BILL NUMBER: AB 825	CHAPTERED
	BILL TEXT

	CHAPTER  871
	FILED WITH SECRETARY OF STATE  SEPTEMBER 29, 2004
	APPROVED BY GOVERNOR  SEPTEMBER 29, 2004
	PASSED THE SENATE  AUGUST 27, 2004
	PASSED THE ASSEMBLY  AUGUST 27, 2004
	AMENDED IN SENATE  AUGUST 26, 2004
	AMENDED IN SENATE  AUGUST 9, 2004
	AMENDED IN SENATE  JUNE 17, 2004
	AMENDED IN ASSEMBLY  MAY 13, 2003
	AMENDED IN ASSEMBLY  APRIL 21, 2003

INTRODUCED BY   Assembly Member Firebaugh
   (Principal coauthors:  Senators Alpert and Poochigian)

                        FEBRUARY 20, 2003

   An act to amend Sections 42243.7, 52904, 54686.2, and 58562 of, to
amend and repeal Sections 37252.8, 37253, 42239.1, 42239.15,
48431.6, 48431.7, and 48644.5 of, to amend, repeal, and add Section
42239 of, to add Sections 18185, 32228.6, 32296.10, 42289.6, 44579.6,
47774, 48642, 52002, 52891, 53032, 53095, 54206, 54669, 54735,
54763, and 58737 to, and to add Chapter 3.2 (commencing with Section
41500) to Part 24 of, the Education Code, relating to education
finance.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 825, Firebaugh.  Education finance:  categorical education
program reform.
   Existing law establishes various categorical education programs
under which funding is provided for specific educational purposes.
Among these categorical education programs are school safety
programs, teacher and staff preparation, induction, and professional
development programs, and supplemental instruction programs.
   This bill would establish block grants to be composed of funding
for specified existing categorical education programs, make those
programs inoperative on July 1, 2005, repeal them on January 1, 2006,
with certain exceptions, and extend for one year the inoperative and
repeal dates of the Early Intervention for School Success Program.
The bill would establish a pupil retention block grant, school safety
consolidated competitive grant, teacher credentialing block grant,
professional development block grant, a new targeted instructional
improvement block grant, and school library improvement block grant.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  (a) It is the intent of the Legislature to accomplish
all of the following:
   (1) Address the continuing concerns regarding the fragmentation of
supplementary funding sources and the need for flexibility in order
to respond to the special needs of all pupils.
   (2) Refocus attention on the effect that the expenditure of
categorical program funds has on pupil learning rather than on state
spending and compliance with operational rules for categorical
programs.
   (3) Improve school performance by doing the following:
   (A) Provide schools increased flexibility in the use of available
funds in exchange for accountability.
   (B) Ensure that funds intended for services to disadvantaged
pupils and schools are expended for their stated purpose.
   (C) Ensure that local governing boards develop and adopt the
highest possible standards for pupils.  The standards shall be as
rigorous as current state standards and any that may be adopted
pursuant to subsequent legislation.
   (b) It is the intent of the Legislature to accomplish the goals
set forth in subdivision (a) by establishing block grants to be
composed of funding for certain current categorical education
programs.
  SEC. 2.  Section 18185 is added to the Education Code, to read:
   18185.  This article shall become inoperative on July 1, 2005,
and, as of January 1, 2006, is repealed, unless a later enacted
statute that is enacted before January 1, 2006, deletes or extends
the dates on which it becomes inoperative and is repealed.
  SEC. 3.  Section 32228.6 is added to the Education Code, to read:
   32228.6.  This article shall become inoperative on July 1, 2005,
and, as of January 1, 2006, is repealed, unless a later enacted
statute that is enacted before January 1, 2006, deletes or extends
the dates on which it becomes inoperative and is repealed.
  SEC. 4.  Section 32296.10 is added to the Education Code, to read:

   32296.10.  This article shall become inoperative on July 1, 2007,
and, as of January 1, 2008, is repealed, unless a later enacted
statute that is enacted before January 1, 2008, deletes or extends
the dates on which it becomes inoperative and is repealed.
  SEC. 5.  Section 37252.8 of the Education Code is amended to read:

