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AB-64 State project audits.(2019-2020)

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Date Published: 04/04/2019 09:00 PM
AB64:v98#DOCUMENT

Amended  IN  Assembly  April 04, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill No. 64


Introduced by Assembly Member Fong

December 03, 2018


An act to amend Section 8546.7 of the Government Code, relating to state government.


LEGISLATIVE COUNSEL'S DIGEST


AB 64, as amended, Fong. State project audits.
Existing law creates in state government the California State Auditor’s Office under the direction of the Milton Marks “Little Hoover” Commission on California State Government Organization and Economy. Existing law requires the California State Auditor to examine and report annually upon the financial statements prepared by the executive branch of the state and to perform other related assignments that are mandated by statute. Under existing law, a contract involving the expenditure of state funds in excess of $10,000 entered into by a state agency, board, commission, or department is subject to examination and audit by the California State Auditor, upon request by the public entity or as part of an audit of the public entity, for 3 years after final payment under the contract.
This bill would require the California State Auditor to examine and audit a state contract involving the expenditure of public funds in excess of $500,000,000 entered into by a state agency, board, commission, or department within one year of the date of final payment under the contract. The bill would make other nonsubstantive changes.

Existing law authorizes state projects and provides that those projects will be funded in whole or in part by the State Project Infrastructure Fund. Existing law requires the State Public Works Board to establish the scope, cost, and delivery method of each state project.

This bill would express the intent of the Legislature to include provisions within this bill that would require an independent audit of all state projects whose estimated cost exceeds a given threshold.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NO  

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


SECTION 1.

 Section 8546.7 of the Government Code is amended to read:

8546.7.
 (a) Notwithstanding any other provision of law, every a contract involving the expenditure of public funds in excess of ten thousand dollars ($10,000) entered into by any state agency, board, commission, or department or by any other public entity, including a city, county, city and county, or district, shall be subject to the examination and audit of the California State Auditor, at the request of the public entity or as part of any an audit of the public entity, for a period of three years after final payment under the contract. Every A contract shall contain a provision stating that the contracting parties shall be subject to that examination and audit. The failure of a contract to contain this provision shall not preclude the California State Auditor from conducting an examination and audit of the contract at the request of the public entity entering into the contract or as part of any an audit of the public entity.
(b) The California State Auditor shall examine and audit a contract involving the expenditure of public funds in excess of five hundred million dollars ($500,000,000) entered into by a state agency, board, commission, or department. The audit shall be conducted within one year beginning from the date of final payment under the contract.

It

(c) It is the intent of the Legislature that the Regents of the University of California include in contracts involving the expenditure of state funds in excess of ten thousand dollars ($10,000) a provision stating that the contracting parties shall be subject to the examination and audit of the California State Auditor, at the request of the regents or as part of any an audit of the university, for a period of three years after final payment under the contract.

The

(d) The examinations and audits under this section shall be confined to those matters connected with the performance of the contract, including, but not limited to, the costs of administering the contract.

SECTION 1.

It is the intent of the Legislature to include provisions within this measure that would require an independent audit of all state projects for which the State Public Works Board, or its future equivalent, establishes an estimated cost exceeding a given threshold.