BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 728


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          Date of Hearing:  April 29, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          728 (Hadley) - As Amended April 8, 2015


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY: 


          This bill requires state agencies to post their Financial  
          Integrity and State Manager's Accountability Act of 1983 (FISMA)  
          reports on their websites within five days of finalization.   









                                                                     AB 728


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          FISCAL EFFECT:


          Minor and absorbable costs to state agencies to post reports on  
          their websites.


          COMMENTS:


          1)Purpose and Background.  This bill requires state agencies to  
            post FISMA reports on their websites within five days of  
            finalization.  These reports, which are due by the end of each  
            odd-number calendar year, assess an agency's system of  
            internal accounting, administrative controls, and monitoring  
            practices. State agencies are currently required to submit  
            FISMA reports to the Legislature, State Auditor, Controller,  
            Treasurer, Attorney General, Governor, Director of Finance,  
            and State Library where they must be available for public  
            inspection. The web posting requirements in this bill are  
            intended to increase public access to these reports. According  
            to the author, this bill will encourage transparency and build  
            public trust. 



            While the website posting of these reports is not currently  
            required, the Department of Finance (DOF) issued a February  
            2013 audit memo that encourages agencies to post their FISMA  
            reports on their websites.  While some agencies have posted  
            these reports online, it appears as though many agencies have  
            not. 


          2)Previous Legislation.  AB 661 (Beth Gaines) of 2013 would have  
            required agencies to post FISMA reports on their websites  
            within five days of finalization.  Additionally, it would have  
            required the head of an agency to sign off on the reports  








                                                                     AB 728


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            under penalty of perjury and would have suspended without pay  
            agency heads who did not submit FISMA reports within 30 days  
            of their due dates.  AB 661 was held on this Committee's  
            Suspense File. 
          





          Analysis Prepared by:Jennifer Swenson / APPR. / (916)  
          319-2081