The bill establishes Chapter 9.4 in Title 42 of the General Laws, creating the Office of Inspector General in Rhode Island as an independent administrative agency. This office is charged with preventing and detecting fraud, waste, abuse, and mismanagement in the expenditure of public funds across federal, state, and local programs, as well as in the procurement of supplies, services, or construction by various state entities.

The Inspector General will be appointed for a five-year term by a coalition of state officials, including the governor, attorney general, general treasurer, lieutenant governor, secretary of state, speaker and minority leader of the house of representatives, and president and minority leader of the senate. The appointee must possess relevant experience in areas such as accounting, auditing, financial analysis, law, management analysis, public administration, investigation, and criminal justice administration.

The bill outlines the Inspector General's powers, which include conducting audits, criminal, civil, and administrative investigations, and inspections. The Inspector General has the authority to issue subpoenas for the production of records and testimony related to investigations.

Additionally, the legislation details the appointment and removal processes for the Inspector General and their staff, ensuring they remain politically neutral during their tenure. The Inspector General may appoint and remove employees as necessary and must file an annual personnel report with the legislative finance committees.

The bill emphasizes transparency by requiring the Inspector General to prepare annual reports summarizing the office's activities, including significant problems related to fraud, waste, and abuse, and recommendations for corrective action. These reports will be made available to the public, while protecting the identities of individuals who report misconduct through an anonymous hotline.

The Inspector General is also authorized to report any violations of federal or state criminal law to the attorney general or United States Attorney and may initiate civil recovery actions with the attorney general's approval.