Today's Law As Amended


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AB-139 County Superintendent of Schools: fiscal duties.(2001-2002)



As Amends the Law Today


SECTION 1.

 Section 1240 of the Education Code is amended to read:

1240.
 The county  superintendent of schools of each county  shall do all of the following:
(a) Superintend the schools of that  his or her  county.  
(b) Maintain responsibility for the fiscal oversight of each the  school district in that  his or her  county pursuant to the authority granted by this code.
(c) (1)  Visit and examine each school in the  his or her  county at reasonable intervals to observe its operation and to learn of its problems. The county superintendent of schools annually may  He or she may annually  present a report of the state of the schools in the  his or her  county, and of the county office of education,  his or her office,  including, but not limited to, observations from his or her observations while  visiting the schools, to the board of education and the board of supervisors of the  his or her  county.
(2) (A) (i) Commencing with the 2021–22 fiscal year, the Superintendent shall identify a list of schools, which shall include charter schools, for which the county superintendent, or a designee, shall inspect annually, and about which the county superintendent, or a designee, shall submit an annual report, at a regularly scheduled November board meeting, to the governing board of each school district under the jurisdiction of the county superintendent, the county board of education of that county, and the board of supervisors of that county, that describes the state of the schools in the county. The list established in the 2021–22 fiscal year shall also be used as the list established in the 2022–23 and 2023–24 fiscal years. The list of schools established pursuant to this section shall be reestablished in the 2024–25 fiscal year and again every three fiscal years thereafter. Each list shall be established in accordance with clause (ii), and shall be used for inspections beginning the following fiscal year.
(ii) The list of schools pursuant to clause (i) shall be compiled as follows:
(I) The Superintendent shall include on the list all schools that were most recently identified for comprehensive support and improvement and additional targeted support and improvement pursuant to the federal Every Student Succeeds Act (Public Law 114-95) or identified as low performing under the federal Elementary and Secondary Education Act of 1965 (Public Law 89-10), or any subsequent amendments to that act. For the list established in the 2021–22, 2022–23, and 2023–24 fiscal years, the Superintendent shall use the list of schools identified in the 2019–20 fiscal year for comprehensive support and improvement and for additional targeted support and improvement.
(II) The Superintendent shall include on the list all schools where 15 percent or more of the teachers are holders of a permit or certificate, such as a temporary or short-term permit, a substitute permit, a waiver, an intern credential, or any other authorization that is a lesser certification than a preliminary or clear California teaching credential. With the exception of alternative schools, all schools within a local educational agency that fail to meet the requirements of Sections 44258.9 and 60900 shall be included on the list for the applicable reporting cycle.
(III) The list of schools compiled pursuant to clause (i) shall exclude alternative schools within the meaning of subdivision (d) of Section 52052 and other schools accepted for participation in the Dashboard Alternative School Status program by the department.
(iii) The annual report shall include the determinations for each school made by the county superintendent, or the county superintendent’s designee, regarding the status of all of the circumstances listed in subparagraph (E) and teacher misassignments and teacher vacancies, as described in Section 44258.9, and the county superintendent, or the county superintendent’s designee, shall use a standardized template to report the circumstances listed in subparagraph (E) and teacher misassignments and teacher vacancies, as described in Section 44258.9, unless the current annual report being used by the county superintendent, or the county superintendent’s designee, already includes those details with the same level of specificity that is otherwise required by this subdivision.
(B) The county superintendent of the Counties of Alpine, Amador, Del Norte, Mariposa, Plumas, and Sierra, and the City and County of San Francisco shall contract with another county office of education or an independent auditor to conduct the required visits and make all reports required by this paragraph.
(C) On a quarterly basis, the county superintendent, or the county superintendent’s designee, shall report the results of the visits and reviews conducted that quarter to the governing board of the school district at a regularly scheduled meeting held in accordance with public notification requirements. The results of the visits and reviews shall include the determinations of the county superintendent, or the county superintendent’s designee, for each school regarding the status of all of the circumstances listed in subparagraph (E) and teacher misassignments and teacher vacancies, as described in Section 44258.9. If the county superintendent, or the county superintendent’s designee, conducts no visits or reviews in a quarter, the quarterly report shall report that fact.
