Bill Text: CA SB1488 | 2021-2022 | Regular Session | Enrolled
Bill Title: San Francisco Bay Area Rapid Transit District: Office of the BART Inspector General.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Vetoed) 2022-09-28 - In Senate. Consideration of Governor's veto pending. [SB1488 Detail]
Download: California-2021-SB1488-Enrolled.html
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Enrolled
August 26, 2022 |
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Passed
IN
Senate
August 24, 2022 |
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Passed
IN
Assembly
August 22, 2022 |
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Amended
IN
Assembly
August 18, 2022 |
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Amended
IN
Assembly
June 22, 2022 |
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Amended
IN
Senate
March 16, 2022 |
CALIFORNIA LEGISLATURE—
2021–2022 REGULAR SESSION
Senate Bill
No. 1488
| Introduced by Senator Glazer |
February 18, 2022 |
An act to amend Sections 28840, 28841, and 28844 of, to add Sections 28841.2, 28841.4, and 28841.6 to, and to repeal Section 28845 of, the Public Utilities Code, relating to transportation.
LEGISLATIVE COUNSEL'S DIGEST
SB 1488, Glazer.
San Francisco Bay Area Rapid Transit District: Office of the BART Inspector General.
Existing law establishes the San Francisco Bay Area Rapid Transit District (BART), governed by a board of directors, with specified powers and duties relative to the construction and operation of a rapid transit system. Existing law also establishes the independent Office of the BART Inspector General within BART and requires the BART Inspector General to be appointed to serve an initial 4-year term by the Governor from a list of 3 nominees submitted by the board. Existing law requires the Inspector General to be removed from office by the board of directors, subject to the approval of the Governor, under certain circumstances. Existing law specifies the duties and responsibilities of the Inspector General including, among others, conducting, supervising, and coordinating audits and investigations relating to the district’s programs and operations.
This bill would revise the duties and responsibilities of the Inspector General by, among other things, requiring the Inspector General to engage in fraud prevention activities and provide recommendations to strengthen internal controls that will prevent or detect fraud, waste, or abuse. The bill would revise the manner in which the Inspector General is required to be removed from office.
The bill would provide that the Inspector General shall have the independence necessary to conduct all of its audits and investigations in conformity with specified standards. To ensure the confidentiality of its work from the district, the bill would authorize the Office of the BART Inspector General to establish a system for maintaining records that is outside of the district’s computer network and not accessible by the district, as specified. The bill would authorize the Inspector General to appoint, employ, evaluate, and remove
assistants, employees, and personnel, and to prescribe their duties, scope of authority, and qualifications, as specified.
The bill would provide the Inspector General with access and authority to examine all records, files, documents, accounts, reports, correspondence, or other property of the district and external entities that perform work for the district, and to meet with any employee or officer of the district or a contractor of the district as necessary to complete an audit or investigation, as specified. The bill would prohibit an employee or officer of the district or a contractor of the district from engaging in specified activities in connection with an audit, investigation, or review conducted by the Inspector General. The bill would authorize the Inspector General to issue subpoenas for the attendance of witnesses and the production of records, files, documents, accounts, reports, correspondence, or other property, or for the making of oral or written
sworn statements, in any interview conducted as part of an audit, investigation, or review.
Existing law requires the board of directors of BART to appoint a general manager who is responsible, subject to the direction and control of the board, for the acquisition, construction, maintenance, and operation of the facilities of the district and also for the administration of the business affairs of the district.
This bill would require the general manager or appropriate district officer to respond to findings and recommendations made by the Office of the BART Inspector General within a reasonable amount of time, not to exceed 30 days.
By creating new duties for a local agency, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts
for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YESBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 28840 of the Public Utilities Code is amended to read:28840.
(a) There is hereby created in the district an independent Office of the BART Inspector General to ensure that the district makes effective use of bridge toll revenue and other revenue and operates efficiently, effectively, and in compliance with applicable federal, state, and local laws.(b) (1) The board shall nominate three persons to the Governor who shall appoint one of the three persons nominated by the board to serve as the BART Inspector General for an initial four-year term. The board shall have the option to renew the term at will. The Inspector General shall be removed from office
during a term, subject to approval of the Governor, only if either of the following occur:
(A) A two-thirds majority of the members of the board votes for removal for good cause.
