California Legislature—2013–14 Regular Session

Assembly BillNo. 2676


Introduced by Assembly Member Rendon

February 21, 2014


An act to amend Sections 12463, 12463.3, 53890, 53895, and 53895.7 of, to amend, repeal and add Section 12464 of, to add Article 6 (commencing with Section 12486) to Chapter 5 of Part 2 of Division 3 of Title 2 of, and to repeal Section 53895.5 of, the Government Code, relating to state and local government.

LEGISLATIVE COUNSEL’S DIGEST

AB 2676, as introduced, Rendon. Controller: reports.

(1) 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.

This bill would change the definition of a special district included in the reporting requirements of the Controller to include a public entity, agency, or board provided for by a joint powers agreement that is separate from the parties to the agreement and is responsible for the administration of the agreement.

(2) Existing law provides that if the county, city, or district reports, including redevelopment agency reports, are not made in a specified manner, or there is reason to believe that the report is false, the Controller is required to appoint a qualified accountant to make an investigation and to obtain the information required for the annual report of financial transactions. Existing law requires, if a similar investigation is made of any county, city, or district for 2 successive years, that a copy of the results of those investigations be transmitted to the grand jury of the county investigated or in which the local agency investigated is situated. Existing law requires any costs incurred by the Controller in carrying out those audits to be paid by the local agency.

This bill would also, until January 1, 2020, authorize the Controller to perform an audit or investigation of any county, city, special district, or community redevelopment agency, if the Controller has made findings, supported by documentation, that the local agency is not complying with the financial requirements in state law, state grant agreements, local charters, or local ordinances, and require the Controller to prepare a report of the results of the audit or investigation and to file a copy with the local legislative body, as specified. This bill would require, if the results of those audits determine that the financial report filed by the local agency did not contain false, incomplete, or incorrect information, that the Controller waive the costs of the investigation, and would authorize the Controller to establish a payment program, as specified, to assist a local agency to pay for any costs that cannot be waived.

(3) 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, as specified. 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. This bill would increase penalties for an agency that fails to submit a report, as specified.

This bill would also make technical nonsubstantive, and conforming changes.

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 12463 of the Government Code is
2amended to read:

P3    1

12463.  

(a) The Controller shall compile and publish reports
2of the financial transactions of each county, city, and special
3district, respectively, within this state, together with any other
4matter he or she deems of public interest. The reports shall include
5the appropriations limits and the total annual appropriations subject
6to limitation of the counties, cities, and special districts. The reports
7to the Controller shall be made in the time, form, and manner
8prescribed by the Controller.

9(b) Effective January 1, 2005, the Controller shall compile and
10publish reports of the financial transactions of each county, city,
11and special district pursuant to subdivision (a) on or before August
121, September 1, and October 1 respectively, of each year following
13the end of the annual reporting period. The Controller shall make
14data collected pursuant to this subdivision available upon request
15to the Legislature and its agents, on or before April 1 of each year.

16(c) The Controller shall annually publish, on the Internet Web
17site of the Controller, reports of the financial transactions of each
18school district within this state, together with any other matter he
19or she deems of public interest. The reports shall include the
20appropriations limit and the total annual appropriations subject to
21limitation of the school district. The reports to the Controller shall
22be made in the time, form, and manner prescribed by the Controller.

23(d) As used in this section, the following terms have the
24following meanings:

25(1) “School district” means a school district as defined in Section
2680 of the Education Code.

27(2) “Special district” means any of the following:

28(A) A special district as defined in Section 95 of the Revenue
29and Taxation Code.

30(B) Abegin delete commissionend deletebegin insert public entity, agency, commission, or boardend insert
31 provided for by a joint powers agreement pursuant to Chapter 5
32(commencing with Section 6500) of Division 7 of Titlebegin delete 1.end deletebegin insert 1 that
33is separate from the parties to the agreement.end insert

34(C) A nonprofit corporation that is any of the following:

35(i) Was formed in accordance with the provisions of a joint
36powers agreement to carry out functions specified in the agreement.

37(ii) Issued bonds, the interest on which is exempt from federal
38income taxes, for the purpose of purchasing land as a site for, or
39purchasing or constructing, a building, stadium, or other facility,
40that is subject to a lease or agreement with a local public entity.

