Bill Text: CA SB302 | 2013-2014 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: School cafeterias: cafeteria fund.

Spectrum: Partisan Bill (Republican 3-0)

Status: (Engrossed - Dead) 2013-08-30 - Set, second hearing. Held in committee and under submission. [SB302 Detail]

Download: California-2013-SB302-Amended.html

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BILL NUMBER: SB 302	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 1, 2013

INTRODUCED BY   Senator Cannella
    (   Coauthors:   Senators   Gaines
  and Huff   ) 

                        FEBRUARY 15, 2013

    An act to amend Section 47605 of the Education Code,
relating to charter schools.   An act to amend Sections
14501, 14502.1, and 35400 of, to add Sections 38087, 38096, 38097,
38098, and 38104 to, and to repeal Sections 38092 and 38102 of, the
Education Code, relating to school cafeterias. 


	LEGISLATIVE COUNSEL'S DIGEST


   SB 302, as amended, Cannella.  Charter schools. 
 School cafeterias: cafeteria fund.  
   (1) 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.  
   This bill would additionally require compliance audits and the
audit guide to include cafeteria fund expenditures.  
   (2) Existing law, until January 1, 2015, authorizes the Los
Angeles Unified School District Board of Education to appoint an
inspector general and authorizes the inspector general to conduct
audits and investigations, as specified, including administering
oaths or affirmations. Existing law makes it a misdemeanor,
punishable as specified, for a person, after the administration of an
oath or affirmation, to state or affirm as true any material matter
that he or she knows to be false.  
   This bill would extend that authority of the inspector general of
the Los Angeles Unified School District Board of Education until
January 1, 2025. By extending the operation of a crime, the bill
would impose a state-mandated local program.  
   (3) Existing law authorizes the governing board of any school
district to establish cafeterias in the schools under its
jurisdiction and authorizes the moneys received for the sale of food
or for any services performed by the cafeterias to be paid into the
county treasury to the credit of the cafeteria fund of the particular
school district. Existing law requires the cafeteria fund to be used
only for those expenditures authorized by the governing board of the
school district that are defined in the California School Accounting
Manual.  
   This bill would require the State Department of Education to
assess its food services workload and staffing needs for purposes of
carrying out the state's oversight responsibilities of cafeteria
funds and to request sufficient federal funding to hire the
appropriate number of staff based on that assessment. The bill would
require the department to prepare simplified guidelines that address
most of the common acceptable and unacceptable charges to cafeteria
funds. The bill would require the department to post on its Internet
Web site all enforcement actions for the misappropriation of
cafeteria funds. The bill would require a school district to maintain
all financial records related to its cafeteria fund for 5 years,
thereby imposing a state-mandated local program. The bill would
prohibit a school district from withholding from its food service
director any financial records involving school nutrition programs.
 
   (4) Existing law authorizes the governing board of any school
district with an average daily attendance of over 100,000 to allow as
an expenditure from its cafeteria fund a share of money agreed upon
pursuant to a contract that is generated from the joint sale of items
between the cafeteria and an associated student body student store.
 
   This bill would repeal that provision.  
   (5) Existing law authorizes the governing board of any school
district operating school cafeterias to establish and maintain a
cafeteria fund reserve for the purchase, lease, maintenance, or
replacement of cafeteria equipment, as specified.  
   This bill would repeal that provision.  
   (6) 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 with regard to certain mandates no
reimbursement is required by this act for a specified reason. 

   With regard to any other mandates, this bill would provide that,
if the Commission on State Mandates determines that the bill contains
costs so mandated by the state, reimbursement for those costs shall
be made pursuant to the statutory provisions noted above. 

   The Charter Schools Act of 1992 permits teachers and parents to
petition the governing board of a school district to approve a
charter school to operate independently from the existing school
district structure as a method of accomplishing, among other things,
improved pupil learning. Existing law establishes the procedures for
the submission of a charter school petition to the governing board of
a school district.  
   This bill would make various nonsubstantive changes to those
provisions. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program:  no
  yes  .


