BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1493
                                                                  Page  1

          Date of Hearing:   June 5, 2001

                             ASSEMBLY COMMITTEE ON RULES
                                Dennis Cardoza, Chair
                     AB 1493 (Keeley) - As Amended:  May 3, 2001
           
          SUBJECT  : Bureau of State Audits: clarification of duties. 

           SUMMARY  : Clarifies the duties of the State Auditor and Bureau of  
          State Audits by cleaning-up statutory references.    
          Specifically,  this bill  : 

             1) Deletes obsolete references to the Auditor General and,  
             where the duty has been assumed by the State Auditor,  
             corrects the reference.

           1) Makes various other technical and non-substantive changes.

           EXISTING LAW  : In 1955, the Legislature created the Joint  
          Legislative Audit Committee (JLAC) and the Office of the Auditor  
          General.  The Auditor General and his/her staff held exempt  
          positions and were classified as employees of the State  
          Legislature.  It was the duty of the Auditor General to examine  
          and report upon the financial statements of state funds prepared  
          by the executive branch of the state to the end that the  
          Legislature will be informed independently as to whether such  
          statements present fairly the financial position of state funds  
          and the results of their operations.  In addition, it was the  
          duty of the Auditor General to make such special audits and  
          investigations of any agency, whether created by Constitution or  
          otherwise, as may be requested by the Legislature or any  
          committee of the Legislature through the JLAC.

          As of December 4, 1992, the Office of Auditor General became  
          nonexistent.  The Office of Auditor General and the Legislative  
          Analyst's Office were both severely reduced due to Proposition  
          140 (legislative term limits).  

          AB 1944 (Chapter 1, Statutes of 1992) provided monetary relief  
          to the Auditor General's office for the 1991-92 fiscal year.   
          SCA 34 by former Senator Maddy, which would have established the  
          Office of the Auditor General, was defeated at the 1992 November  
          General Election.

          In 1993, Senators Maddy and Roberti authored SB 37 (Chapter 12,  








                                                                  AB 1493
                                                                  Page  2

          Statutes of 1993), which created the Bureau of State Audits  
          under the Little Hoover Commission, headed by the State Auditor  
          who would be appointed by the Governor to a four-year term from  
          a list of three qualified individuals submitted by the JLAC by a  
          vote of at least a majority of the committee membership from  
          each house of the Legislature.  SB 37 provided that the bureau  
          shall examine and report annually upon the financial statements  
          prepared by the executive branch of the state; perform other  
          related assignments, including performance audits, that are  
          mandated by statute; and administer the Reporting of Improper  
          Governmental Activities Act.  It further required the bureau to  
          conduct audits and investigations of public entities requested  
          by the JLAC  to the extent that funding is available.  While SB  
          37 retained much of the law concerning the duties and powers of  
          the Auditor General, it did not change all references in code  
          from Auditor General to State Auditor.



           FISCAL EFFECT  :   Unknown.

           COMMENTS  :   None.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          None on file.

           Opposition 
           
          None on file.
           
          Analysis Prepared by  :    Lia Lopez / RLS. / (916)319-2800