BILL NUMBER: AB 519 CHAPTERED
BILL TEXT
CHAPTER 757
FILED WITH SECRETARY OF STATE SEPTEMBER 30, 2008
APPROVED BY GOVERNOR SEPTEMBER 30, 2008
PASSED THE SENATE SEPTEMBER 16, 2008
PASSED THE ASSEMBLY SEPTEMBER 16, 2008
AMENDED IN SENATE SEPTEMBER 15, 2008
AMENDED IN SENATE AUGUST 22, 2008
AMENDED IN SENATE AUGUST 12, 2008
AMENDED IN SENATE SEPTEMBER 7, 2007
AMENDED IN ASSEMBLY APRIL 24, 2007
INTRODUCED BY Committee on Budget
FEBRUARY 21, 2007
An act to amend Sections 2558.46, 41203.1, 42238.146, 52052,
52055.57, 52059, 56836.155, 60604, 60605, 60605.6, 60606, 60616,
60630, 60640, 60641, 60642.5, 60643, 60645, 60647, 69521.3, 69521.4,
69521.5, 69521.10, 69521.11, 69522, 69561, and 76300 of, to add
Sections 12143 and 52055.59 to, and to repeal Sections 60642 and
60644 of, the Education Code, relating to education finance, making
an appropriation therefor, and declaring the urgency thereof, to take
effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 519, Committee on Budget. Education finance.
(1) Existing law requires a revenue limit to be calculated for
each county superintendent of schools, adjusted for various factors,
and reduced, as specified.
This bill would reduce the revenue limit for each county
superintendent of schools for the 2008-09 fiscal year by a deficit
factor of 4.396%.
(2) Existing law requires the State Department of Education, in
cooperation with the Department of Finance, to prepare a
comprehensive state plan, to be submitted to the Legislature by
January 1 of each year, detailing the prospective expenditure,
allocation, and apportionment of federal funds to be appropriated for
the next fiscal year to all educational agencies in the state. The
department, in cooperation with the Department of Finance, also is
required to submit a comprehensive report, to be submitted to the
Legislature by January 1 of each year, that sets forth in detail the
manner in which all federal funds were allocated and apportioned to,
and expended by, educational agencies in this state in the prior
fiscal year.
This bill would require the department to submit, to the
Legislature, the Legislative Analyst's Office, and the Governor, 2
annual reports on federal funds for education in kindergarten and
grades 1 to 12, inclusive. One report, to be submitted no later than
February 15 of each year, would provide a 3-year tracking of federal
funds for each federally funded program that includes detail by type
of funded activity and state budget category and the actual
expenditures for the prior year, a revised estimate of current-year
expenditures, and the budget-year appropriation. The other report, to
be submitted no later than November 1 of each year, would identify
available federal carryover funds, identifying those funds, by fiscal
year and potential reversion date, for each federally funded program
by type of funded activity and state budget category.
(3) Existing law requires, for the 1990-91 fiscal year and each
fiscal year thereafter, that moneys to be applied by the state for
the support of school districts, community college districts, and
direct elementary and secondary level instructional services provided
by the state be distributed in accordance with certain calculations
governing the proration of those moneys among the 3 segments of
public education. Existing law makes that provision inapplicable to
the fiscal years between the 1992-93 and 2007-08 fiscal years,
inclusive.
This bill, in addition, would make that provision inapplicable to
the 2008-09 fiscal year.
(4) Existing law requires the county superintendent of schools to
determine a revenue limit for each school district in the county and
requires the amount of the revenue limit to be adjusted for various
factors.
This bill would reduce the revenue limit for each school district
by a 4.713% deficit factor for the 2008-09 fiscal year.
(5) Existing law requires the State Department of Education to
identify local educational agencies that are in danger of being
identified within 2 years as program improvement local educational
agencies under the federal No Child Left Behind Act of 2001 (20
U.S.C. Sec. 6301 et seq.), and requires those local educational
agencies identified to comply with certain requirements.
This bill, if funding is not provided in the annual Budget Act or
other statute, would delete the requirement that program improvement
local educational agencies comply with certain of those requirements.
