Minnesota Session Laws - 2026 Regular Session

CHAPTER 92--S.F.No. 856

An act

relating to state government; creating the Office of the Inspector General; creating an advisory commission; making conforming and technical changes; providing for interagency agreements; requiring reports; appropriating money;

amending Minnesota Statutes 2024, sections 3.971, by adding a subdivision; 15A.0815, subdivision 2; 43A.32, by adding a subdivision; 127A.21, subdivision 1a, by adding subdivisions; 142A.03, by adding a subdivision; 142A.12, subdivision 5; 144.05, by adding a subdivision; 245.095, subdivision 5; 256.01, by adding a subdivision; 609.456, subdivision 2; Minnesota Statutes 2025 Supplement, sections 10A.01, subdivision 35; 13.82, subdivision 1; 127A.21, subdivision 5; 626.84, subdivision 1; proposing coding for new law as Minnesota Statutes, chapter 15E; repealing Minnesota Statutes 2024, sections 13.321, subdivision 12; 127A.21, subdivisions 1, 2, 3, 4, 6, 7.

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

ARTICLE 1

OFFICE OF THE INSPECTOR GENERAL

Section 1.

Minnesota Statutes 2024, section 3.971, is amended by adding a subdivision to read:

new text begin Subd. 3b. new text end

new text begin Public reports of fraud and misuse. new text end

new text begin Notwithstanding the classification of data as not public, the legislative auditor must refer all credible reports from the public about potential fraud or misuse, as those terms are defined in chapter 15E, to the inspector general appointed under chapter 15E. The legislative auditor may coordinate reviews and investigations with the inspector general when coordination conserves resources and does not compromise the reviews or investigations. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 2.

Minnesota Statutes 2025 Supplement, section 10A.01, subdivision 35, is amended to read:

Subd. 35.

Public official.

"Public official" means any:

(1) member of the legislature;

(2) individual employed by the legislature as secretary of the senate, legislative auditor, director of the Legislative Budget Office, chief clerk of the house of representatives, revisor of statutes, or researcher, legislative analyst, fiscal analyst, or attorney in the Office of Senate Counsel, Research and Fiscal Analysis, House Research, or the House Fiscal Analysis Department;

(3) constitutional officer in the executive branch and the officer's chief administrative deputy;

(4) solicitor general or deputy, assistant, or special assistant attorney general;

(5) commissioner, deputy commissioner, or assistant commissioner of any state department or agency as listed in section 15.01 or 15.06, or the state chief information officer;

(6) member, chief administrative officer, or deputy chief administrative officer of a state board or commission that has either the power to adopt, amend, or repeal rules under chapter 14, or the power to adjudicate contested cases or appeals under chapter 14;

(7) individual employed in the executive branch who is authorized to adopt, amend, or repeal rules under chapter 14 or adjudicate contested cases under chapter 14;

(8) executive director of the State Board of Investment;

(9) deputy of any official listed in clauses (7) and (8);

(10) judge of the Workers' Compensation Court of Appeals;

(11) administrative law judge or compensation judge in the State Office of Administrative Hearings or unemployment law judge in the Department of Employment and Economic Development;

(12) member, regional administrator, division director, general counsel, or operations manager of the Metropolitan Council;

(13) member or chief administrator of a metropolitan agency;

(14) director of the Division of Alcohol and Gambling Enforcement in the Department of Public Safety;

(15) member or executive director of the Health and Education Facilities Authority;

(16) member of the board of directors or president of Enterprise Minnesota, Inc.;

(17) member of the board of directors or executive director of the Minnesota State High School League;

(18) member of the Minnesota Ballpark Authority established in section 473.755;

(19) citizen member of the Legislative-Citizen Commission on Minnesota Resources;

(20) manager of a watershed district, or member of a watershed management organization as defined under section 103B.205, subdivision 13;

(21) supervisor of a soil and water conservation district;

(22) director of Explore Minnesota Tourism;

(23) citizen member of the Lessard-Sams Outdoor Heritage Council established in section 97A.056;

(24) citizen member of the Clean Water Council established in section 114D.30;

(25) member or chief executive of the Minnesota Sports Facilities Authority established in section 473J.07;

(26) district court judge, appeals court judge, or supreme court justice;

(27) county commissioner;

(28) member of the Greater Minnesota Regional Parks and Trails Commission;

(29) member of the Destination Medical Center Corporation established in section 469.41; deleted text begin or deleted text end

(30) chancellor or member of the Board of Trustees of the Minnesota State Colleges and Universities new text begin ; or new text end

new text begin (31) inspector general appointed under chapter 15E, or individual employed by 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, 2027. new text end

Sec. 3.

Minnesota Statutes 2024, section 15A.0815, subdivision 2, is amended to read:

Subd. 2.

Agency head salaries.

The salary for a position listed in this subdivision shall be determined by the Compensation Council under section 15A.082. The commissioner of management and budget must publish the salaries on the department's website. This subdivision applies to the following positions:

Commissioner of administration;

Commissioner of agriculture;

Commissioner of education;

Commissioner of children, youth, and families;

Commissioner of commerce;

Commissioner of corrections;

Commissioner of health;

Commissioner, Minnesota Office of Higher Education;

Commissioner, Minnesota IT Services;

Commissioner, Housing Finance Agency;

Commissioner of human rights;

Commissioner of human services;

Commissioner of labor and industry;

Commissioner of management and budget;

Commissioner of natural resources;

Commissioner, Pollution Control Agency;

Commissioner of public safety;

Commissioner of revenue;

Commissioner of employment and economic development;

Commissioner of transportation;

Commissioner of veterans affairs;

Executive director of the Gambling Control Board;

Executive director of the Minnesota State Lottery;

Executive director of the Office of Cannabis Management;

new text begin Inspector general appointed under chapter 15E; new text end

Commissioner of Iron Range resources and rehabilitation;

Commissioner, Bureau of Mediation Services;

Ombudsman for mental health and developmental disabilities;

Ombudsperson for corrections;

Chair, Metropolitan Council;

Chair, Metropolitan Airports Commission;

School trust lands director;

Executive director of pari-mutuel racing;

Commissioner, Public Utilities Commission;

Chief Executive Officer, Direct Care and Treatment; and

Director of the Office of Emergency Medical Services.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 4.

new text begin [15E.10] OFFICE OF THE INSPECTOR GENERAL. new text end

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

new text begin (b) In exercising the inspector general's powers and duties, the inspector general must operate independently of all state executive branch agencies and report directly to the governor. The inspector general is not subject to direction or interference from any executive or legislative authority, except as directed by enacted law. new text end

new text begin (c) The inspector general shall direct an Office of the Inspector General. new text end

new text begin (d) The inspector general serves in the unclassified service. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 5.

new text begin [15E.15] 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) "agency" means a department, board, council, committee, authority, commission, agency, or office in the executive branch of state government, including the constitutional offices; new text end

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

new text begin (3) "fraud" means an intentional or deceptive act or failure to act 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 or misuse; new text end

new text begin (5) "misuse" means improper use of authority or position for personal gain or to cause harm to others, including the improper use of public resources or programs contrary to their intended purpose; and new text end

new text begin (6) "personal gain" means a benefit to a person; to a person's spouse, parent, child, or other legal dependent; or to an in-law of the person or the person's child. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 6.

new text begin [15E.20] 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 or higher 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, deputy commissioners or agency heads, governors, or legislators, and persons elected to an office other than governor or legislator, 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 Legislative Inspector General Advisory Commission must recommend candidates for inspector general after a competitive process from among eligible applicants for the position of inspector general. To be recommended by the commission, a candidate must be approved for recommendation by five of the eight members of the commission. The commission must assess eligible candidates based on qualifications, including experience in auditing, financial analysis, public administration, law enforcement, or related fields. The inspector general is appointed by the governor, after consideration of recommendations from the Legislative Inspector General Advisory Commission, with confirmation by a vote of three-fifths of the senate. Section 15.066, subdivision 3, does not apply. If the senate does not confirm a person appointed by the governor, the Legislative Inspector General Advisory Commission must consider applicants and make recommendations to the governor as required under section 15E.60, subdivision 4. 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 unlimited additional terms. An appointment to an additional term must be confirmed by a vote of three-fifths of the senate. new text end

new text begin Subd. 4. new text end

new text begin Vacancy. new text end

new text begin The Legislative Inspector General Advisory Commission must provide recommendations to the governor for appointment to fill a vacancy in the position of the inspector general within 90 days of a vacancy occurring or within 60 days of being advised by the inspector general that a vacancy is expected to occur. The governor must appoint an inspector general within 30 days of receiving recommendations from the Legislative Inspector General Advisory Commission or within 45 days of expiration of the 90- or 60-day period if the advisory commission does not provide recommendations within the time allotted. new text end

new text begin Subd. 5. new text end

new text begin Disclosure. new text end

new text begin A candidate considered by the Legislative Inspector General Advisory Commission or selected for appointment by the governor must disclose all political affiliations, appointments, campaign work, or partisan activities prior to confirmation. new text end

new text begin Subd. 6. new text end

new text begin Nonpartisanship. new text end

new text begin The inspector general, and all employees of the office, must perform duties of the office without regard to partisan preferences or influences. While serving, the inspector general, and all employees of the office, may not engage in partisan activities, campaign work, or public political speech, unless protected by the state or federal constitution. new text end

new text begin Subd. 7. new text end

new text begin Removal. new text end

new text begin The inspector general may only be removed by the governor before the expiration of the term for cause after a public hearing conducted by the governor and with the approval of both the senate and the house of representatives. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 7.