   37252.8.  (a) The governing board of each district maintaining any
or all of grades 2 to 6, inclusive, and any charter school, may
offer programs of direct, systematic, and intensive supplemental
instruction to pupils enrolled in grades 2 to 6, inclusive, who meet
either of the following criteria:
   (1) Pupils who have been identified as having a deficiency in
mathematics, reading, or written expression based on the results of
the tests administered under the Standardized Testing and Reporting
Program established pursuant to Article 4 (commencing with Section
60640) of Chapter 5 of Part 33.
   (2) Pupils who have been identified as being at risk of retention
pursuant to Section 48070.5.
   (b) Supplemental educational services offered pursuant to this
section may be offered during the summer, before school, after
school, on Saturdays, or during intersession, or in a combination of
summer school, before school, after school, Saturday, or intersession
instruction.  Services shall not be provided during the pupil's
regular instructional day.  Any minor pupil whose parent or guardian
informs the school district that the pupil is unable to attend a
Saturday school program for religious reasons, or any pupil 18 years
of age or older who states that he or she is unable to attend a
Saturday school program for religious reasons, shall be given
priority for enrollment in supplemental instruction offered at a time
other than Saturday, over a pupil who is not unable to attend a
Saturday school program for religious reasons.
   (c) For purposes of this section, a pupil shall be considered to
be enrolled in a grade immediately upon completion of the preceding
grade.  Summer school instruction may also be offered to pupils who
were enrolled in grade 6 during the prior school year.
   (d) An intensive remedial program in reading or written expression
offered pursuant to this section shall, as needed, include
instruction in phoneme awareness, systematic explicit phonics and
decoding, word attack skills, spelling and vocabulary, explicit
instruction of reading comprehension, writing, and study skills.
   (e) Each school district or charter school shall seek the active
involvement of parents and classroom teachers in the development and
implementation of supplemental instructional programs provided
pursuant to this section.
   (f) It is the intent of the Legislature that pupils who are at
risk of failing to meet state adopted standards, or who are at risk
of retention, be identified as early in the school year, and as early
in their school careers as possible and be provided the opportunity
for supplemental instruction sufficient to assist them in attaining
expected levels of academic achievement.
   (g) (1) A school district or charter school that offers
instruction pursuant to this section shall be entitled to receive
reimbursement in an amount up to 5 percent of the district's or
charter school's total enrollment in grades 2 to 6, inclusive, for
the prior fiscal year multiplied by 120 hours, multiplied by the
hourly rate for the current fiscal year determined pursuant to
subdivision (c) of Section 42239.
   (2) The balance of the appropriation made for the purposes of
funding programs offered pursuant to this section to serve pupils in
grades 2 to 6, inclusive, shall be allocated for reimbursement of
pupil attendance in instruction pursuant to subdivision (a) that is
in excess of 5 percent, but not in excess of 7 percent, of the
district's enrollment for the prior year in grades 2 to 6, inclusive,
multiplied by 120 hours, multiplied by the hourly rate for the
current fiscal year determined pursuant to subdivision (c) of Section
42239.
   (h) Notwithstanding any other provision of law, neither the State
Board of Education nor the Superintendent of Public Instruction may
waive any provision of this section.
   (i) This section shall become inoperative on July 1, 2005, and, as
of January 1, 2006, is repealed, unless a later enacted statute that
is enacted before January 1, 2006, deletes or extends the dates on
which it becomes inoperative and is repealed.
  SEC. 6.  Section 37253 of the Education Code is amended to read:
   37253.  (a) The governing board of any school district and a
charter school may offer supplemental instructional programs in
mathematics, science, or other core academic areas designated by the
Superintendent of Public Instruction.
   (b) The Superintendent of Public Instruction shall adopt rules and
regulations necessary to implement this section, including, but not
limited to, the designation of academic areas other than mathematics
and science as core academic areas.
   (c) The maximum entitlement of a school district or charter school
for reimbursement for pupil hours of attendance in supplemental
instructional programs offered pursuant to this section shall be an
amount equal to 5 percent of the total enrollment of the school
district or charter school for the prior fiscal year multiplied by
120 hours, multiplied by the hourly rate for the current fiscal year,
as determined pursuant to subdivision (c) of Section 42239.
   (d) To the extent appropriated funding allows, a school district
or charter school may enroll more than 5 percent of its pupils, or
may enroll pupils for more than 120 hours per year, in supplemental
instructional programs offered pursuant to this section, if the total
state apportionment to the district or charter school for these
programs does not exceed an amount computed equal to 10 percent of
the total enrollment of the school district or charter school for the
prior fiscal year multiplied by 120 hours, multiplied by the hourly
rate for the current fiscal year, as determined pursuant to
subdivision (c) of Section 42239.
   (e) Instructional programs may be offered pursuant to this section
during the summer, before school, after school, on Saturday, or
during intersession, or in any combination of summer, before school,
after school, Saturday, or intersession instruction, but shall be in
addition to the regular schoolday.  Any minor pupil whose parent or
guardian informs the school district that the pupil is unable to
attend a Saturday school program for religious reasons, or any pupil
18 years of age or older who states that he or she is unable to
attend a Saturday school program for religious reasons, shall be
given priority for enrollment in supplemental instruction offered at
a time other than Saturday, over a pupil who is not unable to attend
a Saturday school program for religious reasons.
   (f) Notwithstanding any other law, neither the State Board of
Education nor the Superintendent of Public Instruction may waive
compliance with any provision of this section.
   (g) This section shall become inoperative on July 1, 2005, and, as
of January 1, 2006, is repealed, unless a later enacted statute that
is enacted before January 1, 2006, deletes or extends the dates on
which it becomes inoperative and is repealed.
  SEC. 7.  Chapter 3.2 (commencing with Section 41500) is added to
Part 24 of the Education Code, to read:

      CHAPTER 3.2.  CATEGORICAL EDUCATION BLOCK GRANT FUNDING
      Article 1.  General Provisions

   41500.  (a) Notwithstanding any other provision of law, a school
district and county office of education may expend in a fiscal year
up to 15 percent of the amount apportioned for the block grants set
forth in Article 3 (commencing with Section 41510), Article 5
(commencing with Section 41530), Article 6 (commencing with Section
41540), or Article 7 (commencing with Section 41570) for any other
programs for which the school district or county office is eligible
for funding, including programs whose funding is not included in any
of the block grants established pursuant to this chapter.  The total
amount of funding a school district or county office of education may
expend for a program to which funds are transferred pursuant to this
section may not exceed 120 percent of the amount of state funding
allocated to the school district or county office for purposes of
that program in a fiscal year.  For purposes of this subdivision,
"total amount" means the amount of state funding allocated to a
school district or county office for purposes of a particular program
in a fiscal year plus the amount transferred in that fiscal year to
that program pursuant to this section.
   (b) A school district and county office of education shall not,
pursuant to this section, transfer funds from Article 2 (commencing
with Section 41505) and Article 4 (commending with Section 41520).
   (c) Before a school district or county office of education may
expend funds pursuant to this section, the governing board of the
school district or the county board of education, as applicable,
shall discuss the matter at a noticed public meeting.
   (d) A school district shall continue to track  transfers made
pursuant to this section by using object code 8998 of the
Standardized Account Code Structure.
   41501.  (a) The reduction made to categorical education program
funding received by a basic aid school district pursuant to Section
38 of Chapter 227 of the Statutes of 2003 shall be deemed not to have
occurred for purposes of calculating the amount of block grants a
basic aid school district shall receive pursuant to this chapter.
   (b) For purposes of this section, "basic aid school district"
means a school district that does not receive from the state, for any
fiscal year in which the section is applied, an apportionment of
state funds pursuant to subdivision (h) of Section 42238.
   41502.  By January 1, 2007, and subject to an appropriation in the
annual Budget Act for this purpose, the Legislative Analyst's Office
shall report and make recommendations on the effectiveness and
distribution effects of this chapter on pupil achievement and
recommendations on the continuation or elimination of categorical
education programs whose funding is not part of the block grants
established pursuant to this chapter.
   41503.  The department shall annually compile and update
information for each state and federal categorical education program,
including the distribution of funds from each program to each school
district and county office of education, in a form similar to the
November 2003 audit of the department performed by the Bureau of
State Audits.

