Bill > AB964

This bill amends Section 17558.5 of the Government Code, which governs how the California State Controller handles reimbursement claims from local agencies and school districts for state-mandated costs. Currently, the Controller can initiate an audit of a claim within three years of its filing and must complete the audit within two years of starting it. The bill clarifies and modifies the audit and claim adjustment process by requiring the Controller to notify claimants in writing within 30 days of any claim adjustments resulting from an audit, and specifying that remittance advices do not constitute such notice. Additionally, the bill gives local agencies and school districts the sole discretion to either offset reduced reimbursements from future unpaid claims or remit funds directly to the Controller. The language is slightly modified to more precisely define how unpaid reimbursement claims can be used for offsets, specifying that the Controller must determine sufficient unpaid claims exist. The bill maintains existing provisions about fraud and audit delays, and continues to set the interest rate for overpaid claims at the Pooled Money Investment Account rate. These changes aim to provide more clarity and flexibility in the state mandate reimbursement process.

Budget and Finance, Education, Government Affairs

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB964