Amended in Senate April 8, 2013

Amended in Senate April 1, 2013

Senate Bill No. 581

Introduced by Senator Wyland

February 22, 2013

An act to amend begin delete Section end delete begin insert Sections 15280 and end insert 15286 of the Education Code, relating to school bonds.

LEGISLATIVE COUNSEL’S DIGEST

SB 581, as amended, Wyland. School bonds: bond accountability.

The California Constitution limits the maximum amount of any ad valorem tax on real property to 1% of the full cash value of the property except for ad valorem taxes or assessments that pay the interest and redemption charges on bonded indebtedness incurred by a school district, community college district, or county office of education for the construction, rehabilitation, or replacement of school facilities approved by 55% of the voters if the proposition includes specified accountability requirements begin delete , including, but not limited to, end delete begin insert . These accountability requirements include end insert a requirement that the governing board of either the school district or community college district or county office of education conduct annual independent performance and financial audits. Existing law requires, by March 31 of each year, the annual, independent financial and performance audits for the preceding fiscal year to be submitted to a citizens’ oversight committee that is required to be established if a proposition is approved by the voters, as described above. begin insert Existing law requires, without expending bond funds, the governing board of the district to provide the citizens’ oversight committee with any necessary technical assistance and administrative assistance and sufficient resources to publicize the conclusions of the citizens’ oversight committee. end insert

This bill would begin delete require the annual, independent financial and performance audits for the preceding fiscal year to be electronically filed by the auditor with the State Allocation Board. The bill would also end delete require a copy of any draft of the required annual, independent financial and performance audits for the preceding fiscal year, and a copy of the audits themselves, to be submitted to the citizens’ oversight committee at the same time they are submitted to the school district or community college district. begin insert The bill would also require the governing board of the district to provide the citizens’ oversight committee with responses to any and all findings, recommendations, and concerns addressed in the annual, independent financial and performance audits within 3 months of receiving the audits. end insert

Vote: majority. Appropriation: no. Fiscal committee:  begin delete yes end delete begin insert no end insert . State-mandated local program: no.

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 15280 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

15280.  

(a)  begin insert (1) end insert begin insert   end insert The governing board of the district shall,
without expending bond funds, provide the citizens’ oversight
committee with any necessary technical assistance and shall
provide administrative assistance in furtherance of its purpose and
sufficient resources to publicize the conclusions of the citizens’
oversight committee.

begin insert

(2) The governing board of the district shall provide the citizens’
oversight committee with responses to any and all findings,
recommendations, and concerns addressed in the annual,
independent financial and performance audits required by
subparagraphs (C) and (D) of paragraph (3) of subdivision (b) of
Section 1 of Article XIII A of the California Constitution within
three months of receiving the audits.

end insert

(b) All begin insert citizens’ oversight end insert committee proceedings shall be open
to the public and notice to the public shall be provided in the same
manner as the proceedings of the governing board begin insert of the district end insert .
The citizens’ oversight committee shall issue regular reports on
the results of its activities. A report shall be issued at least once a
year. Minutes of the proceedings of the citizens’ oversight
committee and all documents received and reports issued shall be
a matter of public record and be made available on an Internet
website maintained by the governing board begin insert of the district end insert .

begin delete SECTION 1. end delete
begin insert SEC. 2. end insert   

Section 15286 of the Education Code is amended to
read:

15286.  

(a) Consistent with the provisions contained in
subparagraphs (C) and (D) of paragraph (3) of subdivision (b) of
Section 1 of Article XIII A of the California Constitution, the
required annual, independent financial and performance audits for
the preceding fiscal year shall be submitted to the citizens’
oversight committee established pursuant to Section 15278 by
March 31 of each year. These audits shall be conducted in
accordance with the Government Auditing Standards issued by
the Comptroller General of the United States for financial and
performance audits.

begin delete

(b) A copy of the required annual, independent financial and
performance audits for the preceding fiscal year shall be
electronically filed by the auditor with the State Allocation Board.

end delete begin delete

(c)

end delete

begin insert (b) end insert  Both of the following shall be submitted to the citizens’
oversight committee at the same time they are submitted to the
school district or community college district:

(1) A copy of any draft of the required annual, independent
financial and performance audits for the preceding fiscal year.

(2) A copy of the required annual, independent financial and
performance audits for the preceding fiscal year.