AN ACT CONCERNING GOVERNMENT OVERSIGHT OVER FRAUD AND WASTE AND ESTABLISHING THE OFFICE OF GOVERNMENT OVERSIGHT AND EFFICIENCY.

Senate
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General Assembly File No. 350
February Session, 2026 Substitute Senate Bill No. 324

Senate, April 2, 2026

The Committee on Government Oversight reported through
SEN. GADKAR-WILCOX of the 22nd Dist., Chairperson of the
Committee on the part of the Senate, that the substitute bill
ought to pass.

AN ACT CONCERNING GOVERNMENT OVERSIGHT OVER FRAUD
AND WASTE AND ESTABLISHING THE OFFICE OF GOVERNMENT
OVERSIGHT AND EFFICIENCY.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

Section 1. ( Effective from passage ) (a) There is established a working 1
group to study and recommend legislation regarding preventing the 2
waste of taxpayer dollars by establishing partnerships between state 3
agencies and private providers to improve the delivery of services, 4
reduce the cost of such services and foster investigations to uncover 5
fraud and waste, including, but not limited to, claims of fraud and waste 6
concerning employee contracts, remuneration of employees and 7
pension benefits. 8
(b) The working group shall consist of the following members: 9
(1) Two appointed by the speaker of the House of Representatives, 10
one of whom has expertise in fraud detection and one of whom has 11
expertise in state agency contracts; 12
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(2) Two appointed by the president pro tempore of the Senate, one of 13
whom is a representative of a state employee collective bargaining unit; 14
(3) One appointed by the majority leader of the House of 15
Representatives; 16
(4) One appointed by the majority leader of the Senate; 17
(5) One appointed by the minority leader of the House of 18
Representatives; 19
(6) One appointed by the minority leader of the Senate; 20
(7) The Commissioner of Administrative Services, or the 21
commissioner's designee; 22
(8) The Secretary of the Office of Policy and Management, or the 23
secretary's designee; and 24
(9) The Attorney General, or the Attorney General's designee. 25
(c) Any member of the working group appointed under subdivision 26
(1), (2), (3), (4), (5) or (6) of subsection (b) of this section may be a member 27
of the General Assembly. 28
(d) All initial appointments to the working group shall be made not 29
later than thirty days after the effective date of this section. Any vacancy 30
shall be filled by the appointing authority. 31
(e) The speaker of the House of Representatives and the president pro 32
tempore of the Senate shall select the chairpersons of the working group 33
from among the members of the working group. Such chairpersons shall 34
schedule the first meeting of the working group, which shall be held not 35
later than sixty days after the effective date of this section. 36
(f) The administrative staff of the joint standing committee of the 37
General Assembly having cognizance of matters relating to government 38
oversight shall serve as administrative staff of the working group. 39
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(g) Not later than December 31, 2026, the working group shall submit 40
a report on its findings and recommendations to the joint standing 41
committee of the General Assembly having cognizance of matters 42
relating to government oversight, in accordance with the provisions of 43
section 11-4a of the general statutes. The working group shall terminate 44
on the date that it submits such report or December 31, 2026, whichever 45
is later. 46
Sec. 2. (NEW) (Effective October 1, 2026) (a) For purposes of this section 47
and sections 3 to 5, inclusive, of this act, "governmental agency" means 48
a state agency or a quasi-public agency, "state agency" and "quasi-public 49
agency" have the same meanings as provided in section 1 -79 of the 50
general statutes, "legislative leaders" means the president pro tempore 51
of the Senate, the speaker of the House of Representatives and the 52
minority leaders of the Senate and the House of Representatives, and 53
"executive director" means the executive director of the Office of 54
Government Oversight and Efficiency. 55
(b) There is established an Office of Government Oversight and 56
Efficiency that shall act to detect and prevent fraud, waste and abuse in 57
the management of state personnel, in the use and disposition of state 58
property and in the collection, disbursement and expenditure of state 59
and federal funds administered by governmental agencies. The Office 60
of Government Oversight and Efficiency shall also evaluate the 61
economy, efficiency and effectiveness of governmental agencies in the 62
performance of their delegated duties and functions and of private 63
entities that contract with such agencies to provide government 64
services. 65
(c) The office shall be under the direction of an executive director, 66
who shall be appointed by the legislative leaders, with the advice and 67
consent of either house of the General Assembly. A committee 68
consisting of the legislative leaders and the chairpersons and ranking 69
members of the joint standing committee of the General Assembly 70
having cognizance of matters relating to government administration 71
shall submit to the legislative leaders the names of three candidates for 72
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appointment to the position of executive director. Not later than ninety 73
days after the receipt of the names from the committee, the legislative 74
leaders shall appoint one of such candidates to be executive director and 75
shall submit such nomination to either house of the General Assembly 76
to undergo the confirmation process set forth in section 4 -7 of the 77
general statutes. If the legislative leaders fail to make such appointment 78
within such ninety -day period, the committee by majority vote shall 79
make such appointment and submit such nomination to either house of 80
the General Assembly for confirmation. The executive director shall be 81
appointed on the basis of integrity and competence demonstrated in 82
appropriate fields. The executive director shall hold office for a term of 83
five years and until the appointment of a successor, in the same manner 84
as the original appointment, unless sooner removed for just cause by the 85
legislative leaders. Such cause may include, but not be limited to, 86
material neglect of duty, gross misconduct or conviction of a felony. 87
(d) The Office of Government Oversight and Efficiency shall be an 88
independent office and shall be within the Joint Committee on 89
Legislative Management for administrative purposes only. 90
Sec. 3. (NEW) (Effective October 1, 2026) (a) The executive director shall 91
establish, within available appropriations, a system for the coordination 92
of efforts between the Office of Government Oversight and Efficiency 93
and officials performing similar duties and internal auditing functions 94
within the various governmental agencies. Such system may include 95
continuing training programs for professional development, the 96
adoption of standard guidelines and procedures and the organization 97
of a communications network within the system. The internal auditors 98
and support staff within the agencies shall remain assigned to such 99
agencies but shall have their annual internal audit program approved 100
by the executive director. 101
(b) The executive director may adopt regulations, in accordance with 102
chapter 54 of the general statutes, to implement the provisions of 103
sections 2 to 5, inclusive, of this act. The executive director may employ 104
necessary staff, within available appropriations. 105
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Sec. 4. (NEW) ( Effective October 1, 2026 ) (a) The executive director 106
shall: (1) Conduct preemptive inspections, inquiries and investigations 107
relating to programs and operations involving (A) the collection, 108
administration or expenditure of state funds, in particular related to 109
contracts, pensions and other state benefits and legal settlements, (B) the 110
use or disposition of state -owned or leased property, or (C) the 111
management practices and regulatory or statutory compliance of state 112
agencies; (2) have access to all records, data and material maintained by 113
or available to any governmental agency; and (3) have access to all 114
records, data and material maintained by or available to any person or 115
organization involved in the collection, expenditure or administration 116
of state funds, control of state-owned or leased property or management 117
of state employees. 118
(b) The executive director may apply to the Superior Court for a 119
subpoena to compel the attendance of such witnesses or the production 120
of such books, papers, records or documents as may be necessary in 121
order to obtain information that is not otherwise available and that is 122
needed in the performance of the executive director's duties. The court 123
shall, before issuing such subpoena, provide adequate opportunity for 124
the executive director and the party against whom the subpoena is 125
requested to be heard. No such subpoena shall be issued unless the 126
court certifies that the attendance of such witness or the production of 127
such books, papers, records or documents is reasonably necessary for 128
the performance of the executive director's duties and that the executive 129
director has made reasonable efforts to secure such attendance or such 130
books, papers, records or documents without recourse to compulsory 131
process. 132
Sec. 5. (NEW) (Effective October 1, 2026) (a) The executive director may 133
make recommendations to the Governor and the General Assembly 134
concerning the prevention and detection of fraud, waste and abuse, 135
including recommendations concerning legislation and regulations or 136
the coordination of preventive measures by governmental and 137
nongovernmental entities. The executive director may assist or request 138
assistance from any governmental agency, state employee or person or 139
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organization collecting or expending state funds or controlling state -140
owned or leased property. 141
(b) The executive director shall report findings of fact along with any 142
recommendations: (1) To the Chief State's Attorney or the Office of State 143
Ethics, when the executive director has a reasonable belief that a state 144
law has been or is being violated; (2) to the Attorney General, when the 145
executive director has a reasonable belief that civil recovery proceedings 146
are appropriate; and (3) to the United States Attorney, when the 147
executive director has a reasonable belief that a federal law has been or 148
is being violated or when civil recovery is appropriate. 149
(c) On or before October 31, 2027, and annually thereafter, the 150
executive director shall submit, in accordance with the provisions of 151
section 11-4a of the general statutes, a report concerning the activities of 152
the Office of Government Oversight and Efficiency to the Governor and 153
the joint standing committees of the General Assembly having 154
cognizance of matters relating to appropriations and the budgets of state 155
agencies and government administration. The executive director may 156
make such other reports as the executive director deems appropriate. 157
(d) All records of the Office of Government Oversight and Efficiency 158
relating to an actual or potential inspection, or inquiry or investigation, 159
shall be confidential and shall not be public records under the Freedom 160
of Information Act, as defined in section 1 -200 of the general statutes, 161
until such time as (1) all such inspections, inquiries or investigations 162
have been concluded and all criminal and civil actions arising from the 163
records have been finally adjudicated or otherwise settled, (2) to such 164
extent as may be deemed appropriate by the executive director in the 165
performance of the executive director's duties, or (3) two years after 166
receipt or creation of such records by the office, whichever is earlier. 167
Records that are otherwise public documents shall not be deemed 168
confidential solely because they have been transferred to the custody of 169
the executive director. Where there are statutory requirements of 170
confidentiality with regard to such records, books, data, files and other 171
material printed or otherwise maintained by a governmental agency, 172
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such requirements of confidentiality and penalties for the violation of 173
such requirements shall apply to the executive director and to the Office 174
of Government Oversight and Efficiency's employees in the same 175
manner and to the same extent as such requirements of confidentiality 176
and penalties apply to such governmental agency and such agency's 177
employees. 178
Sec. 6. Section 1 -101pp of the general statutes is repealed and the 179
following is substituted in lieu thereof (Effective October 1, 2026): 180
Any commissioner, deputy commissioner, state agency or quasi -181
public agency head or deputy, or person in charge of state agency 182
procurement, contracting or human resources, who has reasonable 183
cause to believe that a person has violated the provisions of the Code of 184
Ethics for Public Officials set forth in part I of this chapter or any law or 185
regulation concerning ethics in state contracting shall report such belief 186
to the Office of State Ethics, which may further report such information 187
to the Auditors of Public Accounts, the Chief State's Attorney , [or] the 188
Attorney General or the executive director of the Office of Government 189
Oversight and Efficiency. 190
Sec. 7. Subsection (c) of section 1 -110a of the general statutes is 191
repealed and the following is substituted in lieu thereof (Effective October 192
1, 2026): 193
(c) If the court determines, or the Attorney General certifies, that a 194
public official or state or municipal employee, who was convicted of or 195
pled guilty or nolo contendere to a crime related to state or municipal 196
office, voluntarily provided information to the Attorney General, the 197
Auditors of Public Accounts , the executive director of the Office of 198
Government Oversight and Efficiency or any state, federal or local law 199
enforcement official concerning the commission of such crime related to 200
state or municipal office by another public official or state or municipal 201
employee who had a greater degree of culpability for such crime than 202
the public official or state or municipal employee providing such 203
information, the court shall not reduce or revoke the pension of such 204
public official or state or municipal employee, provided such public 205
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official or state or municipal employee voluntarily provided such 206
information prior to learning of a criminal investigation into such crime 207
related to state or municipal office. 208
Sec. 8. Subsection (f) of section 2 -90 of the 2026 supplement to the 209
general statutes is repealed and the following is substituted in lieu 210
thereof (Effective October 1, 2026): 211
(f) (1) If the Auditors of Public Accounts discover, or if it should come 212
to their knowledge, that any unauthorized, illegal, irregular or unsafe 213
handling or expenditure of state funds or quasi-public agency funds or 214
any breakdown in the safekeeping of any resources of the state or a 215
quasi-public agency has occurred or is contemplated, they shall 216
forthwith report the facts to the Governor, the State Comptroller, the 217
clerk of each house of the General Assembly, the joint standing 218
committee of the General Assembly having cognizance of matters 219
relating to government oversight , [and] the Attorney General and the 220
executive director of the Office of Government Oversight and Efficiency, 221
except that if a matter reported to the Auditors of Public Accounts 222
pursuant to section 4 -33a, as amended by this act, is still under 223
investigation by a state or quasi -public agency, the Auditors of Public 224
Accounts may give the agency a reasonable amount of time to conduct 225
such investigation prior to the auditors reporting the matter to said 226
officials and committee. 227
(2) If the Auditors of Public Accounts decide to delay reporting such 228
matter in accordance with subdivision (1) of this subsection, the auditors 229
shall immediately notify the Attorney General of such decision. 230
(3) Any Auditor of Public Accounts neglecting to make the report 231
required under subdivision (1) of this subsection, or any agent of the 232
auditors neglecting to report to the Auditors of Public Accounts any 233
such matter discovered by such agent or coming to such agent's 234
knowledge, shall be fined not more than one hundred dollars or 235
imprisoned not more than six months, or both. 236
(4) Any state agency or quasi -public agency that is the subject of a 237
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report of the Auditors of Public Accounts that contains violations of 238
state statute or regulation, other than only minor or technical 239
recommendations, not later than six months after the issuance of the 240
auditors' report, shall report on the status of any corrective action 241
undertaken by such state agency or quasi-public agency to address such 242
violations, to the auditors, the Governor and the General Assembly, in 243
accordance with the provisions of section 11-4a. Upon the receipt of the 244
agency's report, the joint standing committee of the General Assembly 245
having cognizance of matters relating to government oversight may 246
request the auditors to verify any matter in the agency's corrective 247
action report and the auditors shall have not more than sixty days to 248
respond to such request. 249
Sec. 9. Section 4 -33a of the general statutes is repealed and the 250
following is substituted in lieu thereof (Effective October 1, 2026): 251
All boards of trustees of state institutions, state department heads, 252
boards, commissions, other state agencies responsible for state property 253
and funds and quasi -public agencies, as defined in section 1 -120, shall 254
promptly notify the Auditors of Public Accounts, [and] the Comptroller 255
and the executive director of the Office of Government Oversight and 256
Efficiency of any (1) unauthorized, illegal, irregular or unsafe handling 257
or expenditure of state or quasi-public agency funds, (2) breakdowns in 258
the safekeeping of any other resources of the state or quasi -public 259
agencies, (3) breach of security, as defined in section 36a -701b, or (4) 260
contemplated action to commit one of the acts listed in subdivisions (1) 261
to (3), inclusive, of this section within their knowledge. In the case of 262
such notification to the Auditors of Public Accounts, the auditors may 263
permit aggregate reporting in a manner and at a schedule determined 264
by the auditors. 265
Sec. 10. Section 4 -37j of the general statutes is repealed and the 266
following is substituted in lieu thereof (Effective October 1, 2026): 267
Each foundation shall develop, in conjunction with the [Auditors of 268
Public Accounts ] executive director of the Office of Government 269
Oversight and Efficiency , and implement a written policy (1) for the 270
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investigation of any matter involving corruption, unethical practices, 271
violation of state laws or regulations, mismanagement, gross waste of 272
funds, abuse of authority or danger to the public safety occurring in 273
such foundation, (2) prohibiting any officer or employee of the 274
foundation from taking or threatening to take any personnel action 275
against any foundation employee who transmits information 276
concerning any such matter, (3) providing that any foundation 277
employee who is found to have knowingly and maliciously made false 278
charges concerning any such matter under subdivision (1) of this section 279
shall be subject to disciplinary action by the employee's appointing 280
authority, up to and including dismissal, and (4) requiring the 281
foundation to provide a copy of such policy to its employees and to 282
periodically notify the employees of the existence of the policy. 283
