Amended in Assembly May 24, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 1248

Introduced by Assembly Member Cooley

February 22, 2013

An act to add begin delete Sections end delete begin insert Section end insert 12422.5 begin delete and 53064.9 end delete to the Government Code, relating to local government.

LEGISLATIVE COUNSEL’S DIGEST

AB 1248, as amended, Cooley. begin delete Local agencies: end delete begin insert Controller: end insert internal control guidelines begin insert applicable to local agencies end insert .

Existing law requires the Controller to superintend the fiscal concerns of the state, suggest plans for the improvement and management of the public revenues, and at least annually, summon county auditors to discuss problems with, among other things, the reporting of financial transactions of the counties.

This bill would require the Controller, on or before January 1, 2015, to develop internal control guidelines applicable to a local agency, as defined, to prevent and detect financial errors and fraud, based on specified standards and with input from any local agency and organizations representing the interests of local agencies. This bill would require the Controller to, by the same date, post the completed internal control guidelines on the Controller’s Internet Web site and update them, as he or she deems necessary begin insert , as specified end insert . begin delete This bill would require a local agency to comply with the guidelines established by the Controller, starting on January 1, 2016. By mandating local agencies to comply with new internal control guidelines established by the Controller, this bill would impose a state-mandated local program. end delete

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The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

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This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

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Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program:  begin delete yes end delete begin insert no end insert .

The people of the State of California do enact as follows:

SECTION 1.  

Section 12422.5 is added to the Government
Code, to read:

12422.5.  

(a) On or before January 1, 2015, the Controller shall
develop internal control guidelines applicable to each local agency
to prevent and detect financial errors and fraud.

(b) The Controller shall develop the internal control guidelines
based on standards adopted by the American Institute of Certified
Public Accountants and with input from any local agency and
organizations representing the interests of local agencies, including,
but not limited to, the League of California Cities, the California
State Association of Counties, the California Special Districts
Association, and the California State Association of County
Auditors.

(c) On or before January 1, 2015, the Controller shall post the
completed internal control guidelines on the Controller’s Internet
Web site begin insert to assist a local agency, as defined in subdivision (e), in
establishing a system of internal controls to safeguard assets and
prevent and detect financial errors and fraud end insert .

(d) The Controller shall begin insert , with input from the agencies listed in
subdivision (b), end insert update the internal control guidelines, as he or she
deems necessary, and maintain a current version on the Internet
Web site.

(e) For purposes of this section, “local agency” means a city,
county, city and county, special district, or any other local
governmental entity, except a school district.

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SEC. 2.  

Section 53064.9 is added to the Government Code, to
read:

53064.9.  

Commencing on January 1, 2016, a local agency, as
defined in subdivision (e) of Section 12422.5, shall comply with
the internal control guidelines established by the Controller
pursuant to Section 12422.5.

end delete

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SEC. 3.  

If the Commission on State Mandates determines that
this act contains costs mandated by the state, reimbursement to
local agencies and school districts for those costs shall be made
pursuant to Part 7 (commencing with Section 17500) of Division
4 of Title 2 of the Government Code.

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