BILL ANALYSIS                                                                                                                                                                                                    



                                                                AB 1493
                                                                Page  1

        ASSEMBLY THIRD READING
        AB 1493 (Keeley)
        As Amended May 3, 2001
        Majority vote

         RULES               7-0                                               
         
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        |Ayes:|Cardoza, Leonard, Horton, |     |                          |
        |     |Aanestad, Liu, Nation,    |     |                          |
        |     |Frommer                   |     |                          |
        |-----+--------------------------+-----+--------------------------|
        |     |                          |     |                          |
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         SUMMARY  :  Clarifies the duties of the State Auditor and the Bureau of  
        State Audits (BSA) 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 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.







                                                                AB 1493
                                                                Page  2


        In 1993, Senators Maddy and Roberti authored SB 37 (Chapter 12,  
        Statutes of 1993), which created BSA 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 JLAC by a vote of at least a majority of the  
        committee membership from each house of the Legislature.  SB 37  
        provided that BSA 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 BSA to conduct  
        audits and investigations of public entities requested by 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

         Analysis Prepared by  :    Lia Lopez / RLS. / (916)319-2800   FN:  
        0001563