PRINTER'S NO. 1485
No. 1202 Session of 1989
INTRODUCED BY RHOADES, SEPTEMBER 25, 1989
REFERRED TO STATE GOVERNMENT, SEPTEMBER 25, 1989
AN ACT
1 Providing for the Office of State Inspector General in each
2 executive agency; providing for the powers and duties of the
3 office; and making a repeal.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Short title.
7 This act shall be known and may be cited as the Pennsylvania
8 Inspector General Act of 1989.
9 Section 2. Definitions.
10 The following words and phrases when used in this act shall
11 have the meanings given to them in this section unless the
12 context clearly indicates otherwise:
13 "Executive agency." The Governor and the departments,
14 boards, commissions, authorities and other officers and agencies
15 of the Commonwealth. The term does not include any court or
16 other officer or agency of the unified judicial system, the
17 General Assembly and its officers and agencies, or any
18 independent agency.
1 "Independent agency." The Department of the Attorney
2 General, the Pennsylvania Fish Commission, the Pennsylvania Game
3 Commission, the Historical and Museum Commission, the State
4 Civil Service Commission, the Pennsylvania Turnpike Commission,
5 the Milk Marketing Board, the Pennsylvania Liquor Control Board,
6 the Pennsylvania Human Relations Commission, the Pennsylvania
7 Labor Relations Board, the Pennsylvania Securities Commission,
8 the State Tax Equalization Board, the Pennsylvania Higher
9 Education Assistance Agency, the Pennsylvania Crime Commission
10 and the State Ethics Commission. Except for the provisions of
11 section 204(b) and (f), and for actions pursuant to 42 Pa.C.S. §
12 5110 (relating to limited waiver of sovereign immunity), for the
13 purposes of this act, the department of the Auditor General,
14 including the Board of Claims, the State Treasury and the Public
15 Utility Commission shall not be considered either executive
16 agencies or independent agencies.
17 Section 3. Establishment of Office of Inspector General.
18 There is hereby established in each executive agency the
19 Office of State Inspector General, the purpose of which shall
20 be:
21 (1) To deter, detect, prevent and eradicate fraud,
22 waste, misconduct and abuse in the programs, operations and
23 contracting of the executive agency.
24 (2) To provide leadership and coordination and recommend
25 policies for activities in the executive agency designed to
26 promote economy, efficiency and effectiveness in the
27 executive agency.
28 (3) To perform the other functions and duties provided
29 for in this act.
30 Section 4. Appointments.
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1 (a) General rule.--Each officer of State Inspector General
2 shall be headed by a State Inspector General appointed by the
3 Governor by and with the advice and consent of a majority of the
4 members elected to the Senate. Each State Inspector General
5 shall be appointed without regard to political affiliation and
6 solely on the basis of integrity and demonstrated ability in
7 accounting, auditing, financial analysis, law, management
8 analysis, public administration or investigations. Each State
9 Inspector General shall report to and be under the general
10 supervision of the Governor. The State Inspector General shall
11 not report to, or be subject to supervision by, any officer of
12 the executive agency in which he is located. Neither the
13 Governor nor any officer of an executive agency shall prevent or
14 prohibit the State Inspector General from initiating, carrying
15 out or completing any audit or investigation, or from issuing
16 any subpoena during the course of any audit or investigation.
17 (b) Removal.--A State Inspector General may be removed from
18 office by the Governor for cause. The Governor shall communicate
19 the reasons for any such removal to both Houses of the General
20 Assembly.
21 (c) Assistants.--Each State Inspector General may:
22 (1) appoint an assistant State Inspector General for
23 Auditing who shall have the responsibility for supervising
24 performance of auditing activities relating to programs and
25 operations in the executive agency; and
26 (2) appoint an Assistant State Inspector General for
27 Investigations who shall have the responsibility for
28 supervising the performance of investigative activities
29 relating to such programs and operations in the executive
30 agency.
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1 (d) Compensation.--The compensation of State Inspector
2 Generals and Assistant State Inspector Generals shall be set by
3 the executive board.
4 Section 5. Duties and responsibilities.
5 (a) General rule.--It shall be the duty and responsibility
6 of each State Inspector General, with respect to the particular
7 executive agency within which his office is established:
8 (1) To provide policy direction for and to conduct,
9 supervise and coordinate audits and investigations relating
10 to the program and operations of the executive agency.
11 (2) To review existing and proposed legislation and
12 regulations relating to programs and operations of the
13 executive agency and to make recommendations in the
14 semiannual reports required under this act concerning the
15 impact of such legislation or regulations on the economy and
16 efficiency in the administration of programs and operations
17 administered or financed by the agency, or on preventing and
18 detecting fraud and abuse in such programs and operations.
19 (3) To recommend policies for, and to conduct, supervise
20 or coordinate other activities carried out or financed by the
21 executive agency for the purpose of promoting economy and
22 efficiency in the administration of, or preventing and
23 detecting fraud and abuse in, its programs and operations.
