Transfers powers, duties, and functions of the department of social and health services division of fraud investigation pertaining to the investigation of fraud and abuse and certain other duties to the division of special investigations of the state auditor's office.

Creates the division of special investigations within the state auditor's office to: (1) Conduct and supervise independent and objective investigations relating to allegations of fraud or abuse in any program or service administered by the department of social and health services;

(2) Provide leadership and coordination in recommending policies and procedures designed to detect and prevent fraud and abuse; and

(3) Make recommendations to the auditor and the legislature about vulnerabilities and deficiencies relating to the detection and prevention of fraud or abuse as may be discovered as a result of completed investigations conducted or coordinated by the division.