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Warning! This is a not the current version of this legislative bill.
Italicized text includes proposed additions to law or the previous version of the bill.
Struck text includes proposed deletions to law or the previous version of the bill.

(pdf version)

INTRODUCED BY Senator Rubio

FEBRUARY 24, 2012

An act to amend Section 8546.10 of the Government Code, relating
to local government.


LEGISLATIVE COUNSEL'S DIGEST


SB 1395, as introduced, Rubio. State Auditor: local government
agency audit program.
Existing law authorizes the State Auditor to establish a high-risk
local government agency audit program for the purpose of
identifying, auditing, and issuing reports on any local government
agency that the State Auditor identifies as being at high risk for
the potential of waste, fraud, abuse, and mismanagement or that has
major challenges associated with its economy, efficiency, or
effectiveness.
This bill would make technical, nonsubstantive changes to this
provision.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

SECTION 1. Section 8546.10 of the Government Code is amended to
read:
8546.10. (a) The State Auditor may establish a high-risk local
government agency audit program for the purpose of identifying,
auditing, and issuing reports on any local government agency,
including, but not limited to, any city, county, special district, or
any publicly created entity, whether created by the California
Constitution or otherwise, that the State Auditor identifies as being
at high risk for the potential of waste, fraud, abuse, or
mismanagement or that has major challenges associated with its
economy, efficiency, or effectiveness.
(b) In addition to identifying a local government agency as high
risk on the basis of weaknesses identified in audit and investigative
reports produced by the bureau, the State Auditor may consult with
the Controller, Attorney General, and other state agencies that have
oversight responsibilities over any local government agency, in
identifying local governments that are at high risk.
(c) The Bureau of State Audits shall be responsible for the state
costs associated with the high-risk local government agency audit
program, shall conduct the program as funds permit, and shall only
conduct the program to the extent that it does not interfere with
duties related to mandated audits and requests from the Joint
Legislative Audit Committee.
(d) (1) The State Auditor shall notify the Joint Legislative Audit
Committee whenever he or she identifies a local government as at
high risk.
(2) The State Auditor shall provide the Joint Legislative Audit
Committee, at a public hearing of the committee, an annual update of
all audits in progress.
(3) If a local government agency has taken significant corrective
measures for deficiencies identified by the State Auditor, that
agency shall be removed from the high-risk local government agency
audit program.
(e) Notwithstanding the requirements of Section 10231.5, if the
State Auditor establishes the program provided for in this section
and the State Auditor determines that a local agency is at high risk,
the State Auditor shall issue audit reports at least once every two
years with recommendations for improvement in such a
of that local government so identified
agency .
(f) Audits conducted pursuant to this section shall be approved by
the Joint Legislative Audit Committee.