      Article 2.  Pupil Retention Block Grant

   41505.  (a) There is hereby established the pupil retention block
grant.  Commencing with the 2005-06 fiscal year, the Superintendent
of Public Instruction shall apportion block grant funds to a school
district in the same relative statewide proportion that the school
district received in the 2003-04 fiscal year for the programs listed
in Section 41506.
   (b) A school district may expend funds received pursuant to this
article for any purpose authorized by the programs listed in Section
41506 as the statutes governing those programs read on January 1,
2004.
   (c) For purposes of this article, "school district" includes a
county office of education if county offices of education are
eligible to receive funds for the programs that are listed in Section
41506.  The block grant of a county office of education shall be
based only on those programs for which it was eligible to receive
funds in the 2003-04 fiscal year.
   41505.5.  The department shall make an initial allocation of funds
to each local educational agency eligible for funding pursuant to
this article.  This initial allocation shall be 75 percent of the
allocation for each local educational agency that is determined
pursuant to Section 41505.  The remaining portion of each district's
allocation shall be made only after supplemental instruction provided
under Sections 37252 and 37252.2 is fully funded as required
pursuant to Section 42239.  If the Superintendent of Public
Instruction notifies the Director of Finance pursuant to paragraph
(4) subdivision (c) of Section 42239 that there is a deficiency of
funding for purposes of Sections 37252 and 37252.2, the Controller
shall transfer from funding provided for purposes of this article any
amounts needed to fully fund supplemental instruction provided under
Sections 37252 and 37252.2.  The transfer of funds pursuant to this
section shall be to the item or items in the annual Budget Act that
appropriate funds for supplemental instruction provided under
Sections 37252 and 37252.2.  If the amount of funds remaining after
the initial 75 percent allocation is insufficient in any year to
fully fund supplemental instruction provided pursuant to Sections
37252 and 37252.2, the amount of the remaining insufficiency shall be
deducted from funds appropriated for purposes of this article for
the subsequent fiscal year.
   41506.  The pupil retention block grant shall include funding
previously apportioned to school districts for purposes of the
following programs:
   (a) Supplemental instruction as set forth in Sections 37252.8 and
37253, Article 1 (commencing with Section 53025) of Chapter 16 and
Chapter 18 (commencing with Section 53091) of Part 28.
Notwithstanding any other provision of law, funding attributable to
the programs identified in this subdivision shall be adjusted
annually at both the statewide and local educational agency levels to
reflect actual participation, and local educational agency funding
eligibility shall not exceed the statutory limitations for these
programs, as the statutes governing these programs read on January 1,
2004.
   (b) Continuation high schools as set forth in Section 42243.7.
   (c) High-Risk Youth Education and Public Safety as set forth in
Part 26.95 (commencing with Section 47750).
   (d) Tenth grade counseling as set forth in Sections 48431.6 and
48431.7.
   (e) Opportunity programs as set forth in Article 1 (commencing
with Section 48630) and Article 2.3 (commencing with Section 48643)
of Chapter 4 of Part 27.  The pupil retention block grant shall not
include funding apportioned to county offices of education for
opportunity schools and programs administered under Sections 48640
and 48641.
   (f) Dropout prevention and recovery as set forth in Article 6
(commencing with Section 52890) and Article 7 (commencing with
Section 52900) of Chapter 12 of Part 28, Article 3 (commencing with
Section 54660) and Article 7 (commencing with Section 54720) of
Chapter 9 of Part 29, and Chapter 3.5 (commencing with Section 58550)
of Part 31.  A school district that received funds pursuant to the
programs listed in this subdivision in the 2003-04 fiscal year shall
utilize funds received pursuant to this article to maintain at least
the same number of outreach consultants as described in Section 52890
that were utilized by the school district in the 2004-05 fiscal
year.  A school district shall place consultants first in the school
that has the highest percentage of pupils eligible for the federal
free and reduced price lunch program.  The school district shall then
place consultants in the school with the next highest percentage of
those pupils and continue in this manner until the school district
places in its schools all the outreach consultants required to be
placed pursuant to this section.
   (g) Early intervention for school success as set forth in Article
4.5 (commencing with Section 54685) of Chapter 9 of Part 29.
   (h) An at-risk youth program operated by the Los Angeles Unified
School District that is funded pursuant to Item 6110-280-0001 of
Section 2.0 of the annual Budget Act.
   41507.  A school district that receives funds pursuant to this
article shall have a school level advisory committee as required
pursuant to Chapter 6 (commencing with Section 52000) of Part 28, as
that chapter read on January 1, 2004, and shall have a single school
plan that incorporates the requirements of Sections 52014 and 52015,
as those sections read on January 1, 2004.
   41508.  Commencing with the 2006-07 fiscal year, the amount of
funding a school district receives pursuant to this article shall be
adjusted for inflation by the amount calculated pursuant to Section
42238.1 and for growth as measured by the regular average daily
attendance used to calculate the second principal apportionment for
kindergarten and grades 1 to 12, inclusive.

