Office of Inspector General creation; appropriating money

SF 3447 creates an independent Office of Inspector General (OIG) in Minnesota to investigate fraud and misuse in state agencies and programs. The OIG will directly affect all state agencies, including departments like health, education, and transportation, by taking over oversight of fraud investigations currently handled by the legislative auditor. Key mechanisms include requiring the legislative auditor to refer fraud reports to the OIG, mandating the OIG operate independently (reporting directly to the chief administrative law judge), and appropriating funds for the new office. The bill defines "fraud" as intentional deception for unlawful benefit and "misuse" as improper use of authority for personal gain or harm to others. The OIG will begin operations January 1, 2026.