BILL ANALYSIS Ó
-----------------------------------------------------------------
|SENATE RULES COMMITTEE | SB 581|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
-----------------------------------------------------------------
THIRD READING
Bill No: SB 581
Author: Wyland (R)
Amended: 4/8/13
Vote: 21
SENATE EDUCATION COMMITTEE : 9-0, 4/17/13
AYES: Liu, Wyland, Block, Correa, Hancock, Hueso, Huff,
Jackson, Monning
SUBJECT : School bonds: bond accountability
SOURCE : California League of Bond Oversight Committee
Howard Jarvis Taxpayer Association
DIGEST : This bill (1) requires a school district governing
board to provide the citizen's oversight committee (COC) a
response to any and all findings, recommendations, and concerns
addressed in the constitutionally required annual, independent
performance and financial audits under Proposition 39 within
three months of receiving the audits, and (2) requires
submission of a copy of the draft and final Proposition 39
audits for the preceding fiscal year to the COC at the same time
they are submitted to the school or community college district.
ANALYSIS : Article XI, Section 18 of the California
Constitution, as amended by voter initiative measure
(Proposition 39, November 2000) authorizes a school district,
community college district, or county office of education to
incur bond indebtedness for the construction, reconstruction,
rehabilitation, or replacement of school facilities, with the
CONTINUED
SB 581
Page
2
approval of 55% of the voters of the district or county.
Article XIII A provides that this vote threshold only applies
if, among other things, the local bond measure includes a
specific list of school projects to be funded and requires the
authorizing board to conduct annual, independent financial and
performance audits until all bond funds have been spent to
ensure they are used exclusively for the projects listed in the
measure. Existing law provides that a COC be established to,
among other things, receive and review copies of the
constitutionally required annual independent financial and
performance audits.
Existing law requires the governing board of the school
district, without expending bond funds, to provide the COC with
any necessary technical and administrative assistance and
sufficient resources to publicize the COC conclusions. All
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. The COC is required to
issue regular reports at least once a year, on its activities,
and minutes of the proceedings of the COC and all documents
received and reports issued are required to be a matter of
public record and to be made available on an Internet website
maintained by the governing board.
Existing law requires that the independent financial and
performance audits required by Proposition 39 be conducted in
accordance with the Government Auditing Standards issued by the
Comptroller General of the United States and be submitted by
March 31 each year.
This bill:
1. Requires a school district governing board to provide the COC
a response to any and all findings, recommendations, and
concerns addressed in the constitutionally required annual,
independent performance and financial audits under
Proposition 39 within three months of receiving the audits.
2. Requires submission of a copy of the draft and final
Proposition 39 audits for the preceding fiscal year to the
COC at the same time they are submitted to the school or
community college district.
CONTINUED
SB 581
Page
3
FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local:
No
SUPPORT : (Verified 4/18/13)
California League of Bond Oversight Committees (co-source)
Howard Jarvis Taxpayers Association (co-source)
CalTax
ARGUMENTS IN SUPPORT : According to the author's office, a
local bond oversight committee has struggled to keep track of
construction project spending from a $644 million construction
bond passed in the Sweetwater Union High School District
(District) in 2006. The author's office reports that the
District borrowed millions of dollars from the construction
funds over a three year period in order to pay for teacher
salaries and maintenance upkeeps. According to the author's
office, during this time the District did not respond to the
bond oversight committee concerns, findings and recommendations,
did not provide a financial report in 2012, and, though a model
form for reporting expenditures was collaboratively developed by
the committee and school District to ensure the committee could
understand and track expenditures, the District used a form that
bore no relation to that agreed upon. This bill allows for the
bond oversight committee to be better engaged in the audit
process by providing access to information with sufficient time
to conduct an appropriate analysis, allowing the oversight
committee to fulfill their role under Proposition 39.
PQ:d 4/23/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
**** END ****
CONTINUED