Rhode Island 2025 Regular Session

Rhode Island House Bill H5997 Compare Versions

Only one version of the bill is available at this time.

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5	5	2025 -- H 5997
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7	7	LC001089
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9	9	S T A T E O F R H O D E I S L A N D
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2025
12	12	____________
13	13
14	14	A N A C T
15	15	RELATING TO STATE AFFAIRS AND GOVERNMENT -- INSPECTOR GENERAL
16	16	Introduced By: Representatives Nardone, Cotter, Edwards, Fascia, Hopkins, Messier,
17	17	Santucci, Solomon, Casey, and Newberry
18	18	Date Introduced: February 28, 2025
19	19	Referred To: House Finance
20	20
21	21
22	22	It is enacted by the General Assembly as follows:
23	23	SECTION 1. Title 42 of the General Laws entitled "STATE AFFAIRS AND 1
24	24	GOVERNMENT" is hereby amended by adding thereto the following chapter: 2
25	25	CHAPTER 9.4 3
26	26	INSPECTOR GENERAL 4
27	27	42-9.4-1. Purpose. 5
28	28	The office of inspector general shall be an independent administrative agency charged with 6
29	29	the purpose of preventing and detecting fraud, waste, abuse and mismanagement in the expenditure 7
30	30	of public funds, whether federal, state, or local, and relating to any and all state programs and 8
31	31	operations as well as the procurement of any supplies, services, or construction, by agencies, 9
32	32	bureaus, divisions, sections, departments, offices, commissions, institutions and activities of the 10
33	33	state of Rhode Island, including those districts, authorities, or political subdivisions created by the 11
34	34	general assembly, the governor, and any court, including any city or town within the state of Rhode 12
35	35	Island. Investigations may include the expenditures by nongovernmental agencies of federal, state, 13
36	36	and local public funds. 14
37	37	42-9.4-2. Definitions. 15
38	38	As used in this chapter, unless the context requires otherwise, the following terms shall 16
39	39	have the following meanings: 17
40	40	(1) "Construction" means the process of building, altering, repairing, improving, or 18
41	41	demolishing any public structure or building, or other improvements of any kind to any public 19
42	42
43	43
44	44	LC001089 - Page 2 of 20
45	45	property. 1
46	46	(2) "Contract" means all types of agreements, including grants and orders, for the purchase 2
47	47	or disposal of supplies, services, construction, or any other item. It includes: 3
48	48	(i) Awards; 4
49	49	(ii) Contracts of a fixed-price, cost, cost-plus-a-fixed-fee, or incentive type; 5
50	50	(iii) Contracts providing for the issuance of job or task orders; 6
51	51	(iv) Leases; 7
52	52	(v) Letter contracts; 8
53	53	(vi) Purchase orders; and 9
54	54	(vii) Construction management contracts. It also includes supplemental agreements with 10
55	55	respect to any of the foregoing agreements. 11
56	56	(3) "Contractor" means any person, corporation, partnership, business, union, committee, 12
57	57	or other organization entity or group of individuals performing any tasks, or duties defined under a 13
58	58	written or oral contract with and for the state of Rhode Island or the joint committee on legislative 14
59	59	services. 15
60	60	(4) "Procurement" means the purchasing, buying, renting, leasing, or otherwise obtaining 16
61	61	any supplies, services, or construction. It also includes all functions that pertain to the obtaining of 17
62	62	any supply, service, or construction item, including a description of requirements, selection and 18
63	63	solicitation of sources, preparation, and award of contract, and all phases of contract administration. 19
64	64	(5) "Public funds" means state, federal or local funds, either appropriated, non-appropriated 20
65	65	or given under right of grant. 21
66	66	(6) "Services" means the rendering by a contractor of its time and effort rather than the 22
67	67	furnishing of a specific end product, other than reports which are merely incidental to the required 23
68	68	performance of services. 24
69	69	(7) "Supplies" means all property, including, but not limited to, leases of real property, 25
70	70	printing, and insurance, except land or permanent interest in land. 26
71	71	42-9.4-3. Establishment of office -- Appointment and removal of inspector general. 27
72	72	(a) There is hereby established an office of inspector general, (hereinafter referred to as the 28
73	73	"office"). There shall be in the office an inspector general, who shall be the administrative head of 29
74	74	the office and who shall be appointed by a majority vote of the governor, the attorney general, and 30
75	75	the general treasurer for a five (5) year term to begin July 1 and end June 30, five (5) years later. 31
76	76	The appointee shall serve no longer than two (2) terms. The person so appointed shall be selected 32
77	77	without regard to political affiliation and with a demonstrated ability in more than one of the 33
78	78	following areas: accounting, auditing, financial analysis, law, management analysis, public 34
79	79
80	80
81	81	LC001089 - Page 3 of 20
82	82	administration, investigation and criminal justice administration. 1
83	83	(b) The selection process of a qualified inspector general shall include at least one public 2
84	84	forum. If an inspector general is not selected within one month of a new inspector general term, the 3
85	85	governor shall appoint an inspector general. The inspector general shall have at least five (5) years' 4
86	86	experience in accounting, criminal justice, or a closely related profession and a bachelor’s degree 5
87	87	from an accredited college or university with a major in accounting, criminal justice, or a closely 6
88	88	related field of study. 7
89	89	(c) No inspector general shall hold, or be a candidate for, any other elective or appointed 8
90	90	public office while an inspector general and for one year prior. No inspector general shall hold a 9
91	91	position in any political party or political committee, or participate in any political campaign of any 10
92	92	candidate for public office while an inspector general. 11
93	93	(d) In case of a vacancy in the position of inspector general, their successor shall be 12
94	94	appointed in the manner described in subsections (a) and (b) of this section, and shall serve from 13
95	95	their date of appointment until the fifth June 30th following their appointment. If this vacancy is 14
96	96	not filled within one month, then the governor shall appoint an inspector general. 15
97	97	(e) The person so appointed may be removed from office for cause by a two-thirds (2/3) 16
98	98	vote of the governor, the attorney general, the general treasurer, the lieutenant governor, secretary 17
99	99	of state, the speaker and the minority leader of the house of representatives and the president and 18
100	100	minority leader of the senate. Cause may include substantial neglect of duty, gross misconduct or 19
101	101	conviction of a crime whether or not it is work related. The reasons for removal of the inspector 20
102	102	general shall be stated in writing and shall include the basis for such removal. The writing shall be 21
103	103	a public document. The inspector general shall have ten (10) days to submit a written appeal, which 22
104	104	shall be a public document. If no appeal is made, the inspector general shall be dismissed from 23
105	105	office. If an appeal is made, a vote shall be taken in the senate and two-thirds (2/3) vote of the 24
