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

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

---

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

---

BILL NUMBER: SB 302	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 28, 2013
	AMENDED IN SENATE  MAY 8, 2013
	AMENDED IN SENATE  APRIL 1, 2013

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

                        FEBRUARY 15, 2013

   An act to amend  Sections   Section 
14501  and 14502.1  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. 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  . For these purposes, existing law
defines "compliance audit" as an audit that ascertains and verifies
whether or not specific funds provided have been properly disbursed
and expended and includes the verification of specific information
 .
   This bill would additionally require  compliance audits
and the audit guide   a   compliance audit
 to include  the verification of  cafeteria fund
expenditures.
   (2) 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.
   (3) 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.
   (4) 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.
   (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, 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.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: 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, or
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), (2), and (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 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 educational agencies, and the offices of county superintendents
of schools. The Controller, in consultation with the Department of
Finance, the department, and representatives of the California School
Boards Association, the California Association of School Business
Officials, the California County Superintendents Educational Services
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 Audit Appeals
Panel for review and possible amendment.
   (b) The audit guide and any supplement shall be adopted by the
Education 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 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
and 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 and 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 and 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.
    (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.   SEC. 2.   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. 4.   SEC. 3.   Section 38092 of the
Education Code is repealed.
   SEC. 5.   SEC. 4.   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. 6.   SEC. 5.   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. 7.   SEC. 6.   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. 8.   SEC. 7.   Section 38102 of the
Education Code is repealed.
   SEC. 9.   SEC. 8.   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. 10.   SEC. 9.   If the Commission
on State Mandates determines that this act contains 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.