(a) When a county or district reports compensation to the board, it shall identify the pay period in which the compensation was earned regardless of when it was reported or paid. Compensation shall be reported in accordance with Section 31461 and shall not exceed compensation earnable, as defined in Section 31461.
(b) The board may assess a county or district a reasonable amount to cover the cost of audit, adjustment, or correction, if it determines that a county or district knowingly failed to comply with subdivision (a). A county or district shall be found to have knowingly failed to comply with subdivision (a) if the board determines that either of the following applies:
(1) The county or district knew or should have known that the compensation reported was not compensation earnable, as defined in Section 31461.
(2) The county or district failed to identify the pay period in which compensation earnable was earned, as required by this section.
(c) A county or district shall not pass on to an employee any costs assessed pursuant to subdivision (b).
(Added by Stats. 2012, Ch. 296, Sec. 30. (AB 340) Effective January 1, 2013.)