106	106	senate shall be required to dismiss the inspector general. 25
107	107	42-9.4-4. Employees -- Appointment and removal, salaries, qualifications. 26
108	108	(a) The inspector general may appoint and remove such employees as deemed necessary 27
109	109	to perform the duties of the office, including, but not limited to, assistant inspectors general, chief 28
110	110	and deputy counsels, clerks, paralegals, accountants, auditors, financial management analysts and 29
111	111	investigators. The inspector general may determine their salaries and duties; provided, however, 30
112	112	that the total amount of all such salaries shall not exceed the sum appropriated therefor by the 31
113	113	general assembly. 32
114	114	(b) The inspector general shall file an annual personnel report not later than the first 33
115	115	Wednesday in February with the senate and house finance committees containing the job 34
116	116
117	117
118	118	LC001089 - Page 4 of 20
119	119	classifications, duties and salary of each officer and employee within the office together with 1
120	120	personnel regulations applicable to said officers and employees. The inspector general shall file 2
121	121	amendments to such report with the senate and house finance committees whenever any change 3
122	122	becomes effective. 4
123	123	(c) No officer or employee of the office of inspector general shall hold, or be a candidate 5
124	124	for, any elective public office while an officer or employee, or for one year thereafter, nor shall 6
125	125	they hold a position in any political party or political committee, or participate in any political 7
126	126	campaign of any candidate for public office while an officer or employee. 8
127	127	42-9.4-5. Inspector general -- Salary and budget. 9
128	128	The general assembly shall annually set the salary of the inspector general and shall 10
129	129	appropriate sufficient funds for the total budget for the office. 11
130	130	42-9.4-6. Rules and regulations. 12
131	131	The office shall, pursuant to the provisions of chapter 35 of title 42, ("administrative 13
132	132	procedures act"), promulgate rules and regulations which shall govern its proceedings. 14
133	133	42-9.4-7. Duties. 15
134	134	(a) The inspector general shall supervise, coordinate and/or conduct audits, criminal, civil 16
135	135	and administrative investigations and inspections or oversight reviews, when necessary, relating to 17
136	136	programs and operations listed in § 42-9.4-1. The inspector general shall review laws and 18
137	137	regulations relating to programs and operations listed in § 42-9.4-1 and shall determine if public 19
138	138	bodies listed in § 42-9.4-1 are in compliance, and shall make recommendations concerning the 20
139	139	effect of such laws or regulations on the prevention and detection of fraud, waste and abuse. The 21
140	140	inspector general may recommend policies that will assist in the prevention or detection of fraud, 22
141	141	waste and abuse and mismanagement. The person in charge of, or the governing body of any public 23
142	142	body listed in § 42-9.4-1, may request the assistance of the inspector general with respect to 24
143	143	implementation of any reviews, audits, and/or investigations as deemed appropriate, and implement 25
144	144	suggested policy or procedure changes. In such events the inspector general may assign personnel 26
145	145	to conduct, supervise, or coordinate such activity as deemed necessary and appropriate to perform 27
146	146	their duties in a diligent and prudent manner. The inspector general may recommend policies for 28
147	147	the conduct, supervision or coordination of relationships, between state and municipal agencies and 29
148	148	other state and local governmental agencies, as well as federal governmental agencies and 30
149	149	nongovernmental entities with respect to all matters relating to the prevention and detection of 31
150	150	fraud, waste, abuse and mismanagement in or relating to any and all programs and activities of the 32
151	151	state of Rhode Island as set forth in § 42-9.4-1. 33
152	152	(b) The inspector general shall establish and maintain an information system to receive 34
153	153
154	154
155	155	LC001089 - Page 5 of 20
156	156	communications from the general public relating to the duties of the office to guarantee the 1
157	157	anonymity of the individual supplying the information consisting of the transmission by email, 2
158	158	regular mail or other electronic system that does not involve the use of a telephone line. 3
159	159	42-9.4-8. Inspection of records and papers –Investigations – Subpoenas. 4
160	160	(a) The inspector general, in carrying out the duties outlined in this chapter, shall have 5
161	161	access to all records, reports, audits, reviews, papers, books, documents, recommendations, 6
162	162	correspondence, including information relative to the purchase of services or anticipated purchase 7
163	163	of services from any contractor by any public body set forth in § 42-9.4-1, and any other data and 8
164	164	material that is maintained by or available to any public body, regardless of the media in which it 9
165	165	is maintained which is, in any way, related to the programs and operations with respect to the state 10
166	166	of Rhode Island, including any local town, municipality or city. 11
167	167	(b) The inspector general may request information, cooperation and assistance from any 12
168	168	state or local governmental agency as may be necessary for carrying out their duties and 13
169	169	responsibilities. Upon receipt of such request, each person in charge of, or the governing body of 14
170	170	any public body set forth in § 42-9.4-1, shall furnish to the inspector general or their authorized 15
171	171	agent or representative such information, cooperation, and assistance, including information 16
172	172	relative to the purchase of services or anticipated purchase of services from any contractor by any 17
173	173	public body within ten (10) business days of receipt of the inspector general’s request. If the request 18
174	174	for the information requested cannot be complied with, within ten (10) business days, the senior 19
175	175	official of the governmental agency shall notify the inspector general before the expiration of the 20
176	176	ten (10) business days as to the reason that the request cannot be complied within the time frame 21
177	177	of this section, and shall provide a specific date for expected compliance. 22
178	178	(c) The inspector general may initiate and conduct investigations, audits, and compliance 23
179	179	reviews, and shall prepare detailed reports relating to findings and conclusions concerning the 24
180	180	administration of the programs and operations of the applicable public bodies listed in § 42-9.4-1, 25
181	181	as are in the judgment of the inspector general necessary and may conduct an examination of any 26
182	182	public documents, and any information with respect to whether internal quality controls are in place 27
183	183	and operating. 28
184	184	(d) The inspector general shall have direct and prompt access to the head of any public 29
185	185	body set forth in § 42-9.4-1 when necessary for any purpose pertaining to the performance of their 30
186	186	duties and responsibilities under this chapter. 31
187	187	(e) The inspector general may request the production, on a voluntary basis, of testimony or 32
188	188	documents from any individual, firm or nongovernmental entity which relate to actions or matters 33