Under existing law, a local educational agency that is identified
for corrective action under the federal No Child Left Behind Act of
2001 is subject to one or more sanctions recommended by the
Superintendent and approved by the State Board of Education,
including a requirement to contract with a district assistance and
intervention team to aid the local educational agency.
This bill would require the department to develop, and the state
board to approve at a public meeting, objective criteria by which a
local educational agency identified for corrective action and subject
to a sanction would be evaluated for the purpose of determining the
pervasiveness and severity of performance problems of the local
educational agency and the sanction to be imposed. The bill would
authorize a one-year, nonrenewable grant of federal improvement
funding to assist in the improvement process of a local educational
agency. The amount of the grant would vary depending on the
pervasiveness and severity of performance problems of the local
educational agency.
The bill would prohibit a local educational agency that receives
funding under this program, or that receives other federal funds for
school improvement, from using those funds to compensate a receiver
or trustee assigned by the state board to administer the affairs of
the local educational agency in place of the county superintendent of
schools and the governing board.
The bill, subject to an appropriation in the annual Budget Act or
another statute, would require the Superintendent to contract with an
independent evaluator to complete a comprehensive 3-year evaluation
of the program established for local educational agencies that are
identified for corrective action. The evaluation would be required to
examine the implementation, impact, costs, and effectiveness of the
corrective actions and reform strategies and to determine the
effectiveness of the technical assistance provided by the district
intervention and assistance. The Superintendent would be required to
submit 2 interim reports and a final report to the Governor, the
Department of Finance, the Legislature, and the Legislative Analyst's
Office.
(6) Existing law requires the department, for purposes of
complying with the federal No Child Left Behind Act of 2001, to
establish a statewide system of school support to provide a statewide
system of intensive and sustained support and technical assistance
for school districts, county offices of education, and schools in
need of improvement. The system consists of regional consortia, which
may include county offices of education and school districts, that
work collaboratively with school districts and county offices of
education to meet the needs of school districts and schools in need
of improvement.
This bill would add district assistance and intervention teams and
other technical assistance providers to the system and would require
the teams and other technical assistance providers to conduct a
needs assessment and complete a report on their findings, including
recommendations for improvement and the redirection of resources to
ensure the implementation of the recommendations.
(7) Existing law adjusts funding for individuals with exceptional
needs based on an incidence multiplier, as defined, for each special
education local plan area.
This bill would continue the current special education incidence
factor formula through the 2008-09 fiscal year.
(8) The Leroy Greene California Assessment of Academic Achievement
Act requires the Superintendent to design and implement a statewide
pupil assessment program, known as the Standardized Testing and
Reporting (STAR) Program. The State Board of Education, in its sole
discretion, is required to designate for use as part of the STAR
Program a single test in grades 3 and 7 and to ensure that the
achievement test contains specified subject areas for grades 3 and 7.
This bill would repeal this component of the STAR Program and make
conforming changes.
(9) Existing law authorizes the Director of Finance to act as
agent for the state in the sale of the student loan guarantee
portfolio and certain related assets and liabilities of the student
loan guarantee program not retained by the Student Aid Commission to
an entity approved by the United States Secretary of Education to act
as a state student loan guarantee agency for the Federal Family
Education Loan Program, and selected by the Director of Finance, in
consultation with the Treasurer, pursuant to a prescribed procedure.
Existing law requires the Director of Finance, in consultation with
the Treasurer, to select a firm or individual to provide advisory
services. Existing law requires the Director of Finance to send a
Notice of Request for Qualifications to specified entities as part of
the sale process. Existing law also requires the notice to be
published in the State Contracts Register pursuant to specified
statutory provisions. Existing law requires the Director of Finance
to cease the activities he or she is authorized to undertake with
regard to the sale upon the 30th day following written notice by the
director to the Chairperson of the Joint Legislative Budget Committee
or January 10, 2009, whichever occurs earlier.
This bill would require the Director of Finance to provide a copy
of the Notice of Request for Qualifications to the Joint Legislative
Budget Committee within 7 days of transmittal to state student loan
guarantee agencies and within 7 days of publication in the State
Contracts Register. The bill would require the Director of Finance to
notify the Joint Legislative Budget Committee in writing within 7
days of entering into a contract with an individual or firm for
advisory services. The bill would extend the alternate date upon
which the Director of Finance is required to cease the activities he
or she is authorized to undertake with regard to the sale from
January 10, 2009, to January 10, 2011.
