SB 486, as amended, DeSaulnier. Office of Legal Compliance and Ethics.
Existing law establishes the Transportation Agencybegin delete (agency)end delete in state government with various duties and responsibilities.
This bill would create the Office of Legal Compliance and Ethicsbegin delete (office)end delete within the agencybegin insert and require the director of the office to organize the office with the approval of the audit committee, as defined. The bill would vest the officeend insert with responsibility for, among other things, acting to prevent and detect serious breaches of Department of Transportationbegin delete (department)end delete
policy, and fraud, waste, and abusebegin insert within the departmentend insert, including any acts of criminal conductbegin delete within the departmentend delete.begin insert The bill would require the office to conduct internal audits of the department, and would provide that the office have access to specified records and personnel, and other material necessary to conduct audits and investigations.end insert The bill would require the director of the office to report quarterly, at a noticed public hearing of the commission, regarding performance of and activities related to investigations and to report annually to the Governor and the Legislature with a summary of his or her investigations. The bill would require the summary to be posted on the agency’s Internet Web
site.
The bill would require the director to provide information and evidence relating to criminal acts to the State Auditor’s office and appropriate law enforcement officialsbegin delete and toend deletebegin insert, andend insert refer matters for further civil, criminal, and administrative action to appropriate administrative and prosecutorial agencies, including the Attorney General.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Chapter 1.5 (commencing with Section 13985)
2is added to Part 4.5 of Division 2 of Title 2 of the Government
3Code, to read:
4
(a) There is within the Transportation Agency an Office
8of Legal Compliance and Ethics.
9(b) As used in this chapter, the following terms shall have the
10following meanings:
11(1) “Agency” means the Transportation Agency.
begin insert
12(2) “Audit committee” means a committee comprised of the
13commission and the secretary.
14(2)
end delete
15begin insert(3)end insert “Commission” means the California Transportation
16Commission.
17(3)
end delete18begin insert(4)end insert “Department” means the Department of Transportation.
19(4)
end delete
20begin insert(5)end insert “Director” means the Director of the
Office of Legal
21Compliance and Ethics.
22(5)
end delete23begin insert(6)end insert “Office” means the Office of Legal Compliance and Ethics.
24(6)
end delete
25begin insert(7)end insert “Secretary” means the Secretary of the Transportation
26Agency.
(a) For purposes of administration, thebegin delete secretaryend delete
2begin insert directorend insert shall organize the office with the approval of thebegin delete Governor begin insert audit committeeend insert.
3and the commissionend delete
4(b) The Governor shall appoint the director for a six-year term,
5subject to advice and consent of the Senate. The director may not
6be removed from office during that term, except for good cause.
7The director shall
report directly to thebegin delete commissionend deletebegin insert audit
8committeeend insert.
9(c) Thebegin delete agencyend deletebegin insert directorend insert shall be responsible for developing a
10proposed budget for the office in consultation with the departmentbegin delete, begin insert and the audit committeeend insert. Funding
11the commission, and the officeend delete
12for the office shall come from savings related to the reduction of
13staff in the Division of Audits and Investigations within the
14
department due to the division’s transferred workload to the office.
15(d) The director and office staff shall perform their duties and
16functions in accordance with generally accepted audit standards
17developed in consultation with the State Auditor.
18(e) In the process of conducting audits and investigations, the
19office shall have access to any and all department records to which
20the Division of Audits and Investigations has access, including
21information determined to be confidential and protected from
22disclosure. The office shall have access to all employees,
23contractors, subcontractors, and third-party books, records,
24documents, and any other material necessary to conduct audits
25and investigations. At the request of the office, copies of any
26records or documents shall be provided.
The office shall be responsible for all of the following
28as they relate to the department:
29(a) Acting to prevent and detect serious breaches of departmental
30policy, fraud, waste, and abuse, including any acts of criminal
31conduct within the department.
32(b) Independently and objectively reviewing and investigating
33conduct described by subdivision (a), including, but not limited
34to, all of the following:
35(1) Criminal activity in the department or committed on
36department property.
37(2) Allegations of wrongdoing by department employees.
38(3) Serious breaches of department policy.
39(4) Significant issues relevant to the effectiveness of the
40department.
P4 1(c) Conducting internal audits of the department to identify
2potential improvements in efficiency and performance.
3(c)
end delete
4begin insert(d)end insert Ensuring that members of the commission and department
5employees receive appropriate ethics trainingbegin insert
by recommending
6appropriate ethics policies and periodically reporting to the
7commission on the status of the department’s ethics training
8programend insert.
9(d)
end delete
10begin insert(e)end insert Performing other duties assigned to the office by the
11begin delete commissionend deletebegin insert audit committeeend insert.
(a) The director shall report quarterly, at a noticed
13public hearing of the commission, regarding performance of and
14activities related to investigations.
15(b) The director shall report annually to the Governor and the
16Legislature with a summary of his or her investigations. The
17summary shall be posted on the agency’s Internet Web site and
18shall otherwise be made available to the public upon its release to
19the Governor and Legislature. The summary shall include, but
20need not be limited to, significant problems discovered by the
21office and whether recommendations of the office relative to
22investigations have been implemented by the department. The
23report shall be submitted pursuant to Section 9795 and is not
24subject to the provisions of Section
10231.5.
(a) The director shall provide information and
26evidence relating to criminal acts to the state auditor’s office and
27appropriate law enforcement officials.
28(b) The director shall refer matters for further civil, criminal,
29and administrative action to appropriate administrative and
30prosecutorial agencies, including the Attorney General.
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