CA AB2676

Expands the definition of "special district" to include public entities formed under joint powers agreements that are separate from the parties to the agreement.

Authorizes the Controller to conduct audits or investigations of local agencies through January 1, 2020, if the Controller has documented findings that the agency is not complying with financial requirements in state law, grant agreements, local charters, or ordinances.

Increases financial forfeiture penalties for local agencies that fail to file reports within 20 days: doubles penalties for 2 consecutive years of non-compliance and triples penalties for 3 or more consecutive years.

Raises base forfeiture amounts to $2,500 (agencies under $100,000 revenue), $5,500 (agencies $100,000-$250,000), and $10,000 (agencies over $250,000).

Waives investigation costs if the Controller's investigation determines the agency's financial report did not contain materially false, incomplete, or incorrect information, and allows a payment program up to five years for remaining costs.