Sec. 11. Section 4 -61dd of the general statutes is repealed and the 284
following is substituted in lieu thereof (Effective October 1, 2026): 285
(a) Any person having knowledge of any matter involving (1) 286
corruption, unethical practices, violation of state laws or regulations, 287
mismanagement, gross waste of funds, abuse of authority or danger to 288
the public safety occurring in any state department or agency, any 289
quasi-public agency, as defined in section 1 -120, or any Probate Court, 290
(2) corruption, violation of state or federal laws or regulations, gross 291
waste of funds, abuse of authority or danger to the public safety 292
occurring in any large state contract, or (3) corruption by an entity 293
receiving financial assistance pursuant to title 32 that has failed to meet 294
its contractual obligations or has failed to satisfy any condition 295
regarding such financial assistance, may transmit all facts and 296
information in such person's possession concerning such matter to the 297
Auditors of Public Accounts and the executive director of the Office of 298
Government Oversight and Efficiency . The [Auditors of Public 299
Accounts] executive director shall review such matter and report [their] 300
any findings and any recommendations to the Attorney General. Upon 301
receiving such a report, the Attorney General shall make such 302
investigation as the Attorney General deems proper regarding such 303
report and any other information that may be reasonably derived from 304
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such report. Prior to conducting an investigation of any information that 305
may be reasonably derived from such report, the Attorney General shall 306
consult with the [Auditors of Public Accounts ] executive director 307
concerning the relationship of such additional information to the report 308
that has been issued pursuant to this subsection. Any such subsequent 309
investigation deemed appropriate by the Attorney General shall only be 310
conducted with the concurrence and assistance of the [Auditors of 311
Public Accounts ] executive director . At the request of the Attorney 312
General or on [their] the executive director's own initiative, the 313
[auditors] executive director shall assist in the investigation. 314
(b) (1) The [Auditors of Public Accounts ] executive director may 315
reject any complaint received pursuant to subsection (a) of this section 316
if the [Auditors of Public Accounts determine ] executive director 317
determines one or more of the following: 318
(A) There are other available remedies that the complainant can 319
reasonably be expected to pursue; 320
(B) The complaint is better suited for investigation or enforcement by 321
another state agency; 322
(C) The complaint is trivial, frivolous, vexatious or not made in good 323
faith; 324
(D) Other complaints have greater priority in terms of serving the 325
public good; 326
(E) The complaint is not timely or is too long delayed to justify further 327
investigation; or 328
(F) The complaint could be handled more appropriately as part of an 329
ongoing or scheduled regular audit. 330
(2) If the [Auditors of Public Accounts reject ] executive director 331
rejects a complaint pursuant to subdivision (1) of this subsection, the 332
[Auditors of Public Accounts] executive director shall provide a report 333
to the Attorney General setting out the basis for the rejection. 334
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(3) If at any time the [Auditors of Public Accounts determine ] 335
executive director determines that a complaint is more appropriately 336
investigated by another state agency, the [Auditors of Public Accounts] 337
executive director shall refer the complaint to such agency. The 338
investigating agency shall provide a status report regarding the referred 339
complaint to the [Auditors of Public Accounts] executive director upon 340
request. 341
(c) Notwithstanding the provisions of section 12 -15, the 342
Commissioner of Revenue Services may, upon written request by the 343
[Auditors of Public Accounts ] executive director , disclose return or 344
return information, as defined in section 12-15, to the Auditors of Public 345
Accounts or executive director for purposes of preparing a report under 346
subsection (a) or (b) of this section. Such return or return information 347
shall not be published in any report prepared in accordance with 348
subsection (a) or (b) of this section, and shall not otherwise be 349
redisclosed, except that such information may be redisclosed to the 350
Attorney General for purposes of an investigation authorized by 351
subsection (a) of this section. Any person who violates the provisions of 352
this subsection shall be subject to the provisions of subsection (g) of 353
section 12-15. 354
(d) The Attorney General may summon witnesses, require the 355
production of any necessary books, papers or other documents and 356
administer oaths to witnesses, where necessary, for the purpose of an 357
investigation pursuant to this section or for the purpose of investigating 358
a suspected violation of subsection (a) of section 4-275 until such time as 359
the Attorney General files a civil action pursuant to section 4 -276. 360
Service of a subpoena ad testificandum, subpoena duces tecum and a 361
notice of deposition, may be made by: (1) Personal service or service at 362
the usual place of abode; or (2) registered or certified mail, return receipt 363
requested, a duly executed copy thereof addressed to the person to be 364
served at such person's principal place of business in this state, or, if 365
such person has no principal place of business in this state, at such 366
person's principal office or such person's residence. Upon the 367
conclusion of the investigation, the Attorney General shall where 368
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necessary, report any findings to the Governor, or in matters involving 369
criminal activity, to the Chief State's Attorney. In addition to the exempt 370
records provision of section 1 -210, the Auditors of Public Accounts , 371
executive director and [the] Attorney General shall not, after receipt of 372
any information from a person under the provisions of this section or 373
sections 4-276 to 4 -280, inclusive, disclose the identity of such person 374
without such person's consent unless the Auditors of Public Accounts , 375
executive director or the Attorney General determines that such 376
disclosure is unavoidable, and may withhold records of such 377
investigation, during the pendency of the investigation. All 378
documentary material or other information furnished to the Attorney 379
General, the Attorney General's deputy or any assistant attorney general 380
designated by the Attorney General, pursuant to a demand issued 381
under this subsection for the purpose of investigating a suspected 382
violation of subsection (a) of section 4 -275, shall be returned to the 383
person furnishing such documentary material or other information, or, 384
if such person furnished such documentary material or other 385
information in an electronic format, erased, upon the termination of the 386
Attorney General's investigation or final determination of any action or 387
proceeding commenced thereunder. 388
(e) (1) No state officer or employee, as defined in section 4 -141, no 389
quasi-public agency officer or employee, no officer or employee of a 390
large state contractor and no appointing authority shall take or threaten 391
to take any personnel action against any state or quasi -public agency 392
employee or any employee of a large state contractor in retaliation for 393
(A) such employee's or contractor's disclosure of information to (i) an 394
employee of the Auditors of Public Accounts, the Office of Government 395
Oversight and Efficiency or the Attorney General under the provisions 396
of subsection (a) of this section; (ii) an employee of the state agency or 397
quasi-public agency where such state officer or employee is employed; 398
(iii) an employee of a state agency pursuant to a mandated reporter 399
statute or pursuant to subsection (b) of section 17a-28; (iv) an employee 400
of the Probate Court where such employee is employed; or (v) in the 401
case of a large state contractor, an employee of the contracting state 402
agency concerning information involving the large state contract; or (B) 403
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such employee's testimony or assistance in any proceeding under this 404
section. 405
(2) (A) Not later than ninety days after learning of the specific 406
incident giving rise to a claim that a personnel action has been 407
threatened or has occurred in violation of subdivision (1) of this 408
subsection, a state or quasi -public agency employee, an employee of a 409
large state contractor or the employee's attorney may file a complaint 410
against the state agency, quasi-public agency, Probate Court, large state 411
contractor or appointing authority concerning such personnel action 412
with the Chief Human Rights Referee designated under section 46a -57. 413
Such complaint may be amended if an additional incident giving rise to 414
a claim under this subdivision occurs subsequent to the filing of the 415
original complaint. The Chief Human Rights Referee shall assign the 416
complaint to a human rights referee appointed under section 46a -57, 417
who shall conduct a hearing and issue a decision concerning whether 418
the officer or employee taking or threatening to take the personnel 419
action violated any provision of this section. The human rights referee 420
may order a state agency, quasi -public agency or Probate Court to 421
produce (i) an employee of such agency, quasi-public agency or Probate 422
Court to testify as a witness in any proceeding under this subdivision, 423
or (ii) books, papers or other documents relevant to the complaint, 424
without issuing a subpoena. If such agency, quasi -public agency or 425
Probate Court fails to produce such witness, books, papers or 426
documents, not later than thirty days after such order, the human rights 427
referee may consider such failure as supporting evidence for the 428
complainant. If, after the hearing, the human rights referee finds a 429
violation, the referee may award the aggrieved employee reinstatement 430
to the employee's former position, back pay and reestablishment of any 431
employee benefits for which the employee would otherwise have been 432
eligible if such violation had not occurred, reasonable attorneys' fees, 433
and any other damages. For the purposes of this subsection, such 434
human rights referee shall act as an independent hearing officer. The 435
decision of a human rights referee under this subsection may be 436
appealed by any person who was a party at such hearing, in accordance 437
with the provisions of section 4-183. 438
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(B) The Chief Human Rights Referee shall adopt regulations, in 439
accordance with the provisions of chapter 54, establishing the procedure 440
for filing complaints and noticing and conducting hearings under 441
subparagraph (A) of this subdivision. 442
(3) As an alternative to the provisions of subdivision (2) of this 443
subsection: (A) A state or quasi -public agency employee who alleges 444
that a personnel action has been threatened or taken may file an appeal 445
not later than ninety days after learning of the specific incident giving 446
rise to such claim with the Employees' Review Board under section 5 -447
202, or, in the case of a state or quasi -public agency employee covered 448
by a collective bargaining contract, in accordance with the procedure 449
provided by such contract; or (B) an employee of a large state contractor 450
alleging that such action has been threatened or taken may, after 451
exhausting all available administrative remedies, bring a civil action in 452
accordance with the provisions of subsection (c) of section 31-51m. 453
(4) In any proceeding under subdivision (2) or (3) of this subsection 454
concerning a personnel action taken or threatened against any state or 455
quasi-public agency employee or any employee of a large state 456
contractor, which personnel action occurs not later than two years after 457
the employee first transmits facts and information concerning a matter 458
under subsection (a) of this section or discloses information under 459
subdivision (1) of this subsection to the Auditors of Public Accounts, the 460
executive director , the Attorney General or an employee of a state 461
agency, quasi-public agency or Probate Court, as applicable, there shall 462
be a rebuttable presumption that the personnel action is in retaliation 463
for the action taken by the employee under subsection (a) of this section 464
or subdivision (1) of this subsection. 465
(5) If a state officer or employee, as defined in section 4 -141, a quasi-466
public agency officer or employee, an officer or employee of a large state 467
contractor or an appointing authority takes or threatens to take any 468
action to impede, fail to renew or cancel a contract between a state 469
agency and a large state contractor, or between a large state contractor 470
and its subcontractor, in retaliation for the disclosure of information 471
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pursuant to subsection (a) of this section or subdivision (1) of this 472
subsection to any agency listed in subdivision (1) of this subsection, such 473
affected agency, contractor or subcontractor may, not later than ninety 474
days after learning of such action, threat or failure to renew, bring a civil 475
action in the superior court for the judicial district of Hartford to recover 476
damages, attorney's fees and costs. 477
(f) Any employee of a state agency, quasi -public agency, Probate 478
Court or large state contractor, who is found by the [Auditors of Public 479
Accounts] executive director , the Attorney General, a human rights 480
referee or the Employees' Review Board to have knowingly and 481
maliciously made false charges under subsection (a) of this section, shall 482
be subject to disciplinary action by such employee's appointing 483
authority up to and including dismissal. In the case of a state or quasi -484
public agency employee, such action shall be subject to appeal to the 485
Employees' Review Board in accordance with section 5 -202, or in the 486
case of state or quasi -public agency employees included in collective 487
bargaining contracts, the procedure provided by such contracts. 488
(g) On or before September first, annually, the [Auditors of Public 489
Accounts] executive director shall submit, in accordance with the 490
provisions of section 11 -4a, to the clerk of each house of the General 491
Assembly a report indicating the number of matters for which facts and 492
information were transmitted to the [auditors] Office of Government 493
Oversight and Efficiency pursuant to this section during the preceding 494
state fiscal year and the disposition of each such matter. 495
(h) Each contract between a state or quasi -public agency and a large 496
state contractor shall provide that, if an officer, employee or appointing 497
authority of a large state contractor takes or threatens to take any 498
personnel action against any employee of the contractor in retaliation 499
for such employee's disclosure of information to any employee of the 500
contracting state or quasi -public agency or the Auditors of Public 501
Accounts, executive director or [the] Attorney General under the 502
provisions of subsection (a) or subdivision (1) of subsection (e) of this 503
section, the contractor shall be liable for a civil penalty of not more than 504
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five thousand dollars for each offense, up to a maximum of twenty per 505
cent of the value of the contract. Each violation shall be a separate and 506
distinct offense and in the case of a continuing violation each calendar 507
day's continuance of the violation shall be deemed to be a separate and 508
distinct offense. The executive head of the state or quasi -public agency 509
may request the Attorney General to bring a civil action in the superior 510
court for the judicial district of Hartford to seek imposition and recovery 511
of such civil penalty. 512
(i) Each state agency or quasi-public agency shall post a notice of the 513
provisions of this section relating to state employees and quasi -public 514
agency employees in a conspicuous place that is readily available for 515
viewing by employees of such agency or quasi -public agency. Each 516
Probate Court shall post a notice of the provisions of this section relating 517
to Probate Court employees in a conspicuous place that is readily 518
available for viewing by employees of such court. Each large state 519
contractor shall post a notice of the provisions of this section relating to 520
large state contractors in a conspicuous place which is readily available 521
for viewing by the employees of the contractor. 522
(j) No person who, in good faith, discloses information in accordance 523
with the provisions of this section shall be liable for any civil damages 524
resulting from such good faith disclosure. 525
(k) As used in this section: 526
(1) "Large state contract" means a contract having a value of five 527
million dollars or more (A) between an entity and a state or quasi-public 528
agency, or (B) for the receipt of financial assistance by an entity from the 529
state pursuant to title 32; and 530
(2) "Large state contractor" means an entity that has entered into a 531
large state contract with a state or quasi-public agency. 532
(l) (1) No officer or employee of a state shellfish grounds lessee shall 533
take or threaten to take any personnel action against any employee of a 534
state shellfish grounds lessee in retaliation for (A) such employee's 535
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disclosure of information to an employee of the leasing agency 536
concerning information involving the state shellfish grounds lease, or 537
(B) such employee's testimony or assistance in any proceeding under 538
this section. 539
(2) (A) Not later than ninety days after learning of the specific 540
incident giving rise to a claim that a personnel action has been 541
threatened or has occurred in violation of subdivision (1) of this 542
subsection, an employee of a state shellfish grounds lessee or the 543
employee's attorney may file a complaint against the state shellfish 544
grounds lessee concerning such personnel action with the Chief Human 545
Rights Referee designated under section 46a-57. Such complaint may be 546
amended if an additional incident giving rise to a claim under this 547
subdivision occurs subsequent to the filing of the original complaint. 548
The Chief Human Rights Referee shall assign the complaint to a human 549
rights referee appointed under section 46a -57, who shall conduct a 550
hearing and issue a decision concerning whether the officer or employee 551
taking or threatening to take the personnel action violated any provision 552
of this subsection. The human rights referee may order a state shellfish 553
grounds lessee to produce (i) an employee of such lessee to testify as a 554
witness in any proceeding under this subdivision, or (ii) books, papers 555
or other documents relevant to the complaint, without issuing a 556
subpoena. If such state shellfish grounds lessee fails to produce such 557
witness, books, papers or documents, not later than thirty days after 558
such order, the human rights referee may consider such failure as 559
supporting evidence for the complainant. If, after the hearing, the 560
human rights referee finds a violation, the referee may award the 561
aggrieved employee reinstatement to the employee's former position, 562
back pay and reestablishment of any employee benefits for which the 563
employee would otherwise have been eligible if such violation had not 564
occurred, reasonable attorneys' fees and any other damages. For the 565
purposes of this subsection, such human rights referee shall act as an 566
independent hearing officer. The decision of a human rights referee 567
under this subsection may be appealed by any person who was a party 568
at such hearing, in accordance with the provisions of section 4-183. 569
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sSB324 / File No. 350 19

