BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1948
                                                                  Page  1

          Date of Hearing:   April 30, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                    AB 1948 (Mullin) - As Amended:  April 7, 2014 

          Policy Committee:                              Local  
          GovernmentVote:9-0

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              Yes

           SUMMARY  

          This bill makes qualifications for the office of county  
          treasurer, county tax collector, or county treasurer-tax  
          collector mandatory.  (Qualifications that are currently at the  
          discretion of the county boards of supervisors).  This bill also  
          extends these qualifications to the director of finance,  
          consolidated director of finance or any office consolidated with  
          the treasurer or tax collector.

           FISCAL EFFECT  

          1)Minor, one-time state costs to reimburse the eight counties  
            impacted by this bill if the Commission on State Mandates  
            determines this act contains a reimbursable mandate.

          2)Minor, potentially reimbursable costs to the eight counties  
            that do not currently require the qualifications set forth in  
            this bill.

           COMMENTS  

           1)Purpose  . This bill applies specific standards to county  
            treasurer, tax collector and director of finance positions  
            with the goal of ensuring that those charged with handling  
            county financial resources are well trained and fully  
            qualified.  These standards include meeting at least one of  
            several qualifications, including possessing a college degree  
            in finance or related field, a background in financial  
            management, or holding one of several specific financial  
            certificates.









                                                                  AB 1948
                                                                  Page  2

           2)Existing law  .  In response to the Orange County Bankruptcy in  
            1994, SB 866 (Craven, 1995) established a number of provisions  
            to increase oversight of county investment practices.  Among  
            these provisions is a requirement that a candidate meet one of  
            a set of five criteria related to education and experience in  
            order to be eligible for election or appointment to the office  
            of county treasurer, county tax collector, or county  
            treasurer-tax collector in any county.  However, these  
            qualifications apply only if a county's board of supervisors  
            adopts an ordinance to require them. 

           3)Existing practice  .  Forty-seven of California's 57 counties  
            (excluding San Francisco) have voluntarily adopted an  
            ordinance adopting the qualifications required in this bill.  
            Two additional counties, Sacramento and Santa Clara, have  
            established director of finance offices under their charter  
            authority and have qualifications associated with those  
            positions.  Together, these 49 counties cover approximately  
            90% of the state's population.

            Counties that have not voluntarily adopted qualifications  
            include: Calaveras, Colusa, Humboldt, Mariposa, Merced,  
            Riverside, Trinity and Tulare.


           Analysis Prepared by  :    Jennifer Swenson / APPR. / (916)  
          319-2081