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Rhode Island House Bill H5303

Rhode Island 2023 Regular Session

Rhode Island House Bill H5303 Compare Versions

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55 2023 -- H 5303
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99 S TATE OF RHODE IS LAND
1010 IN GENERAL ASSEMBLY
1111 JANUARY SESSION, A.D. 2023
1212 ____________
1313
1414 A N A C T
1515 RELATING TO STATE AFFAIRS AND GOVERNMENT -- INSPECTOR GENERAL
1616 Introduced By: Representatives Nardone, Place, Quattrocchi, Rea, and Vella-Wilkinson
1717 Date Introduced: February 01, 2023
1818 Referred To: House State Government & Elections
1919
2020
2121 It is enacted by the General Assembly as follows:
2222 SECTION 1. Title 42 of the General Laws entitled "STATE AFFAIRS AND 1
2323 GOVERNMENT" is hereby amended by adding thereto the following chapter: 2
2424 CHAPTER 9.4 3
2525 INSPECTOR GENERAL 4
2626 42-9.4-1. Purpose. 5
2727 The office of inspector general shall be an independent administrative agency charged with 6
2828 the purpose of preventing and detecting fraud, waste, abuse and mismanagement in the expenditure 7
2929 of public funds, whether federal, state, or local, and relating to any and all state programs and 8
3030 operations as well as the procurement of any supplies, services, or construction, by agencies, 9
3131 bureaus, divisions, sections, departments, offices, commissions, institutions and activities of the 10
3232 state of Rhode Island, including those districts, authorities, or political subdivisions created by the 11
3333 general assembly, the governor, and any court, including any city or town within the state of Rhode 12
3434 Island. Investigations may include the expenditures by nongovernmental agencies of federal, state 13
3535 and local public funds. 14
3636 42-9.4-2. Definitions. 15
3737 As used in this chapter, unless the context requires otherwise, the following terms shall 16
3838 have the following meanings: 17
3939 (1) "Construction" means the process of building, altering, repairing, improving, or 18
4040 demolishing any public structure or building, or other improvements of any kind to any public 19
4141
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4444 property. 1
4545 (2) "Contract" means all types of agreements, including grants and orders, for the purchase 2
4646 or disposal of supplies, services, construction, or any other item. It includes: 3
4747 (i) Awards; 4
4848 (ii) Contracts of a fixed-price, cost, cost-plus-a-fixed-fee, or incentive type; 5
4949 (iii) Contracts providing for the issuance of job or task orders; 6
5050 (iv) Leases; 7
5151 (v) Letter contracts; 8
5252 (vi) Purchase orders; and 9
5353 (vii) Construction management contracts. 10
5454 It also includes supplemental agreements with respect to any of the foregoing agreements. 11
5555 (3) "Contractor" means any person, corporation, partnership, business, union, committee, 12
5656 or other organization entity or group of individuals performing any tasks, or duties defined under a 13
5757 written or oral contract with and for the state of Rhode Island or the joint committee on legislative 14
5858 services. 15
5959 (4) "Procurement" means the purchasing, buying, renting, leasing, or otherwise obtaining 16
6060 any supplies, services, or construction. It also includes all functions that pertain to the obtaining of 17
6161 any supply, service, or construction item, including a description of requirements, selection and 18
6262 solicitation of sources, preparation, and award of contract, and all phases of contract administration. 19
6363 (5) "Public funds" means state, federal or local funds, either appropriated, non-appropriated 20
6464 or given under right of grant. 21
6565 (6) "Services" means the rendering by a contractor of its time and effort rather than the 22
6666 furnishing of a specific end product, other than reports which are merely incidental to the required 23
6767 performance of services. 24
6868 (7) "Supplies" means all property, including, but not limited to, leases of real property, 25
6969 printing, and insurance, except land or permanent interest in land. 26
7070 42-9.4-3. Establishment of office -- Appointment and removal of inspector general. 27
7171 (a) There is hereby established an office of inspector general, (hereinafter referred to as the 28
7272 "office"). There shall be in the office an inspector general, who shall be the administrative head of 29
7373 the office and who shall be appointed by a majority vote of the governor, the attorney general, the 30
7474 general treasurer, the lieutenant governor, secretary of state, the speaker and the minority leader of 31
7575 the house of representatives and the president and minority leader of the senate for a five (5) year 32
7676 term to begin July 1 and end June 30, five (5) years later. The appointee shall serve one term only. 33
