BILL ANALYSIS
AB 567
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Date of Hearing: April 22, 2009
ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL
SECURITY
Ed Hernandez, Chair
AB 567 (Villines) - As Introduced: February 25, 2009
SUBJECT : Government practices.
SUMMARY : Creates a Clearinghouse for Government Innovation and
Improvement Program (clearinghouse) within the Bureau of State
Audits (bureau) which shall solicit recommendations from the
public for improving state operations, and makes other specified
changes to the operations of the State Auditor (SA).
Specifically, this bill :
1)Expands the restrictions regarding the release of information
related to a State Auditor (SA) report to the officers and any
employee or former officers or employees of any state or local
agency or publicly created entity that has been subject to or
that has assisted the Bureau of State Audits (bureau) with an
audit or investigation or that has received a draft copy of
any report or other draft document from the bureau for comment
or review.
2)Replaces references to "investigative audit" with
"investigation."
3)Establishes the clearinghouse, and requires the SA to
establish a means for members of the public to submit
recommendations for improving state operations and review such
submissions in good faith.
4)Permits the SA to forward selected recommendations from the
public to the Governor, the Director of Finance, and the
majority and minority party leaders in both houses of the
Legislature for review.
5)Requires the SA to create the means for the submission of
allegations of improper governmental activity both mail and
electronically. The State Auditor may request, but shall not
require, that a person submitting an allegation provide his or
her name and contact information and provide the names and
contact information for any persons who could help to
substantiate the claim.
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6)Permits the SA to include recommendations to prevent the
continuation or recurrence of improper governmental activity
in a report to the head of the employee's agency.
7)Lengthens the reporting time from 30 to 60 days for the head
of the employing agency to report any action taken regarding
improper governmental activity.
8)Requires the SA to keep every investigation confidential,
including all investigative files and work product.
9)Specifies that the SA must report any recommendations that
have not been fully implemented.
10)Revises the term "employee" to include any individual
appointed by the Legislature who is not an employee of the
Legislature.
EXISTING LAW :
1)Sets forth the duties and powers of the bureau and makes
reference to audits and investigative audits.
2)Prohibits the State Auditor or his or her employees from
releasing to the public, among other things, any papers,
correspondence, or any substantive information pertaining to
any audit not completed.
FISCAL EFFECT : Unknown.
COMMENTS : According to the author's office, "Currently, the
California Whistleblower Protection Act (Act) provides the means
for state employees and members of the public to anonymously
speak out if they witness any government waste, fraud or abuse.
While this Act works, there are several improvements that could
be made to encourage state employees to come forward without
fear of retaliation and to ensure that auditor recommendations
to correct issues are taken seriously."
The Act authorizes the California SA to receive complaints from
state employees and members of the public who wish to report an
improper governmental activity. According to the SA, bureau
staff conduct careful evaluations of each complaint to determine
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whether an improper governmental activity has occurred, and if
the complaint has merit, the SA may conduct a formal
investigation.
The author's office has not cited specific examples of
deficiencies with the bureau's current system of receiving and
investigating complaints or instances of any improper
disclosures. It is also noted that the provisions requiring the
bureau to implement a system that allows an individual to
contact the bureau via mail, email, or telephone is consistent
with the bureau's current program.
The State Association of County Auditors has taken an "oppose
unless amended" position on the bill. They are concerned that
the provisions prohibiting county auditors from discussing
information found in an ongoing audit with key county staff,
including county counsel, and restricting county auditors from
seeking assistance from other local government officials as
technical experts are too restrictive. While they agree with
the author's effort to restrict the release of information on an
audit not yet completed to the public and the press, they feel
"?strongly that preserving the ability to perfect audit reports
through technical discussion with experts must be upheld." They
are seeking an amendment that would clarify that the bill does
not limit local governmental officials from discussing policy,
practice or procedures in any area of their responsibility or
function of their office with other local government officials
as technical experts.
This bill was also heard in the Assembly Committee on Business
and Professions where it passed unanimously on consent.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file
Opposition
State Association of County Auditors
Analysis Prepared by : Karon Green / P.E., R. & S.S. / (916)
319-3957
AB 567
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