BILL NUMBER: AB 867 CHAPTERED 07/22/03 CHAPTER 86 FILED WITH SECRETARY OF STATE JULY 22, 2003 APPROVED BY GOVERNOR JULY 21, 2003 PASSED THE SENATE JULY 7, 2003 PASSED THE ASSEMBLY MAY 8, 2003 INTRODUCED BY Assembly Member Nakano FEBRUARY 20, 2003 An act to amend Sections 29093, 29109, 53895, and 53895.5 of the Government Code, relating to financial reports. LEGISLATIVE COUNSEL'S DIGEST AB 867, Nakano. Controller: penalties. Existing law requires the county auditor to file a copy of the completed budget of the county and a statement of the rates and amounts of taxes to be levied and allocated pursuant to the Revenue and Taxation Code, as specified, in the office of the Controller on or before November 1 of each year. Existing law also requires the officer in charge of the financial records of each local agency, as defined, including a community redevelopment agency, to file a report of the financial transactions of the local agency during the next preceding fiscal year with the Controller within 90 days after the close of each fiscal year. Existing law provides for forfeiture to the state of various monetary penalties for the failure to comply within 20 days with a written notice from the Controller that the report has not been timely filed and authorizes the Attorney General, upon the request of the Controller, to prosecute an action to recover the forfeiture. This bill would authorize the Controller to waive the penalty for late filing upon a satisfactory showing of good cause. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 29093 of the Government Code is amended to read: 29093. (a) A copy of the completed budget as finally determined and adopted shall be filed by the auditor in the office of the clerk of the board and the office of the Controller not later than November 1 of each year. (b) (1) If the auditor, after receipt of written notice from the Controller, fails to transmit a copy of the budget within 20 days, he or she shall forfeit to the state one thousand dollars ($1,000) to be recovered in an action brought by the Attorney General, in the name of the Controller. (2) Upon a satisfactory showing of good cause, the Controller may waive the penalty for late filing provided in paragraph (1). (c) The board may, by resolution, extend on a permanent basis or for a limited period the date specified by this section from November 1 to December 1. SEC. 2. Section 29109 of the Government Code is amended to read: 29109. (a) On or before November 1 of each year, the auditor shall forward to the Controller, in such form as the Controller directs, a statement of the rates of taxation, the assessed valuation as shown on the current equalized assessment roll, the amount of taxes to be levied and allocated pursuant to the Revenue and Taxation Code. (b) (1) If the auditor, after receipt of written notice from the Controller fails to transmit the statements within 20 days, he or she shall forfeit to the state, one thousand dollars ($1,000) to be recovered in an action brought by the Attorney General, in the name of the Controller. (2) Upon a satisfactory showing of good cause, the Controller may waive the penalty for late filing provided in paragraph (1). (c) The board may, by resolution, extend on a permanent basis or for a limited period the date specified in this section from November 1 to December 1. SEC. 3. Section 53895 of the Government Code is amended to read: 53895. (a) An officer of a local agency who fails or refuses to make and file his or her report within 20 days after receipt of a written notice of the failure from the Controller shall forfeit to the state: (1) One thousand dollars ($1,000), in the case of a local agency with total revenue, in the prior year, of less than one hundred thousand dollars ($100,000), as reported in the Controller's annual financial reports. (2) Two thousand five hundred dollars ($2,500) in the case of a local agency with total revenue, in the prior year, of at least one hundred thousand dollars ($100,000) but less than two hundred fifty thousand dollars ($250,000), as reported in the Controller's annual financial reports. (3) Five thousand dollars ($5,000) in the case of a local agency with total revenue, in the prior year, of at least two hundred fifty thousand dollars ($250,000), as reported in the Controller's annual financial reports. (b) (1) Upon the request of the Controller, the Attorney General shall prosecute an action for the forfeiture in the name of the people of the State of California. (2) Upon a satisfactory showing of good cause, the Controller may waive the penalties for late filing provided in this section. SEC. 4. Section 53895.5 of the Government Code is amended to read: 53895.5. (a) An officer of a community redevelopment agency who fails or refuses to make and file his or her report within 20 days after receipt of a written notice of the failure from the Controller shall forfeit to the state: (1) One thousand dollars ($1,000) in the case of a community redevelopment agency with total revenue, in the prior year, of less than one hundred thousand dollars ($100,000), as reported in the Controller's annual financial reports. (2) Two thousand five hundred dollars ($2,500) in the case of a community redevelopment agency with total revenue, in the prior year, of at least one hundred thousand dollars ($100,000), but less than two hundred fifty thousand dollars ($250,000), as reported in the Controller's annual financial reports. (3) Five thousand dollars ($5,000) in the case of a community redevelopment agency with total revenue, in the prior year, of at least two hundred fifty thousand dollars ($250,000), as reported in the Controller's annual financial reports. (b) An officer of a community redevelopment agency who fails or refuses to make and file his or her report within 20 days after receipt of a written notice of the failure from the Controller in the second or more consecutive year shall forfeit to the state: (1) Two thousand dollars ($2,000) in the case of a community redevelopment agency with total revenue, in the prior year, of less than one hundred thousand dollars ($100,000), as reported in the Controller's annual financial reports. (2) Five thousand dollars ($5,000) in the case of a community redevelopment agency with total revenue, in the prior year, of at least one hundred thousand dollars ($100,000) but less than two hundred fifty thousand dollars ($250,000), as reported in the Controller's annual financial reports. (3) Ten thousand dollars ($10,000) in the case of a community redevelopment agency with total revenue, in the prior year, of at least two hundred fifty thousand dollars ($250,000), as reported in the Controller's annual financial reports. (c) In the case of a community redevelopment agency that fails or refuses to make and file its report within 20 days after receipt of a written notice of the failure from the Controller in the third or more consecutive year, the Controller shall conduct or cause to be conducted an independent financial audit report consistent with the requirements of Section 33080.1 of the Health and Safety Code. The community redevelopment agency shall reimburse the Controller for the cost of complying with this subdivision. The community redevelopment agency shall not use any of the money in the Low and Moderate Income Housing Fund to reimburse the Controller. (d) (1) Upon the request of the Controller, the Attorney General shall prosecute an action for the forfeiture in the name of the people of the State of California. (2) Upon a satisfactory showing of good cause, the Controller may waive the penalties for late filing provided in this section. (e) A community redevelopment agency that makes a forfeiture or payment pursuant to this section shall still file the report required pursuant to Section 53891.