CA AB2640

Requires the Controller to notify local agencies and school districts in writing within 30 days of any adjustment to reimbursement claims resulting from audits or reviews, removing the previous requirement that notification occur after issuance of a remittance advice

Allows local agencies and school districts to choose between offsetting reduced reimbursements against unpaid claims or remitting funds directly to the Controller, at their sole discretion

Applies the offset option only to claim adjustments occurring after January 1, 2027, using unpaid reimbursement claims attributed to that entity

Introduced by Assembly Member Hadwick with bipartisan co-authors on February 20, 2026, amending Government Code Section 17558.5 regarding state mandate reimbursement procedures