BILL ANALYSIS
AB 1993
Page 1
ASSEMBLY THIRD READING
AB 1993 (Strickland)
As Amended May 20, 2010
Majority vote
BUSINESS & PROFESSIONS 11-0 JUDICIARY 9-0
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|Ayes:|Hayashi, Emmerson, |Ayes:|Feuer, Tran, Brownley, |
| |Conway, Eng, | |Evans, |
| |Hernandez, Hill, Ma, | |Hagman, Knight, Swanson, |
| |Nava, Niello, | |Monning, |
| |Ruskin, Smyth | |Nava |
|-----+--------------------------+-----+--------------------------|
| | | | |
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APPROPRIATIONS 16-0
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|Ayes:|Fuentes, Conway, Hill, | | |
| |Bradford, | | |
| |Charles Calderon, Coto, | | |
| |Davis, Hall, | | |
| |Harkey, Miller, Nielsen, | | |
| |Norby, | | |
| |Skinner, Solorio, | | |
| |Torlakson, Torrico | | |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Requires written reports submitted to the Legislature,
a member of the Legislature, or any state legislative or
executive body to include a signed statement by the head of the
entity declaring that the factual contents of the report are
true. Specifically, this bill :
1)Requires every written report submitted to the Legislature, a
member of the Legislature, or any state legislative or
executive body to include a signed statement by the head of
the entity declaring that the factual contents are true,
accurate, and complete to the best of his or her knowledge.
2)States that the provisions of this bill apply to the head of
every entity submitting a written report, including, but not
AB 1993
Page 2
limited to, elected state officials, any official whose duties
are prescribed by the California Constitution, the executive
officers of the Franchise Tax Board and Board of Equalization,
and the Administrative Director of the Courts.
3)States that the declaration in the signed statement as to the
truth, accuracy, and completeness of the factual contents of
the written report shall not apply to any predictions,
forecasts, recommendations, or opinions contained in the
report.
4)Defines "written report" to be either:
a) A document required by statute to be prepared and
submitted to the Legislature, a member of the Legislature,
or a committee of the Legislature; or,
b) A document, summary, or statement requested by a member
of the Legislature.
EXISTING LAW establishes numerous requirements for state and
local government agencies to prepare and submit to the
Legislature, the Governor, and other governmental entities,
written reports on various subject matters of interest to
policymakers and regulatory entities.
FISCAL EFFECT : According to the Assembly Appropriations
Committee analysis, costs associated with this legislation
should be minor and absorbable within existing resources.
COMMENTS : According to the author's office, "The purpose of
this bill is to ensure that the Legislature, the Governor, and
the State Controller's Office receive accurate and trustworthy
information, so that they can be effective in their
decision-making.
"This bill will bring state agency certification in line with
what private companies are already required to do by federal law
- remain accountable to their shareholders in providing accurate
financial information. California taxpayers are the
shareholders in state and local entities, and they deserve the
same accountability from the officials appointed to manage
public funds."
This bill is similar to sections of the Sarbanes-Oxley Act of
AB 1993
Page 3
2002, which requires Chief Executive Officers to certify financial
reports to company shareholders under penalty of perjury.
According to the author, "Congress passed the Sarbanes-Oxley Act
in response to financial scandals of the early 2000's (e.g.,
Enron, WorldCom, etc.).
"Several years ago, during California's Joint Legislative Audit
Committee hearings that reviewed the Bay Bridge project, it was
found that CalTrans and other agency heads withheld information or
misrepresented vital facts in their reports to the Legislature.
Under California law, the officials had no liability for their
actions. Other types of public reports, including the Annual Road
Report and the Annual Street Report, are already filed under
certification and penalty of perjury. There should be consistency
in the certification requirement for all state agencies."
Analysis Prepared by : Joanna Gin / B.,P. & C.P. / (916)
319-3301
FN: 0004434