BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1625
                                                                  Page  1

          Date of Hearing:   May 11, 2005

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                   Judy Chu, Chair

                    AB 1625 (Klehs) - As Amended:  April 25, 2005 

          Policy Committee:                              Business and  
          Professions  Vote:                            10-0

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill requires every written report submitted to the  
          Legislature by any state agency, board or commission to include  
          a statement signed by the head of the agency or director of the  
          board or commission, under penalty of perjury, that the contents  
          of the report are true, accurate, and complete to the best of  
          their knowledge.  This requirement would apply only to  
          individuals appointed by the Governor and confirmed by the  
          Senate, and to the executive officers of the Franchise Tax Board  
          and the Board of Equalization.  

           FISCAL EFFECT  

          1)Potential, likely minor, absorbable costs to the Attorney  
            General and potential nonreimbursable costs to local  
            prosecutors for investigation and prosecution of alleged  
            violations of the above. 

          2)Potential, likely minor, GF costs for incarceration following  
            a perjury conviction, which is punishable by a prison term of  
            2, 3, or 4 years.

          COMMENTS  

           Purpose  . According to the author's office, "The purpose of  
          having reports be signed under penalty of perjury is to ensure  
          that the appropriate people are receiving the most accurate  
          information to be effective in making decisions.  In response to  
          the financial scandals of the early 2000s, Congress passed the  
          Sarbanes-Oxley Act of 2002.  The components of this federal law  
          include affecting a business' financial services and require  








                                                                  AB 1625
                                                                  Page  2

          CEO's to sign under penalty of perjury when reporting to the  
          company's shareholders.  This bill, if passed into law, would  
          ensure that the State Legislature would receive the most  
          accurate information which is important to legislate  
          effectively."

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081