BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 471
                                                                  Page  1

          Date of Hearing:   May 11, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

               AB 471 (Bonnie Lowenthal) - As Amended:  April 25, 2011 

          Policy Committee:                              
          TransportationVote:14-0

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:               

           SUMMARY  

          This bill establishes an independent Inspector General (IG) to 
          oversee the High-Speed Rail Authority (HSRA). Specifically, this 
          bill:

          1)Requires the governor to appoint the IG for a six-year term, 
            subject to Senate confirmation.

          2)Requires the IG to:

             a)   Review HSRA policies and procedures and conduct audits 
               and investigations of the authority's activities.

             b)   Report quarterly at an HSRA public meeting on authority 
               expenditures for travel, meals, etc.

             c)   Report annually to the governor and Legislature a 
               summary of the IA's activities.

           FISCAL EFFECT 

          Ongoing costs in the range of $500,000 to $1 million annually 
          for an IG Office. (The former Inspector General for Veterans 
          Affairs, which was eliminated in 2004-05, had an annual budget 
          of $425,000.)

           COMMENTS  

           1)Purpose  . According to the author, AB 471 creates an 
            independent and objective means to conduct and supervise 
            audits and investigations related to the Authority, prevent 








                                                                  AB 471
                                                                  Page  2

            and detect fraud and abuse, and keep the governor and the 
            Legislature informed about problems and deficiencies related 
            to the Authority and the project.  The author asserts this 
            enhanced level of oversight is merited because of the unique 
            organizational structure of the Authority, the sheer size and 
            complexity of the project, and the existing program 
            deficiencies identified to date.

           2)Related Legislation  . AB 145 (Galgiani), pending on this 
            committee's Suspense file, establishes a Department of 
            High-Speed Rail to implement the high-speed train program, and 
            recasts the authority as a policy-making body for that 
            program.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081