BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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                                    THIRD READING


          Bill No:  AB 1825
          Author:   Nazarian (D)
          Amended:  6/11/14 in Senate
          Vote:     21


           SENATE EDUCATION COMMITTEE  :  6-0, 6/4/14
          AYES:  Liu, Wyland, Block, Hancock, Huff, Monning
          NO VOTE RECORDED:  Correa, Vacancy, Vacancy

           SENATE APPROPRIATIONS COMMITTEE  :  7-0, 6/23/14
          AYES:  De Le�n, Walters, Gaines, Hill, Lara, Padilla, Steinberg

           ASSEMBLY FLOOR  :  75-0, 4/24/14 (Consent) - See last page for  
            vote


           SUBJECT :    Office of the Inspector General

           SOURCE  :     Los Angeles Unified School District


           DIGEST  :    This bill extends the sunset date of the Los Angeles  
          Unified School District's (LAUSD's) Office of the Inspector  
          General by 10 years, from January 1, 2015, to January 1, 2025. 

           ANALYSIS  :    

          Existing law:

          1.Authorizes the LAUSD's Office of Inspector General until  
            January 1, 2015, to conduct audits and investigations, as  
            specified, including the ability to subpoena witnesses,  
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            administer oaths or affirmations, take testimony, and compel  
            the production of all information and documentary evidence  
            deemed material and relevant and that reasonably relate to the  
            inquiry or investigation undertaken by the Inspector General  
            when there is reasonable suspicion that a law, regulation,  
            rule, or district policy has been violated or is being  
            violated.

          2.Provides that "reasonable suspicion" means that the  
            circumstances known or apparent to the Inspector General  
            include specific and articulable facts causing him/her to  
            suspect that a material violation of law, regulation, or  
            school district policy has occurred or is occurring, and that  
            the facts would cause a reasonable officer in a similar  
            position to suspect that a material violation of a law,  
            regulation, rule, or school district policy has occurred or is  
            occurring.

          3.Provides that any person who, after the administration of an  
            oath or affirmation, states or affirms as true any material  
            matter that he/she knows to be false, is a misdemeanor  
            publishable by imprisonment in a county jail not to exceed six  
            months or by a fine of up to $5,000 or both for the first  
            offense, and that each subsequent violation shall be  
            punishable by imprisonment not to exceed one year or by a fine  
            of up to $10,000 or both.

          4.Requires, the Inspector General to submit annual reports to  
            the Legislature and a final cumulative report by December 1,  
            2014, on all of the following:

             A.   The use and effectiveness of the subpoena power in the  
               successful completion of the Inspector General's duties;

             B.   Any use of the subpoena power in which it was quashed,  
               including the basis for the court's order; and

             C.   Any referral to the local district attorney or Attorney  
               General where the district attorney or Attorney General  
               declined to investigate the matter further or declined to  
               prosecute.

          This bill extends the sunset date of LAUSD's authority to have  
          an Office of the Inspector General by 10 years, from January 1,  

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          2015, to January 1, 2025.  It also requires an additional  
          cumulative report in 2025.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

          According to the Senate Appropriations Committee:

           State:  This bill has no direct fiscal impact on the state.

           LAUSD:  Substantial potential costs, to the extent that the  
            LAUSD chooses to continue the Office of the Inspector General,  
            and to the extent the district elects to fund the Office.   
            Potentially substantial local savings, to the extent that  
            investigations and recoveries are successful or deter waste,  
            fraud, and abuse.

           SUPPORT  :   (Verified  6/24/14)

          Los Angeles Unified School District (source)

           ARGUMENTS IN SUPPORT  :    According to the Los Angeles Unified  
          School District, the Inspector General's subpoena power may  
          compel the production of information deemed material and  
          relevant in situations that the Inspector General has reasonable  
          suspicion that a law, regulation, rule, or policy has been  
          violated.  This bill ensures the Inspector General maintains its  
          subpoena power to compel private individuals and entities to  
          collaborate and ensure that audits and investigations are  
          conducted in a timely manner.  The Los Angeles Unified School  
          District has indicated that absent the subpoena authority, the  
          Inspector General could not effectively perform its mission and  
          would be limited in its efforts to provide law enforcement with  
          sufficient information to determine if a prosecution should be  
          pursued.

           ASSEMBLY FLOOR  :  75-0, 4/24/14
          AYES:  Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom,  
            Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian  
            Calderon, Campos, Chau, Ch�vez, Chesbro, Conway, Cooley,  
            Dababneh, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox,  
            Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon,  
            Gorell, Grove, Hagman, Hall, Roger Hern�ndez, Holden, Jones,  
            Jones-Sawyer, Levine, Linder, Logue, Lowenthal, Maienschein,  

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            Medina, Melendez, Mullin, Muratsuchi, Nestande, Olsen, Pan,  
            Patterson, Perea, V. Manuel P�rez, Quirk, Quirk-Silva, Rendon,  
            Ridley-Thomas, Rodriguez, Salas, Skinner, Stone, Ting, Wagner,  
            Waldron, Weber, Wieckowski, Wilk, Williams, Yamada, John A.  
            P�rez
          NO VOTE RECORDED:  Gray, Harkey, Mansoor, Nazarian, Vacancy


          PQ:e  6/24/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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