Minnesota Senate Passes Bill Creating Statewide Office of Inspector General to Combat Fraud

The Minnesota Senate has passed bipartisan legislation to establish a new independent Office of Inspector General aimed at combating fraud in state agencies and programs, particularly in response to pandemic-era scams such as the Feeding Our Future scandal. The office would have subpoena power, law enforcement capabilities, and the authority to investigate any entity receiving state funds, with the ability to halt payments when fraud is suspected. Funding requests for the office are approximately $8.9 to $11 million to support its startup and ongoing operations. Appointment of the inspector general would involve a bipartisan commission with Senate approval, and the office would maintain a tip line for anonymous fraud reports. Despite broad legislative support, some state agencies have raised concerns about coordination with federal rules, especially regarding Medicaid fraud investigations, and have requested proper funding to ensure effective operation. Governor Tim Walz has expressed cautious support for anti-fraud efforts but has not fully endorsed the Senate bill, and the bill's final passage and gubernatorial approval remain uncertain.