BILL NUMBER: AB 1891	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 21, 2010
	AMENDED IN SENATE  MAY 27, 2010

INTRODUCED BY    Committee on Higher Education 
 (   Portantino (Chair), Block, Cook, Fong,
Galgiani, Huber, Ma, and Ruskin   )  
Assembly Member   Portantino 

                        FEBRUARY 16, 2010

    An act to add Article 8 (commencing with Section 550) to
Chapter 3 of Part 1 of Division 1 of the Food and Agricultural Code,
relating to agriculture.   An act to amend Sections
8543, 8543.1, 8543.2, 8543.3, 8543.5, 8543.6, 8543.7, 8544, 8544.4,
8544.5, 8545, 8545.1, 8545.2, 8545.3, 8545.4, 8545.5, 8546, 8546.1,
8546.2, 8546.3, 8546.4, 8546.5, 8546.6, 8546.7, 8546.8, 8547.4,
8547.5, 8547.6, 8547.7, 8547.11, 8548.1, 8548.2, 8548.4, and 8548.9
of, and to amend the heading of Chapter 6.5 (commencing with Section
8543) of Division 1 of Title 2 of, the Government Code, relating to
state government. 



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1891, as amended,  Committee on Higher Education
  Portantino  .  Sustainable agriculture
research: agricultural chemicals.   State government:
Bureau of State Audits and Inspector General.  
   Existing law establishes the Bureau of State Audits under the
direction of the Milton Marks "Little Hoover" Commission on
California State Government Organization and Economy. Existing law
provides that the duties of the bureau are to examine and report
annually upon financial statements prepared by the executive branch
and to perform other related assignments, including performance
audits, mandated by statute.  
   This bill would rename the bureau the Bureau of State Audits and
Inspector General and specify certain duties that the renamed bureau
is to undertake as part of its existing responsibilities, relating to
the investigation, review, and auditing of state entities under its
jurisdiction. The bill would make conforming changes to existing law.
 
   Until January 1, 2010, existing law requested the Regents of the
University of California to establish the Sustainable Agriculture
Research and Education Program to support competitive grants to
promote more research and education on sustainable agricultural
practices, and to support the giving of instructions and practical
demonstrations in agriculture.  
   This bill would reestablish this program, except it would not
require the regents to biennially report to the Legislature on the
program. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    The heading of Chapter 6.5 (commencing
with Section 8543) of Division 1 of Title 2 of the  
Government Code   is amended to read: 
      CHAPTER 6.5.  STATE AUDITOR  INSPECTOR GENERAL 


   SEC. 2.    Section 8543 of the   Government
Code   is amended to read: 
   8543.   (a)    There is hereby created in state
government the Bureau of State Audits  and Inspector General
 under the direction of the Milton Marks "Little Hoover"
Commission on California State Government Organization and Economy.
In order to be free of organizational impairments to independence,
the bureau shall be independent of the executive branch and
legislative control. 
   (b) Whenever a reference is made to the "Bureau of State Audits"
by the provisions of any statute or regulation, it shall be construed
as referring to the Bureau of State Audits and Inspector General.

   SEC. 3.    Section 8543.1 of the  
Government Code   is amended to read: 
   8543.1.  The duties of the Bureau of State Audits  and
Inspector General  are to examine and report annually upon the
financial statements prepared by the executive branch of the state
and to perform other related assignments, including performance
audits, that are mandated by statute. For the purposes of this
chapter "bureau" means the "Bureau of State Audits  and Inspector
General  ," unless the context clearly requires otherwise. 
The bureau shall, as part of its existing auditing, administrative,
and investigative duties, detect, investigate, deter, and eliminate
  corruption, fraud, criminal activity, conflicts of interes
  t, abuses of office, and waste in the state entities
under its jurisdiction, including, but not limited to, state
agencies, departments, divisions, offices, boards, and commissions.
The bureau shall vigorously and fairly investigate allegations of
misconduct and conduct audits and systematic reviews of state agency
programs and procedures, and recommend improvements for positive and
permanent reform of agency operations. 
   SEC. 4.    Section 8543.2 of the  
Government Code   is amended to read: 
   8543.2.  (a) The head of the bureau is the State Auditor 
Inspector General  , who shall be appointed by the Governor from
a list of three qualified individuals nominated by the Joint
Legislative Audit Committee by a vote of at least a majority of the
committee membership from each house of the Legislature. The term of
any individual appointed as the State Auditor  Inspector General
 shall be four years. Any vacancy in the office shall be filled
in the same manner provided by this subdivision for a full term.
   (b) As the head of the bureau, the State Auditor  Inspector
General  may establish constituent parts of the bureau to carry
out the powers and duties of the bureau unless otherwise specified by
law.
   (c) The bureau has a Chief Deputy State Auditor. 
   (d) The bureau has a Chief Deputy State Inspector General. 
   SEC. 5.    Section 8543.3 of the  
Government Code   is amended to read: 
   8543.3.  The State Auditor  Inspector General  shall be
chosen without reference to party affiliation and solely on the
ground of fitness to perform the duties of the office. Prior to
selection, the State Auditor  Inspector General  shall
possess a combination of education and experience in auditing and
management necessary to perform the duties of the office.