7777 The person so appointed shall be selected without regard to political affiliation and with a 34
7878
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8181 demonstrated ability in more than one of the following areas: accounting, auditing, financial 1
8282 analysis, law, management analysis, public administration, investigation and criminal justice 2
8383 administration. 3
8484 (b) The selection process of a qualified inspector general shall include at least one public 4
8585 forum. If an inspector general is not selected within one month of a new inspector general term, the 5
8686 governor shall appoint an inspector general. The inspector general shall have at least five (5) years 6
8787 experience in accounting, criminal justice, or a closely related profession and a bachelor’s degree 7
8888 from an accredited college or university with a major in accounting, criminal justice, or a closely 8
8989 related field of study. 9
9090 (c) No inspector general shall hold, or be a candidate for, any other elective or appointed 10
9191 public office while an inspector general and for one year prior. No inspector general shall hold a 11
9292 position in any political party or political committee, or participate in any political campaign of any 12
9393 candidate for public office while an inspector general. 13
9494 (d) In case of a vacancy in the position of inspector general, their successor shall be 14
9595 appointed in the manner described in subsections (a) and (b) of this section, and shall serve from 15
9696 their date of appointment until the fifth June 30 following their appointment. If this vacancy is not 16
9797 filled within one month, then the governor shall appoint an inspector general. 17
9898 (e) The person so appointed may be removed from office for cause by a two-thirds (2/3) 18
9999 vote of the governor, the attorney general, the general treasurer, the lieutenant governor, secretary 19
100100 of state, the speaker and the minority leader of the house of representatives and the president and 20
101101 minority leader of the senate. Cause may include substantial neglect of duty, gross misconduct or 21
102102 conviction of a crime whether or not it is work related. The reasons for removal of the inspector 22
103103 general shall be stated in writing and shall include the basis for such removal. The writing shall be 23
104104 a public document. The inspector general shall have ten (10) days to submit a written appeal, which 24
105105 shall be a public document. If no appeal is made, the inspector general shall be dismissed from 25
106106 office. If an appeal is made, a vote shall be taken in the senate and two-thirds (2/3) vote of the 26
107107 senate shall be required to dismiss the inspector general. 27
108108 42-9.4-4. Employees -- Appointment and removal, salaries, qualifications. 28
109109 (a) The inspector general may appoint and remove such employees as deemed necessary 29
110110 to perform the duties of the office, including, but not limited to, assistant inspectors general, chief 30
111111 and deputy counsels, clerks, paralegals, accountants, auditors, financial management analysts and 31
112112 investigators. The inspector general may determine their salaries and duties; provided, however, 32
113113 that the total amount of all such salaries shall not exceed the sum appropriated therefor by the 33
114114 general assembly. 34
115115
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118118 (b) The inspector general shall file an annual personnel report not later than the first 1
119119 Wednesday in February with the senate and house finance committees containing the job 2
120120 classifications, duties and salary of each officer and employee within the office together with 3
121121 personnel regulations applicable to said officers and employees. The inspector general shall file 4
122122 amendments to such report with the senate and house finance committees whenever any change 5
123123 becomes effective. 6
124124 (c) No officer or employee of the office of inspector general shall hold, or be a candidate 7
125125 for, any elective public office while an officer or employee, or for one year thereafter, nor shall 8
126126 they hold a position in any political party or political committee, or participate in any political 9
127127 campaign of any candidate for public office while an officer or employee. 10
128128 42-9.4-5. Inspector general -- Salary and budget. 11
129129 The general assembly shall annually set the salary of the inspector general and shall 12
130130 appropriate sufficient funds for the total budget for the office. 13
131131 42-9.4-6. Rules and regulations. 14
132132 The office shall, pursuant to the provisions of chapter 35 of title 42, ("administrative 15
133133 procedures act"), promulgate rules and regulations which shall govern its proceedings. 16
