Senate Committee Unanimously Approves Senator Roth’s Legislation Holding State Officials Accountable For Accurate Financial Reporting

The Senate Public Safety Committee unanimously approved Senator Richard D. Roth’s (D-Riverside) proposed new law to hold state officials accountable to provide accurate financial reporting and statements. 

Senator Roth’s proposed new law, Senate Bill 801, would require that any person responsible for auditing the accounts of a state agency who knowingly misrepresents any state financial or statistical reports be held criminally liable.

Senator Roth said, “Any person having the responsibility of managing money belonging to the people of California should fully be responsible for their work. The message to state officials is simple – if you lie about how much taxpayer money you have or where you have it, you face criminal and civil consequences.”

Last year it was discovered that the California State Parks and Recreation Department amassed a secret surplus of more than $20 million over 12 years. It was revealed last week that the California Department of Forestry and Fire Protection misreported
$3.6 million. This money was hidden and misreported at a time when the economic recession forced severe budget cuts to state programs affecting families and Californians in need.

Senator Roth added, “Public trust has been severely impacted by these two accounting scandals and we owe the taxpayers a commitment to ensure their money is being used appropriately.”

In both instances, required reporting documents were submitted to the state Department of Finance and money desperately needed for specific programs and the state’s general fund during the severe economic recession were misreported.  The Department of Finance has audited other departments and more than $200 million were hidden in one way or another to protect agencies facing state budget cuts.

Senate Bill 801 now goes to the Senate Appropriations Committee for consideration.