California Legislature—2013–14 Regular Session

Assembly Bill No. 1035

Introduced by Assembly Member Muratsuchi

February 22, 2013

An act to amend Section 53895 of the Government Code, relating to local government.

LEGISLATIVE COUNSEL’S DIGEST

AB 1035, as introduced, Muratsuchi. Local agencies: financial reports.

Existing law requires the Controller to annually compile and publish reports of the financial transactions of each county, city, and school district within the state, together with other matters he or she deems of public interest.

Existing law provides that an officer of a local agency who fails or refuses to make and file his or her financial report within 20 days after receipt of a written notice of the failure from the Controller forfeits to the state a specified amount depending on the amount of total revenue of that local agency. Existing law raises these amounts in the case of a community redevelopment agency and a joint powers agency that issues conduit revenue bonds in the 2nd and 3rd consecutive year.

This bill would raise the forfeiture amounts for all local agencies, to which existing law does not apply. The bill would double these fines if the agency fails to submit the report to the Controller for 2 consecutive years, and would triple the fines if the agency fails to submit the report to the Controller for 3 consecutive years, in which case the Controller would be required to conduct an independent audit report, the cost of which would be reimbursed by the agency. The bill would specify that an agency that makes a forfeiture or payment pursuant to the above provisions would still be responsible for filing the required financial report.

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 53895 of the Government Code is
amended to read:

53895.  

(a) An officer of a local agency begin insert to which Section
53895.5 or 53895.7 does not apply end insert 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)  begin delete One end delete begin insert Two end insert thousand begin insert five hundred end insert dollars begin delete ($1,000) end delete begin insert ($2,500) end insert ,
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)  begin delete Two end delete begin insert Five end insert thousand five hundred dollars begin delete ($2,500) end delete begin insert ($5,500) end insert
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)  begin delete Five end delete begin insert Ten end insert thousand dollars begin delete ($5,000) end delete begin insert ($10,000) end insert 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.

begin insert

(c) If an officer of a local agency fails or refuses to make and
file his or her report within 20 days after receipt of a written notice
pursuant to subdivision (a) for two consecutive years, the forfeiture
assessed pursuant to paragraphs (1), (2), and (3) of subdivision
(a) in the second year shall be doubled.

end insert begin insert

(d) If an officer of a local agency fails or refuses to make and
file his or her report within 20 days after receipt of a written notice
pursuant to subdivision (a) for three consecutive years, the
forfeiture or fine assessed pursuant to paragraphs (1), (2), and
(3) of subdivision (a) in the third year shall be tripled. In this case,
the Controller also shall conduct, or cause to be conducted, an
independent financial audit report. With respect to a community
redevelopment agency, the audit report shall be consistent with
Section 33080.1 of the Health and Safety Code, and in with respect
to a joint powers agency, the audit report shall be consistent with
Section 6505. The agency shall reimburse the Controller for the
cost of complying with this subdivision.

end insert begin insert

(e) An agency that makes a forfeiture or payment pursuant to
this section shall still be required to file the report required
pursuant to Section 53891.

end insert