24 (4) To recommend policies for, and to conduct,
25 supervise, or coordinate relationships between, the executive
26 agency and other Federal, State and local governmental
27 agencies and nongovernmental entities with respect to the
28 purposes of this act.
29 (5) To keep the head of the executive agency, the
30 Governor and the General Assembly fully and currently
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1 informed, by means of the reports required by this act and
2 otherwise, concerning fraud and other serious problems,
3 abuses and deficiencies relating to the administration of
4 programs and operations administered or financed by the
5 executive agency, to recommend corrective action concerning
6 such problems, abuses and deficiencies, and to report on the
7 progress made in implementing such corrective action.
8 (b) Coordination.--In carrying out the duties and
9 responsibilities provided for under this act, each State
10 Inspector General shall give particular regard to the activities
11 of the Legislative Budget and Finance Committee of the General
12 Assembly and the Office of Auditor General with a view toward
13 avoiding duplication and ensuring effective coordination and
14 cooperation.
15 (c) Reports of violations of criminal law.--In carrying out
16 the duties and responsibilities provided for under this act,
17 each State Inspector General shall report expeditiously to the
18 Attorney General whenever the State Inspector General has
19 reasonable grounds to believe there has been a violation of
20 State criminal law.
21 Section 6. Semiannual reports.
22 (a) Requirement.--Each State Inspector General shall, not
23 later than July 31 and January 31 of each year, prepare
24 semiannual reports summarizing the activities of the office
25 during the immediately preceding six-month periods ending June
26 30 and December 31. The reports shall include, but not be
27 limited to, the following:
28 (1) A description of significant problems, abuses and
29 deficiencies relating to the administration of programs and
30 operations of the executive agency during the reporting
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1 period.
2 (2) A description of the recommendations for corrective
3 action made by the office during the reporting period with
4 respect to significant problems, abuses or deficiencies
5 identified pursuant to paragraph (1).
6 (3) An identification of each significant recommendation
7 described in previous semiannual reports on which corrective
8 action has not been completed.
9 (4) A summary of matters referred to prosecutive
10 authorities and the prosecutions and convictions which have
11 resulted.
12 (5) A listing of each audit report completed by the
13 office during the reporting period.
14 (b) Distribution.--Semiannual reports of each State
15 Inspector General shall be furnished to the head of the
16 executive agency involved not later than July 31 and December 31
17 of each year and shall be transmitted by the head of the
18 executive agency to the appropriate committees of the General
19 Assembly within 30 days after receipt of the report, together
20 with the report by the head of the executive agency and the
21 Governor, if any, containing any comments deemed appropriate.
22 (c) Availability to public.--Upon transmittal of the report
23 by the State Inspector General to the committees of the General
24 Assembly, the head of the executive agency shall make copies of
25 the report available to the public upon request.
26 (d) Reports to head of executive agency.--Each State
27 Inspector General shall report immediately to the head of the
28 executive agency involved whenever the State Inspector General
29 becomes aware of particularly serious or flagrant problems,
30 abuses or deficiencies relating to the administration of
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1 programs and operations of the executive agency. The head of the
2 executive agency shall transmit any such report to the
3 appropriate committees of the General Assembly within seven
4 calendar days, together with a report by the head of the
5 executive agency containing any comments he deems appropriate.
6 (e) Disclosures.--Nothing in this section shall be construed
7 to authorize the public disclosure of information which is
8 specifically prohibited from disclosure by any other provision
9 of law or is a part of an ongoing criminal investigation.
10 Notwithstanding this provision, any report under this section
11 may be disclosed to the public in the form which includes
12 information with respect to a part of an ongoing criminal
13 investigation if such information has been included in a public
14 record. Nothing in this section or in any other provision of
15 this act shall be construed to authorize or permit the
16 withholding of information from the General Assembly, or from
17 any committee of the General Assembly.
18 Section 7. Additional authority.
19 (a) Authorizations.--In addition to the authority otherwise
20 provided herein, a State Inspector General, in carrying out his
21 duties and responsibilities, is authorized:
22 (1) To make such investigations and audits relating to
23 the administration of the programs and operations of an
24 executive agency as are, in the judgment of the State
25 Inspector General, necessary or desirable.
26 (2) To request such information or assistance as may be
27 necessary for carrying out the duties and responsibilities
28 provided by this act from any Federal, State or local
29 government agency or unit thereof.
30 (3) To require and obtain immediately, by written notice
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1 or by subpoena from officers and employees of executive
2 agencies, all information, documents, reports, answers,
3 records, accounts, papers and other necessary data and
4 documentary evidence.
5 (4) To have direct and prompt access to the heads of
6 executive agencies when necessary for any purpose pertaining
7 to the performance or functions and responsibilities under
8 this act.
9 (5) To select, appoint and employ such officers and
10 employees as may be necessary for carrying out the functions,
11 powers and duties of the office.
12 (b) Information and assistance.--Upon request of the State
13 Inspector General for information or assistance, executive
14 agencies shall immediately furnish the State Inspector General
15 or his authorized designee such information or assistance.
