BILL NUMBER: AB 2521	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 17, 2010
	AMENDED IN ASSEMBLY  MAY 28, 2010
	AMENDED IN ASSEMBLY  APRIL 26, 2010

INTRODUCED BY   Assembly Member Torrico

                        FEBRUARY 19, 2010

   An act to amend Section 77206 of the Government Code, relating to
courts.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2521, as amended, Torrico. Courts: budget and fiscal
management.
   Existing law authorizes the Judicial Council to regulate the
budget and fiscal management of the trial courts, and requires the
Judicial Council to adopt regulations for recordkeeping and
accounting by the courts ensuring that all revenues and expenditures
relating to court operations are known. At the request of the
Legislature, the Controller may perform and publish financial and
fiscal compliance audits of the reports of court revenues and
expenditures. The Controller is required to report the results of
these audits to the Legislature and the Judicial Council, and the
Judicial Council or its representative may perform audits and reviews
of all court financial records wherever they may be located.
   This bill would, instead, authorize the Judicial Council or its
representatives to inspect, review, and perform comprehensive
oversight and analysis of court financial records wherever they may
be located, and to investigate allegations of financial impropriety
or mismanagement. The bill also would require the Controller, on or
before December 15, 2012, to establish a pilot program to audit 6
trial courts, as specified, and, on or before December 15, 2013, to
commence an audit of the trial courts, including a review of all
funds within the trial court's control. The bill would require the
audit of each trial court at least once every 4 years. The bill would
require the Controller to compile the trial court audit findings and
report the results of these audits to the Legislature, the Judicial
Council, and the Department of Finance no later than April 1 of each
year. The bill would provide that the audit be paid for from funds of
the local trial court being audited.
   This bill also would require the Controller, on or before December
15, 2013, and biennially thereafter, to perform an audit of the
Administrative Office of the Courts, including a review of all funds
under the jurisdiction and control of the Administrative Office of
the Courts. The Controller would be required to provide a copy of the
final audit report to the Legislature, the Judicial Council, and the
Department of Finance upon issuance. The bill would provide that the
costs of the audit be reimbursed by the Administrative Office of the
Courts.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 77206 of the Government Code is amended to
read:
   77206.  (a) Notwithstanding any other law, the Judicial Council
may regulate the budget and fiscal management of the trial courts.
The Judicial Council, in consultation with the Controller, shall
maintain appropriate regulations for recordkeeping and accounting by
the courts. The Judicial Council shall seek to ensure, by these
provisions, both of the following:
   (1) The fiscal affairs of the trial courts are managed
efficiently, effectively, and responsibly.
   (2) All moneys collected by the courts, including filing fees,
fines, forfeitures, and penalties, and all revenues and expenditures
relating to court operations are known.
   The Judicial Council may delegate their authority under this
section, when appropriate, to the Administrative Director of the
Courts.
   (b) Regulations, rules, and reporting requirements adopted
pursuant to this chapter shall be exempt from review and approval or
other processing by the Office of Administrative Law as provided for
in Chapter 3.5 (commencing with Section 11340) of Part 1 of Division
3 of Title 2.
   (c) The Controller, at the request of the Legislature, may perform
and publish financial and fiscal compliance audits of the reports of
court revenues and expenditures. The Controller shall report the
results of these audits to the Legislature and the Judicial Council.
   (d) The Judicial Council shall provide for the transmission of
summary information concerning court revenues and expenditures to the
Controller.
   (e) The Judicial Council shall adopt rules to provide for
reasonable public access to budget allocation and expenditure
information at the state and local levels.
   (f) The Judicial Council shall adopt rules ensuring that, upon
written request, the trial courts provide, in a timely manner,
information relating to the administration of the courts, including
financial information and other information that affects the wages,
hours, and working conditions of trial court employees.