(D) The visits made pursuant to this paragraph shall be conducted at least annually and shall meet the following criteria:
(i) Minimize disruption to the operation of the school.
(ii) Be performed by individuals who meet the requirements of Section 45125.1.
(iii) Consist of not less than 25 percent unannounced visits in each county. During unannounced visits in each county, the county superintendent shall not demand access to documents or specific school personnel. Unannounced visits shall only be used to observe the condition of school repair and maintenance, and the sufficiency of instructional materials, as defined by Section 60119.
(E) The priority objective of the visits made pursuant to this paragraph shall be to determine the status of all of the following circumstances:
(i) Sufficient textbooks, as defined in Section 60119 and as specified in subdivision (i).
(ii) The condition of a facility that poses an emergency or urgent threat to the health or safety of pupils or staff, as described in school district policy or paragraph (1) of subdivision (c) of Section 17592.72.
(iii) The accuracy of data reported on the school accountability report card with respect to the availability of sufficient textbooks and instructional materials, as defined by Section 60119, and the safety, cleanliness, and adequacy of school facilities, including good repair, as required by Sections 17014, 17032.5, 17070.75, and 17089.
(F) The county superintendent may make the status determinations described in subparagraph (E) during a single visit or multiple visits. In determining whether to make a single visit or multiple visits for this purpose, the county superintendent shall take into consideration factors such as cost-effectiveness, disruption to the schoolsite, deadlines, and the availability of qualified reviewers.
(G) If the county superintendent determines that the condition of a facility poses an emergency or urgent threat to the health or safety of pupils or staff as described in school district policy or paragraph (1) of subdivision (c) of Section 17592.72, or is not in good repair, as specified in subdivision (d) of Section 17002 and required by Sections 17014, 17032.5, 17070.75, and 17089, the county superintendent, among other things, may do any of the following:
(i) Return to the school to verify repairs.
(ii) Prepare a report that specifically identifies and documents the areas or instances of noncompliance if the school district has not provided evidence of successful repairs within 30 days of the visit of the county superintendent or, for major projects, has not provided evidence that the repairs will be conducted in a timely manner. The report may be provided to the governing board of the school district. If the report is provided to the school district, it shall be presented at a regularly scheduled meeting held in accordance with public notification requirements. The county superintendent shall post the report on the internet website of the county superintendent. The report shall be removed from the internet website when the county superintendent verifies the repairs have been completed.
(d) Distribute all laws, reports, circulars, instructions, and blanks that the county superintendent he or she  may receive for the use of the school officers.
(e) Annually, on or before September 15,  Annually  present a report to the governing board of the  school district board  and the Superintendent of Public Instruction  regarding the fiscal solvency of a any  school district with a disapproved budget, qualified interim certification, or a negative interim certification, or that is determined  has been determined at any time  to be in a position of fiscal uncertainty pursuant to Section 42127.6.
(f) Keep in the office of the county superintendent the  his or her office the  reports of the Superintendent. Superintendent of Public Instruction. 
(g) Keep a record of the official acts of the county superintendent  his or her official acts,  and of all the proceedings of the county board of education, including a record of the standing, in each study, of all applicants for certificates who have been examined, which shall be open to the inspection of an any  applicant or an authorized agent of the applicant. his or her authorized agent. 
(h) Enforce the course of study.
(i) (1)  Enforce the use of state textbooks and instructional materials and  of high school textbooks and instructional materials  regularly adopted by the proper authority in accordance with Section 51050. authority. 
(2) For purposes of this subdivision, sufficient textbooks or instructional materials has the same meaning as in subdivision (c) of Section 60119.
(3) (A) Commencing with the 2022–23 school year, if a school is identified as specified in subparagraph (A) of paragraph (2) of subdivision (c), the county superintendent specifically shall review that school at least annually as a priority school. A review conducted for purposes of this paragraph shall be completed by the fourth week of the school year.
