BILL NUMBER: AB 1858	CHAPTERED
	BILL TEXT

	CHAPTER  914
	FILED WITH SECRETARY OF STATE  SEPTEMBER 30, 2004
	APPROVED BY GOVERNOR  SEPTEMBER 29, 2004
	PASSED THE ASSEMBLY  AUGUST 27, 2004
	PASSED THE SENATE  AUGUST 26, 2004
	AMENDED IN SENATE  AUGUST 23, 2004
	AMENDED IN SENATE  JULY 26, 2004
	AMENDED IN SENATE  JULY 1, 2004
	AMENDED IN SENATE  JUNE 21, 2004
	AMENDED IN ASSEMBLY  MAY 20, 2004
	AMENDED IN ASSEMBLY  APRIL 16, 2004

INTRODUCED BY   Assembly Member Steinberg
   (Principal coauthors:  Senators Alpert and Murray)
   (Coauthors: Assembly Members Koretz, Leno, and Matthews)

                        FEBRUARY 2, 2004

   An act to amend Sections 52052, 56157, 56341.5, 56366, 56366.1,
56366.5, and 56366.9 of, and to add Sections 49085, 56026.3, 56155.7,
56366.10, 56366.11, and  56366.12 to, the Education Code, to amend
Section 1501.1 of the Health and Safety Code, and to add Section
16014 to the Welfare and Institutions Code, relating to foster
children.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1858, Steinberg.  Foster children:  education.
   Existing law requires the California School Information Services
program administrator to submit to the State Board of Education a
plan to administer, coordinate, and manage the development and
implementation of an electronic statewide school information system
to address current problems of information exchange.  Existing law
requires the plan to prescribe the set of statewide data elements and
codes to be implemented by the California School Information
Services and requires these data elements and codes to comply with
specified privacy provisions.
   This bill would require the State Department of Education to
ensure that the California School Information Services' system meets
the needs of pupils in foster care and includes disaggregated data on
pupils in foster care.
   Existing law requires the Superintendent of Public Instruction,
with approval of the State Board of Education, to develop an Academic
Performance Index (API), to measure the performance of schools,
especially the performance of pupils, and to demonstrate comparable
improvement in academic achievement by all numerically significant
ethnic and socioeconomically disadvantaged subgroups within schools.
   Existing law authorizes a school under the jurisdiction of a
county board of education or a county superintendent of schools, a
community day school, or an alternative school to receive an API
score if the school has 11 or more valid test scores and the school
chooses to receive an API score for at least 3 years.
   This bill would also expand this authority for nonpublic,
nonsectarian schools.
   Existing law requires the Superintendent of Public Instruction,
with approval of the State Board of Education, to develop an
alternative accountability system for schools with certain API scores
and for certain other schools, including community day schools and
alternative schools.
   This bill would also require the Superintendent of Public
Instruction to develop an alternative accountability system for
nonpublic, nonsectarian schools.
   Existing law makes each school district, special education local
plan area, or county office of education responsible for providing
appropriate education to individuals with exceptional needs residing
in a licensed children's institution or foster family home located in
the geographical area covered by the local plan.  Existing law
defines a licensed children's institution as a residential facility
that is licensed, as specified, to provide nonmedical care to
children, including individuals with exceptional needs.
   This bill would prohibit a licensed children's institution and a
residential care facility from requiring, as a condition of admission
or residency, that a child be identified as an individual with
exceptional needs.
   Existing law makes each school district, special education local
plan area, or county office of education responsible for providing
appropriate education to individuals with exceptional needs residing
in a licensed children's institution or foster family home located in
the geographical area covered by the local plan.  Existing law
requires the school district, special education local plan area, or
county office of education, in providing appropriate programs, to
first consider services in programs operated by a public education
agency.  Under existing law, if those programs are not appropriate,
special education and related services are required to be provided by
contract with a nonpublic, nonsectarian school that is certified by
the Superintendent of Public Instruction.
   This bill would require a local educational agency that has placed
an individual with exceptional needs residing in a licensed children'
s institution or foster family home in a nonpublic, nonsectarian
school to conduct an annual evaluation, as part of the annual
individualized education program process, of whether the placement is
the least restrictive environment  that is appropriate to meet the
pupils' needs.  The bill would require the nonpublic, nonsectarian
school to report to the local educational agency that made the
placement, on a quarterly or trimester basis, as appropriate, the
educational progress demonstrated by the individual with exceptional
needs towards the attainment of the goals and objectives specified in
the individual's individualized education program.
   Existing law enumerates the requirements for meetings of an
individualized education program team.
   This bill would require an individual with exceptional needs to be
allowed, as part of his or her participation in the individualized
education program process, to provide confidential input to any
representative of his or her individualized education program team.
   Existing law authorizes school districts, special education local
plan areas, and county offices of education to enter into master
contracts for the provision of special education and related services
with nonpublic, nonsectarian schools or agencies, as defined, and
requires the master contract to be developed in accordance with
specified requirements, including, among others, that the master
contract include a description of the process being utilized by the
school district, county office of education, or special education
local plan area to oversee and evaluate placements in nonpublic,
nonsectarian schools.
   This bill would require the local educational agency to, at least
once every year and, to the extent possible, as part of the
individualized education program process, conduct certain evaluations
and considerations.  To the extent this bill would impose additional
duties on those local educational agencies, the bill would impose a
state-mandated local program.
   The bill would, in addition, require the master contract to
include that, with respect to a nonpublic, nonsectarian school that
is associated, as specified, with a licensed children's institution,
there be a method of evaluating whether the school meets specified
guidelines, and with respect to a nonpublic, nonsectarian school, the
school be subject to the alternative accountability system of the
Public School Performance Accountability Program in the same manner
