Bill Text: CA AB539 | 2009-2010 | Regular Session | Chaptered
Bill Title: State Auditor.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2009-08-06 - Chaptered by Secretary of State - Chapter 115, Statutes of 2009. [AB539 Detail]
Download: California-2009-AB539-Chaptered.html
BILL NUMBER: AB 539 CHAPTERED
BILL TEXT
CHAPTER 115
FILED WITH SECRETARY OF STATE AUGUST 6, 2009
APPROVED BY GOVERNOR AUGUST 5, 2009
PASSED THE SENATE JULY 9, 2009
PASSED THE ASSEMBLY MAY 14, 2009
INTRODUCED BY Assembly Member Monning
FEBRUARY 25, 2009
An act to amend Sections 8545.2, 8546, 8546.1, 8546.4, and 8547.7
of the Government Code, relating to the State Auditor.
LEGISLATIVE COUNSEL'S DIGEST
AB 539, Monning. State Auditor.
Existing law requires the State Auditor to establish an
affirmative action program that meets the criteria and objectives
established by the State Personnel Board.
This bill would instead require the State Auditor to establish an
equal employment opportunity program that meets the criteria and
objectives established by the State Personnel Board.
Existing law requires the State Auditor to complete any audit in a
timely manner and in accordance with the "Government Auditing
Standards" published by the Comptroller General of the United States.
The State Auditor is required to transmit a copy of the audit report
to the Milton Marks "Little Hoover" Commission on California State
Government Organization and Economy, immediately upon completion of
the audit. The commission is then required to deliver the report to
the Legislature, appropriate committees or subcommittees of the
Legislature, and the Governor, not later than 24 hours after delivery
of the report to the commission.
This bill would instead require the State Auditor to deliver the
report to the Legislature, appropriate committees or subcommittees of
the Legislature, and the Governor, not later than 24 hours after
delivery of the report to the commission.
Existing law requires the State Auditor to annually issue an
auditor's report based upon the general purpose financial statements
included in the Controller's annual report to the Governor. The State
Auditor is authorized to examine all the financial records,
accounts, and documents of any state agency, as defined, in the
performance of this annual audit.
This bill would instead authorize the State Auditor to examine all
the financial records, accounts, and documents of any state agency,
as defined, in the performance of this annual audit and any other
audit or investigation undertaken by the Bureau of State Audits.
Under existing law, if the State Auditor submits a report of
alleged improper activity to the head of an employing agency or
appropriate appointing authority, that individual is required to
report to the State Auditor with respect to any action taken by the
individual regarding the activity. That individual is required to
transmit the first report no later than 30 days after the date of the
State Auditor's report, and to transmit monthly reports thereafter
until final action has been taken.
This bill would instead require the head of the employing agency
or appropriate appointing authority to transmit the first report to
the State Auditor no later than 60 days after the date of the State
Auditor's report.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 8545.2 of the Government Code is amended to
read:
8545.2. (a) Notwithstanding any other provision of law, the State
Auditor during regular business hours shall have access to and
authority to examine and reproduce, any and all books, accounts,
reports, vouchers, correspondence files, and all other records, bank
accounts, and money or other property, of any agency of the state,
whether created by the California Constitution or otherwise, any
local governmental entity, including any city, county, and school or
special district, and any publicly created entity, for any audit or
investigative audit. Any officer or employee of any agency or entity
having these records or property in his or her possession, under his
or her control, or otherwise having access to them, shall permit
access to, and examination and reproduction thereof, upon the request
of the State Auditor or his or her authorized representative.
(b) For the purposes of access to and examination and reproduction
of the records and property described in subdivision (a), an
authorized representative of the State Auditor is an employee or
officer of the state or local governmental agency or publicly created
entity involved and is subject to any limitations on release of the
information as may apply to an employee or officer of the state or
local governmental agency or publicly created entity. For the purpose
of conducting any audit or investigation, the State Auditor or his
or her authorized representative shall have access to the records and
property of any public or private entity or person subject to review
or regulation by the public agency or public entity being audited or
investigated to the same extent that employees or officers of that
agency or public entity have access. No provision of law providing
for the confidentiality of any records or property shall prevent
disclosure pursuant to subdivision (a), unless the provision
specifically refers to and precludes access and examination and
reproduction pursuant to subdivision (a). This subdivision does not
apply to records compiled pursuant to Part 1 (commencing with Section
8900) or Part 2 (commencing with Section 10200) of Division 2.
