Focused on fraud: lawmakers aim to snuff out state agency fraud

NINA MOINI: Now, over in the state senate, a committee will hear a bipartisan bill looking to create an office of inspector general, an agency that would be in charge of looking into fraud. The bill's author, DFL Senator Heather Gustafson, who serves the north Twin Cities metro, will be speaking in front of a committee in about 20 minutes. But she's taking some time to join us ahead of that hearing. Thanks for being here, senator.

HEATHER GUSTAFSON: Thanks for having me.

NINA MOINI: I'm curious about the role and the goal of having an office of the inspector general.

HEATHER GUSTAFSON: Yeah, I think what meets the moment-- as I listen to the coverage of what happened in the house today, I think that they're really addressing a lot of those things spot on. And I think what meets the moment is to have an independent oversight authority. And independence really is the key.

While we recognize the great work that the OLA has done and also several of new policies that were put in place in 2023 that addressed a lot of these issues, there is still a gap. And that's where we feel that a statewide office of inspector general would be able to perform duties that aren't otherwise in place in Minnesota to help us catch this early.

NINA MOINI: You mentioned the OLA. Just want to make sure, Office of Legislative Auditor, that people know that. Why now?

HEATHER GUSTAFSON: I think we've seen a concerning amount of fraud in the last few years. And I, just like everybody else, I'm also concerned. I don't think that this is a democrat or a republican issue.

This is something that everybody in Minnesota cares about. We all work hard for our money. And we don't mind paying taxes. But we want to make sure that those tax dollars are being used appropriately. And that's not the case. When we take a look at some of the fraud issues that have surfaced in the last few years, it's raised a lot of concerns.

So a year ago, as a first-term senator, I tried to take a look at what more can be done, especially on the proactive side. Keep a small problem small, prevent fraud from happening, and be a lot more proactive in our fight against this misuse of taxpayer dollars.

NINA MOINI: What do you think about some GOP members in the house think that the US Justice Department should actually come in and investigate Minnesota's fraud approach? Do you think that that's needed or helpful?

HEATHER GUSTAFSON: Anything that we do to address this is helpful. But what I would say is that we're able to act a lot faster if we have that here in our own state. We can work with federal agents, as we have. We can work with the attorney general. We can work with other systems. But to have that independent office is really key.

Our bill allows for two peace officers, who would be able to do investigations early. They'd be able to do proactive investigations into those dollars to make sure that things are happening early on. And we find out that everything is happening or going where it's supposed to go.

So all ideas are good. But we've been working really hard with members from both sides of the aisle to craft a really well-written piece of policy that addresses the concerns that many Minnesotans have.

NINA MOINI: And what do you say to constituents of Minnesotans who say, why has there been so much fraud and much of it occurring in recent years, at least under Governor Tim Walz and the Democrats having both the house and the senate?

HEATHER GUSTAFSON: I mean, I think bad actors are unfortunately always going to be out there to take advantage of state programs and people in general. I want to remind people that it isn't just taxpayers who feel angry about what's going on.

There are plenty of Minnesotans who have fallen victims to some of these people as well. An office of inspector general would really take a look at providers and recipients, something that the OLA, the legislative auditors, don't currently do. And so we'd be able to handle that better. But catching those bad actors early on, being a little bit more proactive and heavy-handed on the front end should send the message that Minnesota is no longer a target.

NINA MOINI: Before I let you go, senator, there are different proposals in the house and in the senate. How do you foresee people working together to narrow down what will be the best approach to tackling fraud?

HEATHER GUSTAFSON: I think a good example is what you're going to see here in the senate today. We are doing something that isn't usual. It isn't normal. We have two copresiding-- or two copresenters, one republican, one myself, who are going to be in the committee hearing on this bill today.

So I do want to thank my senator, coauthor, Senator Draheim, Senator Krueger, Senator Latz, and Senator Putnam. We have a truly bipartisan bill. That means that they are not just signing their name on the yellow jacket. They have been instrumental in the meetings to craft this language.

It has been highly vetted. The senate had a little bit of a head start than the house did, so we were able to vet a lot of this language and make sure that it is solid. It's going to go to about eight different committees, so we know there'll be changes along the way. But this is a really good bill. It's a good policy. And we have a clear path forward, we believe, to get this bill across the finish line.

NINA MOINI: Senator Gustafson, thank you for taking the time before committee. We'll let you go.

HEATHER GUSTAFSON: Thank you so much. Appreciate it.

NINA MOINI: That was DFL State Senator Heather Gustafson.