2024 -- S 2114 | |
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LC003680 | |
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STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2024 | |
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A N A C T | |
RELATING TO STATE AFFAIRS AND GOVERNMENT -- INSPECTOR GENERAL | |
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Introduced By: Senators DeLuca, de la Cruz, Paolino, Rogers, E Morgan, Burke, | |
Date Introduced: January 12, 2024 | |
Referred To: Senate Judiciary | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Title 42 of the General Laws entitled "STATE AFFAIRS AND |
2 | GOVERNMENT" is hereby amended by adding thereto the following chapter: |
3 | CHAPTER 9.4 |
4 | INSPECTOR GENERAL |
5 | 42-9.4-1. Purpose. |
6 | The office of inspector general shall be an independent administrative agency charged with |
7 | the purpose of preventing and detecting fraud, waste, abuse and mismanagement in the expenditure |
8 | of public funds, whether federal, state, or local, and relating to any and all state programs and |
9 | operations as well as the procurement of any supplies, services, or construction, by agencies, |
10 | bureaus, divisions, sections, departments, offices, commissions, institutions and activities of the |
11 | state of Rhode Island, including those districts, authorities, or political subdivisions created by the |
12 | general assembly, the governor, and any court, including any city or town within the state of Rhode |
13 | Island. Investigations may include the expenditures by nongovernmental agencies of federal, state |
14 | and local public funds. |
15 | 42-9.4-2. Definitions. |
16 | As used in this chapter, unless the context requires otherwise, the following terms shall |
17 | have the following meanings: |
18 | (1) "Construction" means the process of building, altering, repairing, improving, or |
19 | demolishing any public structure or building, or other improvements of any kind to any public |
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1 | property. |
2 | (2) "Contract" means all types of agreements, including grants and orders, for the purchase |
3 | or disposal of supplies, services, construction, or any other item. It includes: |
4 | (i) Awards; |
5 | (ii) Contracts of a fixed-price, cost, cost-plus-a-fixed-fee, or incentive type; |
6 | (iii) Contracts providing for the issuance of job or task orders; |
7 | (iv) Leases; |
8 | (v) Letter contracts; |
9 | (vi) Purchase orders; and |
10 | (vii) Construction management contracts. |
11 | It also includes supplemental agreements with respect to any of the foregoing agreements. |
12 | (3) "Contractor" means any person, corporation, partnership, business, union, committee, |
13 | or other organization entity or group of individuals performing any tasks, or duties defined under a |
14 | written or oral contract with and for the state of Rhode Island or the joint committee on legislative |
15 | services. |
16 | (4) "Procurement" means the purchasing, buying, renting, leasing, or otherwise obtaining |
17 | any supplies, services, or construction. It also includes all functions that pertain to the obtaining of |
18 | any supply, service, or construction item, including a description of requirements, selection and |
19 | solicitation of sources, preparation, and award of contract, and all phases of contract administration. |
20 | (5) "Public funds" means state, federal or local funds, either appropriated, non-appropriated |
21 | or given under right of grant. |
22 | (6) "Services" means the rendering by a contractor of its time and effort rather than the |
23 | furnishing of a specific end product, other than reports which are merely incidental to the required |
24 | performance of services. |
25 | (7) "Supplies" means all property, including, but not limited to, leases of real property, |
26 | printing, and insurance, except land or permanent interest in land. |
27 | 42-9.4-3. Establishment of office -- Appointment and removal of inspector general. |
28 | (a) There is hereby established an office of inspector general, (hereinafter referred to as the |
29 | "office"). There shall be in the office an inspector general, who shall be the administrative head of |
30 | the office and who shall be appointed by a majority vote of the governor, the attorney general, the |
31 | general treasurer, the lieutenant governor, secretary of state, the speaker and the minority leader of |
32 | the house of representatives and the president and minority leader of the senate for a five (5) year |
33 | term to begin July 1 and end June 30, five (5) years later. The appointee shall serve one term only. |
34 | The person so appointed shall be selected without regard to political affiliation and with a |
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1 | demonstrated ability in more than one of the following areas: accounting, auditing, financial |
2 | analysis, law, management analysis, public administration, investigation and criminal justice |
3 | administration. |
4 | (b) The selection process of a qualified inspector general shall include at least one public |
5 | forum. If an inspector general is not selected within one month of a new inspector general term, the |
6 | governor shall appoint an inspector general. The inspector general shall have at least five (5) years |
7 | experience in accounting, criminal justice, or a closely related profession and a bachelor’s degree |
8 | from an accredited college or university with a major in accounting, criminal justice, or a closely |
9 | related field of study. |
