BILL NUMBER: AB 661	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Beth Gaines

                        FEBRUARY 21, 2013

   An act to amend Section 13405 of the Government Code, relating to
state government.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 661, as introduced, Beth Gaines. State government: FISMA.
    Existing law, the Financial Integrity and State Manager's
Accountability Act of 1983 (FISMA), provides that state agency heads
are responsible for the establishment and maintenance of a system or
systems of internal accounting and administrative control within
their agencies, as specified. Existing law requires that state agency
heads covered by the FISMA shall, biennially, conduct an internal
review and prepare a report on the adequacy of the agency's systems
of internal accounting, administrative control, and monitoring
practices. Copies of the reports are required to be submitted to the
Legislature, the California State Auditor, the Controller, the
Treasurer, the Attorney General, the Governor, the director, and to
the State Library where the copies are required to be available for
public inspection.
   This bill would also require the report to be posted on the agency'
s web site within 5 days of finalization.
   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 13405 of the Government Code is amended to
read:
   13405.  (a) To ensure that the requirements of this chapter are
fully complied with, the head of each state agency that the director
determines is covered by this section shall, on a biennial basis but
no later than December 31 of each odd-numbered year, conduct an
internal review and prepare a report on the adequacy of the agency's
systems of internal accounting, administrative control, and
monitoring practices in accordance with the guide prepared by the
director pursuant to subdivision (d).
   (b) The report, including the state agency's response to review
recommendations, shall be signed by the head of the agency and
addressed to the agency secretary, or the director for agencies
without a secretary. Copies of the reports shall be  posted on
the agency's   web site within five days of finalization,
and  submitted to the Legislature, the  California 
State Auditor, the Controller, the Treasurer, the Attorney General,
the Governor, the director, and to the State Library where they shall
be available for public inspection.
   (c) The report shall identify any material inadequacy or material
weakness in an agency's systems of internal accounting and
administrative control that prevents the head of the agency from
stating that the agency's systems comply with this chapter. No later
than 30 days after the report is submitted, the agency shall provide
to the director a plan and schedule for correcting the identified
inadequacies and weaknesses, which shall be updated every six months
until all corrections are completed.
   (d) The director, in consultation with the State Auditor and the
Controller, shall establish, and may modify from time to time as
necessary, a system of reporting and a general framework to guide
state agencies in conducting internal reviews of their systems of
internal accounting and administrative control.
   (e) The director, in consultation with the State Auditor and the
Controller, shall establish, and may modify from time to time as
necessary, a general framework of recommended practices to guide
state agencies in conducting active, ongoing monitoring of processes
for internal accounting and administrative control.