16 Whenever information or assistance requested is, in the judgment
17 of the State Inspector General, unreasonably refused or not
18 provided, the State Inspector General may report the
19 circumstances to the head of the agency and the Governor for
20 appropriate action.
21 (c) Officers and equipment.--Each head of an executive
22 agency shall provide the State Inspector General within such
23 agency with appropriate and adequate office space at central and
24 field office locations of the executive agency, together with
25 such equipment, office supplies, and communications facilities
26 and services as may be necessary for the operation of such
27 offices, and shall provide necessary maintenance services for
28 such offices and the equipment and facilities located therein.
29 Section 8. Complaints by employees; reprisals.
30 (a) Investigation of complaints.--The State Inspector
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1 General may receive and investigate complaints or information
2 concerning the possible existence of any activity in an
3 executive agency constituting a violation of law, rules, or
4 regulations, or mismanagement, fraud, waste of funds, abuse of
5 authority, malfeasance, misfeasance, nonfeasance, or a
6 substantial and specific danger to the public health and safety.
7 (b) Reprisals prohibited.--No person shall take or threaten
8 to take any action against any employee as a reprisal for making
9 a complaint or disclosing information to the State Inspector
10 General, unless the complaint was made or the information
11 disclosed with the knowledge that it was false or with willful
12 disregard for its truth or falsity.
13 (c) Protection additional.--The protection set forth in this
14 act for employees who report, in good faith, fraud, waste,
15 misconduct, malfeasance, misfeasance, nonfeasance or abuse is in
16 addition and supplementary to those protections provided by the
17 act of December 12, 1986 (P.L.1559, No.169), known as the
18 Whistleblower Law.
19 Section 9. Transfer of functions.
20 (a) Specific transfers.--There shall be transferred to the
21 Office of State Inspector General the following offices in the
22 following executive agencies:
23 (1) In the Department of Aging, the office referred to
24 as "Comptroller."
25 (2) In the Department of Agriculture, the office
26 referred to as "Comptroller's Office."
27 (3) In the Department of Banking, the office referred to
28 as "Comptroller."
29 (4) In the Department of Corrections, the office
30 referred to as the "Investigations Division."
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1 (5) In the Department of Education, the offices referred
2 to as the "Comptroller" and "Office of Audits."
3 (6) In the Department of Environmental Resources, the
4 offices referred to as the "Comptroller's Office" and the
5 "Office of Inspector General."
6 (7) In the Department of General Services, the offices
7 referred to as the "Comptroller's Office" and the "Office of
8 Inspector General."
9 (8) In the Department of Health, the office referred to
10 as the "Office of the Comptroller."
11 (9) In the Department of Insurance, the office referred
12 to as the "Comptroller's Office."
13 (10) In the Department of Labor and Industry, the
14 offices referred to as the "Comptroller's Office" and the
15 "Internal Audits Division."
16 (11) In the Board of Probation and Parole, the office
17 referred to as the "Office of the Comptroller."
18 (12) In the Department of Public Welfare, the offices
19 referred to as the "Office of Inspector General," the
20 "Division of Audit and Review" and the "Office of the
21 Comptroller."
22 (13) In the Department of Revenue, the offices referred
23 to as the "Comptroller's Office," the "Bureau of Audits" and
24 the "Office of Inspector General."
25 (14) In the Pennsylvania State Police, the office
26 referred to as the "Office of Comptroller."
27 (15) In the Department of Transportation, the offices
28 referred to as the "Comptroller's Office," the "Office of
29 Inspector General," the "Systems and Audit Division" within
30 the Bureau of Operations Review, and the "Auditing Division"
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1 within the Bureau of Municipal Services.
2 (16) The Office of Comptroller in any other executive
3 agency.
4 (b) Continuation of central support and technical
5 services.--The Bureau of Financial Management, the Bureau of
6 Audits, and the Bureau of Operations Review within the
7 Governor's Office of the Budget shall continue to provide
8 central support and technical services to the Office of State
9 Inspector General, as well as perform any other duties required
10 by the Governor.
11 (c) Transfer.--The personnel, assets, liabilities,
12 contracts, property, records, and unexpended balances of
13 appropriations, allocations, and other funds employed, held,
14 used, arising from, available or to be made available, of any
15 office or agency the functions, powers and duties of which are
16 transferred under subsection (a) are hereby transferred to the
17 applicable Office of State Inspector General.
18 (d) Civil service.--Personnel transferred pursuant to
19 subsection (c) shall retain any civil service status assigned to
20 said personnel. The classification and compensation of any
21 personnel transferred shall not be reduced for one year after
22 such transfer.
23 Section 10. Repeal.
24 Section 214 of the act of April 9, 1929 (P.L.177, No.175),
25 known as The Administrative Code of 1929, is repealed insofar as
26 it is inconsistent with the provisions of this act.
27 Section 11. Effective date.
28 This act shall take effect in 60 days.
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