189	189	that pertain to state or municipal governmental agencies as dictated by their duties and 34
190	190
191	191
192	192	LC001089 - Page 6 of 20
193	193	responsibilities. 1
194	194	(f) (1) The inspector general may issue a subpoena for the production of all records, reports, 2
195	195	audits, reviews, papers, books, documents, recommendations, correspondence and any other data 3
196	196	and material relevant to any matter under audit or investigation pursuant to the provisions of this 4
197	197	chapter, no matter in which media the information is maintained. 5
198	198	(2) A subpoena may be issued only when a person, corporation or other entity under 6
199	199	investigation or being audited refuses to voluntarily comply with a request from the inspector 7
200	200	general. 8
201	201	(3) The subpoena shall be served in the same manner as a subpoena for the production of 9
202	202	documents in civil cases issued on behalf of the state of Rhode Island, and all provisions of law 10
203	203	relative to the subpoena shall apply to a subpoena issued pursuant to this chapter. Any justice of 11
204	204	the superior court may, upon application by the inspector general, issue an order to compel the 12
205	205	production of records, reports, audits, reviews, papers, books, documents, recommendations, 13
206	206	correspondence, and any other data and material as aforesaid in the same manner and to the same 14
207	207	extent as before said superior court. Any failure to obey the order may be punished by the superior 15
208	208	court as a contempt of court. 16
209	209	(4) Any subpoena issued pursuant to this section shall not be made public by the inspector 17
210	210	general or any officer or employee of that office, nor shall any documents or records provided 18
211	211	pursuant to this section be made public until such time as it is necessary for the inspector general 19
212	212	to do so in the performance of their official duties. The production of documents or records pursuant 20
213	213	to subpoena shall be governed by the same provisions with reference to secrecy, which govern the 21
214	214	proceedings of a grand jury. Disclosure of such production, attendance, and testimony may be made 22
215	215	to such members of the staff of the office of the inspector general as is deemed necessary in the 23
216	216	performance of the inspector general's duties and responsibilities under this chapter, and such 24
217	217	members of the staff may be present at the production of records. 25
218	218	42-9.4-9. Subpoena for witness testimony and for release of material evidence. 26
219	219	(a) Whenever the inspector general has reason to believe that a person has information or 27
220	220	evidence in their possession with respect to any matter which is within the inspector general’s 28
221	221	jurisdiction to investigate, a subpoena must issue for the attendance and testimony under oath of 29
222	222	any person as designated, or the surrender of identified items of evidence; provided, however, that 30
223	223	the subpoena may be issued by the inspector general only in the performance of official duties 31
224	224	relating to the detection of fraud, waste, abuse and mismanagement. The subpoena for testimony 32
225	225	or specific items identified as needed in support of an investigation shall include: the name and 33
226	226	address of the prospective witness or specific items identified as needed for the investigation and 34
227	227
228	228
229	229	LC001089 - Page 7 of 20
230	230	the reasons for requesting a subpoena for testimony or production of items deemed necessary to 1
231	231	support the investigation. 2
232	232	(b) The inspector general or any other person duly authorized by law shall serve a 3
233	233	subpoena. Once the subpoena is served, the serving officer shall annotate the time and date served, 4
234	234	the person served and the location of service. 5
235	235	(c) A witness required by subpoena to attend and testify under oath and/or produce books 6
236	236	and records or other items as demanded, shall be given not less than forty-eight (48) hours' notice 7
237	237	of the time and place for the taking of testimony or delivery of subpoenaed items, unless such notice 8
238	238	shall unduly interfere with the conduct of the investigation. 9
239	239	(d) The witness, at the time of service of a subpoena, shall be notified of the matter under 10
240	240	investigation concerning which the witness will be required to testify. A subject of an investigation 11
241	241	is a person whose conduct is within the scope of the investigation and is suspected of committing 12
242	242	or being party to an offense under investigation. The failure to furnish the witness with any notice 13
243	243	or information required to be given by this section shall cause the issued subpoena to be invalid. 14
244	244	(e) A person subpoenaed to testify under oath shall appear and testify under oath at the 15
245	245	time and place designated on the subpoena. In addition, the witness shall be notified that they have 16
246	246	a right to consult with and to have an attorney present at the time the testimony is taken, and that 17
247	247	they have a constitutional right not to furnish or produce evidence that may tend to incriminate the 18
248	248	person. 19
249	249	(f) The terms of any such subpoena shall be reasonable and focused on specific testimony 20
250	250	or evidence sought and shall directly relate to the matters under investigation. A subpoena issued 21
251	251	that is broad in nature is not considered valid. No subpoena shall be issued for purposes of 22
252	252	harassment or for any illegitimate or improper purpose. All constitutional and statutory rights and 23
253	253	privileges which exist with respect to any subpoena issued by the inspector general, including the 24
254	254	privilege against self-incrimination, shall have the same force and effect with any and all existing 25
255	255	laws and constitutional rights. 26
256	256	(g) A subpoenaed person may object to the subpoena served upon them in advance of the 27
257	257	return date of the subpoena by a motion to quash filed in the superior court of the state of Rhode 28
258	258	Island. The filing of a motion to quash shall stay all pending subpoenas until further order of the 29
259	259	superior court. Any justice of the superior court may, upon application by the inspector general, 30
260	260	issue an order to compel the attendance of witnesses subpoenaed, and the giving of testimony under 31
261	261	oath in furtherance of any audit or investigation under this chapter in the same manner and to the 32
262	262	same extent as before the superior court. Failure to obey any order of the court with respect to a 33
263	263	subpoena may be punished by the court as contempt. 34
264	264
265	265
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267	267	(h) Any subpoena issued pursuant to this section shall not be made public by the inspector 1
268	268	general or any persons subject to their direction or by any member of the inspector general's office 2
269	269	designated to hear testimony under this section, and the same provisions with reference to secrecy, 3
270	270	which govern grand jury proceedings, shall govern testimony given. Whoever violates the 4
271	271	provisions of this subsection shall be punished by imprisonment for not more than six (6) months 5
272	272	or by a fine of not more than one thousand dollars ($1,000), or both. Disclosure of such testimony 6
273	273	may be made to such members of the staff of the office of inspector general as is deemed necessary 7