as public schools during the school's testing period, as specified,
and each pupil placed in the school be tested in accordance with that
accountability program, and the school prepare a school
accountability report card, as provided.  The bill would require the
test results to be reported by the nonpublic, nonsectarian school to
the State Department of Education.
   Existing law authorizes a master contract for special education
and related services provided by a nonpublic, nonsectarian school or
agency only if the school or agency has been certified by the
Superintendent of Public Instruction as meeting specified standards.
Existing law sets forth the certification application process and
procedures for the nonpublic, nonsectarian schools or agencies that
seek certification and provides that the Superintendent of Public
Instruction may certify a nonpublic, nonsectarian school or agency
for a period of not longer than 4 years.  Existing law requires that
only those nonpublic, nonsectarian schools and agencies that provide
special education that utilize staff who hold, or are receiving
training under the supervision of staff who hold, a current valid
California credential or license, as specified, may be certified.
   This bill would instead authorize the Superintendent of Public
Instruction to certify a nonpublic, nonsectarian school or agency for
a period of not longer than 18 months, and would make related
changes.  The bill would require a nonpublic, nonsectarian school or
agency to make notification of its intent to seek certification.  The
bill would require that only those nonpublic, nonsectarian schools
and agencies that provide special education that utilize staff who
hold a certificate, permit, or other document equivalent to that
which staff in a public school would be required to hold may be
certified.
   This bill would require a nonpublic, nonsectarian school that
provides special education and related services to an individual with
exceptional needs to certify in writing to the Superintendent of
Public Instruction that the school satisfies various requirements
relating to, among others, access to standards-based curriculum and
instructional materials, access to specific instruction and
assistance, and a discipline policy.
   Existing law authorizes the Superintendent of Public Instruction
to monitor a nonpublic, nonsectarian school or agency onsite at any
time without prior notice when there is substantial reason to believe
that there is an immediate danger to the health, safety, or welfare
of a child.
   This bill would require the Superintendent of Public Instruction
to conduct an investigation onsite at any time without prior notice
under those circumstances and monitor the facilities, the educational
environment, and the quality of the educational program of an
existing certified nonpublic, nonsectarian school or agency on a
3-year cycle, as provided.  The bill would also require the
Superintendent of Public Instruction, with respect to a nonpublic,
nonsectarian school, to conduct an investigation, which is to include
an unannounced onsite visit, if the Superintendent of Public
Instruction receives evidence of a significant deficiency in the
quality of educational services provided by the school or
noncompliance with other specified requirements.  The bill would
place additional requirements on a nonpublic, nonsectarian school
regarding financial recordkeeping, submitting an annual budget and an
annual audit, and documenting services and programs.
   Existing law requires the Superintendent of Public Instruction to
charge a nonpublic, nonsectarian school or agency a reasonable fee
for certification and requires the nonpublic, nonsectarian school or
agency to pay the fee when it applies for certification and when it
updates its application for annual review by the Superintendent of
Public Instruction.  Existing law prescribes the base fee for these
purposes based on the number of pupils.
   This bill would increase the base fees.
   Existing law requires a school district, special education local
plan area, or county office of education, upon receipt of a request
from a nonpublic, nonsectarian school for payment for services
provided under contract, to either send a warrant within 45 days or
notify the school or agency within 10 working days of the reason why
payment will not be made.
   This bill would provide that any educational funds received from a
local educational agency for the educational costs of individuals
with exceptional needs it has placed in nonpublic, nonsectarian
schools are to be used solely for those purposes and not for the
costs of a residential program.
   This bill would require the State Department of Education to
implement a program, as provided, to integrate individuals with
exceptional needs placed in nonpublic, nonsectarian schools into
public schools.
   Existing law prohibits a licensed children's institution at which
individuals with exceptional needs reside from requiring as a
condition of residential placement that it provide the appropriate
educational programs to those individuals through a nonpublic,
nonsectarian school or agency owned or operated by a licensed
children's institution.  Existing law provides that those services
may only be provided if the special education local plan area
determines that alternative educational programs are not available.
   This bill would prohibit a licensed children's institution at
which individuals with exceptional needs reside from requiring as a
condition of residential placement that it provide the appropriate
educational programs to those individuals through a nonpublic,
nonsectarian school or agency owned, operated by, or associated with,
a licensed children's institution.  The bill would provide that
those services may only be provided if the special education local
plan area determines that appropriate public alternative education
programs are not available.
   This bill would require a nonpublic, nonsectarian school to ensure
confidential communication between a pupil of the school and members
of the pupil's individualized education program team, at the pupil's
discretion.
   This bill would change all references to a school district,
special education local plan area, and county office of education in
those provisions to a local educational agency, and would define a
local educational agency as a school district, a county office of
education, a charter school participating as a member of a special
education local plan area, or a special education local plan area.
   This bill would require the State Department of Education and the
State Department of Social Services to collaborate with specified
entities to increase access to federal funds for foster youth
services.
   This bill would also delete obsolete language and make related
changes and various technical, nonsubstantive changes.
  The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement, including the creation of a State Mandates Claims Fund
to pay the costs of mandates that do not exceed $1,000,000 statewide
and other procedures for claims whose statewide costs exceed
$1,000,000.
   This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.