10 | (c) No inspector general shall hold, or be a candidate for, any other elective or appointed |
11 | public office while an inspector general and for one year prior. No inspector general shall hold a |
12 | position in any political party or political committee, or participate in any political campaign of any |
13 | candidate for public office while an inspector general. |
14 | (d) In case of a vacancy in the position of inspector general, their successor shall be |
15 | appointed in the manner described in subsections (a) and (b) of this section, and shall serve from |
16 | their date of appointment until the fifth June 30 following their appointment. If this vacancy is not |
17 | filled within one month, then the governor shall appoint an inspector general. |
18 | (e) The person so appointed may be removed from office for cause by a two-thirds (2/3) |
19 | vote of the governor, the attorney general, the general treasurer, the lieutenant governor, secretary |
20 | of state, the speaker and the minority leader of the house of representatives and the president and |
21 | minority leader of the senate. Cause may include substantial neglect of duty, gross misconduct or |
22 | conviction of a crime whether or not it is work related. The reasons for removal of the inspector |
23 | general shall be stated in writing and shall include the basis for such removal. The writing shall be |
24 | a public document. The inspector general shall have ten (10) days to submit a written appeal, which |
25 | shall be a public document. If no appeal is made, the inspector general shall be dismissed from |
26 | office. If an appeal is made, a vote shall be taken in the senate and two-thirds (2/3) vote of the |
27 | senate shall be required to dismiss the inspector general. |
28 | 42-9.4-4. Employees -- Appointment and removal, salaries, qualifications. |
29 | (a) The inspector general may appoint and remove such employees as deemed necessary |
30 | to perform the duties of the office, including, but not limited to, assistant inspectors general, chief |
31 | and deputy counsels, clerks, paralegals, accountants, auditors, financial management analysts and |
32 | investigators. The inspector general may determine their salaries and duties; provided, however, |
33 | that the total amount of all such salaries shall not exceed the sum appropriated therefor by the |
34 | general assembly. |
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1 | (b) The inspector general shall file an annual personnel report not later than the first |
2 | Wednesday in February with the senate and house finance committees containing the job |
3 | classifications, duties and salary of each officer and employee within the office together with |
4 | personnel regulations applicable to said officers and employees. The inspector general shall file |
5 | amendments to such report with the senate and house finance committees whenever any change |
6 | becomes effective. |
7 | (c) No officer or employee of the office of inspector general shall hold, or be a candidate |
8 | for, any elective public office while an officer or employee, or for one year thereafter, nor shall |
9 | they hold a position in any political party or political committee, or participate in any political |
10 | campaign of any candidate for public office while an officer or employee. |
11 | 42-9.4-5. Inspector general -- Salary and budget. |
12 | The general assembly shall annually set the salary of the inspector general and shall |
13 | appropriate sufficient funds for the total budget for the office. |
14 | 42-9.4-6. Rules and regulations. |
15 | The office shall, pursuant to the provisions of chapter 35 of title 42, ("administrative |
16 | procedures act"), promulgate rules and regulations which shall govern its proceedings. |
17 | 42-9.4-7. Duties. |
18 | (a) The inspector general shall supervise, coordinate and/or conduct audits, criminal, civil |
19 | and administrative investigations and inspections or oversight reviews, when necessary, relating to |
20 | programs and operations listed in § 42-9.4-1. The inspector general shall review laws and |
21 | regulations relating to programs and operations listed in § 42-9.4-1 and shall determine if public |
22 | bodies listed in § 42-9.4-1 are in compliance, and shall make recommendations concerning the |
23 | effect of such laws or regulations on the prevention and detection of fraud, waste and abuse. The |
24 | inspector general may recommend policies that will assist in the prevention or detection of fraud, |
25 | waste and abuse and mismanagement. The person in charge of, or the governing body of any public |
26 | body listed in § 42-9.4-1, may request the assistance of the inspector general with respect to |
27 | implementation of any reviews, audits, and/or investigations as deemed appropriate, and implement |
28 | suggested policy or procedure changes. In such events the inspector general may assign personnel |
29 | to conduct, supervise, or coordinate such activity as deemed necessary and appropriate to perform |
30 | their duties in a diligent and prudent manner. The inspector general may recommend policies for |
31 | the conduct, supervision or coordination of relationships, between state and municipal agencies and |
32 | other state and local governmental agencies, as well as federal governmental agencies and |
33 | nongovernmental entities with respect to all matters relating to the prevention and detection of |
34 | fraud, waste, abuse and mismanagement in or relating to any and all programs and activities of the |
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1 | state of Rhode Island as set forth in § 42-9.4-1. |