274	274	by the inspector general to assist in the performance of the office's duties and responsibilities and 8
275	275	such members of the staff may be present at the taking of such testimony. 9
276	276	42-9.4-10. Compact – Investigation. 10
277	277	(a) The inspector general shall accept and may investigate or audit complaints or 11
278	278	information from any individual concerning the possible existence of any activity constituting 12
279	279	fraud, waste, abuse and mismanagement relating to programs and operations as set forth in § 42- 13
280	280	9.4-1. 14
281	281	(b) The inspector general shall not, after receipt of a complaint or information from an 15
282	282	employee, contractor or private citizen who requests confidentiality, disclose the identity of that 16
283	283	individual without the written consent of said individual, unless the inspector general determines 17
284	284	such disclosure is necessary and unavoidable during the course of an investigation. In such event, 18
285	285	the individual shall be notified immediately of the disclosure. The inspector general shall set up an 19
286	286	anonymous hotline for reporting possible wrongdoings. 20
287	287	(c) Employees are protected under chapter 50 of title 28, the ("Rhode Island 21
288	288	Whistleblower's Protection Act"). 22
289	289	42-9.4-11. Reports to the attorney general or United States Attorney. 23
290	290	(a) In carrying out their duties and responsibilities, the inspector general shall report to the 24
291	291	attorney general, the United States Attorney or both whenever the inspector general has reasonable 25
292	292	grounds to believe there has been a violation of federal or state criminal law. The attorney general 26
293	293	shall institute appropriate proceedings in the furtherance of completing an investigation and, if 27
294	294	warranted, refer a matter for prosecution. 28
295	295	(b) The inspector general shall refer audit or investigative findings to the state ethics 29
296	296	commission, or to any other federal, state or local agency, which has an interest in said findings. 30
297	297	(c) Any referrals made under this section shall not be made public. 31
298	298	42-9.4-12. Coordination with other state agencies. 32
299	299	The inspector general may coordinate with other state agencies that are responsible for 33
300	300	investigating, auditing, reviewing or evaluating the management of state agencies for the purpose 34
301	301
302	302
303	303	LC001089 - Page 9 of 20
304	304	of sharing information and avoiding duplication of effort. 1
305	305	42-9.4-13. Civil actions. 2
306	306	(a) The inspector general shall have the authority to institute a civil recovery action if 3
307	307	authorized by the attorney general. In any case where the inspector general has discovered 4
308	308	fraudulent acts and believes that civil recovery proceedings may be appropriate, the matter shall be 5
309	309	referred to the attorney general. The attorney general may institute whatever proceedings deemed 6
310	310	appropriate, may refer the matter to another state or local agency, may authorize the initiation of 7
311	311	appropriate civil proceedings by the inspector general, may retain the matter for further 8
312	312	investigation, or may remand the matter to the inspector general for further investigation. 9
313	313	42-9.4-14. Annual and interim reports. 10
314	314	(a) The office of inspector general shall, no later than April 1 of each year, prepare a report 11
315	315	summarizing the activities of the office for the prior calendar year. The office may also prepare 12
316	316	interim reports. These reports shall be forwarded to the governor, lieutenant governor, attorney 13
317	317	general, secretary of state, general treasurer and the general assembly, and shall be made available 14
318	318	to the public. 15
319	319	(b) The report shall include, but not be limited to: 16
320	320	(1) A description of significant problems in the areas of fraud, waste and abuse within 17
321	321	programs and operations within the jurisdiction of the office; 18
322	322	(2) A description of the recommendations for corrective action made by the office during 19
323	323	the reporting period with respect to significant deficiencies in the areas of fraud, waste and abuse; 20
324	324	(3) The identification of each significant recommendation described in previous annual 21
325	325	reports on which corrective action has not been completed; 22
326	326	(4) A summary of matters referred to prosecuting authorities and the prosecutions and 23
327	327	convictions which have resulted; 24
328	328	(5) A summary of any matters concerning the recovery of monies as a result of a civil suit 25
329	329	by the office or a referral to another agency for the purposes of such suit; and 26
330	330	(6) A list of all audit reports completed by the office during the reporting period and a 27
331	331	statement of recommendations of amendments to this chapter or the rules, regulations or procedures 28
332	332	governing the office of inspector general which would improve the effectiveness or the operation 29
333	333	of the office. 30
334	334	(c) The head or governing body of each public body may, within sixty (60) days of receipt, 31
335	335	comment upon any references to the public body contained within the report. The comment, if any, 32
336	336	shall be forwarded to the governor, the attorney general, the general assembly and the office of 33
337	337	inspector general. 34
338	338
339	339
340	340	LC001089 - Page 10 of 20
341	341	(d) The report of the inspector general shall be made public on the day of filing; provided, 1
342	342	that the report shall not list the names of individuals or corporations, nor describe them with 2
343	343	sufficient particularity as to readily identify them to the general public in those cases in which no 3
344	344	official disposition has been made by the office of inspector general, the department of the attorney 4
345	345	general or the local office of the United States Attorney. 5
346	346	SECTION 2. Sections 22-13-1, 22-13-2, 22-13-3, 22-13-4, 22-13-9 and 22-13-10 of the 6
347	347	General Laws in Chapter 22-13 entitled "Auditor General" are hereby amended to read as follows: 7
348	348	22-13-1. Appointment — Qualifications — Oath — Bond — Office space — Rules 8
349	349	and regulations. 9
350	350	(a) The auditor general shall be appointed by the joint committee on legislative services, 10
351	351	referred to in this chapter as “the committee.” inspector general and head a division within the 11
352	352	office of the inspector general. At the time of appointment, the auditor general shall have had active 12
353	353	experience in general accounting principles and practices in this state for a total period of at least 13
354	354	five (5) years. Vacancies in the office shall be filled in the same manner as the original appointment. 14
355	355	(b)(1) The committee inspector general shall employ qualified persons necessary for the 15
356	356	efficient operation of the office and shall fix their duties and compensation and those persons shall 16
357	357	be in the unclassified service. 17
358	358	(2) No person shall be employed as an auditor who does not have adequate technical 18
359	359	training and proficiency, and a baccalaureate degree from a college or university, and no person 19
360	360	shall be employed or retained as legal advisor on either a full-time or a part-time basis who is not 20
361	361	a member of the Rhode Island bar. 21