(10) Existing law authorizes the Student Aid Commission to
establish an auxiliary organization to provide operational and
administrative services for the commission's participation in the
Federal Family Education Loan Program or for other activities
approved by the commission and determined by the commission to meet
specified criteria. Existing law prohibits the commission from
including loan origination or loan capitalization activities as
approved activities, but states that the prohibition does not
preclude the commission or the auxiliary organization from
undertaking other permitted activities related to student financial
aid in partnership with institutions that conduct loan origination or
loan capitalization activities.
This bill, in addition, would state that the prohibition on
including loan origination or loan capitalization activities as
approved activities does not preclude the commission or the auxiliary
organization from undertaking loan origination or capitalization
activities authorized pursuant to an agreement with the United States
Secretary of Education for the lender-of-last-resort program.
(11) Existing law requires the Student Aid Commission to
administer the Student Opportunity and Access Program, under which
the commission is authorized to apportion funds for the support of
projects designed to increase the accessibility of postsecondary
educational opportunities for certain elementary and secondary school
pupils, including those from low-income families, those who would be
the first in their families to attend college, and those who are
from schools or geographic regions with documented low-eligibility or
college participation rates. Projects are required to primarily
increase the availability of information for these pupils on the
existence of postsecondary schooling and work opportunities and to
raise the achievement levels of these pupils.
This bill would authorize projects to be implemented under the
program that provide assistance to low-income middle and high school
pupils and their parents in order to implement outreach efforts
designed to use the future availability of financial assistance as a
means of motivating pupils to stay in school by promoting career
technical education public awareness. These projects would be
required to promote the value of career technical education,
available career programs in public school and postsecondary segments
with sequenced courses beginning in high school and continuing into
postsecondary institutions, and the resulting career opportunities.
(12) Existing law requires the governing board of each community
college district to charge each student a fee per unit per semester
and requires this fee to be waived for specified students who
demonstrate eligibility for the fee waiver. The Board of Governors of
the California Community Colleges is required to allocate to
community college districts 2% of the fees waived. The board of
governors also is required to allocate to community college districts
$0.91 per credit unit waived for determination of financial need and
delivery of student financial aid services. These allocations are
required to be made from funds provided in the annual Budget Act.
This bill would state the intent of the Legislature that the funds
described above be used to support the determination of financial
need and delivery of student financial aid services and that the
funds directly offset any mandated costs claimed by community college
districts pursuant to specified Commission on State Mandates test
claims.
(13) This bill would appropriate $12,500,000 from the Public
Interest Research, Development, and Demonstration Fund to the
Chancellor of the California Community Colleges. Of that appropriated
amount, the bill would require the Chancellor of the California
Community Colleges to transfer $12,000,000 to the State Department of
Education for expenditure in one-time funds for local grants to be
allocated pursuant to specified statutory provisions regarding
partnership academies over 3 years as specified in the Budget Act of
2008. The bill would require grantees to create partnership academies
that focus on clean technology and energy businesses and provide
skilled workforces for the products and services for energy or water
conservation, or both, renewable energy, pollution reduction, or
other technologies that improve the environment in furtherance of
state environmental laws. The bill would require the Chancellor of
the California Community Colleges to transfer the remaining $500,000
to the State Department of Education to pay for the expenses of
administering the local grants.
(14) This bill would appropriate $39,780,000 from the General Fund
to the Board of Governors of the California Community Colleges, in
augmentation of an amount appropriated pursuant to a specified item
in Budget Act of 2008, for the purpose of providing a 0.68%
cost-of-living adjustment to apportionments to community college
districts, for expenditure during the 2008-09 fiscal year. The bill
would provide that, for purposes of satisfying the minimum annual
funding obligation for community college districts required by the
California Constitution, those funds are General Fund revenues
appropriated for community college districts for the 2008-09 fiscal
year.