new text begin [15E.25] POWERS AND DUTIES. new text end

new text begin Subdivision 1. new text end

new text begin Authorized powers and responsibilities. new text end

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

new text begin (1) establish standards and best practices concerning the operation, investigations, and fraud prevention processes of agency inspectors general, and periodically review agency compliance with these standards and best practices. Agencies must follow standards developed by the inspector general under this clause; new text end

new text begin (2) facilitate information sharing between agencies, including coordinating investigations that involve multiple agencies and designating a lead agency, coordinating and assisting agency identification and review of suspicious documents and data anomalies, and alerting other agencies when a person suspected of committing fraud against any agency program may also be participating in, or applying to participate in, a program administered by another agency; new text end

new text begin (3) evaluate the performance of agency inspector general offices and recommend improvements, as needed, to the agency's head and inspector general. An agency head that receives a recommendation under this clause must report annually to the chairs and ranking minority members of the legislative committees with jurisdiction over the agency regarding the agency's implementation of the inspector general's recommendations until the inspector general notifies the agency head and the chairs and ranking members that the recommendation was resolved in a satisfactory manner; new text end

new text begin (4) conduct inspections, evaluations, and investigations of agencies and programs, with a focus on recipients of public funds and publicly funded services, to: (i) identify fraud and misuse; (ii) make recommendations for changes to programs to prevent fraud and misuse; and (iii) protect the integrity of the use of public funds, data, and systems; new text end

new text begin (5) refer matters for civil, criminal, or administrative action to the Office of the Inspector General Anti-Fraud and Waste Bureau under section 15E.27, the Bureau of Criminal Apprehension, the attorney general's office, the United States Department of Justice for federal programs, or other appropriate authorities; new text end

new text begin (6) recommend legislative or policy changes to improve program efficiency and effectiveness; new text end

new text begin (7) publish reports on completion of an investigation summarizing findings, recommendations, and outcomes of the inspector general's activities; new text end

new text begin (8) investigate any private entity or local unit of government administering a state program, or any private recipient of state funds or services, to ensure the proper use of state funds and compliance with all other laws and requirements applicable to funds or services provided by the state; new text end

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

new text begin (10) alert relevant agency heads when the inspector general has a reasonable suspicion that fraud or misuse is being committed that constitutes a credible allegation, whether or not the inspector general is conducting an investigation, as provided in subdivision 3; and new text end

new text begin (11) establish and maintain a current exclusion list in a format readily accessible to agencies that identifies each program and individual for which the inspector general has obtained a court order to freeze or cease distribution of funds or made a recommendation under clause (10) to freeze or cease distribution of funds. new text end

new text begin Subd. 2. new text end

new text begin Relationship to powers and duties of other agencies. new text end

new text begin (a) The inspector general has authority to investigate fraud and misuse of public funds across all programs administered by agencies. new text end

new text begin (b) The inspector general may perform the inspector general's duties and apply the inspector general's authority without obtaining approval from another agency. new text end

new text begin (c) The Department of Human Services has primary responsibility to investigate fraud in the Medicaid program, but the inspector general has authority to conduct independent investigations related to the Medicaid program as necessary. new text end

new text begin (d) The Department of Children, Youth, and Families has primary responsibility to investigate fraud in child care programs under chapters 142D and 142E, but the inspector general has authority to conduct independent investigations related to the child care programs under chapters 142D and 142E. new text end

new text begin (e) The Department of Health has primary responsibility to investigate fraud related to women, infants, and children (WIC) and food support programs, but the inspector general has authority to conduct independent investigations related to WIC and food support programs. new text end

new text begin (f) The inspector general has concurrent authority over program integrity assessments that are related to fraud or misuse. new text end

new text begin (g) The inspector general must refer all credible reports from the public about potential fraud or misuse to the legislative auditor, and to the commissioner of human services for reports related to Medicaid. The inspector general may coordinate investigations with the legislative auditor, and the commissioner of human services for investigations related to Medicaid, when coordination conserves resources and does not compromise an investigation. new text end

new text begin (h) The Department of Information Technology Services shall provide services to the Office of the Inspector General, under a managed services contract, according to section 16E.016. new text end

new text begin (i) Nothing in this chapter may be construed to limit or interfere with the legislative auditor's authority or responsibility. new text end

new text begin (j) When issuing findings or recommending sanctions with respect to an investigation concerning a program administered by the Department of Education, the inspector general must consider the commissioner of education's authority to impose sanctions and related requirements under section 127A.21. The inspector general must not investigate policy decisions on instruction, curriculum, personnel, or other discretionary policy decisions made by a school district; charter school; cooperative unit as defined by section 123A.24, subdivision 2; or any library, library system, or library district defined in section 134.001. new text end

new text begin Subd. 3. new text end

new text begin Alerting agency of issue; seeking a court order to freeze funds. new text end

new text begin (a) If the agency does not have primary investigative authority under subdivision 2, the inspector general shall investigate and, if the inspector general has a reasonable suspicion that fraud or misuse is occurring, then the inspector general may, at the inspector general's discretion, alert the agency head and seek a court order to freeze or stop distribution of public funds, including any applicable due process and appeal rights, working in cooperation with the agency where practical and where it would not jeopardize an investigation. new text end

new text begin (b) If the agency has primary investigative authority under subdivision 2 but the inspector general is not satisfied that the agency's internal investigation is adequate or proceeding quickly enough, the inspector general may independently investigate and, if the inspector general has a reasonable suspicion that fraud or misuse is being committed, may make a recommendation to the agency to freeze or cease distribution of funds and notify the appropriate law enforcement agencies. new text end

new text begin (c) If an agency head does not act on a recommendation to freeze or cease distribution of funds as requested, after reasonable notice and consistent with any applicable interagency agreements under section 19, unless prohibited by federal requirements, the inspector general may, at the inspector general's discretion, seek a court order to freeze or stop distribution of public funds, consistent with applicable due process and appeal rights. new text end

new text begin (d) If public funds are stopped or frozen pursuant to this subdivision, the inspector general, working with and through the applicable agency, must ensure that any person whose public funds are interrupted and who is not implicated in the suspected fraud or misuse receive notice of their rights related to continued receipt of the public funds, services, or programs for which they are eligible. new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

new text begin [15E.27] LAW ENFORCEMENT POWERS. new text end

new text begin Subdivision 1. new text end

new text begin Authorization. new text end

new text begin (a) Beginning January 1, 2028, the inspector general may appoint peace officers, as defined in section 626.84, subdivision 1, paragraph (c), and establish a law enforcement agency, as defined in section 626.84, subdivision 1, paragraph (f), known as the Office of the Inspector General Anti-Fraud and Waste Bureau, to conduct statewide investigations, and to make statewide arrests under sections 629.30 and 629.34 for offenses that are within the bureau's jurisdiction. new text end

new text begin Subd. 2. new text end

new text begin Jurisdiction. new text end

new text begin (a) As used in this subdivision: new text end

new text begin (1) "law enforcement agency" has the meaning given in section 626.84, subdivision 1, paragraph (f); new text end

new text begin (2) "public employee" means a person employed by or acting for an agency or a county, municipality, or other subdivision or governmental instrumentality of the state for the purpose of exercising their respective powers and performing their respective duties, and who is not a public officer. Public employee includes a member of a charter commission; and new text end

new text begin (3) "public officer" has the meaning given in section 609.415, subdivision 1, clause (1), paragraphs (a), (d), (e), and (f), and also includes a member of a governing board of a county, municipality, or other subdivision of the state, or other governmental instrumentality within the state. new text end

new text begin (b) The Office of the Inspector General Anti-Fraud and Waste Bureau has jurisdiction to initiate inquiries and conduct investigations into suspected fraudulent activity, misuse, or criminal misconduct involving: new text end

new text begin (1) a state agency; new text end

new text begin (2) a public officer exercising official powers or performing official duties; new text end

