BILL NUMBER: SB 186	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senators Kehoe and DeSaulnier
   (Principal coauthor: Assembly Member Alejo)
   (Coauthor: Assembly Member Lara)

                        FEBRUARY 7, 2011

   An act to amend Section 12464 of the Government Code, relating to
the Controller.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 186, as introduced, Kehoe. The Controller.
   Existing law authorizes the Controller to appoint a qualified
accountant to make an investigation and to obtain the information
required for the annual report of financial transactions.
   This bill would authorize the Controller to exercise discretionary
authority to perform an audit or investigation of any county, city,
special district, or redevelopment agency, if necessary, to ensure
compliance with state law, grant agreements, local ordinances, and to
determine fiscal viability. This bill would require the Controller
to prepare a report of the results of the audit or investigation and
to file a copy with the local legislative body. This bill would also
provide that specified costs incurred by the Controller shall be
borne by the county, city, or redevelopment agency and state that
reimbursements collected, upon appropriation to the Controller, be
available to offset costs of enforcing 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 12464 of the Government Code is amended to
read:
   12464.  (a) If the county, city, or district reports are not made
in the time, form, and manner required or there is reason to believe
that a report is false, incomplete, or incorrect, the Controller
shall appoint a qualified accountant to make an investigation and to
obtain the information required. The accountant appointed shall
report to the Controller the results of investigation, and a copy
shall be filed with the legislative body of the county, city, or
district, the accounts of which were investigated. If a similar
investigation has to be made of the accounts of any county, city, or
district, for two successive years, a certified copy of the results
of the investigation last made shall be transmitted to the grand jury
of the county that was investigated or in which the city or district
investigated is situated, or, if the district is situated in more
than one county, in the county in which any portion of the district
is situated. 
   (b) The Controller may, at his or her discretion, perform an audit
or investigation of any county, city, special district, or
redevelopment agency, if deemed necessary, to ensure compliance with
state law, grant agreements, local ordinances, and to determine
fiscal viability. The Controller shall prepare a report of the
results of the audit or investigation, and a copy shall be filed with
the legislative body of the county, city, special district, or
redevelopment agency, the accounts of which were audited or
investigated. The audit or investigation will be designed to provide
reasonable assurance on compliance with laws and regulations that are
significant to the audit or investigation objectives. Any
indication, illegal acts, or fraud will be communicated to
appropriate authorities, including the county grand jury. 

   (b)
    (c)  Any costs incurred by the Controller pursuant to
 subdivision   subdivisions  (a)  and
(b)  , including contracts with, or employment of, certified
public accountants or public accountants, in compiling a financial
report pursuant to Section 12463 or 12463.3 shall be borne by the
county, city, district, or redevelopment agency, and shall be a
charge against any unencumbered funds of the county, city, district,
or redevelopment agency. Any forfeiture imposed by Section 53895 or
53895.5 may be offset up to the total costs incurred by the
Controller. Any remaining balance shall be forfeited in accordance
with Sections 53895 and 53895.5. Any costs incurred by the Controller
in excess of the forfeiture imposed shall be a charge against any
unencumbered funds of the county, city, district, or redevelopment
agency.  All reimbursements collected in regard to this section
shall upon appropriation to the Controller, be available to offset
costs of enforcing this section.