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


  SECTION 1.  (a) The Legislature hereby finds and declares the
following:
   (1) According to recent reports by the Little Hoover Commission
and the American Institutes for Research, the educational outcomes
for our children while in foster care are substandard and, in many
cases, California's foster care and educational systems do not
provide the educational, life skills, and employment supports and
opportunities to ensure that all foster children are able to
successfully transition from dependency to self-sufficiency.  Foster
children that have been identified as requiring special education
services, in order to benefit from their education, face
extraordinary challenges.
   (2) Pursuant to two recent reports, which were requested and
funded by the Legislature and conducted by the American Institutes
for Research, the subset of children in foster care who are also in
special education and who have been placed in nonpublic schools do
not always receive the same educational opportunities and often do
not have access to the same caliber of instruction and instructional
materials as individuals with exceptional needs in public schools.
   (3) In the 2002-03 fiscal year, California spent over $129 million
on 4,700 pupils residing in licensed children's institutions and
placed in nonpublic schools to fund the provision of special
education services by the nonpublic schools for this population.
   (4) Approximately one-third of youth emancipating from foster care
fail to complete high school and a limited number enter college,
although two-thirds express a desire to attend college. Of those who
do complete high school, not all of those pupils receive a grade
point average, which is required for admission to a higher education
institution.
   (5) After emancipating from foster care, at least 25 percent
experience homelessness, 33 percent receive welfare, 50 percent face
unemployment, and approximately 25 percent are arrested and spend
time incarcerated.  Some of these problems could be diminished by
ensuring that youth in foster care, including those who have been
identified as individuals with exceptional needs, also receive the
services that will assist them to transition to financial
independence.
   (6) Pupils in foster care are frequently moved to a different
school, and often experience multiple placements during each school
year, slowing their educational progress.
   (7) Pupils in foster care lack parents to advocate for appropriate
educational placement and service, and rely on surrogate parents,
responsible adults, or the state to establish and monitor standards
for curriculum, instruction, and services.
   (8) California's current funding system for individuals with
exceptional needs in foster care provides fiscal incentives for
placement in a nonpublic school.  These incentives may conflict with
the goal of giving individuals with exceptional needs access to the
least restrictive environment appropriate to their needs.  According
to the report of the American Institutes for Research, California's
current system of funding nonpublic school services for children
residing in licensed children's institutions is contrary to federal
law.
   (9) California's funding system also provides insufficient
incentives to school districts to control costs when a child residing
in a licensed children's institution is placed in a nonpublic
school.  According to the report of the American Institutes for
Research, California now spends between sixty-five thousand dollars
($65,000) and one hundred fifty thousand dollars ($150,000) per child
annually to house and educate a child in foster care residing in a
group home, the higher costs of which are incurred for those placed
in a nonpublic school.
   (10) State standards are substantially less comprehensive for
nonpublic schools than the standards and monitoring applied to
California's public schools.
   (11) Accountability for educational outcomes for pupils in foster
care is vague and the system for monitoring the educational progress
of pupils in foster care placed in nonpublic schools, as well as
those in the regular public schools, is inadequate.
   (12) Foster children and other pupils who have been identified as
individuals with exceptional needs have the right to the best
educational placement, and in accordance with the federal Individuals
with Disabilities Education Act requirement for a free appropriate
public education that places pupils in the least restrictive
environment appropriate to their needs, whether that is in a public
school or a nonpublic school.
   (b) It is therefore the intent of the Legislature to do all of the
following:
   (1) Increase state and local accountability for individuals with
exceptional needs placed in nonpublic schools, including those
residing in foster care.
   (2) Improve state and local monitoring of nonpublic schools.
   (3) Ensure that foster children and individuals with exceptional
needs who are placed in nonpublic schools are included in the state's
testing system in order to monitor and improve their educational
outcomes.
   (4) Include the nonpublic schools and individuals with exceptional
needs who reside in licensed children's institutions in the special
education Focused Monitoring and Technical Assistance System at the
state and local level.
   (5) Require the State Department of Education to add nonpublic
schools to the Public School Accountability Act in order to measure
pupil performance at nonpublic schools.
   (6) Create a funding structure that is neutral in regard to the
type of educational placement necessary and best suited for the pupil
and that allows public schools to access funding currently available
only for nonpublic schools and agencies in serving individuals with
exceptional needs in foster care.
  SEC. 2.  Section 49085 is added to the Education Code, to read:
   49085.  The department shall ensure that the California School
Information Services system meets the needs of pupils in foster care
and includes disaggregated data on pupils in foster care.
  SEC. 3.  Section 52052 of the Education Code is amended to read:
   52052.  (a) (1) The Superintendent of Public Instruction, with
approval of the  state board, shall develop an Academic Performance
Index (API), to measure the performance of schools, especially the
academic performance of pupils, and to demonstrate comparable
improvement in academic achievement by all numerically significant
ethnic and socioeconomically disadvantaged subgroups within schools.

   (2) For purposes of this section, a numerically significant ethnic
or socioeconomically disadvantaged subgroup is a subgroup that
constitutes at least 15 percent of a school's total pupil population
and consists of at least 30 pupils.  An ethnic or socioeconomically
disadvantaged subgroup of at least 100 pupils constitutes a
numerically significant subgroup, even if the subgroup does not
constitute 15 percent of the total enrollment at a school.  For
schools whose API scores are based on test scores of no fewer than 11
and no more than 99 pupils, numerically significant subgroups shall
be defined by the Superintendent of Public Instruction, with approval
by the  state board.
   (3) The API shall consist of a variety of indicators currently
reported to the State Department of Education including, but not
limited to, the results of the achievement test administered pursuant
to Section 60640, attendance rates for pupils and certificated
school personnel for elementary schools, middle schools, and
secondary schools, and the graduation rates for pupils in secondary
schools.
   (A) The pupil data collected for the API that comes from the
achievement test administered pursuant to Sections 60640 and 60644
and the high school exit examination administered pursuant to Section
60851, when fully implemented, shall be disaggregated by special
education status, English language learners, socioeconomic status,
gender and ethnic group.  Only the test scores of pupils who were
counted as part of a school district's enrollment in the October
California Basic Educational Data System's data collection for the
current fiscal year and were continuously enrolled during that year
may be included in the test results reported in the API.  Results of
the achievement test and other tests specified in subdivision (b)
shall constitute at least 60 percent of the value of the index.
   (B) Before including high school graduation rates and attendance
rates in the index, the Superintendent of Public Instruction shall
determine the extent to which the data are currently reported to the
state and the accuracy of the data.
   (C) If the Superintendent of Public Instruction determines that
accurate data for these indicators is not available, the
Superintendent of Public Instruction shall report to the Governor and
the Legislature by September 1, 1999, and recommend necessary action
to implement an accurate reporting system.
   (b) Pupil scores from the following tests, when available and when
found to be valid and reliable for this purpose, shall be
incorporated into the API:
   (1) The assessment of the applied academic skills matrix test
developed pursuant to Section 60604.
   (2) The nationally normed test designated pursuant to Section
60642.
   (3) The standards-based achievement tests provided for in Section
60642.5.
   (4) The high school exit examination.
   (c) Based on the API, the Superintendent of Public Instruction
shall develop, and the  state board shall adopt, expected annual
percentage growth targets for all schools based on their API baseline
score from the previous year.  Schools are expected to meet these
growth targets through effective allocation of available resources.
For schools below the statewide API performance target adopted by the
state board pursuant to subdivision (d), the minimum annual
percentage growth target shall be 5 percent of the difference between
a school's actual API score and the statewide API performance
target, or one API point, whichever is greater.  Schools at or above
the statewide API performance target shall have, as their growth
target, maintenance of their API score above the statewide API
performance target.  However, the state board may set differential
growth targets based on grade level of instruction and may set higher
growth targets for the lowest performing schools because they have
the greatest room for improvement.  To meet its growth target, a
school shall demonstrate that the annual growth in its API is equal
to or more than its schoolwide annual percentage growth target and
that all numerically significant ethnic and socioeconomically
disadvantaged subgroups, as defined in subdivision (a), are making
comparable improvement.
   (d) Upon adoption of state performance standards by the  state
board, the Superintendent of Public Instruction shall recommend, and
the state board shall adopt, a statewide API performance target that
includes consideration of performance standards and represents the
proficiency level required to meet the state performance target.
When the API is fully developed, schools must, at a minimum, meet
their annual API growth targets to be eligible for the Governor's
Performance Award Program as set forth in Section 52057.  The state
board may establish additional criteria that schools must meet to be
eligible for the Governor's Performance  Award Program.
   (e) The API shall be used for both of the following:
   (1) Measuring the progress of schools selected for participation
in the Immediate Intervention/Underperforming Schools Program
pursuant to Section 52053.
   (2) Ranking all public schools in the state for the purpose of the
High Achieving/Improving Schools Program pursuant to Section 52056.