new text begin (3) a public employee; new text end

new text begin (4) a program or service funded or administered by the state; new text end

new text begin (5) a public assistance benefit; or new text end

new text begin (6) public funds. new text end

new text begin (c) At the inspector general's discretion, the bureau may respond to the request of a law enforcement agency to exercise law enforcement duties in cooperation with the law enforcement agency that has jurisdiction over the particular matter. new text end

new text begin Subd. 3. new text end

new text begin Coordination with other law enforcement agencies. new text end

new text begin (a) The bureau must develop policies for notifying, coordinating with, and referring investigations to other law enforcement agencies with concurrent jurisdiction. new text end

new text begin (b) The Department of Human Services and the state Medicaid Fraud Control Unit have primary responsibility to investigate suspected fraudulent activity in the Medicaid program. The bureau may work with the Department of Human Services, the state Medicaid Fraud Control Unit, the Financial Crimes and Fraud Section of the Bureau of Criminal Apprehension, and other state agencies and law enforcement agencies in cases involving suspected fraudulent activity in the Medicaid program. The bureau also has authority to conduct independent investigations into suspected fraudulent activity in the Medicaid program. new text end

new text begin (c) If the bureau arrests a person, the bureau must notify the law enforcement agency with jurisdiction over the location where the offense occurred and, if different, the law enforcement agency with jurisdiction over the location where the arrest took place. The bureau is responsible for issuing any citations, filing any required reports, and delivering an arrested person to a county jail or other appropriate facility unless the bureau and a law enforcement agency with concurrent jurisdiction enter an agreement under which the other law enforcement agency acts as the lead agency. new text end

new text begin (d) Following an arrest made by the bureau, the bureau is responsible for any subsequent investigation unless: new text end

new text begin (1) the bureau is responding to a law enforcement agency's request to exercise its duties in cooperation with the law enforcement agency that has jurisdiction over the particular matter; or new text end

new text begin (2) the bureau and a law enforcement agency with concurrent jurisdiction enter an agreement under which the other law enforcement agency acts as the lead agency. new text end

new text begin Subd. 4. new text end

new text begin Policy for notice of investigations. new text end

new text begin The bureau must develop a policy for notifying the law enforcement agency with primary jurisdiction when it has initiated investigation of any person within the jurisdiction of that agency. new text end

new text begin Subd. 5. new text end

new text begin Chief law enforcement officer. new text end

new text begin If the inspector general establishes a law enforcement agency under this section, the inspector general shall appoint a peace officer employed full time to be the chief law enforcement officer and to be responsible for the management of the bureau. The chief law enforcement officer shall possess the necessary police and management experience to manage a law enforcement agency. The chief law enforcement officer may appoint, discipline, and discharge all employees of the bureau. All police managerial and supervisory personnel must be full-time employees of the bureau. Supervisory personnel must be on duty and available any time peace officers of the bureau are on duty. new text end

new text begin Subd. 6. new text end

new text begin Compliance. new text end

new text begin Except as otherwise provided in this section, the bureau shall comply with all statutes and administrative rules relating to the operation and management of a law enforcement agency. new text end

new text begin Subd. 7. new text end

new text begin Powers and duties; limitations. new text end

new text begin Powers and duties for civil or administrative enforcement provided to the inspector general or the Office of the Inspector General under this chapter do not apply to the bureau. The inspector general must not delegate the auxiliary powers described in section 15E.30, such as the power to issue subpoenas, perform inspections without a warrant, and impose penalties, to the bureau and must not exercise those auxiliary powers at the direction of the bureau. Nothing in this subdivision prohibits: new text end

new text begin (1) the inspector general from disseminating data to the bureau if there is reason to believe that the data are evidence of criminal activity within the bureau's jurisdiction; or new text end

new text begin (2) the bureau from referring a matter to the inspector general for appropriate regulatory investigation. new text end

new text begin Subd. 8. new text end

new text begin Evidence, documentation, and related materials. new text end

new text begin If the bureau seeks evidence, documentation, and related materials pertinent to an investigation, and the matter is located outside of this state, the bureau may designate representatives, including officials of the state where the matter is located, to secure the matter or inspect the matter on its behalf. new text end

new text begin Subd. 9. new text end

new text begin Annual report on activities and cost-effectiveness. new text end

new text begin By February 1 of each year, the chief law enforcement officer of the bureau shall report to the governor, the inspector general, and the chairs and ranking minority members of the legislative committees with jurisdiction over state government policy and finance, and public safety policy and finance, on the activities and cost-effectiveness of the bureau since the previous report, including but not limited to: new text end

new text begin (1) the number of allegations or reports of suspected violations provided to the bureau; new text end

new text begin (2) the number of investigations initiated by the bureau; new text end

new text begin (3) the outcomes and current status of each investigation; new text end

new text begin (4) the charging decisions made by the prosecuting authority of incidents investigated by the bureau; new text end

new text begin (5) the amount of restitution ordered in cases investigated by the bureau; and new text end

new text begin (6) the amount of money recovered by the bureau through restitution payments, asset forfeiture, or other means and the distribution of that money. new text end

new text begin Subd. 10. new text end

new text begin Assignment of peace officers; employment status. new text end

new text begin (a) Regardless of whether the inspector general establishes a law enforcement agency under this section, the inspector general may enter into memoranda of understanding with chief law enforcement officers of state and local law enforcement agencies to assign peace officers as defined in section 626.84, subdivision 1, paragraph (c), to the Office of the Inspector General. Peace officers assigned to the Office of the Inspector General under this subdivision have statewide jurisdiction to conduct criminal investigations into matters described in subdivision 2 and have the same powers of arrest as those possessed by a sheriff. new text end

new text begin (b) Peace officers assigned to the Office of the Inspector General under this subdivision remain employees of the same entity that employed them before the assignment authorized under this section. Those officers are not employees of the Office of the Inspector General. new text end

new text begin (c) Peace officers assigned to the Office of the Inspector General under this subdivision are subject to annual performance reviews conducted by the inspector general or an operational supervisor designated by the inspector general. new text end

new text begin Subd. 11. new text end

new text begin Data practices. new text end

new text begin The Office of the Inspector General Anti-Fraud and Waste Bureau is subject to chapter 13. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 9.

new text begin [15E.30] AUXILIARY POWERS. new text end

new text begin Subdivision 1. new text end

new text begin Subpoena power. new text end

new text begin In all matters relating to official duties, the inspector general has the powers possessed by courts of law to issue and have subpoenas served. new text end

new text begin Subd. 2. new text end

new text begin Inquiry and inspection power; duty to aid inspector general. new text end

new text begin All executive branch officials and their deputies and employees, all political subdivision officials and employees administering state-funded programs, and all corporations, firms, and individuals having business involving the receipt, disbursement, or custody of public funds shall at all times: new text end

new text begin (1) afford reasonable facilities for examinations by the inspector general; new text end

new text begin (2) provide returns and reports required by the inspector general; new text end

new text begin (3) attend and answer under oath the inspector general's lawful inquiries; new text end

new text begin (4) produce and exhibit all books, accounts, documents, data of any classification, and property that the inspector general requests to inspect; and new text end

new text begin (5) in all things cooperate with the inspector general. new text end

new text begin Subd. 3. new text end

new text begin Penalties. new text end

new text begin (a) If a person refuses or neglects to obey any lawful direction of the inspector general, a deputy, or assistant, or withholds any information, book, record, paper or other document called for by the inspector general for the purpose of examination, after having been lawfully required by order or subpoena, upon application by the inspector general, a judge of the district court in the county where the order or subpoena was made returnable shall compel obedience or punish disobedience as for contempt, as in the case of a similar order or subpoena issued by the court. new text end

new text begin (b) A person who swears falsely to the inspector general concerning any matter stated under oath is guilty of a gross misdemeanor. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 10.

new text begin [15E.35] IDENTIFICATION OF FRAUD REPORTING TOOL. new text end

new text begin (a) The head of each agency must prominently highlight on the agency's website the fraud reporting tools administered by the Office of the Inspector General under this chapter, and by the Office of the Legislative Auditor under chapter 3. new text end

new text begin (b) As part of any grant agreement between the state and a nonprofit organization, the agreement must require the nonprofit organization to prominently highlight on the organization's website the fraud reporting tools administered by the Office of the Inspector General under this chapter, and by the Office of the Legislative Auditor under chapter 3. The agency administering the grant must regularly confirm and document the organization's compliance with the requirement under this paragraph for the life of the grant agreement. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 11.