(B) In order to facilitate the review of instructional materials before the fourth week of the school year, the county superintendent in a county with 200 or more schools that are identified as specified in subparagraph (A) of paragraph (2) of subdivision (c) may use a combination of visits and written surveys of teachers for the purpose of determining sufficiency of textbooks and instructional materials in accordance with subparagraph (A) of paragraph (1) of subdivision (a) of Section 60119 and as defined in subdivision (c) of Section 60119. If a county superintendent elects to conduct written surveys of teachers, the county superintendent shall visit the schools surveyed within the same academic year to verify the accuracy of the information reported on the surveys. If a county superintendent surveys teachers at a school in which the county superintendent has found sufficient textbooks and instructional materials for the previous two consecutive years and determines that the school does not have sufficient textbooks or instructional materials, the county superintendent shall, within 10 business days, provide a copy of the insufficiency report to the school district as set forth in paragraph (4).
(C) For purposes of this paragraph, “written surveys” may include paper and electronic or online surveys.
(4) If the county superintendent of schools determines that a school does not have sufficient textbooks or instructional materials in accordance with subparagraph (A) of paragraph (1) of subdivision (a) of Section 60119 and as defined by subdivision (c) of Section 60119, the county superintendent shall do all of the following:
(A) Prepare a report that specifically identifies and documents the areas or instances of noncompliance.
(B) Provide within five business days of the review, a copy of the report to the school district, as provided in subdivision (c), or, if applicable, provide a copy of the report to the school district within 10 business days pursuant to subparagraph (B) of paragraph (3).
(C) Provide the school district with the opportunity to remedy the deficiency. The county superintendent shall ensure that the deficiency is remedied no later than the second month of the school term.
(D) If the deficiency is not remedied as required pursuant to subparagraph (C), the county superintendent shall request the department to purchase the textbooks or instructional materials necessary to comply with the sufficiency requirement of this subdivision. If the department purchases textbooks or instructional materials for the school district, the department shall issue a public statement at the first regularly scheduled meeting of the state board occurring immediately after the department receives the request of the county superintendent and that meets the applicable public notice requirements, indicating that the district superintendent and the governing board of the school district failed to provide pupils with sufficient textbooks or instructional materials as required by this subdivision. Before purchasing the textbooks or instructional materials, the department shall consult with the school district to determine which textbooks or instructional materials to purchase. The amount of funds necessary for the purchase of the textbooks and materials is a loan to the school district receiving the textbooks or instructional materials. Unless the school district repays the amount owed based upon an agreed-upon repayment schedule with the Superintendent, the Superintendent shall notify the Controller and the Controller shall deduct an amount equal to the total amount used to purchase the textbooks and materials from the next principal apportionment of the school district or from another apportionment of state funds.
(5) If the county superintendent of schools determines that there are insufficient textbooks or instructional materials pursuant to a resolution received in accordance with subparagraph (A) of paragraph (2) of subdivision (a) of Section 60119 and as defined by subdivision (c) of Section 60119, or as a result of receiving a report of an unresolved complaint pursuant to subdivision (e) of Section 35186 or an audit exception pursuant to subdivision (i) of Section 41020, the county superintendent shall do both of the following:
(A) Provide the school district with the opportunity to remedy the deficiency. The county superintendent shall ensure that the deficiency is remedied no later than the second month of the school term.
(B) If the deficiency is not remedied as required pursuant to subparagraph (A), the county superintendent shall request the department to purchase the textbooks or instructional materials necessary to comply with the sufficiency requirement of this subdivision. If the department purchases the textbooks or instructional materials for the school district, the department shall issue a public statement at the first regularly scheduled meeting of the state board occurring immediately after the department receives the request of the county superintendent and that meets the applicable public notice requirements, indicating that the district superintendent and the governing board of the school district failed to provide pupils with sufficient textbooks or instructional materials as required by this subdivision. Before purchasing the textbooks or instructional materials, the department shall consult with the school district when determining which textbooks or instructional materials to purchase. The amount of funds necessary for the purchase of the textbooks and materials is a loan to the school district receiving the textbooks or instructional materials. Unless the school district repays the amount owed based upon an agreed-upon repayment schedule with the Superintendent, the Superintendent shall notify the Controller and the Controller shall deduct an amount equal to the total amount used to purchase the textbooks and materials from the next principal apportionment of the school district or from another apportionment of state funds.
