The bill establishes a new chapter, CHAPTER 9.4, in Title 42 of the General Laws, creating the Office of Inspector General as an independent administrative agency. This office is tasked with preventing and detecting fraud, waste, abuse, and mismanagement in the expenditure of public funds across all state programs and operations, including procurement activities by state agencies and local governments. The Inspector General will be appointed for a five-year term by a majority vote of the governor, attorney general, and general treasurer, with specific qualifications required for the role, including experience in accounting, auditing, financial analysis, law, management analysis, public administration, investigation, and criminal justice administration.

The bill grants the Inspector General broad authority to conduct audits, criminal, civil, and administrative investigations, and oversight reviews. This includes the power to issue subpoenas for documents and testimony, ensuring access to all records and information necessary for investigations. The Inspector General is also required to establish an anonymous hotline for reporting possible wrongdoings and must maintain confidentiality for individuals who request it.

Additionally, the bill amends existing laws related to the Auditor General by transferring oversight and appointment authority to the Inspector General, who will oversee the auditor's operations. The Auditor General will now operate as a division within the Office of Inspector General. The bill also repeals the existing Chapter 35-7.1, replacing it with updated provisions for the Office of Internal Audit and Program Integrity, which will now function under the new Office of Inspector General. Overall, the legislation aims to enhance accountability and transparency in the management of public funds through improved oversight and coordination among state agencies.