OIG Bill Passes out of House Ways and Means Committee, Moving to House Floor for a Vote

**Major Step Forward in Minnesota’s Fight Against Fraud**

Saint Paul, MN – In a key victory for those seeking state government accountability to prevent future fraud, the Office of the Inspector General (OIG) bill (SF856) passed out of the House Ways and Means Committee on April 29 and will now move to the House Floor for a vote. 

This bill will solve a glaring conflict of interest problem within the state government’s prosecutorial structure. Republicans in the House Fraud Prevention and State Agency Oversight Policy Committee have been sounding the alarm regarding Minnesota’s fraud epidemic. However, state agencies working under Governor Walz have done little to combat fraud, and it was uncovered in recent hearings that they were instructed by the Walz Administration to shut down their investigative units. Attorney General Ellison’s Office has also failed to meaningfully act upon these concerns.

This inaction by Governor Walz and Attorney General Ellison has led to widespread public belief that fraud was ignored for the sake of political expediency, and Minnesotans across the political spectrum have called upon the legislature to act.

The OIG bill will establish a new Office of the Inspector General that will be granted full investigative and prosecutorial powers to combat fraud. Candidates for the Inspector General position will be advanced by a two-thirds majority vote by the legislature. The legislature will put forward three candidates for consideration, and the Governor’s Office will then choose one out of the three nominees to serve in the role.

Those who serve in the Inspector General role will be completely independent from the Governor’s Office. In this way, Minnesotans’ confidence will be restored that their hard-earned tax dollars are being safeguarded by an apolitical entity that cannot be swayed by the partisan interests of the executive branch.

The final OIG bill (SF856) is the culmination of work done by Rep. Patti Anderson (R-Dellwood), Sen. Heather Gustafson (D-Vadnais Heights), Sen. Michael Kreun (R-Blaine), Rep. Matt Norris (D-Blaine), and others. Together in their working group, the legislators took language from HF1 — a Republican bill chief-authored by Rep. Anderson during the 2025 Legislative Session — and merged it with language from Sen. Gustafson’s Democrat bill, to create a single, bipartisan, bicameral bill that all could support.

A version of the OIG bill passed the Senate last year with an impressive 60-7 display of bipartisan support. However, it failed in the House earlier this year when House Democrats voted against it in the State Government Finance and Policy Committee. After minor adjustments, some House Democrats are now in support of the bill, and it has steadily progressed through committees.

Given the GOP/DFL tie in the House and the DFL single-seat majority in the Senate, the OIG bill is an example of successful cooperation and negotiation during a time of heightened political polarization. 

The OIG bill is expected to pass on the House Floor next week. It will then move to the Senate, which is likely to concur with the minor House changes, as they have already expressed their support. From there, the OIG bill will be delivered to Governor Walz, who faces immense political pressure to sign it into law.