(j) Preserve carefully all reports of school officers and teachers.
(k) Deliver to the county superintendent’s his or her  successor, at the close of the county superintendent’s his or her  official term, all records, books, documents, and papers belonging to the office, taking a receipt for them, which shall be filed with the department. State Department of Education. 
(l) (1) Submit two reports during the fiscal year to the county board of education in accordance with the following:
(A) The first report shall cover the financial and budgetary status of the county office of education for the period ending October 31. The second report shall cover the period ending January 31. Both reports shall be reviewed by the county board of education and approved by the county superintendent of schools  no later than 45 days after the close of the period being reported.  
(B) As part of each report, the county  superintendent shall certify in writing whether or not the county office of education is able to meet its financial obligations for the remainder of the fiscal year and, based on current forecasts, for two subsequent fiscal years. The certifications shall be classified as positive, qualified, or negative, pursuant to standards prescribed by the Superintendent, for  Superintendent of Public Instruction, for the  purposes of determining subsequent state agency actions pursuant to Section 1240.1. For purposes of this subdivision, a negative certification shall be assigned to a any  county office of education that, based upon current projections, will not  be unable to  meet its financial obligations for the remainder of the fiscal year or for the subsequent fiscal year. A qualified certification shall be assigned to a any  county office of education that may not meet its financial obligations for the current fiscal year or two subsequent fiscal years. A positive certification shall be assigned to a any  county office of education that will meet its financial obligations for the current fiscal year and subsequent two fiscal years. In accordance with those standards, the Superintendent of Public Instruction  may reclassify a any  certification. If a county office of education receives a negative certification, the Superintendent, or the Superintendent’s  Superintendent of Public Instruction, or his or her  designee, may exercise the authority set forth in subdivision (d) (c)  of Section 1630. Copies of each certification, and of the report containing that certification, shall be sent to the Superintendent of Public Instruction  at the time the certification is submitted to the county board of education. Copies of each qualified or negative certification certification,  and of  the report containing that certification certification,  shall be sent to the Controller at the time the certification is submitted to the county board of education.
(2) All reports and certifications required under this subdivision shall be in a format or on forms prescribed by the Superintendent,  Superintendent of Public Instruction,  and shall be based on standards and criteria for fiscal stability adopted by the state board  State Board of Education  pursuant to Section 33127. The reports and supporting data shall be made available by the county superintendent of schools  to an any  interested party upon request.
(3) This subdivision does not preclude the submission of additional budgetary or financial reports by the county  superintendent to the county board of education or to the Superintendent. Superintendent of Public Instruction.  
(4) The county superintendent of schools  is not responsible for the fiscal oversight of the community colleges in the county, however, the county superintendent he or she  may perform financial services on behalf of those community colleges.
(5) A county office of education having a negative or qualified certification, or classified as qualified or negative by the Superintendent, shall continue to be classified as qualified or negative until the next report required under this subdivision is filed.
(m) If  When so  requested, act as agent for the purchase of supplies for the city and high school districts of that  his or her  county.
(n) For purposes of Section 44421.5, report to the Commission on Teacher Credentialing the identity of a any  certificated person who knowingly and willingly reports false fiscal expenditure data relative to the conduct of an any  educational program. This requirement applies only if, in the course of his or her  normal duties, the county superintendent of schools  discovers information that gives the county superintendent him or her  reasonable cause to believe that false fiscal expenditure data relative to the conduct of an any  educational program has been reported.
(o) If any activities authorized pursuant to this section are found to be a state reimbursable mandate pursuant to Section 6 of Article XIII B of the California Constitution, funding provided for school districts and county offices of education pursuant to Sections 2574, 2575, 42238.02, and 42238.03 shall be used to directly offset any mandated costs.

