BILL NUMBER: AB 2087	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Swanson

                        FEBRUARY 23, 2012

   An act to add Section 41344.7 to the Education Code, relating to
school districts.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2087, as introduced, Swanson. School districts: emergency
apportionments: audits.
   Existing law authorizes the governing board of a school district
to request an emergency apportionment under certain circumstances and
requires the school district, if it accepts the emergency
apportionment, to agree to specified conditions. Existing law
requires the Controller, or his or her designee, to cause an audit to
be conducted of the books and accounts for the school district for
the fiscal year in which the apportionments are disbursed and each
year thereafter until the Controller determines, in consultation with
the Superintendent of Public Instruction, that the school district
is financially solvent, but in no event earlier than one year
following the implementation of the required fiscal plan or later
than the time the apportionment made is repaid, including interest.
   This bill would provide that if an audit finds that a school
district has not complied with the conditions of apportionment that
the school district has 2 years from the date of the final audit
report to correct the deficiencies that led to the audit finding. The
bill would authorize the Education Audit Appeals Panel to waive or
reduce the reimbursement or penalty amount if specified
determinations are made, but would require the school district to
repay the reimbursement and penalty and waive the school district's
right to appeal if the deficiencies are not corrected within 2 years.
The bill would also provide that these provisions do not apply in
specified circumstances.
   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 41344.7 is added to the Education Code, to
read:
   41344.7.  (a) If an audit conducted by the Controller, or his or
her designee, pursuant to subdivision (d) of Section 41320.1, finds a
school district has not complied with the conditions of
apportionment, the school district shall have two years from the date
of the final audit report to correct the deficiencies that led to
the audit finding. The Education Audit Appeals Panel may waive or
reduce the reimbursement or penalty amount if the Controller, or his
or her designee, determines that the school district has taken the
appropriate corrective action. If, after two years, the school
district fails to correct the deficiencies that led to the audit
finding, based on the Controller's review and assessment, the school
district shall repay the reimbursement or penalty and waive its right
to appeal the audit finding pursuant to Section 41344.1.
   (b) This section does not apply to all of the following:
   (1) Audit findings, in any year, that are the result of
mathematical errors, clerical errors, or a failure to retain records
basic to the audit.
   (2) The first two audits performed pursuant to subdivision (d) of
Section 41320.1.
   (3) Audits conducted after the governing board of the school
district assumes full control over the school district.