2005 California Education Code Sections 17076.10-17076.11 Article 9. Program Accountability

17076.10.  (a) A school district that has received any funds
pursuant to this chapter shall submit a summary report of expenditure
of state funds and of district matching funds annually until all
state funds and district matching funds are expended, and shall then
submit a final report to the board.  The board may require an audit
of these reports or other district records to ensure that all funds
received pursuant to this chapter are expended in accordance with
program requirements.
   (b) If the board finds that a participating school district has
made no substantial progress towards increasing its pupil capacity or
modernizing its facilities within 18 months of the receipt of any
funding pursuant to this chapter, the board shall rescind the
apportionment in an amount equal to the unexpended funds.
   (c) If the board, after the review of expenditures or audit has
been conducted pursuant to subdivision (a), determines that a school
district failed to expend funds in accordance with this chapter, the
department shall notify the school district of the amount that must
be repaid to the 1998 State School Facilities Fund, the 2002 State
School Facilities Fund, or the 2004 State School Facilities Fund, as
the case may be, within 60 days.  If the school district fails to
make the required payment within 60 days, the department shall notify
the Controller and the school district in writing, and the
Controller shall deduct an amount equal to the amount received by the
school district under this subdivision, from the school district's
next principal apportionment or apportionments of state funds to the
school district, other than basic aid apportionments required by
Section 6 of Article IX of the California Constitution.  Any amounts
obtained by the Controller shall be deposited into the 1998 State
School Facilities Fund, the 2002 State School Facilities Fund, or the
2004 State School Facilities Fund, as appropriate.
   (d) If a school district has received an apportionment, but has
not met the criteria to have funds released pursuant to Section
17072.32 or 17074.15 within a period established by the board, but
not to exceed 18 months, the board shall rescind the apportionment
and deny the district's application.
17076.11.  Any school district using funds allocated pursuant to
this chapter for the construction or modernization of a school
building, shall have a participation goal of at least 3 percent, per
year, of the overall dollar amount expended each year by the school
district, for disabled veteran business enterprises.