BILL ANALYSIS �
SB 878
Page 1
SENATE THIRD READING
SB 878 (DeSaulnier)
As Amended August 9, 2012
Majority vote
SENATE VOTE :Vote not relevant
TRANSPORTATION 9-3 APPROPRIATIONS 12-5
-----------------------------------------------------------------
|Ayes:|Bonnie Lowenthal, |Ayes:|Gatto, Blumenfield, |
| |Blumenfield, Bonilla, | |Bradford, |
| |Buchanan, Eng, Furutani, | |Charles Calderon, Campos, |
| |Galgiani, Portantino, | |Davis, Fuentes, Hall, |
| |Solorio | |Hill, Cedillo, Mitchell, |
| | | |Solorio |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Logue, Miller, Norby |Nays:|Harkey, Donnelly, |
| | | |Nielsen, Norby, Wagner |
| | | | |
-----------------------------------------------------------------
SUMMARY : Creates Office of the Transportation Inspector General
(IG) within state government to oversee transportation.
Specifically, this bill :
1)Establishes the IG to ensure the California Department of
Transportation (Caltrans), the High-Speed Rail Authority
(HSRA) and all other state, regional, and local agencies that
use state transportation funds are operating efficiently,
effectively, and in compliance with federal and state laws.
2)Directs the Governor to appoint the IG to a six-year term and
prohibits the IG from being removed from office during that
term, except for good cause.
3)Directs the IG to review policies, practices, and procedures,
and conduct audits and investigations of activities involving
state transportation funds.
4)Directs the IG to report annually to the Governor and
Legislature with a summary of his or her findings,
investigation, and audits; requires that this summary be
posted on the IG's Internet Web site.
SB 878
Page 2
5)Directs the IG, in consultation with the Department of
Finance, to develop a methodology for developing a budget for
the IG's office. Provides that, to the extent possible, the
IG's office should be funded with federal transportation
funds; otherwise funds should be made available proportionally
from the Highway Users Tax Account and from an account from
which high-speed rail activities may be funded.
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
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 : According to the Assembly Appropriations
Committee, 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.
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:
SB 878
Page 3
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 IG for transportation
may help encourage improved use of state resources.
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.
Analysis Prepared by : Janet Dawson / TRANS. / (916) 319-2093
FN: 0005023