(B) The Chief Human Rights Referee shall adopt regulations, in 570
accordance with the provisions of chapter 54, establishing the procedure 571
for filing complaints and noticing and conducting hearings under 572
subparagraph (A) of this subdivision. 573
(3) As an alternative to the provisions of subdivision (2) of this 574
subsection, an employee of a state shellfish grounds lessee who alleges 575
that a personnel action has been threatened or taken may, after 576
exhausting all available administrative remedies, bring a civil action in 577
accordance with the provisions of subsection (c) of section 31-51m. 578
(4) In any proceeding under subdivision (2) or (3) of this subsection 579
concerning a personnel action taken or threatened against any employee 580
of a state shellfish grounds lessee, which personnel action occurs not 581
later than two years after the employee first transmits facts and 582
information to an employee of the leasing agency concerning the state 583
shellfish grounds lease, there shall be a rebuttable presumption that the 584
personnel action is in retaliation for the action taken by the employee 585
under subdivision (1) of this subsection. 586
Sec. 12. Subsection (f) of section 4 -278 of the general statutes is 587
repealed and the following is substituted in lieu thereof (Effective October 588
1, 2026): 589
(f) Notwithstanding the provisions of subsection (e) of this section, 590
where the action is one that the court finds to be based primarily on 591
disclosures of specific information that was not provided by the person 592
bringing the action relating to allegations or transactions (1) in a 593
criminal, civil or administrative hearing, (2) in a report, hearing, audit 594
or investigation conducted by the General Assembly, a committee of the 595
General Assembly, the Auditors of Public Accounts, the Office of 596
Government Oversight and Efficiency, a state agency or a quasi -public 597
agency, or (3) from the news media, the court may award from such 598
proceeds to the person bringing the action such sums as it considers 599
appropriate, but in no case more than ten per cent of the proceeds, 600
taking into account the significance of the information and the role of 601
the person bringing the action in advancing the case to litigation. Any 602
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sSB324 / File No. 350 20

