ARTICLE 1. General [13070 - 13081]
( Article 1 added by Stats. 1945, Ch. 112. )
The department has general powers of supervision over all matters concerning the financial and business policies of the State and whenever it deems it necessary, or at the instance of the Governor, shall institute or cause the institution of such investigations and proceedings as it deems proper to conserve the rights and interests of the State.
(Added by Stats. 1945, Ch. 112.)
The department shall ensure the state carries out its responsibilities in accordance with the federal Single Audit Act (31 U.S.C. Sec. 7501 et seq.). For that purpose, the department shall do all of the following:
(a) Act as the liaison between state agencies, the California State Auditor, and other relevant federal agencies.
(b) Establish guidelines and instructions for state agencies pursuant to this section. The adoption, amendment, or repeal of these guidelines, instructions, or other directives consistent with this section, shall be exempt from the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2).
(c) Collect financial information related to federal awards received, including schedules of cash and noncash federal assistance and passthrough amounts.
(d) Collect nonfinancial information related to federal awards received, including prior audit findings and management representation letters.
(e) Review and consolidate the financial and nonfinancial information from state agencies under subdivisions (c) and (d) and prepare the Schedule of Federal Awards and related schedules, to be forwarded to the California State Auditor for inclusion in the Single Audit Report.
(f) Upload the completed Single Audit Report to the Federal Clearinghouse on behalf of the state.
(Amended by Stats. 2020, Ch. 370, Sec. 141. (SB 1371) Effective January 1, 2021.)
The Director of Finance shall be responsible for coordinating state agency internal audits and identifying when agencies are required to comply with federally mandated audits. The Director of Finance, in coordinating the internal auditors of state agencies, shall ensure that these auditors utilize the “Standards for the Professional Practices of Internal Auditing.”
(Amended by Stats. 2012, Ch. 32, Sec. 13. (SB 1006) Effective June 27, 2012.)
Within the Department of Finance, there is the Demographic Research Unit. The purposes of the unit include, but are not limited to, the following:
(a) Providing adequate demographic data to aid effective state and local planning and policymaking.
(b) Serving all levels of government and the private sector as the centralized state source of demographic data.
(c) Assuring equitable classification of cities and counties according to population to provide equitable distribution of funds and tax rate limits.
(d) Rendering advisory, investigational, or other
similar service of relevance to the establishment of population and its composition to any city, county, district, association of cities, counties, districts or any other political subdivision or the federal government upon such terms and conditions as may be satisfactory to the director, provided that the state shall be reimbursed for all costs incurred in performing services authorized by this subdivision.
(Amended by Stats. 2019, Ch. 29, Sec. 92. (SB 82) Effective June 27, 2019.)
Whenever the department issues reports containing population breakdowns or analyses based on race or ethnicity, it shall report Asian-Pacific Islanders as a distinct category, and not combine Asian-Pacific Islanders into any other category.
(Added by Stats. 1994, Ch. 1013, Sec. 1. Effective January 1, 1995.)
The Legislature finds and declares that: (1) population size and distribution patterns in California exert a major influence on the physical, social, and economic structure of the state and on the quality of the environment generally; (2) sound and current data and methods to estimate population trends are necessary to enable state, regional, and local agencies to plan and function properly; and (3) there is a critical need for a proper study of the implications of present and future population trends in order that state, regional, and local agencies might develop or reexamine policies and actions based thereon.
The Demographic Research Unit shall:
(a) Develop basic demographic data and statistical compilations, which may include a current
population survey and a mid-decade census.
(b) Design and test methods of research and data collection.
(c) Conduct local population estimates as required by law.
(d) Validate all official census data and population statistics.
(e) Analyze and prepare projections of enrollments in public schools, colleges, and universities.
(f) Analyze governmental records to establish characteristics of migration and distribution.
(g) Publish annual estimates of the population of the state and its composition.
(h) Prepare short- and long-range projections of population and its
composition.
