BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 539
                                                                  Page  1

          Date of Hearing:   May 6, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                AB 539 (Monning) - As Introduced:  February 25, 2009 

          Policy Committee:                              Business and  
          Professions  Vote:                            9 - 0
                        P.E.R. & S.S.                                  6 -  
          0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill clarifies existing law and codifies current practices  
          as it relates to the Bureau of State Audits (BSA). Specifically,  
          this bill: 

          1)Removes references to an affirmative action program and  
            requires the state auditor to establish an equal employment  
            opportunity program.

          2)Requires BSA to deliver completed reports to the Legislature,  
            appropriate committees or subcommittees of the Legislature,  
            and the governor, not later than 24 hours after delivering the  
            reports to the Little Hoover Commission. 

          3)Authorizes the state auditor to examine all financial records,  
            accounts, and documents of any state agency in the performance  
            of an audit or investigation.

          4)Requires that if the state auditor submits a report of alleged  
            improper activity to the head of an agency or department, that  
            individual must report the state auditor within 60 days any  
            action taken regarding the committee.  In addition, a monthly  
            report must be transmitted until a final action has been  
            taken.

           FISCAL EFFECT  

          There are no significant costs associated with this legislation.  









                                                                  AB 539
                                                                  Page  2


           COMMENTS  

           1)Rationale  .  According to the sponsor, BSA, this bill is  
            intended as clarifying, clean-up legislation, as it relates to  
            the office. For example, this bill clarifies BSA's ability to  
            obtain and examine all records, including all financial  
            records, regardless of asserted privileges in any audit or  
            investigation by BSA. 

           2)Background  . The California State Auditor is the state's  
            independent external auditor that provides independent,  
            nonpartisan, accurate, and timely assessments of California  
            government's financial and operational activities in  
            compliance with generally accepted government auditing  
            standards.  The California State Auditor's Office reports its  
            findings to the Legislature and recommends actions to improve  
            government operations.

           3)Related Legislation  . AB 540 (Monning) 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. That bill was passed by this committee on April  
            29.



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