BILL NUMBER: SB 512	CHAPTERED
	BILL TEXT

	CHAPTER  677
	FILED WITH SECRETARY OF STATE  OCTOBER 7, 2005
	APPROVED BY GOVERNOR  OCTOBER 7, 2005
	PASSED THE SENATE  SEPTEMBER 7, 2005
	PASSED THE ASSEMBLY  SEPTEMBER 6, 2005
	AMENDED IN ASSEMBLY  SEPTEMBER 2, 2005
	AMENDED IN ASSEMBLY  AUGUST 31, 2005
	AMENDED IN ASSEMBLY  AUGUST 22, 2005
	AMENDED IN ASSEMBLY  JULY 13, 2005
	AMENDED IN ASSEMBLY  JUNE 20, 2005
	AMENDED IN SENATE  MAY 4, 2005
	AMENDED IN SENATE  APRIL 25, 2005

INTRODUCED BY   Committee on Education (Senators Scott (Chair),
Alquist, Denham, Dutton, Lowenthal, Maldonado, Morrow, Romero,
Simitian, Soto, Speier, and Torlakson)
   (Coauthor: Assembly Member Huff)

                        FEBRUARY 18, 2005

   An act to amend Section 1798.3 of the Civil Code, to amend
Sections 1240, 1628, 1629, 8092, 8208, 8212, 8222, 8226, 8352, 8421,
17592.70, 35186, 38101, 41327.2, 41344, 41344.1, 41402, 41511, 41521,
41530, 41976, 41976.5, 42127, 42132, 42282, 42282.1, 42285, 42285.2,
44225.6, 44252.1, 44258.9, 44664, 45037, 48660.2, 48900.8, 48980,
49423, 49423.1, 51226.1, 52515, 52520, 52570, 52571, 52572, 54749,
56195.7, and 56362.7 of, to add Sections 42285.4, 44265.6, and
56836.07 to, to repeal Section 52247 of, and to repeal and add
Section 48213 of, the Education Code, to amend Section 7572.5 of the
Government Code, to repeal Chapter 1.2 (commencing with Section 628)
of Title 15 of Part 1 of the Penal Code, to amend Section 34501.5 of
the Vehicle Code, to amend Section 11 of Chapter 14 of the Statutes
of 2003, to amend Item 6110-183-0890 of Section 2.00 of Chapter 208
of the Statutes of 2004, and to amend Section 18 of Chapter 895 of
the Statutes of 2004, relating to public schools, making an
appropriation therefor, and declaring the urgency thereof, to take
effect immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 512, Committee on Education  Education omnibus.
   (1) Existing law requires, by September 15 of each year, a county
superintendent of schools to prepare and file with the Superintendent
of Public Instruction a statement of all receipts and expenditures
of the county office of education for the preceding fiscal year.
   This bill would instead require a county superintendent of schools
to prepare and file that statement by October 15 of each year.
   (2) Existing law requires, by September 30 of each year, a county
board of education to adopt a resolution to identify the estimated
appropriations limit for the county office of education for the
current fiscal year and the actual appropriations limit for the
county office of education for the preceding fiscal year.
   This bill would instead require a county board of education to
adopt that resolution by October 15 of each year.
   (3) Existing law establishes the 21st Century High School After
School Safety and Enrichment for Teens program to create incentives
for establishing locally driven after school enrichment programs for
high school pupils in the hours after the regular schoolday. Existing
law requires a high school after school program established under
the program to comply with locally determined requirements related to
hours and days of program operation through the 2004-05 fiscal year
and, commencing with the 2005-06 fiscal year and thereafter, to
comply with the requirements of the State Department of Education
related to the hours and days of program operation.
   This bill would instead require a high school after school program
to comply with those locally determined requirements through the
2005-06 fiscal year and with those requirements of the department
commencing with the 2006-07 fiscal year and thereafter.
   (4) Existing law establishes the School Facilities Needs
Assessment Grant Program, administered by the State Allocation Board,
for the purpose of awarding grants to school districts on behalf of
schoolsites ranked in deciles 1 to 3, inclusive, on the Academic
Performance Index (API), as specified, to conduct a one-time
comprehensive assessment of school facilities needs. Under the
program, the State Department of Education is required to estimate an
API score for any school meeting certain criteria.
   This bill would revise the type of schools for which the
department is required to estimate an API score. The bill would also
exclude certain schools from those schools ranked in deciles 1 to 3,
inclusive, on the 2003 base API.
   (5) Existing law requires the Superintendent of Public Instruction
and the Director of Finance to jointly establish a plan for
repayment of school funds that a local educational agency received on
the basis of average daily attendance that did not comply with
statutory or regulatory requirements that were conditions of
apportionments, as determined by an audit or review. Existing law
establishes the Education Audit Appeals Panel and requires the panel
to hear an appeal of a finding of a final audit report resulting from
an audit or review. Existing law authorizes the executive officer of
the panel to order or propose a reduction of repayment, under
specified circumstances.
   This bill would, in addition, require the Superintendent and the
Director of Finance to jointly establish a plan for repayment of a
penalty arising from an audit exception. The bill would also
authorize the executive officer of the panel to waive repayment, or
payment of a penalty, under specified circumstances.
   (6) Existing law establishes maximum ratios of administrative
employees to teachers, but exempts from those ratios a school
district that has only one school and one administrator.
   This bill would instead exempt from those ratios a school district
that has one or fewer administrators.
   (7) Existing law establishes the school safety consolidated
competitive grant, from which grant funds are distributed to school
districts in order to carry out one or more purposes for which
various specified programs were established, including the
development of safety plans for new schools. Existing law also makes
a school district and a county office of education responsible for
the overall development of comprehensive school safety plans.
   This bill would declare that funds distributed from the school
safety consolidated competitive grant to a school district in order
to develop safety plans for new schools are revenues that offset any
reimbursable mandate claim for the development of comprehensive
school safety plans.
   (8) Existing law establishes the professional development block
grant, which is composed of funding from, and for, specified existing
categorical education programs. Existing law authorizes a school
district to expend block grant funds 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,
as specified.
   This bill would delete that condition.
   (9) Existing law requires the governing board of a school district
to adopt an annual budget, and requires the county superintendent of
schools who has jurisdiction over that school district to approve,
conditionally approve, or disapprove the adopted budget.
   This bill would require the governing board of a school district
whose adopted budget was disapproved, and the county superintendent
of schools who has jurisdiction over that school district, to review
the disapproval and the recommendations of the county superintendent
of schools regarding revision of the budget at a public hearing, as
specified. To the extent that this bill would impose additional
duties on a school district, the bill would create a state-mandated
local program.
   (10) Existing law requires, by September 30 of each year, the
governing board of a school district to adopt a resolution to
identify the estimated appropriations limit for the school district
for the current fiscal year and the actual appropriations limit for
the school district for the preceding fiscal year.
   This bill would instead require the governing board of a school
district to adopt that resolution by September 15 of each year.
   (11) Existing law requires a county superintendent of schools to
make a funding computation for a school district with a necessary
small school, and requires that computation be adjusted for excused
absences by reducing average daily attendance by the statewide
average rate of excused absence reported for high school districts
for the 1996-97 fiscal year, as specified.
   This bill would instead require that computation be adjusted for
excused absences by reducing average daily attendance by the
statewide average rate of excused absence reported for elementary
school districts for the 1996-97 fiscal year, as specified.
   (11.5) Existing law provides that the Coachella Valley Unified
School District is eligible to receive apportionments for 2 specified
schools within that district, pursuant to the schedule for necessary
small high schools, as specified, and provides that if the amount of
average daily attendance of either of those schools exceeds 286,
that school is no longer entitled to receive apportionments under
these provisions. Under existing law, the Department of
Transportation is required to notify the Legislature and the
Secretary of State upon the completion of a specified project of the
Department of Transportation, and provides that after notification
has occurred, the provisions described herein remain in effect only
until July 1 after the then current fiscal year has elapsed, or until
June 30, 2005, whichever is later, and as of the occurrence of the
later of these provisions would be repealed.
   This bill would, instead, provide that the Coachella Valley
Unified School District is eligible to receive apportionments for
those 2 schools until June 30, 2006, at the end of which time, the
bill would require the department to review the average daily
attendance numbers of each school to determine if the Coachella
Valley Unified School District remains qualified for necessary small
school funding and, if qualified, the Coachella Valley Unified School
District would remain eligible to receive apportionments, as
specified, on behalf of those schools, in 2-year increments.
   (12) Existing law requires the Commission on Teacher Credentialing
to adopt regulations to provide a grace period for candidates
enrolled in specified credential programs to complete the
requirements of the program, without being required to meet new
requirements. Under existing law, these provisions will be repealed
by their own terms on January 1, 2006.
   This bill would delete the repeal provision in existing law.
   (13) Existing law requires the Commission on Teacher Credentialing
to issue a 2-year nonrenewable preliminary specialist instruction
credential, and a 2-year services credential with a specialization in
pupil personnel services, solely for the purpose of providing
specified instruction and services to deaf or hearing-impaired
pupils, to a prelingual deaf candidate, upon the satisfaction of
specified conditions and requirements, including medical or other
appropriate professional verifications.
   This bill would, upon the request of a school district, county
office of education, or state special school, require the Commission
on Teacher Credentialing to determine specific requirements for, and
issue, a one-year specialist instruction emergency permit, solely for
the purpose of instructing deaf or hearing-impaired pupils, to a
prelingual deaf candidate, upon medical or other appropriate
professional verifications.
   (14) Existing law requires a school district to evaluate and
assess the performance of a certificated employee with permanent
status who has been employed at least 10 years with the school
district, is highly qualified, as defined, and whose previous
evaluation rated the employee as meeting or exceeding standards.
   This bill would require a school district to evaluate and assess
that certificated employee only if he or she occupies a position that
is required to be filled by a highly qualified professional.
   (15) Existing law requires the Superintendent to adopt a
curriculum framework, as specified, that offers a blueprint for
implementation of career and technical education, no later than June
1, 2006.
   This bill would postpone the fulfillment of that requirement until
April 1, 2007.
   (16) Existing law establishes the Advanced Placement Challenge
Grant Program under which a high school designs and implements a plan
that is intended to result in its pupils having access to at least 4
advanced placement courses in core curriculum areas. Existing law
also requires the Superintendent of Public Instruction to administer
a grant program for advanced placement professional development under
which nonrenewable 4-year grants are awarded on a competitive basis
to no more than 550 high schools to establish, train, and support
teams of teachers or purchase instructional materials and equipment
for those courses.
   This bill would delete those provisions.
   (17) Existing law authorizes a pupil suspected of needing mental
health services to be referred to a community mental health service.
Existing law also requires the Superintendent to make specified
computations to determine funding for a special education local plan
area.
   This bill would require the Superintendent to allocate funds
appropriated in the annual Budget Act to a special education local
plan area, and a proportionate share, as specified, to the Los
Angeles County Juvenile Court and Community School/Division of
Alternative Education Special Education Local Plan Area, for purposes
of those referred pupils. The bill would declare that, due to the
unique situation of that special education local plan area, a general
statute cannot be made applicable within the meaning of Section 16
of Article IV of the California Constitution, and the enactment of a
special statute is therefore necessary.
   (18) Existing law requires, by June 30, 1995, the State Department
of Education, in consultation with the Department of Justice and a
representative selection of school districts and county offices of
education, to currently compile school crime statistics and to
develop a standard school crime reporting form for use by all school
districts and county offices of education throughout the state.
Existing law requires each principal of a school in a school district
and each principal or director of a school, program, or camp under
the jurisdiction of the county superintendent of schools to report
crimes, and requires the superintendent of any school district to
submit various reports, as specified. Existing law requires the State
Department of Education to publish and distribute to all school
districts and county offices of education an annual school crime
reporting update that describes typical errors in school crime
reporting procedures, describes effective and efficient methods of
monitoring and recording school crime data, and identifies trends in
school crime drawn from the annual school crime report submitted to
the Legislature.
   This bill would repeal those provisions.
   (19) Existing law, notwithstanding any provision of law to the
contrary and from June 1, 2003, to June 30, 2005, inclusive, permits
the Oakland Unified School District to sell property owned by the
district and to use the proceeds from the sale to reduce or retire
the emergency loan provided to that school district pursuant to
existing law.  Existing law also provides that, for that period of
time, the Oakland Unified School District is ineligible for hardship
assistance under the Leroy F. Greene School Facilities Act of 1998.
   This bill would extend the time period during which the Oakland
Unified School District may sell property as described above, and the
period during which the district is ineligible for hardship
assistance, to June 30, 2007.
   (20) Existing law requires the governing board of a school
district maintaining an elementary or secondary school to develop and
cause to be implemented for each school in the school district a
School Accountability Report Card that includes specified information
regarding the academic achievement of the school.
   Existing law requires the Commission on State Mandates, on or
before December 31, 2005, to reconsider a certain decision it issued
relating to state reimbursement for the School Accountability Report
Card, and to reconsider its parameters and guidelines for calculating
the state reimbursement for certain mandates in light of federal
statutes enacted and state court decisions rendered since those
mandates were enacted.
   This bill would, in addition, require the commission to reconsider
a certain other mandate on or before January 31, 2006. The bill
would require the commission's decision on its reconsiderations to
apply retroactively to January 1, 2005, would require the parameters
and guidelines to conform to the decision of the commission on its
reconsiderations, and would declare certain related legislative
findings.
   (21) Existing law establishes the Golden State Scholarshare Trust
Act, pursuant to which participants invest money in the Golden State
Scholarshare Trust for the benefit of a specific beneficiary for the
purposes of the beneficiary's higher education expenses. The act also
establishes the Scholarshare Investment Board as the trustee of the
Golden State Scholarshare Trust, and vests in the board the purposes,
powers, and duties of the trust.
   Existing law also establishes the California Memorial Scholarship
Program, and provides for its administration by the Scholarshare
Investment Board. Under the program, which is funded by the
California Memorial Scholarship Fund, scholarships are provided for
surviving dependents of California residents killed as a result of
injuries sustained during the terrorist attacks of September 11,
2001.
   This bill would appropriate $130,000, as provided, from the
California Memorial Scholarship Fund to the Scholarshare Investment
Board for the purposes of establishing individual scholarship
accounts for eligible participants in the program and for the
administrative costs of the board.
   (22) This bill would also delete and replace obsolete and
incorrect references in existing law, and would clarify various
provisions and make various corrections in existing law.
   (22.5) This bill would make legislative findings and declarations
regarding the need for special legislation.
   (23) 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.
   This bill would provide that with regard to certain mandates no
reimbursement is required by this act for a specified reason.
   With regard to any other mandates, this bill would provide that,
if the Commission on State Mandates determines that the bill contains
costs so mandated by the state, reimbursement for those costs shall
be made pursuant to the statutory provisions noted above.
   (24) This bill would declare that it is to take effect immediately
as an urgency statute.
   Appropriation: yes.


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


  SECTION 1.  Section 1798.3 of the Civil Code is amended to read:
   1798.3.  As used in this chapter:
   (a) The term "personal information" means any information that is
maintained by an agency that identifies or describes an individual,
including, but not limited to, his or her name, social security
number, physical description, home address, home telephone number,
education, financial matters, and medical or employment history. It
includes statements made by, or attributed to, the individual.
   (b) The term "agency" means every state office, officer,
department, division, bureau, board, commission, or other state
agency, except that the term agency shall not include:
   (1) The California Legislature.
   (2) Any agency established under Article VI of the California
Constitution.
   (3) The State Compensation Insurance Fund, except as to any
records which contain personal information about the employees of the
State Compensation Insurance Fund.
   (4) A local agency, as defined in subdivision (a) of Section 6252
of the Government Code.
   (c) The term "disclose" means to disclose, release, transfer,
disseminate, or otherwise communicate all or any part of any record
orally, in writing, or by electronic or any other means to any person
or entity.
   (d) The term "individual" means a natural person.
   (e) The term "maintain" includes maintain, acquire, use, or
disclose.
   (f) The term "person" means any natural person, corporation,
partnership, limited liability company, firm, or association.
   (g) The term "record" means any file or grouping of information
about an individual that is maintained by an agency by reference to
an identifying particular such as the individual's name, photograph,
finger or voice print, or a number or symbol assigned to the
individual.
   (h) The term "system of records" means one or more records, which
pertain to one or more individuals, which is maintained by any
agency, from which information is retrieved by the name of an
individual or by some identifying number, symbol or other identifying
particular assigned to the individual.
   (i) The term "governmental entity," except as used in Section
1798.26, means any branch of the federal government or of the local
government.
   (j) The term "commercial purpose" means any purpose which has
financial gain as a major objective. It does not include the
gathering or dissemination of newsworthy facts by a publisher or
broadcaster.
   (k) The term "regulatory agency" means the Department of Financial
Institutions, the Department of Corporations, the Department of
Insurance, the Department of Real Estate, and agencies of the United
States or of any other state responsible for regulating financial
institutions.
  SEC. 1.5.  Section 1240 of the Education Code is amended to read:
   1240.  The county superintendent of schools shall do all of the
following:
   (a) Superintend the schools of his or her county.
   (b) Maintain responsibility for the fiscal oversight of each
school district in his or her county pursuant to the authority
granted by this code.
   (c) (1) Visit and examine each school in his or her county at
reasonable intervals to observe its operation and to learn of its
problems. He or she may annually present a report of the state of the
schools in his or her county, and of his or her office, including,
but not limited to, his or her observations while visiting the
schools, to the board of education and the board of supervisors of
his or her county.
   (2) (A) To the extent that funds are appropriated for purposes of
this paragraph, the county superintendent, or his or her designee,
shall annually present a report to the governing board of each school
district under his or her jurisdiction, the county board of
education of his or her county, and the board of supervisors of his
or her county describing the state of the schools in the county or of
his or her office that are ranked in deciles 1 to 3, inclusive, of
the 2003 base Academic Performance Index, as defined in subdivision
(b) of Section 17592.70, and shall include, among other things, his
or her observations while visiting the schools.
   (B) The county superintendent of the Counties of Alpine, Amador,
Del Norte, Mariposa, Plumas, Sierra, and the City and County of San
Francisco shall contract with another county office of education or
an independent auditor to conduct the required visits and make all
reports required by this paragraph.
   (C) The results of the visit shall be reported to the governing
board of the school district on a quarterly basis at a regularly
scheduled meeting held in accordance with public notification
requirements.
   (D) The visits made pursuant to this paragraph shall be conducted
at least annually and shall meet the following criteria:
   (i) Minimize disruption to the operation of the school.
   (ii) Be performed by individuals who meet the requirements of
Section 45125.1.
   (iii) Consist of not less than 25-percent unannounced visits in
each county. During unannounced visits in each county, the county
superintendent shall not demand access to documents or specific
school personnel. Unannounced visits shall only be used to observe
the condition of school repair and maintenance and the sufficiency of
instructional materials, as defined by Section 60119.
   (E) The priority objective of the visits made pursuant to this
paragraph shall be to determine the status of all of the following
circumstances:
   (i) Sufficient textbooks as defined in Section 60119 and as
specified in subdivision (i).
   (ii) The condition of a facility that poses an emergency or urgent
threat to the health or safety of pupils or staff as defined in
district policy, or as defined by paragraph (1) of subdivision (c) of
Section 17592.72.
   (iii) The accuracy of data reported on the school accountability
report card with respect to the availability of sufficient textbooks
and instructional materials as defined by Section 60119 and the
safety, cleanliness, and adequacy of school facilities, including
good repair as required by Sections 17014, 17032.5, 17070.75, and
17089.
   (F) The county superintendent may make the status determinations
described in subparagraph (E) during a single visit or multiple
visits. In determining whether to make a single visit or multiple
visits for this purpose, the county superintendent shall take into
consideration factors such as cost-effectiveness, disruption to the
schoolsite, deadlines, and availability of qualified reviewers.
   (d) Distribute all laws, reports, circulars, instructions, and
blanks that he or she may receive for the use of the school officers.