(i) Provide advisory services to state agencies and other levels of government.
(j) Evaluate and recommend data requirements for determining population and population growth.
(k) Analyze the demographic features of the causes and consequences of patterns of natural increase or decrease, migration, and population concentration within the state.
(l) Assess the need for population data required for determining the allocation of federal, state, and other subvention revenues.
(m) Request and obtain from any department, division, commission, or other agency of the state all assistance and information to enable the unit to effectively carry out the provisions of this
section.
(n) Cooperate with the Office of Planning and Research with respect to functions involving mutual areas of concern relating to demography and state planning.
(o) Enter into agreements to carry out the purposes of this section, including the application for and acceptance of federal funds or private foundation grants for demographic studies.
(p) Act as primary state government liaison with the Census Bureau, United States Department of Commerce, in the acquisition and distribution of census data and related documentation to state agencies.
(q) Administer, with other agencies, a State Census Data Center which will be responsible for acquiring decennial and other census data from the Bureau of the Census, and for providing necessary information to
the Legislature and to the executive branch and for seeking to ensure the availability of census information to local governments. The unit and the Office of Planning and Research shall be responsible for designating subcenters of the State Census Data Center as needed. The unit will provide materials to subcenters of the State Census Data Center, will coordinate the efforts of the subcenters to avoid duplication and may consult in the design of standard reports to be offered by the center and its subcenters.
(r) Coordinate with the Office of Planning and Research Environmental Data Center for the purposes of ensuring consistency and compatibility of data products, improving public access to data, ensuring the consistent interpretation of data, and avoiding duplication of functions.
(s) (1) Determine those census tracts that are to be designated census tracts
based on data from the five-year American Community Survey (ACS). The census tracts that are within the highest quartile for both civilian unemployment and poverty statistics, as determined in paragraphs (2) and (3), shall be determined to be designated census tracts as described in paragraph (7) of subdivision (b) of Section 17053.73, and paragraph (7) of subdivision (b) of Section 23626 of the Revenue and Taxation Code.
(2) To determine the census tracts that are within the highest quartile of census tracts with the highest civilian unemployment, the census tracts shall be sorted by the respective civilian unemployment rate of each in ascending order, or from the lowest (0 percent) to the highest (100 percent) according to the following:
(A) Census tracts without a civilian labor force shall be excluded.
(B) After
ordering the census tracts by the civilian unemployment rate of each, the census tracts shall be divided into four equal groups or quartiles as follows:
(i) The first quartile shall represent the lowest fourth of the census tracts (the lowest 25 percent, inclusive).
(ii) The second quartile shall represent the second fourth (tracts greater than 25 percent up to 50 percent, inclusive).
(iii) The third quartile shall represent the third fourth (tracts greater than 50 percent up to 75 percent, inclusive).
(iv) The fourth quartile shall represent the fourth fourth (tracts greater than 75 percent up to 100 percent, inclusive).
(C) The last or highest quartile shall represent the top 25 percent
of the census tracts with the highest civilian unemployment rates.
(3) To determine the census tracts that are within the quartile of census tracts with the highest poverty, the census tracts shall be sorted by the respective percentage of population below poverty of each in ascending order, or from the lowest (0 percent) to the highest (100 percent) according to the following:
(A) Consistent with poverty statistics in the ACS, which adhere to the standards specified by the federal Office of Management and Budget in Statistical Policy Directive 14, the poverty thresholds as specified by the United States Census Bureau shall be used to determine those individuals below poverty.
(B) To determine those individuals below poverty, different thresholds, as specified by the United States Census Bureau, shall be applied to
families, people living alone, or people living with nonrelatives (unrelated individuals).
(C) If a family’s total income is less than the dollar value of the appropriate threshold, then that family and every individual in it shall be considered to be below poverty.
(D) If an unrelated individual’s total income is less than the appropriate threshold, then that individual shall be considered to be below poverty.
