BILL ANALYSIS �
AB 1583
Page 1
ASSEMBLY THIRD READING
AB 1583 (Allen)
As Amended May 27, 2014
Majority vote
ADMINISTRATIVE REVIEW 13-0 APPROPRIATIONS 17-0
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|Ayes:|Frazier, Achadjian, |Ayes:|Gatto, Bigelow, |
| |Allen, Buchanan, Ian | |Bocanegra, Bradford, Ian |
| |Calderon, Cooley, Daly, | |Calderon, Campos, |
| |Gorell, Hagman, Medina, | |Donnelly, Eggman, Gomez, |
| |Olsen, | |Holden, Jones, Linder, |
| |Quirk-Silva, Salas | |Pan, Quirk, |
| | | |Ridley-Thomas, Wagner, |
| | | |Weber |
| | | | |
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SUMMARY : Requires the California State Controller's Office
(State Controller) to collect additional information from state
agencies that maintain bank accounts outside of the state
treasury system and to annually prepare and submit this
information in a report to the Department of Finance (Finance)
and the Legislature. Specifically, the report must include:
1)The name of the account;
2)The source of authorization for establishing the account; and,
3)The account balance.
EXISTING LAW requires the State Controller to submit certain
fiscal reports that contain information on the state's revenues
and expenditures during the preceding fiscal year to the
Governor and Legislature.
FISCAL EFFECT : According to the Assembly Appropriations
Committee:
1)On-going costs to the State Controller in the $85,000 range
($45,000 General Fund) for 1 personnel year (PY) to update
procedures and perform the expanded duties.
2)Unknown, but likely minor costs to state agencies to compile
AB 1583
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and report the additional information.
3)Minor costs to Finance to update reporting forms.
COMMENTS : In an October 2013 report, the Bureau of State Audits
(BSA) noted that of the roughly $55 billion in the possession or
control of the State, 14% or $9.3 billion, is in nearly 1,400
bank accounts outside the treasury system. The treasury system
was established to safeguard and maximize the return on state
money with control agencies such as Finance, the State
Controller, and the State Treasurer all contributing to
safeguarding these assets.
State departments, agencies, and other entities may need to
establish outside accounts because they must deal with funds
held in trust for others or to gain operational efficiencies.
To do so requires either express statutory authority or
authorization from Finance, and subjects the agency to certain
monitoring and reporting requirements.
The State Controller currently collects information on accounts
outside the state treasury system including account names,
source of authorization and balances. The State Controller
annually provides a comprehensive listing of this information to
the Governor's Office in the Budget/Legal Basis Analysis Report.
This bill would ensure that state agencies that receive revenues
for state costs under a cost recovery statute shall account for
those revenues to the State Controller for deposit into the
state treasury system, as provided in statute.
Analysis Prepared by : William Herms / A. & A.R. / (916)
319-3600
FN: 0003842