BILL NUMBER: SB 777	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 25, 2011
	AMENDED IN SENATE  MARCH 24, 2011

INTRODUCED BY   Senator Lieu

                        FEBRUARY 18, 2011

    An act to repeal and add Section 6125 of the Penal Code,
relating to corrections.   An act to add Section 8546.9
to the Government Code, relating to state government. 


	LEGISLATIVE COUNSEL'S DIGEST


   SB 777, as amended, Lieu.  Inspector General. 
 State Auditor: financial and performance audits.  
   Existing law establishes the Bureau of State Audits, which is
headed by the State Auditor and has specified statutory duties,
including the performance of statutorily mandated audits. Existing
law also provides that the Bureau of State Audits, in order to be
free of organizational impairments to independence, is independent of
the executive branch and legislative control.  
   This bill would authorize the State Auditor to establish a
corrections audit program for the purpose of conducting, reporting
on, and tracking the resolution of, financial and performance audits
of the programs and functions of the Department of Corrections and
Rehabilitation, as prescribed. The bill would require the State
Auditor, upon the completion of these audits, to prepare a written
report which would be disclosed to specified entities and posted on
the State Auditor's Internet Web site, as specified.  
   Existing law creates the independent Office of the Inspector
General and requires the Governor to appoint the Inspector General,
as specified. Existing law requires the Inspector General, among
other things, to review department policy and procedures, conduct
audits of investigatory practices and other audits, be responsible
for contemporaneous oversight of internal affairs investigations and
the disciplinary process, and conduct investigations of the
Department of Corrections and Rehabilitation, as specified. Existing
law allows the Inspector General, under policies developed by the
Inspector General, to initiate an investigation or an audit on his or
her own accord. 
   This bill would, as of January 1, 2012, require the Bureau of
State Audits to succeed to all the duties and responsibilities of the
Office of the Inspector General. The bill would provide that any
statutory reference to the Office of the Inspector General refers to
the Bureau of State Audits and any statutory reference to the
Inspector General refers to the State Auditor. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

   SECTION 1.    Section 8546.9 is added to the 
 Government Code   , to read:  
   8546.9.  (a) The State Auditor may establish a corrections audit
program for the purpose of conducting, reporting on, and tracking the
resolution of, financial and performance audits of the programs and
functions of the Department of Corrections and Rehabilitation.
Financial audits shall examine financial statements and financially
related activities and monitor expenditures made under the department'
s contracts, grants, and other agreements. Performance audits shall
review the practices and programs of the department to determine
whether the department is managing its resources in an effective,
economical, and efficient manner consistent with the evidence-based
correctional practices and public safety. Financial and performance
audits conducted pursuant to this section shall be conducted in
accordance with professional auditing standards and shall include
recommended actions to correct deficiencies.
   (b) (1) Notwithstanding Section 10231.5, upon the completion of
any audit conducted pursuant to this section, the State Auditor shall
prepare a written report which shall be disclosed, along with any
underlying materials that the State Auditor deems appropriate, to the
Governor, the Legislature, the Secretary of the Department of
Corrections and Rehabilitation, and the appropriate director, chair,
or law enforcement agency. Copies of all written reports shall be
posted on the State Auditor's Internet Web site within 10 days of
being disclosed as described in this subdivision.
   (2) A report submitted to the Legislature pursuant to this
subdivision shall be submitted in compliance with the Section 9795.
 
  SECTION 1.    Section 6125 of the Penal Code is
repealed.  
  SEC. 2.    Section 6125 is added to the Penal
Code, to read:
   6125.  Commencing January 1, 2012, the Bureau of State Audits
shall succeed to all the duties and responsibilities of the Office of
the Inspector General. Commencing January 1, 2012, any reference to
the Office of the Inspector General in this or any other code refers
to the Bureau of State Audits and any reference to the Inspector
General in this or any other code refers to the State Auditor.