BILL NUMBER: SB 186 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 31, 2011
AMENDED IN SENATE APRIL 6, 2011
AMENDED IN SENATE MARCH 22, 2011
AMENDED IN SENATE MARCH 10, 2011
INTRODUCED BY Senators Kehoe and DeSaulnier
(Principal coauthor: Assembly Member Alejo)
(Coauthor: Assembly Member Lara)
FEBRUARY 7, 2011
An act to amend , repeal, and add Section 12464 of the
Government Code, relating to the Controller.
LEGISLATIVE COUNSEL'S DIGEST
SB 186, as amended, Kehoe. The Controller.
Existing law authorizes the Controller
provides that if the county, city, or district reports are not made
in a specified manner, or there is reason to believe that the report
is false, the Controller is required to appoint a qualified
accountant to make an investigation and to obtain the information
required for the annual report of financial transactions.
Existing law provides that if a similar investigation is made of any
county, city, or district for 2 successive years, then a copy of the
results of those investigations shall be transmitted to the grand
jury of the county investigated or in which the local
agency investigated is situated.
This bill would expand the above provisions to also include a
special district, joint powers authority, or redevelopment agency.
This bill would also, until January 1, 2017, authorize the
Controller to exercise discretionary authority to perform an audit or
investigation of any county, city, special district, joint powers
authority, or redevelopment agency, if the Controller has reason to
believe, supported by documentation, that the local agency is not
complying with the financial requirements in state law, grant
agreements, local charters, or local ordinances. This bill would
require , until January 1, 2017, the Controller to prepare
a report of the results of the audit or investigation and to file a
copy with the local legislative body.
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, special district, joint powers
authority, or redevelopment agency 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 the investigation, and a copy shall be
filed with the legislative body of the county, city, special
district, joint powers authority, or redevelopment agency, the
accounts of which were investigated. If a similar investigation has
to be made of the accounts of any county, city, special district,
joint powers authority, or redevelopment agency, 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 local agency investigated is situated,
or, if the agency is situated in more than one county, in the county
in which any portion of the agency is situated.
(b) (1) If the Controller has reason to believe that any county,
city, special district, joint powers authority, or redevelopment
agency is not complying with the financial requirements in state law,
local charters, or local ordinances, he or she may perform an audit
or investigation of the issue. The basis for the decision to conduct
an audit or investigation shall be supported by credible
documentation, including input from the local agency , as well
as a determination by the Controller that sufficient funds
are made available to conduct the audit or investigation . The
Controller shall prepare a report of the results of the audit or
investigation that shall include documentation used as the basis for
the decision to perform the audit or investigation. A copy of the
report shall be filed with the legislative body of the county, city,
special district, joint powers authority, or redevelopment agency,
subject to the audit or investigation. Any finding of illegal acts or
fraud shall be communicated to the appropriate authorities,
including the county grand jury.
(2) For purposes of this subdivision, documentation means any
handwriting, typewriting, printing, photostating, photographing,
photocopying, transmitting by electronic mail or facsimile, and every
other means of recording upon any tangible thing any form of
communication or representation, including letters, words, pictures,
sounds, or symbols, or combinations thereof, and any record thereby
created, regardless of the manner in which the record has been
stored.
(c) Any costs incurred by the Controller pursuant to
subdivision (a) 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 of this code, or as required by
Section 33684 of the Health and Safety Code, shall be borne by the
county, city, special district, joint powers authority, or
redevelopment agency, and shall be a charge against any unencumbered
funds of the county, city, special district, joint powers authority,
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, special district, joint
powers authority, or redevelopment agency.
(d) This section shall remain in effect only until January 1,
2017, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2017, deletes or extends
that date.
SEC. 2. Section 12464 is added to the
Government Code , to read:
12464. (a) If the county, city, special district, joint powers
authority, or redevelopment agency 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 the investigation, and a copy shall be
filed with the legislative body of the county, city, special
district, joint powers authority, or redevelopment agency, the
accounts of which were investigated. If a similar investigation has
to be made of the accounts of any county, city, special district,
joint powers authority, or redevelopment agency, 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 local agency investigated is situated,
or, if the agency is situated in more than one county, in the county
in which any portion of the agency is situated.
(b) Any costs incurred by the Controller pursuant to subdivision
(a), including contracts with, or employment of, certified public
accountants or public accountants, in compiling a financial report
pursuant to Section 12463 or 12463.3 of this code, or as required by
Section 33684 of the Health and Safety Code, shall be borne by the
county, city, special district, joint powers authority, or
redevelopment agency, and shall be a charge against any unencumbered
funds of the county, city, special district, joint powers authority,
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, special district, joint
powers authority, or redevelopment agency.
(c) This section shall become operative on January 1, 2017.