Appendix B – Law Excerpts

Government Code

26909 Audit of special purpose districts; reports; costs

(a) The county auditor shall either make of contract with a certified public accountant or public accountant to make an annual audit of the accounts and records of special purpose district within the county for which an audit by a certified public accountant or public accountant is not otherwise provided. In each case, the minimum requirements of the audit shall be prescribed by the Controller and shall conform with generally accepted auditing standards.

(b) Where an audit of a district’s accounts and records is made by a certified public accountant or public accountant,, the minimum requirements of the audit shall be prescribed by the Controller and shall conform with generally accepted auditing standards, and a report thereof shall be filed with the Controller and the county auditor of the county in which the district is located.

(c) Any costs incurred by the county auditor, including contracts with, or employment of, certified accountants or public accountants, in making an audit of every special purpose district pursuant to this section shall be borne by the district and shall be a charge against any unencumbered funds of the district available for the purpose.

(e) The county controller, or ex officio county controller, shall effect this section in those counties having a county controller or ex officio county controller.

A special district may, by unanimous request of the governing board of the special district, with the unanimous approval of the board of supervisors, replace the annual special audit with a biennial audit covering a two-year period or, if the district’s annual budget does not exceed

87100 Public Officials; state and local; financial interest

"No public official at any level of state or local government shall make, participate in the making or in any way attempt to use his official position to influence a government decision in which he knows or has reason to know he has a financial interest."

87103 Financial interest in decision by a public official

"A public official has a financial interest in a decision within the meaning of Section 87100 if it is reasonably foreseeable that the decision will have a material financial effect, distinguishable from its affect on the public in general, on the official, a member of his or her immediate family, or on any of the following:

(d) Any business entity in which the public official is a director, officer, partner, trustee, employee, or holds any position of management."

Penal Codes

916 Choice of officers; rules of proceedings

"Each grand jury shall choose its officers, except the foreman, and shall determine its rules of proceeding."

925 County officers, departments or functions; operations, accounts, records; investigations and reports

"The grand jury shall investigate and report on the operations, accounts, and records of officers, departments, or functions of the county including those operations, accounts, and records of any special legislative district or other district within the county."

925(a) Cities and joint powers agencies; examination of books and records; investigation and report; recommendations

"The grand jury may at any time examine the books and records of any incorporated city or joint powers agency located in the county. In addition to any other investigative powers granted in this chapter, the grand jury may investigate and report upon the operations, accounts, and records of the officers, departments, functions, and the method of performing the duties of any such city or joint powers agency and make any such recommendations as it may deem proper and fit."

926 Experts and assistants: employment; compensation; auditors and appraisers employed to examine books

"(a) If in the judgement of the grand jury, the services of one or more experts are necessary for any purpose under Sections 925, 925(a), 928, 933.1, and 933.5 or any of them, the grand jury may employ one or more experts, at an agreed compensation, to be first approved by the court. If, in the judgement of the grand jury, the services of assistants to such experts are required, the grand jury may employ such assistants, at a compensation to be approved by the to be agreed upon and approved by the court. Expenditures for services of experts and assistants for the purpose of Section 933.5 shall not exceed the sum of thirty thousand dollars ($30,000) annually, unless such expenditures shall be approved by the board of supervisors."

928 Needs of county officers; report

"Every grand jury may investigate and report upon the needs of all county officers in the county, including the abolition or creation of offices and equipment for, or the method or system of performing the duties of, the several offices. Such investigation and report shall be conducted selectively each year. The grand jury shall cause a copy of such report to be transmitted to each member of the board of supervisors of the county."

933 (c) Findings and recommendations; comments of the board of supervisors; reports of elected officers; filing…

"No later than 90 days after the grand jury submits it final report on the operation of any public agency subject to its reviewing authority, the governing body of the public agency shall comment to the presiding judge of the superior court on the finding and recommendations pertaining to the matters under the control of the governing body, and every elected county officer or agency head for which the grand jury has responsibly pursuant to Section 914.1 shall report within 60 days to the presiding judge of the superior court, with an informational copy sent to the board of supervisors, on the findings and recommendations pertaining to matters under the control of that county officer or agency head and any agency or agencies which that officer or agency head supervises or controls. In any city and county, the mayor shall comment on the findings and recommendations. All such comments shall forthwith be submitted to the presiding judge of the court that impaneled the grand jury. A copy of all responses to grand jury reports shall be placed on file with the clerk of the public agency and the office of the county clerk, or the mayor when applicable, and shall remain on file in those offices. One copy shall be placed on file with the applicable grand jury final report by, and in control of the currently impaneled grand jury, where it shall be maintained for a minimum of five years."

933.5 Special purpose assessing or taxing district; local agency formation commission; examination of books and records; performance of duties

"The grand jury may at any time examine the books and records of any special-purpose assessing or taxing district located wholly or partly in the county or the local formation commission in the county, and, in addition to any other investigatory powers granted by the chapter, may investigate and report upon the method or system of performing the duties of the district or commission."

Brown Act

Closed Meetings

Substantial compliance with the Brown Act occurs if the following information is included on the agenda for a closed session about litigation:

"1. Conference with legal counsel regarding existing litigation

Name of case: (specify by reference to claimant’s name, names of parties, case number or claim number)

Or

Case name unspecified: (Specify whether disclosure would jeopardize service of process or existing settlement negotiations)

2. Conference with legal counsel regarding anticipated litigation

Significant exposure to litigation (Specify the number of cases)

If final action is taken in closed session, the legislative body generally must report the actions at the conclusion of the closed session."