362	362	(c) The auditor general, before entering upon the duties of his or her office, shall take and 22
363	363	subscribe to the oath of office required of state officers by the state constitution. 23
364	364	(d) The auditor general shall be covered by the state’s blanket position bond and 24
365	365	conditioned that he or she will well and faithfully discharge the duties of his or her office; promptly 25
366	366	report any delinquency or shortage discovered in any accounts and records audited by him or her; 26
367	367	and promptly pay over and account for any and all funds that shall come into his or her hands as 27
368	368	auditor. 28
369	369	(e)(1) All auditors employed by the auditor general shall be covered by a blanket position 29
370	370	bond. The bonds or bond shall meet and contain the same conditions as are required in the bond of 30
371	371	the auditor general. 31
372	372	(2) All bonds shall be filed with the committee inspector general. If an auditor is not 32
373	373	covered in the blanket position bond, an individual bond shall be filed within thirty (30) days after 33
374	374	the employee received notice of his or her employment. The amount of the bond shall be determined 34
375	375
376	376
377	377	LC001089 - Page 11 of 20
378	378	by the auditor general. Failure to file an individual bond or to be covered in the blanket position 1
379	379	bond shall terminate his or her employment. 2
380	380	(f) The annual premium of all bonds shall be paid out of any funds provided for the 3
381	381	operation of the office of the inspector general. 4
382	382	(g) The auditor general shall be provided with suitable quarters, but to facilitate auditing 5
383	383	and to eliminate unnecessary traveling, the joint committee on legislative services inspector general 6
384	384	may establish divisions, including a performance investigation division, and assign auditors to each 7
385	385	division and determine their duties and the areas of the state to be served by the respective divisions. 8
386	386	The auditor general shall be provided and furnished with any space that may be necessary to carry 9
387	387	out his or her functions in other areas of the state. 10
388	388	(h) The auditor general may make and enforce reasonable rules and regulations necessary 11
389	389	to facilitate audits and investigations that the joint committee on legislative services inspector 12
390	390	general authorizes the auditor general to perform. This includes the post-audit of the financial 13
391	391	transactions and accounts of the state that is provided for by the finance committee of the house of 14
392	392	representatives. 15
393	393	(i) No full-time employee of the office of auditor general shall serve as an executive, 16
394	394	officer, or employee of any political party committee, organization, or association. Neither the 17
395	395	auditor general nor any employee of the auditor general shall become a candidate for election to 18
396	396	public office unless he or she shall first resign from his or her office or employment. 19
397	397	22-13-2. Termination of appointment. 20
398	398	Failure on the part of the auditor general to perform the mandatory duties under the 21
399	399	direction of the committee inspector general shall constitute cause for termination of appointment. 22
400	400	The appointment of the auditor general may be terminated at any time by a majority vote of the 23
401	401	joint committee on legislative services the inspector general. 24
402	402	22-13-3. Salaries and expenses. 25
403	403	(a) The expenses of the members of the committee shall be approved by the chairperson of 26
404	404	the committee inspector general and paid from the appropriation for legislative expense the office 27
405	405	of the inspector general. 28
406	406	(b) The auditor general shall prepare and annually submit to the committee inspector 29
407	407	general a proposed budget for the ensuing fiscal year. The committee inspector general shall review 30
408	408	the budget request and may amend or change the budget request as it deems necessary. The budget 31
409	409	request, as amended or changed by the committee inspector general, shall become the operating 32
410	410	budget of the auditor general for the ensuing fiscal year; provided, that the budget so adopted may 33
411	411	subsequently be amended under the same procedure. 34
412	412
413	413
414	414	LC001089 - Page 12 of 20
415	415	(c) Within the limitations of the approved operating budget, the salaries and expenses of 1
416	416	the auditor general and his or her staff shall be paid from the appropriation for legislative expense 2
417	417	or any other moneys appropriated by the legislature for that purpose the office of the inspector 3
418	418	general. The joint committee on legislative services inspector general shall approve all bills for 4
419	419	salaries and expenses. 5
420	420	22-13-4. Definitions — Duties of auditor general — Investigations by committee. 6
421	421	(a) The following words and phrases have the following meanings unless a different 7
422	422	meaning is required by the context: 8
423	423	(1) “Performance audit” means an examination of the effectiveness of administration and 9
424	424	its efficiency and adequacy in terms of the program of the state agency authorized by law to be 10
425	425	performed. The “performance audit” may also include a review of the agency in terms of 11
426	426	compliance with federal and state laws and executive orders relating to equal employment 12
427	427	opportunities and the set aside for minority businesses. 13
428	428	(2) “Political subdivision” means a separate agency or unit of local government created or 14
429	429	established by law and includes, but is not limited to, the following and the officers of the following: 15
430	430	authority, board, branch, bureau, city, commission, council, consolidated government, county, 16
431	431	department, district, institution, metropolitan government, municipality, office, officer, public 17
432	432	corporation, town, or village. 18
433	433	(3) “Post-audit” means an audit made at some point after the completion of a transaction 19
434	434	or a group of transactions. 20
435	435	(4) “State agency” means a separate agency or unit of state government created or 21
436	436	established by law and includes, but is not limited to, the following and the officers of the following: 22
437	437	authority, board, branch, bureau, commission, council, department, division, institution, office, 23
438	438	officer, or public corporation, as the case may be, except any agency or unit within the legislative 24
439	439	branch of state government. 25
440	440	(b) The auditor general shall make post-audits and performance audits of public records 26
441	441	and perform related duties as prescribed by the committee inspector general. He or she shall 27
442	442	perform his or her duties independently but under the general policies established by the committee 28
443	443	inspector general. 29
444	444	(c)(1) The auditor general shall have the power and duty to make post-audits and 30
445	445	performance audits of the accounts and records of all state agencies, including the board of 31
446	446	governors for higher education and the board of regents for elementary and secondary education, 32
447	447	as defined in this section. 33
448	448	(2) The auditor general shall have the power, when requested by a majority of the 34
449	449
450	450
451	451	LC001089 - Page 13 of 20
452	452	committee the inspector general, to make post-audits and performance audits of accounts and 1