   (e) Annually present a report to the governing board of the school
district and the Superintendent regarding the fiscal solvency of any
school district with a disapproved budget, qualified interim
certification, or a negative interim certification, or that is
determined at any time to be in a position of fiscal uncertainty
pursuant to Section 42127.6.
   (f) Keep in his or her office the reports of the Superintendent.
   (g) Keep a record of his or her official acts, and of all the
proceedings of the county board of education, including a record of
the standing, in each study, of all applicants for certificates who
have been examined, which shall be open to the inspection of any
applicant or his or her authorized agent.
   (h) Enforce the course of study.
   (i) (1) Enforce the use of state textbooks and instructional
materials and of high school textbooks and instructional materials
regularly adopted by the proper authority in accordance with Section
51050.
   (2) For purposes of this subdivision, sufficient textbooks or
instructional materials has the same meaning as in subdivision (c) of
Section 60119.
   (3) (A) Commencing with the 2005-06 school year, if a school is
ranked in any of deciles 1 to 3, inclusive, of the 2003 base Academic
Performance Index, as defined in subdivision (b) of Section
17592.70, and is not currently under review through a state or
federal intervention program, the county superintendent shall
specifically review that school at least annually as a priority
school. A review conducted for purposes of this paragraph shall be
completed by the fourth week of the school year. For the 2004-05
fiscal year only, the county superintendent shall make a diligent
effort to conduct a visit to each school pursuant to this paragraph
within 120 days of receipt of funds for this purpose.
   (B) In order to facilitate the review of instructional materials
before the fourth week of the school year, the county superintendent
of schools in a county with 200 or more schools that are ranked in
any of deciles 1 to 3, inclusive, of the 2003 base Academic
Performance Index, as defined in subdivision (b) of Section 17592.70,
may utilize a combination of visits and written surveys of teachers
for the purpose of determining sufficiency of textbooks and
instructional materials in accordance with subparagraph (A) of
paragraph (1) of subdivision (a) of Section 60119 and as defined in
subdivision (c) of Section 60119. If a county superintendent of
schools elects to conduct written surveys of teachers, the county
superintendent of schools shall visit the schools surveyed within the
same academic year to verify the accuracy of the information
reported on the surveys.
   (C) For purposes of this paragraph, "written surveys" may include
paper and electronic or online surveys.
   (4) If the county superintendent determines that a school does not
have sufficient textbooks or instructional materials in accordance
with subparagraph (A) of paragraph (1) of subdivision (a) of Section
60119 and as defined by subdivision (c) of Section 60119, the county
superintendent shall do all of the following:
   (A) Prepare a report that specifically identifies and documents
the areas or instances of noncompliance.
   (B) Provide within five business days of the review, a copy of the
report to the school district, as provided in subdivision (c), and
forward the report to the Superintendent.
   (C) Provide the school district with the opportunity to remedy the
deficiency. The county superintendent shall ensure remediation of
the deficiency no later than the second month of the school term.
   (D) If the deficiency is not remedied as required pursuant to
subparagraph (C), the county superintendent shall request the
department, with approval by the State Board of Education, to
purchase the textbooks or instructional materials necessary to comply
with the sufficiency requirement of this subdivision. If the state
board approves a recommendation from the department to purchase
textbooks or instructional materials for the school district, the
board shall issue a public statement at a regularly scheduled meeting
indicating that the district superintendent and the governing board
of the school district failed to provide pupils with sufficient
textbooks or instructional materials as required by this subdivision.
Before purchasing the textbooks or instructional materials, the
department shall consult with the district to determine which
textbooks or instructional materials to purchase. All purchases of
textbooks or instructional materials shall comply with Chapter 3.25
(commencing with Section 60420) of Part 33. The amount of funds
necessary to the purchase the textbooks and materials is a loan to
the school district receiving the textbooks or instructional
materials. Unless the school district repays the amount owed based
upon an agreed-upon repayment schedule with the Superintendent, the
Superintendent shall notify the Controller and the Controller shall
deduct an amount equal to the total amount used to purchase the
textbooks and materials, from the next principal apportionment of the
district or from another apportionment of state funds.
   (j) Preserve carefully all reports of school officers and
teachers.
   (k) Deliver to his or her successor, at the close of his or her
official term, all records, books, documents, and papers belonging to
the office, taking a receipt for them, which shall be filed with the
department.
   (l) (1) Submit two reports during the fiscal year to the county
board of education in accordance with the following:
   (A) The first report shall cover the financial and budgetary
status of the county office of education for the period ending
October 31. The second report shall cover the period ending January
31. Both reports shall be reviewed by the county board of education
and approved by the county superintendent of schools no later than 45
days after the close of the period being reported.
   (B) As part of each report, the county superintendent shall
certify in writing whether or not the county office of education is
able to meet its financial obligations for the remainder of the
fiscal year and, based on current forecasts, for two subsequent
fiscal years. The certifications shall be classified as positive,
qualified, or negative, pursuant to standards prescribed by the
Superintendent, for the purposes of determining subsequent state
agency actions pursuant to Section 1240.1. For purposes of this
subdivision, a negative certification shall be assigned to any county
office of education that, based upon current projections, will be
unable to meet its financial obligations for the remainder of the
fiscal year or for the subsequent fiscal year. A qualified
certification shall be assigned to any county office of education
that may not meet its financial obligations for the current fiscal
year or two subsequent fiscal years. A positive certification shall
be assigned to any county office of education that will meet its
financial obligations for the current fiscal year and subsequent two
fiscal years. In accordance with those standards, the Superintendent
may reclassify any certification. If a county office of education
receives a negative certification, the Superintendent, or his or her
designee, may exercise the authority set forth in subdivision (c) of
Section 1630. Copies of each certification, and of the report
containing that certification, shall be sent to the Superintendent at
the time the certification is submitted to the county board of
education. Copies of each qualified or negative certification and the
report containing that certification shall be sent to the Controller
at the time the certification is submitted to the county board of
education.
   (2) All reports and certifications required under this subdivision
shall be in a format or on forms prescribed by the Superintendent,
and shall be based on standards and criteria for fiscal stability
adopted by the State Board of Education pursuant to Section 33127.
The reports and supporting data shall be made available by the county
superintendent of schools to any interested party upon request.
   (3) This subdivision does not preclude the submission of
additional budgetary or financial reports by the county
superintendent to the county board of education or to the
Superintendent.
   (4) The county superintendent of schools is not responsible for
the fiscal oversight of the community colleges in the county,
however, he or she may perform financial services on behalf of those
community colleges.
   (m) If requested, act as agent for the purchase of supplies for
the city and high school districts of his or her county.
   (n) For purposes of Section 44421.5, report to the Commission on
Teacher Credentialing the identity of any certificated person who
knowingly and willingly reports false fiscal expenditure data
relative to the conduct of any educational program. This requirement
applies only if, in the course of his or her normal duties, the
county superintendent of schools discovers information that gives him
or her reasonable cause to believe that false fiscal expenditure
data relative to the conduct of any educational program has been
reported.
  SEC. 2.  Section 1628 of the Education Code is amended to read:
   1628.  On or before October 15 of each year, the county
superintendent of schools shall prepare and file with the
Superintendent, along with the statements received pursuant to
subdivision (b) of Section 42100, a statement of all receipts and
expenditures of the county office of education for the preceding
fiscal year. The statement shall be in a format or on forms
prescribed by the Superintendent, in accordance with regulations
adopted by the State Board of Education. These forms may be amended
periodically by the Superintendent to accommodate changes in statute
or government reporting standards.
  SEC. 3.  Section 1629 of the Education Code is amended to read:
   1629.  On or before October 15 of each year, the county board of
education shall adopt a resolution to identify, pursuant to Division
9 (commencing with Section 7900) of Title 1 of the Government Code,
the estimated appropriations limit for the county office of education
for the current fiscal year and the actual appropriations limit for
the county office of education for the preceding fiscal year. That
resolution shall be adopted at a regular or special meeting of the
board. Notwithstanding Section 7910 of the Government Code,
documentation used in the identification of the appropriations limits
shall be made available to the public on the date of the meeting at
which the resolution is adopted.
  SEC. 4.  Section 8092 of the Education Code is amended to read:
   8092.  (a) A school district or districts, a county superintendent
or superintendents, or the governing body of any agency maintaining
a regional occupational center or program may contract with a private
postsecondary school that is authorized or approved pursuant to
Chapter 3 (commencing with Section 94300) of Part 59 and that has
been in operation not less than two full calendar years prior to the
effective date of the contract, to provide career technical skill
training authorized by this code. A school district, community
college district, or county superintendent of schools may contract
with an activity center, work activity center, or sheltered workshop
to provide career technical skill training authorized by this code in
an adult education program for adults with disabilities operated
pursuant to subdivision (a) of Section 41976.
   (b) A contract between a public entity and a private postsecondary
school entered into pursuant to this section, or an activity center,
work activity center, or sheltered workshop, shall do all of the
following:
   (1) Provide that the amount contracted for per student shall not
exceed the total direct and indirect costs to provide the same
training in the public schools or the tuition the private
postsecondary school charges its private students, whichever is
lower.
   (2) Provide that the public school receiving training in a private
postsecondary school, or an activity center, work activity center,
or sheltered workshop pursuant to that contract may not be charged
additional tuition for any training included in the contract. The
attendance of those students pursuant to a contract authorized by
this section shall be credited to the public entity for the purposes
of apportionments from the State School Fund.
   (3) Provide that all programs, courses, and classes of instruction
shall meet the standards set forth in the California State Plan for
Career Technical Education, or is a course of study for adult schools
approved by the department under Section 51056.
   (c) The students who attend a private postsecondary school or an
activity center, work activity center, or sheltered workshop pursuant
to a contract under this section shall be enrollees of the public
entity and the career technical instruction provided pursuant to that
contract shall be under the exclusive control and management of the
governing body of the contracting public entity.
   (d) The Department of Finance and the State Department of
Education may audit the accounts of both the public entity and the
private party involved in these contracts to the extent necessary to
ensure the integrity of the public funds involved.
  SEC. 4.5.  Section 8208 of the Education Code is amended to read:
   8208.  As used in this chapter:
   (a) "Alternative payments" includes payments that are made by one
child care agency to another agency or child care provider for the
provision of child care and development services, and payments that
are made by an agency to a parent for the parent's purchase of child
care and development services.
   (b) "Alternative payment program" means a local government agency
or nonprofit organization that has contracted with the department
pursuant to Section 8220.2 to provide alternative payments and to
provide support services to parents and providers.
   (c) "Applicant or contracting agency" means a school district,
community college district, college or university, county
superintendent of schools, county, city, public agency, private
nontax-exempt agency, private tax-exempt agency, or other entity that
is authorized to establish, maintain, or operate services pursuant
to this chapter. Private agencies and parent cooperatives, duly
licensed by law, shall receive the same consideration as any other
authorized entity with no loss of parental decisionmaking
prerogatives as consistent with the provisions of this chapter.
   (d) "Assigned reimbursement rate" is that rate established by the
contract with the agency and is derived by dividing the total dollar
amount of the contract by the minimum child day of average daily
enrollment level of service required.
   (e) "Attendance" means the number of children present at a child
care and development facility. "Attendance," for the purposes of
reimbursement, includes excused absences by children because of
illness, quarantine, illness or quarantine of their parent, family
emergency, or to spend time with a parent or other relative as
required by a court of law or that is clearly in the best interest of
the child.
   (f) "Capital outlay" means the amount paid for the renovation and
repair of child care and development facilities to comply with state
and local health and safety standards, and the amount paid for the
state purchase of relocatable child care and development facilities
for lease to qualifying contracting agencies.
   (g) "Caregiver" means a person who provides direct care,
supervision, and guidance to children in a child care and development
facility.
   (h) "Child care and development facility" means any residence or
building or part thereof in which child care and development services
are provided.
   (i) "Child care and development programs" means those programs
that offer a full range of services for children from infancy to 13
years of age for any part of a day, by a public or private agency, in
centers and family child care homes. These programs include, but are
not limited to, all of the following:
   (1) Campus child care and development.
   (2) General child care and development.
   (3) Migrant child care and development.
   (4) Child care provided by the California School Age Families
Education Program (Article 7.1 (commencing with Section 54740) of
Chapter 9 of Part 29).
   (5) State preschool.
   (6) Resource and referral.
   (7) Child care and development services for children with special
needs.
   (8) Family child care home education network.
   (9) Alternative payment.
   (10) Child abuse protection and prevention services.
   (11) Schoolage community child care.
   (j) "Child care and development services" means those services
designed to meet a wide variety of needs of children and their
families, while their parents or guardians are working, in training,
seeking employment, incapacitated, or in need of respite. These
services may include direct care and supervision, instructional
activities, resource and referral programs, and alternative payment
arrangements.
   (k) "Children at risk of abuse, neglect, or exploitation" means
children who are so identified in a written referral from a legal,
medical, or social service agency, or emergency shelter.
   (l) "Children with exceptional needs" means either of the
following:
   (1) Infants and toddlers under three years of age who have been
determined to be eligible for early intervention services pursuant to
the California Early Intervention Services Act (Title 14 (commencing
with Section 95000) of the Government Code) and its implementing
regulations. These children include an infant or toddler with a
developmental delay or established risk condition, or who is at high
risk of having a substantial developmental disability, as defined in
subdivision (a) of Section 95014 of the Government Code. These
children shall have active individualized family service plans, shall
be receiving early intervention services, and shall be children who
require the special attention of adults in a child care setting.
   (2) Children ages 3 to 21 years, inclusive, who have been
determined to be eligible for special education and related services
by an individualized education program team according to the special
education requirements contained in Part 30 (commencing with Section
56000), and who meet eligibility criteria described in Section 56026
and Sections 56333 to 56338, inclusive, and Sections 3030 and 3031 of
Title 5 of the California Code of Regulations. These children shall
have an active individualized education program, shall be receiving
early intervention services or appropriate special education and
related services, and shall be children who require the special
attention of adults in a child care setting. These children include
children with mental retardation, hearing impairments (including
deafness), speech or language impairments, visual impairments
(including blindness), serious emotional disturbance (also referred
to as emotional disturbance), orthopedic impairments, autism,
traumatic brain injury, other health impairments, or specific
learning disabilities, who need special education and related
services consistent with paragraph (A) of subsection (3) of Section
1401 of Title 20 of the United States Code.
   (m) "Closedown costs" means reimbursements for all approved
activities associated with the closing of operations at the end of
each growing season for migrant child development programs only.
   (n) "Cost" includes, but is not limited to, expenditures that are
related to the operation of child care and development programs.
"Cost" may include a reasonable amount for state and local
contributions to employee benefits, including approved retirement
programs, agency administration, and any other reasonable program
operational costs.  "Cost" may also include amounts for licensable
facilities in the community served by the
                  program, including lease payments or depreciation,
downpayments, and payments of principal and interest on loans
incurred to acquire, rehabilitate, or construct licensable
facilities, but these costs shall not exceed fair market rents
existing in the community in which the facility is located.
"Reasonable and necessary costs" are costs that, in nature and
amount, do not exceed what an ordinary prudent person would incur in
the conduct of a competitive business.
   (o) "Elementary school," as contained in Section 425 of Title 20
of the United States Code (the National Defense Education Act of
1958, Public Law 85-864, as amended), includes early childhood
education programs and all child development programs, for the
purpose of the cancellation provisions of loans to students in
institutions of higher learning.
   (p) "Family child care home education network" means an entity
organized under law that contracts with the department pursuant to
Section 8245 to make payments to licensed family child care home
providers and to provide educational and support services to those
providers and to children and families eligible for state-subsidized
child care and development services. A family child care home
education network may also be referred to as a family child care home
system.
   (q) "Health services" include, but are not limited to, all of the
following:
   (1) Referral, whenever possible, to appropriate health care
providers able to provide continuity of medical care.
   (2) Health screening and health treatment, including a full range
of immunization recorded on the appropriate state immunization form
to the extent provided by the Medi-Cal Act (Chapter 7 (commencing
with Section 14000) of Part 3 of Division 9 of the Welfare and
Institutions Code) and the Child Health and Disability Prevention
Program (Article 6 (commencing with Section 124025) of Chapter 3 of
Part 2 of Division 106 of the Health and Safety Code), but only to
the extent that ongoing care cannot be obtained utilizing community
resources.
   (3) Health education and training for children, parents, staff,
and providers.
   (4) Followup treatment through referral to appropriate health care
agencies or individual health care professionals.
   (r) "Higher educational institutions" means the Regents of the
University of California, the Trustees of the California State
University, the Board of Governors of the California Community
Colleges, and the governing bodies of any accredited private
nonprofit institution of postsecondary education.
   (s) "Intergenerational staff" means persons of various
generations.
   (t) "Limited-English-speaking-proficient and
non-English-speaking-proficient children" means children who are
unable to benefit fully from an English-only child care and
development program as a result of either of the following:
   (1) Having used a language other than English when they first
began to speak.
   (2) Having a language other than English predominantly or
exclusively spoken at home.
   (u) "Parent" means a biological parent, stepparent, adoptive
parent, foster parent, caretaker relative, or any other adult living
with a child who has responsibility for the care and welfare of the
child.
   (v) "Program director" means a person who, pursuant to Sections
8244 and 8360.1, is qualified to serve as a program director.
   (w) "Proprietary child care agency" means an organization or
facility providing child care, which is operated for profit.
   (x) "Resource and referral programs" means programs that provide
information to parents, including referrals and coordination of
community resources for parents and public or private providers of
care. Services frequently include, but are not limited to: technical
assistance for providers, toy-lending libraries, equipment-lending
libraries, toy- and equipment-lending libraries, staff development
programs, health and nutrition education, and referrals to social
services.
   (y) "Severely disabled children" are children with exceptional
needs from birth to 21 years of age, inclusive, who require intensive
instruction and training in programs serving pupils with the
following profound disabilities:  autism, blindness, deafness, severe
orthopedic impairments, serious emotional disturbances, or severe
mental retardation. "Severely disabled children" also include those
individuals who would have been eligible for enrollment in a
developmental center for handicapped pupils under Chapter 6
(commencing with Section 56800) of Part 30 as it read on January 1,
1980.
   (z) "Short-term respite child care" means child care service to
assist families whose children have been identified through written
referral from a legal, medical, or social service agency, or
emergency shelter as being neglected, abused, exploited, or homeless,
or at risk of being neglected, abused, exploited, or homeless. Child
care is provided for less than 24 hours per day in child care
centers, treatment centers for abusive parents, family child care
homes, or in the child's own home.
   (aa) (1) "Site supervisor" means a person who, regardless of his
or her title, has operational program responsibility for a child care
and development program at a single site. A site supervisor shall
hold a permit issued by the Commission on Teacher Credentialing that
authorizes supervision of a child care and development program
operating in a single site. The Superintendent may waive the
requirements of this subdivision if the superintendent determines
that the existence of compelling need is appropriately documented.
   (2) In respect to state preschool programs, a site supervisor may
qualify under any of the provisions in this subdivision, or may
qualify by holding an administrative credential or an administrative
services credential. A person who meets the qualifications of a site
supervisor under both Section 8244 and subdivision (e) of Section
8360.1 is also qualified under this subdivision.
   (ab) "Standard reimbursement rate" means that rate established by
the Superintendent pursuant to Section 8265.
   (ac) "Startup costs" means those expenses an agency incurs in the
process of opening a new or additional facility prior to the full
enrollment of children.
   (ad) "State preschool services" means part-day educational
programs for low-income or otherwise disadvantaged
prekindergarten-age children.
   (ae) "Support services" means those services that, when combined
with child care and development services, help promote the healthy
physical, mental, social, and emotional growth of children. Support
services include, but are not limited to: protective services, parent
training, provider and staff training, transportation, parent and
child counseling, child development resource and referral services,
and child placement counseling.
   (af) "Teacher" means a person with the appropriate permit issued
by the Commission on Teacher Credentialing who provides program
supervision and instruction that includes supervision of a number of
aides, volunteers, and groups of children.
   (ag) "Underserved area" means a county or subcounty area,
including, but not limited to, school districts, census tracts, or
ZIP Code areas, where the ratio of publicly subsidized child care and
development program services to the need for these services is low,
as determined by the Superintendent.
   (ah) "Workday" means the time that the parent requires temporary
care for a child for any of the following reasons:
   (1) To undertake training in preparation for a job.
   (2) To undertake or retain a job.
   (3) To undertake other activities that are essential to
maintaining or improving the social and economic function of the
family, are beneficial to the community, or are required because of
health problems in the family.
  SEC. 5.  Section 8212 of the Education Code is amended to read:
   8212.  For purposes of this article, child care resource and
referral programs, established to serve a defined geographic area,
shall provide the following services:
   (a) Identification of the full range of existing child care
services through information provided by all relevant public and
private agencies in the areas of service, and the development of a
resource file of those services which shall be maintained and updated
at least quarterly. These services shall include, but not be limited
to, family day care homes, public and private day care programs,
full-time and part-time programs, and infant, preschool, and extended
care programs.
   The resource file shall include, but not be limited to, the
following information:
   (1) Type of program.
   (2) Hours of service.
   (3) Ages of children served.
   (4) Fees and eligibility for services.
   (5) Significant program information.
   (b) (1) Establishment of a referral process which responds to
parental need for information and which is provided with full
recognition of the confidentiality rights of parents. Resource and
referral programs shall make referrals to licensed child day care
facilities. Referrals shall be made to unlicensed care facilities
only if there is no requirement that the facility be licensed. The
referral process shall afford parents maximum access to all referral
information. This access shall include, but is not limited to,
telephone referrals to be made available for at least 30 hours per
week as part of a full week of operation. Every effort shall be made
to reach all parents within the defined geographic area, including,
but not limited to, any of the following:
   (A) Toll-free telephone lines.
   (B) Office space convenient to parents and providers.
   (C) Referrals in languages which are spoken in the community.
   Each child care resource and referral program shall publicize its
services through all available media sources, agencies, and other
appropriate methods.
   (2) (A) Provision of information to any person who requests a
child care referral of his or her right to view the licensing
information of a licensed child day care facility required to be
maintained at the facility pursuant to Section 1596.859 of the Health
and Safety Code and to access any public files pertaining to the
facility that are maintained by the State Department of Social
Services Community Care Licensing Division.
   (B) A written or oral advisement in substantially the following
form will comply with the requirements of subparagraph (A):
   "State law requires licensed child day care facilities to make
accessible to the public a copy of any licensing report pertaining to
the facility that documents a facility visit or a substantiated
complaint investigation. In addition, a more complete file regarding
a child care licensee may be available at an office of the State
Department of Social Services Community Care Licensing Division. You
have the right to access any public information in these files."
   (c) Maintenance of ongoing documentation of requests for service
tabulated through the internal referral process.  The following
documentation of requests for service shall be maintained by all
child care resource and referral programs:
   (1) Number of calls and contacts to the child care information and
referral program or component.
   (2) Ages of children served.
   (3) Time category of child care request for each child.
   (4) Special time category, such as nights, weekends, and swing
shift.
   (5) Reason that the child care is needed.
   This information shall be maintained in a manner that is easily
accessible for dissemination purposes.
   (d) Provision of technical assistance to existing and potential
providers of all types of child care services.  This assistance shall
include, but not be limited to:
   (1) Information on all aspects of initiating new child care
services including, but not limited to, licensing, zoning, program
and budget development, and assistance in finding this information
from other sources.
   (2) Information and resources that help existing child care
services providers to maximize their ability to serve the children
and parents of their community.
   (3) Dissemination of information on current public issues
affecting the local and state delivery of child care services.
   (4) Facilitation of communication between existing child care and
child-related services providers in the community served.
   Services prescribed by this section shall be provided in order to
maximize parental choice in the selection of child care to facilitate
the maintenance and development of child care services and
resources.
   (e) (1) A program operating pursuant to this article shall, within
two business days of receiving notice, remove a licensed child day
care facility with a revocation or a temporary suspension order, or
that is on probation from the program's referral list.
   (2) A program operating pursuant to this article shall, within two
business days of receiving notice, notify all entities, operating a
program under Article 3 (commencing with Section 8220) and Article
15.5 (commencing with Section 8350) in the program's jurisdiction, of
a licensed child day care facility with a revocation or a temporary
suspension order, or that is on probation.
  SEC. 5.5.  Section 8222 of the Education Code is amended to read:
   8222.  Payments made by alternative payment programs shall be
equal to the fee charged to full-cost families in each program, not
to exceed the applicable market rate ceiling. Alternative payment
programs may expend more than the standard reimbursement rate for a
particular child. However, the aggregate payments for services
purchased by the agency during the contract year may not exceed the
assigned reimbursable amount as established by the contract for the
year.
   No agency may make payments in excess of the fee charged to
full-cost families.
   This section does not preclude alternative payment programs from
using the average daily enrollment adjustment factors for children
with exceptional needs as provided in Section 8265.5.
  SEC. 6.  Section 8226 of the Education Code is amended to read:
   8226.  (a) When making referrals, every program operating pursuant
to this article shall provide information to any person who requests
a child care referral of his or her right to view the licensing
information of a licensed child day care facility required to be
maintained at the facility pursuant to Section 1596.859 of the Health
and Safety Code and to access any public files pertaining to the
facility that are maintained by the State Department of Social
Services Community Care Licensing Division.
   (b) A written or oral advisement in substantially the following
form will comply with the requirements of subdivision (a):
   "State law requires licensed child day care facilities to make
accessible to the public a copy of any licensing report pertaining to
the facility that documents a facility visit or a substantiated
complaint investigation. In addition, a more complete file regarding
a child care licensee may be available at an office of the State
Department of Social Services Community Care Licensing Division. You
have the right to access any public information in these files."
   (c) Every program operating pursuant to this article shall, within
two days of receiving notice, remove from the program's referral
list the name of any licensed child day care facility with a
revocation or a temporary suspension order or that is on probation.
   (d) A program operating pursuant to this article shall, within two
business days of being notified of a revocation or a temporary
suspension order for a licensed child day care facility, do both of
the following:
   (1) Terminate payment to the facility.
   (2) Notify each parent and the facility in writing that payment
has been terminated and the reason for the termination.
   (e) A program operating pursuant to this article shall, upon being
notified that a licensed child day care facility has been placed on
probation, provide written notice to each parent utilizing the
facility that the facility has been placed on probation and that the
parent has the option of selecting a different child day care
provider or remaining with the facility without risk of subsidy
payments to the provider being terminated. The Legislature urges each
agency operating pursuant to this section to provide the written
notice required by this subdivision in the primary language of the
parent, to the extent feasible.
  SEC. 7.  Section 8352 of the Education Code is amended to read:
   8352.  (a) As soon as appropriate, a county welfare department
shall refer families needing child care services to the local child
care resource and referral program funded pursuant to Article 2
(commencing with Section 8210).  Resource and referral program staff
shall colocate with a county welfare department's case management
offices for aid under Chapter 2 (commencing with Section 11200) of
Part 3 of Division 9 of the Welfare and Institutions Code, or any
successor program, or arrange other means of swift communication with
parents and case managers of this aid. The local child care resource
and referral program shall assist families to establish stable child
care arrangements as soon as possible. These child care arrangements
may include licensed and license-exempt care.
   (b) A program operating pursuant to this article shall, within two
business days of being notified of a revocation or a temporary
suspension order for a licensed child day care facility, do both of
the following:
   (1) Terminate payment to the facility.
   (2) Notify each parent and the facility in writing that payment
has been terminated and the reason for the termination.
   (c) A program operating pursuant to this article shall, upon being
notified that a licensed child care facility has been placed on
probation, provide written notice to each parent utilizing the
facility that the facility has been placed on probation and that the
parent has the option of selecting a different child day care
provider or remaining with the facility without risk of subsidy
payments to the provider being terminated. The Legislature urges each
agency operating pursuant to this section to provide the written
notice required by this subdivision in the primary language of the
parent, to the extent feasible.
  SEC. 8.  Section 8421 of the Education Code is amended to read:
   8421.  There is hereby established the 21st Century High School
After School Safety and Enrichment for Teens program. The purpose of
the program is to create incentives for establishing locally driven
after school enrichment programs that partner schools and communities
to provide academic support and safe, constructive alternatives for
high school pupils in the hours after the regular schoolday.
   (a) A minimum of 10 high school after school programs shall be
established to serve pupils in grades 9 to 12, inclusive.
   (b) A high school after school program established pursuant to
this article shall consist of the following two components:
   (1) An academic assistance component that shall include, but need
not be limited to, at least one of the following: preparation for the
high school exit examination, tutoring, homework assistance, or
college preparation, including information about the Cal Grant
Program established pursuant to Article 3 (commencing with Section
69530) of Chapter 2 of Part 42. The assistance shall be aligned with
the regular academic programs of the pupils.
   (2) An enrichment activities component that may include, but need
not be limited to, community service, career and technical education,
job readiness, opportunities for mentoring and tutoring younger
pupils, service learning, arts, computer and technology training,
physical fitness, and recreation activities.
   (c) A program shall comply with locally determined requirements
related to hours and days of program operation through the 2005-06
fiscal year. Commencing with the 2006-07 fiscal year and thereafter,
a program shall comply with the requirements of the department
related to the hours and days of program operation.
   (d) An entity may operate programs on one or multiple sites. If an
entity plans to operate programs at multiple sites, only one
application is required.
   (e) A program may operate on a schoolsite or on another site
approved by the department during the grant application process. A
program located off school grounds shall not be approved unless both
of the following criteria are met:
   (1) Safe transportation is available to transport participating
pupils if necessary.
   (2) The program is at least as available and accessible as similar
programs conducted on schoolsites.
   (f) Applicants for grants pursuant to this article shall ensure
that all of the following requirements are fulfilled, if applicable:

   (1) The application includes a description of the activities that
will be available for pupils and lists the program hours.
   (2) The application includes an estimate of the following:
   (A) The number of pupils expected to attend the program on a
regular basis.
   (B) The average hours of attendance per pupil.
   (C) The percentage of pupils expected to attend the program less
than three days a week, three days a week, and more than three days a
week, for each quarter or semester during the grant period.
   (3) The application documents the commitments of each partner to
operate a program at a location or locations that are safe and
accessible to participating pupils.
   (4) The application demonstrates that pupils were involved in the
design of the program and describes the extent of that involvement.
   (5) The application identifies federal, state, and local programs
that will be combined or coordinated with the high school after
school program for the most effective use of public resources, and
describes a plan for implementing the high school after school
program beyond federal grant funding.
   (6) The applicant complies with all federal requirements in
preparing and submitting the application, as described in the request
for applications of the department.
   (g) The department shall not establish minimum attendance
requirements for individual pupils.
  SEC. 8.5.  Section 17592.70 of the Education Code is amended to
read:
   17592.70.  (a) There is hereby established the School Facilities
Needs Assessment Grant Program with the purpose to provide for a
one-time comprehensive assessment of school facilities needs. The
grant program shall be administered by the State Allocation Board.
   (b) (1) The grants shall be awarded to school districts on behalf
of schoolsites ranked in deciles 1 to 3, inclusive, on the Academic
Performance Index (API), pursuant to Section 52056, based on the 2003
base API score for each school newly constructed prior to January 1,
2000.
   (2) For purposes of this section, schools ranked in deciles 1 to
3, inclusive, on the 2003 base API shall include any schools
determined by the department to meet either of the following:
   (A) The school meets all of the following criteria:
   (i) Does not have a valid base API score for 2003.
   (ii) Is operating in fiscal year 2004-05 and was operating in
fiscal year 2003-04 during the Standardized Testing and Reporting
(STAR) Program testing period.
   (iii) Has a valid base API score for 2002 that was ranked in
deciles 1 to 3, inclusive, in that year.
   (B) The school has an estimated base API score for 2003 that would
be in deciles 1 to 3, inclusive.
   (3) The department shall estimate an API score for any school
meeting the criteria of clauses (i) and (ii) of subparagraph (A) of
paragraph (2) and not meeting the criteria of clause (iii) of
subparagraph (A) of paragraph (2), using available testing scores and
any weighting or corrective factors it deems appropriate. The
department shall provide those API scores to the Office of Public
School Construction and post them on its Web site within 30 days of
the enactment of this section.
   (4) For purposes of this section, schools ranked in deciles 1 to
3, inclusive, on the 2003 base API shall exclude any schools
determined by the department to be operated by county offices of
education pursuant to Section 56140.
   (c) The board shall allocate funds pursuant to subdivision (b) to
school districts with jurisdiction over eligible schoolsites, based
on ten dollars ($10) per pupil enrolled in the eligible school as of
October 2003, with a minimum allocation of seven thousand five
hundred dollars ($7,500) for each schoolsite.
   (d) As a condition of receiving funds pursuant to this section,
school districts shall do all of the following:
   (1) Use the funds to develop a comprehensive needs assessment of
all schoolsites eligible for grants pursuant to subdivision (b). The
assessment shall contain, at a minimum, all of the following
information for each schoolsite:
   (A) The year each building that is currently used for
instructional purposes was constructed.
   (B) The year, if any, each building that is currently used for
instructional purposes was last modernized.
   (C) The pupil capacity of the school.
   (D) The number of pupils enrolled in the school.
   (E) The density of the school campus measured in pupils per acre.

   (F) The total number of classrooms at the school.
   (G) The age and number of portable classrooms at the school.
   (H) Whether the school is operating on a multitrack, year-round
calendar, and, if so, what type.
   (I) Whether the school has a cafeteria, or an auditorium or other
space used for pupil eating and not for class instruction.
   (J) The useful life remaining of all major building systems for
each structure housing instructional space, including, but not
limited to, sewer, water, gas, electrical, roofing, and fire and life
safety protection.
   (K) The estimated costs for five years necessary to maintain
functionality of each instructional space to maintain health, safety,
and suitable learning environment, as applicable, including
classroom, counseling areas, administrative space, libraries,
gymnasiums, multipurpose and dining space, and the accessibility to
those spaces.
   (L) A list of necessary repairs.
   (2) Use the data currently filed with the state as part of the
process of applying for and obtaining modernization or construction
funds for school facilities, or information that is available in the
California Basic Education Data System for the element required in
subparagraphs (D), (E), (F), and (G) of paragraph (1).
   (3) Use the assessment as the baseline for the facilities
inspection system required pursuant to subdivision (e) of Section
17070.75.
                    (4) Provide the results of the assessment to the
Office of Public School Construction, including a report on the
expenditures made in performing the assessment. It is the intent of
the Legislature that the assessments be completed as soon as
possible, but not later than January 1, 2006.
   (5) If a school district does not need the full amount of the
allocation it receives pursuant to this section, the school district
shall expend the remaining funds for making facilities repairs
identified in its needs assessment.  The school district shall report
to the Office of Public School Construction on the repairs completed
pursuant to this paragraph and the cost of the repairs.
   (6) Submit to the Office of Public School Construction an interim
report regarding the progress made by the school district in
completing the assessments of all eligible schools.
  SEC. 8.7.  Section 35186 of the Education Code is amended to read:

   35186.  (a) A school district shall use the uniform complaint
process it has adopted as required by Chapter 5.1 (commencing with
Section 4600) of Title 5 of the California Code of Regulations, with
modifications, as necessary, to help identify and resolve any
deficiencies related to instructional materials, emergency or urgent
facilities conditions that pose a threat to the health and safety of
pupils or staff, and teacher vacancy or misassignment.
   (1) A complaint may be filed anonymously. A complainant who
identifies himself or herself is entitled to a response if he or she
indicates that a response is requested. A complaint form shall
include a space to mark to indicate whether a response is requested.
All complaints and responses are public records.
   (2) The complaint form shall specify the location for filing a
complaint. A complainant may add as much text to explain the
complaint as he or she wishes.
   (3) A complaint shall be filed with the principal of the school or
his or her designee. A complaint about problems beyond the authority
of the school principal shall be forwarded in a timely manner but
not to exceed 10 working days to the appropriate school district
official for resolution.
   (b) The principal or the designee of the district superintendent,
as applicable, shall make all reasonable efforts to investigate any
problem within his or her authority. The principal or designee of the
district superintendent shall remedy a valid complaint within a
reasonable time period but not to exceed 30 working days from the
date the complaint was received. The principal or designee of the
district superintendent shall report to the complainant the
resolution of the complaint within 45 working days of the initial
filing. If the principal makes this report, the principal shall also
report the same information in the same timeframe to the designee of
the district superintendent.
   (c) A complainant not satisfied with the resolution of the
principal or the designee of the district superintendent has the
right to describe the complaint to the governing board of the school
district at a regularly scheduled hearing of the governing board. As
to complaints involving a condition of a facility that poses an
emergency or urgent threat, as defined in paragraph (1) of
subdivision (c) of Section 17592.72, a complainant who is not
satisfied with the resolution proffered by the principal or the
designee of the district superintendent has the right to file an
appeal to the Superintendent, who shall provide a written report to
the State Board of Education describing the basis for the complaint
and, as appropriate, a proposed remedy for the issue described in the
complaint.
   (d) A school district shall report summarized data on the nature
and resolution of all complaints on a quarterly basis to the county
superintendent of schools and the governing board of the school
district. The summaries shall be publicly reported on a quarterly
basis at a regularly scheduled meeting of the governing board of the
school district.  The report shall include the number of complaints
by general subject area with the number of resolved and unresolved
complaints. The complaints and written responses shall be available
as public records.
   (e) The procedure required pursuant to this section is intended to
address all of the following:
   (1) A complaint related to instructional materials as follows:
   (A) A pupil, including an English learner, does not have
standards-aligned textbooks or instructional materials or
state-adopted or district-adopted textbooks or other required
instructional material to use in class.
   (B) A pupil does not have access to instructional materials to use
at home or after school.
   (C) Textbooks or instructional materials are in poor or unusable
condition, have missing pages, or are unreadable due to damage.
   (2) A complaint related to teacher vacancy or misassignment as
follows:
   (A) A semester begins and a teacher vacancy exists.
   (B) A teacher who lacks credentials or training to teach English
learners is assigned to teach a class with more than 20-percent
English learner pupils in the class. This subparagraph does not
relieve a school district from complying with state or federal law
regarding teachers of English learners.
   (C) A teacher is assigned to teach a class for which the teacher
lacks subject matter competency.
   (3) A complaint related to the condition of facilities that pose
an emergency or urgent threat to the health or safety of pupils or
staff as defined in paragraph (1) of subdivision (c) of Section
17592.72 and any other emergency conditions the school district
determines appropriate.
   (f) In order to identify appropriate subjects of complaint, a
notice shall be posted in each classroom in each school in the school
district notifying parents, guardians, pupils, and teachers of the
following:
   (1) There should be sufficient textbooks and instructional
materials. For there to be sufficient textbooks and instructional
materials each pupil, including English learners, must have a
textbook or instructional materials, or both, to use in class and to
take home.
   (2) School facilities must be clean, safe, and maintained in good
repair.
   (3) There should be no teacher vacancies or misassignments as
defined in paragraphs (2) and (3) of subdivision (h).
   (4) The location at which to obtain a form to file a complaint in
case of a shortage. Posting a notice downloadable from the Web site
of the department shall satisfy this requirement.
   (g) A local educational agency shall establish local policies and
procedures, post notices, and implement this section on or before
January 1, 2005.
   (h) For purposes of this section, the following definitions apply:

   (1) "Good repair" has the same meaning as specified in subdivision
(d) of Section 17002.
   (2) "Misassignment" means the placement of a certificated employee
in a teaching or services position for which the employee does not
hold a legally recognized certificate or credential or the placement
of a certificated employee in a teaching or services position that
the employee is not otherwise authorized by statute to hold.
   (3) "Teacher vacancy" means a position to which a single
designated certificated employee has not been assigned at the
beginning of the year for an entire year or, if the position is for a
one-semester course, a position to which a single designated
certificated employee has not been assigned at the beginning of a
semester for an entire semester.
  SEC. 9.  Section 38101 of the Education Code is amended to read:
   38101.  (a) The governing board of a school district may authorize
expenditures from the cafeteria fund or cafeteria account only for
those charges from that fund or account that are defined in the
California School Accounting Manual.
   (b) A food service program shall not be charged more than once for
expenditures for the same service. If a food service program is
being charged for a service as a direct cost, the school district
shall not also allocate that cost as a direct support cost or
indirect cost.
   (c) For purposes of this section, an "indirect cost" shall be
limited to the lesser of the school district's prior year indirect
cost rate as approved by the department or the statewide average
approved indirect cost for the second prior fiscal year.
   (d) Charges to, or transfers from, a food service program shall
indicate when the charge or transfer was made and shall be
accompanied by a written explanation of the purpose of, and basis
for, the expenditure.
   (e) This section does not authorize a school district to charge a
food service program any charges prohibited by state or federal law
or regulation.
   (f) If the department and the Department of Finance concur that a
school district has violated this section, the Superintendent shall
direct that school district to transfer double the amount improperly
transferred to the general fund of the school district from that fund
to the cafeteria fund of the school district or cafeteria account
for the subsequent fiscal year which is then to be used for the
improvement of the food service program of the school district.  If
the school district fails to make that transfer as directed, the
Superintendent shall reduce the regular apportionment of the school
district determined pursuant to Section 42238 and increase the child
nutrition allowance of the school district determined pursuant to
Section 41350 by double the amount improperly transferred to the
general fund of the school district and that amount is then to be
used for improvement of the food service program.
   (g) It is the intent of the Legislature in enacting this section
that responsible school district officials be held fully accountable
for the accounting and reporting of food service programs and that
minor and inadvertent instances of noncompliance be resolved in a
fair and equitable manner to the satisfaction of the Superintendent
and the Department of Finance.
   (h) The Superintendent, with the approval of the Department of
Finance, may waive up to the full transfer amount in subdivision (f)
if he or she determines that the noncompliance involved is minor or
inadvertent, or both.
  SEC. 9.5.  Section 41020 of the Education Code is amended to read:

   41020.  (a) It is the intent of the Legislature to encourage sound
fiscal management practices among local educational agencies for the
most efficient and effective use of public funds for the education
of children in California by strengthening fiscal accountability at
the district, county, and state levels.
   (b) (1) Not later than the first day of May of each fiscal year,
each county superintendent of schools shall provide for an audit of
all funds under his or her jurisdiction and control and the governing
board of each local educational agency shall either provide for an
audit of the books and accounts of the local educational agency,
including an audit of income and expenditures by source of funds, or
make arrangements with the county superintendent of schools having
jurisdiction over the local educational agency to provide for that
auditing.
   (2) A contract to perform the audit of a local educational agency
that has a disapproved budget or has received a negative
certification on any budget or interim financial report during the
current fiscal year or either of the two preceding fiscal years, or
for which the county superintendent of schools has otherwise
determined that a lack of going concern exists, is not valid unless
approved by the responsible county superintendent of schools and the
governing board.
   (3) If the governing board of a local educational agency has not
provided for an audit of the books and accounts of the local
educational agency by April 1, the county superintendent of schools
having jurisdiction over the local educational agency shall provide
for the audit of each local educational agency.
   (4) An audit conducted pursuant to this section shall fully comply
with the Government Auditing Standards issued by the Comptroller
General of the United States.
   (5) For purposes of this section, "local educational agency" does
not include community colleges.
   (c) Each audit conducted in accordance with this section shall
include all funds of the local educational agency, including the
student body and cafeteria funds and accounts and any other funds
under the control or jurisdiction of the local educational agency.
Each audit shall also include an audit of pupil attendance
procedures.
   (d) All audit reports for each fiscal year shall be developed and
reported using a format established by the Controller after
consultation with the Superintendent and the Director of Finance.
   (e) (1) The cost of the audits provided for by the county
superintendent of schools shall be paid from the county school
service fund and the county superintendent of schools shall transfer
the pro rata share of the cost chargeable to each district from
district funds.
   (2) The cost of the audit provided for by a governing board shall
be paid from local educational agency funds.  The audit of the funds
under the jurisdiction and control of the county superintendent of
schools shall be paid from the county school service fund.
   (f) (1) The audits shall be made by a certified public accountant
or a public accountant, licensed by the California Board of
Accountancy, and selected by the local educational agency, as
applicable, from a directory of certified public accountants and
public accountants deemed by the Controller as qualified to conduct
audits of local educational agencies, which shall be published by the
Controller not later than December 31 of each year.
   (2) Commencing with the 2003-04 fiscal year and except as provided
in subdivision (d) of Section 41320.1, it is unlawful for a public
accounting firm to provide audit services to a local educational
agency if the lead audit partner, or coordinating audit partner,
having primary responsibility for the audit, or the audit partner
responsible for reviewing the audit, has performed audit services for
that local educational agency in each of the six previous fiscal
years. The Education Audits Appeal Panel may waive this requirement
if the panel finds that no otherwise eligible auditor is available to
perform the audit.
   (3) It is the intent of the Legislature that, notwithstanding
paragraph (2) of this subdivision, the rotation within public
accounting firms conform to provisions of the federal Sarbanes-Oxley
Act of 2002 (P.L. 107-204; 15 U.S.C.  Sec. 7201 et seq.), and upon
release of the report required by the act of the Comptroller General
of the United States addressing the mandatory rotation of registered
public accounting firms, the Legislature intends to reconsider the
provisions of paragraph (2). In determining which certified public
accountants and public accountants shall be included in the
directory, the Controller shall use the following criteria:
   (A) The certified public accountants or public accountants shall
be in good standing as certified by the Board of Accountancy.
   (B) The certified public accountants or public accountants, as a
result of a quality control review conducted by the Controller
pursuant to Section 14504.2, shall not have been found to have
conducted an audit in a manner constituting noncompliance with
subdivision (a) of Section 14503.
   (g) (1) The auditor's report shall include each of the following:

   (A) A statement that the audit was conducted pursuant to standards
and procedures developed in accordance with Chapter 3 (commencing
with Section 14500) of Part 9 of Division 1 of Title 1.
   (B) A summary of audit exceptions and management improvement
recommendations.
   (C) Each audit of a local educational agency shall include an
evaluation by the auditor on whether there is substantial doubt about
the ability of the local educational agency to continue as a going
concern for a reasonable period of time. This evaluation shall be
based on the Statement of Auditing Standards (SAS) No. 59, as issued
by the AICPA regarding disclosure requirements relating to the
ability of the entity to continue as a going concern.
   (2) To the extent possible, a description of correction or plan of
correction shall be incorporated in the audit report, describing the
specific actions that are planned to be taken, or that have been
taken, to correct the problem identified by the auditor. The
descriptions of specific actions to be taken or that have been taken
shall not solely consist of general comments such as "will implement,"
"accepted the recommendation," or "will discuss at a later date."
   (h) Not later than December 15, a report of each local educational
agency audit for the preceding fiscal year shall be filed with the
county superintendent of schools of the county in which the local
educational agency is located, the department, and the Controller.
The Superintendent shall make any adjustments necessary in future
apportionments of all state funds, to correct any audit exceptions
revealed by those audit reports.
   (i) (1) Commencing with the 2002-03 audit of local educational
agencies pursuant to this section, each county superintendent of
schools shall be responsible for reviewing the audit exceptions
contained in an audit of a local educational agency under his or her
jurisdiction related to attendance, inventory of equipment, internal
control, and any miscellaneous items, and determining whether the
exceptions have been either corrected or an acceptable plan of
correction has been developed.
   (2) Commencing with the 2004-05 audit of local educational
agencies pursuant to this section, each county superintendent of
schools shall include in the review of audit exceptions performed
pursuant to this subdivision those audit exceptions related to use of
instructional materials program funds, teacher misassignments
pursuant to Section 44258.9, information reported on the school
accountability report card required pursuant to Section 33126 and
shall determine whether the exceptions are either corrected or an
acceptable plan of correction has been developed.
   (j) Upon submission of the final audit report to the governing
board of each local educational agency and subsequent receipt of the
audit by the county superintendent of schools having jurisdiction
over the local educational agency, the county office of education
shall do all of the following:
   (1) Review audit exceptions related to attendance, inventory of
equipment, internal control, and other miscellaneous exceptions.
Attendance exceptions or issues shall include, but not be limited to,
those related to revenue limits, adult education, and independent
study.
   (2) If a description of the correction or plan of correction has
not been provided as part of the audit required by this section, then
the county superintendent of schools shall notify the local
educational agency and request the governing board of the local
educational agency to provide to the county superintendent of schools
a description of the corrections or plan of correction by March 15.

   (3) Review the description of correction or plan of correction and
determine its adequacy. If the description of the correction or plan
of correction is not adequate, the county superintendent of schools
shall require the local educational agency to resubmit that portion
of its response that is inadequate.
   (k) Each county superintendent of schools shall certify to the
Superintendent and the Controller, not later than May 15, that his or
her staff has reviewed all audits of local educational agencies
under his or her jurisdiction for the prior fiscal year, that all
exceptions that the county superintendent was required to review were
reviewed, and that all of those exceptions, except as otherwise
noted in the certification, have been corrected by the local
educational agency or that an acceptable plan of correction has been
submitted to the county superintendent of schools.  In addition, the
county superintendent shall identify, by local educational agency,
any attendance-related audit exception or exceptions involving state
funds, and require the local educational agency to which the audit
exceptions were directed to submit appropriate reporting forms for
processing by the Superintendent.
   (l) In the audit of a local educational agency for a subsequent
year, the auditor shall review the correction or plan or plans of
correction submitted by the local educational agency to determine if
the exceptions have been resolved. If not, the auditor shall
immediately notify the appropriate county office of education and the
department and restate the exception in the audit report. After
receiving that notification, the department shall either consult with
the local educational agency to resolve the exception or require the
county superintendent of schools to follow up with the local
educational agency.
   (m) (1) The Superintendent shall be responsible for ensuring that
local educational agencies have either corrected or developed plans
of correction for any one or more of the following:
   (A) All federal and state compliance audit exceptions identified
in the audit.
   (B) Any exceptions that the county superintendent certifies as of
May 15 have not been corrected.
   (C) Any repeat audit exceptions that are not assigned to a county
superintendent to correct.
   (2) In addition, the Superintendent shall be responsible for
ensuring that county superintendents of schools and each county board
of education that serves as the governing board of a local
educational agency either correct all audit exceptions identified in
the audits of county superintendents of schools and of the local
educational agencies for which the county boards of education serve
as the governing boards or develop acceptable plans of correction for
those exceptions.
   (3) The Superintendent shall report annually to the Controller on
his or her actions to ensure that school districts, county
superintendents of schools, and each county board of education that
serves as the governing board of a school district have either
corrected or developed plans of correction for any of the exceptions
noted pursuant to paragraph (1).
   (n) To facilitate correction of the exceptions identified by the
audits issued pursuant to this section, commencing with 2002-03
audits pursuant to this section, the Controller shall require
auditors to categorize audit exceptions in each audit report in a
manner that will make it clear to both the county superintendent of
schools and the Superintendent which exceptions they are responsible
for ensuring the correction of by a local educational agency.  In
addition, the Controller annually shall select a sampling of county
superintendents of schools and perform a followup of the audit
resolution process of those county superintendents of schools and
report the results of that followup to the Superintendent and the
county superintendents of schools that were reviewed.
   (o) County superintendents of schools shall adjust subsequent
local property tax requirements to correct audit exceptions relating
to local educational agency tax rates and tax revenues.
   (p) If a governing board or county superintendent of schools fails
or is unable to make satisfactory arrangements for the audit
pursuant to this section, the Controller shall make arrangements for
the audit and the cost of the audit shall be paid from local
educational agency funds or the county school service fund, as the
case may be.
   (q) Audits of regional occupational centers and programs are
subject to the provisions of this section.
   (r) This section does not authorize examination of, or reports on,
the curriculum used or provided for in any local educational agency.

   (s) Notwithstanding any other provision of law, a nonauditing,
management, or other consulting service to be provided to a local
educational agency by a certified public accounting firm while the
certified public accounting firm is performing an audit of the agency
pursuant to this section must be in accord with Government
Accounting Standards, Amendment No. 3, as published by the United
States General Accounting Office.
  SEC. 10.  Section 41327.2 of the Education Code is amended to read:

   41327.2.  (a) The appointment of an administrator pursuant to
Section 41326 does not remove any statutory rights, duties, or
obligations from the county superintendent of schools. The county
superintendent of schools retains the responsibility to superintend
school districts under his or her jurisdiction.
   (b) The county superintendent of schools shall submit reports to
the Superintendent, the appropriate fiscal and policy committees of
the Legislature, the Director of Finance, and the Secretary for
Education subsequent to review by the county superintendent of
schools of the district's budget and interim reports in accordance
with subdivisions (d) and (g) of, and paragraph (3) of subdivision
(i) of, Section 42127, and paragraph (2) of subdivision (a) of, and
subdivision (e) of, Section 42131. These reports shall document the
fiscal and administrative status of the qualifying district,
particularly in regard to the implementation of fiscal and management
recovery plans. Each report shall also include a determination of
whether the revenue streams to the district appear to be consistent
with its expenditure plan, according to the most recent data
available at the time of the report. These reports are required until
six months after all rights, duties, and powers are returned to the
school district pursuant to this article.
  SEC. 11.  Section 41344 of the Education Code is amended to read:
   41344.  (a) If, as the result of an audit or review, a local
educational agency is required to repay an apportionment significant
audit exception or to pay a penalty arising from an audit exception,
the Superintendent and the Director of Finance, or their designees,
shall jointly establish a plan for repayment of state school funds
that the local educational agency received on the basis of average
daily attendance, or other data, that did not comply with statutory
or regulatory requirements that were conditions of the
apportionments, or for payment of a penalty arising from an audit
exception. A local educational agency shall request a plan within 90
days of receiving the final audit report or review, within 30 days of
withdrawing or receiving a final determination regarding an appeal
pursuant to subdivision (d), or, in the absence of an appeal pursuant
to subdivision (d), within 30 days of withdrawing or receiving a
determination of a summary review pursuant to subdivision (d) of
Section 41344.1. At the time the
          local educational agency is notified, the Controller shall
also be notified of the plan. The plan shall be established in
accordance with the following:
   (1) The Controller shall withhold the disallowed or penalty amount
at the next principal apportionment or pursuant to paragraph (2),
unless subdivision (d) of this section or subdivision (d) of Section
41344.1 applies, in which case the disallowed or penalty amount shall
be withheld, at the next principal apportionment or pursuant to
paragraph (2) following the determination regarding the appeal or
summary appeal. In calculating a disallowed amount, the Controller
shall determine the total amount of overpayment received by the local
educational agency on the basis of average daily attendance, or
other data, reported by the local educational agency that did not
comply with one or more statutory or regulatory requirements that are
conditions of apportionment.
   (2) If the Superintendent and the Director of the Department of
Finance concur that repayment of the full liability or payment of the
penalty in the current fiscal year would constitute a severe
financial hardship for the local agency, they may approve a plan of
equal annual payments over a period of up to eight years. The plan
shall include interest on each year's outstanding balance at the rate
earned on the state's Pooled Money Investment Account during that
year. The Superintendent and the Director of the Department of
Finance shall jointly establish this plan.  The Controller shall
withhold amounts pursuant to the plan.
   (3) If the Superintendent and the Director of the Department of
Finance do not jointly establish a plan, the Controller shall
withhold the entire disallowed amount determined pursuant to
paragraph (1), or the penalty amount, at the next principal
apportionment.
   (b) (1) For purposes of computing average daily attendance
pursuant to Section 42238.5, a local educational agency's prior
fiscal year average daily attendance shall be reduced by an amount
equal to any average daily attendance disallowed in the current year,
by an audit or review, as defined in subdivision (e).
   (2) Commencing with the 1999-2000 fiscal year, this subdivision
may not result in a local educational agency repaying more than the
value of the average daily attendance disallowed in the audit
exception plus interest and other penalties or reductions in
apportionments as provided by existing law.
   (c) Notwithstanding any other provision of law, this section may
not be waived under any authority set forth in this code except as
provided in this section or Section 41344.1.
   (d) Within 60 days of the date on which a local educational agency
receives a final audit report resulting from an audit or review of
all or any part of the operations of the local educational agency, or
within 30 days of receiving a determination of a summary review
pursuant to subdivision (d) of Section 41344.1, a local educational
agency may appeal a finding contained in the final report, pursuant
to Section 41344.1. Within 90 days of the date on which the appeal is
received by the panel, a hearing shall be held at which the local
educational agency may present evidence or arguments if the local
educational agency believes that the final report contains any
finding that was based on errors of fact or interpretation of law, or
if the local educational agency believes in good faith that it was
in substantial compliance with all legal requirements. A repayment
schedule may not commence until the panel reaches a determination
regarding the appeal. If the panel determines that the local
educational agency is correct in its assertion, in whole or in part,
the allowable portion of any apportionment payment that was withheld
shall be paid at the next principal apportionment.
   (e) As used in this section, "audit or review" means an audit
conducted by the Controller's office, an annual audit conducted by a
certified public accountant or a public accounting firm pursuant to
Section 41020, and an audit or review conducted by a governmental
agency that provided the local educational agency with an opportunity
to provide a written response.
  SEC. 12.  Section 41344.1 of the Education Code is amended to read:

   41344.1.  (a) The Education Audit Appeals Panel is hereby
established as a separate state agency. Its membership shall consist
of the Superintendent, the Director of the Department of Finance, and
the Chief Executive Officer of the Fiscal Crisis and Management
Assistance Team established pursuant to Section 42127.8 or their
designees.  The panel shall have the authority to expend funds, hire
staff, make contracts, sue and be sued, and issue regulations in
furtherance of its duties.
   (b) The panel shall hear appeals filed pursuant to subdivision (d)
of Section 41344. The Controller shall be a party to all appeals.
The department and the Department of Finance may, at their election,
timely intervene as a party in any appeal. The panel shall consider
audit appeals pursuant to the administrative adjudication provisions
of the Administrative Procedure Act (Chapter 4.5 (commencing with
Section 11400) and Chapter 5 (commencing with Section 11500) of Part
1 of Division 3 of Title 2 of the Government Code), except that it
may adopt regulations specifying special pleadings that shall govern
audit appeals. The panel may approve settlements and make findings of
fact and interpretations of law.
   (c) Compliance with all legal requirements is a condition to the
state's obligation to make apportionments. A condition may be deemed
satisfied if the panel finds there has been compliance or substantial
compliance with all legal requirements. "Substantial compliance"
means nearly complete satisfaction of all material requirements of a
funding program that provide an educational benefit substantially
consistent with the program's purpose. A minor or inadvertent
noncompliance may be grounds for a finding of substantial compliance
provided that the local educational agency can demonstrate it acted
in good faith to comply with the conditions established in law or
regulation necessary for apportionment of funding. The panel may
further define "substantial compliance" by issuing regulations or
through adjudicative opinions, or both. If the panel finds there has
been substantial compliance, the panel may waive or reduce the
reimbursement or penalty amount and may also order other remedial
measures sufficient to induce full compliance in the future. Other
remedial measures may include restoration of a reduction or penalty
amount if full compliance is not rendered in the future, ordering
special audits, and requiring special training.
   (d) In addition to the normal appeal process specified above,
there is hereby created a voluntary, informal, summary appeals
process for noncompliant audit exceptions that clearly constitute
substantial compliance as that term is defined in subdivision (c).
Requests for summary review shall be made to the executive officer of
the panel who may seek comment from the Department of Finance or
Superintendent. Summary review shall be sought within 30 days of the
date on which a local educational agency receives a final audit
report resulting from an audit or review.
   (1) If the executive officer concludes the conditions for finding
substantial compliance are not clearly met or involve substantial
questions of fact, the executive officer may deny the request for
summary review and the appellant may pursue its claim through the
normal appeal process.
   (2) For appeals in which the total audit exceptions for full
repayment or penalty constitute less than 150 units of average daily
attendance or seven hundred fifty thousand dollars ($750,000),
whichever is less, the executive officer may waive or reduce the
reimbursement or penalty upon a finding of substantial compliance and
that other remedial measures are sufficient to induce full
compliance in the future.
   (3) For appeals in which the total audit exceptions for full
repayment or penalty meet or exceed 150 units of average daily
attendance or seven hundred fifty thousand dollars ($750,000),
whichever is greater, the executive officer may waive or reduce the
reimbursement or penalty upon a finding of substantial compliance and
order other remedial measures that are sufficient to induce full
compliance in the future, if he or she has the written approval of
the Department of Finance and the Superintendent. The executive
officer shall provide the details of the proposed settlement and the
rationale in writing to the Department of Finance and Superintendent
and allow at least 30 days for their review.
   (4) The right to appeal pursuant to subdivision (d) of Section
41344 is independent of this subdivision and an appellant may pursue
his or her appeal under subdivision (b) regardless of the result
under this subdivision. A local educational agency that has
unresolved audit appeals pursuant to subdivision (d) of Section 41344
pending on January 1, 2003, may file a request for summary review
under this subdivision for a period of 60 days after January 1, 2003.

