Issue · Budget & Taxes

Budget & Taxes

Every budget & taxes bill, vote, and legislator stance in California, automatically classified by Maddy, our AI policy reader.

Total bills
198
2025-2026 Regular Session
Top supporter
Steve Padilla
97% support rate
Top opponent
Natasha Johnson
4% support rate
Ranked legislators
10
5 support · 5 oppose
Key legislators

Who's moving budget & taxes in California

Legislators moving budget & taxes in California
Legislator Party Stance Support rate Decisive votes
Steve Padilla
Steve Padilla Senate · District 18
D
Strong +
97% 69
Jesse Arreguín
Jesse Arreguín Senate · District 7
D
Strong +
97% 100
Susan Rubio
Susan Rubio Senate · District 22
D
Strong +
97% 65
Darsh Patel
Darsh Patel House · District 76
D
Strong +
97% 61
Esmeralda Soria
Esmeralda Soria House · District 27
D
Strong +
97% 61
Natasha Johnson
Natasha Johnson House · District 63
R
Strong −
4% 49
Kelly Seyarto
Kelly Seyarto Senate · District 32
R
Strong −
4% 114
Brian Jones
Brian Jones Senate · District 40
R
Strong −
5% 59
Stan Ellis
Stan Ellis House · District 32
R
Strong −
6% 72
Ali Macedo
Ali Macedo House · District 33
R
Strong −
6% 80
Showing 111–120 of 198 bills

All budget & taxes bills

signed · California · Senate Jun 25, 2026

SB 417: The Veterans and Affordable Housing Bond Act of 2026.

Under existing law, there are programs providing assistance for, among other things, emergency housing, multifamily housing, farmworker housing, home ownership for very low and low-income households, and downpayment assistance for first-time home buyers. Existing law also authorizes the issuance of bonds in specified amounts pursuant to the State General Obligation Bond Law and requires that proceeds from the sale of these bonds be used to finance various existing housing programs, capital outlay related to infill development, brownfield cleanup that promotes infill development, and housing-related parks. Existing law, the Veterans and Affordable Housing Bond Act of 2018, authorized, the issuance of bonds in the amount of $4,000,000,000 to finance various existing housing programs, as well as infill infrastructure financing and affordable housing matching grant programs, as well as financing for a specified program for farm, home, and mobilehome purchase assistance for veterans, pursuant to the State General Obligation Bond Law. This bill would enact the Veterans and Affordable Housing Bond Act of 2026, which, if adopted, would authorize the issuance of bonds in the amount of $11,250,000,000, pursuant to the State General Obligation Bond Law. Of the proceeds from the sale of these bonds, $10,000,000,000 would be used to finance programs to fund affordable rental housing and home ownership programs, including, among others, the Multifamily Housing Program, the CalHome Program, and the Joe Serna, Jr. Farmworker Housing Grant Program, and $1,250,000,000 would be used to provide additional funding for the above-described program for farm, home, and mobilehome purchase assistance for veterans, as provided. This bill would provide for submission of the bond act to the voters at the November 3, 2026, statewide general election, in accordance with specified law. This bill would declare that it is to take effect immediately as an urgency statute.
signed · California · Senate Jun 25, 2026

SB 623: Automobile accidents: civil actions: transportation network companies.