(15) This bill would appropriate $388,283,000 from the General
Fund to the State Department of Education for 10 specified programs
according to a specified schedule, and would require the department
to encumber these funds by July 1, 2009. The bill would provide that,
for purposes of satisfying the minimum annual funding obligation for
school districts required by the California Constitution, the
appropriated funds are General Fund revenues appropriated for school
districts and community college districts for the 2009-10 fiscal
year.
(16) This bill would appropriate $200,000,000 from the General
Fund to the Board of Governors of the California Community Colleges
for expenditure during the 2009-10 fiscal year according to a
specified item in the Budget Act of 2008. The bill would provide
that, for purposes of satisfying the minimum annual funding
obligation for community college districts required by the California
Constitution, those funds are General Fund revenues appropriated for
community college districts for the 2009-10 fiscal year.
(17) Existing law annually appropriates $150,000,000 from the
General Fund to the Controller for allocation by the Controller to
school districts and community colleges for the purpose of
discharging in full the outstanding balance of the minimum funding
obligation to school districts and community college districts
pursuant to Section 8 of Article XVI of the California Constitution
as determined by specified state officials.
This bill would provide that there shall be no annual
appropriation in the 2008-09 fiscal year for this purpose.
(18) This bill would set the cost-of-living adjustment for
specified items in the Budget Act of 2007 and for specified items in
the Budget Act of 2008 for the 2008-09 fiscal year at 0%
notwithstanding the cost-of-living adjustment specified in existing
statutes.
(19) This bill would require funds appropriated pursuant to
specified items in the Budget Act of 2008 to be encumbered by July
31, 2009.
(20) 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 2558.46 of the Education Code is amended to
read:
2558.46. (a) (1) For the 2003-04 fiscal year, the revenue limit
for each county superintendent of schools determined pursuant to this
article shall be reduced by a 1.195 percent deficit factor.
(2) For the 2004-05 fiscal year, the revenue limit for each county
superintendent of schools determined pursuant to this article shall
be reduced by a 0.323 percent deficit factor.
(3) For the 2003-04 and 2004-05 fiscal years, the revenue limit
for each county superintendent of schools determined pursuant to this
article shall be reduced further by a 1.826 percent deficit factor.
(4) For the 2005-06 fiscal year, the revenue limit for each county
superintendent of schools determined pursuant to this article shall
be reduced further by a 0.898 percent deficit factor.
(5) For the 2008-09 fiscal year, the revenue limit for each county
superintendent of schools determined pursuant to this article shall
be reduced by a 4.396 percent deficit factor.
(b) In computing the revenue limit for each county superintendent
of schools for the 2006-07 fiscal year pursuant to this article, the
revenue limit shall be determined as if the revenue limit for that
county superintendent of schools had been determined for the 2003-04,
2004-05, and 2005-06 fiscal years without being reduced by the
deficit factors specified in this section.
(c) In computing the revenue limit for each county superintendent
of schools for the 2009-10 fiscal year pursuant to this article, the
revenue limit shall be determined as if the revenue limit for that
county superintendent of schools had been determined for the 2008-09
fiscal year without being reduced by the deficit factors specified in
this section.
SEC. 2. Section 12143 is added to the Education Code, to read:
12143. The department shall submit to the Legislature, the
Legislative Analyst's Office, and the Governor the following two
annual reports on federal funds for education in kindergarten and
grades 1 to 12, inclusive:
(a) One report, to be submitted no later than February 15 of each
year, shall provide a three-year tracking of federal funds. For each
federally funded program, the report shall include detail by type of
funded activity (state administration, state-level activity, local
assistance, and capital outlay) and state budget category (state
operations, local assistance, and capital outlay). For each program,
by type of funded activity and state budget category, the report
shall include all of the following:
(1) Actual expenditures for the prior year.
(2) A revised estimate of current year expenditures.
(3) The budget-year appropriation.
(b) The other report, to be submitted no later than November 1 of
each year, shall identify available federal carryover funds.
Specifically, this report shall identify carryover funds, by fiscal
year and potential reversion date, for each federally funded program
by type of funded activity (state administration, state-level
activity, local assistance, and capital outlay) and state budget
category (state operations, local assistance, and capital outlay).