  SEC. 13.  Section 41402 of the Education Code is amended to read:
   41402.  The maximum ratios of administrative employees to each 100
teachers in the various types of school districts shall be as
follows:
   (a) In elementary school districts--9.
   (b) In unified school districts--8.
   (c) In high school districts--7.
   This section shall not apply to a school district that has one or
fewer administrators.
  SEC. 14.  Section 41511 of the Education Code is amended to read:
   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 2.00 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
6110-228-0001 of Section 2.00 of the annual Budget Act. Grant funds
distributed to a school district in order to carry out the purpose of
this subdivision are offsetting revenues within the meaning of
subdivision (e) of Section 17556 of the Government Code for any
reimbursable mandated cost claim for the development of school safety
plans as required by Section 32281 of the Education Code. A school
district that accepts funds in order to carry out the purpose of this
subdivision shall reduce its estimated and actual mandate
reimbursement claim by the amount of funding provided to it in order
to carry out the purposes of this subdivision.
   (e) School community violence prevention, as funded pursuant to
Item 6110-228-0001 of Section 2.00 of the annual Budget Act.
   (f) Conflict resolution, as funded pursuant to Item 6110-228-0001
of Section 2.00 of the annual Budget Act.
  SEC. 15.  Section 41521 of the Education Code is amended to read:
   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 described by subdivision (a). To ensure the
Superintendent 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 on an
ongoing basis of the approval status of these programs and numbers
of participating candidates in each approved program.
  SEC. 16.  Section 41530 of the Education Code is amended to read:
   41530.  (a) There is hereby established the professional
development block grant. Commencing with the 2005-06 fiscal year, the
Superintendent 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.
   (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.
  SEC. 17.  Section 41976 of the Education Code is amended to read:
   41976.  (a) For purposes of this chapter, the following classes
and courses are authorized to be offered by school districts and
county superintendents of schools for apportionment purposes from the
adult education fund:
   (1) Adult programs in parenting, including parent cooperative
preschools, and classes in child growth and development, parent-child
relationships, and parenting.
   (2) Adult programs in elementary and secondary basic skills and
other courses and classes required for the high school diploma.
Apportionments for these courses and classes may only be generated by
students who do not possess a high school diploma, except for
remedial academic courses or classes in reading, mathematics, and
language arts.
   (3) Adult education programs in English as a second language.
   (4) Adult education programs for immigrants eligible for
educational services in citizenship, English as a second language,
and workforce preparation classes in the basic skills of speaking,
listening, reading, writing, mathematics, decisionmaking and problem
solving skills, and other classes required for preparation to
participate in job specific technical training.
   (5) Adult education programs for adults with disabilities.
   (6) Adult short-term career technical education programs with high
employment potential. Any reference to "vocational" education or
programs in adult education means "career technical" education or
programs in adult education.
   (7) Adult programs for older adults.
   (8) Adult education programs for apprentices.
   (9) Adult programs in home economics.
   (10) Adult programs in health and safety education.
   (b) No state apportionment shall be made for any course or class
which is not set forth in subdivision (a).
  SEC. 18.  Section 41976.5 of the Education Code is amended to read:

   41976.5.  (a) Each school district or county superintendent of
schools providing services in summer school programs for adults with
disabilities in the 1977-78 school year shall continue in the 1980-81
fiscal year and each fiscal year thereafter to offer these programs.

   (b) A school district or county superintendent of schools
receiving apportionments from Section A of the State School Fund
shall offer summer programs for graduating high school seniors in
need of courses for graduation.
  SEC. 19.  Section 42127 of the Education Code is amended to read:
   42127.  (a) On or before July 1 of each year, the governing board
of each school district shall accomplish the following:
   (1) Hold a public hearing on the budget to be adopted for the
subsequent fiscal year. The budget to be adopted shall be prepared in
accordance with Section 42126. The agenda for that hearing shall be
posted at least 72 hours prior to the public hearing and shall
include the location where the budget will be available for public
inspection.
   (2) Adopt a budget. Not later than five days after that adoption
or by July 1, whichever occurs first, the governing board shall file
that budget with the county superintendent of schools. That budget
and supporting data shall be maintained and made available for public
review. If the governing board of the district does not want all or
a portion of the property tax requirement levied for the purpose of
making payments for the interest and redemption charges on
indebtedness as described in paragraph (1) or (2) of subdivision (b)
of Section 1 of Article XIII A of the California Constitution, the
budget shall include a statement of the amount or portion for which a
levy shall not be made.
   (b) The county superintendent of schools may accept changes in any
statement included in the budget, pursuant to subdivision (a), of
the amount or portion for which a property tax levy shall not be
made. The county superintendent or the county auditor shall compute
the actual amounts to be levied on the property tax rolls of the
district for purposes that exceed apportionments to the district
pursuant to Chapter 6 (commencing with Section 95) of Part 0.5 of
Division 1 of the Revenue and Taxation Code. Each school district
shall provide all data needed by the county superintendent or the
county auditor to compute the amounts. On or before August 15, the
county superintendent shall transmit the amounts computed to the
county auditor who shall compute the tax rates necessary to produce
the amounts. On or before September 1, the county auditor shall
submit the rate computed to the board of supervisors for adoption.
   (c) The county superintendent of schools shall do all of the
following:
   (1) Examine the adopted budget to determine whether it complies
with the standards and criteria adopted by the State Board of
Education pursuant to Section 33127 for application to final local
educational agency budgets. The county superintendent shall identify,
if necessary, any technical corrections that are required to be made
to bring the budget into compliance with those standards and
criteria.
   (2) Determine whether the adopted budget will allow the district
to meet its financial obligations during the fiscal year and is
consistent with a financial plan that will enable the district to
satisfy its multiyear financial commitments. In addition to his or
her own analysis of the budget of each school district, the county
superintendent of schools shall review and consider studies, reports,
evaluations, or audits of the school district that were commissioned
by the district, the county superintendent, the Superintendent, and
state control agencies and that contain evidence that the school
district is showing fiscal distress under the standards and criteria
adopted in Section 33127 or that contain a finding by an external
reviewer that more than three of the 15 most common predictors of a
school district needing intervention, as determined by the County
Office Fiscal Crisis and Management Assistance Team, are present. The
county superintendent of schools shall either conditionally approve
or disapprove a budget that does not provide adequate assurance that
the district will meet its current and future obligations and resolve
any problems identified in studies, reports, evaluations, or audits
described in this paragraph.
   (d) On or before August 15, the county superintendent of schools
shall approve, conditionally approve, or disapprove the adopted
budget for each school district. If a school district does not submit
a budget to the county superintendent of schools, the county
superintendent of schools shall, at district expense, develop a
budget for that school district by September 15 and transmit that
budget to the governing board of the school district. The budget
prepared by the county superintendent of schools shall be deemed
adopted, unless the county superintendent of schools approves any
modifications made by the governing board of the school district. The
approved budget shall be used as a guide for the district's
priorities. The Superintendent shall review and certify the budget
approved by the county. If, pursuant to the review conducted pursuant
to subdivision (c), the county superintendent of schools determines
that the adopted budget for a school district does not satisfy
paragraph (1) or (2) of that subdivision, he or she shall
conditionally approve or disapprove the budget and, not later than
August 15, transmit to the governing board of the school district, in
writing, his or her recommendations regarding revision of the budget
and the reasons for those recommendations, including, but not
limited to, the amounts of any budget adjustments needed before he or
she can conditionally approve that budget. The county superintendent
of schools may assign a fiscal adviser to assist the district to
develop a budget in compliance with those revisions. In addition, the
county superintendent of schools may appoint a committee to examine
and comment on the superintendent's review and recommendations,
subject to the requirement that the committee report its findings to
the superintendent no later than August 20.
   (e) On or before September 8, the governing board of the school
district shall revise the adopted budget to reflect changes in
projected income or expenditures subsequent to July 1, and to include
any response to the recommendations of the county superintendent of
schools, shall adopt the revised budget, and shall file the revised
budget with the county superintendent of schools. Prior to revising
the budget, the governing board shall hold a public hearing regarding
the proposed revisions, to be conducted in accordance with Section
42103. In addition, if the adopted budget is disapproved pursuant to
subdivision (d), the governing board and the county superintendent of
schools shall review the disapproval and the recommendations of the
county superintendent of schools regarding revision of the budget at
the public hearing. The revised budget and supporting data shall be
maintained and made available for public review.
   (f) On or before September 22, the county superintendent of
schools shall provide a list to the Superintendent identifying all
school districts for which budgets may be disapproved.
   (g) The county superintendent of schools shall examine the revised
budget to determine whether it (1) complies with the standards and
criteria adopted by the State Board of Education pursuant to Section
33127 for application to final local educational agency budgets, (2)
allows the district to meet its financial obligations during the
fiscal year, (3) satisfies all conditions established by the county
superintendent of schools in the case of a conditionally approved
budget, and (4) is consistent with a financial plan that will enable
the district to satisfy its multiyear financial commitments, and, not
later than October 8, shall approve or disapprove the revised
budget. If the county superintendent of schools disapproves the
budget, he or she shall call for the formation of a budget review
committee pursuant to Section 42127.1, unless the governing board of
the school district and the county superintendent of schools agree to
waive the requirement that a budget review committee be formed and
the department approves the waiver after determining that a budget
review committee is not necessary. Upon the grant of a waiver, the
county superintendent has the authority and responsibility provided
to a budget review committee in Section 42127.3. Upon approving a
waiver of the budget review committee, the department shall ensure
that a balanced budget is adopted for the school district by November
30. If no budget is adopted by November 30, the Superintendent may
adopt a budget for the school district. The Superintendent shall
report to the Legislature and the Director of Finance by December 10
if any district, including a district that has received a waiver of
the budget review committee process, does not have an adopted budget
by November 30. This report shall include the reasons why a budget
has not been adopted by the deadline, the steps being taken to
finalize budget adoption, the date the adopted budget is anticipated,
and whether the Superintendent has or will exercise his or her
authority to adopt a budget for the school district.
   (h) Not later than October 8, the county superintendent of schools
shall submit a report to the Superintendent identifying all school
districts for which budgets have been disapproved or budget review
committees waived. The report shall include a copy of the written
response transmitted to each of those districts pursuant to
subdivision (d).
   (i) Notwithstanding any other provision of this section, the
budget review for a school district shall be governed by paragraphs
(1), (2), and (3) of this subdivision, rather than by subdivisions
(e) and (g), if the governing board of the school district so elects
and notifies the county superintendent in writing of that decision,
not later than October 31 of the immediately preceding calendar year.
On or before July 1, the governing board of a school district for
which the budget review is governed by this subdivision, rather than
by subdivisions (e) and (g), shall conduct a public hearing regarding
its proposed budget in accordance with Section 42103.
   (1) If the adopted budget of a school district is disapproved
pursuant to subdivision (d), on or before September 8, the governing
board of the school district, in conjunction with the county
superintendent of schools, shall review the superintendent's
recommendations at a regular meeting of the governing board and
respond to those recommendations.  The response shall include any
revisions to the adopted budget and other proposed actions to be
taken, if any, as a result of those recommendations.
   (2) On or before September 22, the county superintendent of
schools will provide a list to the Superintendent identifying all
school districts for which a budget may be tentatively disapproved.
   (3) Not later than October 8, after receiving the response
required under paragraph (1), the county superintendent of schools
shall review that response and either approve or disapprove the
budget. If the county superintendent of schools disapproves the
budget, he or she shall call for the formation of a budget review
committee pursuant to Section 42127.1, unless the governing board of
the school district and the county superintendent of schools agree to
waive the requirement that a budget review committee be formed and
the department approves the waiver after determining that a budget
review committee is not necessary. Upon the grant of a waiver, the
county superintendent has the authority and responsibility provided
to a budget review committee in Section 42127.3. Upon approving a
waiver of the budget review committee, the department
                               shall ensure that a balanced budget is
adopted for the school district by November 30. The Superintendent
shall report to the Legislature and the Director of Finance by
December 10 if any district, including a district that has received a
waiver of the budget review committee process, does not have an
adopted budget by November 30. This report shall include the reasons
why a budget has not been adopted by the deadline, the steps being
taken to finalize budget adoption, and the date the adopted budget is
anticipated.
   (4) Not later than 45 days after the Governor signs the annual
Budget Act, the school district shall make available for public
review any revisions in revenues and expenditures that it has made to
its budget to reflect the funding made available by that Budget Act.

   (j) Any school district for which the county board of education
serves as the governing board is not subject to subdivisions (c) to
(h), inclusive, but is governed instead by the budget procedures set
forth in Section 1622.
  SEC. 20.  Section 42132 of the Education Code is amended to read:
   42132.  On or before September 15 of each year, the governing
board of each school district shall adopt a resolution to identify,
pursuant to Division 9 (commencing with Section 7900) of Title 1 of
the Government Code, the estimated appropriations limit for the
district for the current fiscal year and the actual appropriations
limit for the district for the preceding fiscal year. That resolution
shall be adopted at a regular or special meeting of the governing
board. Notwithstanding Section 7910 of the Government Code,
documentation used in the identification of the appropriations limits
shall be made available to the public on the date of the meeting.
  SEC. 21.  Section 42282 of the Education Code is amended to read:
   42282.  For each district with fewer than 2,501 units of second
principal apportionment average daily attendance, on account of each
necessary small school, the county superintendent shall make the
following computations:
   (a) For each necessary small school which has an average daily
attendance during the fiscal year of less than 26, exclusive of
pupils attending the 7th and 8th grades of a junior high school, and
for which school at least one teacher was hired full time, the county
superintendent shall compute for the district fifty-two thousand
nine hundred twenty-five dollars ($52,925).
   (b) For each necessary small school which has an average daily
attendance during the fiscal year of 26 or more and less than 51,
exclusive of pupils attending the 7th and 8th grades of a junior high
school, and for which school at least two teachers were hired full
time for more than one-half of the days schools were maintained, the
county superintendent shall compute for the district one hundred five
thousand eight hundred fifty dollars ($105,850).
   (c) For each necessary small school which has an average daily
attendance during the fiscal year of 51 or more but less than 76,
exclusive of pupils attending the 7th and 8th grades of a junior high
school, and for which school three teachers were hired full time for
more than one-half of the days schools were maintained, the county
superintendent shall compute for the district one hundred fifty-eight
thousand seven hundred seventy-five dollars ($158,775).
   (d) For each necessary small school which has an average daily
attendance during the fiscal year of 76 or more and less than 101,
exclusive of pupils attending the 7th and 8th grades of a junior high
school, and for which school four teachers were hired full time for
more than one-half of the days schools were maintained, the county
superintendent shall compute for the district two hundred eleven
thousand seven hundred dollars ($211,700). These school districts may
use this funding calculation until the revenue limit per unit of
average daily attendance multiplied by the average daily attendance
produces state aid equal to the small school funding formula.
   (e) For the 1998-99 fiscal year and each fiscal year thereafter,
the ranges of average daily attendance specified in subdivisions (a)
to (d), inclusive, shall be reduced by the statewide average rate of
excused absence reported for elementary school districts for the
1996-97 fiscal year pursuant to Section 42238.7, with the resultant
figures and ranges rounded to the nearest integer.
  SEC. 22.  Section 42282.1 of the Education Code is amended to read:

   42282.1.  (a) Notwithstanding Section 42282, or any other
provision of law, each necessary small school in the Death Valley
Unified School District shall qualify for the apportionment specified
in subdivision (b) of Section 42282 if that school has an average
daily attendance of 21 or more and less than 51, exclusive of pupils
attending the 7th and 8th grades of a junior high school, and for
which school at least two teachers were hired full-time for more than
one-half of the days schools were maintained.
   (b) It is the intent of the Legislature not to provide a special
allowance to the Death Valley Unified School District for one of its
schools by future legislation if the average daily attendance at the
school is 18 or less.
  SEC. 23.  Section 42285 of the Education Code is amended to read:
   42285.  (a) A necessary small high school for the purposes of
Section 42284, is a high school with an average daily attendance of
less than 301, excluding continuation schools, which comes within any
of the following conditions (except that a single high school
maintained by a unified district, or a high school maintained by any
district for the exclusive purpose of educating juvenile hall pupils
or pupils with exceptional needs, shall be considered a necessary
small high school):
   (1) The projection of its future enrollment on the basis of the
enrollment of the elementary schools in the district shows that
within eight years the enrollment in high school in grades 9 to 12,
inclusive, will exceed 300 pupils.
   (2) Any one of the following combinations of distance and units of
average daily attendance applies:
   (A) The high school had an average daily attendance of less than
100 in grades 9 to 12, inclusive, during the preceding fiscal year
and is more than 15 miles by well-traveled road from the nearest
other public high school and either 90 percent of the pupils would be
required to travel 20 miles or 25 percent of the pupils would be
required to travel 30 miles one way from a point on a well-traveled
road nearest their homes to the nearest other public high school.
   (B) The high school had an average daily attendance of 100 or more
and less than 150 in grades 9 to 12, inclusive, during the preceding
fiscal year and is more than 10 miles by well-traveled road from the
nearest other public high school and either 90 percent of the pupils
would be required to travel 18 miles or 25 percent of the pupils
would be required to travel 25 miles one way from a point on a
well-traveled road nearest their homes to the nearest other public
high school.
   (C) The high school had an average daily attendance of 150 or more
and less than 200 in grades 9 to 12, inclusive, during the preceding
fiscal year and is more than 71/2 miles by well-traveled road from
the nearest other public high school and either 90 percent of the
pupils would be required to travel 15 miles or 25 percent of the
pupils would be required to travel 20 miles one way from a point on a
well-traveled road nearest their homes to the nearest other public
high school.
   (D) The high school had an average daily attendance of 200 or more
and less than 301 in grades 9 to 12, inclusive, during the preceding
fiscal year and is more than five miles by well-traveled road from
the nearest other public high school and either 90 percent of the
pupils would be required to travel 10 miles or 25 percent of the
pupils would be required to travel 15 miles to the nearest other
public high school.
   (3) Topographical or other conditions exist in the district which
would impose unusual hardships on the pupils if the number of miles
specified above were required to be traveled. In these cases, the
Superintendent may, when requested, and after investigation, grant
exceptions from the distance requirements.
   (4) The Superintendent has approved the recommendation of a county
committee on school district organization designating one of two or
more schools as necessary isolated schools in a situation where the
schools are operated by two or more districts and the average daily
attendance of each of the schools is less than 301 in grades 9 to 12,
inclusive.
   (b) For the 1998-99 fiscal year and each fiscal year thereafter,
the high school and junior high school average daily attendance
figures specified in subdivision (a) and the ranges of average daily
attendance specified in paragraph (2) of subdivision (a) shall be
reduced by the statewide average rate of excused absence reported for
high school districts for the 1996-97 fiscal year pursuant to
Section 42238.7, with the resultant figures and ranges rounded to the
nearest integer.
  SEC. 23.5.  Section 42285.2 of the Education Code is amended to
read:
   42285.2.  (a) Notwithstanding any other provision of law, the
Coachella Valley Unified School District is eligible to receive
apportionments for the Sea View Elementary School and for the West
Shores High School pursuant to the schedule for necessary small high
schools set forth in Section 42284.
   (b) If the amount of average daily attendance of either school
exceeds 286, that school district shall no longer be entitled to
receive apportionments as set forth in this section.
   (c) Notwithstanding any other provision of law, the Coachella
Valley Unified School District shall remain eligible to receive
apportionments described in subdivision (a) until June 30, 2006,
pursuant to Section 42286, at the end of which time the department
shall review the average daily attendance numbers of each school
described in subdivision (a) to determine whether the Coachella
Valley Unified School District qualifies for continued funding as
described in subdivision (a). If the department determines that
either the Sea View Elementary School or the West Shores High School,
or both, qualifies for continued funding as described in subdivision
(a), the Coachella Valley Unified School District shall remain
eligible to receive apportionments, as described in subdivision (a),
for the school that remains entitled to receive apportionments, or
for both schools if both remain entitled to receive apportionments.
Funding for one school, or for both schools, if applicable, shall
continue in two-year increments, commencing on July 1, 2006, with a
review of attendance numbers and a determination of eligibility for
each school by the department every two years, commencing July 1,
2008.
  SEC. 24.  Section 42285.4 is added to the Education Code, to read:

