BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 187
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 187 (Lara and Smyth)
          As Amended  August 15, 2011
          Majority vote
           
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          |ASSEMBLY:  |(74-1|(June 1, 2011)  |SENATE: |28-8 |(August 31,    |
          |           |)    |                |        |     |2011)          |
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           Original Committee Reference:    A. & A. R.  

           SUMMARY  :  This bill would, subject to specified conditions, 
          authorize the State Auditor to establish a high-risk local 
          government agency audit program to identify, audit, and issue 
          reports on any local government agency, including any city, 
          county, or special district, or any publicly created entity that 
          the State Auditor identifies as being at high risk for the 
          potential of waste, fraud, abuse, or mismanagement or that has 
          major challenges associated with its economy, efficiency, or 
          effectiveness.  

          The Senate amendments:  

          1)Delete the requirement that the State Auditor notify the Joint 
            Legislative Audit Committee (JLAC) at the start of any audit 
            conducted pursuant to the high-risk local government agency 
            audit program.

          2)Delete language limiting this program "to the extent the 
            Legislature appropriates funds sufficient to cover the state 
            cost of those audits."

          3)Add a requirement that audits conducted pursuant to this 
            program must be approved by the Joint Legislative Audit 
            Committee. 
           
          EXISTING LAW  requires the State Auditor to conduct an audit of a 
          state or local governmental entity that is requested by the 
          JLAC, to the extent that funding is available.

           AS PASSED BY THE ASSEMBLY  , this bill was substantially similar 
          to the version passed by the Senate. 
           
          FISCAL EFFECT :  According to the Senate Appropriations 








                                                                  AB 187
                                                                  Page  2

          Committee, unknown, likely major annual costs.
           
          COMMENTS  :  The language limiting the program "to the extent the 
          Legislature appropriates funds" may have conflicted with Joint 
          Rule 37.4 (b) which specifies that "any bill requiring action by 
          the Bureau of State Audits shall contain an appropriation for 
          the cost of any study or audit."  To maintain clarity over the 
          budgetary responsibility, that provision was replaced with one 
          stating that the Joint Legislative Audit Committee must approve 
          audits pursuant to this program.
           

          Analysis Prepared by  :    Nancy Chaires /A. & A. R./ (916) 
          319-3600

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