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 14501 of the  
Education Code   is amended to read: 
   14501.  (a) As used in this chapter, "financial and compliance
audit" shall be consistent with the definition provided in the
"Standards for Audits of Governmental Organizations, Programs,
Activities, and Functions" promulgated by the Comptroller General of
the United States. Financial and compliance audits conducted under
this chapter shall fulfill federal single audit requirements.
   (b) As used in this chapter, "compliance audit" means an audit
that ascertains and verifies whether or not funds provided through
apportionment, contract, or grant, either federal or state, have been
properly disbursed and expended as required by law or 
regulation   regulation,  or  both
  both,  and includes the verification of each of
the following:
   (1) The reporting requirements for the sufficiency of textbooks or
instructional materials, or both, as defined in Section 60119.
   (2) Teacher misassignments pursuant to Section 44258.9.
   (3) The accuracy of information reported on the School
Accountability Report Card required by Section 33126. The
requirements set forth in paragraphs  (1)  (1),
(2),  and  (2)   (4)  and this
paragraph shall be added to the audit guide requirements pursuant to
subdivision (b) of Section 14502.1. 
   (4) Cafeteria fund expenditures pursuant to Chapter 3 (commencing
with Section 38080) of Part 23 of Division 3 of Title 2. 
   SEC. 2.    Section 14502.1 of the  
Education Code   is amended to read: 
   14502.1.  (a) The Controller, in consultation with the Department
of Finance and the  State Department of Education, 
 department,  shall develop a plan to review and report on
financial and compliance audits. The plan shall commence with the
2003-04 fiscal year for audits of school districts, other local
 education   educational  agencies, and the
offices of county superintendents of schools. The Controller, in
consultation with the Department of Finance, the  State
Department of Education,   department,  and
representatives of the California School Boards Association, the
California Association of School Business Officials, the California
County Superintendents Educational Service Association, the
California Teachers Association,  and  the California
Society of Certified Public Accountants, shall recommend the
statements and other information to be included in the audit reports
filed with the state, and shall propose the content of an audit guide
to carry out the purposes of this chapter. A supplement to the audit
guide may be suggested in the audit year, following the above
process, to address issues resulting from new legislation in that
year that changes the conditions of apportionment. The proposed
content of the audit guide and any supplement to the audit guide
shall be submitted by the Controller to the Education  Audits
Appeal   Audit Appeals  Panel for review and
possible amendment.
   (b) The audit guide and any supplement shall be adopted by the
Education  Audits Appeal   Audit Appeals 
Panel pursuant to the rulemaking procedures of the Administrative
Procedure Act as set forth in Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code. It
is the intent of the Legislature that, for the 2003-04 fiscal year,
the audit guide be adopted by July 1 of the fiscal year to be
audited. A supplemental audit guide may be adopted to address
legislative changes to the conditions of apportionment. It is the
intent of the Legislature that supplements be adopted before March 1
of the audit year. Commencing with the 2004-05 fiscal year, and each
fiscal year thereafter, the audit guide shall be adopted by July 1 of
the fiscal year to be audited. A supplemental audit guide may be
adopted to address legislative changes to the conditions of
apportionment. The supplements shall be adopted before March 1 of the
audit year. To meet these goals and to ensure the accuracy of the
audit guide, the process for adopting emergency regulations set forth
in Section 11346.1 of the Government Code may be followed to adopt
the guide and supplemental audit guide. It is the intent of the
Legislature that once the audit guide has been adopted for a fiscal
year, as well as any supplement for that year, thereafter only
suggested changes to the audit guide and any additional supplements
need be adopted pursuant to the rulemaking procedures of the
Administrative Procedure Act. The audit guide and any supplement
shall be issued in booklet form and may be made available by any
means deemed appropriate. The Controller and consultants in the
development of the suggested audit guide and any supplement shall
work cooperatively on a timeline that will allow the 
education audits appeal panel   Education Audit Appeals
Panel  to meet the July 1 and March 1 issuance dates. Consistent
with current practices for development of the audit guide before the
2003-04 fiscal year, the Controller shall provide for the adoption
of procedures and timetables for the development of the suggested
audit guide, any supplement, and the format for additions, deletions,
and revisions.
   (c) For the audit of school districts or county offices of
education electing to take formal action pursuant to Sections
 22714, 22714.5, 44929,   22714  and
 44929.1,   44929,  the audit guide content
proposed by the Controller shall include, but not be limited to, the
following:
   (1) The number and type of positions vacated.
   (2) The age and service credit of the retirees receiving the
additional service credit provided by Sections 
22714,22714.5, 44929,   22714  and 
44929.1.  44929. 
   (3) A comparison of the salary and benefits of each retiree
receiving the additional service credit with the salary and benefits
of the replacement employee, if any.
   (4) The resulting retirement cost, including interest, if any, and
postretirement health care benefits costs, incurred by the employer.