new text begin [15E.40] DATA PRACTICES. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have the meanings given. new text end

new text begin (b) "Confidential data on individuals" has the meaning given in section 13.02, subdivision 3. new text end

new text begin (c) "Government entity" has the meaning given in section 13.02, subdivision 7a. new text end

new text begin (d) "Nonpublic data" has the meaning given in section 13.02, subdivision 9. new text end

new text begin (e) "Not public data" has the meaning given in section 13.02, subdivision 8a. new text end

new text begin (f) "Private data on individuals" has the meaning given in section 13.02, subdivision 12. new text end

new text begin (g) "Protected nonpublic data" has the meaning given in section 13.02, subdivision 13. new text end

new text begin Subd. 2. new text end

new text begin Government Data Practices Act. new text end

new text begin The Office of the Inspector General is a government entity and is subject to the Government Data Practices Act, chapter 13. The inspector general is the head of a state agency for purposes of section 13.43, subdivision 2, paragraph (e). new text end

new text begin Subd. 3. new text end

new text begin Access. new text end

new text begin In order to perform the duties under this chapter, the inspector general has access to data of any classification, including data classified as not public data. It is not a violation of chapter 13 or any other statute classifying government data as not public data if a government entity provides data pursuant to a subpoena issued under this chapter. new text end

new text begin Subd. 4. new text end

new text begin Dissemination. new text end

new text begin The inspector general may disseminate data of any classification, including not public data, to: new text end

new text begin (1) a government entity, other than a law enforcement agency or prosecuting authority, if the dissemination of the data aids a pending investigation or administrative action; new text end

new text begin (2) a law enforcement agency or prosecuting authority if there is reason to believe that the data are evidence of criminal activity within the agency's or authority's jurisdiction; or new text end

new text begin (3) the commissioner of human services as provided in section 15E.25, subdivision 2, paragraph (g). new text end

new text begin Subd. 5. new text end

new text begin Legislative auditor. new text end

new text begin The inspector general must disseminate data of any classification, including not public data, to the legislative auditor upon request. new text end

new text begin Subd. 6. new text end

new text begin Data classifications; civil investigations. new text end

new text begin (a) Notwithstanding any other law, data relating to a civil investigation conducted under this chapter are confidential data on individuals or protected nonpublic data while the investigation is active. Whether a civil investigation is active shall be determined by the inspector general. new text end

new text begin (b) Data relating to a civil investigation conducted under this chapter become public data upon the inspector general's completion or referral of the investigation, unless: new text end

new text begin (1) the release of the data would jeopardize another active investigation by the inspector general or another government entity; new text end

new text begin (2) the inspector general reasonably believes the data will be used in litigation related to any civil, criminal, or administrative actions, including reconsideration or appeal of any such action; or new text end

new text begin (3) the data are classified as not public under another statute or paragraph (e). new text end

new text begin (c) Data subject to paragraph (b), clause (2), are confidential data on individuals or protected nonpublic data and become public when the litigation has been completed or the time period to appeal has expired, or the litigation is no longer being actively pursued. new text end

new text begin (d) Unless the data are subject to a more restrictive classification, upon the inspector general's decision to no longer actively pursue a civil investigation under this chapter, data relating to a civil investigation are private data on individuals or nonpublic data except the following data are public: new text end

new text begin (1) data relating to the investigation's general description, existence, status, and disposition; and new text end

new text begin (2) data that document the inspector general's work. new text end

new text begin (e) Inactive civil investigative data on an individual supplying information for an investigation that could reasonably be used to determine the individual's identity are private data on individuals if the information supplied was needed for the investigation and would not have been provided to the inspector general without an assurance to the individual that the individual's identity would remain private. new text end

new text begin (f) Data relating to a civil investigation conducted under this chapter that are obtained from an entity that is not a government entity have the same classification that the data would have if obtained from a government entity. new text end

new text begin Subd. 7. new text end

new text begin Privileges. new text end

new text begin Nothing in this section or section 15E.30 requires the disclosure of documents or information that is legally privileged under statute or other law, including documents or information subject to section 13.393 or 595.02. new text end

new text begin Subd. 8. new text end

new text begin Criminal investigations. new text end

new text begin This section does not apply to criminal investigations conducted by the Office of the Inspector General Anti-Fraud and Waste Bureau under section 15E.27. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 12.

new text begin [15E.45] RESOURCES. new text end

new text begin Subdivision 1. new text end

new text begin Staff. new text end

new text begin (a) The inspector general may hire and manage staff as necessary and in accordance with chapter 43A. The inspector general must employ and manage at least one attorney to serve as legal counsel for the office and to advise the inspector general on all legal matters relating to the office. Except for the inspector general, the staff in the Office of the Inspector General shall serve in the classified civil service. Except as provided in paragraph (b), compensation for employees of the inspector general in the classified service who are represented by an exclusive representative shall be governed by a collective bargaining agreement negotiated between the commissioner of management and budget and the exclusive representative. Compensation for employees of the inspector general in the classified service who are not represented by an exclusive representative shall be as provided in the nonrepresented employees compensation plan under section 43A.18, subdivision 2, or by the managerial plan under section 43A.18, subdivision 3, depending on the employee's job classification. new text end

new text begin (b) Section 15.039, subdivision 7, applies to employees transferred into the Office of the Inspector General from other offices of inspectors general within the first year following enactment of chapter 15E. 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, subject to section 16C.08. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 13.

new text begin [15E.50] 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 investigations and corrective actions taken. new text end

new text begin Subd. 2. 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 and misuse that allows the person making the report to remain anonymous. new text end

new text begin Subd. 3. new text end

new text begin Report; inactive investigations. new text end

new text begin By December 1, 2027, and each December 1 thereafter, the inspector general must submit a report to the legislative auditor and the chairs and ranking minority members of the legislative committees with jurisdiction over state government and data practices regarding all investigations the inspector general did not open after receiving a tip or complaint or decided to no longer actively pursue for the preceding calendar year. The report must include, at a minimum, summary data as defined in section 13.02, subdivision 19, for: new text end

new text begin (1) all complaints or tips received; new text end

new text begin (2) the type of allegation; new text end

new text begin (3) if the complaint or tip was not frivolous, the reason that the inspector general did not open an investigation or decided to no longer pursue the investigation; and new text end

new text begin (4) referrals to other agencies or the legislative auditor. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 14.

new text begin [15E.55] PROFESSIONAL STANDARDS AND REVIEW. new text end

new text begin (a) 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 (b) The governor must contract with the Association of Inspectors General or another recognized body for an external quality assurance review of the Office of the Inspector General after years two and four of each inspector general term. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 15.

new text begin [15E.60] LEGISLATIVE INSPECTOR GENERAL ADVISORY COMMISSION. new text end

new text begin Subdivision 1. new text end

new text begin Membership. new text end

new text begin The Legislative Inspector General Advisory Commission is comprised of: new text end

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

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

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

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

new text begin Subd. 2. new text end

new text begin Terms. new text end

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

new text begin Subd. 3. new text end

new text begin Chair. new text end

new text begin The commission must select a chair after consideration of its members by January 31 of each odd-numbered year. The chair serves until a successor is elected. The chair must alternate biennially between the senate and the house of representatives. new text end

new text begin Subd. 4. new text end

new text begin Duties. new text end

new text begin (a) The Legislative Inspector General Advisory Commission: new text end

new text begin (1) must consider applicants for and make recommendations to the governor for the position of inspector general; and new text end

new text begin (2) may conduct hearings to review the work of the inspector general to ensure impartiality, independence, and effectiveness. new text end

new text begin (b) By January 1, 2027, the commission must conduct at least one hearing on, and provide recommendations to the chairs and ranking minority members of the committees in the senate and the house of representatives with jurisdiction over commerce and public safety on, merging the Financial Crimes and Fraud Section of the Department of Public Safety into the Office of the Inspector General. The recommendations should include proposed legislation to effectuate the merger. new text end

new text begin Subd. 5. new text end

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

new text begin Members may be compensated for time spent on commission duties and may be reimbursed for expenses according to the rules of their respective bodies. new text end

new text begin Subd. 6. 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 commission in performing its duties. new text end

new text begin Subd. 7. new text end

new text begin Open meetings. new text end

new text begin The Legislative Inspector General Advisory Commission is subject to the requirements in section 3.055. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 16.

Minnesota Statutes 2024, section 609.456, subdivision 2, is amended to read:

Subd. 2.

Legislative auditor new text begin or inspector general new text end .

Whenever an employee or officer of the state, University of Minnesota, or other organization listed in section 3.971, subdivision 6, discovers evidence of new text begin fraud, new text end theft, embezzlement, or new text begin other new text end unlawful use of public funds or property, the employee or officer shall deleted text begin , except when to do so would knowingly impede or otherwise interfere with an ongoing criminal investigation, deleted text end promptly report in writing to the legislative auditor new text begin or the inspector general appointed under chapter 15E new text end a detailed description of the alleged incident or incidents.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 17.

