Bill Text: CA AB783 | 2015-2016 | Regular Session | Amended
Bill Title: County auditors.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Engrossed - Dead) 2016-11-30 - Died on Senate inactive file. [AB783 Detail]
Download: California-2015-AB783-Amended.html
BILL NUMBER: AB 783 AMENDED
BILL TEXT
AMENDED IN SENATE JULY 16, 2015
AMENDED IN SENATE JUNE 30, 2015
AMENDED IN ASSEMBLY MARCH 26, 2015
INTRODUCED BY Assembly Member Daly
FEBRUARY 25, 2015
An act to amend Sections 25303, 26881, and 53087.6 of, and to add
Sections 25250.5 and 26915 to, the Government Code, and to amend
Section 4108.5 of the Revenue and Taxation Code, relating to county
government.
LEGISLATIVE COUNSEL'S DIGEST
AB 783, as amended, Daly. County auditors.
(1) Existing law enumerates the officers of a county, including
the office of the auditor, prescribes their duties, and permits a
county board of supervisors to consolidate, separate, and
reconsolidate their duties, as specified. Existing law requires the
board of supervisors, at least biennially, to audit county financial
accounts and records of all county officers responsible for the care,
management, collection, or disbursement of county money, as
specified. Existing law requires the board of supervisors to
supervise the official conduct of all county officers, particularly
with regard to the functions and duties of these county officers as
they relate to the assessing, collecting, safekeeping, management, or
disbursement of public funds.
This bill would require, in any county with both an elected
auditor-controller and a population exceeding 3,000,000 people, that
the auditor-controller, and not the board of supervisors, examine and
audit, or cause to be audited, the financial accounts and records of
all officers having responsibility for the care, management,
collection, or disbursement of county money, as described above. The
bill would require this audit to be filed with the board of
supervisors. The bill would require, in any county with both an
elected auditor-controller and a population exceeding 3,000,000
people, that the authority of the board of supervisors to supervise
the official conduct of county officers not be construed to affect
the independent auditing and accounting functions of the
auditor-controller and would prohibit the board of supervisors from
obstructing his or her auditing and accounting functions.
auditor-controller. By increasing the duties of local
officials in a county with the above-described characteristics, this
bill would impose a state-mandated local program.
(2) Existing law generally prescribes the duties of the county
auditor. Existing law requires the county auditor or
auditor-controller, as specified, to be the chief accounting officer
of the county. Upon order of the board of supervisors, existing law
requires the auditor or auditor-controller to prescribe the
accounting forms and methods of all offices under the control of the
board of supervisors and to supervise generally practices in those
offices, which includes the ability to review departmental and
countywide internal controls.
This bill would require a county auditor or auditor-controller
also to be the chief auditor of the county. The bill would grant the
auditor or auditor-controller, as part of its supervisory powers, the
authority to audit, rather than review, departmental and countywide
internal controls. The bill would require, in reference to the duties
of auditors, that the term "county auditor" include certain county
offices that have been consolidated. The bill would prescribe
requirements for the head of a county auditing unit. The bill would
prohibit a board of supervisors from creating or operating a separate
auditing unit outside of the county auditor, except if the separate
auditing unit was established before 1981, and would prohibit the
board from transferring any auditing unit away from the county
auditor. By increasing the duties of local officials in a county with
the above-described characteristics, this bill would impose a
state-mandated local program.
(3) Existing law authorizes a county auditor or controller to
establish and maintain a whistleblower hotline for receiving
information regarding fraud, waste, or abuse by local government
employees, subject to certain requirements.
This bill would require, in a county with an elected
auditor-controller and a population exceeding 3,000,000, that the
county auditor-controller be the sole county officer with the
authority to maintain a whistleblower hotline, as described above. By
increasing the duties of local officials in a county with the
above-described characteristics, this bill would impose a
state-mandated local program.
(4) Existing law authorizes tax-defaulted property to be redeemed
until the right of redemption terminates. Existing law requires the
audit of a tax collector's records and accounts related to redemption
of tax-defaulted property at least once every 3 years.
