Commission on State Mandates: state mandates.

Education

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Hadwick
Last action: 2026-02-02
Official status: From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.
Effective date: Not listed

Plain English Breakdown

Checked against official source text during the last sync.

Commission on State Mandates: Changes in Reimbursement Procedures

This law changes how the state notifies local agencies and school districts about adjustments to their reimbursement claims after an audit or review, and gives these entities more options for handling reduced reimbursements.

What This Bill Does

Requires the Controller to notify a claimant in writing within 30 days of any adjustment that results from an audit or review.
Allows local agencies and school districts to offset any reduced reimbursement at their discretion.
Permits local agencies and school districts to remit funds back to the Controller if they choose.

Who It Names or Affects

Local agencies
School districts

Terms To Know

Controller: The person in charge of managing California's finances and ensuring that state laws are followed regarding financial matters.
Claimant: A local agency or school district that has filed a claim for reimbursement from the state.

Limits and Unknowns

The bill does not specify what happens if a local agency or school district chooses to remit funds back to the Controller.
It is unclear how this change will affect the overall process of audits and reviews by the Controller.

Bill History

2026-02-02 California Legislative Information
From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.
2026-01-31 California Legislative Information
Died pursuant to Art. IV, Sec. 10(c) of the Constitution.
2025-05-23 California Legislative Information
In committee: Held under submission.
2025-05-14 California Legislative Information
In committee: Set, first hearing. Referred to APPR. suspense file.
2025-05-01 California Legislative Information
From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 9. Noes 0.) (April 30). Re-referred to Com. on APPR.
2025-04-24 California Legislative Information
Re-referred to Com. on ED.
2025-04-23 California Legislative Information
From committee chair, with author's amendments: Amend, and re-refer to Com. on ED. Read second time and amended.
2025-04-23 California Legislative Information
From committee: Do pass and re-refer to Com. on ED. (Ayes 10. Noes 0.) (April 23). Re-referred to Com. on ED.
2025-03-28 California Legislative Information
Re-referred to Com. on L. GOV.
2025-03-27 California Legislative Information
From committee chair, with author's amendments: Amend, and re-refer to Com. on L. GOV. Read second time and amended.
2025-03-10 California Legislative Information
Referred to Coms. on L. GOV. and ED.
2025-02-21 California Legislative Information
From printer. May be heard in committee March 23.
2025-02-20 California Legislative Information
Read first time. To print.

Official Summary Text

AB 964, as amended, Hadwick.
Commission on State Mandates: state mandates.
Existing law creates the Commission on State Mandates and establishes procedures for implementing the requirement in the California Constitution that the state reimburse local agencies and school districts for certain costs mandated by the state. Existing law makes a reimbursement claim for actual costs filed by a local agency or school district subject to the initiation of an audit by the Controller, and authorizes the Controller to make a field review of a claim after it has been submitted but before it has been reimbursed. Existing law requires the Controller to notify the claimant in writing within 30 days after issuance of a remittance advice of any adjustment to a claim for reimbursement that results from an audit or review.
This bill would, instead, require the Controller to notify the claimant in writing within 30 days of any
adjustment that results from an audit or review. The bill would also require the Controller to allow a local agency or school district, at the sole discretion of the local agency or school district, to offset any reduced reimbursement, as prescribed, or to remit funds to the Controller.

Current Bill Text

Read the full stored bill text

Download Bill PDF