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 Notwithstanding Minnesota Statutes, section 15E.20, subdivision 4, by January 1, 2027, the Legislative Inspector General Advisory Commission must make recommendations for appointment of an inspector general under Minnesota Statutes, chapter 15E. By February 1, 2027, the governor must appoint an inspector general. Upon appointment, the inspector general may engage the superintendent of the Bureau of Criminal Apprehension and negotiate an interagency agreement as provided in section 19, paragraph (e). new text end

new text begin Subd. 2. new text end

new text begin Operational. new text end

new text begin By September 1, 2027, the Office of the Inspector General must be fully operational. new text end

new text begin Subd. 3. new text end

new text begin Staffing. new text end

new text begin The inspector general's first annual report submitted under Minnesota Statutes, section 15E.25, subdivision 1, clause (9), is due February 1, 2028, and must include the following information: new text end

new text begin (1) the current number of positions authorized by the inspector general, by job classification; new text end

new text begin (2) the number of positions under clause (1) that the inspector general has filled; and new text end

new text begin (3) any staffing changes the inspector general anticipates during calendar year 2028. new text end

new text begin Subd. 4. new text end

new text begin Transition of employees. new text end

new text begin (a) After June 30, 2027, all officers and employees employed in an office of inspector general for a state department or agency shall transition to employment under the Office of the Inspector General under Minnesota Statutes, chapter 15E, except as specified in subdivision 7. new text end

new text begin (b) The following protections shall apply to employees who are transferred to the Office of the Inspector General under Minnesota Statutes, chapter 15E, from state departments or agencies: new text end

new text begin (1) no transferred employee shall have their employment status and job classification altered as a result of the transfer; new text end

new text begin (2) transferred employees who were represented by an exclusive representative prior to the transfer shall continue to be represented by the same exclusive representative after the transfer; new text end

new text begin (3) any applicable collective bargaining agreements with exclusive representatives shall continue in full force and effect for transferred employees after the transfer while the agreement remains in effect; new text end

new text begin (4) when an employee in a temporary unclassified position is transferred to the Office of the Inspector General, the total length of time that the employee has served in the appointment must include all time served in the appointment at the transferring department or agency and the time served in the appointment at the Office of the Inspector General. An employee in a temporary unclassified position who was hired by a transferring department or agency through an open competitive selection process under a policy enacted by the commissioner of management and budget is considered to have been hired through a competitive selection process after the transfer; new text end

new text begin (5) the state must meet and negotiate with the exclusive representatives of the transferred employees about proposed changes affecting or relating to the transferred employees' terms and conditions of employment to the extent that the proposed changes are not addressed in the applicable collective bargaining agreement; and new text end

new text begin (6) if the state transfers ownership or control of any facilities, services, or operations of the Office of the Inspector General to another private or public entity by subcontracting, sale, assignment, lease, or other transfer, the state must require as a written condition of the transfer of ownership or control the following: new text end

new text begin (i) employees who perform work in the facilities, services, or operations must be offered employment with the entity acquiring ownership or control before the entity offers employment to any individual who was not employed by the transferring department or agency at the time of the transfer; and new text end

new text begin (ii) the wage and benefit standards of the transferred employees must not be reduced by the entity acquiring ownership or control through the expiration of the collective bargaining agreement in effect at the time of the transfer or for a period of two years after the transfer, whichever is longer. new text end

new text begin There is no liability on the part of, and no cause of action arises against, the state of Minnesota or its officers or agents for any action or inaction of any entity acquiring ownership or control of any facilities, services, or operations of the department. new text end

new text begin Subd. 5. new text end

new text begin Assets. new text end

new text begin Before September 1, 2027, assets and unused appropriations for existing offices of inspectors general shall be transferred to the Office of the Inspector General under Minnesota Statutes, chapter 15E, except as specified in subdivision 7. new text end

new text begin Subd. 6. new text end

new text begin Office space. new text end

new text begin The commissioner of administration must provide or lease office space in the city of St. Paul for the Office of the Inspector General under Minnesota Statutes, chapter 15E, under a rental agreement. new text end

new text begin Subd. 7. new text end

new text begin Exceptions. new text end

new text begin (a) No employees or positions in the Department of Human Services are transferred under this section. new text end

new text begin (b) No employees or positions in the Department of Corrections are transferred under this section. new text end

new text begin (c) No employees or positions in the student maltreatment program of the Department of Education or other Department of Education employees or positions dedicated to student maltreatment investigations under Minnesota Statutes, chapter 260E, are transferred under this section. new text end

new text begin (d) No employees or positions in the Department of Children, Youth, and Families are transferred under this section. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 18.

new text begin LEGISLATIVE INSPECTOR GENERAL ADVISORY COMMISSION; 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 Legislative Inspector General Advisory Commission by August 1, 2026. new text end

new text begin Subd. 2. new text end

new text begin First meeting. new text end

new text begin The senate majority leader must designate one member of the Legislative Inspector General Advisory Commission to convene the first meeting of the Legislative Inspector General Advisory Commission by September 15, 2026. new text end

new text begin Subd. 3. new text end

new text begin Chair. new text end

new text begin The Legislative Inspector General Advisory Commission must elect a chair from among its senate members at its first meeting. The first chair shall serve until a successor is selected at the start of the next biennium as provided in Minnesota Statutes, section 15E.60, subdivision 3. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 19.

new text begin INTERAGENCY AGREEMENTS. new text end

new text begin (a) By December 31, 2027, the Office of the Inspector General must enter into an interagency agreement with the Department of Human Services. The agreement must not preclude the department from performing, or give the inspector general authority to take actions that would interfere with the department's ability to perform, duties required as a condition for securing or maintaining federal funding. The interagency agreement must include a clause on cost-sharing for investigations that may require multiagency coordination and a clause that details what process will be followed if a joint investigation is required. The interagency agreement must not limit the inspector general's authority or authorized powers and responsibilities. The department and the inspector general may coordinate investigative efforts as necessary or practical, but an interagency agreement must not diminish, delay, or restrict the inspector general's ability to investigate fraud and misuse when an independent investigation is pursued. new text end

new text begin (b) By December 31, 2027, the Office of the Inspector General must enter into an interagency agreement with the Department of Children, Youth, and Families. The interagency agreement must include a clause on cost-sharing for investigations that may require multiagency coordination and a clause that details what process will be followed if a joint investigation is required. The interagency agreement must not limit the inspector general's authority or authorized powers and responsibilities. The department and the inspector general may coordinate investigative efforts as necessary or practical, but an interagency agreement must not diminish, delay, or restrict the inspector general's ability to investigate fraud and misuse when an independent investigation is pursued. new text end

new text begin (c) By December 31, 2027, the Office of the Inspector General must enter into an interagency agreement with the Department of Health. The interagency agreement must include a clause on cost-sharing for investigations that may require multiagency coordination and a clause that details what process will be followed if a joint investigation is required. The interagency agreement must not limit the inspector general's authority or authorized powers and responsibilities. The department and the inspector general may coordinate investigative efforts as necessary or practical, but an interagency agreement must not diminish, delay, or restrict the inspector general's ability to investigate fraud and misuse when an independent investigation is pursued. new text end

new text begin (d) As soon as practicable after January 1, 2027, the Office of the Inspector General must enter into an interagency agreement with the Department of Education. The interagency agreement must not limit the inspector general's authority or authorized powers and responsibilities. The interagency agreement must provide for embedding Office of the Inspector General employees, including but not limited to all employees transferred from the Department of Education, within office space occupied by the Department of Education. Embedded employees remain under the operational control and direction of the inspector general and must focus only on the Department of Education and its programs. Effective immediately, nothing in Minnesota Statutes, chapter 15E, authorizes any sanction by the commissioner or inspector general that reduces, pauses, or otherwise interrupts state or federal aid to a school district; charter school; cooperative unit as defined by Minnesota Statutes, section 123A.24, subdivision 2; or any library, library system, or library district defined in Minnesota Statutes, section 134.001. new text end

new text begin (e) The Office of the Inspector General may enter into an interagency agreement with the Bureau of Criminal Apprehension to assist the inspector general with any criminal investigation or to conduct a criminal investigation on behalf of the inspector general. The Office of the Inspector General and the Bureau of Criminal Apprehension may coordinate investigative efforts as necessary or practical. The interagency agreement must include a clause on cost-sharing for investigations that may require multiagency coordination and a clause that details what process will be followed if a joint investigation is required. Any Bureau of Criminal Apprehension personnel that assist the Office of the Inspector General under an interagency agreement remain under the operational control and direction of the superintendent of the Bureau of Criminal Apprehension. The Office of the Inspector General may have access to any criminal investigative data obtained or created by the Bureau of Criminal Apprehension as part of any criminal investigation efforts conducted pursuant to the interagency agreement. new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (a) is effective January 1, 2027, or upon federal approval from the Centers for Medicare and Medicaid Services, whichever is later. The commissioner of human services must notify the revisor of statutes when the Centers for Medicare and Medicaid Services approve or deny this section. The remainder of this section is effective January 1, 2027. new text end