      Article 3.  School Safety Consolidated Competitive Grant

   41510.  (a) There is hereby established the school safety
consolidated competitive grant.  Notwithstanding any other provision
of law, commencing with the 2005-06 fiscal year, the Superintendent
of Public Instruction, in partnership with the Attorney General's
Office, shall distribute grant funds through a competitive process to
school districts in order to carry out one or more of the purposes
for which the programs listed in Section 41511 and Article 10.4
(commencing with Section 35294.10) of Chapter 2 of Part 21 were
established, as the statutes governing those programs read on January
1, 2004.  A grant may be made for up to a five-year period.
   (b) If a school district has a school safety plan for each of the
schools under its jurisdiction, a school district may expend funds
received pursuant to this article subject to the parameters,
conditions, or guidelines established by the Superintendent of Public
Instruction and the Attorney General's office for this purpose.  For
purposes of this article, a school safety plan may be integrated
into any single plan developed by a school.
   (c) For purposes of this article, "school district" includes a
county office of education if county offices of education are
eligible to receive funds for the programs that are listed in Section
41511.  The block grant of a county office of education shall be
based only on those programs for which it was eligible to receive
funds in the 2003-04 fiscal year.
   41511.  Funding for the school safety consolidated competitive
grant shall include the funding previously apportioned to school
districts for carrying out the purposes of the following programs:
   (a) Safe school planning and partnership minigrants, as funded
pursuant to Item 6110-226-0001 of Section 2.0 of the annual Budget
Act.
   (b) School community policing as set forth in Article 6
(commencing with Section 32296) of Chapter 2.5 of Part 19.
   (c) Gang-risk intervention as set forth in Chapter 5.5 (commencing
with Section 58730) of Part 31.
   (d) Safety plans for new schools, as funded pursuant to Item
6110-226-0001 of Section 2.00 of the annual Budget Act.
   (e) School community violence prevention, as funded pursuant to
Item 6110-226-0001 of Section 2.00 of the annual Budget Act.
   (f) Conflict resolution, as funded pursuant to Item 6110-226-0001
of Section 2.00 of the annual Budget Act.
   41512.  The Superintendent of Public Instruction shall work in
partnership with the Office of the Attorney General to ensure proper
and efficient distribution of grant funds to school districts in
order to carry out one or more of the purposes for which the programs
listed in Section 41511 and Article 10.4 (commencing with Section
35294.10) of Chapter 2 of Part 21 were established, as the statutes
governing those programs read on January 1, 2004.
   41513.  The Superintendent of Public Instruction and the Attorney
General's office shall adopt emergency regulations to implement this
article as soon as possible.
   41514.  Funds appropriated for purposes of this article are
available for encumbrance for five years from the date of
appropriation.

      Article 4.  Teacher Credentialing Block Grant

   41520.  (a) There is hereby established the teacher credentialing
block grant.  Commencing with the 2005-06 fiscal year, the
Superintendent of Public Instruction shall apportion block grant
funds to a school district offering approved programs pursuant to
Section 41521 based on the number of eligible participants in each of
those programs.
   (b) (1) The Legislature finds that the Superintendent of Public
Instruction and the Commission on Teacher Credentialing established
requirements for reviewing and approving teacher induction programs.
The Legislature further finds that 135 of 150 programs are jointly
approved as of July 1, 2004.  It is the intent of the Legislature
that these requirements remain in effect until the superintendent and
commission jointly agree to modify them.  The Superintendent of
Public Instruction and the Commission on Teacher Credentialing shall
jointly review new programs developed pursuant to paragraph (1) of
subdivision (a) based on established approval requirements.
   (2) As provided for in Section 44259, the Commission on Teacher
Credentialing retains authority to issue credentials to candidates
who complete an induction program that meets the Standards of Program
Quality and Effectiveness adopted by the commission.  A previously
approved program that is deemed as no longer meeting the Standards of
Program Quality and Effectiveness shall be considered a new program
for purposes of becoming an approved program pursuant to this
article.
   (3) A school district may expend funds received pursuant to this
article for any purpose authorized by the programs listed in Section
41521, as the statutes governing those programs read on January 1,
2004, for the purpose of providing equivalent program services for
beginning teachers.  For the purpose of statewide program support and
accountability, equivalent program services include regional support
and technical assistance that existed under the Beginning Teacher
Support and Assessment system on January 1, 2004.
   (c) For purposes of this article, "school district" includes a
consortia of school districts, a consortia of school districts and
county offices of education, and a county office of education if
county offices of education are eligible to receive funds for the
programs that are listed in Section 41521.
   41521.  (a) The teacher credentialing block grant shall include
funding previously apportioned to school districts for purposes of
beginning teacher support and assessment as set forth in Article 4.5
(commencing with Section 44279.1) of Chapter 2 of Part 25.
   (b) For purposes of issuing teaching credentials, certificates, or
other authorizations, the Commission on Teacher Credentialing shall
approve the programs in paragraphs (1) and (2) of subdivision (a).
To ensure the Superintendent of Public Instruction has the requisite
information to allocate funding based on the number of participating
credential candidates pursuant to this article, the commission shall
inform the Superintendent of Public Instruction on an ongoing basis
of the approval status of these programs and numbers of participating
candidates in each approved program.
   41522.  Commencing with the 2006-07 fiscal year, the amount of
funding a school district receives pursuant to this article shall be
adjusted for inflation by the amount calculated pursuant to Section
42238.1 and for growth as measured by the regular average daily
attendance used for the second principal apportionment for
kindergarten and grades 1 to 12, inclusive.

      Article 5.  Professional Development Block Grant

   41530.  (a) There is hereby established the professional
development block grant.  Commencing with the 2005-06 fiscal year,
the Superintendent of Public Instruction shall apportion block grant
funds to a school district based on the number of certificated
teachers employed by the school district in the immediately prior
fiscal year.
   (b) A school district may expend funds received pursuant to this
article for any purpose authorized by the programs listed in Section
41531, as the statutes governing those programs read on January 1,
2004, if the school district provides each teacher of kindergarten or
any of grades 1 to 6, inclusive, with opportunities to participate
in professional development activities in reading language
arts/English language development.  In providing teachers of
kindergarten and any of grades 1 to 6, inclusive, with opportunities
to participate in professional development activities in reading
language arts/English language development, a school district shall
expend at least an amount that is equal to the proportion that
funding calculated pursuant to Article 3 (commencing with Section
99230) of Chapter 5 of Part 65 bears to the statewide total amount of
block grant funds appropriated for purposes of this article.  For
purposes of this article, professional development in reading
language arts/English language development shall be equivalent in
rigor to the professional development
             provided pursuant to Article 3 (commencing with Section
99230) of Chapter 5 of Part 65, as that article read on January 1,
2004.
   (c) For purposes of this article, "school district" includes a
county office of education if county offices of education are
eligible to receive funds for the programs that are listed in Section
41531.  The block grant of a county office of education shall be
based only on those programs for which it was eligible to receive
funds in the 2003-04 fiscal year.
   41531.  The professional development block grant shall include
funding apportioned to school districts prior to January 1, 2005, for
purposes of the following programs:
   (a) Staff development as set forth in Article 7.5 (commencing with
Section 44579) of Chapter 3 of Part 25.
   (b) Teaching as a Priority Block Grant as set forth in Chapter
3.36 (commencing with Section 44735) of Part 25.
   (c) Intersegmental programs funded pursuant to Item 6110-197-0001
of Section 2.00 of the annual Budget Act.
   41532.  Commencing with the 2006-07 fiscal year, the amount of
funding a school district receives pursuant to this article shall be
adjusted for inflation by the amount calculated pursuant to Section
42238.1 and for growth as measured by the regular average daily
attendance used to calculate the second principal apportionment for
kindergarten and grades 1 to 12, inclusive.

