AR SB492

Creates an independent Office of the Inspector General for the Department of Human Services within the Governor's office, headed by an Inspector General appointed by the Governor with Senate confirmation for renewable 8-year terms.

Increases criminal penalties for theft of public benefits including minimum imprisonment from 7 to 30 days for second offense, 90 to 180 days for third offense, and 1 to 2 years for fourth or subsequent offense; increases fines from $150 to $500 for first offense, $400 to $1,000 for second, and $900 to $2,500 for third or subsequent offense.

Establishes the offense of misuse of state property as a Class B felony when elected or appointed officials, state employees, or independent contractors use state property for private purposes to obtain pecuniary benefit of $500 or more.

Grants the Inspector General authority to investigate fraud, waste, abuse, corruption, and criminal violations within the department; issue subpoenas; deputize attorneys to prosecute violations; and require quarterly reporting to the Governor, President Pro Tempore, and Speaker on investigative activities and recoveries.

Transfers existing detection, prevention, and recovery functions related to fraud from department divisions to the new Inspector General office to consolidate oversight and streamline the process for combating illegal behavior.