P4    1(iii) Is wholly owned by a public agency.

2

SEC. 2.  

Section 12463.3 of the Government Code is amended
3to read:

4

12463.3.  

On or before May 1 of each year, the Controller shall
5compile and publish annually reports of the financial transactions
6of eachbegin delete community redevelopmentend delete agency created pursuant to
7Division 24 (commencing with Section 33000) of the Health and
8Safety Code. The Controller shall make the data available to the
9Legislature and its agents upon request, on or before April 1 of
10each year. The Controller shall publish this information for each
11project area of eachbegin delete redevelopmentend delete agency. The reports shall be
12made in the time, form, and manner prescribed by the Controller,
13after consultation with the Department of Housing and Community
14Development and the advisory committee created pursuant to
15Section 12463.1.

16

SEC. 3.  

Section 12464 of the Government Code is amended
17to read:

18

12464.  

(a) If thebegin insert reports of aend insert county, city,begin insert special district,end insert or
19begin delete district reportsend deletebegin insert agency, created pursuant to Division 24
20(commencing with Section 33000) of the Health and Safety Codeend insert

21 are not made in the time, form, and manner required or there is
22reason to believe that a report is false, incomplete, or incorrect,
23the Controller shall appoint a qualified accountant to make an
24investigation and to obtain the information required. The
25accountant appointed shall report to the Controller the results of
26investigation, and a copy shall be filed with the legislative body
27of the county, city,begin insert special district,end insert orbegin delete district,end deletebegin insert agency,end insert the accounts
28of which were investigated. If a similar investigation has to be
29made of the accounts of any county, city,begin insert special district,end insert orbegin delete district,end delete
30begin insert agency,end insert for two successive years, a certified copy of the results of
31the investigation last made shall be transmitted to the grand jury
32of the county that was investigated or in which thebegin delete cityend deletebegin insert city, special
33district,end insert
orbegin delete districtend deletebegin insert agencyend insert investigated is situated, or, if thebegin insert specialend insert
34 districtbegin insert or agencyend insert is situated in more than one county, in the county
35in which any portion of thebegin insert specialend insert districtbegin insert or agencyend insert is situated.

begin insert

36(b) (1) If the Controller has made findings pursuant to
37 subdivision (c) that a county, city, or special district is not
38complying with the financial requirements in state law, state grant
39agreements, local charters, or local ordinances, he or she may
40audit or investigate the issue if he or she determines that sufficient
P5    1funds exist within his or her budget to conduct the audit or
2investigation.

end insert
begin insert

3(2) The Controller shall prepare a report of the results of the
4audit or investigation that shall include detailed documentation
5of the material basis for the findings included in the audit or
6investigation. A copy of the report shall be filed with the legislative
7body of the city, county, or special district subject to the audit or
8investigation. A finding of illegal acts or fraud shall be
9communicated to the appropriate authorities, including the county
10grand jury.

end insert
begin insert

11(c) (1) Prior to an audit or investigation being conducted
12pursuant to subdivision (b), the Controller, after consultation with
13the local agency, shall make written findings that explain the legal
14and factual basis supporting the decision to conduct the audit or
15investigation and the Controller shall give the local agency a
16reasonable opportunity to respond to these findings.

end insert
begin insert

17(2) (A) In cases in which the Controller seeks to audit or
18investigate compliance with the financial requirements in local
19charters or local ordinances, the Controller shall first share with
20the local agency documentation of evidence relied upon in
21determining the need for the audit or investigation and provide
22the local agency the opportunity to conduct its own audit or
23investigation of the matter in a reasonable period of time. If the
24local agency elects to conduct an audit or investigation, the local
25agency shall provide the results to the Controller promptly upon
26completion. If the Controller subsequently proceeds with his or
27her own audit or investigation, he or she shall make specific written
28findings concerning the evidence relied upon in determining the
29need for the audit or investigation and confirming that each issue
30to be audited or investigated has not been or is not likely to be
31addressed by local means, which may include, but are not limited
32to, a grand jury or district attorney.

