BILL NUMBER: AB 1035	INTRODUCED
	BILL TEXT


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  to which Section
53895.5 or 53895.7 does not apply  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   Two  thousand  five
hundred  dollars  ($1,000)   ($2,500) 
, 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   Five  thousand five hundred
dollars  ($2,500)   ($5,500)  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   Ten  thousand dollars
 ($5,000)   ($10,000)  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. 
   (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.  
   (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.  
   (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.