      Article 6.  Targeted Instructional Improvement Block Grant

   41540.  (a) There is hereby established the targeted instructional
improvement block grant.  Commencing with the 2005-06 fiscal year,
the Superintendent of Public Instruction shall apportion block grant
funds to a school district in the same relative statewide proportion
that the school district received in the 2003-04 fiscal year for the
programs listed in Section 41541.
   (b) If a school district is not in violation of a court order
regarding desegregation, the school district may expend funds
received pursuant to this article for any purpose authorized by the
programs listed in Section 41541 as the statutes governing those
programs read on January 1, 2004.
   (c) For purposes of this article, "school district" includes a
county office of education if county offices of education are
eligible to receive funds for the programs that are listed in Section
41541.  The block grant of a county office of education shall be
based only on those programs for which it was eligible to receive
funds in the 2003-04 fiscal year.
   41541.  The targeted instructional improvement block grant shall
include funding apportioned to school districts prior to January 1,
2005, for purposes of the following programs:
   (a) Targeted instructional improvement as set forth in Chapter 2.5
(commencing with Section 54200) of Part 29.
   (b) Supplemental grants as set forth in Article 9 (commencing with
Section 54760) of Chapter 9 of Part 29.
   41542.  Commencing with the 2006-07 fiscal year, the amount of
funding a school district receives pursuant to this article shall be
adjusted for inflation by the amount calculated pursuant to Section
42238.1 and for growth as measured by the regular average daily
attendance used to calculate the second principal apportionment for
kindergarten and grades 1 to 12, inclusive.
   41543.  In expending funds received pursuant to this article, a
school district shall give first priority to funding the costs of a
court-ordered desegregation program if the order exists and is still
in force.

