Landmark Anti-Fraud OIG Bill Passes off of House Floor

St. Paul, Minn. – Today, the Minnesota House passed Rep. Matt Norris’s bipartisan Office of the Inspector General bill which will have a major impact on combatting fraud in Minnesota. SF 856, creates an independent Office of the Inspector General.

“When discussions around the creation of an OIG began, two things were clear: it would be a powerful tool to combat fraud in Minnesota, and it needed more work to accomplish its stated goals. Now, after more than a year of collaborative bipartisan work and taking our time to do this right, the bill we passed today is the strongest version of the OIG possible,” said Rep. Matt Norris (DFL - Blaine). “We’ve sharpened the OIG proposal to set up the office on stronger footing to help it succeed in its underlying mission – sussing out and squashing fraud. As I’ve made repeatedly clear, we should have zero tolerance for fraud. With this legislation that statement is no longer aspirational, but a reality.”

Rep. Norris is available for further comment. Please reach out to Thomas Olsen at thomas.olsen@house.mn.gov to coordinate conversations.

Some important aspects of the bill include:

• The OIG will be strongly independent:
  • A bipartisan group of legislators will vet potential candidates and forward recommendations to the Governor. However, constitutionally, the Governor will not be bound by the recommendations.
  • It is a five-year term intentionally desynchronized with the Governor.
  • Requires a supermajority vote in the Senate to be appointed.
  • The Inspector General can only be removed from office for cause, after a public hearing, and with the approval of the House and Senate.
  • Power to investigate any public or private entity that receives public funds.
• Will be charged with preventive duties:
  • OIG must establish program integrity standards and best practices for state agencies.
  • Facilitate information sharing between state agencies to identify suspicious data and alert other agencies when potential fraud is being committed against one agency.
• The OIG is set up to be transparent. It will publish reports upon completion of an investigation summarizing findings, recommendations, and outcomes of its activities. It will also submit an annual report summarizing its work to the Legislature and the public.
• This bill fully funds the office on day one.
• Includes a trial period of working with the BCA to investigate fraud. Future Legislature will determine if funding a separate OIG law enforcement bureau is necessary.

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