The bill amends Chapter 37-2 of the General Laws by adding a new section titled "Review of contracted services." It requires the director of any state agency with contracted service expenditures exceeding five million dollars ($5,000,000) to conduct an annual review of all contracted services spending, starting July 1, 2027. The purpose of this review is to identify areas where reductions in contracted spending can be made.

Furthermore, the bill mandates that any department with contracted spending over five million dollars must achieve a two percent (2%) reduction in these expenditures within a five-year period, commencing in the fiscal year 2027-2028. The act will take effect upon passage.