Establishes an Office of Inspector General (OIG); outlines powers and duties of the office; creates procedures for reporting suspected fraud, misuse, and other unlawful uses of state funds by any entity the receives, disburses, or has custody of such funds; establishes a website and phone hotline to report suspected fraud or misuse of state funds; provides temporary sanctions, including withholding of payment; requires periodic reports to the Legislature and Legislative Audit Commission; establishes data protection practices; prohibits retaliation; requires nonprofits that receive state grants to highlight fraud reporting tools on the organization's website; requires at least one in-person unannounced monitoring visit before final payment of any grant over $50,000, and potentially more for grants over $250,000; requires funds be withheld from any grantee that does not submit a progress report required by the grant agreement, with exceptions; provides for suspension of grants if recipient is charged with a criminal offense relating to a state grant agreement, and terminated upon conviction.