BILL NUMBER: SB 887	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 5, 2010

INTRODUCED BY   Senator Hollingsworth

                        JANUARY 20, 2010

   An act to  amend Section 8504   add Chapter
5.6 (commencing with Section 8460) to Division 1 of Title 2  of
the Government Code, relating to state government.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 887, as amended, Hollingsworth.  Milton Marks
Commission: membership: Members of the Legislature.  
Office of the Chief Inspector General. 
   Existing law  creates   establishes  the
Milton Marks "Little Hoover" Commission on California State
Government Organization and Economy  , which has a prescribed
membership that includes 4 members of the Legislature, as
prescribed. Existing law specifies that the Members of the
Legislature serving as members of the commission be considered a
joint committee of the 2 houses of the Legislature constituted and
acting as an investigating committee   .   The
commission reviews reports and submits recommendations to increase
the efficiency and accountability of agencies, departments, and
programs to the Governor and the Legislature  . 
   This bill would establish the Office of the Chief Inspector
General, which would be headed by the Chief Inspector General. This
bill would require the Chief Inspector General to identify and
categorize each agency, department, and program, and submit a
proposed sunset timeline for those agencies to the Legislature. This
bill would also require the Chief Inspector General to review each
agency, department, and program using prescribed criteria and prepare
a recommendation report, as specified. This bill would require the
Chief Inspector General to monitor legislation related to agencies,
departments, and programs, as specified.  
   This bill would require the commission to hold a public hearing to
review the Chief Inspector General's recommendation report, and act
on the report, as specified. This bill would also require the
commission to submit its recommendations, along with the Chief
Inspector General's report, to the Legislature in the form of a bill
that the Legislature shall consider without modification. 

   This bill would make technical, nonsubstantive changes to these
provisions. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Chapter 5.6 (commencing with Section
8460) is added to Division 1 of Title 2 of the   Government
Code   , to read:  
      CHAPTER 5.6.  GOVERNMENT REFORM, ACCOUNTABILITY, AND SUNSET
REVIEW ACT


   8460.  This chapter shall be known, and may be cited, as the
Government Reform, Accountability, and Sunset Review Act.
   8461.  The Legislature finds and declares all of the following:
   (a) The Office of the Chief Inspector General is established to
act as an independent state entity entrusted with the responsibility
of ensuring that state government meets the fundamental standards of
efficiency, accountability, and transparency.
   (b) The mission of the Office of the Chief Inspector General is to
deter, detect, and disclose waste, fraud, and abuse in state
government. The Office of the Chief Inspector General shall initiate
an exhaustive review at least once every 12 years of all state
agencies, departments, and programs.
   (c) The Legislature intends, through the state budget process, to
identify and use existing positions and resources to avoid any
potential costs associated with the creation and function of the
Office of the Chief Inspector General.
   8462.  (a) There is hereby created in state government the Office
of the Chief Inspector General, which shall be headed by the Chief
Inspector General. The Governor shall appoint, subject to
confirmation by a two-thirds vote of each house of the Legislature,
the Chief Inspector General who shall serve a term of 12 years.
   (b) The Chief Inspector General may be removed from office by a
two-thirds vote of each house of the Legislature.
   (c) The annual salary of the Chief Inspector General shall be
commensurate with that of agency secretaries of the executive branch
pursuant to Section 11550.
   8463.  In administering the fiscal policies of the Office of the
Chief Inspector General, the office shall submit a proposed budget to
the Department of Finance each fiscal year. The Department of
Finance shall include the office's proposed budget, without
modification, in the Governor's Budget.
   8464.  The Chief Inspector General may hire or contract staff for
services, including, but not limited to, professional assistants,
technical assistants, clerical assistants, and deputy inspectors,
that he or she deems necessary to effectively carry out the duties of
the office. Employees of the Office of the Chief Inspector General
shall not be included within the meaning of "state employee" for
purposes of subdivision (c) of Section 3513, and are thereby excluded
from collective bargaining.
   8465.  (a) On or before July 1, 2011, the Chief Inspector General
shall identify and categorize, by policy subject area, each state
agency, department, and program. The Chief Inspector General shall
submit to the Legislature, for purposes of adoption by statute, a
proposed timeline schedule for the sunset of each state agency,
department, and program. The Chief Inspector General shall consider
organizing the sunset schedule by category, policy area, function, or
other applicable criteria in order to promote an efficient review
process pursuant to Section 8466.
   (b) A review shall occur at least once every 12 years, in the
manner prescribed by this chapter, for each agency, department, and
program that is identified in a statute adopted by the Legislature,
pursuant to this section, that establishes a timeline schedule for
the sunset of that agency, department, and program. The first review
shall be completed within two years of the enactment of the initial
timeline schedule for the sunset of each state agency, department,
and program.
   (c) (1) Any new agency, department, or program created by the
Legislature after the Legislature adopts a sunset timeline schedule
shall include a sunset provision that is consistent with other
agencies, departments, and programs.
   (2) If a new agency, department, or program is created, the new
agency, department, or program shall also be reviewed after the fifth
year.
   (3) If a new agency, department, or program, prior to its initial
sunset review, exceeds its estimated costs by more than 10 percent in
a year, it shall be reviewed in the following year.
   8466.  (a) After the Legislature adopts a sunset timeline
schedule, the Chief Inspector General shall coordinate with other
state auditing entities to review each agency, department, and
program. All state agencies, departments, and programs shall
cooperate with the Office of the Chief Inspector General and provide
access to its records, including, but not limited to, any
information, suggestions, estimates, data, and statistics relating to
the agency, department, or program that it may have available.
   (b) In making the determinations and recommendations contained in
the report prepared pursuant to subdivision (c), the Chief Inspector
General shall identify and consider all of the following criteria:
   (1) The consistency of the efficient performance of essential
services, activities, and functions with which the agency,
department, or program operates.
   (2) An identification of the mission, goals, and objectives
intended for the agency, department, or program and the problem or
need that the agency, department, or program was intended to address.

