BILL NUMBER: AB 276 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 4, 2011
INTRODUCED BY Assembly Member Alejo
FEBRUARY 7, 2011
An act to amend Sections 12463, 53890 and 53895,
53890, and 53895 of, and to repeal Sections
53892.1, 53895.5, and 53895.7 of, the Government Code, relating to
local government.
LEGISLATIVE COUNSEL'S DIGEST
AB 276, as amended, Alejo. Local government: financial reports.
(1) Existing law requires the officer of each local agency, who
has charge of the financial records of the agency, to furnish to the
Controller a report of all the financial transactions of the local
agency during the next preceding fiscal year within 90 days of the
close of each fiscal year, as specified. Existing law defines local
agency, for purposes of these financial reports to mean any city,
county, district, and specified community redevelopment agencies.
This bill would also include within the definition of local agency
any joint powers agency, formed pursuant to the Joint Exercise of
Powers Act, that issues conduit revenue bonds, and would require
these joint powers agencies to furnish the Controller with the
required financial reports.
(2) Existing law provides that an officer of a local agency who
fails or refuses to make and file his or her report within 20 days
after receipt of a written notice of the failure from the Controller
forfeits to the state $1,000 in the case of a local agency with total
revenue, in the prior year, of less than $100,000; $2,500 in the
case of a local agency with total revenue, in the prior year, of at
least $100,000 but less than $250,000; and $5,000 in the case of a
local agency with total revenue in the prior year of at least
$250,000. Existing law raises these amounts in the case of a
community redevelopment agency, and a joint powers agency that issues
conduit revenue bonds in the second and third consecutive year.
This bill would raise the forfeiture amounts for all local
agencies to $2,500 in the case of a local agency with total revenue,
in the prior year, of less than $100,000; $5,000 in the case of a
local agency with total revenue, in the prior year, of at least
$100,000 but less than $250,000; and $10,000 in the case of a local
agency with total revenue, in the prior year, of at least $250,000.
The bill would double these fines if the agency fails to submit the
report to the Controller for 2 consecutive years, and would triple
the fines if the agency fails to submit the report to the Controller
for 3 consecutive years. The bill would also require the Controller
to conduct an audit, as specified, of the local agency if the local
agency fails to provide the financial reports for 3 consecutive
years.
(3) Existing law requires the Superintendent of Public Instruction
to make available to the Controller, on an as-needed basis, data and
other matters required to permit the compilation of the financial
transactions of school districts by the Controller.
This bill would repeal this provision.
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 12463 of the Government Code is amended to
read:
12463. (a) The Controller shall compile and publish reports of
the financial transactions of each county, city, special district,
and joint powers agency formed pursuant to the Joint Exercise of
Powers Act (Article 1 (commencing with Section 6500) of Chapter 5 of
Division 7 of Title 1) that issues conduit revenue bonds,
respectively, within this state, together with any other matter he or
she deems of public interest. The reports shall include the
appropriations limits and the total annual appropriations subject to
limitation of the counties, cities, and special districts. The
reports to the Controller shall be made in the time, form, and manner
prescribed by the Controller.
(b) Effective January 1, 2005, the Controller shall compile and
publish reports of the financial transactions of each county, city,
and special district pursuant to subdivision (a) on or before August
1, September 1, and October 1 respectively, of each year following
the end of the annual reporting period. The Controller shall make
data collected pursuant to this subdivision available upon request to
the Legislature and its agents, on or before April 1 of each year.
(c) As used in this section, "special district" means any of the
following:
(A)
(1) A special district as defined in Section 95 of the
Revenue and Taxation Code.
(B)
(2) A commission provided for by a joint powers
agreement pursuant to Chapter 5 (commencing with 6500) of Division 7
of Title 1.
(C)
(3) A nonprofit corporation that is any of the
following:
(i)
(A) Was formed in accordance with the provisions of a
joint powers agreement to carry out functions specified in the
agreement.
(ii)
(B) Issued bonds, the interest on which is exempt from
federal income taxes, for the purpose of purchasing land as a site
for, or purchasing or constructing, a building, stadium, or other
facility, that is subject to a lease or agreement with a local public
entity.
