Ducey's inspector general bill advances

• Attorney General Mark Brnovich nor any of his representatives testified against the governor's legislation.
• Ducey called for an inspector general in his January State of the State address.

The state's top law-enforcement officer is questioning Gov. Doug Ducey's proposal to create an Office of the State Inspector General with sweeping power to police public agencies and investigate allegations of government waste, fraud and abuse.

The governor said during his January State of the State address that he wanted an "unbiased" taxpayer watchdog, but legislation to create it only appeared this week.

The Senate government committee approved House Bill 2420 on a 4-3 party-line vote Wednesday, over objections from a Democratic lawmaker who said such a significant policy decision should be more thoroughly vetted and the Attorney General's Office which argues such a post already exists.

The governor's legislation creates a new position for a badge-carrying inspector general who reports directly to the governor, has subpoena power and will examine and investigate state agencies, contractors and others who receive state money for services.

Neither Attorney General Mark Brnovich nor any of his representatives testified against the measure. Asked about the office's position on the bill, Brnovich's spokeswoman said in an e-mail, "Arizona already has an independent law enforcement agency to investigate fraud and criminal activity; it's the Attorney General's Office."

Sen. Sylvia Allen, R-Snowflake, asked whether there will be a conflict with the attorney general over the legislation.

Ted Vogt, Ducey's chief of operations, said the governor's staff has been in contact with Brnovich's office. "We feel confident that any sort of issues can be worked out to make sure that we are not crossing over into somebody else's constitutional office or anything like that," he said.

Ducey, who time and again promised his administration would be transparent, drew criticism for his plan because of its secrecy provisions. According to draft legislation, the inspector general's office must submit a report on its activities "within a reasonable time after finalizing an investigation," but keeps secret records "prepared or obtained" in connection with investigations.

Vogt said the secrecy concerns will be addressed through a floor amendment that will require the inspector general to publish a report on "some" of the office's findings and conclusions. Vogt also said the amendment will clarify that only records in the custody of the inspector general will be confidential.

Chris Moeser, an attorney who represents The Arizona Republic and KPNX, testified the public should see the results of any investigations as well as documents gathered to assess allegations of wrongdoing.

"We're OK with protections while that investigation is ongoing; it's just once the investigation is complete and the report is finalized, the underlying public records should be released as well," Moeser said.

Moeser later added, "The only way there's any accountability for the inspector general is if the public can see the facts which led to the inspector general's conclusion."

Rep. Martin Quezada, D-Phoenix, was concerned that such significant legislation appeared so late in the legislative session, saying it is "another bill that won't get a full hearing."

Quezada added: "We had time to do this earlier in the year, and we have time to do it next year, as well."

Sen. Steve Smith, R-Maricopa, in explaining his "yes," vote, said, "Government, in the 21st Century, on almost every level ... somewhere, is either rife with fraud, waste or abuse, or a potential target for it."

Vogt testified that 11 states have similar inspector-general positions.

Judy Stevens, policy coordinator for a Chicago-based government watchdog organization, said inspectors general should be transparent to be effective.

"The IG is there to make sure that other agencies perform their job appropriately," said Stevens, of the Better Government Association. "And the inspector-general office itself needs to be accountable in the same way, and show that it's doing its job. And if they don't make the results of their work public, how do you know?"

Ducey's legislation gives the inspector general oversight of inspectors general in other state agencies, such as the Department of Public Safety and the Arizona Health Care Cost Containment System Administration. Ducey's spokesman has said there is no fiscal impact associated with the legislation because there are unfilled inspector-general positions at state agencies.

Under the legislation, the inspector general would submit an annual report of efforts to detect wrongdoing.