134134 42-9.4-7. Duties. 17
135135 (a) The inspector general shall supervise, coordinate and/or conduct audits, criminal, civil 18
136136 and administrative investigations and inspections or oversight reviews, when necessary, relating to 19
137137 programs and operations listed in § 42-9.4-1. The inspector general shall review laws and 20
138138 regulations relating to programs and operations listed in § 42-9.4-1 and shall determine if public 21
139139 bodies listed in § 42-9.4-1 are in compliance, and shall make recommendations concerning the 22
140140 effect of such laws or regulations on the prevention and detection of fraud, waste and abuse. The 23
141141 inspector general may recommend policies that will assist in the prevention or detection of fraud, 24
142142 waste and abuse and mismanagement. The person in charge of, or the governing body of any public 25
143143 body listed in § 42-9.4-1, may request the assistance of the inspector general with respect to 26
144144 implementation of any reviews, audits, and/or investigations as deemed appropriate, and implement 27
145145 suggested policy or procedure changes. In such events the inspector general may assign personnel 28
146146 to conduct, supervise, or coordinate such activity as deemed necessary and appropriate to perform 29
147147 their duties in a diligent and prudent manner. The inspector general may recommend policies for 30
148148 the conduct, supervision or coordination of relationships, between state and municipal agencies and 31
149149 other state and local governmental agencies, as well as federal governmental agencies and 32
150150 nongovernmental entities with respect to all matters relating to the prevention and detection of 33
151151 fraud, waste, abuse and mismanagement in or relating to any and all programs and activities of the 34
152152
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155155 state of Rhode Island as set forth in § 42-9.4-1. 1
156156 (b) The inspector general shall establish and maintain an information system to receive 2
157157 communications from the general public relating to the duties of the office to guarantee the 3
158158 anonymity of the individual supplying the information consisting of the transmission by email, 4
159159 regular mail or other electronic system that does not involve the use of a telephone line. 5
160160 42-9.4-8. Inspection of records and papers –Investigations – Subpoenas. 6
161161 (a) The inspector general, in carrying out the duties outlined in this chapter, shall have 7
162162 access to all records, reports, audits, reviews, papers, books, documents, recommendations, 8
163163 correspondence, including information relative to the purchase of services or anticipated purchase 9
164164 of services from any contractor by any public body set forth in § 42-9.4-1, and any other data and 10
165165 material that is maintained by or available to any public body, regardless of the media in which it 11
166166 is maintained which is, in any way, related to the programs and operations with respect to the state 12
167167 of Rhode Island, including any local town, municipality or city. 13
168168 (b) The inspector general may request information, cooperation and assistance from any 14
169169 state or local governmental agency as may be necessary for carrying out their duties and 15
170170 responsibilities. Upon receipt of such request, each person in charge of, or the governing body of 16
171171 any public body set forth in § 42-9.4-1, shall furnish to the inspector general or their authorized 17
172172 agent or representative such information, cooperation and assistance, including information relative 18
173173 to the purchase of services or anticipated purchase of services from any contractor by any public 19
174174 body within ten (10) business days of receipt of the inspector general’s request. If the request for 20
175175 the information requested cannot be complied with, within ten (10) business days, the senior official 21
176176 of the governmental agency shall notify the inspector general before the expiration of the ten (10) 22
177177 business days as to the reason that the request cannot be complied within the time frame of this 23
178178 section, and shall provide a specific date for expected compliance. 24
179179 (c) The inspector general may initiate and conduct investigations, audits and compliance 25
180180 reviews, and shall prepare detailed reports relating to findings and conclusions concerning the 26
181181 administration of the programs and operations of the applicable public bodies listed in § 42-9.4-1, 27
182182 as are in the judgment of the inspector general necessary and may conduct an examination of any 28
183183 public documents, and any information with respect to whether internal quality controls are in place 29
184184 and operating. 30
