BILL ANALYSIS �
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UNFINISHED BUSINESS
Bill No: SB 801
Author: Roth (D)
Amended: 6/26/13
Vote: 21
SENATE PUBLIC SAFETY COMMITTEE : 7-0, 4/30/13
AYES: Hancock, Anderson, Block, De Le�n, Knight, Liu, Steinberg
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SENATE FLOOR : 36-0, 5/20/13 (Consent)
AYES: Anderson, Beall, Berryhill, Block, Calderon, Cannella,
Corbett, Correa, De Le�n, DeSaulnier, Evans, Fuller, Gaines,
Galgiani, Hancock, Hernandez, Hill, Hueso, Huff, Jackson,
Knight, Leno, Lieu, Liu, Monning, Nielsen, Padilla, Pavley,
Roth, Steinberg, Torres, Walters, Wolk, Wright, Wyland, Yee
NO VOTE RECORDED: Emmerson, Lara, Price, Vacancy
ASSEMBLY FLOOR : 78-0, 8/22/13 (Consent) - See last page for
vote
SUBJECT : Department of Finance: reports: crimes
SOURCE : Author
DIGEST : This bill directs the Department of Finance (DOF) to
annually require each department head, or designee, responsible
for auditing the accounts of a state entity, as specified, to
certify under penalty of perjury that the budgeting and
accounting information provided to the DOF reconciles to the
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year-end finance reports submitted to the State Controller's
Office (Controller). This bill also subjects an individual who
willfully makes and subscribes a certification that he/she knows
to be false to the penalties for perjury established in the
Penal Code.
Assembly Amendments make technical and clarifying changes.
ANALYSIS :
Existing law:
1. Provides that there is in the State Government a DOF.
2. Provides that the DOF has general powers of supervision over
all matters concerning the financial and business policies of
the state and whenever it deems it necessary, or at the
instance of the Governor, shall institute or cause the
institution of such investigations and proceedings as it
deems proper to conserve the rights and interests of the
state.
3. Requires that the Director of DOF shall be responsible for
coordinating state agency internal audits and identifying
when agencies are required to comply with federally mandated
audits. The Director of DOF, in coordinating the internal
auditors of state agencies, shall ensure that these auditors
utilize the "Standards for the Professional Practices of
Internal Auditing."
4. Requires state agencies to "prepare and maintain financial
and accounting data for inclusion in the Governor's Budget,
Budget Act and related documents, and the budgetary-legal
basis annual report (as specified), according to the methods
and bases provided in regulations, budget letters, and other
directives of the DOF. . . . The DOF shall implement
procedures, that facilitate annual reconciliations of General
Fund and special fund balances between those provided by a
state agency to the DOF and to the State Controller. In the
Governor's Budget documents, appendices thereof, or other
directives, the DOF shall ensure that adjustments of
prior-year fund balances and accounting methods are clearly
noted in some fashion in order to ensure the closest possible
comparability of these documents with past and future
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budgetary-legal basis annual reports."
5. Provides that every person is guilty of a misdemeanor who:
A. Fails or neglects to make, verify and file with the
DOF any report required by this part.
B. Fails or neglects to follow the directions of the DOF
in keeping the accounts of his office.
C. Refuses to permit the examination of or access to the
records, files, books, accounts, papers, documents or
cash drawers or cash of his office by a representative
of the DOF or in any way interferes with such
examination.
6. Provides that "(e)very officer whose duty it is to audit and
allow the accounts of other state, county, or city officers
shall, before allowing such accounts, require each of such
officers to make and file with him/her an affidavit or
certificate under penalty of perjury that he has not violated
any of the provisions of this article, and any individual who
willfully makes and subscribes such certificate to an account
which he/she knows to be false as to any material matter
shall be guilty of a felony and upon conviction thereof shall
be subject to the penalties prescribed for perjury by the
Penal Code of this state."
7. Provides that perjury is a felony punishable by imprisonment
for two, three or four years.
This bill directs DOF to annually require each department head,
or designee, responsible for auditing the accounts of a state
entity, as specified, to certify under penalty of perjury that
the budgeting and accounting information provided to the DOF
reconciles to the year-end finance reports submitted to the
Controller. This bill also subjects an individual who willfully
makes and subscribes a certification that he/she knows to be
false to the penalties for perjury established in the Penal
Code.
Comments
According to the author's office, this bill intends to
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improve accountability with regard to state agencies'
finances. The author's office states that the recent
underreporting of funds by the Department of Parks and
Recreation and the Department of Forestry and Fire Protection
underscores the need to ensure that state agencies have
appropriate controls in place to provide accurate financial
information to the DOF and the Controller.
Current DOF protocols require department heads or designees
to certify under penalty of perjury that past and prior year
budgeting and accounting information provided to DOF
reconciles to year-end financial reports submitted to the
Controller. The Controller also requires year-end financial
reports to be certified under penalty of perjury. While
Government Code Section 1094 requires certification under
penalty of perjury for specified government accounting
audits, this bill explicitly clarifies that DOF has the
statutory authority to require these certifications.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
ASSEMBLY FLOOR : 78-0, 8/22/13
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom,
Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian
Calderon, Campos, Chau, Ch�vez, Chesbro, Conway, Cooley,
Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox, Frazier,
Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gorell,
Gray, Grove, Hagman, Hall, Harkey, Roger Hern�ndez, Holden,
Jones, Jones-Sawyer, Levine, Linder, Logue, Lowenthal,
Maienschein, Mansoor, Medina, Melendez, Mitchell, Morrell,
Mullin, Muratsuchi, Nazarian, Nestande, Olsen, Pan, Patterson,
Perea, V. Manuel P�rez, Quirk, Quirk-Silva, Rendon, Salas,
Skinner, Stone, Ting, Wagner, Waldron, Weber, Wieckowski,
Wilk, Williams, Yamada, John A. P�rez
NO VOTE RECORDED: Vacancy, Vacancy
JG:d 8/23/13 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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