The bill establishes a new chapter, CHAPTER 9.4, in Title 42 of the General Laws, creating the Office of Inspector General in Rhode Island. This independent administrative agency is tasked with preventing and detecting fraud, waste, abuse, and mismanagement in the expenditure of public funds, whether federal, state, or local, across all state programs and operations. The bill defines key terms such as "construction," "contract," "contractor," "procurement," "public funds," "services," and "supplies."

The appointment process for the inspector general is outlined, specifying that the inspector general will be appointed by a majority vote of the governor, attorney general, and general treasurer for a five-year term, without regard to political affiliation. The inspector general will have the authority to conduct audits, criminal, civil, and administrative investigations, and oversight reviews, and will have access to all relevant records and documents maintained by public bodies. The inspector general may issue subpoenas for the production of records and testimony related to investigations.

The bill includes provisions for the confidentiality of records, stating that all records of the office shall be confidential unless disclosure is necessary for the performance of duties. Violations of confidentiality provisions may result in imprisonment for up to six months or fines up to $1,000. Witnesses subpoenaed for testimony must receive at least 48 hours' notice and be informed of their rights, including the right to consult with an attorney.

The inspector general is required to report findings to the attorney general or U.S. attorney when there are reasonable grounds to believe a violation of federal or state criminal law has occurred. Additionally, the office must prepare an annual report summarizing its activities, which will be made public, while protecting the identities of individuals involved in ongoing investigations.