      Article 7.  School and Library Improvement Block Grant

   41570.  (a) There is hereby established the school and library
improvement block grant.  Commencing with the 2005-06 fiscal year,
the Superintendent of Public Instruction shall apportion block grant
funds to a school district in the same relative statewide proportion
that the school district received in the 2003-04 fiscal year for the
programs listed in Section 41571.
   (b) (1) Except as specified in paragraph (2), a school district
may expend funds received pursuant to this article for any purpose
authorized by the programs listed in Section 41571, as the statutes
governing those programs read on January 1, 2004.
   (2) If a school district did not participate before January 1,
2004, in the school improvement program as set forth in Chapter 6
(commencing with Section 52000) of Part 28, the school district shall
use grant funds received pursuant to this article for school library
materials as set forth in Article 7 (commencing with Section 18180)
of Chapter 2 of Part 11, as that article read on January 1, 2004.
   (c) For purposes of this article, "school district" includes a
county office of education if county offices of education are
eligible to receive funds for the programs that are listed in Section
41571.  The block grant of a county office of education shall be
based only on those programs for which it was eligible to receive
funds in the 2003-04 fiscal year.
   41571.  The school and library improvement block grant shall
include funding previously apportioned to school districts for
purposes of the following programs:
   (a) School library materials as set forth in Article 7 (commencing
with Section 18180) of Chapter 2 of Part 11.
   (b) School improvement programs as set forth in Chapter 6
(commencing with Section 52000) of Part 28.
   41572.  A school district that receives funds pursuant to this
section shall have a school level advisory committee as required by
Chapter 6 (commencing with Section 52000) of Part 28, as it read on
January 1, 2004, and shall have a single school plan that
incorporates the requirements of Sections 18181, 52014, and 52015, as
those sections read on January 1, 2004.
   41573.  Commencing with the 2006-07 fiscal year, the amount of
funding a school district receives pursuant to this article shall be
adjusted annually for inflation by the amount calculated pursuant to
Section 42238.1 and for growth as measured by enrollment in
kindergarten and grades 1 to 12, inclusive, as reported in the CBEDS
report.  For purposes of this subdivision, "CBEDS report" means the
report submitted by the school district to the department for
purposes of the California Basic Education Data System.
  SEC. 8.  Section 42239 of the Education Code is amended to read:
   42239.  For the 2000-01 fiscal year, and each fiscal year
thereafter, the Superintendent of Public Instruction shall compute
funding for supplemental instruction for each school district or
charter school in the following manner:
   (a) Multiply the number of pupil hours of supplemental instruction
claimed pursuant to Sections 37252 and 37252.2 by the pupil hour
allowance specified in subdivision (c) or by a pupil hour allowance
specified in the annual Budget Act in lieu of the amount computed in
subdivision (c).
   (b) Multiply the number of pupil hours of supplemental instruction
claimed pursuant to Sections 37252.6, 37252.8, and 37253 by the
pupil hour allowance specified in subdivision (c) or by a per-pupil
hour allowance specified in the annual Budget Act in lieu of the
amount computed in subdivision (c).  The total number of pupil hours
of supplemental instruction that may be claimed pursuant to Section
37253 may not exceed the limits on pupil hours that may be claimed as
established by subdivisions (c) and (d) of Section 37253.  The total
number of pupil hours of supplemental instruction that may be
claimed pursuant to Section 37252.6 may not exceed the limits on
pupil hours that may be claimed as established in subdivision (g) of
that section.
   (c) Commencing with the 2000-01 fiscal year, hours of supplemental
instruction shall be reimbursed at a rate of three dollars and
twenty-five cents ($3.25) per pupil hour, adjusted in future years as
specified in this section, provided that a different reimbursement
rate may be specified for each fiscal year in the annual Budget Act
that appropriates funding for that fiscal year.  This amount shall be
increased annually by the percentage increase pursuant to
subdivision (b) of Section 42238.1 granted to school districts or
charter schools for base revenue limit cost-of-living increases.
   (d) (1) If appropriated funding is insufficient to pay all claims
made in any fiscal year pursuant to Section 37252 or 37252.2, the
superintendent shall use any available funding appropriated for the
purposes of reimbursing school districts pursuant to Section 37252,
37252.2, 37252.5, or subdivision (d) of Section 37253.
   (2) If appropriated funding is still insufficient to pay all
claims made in any fiscal year pursuant to Section 37252, 37252.2, or
37252.5, the superintendent shall use any available funding
appropriated for the purposes of reimbursing school districts for
supplemental instruction in the prior fiscal year.
   (3) If appropriated funding is still insufficient to pay all
claims made in any fiscal year pursuant to Section 37252 or 37252.2,
the superintendent shall use any available funding appropriated for
the purposes of reimbursing school districts for supplemental
instruction in the current fiscal year.
   (4) The superintendent shall notify the Director of Finance that
there is a deficiency of funding appropriated for the purposes of
Sections 37252, 37252.2, and 37252.5 only after the superintendent
has exhausted all available balances of appropriations made for the
current or prior fiscal years for the reimbursement of school
districts for supplemental instruction.
   (e) Notwithstanding any other provision of law, neither the State
Board of Education nor the Superintendent of Public Instruction may
waive any provision of this section.
   (f) This section shall become inoperative on July 1, 2005, and, as
of January 1, 2006, is repealed, unless a later enacted statute that
is enacted before January 1,2006, deletes or extends the dates on
which it becomes inoperative and is repealed.
  SEC. 9.  Section 42239 is added to the Education Code, to read:
   42239.  (a) For the 2005-06 fiscal year, and each fiscal year
thereafter, the Superintendent of Public Instruction shall compute
funding for supplemental instruction for each school district or
charter school by multiplying the number of pupil hours of
supplemental instruction claimed pursuant to Sections 37252 and
37252.2 by the pupil hour allowance specified in subdivision (b) or
by a pupil hour allowance specified in the annual Budget Act in lieu
of the amount computed in subdivision (b).
   (b) Commencing with the 2000-01 fiscal year, hours of supplemental
instruction shall be reimbursed at a rate of three dollars and
twenty-five cents ($3.25) per pupil hour, adjusted in future years as
specified in this section, provided that a different reimbursement
rate may be specified for each fiscal year in the annual Budget Act
that appropriates funding for that fiscal year.  This amount shall be
increased annually by the percentage increase pursuant to
subdivision (b) of Section 42238.1 granted to school districts or
charter schools for base revenue limit cost-of-living increases.
   (c) (1) If appropriated funding is insufficient to pay all claims
made in any fiscal year pursuant to Sections 37252 and 37252.2, the
superintendent shall use any available funding appropriated for the
purposes of reimbursing school districts pursuant to Sections 37252
and 37252.2.
   (2) If appropriated funding is still insufficient to pay all
claims made in any fiscal year pursuant to Sections 37252 and
37252.2, the superintendent shall use any available funding
appropriated for the purposes of reimbursing school districts for
supplemental instruction in the prior fiscal year.
   (3) If appropriated funding is still insufficient to pay all
claims made in any fiscal year pursuant to Sections 37252 and
37252.2, the superintendent shall use any available funding
appropriated for the purposes of reimbursing school districts for
supplemental instruction in the current fiscal year.
   (4) If appropriated funding is still insufficient to pay all
claims made in any fiscal year pursuant to Sections 37252 and
37252.2, the superintendent shall certify to the Controller the
amount of funds needed to fully fund claims pursuant to Sections
37252 and 37252.2.  Upon receipt of certification from the
superintendent, the Controller shall transfer the amount from any
funds available for that fiscal year for the Pupil Retention Block
Grant program provided pursuant to Article 1 (commencing with Section
41505) of Chapter 3.2 of Part 24.  If insufficient funds are
available from the appropriation for the Pupil Retention Block Grant
program for the fiscal year, the Controller shall transfer any
remaining funds needed from any amount appropriated for the Pupil
Retention Block Grant program for the following fiscal year.
   (5) The superintendent shall notify the Director of Finance that
there is an insufficiency of funding appropriated for the purposes of
Sections 37252 and 37252.2 only after the superintendent has
exhausted all available balances of appropriations made for the
current or prior fiscal years for the reimbursement of school
districts for supplemental instruction and shall report the amount
certified to be transferred from the Pupil Retention Block Grant to
eliminate that insufficiency.
   (d) Notwithstanding any other provision of law, neither the State
Board of Education nor the Superintendent of Public Instruction may
waive any provision of this section.
   (e) This section shall become operative on July 1, 2005.
  SEC. 10.  Section 42239.1 of the Education Code is amended to read:

