BILL ANALYSIS
AB 1625
Page 1
ASSEMBLY THIRD READING
AB 1625 (Klehs)
As Amended April 25, 2005
Majority vote
BUSINESS & PROFESSIONS 10-0APPROPRIATIONS 13-5
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|Ayes:|Negrete McLeod, Shirley |Ayes:|Chu, Bass, Berg, |
| |Horton, Bass, Frommer, | |Calderon, Mullin, |
| |Koretz, Maze, Nation, | |Karnette, Klehs, Leno, |
| |Tran, Vargas, Yee | |Nation, Oropeza, |
| | | |Ridley-Thomas, Saldana, |
| | | |Yee |
| | | | |
|-----+--------------------------+-----+--------------------------|
| | |Nays:|Sharon Runner, Emmerson, |
| | | |Haynes, Nakanishi, |
| | | |Walters |
| | | | |
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SUMMARY : Requires every written state agency report to the
Legislature to be signed under penalty of perjury by the head of
the agency that the contents of the report are true, accurate,
and complete to the best of his or her knowledge. Limits the
application of these provisions to individuals appointed by the
Governor and confirmed by the Senate, and the executive officers
of the Franchise Tax Board, and Board of Equalization.
EXISTING LAW establishes numerous requirements for state
agencies to prepare and submit to the Legislature, written
reports on various subject matters of interest to lawmakers.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, potential minor, absorbable costs to the Attorney
General, and potential nonreimbursable costs to local
prosecutors for investigation and prosecution of alleged
violations. Further potential, minor, costs to the General Fund
for incarceration resulting from a perjury conviction, which
will be punishable by a prison term of two, three, or four
years.
COMMENTS : According to the author, "The purpose of having
reports be signed under penalty of perjury is to ensure that the
AB 1625
Page 2
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 requiring
CEOs 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."
This bill presumably will enhance the accuracy of important
information provided to the Legislature. For example, in
December 2004, the State Auditor released its report "Department
of Transportation: Various Factors Increased Its Cost Estimates
for Toll Bridge Retrofits, and Its Program Management Needs
Improving," which identified numerous issues associated with its
bridge retrofit program and the lack of complete reporting of
the the cost overruns related to the East Span of the San
Francisco Oakland Bay Bridge project. The State Auditor's
report stated:
Although state law requires Caltrans to periodically
report the program's status and notify the Legislature
of program cost overruns, Caltrans did not report cost
overruns it should have known of until they were
staggering.
With the sole bid for the signature span's
superstructure expiring on September 30, 2004, Caltrans
gave the Legislature about six weeks to develop a
funding solution to the $3.2 billion cost overrun.
This bill would establish potential criminal penalties for
failure to provide accurate information in a state agency report
to the Legislature. The penalty for perjury is punishable by up
to four years in state prison.
Analysis Prepared by : Ross Warren / B. & P. / (916) 319-3301
FN: 0010242