BILL ANALYSIS
AB 480
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Date of Hearing: April 21, 2009
ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS
Mary Hayashi, Chair
AB 480 (Tran) - As Amended: April 14, 2009
SUBJECT : Bond acts: auditing.
SUMMARY : Requires any state bond measure approved by the
voters on or after January 1, 2010, to include auditing
provisions with respect to the use of any bond money.
Specifically, this bill :
1)Authorizes the Bureau of State Audits (BSA) to conduct
periodic or quarterly audits to ensure that bond proceeds are
awarded in a timely manner and that recipients of bond moneys
use the funds in compliance with applicable provisions of law.
2)Requires reimbursement of costs associated with the audit from
bond proceeds.
EXISTING LAW
1)Contains, in the State General Obligation Bond Law, procedures
for use in authorizing the issuance and sale and providing for
the repayment of state general obligation bonds.
2)Requires any state general obligation bond measure to be
subject to the making, at least annual, of a specified report,
by the head of the lead state agency administering the bond
proceeds, to the Legislature and the Department of Finance.
FISCAL EFFECT : Unknown
COMMENTS :
Purpose of the bill . According to the author's office, "AB 480
is a simple bill stating that any state bond placed on a ballot
must include auditing provisions. This bill seeks to ensure
that California voters can remain confident that the bonds they
are authorizing the state to sell to generate revenue for a
specific project, are utilized for that project. This is a
common sense measure that will ensure the use of bond monies is
transparent and as intended."
AB 480
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Background . The California State Auditor is the State's
independent external auditor that provides independent,
nonpartisan, accurate, and timely assessments of California
government's financial and operational activities in compliance
with generally accepted government auditing standards. The
California State Auditor's Office reports its findings to the
legislature and recommends actions to improve government
operations.
In recent elections, voter-approved bond initiatives with
auditing provisions have largely been unfunded mandates. The
BSA receives federal funding for federally mandated audits and
state funding for state-mandated audits or through Joint
Legislative Audit Committee audits, but with limited funding,
the BSA can perform audits subject to available funding or by
prioritizing high-risk areas to audit.
Support . According to the California Taxpayer's Association,
this bill "will require greater accountability in how taxpayer
money. This bill would provide necessary oversight, giving
Californians more confidence that the bond money they have
authorized is indeed going for its intended use."
Prior Legislation . AB 1544 (McCarthy) of 2005 requires that any
state or local bond measure in this state that is placed on the
ballot for approval by the voters contain auditing provisions
with respect to the use of any bond money that would be spent
for the purposes of the bond measure. The bill died at the
Assembly Desk.
REGISTERED SUPPORT / OPPOSITION :
Support
California Taxpayer's Association
Opposition
None on file.
Analysis Prepared by : Joanna Gin / B. & P. / (916) 319-3301