CA AB964

Requires the State Controller to notify local agencies or school districts in writing within 30 days of any adjustment to reimbursement claims resulting from an audit or review, removing the previous requirement that notice be tied to issuance of a remittance advice

Gives local agencies and school districts sole discretion to choose how to handle reduced reimbursements identified through audits

Allows local agencies or school districts to offset reduced reimbursement amounts against their own unpaid reimbursement claims (whether appropriated or not), provided sufficient unpaid claims exist as determined by the Controller

Alternatively permits local agencies or school districts to remit funds directly to the Controller to satisfy reduced reimbursement amounts

Clarifies that offsets apply only to unpaid reimbursement claims attributed to that specific local agency or school district