SEC. 3. Section 41203.1 of the Education Code is amended to read:
41203.1. (a) For the 1990-91 fiscal year and each fiscal year
thereafter, allocations calculated pursuant to Section 41203 shall be
distributed in accordance with calculations provided in this
section. Notwithstanding Section 41203, and for the purposes of this
section, school districts, community college districts, and direct
elementary and secondary level instructional services provided by the
State of California shall be regarded as separate segments of public
education, and each of these three segments of public education
shall be entitled to receive respective shares of the amount
calculated pursuant to Section 41203 as though the calculation made
pursuant to subdivision (b) of Section 8 of Article XVI of the
California Constitution were to be applied separately to each segment
and the base year for the purposes of this calculation under
paragraph (1) of subdivision (b) of Section 8 of Article XVI of the
California Constitution were based on the 1989-90 fiscal year.
Calculations made pursuant to this subdivision shall be made so that
each segment of public education is entitled to the greater of the
amounts calculated for that segment pursuant to paragraph (1) or (2)
of subdivision (b) of Section 8 of Article XVI of the California
Constitution.
(b) If the single calculation made pursuant to Section 41203
yields a guaranteed amount of funding that is less than the sum of
the amounts calculated pursuant to subdivision (a), the amount
calculated pursuant to Section 41203 shall be prorated for the three
segments of public education.
(c) Notwithstanding any other law, this section does not apply to
the 1992-93 to 2008-09 fiscal years, inclusive.
SEC. 4. Section 42238.146 of the Education Code is amended to
read:
42238.146. (a) (1) For the 2003-04 fiscal year, the revenue limit
for each school district determined pursuant to this article shall
be reduced by a 1.198 percent deficit factor.
(2) For the 2004-05 fiscal year, the revenue limit for each school
district determined pursuant to this article shall be reduced by a
0.323 percent deficit factor.
(3) For the 2003-04 and 2004-05 fiscal years, the revenue limit
for each school district determined pursuant to this article shall be
further reduced by a 1.826 percent deficit factor.
(4) For the 2005-06 fiscal year, the revenue limit for each school
district determined pursuant to this article shall be reduced by a
0.892 percent deficit factor.
(5) For the 2008-09 fiscal year, the revenue limit for each school
district determined pursuant to this article shall be reduced by a
4.713 percent deficit factor.
(b) In computing the revenue limit for each school district for
the 2006-07 fiscal year pursuant to this article, the revenue limit
shall be determined as if the revenue limit for that school district
had been determined for the 2003-04, 2004-05, and 2005-06 fiscal
years without being reduced by the deficit factors specified in this
section.
(c) In computing the revenue limit for each school district for
the 2009-10 fiscal year pursuant to this article, the revenue limit
shall be determined as if the revenue limit for that school district
had been determined for the 2008-09 fiscal year without being reduced
by the deficit factors specified in this section.
SEC. 5. Section 52052 of the Education Code is amended to read:
52052. (a) (1) The Superintendent, with approval of the state
board, shall develop an Academic Performance Index (API), to measure
the performance of schools, especially the academic performance of
pupils.
(2) A school shall demonstrate comparable improvement in academic
achievement as measured by the API by all numerically significant
pupil subgroups at the school, including:
(A) Ethnic subgroups.
(B) Socioeconomically disadvantaged pupils.
(C) English language learners.
(D) Pupils with disabilities.
(3) (A) For purposes of this section, a numerically significant
pupil subgroup is one that meets both of the following criteria:
(i) The subgroup consists of at least 50 pupils each of whom has a
valid test score.
(ii) The subgroup constitutes at least 15 percent of the total
population of pupils at a school who have valid test scores.
(B) If a subgroup does not constitute 15 percent of the total
population of pupils at a school who have valid test scores, the
subgroup may constitute a numerically significant pupil subgroup if
it has at least 100 valid test scores.
(C) For a school with an API score that is based on no fewer than
11 and no more than 99 pupils with valid test scores, numerically
significant subgroups shall be defined by the Superintendent, with
approval by the state board.
(4) The API shall consist of a variety of indicators currently
reported to the department, including, but not limited to, the
results of the achievement test administered pursuant to Section
60640, attendance rates for pupils in elementary schools, middle
schools, and secondary schools, and the graduation rates for pupils
in secondary schools.
