CA SB1202

Prohibits local agencies from requiring a deposit for an independent audit of development fees if the agency failed to disclose required information about separate capital facilities funds for 3 consecutive years.

Requires the local agency to pay the full cost of the audit in cases where the agency did not comply with disclosure requirements under Section 66006(b).

Applies to local agencies that establish, increase, or impose a fee but fail to publicly report information about how those fees are collected and spent for 3 consecutive years.

Maintains existing audit procedures for all other fee challenges, where the person requesting the audit must deposit the estimated audit cost upfront.