SB-992 • 2026

County auditors: special districts: annual audit exceptions.

Taxes

Passed Legislature

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

Sponsor: Niello
Last action: 2026-06-01
Official status: Referred to Com. on L. GOV.
Effective date: Not listed

Plain English Breakdown

The official source material does not provide information on whether county auditors can still appoint accountants after receiving less detailed financial reviews or other types of checks.

Changes to Special District Audits

This law removes a deadline for special districts to choose between an annual audit and less detailed financial reviews or other types of checks, and raises the revenue limit from $150,000 to $250,000 for using these alternatives.

What This Bill Does

Removes the January 1, 2027 deadline for special districts to choose between an annual audit and less detailed financial reviews or other types of checks.
Increases the revenue limit from $150,000 to $250,000 for special districts that can use a financial review instead of a full audit.

Who It Names or Affects

Special districts with annual revenues up to $250,000
County auditors who oversee these special districts

Terms To Know

special district: A local government agency that provides specific services within a defined area.
annual audit: A yearly check of financial records to ensure accuracy and compliance with laws.

Limits and Unknowns

The bill does not specify what happens after January 1, 2027 for districts that were previously using less detailed checks.
It is unclear how many special districts will be affected by the increased revenue cap of $250,000.

Bill History

2026-06-01 California Legislative Information
Referred to Com. on L. GOV.
2026-05-26 California Legislative Information
In Assembly. Read first time. Held at Desk.
2026-05-26 California Legislative Information
Read third time. Passed. (Ayes 38. Noes 0.) Ordered to the Assembly.
2026-04-30 California Legislative Information
Read second time. Ordered to third reading.
2026-04-29 California Legislative Information
From committee: Do pass. (Ayes 7. Noes 0.) (April 29).
2026-04-09 California Legislative Information
Set for hearing April 29.
2026-03-18 California Legislative Information
March 18 set for first hearing canceled at the request of author.
2026-03-05 California Legislative Information
Set for hearing March 18.
2026-02-18 California Legislative Information
Referred to Com. on L. GOV.
2026-02-09 California Legislative Information
From printer. May be acted upon on or after March 8.
2026-02-05 California Legislative Information
Introduced. Read first time. To Com. on RLS. for assignment. To print.

Official Summary Text

SB 992, as introduced, Niello.
County auditors: special districts: annual audit exceptions.
Existing law requires a county auditor to make or contract with a certified public accountant or public accountant to make an annual audit of the accounts and records of every special district within the county for which an audit is not otherwise provided, as specified. Existing law authorizes a special district to replace this annual audit with a financial review, or, until January 1, 2027, an agreed-upon procedures engagement or an annual financial compilation of the special district, if specified conditions are met, including that the special district’s annual revenues do not exceed $150,000. Until January 1, 2027, upon receipt of the financial review, agreed-upon procedures engagement, or financial compilation, existing law authorizes a county auditor to appoint a certified public accountant or a public accountant to conduct an audit of the special district, as specified.
This bill would remove the January 1, 2027,
repeal date referenced above, and would increase the revenue cap described above to $250,000.

Current Bill Text

Read the full stored bill text

Download Bill PDF