   SEC. 6.    Section 8543.5 of the  
Government Code   is amended to read: 
   8543.5.  The Chief Deputy State Auditor shall be appointed by the
State Auditor  Inspector General  . The Chief Deputy State
Auditor shall carry out those duties prescribed by the State Auditor
 Inspector General  and shall act for the State Auditor 
Inspector General  when the State Auditor  Inspector
General  is absent or unable to serve or when the office of the
State Auditor  Inspector General  is vacant. The tenure of
any incumbent Chief Deputy State Auditor shall expire on any date
that an individual is appointed State Auditor  Inspector G 
 eneral  , but any incumbent Chief Deputy State Auditor may
be reappointed pursuant to this section.
   SEC. 7.    Section 8543.6 of the  
Government Code   is amended to read: 
   8543.6.  The State Auditor  Inspector General  may be
removed for cause at any time by concurrent resolution of the
Legislature. A State Auditor  Inspector General  removed
pursuant to this section may not be reappointed to the office.
   SEC. 8.    Section 8543.7 of the  
Government Code   is amended to read: 
   8543.7.  (a) The annual salary for the State Auditor 
Inspector General  shall be equal to that of agency secretaries
of the executive branch of government pursuant to Section 11550.
   (b) The State Auditor  Inspector General  shall be repaid
all actual expenses incurred or paid by him or her in the discharge
of his or her duties.
   SEC. 9.    Section 8544 of the   Government
Code   is amended to read: 
   8544.  (a) Consistent with subdivision (i) of Section 8546, the
State Auditor  Inspector General  may employ and fix the
compensation, in accordance with Article VII of the California
Constitution, of those professional assistants and technical,
clerical, deputy state auditors, and other officers and employees as
he or she deems necessary for the effective conduct of the work under
his or her charge.
   (b) In establishing and adjusting classes of positions, and
establishing and adjusting salary ranges for each class of position,
to provide for the continued ability to attract and maintain
qualified individuals within the  Bureau of State Audits
  bureau  , consideration shall be given to the
fact that the level of education, experience, knowledge, and ability
required of the employees in the bureau is generally higher than that
of state service generally, due to the unique duties and
responsibilities imposed on the bureau and the relatively small
number of employees.
   (c) When fixing compensation for employees, the State Auditor 
Inspector General  shall consider prevailing rates for
comparable service in other public employment and private business.
   SEC. 10.    Section 8544.4 of the  
Government Code   is amended to read: 
   8544.4.  The permanent office of the State Auditor  Inspector
General  shall be in Sacramento, where he or she shall be
provided with suitable and sufficient offices. When in his or her
judgment the conduct of the work requires, he or she may maintain
offices at other places in the state.
   SEC. 11.    Section 8544.5 of the  
Government Code   is amended to read: 
   8544.5.  (a) There is hereby established in the State Treasury the
State Audit Fund. Notwithstanding Section 13340, the State Audit
Fund is continuously appropriated for the expenses of the State
Auditor  Inspector General  . There shall be appropriated
annually in the Budget Act to the State Audit Fund, from the General
Fund and the Central Service Cost Recovery Fund, the amount necessary
to reimburse the State Audit Fund for the cost of audits to be
performed that are not directly reimbursed under subdivision (c).
"Cost of audits" means all direct and indirect costs of conducting
the audits and any other expenses incurred by the State Auditor 
Inspector General  in fulfilling his or her statutory
responsibilities.
   (b) With regard to the funds appropriated pursuant to subdivision
(a), upon certification by the State Auditor  Inspector General
 of estimated costs on a monthly basis, the Controller shall
transfer the amount thus certified from the General Fund or the
Central Service Cost Recovery Fund, as applicable, to the State Audit
Fund. The Controller shall thereafter issue warrants drawn against
the State Audit Fund upon receipt of claims certified by the State
Auditor  Inspector General  .
   (c) To ensure appropriate reimbursement from federal and special
funds for the costs of the duties performed pursuant to Section
8546.3, the State Auditor  Inspector   General  may
directly bill state agencies for the costs incurred, subject to the
approval of the Director of Finance.
   (d) To ensure adequate oversight of the operations of the bureau,
the Milton Marks "Little Hoover" Commission on California State
Government Organization and Economy shall annually obtain the
services of an independent public accountant to audit the State Audit
Fund and the operation of the bureau to assure compliance with state
law, including Section 8546. The results of this audit shall be
submitted to the commission and shall be a public record.
   (e) To ensure that audits of the Milton Marks "Little Hoover"
Commission on California State Government Organization and Economy
are conducted in conformity with government auditing standards, any
audit of the commission that is required or permitted by law shall be
conducted by the independent public accountant selected pursuant to
subdivision (d).
   SEC. 12.    Section 8545 of the   Government
Code   is amended to read: 
   8545.  The State Auditor  Inspector General  shall not
destroy any papers or memoranda used to support a completed audit
sooner than three years after the audit report is released to the
public. All books, papers, records, and correspondence of the bureau
pertaining to its work are public records subject to Chapter 3.5
(commencing with Section 6250) of Division 7 of Title 1 and shall be
filed at any of the regularly maintained offices of the State Auditor
 Inspector General  , except that none of the following
items or papers of which these items are a part shall be released to
the public by the State Auditor  Inspector General  , his or
her employees, or members of the commission:
   (a) Personal papers and correspondence of any person providing
assistance to the State Auditor  Inspector General  when
that person has requested in writing that his or her papers and
correspondence be kept private and confidential. Those papers and
correspondence shall become public records if the written request is
withdrawn or upon the order of the State Auditor  Inspector
General  .