2 | (b) The inspector general shall establish and maintain an information system to receive |
3 | communications from the general public relating to the duties of the office to guarantee the |
4 | anonymity of the individual supplying the information consisting of the transmission by email, |
5 | regular mail or other electronic system that does not involve the use of a telephone line. |
6 | 42-9.4-8. Inspection of records and papers –Investigations – Subpoenas. |
7 | Inspection of records and papers –Investigations – Subpoenas. |
8 | (a) The inspector general, in carrying out the duties outlined in this chapter, shall have |
9 | access to all records, reports, audits, reviews, papers, books, documents, recommendations, |
10 | correspondence, including information relative to the purchase of services or anticipated purchase |
11 | of services from any contractor by any public body set forth in § 42-9.4-1, and any other data and |
12 | material that is maintained by or available to any public body, regardless of the media in which it |
13 | is maintained which is, in any way, related to the programs and operations with respect to the state |
14 | of Rhode Island, including any local town, municipality or city. |
15 | (b) The inspector general may request information, cooperation and assistance from any |
16 | state or local governmental agency as may be necessary for carrying out their duties and |
17 | responsibilities. Upon receipt of such request, each person in charge of, or the governing body of |
18 | any public body set forth in § 42-9.4-1, shall furnish to the inspector general or their authorized |
19 | agent or representative such information, cooperation and assistance, including information relative |
20 | to the purchase of services or anticipated purchase of services from any contractor by any public |
21 | body within ten (10) business days of receipt of the inspector general’s request. If the request for |
22 | the information requested cannot be complied with, within ten (10) business days, the senior official |
23 | of the governmental agency shall notify the inspector general before the expiration of the ten (10) |
24 | business days as to the reason that the request cannot be complied within the time frame of this |
25 | section, and shall provide a specific date for expected compliance. |
26 | (c) The inspector general may initiate and conduct investigations, audits and compliance |
27 | reviews, and shall prepare detailed reports relating to findings and conclusions concerning the |
28 | administration of the programs and operations of the applicable public bodies listed in § 42-9.4-1, |
29 | as are in the judgment of the inspector general necessary and may conduct an examination of any |
30 | public documents, and any information with respect to whether internal quality controls are in place |
31 | and operating. |
32 | (d) The inspector general shall have direct and prompt access to the head of any public |
33 | body set forth in § 42-9.4-1 when necessary for any purpose pertaining to the performance of their |
34 | duties and responsibilities under this chapter. |
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1 | (e) The inspector general may request the production, on a voluntary basis, of testimony or |
2 | documents from any individual, firm or nongovernmental entity which relate to actions or matters |
3 | that pertain to state or municipal governmental agencies as dictated by their duties and |
4 | responsibilities. |
5 | (f)(1) The inspector general may issue a subpoena for the production of all records, reports, |
6 | audits, reviews, papers, books, documents, recommendations, correspondence and any other data |
7 | and material relevant to any matter under audit or investigation pursuant to the provisions of this |
8 | chapter, no matter in which media the information is maintained. |
9 | (2) A subpoena may be issued only when a person, corporation or other entity under |
10 | investigation or being audited refuses to voluntarily comply with a request from the inspector |
11 | general. |
12 | (3) The subpoena shall be served in the same manner as a subpoena for the production of |
13 | documents in civil cases issued on behalf of the state of Rhode Island, and all provisions of law |
14 | relative to the subpoena shall apply to a subpoena issued pursuant to this chapter. Any justice of |
15 | the superior court may, upon application by the inspector general, issue an order to compel the |
16 | production of records, reports, audits, reviews, papers, books, documents, recommendations, |
17 | correspondence, and any other data and material as aforesaid in the same manner and to the same |
18 | extent as before said superior court. Any failure to obey the order may be punished by the superior |
19 | court as a contempt of court. |
20 | (4) Any subpoena issued pursuant to this section shall not be made public by the inspector |
21 | general or any officer or employee of that office, nor shall any documents or records provided |
22 | pursuant to this section be made public until such time as it is necessary for the inspector general |
23 | to do so in the performance of their official duties. The production of documents or records pursuant |
24 | to subpoena shall be governed by the same provisions with reference to secrecy, which govern the |
25 | proceedings of a grand jury. Disclosure of such production, attendance, and testimony may be made |
26 | to such members of the staff of the office of the inspector general as is deemed necessary in the |
27 | performance of the inspector general's duties and responsibilities under this chapter, and such |