(iii)
(C) Is wholly owned by a public agency.
SEC. 2. Section 53890 of the Government Code is amended to read:
53890. As used in this article, "local agency" means any city,
county, any district, any community redevelopment agency required to
furnish financial reports pursuant to Section 12463.1 or 12463.3, and
a joint powers agency formed pursuant to the Joint Exercise of
Powers Act (Article 1 (commencing with Section 6500) of Chapter 5 of
Division 7 of Title 1) that issues conduit revenue bonds.
SEC. 3. Section 53892.1 of the Government Code is repealed.
SEC. 4. Section 53895 of the Government Code is amended to read:
53895. (a) An officer of a local agency who fails or refuses to
make and file his or her report within 20 days after receipt of a
written notice of the failure from the Controller shall forfeit to
the state:
(1) Two thousand five hundred dollars ($2,500), in the case of a
local agency with total revenue, in the prior year, of less than one
hundred thousand dollars ($100,000), as reported in the Controller's
annual financial reports.
(2) Five thousand dollars ($5,000), in the case of a local agency
with total revenue, in the prior year, of at least one hundred
thousand dollars ($100,000) but less than two hundred fifty thousand
dollars ($250,000), as reported in the Controller's annual financial
reports.
(3) Ten thousand dollars ($10,000), in the case of a local agency
with total revenue, in the prior year, of at least two hundred fifty
thousand dollars ($250,000), as reported in the Controller's annual
financial reports.
(b) (1) Upon the request of the Controller, the Attorney General
shall prosecute an action for the forfeiture in the name of the
people of the State of California.
(2) Upon a satisfactory showing of good cause, the Controller may
waive the penalties for late filing provided in this section.
(c) If an officer of a local agency fails or refuses to make and
file his or her report within 20 days after receipt of a written
notice pursuant to subdivision (a) for two consecutive years, the
forfeiture or fine assessed pursuant to paragraphs (1), (2), and (3)
of subdivision (a) in the second year shall be doubled.
(d) (1) If an officer of a local agency fails or refuses to make
and file his or her report within 20 days after receipt of a written
notice pursuant to subdivision (a) for three consecutive years, the
forfeiture or fine assessed pursuant to paragraphs (1), (2), and (3)
of subdivision (a) in the third year shall be tripled. The Controller
shall also conduct or cause to be conducted an independent financial
audit report. In the case of a community redevelopment agency, the
audit report shall be consistent with the requirements of Section
33080.1 of the Health and Safety Code, and in the case of a joint
powers agency, the audit report shall be consistent with Section
6505. The agency shall reimburse the Controller for the cost of
complying with this subdivision.
(2) A redevelopment agency shall not use any of the funds in the
Low and Moderate Income Housing Fund to fund any forfeiture or fine
assessed pursuant to this section.
(e) An agency that makes a forfeiture or payment pursuant to this
section shall still file the report required pursuant to Section
53891.
(f) The Legislature finds and declares all of the following:
(1) Conduit financing providers annually provide billions of
dollars of tax-exempt financing to the private sector at a cost to
the state caused by a lack of tax revenues on the interest earned on
these investments, for projects that are intended to fulfill a public
benefit purpose, including, but not limited to, educational
facilities, pollution control facilities, health care facilities,
industrial development, and affordable housing.
(2) Testimony and information provided to the Senate Committee on
Local Government at its February 6, 2008, informational hearing on
"Conduit Financing: Transparency and Accountability" demonstrated the
need to provide for greater public awareness of, and participation
in, the activities of conduit financing providers.
(3) Statutory ambiguities and discrepancies make it difficult to
determine whether all conduit financing providers are complying with
audit, annual financial reporting, and other public accountability
requirements.
(4) It is the intent of the Legislature in enacting these
provisions to ensure that all conduit financing providers make their
activities sufficiently transparent and accountable to the public by
extending sufficient opportunities for participation in public
meetings and providing useful information about their financial
activities.
SEC. 5. Section 53895.5 of the Government Code is repealed.
SEC. 6. Section 53895.7 of the Government Code is repealed.