Finance Proposes Modernizing SLA Reporting and Repealing Outdated Audit Distribution Rule
August 05, 2026 | Select Committee on Wildfire Prevention, Select Committees, California State Assembly, House, Legislative, California
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The subcommittee’s second agenda item reviewed proposed trailer language to update audit distribution and SLA reporting requirements.
Jennifer Arbus and Zach Stacy of the Department of Finance presented two statutory changes: repeal Government Code §13296 (an audit distribution rule enacted in 1945 that Finance says is no longer relevant because audit reports are publicly posted) and repeal/reenact Government Code §§13400–13407 to modernize the State Leadership Accountability Act (SLA), reorganize definitions and responsibilities, change reporting frequency and adjust report due dates to align with the state fiscal year.
The proposal would change SLA reporting frequency from biannual to annual, eliminate six‑month follow‑up reports, and move a report due date from December 31 to July 31. Finance officials said the change reflects modern practice and alignment with federal/state best practices and would reduce redundancy for reporting entities. Finance acknowledged that noncompliance currently leads to public posting of noncompliers rather than criminal penalties being invoked.
Why it matters: the proposed trailer language affects how departments report risk and audit findings to the executive and legislative branches and may speed or streamline statewide risk monitoring.
Jennifer Arbus and Zach Stacy of the Department of Finance presented two statutory changes: repeal Government Code §13296 (an audit distribution rule enacted in 1945 that Finance says is no longer relevant because audit reports are publicly posted) and repeal/reenact Government Code §§13400–13407 to modernize the State Leadership Accountability Act (SLA), reorganize definitions and responsibilities, change reporting frequency and adjust report due dates to align with the state fiscal year.
The proposal would change SLA reporting frequency from biannual to annual, eliminate six‑month follow‑up reports, and move a report due date from December 31 to July 31. Finance officials said the change reflects modern practice and alignment with federal/state best practices and would reduce redundancy for reporting entities. Finance acknowledged that noncompliance currently leads to public posting of noncompliers rather than criminal penalties being invoked.
Why it matters: the proposed trailer language affects how departments report risk and audit findings to the executive and legislative branches and may speed or streamline statewide risk monitoring.
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