Minnesota fraud fighting: Inspector General office created, integrity bill finalized
Fighting fraud in MN remains top priority
Rooting out fraud in Minnesota was a top priority for lawmakers this year despite political differences. As the legislative session winds down, FOX 9’s Corin Hoggard has the details on what has been done.
ST. PAUL, Minn. (FOX 9) - Lawmakers are making fraud prevention a top priority this year, moving forward with new oversight offices and stricter rules for state programs.
Minnesota House approves new inspector general office
What we know:
The Minnesota House voted to create an independent Office of the Inspector General, with a strong show of support seen on the voting board. The new office will oversee all state departments, investigate fraud complaints and work to prevent fraud across Minnesota government.
Senators who passed a version of the inspector general bill last year helped negotiate the current proposal. The Senate is expected to vote on it Monday. The legislature will recommend candidates to lead the office, and the governor will appoint the inspector general next year. In the first few months, law enforcement duties will be handled by the Bureau of Criminal Apprehension.
"This isn't the end-all-be-all solution, but it is the most significant anti-fraud piece of legislation to pass in our generation," said Sen. Heather Gustafson, DFL-Vadnais Heights.
The inspector general plan is just one part of a broader anti-fraud push at the Capitol, as lawmakers look for ways to strengthen oversight and restore public trust.
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Senate finalizes program integrity bill with new rules for state services
Why you should care:
The Senate finalized a major program integrity bill Friday, aiming to stop fraud in high-risk state programs. The bill includes some emergency measures Gov. Walz put in place last year for 14 high-risk programs in the Department of Human Services. Some of these measures, like prepayment review, caused new problems as they tried to stop fraud.
"The governor put on a delay in payments last fall. And I recall that didn't go very smoothly. And I'm kind of curious on will we have that same impact here?" said Sen. Eric Pratt, R-Prior Lake.
"There are six people who died because it didn't go so well, so I'm very cautious about how we're doing this," said Sen. John Hoffman, DFL-Champlin.
The new rules would require the state to give service providers 60 days notice before their funding is flagged for prepayment review. The bill also calls for more in-person visits to verify people are getting the services taxpayers are paying for. It officially repeals the Housing Stabilization Services program, which the governor ended in October.
Lawmakers are still working through political differences
The program integrity bill and the inspector general plan are both moving forward, but they are not identical in the House and Senate. Lawmakers will need to work out their differences, and more debate is expected before final votes.
These measures are part of a larger effort to fight fraud, but some lawmakers warn about the risk of harming people who rely on state services if changes are not implemented carefully.
What we don't know:
The final language of the fraud prevention bills is still being negotiated, and it is unclear how differences between the House and Senate versions will be resolved. It is also not yet known who will be appointed as the first inspector general or how quickly the new office will start making an impact.