   (b) Papers, correspondence, memoranda, or any substantive
information pertaining to any audit not completed.
   (c) Papers, correspondence, or memoranda pertaining to any audit
that has been completed, which papers, correspondence, or memoranda
are not used in support of any report resulting from the audit.
   SEC. 13.    Section 8   545.1 of the 
 Government Code   is amended to read: 
   8545.1.  (a) The State Auditor  Inspector General  , and
any employee or former employee of the bureau, shall not divulge or
make known to any person not employed by the bureau in any manner not
expressly permitted by law any particulars of any record, document,
or information the disclosure of which is restricted by law from
release to the public. This prohibition includes, but is not limited
to, the restrictions on the release of records, documents, or
information set forth in Section 8545.
   (b) Subdivision (a) also applies to either of the following:
   (1) Any person or business entity that is contracting with or has
contracted with the bureau and to the employees and former employees
of that person or business entity.
   (2) The officers and employees of and any person or business
entity that is contracting with or has contracted with any state or
local governmental agency or publicly created entity that has
assisted the bureau in the course of any audit or investigation or
that has received a draft copy of any report or other draft document
from the bureau for comment or review.
   (c) Any officer, employee, or person who discloses the particulars
of any record, document, or other information in violation of this
section is guilty of a misdemeanor.
   SEC. 14.    Section 8545.2 of the  
Government Code   is amended to read: 
   8545.2.  (a) Notwithstanding any other provision of law, the State
Auditor  Inspector General  during regular business hours
shall have access to and authority to examine and reproduce, any and
all books, accounts, reports, vouchers, correspondence files, and all
other records, bank accounts, and money or other property, of any
agency of the state, whether created by the California Constitution
or otherwise, any local governmental entity, including any city,
county, and school or special district, and any publicly created
entity, for any audit or investigation. Any officer or employee of
any agency or entity having these records or property in his or her
possession, under his or her control, or otherwise having access to
them, shall permit access to, and examination and reproduction
thereof, upon the request of the State Auditor  Inspector General
 or his or her authorized representative.
   (b) For the purposes of access to and examination and reproduction
of the records and property described in subdivision (a), an
authorized representative of the State Auditor  Inspector General
 is an employee or officer of the state or local governmental
agency or publicly created entity involved and is subject to any
limitations on release of the information as may apply to an employee
or officer of the state or local governmental agency or publicly
created entity. For the purpose of conducting any audit or
investigation, the State Auditor  Inspector General  or his
or her authorized representative shall have access to the records and
property of any public or private entity or person subject to review
or regulation by the public agency or public entity being audited or
investigated to the same extent that employees or officers of that
agency or public entity have access. No provision of law providing
for the confidentiality of any records or property shall prevent
disclosure pursuant to subdivision (a), unless the provision
specifically refers to and precludes access and examination and
reproduction pursuant to subdivision (a). This subdivision does not
apply to records compiled pursuant to Part 1 (commencing with Section
8900) or Part 2 (commencing with Section 10200) of Division 2.
   (c) Any officer or person who fails or refuses to permit access
and examination and reproduction, as required by this section, is
guilty of a misdemeanor.
   SEC. 15.    Section 8545.3 of the  
Government Code   is amended to read: 
   8545.3.  It is a misdemeanor for the State Auditor  Inspector
General  or any employee of the State Auditor  Inspector
General  to release any information received pursuant to Section
10850 of the Welfare and Institutions Code or that is otherwise
prohibited by law to be disclosed.
   SEC. 16.    Section 8545.4 of the  
Government Code   is amended to read: 
   8545.4.  (a) In connection with any audit or investigation
conducted by the State Auditor  Inspector General  , the
State Auditor  Inspector General  or his or her designee,
may do any of the following:
   (1) Administer oaths.
   (2) Certify to all official acts.
   (3) Issue subpoenas for the attendance of witnesses and the
production of papers, books, accounts, or documents, or for the
making of oral or written sworn statements, in any interview
conducted as part of an audit or investigation.
   (b) Any subpoena issued under this section extends as process to
all parts of the state and may be served by any person authorized to
serve process of courts of record or by any person designated for
that purpose by the State Auditor  Inspector General  or his
or her designee. The person serving this process may receive
compensation as allowed by the State Auditor  Inspector General
 or his or her designee, not to exceed the fees prescribed by
law for similar service.
   (c) Notwithstanding Section 7470, 7474, or 7491, subpoenas issued
under this section for financial records of financial institutions
concerning customers of financial institutions or for information
contained in those records shall not be subject to the requirement or
conditions of Section 7474.
   SEC. 17.    Section 8545.5 of the  
Government Code   is amended to read: 
   8545.5.  (a) The superior court in the county in which any
interview is held under the direction of the State Auditor 
Inspector General  or his or her designee has jurisdiction to
compel the attendance of witnesses, the making of oral or written
sworn statements, and the production of papers, books, accounts, and
documents, as required by any subpoena issued by the State Auditor
 Inspector General  or his or her designee.
   (b) If any witness refuses to attend or testify or produce any
papers required by the subpoena, the State Auditor  Inspector
General  or his or her designee may petition the superior court
in the county in which the hearing is pending for an order compelling
the person to attend and answer questions under penalty of perjury
or produce the papers required by the subpoena before the person
named in the subpoena. The petition shall set forth all of the
following:
   (1) That due notice of the time and place of attendance of the
person or the production of the papers has been given.