(1) Existing law provides that in an action for the breach of an obligation not arising from contract, the measure of damages, except as provided, is the amount that will compensate for all the detriment proximately caused thereby, whether it could have been anticipated or not. This bill, with respect to a civil case, claim, action, or arbitration against a network company, its subsidiary, or an app-based driver, as defined, arising from an automobile accident, would, except as specified, prohibit the maximum recovery of a plaintiff for damages for any medical expense for services rendered by a lien-based provider, as defined, from exceeding the 70th percentile of FAIR Health, Inc.'s billed charges, or the 70th percentile of a comparable commercially recognized billed charges database for the same or similar service in the applicable geographic area at the time the service was rendered. The bill would prohibit certain evidence from being introduced that exceeds the recoverable amount. This bill would provide that if a medical lien, as defined, receivable, or right to payment has been sold or otherwise transferred, the maximum recoverable medical expense damages shall not exceed the total consideration paid or payable in connection with the transaction to acquire the lien, receivable, or right to payment, as provided. The bill would require any agreement relating to the sale or transfer of a medical lien, receivable, or right to payment, and the consideration paid or payable therefor, to be discoverable, and would prohibit an undisclosed lien sale or transfer from being asserted against a defendant, insurer, settlement, judgment, or settlement proceeds. The bill would also require certain medical lien financial relationships and attorney referral information to be discoverable. This bill would make it unlawful for an attorney representing a plaintiff under a contingency fee agreement in a civil claim, action, or arbitration, as described above, to refer a client to a health care provider in which the attorney or a member of the attorney's immediate family has a direct ownership interest. The bill would also make it unlawful for an attorney to fee split or receive other specified compensation in connection with the furnishing of lien-based provider medical treatment for a plaintiff and would make it unlawful for an attorney or law firm to provide specified compensation for referrals of clients to lien-based providers for lien-based treatment. The bill would also make other actions related to the reduction of a medical lien unlawful, as specified. This bill would provide that these provisions are severable. (2) The Passenger Charter-party Carriers' Act defines a transportation network company as an organization, whether a corporation, partnership, sole proprietor, or other form, operating in California that provides prearranged transportation services for compensation using an online-enabled platform to connect passengers with drivers using a personal vehicle. Existing law requires a transportation network company to conduct, or have a third party conduct, a local and national criminal background check for each participating driver, as specified, and prohibits a transportation network company from contracting with, employing, or retaining a driver if the driver, among other things, is currently registered on the United States Department of Justice National Sex Offender Public website, has been convicted of any of certain terrorism-related or human trafficking felonies or a violent felony or, within the previous 7 years, has been convicted of any misdemeanor assault or battery, any domestic violence offense, driving under the influence of alcohol or drugs, or any of a specified list of felonies. A violation of the act is a misdemeanor punishable by a fine, imprisonment, or both a fine and imprisonment. This bill would additionally prohibit a transportation network company from contracting with, employing, or retaining a driver if the driver has been convicted of specified offenses or, within the previous 7 years, has been convicted of other specified offenses, including driving under the influence of an alcoholic beverage or drug. The bill would require the background check to be performed prior to the activation of a driver's account and once annually thereafter, as provided. By expanding the scope of a crime, the bill would impose a state-mandated local program. (3) Existing law, the Unruh Civil Rights Act, provides that all persons within the jurisdiction of this state are entitled to full and equal accommodations in all business establishments of every kind whatsoever, regardless of their sex, race, color, religion, ancestry, national origin, disability, medical condition, genetic information, marital status, sexual orientation, citizenship, primary language, or immigration status. This bill would provide that notwithstanding that act, a transportation network company or charter-party carrier of passengers, as defined, may allow a woman passenger on its online-enabled application or platform or a participating woman driver to indicate a preference to be matched with a woman driver or woman passenger, respectively, and facilitate passenger-driver matches based on such preferences. The bill would make these provisions apply retroactively, as provided. (4) 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 no reimbursement is required by this act for a specified reason.
passed · California · Senate Jun 24, 2026

SB 1265: California Alternative Energy and Advanced Transportation Financing Authority: GoGreen Program.

Under existing law, the purpose of the California Alternative Energy and Advanced Transportation Financing Authority Act is to advance the state's goals of reducing the levels of greenhouse gas emissions, increasing the deployment of sustainable and renewable energy sources, implementing measures that increase the efficiency of the use of energy, creating high quality employment opportunities, and lessening the state's dependence on fossil fuels and to that end to provide an alternative method of financing in providing and promoting the establishment of facilities utilizing alternative methods and sources of energy and facilities needed for the development and commercialization of advanced transportation technologies. Existing law establishes the California Alternative Energy and Advanced Transportation Financing Authority to carry out that purpose. Existing Public Utilities Commission decisions established the California Hub for Energy Efficiency Financing program, administered by the authority and funded through charges collected by specified electrical corporations and gas corporations from their ratepayers. This bill would require the authority to administer the GoGreen Program, previously known as the California Hub for Energy Efficiency Financing program, and would authorize the authority to use moneys collected from the ratepayers of electrical and gas corporations, as directed by the commission, and other available funding sources, consistent with the program's purposes. The bill would require the program to provide financing assistance to participating lenders to support residents in financing eligible energy efficiency and decarbonization measures at costs that are competitive with or below market rates. The bill would authorize the authority to receive, administer, and deploy additional moneys from federal, state, local, or private sources to support and expand the GoGreen Program, if those moneys are used in a manner consistent with the program's goals and the parameters of the funding source. The bill would create the GoGreen Program Fund in the State Treasury and would make all moneys in the fund available, upon appropriation by the Legislature, to the authority for expenditure, as provided.
signed · California · Assembly Jun 1, 2026

AB 1768: Transactions and use taxes: Counties of Contra Costa and Los Angeles.

