1.1.................... moves to amend S.F. No. 856, the third unofficial engrossment, as follows:
1.2Page 8, line 27, before "or" insert "the United States Department of Justice for federal
1.3programs,"
1.4Page 10, after line 7, insert:
1.5"(j) When issuing findings or recommending sanctions with respect to an investigation
1.6concerning a program administered by the Department of Education, the inspector general
1.7must consider the commissioner of education's authority to impose sanctions and related
1.8requirements under section 127A.21. The inspector general must not investigate policy
1.9decisions on instruction, curriculum, personnel, or other discretionary policy decisions made
1.10by a school district; charter school; cooperative unit as defined by section 123A.24,
1.11subdivision 2; or any library, library system, or library district defined in section 134.001."
1.12Page 11, line 8, after "629.34" insert "for offenses that are within the bureau's jurisdiction"
1.13Page 11, delete lines 9 to 22 and insert:
1.14    "Subd. 2. Jurisdiction. (a) As used in this subdivision:
1.15(1) "law enforcement agency" has the meaning given in section 626.84, subdivision 1,
1.16paragraph (f);
1.17(2) "public employee" means a person employed by or acting for an agency or a county,
1.18municipality, or other subdivision or governmental instrumentality of the state for the
1.19purpose of exercising their respective powers and performing their respective duties, and
1.20who is not a public officer. Public employee includes a member of a charter commission;
1.21and
1.22(3) "public officer" has the meaning given in section 609.415, subdivision 1, clause (1),
1.23paragraphs (a), (d), (e), and (f), and also includes a member of a governing board of a county,
2.1municipality, or other subdivision of the state, or other governmental instrumentality within
2.2the state.
2.3(b) The Office of the Inspector General Anti-Fraud and Waste Bureau has jurisdiction
2.4to initiate inquiries and conduct investigations into suspected fraudulent activity, misuse,
2.5or criminal misconduct involving:
2.6(1) a state agency;
2.7(2) a public officer exercising official powers or performing official duties;
2.8(3) a public employee;
2.9(4) a program or service funded or administered by the state;
2.10(5) a public assistance benefit; or
2.11(6) public funds.
2.12(c) At the inspector general's discretion, the bureau may respond to the request of a law
2.13enforcement agency to exercise law enforcement duties in cooperation with the law
2.14enforcement agency that has jurisdiction over the particular matter.
2.15    Subd. 3. Coordination with other law enforcement agencies. (a) The bureau must
2.16develop policies for notifying, coordinating with, and referring investigations to other law
2.17enforcement agencies with concurrent jurisdiction.
2.18(b) The Department of Human Services and the state Medicaid Fraud Control Unit have
2.19primary responsibility to investigate suspected fraudulent activity in the Medicaid program.
2.20The bureau may work with the Department of Human Services, the state Medicaid Fraud
2.21Control Unit, the Financial Crimes and Fraud Section of the Bureau of Criminal
2.22Apprehension, and other state agencies and law enforcement agencies in cases involving
2.23suspected fraudulent activity in the Medicaid program. The bureau also has authority to
2.24conduct independent investigations into suspected fraudulent activity in the Medicaid
2.25program.
2.26(c) If the bureau arrests a person, the bureau must notify the law enforcement agency
2.27with jurisdiction over the location where the offense occurred and, if different, the law
2.28enforcement agency with jurisdiction over the location where the arrest took place. The
2.29bureau is responsible for issuing any citations, filing any required reports, and delivering
2.30an arrested person to a county jail or other appropriate facility unless the bureau and a law
2.31enforcement agency with concurrent jurisdiction enter an agreement under which the other
2.32law enforcement agency acts as the lead agency.
3.1(d) Following an arrest made by the bureau, the bureau is responsible for any subsequent
3.2investigation unless:
3.3(1) the bureau is responding to a law enforcement agency's request to exercise its duties
3.4in cooperation with the law enforcement agency that has jurisdiction over the particular
3.5matter; or
3.6(2) the bureau and a law enforcement agency with concurrent jurisdiction enter an
3.7agreement under which the other law enforcement agency acts as the lead agency."
3.8Page 12, delete subdivision 5 and insert:
3.9    "Subd. 6. Compliance. Except as otherwise provided in this section, the bureau shall
3.10comply with all statutes and administrative rules relating to the operation and management
3.11of a law enforcement agency.
3.12    Subd. 7. Powers and duties; limitations. Powers and duties for civil or administrative
3.13enforcement provided to the inspector general or the Office of the Inspector General under
3.14this chapter do not apply to the bureau. The inspector general must not delegate the auxiliary
3.15powers described in section 15E.30, such as the power to issue subpoenas, perform
3.16inspections without a warrant, and impose penalties, to the bureau and must not exercise
3.17those auxiliary powers at the direction of the bureau. Nothing in this subdivision prohibits:
3.18(1) the inspector general from disseminating data to the bureau if there is reason to
3.19believe that the data are evidence of criminal activity within the bureau's jurisdiction; or
3.20(2) the bureau from referring a matter to the inspector general for appropriate regulatory
3.21investigation."
