BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 878
                                                                  Page 1

          Date of Hearing:   July 2, 2012

                        ASSEMBLY COMMITTEE ON TRANSPORTATION
                               Bonnie Lowenthal, Chair
                   SB 878 (DeSaulnier) - As Amended: June 25, 2012

           SENATE VOTE  :  Not relevant
           
          SUBJECT  :  Office of Inspector General for transportation

           SUMMARY  :  Directs the California Transportation Commission (CTC) 
          to study the appropriateness of establishing an office of 
          inspector general within state government to oversee 
          transportation.  Specifically,  this bill  :  

          1)Requires CTC to study the appropriateness of establishing an 
            office of inspector general to ensure the California 
            Department of Transportation (Caltrans) and transportation 
            agencies with projects funded completely or in part from funds 
            in the state transportation improvement program (STIP) are 
            operating efficiently, effectively, and in compliance with 
            federal and state laws governing the performance of 
            transportation agencies.  

          2)Directs CTC to review the federal Inspector General Act of 
            1978, the experiences of other states that have an office of 
            inspector general, and the experiences of local transportation 
            agencies that have an office of inspector general.  

          3)Directs CTC also to consult with the Bureau of State Audits, 
            the Inspector General of the United States Department of 
            Transportation, and other individuals and organizations that 
            may have relevant information related to an office of 
            inspector general.  

          4)Requires CTC to prepare a written report regarding the 
            advisability of creating an office of inspector general and to 
            submit the report to the Governor and the Legislature by 
            January 31, 2014.  

           EXISTING LAW  :  

          1)Creates an independent Office of the Inspector General to be 
            responsible for contemporaneous oversight of internal affairs 
            investigations and the disciplinary process of the Department 








                                                                  SB 878
                                                                  Page 2

            of Corrections and Rehabilitation.  

          2)Creates Offices of Inspector General for the Los Angeles 
            Unified School District and the Los Angeles County 
            Metropolitan Transportation Authority.  

          3)Creates the Bureau of State Audits (BSA) to be independent of 
            the executive branch and legislative control.  

          4)Vests BSA with the responsibility to examine and report 
            annually upon the financial statements prepared by the 
            executive branch of the state and to perform other related 
            assignments, including performance audits that are mandated by 
            statute.  
           
          FISCAL EFFECT  :  Unknown

           COMMENTS  :  Inspectors general are responsible for examining the 
          actions of government agencies to ensure they are operating in 
          compliance with generally established policies of government, to 
          provide leadership and coordination, to recommend policies for 
          activities designed to promote economy, efficiency, and 
          effectiveness, and to prevent and detect fraud and abuse.  

          Inspectors general are used at all levels of governments, for 
          example:

          1)At the federal level, there are over seventy offices of 
            inspectors general, including an Office of Inspector General 
            for Transportation.  

          2)California has multiple inspectors general to oversee state 
            departments, including Corrections and Rehabilitation, the 
            California Highway Patrol, and the State Military Department.  


          3)In Los Angeles, inspectors general oversee the school 
            district, police department, and transportation authority, 
            among others.  

          According to the author, as the state's transportation resources 
          diminish, efficient and effective use of every dollar becomes 
          increasingly critical and he believes an office of inspector 
          general may help encourage improved use of state resources.  He 
          has introduced SB 878 so that the concept can be studied and 








                                                                  SB 878
                                                                  Page 3

          potential costs and benefits evaluated prior to creating the 
          office.  

          Suggested amendment:  The bill limits the proposed purview of 
          the inspector general to Caltrans and transportation agencies 
          with projects funded completely or in part from funds in the 
          STIP.  This scope is far too narrow and should be expanded, at a 
          minimum, to include high-speed rail as well as transportation 
          agencies that receive state bond money in addition to STIP 
          dollars.   
           
          Related legislation:  AB 471 (Lowenthal) of 2011 would have 
          created an independent Office of Inspector General to oversee 
          the High-Speed Rail Authority.  That bill was held on the 
          Assembly suspense file.  

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          None on file
           
            Opposition 
           
          None on file

           
          Analysis Prepared by  :   Janet Dawson / TRANS. / (916) 319-2093