(A) Graduation rates for pupils in secondary schools shall be
calculated for the API as follows:
(i) The number of pupils who graduated on time for the current
school year, which is considered to be three school years after the
pupils entered grade 9 for the first time, divided by the total
calculated in clause (ii).
(ii) The number of pupils entering grade 9 for the first time in
the school year three school years prior to the current school year,
plus the number of pupils who transferred into the class graduating
at the end of the current school year between the school year that
was three school years prior to the current school year and the date
of graduation, less the number of pupils who transferred out of the
school between the school year that was three school years prior to
the current school year and the date of graduation who were members
of the class that is graduating at the end of the current school
year.
(B) The pupil data collected for the API that comes from the
achievement test administered pursuant to Section 60640 and the high
school exit examination administered pursuant to Section 60851, when
fully implemented, shall be disaggregated by special education
status, English language learners, socioeconomic status, gender, and
ethnic group. Only the test scores of pupils who were counted as part
of the enrollment in the annual data collection of the California
Basic Educational Data System for the current fiscal year and who
were continuously enrolled during that year may be included in the
test result reports in the API score of the school. Results of the
achievement test and other tests specified in subdivision (b) shall
constitute at least 60 percent of the value of the index.
(C) Before including high school graduation rates and attendance
rates in the API, the Superintendent shall determine the extent to
which the data currently are reported to the state and the accuracy
of the data. Notwithstanding any other provision of law, graduation
rates for pupils in dropout recovery high schools shall not be
included in the API. For purposes of this subparagraph, "dropout
recovery high school" means a high school in which 50 percent or more
of its pupils have been designated as dropouts pursuant to the
exit/withdrawal codes developed by the department.
(D) The Superintendent shall provide an annual report to the
Legislature on the graduation and dropout rates in California and
shall make the same report available to the public. The report shall
be accompanied by the release of publicly accessible data for each
school district and school in a manner that provides for
disaggregation based upon socioeconomically disadvantaged pupils and
numerically significant subgroups scoring below average on statewide
standards-aligned assessments. In addition, the data shall be made
available in a manner that provides for comparisons of a minimum of
three years of data.
(b) Pupil scores from the following tests, when available and when
found to be valid and reliable for this purpose, shall be
incorporated into the API:
(1) The standards-based achievement tests provided for in Section
60642.5.
(2) The high school exit examination.
(c) Based on the API, the Superintendent shall develop, and the
state board shall adopt, expected annual percentage growth targets
for all schools based on their API baseline score from the previous
year. Schools are expected to meet these growth targets through
effective allocation of available resources. For schools below the
statewide API performance target adopted by the state board pursuant
to subdivision (d), the minimum annual percentage growth target shall
be 5 percent of the difference between the actual API score of a
school and the statewide API performance target, or one API point,
whichever is greater. Schools at or above the statewide API
performance target shall have, as their growth target, maintenance of
their API score above the statewide API performance target. However,
the state board may set differential growth targets based on grade
level of instruction and may set higher growth targets for the lowest
performing schools because they have the greatest room for
improvement. To meet its growth target, a school shall demonstrate
that the annual growth in its API is equal to or more than its
schoolwide annual percentage growth target and that all numerically
significant pupil subgroups, as defined in subdivision (a), are
making comparable improvement.
(d) Upon adoption of state performance standards by the state
board, the Superintendent shall recommend, and the state board shall
adopt, a statewide API performance target that includes consideration
of performance standards and represents the proficiency level
required to meet the state performance target. When the API is fully
developed, schools, at a minimum, shall meet their annual API growth
targets to be eligible for the Governor's Performance Award Program
as set forth in Section 52057. The state board may establish
additional criteria that schools must meet to be eligible for the
Governor's Performance Award Program.
(e) The API shall be used for both of the following:
(1) Measuring the progress of schools selected for participation
in the Immediate Intervention/Underperforming Schools Program
pursuant to Section 52053.
(2) Ranking all public schools in the state for the purpose of the
High Achieving/Improving Schools Program pursuant to Section 52056.
(f) (1) A school with 11 to 99 pupils with valid test scores shall
receive an API score with an asterisk that indicates less
statistical certainty than API scores based on 100 or more test
scores.
