BILL NUMBER: AB 253	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Smyth

                        FEBRUARY 3, 2011

   An act to amend Section 53891 of, and to add Section 53891.2 to,
the Government Code, relating to local agencies.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 253, as introduced, Smyth. Local agencies: audit guidelines
prescribed by the Controller and appointment of the Committee on City
Accounting Procedures by the Controller.
   Existing law requires the Controller to prescribe uniform
accounting and reporting procedures that are applicable to all local
agencies, except to specified local agencies.
   This bill would require the Controller to prescribe specified
audit guidelines that would be applicable to all local agencies and
conform to generally accepted auditing standards. This bill would
require the Controller to prescribe these procedures and guidelines
for counties, and uniform accounting and reporting procedures for
cities, as specified.
   This bill would establish the Committee on City Accounting
Procedures that would consist of 10 members appointed by the
Controller, with 5 of the members of the committee being city finance
officers, 3 of the members of the committee being city managers, and
2 members of the committee being city council members. This bill
would indicate that the members of the committee would serve without
compensation, but would require the members to be reimbursed for
their necessary traveling and other expenses incurred in attending
committee meetings. This bill would require that these expenses be
paid by the city of which the member is an officer.
   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 53891 of the Government Code is amended to
read:
   53891.  The officer of each local agency who has charge of the
financial records shall furnish to the Controller a report of all the
financial transactions of the local agency during the next preceding
fiscal year. The report shall be furnished within 90 days after the
close of each fiscal year and shall be in the form required by the
Controller. If the report is filed in electronic format as prescribed
by the Controller, the report shall be furnished within 110 days
after the close of each fiscal year. However, in the case of local
agencies filing annual financial materials with the California Health
Facilities Commission or any successor thereto pursuant to Section
441.18 of the Health and Safety Code, the audited report shall be
furnished within 120 days after the close of each fiscal year.
Further, in the case of community redevelopment agencies filing
annual reports with the Controller pursuant to Section 33080 of the
Health and Safety Code, the report shall be furnished within six
months of the end of the agency's fiscal year.
   The Controller shall prescribe uniform accounting and reporting
procedures which shall be applicable to all local agencies except
 cities, counties, and  school districts, and except
for local agencies which substantially follow a system of accounting
prescribed by the Public Utilities Commission of the State of
California or the Federal Power Commission. The procedures shall be
adopted under the provisions of Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2. The Controller shall
prescribe  the   these  procedures  and
guidelines for special districts  only after consultation with
and approval of a local governmental advisory committee established
pursuant to Section 12463.1. Approval of the procedures shall be by
majority vote of the members present at a meeting of the committee
called by the chairperson thereof. 
   The Controller shall prescribe audit guidelines that shall be
applicable to all local agencies and shall conform to generally
accepted auditing standards. These guidelines shall be adopted by the
committees established in Sections 12463.1, 30200, and 53891.2. The
Controller shall prescribe these procedures and guidelines for
counties as required by Section 30200.  
   The Controller shall prescribe for cities uniform accounting and
reporting procedures confirming to the Generally Accepted Accounting
Principles (GAAP). The procedures shall be adopted under the
provisions of Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of Title 2 and shall be published in the California
Code of Regulations either in their entirety or by reference. The
Controller shall prescribe the procedures after consultation with and
approval by the Committee on City Accounting Procedures. The vote of
the committee to approve the procedures may be conducted by mail at
the discretion of the chairperson of the committee. However, if one
or more members of the committee request a meeting for the purpose of
voting, the chairperson shall call a meeting of the committee as
provided in Section 53891.2. 
  SEC. 2.  Section 53891.2 is added to the Government Code, to read:
   53891.2.  The Committee on City Accounting Procedures is hereby
created and shall consist of 10 members appointed by, and who shall
serve at the pleasure of, the Controller. Five of the members shall
be city finance officers, three of the members shall be city
managers, and two of the members shall be city council members. The
members of the committee shall serve without compensation, but shall
be reimbursed for their necessary traveling and other expenses
incurred in attending meetings of the committee. These expenses shall
be paid by the city of which the member is an officer. The
Controller shall designate a member of the committee to serve as
chairperson. The committee shall meet at the call of the chairperson
and each member shall be given written notice of a meeting at least
10 days prior to the date of the meeting.