BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 539|
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THIRD READING
Bill No: AB 539
Author: Monning (D)
Amended: As introduced
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE : 12-0, 6/23/09
AYES: Wright, Harman, Benoit, Denham, Florez, Negrete
McLeod, Oropeza, Padilla, Price, Wiggins, Wyland, Yee
NO VOTE RECORDED: Calderon
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 73-0, 5/14/09 (Consent) - See last page
for vote
SUBJECT : State Auditor
SOURCE : Bureau of State Audits
DIGEST : This bill makes various changes to clarify
existing law and codify existing practice by (1) requiring
the State Auditor to establish an equal employment
opportunity program as specified, (2) requiring the State
Auditor to deliver audit reports to the Legislature, its
relevant committees and subcommittees, and the Governor as
provided, (3) authorizing the State Auditor to examine all
the financial records, accounts, and documents of any state
agency, as defined, during any audit or investigation the
State Auditor conducts, and (4) extending the time limit,
from 30 to 60 days, that the head of an agency or
CONTINUED
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appointing authority has to submit an initial report, as
specified, in response to a State Auditor report of alleged
improper activity.
ANALYSIS : Existing law sets forth the duties and powers
of the Bureau of State Audits and makes reference to audits
and investigative audits.
Existing law, the California Whistleblower Protection Act,
sets forth the circumstances and procedures under which a
state employee, as defined, may report improper
governmental activities, as defined, or make a protected
disclosure, as defined, to the State Auditor, and prohibits
retaliation or reprisal against a state employee for these
acts.
Existing law requires the State Auditor to establish an
affirmative action program that meets the criteria and
objectives established by the State Personnel Board.
Existing law requires the State Auditor to complete any
audit in a timely manner and in accordance with the
"Government Auditing Standards" published by the United
States Comptroller General.
Existing law requires the State Auditor to transmit a copy
of the audit report to the Milton Marks Commission
immediately upon completion of the audit.
Existing law requires the Milton Marks Commission to
deliver a completed report to the Legislature, appropriate
committees or subcommittees of the Legislature, and the
Governor, not later than 24 hours after delivery of the
report to the Commission.
Existing law requires the State Auditor to annually issue
an auditor's report based upon the general purpose
financial statements included in the State Controller's
annual report to the Governor.
Existing law authorizes the State Auditor to examine all
the financial records, accounts, and documents of any state
agency, as defined, in the performance of an annual audit.
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Existing law provides that if the State Auditor submits a
report of alleged improper activity to the head of an
employing agency or appropriate appointing authority, that
individual is required to (1) report to the State Auditor
with respect to any action taken regarding the activity,
(2) transmit the first report no later than 30 days after
the date of the State Auditor's report, and (3) transmit
monthly reports thereafter until final action has been
taken.
This bill:
1. Deletes reference to establishment of an "affirmative
action" program by the State Auditor and instead
requires the State Auditor to establish an "equal
employment opportunity" program.
2. Clarifies that the State Auditor shall be responsible
for delivering 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 Milton Marks "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. Extends the timeframe in which the head of an employing
agency must transmit the initial report of alleged
improper activity to the State Auditor from 30 days to
60 days.
Comments
Purpose of this bill . This bill amends certain sections of
the Government Code (Sections 8545.2, 8546, 8546.1, 8546.4,
and 8547.7) related to the Bureau of State Audits (BSA).
According to the author's office, the proposed changes are
essentially technical in nature and are made as part of
code maintenance. The State Auditor emphasizes that the
following four proposed changes are needed to clarify
existing law, codify current practices and correct
inconsistencies in current law.
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First, after the passage of Proposition 209, the state's
affirmative action program was deemed unlawful and the
Government Code was amended to instead reference an "equal
employment opportunity" program. The author's office
maintains that striking the reference to "affirmative
action" will ensure that the particular statute conforms to
existing law and the language used to cross-reference the
code section.
Second, existing law requires the State Auditor to transmit
a copy of a completed audit report to the Milton Marks
Commission, which must deliver the report within 24 hours,
upon receipt, to the Legislature, appropriate committees or
subcommittees of the Legislature, and the Governor. For
the past several years, the State Auditor has
simultaneously delivered audit reports to the Commission,
the Legislature, and the Governor. This bill codifies
current practice.
Third, existing law requires the State Auditor to annually
issue an auditor's report based upon the general purpose
financial statements included in the State Controller's
annual report to the Governor. The State Auditor is
authorized to examine all the financial records, accounts,
and documents of any state agency in the performance of the
annual audit. This bill instead authorizes the State
Auditor to examine all the financial records, accounts, and
documents of any state agency in the performance of this
annual audit and any other audit or investigation
undertaken by the BSA.
Fourth, under existing law, if the State Auditor submits a
report of alleged improper activity to the head of an
employing agency or appropriate appointing authority, that
individual is required to report to the State Auditor with
respect to any action taken by the individual regarding the
activity. The individual is required to transmit that
first report no later than 30 days after the date of the
state Auditor's report. This bill instead requires the
head of the employing agency or appropriate appointing
authority to transmit the first report to the State Auditor
no later than 60 days after the date of the State Auditor's
report. According to the author's office, this change is
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necessary to correct an inconsistency in current law.
Under current whistleblower law, if, after investigation,
the State Auditor finds that an employee may have engaged
or participated in improper governmental activities, the
State Auditor must send a copy of the investigation to the
employee's appointing power. The appointing power has 60
days from receipt of the report to either serve a notice of
adverse action on the employee or provide to the State
Auditor and the State Personnel Board a written explanation
for why it was not done. However, as is also provided in
current law, upon a finding of improper governmental
activity, the State Auditor shall report the finding to the
head of the appropriate employing agency or appointing
power and that individual must report to the State Auditor
any responsive action taken by that individual within 30
days. This bill makes both reports due within 60 days
after the State Auditor reports the findings of improper
governmental activities.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 6/29/09)
Bureau of State Audits (source)
American Federation of State, County and Municipal
Employees
ASSEMBLY FLOOR :
AYES: Adams, Anderson, Arambula, Beall, Bill Berryhill,
Tom Berryhill, Blakeslee, Block, Blumenfield, Brownley,
Buchanan, Caballero, Charles Calderon, Carter, Chesbro,
Conway, Cook, Coto, Davis, De La Torre, De Leon, DeVore,
Duvall, Emmerson, Eng, Evans, Feuer, Fletcher, Fong,
Fuller, Furutani, Galgiani, Gilmore, Hagman, Hall,
Harkey, Hayashi, Hernandez, Hill, Huber, Huffman,
Jeffries, Jones, Knight, Krekorian, Lieu, Logue, Bonnie
Lowenthal, Ma, Mendoza, Miller, Monning, Nava, Nestande,
Niello, Nielsen, John A. Perez, V. Manuel Perez,
Portantino, Price, Ruskin, Salas, Silva, Skinner,
Solorio, Audra Strickland, Swanson, Torlakson, Torres,
Torrico, Tran, Villines, Yamada
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NO VOTE RECORDED: Ammiano, Fuentes, Gaines, Garrick,
Saldana, Smyth, Bass
TSM:mw 6/29/09 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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