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 responsible for preventing and detecting fraud, waste, abuse, and mismanagement in the expenditure of public funds across federal, state, and local programs. 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 position, including experience in accounting, auditing, financial analysis, law, management analysis, public administration, investigation, and criminal justice administration.

The bill outlines the appointment process, removal procedures, and the powers of the Inspector General, which include conducting audits, criminal, civil, and administrative investigations, and issuing subpoenas for documents and testimony. It mandates the establishment of an information system to receive communications from the public while ensuring anonymity for individuals providing information. The Inspector General is also required to prepare annual reports summarizing the activities of the office, including significant problems related to fraud, waste, and abuse, and recommendations for corrective actions.

Additionally, the bill merges the existing offices of the Auditor General and the Office of Internal Audit and Program Integrity into the Office of Inspector General, transferring authority and responsibilities to the new office. It repeals the existing Chapter 35-7.1 and replaces it with updated provisions for the Office of Inspector General, which will conduct audits and investigations of public bodies, including state agencies, municipalities, and nongovernmental agencies receiving public funds. The legislation aims to enhance accountability, oversight, and transparency in the management of public funds in Rhode Island, while also protecting whistleblowers and ensuring effective coordination among state agencies.