The bill establishes a new Chapter 9.4 in Title 42 of the General Laws, creating the Office of Inspector General in Rhode Island, which will operate as an independent administrative agency. This office is responsible for 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 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 relevant experience in accounting, auditing, financial analysis, law, management analysis, public administration, investigation, and criminal justice administration, as well as a bachelor's degree in a related field. It prohibits the Inspector General from holding other public offices or engaging in political activities during their term.

The bill modifies the authority and procedures related to subpoenas and investigations, granting the Inspector General access to all records and documents relevant to their investigations. It emphasizes the rights of witnesses, requiring reasonable subpoenas that are directly related to investigations. The Inspector General may issue subpoenas for the production of records and testimony, and any failure to comply may be punished as contempt of court.

Additionally, the bill transfers the appointment authority of the auditor general to the Inspector General, who will head a division within the Office of Inspector General. The auditor general will be responsible for conducting audits and preparing annual reports on fraud and waste. The bill also enhances the role of the chief of internal audit, requiring collaboration with the Inspector General and access to relevant records. Overall, the legislation aims to improve accountability and oversight in the management of public funds in Rhode Island.