On May 8, the Senate DFL announced:
The Minnesota Senate passed bipartisan legislation creating an independent Office of the Inspector General Thursday, establishing a new state office to protect public money in Minnesota from bad actors and criminals seeking to defraud state agencies and programs.
“One of the most important responsibilities of state government is protecting the taxpayer dollar. That’s why it’s time we create an independent watchdog for Minnesotans that will identify and investigate potential fraud,” said Senator Heather Gustafson (DFL-Vadnais Heights), who chief authored the bill. “This Office of the Inspector General is a practical solution to ensure accountability, transparency, and fiscal responsibility in state government.”
The bill, passed Thursday in a bipartisan vote of 60 to 7, has made 11 committee stops since being first introduced. At almost every committee hearing, the bill was co-presented by Senator Michael Kreun (R-Blaine) who served as the lead Republican co-author on the proposal.
“Minnesotans have paid far too much due to years of unaddressed waste, fraud, and abuse. They are tired of this being a constant issue, and they expect us to get this situation under control – today’s bill will create an office with the sole purpose of stopping fraud and waste before they can begin,” said Sen. Kreun. “Our role as legislators is to protect taxpayer dollars, utilize that funding responsibly, and prevent waste, fraud, and abuse from occurring. This bill takes a step towards restoring trust that Minnesotans should have in their leaders. Families deserve to know we are taking all fraud allegations seriously, and we are doing our part to mitigate future instances of waste, fraud, and abuse.”
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 to make a appointment to the position of Inspector General. This appointment must be confirmed by a three fifths vote in the Senate.
The announcement concluded:
The bill now awaits action in the House of Representatives.
There was no action. As WCCO reported on May 22:
Establishing an Office of Inspector General (OIG) is not part of the budget framework that will set the parameters of what the Legislature will pass in the looming special session, [former DFL House Speaker Emerita Melissa Hortman] explained, citing the $18 million cost over four years at a time when lawmakers are trying to stave off a $6 billion deficit in the future.
“It is dead,” Hortman said.
As I argued in July:
With our Scandal Tracker now up to $661.6 million for the period 2019 to 2025 — or $110.3 million annually — begrudging the $4.5 million a year it would cost to run the OIG looks like a classic example of being penny-wise and pound-foolish.
With fraud in the headlines again, Speaker of the House Lisa Demuth (R) tweeted on Saturday:
Sen. Gustafson was assigned the task of deflecting from the House DFL’s responsibility for the failure of the OIG bill, tweeting, somewhat halfheartedly, two days later:
As an explanation for why the bill received DFL support in the Senate but not the House, this makes no sense whatsoever, but it is not intended to explain, only to distract.
Another explanation came from Rep. Patti Anderson (R):
This rumor — that the House DFL squashed the OIG bill on Gov. Walz’ orders — has been circulating widely at the capitol since May. Our state’s newshounds have, no doubt, heard it too. Minnesota’s journalists should ask the governor straight out: Is this true?
