California Education Code
§ 14505
EDC § 14505 Effective Jul 9, 2026Div. 1 · Title 1 · Part 9 · Ch. 3
Statute text
View on leginfo.ca.gov(a)The governing board or body of a local educational agency shall include both of the following provisions in their contracts for audits:
(1)A provision to withhold 10 percent of the audit fee until the Controller certifies that the audit report conforms to the reporting provisions of Section 14503.
(2)A provision to withhold 50 percent of the audit fee for any subsequent year of a multiyear contract if the prior year’s audit report was not certified as conforming to the reporting provisions of Section 14503. This provision shall include a statement that a multiyear contract will be null and void if a firm or individual is declared ineligible pursuant to subdivision (c) of Section 41020.5. The amount withheld is not payable unless payment is ordered by the California Board of Accountancy or the audit report for that subsequent year is certified by the Controller as conforming to the reporting provisions of Section 14503.
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Legislative history
Amended by Stats. 2026, Ch. 65, Sec. 29. (AB 126) Effective July 9, 2026.