Bill Text: HI SB286 | 2015 | Regular Session | Amended

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Bill Title: Office of the State Inspector General; Appropriation ($)

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Engrossed - Dead) 2015-04-20 - Received notice of Senate conferees (Sen. Com. No. 642). [SB286 Detail]

Download: Hawaii-2015-SB286-Amended.html

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THE SENATE	S.B. NO.	286
TWENTY-EIGHTH LEGISLATURE, 2015		S.D. 2
STATE OF HAWAII		H.D. 1

A BILL FOR AN ACT

 

 

RELATING TO THE OFFICE OF THE STATE INSPECTOR GENERAL.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

     SECTION 1.  The legislature finds that accountability is a necessary key to maintaining public trust in government.  Inspectors general are government officials who are entrusted with fostering and promoting accountability and integrity in government.  The legislature further finds that establishing an office of the state inspector general in Hawaii will promote integrity and accountability, maximize the efficiency and effectiveness of state agencies through the conduct of independent investigations, performance reviews and other services, and provide objective and useful information to state officials and residents of Hawaii.

     Accordingly, the purpose of this Act is to:

     (1)  Establish the office of the state inspector general, to be headed by the state inspector general, within the department of accounting and general services for administrative purposes only; and

     (2)  Require the office of the state inspector general to investigate complaints alleging fraud, waste, abuse, or corruption by a state agency or quasi-public agency, or the officers or employees of a state agency or quasi-public agency.

     SECTION 2.  The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

office of the state inspector general

     §   -1  Definitions.  As used in this chapter, unless the context requires otherwise:

     "Employee" means an individual drawing a salary from a state agency or quasi-public agency.

     "Inspector general" means the state inspector general.

     "Office" means the office of the state inspector general.

     "Officer" means any person who is elected or appointed to a public office in a state agency or quasi-public agency.

     "Quasi-public agency" means any entity, except for individuals, but including individuals doing business as sole proprietors, that receives or is paid state funds, including entities receiving funds pursuant to chapters 39 and 42F.

     "State agency" means any executive department, commission, board, agency, authority, bureau, office, or other establishment of the state government, but excludes the legislature and the judiciary.

     §   -2  Office of the state inspector general; state inspector general; appointment; independence.  (a)  There is established the office of the state inspector general, which shall be placed within the department of accounting and general services for administrative purposes only.  The office shall be headed by the state inspector general, who shall be a full-time public official.  The inspector general shall serve a term of five years and shall be paid a salary equal to       per cent of the salary of the director of human resources development.

     (b)  The inspector general shall be nominated by the governor and, by and with the advice and consent of the senate, appointed by the governor.  The inspector general may only be removed from office by the governor for cause; provided that the governor shall give prior notification of the removal to the president of the senate and the speaker of the house of representatives.

     (c)  The inspector general shall have a minimum of five years' experience or expertise in accounting, law, criminal justice, public administration, or audit investigations as a certified public accountant or certified internal auditor.

     (d)  The inspector general shall hire staff necessary to carry out the purposes of this chapter.

     (e)  The inspector general and employees of the office shall be included in any benefit program generally applicable to the officers and employees of the State.

     (f)  The governor, attorney general, judiciary, or legislature shall not prevent, impair, or prohibit the inspector general from initiating, carrying out, or completing any audit, investigation, or review.  Nothing in this chapter shall be construed to limit or prevent the legislature or any state agency from conducting any audit, investigation, or review concurrently with any similar audit, investigation, or review conducted by the inspector general.

     §   -3  Powers and duties of inspector general.  The inspector general shall have the following duties and responsibilities:

     (1)  Receive and investigate complaints from any source or upon the inspector general's own initiative regarding alleged fraud, waste, abuse, or corruption by any state agency or quasi-public agency or by any officer or employee of a state agency or quasi-public agency; provided that the inspector general shall have the discretion to determine whether a complaint has provided reasonable cause to investigate and may refer any complaints to any other appropriate authority;

     (2)  Investigate the management and operations of state agencies, quasi-public agencies, and independent contractors of state agencies to determine whether acts of fraud, waste, abuse, or corruption have been committed or are being committed by officers, employees, or independent contractors of a state agency or officers or employees of a quasi-public agency, including any allegations of criminal acts affecting the operations of state agencies and quasi-public agencies;

     (3)  Prepare a detailed report of each investigation stating whether fraud, waste, abuse, or corruption has been detected; provided that if fraud, waste, abuse, or corruption has been detected, the report shall:

         (A)  Identify the person who has committed the wrongful act or omission;

         (B)  Describe the wrongful act or omission; and

         (C)  Describe any corrective measures taken or implemented by the state agency or quasi-public agency subject to the investigation to prevent recurrences of similar actions;