   (f) (1) A comprehensive high school, middle school, or elementary
school with 11 to 99 valid test scores of pupils who were enrolled in
a school within the same school district in the prior fiscal year
shall receive an API score with an asterisk that indicates less
statistical certainty than API scores based on 100 or more test
scores.
   (2) A school under the jurisdiction of a county board of education
or a county superintendent of schools, a community day school, a
nonpublic, nonsectarian school as identified in Section 56366, or an
alternative school, including continuation high schools and
opportunity schools, may receive an API score if the school has 11 or
more valid test scores and the school chooses to receive an API
score for at least three years.
   (3) A school that participates in the Immediate
Intervention/Underperforming Schools Program described in Section
52053 shall receive an API score for the duration of its
participation in that program, unless the Superintendent of Public
Instruction determines that an API score would be an invalid measure
of the school's performance for one or more of the following reasons:

   (A) Irregularities in testing procedures occurred.
   (B) The data used to calculate the school's API score are not
representative of the pupil population at the school.
   (C) Significant demographic changes in the school's pupil
population render year-to-year comparisons of pupil performance
invalid.
   (D) The Department of Education discovers or receives information
indicating that the integrity of the school's API score has been
compromised.
   (g) Only schools with 100 or more test scores contributing to the
API may be included in the API rankings.
   (h) The Superintendent of Public Instruction, with the approval of
the state board, shall develop an alternative accountability system
for schools with fewer than 100 test scores contributing to the
schools' API scores, and for schools under the jurisdiction of a
county board of education or a county superintendent of schools,
community day schools, nonpublic, nonsectarian schools as identified
in Section 56366, and alternative schools serving high-risk pupils,
including continuation high schools and opportunity schools.
  SEC. 4.  Section 56026.3 is added to the Education Code, to read:
   56026.3.  "Local educational agency" means a school district, a
county office of education, a charter school participating as a
member of a special education local plan area, or a special education
local plan area.
  SEC. 5.  Section 56155.7 is added to the Education Code, to read:
   56155.7.  A licensed children's institution may not require that a
child be identified as an individual with exceptional needs as a
condition of admission  or residency.
  SEC. 6.  Section 56157 of the Education Code is amended to read:
   56157.  (a) In providing appropriate programs to individuals with
exceptional needs residing in licensed children's institutions or
foster family homes, the local educational agency shall first
consider services in programs operated by public education agencies
for individuals with exceptional needs.  If those programs are not
appropriate, special education and related services shall be provided
by contract with a nonpublic, nonsectarian school.
   (b) If special education and related services are provided by
contract with a nonpublic, nonsectarian school, or with a licensed
children's institution under this article, the terms of the contract
shall be developed in accordance with the provisions of Section
56366.
   (c) If an individual with exceptional needs residing in a licensed
children's institution or foster family home is placed in a
nonpublic, nonsectarian school, the local educational agency that
made the placement shall conduct an annual evaluation,  in accordance
with federal law as part of the annual individualized education
program process, of whether the placement is the least restrictive
environment that is appropriate to meet the pupil's needs.
   (d) If an individual with exceptional needs residing in a licensed
children's institution or foster family home is placed in a
nonpublic, nonsectarian school, the nonpublic, nonsectarian school
shall report to the local  educational agency that made the
placement, on a quarterly or trimester basis, as appropriate, the
educational progress demonstrated by the individual with exceptional
needs towards the attainment of the goals and objectives specified in
the individual's individualized education program.  Pursuant to
federal law, no local educational agency shall refer a pupil to a
nonpublic, nonsectarian school unless the services required by the
individualized education program of the pupil can be assured.
  SEC. 7.  Section 56341.5 of the Education Code is amended to read:

   56341.5.  (a) Each local educational agency convening a meeting of
the individualized education program team shall take steps to ensure
that no less than one of the parents or guardians of the individual
with exceptional needs are present at each individualized education
program meeting or are afforded the opportunity to participate.
   (b) Parents or guardians shall be notified of the individualized
education program meeting early enough to ensure an opportunity to
attend.
   (c) The individualized education program meeting shall be
scheduled at a mutually agreed-upon time and place.  The notice of
the meeting under subdivision (b) shall indicate the purpose, time,
and location of the meeting and who shall be in attendance.  Parents
or guardians shall also be informed in the notice of the right,
pursuant to clause (ii) of paragraph (1) of subsection (b) of Section
300.345 of Title 34 of the Code of Federal Regulations, to bring
other people to the meeting who have knowledge or special expertise
regarding the individual with exceptional needs.
   (d) As part of the participation of an individual with exceptional
needs in the individualized education program process, as required
by federal law, the individual with exceptional needs shall be
allowed to provide confidential input to any representative of his or
her individualized education program team.
   (e) For an individual with exceptional needs beginning at age 14,
or younger, if appropriate, the meeting notice shall also indicate
that a purpose of the meeting will be the development of a statement
of the transition services needs of the individual required by
subdivision (a) of Section 56345.1 and indicate that the individual
with exceptional needs is also invited to attend.  In accordance with
paragraph (3) of subsection (b) of Section 300.345 of the Code of
Federal Regulations, for an individual with exceptional needs
beginning at 16 years of age or younger, if appropriate, the meeting
notice shall also indicate that a purpose of the meeting is the
consideration of needed transition services for the individual
required by subdivision (b) of Section 56345.1 and indicate that the
individual with exceptional needs is invited to attend.  If the pupil
does not attend the individualized education program meeting, the
local educational agency shall take steps to ensure that the pupil's
preferences and interests are considered in accordance with paragraph
(2) of subsection (b) of Section 300.344 of Title 34 of the Code of
Federal Regulations.
   (f) The meeting notice shall also identify any other local agency
in accordance with paragraph (3) of subsection (b) of Section 300.344
of Title 34 of the Code of Federal Regulations.
   (g) If no parent or guardian can attend the meeting, the local
educational agency shall use other methods to ensure parent or
guardian participation, including individual or conference telephone
calls.
   (h) A meeting may be conducted without a parent or guardian in
attendance if the local educational agency is unable to convince the
parent or guardian that he or she should attend.  In this event, the
local educational agency shall maintain a record of its attempts to
arrange a mutually agreed-upon time and place, as follows:
   (1) Detailed records of telephone calls made or attempted and the
results of those calls.
   (2) Copies of correspondence sent to the parents or guardians and
any responses received.
   (3) Detailed records of visits made to the home or place of
employment of the parent or guardian and the results of those visits.

