Hello from the State Capitol,
With only one week left in the 2026 legislative session, we are seeing dozens of bills a day on the House floor, and I expect that will continue until the legislature is required to adjourn next Sunday evening at 11:59 p.m., if not before.
OFFICE OF INSPECTOR GENERAL BILL APPROVED IN MINNESOTA HOUSE
The Minnesota House has taken a necessary step to crack down on fraud by passing legislation to create an independent Office of the Inspector General (OIG).
Under this bill, the independent OIG would be responsible for investigating state agencies, grant recipients, and contractors over fraud and related criminal conduct involving public funds. It will also have subpoena power and the authority to freeze or stop distribution of funds under court order and must refer suspected criminal activity to appropriate law enforcement agencies.
Roughly 15 U.S. states have a statewide Office of Inspector General with broad oversight over executive agencies. These offices are typically responsible for investigating waste, fraud, and abuse in state government.
Estimates suggest as much as $9 billion has been lost to fraud in Minnesota, with no serious effort by the Walz administration over the past eight years to stop it or hold anyone accountable. Creating a strong, independent OIG is a first step toward ending this nonsense, restoring accountability and protecting the taxpayers.
WALZ ADMINISTRATION CONTINUES TO DUCK FRAUD ACCOUNTABILITY BY DEMOTING DHS COMMISSIONER
This week, Governor Tim Walz abruptly withdrew his Department of Human Services commissioner nominee, Shireen Gandhi, one day before her Minnesota Senate confirmation hearing. This allowed her to avoid further scrutiny over fraud and mismanagement allegations. R
Rather than answering lawmakers’ questions, Gandhi was reassigned as deputy commissioner overseeing Medicaid programs that are already facing fraud concerns. Gandhi previously served as DHS Chief Compliance Officer during a period in which billions in taxpayer dollars were lost to fraud. She also led the agency on an interim basis when the Office of the Legislative Auditor uncovered misconduct within the Behavioral Health Administration, including evidence of fabricated records and coverups.
Here is yet another move where the Walz administration has ducked accountability, while taxpayers are left demanding transparency, consequences, and stronger oversight across state government.
GOVERNOR SIGNS QUESTIONABLE CRYPTOCURRENCY KIOSK BAN BILL
Governor Walz has signed into law legislation that will ban stand-alone cryptocurrency kiosks. A number of senior citizens in Minnesota have been extorted by scammers who convince them to send cryptocurrency through a kiosk, which is difficult to recover. The thought behind the legislation is, if you ban the kiosks, you stop the fraud.
I just think this is a lazy way to legislate. To be clear, I want to stop all fraud. But there are ways to regulate the cryptocurrency industry besides eliminating it altogether.
For example, we approved legislation recently that establishes a trusted person with bank accounts. If it appears a vulnerable person has withdrawn a large amount of money, the financial institution can reach out to a second contact – the listed trusted person – to ensure the transaction is legit. We also approved a consumer restitution account bill, which allows fraud victims to file claims with the Attorney General’s office to be compensated.
We’ve done a lot for consumer protection this session. This bill basically killed an industry.
If we had banned people from being able to put their cash into the kiosks, then elderly residents couldn’t be swindled in this scam. But if we allowed the kiosks to distribute money – much like an ATM – for people who wanted to withdraw funds from their digital wallets, we actually could have kept the industry alive in this state.
Again, I appreciate the intent behind stopping fraud. I just think it could have been done in a better way.
In liberty,
Drew