BILL NUMBER: AB 255AMENDED BILL TEXT AMENDED IN ASSEMBLY APRIL 23, 2015 AMENDED IN ASSEMBLY APRIL 16, 2015 INTRODUCED BY Assembly Member Irwin (Principal coauthor: Assembly Member Mathis) (Coauthors: Assembly Members Brough and Brown) FEBRUARY 9, 2015 An act to add and repeal Sections 73.5 and 73.6 to of the Military and Veterans Code, relating to veterans. LEGISLATIVE COUNSEL'S DIGEST AB 255, as amended, Irwin. Veterans: Inspector General for Veterans Affairs. Existing law establishes the Department of Veterans Affairs and designates the Secretary of Veterans Affairs as the chief administrative officer of the department. Existing law also establishes the California Veterans Board, and requires the board to advise the department and secretary on policies for operations of the department. Existing law provides for veterans programs, including the veterans farm and home purchase programs, and provides for veterans homes. This bill would create the office of Inspector General Internal Audits for Veterans Affairs, who the chief auditor of which would be subject to the direction of the Governor, secretary within the department. The bill would require the inspector general chief auditor to be appointed by the Governor, subject to Senate confirmation. The inspector general chief auditor would be responsible for reviewing and investigating, at the request of the secretary or other members of senior management of the department, the operations and financial condition of each California veterans home, each veterans farm and home purchase program, and all other veterans department programs supported by the state. and functions. Beginning January 1, 2017, and each year after, thereafter, the bill would require the inspector general chief auditor to submit a summary report to the board and the appropriate committees of the Legislature and make any providing information about the office's activities and recommendations he or she deems necessary for improving the operations of the veterans programs. that lead to departmental efficiencies and improvements. The bill would authorize the inspector general chief auditor to receive communications from any individual who believes he or she may have information that warrants a review or investigation of a veterans program. The bill would authorize, and in some instances require, the inspector general to conduct a review or investigation. The bill would also require the establishment of require the chief auditor to establish a toll-free telephone number to report alleged wrongdoing regarding veterans programs. The bill would repeal the provisions described above on January 1, 2020. Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest. This bill would make legislative findings to that effect. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 73.5 is added to the Military and Veterans Code, to read: 73.5. (a) (1) There is hereby created the office of Inspector General Internal Audits for Veterans Affairs within the department. (2) The inspector general chief auditor shall be appointed by the Governor, subject to Senate confirmation. (3) (A) The inspector general The chief auditor shall be subject to the direction of the Governor. secretary. (B) The inspector general shall provide ongoing and independent advice to the board regarding any issue that is being considered by the board. (b) The inspector general shall be responsible for all of the following: (b) The chief auditor shall conduct reviews and investigations at the request of the secretary or other members of senior management of the department with the intent of increasing efficiencies, improving operations, and reducing fraud, waste, and abuse. The chief auditor's work shall include, but not be limited to, both of the following: (1) Reviewing the operations and financial condition of each California veterans home and veterans farm and home purchase program. For the purposes of reviewing the operations of each veterans home, the Veterans Home Allied Council and home residents shall have unfettered access to the inspector general. program, and other department programs and functions. (2) Reviewing the operation and financial condition of all other veterans programs supported by the state, including, but not limited to, county veterans service offices and veterans memorials. (3) (2) Investigating any allegations of department employee misconduct and reporting any findings of misconduct directly to the secretary, for further action that the secretary may deem necessary. (c) (1) The inspector general shall conduct a review or investigation, as specified in subdivision (b), if requested to do so by the Governor, any member of the board, or the secretary. In addition, the inspector general may conduct a review or investigation, as specified in subdivision (b), as he or she deems necessary or if requested by any Member of the Legislature or any member of the public. (2) Whenever the inspector general conducts a review or investigation pursuant to a request of any Member of the Legislature, the inspector general shall submit a report of his or her findings to that member. (c) To ensure the independence of the audit function, the department and chief auditor are subject to the requirements set forth in subdivision (a) of Section 13887 of, and Sections 13887.5 and 13888 of, the Government Code. (d) (1) Beginning January 1, 2017, and each year after, the inspector general thereafter, the chief auditor shall submit a summary report to the board and the appropriate committees of the Legislature and make any recommendations he or she deems necessary for improving the operations of the veterans programs. providing information about the office's activities and identifying recommendations that lead to departmental efficiencies and improvements. (2) A report submitted to the Legislature pursuant to paragraph (1) shall comply with Section 9795 of the Government Code. (e) This section shall remain in effect only until January 1, 2020, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2020, deletes or extends that date. SEC. 2. Section 73.6 is added to the Military and Veterans Code, to read: 73.6. (a) The inspector general chief auditor may receive communications from any individual, including, but not limited to, a participant in a farm and home purchase program or a resident of a California veterans home, who believes he or she may have information that warrants a review or investigation of a department veterans program that is supported by the state. The program. If requested, the identity of the person providing the information shall be held as confidential by the inspector general chief auditor and may be disclosed only to the Governor, any member of the board, any Member of the Legislature, or the secretary, as the inspector general deems appropriate and in the furtherance of his or her duties. secretary or senior management of the department when necessary to resolve the complaint. (b) In order to properly respond to any allegation, the inspector general To enhance accountability, the chief auditor shall establish a toll-free public telephone number for the purpose of identifying any alleged wrongdoing regarding veterans the department or its programs. This telephone number shall be posted at every California veterans home and throughout all department and county veterans service offices, in clear view of all veterans home residents, employees, and the public. In addition, the telephone number shall be issued to every participant of a home purchase program. When deemed appropriate by the inspector general, chief auditor, he or she shall initiate a review or investigation of any alleged wrongdoing. However, any request to conduct an investigation shall be in writing. The request shall be confidential and is not subject to disclosure under the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code). (c) The identity of the person providing the information that initiated the review or investigation shall not be disclosed without that person's written permission, except in response to a court order or to a law enforcement agency in the furtherance of its duties. (d) This section shall remain in effect only until January 1, 2020, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2020, deletes or extends that date. SEC. 3. The Legislature finds and declares that Section 2 of this act, which adds Section 73.6 of the Military and Veterans Code, imposes a limitation on the public's right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest: In order to protect the privacy of persons who provide information of alleged wrongdoing by or complaints against veterans programs to the Inspector General Chief Auditor for Veterans Affairs, the limitations on the public's right of access imposed by Section 2 of this act are necessary.