   (2) That the person has been subpoenaed in the manner prescribed
in Section 8545.4.
   (3) That the person has failed and refused to attend or produce
the papers required by subpoena before the State Auditor 
Inspector General  or his or her designee as named in the
subpoena, or has refused to answer questions propounded to him or her
in the course of the interview under penalty of perjury.
   (c) Upon the filing of the petition, the court shall enter an
order directing the person to appear before the court at a specified
time and place and then and there show cause why he or she has not
attended, answered questions under penalty of perjury, or produced
the papers as required. A copy of the order shall be served upon him
or her. If it appears to the court that the subpoena was regularly
issued by the State Auditor  Inspector General  or his or
her designee, the court shall enter an order that the person appear
before the person named in the subpoena at the time and place fixed
in the order and answer questions under penalty of perjury or produce
the required papers. Upon failure to obey the order, the person
shall be dealt with as for contempt of court.
   SEC. 18.   Section 8546 of the   Government
Code   is amended to read: 
   8546.  It is the intent of the Legislature that the 
Bureau of State Audits   bureau  have the
independence necessary to conduct all of its audits in conformity
with "Government Auditing Standards" published by the Comptroller
General of the United States and the standards published by the
American Institute of Certified Public Accountants, free from
influence of existing state control agencies that could be the
subject of audits conducted by the bureau. Therefore, all of the
following exclusions apply to the office:
   (a) Notwithstanding Section 19790, the State Auditor 
Inspector General  shall establish an equal employment
opportunity program that shall meet the criteria and objectives
established by the State Personnel Board. The State Auditor 
Inspector General  shall report annually to the State Personnel
Board and the commission regarding the program.
   (b) Notwithstanding Section 12470, the State Auditor 
Inspector General  shall be responsible for maintaining its
payroll system. In lieu of audits of the uniform payroll system
performed by the Controller or any other department, the office shall
contract pursuant to subdivision (e) of Section 8544.5 for an annual
audit of its payroll and financial operations by an independent
public accountant.
   (c) Notwithstanding Section 13292, the State Auditor 
Inspector General  is delegated the authority to establish and
administer the fiscal and administrative policies of the bureau in
conformity with the State Administrative Manual without oversight by
the Department of Finance, the Department of Information Technology,
or any other state agency.
   (d) Notwithstanding Section 11032, the State Auditor 
Inspector General  may approve actual and necessary traveling
expenses for travel outside the state for officers and employees of
the bureau.
   (e) Notwithstanding Section 11033, the State Auditor 
Inspector General  or officers and employees of the bureau may
be absent from the state on business of the state upon approval of
the State Auditor  Inspector General  or Chief Deputy State
Auditor.
   (f) Sections 11040, 11042, and 11043 shall not apply to the Bureau
of State Audits. The State Auditor  Inspector General  may
employ legal counsel under those terms that he or she deems necessary
to conduct the legal business of, or render legal counsel to, the
State Auditor  Inspector General  .
   (g) The provisions and definitions of Article 2 (commencing with
Section 11342.510) of Chapter 3.5 of Division 3 shall not be
construed to include the Bureau of State Audits. The State Auditor
 Inspector General  may adopt regulations necessary for the
operation of the bureau pursuant to the provisions of the
Administrative Procedure Act (Chapter 3.5 (commencing with Section
11340) of Division 3), but these regulations shall not be subject to
the review or approval of the Office of Administrative Law.
   (h) The State Auditor  Inspector General  shall be exempt
from all contract requirements of the Public Contract Code that
require oversight, review, or approval by the Department of General
Services or any other state agency. The State Auditor  Inspector
General  may contract on behalf of the State of California for
goods and services that he or she deems necessary for the furtherance
of the purposes of the bureau.
   (i) (1) Subject to Article VII of the California Constitution, the
State Auditor  Inspector General  is delegated the
authority to establish and administer the personnel policies and
practices of the Bureau of State Audits in conformity with Part 2.6
(commencing with Section 19815) of Division 5 of Title 2 without
oversight or approval by the Department of Personnel Administration.
   (2) At the election of the State Auditor  Inspector General
 , officers and employees of the bureau may participate in
benefits programs administered by the Department of Personnel
Administration subject to the same conditions for participation that
apply to civil service employees in other state agencies. For the
purposes of benefits programs administration only, the State Auditor
 Inspector General  is subject to the determinations of the
department. The Bureau of State Audits shall reimburse the Department
of Personnel Administration for the normal administrative costs
incurred by the Department of Personnel Administration and for any
extraordinary costs resulting from the inclusion of the bureau
employees in these state benefit programs.
   SEC. 19.    Section 8546.1 of the  
Government Code   is amended to read: 
   8546.1.  (a) The State Auditor  Inspector General  shall
conduct financial and performance audits as directed by statute. The
State Auditor  Inspector General  may conduct these audits
of any state agency as defined by Section 11000, whether created by
the California Constitution or otherwise, any local governmental
agency, including any city, county, and school or special district,
or any publicly created entity. However, the State Auditor 
Inspector General  shall not audit the activities of the Milton
Marks Commission on California State Government Organization and
Economy or the Legislature to assure compliance with government
auditing standards.