(B) The Inspector General violates a federal or state law or regulation, a local ordinance, or a policy or practice of the district relative to ethical
practices, including, but not limited to, the acceptance of gifts or contributions, and a majority of the members of the board votes for removal.
(2) The reasons for removal of the Inspector General shall be stated in writing and shall include the basis for removal. The document stating the reasons for dismissal shall be deemed a public document and posted on the district’s internet website.
(c) The office shall have the independence necessary to conduct all of its audits in conformity with the Government
Auditing Standards, published by the Comptroller General of the United States, and its investigations in conformity with the Principles and Standards for Offices of Inspector General, published by the Association of Inspectors General. This independence includes being free from impairments from the district that may restrict the office’s ability to conduct independent and objective audits or investigations and issue reports based on the results.
(d) For purposes of this article, “office” means the Office of the BART Inspector General.
SEC. 2.
Section 28841 of the Public Utilities Code is amended to read:28841.
(a) The duties and responsibilities of the BART Inspector General shall include, but are not limited to, all of the following:(1) To examine the operating practices of the district to identify fraud, waste, or abuse, and opportunities for efficiencies in the administration of programs and operations.
(2) To ensure the BART administration, the board of directors, and the public are fully informed of the Inspector General’s findings and recommendations.
(3) To identify opportunities to improve the data used to determine project resource allocations.
(4) To conduct, supervise, and coordinate audits and investigations relating to the district’s programs and operations, including, but not limited to, toll-funded programs, in compliance with the government auditing standards and principles and standards for offices of inspector general described in Section 28840, as applicable.
(5) To identify best practices in the delivery of capital projects, programs, and operations, and recommend policies to enable the district to adopt these practices when practicable.
(6) To recommend policies promoting efficiency in the administration of programs and operations.
(7) To review and recommend best practices that the
district should follow to maintain positive and productive relations with its employees and the collective bargaining units representing those employees.
(8) To engage in fraud prevention activities, including reviewing policies, procedures, and transactions to identify internal control weaknesses that can lead to fraud.
(9) To provide recommendations to strengthen internal controls that will prevent or detect fraud, waste, or abuse.
(10) To provide training to district employees about what fraud is and how to prevent and report it.
(b) In carrying out the duties and responsibilities outlined in subdivision (a), the BART Inspector General shall not interfere with
the original jurisdiction nor unduly influence or undermine the independence of the district’s Office of Civil Rights or the Office of the Independent Police Auditor established pursuant to Section 28767.8 and shall not investigate individual complaints before the Office of Civil Rights or the Office of the Independent Police Auditor has an opportunity to review and make a determination pursuant to their lawful charge.
(c) For purposes of this section, “fraud, waste, and abuse” has the same meaning as defined in Section 53087.6 of the Government Code.
SEC. 3.
Section 28841.2 is added to the Public Utilities Code, to read:28841.2.
(a) The BART Inspector General shall have access and authority to examine all records, files, documents, accounts, reports, correspondence, or other property of the district and external entities that perform work for the district. Notwithstanding the protections granted to the Office of the Independent Police Auditor, the Inspector General may enter any district office or facility and access, examine, and reproduce during regular business hours all records, files, documents, accounts, reports, vouchers, correspondence files, and all other records for any audit or investigation. Any officer or employee of the district or entity having these records or property in their possession, under their control, or otherwise having access to them, shall permit access to, and examination and reproduction of, the records or property upon the request of the Inspector General or the Inspector General’s authorized representative, except as to those materials that are not available due to limitations based upon the law.(b) The BART Inspector General may gain access to confidential records or property that are obtained in connection with any audit, investigation, or review conducted pursuant to subdivision (a) unless a law precludes the Inspector General from accessing, examining, and reproducing any record or property pursuant to subdivision (a). Information or documents obtained in connection with any audit, evaluation, investigation, or review conducted by the Inspector General are subject to any limitations on release of the information or documents as may apply
to an employee or officer of the district or external entity subject to this article that provided the information or documents. Providing confidential information pursuant to this section, including, but not limited to, confidential information that is subject to a privilege, shall not constitute a waiver of that privilege.
(c) (1) The BART Inspector General shall have access to and authority to meet with any employee or officer of the district or a contractor of the district as necessary to complete an audit, investigation, or review.