   42285.4.  Notwithstanding any other provision of law, the River
Delta Unified School District is eligible to receive apportionments
pursuant to the schedule and criteria for small necessary high
schools set forth in Section 42284 if the school district has no more
than 3,000 units of average daily attendance.
  SEC. 25.  Section 44225.6 of the Education Code is amended to read:

   44225.6.  (a) By April 15 of each year, the commission shall
report to the Legislature and the Governor on the availability of
teachers in California. This report shall include the following
information:
   (1) The number of individuals recommended for credentials by
institutions of higher education and the type of credential or
certificate, or both, for which they were recommended, including
certificates issued pursuant to Sections 44253.3 and 44253.4.
   (2) The number of individuals recommended by school districts
operating district internship programs and the type of credential or
certificate, or both, for which they were recommended, including
certificates issued pursuant to Sections 44253.3 and 44253.4.
   (3) The number of individuals receiving an initial credential
based on a program completed outside of California and the type of
credential or certificate, or both, for which they were recommended,
including certificates issued pursuant to Sections 44253.3 and
44253.4.
   (4) The number of individuals receiving an emergency permit,
credential waiver, or other authorization that does not meet the
definition of a highly qualified teacher under the federal No Child
Left Behind Act of 2001 (20 U.S.C.  Sec. 6301 et seq.).
   (5) The number of individuals receiving the certificate of
completion of staff development in methods of specially designed
content instruction delivered in English pursuant to subdivision (d)
of Section 44253.10.
   (6) Statewide, by county, and by school district, the number of
individuals serving in the following capacities and as a percentage
of the total number of individuals serving as teachers statewide, in
the county, and in the school district:
   (A) University internship.
   (B) District internship.
   (C) Preinternship.
   (D) Emergency permit.
   (E) Credential waiver.
   (F) Preliminary or professional clear credential.
   (G) An authorization, other than those listed in this paragraph,
that does not meet the definition of a highly qualified teacher under
the federal No Child Left Behind Act of 2001 (20 U.S.C. Sec. 6301 et
seq.) by category of authorization.
   (H) Certificate issued pursuant to Section 44253.3.
   (I)  Certificates issued pursuant to Section 44253.3, 44253.4, or
44253.10, if available.
   (J) The number of individuals serving English learner pupils in
settings calling for English language development, in settings
calling for specially designed academic instruction in English, or in
primary language instruction, without the appropriate authorization
under Section 44253.3, 44253.4, or 44253.10, or under another
statute, if available. The Commission on Teacher Credentialing may
utilize data from the department's Annual Language Census Survey to
report the data required pursuant to this paragraph.
   (7) The specific subjects and teaching areas in which there are a
sufficient number of new holders of credentials to fill the positions
currently held by individuals with emergency permits.
   (b) The commission shall make this report available to school
districts and county offices of education to assist them in the
recruitment of credentialed teachers and shall make the report and
supporting data publicly available on the commission's Web site.
   (c) A common measure of whether teacher preparation programs are
meeting the challenge of preparing increasing numbers of new teachers
is the number of teaching credentials awarded. The number of
teaching credentials recommended by these programs and awarded by the
commission are indicators of the productivity of teacher preparation
programs. The commission shall include in the report prepared for
the Legislature and Governor pursuant to subdivision (a) the total
number of teaching credentials recommended by all accredited teacher
preparation programs authorized by the commission and the number
recommended by each of the following:
   (1) The University of California system.
   (2) The California State University system.
   (3) Independent colleges and universities that offer teacher
preparation programs approved by the commission.
   (4) Other institutions that offer teacher preparation programs
approved by the commission.
  SEC. 26.  Section 44252.1 of the Education Code is amended to read:

   44252.1.  (a) It is the intent of the Legislature that a
credential candidate enrolled in a credential preparation program
receive reasonable time to complete the program without meeting new
requirements, including, but not limited to, requirements added by
statutes, regulations, or commission standards, after the candidate's
enrollment in the program. Further, to ensure that all candidates
for a credential receive reasonable information and advice as they
proceed through their program, the Legislature finds and declares
that it is incumbent upon credential preparation programs to inform
candidates of new requirements and extension provisions available to
eligible candidates.
   (b) For the purposes of this section, the following terms shall
have the following meanings:
   (1) "Enrolled" refers to an individual who, on or after January 1,
2002, continuously participates in and is working toward completing
the requirements for a program that meets the minimum requirements
for a California preliminary multiple or single subject teaching
credential as specified in Section 44259. Whether an individual is
enrolled shall be subject to verification by the Commission on
Teacher Credentialing.
   (2) "Continuously enrolled" refers to an individual who has begun
a teacher preparation program and does not have a break in that
participation that exceeds a period of 18 months.
   (c) The commission shall adopt regulations to provide a credential
candidate enrolled in a commission-accredited preparation program,
including, but not limited to, an internship program as defined in
Article 7.5 (commencing with Section 44325) and Article 3 (commencing
with Section 44450), a professional preparation program as defined
in Article 7 (commencing with Section 44320), or an integrated
program of professional preparation as defined in Section 44259.1
with a grace period to complete the program without meeting new
requirements, including, but not limited to, requirements added by
statutes, regulations, or commission standards, after the candidate's
enrollment in the program.  The commission shall also ensure through
standards and accreditation procedures that credential preparation
programs provide credential candidates with information about new
requirements and extension provisions as outlined in this subdivision
and subdivisions (d) and (e).
   (1) The commission shall adopt regulations that provide a
credential candidate enrolled in a commission-accredited preparation
program time of not less than 24 months after enrollment in the
program, during which time new or amended statutes, regulations, and
commission standards that become effective and are imposed on
credential candidates after the candidate's enrollment date shall not
apply to that candidate.
   (2) The commission shall allow a credential candidate an extension
of time in addition to the time specified pursuant to paragraph (1)
to complete a credential program under the statutes, regulations, and
commission standards in place at the time of the candidate's
enrollment if the candidate can demonstrate extenuating
circumstances, including, but not limited to, personal or family
illness, bereavement, or financial hardship and develops a plan, in
consultation with the credential preparation program, for continued
progress toward completion of the preparation program.
   (d) The commission shall maintain a list of candidates who are
allowed an extended time period to complete the program under the
statutes, regulations, and commission standards in place at the time
of the candidates' enrollment prior to the effective date of a new or
amended statute, regulation, or standard. This list shall include
the projected date of program completion for each candidate.
   (e) (1) A credential candidate enrolled in an integrated program
of professional preparation pursuant to subdivision (a) of Section
44259.1 is not subject to any new requirements added by statute,
regulation, or commission standards if that candidate is continuously
enrolled in the program, as defined in paragraph (2) of subdivision
(b), and does not change the type of credential or program he or she
is pursuing once enrolled.
   (2) A credential candidate continuously enrolled in an integrated
program of professional preparation pursuant to subdivision (a) of
Section 44259.1 who has completed all requirements necessary to begin
the student teaching component of his or her program shall be
eligible to receive an extension of 12 months, if necessary, to
complete the outstanding requirements that were in place when that
credential candidate began the preparation program, and shall not be
subject to any new requirements added by statute, regulation, or
commission standards, once that candidate begins the student teaching
portion of his or her program.
   (3) This subdivision does not limit the ability of a candidate to
seek additional time to complete a credential pursuant to paragraph
(2) of subdivision (c).
   (4) By June 30, 2004, the commission shall report to the education
policy committees in each house of the Legislature on the success of
the integrated program of professional development pursuant to
Section 44259.1 toward preparing teacher candidates, including, but
not limited to, the number of students admitted to the teacher
education component in each program, the number of students who have
completed all course requirements, including student teaching, and
who have applied for a credential, the number of students applying
for and receiving an extension pursuant to subdivision (e), and the
information collected pursuant to subdivision (d).
   (f) This section does not supersede subdivision (h) of Section
44259.
   (g) A modification of a credentialing examination by the
commission that is made as the result of a validity study or a
passing standard study shall not be considered a new requirement for
purposes of this section.
   (h) If credential preparation coursework that a credential
candidate has not yet taken is modified, the candidate shall take the
modified coursework instead of the previously required coursework
unless the modified coursework is not readily available, the modified
coursework would result in an increased cost to the candidate, or
completion of the modified coursework would delay the candidate's
completion of the credential preparation program.
   (i) Once a candidate has received a preliminary California
teaching credential pursuant to Section 44259 and is employed as the
teacher of record in a California public school, the candidate shall
not be subject to any new requirements for completing the induction
phase required to obtain the professional clear teaching credential
pursuant to Section 44279.4, for a period not to exceed the length of
time provided for the preliminary teaching credential pursuant to
Section 44251.
  SEC. 26.5.  Section 44258.9 of the Education Code is amended to
read:
   44258.9.  (a) The Legislature finds that continued monitoring of
teacher assignments by county superintendents of schools will ensure
that the rate of teacher misassignment remains low. To the extent
possible and with funds provided for that purpose, each county
superintendent of schools shall perform the duties specified in
subdivisions (b) and (c).
   (b) (1) Each county superintendent of schools shall monitor and
review school district certificated employee assignment practices in
accordance with the following:
   (A) Annually monitor and review schools and school districts that
are likely to have problems with teacher misassignments and teacher
vacancies, as defined in subparagraphs (A) and (B) of paragraph (5)
of subdivision (b) of Section 33126, based on past experience or
other available information.
   (B) Annually monitor and review schools ranked in deciles 1 to 3,
inclusive, of the 2003 base Academic Performance Index, as defined in
subdivision (b) of Section 17592.70, if those schools are not
currently under review through a state or federal intervention
program. If a review completed pursuant to this subparagraph finds
that a school has no teacher misassignments or teacher vacancies for
two consecutive years, the next review of that school may be
conducted according to the cycle specified in subparagraph (C),
unless the school meets the criteria of subparagraph (A).
   (C) All other schools on a four-year cycle.
   (2) Each county superintendent of schools shall investigate school
and district efforts to ensure that any credentialed teacher serving
in an assignment requiring a certificate issued pursuant to Section
44253.3, 44253.4, or 44253.7 or training pursuant to Section 44253.10
completes the necessary requirements for these certificates or
completes the required training.
   (3) The Commission on Teacher Credentialing shall be responsible
for the monitoring and review of those counties or cities and
counties in which there is a single school district, including the
Counties of Alpine, Amador, Del Norte, Mariposa, Plumas, and Sierra,
and the City and County of San Francisco. All information related to
the misassignment of certificated personnel and teacher vacancies
shall be submitted to each affected district within 30 calendar days
of the monitoring activity.
   (c) County superintendents of schools shall submit an annual
report to the Commission on Teacher Credentialing and the department
summarizing the results of all assignment monitoring and reviews.
These reports shall include, but need not be limited to, the
following:
   (1) The numbers of teachers assigned and types of assignments made
by the governing board of a school district under the authority of
Sections 44256, 44258.2, and 44263.
   (2) Information on actions taken by local committees on
assignment, including the number of assignments authorized, subject
areas into which committee-authorized teachers are assigned, and
evidence of any departures from the implementation plans presented to
the county superintendent by school districts.
   (3) Information on each school district reviewed regarding
misassignments of certificated personnel, including efforts to
eliminate these misassignments.
   (4) (A) Information on certificated employee assignment practices
in schools ranked in deciles 1 to 3, inclusive, of the 2003 base
Academic Performance Index, as defined in subdivision (b) of Section
17592.70, to ensure that, at a minimum, in any class in these schools
in which 20 percent or more pupils are English learners the assigned
teacher possesses a certificate issued pursuant to Section 44253.3
or 44253.4 or has completed training pursuant to Section 44253.10 or
is otherwise authorized by statute.
   (B) This paragraph shall not relieve a school district from
compliance with state and federal law regarding teachers of English
learners or be construed to alter the definition of "misassignment"
in subparagraph (B) of paragraph (5) of subdivision (b) of Section
33126.
   (5) After consultation with representatives of county
superintendents of schools, other information as may be determined to
be needed by the Commission on Teacher Credentialing.
                  (d) The Commission on Teacher Credentialing shall
submit biennial reports to the Legislature concerning teacher
assignments and misassignments which shall be based, in part, on the
annual reports of the county superintendents of schools.
   (e) (1) The Commission on Teacher Credentialing shall establish
reasonable sanctions for the misassignment of credentialholders.
   Prior to the implementation of regulations establishing sanctions,
the Commission on Teacher Credentialing shall engage in a variety of
activities designed to inform school administrators, teachers, and
personnel within the offices of county superintendents of schools of
the regulations and statutes affecting the assignment of certificated
personnel. These activities shall include the preparation of
instructive brochures and the holding of regional workshops.
   (2) Commencing July 1, 1989, any certificated person who is
required by an administrative superior to accept an assignment for
which he or she has no legal authorization shall, after exhausting
any existing local remedies, notify the county superintendent of
schools in writing of the illegal assignment. The county
superintendent of schools shall, within 15 working days, advise the
affected certificated person concerning the legality of his or her
assignment. There shall be no adverse action taken against a
certificated person who files a notification of misassignment with
the county superintendent of schools. During the period of the
misassignment, the certificated person who files a written
notification with the county superintendent of schools shall be
exempt from the provisions of Section 45034. If it is determined that
a misassignment has taken place, any performance evaluation of the
employee under Sections 44660 to 44664, inclusive, in any misassigned
subject shall be nullified.
   (3) The county superintendent of schools shall notify, through the
office of the school district superintendent, any certificated
school administrator responsible for the assignment of a certificated
person to a position for which he or she has no legal authorization
of the misassignment and shall advise him or her to correct the
assignment within 30 calendar days. The county superintendent of
schools shall notify the Commission on Teacher Credentialing of the
misassignment if the certificated school administrator has not
corrected the misassignment within 30 days of the initial
notification, or if the certificated school administrator has not
described, in writing, within the 30-day period, to the county
superintendent of schools the extraordinary circumstances which make
this correction impossible.
   (4) The county superintendent of schools shall notify any
superintendent of a school district in which 5 percent or more of all
certificated teachers in the secondary schools are found to be
misassigned of the misassignments and shall advise him or her to
correct the misassignments within 120 calendar days. The county
superintendent of schools shall notify the Commission on Teacher
Credentialing of the misassignments if the school district
superintendent has not corrected the misassignments within 120 days
of the initial notification, or if the school district superintendent
of schools has not described, in writing, within the 120-day period,
to the county superintendent of schools the extraordinary
circumstances which make this correction impossible.
   (f) An applicant for a professional administrative service
credential shall be required to demonstrate knowledge of existing
credentialing laws, including knowledge of assignment authorizations.

   (g) The Superintendent shall submit a summary of the reports
submitted by county superintendents pursuant to subdivision (c) to
the Legislature. The Legislature may hold, within a reasonable period
after receipt of the summary, public hearings on pupil access to
teachers and to related statutory provisions. The Legislature may
also assign one or more of the standing committees or a joint
committee, to determine the following:
   (1) The effectiveness of the reviews required pursuant to this
section.
   (2) The extent, if any, of vacancies and misassignments, as
defined in subparagraphs (A) and (B) of paragraph (5) of subdivision
(b) of Section 33126.
   (3) The need, if any, to assist schools ranked in deciles 1 to 3,
inclusive, of the 2003 base Academic Performance Index, as defined in
subdivision (b) of Section 17592.70, to eliminate vacancies and
misassignments.
  SEC. 27.  Section 44265.6 is added to the Education Code, to read:

   44265.6.  (a) Upon the request of an employing school district,
county office of education or state special school, the Commission on
Teacher Credentialing shall determine specific requirements for and
issue a one-year specialist instruction emergency permit, solely for
the purpose of instructing deaf or hearing-impaired pupils, to any
prelingually deaf candidate upon medical or other appropriate
professional verifications.
   (b) The applicant is exempted from the requirements in Section
44252 and subdivision (b) of Section 44830.
   (c) "Prelingually deaf" means, for purposes of this section, as
having suffered a hearing loss prior to three years of age that
prevents the processing of linguistic information through hearing,
with or without amplification.
   (d) The emergency specialist instruction permit issued under this
section authorizes the holder to teach deaf and hearing-impaired
pupils who are enrolled in state special schools or in special
classes for pupils with hearing impairments.
   (e) A one-year specialist instruction emergency permit issued
pursuant to subdivision (a) may be reissued at the request of the
employing school district, county office of education or state
special school in accordance with criteria determined by the
Commission on Teacher Credentialing.
  SEC. 28.  Section 44664 of the Education Code is amended to read:
   44664.  (a) Evaluation and assessment of the performance of each
certificated employee shall be made on a continuing basis as follows:

   (1) At least once each school year for probationary personnel.
   (2) At least every other year for personnel with permanent status.