Sec. 20.

new text begin APPROPRIATIONS. new text end

new text begin Subdivision 1. new text end

new text begin Inspector general. new text end

new text begin $1,875,000 in fiscal year 2027 is appropriated from the general fund to the Office of the Inspector General for purposes of this act. The base for this appropriation is $5,852,000 in fiscal year 2028 and $5,852,000 in fiscal year 2029. The commissioner of administration, in consultation with the commissioner of management and budget, may transfer amounts in fiscal year 2027 to the commissioner of administration for office build out, cost of space, office equipment, and other costs directly related to the establishment of the office. new text end

new text begin Subd. 2. new text end

new text begin Administration. new text end

new text begin $892,000 in fiscal year 2027 is appropriated from the general fund to the commissioner of administration to establish the Office of the Inspector General. The base for this appropriation is $891,000 in fiscal year 2028 and $0 in fiscal year 2029. new text end

new text begin Subd. 3. new text end

new text begin Children, youth, and families. new text end

new text begin $465,000 in fiscal year 2027 is appropriated from the general fund to the commissioner of children, youth, and families to coordinate with the Office of the Inspector General as required under this act. The base for this appropriation is $620,000 in fiscal year 2028 and $620,000 in fiscal year 2029. new text end

new text begin Subd. 4. new text end

new text begin Health. new text end

new text begin $499,000 in fiscal year 2027 is appropriated from the general fund to the commissioner of health to coordinate with the Office of the Inspector General as required under this act. new text end

new text begin Subd. 5. new text end

new text begin Human services. new text end

new text begin $4,918,000 in fiscal year 2027 is appropriated from the general fund to the commissioner of human services to coordinate with the Office of the Inspector General as required under this act. The base for this appropriation is $5,720,000 in fiscal year 2028 and $5,720,000 in fiscal year 2029. new text end

new text begin Subd. 6. new text end

new text begin Legislature. new text end

new text begin $29,000 in fiscal year 2027 is appropriated from the general fund to the executive director of the Legislative Coordinating Commission to support the Legislative Inspector General Advisory Commission. The base for this appropriation is $7,000 in fiscal year 2028 and $7,000 in fiscal year 2029. new text end

ARTICLE 2

CONFORMING ITEMS AND REPEALERS

Section 1.

Minnesota Statutes 2025 Supplement, section 13.82, subdivision 1, is amended to read:

Subdivision 1.

Application.

This section shall apply to agencies which carry on a law enforcement function, including but not limited to municipal police departments, county sheriff departments, fire departments, the Bureau of Criminal Apprehension, the Minnesota State Patrol, the Board of Peace Officer Standards and Training, new text begin the Office of the Inspector General Anti-Fraud and Waste Bureau, new text end and county human service agency client and provider fraud investigation, prevention, and control units operated or supervised by the Department of Human Services.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 2.

Minnesota Statutes 2024, section 43A.32, is amended by adding a subdivision to read:

new text begin Subd. 4. new text end

new text begin Leave for legislative service. new text end

new text begin An officer or employee elected to state legislative office and required to take a leave of absence under subdivision 2 or 3 has the same rights with respect to accrued and future seniority status, efficiency rating, vacation, insurance benefits, sick leave, and other benefits as if the leave had not been taken. The appointing authority must not subtract a period of mandatory legislative leave when determining the officer's or employee's length of service. The officer's or employee's pension and retirement benefit rights are as provided for local government employees under section 3.088, subdivisions 3 and 6. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2027, and applies to collective bargaining agreements that take effect on or after that date. new text end

Sec. 3.

Minnesota Statutes 2024, section 127A.21, subdivision 1a, is amended to read:

Subd. 1a.

Definitions.

(a) For purposes of this section, the following terms have the meanings given.

deleted text begin (b) "Abuse" means actions that may, directly or indirectly, result in unnecessary costs to department programs. Abuse may involve paying for items or services when there is no legal entitlement to that payment. deleted text end

deleted text begin (c) deleted text end new text begin (b) new text end "Department program" means a program funded by the Department of Education that involves the transfer or disbursement of public funds or other resources to a program participant. "Department program" includes state and federal aids or grants received by a school district or charter school or other program participant.

new text begin (c) "Inspector general" means the inspector general appointed under chapter 15E. new text end

deleted text begin (d) "Fraud" means an intentional or deliberate act to deprive another of property or money or to acquire property or money by deception or other unfair means. Fraud includes intentionally submitting false information to the department for the purpose of obtaining a greater compensation or benefit than that to which the person is legally entitled. Fraud also includes failure to correct errors in the maintenance of records in a timely manner after a request by the department. deleted text end

deleted text begin (e) "Investigation" means an audit, investigation, proceeding, or inquiry by the Office of the Inspector General related to a program participant in a department program. deleted text end

deleted text begin (f) deleted text end new text begin (d) new text end "Program participant" means any entity or person, including associated persons, that receives, disburses, or has custody of funds or other resources transferred or disbursed under a department program.

deleted text begin (g) "Waste" means practices that, directly or indirectly, result in unnecessary costs to department programs, such as misusing resources. deleted text end

deleted text begin (h) For purposes of this section, neither "fraud," "waste," nor "abuse" includes decisions on instruction, curriculum, personnel, or other discretionary policy decisions made by a school district, charter school, cooperative unit as defined by section 123A.24, subdivision 2, or any library, library system, or library district defined in section 134.001. deleted text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2025 Supplement, section 127A.21, subdivision 5, is amended to read:

Subd. 5.

Sanctions; appeal.

(a) This subdivision does not authorize any sanction that reduces, pauses, or otherwise interrupts state or federal aid to a school district, charter school, cooperative unit as defined by section 123A.24, subdivision 2, or any library, library system, or library district defined in section 134.001.

(b) The inspector general may recommend deleted text begin that deleted text end new text begin and new text end the commissioner new text begin may new text end impose appropriate deleted text begin temporary deleted text end sanctions deleted text begin , including withholding of payments under the department program, on a program participant pending an investigation by the Office of the Inspector General deleted text end if:

deleted text begin (1) during the course of an investigation, the Office of the Inspector General finds credible indicia of fraud, waste, or abuse by the program participant; deleted text end

deleted text begin (2) deleted text end new text begin (1) new text end there has been a criminal, civil, or administrative adjudication of fraud deleted text begin , waste, or abuse deleted text end new text begin or misuse new text end against the program participant in Minnesota or in another state or jurisdiction; new text begin or new text end

deleted text begin (3) the program participant was receiving funds under any contract or registered in any program administered by another Minnesota state agency, a government agency in another state, or a federal agency, and was excluded from that contract or program for reasons credibly indicating fraud, waste, or abuse by the program participant; or deleted text end

deleted text begin (4) deleted text end new text begin (2) new text end the new text begin inspector general has found that a new text end program participant has a new text begin demonstrated new text end pattern of noncompliance with an investigation.

(c) If deleted text begin an investigation finds deleted text end new text begin the commissioner determines new text end , by a preponderance of the evidence, new text begin based on an investigation conducted by the inspector general, that a program participant committed new text end fraud deleted text begin , waste, deleted text end or deleted text begin abuse deleted text end new text begin misuse new text end deleted text begin by a program participant deleted text end , the deleted text begin inspector general deleted text end new text begin commissioner new text end may, after reviewing all facts and evidence and when acting judiciously on a case-by-case basis, deleted text begin recommend that the commissioner deleted text end impose appropriate sanctions on the program participant.

(d) Unless prohibited by law, the commissioner has the authority to deleted text begin implement deleted text end new text begin take action based on findings or new text end recommendations by the inspector general, including imposing appropriate sanctions, temporarily or otherwise, on a program participant. Sanctions may include ending program participation, stopping disbursement of funds or resources, monetary recovery, and termination of department contracts with the participant for any current or future department program or contract. A sanction may be imposed for up to the longest period permitted by state or federal law. Sanctions authorized under this subdivision are in addition to other remedies and penalties available under law.