SEC. 2.

 Section 1241.5 of the Education Code is amended to read:

1241.5.
 (a) At any time during a fiscal year, the county superintendent may audit the expenditures and internal controls of school districts he or she determines to be fiscally accountable, and shall conduct this audit in a timely and efficient manner. The county superintendent shall report the findings and recommendation to the governing board of the district within 45 days of completing the audit. The governing board shall, no later than 15 days after receipt of the report, notify the county superintendent of schools of its proposed actions on the county superintendent’s recommendation. Upon review of the governing board report, the county superintendent, at his or her discretion, may revoke the authority for the district to be fiscally accountable pursuant to Section 42650.
(b) At any time during a fiscal year, the county superintendent may review or audit the expenditures and internal controls of any school district in his or her county if he or she has reason to believe that fraud, misappropriation of funds, or other illegal fiscal practices have occurred that merit examination. The review or audit conducted by the county superintendent shall be focused on the alleged fraud, misappropriation of funds, or other illegal fiscal practices and shall be conducted in a timely and efficient manner. The county superintendent shall report the findings and recommendations to the governing board of the school district at a regularly scheduled school district board meeting within 45 days of completing the review, audit, or examination. The governing board of the school district shall, no later than 15 calendar days after receipt of the report, notify the county superintendent of its proposed actions on the county superintendent’s recommendations. Upon review of the school district governing board report, the county superintendent, at his or her discretion, and consistent with law, may disapprove an order for payment of funds consistent with Section 42638.
(c) At any time during a fiscal year, the county superintendent may review or audit the expenditures and internal controls of any charter school in his or her county if he or she has reason to believe that fraud, misappropriation of funds, or other illegal fiscal practices have occurred that merit examination. The review or audit conducted by the county superintendent shall be focused on the alleged fraud, misappropriation of funds, or other illegal fiscal practices and shall be conducted in a timely and efficient manner. The county superintendent shall report the findings and recommendations to the governing board of the charter school at a regularly scheduled meeting, and provide a copy of the information to the chartering authority of the charter school, within 45 days of completing the review, audit, or examination. The governing board of the charter school shall, no later than 15 calendar days after receipt of the report, notify the county superintendent and its chartering authority of its proposed response to the recommendations.

SEC. 3.

 Section 42127.6 of the Education Code is amended to read:

42127.6.
 (a) (1)  A school district shall provide the county superintendent of schools with a copy of a study, report, evaluation, or audit that was commissioned by the school district, the county superintendent, the Superintendent, and state control agencies and that contains evidence that the school district is showing fiscal distress under the standards and criteria adopted in Section 33127, or a report on the school district by the County Office Fiscal Crisis and Management Assistance Team. The county superintendent shall review and consider studies, reports, evaluations, or audits of the school district that contain evidence that the school district is demonstrating fiscal distress under the standards and criteria adopted in Section 33127 or that contain a finding by an external reviewer that the school district is at moderate or high risk of intervention based on the most common indicators of a school district needing intervention, as determined by the County Office Fiscal Crisis and Management Assistance Team. If these findings are made, the county superintendent of schools shall investigate the financial condition of the school district and determine if the school district may be unable to meet its financial obligations for the current or two subsequent fiscal years, or should receive a qualified or negative interim financial certification pursuant to Section 42131. If  If  at any time during the fiscal year the county superintendent of schools determines that a school district may be unable to meet its financial obligations for the current or two subsequent fiscal years or if a school district has a qualified or negative  certification pursuant to Section 42131, the county superintendent of schools shall provide a written notice of going concern determination to  he or she shall notify  the governing board of the school district and the Superintendent of Public Instruction in writing of that determination  and the basis for the determination. The notification shall include the assumptions used in making the determination and shall be available to the public. The county superintendent of schools shall report to the Superintendent on the financial condition of the school district and the county superintendent’s proposed remedial actions and shall do at least one of the following and all actions that are necessary  do any or all of the following, as necessary,  to ensure that the school  district meets its financial obligations:
(A) (1)  Assign a fiscal expert, paid for by the county superintendent of schools,  superintendent,  to advise the school  district on its financial problems.
(B) (2)  Conduct a study of the financial and budgetary conditions of the school  district that includes,  shall include,  but is  not be  limited to, a review of internal controls. If, in the course of this review, the county superintendent of schools  determines that the county superintendent’s his or her  office requires analytical assistance or expertise that is not available through the school district, the county superintendent of schools  district, he or she  may employ, on a short-term basis, with the approval of the Superintendent,  Superintendent of Public Instruction,  staff, including certified public accountants, to provide the assistance and expertise. The school district shall pay 75 percent and the county office of education shall pay 25 percent of these staff costs.
(C) (3)  Direct the school district to submit a financial projection of all fund and cash balances of the district as of June 30 of the current year and subsequent fiscal years as the county superintendent of schools  he or she  requires.
(D) (4)  Require the district to encumber all contracts and other obligations, to prepare appropriate cashflow cash-flow  analyses and monthly or quarterly budget revisions, and to appropriately record all receivables and payables.
(E) (5)  Direct the school  district to submit a proposal for addressing the fiscal conditions that resulted in the determination that the school  district may not be able to meet its financial obligations.
(F) (6)  Withhold compensation of the members of the governing board of the school district  and the school  district superintendent for failure to provide requested financial information. This action may be appealed to the Superintendent of Public Instruction  pursuant to subdivision (b).
(G) Assign the County Office Fiscal Crisis and Management Assistance Team to review teacher hiring practices, teacher retention rate, percentage of provision of highly qualified teachers, and the extent of teacher misassignment in the school district, to provide the school district with recommendations to streamline and improve the teacher hiring process, teacher retention rate, extent of teacher misassignment, and provision of highly qualified teachers, and to perform any or all of the duties prescribed in subparagraphs (A) to (C), inclusive, or to further review the causes that led to a finding of moderate or high risk of intervention pursuant to subdivision (a) and recommend corrective action. If a review team is assigned to a school district, the school district shall follow the recommendations of the team, unless the school district shows good cause for failure to do so. The County Office Fiscal Crisis and Management Assistance Team may not recommend an action that would abrogate a contract that governs employment.
(2)  Any contract entered into by a county superintendent of schools for the purposes of this subdivision is subject to the approval of the Superintendent. Superintendent of Public Instruction. 
(3) An employee of a school district who provides information regarding improper governmental activity, as defined in Section 44112, is entitled to the protection provided pursuant to Article 5 (commencing with Section 44110) of Chapter 1 of Part 25.
(b) Within five days of the county superintendent of schools  making the determination specified in subdivision (a), a school district may appeal the basis of the determination determination,  and any of the proposed actions that the county superintendent of schools  has indicated that the county superintendent of schools  he or she  will take to further examine the financial condition of the school  district. The Superintendent of Public Instruction  shall sustain or deny any or all parts of the appeal within 10 days.
(c) If, after taking the actions identified in subdivision (a), the county superintendent of schools  determines that a school  district will be unable to meet its financial obligations for the current or subsequent fiscal year, the county superintendent of schools  he or she  shall notify the school district  governing board of the school district, the superintendent of the school district, each recognized employee organization of the school district, each recognized parent organization of the school district, the  and the  Superintendent of Public Instruction, and the president of the state board or the president’s designee  Instruction  in writing of that determination and the basis for that determination. The notification shall include the assumptions used in making the determination. determination and shall be available to the public. 