3.22Page 12, delete lines 11 to 28 and insert:
3.23    "Subd. 9. Annual report on activities and cost-effectiveness. By February 1 of each
3.24year, the chief law enforcement officer of the bureau shall report to the governor, inspector
3.25general, and the chairs and ranking minority members of the legislative committees with
3.26jurisdiction over state government policy and finance, and public safety policy and finance,
3.27on the activities and cost-effectiveness of the bureau since the previous report, including
3.28but not limited to:
3.29(1) the number of allegations or reports of suspected violations provided to the bureau;
3.30(2) the number of investigations initiated by the bureau;
3.31(3) the outcomes and current status of each investigation;
4.1(4) the charging decisions made by the prosecuting authority of incidents investigated
4.2by the bureau;
4.3(5) the amount of restitution ordered in cases investigated by the bureau; and
4.4(6) the amount of money recovered by the bureau through restitution payments, asset
4.5forfeiture, or other means and the distribution of that money.
4.6    Subd. 10. Assignment of peace officers; employment status. (a) Regardless of whether
4.7the inspector general establishes a law enforcement agency under this section, the inspector
4.8general may enter into memoranda of understanding with chief law enforcement officers
4.9of state and local law enforcement agencies to assign peace officers as defined in section
4.10626.84, subdivision 1, paragraph (c), to the Office of Inspector General or to a
4.11multijurisdictional task force coordinated by the Office of Inspector General. Peace officers
4.12assigned to the Office of Inspector General or a multijurisdictional task force under this
4.13subdivision have statewide jurisdiction to conduct criminal investigations into matters
4.14described in subdivision 2 and have the same powers of arrest as those possessed by a
4.15sheriff.
4.16(b) Peace officers assigned to the Office of Inspector General or a multijurisdictional
4.17task force under this subdivision remain employees of the same entity that employed them
4.18before the assignment authorized under this section. Those officers are not employees of
4.19the Office of Inspector General.
4.20(c) Peace officers assigned to the Office of Inspector General or a multijurisdictional
4.21task force under this subdivision are subject to annual performance reviews conducted by
4.22the inspector general or an operational supervisor designated by the inspector general."
4.23Renumber the subdivisions in sequence
4.24Page 18, line 31, delete "and" and insert "or"
4.25Page 19, line 23, delete "6" and insert "7"
4.26Page 20, line 13, after "changes" insert "affecting or relating"
4.27Page 20, line 33, delete "6" and insert "7"
4.28Page 22, line 31, after "employees" insert ", including but not limited to all employees
4.29transferred from the Department of Education,"
4.30Page 23, line 25, delete "$8,070,000" and insert "$5,852,000" and delete "$8,070,000"
4.31and insert "$5,852,000"
4.32Page 26, line 15, strike "that" and insert "and" and after "commissioner" insert "may"
5.1Page 26, line 27, after "the" insert "inspector general has found that a" and before
5.2"pattern" insert "demonstrated"
5.3Page 26, line 28, strike "an investigation finds" and insert "the commissioner determines"
5.4and after "evidence," insert "based on an investigation conducted by the inspector general,
5.5that a program participant committed"
5.6Page 26, line 29, strike "by a program participant" and strike "inspector general" and
5.7insert "commissioner"
5.8Page 26, line 30, strike "recommend that the"
5.9Page 26, line 31, strike "commissioner"
5.10Page 27, line 1, strike "implement" and insert "take action based on findings or"
5.11Page 30, line 3, delete "inspector general shall"
5.12Page 30, line 4, delete "notify and recommend to the commissioner to" and insert
5.13"commissioner may"
5.14Page 30, line 5, delete "who shall have the authority to withhold"
5.15Page 30, line 6, delete "such payments"
5.16Page 30, line 7, delete "for which an investigation is pending for" and insert "in"
5.17Page 30, line 8, before "program" insert "pending investigation by the inspector general
5.18regarding a"
5.19Page 30, line 25, delete "determines" and insert "notifies the commissioner that"
5.20Page 36, after line 20, insert:

5.21    "Sec. 16. REVISOR INSTRUCTION.
5.22In the 2026 edition of Minnesota Statutes, the revisor of statutes must retitle section
5.23127A.21 from "OFFICE OF THE INSPECTOR GENERAL" to "SANCTIONS; OTHER
5.24POWERS.""
5.25Renumber the sections in sequence and correct the internal references
5.26Amend the title as follows:
5.27Page 1, line 3, delete "committee" and insert "commission"