such person shall also receive an amount for reasonable expenses that 603
the court finds to have been necessarily incurred, plus reasonable 604
attorneys' fees and costs. All such expenses, fees and costs shall be 605
awarded against the defendant. 606
Sec. 13. Subsection (b) of section 4 -282 of the general statutes is 607
repealed and the following is substituted in lieu thereof (Effective October 608
1, 2026): 609
(b) Unless opposed by the state, the court shall dismiss an action or 610
claim brought under section 4-277 if allegations or transactions that are 611
substantially the same as those alleged in the action or claim were 612
publicly disclosed (1) in a state criminal, civil or administrative hearing 613
in which the state or its agent is a party, (2) in a report, hearing, audit or 614
investigation conducted by the General Assembly, a committee of the 615
General Assembly, the Auditors of Public Accounts, the Office of 616
Government Oversight and Efficiency, a state agency or quasi -public 617
agency, or (3) by the news media, except the court shall not dismiss such 618
action or claim if the action or claim is brought by the Attorney General 619
or the person who is an original source of information. 620
Sec. 14. (NEW) (Effective October 1, 2026) As used in this section, "state 621
agency" means a department, board, council, commission, institution or 622
other executive branch agency. Not later than thirty days after the 623
passage of a public or special act or the adoption of a regulation that 624
constitutes a material and substantial change in the law, the state agency 625
that is charged with implementing or enforcing such act or regulation 626
shall notify all persons affected by such change in the law for whom the 627
state agency has an electronic mail address for, of such change, and shall 628
post a copy of such notice on the state agency's Internet web site. 629
Sec. 15. (NEW) (Effective July 1, 2026) (a) There is established a Results-630
Based Accountability Working Group to evaluate state agency 631
programs, which shall be part of the Legislative Department. 632
(b) The working group shall consist of the following members: 633
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sSB324 / File No. 350 21

