Creates the office of the state ombuds in the office of the governor. The office will be readily available to the public, responsible to the legislature, and empowered to investigate the acts of state administrative agencies; and will recommend appropriate changes toward the goals of safeguarding the rights of persons and promote higher standards of competency, efficiency, and justice in the administration of state laws.

Requires the office of financial management to study the duties and salary of the chief executive officer of the office of the state ombuds.

Transfers certain functions and duties of the following to the office of the state ombuds: The office of the family and children's ombuds, the office of the education ombuds, the office of the state long-term care ombuds, the office of the developmental disabilities ombuds, and the office of the ombuds for workers of industrial insurance self-insured employers.

Exempts the following from public inspection and copying under the public records act: Records and files maintained by the state ombuds, other than final investigation reports.