Provides that, within existing funds, the state auditor must establish a toll-free telephone line that is available to public employees and members of the public to recommend measures to improve efficiency in state government and to report waste, inefficiency, or abuse by state agencies, state employees, or persons under contract with state agencies.

Requires the state auditor to prepare an annual report and submit the report to the legislature and to the appropriate legislative committees. The report must describe the number, nature, and resolution of reports made through the hotline and identify savings resulting from improved efficiencies or the elimination of waste or abuse resulting from reports received and investigations conducted under this act.