This bill introduces a new section to the existing law regarding school district audits, specifically empowering residents of local school districts to initiate a financial audit when a budget deficit occurs. The new legal language specifies that individuals domiciled in the school district can present a qualifying petition to their local school board, which must include the names, addresses, and signatures of at least one percent of the registered voters in the district. Upon receiving such a petition, the school board is mandated to hold a vote to determine whether the audit will take place.

If the school board votes in favor of conducting the audit, it must be completed within 90 days, and the findings must be presented at the next available school board meeting. This legislation aims to enhance transparency and accountability in school district financial management by allowing community members to take action in response to budgetary issues. The bill will take effect 60 days after its passage.