185185 (d) The inspector general shall have direct and prompt access to the head of any public 31
186186 body set forth in § 42-9.4-1 when necessary for any purpose pertaining to the performance of their 32
187187 duties and responsibilities under this chapter. 33
188188 (e) The inspector general may request the production, on a voluntary basis, of testimony or 34
189189
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192192 documents from any individual, firm or nongovernmental entity which relate to actions or matters 1
193193 that pertain to state or municipal governmental agencies as dictated by their duties and 2
194194 responsibilities. 3
195195 (f)(1) The inspector general may issue a subpoena for the production of all records, reports, 4
196196 audits, reviews, papers, books, documents, recommendations, correspondence and any other data 5
197197 and material relevant to any matter under audit or investigation pursuant to the provisions of this 6
198198 chapter, no matter in which media the information is maintained. 7
199199 (2) A subpoena may be issued only when a person, corporation or other entity under 8
200200 investigation or being audited refuses to voluntarily comply with a request from the inspector 9
201201 general. 10
202202 (3) The subpoena shall be served in the same manner as a subpoena for the production of 11
203203 documents in civil cases issued on behalf of the state of Rhode Island, and all provisions of law 12
204204 relative to the subpoena shall apply to a subpoena issued pursuant to this chapter. Any justice of 13
205205 the superior court may, upon application by the inspector general, issue an order to compel the 14
206206 production of records, reports, audits, reviews, papers, books, documents, recommendations, 15
207207 correspondence, and any other data and material as aforesaid in the same manner and to the same 16
208208 extent as before said superior court. Any failure to obey the order may be punished by the superior 17
209209 court as a contempt of court. 18
210210 (4) Any subpoena issued pursuant to this section shall not be made public by the inspector 19
211211 general or any officer or employee of that office, nor shall any documents or records provided 20
212212 pursuant to this section be made public until such time as it is necessary for the inspector general 21
213213 to do so in the performance of their official duties. The production of documents or records pursuant 22
214214 to subpoena shall be governed by the same provisions with reference to secrecy, which govern the 23
215215 proceedings of a grand jury. Disclosure of such production, attendance, and testimony may be made 24
216216 to such members of the staff of the office of the inspector general as is deemed necessary in the 25
217217 performance of the inspector general's duties and responsibilities under this chapter, and such 26
218218 members of the staff may be present at the production of records. 27
219219 42-9.4-9. Subpoena for witness testimony and for release of material evidence. 28
220220 (a) Whenever the inspector general has reason to believe that a person has information or 29
221221 evidence in their possession with respect to any matter which is within the inspector general’s 30
222222 jurisdiction to investigate, a subpoena must issue for the attendance and testimony under oath of 31
223223 any person as designated, or the surrender of identified items of evidence; provided, however, that 32
224224 the subpoena may be issued by the inspector general only in the performance of official duties 33
225225 relating to the detection of fraud, waste, abuse and mismanagement. The subpoena for testimony 34
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229229 or specific items identified as needed in support of an investigation shall include: the name and 1
230230 address of the prospective witness or specific items identified as needed for the investigation and 2
231231 the reasons for requesting a subpoena for testimony or production of items deemed necessary to 3
232232 support the investigation. 4
233233 (b) The inspector general or any other person duly authorized by law shall serve a 5
234234 subpoena. Once the subpoena is served, the serving officer shall annotate the time and date served, 6
235235 the person served and the location of service. 7
236236 (c) A witness required by subpoena to attend and testify under oath and/or produce books 8
237237 and records or other items as demanded, shall be given not less than forty-eight (48) hours notice 9
238238 of the time and place for the taking of testimony or delivery of subpoenaed items, unless such notice 10
239239 shall unduly interfere with the conduct of the investigation. 11
240240 (d) The witness, at the time of service of a subpoena, shall be notified of the matter under 12