453	453	records of any other public body or political subdivision, or any association or corporation created 2
454	454	or established by any general or special law of the general assembly, or any person, association, or 3
455	455	corporation to which monies of the state have been appropriated by the general assembly. Nothing 4
456	456	in the subdivision shall be construed to apply to public utilities. 5
457	457	(3) The auditor general shall perform or have performed annually a complete post-audit of 6
458	458	the financial transactions and accounts of the state when approved by the chairperson of the joint 7
459	459	committee on legislative services inspector general. 8
460	460	(d) The committee inspector general may at any time, without regard to whether the 9
461	461	legislature is then in session or out of session, take under investigation any matter within the scope 10
462	462	of an audit either completed or then being conducted by the auditor general, and in connection with 11
463	463	that investigation may exercise the powers of subpoena vested by law in a standing committee of 12
464	464	the legislature the office of the inspector general. 13
465	465	(e)(1) The auditor general may, when directed by the committee inspector general, 14
466	466	designate and direct any auditor employed by him or her to audit any accounts or records within 15
467	467	the power of the auditor general to audit. The auditor shall report his or her findings for review by 16
468	468	the auditor general, who shall prepare the audit report. 17
469	469	(2) The audit report shall make special mention of: 18
470	470	(i) Any violation of the laws within the scope of the audit; and 19
471	471	(ii) Any illegal or improper expenditure, any improper accounting procedures, all failures 20
472	472	to properly record financial transactions, and all other inaccuracies, irregularities, shortages, and 21
473	473	defalcations. 22
474	474	(3) At the conclusion of the audit, the auditor general or his or her designated representative 23
475	475	will conduct an exit conference with the official whose office or department is subject to audit and 24
476	476	submit to him or her a draft report which includes a list of findings and recommendations. If an 25
477	477	official is not available for the exit conference, delivery of the draft report is presumed to be 26
478	478	sufficient notice. The official must submit to the auditor general within sixty (60) days after the 27
479	479	receipt of the draft report his or her written reply as to: 28
480	480	(i) Acceptance and plan of implementation of each recommendation; 29
481	481	(ii) Reason(s) for non-acceptance of a recommendation. 30
482	482	(4) Should the auditor general determine that the written explanation or rebuttal of the 31
483	483	official whose office is subject to audit is unsatisfactory, he or she shall, as soon as practicable, 32
484	484	report his or her findings to the joint committee on legislative services inspector general. 33
485	485	(f) A copy of the audit report shall be submitted to each member of the committee. 34
486	486
487	487
488	488	LC001089 - Page 14 of 20
489	489	(g) If the auditor general discovers any errors, unusual practices, or any other discrepancies 1
490	490	in connection with his or her audit or post-audit of a state agency or state officers, the auditor 2
491	491	general shall, as soon as practicable, notify in writing the president of the senate and the speaker of 3
492	492	the house of representatives, respectively. 4
493	493	(h) The auditor general shall annually review the capital development program to 5
494	494	determine: (1) the status of all projects included in the program; (2) whether the funds are being 6
495	495	properly expended for their intended purposes; (3) the completion date or projected completion 7
496	496	date of the projects; (4) which projects require professional services and to determine the identity 8
497	497	of individuals or firms appointed; and (5) the expended and unexpended funds. This report shall be 9
498	498	annually submitted to the general assembly on the first Wednesday in February. 10
499	499	(i) The auditor general shall supervise, coordinate, and/or conduct investigations and 11
500	500	inspections or oversight reviews with the purpose of preventing and detecting fraud, waste, abuse 12
501	501	and mismanagement in the expenditure of public funds. 13
502	502	22-13-9. Access to executive sessions of a public agency — Access to records — 14
503	503	Disclosure by the auditor general. 15
504	504	(a) Whenever a public agency goes into executive session, the auditor general or his or her 16
505	505	designated representative shall be permitted to attend the executive session or if the auditor general 17
506	506	or his or her designee is not in attendance at the executive session, the auditor general or his or her 18
507	507	designee, upon written request, shall be furnished with copies of all data or materials furnished to 19
508	508	the members of the public agency at the executive session. If the auditor general or his or her 20
509	509	designee attends the executive session, the auditor general shall be furnished the same data in the 21
510	510	same form and at the same time as members of the public agency. 22
511	511	(b) Within three (3) working days of a written request by the auditor general, the public 23
512	512	agency shall furnish a copy, whether approved by the agency or not, of the minutes of any meeting, 24
513	513	including any executive session of the public agency. 25
514	514	(c) The auditor general shall have full and unlimited access to any and all records of any 26
515	515	public agency, in whatever form or mode the records may be, unless the auditor general’s access 27
516	516	to the records is specifically prohibited or limited by federal or state law. In no case shall any 28
517	517	confidentiality provisions of state law be construed to restrict the auditor general’s access to the 29
518	518	records; provided, the auditor general’s access to any confidential data shall not in any way change 30
519	519	the confidential nature of the data obtained. Where an audit or investigative finding emanates from 31
520	520	confidential data, specific confidential information will not be made public. The records shall 32
521	521	include those in the immediate possession of a public agency as well as records which the agency 33
522	522	itself has a right to. In the event of a dispute between the agency involved and the auditor general 34
523	523
524	524
525	525	LC001089 - Page 15 of 20
526	526	as to whether or not the data involved are confidential by law, the matter will be referred to the 1
527	527	attorney general for resolution. 2
528	528	(d)(1) If in the course of an executive session any fact comes to the attention of the auditor 3
529	529	general or his or her designated representative, which in his or her judgment constitutes an 4
530	530	impropriety, irregularity, or illegal transaction, or points to the onset of an impropriety or illegal 5
531	531	transaction, then the auditor general shall disclose that information to the joint committee on 6
532	532	legislative services inspector general, the director of administration, and the chairperson of the 7
533	533	public agency involved. Where the facts or the data upon which the facts are based are deemed 8
534	534	confidential pursuant to the provisions of federal or state law, the auditor general’s access to the 9
535	535	information shall not in any way change the confidential nature of the data obtained. 10
