SB 1204

Bill Subjects

Abstract

(1) The California Constitution limits the maximum amount of any ad valorem tax on real property to 1% of the full cash value of the property. The California Constitution states that the 1% limitation for ad valorem taxes does not apply to ad valorem taxes or special assessments to pay the interest and redemption charges on bonded indebtedness incurred by a school district, community college district, or county office of education for the construction, reconstruction, rehabilitation, or replacement of school facilities approved by 55% of the voters if the proposition includes specified accountability requirements. The accountability requirements include a requirement that the governing board of either the school district or community college district establish and appoint a citizens' oversight committee and conduct annual, independent performance and financial audits. Existing law requires the audits for each preceding fiscal year to be submitted by March 31 of each year to the citizens' oversight committee for its review. This bill would require the school district or community college district to also submit the performance and financial audits to the Controller and county superintendent of schools. The bill would require the Controller to post the audits on the Controller's Internet Web site. The bill would require the county superintendent of schools to include a review of the audits when reviewing other audits submitted by school districts under his or her jurisdiction, thereby imposing a state-mandated local program. (2) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.