BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 878
                                                                  Page  1

          Date of Hearing:   August 16, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                  SB 878 (DeSaulnier) - As Amended:  August 9, 2012 

          Policy Committee:                              
          TransportationVote:9-3

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:               

           SUMMARY  

          This bill:

          1)Establishes an independent Office of Transportation Inspector 
            General (OTIG) to ensure that transportation funds are 
            operating efficiently, effectively, and in compliance with 
            applicable federal and state laws. The OTIG is to review 
            policies, practices, and procedures, and conduct audits and 
            investigations of all activities involving state 
            transportation funds, in consultation with all affected 
            agencies.

          2)Stipulates that funding for OTIG shall come from federal 
            transportation funds to the extent possible, with any 
            shortfall in federal funding to come proportionately from the 
            Highway Users Tax Account and an account funding high-speed 
            rail.

           FISCAL EFFECT  

          Annual federal fund and special fund costs would initially be in 
          the range of $1 million, but over time would likely increase to 
          several million dollars. (For 2012-13, the Office of Inspector 
          General for Corrections consists of 86 positions at a cost of 
          $14.5 million.)

           COMMENTS  

           Purpose  . According to the author, as the state's transportation 
          resources diminish, efficient and effective use of every dollar 
          becomes increasingly critical. The author believes an office of 








                                                                  SB 878
                                                                  Page  2

          inspector general will help encourage improved use of state 
          resources. Further, in light of recent findings raising concerns 
          about Caltrans' bridge inspection program, the author believes 
          an independent office such as the one proposed would improve the 
          safety of the state's transportation system.

          This bill was a gut and amend in the Assembly, and thus was 
          never heard in the Senate.

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