BILL ANALYSIS �
SB 584
Page 1
Date of Hearing: July 3, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
SB 584 (Wyland) - As Amended: April 15, 2013
Policy Committee: Education Vote:7-0
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill, on or before January 1, 2015, requires the State
Controller (SC), in consultation with the State Allocation Board
(SAB), the Department of Finance (DOF), and the State Department
of Education (SDE), to submit content related to the financial
and performance audits required for Proposition 39 (55% local
school bond passage) school facility projects to the Education
Audits Appeal Panel (EAAP) for inclusion in the audit guide
beginning in the 2015-16 fiscal year.
FISCAL EFFECT
Minor, absorbable cost to the SC to complete the requirements of
this measure.
COMMENTS
1)Background . Proposition 39, the Smaller Classes, Safer
Schools, and Financial Accountability Act, was passed by
voters in 2000. The proposition authorized school districts,
community college districts, and county offices of education
to pass a school facilities general obligation bond with a 55%
vote, provided the bond measure includes all of the following:
a) A requirement the bond funds can be used only for
construction, rehabilitation, equipping of school
facilities, or the acquisition or lease of real property
for school facilities.
SB 584
Page 2
b) A specific list of school projects to be funded and
certification the local governing board has evaluated
safety, class size reduction, and information technology
needs in developing the list.
c) A requirement the local governing board conduct annual,
independent financial and performance audits until all bond
funds have been spent to ensure that the bond funds have
been used only for the projects listed in the measure.
The constitutional amendment further required the audits for
the previous fiscal year be submitted to the citizen oversight
committee (established via AB 1908, 2000) by March 31 of each
year, as specified.
2)Purpose . According to the author, "While current California
law provides a detailed audit guide for non-Proposition 39
financial and compliance audits, there are no explicit
guidelines crafted specifically for constitutionally required
Proposition 39 independent financial and performance audits.
Much like the process for crafting non-Proposition 39
financial and compliance audit guidelines, which brings
together various state and local entities, it is important for
various education entities, including the [SAB], which
allocates Proposition 39 funds, to be on the same page when it
comes to preparing audits."
3)Related legislation .
a) SB 581 (Wyland), pending on the Senate Floor for
concurrence, requires a school district to provide the
citizen's oversight committee a response to any findings,
recommendations, and concerns raised in the Proposition 39
audits within three months of receiving audits, as
specified.
b) AB 1473 (Wyland), Chapter 294, Statutes of 2010,
requires the Proposition 39 audits to be conducted in
accordance with the Government Auditing Standards issued by
SB 584
Page 3
the Comptroller General of the United States, as specified.
Analysis Prepared by : Kimberly Rodriguez / APPR. / (916)
319-2081