(2) A school annually shall receive an API score, unless the
Superintendent determines that an API score would be an invalid
measure of the performance of the school for one or more of the
following reasons:
(A) Irregularities in testing procedures occurred.
(B) The data used to calculate the API score of the school are not
representative of the pupil population at the school.
(C) Significant demographic changes in the pupil population render
year-to-year comparisons of pupil performance invalid.
(D) The department discovers or receives information indicating
that the integrity of the API score has been compromised.
(E) Insufficient pupil participation in the assessments included
in the API.
(3) If a school has fewer than 100 pupils with valid test scores,
the calculation of the API or adequate yearly progress pursuant to
the federal No Child Left Behind Act of 2001 (20 U.S.C. Sec. 6301 et
seq.) and federal regulations may be calculated over more than one
annual administration of the tests administered pursuant to Section
60640 and the high school exit examination administered pursuant to
Section 60851, consistent with regulations adopted by the state
board.
(g) Only schools with 100 or more test scores contributing to the
API may be included in the API rankings.
(h) The Superintendent, with the approval of the state board,
shall develop an alternative accountability system for schools under
the jurisdiction of a county board of education or a county
superintendent of schools, community day schools, nonpublic,
nonsectarian schools pursuant to Section 56366, and alternative
schools serving high-risk pupils, including continuation high schools
and opportunity schools. Schools in the alternative accountability
system may receive an API score, but shall not be included in the API
rankings.
SEC. 6. Section 52055.57 of the Education Code is amended to read:
52055.57. (a) (1) Provisions that are applicable to local
educational agencies under this section are for the purpose of
implementing federal requirements under the federal No Child Left
Behind Act of 2001 (20 U.S.C. Sec. 6301 et seq.). The satisfaction of
these criteria by local educational agencies that choose to
participate under this article shall be a condition of receiving
funds pursuant to this section.
(2) The department shall identify local educational agencies that
are in danger of being identified within two years as program
improvement local educational agencies under the federal No Child
Left Behind Act of 2001, and shall notify those local educational
agencies, in writing, of this status and provide those local
educational agencies with research-based criteria to conduct a
voluntary self-assessment.
(3) The self-assessment shall identify deficiencies within the
operations of the local educational agency, and the programs and
services of the local educational agency.
(4) A local educational agency identified pursuant to paragraph
(2) is encouraged to revise its local educational agency plan based
on the results of the self-assessment.
(5) The program described in this subdivision shall be referred to
as the "Early Warning Program."
(b) (1) A local educational agency identified as a program
improvement local educational agency under the federal No Child Left
Behind Act of 2001 shall do all of the following:
(A) Conduct a self-assessment using materials and criteria based
on current research and provided by the department.
(B) No later than 90 days after a local educational agency is
identified for program improvement, contract with a county office of
education or another external entity after working with the county
superintendent of schools, for both of the following purposes:
(i) Verifying the fundamental teaching and learning needs in the
schools of that local educational agency as determined by the local
educational agency self-analysis, and identifying the specific
academic problems of low-achieving pupils, including a determination
of why the prior plan of the local educational agency failed to bring
about increased pupil academic achievement.
(ii) Ensuring that the local educational agency receives intensive
support and expertise to implement local educational agency reform
initiatives in the revised local educational agency plan as required
by the federal No Child Left Behind Act of 2001.
(C) Revise and expeditiously implement the local educational
agency plan to reflect the findings of the verified self-assessment.
(D) After working with the county superintendent of schools or an
external verifier, contract with an external provider to provide
support and implement recommendations to assist the local educational
agency in resolving shortcomings identified in the verified
self-assessment.
(2) (A) Subject to the availability of funds in the annual Budget
Act for this purpose, a local educational agency described in
paragraph (1) annually may receive fifty thousand dollars ($50,000),
plus ten thousand dollars ($10,000) for each school that is supported
by federal funds pursuant to Title I of the federal No Child Left
Behind Act of 2001 within the local educational agency, for the
purpose of fulfilling the requirements of this subdivision. If
funding is not provided in the annual Budget Act or other statute,
local educational agencies shall not be subject to the requirements
of subparagraphs (B) and (D) of paragraph (1).
