CaliforniaCalifornia gives local agencies choices for resolving reduced reimbursements
Local agencies and school districts would receive earlier written notice of reimbursement adjustments and could choose how some reduced payments are resolved.
What it does
The Controller must send written notice within 30 days after an audit or review adjustment to a local agency’s or school district’s reimbursement claim.
After a reduced reimbursement, a local agency or school district may choose to offset it against unpaid state-mandate claims or adjust claim payments under another state law.
Argument forLocal agencies and school districts may be able to settle reduced reimbursements by offsetting them against unpaid claims, avoiding a separate repayment.
Argument againstClaimants may owe interest on overpayments while reduced reimbursements are resolved, which could make repayment harder for local agencies and school districts.
More detail
The Controller must notify a claimant in writing within 30 days after adjusting a reimbursement claim based on an audit or review. This applies when the Controller adjusts a local agency’s or school district’s reimbursement claim after an audit or review. The 30-day period starts when the adjustment is made.
A local agency or school district may choose how the Controller handles a reduced reimbursement: offset it against eligible unpaid claims or adjust payment of claims under another state law. The choice is available to a local agency or school district that receives notice of a reduced reimbursement. The claimant must choose within 45 days after receiving the adjustment notice; otherwise, the Controller first attempts an offset and, if no unpaid claim exists, adjusts claim payments. Offsets apply only to adjustments made after January 1, 2027, and use unpaid state-mandate claims in chronological order, whether or not funds were appropriated. The claimant must notify the Controller before remitting funds. The claimant has 45 days after receiving the adjustment notice to tell the Controller its choice. Offsets apply only to adjustments made after January 1, 2027.
Where do you stand?
Choose your position
Tell your reps
Take a position to see your representatives and ways to contact them.
Where it stands
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Sep 18Chaptered by Secretary of State - Chapter 307, Statutes of 2026.Latest
- Sep 18Approved by the Governor Gavin Newsom.Became Law
- Aug 28Enrolled and presented to the Governor at 3:30 p.m.To Governor
- Aug 24Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 77. Noes 0. Page 6413.).Major
- Vote recorded AB 2640 Hadwick Concurrence in Senate Amendments. Result: pass.Lower
- Aug 20In Assembly. Concurrence in Senate amendments pending.
- Vote recorded Special Consent AB2640 Hadwick et al. Result: pass.Upper
- Aug 20Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0. Page 5593.).Passed Senate
- Aug 18Ordered to special consent calendar.
- Aug 13Read second time. Ordered to third reading.Minor
- Vote recorded Do pass. Result: pass.Upper
- Aug 13From committee: Do pass. (Ayes 7. Noes 0.) (August 13).Minor
- Jun 29In committee: Referred to APPR. suspense file.Minor
- Vote recorded Placed on suspense file. Result: pass.Upper
- Jun 18Read second time and amended. Re-referred to Com. on APPR.Major
- Jun 17From committee: Amend, and do pass as amended and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 6. Noes 0.) (June 17).Major
- Vote recorded Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations] with the recommendation: To Consent Calendar. Result: pass.Upper
- Jun 10Referred to Com. on L. GOV.Minor
- May 27In Senate. Read first time. To Com. on RLS. for assignment.Minor
- May 26Read third time. Passed. Ordered to the Senate. (Ayes 76. Noes 0. Page 5337.)Passed Assembly
- Vote recorded AB 2640 Hadwick Assembly Third Reading. Result: pass.Lower
- May 18Read second time. Ordered to third reading.Minor
- May 14From committee: Do pass. (Ayes 15. Noes 0.) (May 14).Minor
- Vote recorded Do pass. Result: pass.Lower
- May 6In committee: Set, first hearing. Referred to APPR. suspense file.Minor
- Apr 23From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 9. Noes 0.) (April 22). Re-referred to Com. on APPR.Minor
- Apr 22
- Vote recorded Do pass and be re-referred to the Committee on [Appropriations] with recommendation: To Consent Calendar. Result: pass.Lower
- Apr 13Re-referred to Com. on ED.Minor
- Apr 9From committee chair, with author's amendments: Amend, and re-refer to Com. on ED. Read second time and amended.Major
- Apr 1In committee: Set, first hearing. Hearing canceled at the request of author.
- Mar 25From committee: Do pass and re-refer to Com. on ED. (Ayes 10. Noes 0.) (March 25). Re-referred to Com. on ED.Minor
- Vote recorded Do pass and be re-referred to the Committee on [Education]. Result: pass.Lower
- Mar 9Referred to Coms. on L. GOV. and ED.Minor
- Feb 21From printer. May be heard in committee March 23.
- Feb 20Read first time. To print.Introduced
Government & EthicsTaxes & BudgetCivil Rights & Voting