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. (a) Notwithstanding any other law, the Judicial Council may
regulate the budget and fiscal management of the trial courts. The
Judicial Council, in consultation with the Controller, shall maintain
appropriate regulations for recordkeeping and accounting by the
courts. The Judicial Council shall seek to ensure, by these
provisions, both of the following:
(1) That the fiscal affairs of the trial courts are managed
efficiently, effectively, and responsibly.
(2) That all moneys collected by the courts, including filing
fees, fines, forfeitures, and penalties, and all revenues and
expenditures relating to court operations are known.
The Judicial Council may delegate its authority under this
section, when appropriate, to the Administrative Director of the
Courts.
(b) Regulations, rules, and reporting requirements adopted
pursuant to this chapter shall be exempt from review and approval or
other processing by the Office of Administrative Law as provided for
in Chapter 3.5 (commencing with Section 11340) of Part 1 of Division
3 of Title 2.
(c) The Controller, at the request of the Legislature, may perform
and publish financial and fiscal compliance audits of the reports of
court revenues and expenditures. The Controller shall report the
results of these audits to the Legislature and the Judicial Council.
(d) The Judicial Council shall provide for the transmission of
summary information concerning court revenues and expenditures to the
Controller.
(e) The Judicial Council shall adopt rules to provide for
reasonable public access to budget allocation and expenditure
information at the state and local levels.
(f) The Judicial Council shall adopt rules ensuring that, upon
written request, the trial courts provide, in a timely manner,
information relating to the administration of the courts, including
financial information and other information that affects the wages,
hours, and working conditions of trial court employees.
(g) (1) The Judicial Council or its representatives may do any of
the following:
(A) Inspect, review, and perform comprehensive oversight and
analysis of court financial records wherever they may be located.
(B) Investigate allegations of financial impropriety or
mismanagement.
(2) The authority granted pursuant to this subdivision shall not
substitute for, or conflict with, the audits conducted pursuant to
subdivisions (h) and (i).
(h) (1) Commencing not earlier than July 1, 2011, and not later
than December 15, 2012, the entity contracted with pursuant to
subdivision (j) shall establish a pilot program to audit six trial
courts. That entity shall select the trial courts using the following
criteria:
(A) Two trial courts selected from counties with a population of
200,000 or less.
(B) Two trial courts selected from counties with a population
greater than 200,000 and less than 750,000.
(C) Two trial courts selected from counties with a population of
750,000 or greater.
The audits shall be performed in accordance with generally
accepted government auditing standards and shall determine the trial
court's compliance with governing statutes, rules, and regulations
relating to the revenues, expenditures, and fund balances of all
material and significant funds, including state General Fund funds,
funds generated from fees or fines, federal funds, grants, and any
other funds within the trial court's administration or control. The
audits required by this section shall be in addition to any audit
regularly conducted pursuant to any other provision of law.
(2) Based on the results of the pilot program audits described in
paragraph (1), the entity contracted with pursuant to subdivision (j)
shall, on or before December 15, 2013, commence an audit of the
trial courts, provided that every trial court is audited in the
manner prescribed by this section at least once every four years. The
audits shall be performed in accordance with generally accepted
government auditing standards and shall determine the trial court's
compliance with governing statutes, rules, and regulations relating
to the revenues, expenditures, and fund balances of all material and
significant funds, including state General Fund funds, funds
generated from fees or fines, federal funds, grants, or any other
funds within the trial court's administration or control. The audits
required by this paragraph shall be in addition to any audit
regularly conducted pursuant to any other provision of law.
(3) Notwithstanding Section 10231.5, the auditing entity shall
compile the trial court audit findings and report the results of
these audits to the Legislature, the Judicial Council, and the
Department of Finance no later than April 1 of each year. An audit
report shall not be considered final until the audited entity is
provided a reasonable opportunity to respond and the response is
included with, or incorporated into, the report.
(4) The reasonable and necessary contracted cost of the audit
conducted pursuant to this subdivision shall be paid from funds of
the local trial court being audited.
(i) (1) On or before December 15, 2013, and biennially thereafter,
the entity contracted with pursuant to subdivision (j) shall perform
an audit of the Administrative Office of the Courts in accordance
with generally accepted government auditing standards and shall
determine the Administrative Office of the Court's compliance with
governing statutes, rules, regulations, and policies relating to the
revenues, expenditures, and fund balances of all material and
significant funds under the administration, jurisdiction, or control
of the Administrative Office of the Courts.
(2) Notwithstanding Section 10231.5, the auditing entity shall
provide a copy of the final audit report of the Administrative Office
of the Courts to the Legislature, the Judicial Council, and the
Department of Finance upon issuance. An audit report shall not be
considered final until the audited entity is provided a reasonable
opportunity to respond and the response is included with, or
incorporated into, the report.
(3) Any reasonable and necessary contracted costs incurred by the
auditing entity pursuant to this subdivision shall be reimbursed by
the Administrative Office of the Courts.
(j) The Administrative Office of the Courts shall contract with
the Controller to perform the audits described in subdivisions (h)
and (i), unless either the Bureau of State Audits or the Department
of Finance demonstrates that it can perform the audits pursuant to
the same timeframes, scope, and methodology as the Controller for a
cost that is less than that proposed by the Controller. In that case,
the Administrative Office of the Courts may contract with the state
entity named in this subdivision that is most cost effective. The
Administrative Office of the Courts shall provide written
notification to the chairs of the Senate Committee on Budget and
Fiscal Review, the Assembly Committee on Budget, and the Senate and
Assembly Committees on Judiciary, if the Administrative Office of the
Courts contracts with an entity other than the Controller. The
contract period for any contract entered into pursuant to this
section shall not exceed four years from the date of commencement.
(k) A report submitted pursuant to subdivision (h) or (i) shall be
submitted in compliance with Section 9795.