New Law Allows State Controller to Set Fiscal Guidelines for Local Agencies

AB 1248, Assemblyman Ken Cooley’s (D-Rancho Cordova) transparency bill, was signed into law by Governor Brown on Wednesday.

The law requires the state controller to sit down with local agencies in order to develop control measures and auditing practices in an effort to prevent accounting errors and fraud.

According to the Legislative Counsel’s Digest, this bill would specifically “require the Controller, on or before January 1, 2015, to develop internal control guidelines applicable to a local agency.”

Bankrupt Stockton becomes a model for new state law

California has a new law that requires establishment of internal control standards aimed at preventing local government malfeasance and insolvency.

State Controller John Chiang, who sponsored the legislation, says it was shaped in part by what his audits of Stockton’s finances turned up as well as audits of other financially bereft city governments such as Bell, Hercules, and Montebello.

Calif. Assembly Select Committee Pursues Revitalizing Established California Communities

SACRAMENTO, Calif. /California Newswire/ — On Wednesday, Assemblyman Ken Cooley chaired the first hearing of the Assembly Select Committee on Community and Neighborhood Development. The ten member, bi-partisan committee heard from policy and administrative experts who spoke about the impacts of suburban sprawl on our metropolitan areas, and funding needs to help revitalize our aging communities.

California’s Brown Signs Law to Strengthen Local Fiscal Controls

California’s controller will develop fiscal controls for cities and counties to avert bankruptcies by detecting signs of financial trouble under a bill signed today by Governor Jerry Brown.

Audits of four cities, including bankrupt Stockton, revealed misuse of redevelopment and other restricted funds, poor financial reporting and mismanagement of state and federal grants, Controller John Chiang said in a statement.