   (i) The local educational agency shall take whatever action is
necessary to ensure that the parent or guardian understands the
proceedings at a meeting, including arranging for an interpreter for
parents or guardians with deafness or whose native language is a
language other than English.
   (j) The local educational agency shall give the parent or guardian
a copy of the individualized education program, at no cost to the
parent or guardian.
  SEC. 8.  Section 56366 of the Education Code is amended to read:
   56366.  It is the intent of the Legislature that the role of a
nonpublic, nonsectarian school or agency shall be maintained and
continued as an alternative special education service available to a
local educational agency and parents.
   (a) The master contract for nonpublic, nonsectarian school or
agency services shall be developed in accordance with the following
provisions:
   (1) The master contract shall specify the general administrative
and financial, including teacher-to-pupil ratios, between the
nonpublic, nonsectarian school or agency and the local educational
agency to provide the special education and designated instruction
and services, as well as transportation specified in the pupil's
individualized education program.  The administrative provisions of
the contract also shall include procedures for recordkeeping and
documentation, and the maintenance of school records by the
contracting local educational agency to ensure that appropriate high
school graduation credit is received by the pupil.  The contract may
allow for partial or full-time attendance at the nonpublic,
nonsectarian school.
   (2) (A) The master contract shall include an individual services
agreement for each pupil placed by a local educational agency that
will be negotiated for the length of time for which nonpublic,
nonsectarian school or agency special education and designated
instruction and services are specified in the pupil's individualized
education program.
   (B) The master contract shall include a description of the process
being utilized by the local educational agency to oversee and
evaluate placements in nonpublic, nonsectarian schools, as required
by federal law.  This description shall include a method for
evaluating whether the pupil is making appropriate educational
progress.  At least once every year, the local educational agency
shall do all of the following and, to the extent possible, the
following shall be conducted as part of the development and provision
of an individualized education program:
   (i) Evaluate the educational progress of each pupil placed in a
nonpublic, nonsectarian school, including all state assessment
results pursuant to the requirements of Section 52052.
   (ii) Consider whether or not the needs of the pupil continue to be
best met at the nonpublic, nonsectarian school and whether changes
to the individualized education program of the pupil are necessary,
including whether the pupil may be transitioned to a public school
setting.  This consideration shall be made at the meeting required by
subdivision (d) of Section 56343.
   (C) In the case of a nonpublic, nonsectarian school that is owned,
operated by, or associated with a licensed children's institution,
the master contract shall include a method for evaluating whether the
nonpublic, nonsectarian school is in compliance with the mandate set
forth in Section 56366.9 of the Education Code and subdivision (b)
of Section  1501.1 of the Health and Safety Code.
   (3) Changes in educational instruction, services, or placement
provided under contract may only be made on the basis of revisions to
the pupil's individualized education program.
   At any time during the term of the contract or individual services
agreement, the parent, the nonpublic, nonsectarian school or agency,
or the local educational agency may request a review of the pupil's
individualized education program by the individualized education
program team.  Changes in the administrative or financial agreements
of the master contract that do not alter the individual services
agreement that outlines each pupil's educational instruction,
services, or placement may be made at any time during the term of the
contract as mutually agreed by the nonpublic, nonsectarian school or
agency and the local educational agency.
   (4) The master contract or individual services agreement may be
terminated for cause.  The cause shall not be the availability of a
public class initiated during the period of the contract unless the
parent agrees to the transfer of the pupil to a public school
program.  To terminate the contract either party shall give 20 days'
notice.
   (5) The nonpublic, nonsectarian school or agency shall provide all
services specified in the individualized education program, unless
the nonpublic, nonsectarian school or agency and the local
educational agency agree otherwise in the contract or individual
services agreement.
   (6) Related services provided pursuant to a nonpublic,
nonsectarian agency master contract shall only be provided during the
period of the child's regular or extended school year program, or
both, unless otherwise specified by the pupil's individualized
education program.
   (7) The nonpublic, nonsectarian school or agency shall report
attendance of pupils receiving special education and designated
instruction and services as defined by Section 46307 for purposes of
submitting a warrant for tuition to each contracting  local
educational agency.
   (8) (A) A nonpublic, nonsectarian school, is subject to the
alternative accountability system developed pursuant to Section
52052, in the same manner as public schools and each pupil placed in
the nonpublic, nonsectarian school by a local educational agency
shall be tested by qualified staff of the nonpublic, nonsectarian
school in accordance with that accountability program.  The test
results shall be reported by the nonpublic, nonsectarian school to
the department.
   (B) Beginning with the 2006-07 school year testing cycle, each
nonpublic, nonsectarian school shall determine its STAR testing
period subject to subdivisions (b) and (c) of Section 60640.  The
nonpublic, nonsectarian school shall determine this period based on
completion of 85 percent of the instructional year at that nonpublic,
nonsectarian school, plus and minus 10 days, resulting in a 21-day
period.  Each nonpublic, nonsectarian school shall notify the
district of residence of a pupil enrolled in the school of its
testing period.  Staff at the nonpublic, nonsectarian school who
shall administer the assessments shall attend the
                          regular testing training sessions provided
by the district of residence.  If staff from a nonpublic,
nonsectarian school have received training from one local educational
agency, that training will be sufficient for all local educational
agencies that send pupils to the nonpublic, nonsectarian school.  The
district of residence shall order testing materials for its pupils
that have been placed in the nonpublic, nonsectarian  school.  The
state board shall adopt regulations to facilitate the distribution of
and collection of testing materials.
   (9) With respect to a nonpublic, nonsectarian school, the school
shall prepare a school accountability report card in accordance with
Section 33126.
   (b) The master contract or individual services agreement shall not
include special education transportation provided through the use of
services or equipment owned, leased, or contracted by a local
educational agency for pupils enrolled in the nonpublic, nonsectarian
school or agency unless provided directly or subcontracted by that
nonpublic, nonsectarian school or agency.
   The superintendent shall withhold 20 percent of the amount
apportioned to a local educational agency for costs related to the
provision of nonpublic, nonsectarian school or agency placements if
the superintendent finds that the local educational agency is in
noncompliance with this subdivision.  This amount shall be withheld
from the apportionments in the fiscal year following the
superintendent's finding of noncompliance.  The superintendent shall
take other appropriate actions to prevent noncompliant practices from
occurring and report to the Legislature on those actions.
   (c) (1) If the pupil is enrolled in the nonpublic, nonsectarian
school or agency with the approval of the local educational agency
prior to agreement to a contract or individual services agreement,
the local educational agency shall issue a warrant, upon submission
of an attendance report and claim, for an amount equal to the number
of creditable days of attendance at the per diem tuition rate agreed
upon prior to the enrollment of the pupil.  This provision shall be
allowed for 90 days during which time the contract shall be
consummated.
   (2) If after 60 days the master contract or individual services
agreement has not been finalized as prescribed in paragraph (1) of
subdivision (a), either party may appeal to the county superintendent
of schools, if the county superintendent is not participating in the
local plan involved in the nonpublic, nonsectarian school or agency
contract, or the superintendent, if the county superintendent is
participating in the local plan involved in the contract, to
negotiate the contract.  Within 30 days of receipt of this appeal,
the county superintendent or the superintendent, or his or her
designee, shall mediate the formulation of a contract which shall be
binding upon both parties.
   (d) A master contract for special education and related services
provided by a nonpublic, nonsectarian school or agency may not be
authorized under this part, unless the school or agency has been
certified as meeting those standards relating to the required special
education and specified related services and facilities for
individuals with exceptional needs.  The certification shall result
in the school or agency receiving approval to educate pupils under
this part for a period no longer than  18 months from the date of the
initial approval.
   (e) By September 30, 1998, the procedures, methods, and
regulations for the purposes of contracting for nonpublic,
nonsectarian school and agency services pursuant to this section and
for reimbursement pursuant to Sections 56836.16 and 56836.20 shall be
developed by the superintendent in consultation with statewide
organizations representing providers of special education and
designated instruction and services.  The regulations shall be
established by rules and regulations issued by the board.
  SEC. 9.  Section 56366.1 of the Education Code is amended to read:

   56366.1.  (a) A nonpublic, nonsectarian school or agency that
seeks certification shall file an application with the superintendent
on forms provided by the department and include the following
information on the application:
   (1) A description of the special education and designated
instruction and services provided to individuals with exceptional
needs if the application is for nonpublic, nonsectarian school
certification.
   (2) A description of the designated instruction and services
provided to individuals with exceptional needs if the application is
for nonpublic, nonsectarian agency certification.
   (3) A list of appropriately qualified staff, a description of the
credential, license, or registration that qualifies each staff member
rendering special education or designated instruction and services
to do so, and copies of their credentials, licenses, or certificates
of registration with the appropriate state or national organization
that has established standards for the service rendered.
   (4) An annual operating budget.
   (5) Affidavits and assurances necessary to comply with all
applicable federal, state, and local laws and regulations which
include criminal record summaries required of all nonpublic school or
agency personnel having contact with minor children under Section
44237.
   (b) (1) The applicant shall provide the special education local
plan area in which the applicant is located with the written
notification of its intent to seek certification or renewal of its
certification.  The applicant shall submit on a form, developed by
the department, a signed verification by local educational agency
representatives that they have been notified of the intent to certify
or renew certification.  The verification shall include a statement
that  local educational agency representatives in which the applicant
is located have had the opportunity to review the application at
least 60 calendar days prior to submission of an initial application
to the superintendent, or at least 30 calendar days prior to
submission of a renewal application to the superintendent.  The
signed verification shall provide assurances that local educational
agency representatives have had the opportunity to provide input on
all required components of the application.
   (2) If the applicant has not received a response from the local
educational agency 30 days from the date of the return receipt, the
applicant may file the application with the superintendent.  A copy
of the return receipt shall be included with the application as
verification of notification efforts to the local educational agency.

   (3) The department shall mail renewal application materials to
certified nonpublic, nonsectarian schools and agencies at least 120
days prior to the date their current certification expires.
   (c) If the applicant operates a facility or program on more than
one site, each site shall be certified.
   (d) If the applicant is part of a larger program or facility on
the same site, the superintendent shall consider the effect of the
total program on the applicant.  A copy of the policies and standards
for the nonpublic, nonsectarian school or agency and the larger
program shall be available to the superintendent.
   (e) Prior to certification, the superintendent shall conduct an
onsite review of the facility and program for which the applicant
seeks certification.  The superintendent may be assisted by
representatives of the special education local plan area in which the
applicant is located and a nonpublic, nonsectarian school or agency
representative who does not have a conflict of interest with the
applicant.  The superintendent shall conduct an additional onsite
review of the facility and program within four years of the
certification effective date, unless the superintendent conditionally
certifies the school or agency or unless the superintendent receives
a formal complaint against the school or agency.  In the latter two
cases, the superintendent shall conduct an onsite review at least
annually.
   (f) The superintendent shall make a determination on an
application within 120 days of receipt of the application and shall
certify, conditionally certify, or deny certification to the
applicant.  If the superintendent fails to take one of these actions
within 120 days, the applicant is automatically granted conditional
certification for a period terminating on August 31, of the current
school year.  If certification is denied, the superintendent shall
provide reasons for the denial.  The superintendent may certify the
school or agency for a period of not longer than one year.
   (g) Certification becomes effective on the date the nonpublic,
nonsectarian school or agency meets all the application requirements
and is approved by the superintendent.  Certification may be
retroactive if the school or agency met all the requirements of this
section on the date the retroactive certification is effective.
Certification expires on December 31 of the terminating year.
   (h) The superintendent shall annually review the certification of
each nonpublic, nonsectarian school and agency.  For this purpose, a
certified school or agency shall annually update its application
between August 1 and October 31, unless the board grants a waiver
pursuant to Section 56101.  The superintendent may conduct an onsite
review as part of the annual review.
   (i) (1) The superintendent shall conduct an investigation of a
nonpublic, nonsectarian school or agency onsite at any time without
prior notice if there is substantial reason to believe that there is
an immediate danger to the health, safety, or welfare of a child.
The superintendent shall document the concern and submit it to the
nonpublic, nonsectarian school or agency at the time of the onsite
investigation.  The superintendent shall require a written response
to any noncompliance or deficiency found.
   (2) With respect to a nonpublic, nonsectarian school, the
superintendent shall conduct an investigation, which may include an
unannounced onsite visit, if the superintendent receives evidence of
a significant deficiency in the quality of educational services
provided or a violation of Section 56366.9 or noncompliance with the
policies expressed by subdivision (b) of Section 1501 of the Health
and Safety Code by the nonpublic, nonsectarian school.  The
superintendent shall document the complaint and the results of the
investigation and shall provide copies of the documentation to the
complainant, the nonpublic, nonsectarian school, and the contracting
local educational agency.
   (3) Violations or noncompliance documented pursuant to paragraph
(1) or (2) shall be reflected in the status of the certification of
the  school, at the discretion of the superintendent, pending an
approved plan of correction by the nonpublic, nonsectarian school.
The department shall retain for a period of 10 years, all violations
pertaining to certification of the nonpublic, nonsectarian school or
agency.
   (j) The superintendent shall monitor the facilities, the
educational environment, and the quality of the educational program,
including the teaching staff, the credentials authorizing service,
the standards-based core curriculum being employed, and the standard
focused instructional materials used, of an existing certified
nonpublic, nonsectarian school or agency on a three-year cycle, as
follows:
   (1) The nonpublic, nonsectarian school or agency shall complete a
self-review in year one.
   (2) The superintendent shall conduct an onsite review of the
nonpublic, nonsectarian school or agency in year two.
   (3) The superintendent shall conduct a followup visit to the
nonpublic, nonsectarian school or agency in year three.
   (k) (1) Notwithstanding any other provision of law, the
superintendent may not certify a nonpublic, nonsectarian school or
agency that proposes to initiate or expand services to pupils
currently educated in the immediate prior fiscal year in a juvenile
court program, community school pursuant to Section 56150, or other
nonspecial education program, including independent study or adult
school, or both, unless the nonpublic, nonsectarian school or agency
notifies the county superintendent of schools and the special
education local plan area in which the proposed new or expanded
nonpublic, nonsectarian school or agency is located of its intent to
seek certification.
   (2) The notification shall occur no later than the December 1
prior to the new fiscal year in which the proposed or expanding
school or agency intends to initiate services.  The notice shall
include the following:
   (A) The specific date upon which the proposed nonpublic,
nonsectarian school or agency is to be established.
   (B) The location of the proposed program or facility.
   (C) The number of pupils proposed for services, the number of
pupils currently served in the juvenile court, community school, or
other nonspecial education program, the current school services
including special education and related services provided for these
pupils, and the specific program of special education and related
services to be provided under the proposed program.
   (D) The reason for the proposed change in services.
   (E) The number of staff that will provide special education and
designated instruction and services and hold a current valid
California credential or license in the service rendered or
certificate of registration to provide occupational therapy.
   (3) In addition to the requirements in subdivisions (a) through
(f), inclusive, the superintendent shall require and consider the
following in determining whether to certify a nonpublic, nonsectarian
school or agency as described in this subdivision:
   (A) A complete statement of the information required as part of
the notice under paragraph (1).
   (B) Documentation of the steps taken in preparation for the
conversion to a nonpublic, nonsectarian school or agency, including
information related to changes in the population to be served and the
services to be provided pursuant to each pupil's individualized
education program.
   (4) Notwithstanding any other provision of law, the certification
becomes effective no earlier than July 1, if the school or agency
provided the notification required pursuant to paragraph (1).
   (l) (1) Commencing July 1, 2006, notwithstanding any other
provision of law, the superintendent may not certify or renew the
certification of a nonpublic, nonsectarian school or agency, unless
all of the following conditions are met:
   (A) The entity operating the nonpublic, nonsectarian school or
agency maintains separate financial records for each entity that it
operates, with each nonpublic, nonsectarian school or agency
identified separately from any licensed children's institution that
it operates.
   (B) The entity submits an annual budget that identifies the
projected costs and revenues for each entity and demonstrates that
the rates to be charged are reasonable to support the operation of
the entity.
   (C) The entity submits an entity-wide annual audit that identifies
its costs and revenues, by entity, in accordance with generally
accepted accounting and auditing principles.  The audit shall clearly
document the amount of moneys received and expended on the education
program provided by  the nonpublic, nonsectarian school.
   (D) The relationship between various entities operated by the same
entity are documented, defining the responsibilities of the
entities.  The documentation shall clearly identify the services to
be provided as part of each program, for example, the residential or
medical program, the mental health program, or the educational
program.  The  entity shall not seek funding from a public agency for
a service, either separately or as part of a package of services, if
the service is funded by another public agency, either separately or
as part of a package of services.
   (2) For purposes of this section, the term licensed children's
institution  has the same meaning as it is defined by Section
56155.5.
   (m) The school or agency shall be charged a reasonable fee for
certification.  The superintendent may adjust the fee annually
commensurate with the statewide average percentage inflation
adjustment computed for revenue limits of unified school districts
with greater than 1,500 units of average daily attendance if the
percentage increase is reflected in the district revenue limit for
inflation purposes.  For purposes of this section, the base fee shall
be the following:


