AB 1840,
as amended, Gipson. begin deleteCalifornia Transportation Financing Authority. end deletebegin insertCalifornia State Auditor.end insert
Existing law establishes the California State Auditor’s Office, headed by the appointed California State Auditor and under the direction of the Milton Marks “Little Hoover” Commission on California State Government Organization and Economy, with specified duties that include, among others, conducting financial and performance audits as directed by statute. Existing law also establishes the State Audit Fund as a continuously appropriated fund for the expenses of the office. Existing law authorizes the auditor to establish a high-risk local government agency audit program for the purpose of identifying, auditing, and issuing reports on any local government agency he or she identifies as at high risk for, among others, fraud and abuse. Existing law requires the office to be responsible for the state costs associated with the program and further requires an audit conducted pursuant to the program to be approved by the Joint Legislative Audit Committee.
end insertbegin insertThis bill would further require the auditor to obtain approval from the Joint Legislative Audit Committee to conduct onsite assessments or any work at a local government agency.
end insertThe California Transportation Financing Authority Act creates the California Transportation Financing Authority, with specified powers and duties relative to issuance of bonds to fund transportation projects to be backed, in whole or in part, by various revenue streams of transportation funds, and toll revenues under certain conditions, in order to increase the construction of new capacity or improvements for the state transportation system consistent with specified goals. Existing law provides that bonds issued under these provisions are free from taxation.
end deleteThis bill would make a nonsubstantive change to this provision.
end deleteVote: majority.
Appropriation: no.
Fiscal committee: begin deleteno end deletebegin insertyesend insert.
State-mandated local program: no.
The people of the State of California do enact as follows:
begin insertSection 8546.10 of the end insertbegin insertGovernment Codeend insertbegin insert is
2amended to read:end insert
(a) The California State Auditor may establish a
4high-risk local government agency audit program for the purpose
5of identifying, auditing, and issuing reports on any local
6government agency, including, but not limited to, any city, county,
7special district, or any publicly created entity, whether created by
8the California Constitution or otherwise, that the California State
9Auditor identifies as being at high risk for the potential of waste,
10fraud, abuse, or mismanagement or that has major challenges
11associated with its economy, efficiency, or effectiveness.
12(b) In addition to identifying a local government agency as high
13risk on the basis of weaknesses identified in audit and investigative
14reports produced by the office, the California State Auditor may
15
consult with the Controller, Attorney General, and other state
16agencies that have oversight responsibilities over any local
17government agency, in identifying local governments that are at
18high risk.
19(c) The California State Auditor’s Office shall be responsible
20for the state costs associated with the high-risk local government
21agency audit program, shall conduct the program as funds permit,
22begin delete andend delete shall only conduct the program to the extent that it does not
23interfere with duties related to mandated audits and requests from
24the Joint Legislative Auditbegin delete Committee.end deletebegin insert Committee, and shall obtain
25approval from the Joint Legislative Audit Committee to conduct
26any work at a local government agency.end insert
P3 1(d) (1) The California State Auditor shall notify the Joint
2Legislative Audit Committee whenever he or she identifies a local
3government as at high risk.
4(2) The California State Auditor shall provide the Joint
5Legislative Audit Committee, at a public hearing of the committee,
6an annual update of all audits in progress.
7(3) If a local government agency has taken significant corrective
8measures for deficiencies identified by the California State Auditor,
9that agency shall be removed from the
high-risk local government
10agency audit program.
11(e) Notwithstanding the requirements of Section 10231.5, if the
12California State Auditor establishes the program provided for in
13this section and the California State Auditor determines that a local
14agency is at high risk, the California State Auditor shall issue audit
15reports at least once every two years with recommendations for
16improvement in such a local government so identified.
17(f) begin delete Auditsend deletebegin insertAudits, onsite assessments, and any other work at a
18local government agency end insertconducted pursuant to this section shall
19be approved by the Joint Legislative Audit Committee.
Section 64122 of the Government Code is
21amended to read:
Any bonds issued under this division, their transfer,
23and the income therefrom shall at all times be free from taxation
24of any kind by the state and by all political subdivisions in the
25state.
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