BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SB 423|
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UNFINISHED BUSINESS
Bill No: SB 423
Author: Wyland (R)
Amended: 6/30/11
Vote: 21
SENATE EDUCATION COMMITTEE : 9-0, 5/11/11
AYES: Lowenthal, Runner, Alquist, Blakeslee, Hancock,
Huff, Liu, Price, Vargas
NO VOTE RECORDED: Simitian, Vacancy
SENATE FLOOR : 37-0, 5/19/11
AYES: Alquist, Anderson, Berryhill, Blakeslee, Cannella,
Corbett, Correa, De Le�n, DeSaulnier, Dutton, Emmerson,
Evans, Fuller, Gaines, Hancock, Harman, Huff, Kehoe, La
Malfa, Leno, Lieu, Liu, Lowenthal, Negrete McLeod,
Padilla, Pavley, Price, Rubio, Runner, Simitian,
Steinberg, Strickland, Vargas, Walters, Wolk, Wright,
Wyland
NO VOTE RECORDED: Calderon, Hernandez, Yee
ASSEMBLY FLOOR : 74-0, 7/7/11 (Consent) - See last page for
vote
SUBJECT : School facilities: local bond measures
SOURCE : California League of Bond Oversight Committees
Howard Jarvis Taxpayers Association
DIGEST : This bill requires that the constitutionally
required annual independent financial and performance
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audits of the use of school facility construction bonds for
each preceding fiscal year, as required by initiative
measure (Proposition 39, November 2000), be submitted to
the citizens' oversight committee, also established by
Proposition 39, by March 31 of each year.
Assembly Amendments made minor clarifying changes.
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 approval of 55 percent 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. Current law provides that a Citizen's Oversight
Committee be established to, among other things, receive
and review copies of the constitutionally required annual
independent financial and performance audits.
Current law, established by SB 1473 (Wyland), Chapter 294,
Statutes of 2010, 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.
This bill requires that the annual independent financial
and performance audits for each preceding fiscal year,
required as a result of the passage of Proposition 39, be
submitted to the citizens' oversight committee by March 31
of each year.
Comments
Need for the Bill . While Proposition 39 and the Education
Code currently require annual financial and performance
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audits for funds connected to bonds issued under the
provisions of Proposition 39, the statute currently only
requires that these audits be done at some point during the
calendar year.
Prior/Related Legislation
SB 1473 (Wyland), Chapter 294, Statutes of 2010, required
that the constitutionally required performance audit
established by initiative measure (Proposition 39, November
2000) be conducted in accordance with Government Auditing
Standards issued by the Comptroller General of the United
States.
SB 911 (de Leon) was recently amended to provide, among
other things, that if a citizen's oversight committee
appointed in accordance with Proposition 39 fails to issue
a report on expenditures to taxpayers at least once a year
(as required by law), no bond proceeds may be expended
until a report is issues. (In Assembly Local Government
Committee)
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 7/7/11))
California League of bond Oversight Committees (co-source)
Howard Jarvis Taxpayers Association (co-source)
ARGUMENTS IN SUPPORT : According to the author's office,
the establishment of an annual due date of March 31 would
allow districts to take corrective action regarding any
necessary changes to bond spending prior to the summer
construction season. In addition, the author's office
contends that the timing of this audit would logically
follow completion of other audits required of the community
colleges and school districts (generally due December 15)
and would be flexible enough to meet both the districts and
the citizens' oversight committee.
ASSEMBLY FLOOR : 74-0, 7/7/11 (Consent)
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall,
Bill Berryhill, Block, Blumenfield, Bonilla, Bradford,
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Brownley, Buchanan, Butler, Charles Calderon, Campos,
Carter, Cedillo, Chesbro, Conway, Cook, Dickinson,
Donnelly, Feuer, Fletcher, Fong, Fuentes, Furutani, Beth
Gaines, Garrick, Gatto, Gordon, Grove, Hagman, Halderman,
Hall, Harkey, Hayashi, Roger Hern�ndez, Hill, Huber,
Hueso, Huffman, Jeffries, Jones, Knight, Lara, Bonnie
Lowenthal, Ma, Mansoor, Mendoza, Miller, Mitchell,
Monning, Morrell, Nestande, Norby, Olsen, Pan, Perea, V.
Manuel P�rez, Portantino, Silva, Skinner, Smyth, Solorio,
Swanson, Torres, Valadao, Wagner, Wieckowski, Williams,
Yamada, John A. P�rez
NO VOTE RECORDED: Davis, Eng, Galgiani, Gorell, Logue,
Nielsen
CPM:cm 7/8/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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