   42239.1.  (a) For the 1999-2000 fiscal year and each fiscal year
thereafter, each school district is eligible for reimbursement for
hours of pupil attendance claimed for intensive reading programs
offered pursuant to Article 1 (commencing with Section 53025) of
Chapter 16 of Part 28 in an amount up to 10 percent of the district's
total enrollment in kindergarten and grades 1 to 4, inclusive, for
the prior fiscal year multiplied by 120 hours, multiplied by the
hourly rate for the current fiscal year determined pursuant to
subdivision (c) of Section 42239.  This amount shall be provided in
addition to amounts claimed pursuant to Sections 37252, 37252.2,
37252.5, 35252.6, 37252.8, and 37253.
   (b) In expending funds received pursuant to this section, a school
district shall give first priority for the purpose specified in
paragraph (1) of subdivision (c) of Section 53027.
   (c) Reimbursement pursuant to this section is contingent on an
appropriation being made for that purpose in the annual Budget Act.
   (d) This section shall become inoperative on July 1, 2005, and, as
of January 1, 2006, is repealed, unless a later enacted statute that
is enacted before January 1, 2006, deletes or extends the dates on
which it becomes inoperative and is repealed.
  SEC. 11.  Section 42239.15 of the Education Code is amended to
read:
   42239.15.  (a) For the 2000-01 fiscal year and each fiscal year
thereafter, each school district and charter school is eligible for
reimbursement for hours of pupil attendance claimed for intensive
algebra instruction academies offered pursuant to Chapter 18
(commencing with Section 53091) of Part 28 in an amount up to 6
percent of the total enrollment in grades 7 and 8 of the school
district or charter school for the prior fiscal year multiplied by
120 hours, multiplied by the hourly rate for the current fiscal year
determined pursuant to subdivision (c) of Section 42239.  This amount
shall be provided in addition to the amount provided pursuant to
Section 42239.
   (b) In expending funds received pursuant to this section, a school
district shall give first priority for the purpose specified in
paragraph (1) of subdivision (d) of Section 53092.
   (c) Reimbursement pursuant to this section is contingent on an
appropriation being made for that purpose in the annual Budget Act.
   (d) This section shall become inoperative on July 1, 2005, and, as
of January 1, 2006, is repealed, unless a later enacted statute that
is enacted before January 1, 2006, deletes or extends the dates on
which it becomes inoperative and is repealed.
  SEC. 12.  Section 42243.7 of the Education Code is amended to read:

   42243.7.  (a) For any school district that commenced operations on
or after June 30, 1978, or for any school district that receives
approval from the department for a new continuation education high
school for the 1979-80 fiscal year, or any fiscal year thereafter,
the Superintendent of Public Instruction shall compute an adjustment
to the district revenue limit pursuant to this section.
   (b) Determine the amount of foundation program that the district
would have been entitled to pursuant to subdivision (a) of Section
41711, as that section read on July 1, 1977, if the district had
operated during the 1977-78 fiscal year, utilizing the number of
units of average daily attendance attending high school in the
district in the fiscal year for which the revenue limit is being
computed.
   (c) Determine the amount of foundation program that the district
would have been entitled to pursuant to paragraph (1) of subdivision
(b) of Section 41711, as that section read on July 1, 1977, if the
district had operated during the 1977-78 fiscal year, utilizing the
same number of units of average daily attendance used in subdivision
(b) of this section.
   (d) Subtract the amount determined pursuant to subdivision (c)
from the amount computed pursuant to subdivision (b).
   (e) The amount computed pursuant to subdivision (d), if greater
than zero, shall be added to the revenue limit computed pursuant to
subdivision (c) of Section 42237 or pursuant to Section 42238.  If
the amount in subdivision (d) is less than zero there is no
adjustment.
   (f) The Superintendent of Public Instruction shall reduce by the
amount computed pursuant to subdivision (e) the revenue limit
computed pursuant to Section 42238 of any district discontinuing the
operation of a continuation education school approved pursuant to
subdivision (a).
   (g) (1) For the 1994-95  to 2002-03 fiscal years, inclusive, the
adjustment computed pursuant to this section may not be adjusted by
the deficit factor applied to the revenue limit of each school
district pursuant to Section 42238.145.
   (2) For the 2003-04 fiscal year and each fiscal year thereafter,
the revenue limit reduction specified in Section 42238.146 may not be
applied to the adjustment computed pursuant to this section.
   (h) The adjustment computed pursuant to this section for a new
continuation education high school may be applicable for any unified
school district that was not fully operational during the first year
of operation of the continuation education high school.  The number
of units of average daily attendance to be used in computing the
adjustment shall be the number of units of average daily attendance
generated by the continuation education high school in the district
for the first year that the district is fully operational in all
grades.
   (i) In the 1998-99 fiscal year and each fiscal year thereafter,
the ranges of average daily attendance resulting from the calculation
set forth in this section pursuant to Section 41711, as that section
read on July 1, 1977, shall be reduced by the statewide average
percentage that absences excused pursuant to subdivision (b) of
Section 46010, as that section read on July 1, 1996, were of total
second principal apportionment regular average daily attendance for
high schools in 1996-97, with the reduced ranges then rounded to the
nearest integer.
   (j) Commencing with the 2005-06 fiscal year and notwithstanding
any provision of law, the amount of the adjustment calculated
pursuant to this section shall not be added to the revenue limit of a
school district, but shall be used in determining the amount of the
pupil retention block grant awarded a school district pursuant to
Article 1 (commencing with Section 41500) of Chapter 3.2.
  SEC. 13.  Section 42289.6 is added to the Education Code, to read:

   42289.6.  (a) It is the intent of the Legislature that the Quality
Education Commission review the eligibility provisions for the
establishment of necessary small schools as specified in Sections
42280, 42282, 42283, 42284, and 42285, including the following:
   (1) The appropriate size for a necessary small elementary school,
a necessary small middle school, and a necessary small high school.
   (2) Whether mileage and other eligibility requirements are
appropriate or need to be modified.
   (b) It is further the intent of the Legislature that by January 1,
2006, the Quality Education Commission recommend to the Legislature
modifications regarding the size, eligibility requirements, and
funding of necessary small schools.
  SEC. 14.  Section 44579.6 is added to the Education Code, to read:

   44579.6.  This article shall become inoperative on July 1, 2005,
and, as of January 1, 2006, is repealed, unless a later enacted
statute that is enacted before January 1, 2006, deletes or extends
the dates on which it becomes inoperative and is repealed.
  SEC. 15.  Section 47774 is added to the Education Code, to read:
   47774.  This part shall become inoperative on July 1, 2005, and,
as of January 1, 2006, is repealed, unless a later enacted statute
that is enacted before January 1, 2006, deletes or extends the dates
on which it becomes inoperative and is repealed.
  SEC. 16.  Section 48431.6 of the Education Code is amended to read:

   48431.6.  (a) The governing board of each district maintaining
high schools and accepting funds made available for purposes of this
section shall establish and maintain a program which ensures that
each pupil, upon reaching the age of 16 years or prior to the end of
grade 10, whichever occurs first, has received a systematic review of
his or her academic progress and counseling regarding his or her
educational options during the final two years of high school.  The
program shall be adopted at a public meeting of the governing board
and shall include all of the following:
   (1) Provision for individualized review of the pupil's academic
and deportment records.
   (2) Provision for a meeting with the pupil and where feasible,
with the pupil's parent or guardian, to explain the pupil's record,
his or her educational options, the coursework and academic progress
needed for satisfactory completion of high school, and the effect of
that coursework and academic progress upon the pupil's options for
postsecondary education and employment.  Educational options shall
include regional occupational centers and programs, continuation
schools, academic programs, and any other alternatives available to
pupils of the district.
   (3) Provision for services of teachers, counselors, and others
designated by the governing board to provide the individualized
review and assistance to pupils pursuant to paragraphs (1) and (2).
To the maximum extent feasible, regional occupational center or
program counselors shall actively participate in, and the local
business community shall be involved in, career guidance activities.