28 | members of the staff may be present at the production of records. |
29 | 42-9.4-9. Subpoena for witness testimony and for release of material evidence. |
30 | (a) Whenever the inspector general has reason to believe that a person has information or |
31 | evidence in their possession with respect to any matter which is within the inspector general’s |
32 | jurisdiction to investigate, a subpoena must issue for the attendance and testimony under oath of |
33 | any person as designated, or the surrender of identified items of evidence; provided, however, that |
34 | the subpoena may be issued by the inspector general only in the performance of official duties |
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1 | relating to the detection of fraud, waste, abuse and mismanagement. The subpoena for testimony |
2 | or specific items identified as needed in support of an investigation shall include: the name and |
3 | address of the prospective witness or specific items identified as needed for the investigation and |
4 | the reasons for requesting a subpoena for testimony or production of items deemed necessary to |
5 | support the investigation. |
6 | (b) The inspector general or any other person duly authorized by law shall serve a |
7 | subpoena. Once the subpoena is served, the serving officer shall annotate the time and date served, |
8 | the person served and the location of service. |
9 | (c) A witness required by subpoena to attend and testify under oath and/or produce books |
10 | and records or other items as demanded, shall be given not less than forty-eight (48) hours notice |
11 | of the time and place for the taking of testimony or delivery of subpoenaed items, unless such notice |
12 | shall unduly interfere with the conduct of the investigation. |
13 | (d) The witness, at the time of service of a subpoena, shall be notified of the matter under |
14 | investigation concerning which the witness will be required to testify. A subject of an investigation |
15 | is a person whose conduct is within the scope of the investigation and is suspected of committing |
16 | or being party to an offense under investigation. The failure to furnish the witness with any notice |
17 | or information required to be given by this section shall cause the issued subpoena to be invalid. |
18 | (e) A person subpoenaed to testify under oath shall appear and testify under oath at the |
19 | time and place designated on the subpoena. In addition, the witness shall be notified that they have |
20 | a right to consult with and to have an attorney present at the time the testimony is taken, and that |
21 | they have a constitutional right not to furnish or produce evidence that may tend to incriminate the |
22 | person. |
23 | (f) The terms of any such subpoena shall be reasonable and focused on specific testimony |
24 | or evidence sought and shall directly relate to the matters under investigation. A subpoena issued |
25 | that is broad in nature is not considered valid. No subpoena shall be issued for purposes of |
26 | harassment or for any illegitimate or improper purpose. All constitutional and statutory rights and |
27 | privileges which exist with respect to any subpoena issued by the inspector general, including the |
28 | privilege against self-incrimination, shall have the same force and effect with any and all existing |
29 | laws and constitutional rights. |
30 | (g) A subpoenaed person may object to the subpoena served upon them in advance of the |
31 | return date of the subpoena by a motion to quash filed in the superior court of the state of Rhode |
32 | Island. The filing of a motion to quash shall stay all pending subpoenas until further order of the |
33 | superior court. Any justice of the superior court may, upon application by the inspector general, |
34 | issue an order to compel the attendance of witnesses subpoenaed, and the giving of testimony under |
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1 | oath in furtherance of any audit or investigation under this chapter in the same manner and to the |
2 | same extent as before the superior court. Failure to obey any order of the court with respect to a |
3 | subpoena may be punished by the court as contempt. |
4 | (h) Any subpoena issued pursuant to this section shall not be made public by the inspector |
5 | general or any persons subject to their direction or by any member of the inspector general's office |
6 | designated to hear testimony under this section, and the same provisions with reference to secrecy, |
7 | which govern grand jury proceedings, shall govern testimony given. Whoever violates the |
8 | provisions of this subsection shall be punished by imprisonment for not more than six (6) months |
9 | or by a fine of not more than one thousand dollars ($1,000). Disclosure of such testimony may be |
10 | made to such members of the staff of the office of inspector general as is deemed necessary by the |
11 | inspector general to assist in the performance of the office's duties and responsibilities and such |
12 | members of the staff may be present at the taking of such testimony. |
13 | 42-9.4-10. Compact – Investigation. |
14 | (a) The inspector general shall accept and may investigate or audit complaints or |
15 | information from any individual concerning the possible existence of any activity constituting |
16 | fraud, waste, abuse and mismanagement relating to programs and operations as set forth in § 42- |
17 | 9.4-1. |
18 | (b) The inspector general shall not, after receipt of a complaint or information from an |
19 | employee, contractor or private citizen who requests confidentiality, disclose the identity of that |