end insert
begin insert

33(B) The Controller shall not audit or investigate compliance
34with the financial requirements in local charters or local
35ordinances if the matter involves a pending policy or administrative
36decision, such as adoption of a budget, negotiations of labor or
37other contracts, or a pending decision on an unpaid claim. The
38Controller shall not audit or investigate the matter until a final
39decision has been adopted by the local agency.

end insert
begin insert

P6    1(C) The Controller shall not audit or investigate compliance
2with the financial requirements of local charters or local
3ordinances if the matter is the subject of actual or completed
4litigation.

end insert
begin insert

5(3) For purposes of this subdivision, documentation means a
6writing, photograph, photostat, email or facsimile transmission,
7or any other means of recording upon a tangible thing in any form
8of communication or representation, including letters, words,
9 pictures, sounds, or symbols, or combinations thereof, or a record
10thereby created, regardless of the manner in which the record has
11been stored.

end insert
begin insert

12(4) The Controller shall not initiate or conduct an audit or
13investigation pursuant to subdivision (b) or (c) of a local agency
14that falls within the date the local agency has initiated the neutral
15evaluation process, pursuant to Article 5 (commencing with Section
1653760) of Chapter 4 of Part 1 of Division 2 of Title 5, and the date
17that process has been completed.

end insert
begin delete

18(b)

end delete

19begin insert(d)end insertbegin insert(1)end insertbegin insertend insert Any costs incurred by the Controller pursuant to
20subdivision (a), including contracts with, or employment of,
21certified public accountants or public accountants, in compiling a
22financial report pursuant to Section 12463 or 12463.3 shall be
23borne by the county, city,begin insert specialend insert district, orbegin delete redevelopment agency,end delete
24begin insert agencyend insert and shall be a charge against any unencumbered funds of
25the county, city,begin insert specialend insert district, orbegin delete redevelopmentend delete agency. Any
26forfeiture imposed by Section 53895begin delete or 53895.5end delete may be offset up
27to the total costs incurred by the Controller. Any remaining balance
28shall be forfeited in accordance with Sections 53895 andbegin delete 53895.5.end delete
29begin insert 53895.7.end insert Any costs incurred by the Controller in excess of the
30forfeiture imposed shall be a charge against any unencumbered
31funds of the county, city,begin insert specialend insert district, orbegin delete redevelopmentend delete agency.

begin insert

32(2) If an investigation conducted pursuant to subdivision (a)
33determines that the financial report filed by the county, city, or
34special district did not contain materially false, incomplete, or
35incorrect information, the Controller shall waive the costs of the
36investigation. The Controller may establish a payment program,
37with interest, for up to five years to assist a local agency to pay
38for the costs that cannot be waived.

end insert
begin insert

P7    1(e) This section shall remain in effect only until January 1, 2020,
2and as of that date is repealed, unless a later enacted statute, that
3is enacted before January 1, 2020, deletes or extends that date.

end insert
4

SEC. 4.  

Section 12464 is added to the Government Code, to
5read:

6

12464.  

(a) If the reports of the county, city, special district, or
7agency created pursuant to Division 24 (commencing with Section
833000) of the Health and Safety Code are not made in the time,
9form, and manner required or there is reason to believe that a report
10is false, incomplete, or incorrect, the Controller shall appoint a
11qualified accountant to make an investigation and to obtain the
12information required. The accountant appointed shall report to the
13Controller the results of the investigation, and a copy shall be filed
14with the legislative body of the county, city, special district, or
15agency the accounts of which were investigated. If a similar
16investigation has to be made of the accounts of any county, city,
17special district, or agency for two successive years, a certified copy
18of the results of the investigation last made shall be transmitted to
19the grand jury of the county that was investigated or in which the
20city, special district, or agency investigated is situated, or, if the
21special district or agency is situated in more than one county, in
22the county in which any portion of the special district or agency
23is situated.

24(b) Any costs incurred by the Controller pursuant to subdivision
25(a), including contracts with, or employment of, certified public
26accountants or public accountants, in compiling a financial report
27pursuant to Section 12463 or 12463.3 shall be borne by the county,
28city, special district, or agency and shall be a charge against any
29unencumbered funds of the county, city, special district, or agency.
30Any forfeiture imposed by Section 53895 may be offset up to the
31total costs incurred by the Controller. Any remaining balance shall
32be forfeited in accordance with Sections 53895 and 53895.7. Any
33costs incurred by the Controller in excess of the forfeiture imposed
34shall be a charge against any unencumbered funds of the county,
35city, special district, or agency.