536	536	(2) In the event of a dispute between the agency involved and the auditor general as to 11
537	537	whether or not the data involved are confidential by law, the matter will be referred to the attorney 12
538	538	general for resolution. 13
539	539	(e) The auditor general or his or her designated representative shall be immune from any 14
540	540	liability to any party for claims arising out of disclosure authorized by this section. 15
541	541	(f) For the purposes of this section, the phrase “public agency” shall include the following: 16
542	542	the Rhode Island industrial building authority, the Rhode Island recreational building authority, the 17
543	543	Rhode Island commerce corporation, the Rhode Island industrial facilities corporation, the Rhode 18
544	544	Island refunding bond authority, the Rhode Island housing and mortgage finance corporation, the 19
545	545	Rhode Island resource recovery corporation, the Rhode Island public transit authority, the Rhode 20
546	546	Island student loan authority, the water resources board, the Rhode Island health and educational 21
547	547	building corporation, the Rhode Island turnpike and bridge authority, the Narragansett Bay 22
548	548	commission, the convention center authority, their successors and assigns, and any other body 23
549	549	corporate and politic which has been or which is subsequently created or established within this 24
550	550	state. 25
551	551	22-13-10. Audit of information security systems. 26
552	552	(a) The general assembly recognizes that the security of government computer systems is 27
553	553	essential to ensuring the stability and integrity of vital information gathered and stored by 28
554	554	government for the benefit of the citizenry and the breach of security over computer systems 29
555	555	presents a risk to the health, safety, and welfare of the public. It is the intent of the legislature to 30
556	556	insure that government computer systems and information residing on these systems are protected 31
557	557	from unauthorized access, compromise, sabotage, hacking, viruses, destruction, illegal use, cyber 32
558	558	attack or any other act which might jeopardize or harm the computer systems and the information 33
559	559	stored on them. 34
560	560
561	561
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563	563	(b) In conjunction with the powers and duties outlined in this chapter, the auditor general 1
564	564	may conduct reviews and assessments of the various government computer systems and the security 2
565	565	systems established to safeguard these computer systems. Computer systems subject to this section 3
566	566	shall include systems which pertain to federal, state, or local programs, and quasi-governmental 4
567	567	bodies, and the computer systems of any entity or program which is subject to audit by the office 5
568	568	of the auditor general. The auditor general’s review may include an assessment of system 6
569	569	vulnerability, network penetration, potential security breaches, and susceptibility to cyber attack 7
570	570	and cyber fraud. 8
571	571	(c) In the event the review by the auditor general indicates a computer system is vulnerable, 9
572	572	or security over the system is lacking, those findings shall not be disclosed publicly and shall not 10
573	573	be considered public records. Notwithstanding any other provision of law to the contrary, the 11
574	574	workpapers developed in connection with the review of the computer system and the security over 12
575	575	the system shall not be deemed public records and are not subject to disclosure. The auditor 13
576	576	general’s findings may be disclosed at the discretion of the auditor general to the chief information 14
577	577	officer of the state as well as the joint committee on legislative services inspector general. Unless 15
578	578	the auditor general authorizes the release of information or findings gathered in the conduct of a 16
579	579	review of computer system security, all such information shall be deemed classified, confidential, 17
580	580	secret, and non-public. 18
581	581	(d) In order to maintain the integrity of the computer system, the auditor general may 19
582	582	procure the services of specialists in information security systems or other contractors deemed 20
583	583	necessary in conducting reviews under this section, and in procuring those services shall be exempt 21
584	584	from the requirements of the state purchasing law or regulation. 22
585	585	(e) Any outside contractor or vendor hired to provide services in the review of the security 23
586	586	of a computer system shall be bound by the confidentiality provisions of this section. 24
587	587	SECTION 3. Sections 35-7.1-2, 35-7.1-3, 35-7.1-6, 35-7.1-7 and 35-7.1-9 of the General 25
588	588	Laws in Chapter 35-7.1 entitled "The Office of Internal Audit" are hereby amended to read as 26
589	589	follows: 27
590	590	35-7.1-2. Duties. 28
591	591	(a) The chief of internal audit shall supervise, coordinate, and/or conduct audits, civil and 29
592	592	administrative investigations, and inspections or oversight reviews, when necessary, relating to 30
593	593	expenditure of state or federal funds, or to any and all state programs and operations, as well as the 31
594	594	procurement of any supplies, services, or construction, by public bodies through the office of the 32
595	595	inspector general. In the course of an audit or investigation, the office of internal audit shall assist 33
596	596	the office of the inspector general in the review statutes and regulations of the public body and shall 34
597	597
598	598
599	599	LC001089 - Page 17 of 20
600	600	assist the office of the inspector general to determine if such a public body is in compliance and 1
601	601	shall assist the office of the inspector general to make recommendations concerning the efficiency 2
602	602	of operations, and the effect of such statutes or regulations on internal controls and the prevention 3
603	603	and detection of fraud, waste and abuse. The chief of internal audit may assist the office of the 4
604	604	inspector general to recommend policies or procedures that may strengthen internal controls, or 5
605	605	assist in the prevention or detection of fraud, waste, and abuse or mismanagement. 6
606	606	(b) The person, or persons, with legal authority for any public body may request the 7
607	607	assistance of the office of internal audit. Any such request must include the scope of services 8
608	608	requested and the work to be performed. In such events, the chief, with the approval of the director 9
609	609	of management and budget, may assign personnel to conduct, supervise, or coordinate such activity 10
610	610	as deemed necessary and appropriate to perform his/her duties in a diligent and prudent manner. 11
611	611	The expenses for any such assistance requested by the public body shall be reimbursed by the public 12
612	612	body to the office of internal audit. The chief may recommend policies for the conduct, supervision, 13
613	613	or coordination of the relationship, between state and other state, local governmental agencies as 14
614	614	well as federal governmental agencies and nongovernmental entities with respect to all matters 15
615	615	relating to the prevention and detection of fraud, waste, abuse or mismanagement in or relating to 16
616	616	any and all programs and activities of the state of Rhode Island. 17
617	617	(c) When it is determined by the office of internal audit that an audit is necessary because 18