   (b) The State Auditor Inspector General  shall conduct
any audit of a state or local governmental agency or any other
publicly created entity that is requested by the Joint Legislative
Audit Committee to the extent that funding is available and in
accordance with the priority established by the committee with
respect to other audits requested by the committee. Members of the
Legislature may submit requests for audits to the committee for its
consideration and approval. Any audit request approved by the
committee shall be forwarded to the State Auditor  Inspector
General as a committee request.
   (c) The State Auditor  Inspector General  shall complete
any audit in a timely manner and in accordance with the "Government
Auditing Standards" published by the Comptroller General of the
United States.
   (d) Immediately upon completion of the audit, the State Auditor
 Inspector General  shall transmit a copy of the audit
report to the commission. Not later than 24 hours after delivery to
the commission, the State Auditor  Inspector General  shall
deliver the report to the Legislature, appropriate committees or
subcommittees of the Legislature, and the Governor. Once transmitted
to these parties, the report shall be made available to the public.
   SEC. 20.    Section 8546.2 of the  
Government Code   is amended to read: 
   8546.2.  (a) The State Auditor  Inspector General  shall
request that any state agency, as defined in Section 11000, whether
created by the California Constitution or otherwise, any local
governmental agency, including any city, county, city and county,
school, or special district, or any publicly created entity, that is
the subject of an audit or investigation conducted pursuant to this
chapter provide updates on its progress in implementing the
recommendations made by the State Auditor  Inspector General
 , at intervals prescribed by the State Auditor  Inspector
General  .
   (b) Any state agency described in subdivision (a) shall provide
the State Auditor  Inspector General  , in the form
prescribed by the State Auditor  Inspector General  , with
updates on implementation of recommendations as described in
subdivision (a).
   SEC. 21.    Section 8546.3 of the  
Government Code   is amended to read: 
   8546.3.  The State Auditor  Inspector General  shall
examine and report annually upon the financial statements otherwise
prepared by the executive branch of the state so that the Legislature
and the public will be informed of the adequacy of those financial
statements in compliance with generally accepted accounting
principles. In making that examination, the State Auditor 
Inspector General  may make the audit examination of accounts
and records, accounting procedures, and internal auditing performance
that he or she determines to be necessary to disclose all material
facts necessary to proper reporting in accordance with the federal
Single Audit Act of 1984 (31 U.S.C. Section 7501 and following)
                                       and the purposes set forth in
Section 8521.5.
   SEC. 22.    Section 8546.4 of the  
Government Code   is amended to read: 
   8546.4.  (a) The State Auditor  Inspector General  shall
annually issue an auditor's report based upon the general purpose
financial statements included in the Controller's annual report that
is submitted to the Governor pursuant to Section 12460. The report
shall be in accordance with the "Government Auditing Standards"
published by the Comptroller General of the United States and the
standards published by the American Institute of Certified Public
Accountants.
   (b) The State Auditor  Inspector General  , in the
performance of this annual audit and any other audit or investigation
undertaken by the bureau, may examine all the financial records,
accounts, and documents of any state agency as defined by Section
11000.
   (c) The State Auditor  Inspector General  shall rely, to
the maximum extent possible, upon the audits performed by the
Controller, the Department of Finance, internal auditors of state
agencies, and independent contractors. The Director of Finance shall
be responsible for coordinating and providing technical assistance to
the internal auditors of state agencies. Nothing in this article is
intended to reduce or restrict the operations of internal auditors
whose review of internal financial and administrative controls of
state agencies is essential for coordinated audits.
   (d) State agencies receiving federal funds shall be primarily
responsible for arranging for federally required financial and
compliance audits. State agencies shall immediately notify the
Director of Finance, the State Auditor  Inspector General  ,
and the Controller when they are required to obtain federally
required financial and compliance audits. The Director of Finance,
the State Auditor  Inspector General  , and the Controller
shall coordinate the procurement by state agencies, including any
negotiations with cognizant federal agencies, of federally required
financial and compliance audits.
   (e) To prevent duplication of the annual audit conducted by the
State Auditor  Inspector General  pursuant to subdivision
(a), except for those state agencies that are required by state law
to obtain an annual audit, no state agency shall enter into a
contract for a financial or compliance audit without prior written
approval of the Controller and the Director of Finance, which
approval shall state the reason for the contract and shall be filed
with the State Auditor  Inspector General  at least 30 days
prior to the award of the contract. No funds appropriated by the
Legislature shall be encumbered for the purpose of funding any
contract for an audit that duplicates the annual financial audit
conducted by the State Auditor  Inspector General  .
   (f) Notwithstanding any other provision of this article, nothing
in this section shall be construed to limit, restrict, or otherwise
infringe upon the constitutional or statutory authority of the
Controller to superintend the fiscal concerns of the state.
   (g) Except as provided in subdivision (b), notwithstanding any
other provision of this article, nothing in this section shall be
construed to limit, restrict, or otherwise infringe upon the
statutory authority of the Director of Finance to supervise the
financial and business policies of the state.
   SEC. 23.    Section 8546.5 of the  
Government Code   is amended to read: 
   8546.5.  (a) The State Auditor  Inspector General  may
establish a high-risk government agency audit program for the purpose
of identifying, auditing, and issuing reports on any agency of the
state, whether created by the California Constitution or otherwise,
that the State Auditor  Inspector General  identifies as
being at high risk for the potential of waste, fraud, abuse, and
mismanagement or that has major challenges associated with its
economy, efficiency, or effectiveness.