     (4)  Provide timely notification to the attorney general and appropriate law enforcement agencies when the inspector general has reasonable grounds to believe there has been a violation of state criminal law;

     (5)  Conduct performance reviews of state agencies to assess the efficiency, effectiveness, or economy of programs and ascertain, among other things, the proper expenditure of state funds; provided that the inspector general shall prepare a report for each performance review that:

         (A)  Details any findings for improving the efficiency, effectiveness, or economy of the state agency subject to the performance review; and

         (B)  Makes recommendations, including proposed legislation, necessary to effectuate these findings;

     (6)  Coordinate and require standards for existing internal audit programs and for other internal audit programs in state agencies, as needed to ensure that state agencies maintain an adequate system of internal management control;

     (7)  Assess the condition of the accounting, financial, and administrative controls of state agencies and make recommendations to protect the State's assets, as needed;

     (8)  Assist state agency internal auditing programs with technical auditing issues;

     (9)  Assist state residents in understanding their rights and the processes available to residents to express concerns regarding the activities of a state agency or quasi-public agency or any officer or employee of a state agency or quasi-public agency;

    (10)  Maintain a record on inquiries received, the types of assistance requested, any actions taken, and the disposition of each inquiry;

    (11)  Upon request, assist state residents in using procedures and processes available to express concerns regarding the activities of an agency or any officer or employee of an agency;

    (12)  Ensure that state residents have access to the services provided by the inspector general and receive timely responses from the inspector general to inquiries;

    (13)  Make and enter into contracts necessary to carry out the purposes of this chapter; and

    (14)  Adopt rules in accordance with chapter 91 necessary to carry out the purposes of this chapter.

     §   -4  Cooperation of state agencies, quasi-public agencies, officers, and employees.  (a)  Each state agency, quasi-public agency, and every officer and employee shall promptly report any allegations of criminal acts or acts of fraud, waste, abuse, or corruption and cooperate with, and provide assistance to, the inspector general in the performance of any investigation.  This reporting requirement shall be deemed satisfied for officers or employees of a state agency or quasi-public agency once the administrative head of a state agency or quasi-public agency reports to the inspector general any allegations of criminal acts, fraud, waste, abuse, or corruption within the state agency or quasi-public agency or once an employee reports directly to the inspector general any allegations of criminal acts, fraud, waste, abuse, or corruption by an employer within the state agency or quasi-public agency, subject to any applicable whistleblowers' protections under chapter 378, part V.  Each state agency or quasi-public agency shall make its premises, equipment, personnel, books, records, and papers readily available to the inspector general upon request.

     (b)  When the administrative head of a state agency, quasi-public agency, or an officer discovers any unauthorized, illegal, irregular, improper, or unsafe handling or expenditure of state funds, or if it comes to the administrative head's attention that any unauthorized, illegal, irregular, improper, or unsafe handling or expenditure of state funds is contemplated but has not been consummated, the administrative head of the state agency shall promptly report to the inspector general.

     (c)  The inspector general may enter upon the premises of any state agency or quasi-public agency at any time, without prior announcement, if necessary to the successful completion of an investigation.  In the course of an investigation, the inspector general may question any officer or employee serving in, and any person transacting business with, the state agency or quasi-public agency and may inspect and copy any books, records, or papers in the possession of the state agency or quasi-public agency.  The inspector general shall preserve the confidentiality of any complainant or information obtained from a state agency or quasi-public agency during the course of an investigation in accordance with applicable state and federal law.

     §   -5  Office of state inspector general; summons or citation; failure to obey a summons.  (a)  The office shall cooperate and coordinate with law enforcement authorities and agencies in the development of programs and mutual aid agreements to set forth the respective roles and responsibilities of each agency, including but not limited to the categories of investigations that will be overseen by each agency and how to avoid redundancy or operation conflicts.

     (b)  Any investigator authorized by the inspector general to conduct any investigation shall have the power to administer oaths for the purposes of receiving complaints and conducting investigations of allegations of criminal behavior affecting the operations of a state agency or quasi-public agency pursuant to the office's duties under this chapter and the rules adopted thereunder.

     §   -6  Subpoena powers.  (a)  The inspector general or the inspector general's designee, when conducting an investigation under this chapter, may, subject to the privileges enjoyed by all witnesses in this State, subpoena witnesses, examine them under oath, and require the production of any books, papers, documents, or other objects designated therein or any other record however maintained, including those electronically stored, which are relevant or material to the investigation being conducted under this chapter.

     (b)  The books, papers, documents, or other objects may be retained by the inspector general for a reasonable period of time for examination, audit, copying, testing, and photographing.

