1. (a) In assessing whether the waste, fraud, abuse, or mismanagement or impaired economy, efficiency, or effectiveness being risked by a state agency or a statewide issue may result in serious detriment to the State or its residents, the State Auditor shall consider whether any or all of the following circumstances may result:

   1. (1) Loss of life, significant injury, or a broad reduction in residents' overall health or safety.
   2. (2) Impairment of the delivery of important government services.
   3. (3) Significant reduction in the overall effectiveness or efficiency of a state government program.
   4. (4) Undermining of California's economic stability and growth.
   5. (5) Impingement of citizens' rights, including their right to privacy.
   6. (6) Widespread damage to public confidence in California government.
   7. (7) Manipulation, misuse, or unauthorized disclosure of sensitive information, including sensitive data maintained in a state computer system.
   8. (8) Reduction in the value of state assets or revenues or an increase in state liabilities or expenses, including improper payments, that significantly affects the State's finances.
2. (b) An assessment by the State Auditor that any of the circumstances listed in subdivision (a) of this section may result from the risk associated with a state agency or statewide issue shall constitute sufficient grounds for a determination that serious detriment may result from the risk.

Note: Authority cited: Section 8546, Government Code. Reference: Section 8546.5, Government Code.

History

1. New section filed 2-22-2016; operative 4-1-2016. Submitted to OAL for printing only and not subject to OAL review pursuant to Government Code section 8546(g) (Register 2016, No. 9).