Senate committee advances bill to create independent state inspector general, debates data‑privacy rules for abandoned probes

A bipartisan Senate committee on Monday advanced legislation to create an independent Office of the Inspector General to investigate fraud, waste and abuse across state government, while delaying a final decision on how much investigative information should become public when probes are abandoned.

Senate File 856, sponsored by Sen. Ann (Senator) Gustafson, directs the creation of a centralized, nonpartisan inspector general’s office to investigate alleged misuse of public funds and to refer criminal or civil matters to the Bureau of Criminal Apprehension (BCA) or the attorney general as appropriate. “The bill establishes an independent office of the inspector general to strengthen accountability, transparency, and oversight across state government,” Gustafson told the Senate Judiciary and Public Safety Committee.

The committee unanimously or by voice vote adopted the chief authors’ A19 amendment before moving the bill forward. The A19 amendment makes multiple technical and policy changes, including clarifying the office’s placement under judicial authority, revising statutory definitions of fraud and waste to align with pending whistleblower‑related language, replacing a requirement that the office employ licensed peace officers with language allowing experienced investigators, and excluding certain Department of Corrections positions from mandatory transfer into the new agency.

Why it matters

The proposal would centralize investigative authority on allegations of fraud, waste and abuse under a single entity separate from the agencies it would review. Authors said the centralization is intended to increase public trust in state government and ensure consistent investigative standards. Committee discussion focused on the bill’s data‑classification rules — specifically, what investigative information becomes public after an inquiry is closed, completed or abandoned.

Key committee discussion and testimony

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