   (d) The Controller shall annually prepare a cost analysis, based
on the information included in the audit reports for the prior fiscal
year, to determine the net savings or costs resulting from formal
actions taken by school districts and county offices of education
pursuant to Sections  22714, 22714.5, 44929, 
22714  and  44929.1,   44929  and
shall report the results of the cost analysis to the Governor and the
Legislature by April 1 of each year.
   (e) All costs incurred by the Controller to implement subdivision
(c) shall be absorbed by the Controller. 
   (f) On or before July 1, 2014, the Education Audit Appeals Panel
shall revise the audit guide to include clear and comprehensive
guidance on what school districts may or may not do with moneys in a
cafeteria fund pursuant to Chapter 3 (commencing with Section 38080)
of Part 23 of Division 3 of Title 2 and applicable federal law. 

    (f) 
    (g)  This section shall become operative July 1, 2003
and shall apply to the preparation of the audit guide for school
district audits commencing with the 2003-04 fiscal year.
   SEC. 3.    Section 35400 of the   Education
Code   is amended to read: 
   35400.  (a) The Los Angeles Unified School District's Inspector
General of the Office of the Inspector General is authorized to
conduct audits and investigations. The inspector general may subpoena
witnesses, administer oaths or affirmations, take testimony, and
compel the production of all information, documents, reports,
answers, records, accounts, papers, and other data and documentary
evidence deemed material and relevant and that reasonably relate to
the inquiry or investigation undertaken by the inspector general when
he or she has a reasonable suspicion that a law, regulation, rule,
or district policy has been violated or is being violated. For
purposes of this section, "reasonable suspicion" means that the
circumstances known or apparent to the inspector general include
specific and articulable facts causing him or her to suspect that a
material violation of law, regulation, rule, or district policy has
occurred or is occurring, and that the facts would cause a reasonable
officer in a like position to suspect that a material violation of a
law, regulation, rule, or district bulletin has occurred or is
occurring.
   (b) Subpoenas shall be served in the manner provided by law for
service of summons. Any subpoena issued pursuant to this section may
be subject to challenge pursuant to Chapter 2 (commencing with
Section 1985) of Title 3 of Part 4 of the Code of Civil Procedure.
   (c) For purposes of this section, Sections 11184, 11185, 11186,
11187, 11188, 11189, 11190, and 11191 of the Government Code shall
apply to the subpoenaing of witnesses and documents, reports,
answers, records, accounts, papers, and other data and documentary
evidence as if the investigation was being conducted by a state
department head, except that the applicable court for resolving
motions to compel or motions to quash shall be the Superior Court for
the County of Los Angeles.
   (d) Notwithstanding any other  provision of the 
law, any person who, after the administration of an oath or
affirmation pursuant to this section, states or affirms as true any
material matter that he or she knows to be false is guilty of a
misdemeanor punishable by imprisonment in a county jail not to exceed
six months or by a fine not to exceed five thousand dollars
($5,000), or by both that fine and imprisonment for the first
offense. Any subsequent violation shall be punishable by imprisonment
in a county jail not to exceed one year or by a fine not to exceed
ten thousand dollars ($10,000), or by both that fine and
imprisonment.
   (e) The inspector general shall submit an interim report to the
Legislature by July 1, 2000, annual interim reports by July 1 of each
succeeding year, and a final cumulative report by December 1, 2014,
on all of the following:
   (1) The use and effectiveness of the subpoena power authorized by
this section in the successful completion of the inspector general's
duties.
   (2) Any use of the subpoena power in which the issued subpoena was
quashed, including the basis for the court's order.
   (3) Any referral to the local district attorney or the Attorney
General where the district attorney or Attorney General declined to
investigate the matter further or declined to prosecute.
   (f) This article shall remain in effect only until January 1,
 2015,   2025,  and as of that date is
repealed, unless a later enacted statute, that is enacted before
January 1,  2015,   2025,  deletes or
extends that date.
   SEC. 4.    Section 38087 is added to the  
Education Code   , to read:  
   38087.  The department shall assess its food services workload and
staffing needs for purposes of carrying out the state's oversight
responsibilities in accordance with federal law and regulations
adopted by the United States Department of Agriculture and shall
request sufficient federal funding to hire the appropriate number of
staff based on that assessment. 
   SEC. 5.    Section 38092 of the   Education
Code   is repealed.  
   38092.  The governing board of any school district with an average
daily attendance of over 100,000 may allow as an expenditure from
the cafeteria fund or account a share of money agreed upon pursuant
to a contract, which is generated from the joint sale of items
between the cafeteria and an associated student body student store.
The expenditure must result from an agreement entered into by the
cafeteria and the associated student body in which pupils will
participate in the operation of the store. 
   SEC. 6.   Section 38096 is added to the  
Education Code   , to read:  
   38096.  (a) The department shall prepare simplified guidelines
that address most of the common acceptable and unacceptable charges
to cafeteria funds.
   (b) The department shall post on its Internet Web site all
enforcement actions for the misappropriation of cafeteria funds.

