BILL NUMBER: AB 1377	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Swanson

                        FEBRUARY 27, 2009

   An act to add Section 41020.9 to the Education Code, relating to
school districts.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1377, as introduced, Swanson. School districts: state
receivership: audits.
   Existing law requires the Superintendent of Public Instruction to
assume all the rights, duties, and powers of the governing board of
specified school districts in order to ensure the return to the
district of fiscal solvency. Existing law also requires each county
superintendent of schools to provide for an audit of all funds under
his or her jurisdiction and control, not later than the first day of
May of each fiscal year, and the governing board of each local
educational agency to provide for an audit of the books and accounts
of the local educational agency.
   This bill would provide that, if the Superintendent is required to
assume control of a school district, and the Controller, or his or
her designee, is required to cause an audit to be conducted of the
books and accounts of the district instead of the annual audit
described above, the Superintendent shall allow the district an
appropriate period of time in which to address the audit findings
before penalties are assessed against the district for any
discrepancies that are discovered by the audit.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 41020.9 is added to the Education Code, to
read:
   41020.9.  Notwithstanding any other provision of law, if the
Superintendent is required to assume control of a school district in
order to ensure the return to the district of fiscal solvency and the
Controller, or his or her designee, causes an audit to be conducted
of the books and accounts of the district, instead of the audit
required by Section 41020, the district Superintendent shall allow
the shall an appropriate period of time in which to address the audit
findings before penalties are assessed for any discrepancies that
are discovered by the audit.