AB 663

Current law requires the Legislative Audit Bureau (LAB) to maintain a

toll-free telephone number with voice mail to receive reports of fraud, waste, and

mismanagement in state government. LAB must relay these reports either to the

appropriate LAB employee for investigation or to a state agency for investigation.

If the state agency conducts the investigation, it must deliver the results of the

investigation to LAB in a timely manner.

This bill provides that if an LAB or state agency investigation finds that fraud,

waste, or mismanagement has occurred, the individual submitting the report must

be paid a reward equal to $100,000, 2 percent of the moneys that are recovered in any

legal action resulting from the fraud, waste, or mismanagement, or 2 percent of the

moneys that are saved in the succeeding fiscal year as a result of eliminating the

fraud, waste, or mismanagement, whichever is least. Under the bill, LAB must

determine whether moneys can be saved or recovered as a result of eliminating the

fraud, waste, or mismanagement and must certify to the secretary of administration

the amounts to be paid as rewards to individuals. The secretary of administration

must pay the rewards from the appropriation account that is used to fund the

program that is the focus of the report of fraud, waste, or mismanagement.

The bill also provides that a senator or representative to the assembly may

make a report to LAB on behalf of any individual who contacts the office of the

senator or representative. If an LAB or state agency investigation finds that fraud,

waste, or mismanagement has occurred, the senator or representative must identify

the individual who must be paid the award. A senator or representative may also

introduce a bill on behalf of the individual to eliminate the fraud, waste, or

mismanagement. If the bill is enacted and if LAB determines that the legislation will

eliminate the fraud, waste, or mismanagement, the individual shall be paid the

award.