   (3) At least every five years for personnel with permanent status
who have been employed at least 10 years with the school district,
are highly qualified, if those personnel occupy positions that are
required to be filled by a highly qualified professional by the
federal No Child Left Behind Act of 2001 (20 U.S.C. Sec. 6301, et
seq.), as defined in 20 U.S.C. Sec. 7801, and whose previous
evaluation rated the employee as meeting or exceeding standards, if
the evaluator and certificated employee being evaluated agree. The
certificated employee or the evaluator may withdraw consent at any
time.
   (b) The evaluation shall include recommendations, if necessary, as
to areas of improvement in the performance of the employee. If an
employee is not performing his or her duties in a satisfactory manner
according to the standards prescribed by the governing board, the
employing authority shall notify the employee in writing of that fact
and describe the unsatisfactory performance. The employing authority
shall thereafter confer with the employee making specific
recommendations as to areas of improvement in the employee's
performance and endeavor to assist the employee in his or her
performance. If any permanent certificated employee has received an
unsatisfactory evaluation, the employing authority shall annually
evaluate the employee until the employee achieves a positive
evaluation or is separated from the district.
   (c) Any evaluation performed pursuant to this article which
contains an unsatisfactory rating of an employee's performance in the
area of teaching methods or instruction may include the requirement
that the certificated employee shall, as determined necessary by the
employing authority, participate in a program designed to improve
appropriate areas of the employee's performance and to further pupil
achievement and the instructional objectives of the employing
authority. If a district participates in the Peer Assistance and
Review Program for Teachers established pursuant to Article 4.5
(commencing with Section 44500), any certificated employee who
receives an unsatisfactory rating on an evaluation performed pursuant
to this section shall participate in the Peer Assistance and Review
Program for Teachers.
   (d) Hourly and temporary hourly certificated employees, other than
those employed in adult education classes who are excluded by the
provisions of Section 44660, and substitute teachers may be excluded
from the provisions of this section at the discretion of the
governing board.
  SEC. 29.  Section 45037 of the Education Code is amended to read:
   45037.  (a) Except as provided in Section 45036, for the fiscal
year 2001-02 and for any fiscal year thereafter in which a person
renders service as a teacher in kindergarten or any of grades 1 to
12, inclusive, who does not have a valid certification document, the
school district or county office of education in which the person is
employed shall be assessed a penalty that shall be in lieu of any
loss of funding that would otherwise result under Chapter 6.10
(commencing with Section 52120) of Part 28. The penalty shall be
calculated as provided in subdivision (b) and withheld from state
funding otherwise due to the district or county office of education.

   (1) Notwithstanding Section 46300, the attendance of the
noncertificated person's pupils during the period of service shall be
included in the computation of average daily attendance.
   (2) The noncertificated person's period of service shall not be
excluded from the determination of eligibility for incentive funding
for a longer instructional day or year, or both, pursuant to Article
8 (commencing with Section 46200) of Chapter 2 of Part 26.
   (b) (1) For each person who rendered service in the employment of
the district or county office of education as a teacher in
kindergarten or any of grades 1 to 12, inclusive, during the fiscal
year, add the total number of schooldays on which the person rendered
any amount of the service.
   (2) For each person who rendered service in the employment of the
district or county office of education as a teacher in kindergarten
or any of grades 1 to 12, inclusive, during the fiscal year, for a
period of service during which the person did not have a valid
certification document, add the number of schooldays on which the
person rendered any amount of the service without a valid
certification document.
   (3) Divide the number determined in paragraph (2) by the number
determined in paragraph (1) and carry the result to four decimal
places.
   (4) Multiply a school district's revenue limit entitlement for the
fiscal year, calculated pursuant to Section 42238, or it's funding
amount calculated pursuant to Article 4 (commencing with Section
42280) of Chapter 7 of Part 24, as applicable, or a county office of
education's funding for the fiscal year, for the program in which the
noncertificated person rendered service by the number determined in
paragraph (3).
   (c) Beginning in 2002-03, if a county office of education releases
a warrant in favor of a person for whom a period of school district
service is included in the calculation set forth in paragraph (2) of
subdivision (b), and the warrant is either compensation for
employment as a teacher or for employment in some other capacity if
the county office of education has direct knowledge or is in
possession of information giving rise to a reasonable inference that
the person is rendering service as a teacher, the county office shall
be assessed a penalty. The penalty assessed to a county office for
any fiscal year in which one or more district teachers did not have a
valid certification document shall be equal to the lesser of three
amounts as follows:
   (1) Fifty percent of all penalties assessed for that fiscal year
to all school districts in the county office's jurisdiction pursuant
to subdivision (b).
   (2) One-half percent of the total expenditures for that fiscal
year from unrestricted resources, as defined in the California School
Accounting Manual, in the county office's county school service
fund, when two or fewer districts in the county office's jurisdiction
are subject to penalties pursuant to subdivision (b).
   (3) One percent of the total expenditures for that fiscal year
from unrestricted resources, as defined in the California School
Accounting Manual, in the county office's county school service fund,
when three or more districts in the county office's jurisdiction are
subject to penalties pursuant to subdivision (b).
   (d) Except as provided in Section 41344.1, nothing in this section
may be waived in whole or in part.
  SEC. 30.  Section 48213 of the Education Code is repealed.
  SEC. 31.  Section 48213 is added to the Education Code, to read:
   48213.  If a pupil is excluded from attendance pursuant to Section
120230 of the Health and Safety Code or Section 49451 of this code,
or if a principal or his or her designee determines that the
continued presence of the child would constitute a clear and present
danger to the life, safety, or health of a pupil or school personnel,
the governing board is not required to send prior notice of the
exclusion to the parent or guardian of the pupil. The governing board
shall send a notice of the exclusion as soon as is reasonably
possible after the exclusion.
  SEC. 32.  Section 48660.2 of the Education Code is amended to read:

   48660.2.  (a) Notwithstanding any other provision of law, and as a
condition of receiving apportionments under this article, school
districts operating one or more community day schools shall annually
report to the Superintendent, on forms approved by the State Board of
Education, the direct instructional costs and documented support
costs of their community day schools, using definitions included in
the California School Accounting Manual, Part I, as it read on July
1, 1997, except that districts may include in these reports the costs
of rents and leases for facilities used by community day schools and
maintenance and operations costs for facilities used by community
day schools. Each school district that has received approval from the
department to use the standardized account code structure may
satisfy the requirement set forth in this subdivision by reporting
the direct costs of the community day school program, and shall
maintain documentation of all noninstructional costs charged to the
community day school program.
   (b) The Superintendent shall do each of the following:
   (1) Multiply the total of all funds received by each school
district on behalf of pupils while enrolled in community day schools
by 0.9.
   (2) Subtract the total of each school district's costs for
community day schools, as determined pursuant to subdivision (a),
from the amount determined pursuant to paragraph (1).
   (3) If the amount determined pursuant to paragraph (2) for a
school district is positive, the Superintendent shall subtract that
amount from the school district's next apportionment.
   (c) (1) For purposes of making the computation required by
paragraph (1) of subdivision (b) for the 2004-05 fiscal year, the
"total of all funds received" means the total of all funds received
in the 2002-03 to 2004-05 fiscal years, inclusive.
   (2) For purposes of making the computation required by paragraph
(2) of subdivision (b) for the 2004-05 fiscal year, the "school
district's costs" means the school district's costs incurred in the
2002-03 to 2004-05 fiscal years, inclusive.
  SEC. 33.  Section 48900.8 of the Education Code is amended to read:

   48900.8.  For purposes of notification to parents, and for the
reporting of expulsion or suspension offenses to the department, each
school district shall specifically identify, by offense committed,
in all appropriate official records of a pupil each suspension or
expulsion of that pupil for the commission of any of the offenses set
forth in Section 48900, 48900.2, 48900.3, 48900.4, 48900.7, or
48915.
  SEC. 34.  Section 48980 of the Education Code is amended to read:
   48980.  (a) At the beginning of the first semester or quarter of
the regular school term, the governing board of each school district
shall notify the parent or guardian of a minor pupil regarding the
right or responsibility of the parent or guardian under Sections
35291, 46014, 48205, 48207, 48208, 49403, 49423, 49451, 49472, and
51938 and Chapter 2.3 (commencing with Section 32255) of Part 19.
   (b) The notification also shall advise the parent or guardian of
the availability of individualized instruction as prescribed by
Section 48206.3, and of the program prescribed by Article 9
(commencing with Section 49510) of Chapter 9.
   (c) The notification shall also advise the parents and guardians
of all pupils attending a school within the district of the schedule
of minimum days and pupil-free staff development days, and if any
minimum or pupil-free staff development days are scheduled
thereafter, the governing board shall notify parents and guardians of
the affected pupils as early as possible, but not later than one
month before the scheduled minimum or pupil-free day.
   (d) The notification also may advise the parent or guardian of the
importance of investing for future college or university education
for their children and of considering appropriate investment options
including, but not limited to, United States Savings Bonds.
   (e) Commencing with the 2000-01 school year, and each school year
thereafter, the notification shall advise the parent or guardian of
the pupil that, commencing with the 2003-04 school year, and each
school year thereafter, each pupil completing 12th grade will be
required to successfully pass the high school exit examination
administered pursuant to Chapter 8 (commencing with Section 60850) of
Part 33. The notification shall include, at a minimum, the date of
the examination, the requirements for passing the examination, and
shall inform the parents and guardians regarding the consequences of
not passing the examination and shall inform parents and guardians
that passing the examination is a condition of graduation.
   (f) Each school district that elects to provide a fingerprinting
program pursuant to Article 10 (commencing with Section 32390) shall
inform parents or guardians of the program as specified in Section
32390.
   (g) The notification shall also include a copy of the district's
written policy on sexual harassment established pursuant to Section
212.6, as it relates to pupils.
   (h) The notification shall advise the parent or guardian of all
existing statutory attendance options and local attendance options
available in the school district. That notification shall include all
options for meeting residency requirements for school attendance,
programmatic options offered within the local attendance areas, and
any special programmatic options available on both an interdistrict
and intradistrict basis. That notification shall also include a
description of all options, a description of the procedure for
application for alternative attendance areas or programs, an
application form from the district for requesting a change of
attendance, and a description of the appeals process available, if
any, for a parent or guardian denied a change of attendance. The
notification shall also include an explanation of the existing
statutory attendance options including, but not limited to, those
available under Section 35160.5, Chapter 5 (commencing with Section
46600) of Part 26, subdivision (f) of Section 48204, and Article 1.5
(commencing with Section 48209) of Chapter 2 of Part 27. The
department shall produce this portion of the notification and shall
distribute it to all school districts.
   (i) It is the intent of the Legislature that the governing board
of each school district annually review the enrollment options
available to the pupils within their districts and that the school
districts strive to make available enrollment options that meet the
diverse needs, potential, and interests of California's pupils.
   (j) The notification shall advise the parent or guardian that no
pupil may have his or her grade reduced or lose academic credit for
any absence or absences excused pursuant to Section 48205 if missed
assignments and tests that can reasonably be provided are
satisfactorily completed within a reasonable period of time, and
shall include the full text of Section 48205.
   (k) The notification shall advise the parent or guardian of the
availability of state funds to cover the costs of advanced placement
examination fees pursuant to Section 52244.
  SEC. 35.  Section 49423 of the Education Code is amended to read:
   49423.  (a) Notwithstanding Section 49422, any pupil who is
required to take, during the regular schoolday, medication prescribed
for him or her by a physician or surgeon, may be assisted by the
school nurse or other designated school personnel or may carry and
self-administer prescription auto-injectable epinephrine if the
school district receives the appropriate written statements
identified in subdivision (b).
   (b) (1) In order for a pupil to be assisted by a school nurse or
other designated school personnel pursuant to subdivision (a), the
school district shall obtain both a written statement from the
physician detailing the name of the medication, method, amount, and
time schedules by which the medication is to be taken and a written
statement from the parent, foster parent, or guardian of the pupil
indicating the desire that the school district assist the pupil in
the matters set forth in the statement of the physician.
   (2) In order for a pupil to carry and self-administer prescription
auto-injectable epinephrine pursuant to subdivision (a), the school
district shall obtain both a written statement from the physician or
surgeon detailing the name of the medication, method, amount, and
time schedules by which the medication is to be taken, and confirming
that the pupil is able to self-administer auto-injectable
epinephrine, and a written statement from the parent, foster parent,
or guardian of the pupil consenting to the self-administration,
providing a release for the school nurse or other designated school
personnel to consult with the health care provider of the pupil
regarding any questions that may arise with regard to the medication,
and releasing the school district and school personnel from civil
liability if the self-administering pupil suffers an adverse reaction
as a result of self-administering medication pursuant to this
paragraph.
   (3) The written statements specified in this subdivision shall be
provided at least annually and more frequently if the medication,
dosage, frequency of administration, or reason for administration
changes.
   (c) A pupil may be subject to disciplinary action pursuant to
Section 48900 if that pupil uses auto-injectable epinephrine in a
manner other than as prescribed.
  SEC. 36.  Section 49423.1 of the Education Code is amended to read:

   49423.1.  (a) Notwithstanding Section 49422, any pupil who is
required to take, during the regular schoolday, medication prescribed
for him or her by a physician or surgeon, may be assisted by the
school nurse or other designated school personnel or may carry and
self-administer inhaled asthma medication if the school district
receives the appropriate written statements specified in subdivision
(b).
   (b) (1) In order for a pupil to be assisted by a school nurse or
other designated school personnel pursuant to subdivision (a), the
school district shall obtain both a written statement from the
physician or surgeon detailing the name of the medication, method,
amount, and time schedules by which the medication is to be taken and
a written statement from the parent, foster parent, or guardian of
the pupil requesting that the school district assist the pupil in the
matters set forth in the statement of the physician or surgeon.
   (2) In order for a pupil to carry and self-administer prescription
inhaled asthma medication pursuant to subdivision (a), the school
district shall obtain both a written statement from the physician or
surgeon detailing the name of the medication, method, amount, and
time schedules by which the medication is to be taken, and confirming
that the pupil is able to self-administer inhaled asthma medication,
and a written statement from the parent, foster parent, or guardian
of the pupil consenting to the self-administration, providing a
release for the school nurse or other designated school personnel to
consult with the health care provider of the pupil regarding any
questions that may arise with regard to the medication, and releasing
the school district and school personnel from civil liability if the
self-administering pupil suffers an adverse reaction by taking
medication pursuant to this section.
   (3) The written statements specified in this subdivision shall be
provided at least annually and more frequently if the medication,
dosage, frequency of administration, or reason for administration
changes.
   (c) A pupil may be subject to disciplinary action pursuant to
Section 48900 if that pupil uses inhaled asthma medication in a
manner other than as prescribed.
  SEC. 37.  Section 51226.1 of the Education Code is amended to read:

   51226.1.  (a) Upon adoption of the model curriculum standards
developed pursuant to Section 51226, the Superintendent shall develop
a curriculum framework consistent with criteria set forth in
subdivision (a) of Section 60005 that offers a blueprint for
implementation of career and technical education. The framework shall
be adopted no later than November 1, 2006.
   (b) In developing the framework, the Superintendent shall work in
consultation and coordination with an advisory group, including, but
not limited to, representatives from all of the following:
   (1) Business and industry.
   (2) Labor.
   (3) The California Community Colleges.
   (4) The University of California.
   (5) The California State University.
   (6) Classroom teachers.
   (7) School administrators.
   (8) Pupils.
   (9) Parents and guardians.
   (10) Representatives of the Legislature.
   (11) The department.
   (12) The Labor and Workforce Development Agency.
   (c) In convening the membership of the advisory group set forth in
subdivision (b), the Superintendent is encouraged to seek
representation broadly reflective of the state population.
                                                            (d) Costs
incurred by the superintendent in complying with this section shall
be covered, to the extent permitted by federal law, by the state
administrative and leadership funds available pursuant to the Carl D.
Perkins Vocational and Technical Education Act of 1998 (20 U.S.C.
Sec. 2301 et seq.).
   (e) In developing the framework, the Superintendent shall consider
developing frameworks for various career pathways that will prepare
pupils for both career entry and matriculation into postsecondary
education.
   (f) Upon completion of the framework, the advisory group is
encouraged to identify career technical education courses that meet
state-adopted academic content standards and that satisfy high school
graduation requirements and admissions requirements of the
University of California and the California State University, and to
determine the extent to which local educational agencies accept
credit earned for the completion of those courses, in lieu of other
courses of study.
   (g) The adoption of the framework developed and adopted pursuant
to this section by a local educational agency shall be voluntary.
  SEC. 38.  Section 52247 of the Education Code is repealed.
  SEC. 39.  Section 52515 of the Education Code is amended to read:
   52515.  State funds shall not be apportioned to a school district
based on the attendance of students enrolled in adult schools, unless
the courses have been approved by the department pursuant to Section
41976.
  SEC. 40.  Section 52520 of the Education Code is amended to read:
   52520.  (a) Every vocational or occupational training program for
adults offered by any high school district or unified school district
shall be reviewed every two years by the governing board to assure
that each program does all of the following:
   (1) Meets a documented labor market demand.
   (2) Does not represent unnecessary duplication of other manpower
training programs in the area.
   (3) Is of demonstrated effectiveness as measured by the employment
and completion success of its students.
   (b) Any program that does not meet the requirements of subdivision
(a) and the standards promulgated by the governing board shall be
terminated within one year.
   (c) The review process required by this section shall include the
review and comments by the local workforce Investment board
established pursuant to the Workforce Investment Act of 1998 (29
U.S.C. Sec. 2801 et seq.), and pursuant to (Division 8 (commencing
with Section 15000) of the Unemployment Insurance Code), which review
and comments shall occur prior to any decision by the appropriate
governing body.
  SEC. 41.  Section 52570 of the Education Code is amended to read:
   52570.  The governing board of any school district maintaining
secondary schools or the county superintendent of schools, shall have
the power, with the approval of the Department of Education, to
establish special classes for adults designed to serve the
educational needs of adults with disabilities. These classes shall be
directed to providing instruction in civic, vocational, literary,
homemaking, technical, and general education and shall conform to
standards of attendance, curriculum, and administration established
by the department. Attendance of adults with disabilities in such
classes established by the county superintendent of schools shall be
included for purposes of apportionments to the county school service
fund.
  SEC. 42.  Section 52571 of the Education Code is amended to read:
   52571.  Special classes for adults with disabilities may be
conducted under the direction of the governing board of the school
district in workshop and training facilities provided by nonprofit
organizations, or in public school facilities. These facilities may
include those where part-time paid work education and training is
conducted and where less than the state minimum wage is paid.
  SEC. 43.  Section 52572 of the Education Code is amended to read:
   52572.  The governing board of any school district or the county
superintendent of schools authorized by this article to establish
special classes for adults designed to serve the educational needs of
adults with disabilities may contract for the providing of those
classes by any adjacent high school district or unified school
district, subject to the approval of the Superintendent. For purposes
of apportionments, the average daily attendance in classes conducted
pursuant to the contract shall accrue to and be reported by the
district in which the student resides. Any contract entered into
pursuant to this section shall be for a term of not to exceed one
year but may be renewed or revised and renewed annually.
  SEC. 44.  Section 54749 of the Education Code is amended to read:
   54749.  (a) For the 2000-01 fiscal year and each fiscal year
thereafter, a school district or county superintendent of schools
participating in Cal-SAFE is eligible for state funding from funds
appropriated for services provided for the purposes of the program as
follows:
   (1) A support services allowance of two thousand two hundred
thirty-seven dollars ($2,237) for each unit of average daily
attendance generated by each pupil who has completed the intake
process pursuant to subdivision (a) of Section 54746 and is receiving
services pursuant to subdivision (b) of Section 54746. This
allowance shall be adjusted annually by the inflation factor set
forth in subdivision (b) of Section 42238.1. In no event shall more
than one support service allowance be generated by any pupil
concurrently enrolled in more than one educational program.
   (A) A support services allowance may not be claimed for units of
average daily attendance reported pursuant to the following:
   (i) Subdivision (b) of Section 1982 for pupils attending county
community schools operated pursuant to Chapter 6.5 of Part 2
(commencing with Section 1980).
   (ii) Pupils attending juvenile court schools operated pursuant to
Article 2.5 (commencing with Section 48645) of Chapter 4 of Part 27.