36(c) This section shall become operative on January 1, 2020.

37

SEC. 5.  

Article 6 (commencing with Section 12486) is added
38to Chapter 5 of Part 2 of Division 3 of Title 2 of the Government
39Code
, to read:

 

P8    1Article 6.  Voluntary Local Agency Financial Review
2

 

3

12486.  

(a) At the written request of the governing body, chief
4administrative officer, or chief executive of a local agency, the
5Controller may convene a local agency financial review committee
6to provide assistance to the local agency in reviewing and assessing
7its financial condition and related internal controls to avert or
8manage a serious financial problem.

9(b) The request shall include a description of the factors that
10warrant the need for review and assessment.

11(c) The local agency shall reimburse the Controller for any costs
12incurred by the Controller in conducting a review pursuant to this
13section. The Controller may establish a payment program for up
14to five years, with interest.

15(d) A local agency financial review committee shall be chaired
16by the Controller and both state and local government
17representatives selected by the Controller. The Controller shall
18allow at least two local government representatives to serve on the
19committee, selected as follows:

20(1) If the local agency is a city, representatives selected by the
21League of California Cities.

22(2) If the local agency is a county, representatives selected by
23the California State Association of Counties.

24(3) If the local agency is a special district, representatives
25selected by the California Special Districts Association.

26(e) The Controller shall use the services of a consultant that has
27extensive financial management and accounting experience with
28local agencies in the state to assist the local agency financial review
29committee in evaluating and assisting the local agency.

30(f) In consultation with the local agency requesting assistance,
31the local agency financial review committee shall provide a written
32report to the local agency, which may include its recommendations
33and an assessment of the local agency’s financial practices and
34conditions and internal controls related to its financial condition.

35(g) Assistance provided pursuant to this section shall not include
36direct financial payments or loans to local agencies that are not
37otherwise authorized by statute.

38(h) If the local agency notifies the Controller that it has initiated
39the neutral evaluation process pursuant to Article 5 (commencing
40with Section 53760) of Chapter 4 of Part 1 of Division 2 of Title
P9    15, the Controller shall suspend all activities under this section,
2unless the local agency requests that the activities be continued.
3The local agency shall be liable for costs under subdivision (c).

4

12487.  

For purposes of this article, “local agency” means a
5city, county, city and county, or special district.

6

SEC. 6.  

Section 53890 of the Government Code is amended
7to read:

8

53890.  

As used in this article, “local agency” means any city,
9county,begin delete anyend deletebegin insert specialend insert district, andbegin delete any community redevelopment
10agencyend delete
begin insert agency, created pursuant to Division 24 (commencing with
11Section 33000) of the Health and Safety Code,end insert
required to furnish
12financial reports pursuant to Sectionbegin delete 12463.1end deletebegin insert 12463end insert or 12463.3.

13

SEC. 7.  

Section 53895 of the Government Code is amended
14to read:

15

53895.  

(a) An officer of a local agencybegin insert to which Section
1653895.7 does not applyend insert
who fails or refuses to make and file his
17or her report within 20 days after receipt of a written notice of the
18failure from the Controller shall forfeit to the state:

19(1) begin deleteOne end deletebegin insertTwo end insertthousandbegin insert five hundredend insert dollarsbegin delete ($1,000),end deletebegin insert ($2,500),end insert
20 in the case of a local agency with total revenue, in the prior year,
21of less than one hundred thousand dollars ($100,000), as reported
22in the Controller’s annual financial reports.

23(2) begin deleteTwo end deletebegin insertFive end insertthousand five hundred dollarsbegin delete ($2,500)end deletebegin insert ($5,500)end insert
24 in the case of a local agency with total revenue, in the prior year,
25of at least one hundred thousand dollars ($100,000) but less than
26two hundred fifty thousand dollars ($250,000), as reported in the
27Controller’s annual financial reports.