This bill would require, in a county with an elected
auditor-controller and a population exceeding 3,000,000 people, that
the auditor-controller either conduct the audit described above or
retain the services of an independent certified public accountant or
licensed public accountant to perform the audit, in accordance with
specified standards. By increasing the duties of local officials in a
county with the above-described characteristics, this bill would
impose a state-mandated local program.
(5) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 25250.5 is added to the Government Code, to
read:
25250.5. Notwithstanding Section 25250, in any county with both
an elected auditor-controller and a population exceeding 3,000,000
people, at least biennially, the county auditor-controller shall
examine and audit, or cause to be audited, the financial accounts and
records of all officers having responsibility for the care,
management, collection, or disbursement of money belonging to the
county or money received or disbursed by them under authority of law.
The audit shall encompass the immediately preceding two-year period,
or any portion thereof not included in a prior audit. This financial
examination or audit may be performed in coordination with the
investigations conducted by the grand jury under Section 925 of the
Penal Code, or the auditor-controller may elect to accept reports
delivered pursuant to Section 933 of the Penal Code in lieu of its
own separate examination if these reports are found to fulfill some
or all of the requirements of this section. In connection with the
requirements of this section and Section 25253, the county
auditor-controller may employ the services of an independent
certified public accountant or licensed public accountant to perform
an examination of the financial statements in accordance with
generally accepted auditing standards. The audit shall be filed with
the board of supervisors to enable the board to supervise county
officers and county fiscal affairs.
SEC. 2. Section 25303 of the Government Code is amended to read:
25303. (a) The board of supervisors shall supervise the official
conduct of all county officers, and officers of all districts and
other subdivisions of the county, and particularly insofar as the
functions and duties of such county officers and officers of all
districts and subdivisions of the county relate to the assessing,
collecting, safekeeping, management, or disbursement of public funds.
It shall see that they faithfully perform their duties, direct
prosecutions for delinquencies, and when necessary, require them to
renew their official bond, make reports and present their books and
accounts for inspection.
(b) In any county with both an elected auditor-controller and a
population exceeding 3,000,000 people:
people, this section shall not be construed to affect the independent
and statutorily designated auditing and accounting functions of the
county auditor-contro ller.
(1) This section shall not be construed to affect the independent
and statutorily designated auditing and accounting functions of the
county auditor-controller.
(2) The board of supervisors shall not obstruct the auditing and
accounting functions of the elected county auditor-controller.
(c) This section shall not be construed to affect the independent
and constitutionally and statutorily designated investigative and
prosecutorial functions of the sheriff and district attorney of a
county. The board of supervisors shall not obstruct the investigative
function of the sheriff of the county nor shall it obstruct the
investigative and prosecutorial function of the district attorney of
a county.
(d) Nothing contained herein shall be construed to limit the
budgetary authority of the board of supervisors over the district
attorney or sheriff.
SEC. 3. Section 26881 of the Government Code is amended to read:
26881. The county auditor, or in counties that have the office of
controller, the auditor-controller shall be the chief accounting
officer of the county and the chief auditor of the county. Upon order
of the board of supervisors, the auditor or auditor-controller shall
prescribe, and shall exercise a general supervision, including the
ability to audit departmental and countywide internal controls, over
the accounting forms and the method of keeping the accounts of all
offices, departments and institutions under the control of the board
of supervisors and of all districts whose funds are kept in the
county treasury.
SEC. 4. Section 26915 is added to the Government Code, to read:
26915. (a) Any reference to "county auditor" shall also mean
county auditor-controller, county auditor-recorder, county
clerk-auditor-recorder, county clerk-auditor, county
auditor-controller-treasurer-tax collector, any office consolidated
under Section 24300.5, and any office into which the office of county
auditor is consolidated.
(b) The head of any county auditing unit, division, branch, or
group shall be one of the following:
(1) The county auditor.
(2) A person who shall be answerable directly to the county
auditor, shall have direct access to the county auditor, and shall
report the audit results to the county auditor.
(c) A board of supervisors shall not create or operate a separate
auditing unit, division, branch, or group outside of the county
auditor, except if the separate auditing unit, division, branch, or
group was established before 1981. A board of supervisors shall not
transfer any auditing unit, division, branch, or group away from the
county auditor.