Existing law authorizes various local governmental entities, subject to certain limitations and approval requirements, to levy a transactions and use tax for general or specific purposes, in accordance with the procedures and requirements set forth in the Transactions and Use Tax Law, including a requirement that the combined rate of all taxes that may be imposed in accordance with that law in any county not exceed 2%. This bill would authorize, until December 31, 2031, the County of Los Angeles, by an ordinance adopted by the county, to levy a tax pursuant to the Transactions and Use Tax Law at a rate not to exceed 0.5% for general and special purposes, subject to voter approval, as specified. The bill would also authorize, until December 31, 2031, the County of Contra Costa, by an ordinance adopted by the county, to levy a tax pursuant to the Transactions and Use Tax Law at a rate not to exceed 0.625% for general or specific purposes, subject to voter approval, as specified. The bill would authorize those taxes to exceed the 2% limit described above. This bill would make legislative findings and declarations as to the necessity of a special statute for the Counties of Contra Costa and Los Angeles. This bill would declare that it is to take effect immediately as an urgency statute.
in committee · California · Senate May 14, 2026

SB 1297: Regional wildfire partnerships.

Existing law establishes in the Department of Conservation the Regional Forest and Fire Capacity Program to support regional leadership to build local and regional capacity and develop, prioritize, and implement strategies and projects that create fire adapted communities and landscapes by improving ecosystem health, community wildfire preparedness, and fire resilience. Existing law requires the department, upon appropriation, among other things, to provide block grants to regional entities, as defined, to develop regional strategies and projects that create fire adapted communities and landscapes, as provided. Existing law authorizes regional entities to implement collaborative planning efforts with specified local entities and develop regional priority strategies that develop and support specified goals. This bill would revise and recast the Regional Forest and Fire Capacity Program. The bill would, among other things, authorize regional entities to (1) implement collaborative planning efforts with insurance companies, private and public utilities, and other private and public entities, and (2) develop regional priority strategies that develop and support fire-resistant homes, businesses, and public buildings, as provided. The bill would authorize a public regional entity, or an entity or entities designated by a public regional entity, to organize a regional wildfire partnership, defined as either a partnership between a public regional entity and specified private entities or a joint powers authority, as provided, in order to support the regional priority strategies. The bill would require a regional wildfire partnership to submit an annual report to the Department of Conservation, as provided, and would require the department to make the reports publicly available on its internet website. Existing law, the Bergeson-Peace Infrastructure and Economic Development Bank Act, establishes the California Infrastructure and Economic Development Bank (I-Bank) within the Governor's Office of Business and Economic Development and, among other things, authorizes the I-Bank to make loans, issue bonds, and provide financial assistance for various types of projects that qualify as economic development or public development facilities, as provided. This bill would authorize the I-Bank, in coordination with the Treasurer and the Department of Conservation, to issue revenue bonds to finance regional priority strategies developed by regional wildfire partnerships. The bill would establish the Regional Wildfire Partnership Revolving Fund (revolving fund) in the State Treasury, require moneys generated from the sale of bonds to be deposited in the revolving fund and used exclusively to support a regional wildfire partnership, and continuously appropriate moneys in the revolving fund to the I-Bank to support a regional wildfire partnership. By establishing a continuously appropriated fund, the bill would make an appropriation. The bill would require a regional wildfire partnership receiving funds from the I-Bank to enter into a repayment and participation agreement with the bank, specifying the funding commitments and reporting obligations. The bill would also authorize the I-Bank to provide technical assistance to regional wildfire partnerships.
died · California · Senate May 14, 2026

SB 1270: Wildfire mitigation program: financial assistance to counties.

