BILL NUMBER: AB 2521	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 26, 2010

INTRODUCED BY   Assembly Member Torrico

                        FEBRUARY 19, 2010

   An act to amend Section 77206 of the Government Code, relating to
courts.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2521, as amended, Torrico. Courts: budget and fiscal
management.
   Existing law authorizes the Judicial Council to regulate the
budget and fiscal management of the trial courts, and requires the
Judicial Council to adopt regulations for recordkeeping and
accounting by the courts ensuring that all revenues and expenditures
relating to court operations are known. At the request of the
Legislature, the Controller may perform and publish financial and
fiscal compliance audits of the reports of court revenues and
expenditures. The Controller is required to report the results of
these audits to the Legislature and the Judicial Council, and the
Judicial Council or its representative may perform audits and reviews
of all court financial records wherever they may be located.
   This bill would  eliminate the authority of the Judicial
Council pursuant to those provisions to perform audits and reviews of
court financial records  ,   instead,
authorize the Judicial Council or its representatives to inspect,
review, and perform comprehensive oversight and analysis of court
financial records wherever they may be located, and to investigate
allegations of financial impropriety or mismanagement. The bill also
would require the Controller, on or before December 15, 2012, and
annually thereafter, to perform an audit of each trial court,
including a review of all funds and accounts under the jurisdiction
and control of each trial court.   The bill would require
the Controller to develop the report format and an audit guide, as
specified. The bill would require the Controller to compile the trial
court audit findings and report the results of these audits to the
Legislature, Judicial Council, and the Department of Finance no later
than April 1 of each year.   The bill would provide that
the audit be paid for from funds of the local trial court being
audited  . 
   This bill also would require the Controller, on or before February
1, 2012, and annually thereafter, to perform an audit of the
Administrative Office of the Courts, including a review of all funds
under the jurisdiction and control of the Administrative Office of
the Courts. The Controller would be required to report the results of
this audit to the Legislature, Judicial Council, and the Department
of Finance no later than April 1 of each year. The bill would provide
that the costs of the audit be reimbursed by the Administrative
Office of the Courts. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 77206 of the Government Code is amended to
read:
   77206.  (a) Notwithstanding any other law, the Judicial Council
may regulate the budget and fiscal management of the trial courts.
The Judicial Council, in consultation with the Controller, shall
maintain appropriate regulations for recordkeeping and accounting by
the courts. The Judicial Council shall seek to ensure, by these
provisions, both of the following:
   (1) The fiscal affairs of the trial courts are managed
efficiently, effectively, and responsibly.
   (2) All moneys collected by the courts, including filing fees,
fines, forfeitures, and penalties, and all revenues and expenditures
relating to court operations are known.
   The Judicial Council may delegate their authority under this
section, when appropriate, to the Administrative Director of the
Courts.
   (b) Regulations, rules, and reporting requirements adopted
pursuant to this chapter shall be exempt from review and approval or
other processing by the Office of Administrative Law as provided for
in Chapter 3.5 (commencing with Section 11340) of Part 1 of Division
3 of Title 2.
   (c) The Controller, at the request of the Legislature, may perform
and publish financial and fiscal compliance audits of the reports of
court revenues and expenditures. The Controller shall report the
results of these audits to the Legislature and the Judicial Council.
   (d) The Judicial Council shall provide for the transmission of
summary information concerning court revenues and expenditures to the
Controller.
   (e) The Judicial Council shall adopt rules to provide for
reasonable public access to budget allocation and expenditure
information at the state and local level.
   (f) The Judicial Council shall adopt rules ensuring that, upon
written request, the trial courts provide, in a timely manner,
information relating to the administration of the courts, including
financial information and other information that affects the wages,
hours, and working conditions of trial court employees. 
   (g) The Judicial Council or its representatives may do any of the
following:  
   (1) Inspect, review, and perform comprehensive oversight and
analysis of court financial records wherever they may be located.
 
   (2) Investigate allegations of financial impropriety or
mismanagement.  
   The authority granted pursuant to this subdivision shall not
substitute for, or conflict with, the authority of the Controller to
conduct annual financial audits pursuant to subdivision (h). 

   (h) (1) On or before December 15, 2012, and annually thereafter,
the Controller shall perform an audit of each trial court. The audit
shall include a review of all funds and accounts under the
jurisdiction and control of each trial court, including, but not
limited to, the Trial Court Trust Fund, the Judicial Administration
Efficiency and Modernization Fund, the Trial Court Improvement Fund,
the Court Interpreters' Fund, the Family Law Trust Fund, and the
Mental Health Services Fund, as well as any federal funds and grants,
and any other funds within the trial court's control. The audit
required by this paragraph shall be in addition to any audit
regularly conducted by the Controller, including all of the
following:  
   (A) The Controller's audit of state funds in the possession and
control of the trial courts.  
   (B) Audits of the fines, forfeitures, assessments, fees,
restitutions, and parking surcharges and penalties collected and
distributed by the trial courts.  
   (C) Audits requested pursuant to subdivision (c).  
   (2) All trial court audits for each fiscal year shall be developed
and reported using a format established by the Controller after
consultation with the Judicial Council and the trial courts. 

   (3) The Controller, in consultation with the Judicial Council and
the trial courts, shall develop an audit guide to carry out the
purposes of this subdivision. A supplement to the audit guide may be
adopted in the audit year to address issues resulting from new
legislation in that year that may impact the funds under the
jurisdiction and control of a trial court. The audit guide prepared
by the Controller shall be used in the performance of the audit
required by this subdivision.  
   (4) Notwithstanding Section 10231.5, the Controller shall compile
the trial court audit findings and report the results of these audits
to the Legislature, Judicial Council, and the Department of Finance
no later than April 1 of each year.  
   (5) The cost of the audit conducted pursuant to this subdivision
shall be paid from funds of the local trial court being audited.
 
   (i) (1) On or before February 1, 2012, and annually thereafter,
the Controller shall perform an audit of the Administrative Office of
the Courts. The audit shall include a review of all funds under the
jurisdiction and control of the Administrative Office of the Courts,
including, but not limited to, the Motor Vehicle Account in the State
Transportation Fund, the Trial Court Trust Fund, the Judicial
Administration Efficiency and Modernization Fund, the Trial Court
Improvement Fund, the Court Interpreters' Fund, the Federal Trust
Fund, the Family Law Trust Fund, the State Court Facilities
Construction Fund, the Appellate Court Trust Fund, the Court
Facilities Trust Fund, the Mental Health Services Fund, the Immediate
and Critical Needs Account of the State Court Facilities
Construction Fund, and the Judicial Branch Workers' Compensation
Fund, as well as grants, and any other funds within the control of
the Judicial Council and the Administrative Office of the Courts.
 
   (2) Notwithstanding Section 10231.5, the Controller shall report
the results of this audit to the Legislature, Judicial Council, and
the Department of Finance no later than April 1 of each year. 

   (3) Any costs incurred by the Controller pursuant to this
subdivision shall be reimbursed by the Administrative Office of the
Courts.  
   (j) A report submitted pursuant to subdivision (h) or (i) shall be
submitted in compliance with Section 9795.