(e) If the commissioner imposes sanctions on a program participant under this subdivision, the commissioner must notify the participant in writing within seven business days of imposing the sanction, unless requested in writing by a law enforcement agency to temporarily delay issuing the notice to prevent disruption of an ongoing law enforcement agency investigation. A notice of sanction must state:

(1) the sanction being imposed;

(2) the general allegations that form the basis for the sanction;

(3) the duration of the sanction;

(4) the department programs to which the sanction applies; and

(5) how the program participant may appeal the sanction pursuant to paragraph (f).

(f) A program participant sanctioned under this subdivision may, within 30 days after the date the notice of sanction was mailed to the participant, appeal the determination by requesting in writing that the commissioner initiate a contested case proceeding under chapter 14. The scope of any contested case hearing is limited to the sanction imposed under this subdivision. An appeal request must specify with particularity each disputed item, the reason for the dispute, and must include the name and contact information of the person or entity that may be contacted regarding the appeal.

(g) The commissioner shall lift sanctions imposed under this subdivision if the deleted text begin Office of the deleted text end inspector general new text begin notifies the commissioner that the inspector general new text end determines there is insufficient evidence of fraud deleted text begin , waste, deleted text end or deleted text begin abuse deleted text end new text begin misuse new text end by the program participant. The commissioner must notify the participant in writing within seven business days of lifting the sanction.

Sec. 5.

Minnesota Statutes 2024, section 127A.21, is amended by adding a subdivision to read:

new text begin Subd. 8. new text end

new text begin Limits on receiving public funds; prohibition. new text end

new text begin (a) This subdivision does not authorize any action that reduces, pauses, or otherwise interrupts state or federal aid to a school district; charter school; cooperative unit as defined in section 123A.24, subdivision 2; or any library, library system, or library district defined in section 134.001. new text end

new text begin (b) For purposes of this subdivision, "program participant" includes individuals or persons who have an ownership interest in, control of, or the ability to control a program participant in a department program. new text end

new text begin (c) If a program participant is excluded from a department program, the commissioner may: new text end

new text begin (1) prohibit the excluded program participant from enrolling in, receiving grant money from, or registering in any other program administered by the commissioner; and new text end

new text begin (2) disenroll or disqualify the excluded program participant from any other program administered by the commissioner. new text end

new text begin (d) If a program participant enrolled, licensed, or receiving funds under any contract or program administered by a Minnesota state agency or federal agency is excluded from that program, the inspector general shall notify the commissioner, who may: new text end

new text begin (1) prohibit the excluded program participant from enrolling in, becoming licensed, receiving grant money from, or registering in any other program administered by the commissioner; and new text end

new text begin (2) disenroll or disqualify the excluded program participant from any other program administered by the commissioner. new text end

new text begin (e) The duration of a prohibition, disenrollment, revocation, suspension, or disqualification under paragraph (c) must last for the longest applicable sanction or disqualifying period in effect for the program participant permitted by state or federal law. The duration of a prohibition, disenrollment, revocation, suspension, or disqualification under paragraph (d) may last up until the longest applicable sanction or disqualifying period in effect for the program participant as permitted by state or federal law. new text end

Sec. 6.

Minnesota Statutes 2024, section 127A.21, is amended by adding a subdivision to read:

new text begin Subd. 9. new text end

new text begin Notice. new text end

new text begin Within five days of taking an action against a program participant under subdivision 8, paragraph (c) or (d), the commissioner must send notice of the action to the program participant. The notice must state the: new text end

new text begin (1) basis for the action; new text end

new text begin (2) effective date of the action; new text end

new text begin (3) right to appeal the action; and new text end

new text begin (4) requirements and procedures for reinstatement. new text end

Sec. 7.

Minnesota Statutes 2024, section 127A.21, is amended by adding a subdivision to read:

new text begin Subd. 10. new text end

new text begin Appeal. new text end

new text begin (a) Upon receipt of a notice under subdivision 9, a program participant may request a contested case hearing, as defined in section 14.02, subdivision 3, by filing with the commissioner a written request of appeal. The appeal request must be received by the commissioner no later than 30 days after the date the notification was mailed to the program participant. new text end

new text begin (b) The appeal request must specify: new text end

new text begin (1) each disputed item and the reason for the dispute; new text end

new text begin (2) the authority in statute or rule upon which the program participant relies for each disputed item; new text end

new text begin (3) the name and address of the person or entity with whom contacts may be made regarding the appeal; and new text end

new text begin (4) other information required by the commissioner. new text end

new text begin (c) Unless a timely and proper appeal is received by the commissioner, the action of the commissioner shall be considered final and binding on the effective date of the action as stated in the notice under subdivision 9, clause (2). new text end

Sec. 8.

Minnesota Statutes 2024, section 127A.21, is amended by adding a subdivision to read:

new text begin Subd. 11. new text end

new text begin Withholding of payments. new text end

new text begin (a) This subdivision does not authorize withholding of payments that reduces, pauses, or otherwise interrupts state or federal aid to a school district; charter school; cooperative unit as defined in section 123A.24, subdivision 2; or any library, library system, or library district defined in section 134.001. new text end

new text begin (b) Except as otherwise provided by state or federal law, the commissioner may withhold payments to a program participant in any program administered by the commissioner, to the extent permitted under federal law, if the inspector general determines there is a credible allegation of fraud or misuse in a pending investigation by the inspector general regarding a program administered by the department, a Minnesota state agency, or a federal agency. new text end

new text begin (c) Allegations are considered credible when they have indicia of reliability and the inspector general has reviewed the evidence and acts on a case-by-case basis. A credible allegation of fraud is an allegation that has been verified by the commissioner from any source, including but not limited to: new text end

new text begin (1) fraud hotline complaints; new text end

new text begin (2) claims data mining; and new text end

new text begin (3) patterns identified through provider audits, civil false claims cases, and investigations. new text end

new text begin (d) The commissioner must send notice of the withholding of payments within five days of taking such action. The notice must: new text end

new text begin (1) state that payments are being withheld according to this paragraph; new text end

new text begin (2) set forth the general allegations as to the reasons for the withholding action, but need not disclose any specific information concerning an ongoing investigation; new text end

new text begin (3) state that the withholding is for a temporary period and cite the circumstances under which withholding will be terminated; and new text end

new text begin (4) inform the program participant of the right to submit written evidence for consideration by the commissioner. new text end

new text begin (e) The withholding of payments shall not continue after the inspector general notifies the commissioner that there is insufficient evidence of fraud by the program participant or after legal proceedings relating to the alleged fraud are completed, unless the commissioner has sent notice under subdivision 5 of the intention to take an additional action related to the program participant's participation in a program administered by the commissioner. If the inspector general determines there is insufficient evidence of fraud by the program participant or after legal proceedings relating to the alleged fraud are completed, the inspector general shall notify the commissioner within ten days of the determination. new text end

new text begin (f) The withholding of payments is a temporary action and shall not be subject to appeal under this subdivision or chapter 14. new text end

Sec. 9.

Minnesota Statutes 2024, section 142A.03, is amended by adding a subdivision to read:

new text begin Subd. 36. new text end

new text begin Office of the Inspector General; reports. new text end

new text begin The commissioner must submit final investigative reports to the inspector general appointed under chapter 15E, for any investigation conducted by the commissioner into fraud or misuse, as defined in section 15E.15, within the child care assistance program. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 10.

Minnesota Statutes 2024, section 142A.12, subdivision 5, is amended to read:

Subd. 5.

Withholding of payments.

(a) Except as otherwise provided by state or federal law, the commissioner may withhold payments to a provider, vendor, individual, associated individual, or associated entity in any program administered by the commissioner if the commissioner determines there is a credible allegation of fraud for which an investigation is pending for a program administered by a Minnesota state or federal agency.

(b) For purposes of this subdivision, "credible allegation of fraud" means an allegation that has been verified by the commissioner from any source, including but not limited to:

(1) fraud hotline complaints;

(2) claims data mining;

(3) patterns identified through provider audits, civil false claims cases, and law enforcement investigations; deleted text begin and deleted text end

(4) court filings and other legal documents, including but not limited to police reports, complaints, indictments, informations, affidavits, declarations, and search warrants new text begin ; and new text end

new text begin (5) information from the inspector general, including information listed on the inspector general's exclusion list under section 15E.25, subdivision 1, clause (11) new text end .

(c) The commissioner must send notice of the withholding of payments within five days of taking such action. The notice must:

(1) state that payments are being withheld according to this subdivision;

(2) set forth the general allegations related to the withholding action, except the notice need not disclose specific information concerning an ongoing investigation;

(3) state that the withholding is for a temporary period and cite the circumstances under which the withholding will be terminated; and

(4) inform the provider, vendor, individual, associated individual, or associated entity of the right to submit written evidence to contest the withholding action for consideration by the commissioner.