28(3) begin deleteFive end deletebegin insertTen end insertthousand dollarsbegin delete ($5,000)end deletebegin insert ($10,000)end insert in the case of
29a local agency with total revenue, in the prior year, of at least two
30hundred fifty thousand dollars ($250,000), as reported in the
31Controller’s annual financial reports.

begin insert

32(b) If an officer of a local agency fails or refuses to make and
33file his or her report within 20 days after receipt of a written notice
34pursuant to subdivision (a) for two consecutive years, the forfeiture
35pursuant to paragraph (1), (2), or (3) of subdivision (a) shall be
36doubled.

end insert
begin insert

37(c) If an officer of a local agency fails or refuses to make and
38file his or her report within 20 days after receipt of a written notice
39pursuant to subdivision (a) for three or more consecutive years,
P10   1the forfeiture pursuant to paragraph (1), (2), or (3) of subdivision
2(a) shall be tripled.

end insert
begin insert

3(d) Notwithstanding any amount forfeited pursuant to
4subdivision (a), (b), or (c), the agency shall be required to file the
5report pursuant to Section 53891.

end insert
begin delete

6(b)

end delete

7begin insert(e)end insert (1) Upon the request of the Controller, the Attorney General
8shall prosecute an action for the forfeiture in the name of the people
9of the State of California.

10(2) Uponbegin delete aend delete satisfactory showing of goodbegin delete cause,end deletebegin insert cause toend insert the
11begin delete Controller may waiveend deletebegin insert Controller,end insert thebegin delete penalties for late filingend delete
12begin insert forfeitureend insert provided in thisbegin delete section.end deletebegin insert section shall not be imposed.end insert

13

SEC. 8.  

Section 53895.5 of the Government Code is repealed.

begin delete
14

53895.5.  

(a) An officer of a community redevelopment agency
15who fails or refuses to make and file his or her report within 20
16days after receipt of a written notice of the failure from the
17Controller shall forfeit to the state:

18(1) One thousand dollars ($1,000) in the case of a community
19redevelopment agency with total revenue, in the prior year, of less
20than one hundred thousand dollars ($100,000), as reported in the
21Controller’s annual financial reports.

22(2) Two thousand five hundred dollars ($2,500) in the case of
23a community redevelopment agency with total revenue, in the prior
24year, of at least one hundred thousand dollars ($100,000), but less
25than two hundred fifty thousand dollars ($250,000), as reported
26in the Controller’s annual financial reports.

27(3) Five thousand dollars ($5,000) in the case of a community
28redevelopment agency with total revenue, in the prior year, of at
29least two hundred fifty thousand dollars ($250,000), as reported
30in the Controller’s annual financial reports.

31(b) An officer of a community redevelopment agency who fails
32or refuses to make and file his or her report within 20 days after
33receipt of a written notice of the failure from the Controller in the
34second or more consecutive year shall forfeit to the state:

35(1) Two thousand dollars ($2,000) in the case of a community
36redevelopment agency with total revenue, in the prior year, of less
37than one hundred thousand dollars ($100,000), as reported in the
38Controller’s annual financial reports.

39(2) Five thousand dollars ($5,000) in the case of a community
40redevelopment agency with total revenue, in the prior year, of at
P11   1least one hundred thousand dollars ($100,000), but less than two
2hundred fifty thousand dollars ($250,000), as reported in the
3Controller’s annual financial reports.

4(3) Ten thousand dollars ($10,000) in the case of a community
5redevelopment agency with total revenue, in the prior year, of at
6least two hundred fifty thousand dollars ($250,000), as reported
7in the Controller’s annual financial reports.

8(c) In the case of a community redevelopment agency that fails
9or refuses to make and file its report within 20 days after receipt
10of a written notice of the failure from the Controller in the third
11or more consecutive year, the Controller shall conduct or cause to
12be conducted an independent financial audit report consistent with
13the requirements of Section 33080.1 of the Health and Safety Code.
14The community redevelopment agency shall reimburse the
15Controller for the cost of complying with this subdivision. The
16community redevelopment agency shall not use any of the funds
17in the Low and Moderate Income Housing Fund to reimburse the
18Controller.

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

22(2) Upon a satisfactory showing of good cause, the Controller
23may waive the penalties for late filing provided in this section.

24(e) A community redevelopment agency that makes a forfeiture
25or payment pursuant to this section shall still file the report required
26pursuant to Section 53891.

end delete
27

SEC. 9.  