Existing law, contingent upon an appropriation by the Legislature, requires the Office of Emergency Services to enter into a joint powers agreement with the Department of Forestry and Fire Protection to develop and administer a comprehensive wildfire mitigation program to, among other things, encourage cost-effective structure hardening and retrofitting to create fire-resistant homes, businesses, and public buildings. Existing law requires the joint powers authority to develop eligibility criteria for property owners, community organizations, and local governments who may receive financial assistance under the program. Existing law authorizes the joint powers authority to accept any federal funds granted, by act of Congress or by executive order, for any purposes related to the wildfire mitigation program. Existing law requires the joint powers authority to submit a report to the Legislature regarding the implementation of the wildfire mitigation program, including specified information. This bill would require the joint powers authority, upon appropriation for specified purposes, to provide financial assistance to the counties with the greatest combined risk of wildfire and social vulnerability based on the above-described eligibility criteria, as provided. The bill would also require certain federal funding, subject to specified conditions, to revert to the joint powers authority to fund home hardening in those counties. The bill would authorize the Office of Emergency Services to exercise maximum discretion to adjust its funding allocations and strategy to include more counties with specified approaches to home hardening, as provided. The bill would require the joint powers authority to additionally include an evaluation of the amount of additional funding that would be required to expand the wildfire mitigation program to those counties. This bill would make related findings and declarations.
passed · California · Senate May 11, 2026

SB 914: School accountability: audits: annual review.

Existing law requires the governing board of each local educational agency to either provide for an audit of the books and accounts of the local educational agency or make arrangements with the respective county superintendent of schools to provide for that auditing. Existing law requires the governing board of each local educational agency, by January 31 of each year, to review, at a public meeting as an item on the agenda, the annual audit of the local educational agency for the prior year, any audit exceptions identified in that audit, the recommendations or findings of any management letter issued by the auditor, and any description of correction or plans to correct any exceptions or management letter issue, as provided. This bill would change the date by which the governing board or body of each school district, educational joint powers authority, county superintendent of schools, or charter school is required to review the above-described annual audit of the local educational agency at a public meeting from January 31 of each year to instead be within 45 days after the issuance of an audit report. The bill would additionally require the governing board or body of the local educational agency, at the public meeting described above, to accept or reject the annual audit report. To the extent the bill would impose additional duties on local educational agencies or other local entities or officials, the bill would impose a state-mandated local program. 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 the statutory provisions noted above.
vetoed · California · Senate Mar 2, 2026

SB 326: Wildfire safety: fire protection building standards: defensible space requirements: The California Wildfire Mitigation Strategic Planning Act.