   (b) In addition to identifying an agency as high risk on the basis
of weaknesses identified in audit and investigative reports produced
by the bureau, the State Auditor  Inspector General  may
consult with the Legislative Analyst, the Milton Marks "Little Hoover"
Commission on California State Government Organization and Economy,
the Office of Inspector General within the Department of Corrections,
the Department of Finance, and other state agencies that have
oversight responsibilities over any other agency of the state, in
identifying state agencies that are at high risk.
   (c) The State Auditor  Inspector General  shall notify
the Joint Legislative Audit Committee whenever it identifies a state
agency as at high risk.
   (d) The State Auditor  Inspector General  may issue audit
reports with recommendations for improvement in state agencies
identified as at high risk not less than once every two years.
   (e) The State Auditor  Inspector General  may require
state agencies identified as high risk to periodically report to the
auditor regarding the status of recommendations for improvement made
by the State Auditor  Inspector General  or other state
oversight agencies.
   SEC. 24.    Section 8546.6 of the  
Government Code   is amended to read: 
   8546.6.  The State Auditor  Inspector General  , in
connection with any audit or investigation conducted pursuant to this
chapter, shall be deemed to be a department head for the purposes of
Section 11189.
   SEC. 25.    Section 8546.7 of the  
Government Code   is amended to read: 
   8546.7.  Notwithstanding any other provision of law, every
contract involving the expenditure of public funds in excess of ten
thousand dollars ($10,000) entered into by any state agency, board,
commission, or department or by any other public entity, including a
city, county, city and county, or district, shall be subject to the
examination and audit of the State Auditor  Inspector General
 , at the request of the public entity or as part of any audit
of the public entity, for a period of three years after final payment
under the contract. Every contract shall contain a provision stating
that the contracting parties shall be subject to that examination
and audit. The failure of a contract to contain this provision shall
not preclude the State Auditor  Inspector General  from
conducting an examination and audit of the contract at the request of
the public entity entering into the contract or as part of any audit
of the public entity.
   It is the intent of the Legislature that the Regents of the
University of California include in contracts involving the
expenditure of state funds in excess of ten thousand dollars
($10,000) a provision stating that the contracting parties shall be
subject to the examination and audit of the State Auditor 
Inspector General  , at the request of the regents or as part of
any audit of the university, for a period of three years after final
payment under the contract.
   The examinations and audits under this section shall be confined
to those matters connected with the performance of the contract,
including, but not limited to, the costs of administering the
contract.
   SEC. 26.    Section 8546.8 of the  
Government Code   is amended to read: 
   8546.8.  Unless the contrary is stated or clearly appears from the
context, any reference to the Auditor General or the Office of the
Auditor General in any statute or contract in effect on the effective
date of this chapter, other than Chapter 4 (commencing with Section
10500), with respect to the performance of audits, shall be construed
to refer to the State Auditor  Inspector General  and the
Bureau of State Audits  and Inspector General  ,
respectively.
   SEC. 27.    Section 8547.4 of the  
Government Code   is amended to read: 
   8547.4.  The State Auditor  Inspector General  shall
administer this article and shall investigate and report on improper
governmental activities. If, after investigating, the State Auditor
 Inspector General  finds that an employee may have engaged
or participated in improper governmental activities, the State
Auditor  Inspector Ge   neral  shall prepare an
investigative report and send a copy of the investigative report to
the employee's appointing power. Subject to the limitations of
Section 8547.5, the State Auditor  Inspector General  may
provide to the employee's appointing power any evidence gathered
during the investigation that, in the judgment of the State Auditor
 Inspector General  , is necessary to support an adverse
action or an action recommended pursuant to subdivision (a) of
Section 8547.7. Within 60 days after receiving a copy of the State
 Auditor's   Auditor Inspector General's 
investigative report, the appointing power shall either serve a
notice of adverse action upon the employee who is the subject of the
investigative report or set forth in writing its reasons for not
taking adverse action. The appointing power shall file a copy of the
notice of adverse action with the State Personnel Board in accordance
with Section 19574, and shall submit a copy to the State Auditor
 Inspector General  . If the appointing power does not take
adverse action within 60 days of receiving a copy of the State
 Auditor's   Auditor Inspector General's 
investigative report, it shall submit its written reasons for not
doing so to the State Auditor  Inspector General  and the
State Personnel Board, and adverse action may be taken as provided in
Section 19583.5. Any employee who is served with a notice of adverse
action may appeal to the State Personnel Board in accordance with
Section 19575.
   SEC. 28.    Section 8547.5 of the  
Government Code   is amended to read: 
   8547.5.  (a) The State Auditor  Inspector General  shall
create the means for the submission of allegations of improper
governmental activity both by transmission via mail or other carrier
to a specified mailing address and electronic submission through an
Internet Web site portal. The State Auditor  Inspector General
 may request that a person submitting an allegation provide his
or her name and contact information and provide the names and contact
information for any persons who could help to substantiate the
claim. However, the State Auditor  Inspector General  shall
not require any person submitting an allegation to provide his or her
name or contact information and shall clearly state on the agency
Web site that this information is not required in order to submit an
allegation.
   (b) Upon receiving specific information that any employee or state
agency has engaged in an improper governmental activity, the State
Auditor  Inspector General  may conduct an investigation of
the matter. The identity of the person providing the information that
initiated the investigation, or of any person providing information
in confidence to further an investigation, shall not be disclosed
without the written permission of the person providing the
information except that the State Auditor  Inspector General
 may make the disclosure to a law enforcement agency that is
conducting a criminal investigation.