   (b) The program shall give first priority to identifying pupils
who are not earning credits at a rate that will enable them to
graduate with the rest of their class, and to providing these pupils
with counseling services funded pursuant to Section 48431.7.
   (c) This section shall become inoperative on July 1, 2005, and, as
of January 1, 2006, is repealed, unless a later enacted statute that
is enacted before January 1, 2006, deletes or extends the dates on
which it becomes inoperative and is repealed.
  SEC. 17.  Section 48431.7 of the Education Code is amended to read:

   48431.7.  (a) Funds appropriated for purposes of Section 48431.6
shall supplement, and shall not supplant, existing funding for
counseling services.  Out of funds appropriated for those purposes,
the Superintendent of Public Instruction shall apportion twenty
dollars ($20) per prior year's enrollment in grade 10 to each school
district that has adopted a program pursuant to Section 48431.6.
   (b) This section shall become inoperative on July 1, 2005, and, as
of January 1, 2006, is repealed, unless a later enacted statute that
is enacted before January 1, 2006, deletes or extends the dates on
which it becomes inoperative and is repealed.
  SEC. 18.  Section 48642 is added to the Education Code, to read:
   48642.  This article shall become inoperative on July 1, 2005,
and, as of January 1, 2006, is repealed, unless a later enacted
statute that is enacted before January 1, 2006, deletes or extends
the dates on which it becomes inoperative and is repealed.
  SEC. 19.  Section 48644.5 of the Education Code is amended to read:

   48644.5.  This article shall become inoperative on July 1, 2005,
and, as of January 1, 2006, is repealed, unless a later enacted
statute that is enacted before January 1, 2006, deletes or extends
the dates on which it becomes inoperative and is repealed.
  SEC. 20.  Section 52002 is added to the Education Code, to read:
   52002.  This chapter shall become inoperative on July 1, 2005,
and, as of January 1, 2006, is repealed, unless a later enacted
statute that becomes operative on or before January 1, 2006, deletes
or extends the dates on which it becomes inoperative and is repealed.

  SEC. 21.  Section 52891 is added to the Education Code, to read:
   52891.  This article shall become inoperative on July 1, 2005,
and, as of January 1, 2006, is repealed, unless a later enacted
statute that is enacted before January 1, 2006, deletes or extends
the dates on which it becomes inoperative and is repealed.
  SEC. 22.  Section 52904 of the Education Code is amended to read:
   52904.  This article shall become inoperative on July 1, 2005,
and, as of January 1, 2006, is repealed, unless a later enacted
statute, that is enacted before January 1, 2006, deletes or extends
the dates on which it becomes inoperative is repealed.
  SEC. 23.  Section 53032 is added to the Education Code, to read:
   53032.  This article shall become inoperative on July 1, 2005,
and, as of January 1, 2006, is repealed, unless a later enacted
statute that is enacted before January 1, 2006, deletes or extends
the dates on which it becomes inoperative and is repealed.
  SEC. 24.  Section 53095 is added to the Education Code, to read:
   53095.  This chapter shall become inoperative on July 1, 2005,
and, as of January 1, 2006, is repealed, unless a later enacted
statute that is enacted before January 1, 2006, deletes or extends
the dates on which it becomes inoperative and is repealed.

     SEC. 25.  Section 54206 is added to the Education Code, to read:

   54206.  This chapter shall become inoperative on July 1, 2005,
and, as of January 1, 2006, is repealed, unless a later enacted
statute that is enacted before January 1, 2006, deletes or extends
the dates on which it becomes inoperative and is repealed.
  SEC. 26.  Section 54669 is added to the Education Code, to read:
   54669.  This article shall become inoperative on July 1, 2005,
and, as of January 1, 2006, is repealed, unless a later enacted
statute that is enacted before January 1, 2006, deletes or extends
the dates on which it becomes inoperative and is repealed.
  SEC. 27.  Section 54686.2 of the Education Code is amended to read:

   54686.2.  This article shall become inoperative on July 1, 2005,
and as of January 1, 2006, is repealed, unless a later enacted
statute, which becomes effective on or before January 1, 2006,
deletes or extends the dates on which it becomes inoperative and is
repealed.
  SEC. 28.  Section 54735 is added to the Education Code, to read:
   54735.  This article shall become inoperative on July 1, 2005,
and, as of January 1, 2006, is repealed, unless a later enacted
statute that is enacted before January 1, 2006, deletes or extends
the dates on which it becomes inoperative and is repealed.
  SEC. 29.  Section 54763 is added to the Education Code, to read:
   54763.  This article shall become inoperative on July 1, 2005,
and, as of January 1, 2006, is repealed, unless a later enacted
statute that is enacted before January 1, 2006, deletes or extends
the dates on which it becomes inoperative and is repealed.
  SEC. 30.  Section 58562 of the Education Code is amended to read:
   58562.  This chapter shall become inoperative on July 1,  2005,
and, as of January 1, 2006, is repealed, unless a later enacted
statute, that becomes operative on or before January 1, 2006, deletes
or extends the dates on which it becomes inoperative and is
repealed.
  SEC. 31.  Section 58737 is added to the Education Code, to read:
   58737.  This chapter shall become inoperative on July 1, 2005,
and, as of January 1, 2006, is repealed, unless a later enacted
statute that is enacted before January 1, 2006, deletes or extends
the dates on which it becomes inoperative and is repealed.