(c) Any officer or person who fails or refuses to permit access
and examination and reproduction, as required by this section, is
guilty of a misdemeanor.
SEC. 2. Section 8546 of the Government Code is amended to read:
8546. It is the intent of the Legislature that the Bureau of
State Audits have the independence necessary to conduct all of its
audits in conformity with "Government Auditing Standards" published
by the Comptroller General of the United States and the standards
published by the American Institute of Certified Public Accountants,
free from influence of existing state control agencies that could be
the subject of audits conducted by the bureau. Therefore, all of the
following exclusions apply to the office:
(a) Notwithstanding Section 19790, the State Auditor shall
establish an equal employment opportunity program that shall meet the
criteria and objectives established by the State Personnel Board.
The State Auditor shall report annually to the State Personnel Board
and the commission regarding the program.
(b) Notwithstanding Section 12470, the State Auditor shall be
responsible for maintaining its payroll system. In lieu of audits of
the uniform payroll system performed by the Controller or any other
department, the office shall contract pursuant to subdivision (e) of
Section 8544.5 for an annual audit of its payroll and financial
operations by an independent public accountant.
(c) Notwithstanding Section 13292, the State Auditor is delegated
the authority to establish and administer the fiscal and
administrative policies of the bureau in conformity with the State
Administrative Manual without oversight by the Department of Finance,
the Department of Information Technology, or any other state agency.
(d) Notwithstanding Section 11032, the State Auditor may approve
actual and necessary traveling expenses for travel outside the state
for officers and employees of the bureau.
(e) Notwithstanding Section 11033, the State Auditor or officers
and employees of the bureau may be absent from the state on business
of the state upon approval of the State Auditor or Chief Deputy State
Auditor.
(f) Sections 11040, 11042, and 11043 shall not apply to the Bureau
of State Audits. The State Auditor may employ legal counsel under
those terms that he or she deems necessary to conduct the legal
business of, or render legal counsel to, the State Auditor.
(g) The provisions and definitions of Article 2 (commencing with
Section 11342.510) of Chapter 3.5 of Division 3 shall not be
construed to include the Bureau of State Audits. The State Auditor
may adopt regulations necessary for the operation of the bureau
pursuant to the provisions of the Administrative Procedure Act
(Chapter 3.5 (commencing with Section 11340) of Division 3), but
these regulations shall not be subject to the review or approval of
the Office of Administrative Law.
(h) The State Auditor shall be exempt from all contract
requirements of the Public Contract Code that require oversight,
review, or approval by the Department of General Services or any
other state agency. The State Auditor may contract on behalf of the
State of California for goods and services that he or she deems
necessary for the furtherance of the purposes of the bureau.
(i) (1) Subject to Article VII of the California Constitution, the
State Auditor is delegated the authority to establish and administer
the personnel policies and practices of the Bureau of State Audits
in conformity with Part 2.6 (commencing with Section 19815) of
Division 5 of Title 2 without oversight or approval by the Department
of Personnel Administration.
(2) At the election of the State Auditor, officers and employees
of the bureau may participate in benefits programs administered by
the Department of Personnel Administration subject to the same
conditions for participation that apply to civil service employees in
other state agencies. For the purposes of benefits programs
administration only, the State Auditor is subject to the
determinations of the department. The Bureau of State Audits shall
reimburse the Department of Personnel Administration for the normal
administrative costs incurred by the Department of Personnel
Administration and for any extraordinary costs resulting from the
inclusion of the bureau employees in these state benefit programs.
SEC. 3. Section 8546.1 of the Government Code is amended to read:
8546.1. (a) The State Auditor shall conduct financial and
performance audits as directed by statute. The State Auditor may
conduct these audits of any state agency as defined by Section 11000,
whether created by the California Constitution or otherwise, any
local governmental agency, including any city, county, and school or
special district, or any publicly created entity. However, the State
Auditor shall not audit the activities of the Milton Marks Commission
on California State Government Organization and Economy or the
Legislature to assure compliance with government auditing standards.
(b) The State Auditor shall conduct any audit of a state or local
governmental agency or any other publicly created entity that is
requested by the Joint Legislative Audit Committee to the extent that
funding is available and in accordance with the priority established
by the committee with respect to other audits requested by the
committee. Members of the Legislature may submit requests for audits
to the committee for its consideration and approval. Any audit
request approved by the committee shall be forwarded to the State
Auditor as a committee request.
