BILL NUMBER: SB 1473CHAPTERED BILL TEXT CHAPTER 294 FILED WITH SECRETARY OF STATE SEPTEMBER 24, 2010 APPROVED BY GOVERNOR SEPTEMBER 23, 2010 PASSED THE SENATE AUGUST 26, 2010 PASSED THE ASSEMBLY AUGUST 16, 2010 AMENDED IN ASSEMBLY AUGUST 9, 2010 AMENDED IN ASSEMBLY JUNE 23, 2010 AMENDED IN SENATE APRIL 28, 2010 AMENDED IN SENATE APRIL 12, 2010 AMENDED IN SENATE MARCH 25, 2010 INTRODUCED BY Senator Wyland FEBRUARY 19, 2010 An act to add Section 15286 to the Education Code, relating to school facilities. LEGISLATIVE COUNSEL'S DIGEST SB 1473, Wyland. School facilities bond proceeds: performance audits. 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 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 or the county office of education conduct an annual, independent performance audit to ensure that the funds are expended only on the specific projects listed in the proposition authorizing the sale of the bonds. This bill would require a financial and performance audit to be conducted in accordance with the Government Auditing Standards issued by the Comptroller General of the United States. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 15286 is added to the Education Code, to read: 15286. Consistent with the provisions contained in subparagraphs (C) and (D) of paragraph (3) of subdivision (b) of Section 1 of Article XIII A of the California Constitution, the required annual, independent financial and performance audits shall be conducted in accordance with the Government Auditing Standards issued by the Comptroller General of the United States for financial and performance audits.