(1) One appointed by the speaker of the House of Representatives, 634
who has expertise in state government; 635
(2) One appointed by the president pro tempore of the Senate, who 636
has expertise in finance; 637
(3) One appointed by the majority leader of the House of 638
Representatives, who has expertise in accounting; 639
(4) One appointed by the majority leader of the Senate, who has 640
expertise in human services; 641
(5) One appointed by the minority leader of the House of 642
Representatives, who has expertise in criminal justice; 643
(6) One appointed by the minority leader of the Senate, who has 644
expertise in public health; and 645
(7) The Secretary of the Office of Policy and Management, or the 646
secretary' s designee. 647
(c) Any member of the working group appointed under subdivisions 648
(1) to (6), inclusive, of subsection (b) of this section may be a member of 649
the General Assembly. 650
(d) All initial appointments to the working group shall be made not 651
later than September 1, 2026, and shall terminate on August 31, 2029, 652
regardless of when the initial appointment was made. Any member of 653
the working group may serve more than one term. 654
(e) The speaker of the House of Representatives and the president pro 655
tempore of the Senate shall select the chairpersons of the working group 656
from among the members of the working group. Such chairpersons shall 657
schedule the first meeting of the working group, which shall be held not 658
later than September 1, 2026. 659
(f) The administrative staff of the joint standing committee of the 660
General Assembly having cognizance of matters relating to government 661
oversight shall serve as administrative staff of the working group. 662
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(g) Appointed members of the working group shall serve for three -663
year terms which shall commence on the date of appointment, except as 664
provided in subsection (d) of this section. Members shall continue to 665
serve until their successors are appointed. 666
(h) Any vacancy shall be filled by the appointing authority. Any 667
vacancy occurring other than by expiration of term shall be filled for the 668
balance of the unexpired term. 669
(i) A majority of the working group shall constitute a quorum for the 670
transaction of any business. 671
(j) The members of the working group shall serve without 672
compensation, but shall, within the limits of available funds, be 673
reimbursed for expenses necessarily incurred in the performance of 674
their duties. 675
(k) The working group shall have the following powers and duties: 676
(1) Evaluate the mission and programs of each state agency, including 677
how well each state agency implements such programs and whether the 678
state's population benefits as a result of such programs; (2) obtain from 679
any executive department, board, commission or other agency of the 680
state or Auditors of Public Accounts such assistance and data as 681
necessary and available to carry out the purposes of this section; (3) 682
accept any gift, donation or bequest for the purpose of performing the 683
duties described in this section; and (4) perform such other acts as may 684
be necessary and appropriate to carry out the duties described in this 685
section. 686
(l) The working group shall meet at least quarterly and as often as 687
deemed necessary by the chairpersons or a majority of the working 688
group. The working group may hold hearings and require department 689
heads, as defined in section 4 -5 of the general statutes, to attend its 690
public hearings or meetings to provide information to the working 691
group. 692
(m) Not later than January 1, 2027, and annually thereafter, the 693
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working group shall submit a report, in accordance with the provisions 694
of section 11 -4a of the general statutes, to the Governor and the joint 695
standing committees of the General Assembly having cognizance of 696
matters relating to government oversight and appropriations and the 697
budgets of state agencies on the results of the program evaluations 698
conducted by the working group during the prior year and any 699
recommendations for policy changes and amendments to the general 700
statutes necessary to improve or eliminate such programs. 701
Sec. 16. Section 2 -92a of the general statutes is repealed and the 702
following is substituted in lieu thereof (Effective October 1, 2026): 703
(a) Except as provided in subsection (b) of this section, each joint 704
standing committee of the General Assembly having cognizance of any 705
state agency that is the subject of a report issued by the Auditors of 706
Public Accounts pursuant to any provision of the general statutes and 707
the joint standing committee of the General Assembly having 708
cognizance of matters relating to government [administration] 709
oversight shall hold a joint public hearing concerning such report not 710
later than one hundred eighty days after such report is submitted to the 711
General Assembly by the auditors. In the case of an audit report that has 712
adverse financial implications of five hundred thousand dollars or 713
more, the joint standing committees of the General Assembly having 714
cognizance of matters relating to government oversight and the 715
appropriations and the budgets of state agencies shall hold such joint 716
hearing, and the Secretary of the Office of Policy and Management, the 717
auditors and the head of the state agency that is the subject of such 718
report shall attend such hearing. 719
(b) The chairpersons of any such committee may elect not to hold a 720
public hearing on any auditor report that (1) contains no state agency 721
violations of state statute or regulation, (2) contains only minor or 722
technical recommendations, or (3) the chairpersons determine does not 723
otherwise necessitate a public hearing. 724
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This act shall take effect as follows and shall amend the following
sections:

Section 1 from passage New section
Sec. 2 October 1, 2026 New section
Sec. 3 October 1, 2026 New section
Sec. 4 October 1, 2026 New section
Sec. 5 October 1, 2026 New section
Sec. 6 October 1, 2026 1-101pp
Sec. 7 October 1, 2026 1-110a(c)
Sec. 8 October 1, 2026 2-90(f)
Sec. 9 October 1, 2026 4-33a
Sec. 10 October 1, 2026 4-37j
Sec. 11 October 1, 2026 4-61dd
Sec. 12 October 1, 2026 4-278(f)
Sec. 13 October 1, 2026 4-282(b)
Sec. 14 October 1, 2026 New section
Sec. 15 July 1, 2026 New section
Sec. 16 October 1, 2026 2-92a

Statement of Legislative Commissioners:
In Section 2, "sections 2 to 4, inclusive" was changed to "sections 3 to 5,
inclusive" for accuracy and the definition of "legislative leaders" was
moved from Subsec. (c) to Subsec. (a), for consistency with standard
drafting conventions.

GOS Joint Favorable Subst.

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sSB324 / File No. 350 25

The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of
the General Assembly, solely for purposes of information, summarization and explanation and do not
represent the intent of the General Assembly or either chamber thereof for any purpose. In general,
fiscal impacts are based upon a variety of informational sources, including the analyst’s professional
knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final
products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note

State Impact:
Agency Affected Fund-Effect FY 27 $ FY 28 $
Legislative Mgmt. GF - Cost 455,000 590,000
State Comptroller - Fringe
Benefits1
GF - Cost 169,371 225,828
Note: GF=General Fund

Municipal Impact: None
Explanation
The bill creates the Office of Government Oversight and Efficiency
(OGOE) to detect and prevent fraud, waste, and abuse and tasks the
office with various requirements 2 resulting in a cost to the Office of
Legislative Management (OLM)3. To meet the requirements of the bill
the OGOE will need to hire a director and four additional staff for a
salary and other expenses cost of $455,000 in FY 27 4 and $590,000 in FY
28, along with associated fringe benefits of $169,371 in FY 27 and
$225,828 in FY 28.

