Bill Text: CA AB1248 | 2013-2014 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Controller: internal control guidelines applicable to local agencies.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2013-08-28 - Chaptered by Secretary of State - Chapter 190, Statutes of 2013. [AB1248 Detail]

Download: California-2013-AB1248-Introduced.html

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BILL NUMBER: AB 1248	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Cooley

                        FEBRUARY 22, 2013

   An act to add Sections 12422.5 and 53064.9 to the Government Code,
relating to local government.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1248, as introduced, Cooley. Local agencies: internal control
guidelines.
   Existing law requires the Controller to superintend the fiscal
concerns of the state, suggest plans for the improvement and
management of the public revenues, and at least annually, summon
county auditors to discuss problems with, among other things, the
reporting of financial transactions of the counties.
   This bill would require the Controller, on or before January 1,
2015, to develop internal control guidelines applicable to a local
agency, as defined, to prevent and detect financial errors and fraud,
based on specified standards and with input from any local agency
and organizations representing the interests of local agencies. This
bill would require the Controller to, by the same date, post the
completed internal control guidelines on the Controller's Internet
Web site and update them, as he or she deems necessary. This bill
would require a local agency to comply with the guidelines
established by the Controller, starting on January 1, 2016. By
mandating local agencies to comply with new internal control
guidelines established by the Controller, this bill would impose a
state-mandated local program.
   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 12422.5 is added to the Government Code, to
read:
   12422.5.  (a) On or before January 1, 2015, the Controller shall
develop internal control guidelines applicable to each local agency
to prevent and detect financial errors and fraud.
   (b) The Controller shall develop the internal control guidelines
based on standards adopted by the American Institute of Certified
Public Accountants and with input from any local agency and
organizations representing the interests of local agencies,
including, but not limited to, the League of California Cities, the
California State Association of Counties, the California Special
Districts Association, and the California State Association of County
Auditors.
   (c) On or before January 1, 2015, the Controller shall post the
completed internal control guidelines on the Controller's Internet
Web site.
   (d) The Controller shall update the internal control guidelines,
as he or she deems necessary, and maintain a current version on the
Internet Web site.
   (e) For purposes of this section, "local agency" means a city,
county, city and county, special district, or any other local
governmental entity, except a school district.
  SEC. 2.  Section 53064.9 is added to the Government Code, to read:
   53064.9.  Commencing on January 1, 2016, a local agency, as
defined in subdivision (e) of Section 12422.5, shall comply with the
internal control guidelines established by the Controller pursuant to
Section 12422.5.
  SEC. 3.  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.