The bill establishes a new chapter, CHAPTER 9.4, in Title 42 of the General Laws, creating an independent Office of Inspector General in Rhode Island. This office is charged with the responsibility to prevent and detect fraud, waste, abuse, and mismanagement in the expenditure of public funds across all state programs and operations, including those involving federal, state, and local funds. The Inspector General will be appointed for a five-year term by a majority vote of the governor, attorney general, and general treasurer, with a limit of two terms. The bill outlines qualifications for the Inspector General, including at least five years of relevant experience and a bachelor's degree in a related field, and mandates a public forum during the selection process.

The bill details the powers of the Inspector General, including the authority to conduct audits, investigations, and oversight reviews, issue subpoenas for documents and testimony, and maintain a system for public communication regarding potential wrongdoing. It also allows the Inspector General to coordinate with other state agencies and requires the office to report findings to the attorney general or United States Attorney when there are reasonable grounds to believe a violation of law has occurred.

Additionally, the bill amends existing laws related to the auditor general and internal audit functions, merging the Auditor General into the Office of Inspector General and transferring certain responsibilities. It emphasizes the importance of safeguarding government computer systems and allows for the establishment of divisions within the Office of Inspector General to improve operational efficiency. Key provisions include ensuring that subpoenas are reasonable and directly related to investigations, informing witnesses of their rights, and protecting the confidentiality of individuals who report wrongdoing. The bill aims to enhance accountability and transparency in public financial management while safeguarding individuals' rights during investigations.