BILL NUMBER: SCA 1	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 20, 2012

INTRODUCED BY   Senator Wyland

                        DECEMBER 6, 2010

   A resolution to propose to the people of the State of California
an amendment to the Constitution of the State, by adding Section 10
to Article III thereof, relating to state audits.


	LEGISLATIVE COUNSEL'S DIGEST


   SCA 1, as amended, Wyland. State Auditor: duties.
   Existing statutory law establishes the Bureau of State Audits,
which is headed by the State Auditor and has specified statutory
duties, including the performance of statutorily mandated audits.
Existing law states that the Bureau of State Audits, in order to be
free of organizational impairments to independence, shall be
independent of the executive branch and legislative control.
   This measure would require the State Auditor to biennially conduct
a  specified financial audit and  performance evaluation of
each state program, including the administration or oversight of
that program by the department or agency that is responsible for the
program, and submit a report of the results of that  financial
audit and  performance evaluation to the Legislature, as
prescribed. This measure would require the committee that considers
the budget in each house of the Legislature to meet and consider
recommendations made in each performance evaluation within 90 days of
submission by the State Auditor. This measure would require the
State Auditor to make each  financial audit and  performance
evaluation available to the public on an Internet Web site and in
hardcopy format and require the Legislature to appropriate to the
Bureau of State Audits funds as necessary to implement these
provisions.
   Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.



   Resolved by the Senate, the Assembly concurring, That the
Legislature of the State of California at its 2011-12 Regular Session
commencing on the sixth day of December 2010, two-thirds of the
membership of each house concurring, hereby proposes to the people of
the State of California, that the Constitution of the State be
amended as follows:
    That Section 10 is added to Article III thereof, to read:
      SEC. 10.  (a) Not later than January 1,  2013 
 2015  , and no less frequently than every two years
thereafter, the State Auditor, or his or her successor, shall conduct
a  financial audit and  performance evaluation of each
state government program, including the administration or oversight
of that program by each department or agency that is responsible for
the program, and shall submit to the Legislature a report of the
results of that  financial audit and  performance
evaluation.
   (b) Within 90 calendar days after the date that the State Auditor,
or his or her successor, submits a report of the results of a 
financial   audit and  performance evaluation to the
Legislature pursuant to subdivision (a), the committee that considers
the budget in each house of the Legislature shall meet and consider
the recommendations made in the performance evaluation pursuant to
paragraph (5) of  subdivision (c)   subdivision
(d)  . 
   (c) The financial audit of each program conducted under this
section shall include, but not be limited to, all of the following:
 
   (1) A description of all expenditures for the program for the
immediately preceding 10 years, including expenditures of money from
the General Fund, special funds, and federal funds.  
   (2) Identification of the amounts appropriated for the purposes of
the program, and the funds from which those appropriations were
made, for the immediately preceding 10 years.  
   (3) Identification of any discrepancy between the amount of moneys
in a program's special fund as reported to the Controller and the
amount of moneys in that special fund as reported to the Director of
Finance.  
   (c) 
    (d)  Each performance evaluation of a program conducted
under this section shall include, but  is  not 
be  limited to, all of the following:
   (1) A statement of the purposes of the program, including the
intent of the Legislature pursuant to any measure enacted to
establish or modify the program.
   (2) A discussion of the history of the program.
   (3) A description of all sources of funding for the program, and
an evaluation of the cost-effectiveness of the program.
   (4) An evaluation of the success of the program, including an
explanation of the methodology used to evaluate that success.
   (5) Recommendations as to how the program may be made more
efficient and effective, or as to whether the program should be
eliminated.
   (6) Any related information or evaluation the State Auditor deems
appropriate. 
   (d) 
    (e)  The State Auditor shall make each  financial
audit and  performance evaluation prepared pursuant to this
section available to the public on an Internet Web site and in a
hardcopy format. 
   (e) 
    (f)  The Legislature shall appropriate to the Bureau of
State Audits, or any successor entity, funds as necessary to
implement this section.