BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 540
                                                                  Page  1

          Date of Hearing:   April 29, 2008

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                AB 540 (Monning) - As Introduced:  February 25, 2009 

          Policy Committee:                              Business and  
          Professions  Vote:                            9 - 0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill requires the Bureau of State Audits (BSA) to provide  
          the Department of Finance (DOF) with BSA's budget each year.  In  
          addition, it requires DOF to include the budget, without  
          modification, in the governor's annual budget. 

           FISCAL EFFECT  

          Negligible costs.

           COMMENTS  

           Purpose . The intent of this legislation is to clarify existing  
          law that BSA proposes their budget, and the Legislature has the  
          authority to approve and modify the budget.  The governor's role  
          in the budgeting process should be strictly to provide the  
          submitted budget information with his or her annual budget.  

          According to the sponsor, the Bureau of State Audits, this bill  
          is necessary to streamline the BSA budget process by clarifying  
          DOF's role.  To further strengthen the provisions of current  
          law, this bill codifies a memorandum of understanding from 1994  
          between DOF and BSA that states that DOF will advise and assist  
          BSA on budget issues, preparation and format, and will include  
          the bureau's budget as submitted in the annual Governor's  
          Budget.  BSA believes this legislation is necessary to ensure  
          that their independence is safeguarded.

          In a letter to the author, the State Auditor writes, "The  
          exemptions from executive branch controls are essential in  
          fulfilling the independence requirements of Government Auditing  








                                                                  AB 540
                                                                  Page  2

          Standards that my office must abide by. . . . Over the years, my  
          office has had to devote time and effort to ensure that our  
          independence is safeguarded during the budget process.  We  
          believe the language in this bill is necessary to ensure that  
          our budget process is efficient and does not infringe upon the  
          integrity of my office's independence." 


           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916)  
          319-2081