Amended in Assembly April 4, 2013

California Legislature—2013–14 Regular Session

Assembly BillNo. 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 amended, 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 forbegin delete all local agencies,end deletebegin insert a joint powers agencyend insert 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:

P2    1

SECTION 1.  

Section 53895 of the Government Code is
2amended to read:

3

53895.  

(a) An officer of a local agency to which Section
4begin delete53895.5 or end delete53895.7 does not apply who fails or refuses to make
5and file his or her report within 20 days after receipt of a written
6notice of the failure from the Controller shall forfeit to the state:

7(1) Two thousand five hundred dollars ($2,500), in the case of
8a local agency with total revenue, in the prior year, of less than
9one hundred thousand dollars ($100,000), as reported in the
10Controller’s annual financial reports.

11(2) Five thousand five hundred dollars ($5,500) in the case of
12a local agency with total revenue, in the prior year, of at least one
13hundred thousand dollars ($100,000) but less than two hundred
14fifty thousand dollars ($250,000), as reported in the Controller’s
15annual financial reports.

16(3) Ten thousand dollars ($10,000) in the case of a local agency
17with total revenue, in the prior year, of at least two hundred fifty
18thousand dollars ($250,000), as reported in the Controller’s annual
19financial reports.

20(b) (1) Upon the request of the Controller, the Attorney General
21shall prosecute an action for the forfeiture in the name of the people
22of the State of California.

23(2) Upon a satisfactory showing of good cause, the Controller
24may waive the penalties for late filing provided in this section.

25(c) If an officer of a local agency fails or refuses to make and
26file his or her report within 20 days after receipt of a written notice
27pursuant to subdivision (a) for two consecutive years, the forfeiture
28assessed pursuant to paragraphs (1), (2), and (3) of subdivision (a)
29in the second year shall be doubled.

30(d) If an officer of a local agency fails or refuses to make and
31file his or her report within 20 days after receipt of a written notice
32pursuant to subdivision (a) for three consecutive years, the
33forfeiture or fine assessed pursuant to paragraphs (1), (2), and (3)
P3    1of subdivision (a) in the third year shall be tripled. In this case, the
2Controller also shall conduct, or cause to be conducted, an
3independent financial audit report. With respect to abegin delete community
4redevelopment agency, the audit report shall be consistent with
5Section 33080.1 of the Health and Safety Code, and in with respect
6to aend delete
joint powers agency, the audit report shall be consistent with
7Section 6505. The agency shall reimburse the Controller for the
8cost of complying with this subdivision.

9(e) An agency that makes a forfeiture or payment pursuant to
10this section shall still be required to file the report required pursuant
11to Section 53891.



O

    98