
new text end

new text begin Subd. 5. new text end

new text begin Office space. new text end

new text begin The commissioner of administration must provide office space
on the Capitol Mall complex for the Office of the Inspector General under Minnesota
Statutes, chapter 15D, under a rental agreement.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026.
new text end

Sec. 10. new text begin INSPECTOR GENERAL ADVISORY COUNCIL; INITIAL
APPOINTMENTS AND FIRST MEETING.
new text end

new text begin Subdivision 1. new text end

new text begin Initial appointments. new text end

new text begin Appointing authorities must make appointments
to the Inspector General Advisory Council by August 1, 2025.
new text end

new text begin Subd. 2. new text end

new text begin First meeting. new text end

new text begin The member appointed by the representative from the Bureau
of Criminal Apprehension must convene the first meeting of the Inspector General Advisory
Council by September 15, 2025.
new text end