   (g) The Judicial Council or its representatives may do any of the
following:
   (1) Inspect, review, and perform comprehensive oversight and
analysis of court financial records wherever they may be located.
   (2) Investigate allegations of financial impropriety or
mismanagement.
   The authority granted pursuant to this subdivision shall not
substitute for, or conflict with, the authority of the Controller to
conduct financial audits pursuant to subdivisions (h) and (i).
   (h) (1) On or before December 15, 2012, the Controller shall
establish a pilot program to audit six trial courts. The Controller
shall select the trial courts using the following criteria:
   (A) Two trial courts selected from counties with a population of
200,000 or less.
   (B) Two trial courts selected from counties with a population
greater than 200,000 and less than 750,000.
   (C) Two trial courts selected from counties with a population of
750,000 or greater.
   The audits shall be performed in accordance with generally
accepted government auditing standards and shall include a review of
the revenues, expenditures, and fund balances of the Trial Court
Trust Fund, the Judicial Administration Efficiency and Modernization
Fund, the Trial Court Improvement Fund, the Court Interpreters' Fund,
the Family Law Trust Fund, and the Mental Health Services Fund, as
well as any federal funds and grants, and any other funds within the
trial court's control. The audits required by this section shall be
in addition to any audit regularly conducted by the Controller.
   (2) Notwithstanding paragraph (1), the Controller shall, on or
before December 15, 2013, commence an audit of the trial courts in
the manner as he or she deems appropriate, so long as every trial
court is audited in the manner prescribed by this section at least
once every four years. The audits shall be performed in accordance
with generally accepted government auditing standards and shall
include  a review of the   an audit of a trial
court's compliance with governing statutes, rules, and regulations
relating to the  revenues, expenditures, and fund balances of
 all funds, including, but not limited to,  the Trial Court
Trust Fund, the Judicial Administration Efficiency and Modernization
Fund, the Trial Court Improvement Fund, the Court Interpreters' Fund,
the Family Law Trust Fund, and the Mental Health Services Fund, as
well as any federal funds and grants, and any other funds within the
trial court's control. The audits required by this paragraph shall be
in addition to any audit regularly conducted by the Controller.
   (3) Notwithstanding Section 10231.5, the Controller shall compile
the trial court audit findings and report the results of these audits
to the Legislature, the Judicial Council, and the Department of
Finance no later than April 1 of each year.
   (4) The cost of the audit conducted pursuant to this subdivision
shall be paid from funds of the local trial court being audited.
   (i) (1) On or before December 15, 2013, and biennially thereafter,
the Controller shall perform an audit of the Administrative Office
of the Courts in accordance with generally accepted government
auditing standards  . The audit shall include a review
  and shall perform an audit of the Administrative
Office of the Court's compliance with governing statutes, rules, and
regulations relating to the revenues, expenditures, and fund balances
 of all funds under the jurisdiction and control of the
Administrative Office of the Courts, including, but not limited to,
the Motor Vehicle Account in the State Transportation Fund, the Trial
Court Trust Fund, the Judicial Administration Efficiency and
Modernization Fund, the Trial Court Improvement Fund, the Court
Interpreters' Fund, the Federal Trust Fund, the Family Law Trust
Fund, the State Court Facilities Construction Fund, the Appellate
Court Trust Fund, the Court Facilities Trust Fund, the Mental Health
Services Fund, the Immediate and Critical Needs Account of the State
Court Facilities Construction Fund, and the Judicial Branch Workers'
Compensation Fund, as well as  federal  grants, and any
other funds within the control of the Judicial Council and the
Administrative Office of the Courts.
   (2) Notwithstanding Section 10231.5, the Controller shall provide
a copy of the final audit report of the Administrative Office of the
Courts to the Legislature, the Judicial Council, and the Department
of Finance upon issuance.
   (3) Any costs incurred by the Controller pursuant to this
subdivision shall be reimbursed by the Administrative Office of the
Courts.
   (j) A report submitted pursuant to subdivision (h) or (i) shall be
submitted in compliance with Section 9795.