(c) The State Auditor shall complete any audit in a timely manner
and in accordance with the "Government Auditing Standards" published
by the Comptroller General of the United States.
(d) Immediately upon completion of the audit, the State Auditor
shall transmit a copy of the audit report to the commission. Not
later than 24 hours after delivery to the commission, the State
Auditor shall deliver the report to the Legislature, appropriate
committees or subcommittees of the Legislature, and the Governor.
Once transmitted to these parties, the report shall be made available
to the public.
SEC. 4. Section 8546.4 of the Government Code is amended to read:
8546.4. (a) The State Auditor shall annually issue an auditor's
report based upon the general purpose financial statements included
in the Controller's annual report that is submitted to the Governor
pursuant to Section 12460. The report shall be in accordance with the
"Government Auditing Standards" published by the Comptroller General
of the United States and the standards published by the American
Institute of Certified Public Accountants.
(b) The State Auditor, in the performance of this annual audit and
any other audit or investigation undertaken by the bureau, may
examine all the financial records, accounts, and documents of any
state agency as defined by Section 11000.
(c) The State Auditor shall rely, to the maximum extent possible,
upon the audits performed by the Controller, the Department of
Finance, internal auditors of state agencies, and independent
contractors. The Director of Finance shall be responsible for
coordinating and providing technical assistance to the internal
auditors of state agencies. Nothing in this article is intended to
reduce or restrict the operations of internal auditors whose review
of internal financial and administrative controls of state agencies
is essential for coordinated audits.
(d) State agencies receiving federal funds shall be primarily
responsible for arranging for federally required financial and
compliance audits. State agencies shall immediately notify the
Director of Finance, the State Auditor, and the Controller when they
are required to obtain federally required financial and compliance
audits. The Director of Finance, the State Auditor, and the
Controller shall coordinate the procurement by state agencies,
including any negotiations with cognizant federal agencies, of
federally required financial and compliance audits.
(e) To prevent duplication of the annual audit conducted by the
State Auditor pursuant to subdivision (a), except for those state
agencies that are required by state law to obtain an annual audit, no
state agency shall enter into a contract for a financial or
compliance audit without prior written approval of the Controller and
the Director of Finance, which approval shall state the reason for
the contract and shall be filed with the State Auditor at least 30
days prior to the award of the contract. No funds appropriated by the
Legislature shall be encumbered for the purpose of funding any
contract for an audit that duplicates the annual financial audit
conducted by the State Auditor.
(f) Notwithstanding any other provision of this article, nothing
in this section shall be construed to limit, restrict, or otherwise
infringe upon the constitutional or statutory authority of the
Controller to superintend the fiscal concerns of the state.
(g) Except as provided in subdivision (b), notwithstanding any
other provision of this article, nothing in this section shall be
construed to limit, restrict, or otherwise infringe upon the
statutory authority of the Director of Finance to supervise the
financial and business policies of the state.
SEC. 5. Section 8547.7 of the Government Code is amended to read:
8547.7. (a) If the State Auditor determines that there is
reasonable cause to believe that an employee or state agency has
engaged in any improper governmental activity, he or she shall report
the nature and details of the activity to the head of the employing
agency, or the appropriate appointing authority. If appropriate, the
State Auditor shall report this information to the Attorney General,
the policy committees of the Senate and Assembly having jurisdiction
over the subject involved, and to any other authority that the State
Auditor determines appropriate.
(b) The State Auditor shall not have any enforcement power. In any
case in which the State Auditor submits a report of alleged improper
activity to the head of the employing agency or appropriate
appointing authority, that individual shall report to the State
Auditor with respect to any action taken by the individual regarding
the activity, the first report being transmitted no later than 60
days after the date of the State Auditor's report and monthly
thereafter until final action has been taken.
(c) Every investigative audit shall be kept confidential, except
that the State Auditor may issue any report of an investigation that
has been substantiated, keeping confidential the identity of the
individual or individuals involved, or release any findings resulting
from an investigation conducted pursuant to this article that is
deemed necessary to serve the interests of the state.
(d) This section shall not limit any authority conferred upon the
Attorney General or any other department or agency of government to
investigate any matter.
