Office of the California Inspector General: establishment.

Existing law establishes the Bureau of State Audits, free of executive branch and legislative control, to independently examine records, administer oaths, issue subpoenas, and use other discovery tools to conduct, and report upon, financial and performance audits of every state agency, as defined, constitutional office, and local governmental agency. The head of the bureau is the State Auditor, who is appointed by the Governor from a list of nominees created by both houses of the Legislature. The State Auditor is chosen without reference to political affiliation and solely on the grounds of fitness to perform the duties of the office. The State Auditor may be removed for cause at any time by a concurrent resolution of the Legislature. The State Auditor also appoints a Chief Deputy State Auditor and employs professional assistants, including deputy state auditors, and other officers and employees for the effective conduct of the work under his or her charge. The State Auditor also administers the California Whistleblower Protection Act to provide a procedure for state employees to report waste, fraud, abuse of authority, violation of law, or threat to public health without fear of retribution. This bill would establish the Office of the California Inspector General to investigate fraud, corruption, waste, mismanagement, misconduct, and abuse in the expenditure of public funds by a covered agency, as defined. This bill would further establish that the office is headed by the California Inspector General, who is appointed to a 4-year term by the Governor with the consent of the Senate. This bill would authorize the Legislature to remove the California Inspector General by a majority vote of the membership of the Senate and a majority of the membership of the Assembly. This bill would authorize the office to issue subpoenas, administer oaths, and conduct other forms of investigation into a covered agency, including requiring an officer or employee of a covered agency to answer questions concerning any matter related to the performance of his or her official duties. This bill would also impose a duty on every officer and employee of a covered agency to report to the California Inspector General specified information concerning the improper conduct of any other state officer or employee relating to his or her office or employment, or concerning a person having business dealings with a covered agency, and require disciplinary action for a failure to make a required report. This bill would further require the head of a covered agency to report to the Legislature and the Governor on remedial action that a covered agency has taken in response to any recommendation by the California Inspector General.