MN SF856

Creates an independent Office of the Inspector General within the executive branch, effective January 1, 2026, to investigate fraud and misuse of public funds across all state agency programs, with authority to issue subpoenas, seek court orders to freeze funds, and refer matters for civil or criminal action

Establishes the Inspector General as a governor-appointed position requiring Senate confirmation by three-fifths vote, with candidates recommended by an 8-member Legislative Inspector General Advisory Commission; appointees must have 10+ years of relevant experience and professional certification from the Association of Inspectors General

Authorizes the Inspector General to establish a law enforcement bureau (Office of the Inspector General Anti-Fraud and Waste Bureau) with peace officers who have statewide arrest authority for fraud-related offenses

Preserves primary investigative authority for the Department of Human Services (Medicaid fraud), Department of Children, Youth, and Families (child care assistance fraud), and Department of Health (WIC and food support fraud), while granting the Inspector General concurrent and independent investigation authority

Appropriates $644,000 in FY2026 and $430,000 in FY2027 for establishment costs, plus $3,034,000 in FY2026 and $4,432,000 in FY2027 for ongoing operations, with a base of approximately $4.4 million annually thereafter