Focus on New Laws: Office of Inspector General Created

The new independent office will oversee fraud prevention efforts, investigate misuse of public funds, and review state programs, including those administered by local governments.

The Legislature created the Office of the Inspector General (OIG) in 2026 in response to increasing concerns over fraud and misuse in state government programs.

The OIG is an independent state executive branch entity responsible for ensuring accountability, transparency, and integrity in state run programs and the use of public funds. It will oversee agency-based inspectors general while operating independently from state agencies and reporting directly to the governor.

Establishing the OIG

Before the office can begin operations, the head inspector general must be appointed and operational standards established. The inspector general must be appointed by Feb. 1, 2027. The inspector general will serve a five-year term and may serve unlimited additional terms.

A bicameral commission will recommend candidates to the governor who will make the appointment decision. A three-fifths supermajority vote of the state Senate is required to confirm the appointment.

OIG responsibilities

In addition to investigating fraud in state programs, the inspector general must:

• Investigate private entities or local units of government administering a state program, as well as any private recipients of state funds or services, to ensure proper use of state funds.
• Establish standards and best practices for the operations, investigations, and fraud prevention processes of agency inspectors general, and periodically review agency compliance with those standards.
• Conduct inspections, evaluations, and investigations of agencies and programs, with a focus on recipients of public funds and publicly funded services.
• Refer matters for civil, criminal, or administrative action to state and federal law enforcement agencies and attorneys general offices.
• Recommend legislative or policy changes to improve program efficiency and effectiveness.

The OIG also must report on its work by:  

• Publishing reports on investigative findings, recommendations, and outcomes of inspector general activities.
• Submitting an annual summary of the office’s work to the Legislative Inspector General Advisory Commission and making it public.
• Maintaining a list of programs and individuals for which the inspector general has obtained a court order or recommended ceasing payments.

Investigative authority

If an investigation provides reasonable suspicion that fraud or misuse is occurring within an agency, the inspector general may seek a court order to freeze or stop the distribution of public funds.

The inspector general must create and maintain an exclusion list identifying each program and individual for which the inspector general has obtained a court order or made a recommendation to freeze or cease the distribution of funds.

The OIG’s law enforcement authority will be carried out through the Office of the Inspector General Anti-Fraud and Waste Bureau. A chief law enforcement officer must be appointed to manage the bureau’s activities and employees. Peace officers appointed to the bureau will conduct statewide investigations and make arrests for offenses within its jurisdiction.

The OIG may coordinate with state and local chief law enforcement officers to conduct criminal investigations. Officials and employees of the executive branch, political subdivisions, and any corporation or individual involved in receiving, disbursing, or holding public funds have a duty to aid and cooperate with the inspector general upon request.

What cities should know

The OIG must establish policies for coordinating investigations with other law enforcement agencies that have primary or concurrent jurisdiction over a matter, including city law enforcement. It must also facilitate information sharing between agencies.

The OIG is subject to the Minnesota Government Data Practices Act. Cities must make available to the OIG all data necessary to perform its investigative duties, regardless of classification. The OIG may also share the data with local law enforcement. Data shared with the OIG retains its original classification, such as public, private, confidential.

Following an investigation, the OIG must issue public reports on complete investigations and corrective actions.

Data related to a civil investigation is classified as confidential or protected nonpublic information while the investigation is active. Once an investigation is complete, the data becomes public unless disclosure would jeopardize another active investigation. The data may be used in litigation related to civil, criminal, or administrative actions, or another statute classifies the data as not public.

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