241241 investigation concerning which the witness will be required to testify. A subject of an investigation 13
242242 is a person whose conduct is within the scope of the investigation and is suspected of committing 14
243243 or being party to an offense under investigation. The failure to furnish the witness with any notice 15
244244 or information required to be given by this section shall cause the issued subpoena to be invalid. 16
245245 (e) A person subpoenaed to testify under oath shall appear and testify under oath at the 17
246246 time and place designated on the subpoena. In addition, the witness shall be notified that they have 18
247247 a right to consult with and to have an attorney present at the time the testimony is taken, and that 19
248248 they have a constitutional right not to furnish or produce evidence that may tend to incriminate the 20
249249 person. 21
250250 (f) The terms of any such subpoena shall be reasonable and focused on specific testimony 22
251251 or evidence sought and shall directly relate to the matters under investigation. A subpoena issued 23
252252 that is broad in nature is not considered valid. No subpoena shall be issued for purposes of 24
253253 harassment or for any illegitimate or improper purpose. All constitutional and statutory rights and 25
254254 privileges which exist with respect to any subpoena issued by the inspector general, including the 26
255255 privilege against self-incrimination, shall have the same force and effect with any and all existing 27
256256 laws and constitutional rights. 28
257257 (g) A subpoenaed person may object to the subpoena served upon them in advance of the 29
258258 return date of the subpoena by a motion to quash filed in the superior court of the state of Rhode 30
259259 Island. The filing of a motion to quash shall stay all pending subpoenas until further order of the 31
260260 superior court. Any justice of the superior court may, upon application by the inspector general, 32
261261 issue an order to compel the attendance of witnesses subpoenaed, and the giving of testimony under 33
262262 oath in furtherance of any audit or investigation under this chapter in the same manner and to the 34
263263
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266266 same extent as before the superior court. Failure to obey any order of the court with respect to a 1
267267 subpoena may be punished by the court as contempt. 2
268268 (h) Any subpoena issued pursuant to this section shall not be made public by the inspector 3
269269 general or any persons subject to their direction or by any member of the inspector general's office 4
270270 designated to hear testimony under this section, and the same provisions with reference to secrecy, 5
271271 which govern grand jury proceedings, shall govern testimony given. Whoever violates the 6
272272 provisions of this subsection shall be punished by imprisonment for not more than six (6) months 7
273273 or by a fine of not more than one thousand dollars ($1,000). Disclosure of such testimony may be 8
274274 made to such members of the staff of the office of inspector general as is deemed necessary by the 9
275275 inspector general to assist in the performance of the office's duties and responsibilities and such 10
276276 members of the staff may be present at the taking of such testimony. 11
277277 42-9.4-10. Compact – Investigation. 12
278278 (a) The inspector general shall accept and may investigate or audit complaints or 13
279279 information from any individual concerning the possible existence of any activity constituting 14
280280 fraud, waste, abuse and mismanagement relating to programs and operations as set forth in § 42-15
281281 9.4-1. 16
282282 (b) The inspector general shall not, after receipt of a complaint or information from an 17
283283 employee, contractor or private citizen who requests confidentiality, disclose the identity of that 18
284284 individual without the written consent of said individual, unless the inspector general determines 19
285285 such disclosure is necessary and unavoidable during the course of an investigation. In such event, 20
286286 the individual shall be notified immediately of the disclosure. The inspector general shall set up an 21
287287 anonymous hotline for reporting possible wrongdoings. 22
288288 (c) Employees are protected under chapter 50 of title 28, the ("Rhode Island 23
289289 Whistleblower's Protection Act"). 24
290290 42-9.4-11. Reports to the attorney general or United States Attorney. 25
291291 (a) In carrying out their duties and responsibilities, the inspector general shall report to the 26
292292 attorney general, the United States Attorney or both whenever the inspector general has reasonable 27
293293 grounds to believe there has been a violation of federal or state criminal law. The attorney general 28