(1) Existing law establishes the Office of the State Fire Marshal in the Department of Forestry and Fire Protection and establishes the Deputy Director of Community Wildfire Preparedness and Mitigation within the office. Existing law makes the deputy director responsible for fire preparedness and mitigation missions of the department, as provided. Existing law requires the department to establish a local assistance grant program for fire prevention and home hardening education activities in California and specifies eligible activities under the local assistance grant program, as provided. Under existing law, funding for this local assistance grant program is contingent upon an appropriation by the Legislature. This bill would require the deputy director, on or before January 1, 2027, and every 3 years thereafter, in consultation with the state hazard mitigation officer, as defined, to prepare a Wildfire Risk Mitigation Planning Framework sufficient to quantitatively evaluate wildfire risk mitigation actions, as provided. The bill would require the framework to allow for geospatial evaluation and comparison of wildfire risk mitigation actions, as described, sufficient to direct coordinated mitigation efforts and long-term collaborative mitigation planning. The bill would require the deputy director to, each year the framework is completed, submit a copy of the framework to the Legislature, the Office of Energy Infrastructure Safety, and the Public Utilities Commission for review and consideration. This bill would require the deputy director, on or before April 1, 2027, and every 3 years thereafter, in consultation with the state hazard mitigation officer, to prepare a Wildfire Risk Baseline and Forecast for the state delineated on a statewide level and by county, as provided. The bill would require the forecast to include geographic specificity as determined by the deputy director to be sufficient to evaluate targeted wildfire risk mitigation actions, and to accomplish specific things, including establishing key risk metrics for wildfire risk for the state as a whole, by county, and by geographic location. The bill would require the deputy director to, each year the forecast is completed, submit a copy of the forecast to the Legislature, the Office of Energy Infrastructure Safety, and the Public Utilities Commission for review and consideration. This bill would require the deputy director, on or before August 1, 2027, in consultation with the state hazard mitigation officer, to prepare a Wildfire Mitigation Scenarios Report, to be updated annually. The bill would require the report to contain specified information, including identification of a reasonable range of possible scenarios for overall wildfire risk mitigation spending, as provided. This bill would require the deputy director to contract with a private consultant with special expertise in quantitative evaluation of specified wildfire risk and risk mitigation topics, as provided, to conduct quantitative wildfire risk modeling and for preparation of reports to accomplish the purposes of this act. This bill would, contingent upon an annual appropriation by the Legislature in the annual Budget Act, require the department, beginning in the 2029–30 fiscal year and extending to the 2044–45 fiscal year, inclusive, to make funds available through the local assistance grant program for programs to be implemented by local governments to achieve wildfire risk reduction in a cost-effective manner that is maximally consistent with the Wildfire Risk Mitigation Planning Framework. (2) Existing law requires the State Fire Marshal to identify areas in the state as moderate, high, and very high fire hazard severity zones based on consistent statewide criteria and the severity of the fire hazard. Existing law requires a person who owns, leases, controls, operates, or maintains (A) an occupied dwelling or structure within a very high fire hazard severity zone as designated by a local agency, or (B) a building or structure in the state responsibility area, to comply with specified defensible space requirements, including a requirement to maintain a defensible space of 100 feet from each side and from the front and rear of the structure, and a requirement to create an ember-resistant zone within 5 feet of the structure, based on regulations promulgated by the State Board of Forestry and Fire Protection, as provided. Executive Order No. N-18-25 directs the board to complete the formal rulemaking process applicable to these ember-resistant zone requirements no later than December 31, 2025. Under existing law, the requirement for an ember-resistant zone does not take effect for new structures until the board updates the applicable regulations and guidance document, as specified, and does not take effect for existing structures until 3 years after the effective date for the new structures. A violation of these requirements is a crime. This bill would move up the effective date of the ember-resistant zone requirement for certain existing structures in the state responsibility area, as provided. By expanding the scope of a crime, the bill would impose a state-mandated local program. This bill would revise and recast the local assistance grant program, described above, by, among other things, authorizing funding from the program to be used for projects to plan and carry out risk-targeted wildfire prevention work within a local government's jurisdiction, including costs necessary to use the above-described Wildfire Risk Mitigation Planning Framework to select, plan, and implement projects, and to implement activities consistent with early implementation of the ember-resistant zone rules, as provided. This bill would, upon an annual appropriation by the Legislature in the annual Budget Act, require the department, during the 2025–26 to 2028–29 fiscal years, inclusive, to make funds available through the local assistance grant program for programs to be implemented by local agencies to fund wildfire inspector positions sufficient to conduct inspections in very high fire hazard severity zones, in order to facilitate early implementation of the ember-resistant zone rules for existing commercial and residential structures, as provided. As a condition of receiving funds, the bill would require local agencies to adopt the ember-resistant zone regulations, applicable to very high fire hazard severity zones, as provided. (3) The California Building Standards Law requires any building standard adopted or proposed by state agencies to be submitted to, and approved or adopted by, the California Building Standards Commission before codification. Existing law requires the State Fire Marshal to propose, pursuant to that process, fire protection building standards applicable to buildings in fire hazard severity zones, as provided. Existing law also applies fire protection building standards adopted pursuant to this process to buildings located in urban wildland interface communities, defined as communities identified by the department pursuant to a specified process. From October 1, 2025, to June 1, 2031, inclusive, existing law prohibits proposed building standards affecting residential units from being considered, approved, or adopted by the California Building Standards Commission or any other adopting agency unless a specified condition is met, including that the building standards are amendments by the State Fire Marshal to building standards within the California Wildland-Urban Interface Code. This bill would, notwithstanding that prohibition, require the State Fire Marshal, on or before July 1, 2026, and pursuant to the California Building Standards Law process for state agencies proposing building standards, to propose to extend the applicability of the above-described fire protection building standards to all reconstruction of all buildings destroyed within the perimeters of wildfires that occur on or after July 1, 2026. (4) This bill would incorporate additional changes to Section 4291 of the Public Resources Code proposed by AB 1455 to be operative only if this bill and AB 1455 are enacted and this bill is enacted last. (5) 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 no reimbursement is required by this act for a specified reason.
vetoed · California · Senate Mar 2, 2026

SB 756: California Film Commission: motion picture tax credits: tracking and compliance program.

The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws, including numerous motion picture credits. Most recently, existing law, for taxable years beginning on or after January 1, 2025, allows a motion picture credit (motion picture credit 4.0) to be allocated by the California Film Commission on or after July 1, 2025, and before July 1, 2030, in an amount equal to 20% or 25% of qualified expenditures for the production of a qualified motion picture in this state. Existing law establishes the California Film Commission to administer the motion picture credits, to provide services necessary to increase filming in the state, and to implement specified programs related to the motion picture industry, including a program to promote media production in the state. This bill, upon appropriation by the Legislature, would require the California Film Commission to integrate additional data collection requirements, as specified, into the existing motion picture tax credit framework. The bill would require the commission, in consultation with industry stakeholders, payroll companies, and subject matter experts, to adopt definitions, reporting templates, and metrics for the additional data collection, and to develop protocols to reduce nonresponse rates. The bill would require the commission to address noncompliance with the data collection requirements through existing enforcement conditions and procedures of the motion picture tax credits, as provided. The bill would additionally require the commission to publish an annual compliance report summarizing the collected data, trends in diversity and economic impact, and recommendations for program improvements.
vetoed · California · Senate Mar 2, 2026