20 | individual without the written consent of said individual, unless the inspector general determines |
21 | such disclosure is necessary and unavoidable during the course of an investigation. In such event, |
22 | the individual shall be notified immediately of the disclosure. The inspector general shall set up an |
23 | anonymous hotline for reporting possible wrongdoings. |
24 | (c) Employees are protected under chapter 50 of title 28, the ("Rhode Island |
25 | Whistleblower's Protection Act"). |
26 | 42-9.4-11. Reports to the attorney general or United States Attorney. |
27 | (a) In carrying out their duties and responsibilities, the inspector general shall report to the |
28 | attorney general, the United States Attorney or both whenever the inspector general has reasonable |
29 | grounds to believe there has been a violation of federal or state criminal law. The attorney general |
30 | shall institute appropriate proceedings in the furtherance of completing an investigation and, if |
31 | warranted, refer a matter for prosecution. |
32 | (b) The inspector general shall refer audit or investigative findings to the state ethics |
33 | commission, or to any other federal, state or local agency, which has an interest in said findings. |
34 | (c) Any referrals made under this section shall not be made public. |
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1 | 42-9.4-12. Coordination with other state agencies. |
2 | The inspector general may coordinate with other state agencies that are responsible for |
3 | investigating, auditing, reviewing or evaluating the management of state agencies for the purpose |
4 | of sharing information and avoiding duplication of effort. |
5 | 42-9.4-13. Civil actions. |
6 | The inspector general shall have the authority to institute a civil recovery action if |
7 | authorized by the attorney general. In any case where the inspector general has discovered |
8 | fraudulent acts and believes that civil recovery proceedings may be appropriate, the matter shall be |
9 | referred to the attorney general. The attorney general may institute whatever proceedings deemed |
10 | appropriate, may refer the matter to another state or local agency, may authorize the initiation of |
11 | appropriate civil proceedings by the inspector general, may retain the matter for further |
12 | investigation, or may remand the matter to the inspector general for further investigation. |
13 | 42-9.4-14. Annual and interim reports. |
14 | (a) The office of inspector general shall, no later than April 1 of each year, prepare a report |
15 | summarizing the activities of the office for the prior calendar year. The office may also prepare |
16 | interim reports. These reports shall be forwarded to the governor, lieutenant governor, attorney |
17 | general, secretary of state, general treasurer and the general assembly, and shall be made available |
18 | to the public. |
19 | (b) The report shall include, but not be limited to: |
20 | (1) A description of significant problems in the areas of fraud, waste and abuse within |
21 | programs and operations within the jurisdiction of the office; |
22 | (2) A description of the recommendations for corrective action made by the office during |
23 | the reporting period with respect to significant deficiencies in the areas of fraud, waste and abuse; |
24 | (3) The identification of each significant recommendation described in previous annual |
25 | reports on which corrective action has not been completed; |
26 | (4) A summary of matters referred to prosecuting authorities and the prosecutions and |
27 | convictions which have resulted; |
28 | (5) A summary of any matters concerning the recovery of monies as a result of a civil suit |
29 | by the office or a referral to another agency for the purposes of such suit; and |
30 | (6) A list of all audit reports completed by the office during the reporting period and a |
31 | statement of recommendations of amendments to this chapter or the rules, regulations or procedures |
32 | governing the office of inspector general which would improve the effectiveness or the operation |
33 | of the office. |
34 | (c) The head or governing body of each public body may, within sixty (60) days of receipt, |
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1 | comment upon any references to the public body contained within the report. The comment, if any, |
2 | shall be forwarded to the governor, the attorney general, the general assembly and the office of |
3 | inspector general. |
4 | (d) The report of the inspector general shall be made public on the day of filing; provided, |
5 | that the report shall not list the names of individuals or corporations, nor describe them with |
6 | sufficient particularity as to readily identify them to the general public in those cases in which no |
7 | official disposition has been made by the office of inspector general, the department of the attorney |
8 | general or the local office of the United States Attorney. |
9 | SECTION 2. This act shall take effect upon passage. |
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EXPLANATION | |
BY THE LEGISLATIVE COUNCIL | |
OF | |
A N A C T | |
RELATING TO STATE AFFAIRS AND GOVERNMENT -- INSPECTOR GENERAL | |
*** | |
1 | This act would establish the office of inspector general as an independent administrative |
2 | agency charged with the responsibility to investigate, detect, and prevent fraud, waste, abuse, and |
3 | mismanagement in the expenditure of public funds. |
4 | This act would take effect upon passage. |
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