294294 shall institute appropriate proceedings in the furtherance of completing an investigation and, if 29
295295 warranted, refer a matter for prosecution. 30
296296 (b) The inspector general shall refer audit or investigative findings to the state ethics 31
297297 commission, or to any other federal, state or local agency, which has an interest in said findings. 32
298298 (c) Any referrals made under this section shall not be made public. 33
299299 42-9.4-12. Coordination with other state agencies. 34
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303303 The inspector general may coordinate with other state agencies that are responsible for 1
304304 investigating, auditing, reviewing or evaluating the management of state agencies for the purpose 2
305305 of sharing information and avoiding duplication of effort. 3
306306 42-9.4-13. Civil actions. 4
307307 The inspector general shall have the authority to institute a civil recovery action if 5
308308 authorized by the attorney general. In any case where the inspector general has discovered 6
309309 fraudulent acts and believes that civil recovery proceedings may be appropriate, the matter shall be 7
310310 referred to the attorney general. The attorney general may institute whatever proceedings deemed 8
311311 appropriate, may refer the matter to another state or local agency, may authorize the initiation of 9
312312 appropriate civil proceedings by the inspector general, may retain the matter for further 10
313313 investigation, or may remand the matter to the inspector general for further investigation. 11
314314 42-9.4-14. Annual and interim reports. 12
315315 (a) The office of inspector general shall, no later than April 1 of each year, prepare a report 13
316316 summarizing the activities of the office for the prior calendar year. The office may also prepare 14
317317 interim reports. These reports shall be forwarded to the governor, lieutenant governor, attorney 15
318318 general, secretary of state, general treasurer and the general assembly, and shall be made available 16
319319 to the public. 17
320320 (b) The report shall include, but not be limited to: 18
321321 (1) A description of significant problems in the areas of fraud, waste and abuse within 19
322322 programs and operations within the jurisdiction of the office; 20
323323 (2) A description of the recommendations for corrective action made by the office during 21
324324 the reporting period with respect to significant deficiencies in the areas of fraud, waste and abuse; 22
325325 (3) The identification of each significant recommendation described in previous annual 23
326326 reports on which corrective action has not been completed; 24
327327 (4) A summary of matters referred to prosecuting authorities and the prosecutions and 25
328328 convictions which have resulted; 26
329329 (5) A summary of any matters concerning the recovery of monies as a result of a civil suit 27
330330 by the office or a referral to another agency for the purposes of such suit; and 28
331331 (6) A list of all audit reports completed by the office during the reporting period and a 29
332332 statement of recommendations of amendments to this chapter or the rules, regulations or procedures 30
333333 governing the office of inspector general which would improve the effectiveness or the operation 31
334334 of the office. 32
335335 (c) The head or governing body of each public body may, within sixty (60) days of receipt, 33
336336 comment upon any references to the public body contained within the report. The comment, if any, 34
337337
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340340 shall be forwarded to the governor, the attorney general, the general assembly and the office of 1
341341 inspector general. 2
342342 (d) The report of the inspector general shall be made public on the day of filing; provided, 3
343343 that the report shall not list the names of individuals or corporations, nor describe them with 4
344344 sufficient particularity as to readily identify them to the general public in those cases in which no 5
345345 official disposition has been made by the office of inspector general, the department of the attorney 6
346346 general or the local office of the United States Attorney. 7
347347 SECTION 2. This act shall take effect upon passage. 8
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354354 EXPLANATION
355355 BY THE LEGISLATIVE COUNCIL
356356 OF
357357 A N A C T
358358 RELATING TO STATE AFFAIRS AND GOVERNMENT -- INSPECTOR GENERAL
359359 ***
360360 This act would establish the office of inspector general as an independent administrative 1
361361 agency charged with the responsibility to investigate, detect, and prevent fraud, waste, abuse, and 2
362362 mismanagement in the expenditure of public funds. 3
363363 This act would take effect upon passage. 4
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