   SEC. 29.    Section 8547.6 of the  
Government Code   is amended to read: 
   8547.6.  The State Auditor  Inspector General  may
request the assistance of any state department, agency, or employee
in conducting any investigation required by this article. If an
investigation conducted by the State Auditor  Inspector General
 involves access to confidential academic peer review records of
University of California academic personnel, these records shall be
provided in a form consistent with university policy effective on
August 1, 1992. No information obtained from the State Auditor 
Inspector General  by any department, agency, or employee as a
result of the State  Auditor's   Auditor
Inspector General's  request for assistance, nor any information
obtained thereafter as a result of further investigation, shall be
divulged or made known to any person without the prior approval of
the State Auditor  Inspector General  .
   SEC. 30.    Section 8547.7 of the  
Government Code   is amended to read: 
   8547.7.  (a) If the State Auditor  Inspector General 
determines that there is reasonable cause to believe that an employee
or state agency has engaged in any improper governmental activity,
he or she shall report the nature and details of the activity to the
head of the employing agency, or the appropriate appointing
authority, and may include recommended actions to prevent the
continuation or recurrence of the activity. If appropriate, the State
Auditor  Inspector General  shall report this information
to the Attorney General, the policy committees of the Senate and
Assembly having jurisdiction over the subject involved, and to any
other authority that the State Auditor  Inspector General 
determines appropriate.
   (b) The State Auditor  Inspector General  shall not have
any enforcement power. In any case in which the State Auditor 
Inspector General  submits a report of alleged improper activity
to the head of the employing agency or appropriate appointing
authority, that individual shall report to the State Auditor 
Inspector General  with respect to any action taken by the
individual regarding the activity, the first report being transmitted
no later than 60 days after the date of the State  Auditor's
  Auditor Inspector General's  report and monthly
thereafter until final action has been taken.
   (c) The State Auditor  Inspector General  shall keep
confidential every investigation, including, but not limited to, all
investigative files and work product, except that the State Auditor
 Inspector General  may issue any report of an investigation
that has been substantiated, keeping confidential the identity of
the individual or individuals involved, or, subject to the
limitations of Section 8547.5, release any findings or evidence
supporting any findings resulting from an investigation conducted
pursuant to this article that is deemed necessary to serve the
interests of the state.
   (d) This section does not limit any authority conferred upon the
Attorney General or any other department or agency of government to
investigate any matter.
   SEC. 31.    Section 8547.11 of the  
Government Code   is amended to read: 
   8547.11.  (a) A University of California employee, including an
officer or faculty member, may not directly or indirectly use or
attempt to use the official authority or influence of the employee
for the purpose of intimidating, threatening, coercing, commanding,
or attempting to intimidate, threaten, coerce, or command any person
for the purpose of interfering with the right of that person to
disclose to a University of California official, designated for that
purpose by the regents, or the State Auditor  Inspector General
 matters within the scope of this article.
   (b) For the purpose of subdivision (a), "use of official authority
or influence" includes promising to confer, or conferring, any
benefit; effecting, or threatening to effect, any reprisal; or taking
or directing others to take, or recommending, processing, or
approving, any personnel action, including, but not limited to,
appointment, promotion, transfer, assignment, performance evaluation,
suspension, or other disciplinary action.
   (c) Any employee who violates subdivision (a) may be liable in an
action for civil damages brought against the employee by the offended
party.
   (d) Nothing in this section shall be construed to authorize an
individual to disclose information otherwise prohibited by or under
law.
   SEC. 32.    Section 8548.1 of the  
Government Code   is amended to read: 
   8548.1.  No later than April 1, 2002, the State Auditor 
Inspector General  shall prepare for state employees a written
explanation of the California Whistleblower Protection Act contained
in Article 3 (commencing with Section 8547). The explanation shall
include, but not be limited to, the following information:
   (a) Instructions on how to contact the State Auditor 
Inspector General  by mail or telephone.
   (b) A general overview of improper governmental activities and
examples of three of the most common types of improper governmental
activities that may be reported to the State Auditor Inspector
General  .
   (c) Examples of two of the most commonly reported governmental
activities that the State Auditor  Inspector General  does
not have authority to investigate.
   (d) An explanation of whistleblower protection available to state
employees who report improper governmental activities to the State
Auditor  Inspector General  .
   (e) The requirement that the State Auditor  Inspector General
 protect the anonymity of a person who reports improper
governmental activity to the State Auditor  Inspector General
 .
   (f) The State  Auditor's   Auditor Inspector
General's  authority in connection with violations of law
discovered during an investigation of improper governmental
activities.
   SEC. 33.    Section 8548.2 of the  
Government Code   is amended to read: 
   8548.2.  The State Auditor  Inspector General  shall
prepare for distribution to each state agency in an electronic format
a notice containing the information in the written explanation
prepared pursuant to Section 8548.1. No later than July 1, 2002, each
state agency shall print and post this notice at its state office or
offices in a location or locations where employee notices are
maintained. A state agency shall not edit the written text of the
notice but it may publish the notice in a manner it chooses, and it
may include its own introductory language in the notice, provided
that the language and the format selected do not alter the meaning of
the notice.
   SEC. 34.    Section 8548.4 of the  
Government Code   is amended to read: 
   8548.4.  The State Auditor  Inspector General  shall post
the information described in Section 8548.1 on the Web site of the
 Bureau of State Audits   bureau  .
