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 is granted the authority to conduct audits, criminal, civil, and administrative investigations, and oversight reviews, with access to all relevant records and the ability to issue subpoenas for documents and testimony.

The bill emphasizes the confidentiality of the Office of Inspector General's records, stating that they shall not be public records unless necessary for the performance of the office's duties. It includes provisions for reporting findings to the attorney general or the United States attorney in cases of suspected violations of federal or state criminal law. The act also highlights the protection of whistleblowers under the Rhode Island whistleblowers' protection act and establishes penalties for violations of confidentiality and improper subpoena practices.

The Office of Inspector General is required to prepare an annual report summarizing its activities, which will be made available to the public, while ensuring that the identities of individuals involved in investigations remain confidential unless disclosure is necessary. The act will take effect upon passage.