Legislators on both side of the aisle in the Minnesota House appear to support the creation of an Office of Inspector General to “investigate and combat fraud, waste, and abuse in state government.” Republicans and Democrats differ, however, on which branch of government would oversee the new post.
Last week, the House State Government Finance and Policy Committee voted to recommend approval of a bill to create an Office of Inspector General that would be overseen by the bipartisan Legislative Audit Commission. The bill, a top priority for the House Republicans, has since advanced through multiple other committees.
The newly-established OIG would embed staff within seven state agencies, develop and maintain a fraud reporting website and hotline, conduct investigations, and report suspected fraud to law enforcement, according to language of the bill.
Rep. Patti Anderson, R-Dellwood, is carrying HF1 and told her colleagues in a hearing that housing the position in the legislative branch would ensure it functions in a nonpartisan capacity. Sen. Mark Koran, R-North Branch, is the chief author of companion legislation in the Senate, which has yet to receive a hearing.
“What we want is we want this to be a non-partisan, non-political office that has authority and autonomy so they can actually do their job without threats from anyone or any angle, and that’s what this bill proposes to do,” Anderson, who served as state auditor from 2003 to 2007, said during the Feb. 18 hearing. “Over half a billion dollars’ worth of fraud is already being prosecuted … and we expect there is going to be a lot more that is coming out.”
That vision differs from a plan Gov. Tim Walz announced last month to combat fraud in state programs that vests more power to investigate such incidents of fraud with the Bureau of Criminal Apprehension, which is controlled by the executive branch.
The bill passed on a divided voice vote after DFL legislators in the committee criticized the bill for its lack of fiscal notes and questioned whether the Legislative Audit Commission is the proper place for an Office of Inspector General.
“If we try to set this up using the Legislative Audit Commission, we are really setting up a shadow executive,” said Rep. Ginny Klevorn, DFL-Plymouth.
Erin Campbell, Gov. Walz’s commissioner of Minnesota Management and Budget, also expressed opposition to the bill. In written testimony on the legislation, she said no other state has an inspector general tasked with executive branch oversight that is appointed by a legislative entity. She said this would be an “inappropriate legislative role in executive function.”
Bill would require state agency employees to report suspected fraud
The House State Government Finance and Policy Committee also voted to recommended approval for another bill, HF2, along party lines, that would require state agency staff to immediately report suspected fraud to their supervisor or the legislative auditor.
Rep. Ben Davis, R-Merrifield, is carrying the legislation that would also require state agencies to prominently post organizational charts on their websites and modify various state grantmaking requirements that are administered or enforced within the executive branch by the Office of Grants Management within the Department of Administration.
Hank Long
Hank Long is a journalism and communications professional whose writing career includes coverage of the Minnesota legislature, city and county governments and the commercial real estate industry. Hank received his undergraduate degree at the University of Minnesota, where he studied journalism, and his law degree at the University of St. Thomas. The Minnesota native lives in the Twin Cities with his wife and four children. His dream is to be around when the Vikings win the Super Bowl.
