It places a duty of candour on Police Scotland officers and the force itself in relation to complaints, while also allowing misconduct procedures to be applied even if someone has left the police.
The legislation also creates an “advisory list” and a “barred list” of people who have been subject to police misconduct procedures.
A total of 116 MSPs voted in favour of the Bill with one abstention and no opposing votes.
Holyrood’s Justice Committee has previously backed the general principles of the Bill, but questioned the impact it would have in reducing the length of time it takes to progress complaints against the police.
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In the Scottish Parliament on Wednesday, Conservative MSP Douglas Ross submitted an amendment which required complainers to be given more information including the outcome of their complaint and the name of officers involved.
He said: “The system at the moment is not delivering for complainers.”
The former Scottish Tory leader said he had recently met with the family of murdered Nairn banker Alistair Wilson – who are still waiting for justice more than 20 years after his death.
Mr Ross said the family have been unhappy with the way their complaint about a senior officer has been dealt with.
However, Justice Secretary Angela Constance said a “lack of safeguards” meant Mr Ross’ amendment could not go ahead.
Police officers names’ could be made public even in cases of malicious complaints, she argued, saying the Government will instead encourage the police to communicate outcomes of cases.
Mr Ross accepted this and decided not to press his amendment.
Urging MSPs to back the Bill, Ms Constance said: “The Bill will ensure that the police complaints and misconduct systems are fairer, more transparent, accountable and proportionate which will ultimately help to strengthen public confidence in policing in Scotland.”
The Government also said the Bill’s provisions on police vetting are crucial, as they place vetting on a statutory footing and maintain the practice throughout police officers’ careers.
A separate review by Dame Elish – following the murder of Sarah Everard by serving Met Police officer Wayne Couzens – had expressed concern about the lack of periodic re-vetting in English and Welsh forces.
The Scottish Government said their Bill ensures a consistent approach will now be taken across Great Britain.