SEC. 5. Section 53087.6 of the Government Code is amended to read:
53087.6. (a) (1) A city, county, or city and county auditor or
controller who is elected to office may maintain a whistleblower
hotline to receive calls from persons who have information regarding
fraud, waste, or abuse by local government employees.
(2) A city, county, or city and county auditor or controller who
is appointed by, or is an employee of, a legislative body or the
government agency that is governed by the city, county, or city and
county, shall obtain approval of that legislative body or the
government agency, as the case may be, prior to establishing the
whistleblower hotline.
(3) In any county with both an elected auditor-controller and a
population exceeding 3,000,000 people, the county auditor-controller
shall be the sole county officer with the authority to maintain a
whistleblower hotline to receive calls from persons who have
information regarding fraud, waste, or abuse by county government
employees.
(b) The auditor or controller may refer calls received on the
whistleblower hotline to the appropriate government authority for
review and possible investigation.
(c) During the initial review of a call received pursuant to
subdivision (a), the auditor or controller, or other appropriate
governmental agency, shall hold in confidence information disclosed
through the whistleblower hotline, including the identity of the
caller disclosing the information and the parties identified by the
caller.
(d) A call made to the whistleblower hotline pursuant to
subdivision (a), or its referral to an appropriate agency under
subdivision (b), may not be the sole basis for a time period under a
statute of limitation to commence. This section does not change
existing law relating to statutes of limitation.
(e) (1) Upon receiving specific information that an employee or
local government has engaged in an improper government activity, as
defined by paragraph (2) of subdivision (f), a city or county auditor
or controller may conduct an investigative audit of the matter. The
identity of the person providing the information that initiated the
investigative audit shall not be disclosed without the written
permission of that person, unless the disclosure is to a law
enforcement agency that is conducting a criminal investigation. If
the specific information is in regard to improper government activity
that occurred under the jurisdiction of another city, county, or
city and county, the information shall be forwarded to the
appropriate auditor or controller for that city, county, or city and
county.
(2) Any investigative audit conducted pursuant to this subdivision
shall be kept confidential, except to issue any report of an
investigation that has been substantiated, or to release any findings
resulting from a completed investigation that are deemed necessary
to serve the interests of the public. In any event, the identity of
the individual or individuals reporting the improper government
activity, and the subject employee or employees shall be kept
confidential.
(3) Notwithstanding paragraph (2), the auditor or controller may
provide a copy of a substantiated audit report that includes the
identities of the subject employee or employees and other pertinent
information concerning the investigation to the appropriate
appointing authority for disciplinary purposes. The substantiated
audit report, any subsequent investigatory materials or information,
and the disposition of any resulting disciplinary proceedings are
subject to the confidentiality provisions of applicable local, state,
and federal statutes, rules, and regulations.
(f) (1) For purposes of this section, "employee" means any
individual employed by any county, city, or city and county,
including any charter city or county, and any school district,
community college district, municipal or public corporation, or
political subdivision that falls under the auditor's or controller's
jurisdiction.
(2) For purposes of this section, "fraud, waste, or abuse" means
any activity by a local agency or employee that is undertaken in the
performance of the employee's official duties, including activities
deemed to be outside the scope of his or her employment, that is in
violation of any local, state, or federal law or regulation relating
to corruption, malfeasance, bribery, theft of government property,
fraudulent claims, fraud, coercion, conversion, malicious
prosecution, misuse of government property, or willful omission to
perform duty, is economically wasteful, or involves gross misconduct.
SEC. 6. Section 4108.5 of the Revenue and Taxation Code is amended
to read:
4108.5. (a) The records and accounts of the tax collector
pursuant to this part shall be audited at least once each three
years.
(b) In any county with both an elected auditor-controller and a
population exceeding 3,000,000 people, the county auditor-controller
shall either conduct the audit required by this section or shall
employ the services of an independent certified public accountant or
licensed public accountant to perform the audit required by this
section in accordance with the general and specified standards
prescribed by the Institute of Internal Auditors or the Government
Auditing Standards issued by the Comptroller General of the United
States, as appropriate.
SEC. 7. If the Commission on State Mandates determines that this
act contains costs mandated by the state, reimbursement to local
agencies and school districts for those costs shall be made pursuant
to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of
the Government Code.
