BILL ANALYSIS Ó SB 486 Page 1 Date of Hearing: August 14, 2013 ASSEMBLY COMMITTEE ON ACCOUNTABILITY AND ADMINISTRATIVE REVIEW Jim Frazier, Chair SB 486 (DeSaulnier) - As Amended: July 3, 2013 SENATE VOTE : 39-0 SUBJECT : Office of Strategic Assessment and Accountability SUMMARY : Creates the Office of Strategic Assessment and Accountability (OSAA) within the California State Transportation Agency (CalSTA) to oversee the California Department of Transportation (Caltrans). Specifically, this bill : 1) Charges OSAA with ensuring ongoing performance measurement, transparency, and public accountability of Caltrans. 2) Requires OSAA to work with Caltrans to identify performance measurement benchmarks. 3) Requires OSAA to report publically and to the California Transportation Commission (Commission) about Caltrans' performance. EXISTING LAW creates CalSTA within state government. CalSTA, which was established under the Governor's Reorganization Plan No. 2 of 2012, oversees Caltrans and other transportation agencies and is charged with developing and coordinating the policies and programs of the state's transportation entities to achieve the state's mobility, safety and air quality objectives of its transportation system. FISCAL EFFECT : The current version of this bill has not yet been analyzed by a fiscal committee. COMMENTS : This bill would create OSAA within CalSTA to oversee Caltrans. Specifically, OSAA would focus on evaluating specific performance measurement benchmarks that CalSTA identifies in consultation with the Director of Caltrans. These measures would relate to enhancement of public safety; system preservation and rehabilitation; and efficiency and cost-effectiveness of project delivery. The proposed program is SB 486 Page 2 modeled after a similar program in Washington State's Department of Transportation. OSAA would be required to report at least quarterly about Caltrans' performance in meeting the benchmarks. OSAA would post this information on its website and report the first results to the California Transportation Commission on or before July 1, 2014, and quarterly thereafter. According to the author, the bill is needed in light of recent Caltrans' scandals, to "instill some discipline and improve Caltrans' management of the state transportation system and funding." On March 28, 2013, the California State Auditor released an investigative report on Caltrans. The report found that Caltrans workers falsified test data on transportation projects, claimed hundreds of hours of overtime that they had not worked, and engaged in an "inexcusable neglect of duty," according to the report. Caltrans has a Division of Audits and Investigations (A&I), which currently conducts internal and external audits and investigations. The Deputy Director of A&I is a member of Caltrans' executive management team and reports directly to both the Chief Deputy Director for administrative matters and the Director of Caltrans on major audit issues. This bill would establish a separate oversight function of Caltrans that is outside of the department. DOUBLE REFERRAL : This bill is double referred to the Assembly Committee on Transportation and is set to be heard by that committee on August 12, 2013. REGISTERED SUPPORT / OPPOSITION : Support California Nevada Cement Association Automobile Club of Southern California Transportation California United Contractors Three individuals Opposition None on file SB 486 Page 3 Analysis Prepared by : Scott Herbstman / A. & A.R. / (916) 319-3600