   (iii) Pupils attending community day schools operated pursuant to
Article 3 (commencing with Section 48660) of Chapter 4 of Part 27.
   (iv) Pupils attending a county operated Cal-SAFE program pursuant
to this article whose attendance is reported pursuant to Section
2551.3.
   (B) A support services allowance may not be used to supplant
average daily attendance and revenue limit funding provided pursuant
to paragraph (2) for the support of educational programs that
Cal-SAFE program pupils attend.
   (2) Average daily attendance and revenue limit funding for pupils
receiving services in the Cal-SAFE program shall be computed pursuant
to provisions and regulations applicable to the educational program
or programs that each pupil attends, except as provided in paragraph
(3).
   (3) For attendance not claimed pursuant to paragraph (2), a county
office of education may claim the statewide average revenue limit
per unit of average daily attendance for high school districts,
payable from Section A of the State School Fund, for the attendance
of pupils receiving services in the Cal-SAFE program, provided that
no other revenue limit funding is claimed for the same pupil and
pupil attendance of no less than 240 minutes per day and is computed
and maintained pursuant to Section 46300.
   (4) Except as provided in subdivision (c) of Section 54749.5,
operators of Cal-SAFE programs shall be reimbursed in accordance with
the amount specified in subdivision (b) of Section 8265 and the
amounts specified in subdivisions (a) and (b) of Section 8265.5 for
each child receiving services pursuant to the Cal-SAFE program who is
the child of teen parents enrolled in the Cal-SAFE program. To be
eligible for funding pursuant to this paragraph, the operational days
of child care and development programs are only those necessary to
provide child care services to children of pupils participating in
Cal-SAFE.
   (5) Notwithstanding paragraph (1), pupils for whom attendance is
reported pursuant to subdivision (b) of Section 1982, pupils
attending juvenile court schools, and pupils attending community day
schools may complete the intake process for the Cal-SAFE program and,
if the intake process is completed, shall receive services pursuant
to subdivision (b) of Section 54746. The children of pupils receiving
services in the Cal-SAFE program pursuant to subdivision (b) of
Section 54746 and attending juvenile court schools, county community
schools, or community day schools are eligible for funding pursuant
to paragraph (4) and no other provisions of this section.
   (b) Funds allocated pursuant to paragraph (1) of subdivision (a)
shall be accounted for separately and shall be expended only to
provide the supportive services enumerated in subdivision (b) of
Section 54746, to provide in-service training as specified in
subdivision (d) of Section 54746, and for the expenditures enumerated
in subdivision (d) of this section.
   (c) Funds allocated pursuant to paragraph (4) of subdivision (a)
shall be accounted for separately and shall be expended only to
provide developmentally appropriate child care and development
services pursuant to subdivision (c) of Section 54746 and staff
development of child development program staff pursuant to
subdivision (d) of Section 54746 for children of teen parents
enrolled in the Cal-SAFE program for the purpose of promoting the
children's development comparable to age norms, access to health and
preventive services, and enhanced school readiness.
   (d) Funds generated pursuant to Section 2551.3, subdivision (b) of
Section 54749.5, and this section shall be accounted for separately
and shall be expended only to provide the services enumerated in
Section 54746 and the following expenditures as defined by the
California State School Accounting Manual:
   (1) Expenditures defined as direct costs of instructional
programs.
   (2) Expenditures defined as documented direct support costs.
   (3) Expenditures defined as allocated direct support costs.
   (4) Expenditures for indirect charges.
   (5) Expenditures defined as facility costs, including the costs of
renting, leasing, lease-purchase, remodeling, or improving
buildings.
   (e) Indirect costs may not exceed the lesser of the approved
indirect cost rate or 10 percent.
   (f) Expenditures that represent contract payments to
community-based organizations and other governmental agencies
pursuant to paragraph (10) of subdivision (b) of Section 54745 for
the operation of a Cal-SAFE program shall be included in the Cal-SAFE
program account.
   (g) To the extent permitted by federal law, any funding made
available to a school district or county superintendent of schools is
subject to all of the following conditions:
   (1) The program is open to all eligible pupils without regard to
any pupil's religious beliefs or any other factor related to
religion.
   (2) No religious instruction is included in the program.
   (3) The space where the program is operated is not used in any
manner to foster religion during the time used for operation of the
program.
   (h) A school district or county superintendent of schools
implementing a Cal-SAFE program may establish a claims process to
recover federal funds available for any services provided that are
Medi-Cal eligible.
   (i) For purposes of serving pupils enrolled in the Cal-SAFE
program in a summer school program or enrolled in a school program
operating more than 180 days, eligibility for child care services
pursuant to subdivision (c) of Section 54746 shall be determined by
the parent's hours of enrollment and shall be for only those hours
necessary to further the completion of the parent's educational
program.
   (j) To meet startup costs for the opening of child care and
development sites, as defined in subdivision (ab) of Section 8208,
and applicable regulations, a school district or county office of
education may apply for a one-time 15-percent service level exemption
within the amount appropriated in the annual Budget Act for the
purposes of paragraph (4) of subdivision (a) for each site meeting
the criteria set forth in subdivision (ab) of Section 8208. To the
extent that Budget Act funding is insufficient to cover the full
costs of Cal-SAFE child care, reimbursements to all participating
programs shall be reduced on a pro rata basis. A school district or
county office of education shall submit claims pursuant to this
subdivision with other claims submitted pursuant to this section.
Funding provided for startup costs shall be utilized for approvable
startup costs enumerated in subdivision (a) of Section 8275.
   (k) To meet costs for the renovation, repair, or improvement of an
existing building to make the building suitable for licensure for
child care and development services and for the purchase of new
relocatable child care facilities for lease to school districts and
contracting agencies that provide child care and development
services, a school district or county office of education that
provides child care pursuant to this article may apply for and
receive funding pursuant to Section 8278.3.
   (l) Notwithstanding any other provision of this article, the
implementation of this article is contingent upon appropriations in
the annual Budget Act for the purpose of its administration and
evaluation by the department.
   (m) Notwithstanding any other law, a charter school may apply for
funding pursuant to this article and shall meet the requirements of
this article to be eligible for funding pursuant to this section.
  SEC. 45.  Section 56195.7 of the Education Code is amended to read:

   56195.7.  In addition to the provisions required to be included in
the local plan pursuant to Chapter 3 (commencing with Section
56205), each special education local plan area that submits a local
plan pursuant to subdivision (b) of Section 56195.1 and each county
office that submits a local plan pursuant to subdivision (c) of
Section 56195.1 shall develop written agreements to be entered into
by entities participating in the plan. The agreements need not be
submitted to the superintendent. These agreements shall include, but
not be limited to, the following:
   (a) A coordinated identification, referral, and placement system
pursuant to Chapter 4 (commencing with Section 56300).
   (b) Procedural safeguards pursuant to Chapter 5 (commencing with
Section 56500).
   (c) Regionalized services to local programs, including, but not
limited to, all of the following:
   (1) Program specialist service pursuant to Section 56368.
   (2) Personnel development, including training for staff, parents,
and members of the community advisory committee pursuant to Article 3
(commencing with Section 56240).
   (3) Evaluation pursuant to Chapter 6 (commencing with Section
56600).
   (4) Data collection and development of management information
systems.
   (5) Curriculum development.
   (6) Provision for ongoing review of programs conducted, and
procedures utilized, under the local plan, and a mechanism for
correcting any identified problem.
   (d) A description of the process for coordinating services with
other local public agencies that are funded to serve individuals with
exceptional needs.
   (e) A description of the process for coordinating and providing
services to individuals with exceptional needs placed in public
hospitals, proprietary hospitals, and other residential medical
facilities pursuant to Article 5.5 (commencing with Section 56167) of
Chapter 2.
   (f) A description of the process for coordinating and providing
services to individuals with exceptional needs placed in licensed
children's institutions and foster family homes pursuant to Article 5
(commencing with Section 56155) of Chapter 2.
   (g) A description of the process for coordinating and providing
services to individuals with exceptional needs placed in juvenile
court schools or county community schools pursuant to Section 56150.

   (h) A budget for special education and related services that shall
be maintained by the special education local plan area and be open
to the public covering the entities providing programs or services
within the special education local plan area. The budget language
shall be presented in a form that is understandable by the general
public. For each local educational agency or other entity providing a
program or service, the budget, at minimum, shall display the
following:
   (1) Expenditures by object code and classification for the
previous fiscal year and the budget by the same object code
classification for the current fiscal year.
   (2) The number and type of certificated instructional and support
personnel, including the type of class setting to which they are
assigned, if appropriate.
   (3) The number of instructional aides and other qualified
classified personnel.
   (4) The number of enrolled individuals with exceptional needs
receiving each type of service provided.
   (i) For multidistrict special education local plan areas, a
description of the policymaking process that shall include a
description of the local method used to distribute state and federal
funds among the local educational agencies in the special education
local plan area. The local method to distribute funds shall be
approved according to the policymaking process established consistent
with subdivision (f) of Section 56001 and pursuant to paragraph (3)
of subdivision (b) of Section 56205.
   (j) (1) In accordance with Section 1413 of Title 20 of the United
States Code, each single-district special education local plan area
established pursuant to Section 56195.1 shall have a written
procedure for the ongoing review of programs conducted, and
procedures utilized pursuant to Section 56205, under the local plan
as defined pursuant to Section 56027 and administered pursuant to
Section 56195, and a mechanism for correcting any identified problem
pursuant to paragraph (6) of subdivision (c).
   (2) Multidistrict special education local plan areas established
pursuant to subdivision (b) of Section 56195.1 and a district or
districts joined with the county office in accordance with
subdivision (c) of Section 56195.1 shall have a written agreement
entered into by entities participating in the local plan that
includes a provision for ongoing review of programs conducted, and
procedures utilized, under the local plan, and a mechanism for
correcting any identified problem pursuant to paragraph (6) of
subdivision (c).
   (3) The written procedure referenced in paragraph (1) and the
written agreement referenced in paragraph (2) need not be submitted
to the superintendent but shall be available upon request by the
department.
  SEC. 46.  Section 56362.7 of the Education Code is amended to read:

   56362.7.  (a) The Legislature recognizes the need for specially
trained professionals to assess and serve pupils of limited English
proficiency. This is particularly true of pupils with exceptional
needs or pupils with suspected disabilities.
   (b) The commission shall develop a bilingual-crosscultural
certificate of assessment competence for those professionals who may
participate in assessments for placements in special education
programs. The certificate shall be issued to holders of appropriate
credentials, certificates, or authorizations who demonstrate, by
written and oral examination, all of the following:
   (1) That the person is competent in both the oral and written
skills of a language other than English.
   (2) That the person has both the knowledge and understanding of
the cultural and historical heritage of the
limited-English-proficient individuals to be served.
   (3) That the person has the ability to perform the assessment
functions the candidate is certified or authorized to perform in
English and in a language other than English.
   (4) That the person has knowledge of the use of instruments and
other assessment techniques appropriate to evaluate
limited-English-proficient individuals with exceptional needs and
ability to develop appropriate data, instructional strategies,
individualized education programs, and evaluations.
   (c) Certificates of bilingual-crosscultural competence for special
education professionals who implement individual education plans
requiring bilingual services shall be granted by the commission
pursuant to Section 44253.7.
   (d) It is not the intent of the Legislature in enacting this
section that possession of any certificate established by this
section be a state-mandated requirement for employment or continued
employment. It is the intent that this is a matter for local
educational agencies to determine.
  SEC. 47.  Section 56836.07 is added to the Education Code, to read:

   56836.07.  For the 2004-05 fiscal year and each fiscal year
thereafter for which there is an appropriation in the annual Budget
Act for this purpose, the Superintendent shall allocate funds per
unit of average daily attendance, as defined in Section 56836.06,
reported for the special education local plan area to a special
education local plan area for the purposes of Section 56331. For the
2004-05 fiscal year and each fiscal year thereafter for which there
is an appropriation in the annual Budget Act for this purpose, the
Superintendent shall determine a proportionate share, consistent with
existing law, to the Los Angeles County Juvenile Court and Community
School/Division of Alternative Education Special Education Local
Plan Area based on the ratio of the amount per unit of average daily
attendance determined pursuant to Section 56836.10 to the amount of
the statewide target per unit of average daily attendance determined
pursuant to Section 56836.11.
  SEC. 48.  Section 7572.5 of the Government Code is amended to read:

   7572.5.  (a) When an assessment is conducted pursuant to Article 2
(commencing with Section 56320) of Chapter 4 of Part 30 of Division
4 of the Education Code, which determines that a child is seriously
emotionally disturbed, as defined in Section 300.7 of Title 34 of the
Code of Federal Regulations, and any member of the individualized
education program team recommends residential placement based on
relevant assessment information, the individualized education program
team shall be expanded to include a representative of the county
mental health department.
   (b) The expanded individualized education program team shall
review the assessment and determine whether:
   (1) The child's needs can reasonably be met through any
combination of nonresidential services, preventing the need for
out-of-home care.
   (2) Residential care is necessary for the child to benefit from
educational services.
   (3) Residential services are available which address the needs
identified in the assessment and which will ameliorate the conditions
leading to the seriously emotionally disturbed designation.
   (c) If the review required in subdivision (b) results in an
individualized education program which calls for residential
placement, the individualized education program shall include all the
items outlined in Section 56345 of the Education Code, and shall
also include:
   (1) Designation of the county mental health department as lead
case manager. Lead case management responsibility may be delegated to
the county welfare department by agreement between the county
welfare department and the designated mental health department. The
mental health department shall retain financial responsibility for
provision of case management services.
   (2) Provision for a review of the case progress, the continuing
need for out-of-home placement, the extent of compliance with the
individualized education program, and progress toward alleviating the
need for out-of-home care, by the full individualized education
program team at least every six months.
   (3) Identification of an appropriate residential facility for
placement with the assistance of the county welfare department as
necessary.
  SEC. 49.  Chapter 1.2 (commencing with Section 628) of Title 15 of
Part 1 of the Penal Code is repealed.
  SEC. 50.  Section 34501.5 of the Vehicle Code is amended to read:
   34501.5.  (a) The Department of the California Highway Patrol
shall adopt reasonable rules and regulations which, in the judgment
of the department, are designed to promote the safe operation of
vehicles described in Sections 39830 and 82321 of the Education Code
and Sections 545 and 34500 of this code. The Commissioner of the
California Highway Patrol shall appoint a committee of 11 members to
act in an advisory capacity when developing and adopting regulations
affecting school pupil transportation buses and school pupil
transportation operations. The advisory committee shall consist of 11
members appointed as follows:
   (1) One member of the State Department of Education.
   (2) One member of the Department of Motor Vehicles.
   (3) One member of the Department of the California Highway Patrol.

   (4) One member who is employed as a schoolbus driver.
   (5) One member of the Office of Traffic Safety in the Business,
Transportation and Housing Agency.
   (6) Two members who are schoolbus contractors, one of whom shall
be from an urban area of the state and one of whom shall be from a
rural area of the state, as determined by the department.
   (7) Two members who are representatives of school districts, one
of whom shall be from an urban area of the state and one of whom
shall be from a rural area of the state, as determined by the
department.
   (8) One professionally licensed member of the American Academy of
Pediatrics.
   (9) One member representing school pupil transportation operations
other than schoolbus operations.
   (b) The department shall cooperate and confer with the advisory
committee appointed pursuant to this section prior to adopting rules
or regulations affecting school pupil transportation buses and school
pupil transportation operations.
  SEC. 51.  Section 11 of Chapter 14 of the Statutes of 2003 is
amended to read:
   Sec. 11.  (a) Notwithstanding Sections 17456, 17457, 17462, and
17463 of the Education Code, or any other law, from June 1, 2003, to
June 30, 2007, inclusive, the Oakland Unified School District may
sell property owned by the district and use the proceeds from the
sale to reduce or retire the emergency loan provided in Section 9 of
this act.  The sale only of property pursuant to this subdivision is
not subject to Section 17459 or 17464 of the Education Code.
   (b) Notwithstanding any other provision of law, from June 1, 2003,
to June 30, 2007, inclusive, the Oakland Unified School District is
not eligible for financial hardship assistance pursuant to Article 8
(commencing                                                      with
Section 17075.10) of Chapter 12.5 of Part 10 of the Education Code.

  SEC. 52.  Item 6110-183-0890 of Section 2.00 of Chapter 208 of the
Statutes of 2004 is amended to read:




6110-183-0890--For local assistance,
Department of Education, Instructional
Support--Safe and Drug Free Schools
and Communities Act of 1994 (Public
Law 103-382), payable from the Federal
Trust Fund ............................ 52,939,000

Schedule:

(1)  20.10.045-Health and
Physical Education, Drug
Free Schools ............... 52,939,000

Provisions:

1.  Local education agencies shall
give priority in the expenditure of
the funds appropriated by this item to
create comprehensive drug and violence
prevention programs that promote
school safety, reduce the use of
drugs, and create learning
environments that are free of alcohol
and guns and that support academic
achievement for all pupils. In
addition to preventing drug and
alcohol use, prevention programs will
respond to the crisis of violence in
our schools by addressing the need to
prevent serious crime, violence, and
discipline problems. The
Superintendent of Public Instruction
shall (a) notify local education
agencies of this policy, and (b)
incorporate the policy into the
department's compliance review
procedures.

2.  Of the funds appropriated in this
item, $1,526,000 is available for one-
time grants for drug and violence
prevention and intervention services
for entitlements earned by a local
educational agency in the 2003-04
fiscal year.


  SEC. 53.  Section 18 of Chapter 895 of the Statutes of 2004 is
amended to read:
  Sec. 18.  (a) Notwithstanding any other law, the Commission on
State Mandates shall, on or before December 31, 2005, for paragraphs
(1) to (5), inclusive, and on or before January 31, 2006, for
paragraph (6), reconsider its decision in 97-TC-21, relating to the
School Accountability Report Card mandate, and its parameters and
guidelines for calculating the state reimbursement for that mandate
pursuant to Section 6 of Article XIII B of the California
Constitution for each of the following statutes, particularly in
light of federal and state statutes enacted and state court decisions
rendered since these statutes were enacted:
   (1) Chapter 1463 of the Statutes of 1989.
   (2) Chapter 759 of the Statutes of 1992.
   (3) Chapter 1031 of the Statutes of 1993.
   (4) Chapter 824 of the Statutes of 1994.
   (5) Chapter 918 of the Statutes of 1997.
   (6) Chapter 912 of the Statutes of 1997.
   (b) Notwithstanding any other provision of law, the decision of
the Commission on State Mandates on its reconsiderations pursuant to
subdivision (a) shall apply retroactively to January 1, 2005.
   (c) Notwithstanding any other provision of law, the parameters and
guidelines associated with the test claim of 97-TC-21 shall be
adjusted to conform to the decision of the Commission on State
Mandates on its reconsiderations.
  SEC. 54.  The sum of one hundred thirty thousand dollars ($130,000)
is hereby appropriated from the California Memorial Scholarship Fund
to the Scholarshare Investment Board for the purposes of
establishing individual scholarship accounts for eligible
participants and for administrative costs of the board pursuant to
Section 70010.7 of the Education Code, and shall be allocated as
follows:
   (a) One hundred thousand dollars ($100,000) for local assistance
for scholarship awards and shall be available for expenditure until
June 30, 2006.
   (b) Thirty thousand dollars ($30,000) for state operations to
support the administration of the California Memorial Scholarship
Program and shall be available until June 30, 2031.
  SEC. 54.5.  Due to the unique circumstances concerning the
Coachella Valley Unified School District, the Legislature finds and
declares that a general statute cannot be made applicable within the
meaning of Section 16 of Article IV of the Constitution. Therefore,
Section 23.5 of this act is necessarily applicable only to the
Coachella Valley Unified School District.
  SEC. 55.  With respect to Section 47 of this act, the Legislature
finds and declares that a special law is necessary and that a general
law cannot be made applicable within the meaning of Section 16 of
Article IV of the California Constitution because of the unique
circumstances of the Los Angeles County Juvenile Court and Community
School/Division of Alternative Education Special Education Local Plan
Area. The facts constituting the special circumstances are the
larger pupil population and unique staffing and pupil needs.
  SEC. 56.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
this act provides for offsetting savings to local agencies or school
districts that result in no net costs to the local agencies or school
districts, within the meaning of Section 17556 of the Government
Code.
   However, if the Commission on State Mandates determines that this
act contains other 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.
  SEC. 57.  This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:
   In order to ensure that the educational programs affected by this
act are properly implemented pursuant to the clarifying, technical,
and other changes made by this act, it is necessary for this act to
take effect immediately.