1The fringe benefit costs for most state employees are budgeted centrally in accounts
administered by the Comptroller. The estimated active employee fringe benefit cost
associated with most personnel changes is 41.82% of payroll in FY 27.
2The bill requires the OGOE to create a system of coordination for offices performing
similar duties and auditing functions, approve audit programs, conduct inspections
and investigations into expenditures of state funds and use of state -owned or leased
property, adopt regulations, make recommendations to the CGA for the detection of
fraud, and submit an annual report to the CGA.
3The OGOE is within OLM for administrative purposes only.
4Costs in FY 27 reflect nine months of expenditures due to the bill's 10/1/26 effective
date.
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The bill also creates a working group on preventing the waste of
taxpayer dollars and a results -based accountability working group
resulting in no fiscal impact to the state because the working groups
have the expertise to meet the requirements of the bill.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to employee wage increases and
inflation.

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OLR Bill Analysis
sSB 324

AN ACT CONCERNING GOVERNMENT OVERSIGHT OVER FRAUD
AND WASTE AND ESTABLISHING THE OFFICE OF GOVERNMENT
OVERSIGHT AND EFFICIENCY.

SUMMARY
This bill establishes the Office of Government Oversight and
Efficiency (OGOE) to detect and prevent fraud, waste , and abuse in (1)
state personnel management; (2) state property use and disposition; and
(3) the collection, disbursement, and expenditure of state and federal
funds administered by state or quasi -public agencies (governmental
agencies). It must also evaluate the economy, efficiency, and
effectiveness of these agencies and private contractors providing
government services . The bill establishes OGOE as an independent
office under the Joint Committee on Legislative Management for
administrative purposes only (§§ 2-13).
The bill also establishes working groups on (1) fraud and waste (§ 1)
and (2) results-based accountability (§ 15). Additionally, it requires state
agencies to notify certain persons about changes in the law (§ 14). It also
generally requires that the Appropriations and Government Oversight
committees hold joint hearings on Auditors of Public Accounts (APA)
reports with certain financial implications (§ 16).
The bill also makes technical and conforming changes.
EFFECTIVE DATE: October 1, 2026, except the provisions on the
working group concerning fraud and waste are effective upon passage
and the Results -Based Accountability Working Group provisions are
effective July 1, 2026.
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§§ 2 -13 — OFFICE OF GOVERNMENT OVERSIGHT AND
EFFICIENCY
OGOE Executive Director Appointment (§ 2)
Under the bill, OGOE is managed by an executive director. The bill
requires a committee of legislative leaders (House speaker, Senate
president pro tempore, and the minority leaders) and the chairs and
ranking members of the Government Administration and Elections
(GAE) Committee to choose three candidates to potentially serve in this
role. The legislative leaders must then (1) choose a candidate within 90
days of receiving the names and (2) submit him or her for confirmation
by the Senate or House under th e procedures outlined in state law. If
the leaders fail to appoint someone by the deadline, the leaders and the
GAE chairs and ranking members must choose a candidate by majority
vote to submit for confirmation.
The director must be appointed based on integrity and demonstrated
competence in the appropriate fields. If confirmed, the director serves a
five-year term or until a successor is appointed in the same manner
outlined above. The legislative leaders may remove the director for
cause, including for material neglect of duty, gross misconduct, or a
felony conviction.
Executive Director Authority (§ 3)
The bill allows the executive director to adopt regulations to
implement the bill’s requirements for OGOE and employ any necessary
staff, within available appropriations . He or she must also coordinate
efforts, within available appropriations, between OGOE and others with
similar duties and internal auditing functions at governmental agencies.
This coordination may include continuous professional development,
adopting guidelines and procedures, and organiz ing a communication
network.
The bill specifies that internal auditors and support staff within
agencies, although still assigned to their agencies, must have their
internal audit program approved by the OGOE director.
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Executive Director Duties (§§ 4 & 5)
Under the bill, the executive director must:
1. conduct preemptive inspections, inquiries, and investigations
regarding programs and operations that involve (a) collecting,
administering, or expending state funds (particularly for
contracts, pensions, state benefits, and legal settlements); (b) the
use and disposition of state -owned and -leased property; or (c)
state agency management practices and legal compliance;
2. have access to all records, data, and material maintained by or
available to ( a) any governmental agency or ( b) any person or
organization involved in state employee management, or the
funds or property described above (such as a contractor); and
3. report annually on OGOE’s activities to the governor and
Appropriations and GAE committees starting by October 31,
2027 (and the director may make additional reports as
appropriate).
The executive director may:
1. make recommendations to the governor and the legislature on
the prevention and detection of fraud, waste, and abuse by
governmental and non-governmental entities;
2. assist or request assistance from any governmental agency, state
employee, or contractor collecting or expending state funds or
controlling state-owned or -leased property; and
3. apply to Superior Court for subpoenas for witnesses and records.
The subpoenaed witnesses or records must be necessary in order to
obtain information that is otherwise unavailable and i s needed for the
director to carry out his or her duties. Before the court issues a subpoena,
it must provide an opportunity to hear the executive director and the
affected party. The subpoena may not be issued unless the court certifies
that the (1) targeted witness is or documents are reasonably necessary
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sSB324 / File No. 350 30

for the executive director to carry out his or her duties and (2) director
made reasonable efforts to get the information before requesting the
subpoena.
The director must also report findings of fact and recommendations
to certain entities, as shown in the table below, if the executive director
has certain reasonable beliefs.
Table: Required Reporting by OGOE Executive Director
Person or Entity Receiving Report Reasonable Belief Under the Bill
Chief state’s attorney or Office of State
Ethics (OSE)
State law has been or is being violated
Attorney general (AG) Civil recovery proceedings are appropriate
U.S. attorney Federal law has been or is being violated or
civil recovery proceedings are appropriate

FOIA Exemption (§ 5)
Under the bill, all OGOE record s relating to an actual or potential
inspection, inquiry, or investigation are generally deemed confidential
and not public records under the state’s Freedom of Information Act
(FOIA). The records generally become public (1) if the inspection,
inquiry, or investigation is concluded and all criminal and civil actions
are resolved; (2) as the executive director deems appropriate; or (3) two
years after the office receives or creates the record.
If state law requires the record to be confidential, the requirements
and penalties that apply to its original holder apply to OGOE and its
executive director in the same manner and extent. Additionally, records
are not deemed confidential solely because they have been sent to the
director.
Governmental Reporting to OGOE (§§ 6-10)
By law, certain governmental entities may, or are required to, report
certain information to certain auditing and enforcement entities. The bill
adds the OGOE executive director to several of these existing provisions
as an entity receiving information, including information from:
1. OSE on possible violations of the state’s ethics laws or regulations
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sSB324 / File No. 350 31