(2) Before any interview conducted with an employee represented by an employee organization, as defined in Section 28848, who is the subject of an investigation or may be subject to discipline or other adverse consequences as a
result of the investigation, the BART Inspector General shall notify the employee that they are entitled to be accompanied by a representative of the employee organization and that the employee shall have all the rights afforded to them under N.L.R.B. v. J. Weingarten, 420 U.S. 251 (1975).
(3) An employee or officer of the district or a contractor of the district shall not interfere with, act with intent to deceive or defraud, or obstruct the Inspector General in the performance of an audit, investigation, or review conducted pursuant to this article.
(4) An employee or officer of the district or a contractor of the district shall not manipulate, correct, alter, or change records, documents, accounts, reports, or correspondence before or during any audit, investigation, or
review conducted pursuant to this
article unless such action is required for the lawful operation of the district and is clearly admitted, acknowledged, and explained in advance to the BART Inspector General and the original, unedited record is preserved.
(5) An employee or officer of the district or a contractor of the district shall not distribute, reproduce, release, or fail to safeguard confidential draft documents exchanged between the Inspector General and the entity subject to the audit, investigation, or review conducted pursuant to this article without the Inspector General’s express permission.
(d) (1) The BART Inspector General, or their designee, may issue subpoenas for the attendance of witnesses and the production of records, files, documents, accounts, reports,
correspondence, or other property, or for the making of oral or written sworn statements, in any interview conducted as part of an audit, investigation, or review. Any subpoena issued under this article may be served by any person authorized to serve process of any court of record or by any person designated for that purpose by the Inspector General or their designee.
(2) The superior court in the county in which any interview is
held under the direction of the BART Inspector General, or their designee, pursuant to duties authorized by this article, has jurisdiction to compel the attendance of witnesses, the making of oral or written sworn statements, and the production of records or other property, as required by any subpoena issued by the office. If any person refuses to attend, testify, or produce any records or property required by the subpoena, the BART Inspector General, or their designee, may petition the superior court in the county in which the hearing is pending for an order compelling the person to attend and answer questions under penalty of perjury or produce the records required by the subpoena.
SEC. 4.
Section 28841.4 is added to the Public Utilities Code, to read:28841.4.
(a) The general manager shall include all of the following in a response to a request to respond to the BART Inspector General’s findings and recommendations:(1) Factual documentation to support any disagreement with any findings.
(2) A corrective action plan for each recommendation, including a timeline for when the recommendation will be implemented.
(3) If the general manager disagrees with a recommendation, a reason for the disagreement and a proposal of an alternate means of correcting the underlying deficiency.
(b) The general manager or appropriate district officer shall respond to findings and recommendations made by the office within a reasonable amount of time, not to exceed 30 days.
(c) The office shall do both of the following:
(1) Determine if the general manager’s proposed and implemented corrective actions satisfy the underlying issues identified in the BART Inspector General’s recommendations.
(2) Determine the accuracy of reports to be published by the
office.
SEC. 5.
Section 28841.6 is added to the Public Utilities Code, to read:28841.6.
(a) The BART Inspector General may appoint, employ, evaluate, and remove assistants, employees, and personnel as deemed necessary for the efficient and effective administration of the affairs of the office and may prescribe their duties, scope of authority, and qualifications. An employee of the office shall be excluded from the definition of an employee for purposes of representation by an employee organization as defined in Section 28848.(b) The office may obtain the services of qualified consultants, investigators, or other professional experts necessary to perform its work, including obtaining independent counsel if the BART Inspector General
identifies a conflict of interest or threat to the office’s independence.
(c) In carrying out the activities described in subdivisions (a) and (b), the BART Inspector General shall adhere to all applicable federal, state, and local laws, as verified by the appropriate district entities responsible for hiring and procurement.
SEC. 6.
Section 28844 of the Public Utilities Code, as amended by Section 404 of Chapter 615 of the Statutes of 2021, is amended to read:28844.
(a) Any investigatory file compiled by the BART Inspector General is an investigatory file compiled by a local law enforcement agency subject to disclosure pursuant to Article 1 (commencing with Section 7923.600) of Chapter 1 of Part 5 of Division 10 of Title 1 of the Government Code.(b) (1) To ensure the confidentiality of its work from the other parts of the district, including emails, the office may establish a system for maintaining records that is outside of the district’s computer network and not accessible by the other parts of the district.
(2) The office shall initially coordinate with the
district’s Office of Technology to determine the appropriate policies, procedures, licensing, and equipment necessary to support the system described in paragraph (1).