SB 414: School accountability: Office of the Education Inspector General: school financial and performance audits: charter school authorization, oversight, funding, operations, and networks: flex-based instruction: local educational agency contracting.

(1) Existing law requires county superintendents of schools to provide for an audit of all funds under their jurisdiction and control, and requires the governing board of each local educational agency to either provide for an audit of the books and accounts of the local educational agency or make arrangements with county superintendents of schools to provide for that auditing. Existing law requires the governing board of each school district and each office of the county superintendent of schools to include specified provisions in their contracts for audits and requires financial and compliance audits to be performed in accordance with specified standards. If the governing board of a school district has entered into a contract for an independent audit of its financial statements and the audited financial statements have not been filed with the county superintendent of schools on or before a specified due date, existing law authorizes the county superintendent of schools to, among other things, investigate the causes for the delay, as provided. This bill would expressly apply the above-described provisions to educational joint powers authorities and charter schools. The bill, among other things, would require those financial and compliance audits of local educational agencies to be conducted in accordance with specified filing deadlines and would revise requirements regarding which entity is responsible for providing an audit if a local educational agency has not provided for an audit of their respective books and accounts to include the Controller or a chartering authority, as provided. The bill would require, instead of authorize, a county superintendent of schools to investigate the causes for an above-described delay. The bill would require a local educational agency to post the local educational agency's annual financial and compliance audits on its internet website. Existing law requires the Controller to, among other things, on an annual basis, review and monitor the audit reports performed by independent auditors, determine whether audit reports are in conformance with specified reporting provisions, and notify each local educational agency, the responsible county superintendent of schools, the Superintendent, the Department of Finance, and the auditor regarding each determination. Existing law authorizes the Controller to perform quality control reviews of audit working papers to determine whether audits are performed in conformity with those specified standards. Existing law requires the Controller to annually report to the State Department of Education to apprise the department of school districts and offices of county superintendents of schools that are not in compliance with applicable statutes and regulations related to audits and requires the Controller to make recommendations as to what action should be taken by the department. The bill would require the Controller to, if applicable, notify the responsible chartering authority of each determination made, as referenced above, and would require notification to applicable entities to be made within 6 months of the audit report due date or the audit report issue date, whichever is later. The bill would require the Controller to establish and publish as part of the audit guide a weighted risk-based criteria that considers auditor experience and quality factors in determining which audit engagements are required to undergo a quality control review, as provided. The bill would require the Controller to report and provide recommendations to the Superintendent, instead of the department, of entities not in compliance with applicable statutes and regulations and would include educational joint powers authorities and charter schools as reported entities. The bill, commencing with the 2027–28 fiscal year Guide for Annual Audits of K–12 Local Education Agencies and State Compliance Reporting, would require the Controller to include, among other things, instructions requiring specified supplemental information and schedules in audit report components for local educational agency audits and an appendix with the Controller's desk review checklist that is used to determine whether audit reports are in conformance with specified reporting requirements, as provided. Under existing law, once the Controller or county superintendent of schools makes a final determination that specified audits performed by a certified public accountant or public accountant were not performed in substantial conformity with provisions of an audit guide, or that the audit reports do not conform to the provisions of an audit guide, the certified public accountant or public accountant is ineligible to conduct specified audits for 3 years. Existing law requires audits to be made by a certified public accountant or a public accountant, licensed by the California Board of Accountancy, and selected by a local educational agency, as applicable, from a directory of certified public accountants and public accountants deemed by the Controller as qualified to conduct audits of local educational agencies. In order to be added to, or remain on, the Controller's directory of certified public accountants and public accountants as described above, the bill would require, commencing with the 2027–28 fiscal year, and every 2 years thereafter, audit engagement partners and certified public accountants or public accountants responsible for local educational agency audits to, among other things, complete 16 hours of continuing education, demonstrate specified experience, and maintain compliance with the California Board of Accountancy requirements to keep applicable licenses in active status and good standing, as provided. The bill would also apply the continuing education requirement to audit staff who perform audit procedures of local educational agencies. The bill would extend the above-described rules related to the ineligibility of the certified public accountant or public accountant to audits of charter schools, as provided, and would additionally require the Controller