(d) If the commissioner withholds payments under this subdivision, the provider, vendor, individual, associated individual, or associated entity has a right to request administrative reconsideration. A request for administrative reconsideration must be made in writing, state with specificity the reasons the payment withholding decision is in error, and include documents to support the request. Within 60 days from receipt of the request, the commissioner shall judiciously review allegations, facts, evidence available to the commissioner, and information submitted by the provider, vendor, individual, associated individual, or associated entity to determine whether the payment withholding should remain in place.

(e) The commissioner shall stop withholding payments if the commissioner determines there is insufficient evidence of fraud by the provider, vendor, individual, associated individual, or associated entity or when legal proceedings relating to the alleged fraud are completed, unless the commissioner has sent notice under subdivision 3 to the provider, vendor, individual, associated individual, or associated entity.

(f) The withholding of payments is a temporary action and is not subject to appeal under section 256.0451 or chapter 14.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 11.

Minnesota Statutes 2024, section 144.05, is amended by adding a subdivision to read:

new text begin Subd. 9. new text end

new text begin Office of the Inspector General; reports. new text end

new text begin The commissioner must submit final investigative reports to the inspector general appointed under chapter 15E for any investigation conducted by the commissioner into fraud or misuse, as defined in section 15E.15, within the special supplemental nutrition program for women, infants, and children. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 12.

Minnesota Statutes 2024, section 245.095, subdivision 5, is amended to read:

Subd. 5.

Withholding of payments.

(a) Except as otherwise provided by state or federal law, the commissioner may withhold payments to a provider, vendor, individual, associated individual, or associated entity in any program administered by the commissioner if the commissioner determines there is a credible allegation of fraud for which an investigation is pending for a program administered by a Minnesota state or federal agency.

(b) For purposes of this subdivision, "credible allegation of fraud" means an allegation that has been verified by the commissioner from any source, including but not limited to:

(1) fraud hotline complaints;

(2) claims data mining;

(3) patterns identified through provider audits, civil false claims cases, and law enforcement investigations; deleted text begin and deleted text end

(4) court filings and other legal documents, including but not limited to police reports, complaints, indictments, informations, affidavits, declarations, and search warrants new text begin ; and new text end

new text begin (5) information from the inspector general appointed under chapter 15E, including information listed on the inspector general's exclusion list under section 15E.25, subdivision 1, clause (11) new text end .

(c) The commissioner must send notice of the withholding of payments within five days of taking such action. The notice must:

(1) state that payments are being withheld according to this subdivision;

(2) set forth the general allegations related to the withholding action, except the notice need not disclose specific information concerning an ongoing investigation;

(3) state that the withholding is for a temporary period and cite the circumstances under which the withholding will be terminated; and

(4) inform the provider, vendor, individual, associated individual, or associated entity of the right to submit written evidence to contest the withholding action for consideration by the commissioner.

(d) If the commissioner withholds payments under this subdivision, the provider, vendor, individual, associated individual, or associated entity has a right to request administrative reconsideration. A request for administrative reconsideration must be made in writing, state with specificity the reasons the payment withholding decision is in error, and include documents to support the request. Within 60 days from receipt of the request, the commissioner shall judiciously review allegations, facts, evidence available to the commissioner, and information submitted by the provider, vendor, individual, associated individual, or associated entity to determine whether the payment withholding should remain in place.

(e) The commissioner shall stop withholding payments if the commissioner determines there is insufficient evidence of fraud by the provider, vendor, individual, associated individual, or associated entity or when legal proceedings relating to the alleged fraud are completed, unless the commissioner has sent notice under subdivision 3 to the provider, vendor, individual, associated individual, or associated entity.

(f) The withholding of payments is a temporary action and is not subject to appeal under section 256.045 or chapter 14.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 13.

Minnesota Statutes 2024, section 256.01, is amended by adding a subdivision to read:

new text begin Subd. 45. new text end

new text begin Office of the Inspector General; reports. new text end

new text begin The commissioner must submit final investigative reports to the inspector general, appointed under chapter 15E, for any investigation conducted by the commissioner into fraud or misuse, as defined in section 15E.15, within the Medicaid program. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 14.

Minnesota Statutes 2025 Supplement, section 626.84, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

For purposes of sections 626.84 to 626.863, the following terms have the meanings given:

(a) "Board" means the Board of Peace Officer Standards and Training.

(b) "Director" means the executive director of the board.

(c) "Peace officer" means:

(1) an employee or an elected or appointed official of a political subdivision or law enforcement agency who is licensed by the board, charged with the prevention and detection of crime and the enforcement of the general criminal laws of the state and who has the full power of arrest, and shall also include the Minnesota State Patrol, agents of the Division of Alcohol and Gambling Enforcement, state conservation officers, Metropolitan Transit police officers, Department of Corrections Fugitive Apprehension Unit officers, new text begin Office of the Inspector General Anti-Fraud and Waste Bureau officers, new text end the statewide coordinator of the Violent Crime Coordinating Council, and railroad peace officers as authorized by section 219.995 and United States Code, title 49, section 28101; and

(2) a peace officer who is employed by a law enforcement agency of a federally recognized tribe, as defined in United States Code, title 25, section 450b(e), and who is licensed by the board.

(d) "Part-time peace officer" means an individual licensed by the board whose services are utilized by law enforcement agencies no more than an average of 20 hours per week, not including time spent on call when no call to active duty is received, calculated on an annual basis, who has either full powers of arrest or authorization to carry a firearm while on active duty. The term shall apply even though the individual receives no compensation for time spent on active duty, and shall apply irrespective of the title conferred upon the individual by any law enforcement agency.

(e) "Reserve officer" means an individual whose services are utilized by a law enforcement agency to provide supplementary assistance at special events, traffic or crowd control, and administrative or clerical assistance, and shall include reserve deputies, special deputies, mounted or unmounted patrols, and all other employees or volunteers performing reserve officer functions. A reserve officer's duties do not include enforcement of the general criminal laws of the state, and the officer does not have full powers of arrest or authorization to carry a firearm on duty.

(f) "Law enforcement agency" means:

(1) a unit of state or local government that is authorized by law to grant full powers of arrest and to charge a person with the duties of preventing and detecting crime and enforcing the general criminal laws of the state;

(2) subject to the limitations in section 626.93, a law enforcement agency of a federally recognized tribe, as defined in United States Code, title 25, section 450b(e); and

(3) subject to the limitation of section 219.995, a railroad company.

(g) "Professional peace officer education" means a postsecondary degree program, or a nondegree program for persons who already have a college degree, that is offered by a college or university in Minnesota, designed for persons seeking licensure as a peace officer, and approved by the board.

(h) "Railroad peace officer" means an individual as authorized under United States Code, title 49, section 28101:

(1) employed by a railroad for the purpose of aiding and supplementing law enforcement agencies in the protection of property owned by or in the care, custody, or control of a railroad and to protect the persons and property of railroad passengers and employees; and

(2) licensed by the board.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 15.

new text begin EXISTING DUTIES ABOLISHED; TRANSFERS PROVIDED. new text end

new text begin Subdivision 1. new text end

new text begin Duties abolished. new text end

new text begin Except as exempted in article 1, section 17, subdivision 7, paragraph (c), duties pertaining to the investigation of fraud, misuse, and other unlawful use of public funds in the Office of the Inspector General in the Department of Education are abolished effective the day after the inspector general appointed under Minnesota Statutes, chapter 15E, certifies in writing to the commissioner of education and the commissioner of management and budget that the inspector general has assumed responsibility for these duties. new text end

new text begin Subd. 2. new text end

new text begin Inspector general transfers. new text end

new text begin When the commissioner of education's duties are abolished under subdivision 1, pursuant to Minnesota Statutes, section 15.039, all active investigations, obligations, court actions, contracts, and records shall transfer from the Department of Education to the inspector general appointed under Minnesota Statutes, chapter 15E, except as provided by the inspector general and as provided in article 1, section 17, subdivision 7, paragraph (c). new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 16.

new text begin REVISOR INSTRUCTION. new text end

new text begin In the 2026 edition of Minnesota Statutes, the revisor of statutes must retitle section 127A.21 from "OFFICE OF THE INSPECTOR GENERAL" to "SANCTIONS; OTHER POWERS." new text end

Sec. 17.

new text begin REPEALER. new text end

new text begin Minnesota Statutes 2024, sections 13.321, subdivision 12; and 127A.21, subdivisions 1, 2, 3, 4, 6, and 7, new text end new text begin are repealed. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the inspector general appointed under Minnesota Statutes, chapter 15E, notifies the revisor of statutes that the Office of the Inspector General under Minnesota Statutes, chapter 15E, has assumed responsibility for identifying and investigating fraud, misuse, and other unlawful use of public funds in the Department of Education. new text end

Presented to the governor May 12, 2026