   (3) The extent to which the mission, goals, and objectives have
been achieved and the problem or need for its function has been
addressed.
   (4) An identification of any activities of the agency, department,
or program, in addition to those authorized by statute, the
authority for those activities, and the extent to which those
activities are necessary.
   (5) Whether a function of the agency, department, or program is
currently being provided by another entity, including, but not
limited to, a local government, nonprofit, or private entity.
   (6) Whether alternative methods of performing a function of the
agency, department, or program could more adequately provide service
to the public.
   (7) The extent to which the jurisdiction of the agency or
department and the programs administered by the agency or department
overlap or duplicate those of other agencies or departments, and the
extent to which the programs administered by the agency or department
can be consolidated with the programs of other state agencies or
departments.
   (8) The promptness and effectiveness with which the agency,
department, or program addresses the complaints concerning entities
or other persons affected by the agency, department, or program,
including an assessment of the agency, department, or program's
administrative hearing process.
   (9) An assessment of the agency, department, or program's
rulemaking process, the extent to which the agency or department has
encouraged participation by the public in making rules and decisions,
and the extent to which the public participation has resulted in
rules that benefit the public.
   (10) Whether administrative and statutory changes are necessary to
improve agency, department, or program operations to enhance the
public interest.
   (11) The effect of federal intervention or loss of federal funds
if the agency, department, or program is abolished.
   (c) As part of the review process, the Chief Inspector General
shall publish a report recommending statutory changes and internal
operation improvements for the agencies, departments, and programs
under review. The report shall include, but not be limited to, all of
the following:
   (1) The findings and determinations regarding the review criteria.

   (2) Recommendations to abolish, continue, or reorganize each
agency, department, and program under review.
   (3) Recommendations to consolidate, transfer, or reorganize a
program that is not under review if it duplicates functions of an
agency, department, or program that is under review.
   (4) Recommendations, including regulations that do not require a
change in statute, to improve the operations of an agency,
department, or program that is under review. If the Chief Inspector
General recommends improvements, the Bureau of State Audits shall
conduct a followup audit of the agency, department, or program to
determine if the recommendations have been implemented.
   (5) The estimated fiscal impact of the recommendations.
   (d) The Chief Inspector General shall submit a copy of the report
published pursuant to this section to the Milton Marks "Little Hoover"
Commission on California State Government Organization and Economy.
The commission shall conduct a public hearing to review the report,
and shall either approve, modify, or reject the report's findings.
The commission shall submit its recommendations, along with the Chief
Inspector General's report, to the Legislature, so that the
recommendations and the report may be considered by the Legislature
in the form of a bill.
   (e) The Legislature shall consider the bill proposed by the
commission pursuant to this section without modification.
   8467.  If an agency, department, or program is abolished pursuant
to this chapter, all of the following shall apply:
   (a) All appropriations to the agency, department, or program shall
lapse, and remaining funds dedicated to the agency, department, or
program shall revert to the General Fund.
   (b) All remaining contractual obligations, including bonded
indebtedness, of an abolished agency or department shall remain valid
and enforceable. The Governor shall designate an agency or
department to administer payments and fulfill contracts until all
obligations are satisfied.
   (c) Property and records of the abolished agency, department, or
program shall be transferred to an agency, department, or program as
designated by the Governor.
   8468.  During each legislative session, the Chief Inspector
General shall monitor legislation affecting an agency, department, or
program that has been reviewed pursuant to the sunset timeline
schedule, and periodically report to the Legislature when proposed
changes would modify previous recommendations adopted by the
Legislature pursuant to Section 8466. The Chief Inspector General
shall also review any bill the Legislature introduces that would
create a new state agency, department, or program.  
  SECTION 1.    Section 8504 of the Government Code
is amended to read:
   8504.  For purposes of this chapter, the Members of the
Legislature serving as members of the commission shall be considered
a joint committee of the two houses of the Legislature constituted
and acting as an investigating committee, and shall have the powers
and duties imposed on these joint committees by the Joint Rules of
the Senate and Assembly.