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AB-1841 District agricultural associations: fiscal and compliance audits: ethics training.(2019-2020)

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Date Published: 01/06/2020 09:00 PM
AB1841:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 1841


Introduced by Assembly Member Salas

January 06, 2020


An act to add Section 4053 to the Food and Agricultural Code, relating to district agricultural associations.


LEGISLATIVE COUNSEL'S DIGEST


AB 1841, as introduced, Salas. District agricultural associations: fiscal and compliance audits: ethics training.
Existing law divides the state into agricultural districts and provides for the management of each district by a district agricultural association, which is governed by a board of directors. Existing law sets forth the powers and duties of a district agricultural association, including, among other things, for a district agricultural association with an annual budget exceeding $5,000,000, the duty to conduct an annual audit by an independent certified public accountant or certified public accountancy firm selected by the board of directors of the association, or, if the district agricultural association has an annual budget of less than $5,000,000, the duty to have its books and accounts examined and reviewed annually and audited once every 3 years by an independent certified public accountant or certified public accountancy firm selected by the board of directors of the association.
This bill would require district agricultural associations to report every year the salary information of their employees to the Controller. The bill would require the Department of Food and Agriculture to require the chief executive officer and each director of a district agricultural association to attend ethics and conflict-of-interest training classes each year as prepared by the department. The bill would require the department to develop appropriate controls to protect the assets of district agricultural associations and to mitigate the potential for misuse, prevent inappropriate purchases and travel, and segregate duties as a preventive measure against improper purchases by district agricultural associations. The bill would require the department to conduct or cause to be conducted a fiscal and compliance audit of a district agricultural association that has been placed on the department’s “Fairs on the Watch Program.”
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 4053 is added to the Food and Agricultural Code, to read:

4053.
 (a) Each association shall report every year the salary information of their employees to the Controller.
(b) The department shall require the chief executive officer and each director of each association to attend ethics and conflict-of-interest training classes each year as prepared by the department.
(c) The department shall develop appropriate controls to protect the assets of each association and to mitigate the potential for misuse, prevent inappropriate purchases and travel, and segregate duties as a preventive measure against improper purchases by an association.
(d) Notwithstanding subdivision (d) of Section 4051, the department shall conduct or cause to be conducted a fiscal and compliance audit of an association that has been placed on the department’s “Fairs on the Watch Program.”