  SEC. 35.    Section 8548.9 of the  
Government Code   is amended to read: 
   8548.9.  (a) The State Auditor  Inspector General  shall,
by January 15th of each year, report to the Joint Legislative Budget
Committee, the Joint Legislative Audit Committee, and the Department
of Finance with respect to each recommendation he or she has made
based on an audit or investigation that was reported more than one
year prior and that has not been fully implemented by the affected
agency.
   (b) The report shall clearly identify the state agency audited or
investigated, the audit or investigation that contained the
recommendation, a brief description of the recommendation, the date
it was issued, and the most recent explanation provided by the agency
to the State Auditor  Inspector General  on the status of
the recommendation.
   (c) Any state agency that is notified by the State Auditor 
Inspector General  that it has not fully implemented a
recommendation made pursuant to this chapter more than one year
prior, shall do either of the following:
   (1) Provide a written report to the State Auditor  Inspector
General  , the respective policy committees and budget
subcommittees of the Assembly and Senate with oversight of the
agency, and the Department of Finance, explaining why the audit
recommendation or investigation has not been fully implemented.
   (2) Notify all entities described in subdivision (a) that it will
begin implementing the audit recommendation or investigation
recommendation within 90 days of the notification by the State
Auditor  Inspector General  , and include the estimated date
of full implementation. 
  SECTION 1.    Article 8 (commencing with Section
550) is added to Chapter 3 of Part 1 of Division 1 of the Food and
Agricultural Code, to read:

      Article 8.  Sustainable Agriculture


   550.  This article shall be known and may be cited as the
Sustainable Agriculture Research and Education Act of 1986.
   551.  The Legislature finds and declares all of the following:
   (a) There is a growing movement in California and the nation to
change farming techniques by adopting more resource-conserving,
energy-efficient systems of agriculture. The objective of these
changes is to produce agricultural products that may reduce the use
of petrochemicals, improve means of biological pest management,
improve soil productivity, improve erosion control, and improve
irrigation, cultivation, and harvesting techniques.
   (b) Over the long term, adoption of more efficient
resource-conserving systems of agricultural production can benefit
both the producing and consuming public.
   (c) The resolution of many agricultural problems depends on
immediate efforts to provide farmers with practices that are both
resource conserving and economical for food producers, and to foster
food production and distribution methods that reduce dependence on
petroleum-based inputs.
   552.  The purpose of this article is to promote more research and
education on sustainable agricultural practices, such as organic
methods, biological control, and integrated pest managements,
including the analysis of economic factors influencing the long-term
sustainability of California agriculture. This article is intended to
foster economically and ecologically beneficial means of soil
improvement, pest management, irrigation, cultivation, harvesting,
transportation, and marketing for California agriculture based on
methods designed to accomplish all of the following:
   (a) The control of pests and diseases of agricultural importance
through alternatives that reduce or eliminate the use of pesticides
and petrochemicals.
   (b) The production, processing, and distribution of food and fiber
in ways that consider the interactions among soil, plants, water,
air, animals, tillage, machinery, labor, energy, and transportation
to enhance agricultural efficiency, public health, and resource
conservation.
   553.  (a) It is the intent of the Legislature that the Regents of
the University of California establish the Sustainable Agriculture
Research and Education Program to support all of the following:
   (1) Competitive grants for research on topics described in Section
552.
   (2) The giving of instructions and practical demonstrations in
agriculture and imparting information through demonstrations,
publications, and otherwise, and for printing and distribution of
information in connection with the Sustainable Agriculture Research
and Education Program. Where feasible, these demonstrations shall
include field research conducted on cooperating farms.
   (3) Planning for and management of University of California
farmlands committed to supporting long-term continuous research in
sustainable agricultural practices and farming systems.
   (b) Those eligible to apply for competitive grants under
subdivision (a) shall include individuals affiliated with public and
private institutions of higher education and with nonprofit
tax-exempt organizations.
   (c) All grant applications shall be subject to peer review for
scientific merit.
   (d) In awarding grants, preference shall be given to projects that
include field evaluation and offer the greatest potential for
measurable progress toward attaining the long-term goals pursuant to
Section 552.
   554.  (a) If the Sustainable Agriculture Research and Education
Program is established by the regents, the President of the
University of California shall establish and appoint a Program
Advisory Committee and a Technical Advisory Committee.
   (b) The duties of the Program Advisory Committee shall include
recommending goals and priorities for this program, including, but
not limited to, reviewing the priority of grant applications.
   (c) The Program Advisory Committee shall be composed of a majority
of individuals representing agriculture, as well as representatives
from government, public organizations, and institutions of higher
education, all of whom are knowledgeable regarding the issues and
practices of sustainable agriculture.
   (d) The duties of the Technical Advisory Committee shall include
making recommendations about the scientific merit of grant
applications submitted pursuant to Section 553.
   (e) The Technical Advisory Committee shall be composed of faculty
and staff of the University of California and other experts from
outside the university.
   (f) Members of the Program Advisory Committee and Technical
Advisory Committee who are not employed by the University of
California shall be appointed for a period not exceeding three years
and receive compensation for expenses incurred in the performance of
their duties according to applicable university regulations and
guidelines.
   555.  If the Sustainable Agriculture Research and Education
Program is established by the regents, it shall be established from
existing resources.