(d) Within five days of the county superintendent of schools  making the determination specified in subdivision (c), a school district may appeal that determination to the Superintendent.  Superintendent of Public Instruction.  The Superintendent of Public Instruction  shall sustain or deny the appeal within 10 days. If the governing board of the school district appeals the determination, the county superintendent of schools may stay any action of the governing board of the school district that the county superintendent of schools  that he or she  determines is inconsistent with the ability of the school district  district’s ability  to meet its financial obligations for the current or subsequent fiscal year until resolution of the appeal by the Superintendent. Superintendent of Public Instruction. 
(e) If the appeal described in subdivision (d) is denied or not filed, or if the school  district has a negative certification pursuant to Section 42131, the county superintendent of schools,  superintendent,  in consultation with the Superintendent, shall take at least one of the actions described in paragraphs (1) to (5), inclusive, and all actions that are necessary to ensure that the school district meets its financial obligations and shall make a report to the Superintendent and the president of the state board or the president’s designee about the financial condition of the school district and remedial actions proposed by the county superintendent of schools. Superintendent of Public Instruction, shall, as necessary to enable the district to meet its financial obligation, do any or all of the following: 
(1) Develop and impose, in consultation with the Superintendent of Public Instruction  and the governing board of the school district,  school district governing board,  a budget revision that will enable the school  district to meet its financial obligations in the current fiscal year.
(2) Stay or rescind any action that is determined to be inconsistent with the ability of the school district  school district’s ability  to meet its obligations for the current or subsequent fiscal year. This includes any actions up to the point that the subsequent year’s budget is approved by the county superintendent of schools. The county superintendent of schools shall inform the school district  governing board of the school district  in writing of the county superintendent’s his or her  justification for any exercise of authority under this paragraph.
(3) Assist in developing, in consultation with the governing board of the school district, a multiyear  financial recovery  plan that will enable the school  district to meet its future obligations.
(4) Assist in developing, in consultation with the governing board of the school district, a budget for the subsequent fiscal year. If necessary, the county superintendent of schools shall continue to work with the governing board of the school district until the budget for the subsequent year is adopted by the governing board of the school district and approved by the county superintendent of schools. adopted. 
(5) As necessary, appoint a fiscal adviser to perform any or all of the duties prescribed by this section on behalf of the county superintendent of schools. his or her behalf. 
(f) Any action taken by the county superintendent of schools pursuant to paragraph (1) or (2) of subdivision (e) shall be accompanied by a notification that shall include the actions to be taken, the reasons for the actions, and the assumptions used to support the necessity for these actions.
(g) This section does not authorize the county superintendent of schools  to abrogate any provision of a collective bargaining agreement that was entered into by a school district before  prior to  the date that  upon which  the county superintendent of schools assumed authority pursuant to subdivision (e).
(h) The school district shall pay 75 percent and the county office of education shall pay 25 percent of the administrative expenses incurred pursuant to subdivision (e) or costs associated with improving the school  district’s financial management practices. The Superintendent shall develop of Public Instruction shall develop,  and distribute to affected school districts and county offices of education education,  advisory guidelines regarding the appropriate amount of administrative expenses charged pursuant to this subdivision.
(i) Notwithstanding Section 42647 or 42650 42650,  or any other provision of  law, a county treasurer shall not honor any warrant if, when,  pursuant to Sections 42127 to 42127.5, inclusive, or pursuant to this section, the county superintendent of schools  or the Superintendent,  Superintendent of Public Instruction,  as appropriate, has disapproved that warrant or the order on school district funds for which a warrant was prepared.
(j) Effective upon the certification of the election results for a newly organized school district pursuant to Section 35763, the county superintendent of schools may exercise any of the powers and duties of this section regarding the reorganized school district and the other affected school districts until the reorganized school district becomes effective for all purposes in accordance with Article 4 (commencing with Section 35530) of Chapter 3 of Part 21.
(k) The Superintendent shall monitor the efforts of a county office of education in exercising its authority under this section and may exercise any of that authority if the Superintendent finds that the actions of the county superintendent of schools are not effective in resolving the financial problems of the school district. Upon a decision to exercise the powers of the county superintendent of schools, the county superintendent of schools is relieved of those powers assumed by the Superintendent, and shall provide support and assistance to the Superintendent in the exercise of those powers. The Superintendent shall also request that the County Office Fiscal Crisis and Management Assistance Team identify the circumstances that led to the ineffectiveness of the county superintendent of schools in resolving the financial problems of the school district, and shall require the county office of education to demonstrate, in a manner determined by the Superintendent, remediation of those deficiencies. In addition to the actions taken by the county superintendent of schools, the Superintendent shall take further actions to ensure the long-term fiscal stability of the school district. The county office of education shall reimburse the Superintendent for all of the Superintendent’s costs in exercising the Superintendent’s authority under this subdivision. The Superintendent shall promptly notify the county superintendent of schools, the county board of education, the superintendent of the school district, the governing board of the school district, the appropriate policy and fiscal committees of each house of the Legislature, and the Department of Finance of the Superintendent’s decision to exercise the authority of the county superintendent of schools.

SEC. 4.

 Section 42638 of the Education Code is amended to read:

42638.
 (a) If the order is disapproved by the county superintendent of schools, it shall be returned to the governing board of the school district, except as otherwise provided in this code for the registration of warrants, with a statement of his or her reasons for disapproving the order.
(b) If the county superintendent determines that there is evidence that fraud or misappropriation of funds has occurred, the county superintendent shall notify the governing board of the school district, the State Controller, the Superintendent of Public Instruction, and the local district attorney.
SEC. 5.
 Notwithstanding Section 17610 of the Government Code, 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. If the statewide cost of the claim for reimbursement does not exceed one million dollars ($1,000,000), reimbursement shall be made from the State Mandates Claims Fund.