(E) Poverty status shall be determined for all people except institutionalized people, people in military group quarters, people in college dormitories, and unrelated individuals under 15 years of age.
(F) Census tracts that do not have a population for whom poverty status is determined shall be excluded.
(G) After ordering the census tracts by the respective percent below poverty of each, the census tracts shall be divided into four equal quartiles as follows:
(i) The first quartile shall represent the lowest fourth of the census tracts (the lowest 25 percent, inclusive).
(ii) The second quartile shall represent the second fourth (tracts greater than 25 percent up to 50 percent, inclusive).
(iii) The third quartile shall represent the third fourth (tracts greater than 50 percent up to 75 percent, inclusive).
(iv) The fourth quartile shall represent the fourth fourth (tracts greater than 75 percent up to 100 percent, inclusive).
(H) The last or highest quartile shall represent the top 25 percent of the census tracts with the highest percentage of population below poverty.
(t) (1) Determine those census tracts that are within the lowest quartile of census tracts with the lowest civilian unemployment and poverty based on data from the five-year ACS. The census tracts that are within the lowest quartile for both civilian unemployment and poverty statistics, as determined in paragraphs (2) and (3) of subdivision (s), shall be determined to be census tracts within the lowest quartile of census tracts with the lowest civilian unemployment and poverty, as applied in subparagraph (A) of paragraph (8) of subdivision (b) of Section 17053.73 and Section 23626 of the Revenue and Taxation Code.
(2) Based on the quartiles developed pursuant to paragraph (2) of subdivision (s), the
first or lowest quartile shall represent the bottom 25 percent of the census tracts with the lowest civilian unemployment rates.
(3) Based on the quartiles developed pursuant to paragraph (3) of subdivision (s), the first or lowest quartile shall represent the bottom 25 percent of the census tracts with the lowest percentage of population below poverty.
(Amended by Stats. 2019, Ch. 29, Sec. 93. (SB 82) Effective June 27, 2019.)
Notwithstanding subdivision (g) of Section 1798.24 of the Civil Code, data collected, received, or prepared by the Demographic Research Unit for purposes specified in Section 13073.5 that contains personal information, as defined by subdivision (a) of Section 1798.3 of the Civil Code, shall be exempt from disclosure under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1).
(Amended by Stats. 2021, Ch. 615, Sec. 179. (AB 474) Effective January 1, 2022. Operative January 1, 2023, pursuant to Sec. 463 of Stats. 2021, Ch. 615.)
Notwithstanding any other provision of law, any revision, subsequent to the first revision, of the annual provisional county population estimates, made by the Department of Finance, shall not be the basis for a change in the amount of state funds received by local agencies or funds owed or paid by local agencies to the state.
(Added by Stats. 1969, Ch. 1013.)
(a) When authorized or required by the Legislature in the Budget Act, the Department of Finance may exercise control over the adoption of regulations as provided in this section. The Legislature shall not authorize or require the Department of Finance in the Budget Act to review and approve regulations adopted by state agencies except:
(1) Regulations adopted by the Department of Social Services which add to the cost of any public assistance programs as these are defined in Section 10061 of the Welfare and Institutions Code.
(2) Regulations adopted by a state agency which would have the effect of increasing expenditures from the Health Care Deposit Fund under the Medical Assistance Program.
The Department of Finance shall limit its review of a regulation under this section to making a determination as to whether sufficient funds are available to fund the added program expenditures which would be incurred if the regulation were adopted. In making the determination concerning the sufficiency of funds to meet the costs of the regulation, the Director of Finance shall consider the amount of the costs which would be added to the program or the increased expenditures from the Health Care Deposit Fund for the fiscal year during which the costs or expenditures would be incurred, the effect such a change would have on the expenditure limitations established in the Budget Act for that year, and the extent to which the regulation
constitutes a deviation from the program requirements, the assumptions, and the estimates which were the basis for establishing the expenditure limitations in the Budget Act.
