BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 1493| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 445-6614 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: AB 1493 Author: Keeley (D) Amended: 5/3/01 in Assembly Vote: 21 SENATE GOVERNMENTAL ORG. COMMITTEE : 13-0, 7/10/01 AYES: Vincent, Johnson, Brulte, Chesbro, Dunn, Johannessen, Karnette, Knight, Machado, Morrow, O'Connell, Perata, Soto ASSEMBLY FLOOR : 75-0, 6/6/01 - See last page for vote SUBJECT : Bureau of State Audits SOURCE : State Auditor DIGEST : This bill clarifies the duties of the State Auditor and the Bureau of State Audits (BSA), by cleaning up statutory references. The bill deletes obsolete references to the Auditor General and, where the duty has been assumed by the State Auditor, corrects the reference. This bill also makes various other technical and non-substantive changes. ANALYSIS : Existing law establishes the Bureau of State Audits under the Direction of the Milton Marks Commission on California State Government Organization and Economy, and generally provides that all references to the Auditor General or the office of the Auditor General concerning the conducting of audits will be deemed to refer directly to these two parties. CONTINUED AB 1493 Page 2 Background 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 so the Legislature would be informed independently as to whether such statements presented 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. In Addition, 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, 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 must 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 AB 1493 Page 3 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. The author is carrying this bill to delete obsolete references to the Auditor General and, where the duty has been assumed by the State Auditor, correct the reference. The bill also makes other technical and non-substantive changes. Prior legislation SB 37 (Maddy) Chapter 12, Statutes of 1993. Essentially, this measure created the Bureau of State Audits in state government under the Milton Marks Commission on California State Government Organization and Economy (the Little Hoover Commission). Transferred all functions of the then existing State Auditor General to the new Bureau of State Audits as specified. FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local: No SUPPORT : (Verified 7/11/01) State Auditor (source) ASSEMBLY FLOOR : AYES: Aanestad, Alquist, Aroner, Ashburn, Bates, Bogh, Briggs, Calderon, Bill Campbell, Canciamilla, Cardenas, Cardoza, Cedillo, Chan, Chavez, Chu, Cogdill, Cohn, Corbett, Correa, Cox, Daucher, Diaz, Dickerson, Dutra, Firebaugh, Florez, Frommer, Goldberg, Harman, Havice, Hollingsworth, Horton, Jackson, Keeley, Kehoe, Kelley, Koretz, La Suer, Leach, Leslie, Liu, Longville, Lowenthal, Maddox, Maldonado, Matthews, Migden, Mountjoy, Nakano, Nation, Negrete McLeod, Oropeza, Robert Pacheco, Rod Pacheco, Papan, Pavley, Pescetti, Richman, Runner, Salinas, Shelley, Simitian, Steinberg, Strickland, Strom-Martin, Thomson, Vargas, Wayne, Wesson, Wiggins, Wright, Wyland, Wyman, Hertzberg AB 1493 Page 4 TSM:sl 6/25/02 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END ****