to notify charter schools of those certified public accountants or public accountants determined to be ineligible to conduct audits, as provided. To the extent the bill would impose additional duties on local educational agencies or local officials, the bill would impose a state-mandated local program. (2) The bill, until January 1, 2034, would establish the Office of the Education Inspector General. The bill would provide for the appointment of the Education Inspector General by the Governor from a list of 3 qualified individuals nominated by the Joint Legislative Audit Committee, subject to confirmation by a majority of the Senate. The bill would require the Office of the Education Inspector General to, among other things, (A) conduct and supervise forensic audits and investigations relating to the programs and operations of the department, local educational agencies, and entities managing a charter school related to fraud, misappropriation of funds, and other illegal practices and (B) annually report to the appropriate policy committees of the Legislature on investigations and audits of the programs and operations of the department, local educational agencies, and entities managing a charter school. (3) Existing law requires the Controller, in consultation with the Department of Finance and the State Department of Education, to develop a plan to review and report on financial and compliance audits, and with representatives of other entities, to recommend the statements and other information to be included in the audit reports filed with the state by local educational agencies, and to propose the content of an audit guide. Existing law requires the audit guide to include specified content, as provided. This bill would require the Controller to consult with representatives of 2 additional specified entities and would require the audit guide to include a variety of additional content relating to audits of a local educational agency, as provided. (4) Existing law requires the Commission on Teacher Credentialing to establish standards for the issuance and renewal of credentials, certificates, and permits. Existing law requires the commission and the department to enter into a data sharing agreement for the department to provide the commission with educator assignment data necessary to annually identify educator misassignments and vacant positions at local educational agencies, as provided, as part of the State Assignment Accountability System. Existing law requires the commission to annually use data it receives from the department to produce an initial data file of vacant positions and educator assignments that do not have a clear match of credential to assignment and requires the commission to notify local educational agencies and monitoring authorities of the opportunity to access and review the initial data file of potential misassignments, as defined, and vacant positions. Existing law grants the commission the authority to make a final determination for all potential misassignments. Existing law requires, commencing with the 2020–21 school year, the commission to make annual educator assignment, misassignment, and vacant position data publicly available on its internet website. This bill would require teachers employed by a local educational agency and offering certain courses to hold the certificate, permit, or other document required by the commission for that assignment and be monitored. To the extent that this provision would create new duties for county superintendents of schools and local educational agencies, it would constitute a state-mandated local program. (5) Existing law requires state funding to be calculated and withheld from a school district or county office of education for any fiscal year in which a person renders service as a teacher in kindergarten or any of grades 1 to 12, inclusive, who does not have a valid certification document, as provided. This bill would apply the above-described provisions relating to the penalties for a person rendering services as a teacher who does not have a valid certification document to charter schools, as provided. (6) Existing law requires any entity that has a contract with a school district, county office of education, or charter school to ensure that any employee who interacts with pupils, outside of the immediate supervision and control of the pupil's parent or guardian or a school employee, has a valid criminal records summary, as specified. This bill would require an entity that has a contract with a local educational agency to instead ensure any employee who interacts with pupils has a valid criminal records summary without regard to whether the interaction takes place outside of the immediate supervision and control of the pupil's parent or guardian or a school employee. (7) The Charter Schools Act of 1992 requires each charter school to transmit a copy of its annual, independent financial audit report for the preceding fiscal year to the county office of education, the Controller, and the State Department of Education by December 15 of each year. The act authorizes the establishment, operation, and governance of charter schools. Existing law authorizes a charter school that has an approved charter to receive funding for nonclassroom-based instruction only if a determination for funding is made by the State Board of Education, as specified. The act prohibits, from January 1, 2020, to January 1, 2026, inclusive, the approval of a petition for the establishment of a new charter school offering nonclassroom-based instruction, as specified. This bill would extend that prohibition to instead continue through June 30, 2026. This bill would require the governing body of a charter school, by January 31, 2026, and by January 31 of each year thereafter, to review, at a public meeting as an item on the agenda, the annual audit of the charter school for the prior fiscal year, any audit exceptions identified in that audit, the recommendations or findings of any management letter issued by the auditor, and any description of correction or plans to correct any exceptions or management letter issue. By imposing additional requirements on charter schools, the bill would impose a state-mandated local program. The bill would replace the term "nonclassroom-based instruction" with "flex-based instruction" and define a "flex-based charter school" as a charter school that receives a determination for funding from the state board, as described above. The bill would also make numerous nonsubstantive and conforming changes. (8) Existing law requires each chartering authority to, among other things, monitor the fiscal condition of each charter school under its authority. Existing law authorizes the state board to, based upon the recommendation of the Superintendent of Public Instruction, take appropriate action when the state board finds, among other things, illegal or substantially improper use of charter school funds for the personal benefit of any officer, director, or fiduciary of the charter school, as provided. This bill would require that monitoring to also include a review of a sample of credit and debit card transactions of each charter school under its authority. The bill would require a chartering authority to provide the governing body of the charter school with feedback on any issues of concern identified in the review, as provided. If a chartering authority has reasonable suspicion that fraud, misappropriations of public funds, embezzlement, or other financial crimes, may be occurring, the bill would require the chartering authority to notify the State Department of Education and the county office of education. The bill would require the state board, or the state board's designee, to promptly investigate allegations of false claims or misappropriation of public funds by charter schools if there is probable cause to believe that those crimes have occurred. By imposing additional requirements on charter schools and local educational agencies acting as chartering authorities, the bill would impose a state-mandated local program. (9) Existing law, until January 1, 2026, sets out performance standards and procedures for the renewal of charter schools. Existing law sets out revised standards and procedures that are operative on and after January 1, 2026. This bill would extend, until July 1, 2028, the operation of the performance standards and procedures for the renewal of charter schools that would otherwise be inoperative on January 1, 2026, and would delay the operation of the revised standards and procedures until July 1, 2028. (10) Existing law provides for the apportionment of state funding to a charter school based on the average daily attendance that is generated by pupils engaged in nonclassroom-based instruction, as defined, in accordance with prescribed criteria and procedures. This bill would revise and recast those provisions by, among other things, requiring the determination of funding to be on a percentage basis and require the Superintendent to implement the determination for funding by reducing the charter school's reported average daily attendance by the percentage specified by the state board, as specified, and, commencing with the 2027–28 fiscal year, requiring the state board's Advisory Commission on Charter Schools to recommend to the state board the approval of a funding determination request submitted by a charter school consistent with specified conditions. Beginning with the 2027–28 school year, the bill would require the State Department of Education to annually develop a list that identifies networks of flex-based charter schools, as defined, based on data from the prior school year. (11) Existing law authorizes a school district, county office of education, or charter school to offer independent study to meet the educational needs of pupils when certain requirements are met, including, among others, that the local educational agency has adopted written policies, and implemented those policies, in accordance with rules and regulations adopted by the Superintendent, as specified. Existing law authorizes a local educational agency to claim apportionment credit for independent study only to the extent of the time value of pupil work products. This bill would require a local educational agency to maintain one complete pupil work product in each of 4 specified subjects for a pupil enrolled in independent study for each of 3 specified attendance periods, except as provided. (12) The bill would establish the Charter Authorizer Mentor Grant Program to be administered by the California Collaborative for Educational Excellence for the purpose of providing competitive grants to qualified applicants to provide technical assistance to eligible chartering authorities of charter schools, as defined. The bill would establish the Charter School Authorizer Grant Program within the department to provide grants to chartering authorities for certain increased costs associated with the responsibilities imposed by this bill, as provided. (13) The bill would require the governing board or body of a school district, educational joint powers authority, county office of education, or charter school, on or before July 1, 2027, to adopt a policy in order to evaluate and approve contractors. The bill would require the policy to include specified provisions, including, among other things, that a local educational agency is prohibited from (A) expending public funds for a contract unless the materials, programs, and activities are nonsectarian, (B) offering financial payments or gifts as an incentive for pupil enrollment, referral, or retention, and (C) purchasing or contracting for season passes or membership to amusement or theme parks, zoos, or family entertainment activities, except as provided. (14) Under the California Constitution, whenever the Legislature or a state agency mandates a new program or higher level of service on any local agency, the state is required to provide a subvention of funds to reimburse the local agency, with specified exceptions. Existing law, for purposes of this reimbursement, defines "local agency" to include any city, county, special district, authority, or other political subdivision of the state. This bill, for purposes of the above-described state reimbursement, would explicitly add any charter school to the definition of local agency. (15) This bill would provide that the provisions of this bill are severable. (16) 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 the statutory provisions noted above.
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