The Minnesota Senate on Thursday passed bipartisan legislation creating an independent Office of the Inspector General, establishing a new state office to protect public money in Minnesota from bad actors and criminals seeking to defraud state agencies and programs.

“Minnesota has seen firsthand what happens when fraud goes unchecked,” Senator Carla Nelson (R-Rochester) said. “The Feeding Our Future scandal, Medicaid fraud, and the abuse of frontline worker pay programs have exposed serious gaps in oversight and accountability. Even the former U.S. Attorney, Andy Luger, said Minnesota has a fraud problem. This new, independent office is a critical step toward restoring public trust and making sure tax dollars go to people who need it, not into the pockets of fraudsters.”

The bill, which passed with a bipartisan vote of 60 to 7, has made 11 committee stops since being first introduced, indicating the amount of work and compromise that has gone into the bill.

The responsibilities of this new Independent Office of the Inspector General would include conducting investigations into any entities that receive state dollars, public or private if there is a reasonable suspicion of fraud. The office would be authorized to issue subpoenas, refer matters for civil, criminal, or administrative action, recommend legislative or policy changes, and issue public reports. A new Legislative Inspector General Advisory Commission would recommend candidates to the governor, who would then make an appointment to the position of Inspector General. This appointment must be confirmed by a three-fifths vote in the Senate.

Throughout the committee process and during debate on the Senate Floor, a number of amendments were added to ensure that the new Office of the Inspector General complies with duties and responsibilities of existing Inspectors General required by federal law.

Senator Nelson has long led efforts to strengthen oversight, accountability, and transparency of Minnesota’s public programs. In both 2023 and 2024, she authored amendments requiring state agencies to perform risk assessments and track the effectiveness of large taxpayer-funded grants. She also pushed for stronger guardrails in the wake of the Feeding Our Future scandal and the recent legislative audit showing widespread fraud in the frontline worker pay program.

The bill now awaits action in the House of Representatives.