(§ 6);
2. the APA concerning the unauthorized, illegal, irregular, or
unsafe handling or expenditure of governmental agency funds or
any breakdown in the safekeeping of any governmental
resources (§ 8); and
3. trustees of state institutions, state department heads, boards,
commissions, and other governmental agencies reporting certain
data breaches or the mishandling of funds or any breakdowns
described above (§ 9).
Relatedly, state law also outlines procedures for revoking or reducing
public official s’ or state or municipal employee s’ pension if they are
convicted of certain crimes related to their public office. By law, their
pension may not be reduced or revoked if the court or AG determines
that the defendant voluntarily provided information to certain entities
about crimes committed by other officials or employees to a greater
extent than their own involvement (but before being aware of any
criminal investigations). The bill adds OGOE to this list of entities (§ 7).
The bill also requires OGOE, instead of the APA as under current law,
to assist foundations (generally nonprofits supporting or improving
state agencies) in developing a written policy on (1) investigating certain
misconduct, (2) prohibiting whistleblower retaliation, (3) penalties for
false reporting, and (4) providing the policy to its employees (§ 10).
Public Reporting to OGOE (§ 11)
Under current law, any person having knowledge of corruption or
certain other misconduct involving state agencies, large state contracts,
or economic development funds may report this information to the
APA. The bill instead allows these reports to be brought both to OGOE
and the APA.
Current law establishes certain procedures for the APA to report,
review, and act on this information in collaboration with the AG. The
bill instead authorizes the OGOE executive director to do these actions
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sSB324 / File No. 350 32

with the AG. It also authorizes the director, instead of the APA, to reject
these complaints and report to the AG the reason for the rejection , or
refer these complaints to the appropriate state agencies . Relatedly, the
bill requires the director , instead of the APA , to annually report to the
legislature on these complaints.
Additionally, the law currently allows the revenue services
commissioner to disclose tax returns and tax return information to the
APA for completing reports to the AG if requested in writing. The bill
instead allows OGOE to request this information on OGOE’s or the
APA’s behalf.
The bill otherwise generally incorporates the director into existing
law’s whistleblower framework as already authorized for the APA (§
11).
False Claims Act (§§ 12 & 13)
Relatedly, state law authorizes whistleblowers to receive monetary
awards as part of a false claims action, with the award being lower if the
court determines that the case was primarily based on information from
other sources (such as certain government reports). The bill expands this
to include information provided to OGOE as part of its reports,
hearings, audits, or investigations . As under existing law for certain
governmental public reports, hearings, audits, or investigations, the bill
also generally authorizes the court to dismiss false claims act cases if
they substantially repeat information already published by OGOE.
§ 1 — FRAUD AND WASTE WORKING GROUP
Purpose
The bill requires the group to study and recommend legislation on
preventing the waste of taxpayer dollars by establishing partnerships
between state agencies and private providers for improving service
delivery, reducing service costs, and fostering investigations to uncover
fraud and waste (for example, in employee contracts, payments to
employees, and pension benefits).
Membership
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sSB324 / File No. 350 33

The group’s membership consists of the following state officials: the
Department of Administrative Services commissioner , Office of Policy
and Management (OPM) secretary , and AG, or their designees. It also
includes eight appointed members chosen by the legislative leaders as
described in the table below.
Table: Working Group Appointed Members
Appointing Authority Requirements
House speaker (two) One must have expertise in fraud detection and the
other in state agency contracts
Senate president pro tempore
(two)
One of the two must be a state employee collective
bargaining unit representative
House majority leader None
Senate majority leader None
House minority leader None
Senate minority leader None

Appointing authorities must make their initial appointments within
30 days after the bill is enacted and fill any vacancy. Appointed
members may be legislators.
Leadership and Meetings
Under the bill, the House speaker and Senate president pro tempore
must select the chairpersons from among the group’s members. The
chairpersons must schedule and hold the first meeting with 60 days of
the bill’s enactment. The Government Oversight Committee’s
administrative staff serve in this capacity for the group.
Report
By December 31, 2026, the working group must submit its findings
and recommendations to the Government Oversight Committee. The
working group ends when it submits its report or on December 31, 2026,
whichever is later.
§ 14 — LAW CHANGE NOTIFICATIONS
The bill requires all state agencies charged with implementing or
enforcing acts or regulations to notify certain persons affected by a
substantial change in the law within their jurisdiction due to the passage
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of a legislative act or the adoption of a regulation. Within 30 days after
the act’s passage or regulation’s adoption, the agency must (1) email
each affected person they have an email address for and (2) post a copy
of the notice on the agency’s website. These requirements apply to all
departments, board s, council s, commission s, institution s, and other
executive branch agencies.
§ 15 — RESULTS-BASED ACCOUNTABILITY WORKING GROUP
Membership
The bill requires the group, which it establishes as part of the
Legislative Department, to evaluate state agency programs. The group’s
membership consists of the OPM secretary , or his designee, and six
appointed members chosen by the legislative leaders as described in the
table below.
Table: Working Group Appointed Members
Appointing Authority Required Expertise
House speaker State government
Senate president pro tempore Finance
House majority leader Accounting
Senate majority leader Human services
House minority leader Criminal justice
Senate minority leader Public health

Appointing authorities must make their initial appointments by
September 1, 2026 , and fill any vacancy. Each initial term ends on
August 31, 2029. Vacancies occurring during a term must be filled for
the rest of the unexpired term. Appointed members may be legislators.
There is no term limit.
Members serve three -year terms starting on their appointment date
and continue to serve until their successors are appointed. They serve
without compensation but may be reimbursed for necessary expenses,
within available funds.
Leadership and Meetings
Under the bill, the House speaker and Senate president pro tempore
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must select the chairpersons from among the group’s members. The
chairpersons must schedule and hold the first meeting by September 1,
2026, and meet at least quarterly and as often as the chairs or a majority
of the working group deem necessary. A majority of the group’s
members constitutes a quorum for conducting business.
The Government Oversight Committee’s administrative staff serve in
this capacity for the working group.
Power and Duties
The working group’s powers and duties include:
1. evaluating each state agency’s mission and programs, including
their benefits and implementation;
2. obtaining data and assistance from the APA and any executive
department, board, commission, or other state agency;
3. accepting gifts, donations, or bequests in order to carry out their
duties;
4. holding hearings and requiring department heads to attend and
testify; and
5. any other acts necessary to accomplish its mission.
Reports
Starting by January 1, 2027, the working group must annually submit
any program evaluation results and its policy and legislative
recommendations to the governor and the Appropriations and
Government Oversight committees.
§ 16 — HEARINGS ON APA AUDITS WITH CERTAIN FINANCIAL
IMPLICATIONS
Under current law , after the APA conducts an audit, the legislative
committee with cognizance over the audited entity generally must hold
a public hearing concerning the audit within 180 days of its submission
to the legislat ure. The bill requires these hearing s to be held in
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conjunction with the Government Oversight Committee instead of the
GAE Committee.
The bill requires that for any audit report with adverse financial
implications of $500,000 or more, the Appropriations and Government
Oversight committees generally must hold a joint hearing and the OPM
secretary, the auditors, and the state agency head must attend. As under
existing law, the committee chairpersons may choose to not hold a
hearing on audits that contain no law violations or only minor and
technical recommendations or if they determine it is not necessary.
BACKGROUND
Related Bill
SB 462, favorably reported by the GAE Committee, has substantially
similar provision s as this bill on establishing a government oversight
office.
COMMITTEE ACTION
Government Oversight Committee
Joint Favorable Substitute
Yea 12 Nay 0 (03/17/2026)