(b) The Department of Finance shall issue written instructions to the state agencies which adopt regulations subject to the provisions of this section. The instructions shall include the data requirements, methods of estimating costs or expenditures, and the narrative explanation which the department requires in order to review regulations which it is authorized or required to review. The instructions shall also include an explanation of the department’s review procedures and the methods the department uses in making decisions concerning the sufficiency of funds to pay for added program costs or increased expenditures.
(c) The Department of Finance shall complete the review of any regulation subject to the
provisions of this section within 15 working days following its receipt. If the department fails to act within that period of time, the regulation shall be deemed approved by the department.
(Added by Stats. 1982, Ch. 649, Sec. 1.)
The director shall visit or cause to be visited from time to time every public institution maintained in whole or in part by State appropriations, to ascertain their condition, and their wants and requirements.
(Added by Stats. 1945, Ch. 112.)
Whenever a nonprofit corporation or foundation enters into a contract with a state educational institution, maintained in whole or in part by state appropriation, under the terms of which services are to be performed for the state educational institution, the books and records of such nonprofit corporation or foundation, insofar as they relate to revenues and expenditures applicable to the contract, may be audited by the Department of Finance.
(Added by Stats. 1951, Ch. 813.)
The director may exempt from his approval or from approval of the department any transactions involving not more than twenty-five thousand dollars ($25,000) for which such approval is required by statute whenever, in his judgment, such exemption is appropriate and in the best interests of the state. Written notice of exemptions shall be given to the Controller.
(Amended by Stats. 1976, Ch. 494.)
With the consent of the Legislature, the director may make application for and accept loans of funds made available by the federal government or a federal department or agency to aid in financing the costs of engineering and architectural surveys, designs, plans, working drawings, specifications, or other action preliminary to and in preparation for the construction of public works authorized by the Legislature. Repayment of such loans shall be pursuant to appropriation by the Legislature.
(Added by Stats. 1963, Ch. 1862.)
Such amount as may be necessary to pay monthly the amount required for liquidation of the investment, with interest at the rate agreed upon between the parties, in any agreements entered into between the State Department of the California Highway Patrol and the Governor and any other state agency, pursuant to the provisions of Section 14681 of the Government Code, is hereby appropriated each fiscal year from the State Treasury. Of the amount so appropriated, so much thereof as is necessary to liquidate the investment in the building for the State Department of the California Highway Patrol is payable from the Motor Vehicle Fund, and the balance necessary for such liquidation is
payable from the General Fund. The money herein appropriated shall be allotted to the State Department of the California Highway Patrol and the Governor by the Director of Finance for support in such amounts as he may determine to be necessary, and shall become available only if the Department of Finance certifies to the State Controller that the amount required monthly to liquidate the investment, with interest at the rate agreed upon, has not been included in the Budget Act for such fiscal year for support of the State Department of the California Highway Patrol for such portion of the building which has been provided for its use, or has not been included in the Budget Act for any fiscal year for such portion of the building which has been provided for the use of the Office of Civil Defense.
(Added by Stats. 1965, Ch. 371.)
Such amount as may be necessary to pay monthly the amount required for liquidation of the investment, with interest at the rate agreed upon between the parties, in any agreements entered into between the State Department of Motor Vehicles or the State Department of California Highway Patrol, and any other state agency, pursuant to the provisions of Sections 14679 and 14682 of the Government Code, is hereby appropriated each fiscal year from the Motor Vehicle Fund in the State Treasury. The money herein appropriated shall be allotted to the State Department of California Highway Patrol or to the State Department of Motor Vehicles by the Director of Finance for support in such
amounts as he may determine to be necessary, and shall become available only if the Department of Finance certifies to the State Controller that the amount required monthly to liquidate the investment, with interest at the rate agreed upon, has not been included in the Budget Act for such fiscal year for support of said departments.
(Added by Stats. 1965, Ch. 371.)