Section 53895.7 of the Government Code is amended
28to read:

29

53895.7.  

(a) For the purpose of this section, “agency” means
30 any agency or entity formed pursuant to the Joint Exercise of
31Powers Act (Article 1 (commencing with Section 6500) of Chapter
325 of Division 7 of Title 1) that issues conduit revenue bonds.

33(b) An officer of an agency who fails or refuses to make and
34file his or her report pursuant to this article within 20 days after
35receipt of a written notice of the failure from the Controller shall
36forfeit to the state:

37(1) begin deleteOne end deletebegin insertTwo end insertthousandbegin insert five hundredend insert dollarsbegin delete ($1,000)end deletebegin insert ($2,500)end insert
38 in the case of an agency with total revenue, in the prior year, of
39less than one hundred thousand dollars ($100,000), as reported in
40the Controller’s annual financial reports.

P12   1(2) begin deleteTwo end deletebegin insertFive end insertthousand five hundred dollarsbegin delete ($2,500)end deletebegin insert ($5,500)end insert
2 in the case of an agency with total revenue, in the prior year, of at
3least one hundred thousand dollars ($100,000), but less than two
4hundred fifty thousand dollars ($250,000), as reported in the
5Controller’s annual financial reports.

6(3) begin deleteFive end deletebegin insertTen end insertthousand dollarsbegin delete ($5,000)end deletebegin insert ($10,000)end insert in the case of
7an agency with total revenue, in the prior year, of at least two
8hundred fifty thousand dollars ($250,000), as reported in the
9Controller’s annual financial reports.

10(c) An officer of an agency who fails or refuses to make and
11file his or her report within 20 days after receipt of a written notice
12of the failure from the Controller in the secondbegin delete or moreend delete consecutive
13year shall forfeit to the state:

14(1) begin deleteTwo end deletebegin insertFive end insertthousand dollarsbegin delete ($2,000)end deletebegin insert ($5,000)end insert in the case of
15an agency with total revenue, in the prior year, of less than one
16hundred thousand dollars ($100,000), as reported in the Controller’s
17annual financial reports.

18(2) begin deleteFive end deletebegin insertEleven end insertthousand dollarsbegin delete ($5,000)end deletebegin insert ($11,000)end insert in the case
19of an agency with total revenue, in the prior year, of at least one
20hundred thousand dollars ($100,000), but less than two hundred
21fifty thousand dollars ($250,000), as reported in the Controller’s
22annual financial reports.

23(3) begin deleteTen end deletebegin insertTwenty end insertthousand dollarsbegin delete ($10,000)end deletebegin insert ($20,000)end insert in the case
24of an agency with total revenue, in the prior year, of at least two
25hundred fifty thousand dollars ($250,000), as reported in the
26Controller’s annual financial reports.

27(d) In the case of an agency that fails or refuses to make and
28file its report within 20 days after receipt of a written notice of the
29failure from the Controllerbegin delete in the thirdend deletebegin insert for threeend insert or more
30consecutivebegin delete year,end deletebegin insert years,end insert thebegin insert forfeiture pursuant to paragraph (1),
31(2), or (3) of subdivision (b) shall be tripled. Theend insert
Controller shall
32conduct, or cause to be conducted, an independent financial audit
33report consistent with the requirements of Section 6505. The
34agency shall reimburse the Controller for the cost of complying
35with this subdivision.

36(e) (1) Upon the request of the Controller, the Attorney General
37shall prosecute an action for the forfeiture in the name of the people
38of the State of California.

P13   1(2) Upon a satisfactory showing of goodbegin delete cause,end deletebegin insert cause toend insert the
2begin delete Controller may waiveend deletebegin insert Controller,end insert thebegin delete penalties for late filingend delete
3begin insert forfeitureend insert provided in thisbegin delete section.end deletebegin insert section shall not be imposed.end insert

4(f) begin deleteAn agency that makes a forfeiture or payment end delete
5begin insertNotwithstanding any amount forfeited end insertpursuant tobegin delete this sectionend delete
6begin insert subdivision (a), (b), (c), or (d) the agencyend insert shallbegin delete stillend deletebegin insert be required
7toend insert
file the report required pursuant to Section 53891.



O

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