     (1)  1-5 pupils  .................. $   300
     (2)  6-10 pupils ..................     500
     (3) 11-24 pupils ..................   1,000
     (4) 25-75 pupils ..................   1,500
     (5) 76 pupils and over ............   2,000

   The school or agency shall pay this fee when it applies for
certification and when it updates its application for annual review
by the superintendent.  The superintendent shall use these fees to
conduct onsite reviews, which may include field experts.  No fee
shall be refunded if the application is withdrawn or is denied by the
superintendent.
   (n) (1) Notwithstanding any other provision of law, only those
nonpublic, nonsectarian schools and agencies that provide special
education and designated instruction and services utilizing staff who
hold a certificate, permit, or other document equivalent to that
which staff in a public school are required to hold in the service
rendered are eligible to receive certification.  Only those
nonpublic, nonsectarian schools or agencies located outside of
California that employ staff who hold a current valid credential or
license to render special education and related services as required
by that state shall be eligible to be certified.
   (2) The state board shall develop regulations to implement this
subdivision.
   (o) In addition to meeting the standards adopted by the board, a
nonpublic, nonsectarian school or agency shall provide written
assurances that it meets all applicable standards relating to fire,
health, sanitation, and building safety.
  SEC. 10.  Section 56366.5 of the Education Code is amended to read:

   56366.5.  (a) Upon receipt of a request from a nonpublic,
nonsectarian school for payment for services provided under a
contract entered into pursuant to Sections 56365 and 56366, the
local educational agency shall either (1) send a warrant for the
amount requested within 45 days, or (2) notify the nonpublic,
nonsectarian school within 10 working days of any reason why the
requested payment shall not be paid.
   (b) If the local educational agency fails to comply with
subdivision (a), the nonpublic, nonsectarian school may require the
local educational agency to pay an additional amount of 11/2 percent
of the unpaid balance per month until full payment is made.  The
local educational agency may not claim reimbursement from the state
for the additional amount pursuant to any provision of law, including
any provision contained in Chapter 3 (commencing with Section 2201)
of Part 4 of Division 1 of the Revenue and Taxation Code.
   (c) Any educational funds received from a local educational agency
for the educational costs of individuals with exceptional needs it
has placed in  nonpublic, nonsectarian schools shall be used solely
for those purposes and not for the costs of a residential program.
  SEC. 11.  Section 56366.9 of the Education Code is amended to read:

   56366.9.  A licensed children's institution at which individuals
with exceptional needs reside shall not require as a condition of
residential placement that it provide the appropriate educational
programs to those individuals through a nonpublic, nonsectarian
school or agency owned, operated by, or associated with, a licensed
children's institution.  Those services may only be provided if the
special education local plan area determines that appropriate public
alternative educational programs are not available.
  SEC. 12.  Section 56366.10 is added to the Education Code, to read:

   56366.10.  In addition to the certification requirements set forth
in Sections 56366 and 56366.1, a nonpublic, nonsectarian school that
provides special education and related services to an individual
with exceptional needs shall certify in writing to the superintendent
that it meets all of the following requirements:
   (a) It will not accept a pupil with exceptional needs if it cannot
provide or ensure the provision of the services outlined in the
pupil's individualized education program.
   (b) Pupils have access to the following educational materials,
services, and programs to the extent available at the local
educational agency in which the nonpublic school is located:
   (1) Standards-based, core curriculum and the same instructional
materials used by the local educational agency in which the
nonpublic, nonsectarian school is located.
   (2) College preparation courses.
   (3) Extracurricular activities, such as art, sports, music, and
academic clubs.
   (4) Career preparation and vocational training, consistent with
transition plans pursuant to state and federal law.
   (5) Supplemental assistance, including individual academic
tutoring, psychological counseling, and career and college
counseling.
   (c) The teachers and staff provide academic instruction and
support services to pupils with the goal of integrating pupils into
the least restrictive environment pursuant to federal law.
   (d) The school has and abides by a written policy for pupil
discipline which is consistent with state and federal law and
regulations.
  SEC. 13.  Section 56366.11 is added to the Education Code, to read:

   56366.11.  (a) The department shall implement a program to
integrate individuals with exceptional needs placed in nonpublic,
nonsectarian schools into public schools, as appropriate.  Under the
program,  a pupil placed in a nonpublic, nonsectarian  school and
each individual who has the right to make educational decisions for
the pupil shall be informed of all their rights relating to  the
educational placement of the pupil.  Existing dispute resolution
procedures involving public school enrollment or attendance shall be
explained to a pupil placed in nonpublic, nonsectarian school in an
age and developmentally appropriate manner.  The Foster Child
Ombudsman shall disseminate the information on education rights to
every foster child residing in a licensed children's institution or
foster family home.
   (b) Following the development of the next statewide assessment
contract, the department shall submit to the Legislature a report on
the academic progress of pupils attending nonpublic, nonsectarian
schools serving individuals with exceptional needs.  Using the
results of the two most recent years of the Standardized Testing and
Reporting (STAR) Program and the California Alternative Performance
Assessment, the report shall summarize by district the achievement of
all pupils attending a nonpublic, nonsectarian school.  The
department shall ensure that the report does not violate the
confidentiality of individual pupil scores.  In addition, the report
shall include an academic performance index score for pupils
attending nonpublic, nonsectarian schools for each district using the
same procedures as under Section 52052.
  SEC. 14.  Section 56366.12 is added to the Education Code, to read:

   56366.12.  A nonpublic, nonsectarian school shall ensure private
and confidential communication between a pupil of the nonpublic,
nonsectarian school and members of the pupil's individualized
education program team, at the pupil's discretion.
  SEC. 15.  Section 1501.1 of the Health and Safety Code is amended
to read:
   1501.1.  (a) It is the policy of the state to facilitate the
proper placement of every child in residential care facilities where
the placement is in the best interests of the child.  A county may
require placement or licensing agencies, or both placement and
licensing agencies, to actively seek out-of-home care facilities
capable of meeting the varied needs of the child.  Therefore, in
placing children in out-of-home care, particular attention should be
given to the individual child's needs, the ability of the facility to
meet those needs, the needs of other children in the facility, the
licensing requirements of the facility as determined by the licensing
agency, and the impact of the placement on the family reunification
plan.
   (b) Pursuant to this section, children with varying designations
and varying needs, except as provided by statute, may be placed in
the same facility provided the facility is licensed, complies with
all licensing requirements relevant to the protection of the child,
and has a special permit, if necessary, to meet the needs of each
child so placed.  A facility may not require, as a condition of
placement, that a child be identified as an individual with
exceptional needs as defined by Section 56026 of the Education Code.

   (c) Neither the requirement for any license nor any regulation
shall restrict the implementation of the provisions of this section.
Implementation of this section does not obviate the requirement for
a facility to be licensed by the department.
   (d) Pursuant to this section, children with varying designations
and varying needs, except as provided by statute, may be placed in
the same licensed foster family home or with a foster family agency
for subsequent placement in a certified family home.  Children with
developmental disabilities, mental disorders, or physical
disabilities may be placed in licensed foster family homes or
certified family homes, provided that an appraisal of the child's
needs and the ability of the receiving home to meet those needs is
made jointly by the placement agency and the licensee in the case of
licensed foster family homes or the placement agency and the foster
family agency in the case of certified family homes, and is followed
by written confirmation prior to placement.  The appraisal shall
confirm that the placement poses no threat to any child in the home.

   For purposes of this chapter, the placing of children by foster
family agencies shall be referred to as "subsequent placement" to
distinguish the activity from the placing by public agencies.
  SEC. 16.  Section 16014 is added to the Welfare and Institutions
Code, to read:
   16014.  (a) It is the intent of the Legislature to maximize
federal funding for foster youth services provided by local
educational agencies.
   (b) The State Department of Education and the State Department of
Social Services shall collaborate with the County Welfare Directors
Association, representatives from local educational agencies, and
                                          representatives of private,
nonprofit foster care providers to establish roles and
responsibilities, claiming requirements, and sharing of eligibility
information eligible for funding under Part E (commencing with
Section 470) of Title IV of the federal Social Security Act (42
U.S.C.  Sec. 301 et seq.). These state agencies shall also assist
counties and local educational agencies in drafting memorandums of
understanding between agencies to access funding for case management
activities associated with providing foster youth services for
eligible children.  That federal funding shall be an augmentation to
the current program and shall not supplant existing state general
funds allocated to this program.
   (c) School districts shall be responsible for 100 percent of the
nonfederal share of payments received under that act.
  SEC. 17.  Public schools are encouraged to apply for all available
federal, state, and local supplemental sources of funding to
accomplish the  goals set forth in this act, including funding
available for neglected or delinquent pupils who are at risk of
dropping out of school, as funded by Section 6421 of Title 20 of the
United States Code, funding pursuant to the federal Stewart B.
McKinney Homeless Assistance Act (42 U.S.C. Sec. 11301 et seq.),
Title XIX of the federal Social Security Act (42 U.S.C. Sec. 301 et
seq.), and the federal Individuals with Disabilities Education Act
(20 U.S.C.  Sec.  1400 et seq.).
  SEC. 18.  Notwithstanding Section 17610 of the Government Code, if
the Commission on State Mandates determines that this act contains
costs mandated by the state, reimbursement to local agencies and
school districts for those costs shall be made pursuant to Part 7
(commencing with Section 17500) of Division 4 of Title 2 of the
Government Code.  If the statewide cost of the claim for
reimbursement does not exceed one million dollars ($1,000,000),
reimbursement shall be made from the State Mandates Claims Fund.