Minnesota House Passes Landmark Anti-Fraud Legislation

(KNSI) — What lawmakers are calling the most significant anti-fraud legislation to date, the bill creating the Office of Inspector General, passed the House floor vote by a wide bipartisan margin.

The legislation passed 127-5 and creates a brand new independent watchdog agency with sweeping authority to investigate fraud, and establishes a Legislative Inspector General Advisory Commission to select candidates to lead the agency, in an effort to keep it free from political influence.

The eight-member commission will include two Republican and two Democratic members from both the House and Senate. A candidate must earn approval from five of the eight commissioners to receive a recommendation. The governor would then appoint one of the approved candidates, and a three-fifths vote in the Senate would be required to confirm the nominee for a five-year term.

The office would be fully operational by September 1st, 2027, at a cost of $7.29 million in Fiscal Year 2027, before a combined $23.01 million would be needed in the 2028-29 biennium.

Starting January 1st, 2028, the office would have the authority to appoint licensed police officers and to establish a law enforcement agency, the Inspector General Anti-Fraud and Waste Bureau, to conduct statewide investigations and make arrests. Until then, the Minnesota Bureau of Criminal Apprehension Financial Crimes and Fraud Section is in charge.

The Senate passed its version last year.

___