618	618	there is sufficient evidence to believe that there may have been fiscal impropriety, wrongdoing, or 19
619	619	fiscal mismanagement by any agent, employee, board member, or commissioner of any public 20
620	620	body, the office of internal audit may assist the assist the office of the inspector general to conduct 21
621	621	a forensic examination of such entity. All costs associated with the forensic examination shall be 22
622	622	paid, as deemed appropriate, either by the examined entity or by an appropriation by the general 23
623	623	assembly. Such costs shall include, but not be limited to, the following expenses: 24
624	624	(1) One hundred percent (100%) of the total salaries and benefits paid to the examining 25
625	625	personnel of the office of internal audit engaged in those examinations; 26
626	626	(2) All costs associated with the procurement of a forensic consultant; 27
627	627	(3) All costs associated with a consultant that provides expertise pertinent to the examinee’s 28
628	628	operations; 29
629	629	(4) All reasonable administrative and technology costs related to the forensic examination 30
630	630	process. Technology costs shall include the actual cost of software and hardware utilized in the 31
631	631	examination process and the cost of training examination personnel in the proper use of the software 32
632	632	and hardware. 33
633	633	35-7.1-3. Investigations or management advisory and consulting services upon 34
634	634
635	635
636	636	LC001089 - Page 18 of 20
637	637	request of governor or general assembly. 1
638	638	The office of internal audit may, upon the written request of the governor or of the general 2
639	639	assembly, conduct audits, provide management advisory and consulting services, or conduct 3
640	640	investigations at the direction of the office of the inspector general relative to the financial affairs 4
641	641	or the economy and efficiency of management, or both, of any public bodies as defined in § 35-5
642	642	7.1-1(e). The office of internal audit may, from time to time, make such investigations at the 6
643	643	direction of the office of the inspector general and additional reports to the governor, the director 7
644	644	of the department of administration, the director of the office of management and budget, and the 8
645	645	general assembly as deemed necessary or advisable. 9
646	646	35-7.1-6. Inspection of records and papers — Investigations. 10
647	647	(a) The chief, in carrying out the duties outlined in this chapter, shall have access to all 11
648	648	records, reports, audits, reviews, papers, books, documents, recommendations, correspondence, 12
649	649	including information relative to the purchase of goods or services or anticipated purchase of goods 13
650	650	or services, from any agent, contractor, or vendor by any public body, as defined in § 35-7.1-1(e), 14
651	651	and any other data and material that is maintained by or available to any public body regardless of 15
652	652	the media in which it is maintained which is in any way related to the programs and operations with 16
653	653	respect to public bodies through the office of the inspector general. 17
654	654	(b) The chief may request information and records, cooperation, and assistance from any 18
655	655	state, or local governmental agency through the office of the inspector general as may be necessary 19
656	656	for carrying out his/her duties and responsibilities. Upon receipt of such request, each person in 20
657	657	charge of the public body shall furnish to the chief office of the inspector general, or his/her 21
658	658	authorized agent or representative, such information and records, cooperation and assistance, 22
659	659	including information relative to the purchase of goods or services or anticipated purchase of goods 23
660	660	or services from any contractor or vendor by any public body, within ten (10) business days of 24
661	661	receipt of the chief’s request. If the public body is unable to comply with the request for records 25
662	662	and/or information within (10) business days, the public body must notify the chief inspector 26
663	663	general, prior to the expiration of the ten (10) business days, in writing as to the reason, or reasons, 27
664	664	why the request cannot be fulfilled within this time and whether additional time is necessary. 28
665	665	(c) The chief may request the office of the inspector general initiate and conduct audits, 29
666	666	investigations, and compliance reviews and shall prepare detailed findings, conclusions, and 30
667	667	recommendations concerning the administration of programs or operations, and internal controls 31
668	668	over processes of public bodies. 32
669	669	(d) The chief inspector general shall have direct and prompt access to any public body, its 33
670	670	agents, officers, and employees when necessary for any purpose pertaining to the performance of 34
671	671
672	672
673	673	LC001089 - Page 19 of 20
674	674	his/her duties and responsibilities under this chapter. 1
675	675	35-7.1-7. Complaint — Investigation. 2
676	676	(a) The chief, at the direction of the office of the inspector general, shall accept and may 3
677	677	investigate or audit complaints or information from any identified individual concerning the 4
678	678	possible existence of any activity constituting fraud, waste, abuse, or mismanagement relating to 5
679	679	programs and operations of public bodies. 6
680	680	(b) The chief shall not, after receipt of a complaint or information from an employee, 7
681	681	contractor, or private citizen who requests confidentiality, disclose the identity of that individual, 8
682	682	without the written consent of said individual, unless the chief determines such disclosure is 9
683	683	necessary and unavoidable during the course of an investigation. In such event, the individual filing 10
684	684	the complaint shall be notified, if possible, immediately of such disclosure. 11
685	685	(c) Employees are protected under the chapter 50 of title 28 “Rhode Island Whistleblowers’ 12
686	686	Protection Act.” 13
687	687	35-7.1-9. Coordination with other state agencies. 14
688	688	The chief may coordinate through the office of the inspector general with other state 15
689	689	agencies that are responsible for investigating, auditing, reviewing, or evaluating the management 16
690	690	of public bodies for the purpose of sharing information and avoiding duplication of effort. 17
691	691	SECTION 4. This act shall take effect upon passage. 18
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693	693	LC001089
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695	695
696	696
697	697	LC001089 - Page 20 of 20
698	698	EXPLANATION
699	699	BY THE LEGISLATIVE COUNCIL
700	700	OF
701	701	A N A C T
702	702	RELATING TO STATE AFFAIRS AND GOVERNMENT -- INSPECTOR GENERAL
703	703	***
704	704	This act would establish the Office of Inspector General as an independent administrative 1
705	705	agency charged with the responsibility to investigate, detect, and prevent fraud, waste, abuse, and 2
706	706	mismanagement in the expenditure of public funds. This act would merge the Auditor General into 3
707	707	the Office of Inspector General. This act would also mandate that the subpoena and investigative 4
708	708	powers of the Office of the Internal Audit at the Department of Administration are to be conducted 5
709	709	at the direction or through the Office of the Inspector General 6
710	710	This act would take effect upon passage. 7
711	711	========
712	712	LC001089
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