   SEC. 7.    Section 38097 is added to the  
Education Code   , to read:  
   38097.  A school district shall maintain all financial records
related to its cafeteria fund for five years. 
   SEC. 8.    Section 38098 is added to the  
Education Code   , to read:  
   38098.  This chapter does not authorize a school district to
charge a food service program any charge prohibited by state or
federal law or regulation or guidance. 
   SEC. 9.    Section 38102 of the   Education
Code   is repealed.  
   38102.  The governing board of any school district operating
school cafeterias may establish and maintain a cafeteria fund reserve
for the purchase, lease, maintenance, or replacement of cafeteria
equipment, to be known as the cafeteria equipment reserve. The funds
for this reserve are to be derived from the sales of food in the
school cafeterias in an amount to be determined by the governing
board and may be accumulated from year to year until expended for
this purpose. Funds in the cafeteria equipment reserve shall only be
used for the purchase, lease, maintenance, or replacement of
cafeteria equipment.
   Nothing in this section shall prohibit any school district from
replacing cafeteria equipment from district funds as provided in
Section 38100. 
   SEC. 10.    Section 38104 is added to the  
Education Code   , to read:  
   38104.  A school district shall not withhold from its food service
director any financial records involving school nutrition programs.

   SEC. 11.    No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution for certain costs that may be incurred by a local agency
or school district because, in that regard, this act creates a new
crime or infraction, eliminates a crime or infraction, or changes the
penalty for a crime or infraction, within the meaning of Section
17556 of the Government Code, or changes the definition of a crime
within the meaning of Section 6 of Article XIII B of the California
Constitution.  
   However, if the Commission on State Mandates determines that this
act contains other costs mandated by the state, reimbursement to
local agencies and school districts for those costs shall be made
pursuant to Part 7 (commencing with Section 17500) of Division 4 of
Title 2 of the Government Code.  All matter omitted in this
version of the bill appears in the bill as introduced in the Senate,
February 15, 2013. (JR11)