     (c)  The subpoena power shall be exercised by the inspector general or the inspector general's designee.

     (d)  Upon application of the inspector general, compliance with the subpoena shall be enforced by the circuit court in the county in which the person subpoenaed resides or is found, in the same manner as a subpoena issued by a circuit court.

     §   -7  Reports.  (a)  The inspector general shall report to the legislature, no later than twenty days prior to the convening of each regular legislative session, on the office's activities for the immediately preceding fiscal year.

     (b)  The report shall include:

     (1)  A description of any significant problems, abuses, and deficiencies related to the management or operation of state agencies or quasi-public agencies;

     (2)  A description of the recommendations for any corrective actions made by the office with respect to significant problems, abuses, or deficiencies identified by the office;

     (3)  A summary of matters referred to the attorney general and appropriate law enforcement agencies and actions taken on those matters;

     (4)  Information concerning the number of complaints received and types of investigations completed by the office;

     (5)  The development and maintenance of any internal audit programs in state agencies and quasi-public agencies; and

     (6)  The results of any state agency or quasi-public agency performance reviews, including a summary of any findings or recommendations for improving the efficiency of state agencies or quasi-public agencies.

     (c)  The inspector general shall notify the president of the senate, the speaker of the house of representatives, and the governor of any problems, abuses, or deficiencies relating to the management or operation of a state agency or quasi-public agency.

     (d)  The inspector general shall keep the appropriate administrative heads of all state agencies and quasi-public agencies advised of the office's activities, as they relate to each respective state agency or quasi-public agency.

     (e)  The inspector general may conduct additional investigations and make reports relating to the management and operations of state agencies or quasi-public agencies, as needed.

     (f)  The reports, information, or documents required under this section shall be transmitted directly to the governor and the legislature.

     (g)  Records that are confidential under federal or state law shall be maintained as confidential by the inspector general and shall not be further disclosed, except as required by law."

     SECTION 3.  Section 378-62, Hawaii Revised Statutes, is amended to read as follows:

     "§378-62  Discharge of, threats to, or discrimination against employee for reporting violations of law.  An employer shall not discharge, threaten, or otherwise discriminate against an employee regarding the employee's compensation, terms, conditions, location, or privileges of employment because:

     (1)  The employee, or a person acting on behalf of the employee, reports or is about to report to the employer, or reports or is about to report to a public body, verbally or in writing, a violation or a suspected violation of:

         (A)  A law, rule, ordinance, or regulation, adopted pursuant to law of this State, a political subdivision of this State, or the United States; or

         (B)  A contract executed by the State, a political subdivision of the State, or the United States,

          unless the employee knows that the report is false; [or]

     (2)  The employee, or a person acting on behalf of the employee, reports or is about to report to the state inspector general, verbally or in writing, an allegation of fraud, waste, abuse, or corruption by an employer or by an officer or employee of the employer; or

    [(2)] (3)  An employee is requested by a public body to participate in an investigation, hearing, or inquiry held by that public body, or a court action."

     SECTION 4.  Section 846-10, Hawaii Revised Statutes, is amended to read as follows:

     "§846-10  Dissemination.  Criminal history record information may be disseminated to:

     (1)  The governor in individual cases or situations wherein the governor elects to become actively involved in the investigation of criminal activity or the administration of criminal justice in accordance with the governor's constitutional duty to insure that the laws be faithfully executed;

     (2)  The attorney general in connection with the attorney general's statutory authority and duties in the administration and enforcement of the criminal laws and for the purpose of administering and insuring compliance with the provisions of this chapter;

     (3)  The state inspector general, or investigation and enforcement officers authorized by the inspector general, in connection with the state inspector general's statutory authority and duties in the administration and enforcement of laws pursuant to chapter      ; and

    [(3)] (4)  To such other individuals and agencies who are provided for in this chapter or by rule or regulation."

     SECTION 5.  There is appropriated out of the general revenues of the State of Hawaii the sum of $         or so much thereof as may be necessary for fiscal year 2015-2016 and the same sum or so much thereof as may be necessary for fiscal year 2016-2017 for administrative costs associated with the establishment of the office of the state inspector general within the department of accounting and general services, including the hiring of necessary staff.

     The sums appropriated shall be expended by the department of accounting and general services for the purposes of this Act.

     SECTION 6.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 7.  This Act shall take effect on July 1, 2015.

 

 

Report Title:

Office of the State Inspector General; Appropriation

 

Description:

Establishes the Office of the State Inspector General, to be headed by the State Inspector General to investigate complaints alleging fraud, waste, abuse, or corruption by a state agency or quasi-public agency, or by the officers or employees of a state agency or quasi-public agency.  Appropriation.  (SB286 HD1)

 

 

 

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