(B) Subject to the availability of funds appropriated in the
annual Budget Act for this purpose, a local educational agency
identified as a program improvement local educational agency during
the 2005-06 fiscal year, shall receive priority for funding based
upon the performance of the socioeconomically disadvantaged subgroup
of the local educational agency on the Academic Performance Index.
Priority for funding shall be provided to the lowest performing local
educational agencies that are identified as program improvement
local educational agencies. It is the intent of the Legislature that
funds apportioned pursuant to this paragraph be used to support
activities identified in paragraph (1).
(C) It is the intent of the Legislature that a local educational
agency identified as a program improvement local educational agency
receive no more than two years of funding pursuant to this paragraph.
(c) A local educational agency that has been identified for
corrective action under the federal No Child Left Behind Act of 2001
shall be subject to one or more of the following sanctions as
recommended by the Superintendent and approved by the state board:
(1) Replacing local educational agency personnel who are relevant
to the failure to make adequate yearly progress.
(2) Removing schools from the jurisdiction of the local
educational agency and establishing alternative arrangements for the
governance and supervision of those schools.
(3) Appointing, by the state board, a receiver or trustee, to
administer the affairs of the local educational agency in place of
the county superintendent of schools and the governing board.
(4) Abolishing or restructuring the local educational agency.
(5) Authorizing pupils to transfer from a school operated by the
local educational agency to a higher performing school operated by
another local educational agency, and providing those pupils with
transportation to those schools, in conjunction with carrying out not
less than one additional action described under this paragraph.
(6) Instituting and fully implementing a new curriculum that is
based on state academic content and achievement standards, including
providing appropriate professional development based on
scientifically based research for all relevant staff, that offers
substantial promise of improving educational achievement for
high-priority pupils.
(7) Deferring programmatic funds or reducing administrative
funds.
(d) (1) The department shall develop, and the state board shall
approve at a public meeting, objective criteria by which a local
educational agency identified for corrective action and subject to a
sanction listed under subdivision (c) shall be evaluated to determine
the pervasiveness and severity of its performance problems and the
sanction to be imposed.
(2) A local educational agency identified for corrective action
and subject to a sanction listed under subdivision (c) may apply for
a one-year, nonrenewable grant of federal improvement funding to
assist in its improvement process and may expend that grant funding
over the time period allowable under federal law. It is the intent of
the Legislature to integrate federal funding that is available for
this purpose, including, but not limited to, funding for program
improvement and school improvement grants pursuant to Section 6303 of
Title 20 of the United States Code.
(3) The amount of a grant for a local educational agency with
extensive and severe performance problems shall be one hundred fifty
thousand dollars ($150,000) per school identified for program
improvement pursuant to federal law. The amount of a grant for a
local educational agency with moderate performance problems shall be
one hundred thousand dollars ($100,000) per school identified for
program improvement pursuant to federal law. The amount of a grant
for a local educational agency with minor or isolated performance
problems shall be fifty thousand dollars ($50,000) per school
identified for program improvement pursuant to federal law.
(4) A local educational agency that receives funding under this
subdivision shall use the funds in accordance with Section 6316(b)
and (c) of Title 20 of the United States Code. Pursuant to the
technical assistance requirements under the federal No Child Left
Behind Act of 2001 outlined in Section 6312(b) and (c) and Section
6317 of Title 20 of the United States Code, the Superintendent may
recommend, and the state board may approve, that a local educational
agency contract with a district assistance and intervention team or
other technical assistance provider to receive guidance, support, and
technical assistance. A district intervention and assistance team or
other technical provider with which a local educational agency is
required to contract shall perform the duties specified in
subdivision (e) of Section 52059.
(5) Notwithstanding any other law, a local educational agency that
receives funding under this subdivision or that receives other
federal funds for school improvement shall not use those funds to
compensate a receiver or trustee assigned by the state board pursuant
to paragraph (3) of subdivision (c).
(e) A local educational agency that has received a sanction under
subdivision (c) and has not exited program improvement under the
federal No Child Left Behind Act of 2001 shall appear before the
state board within three years to review the progress of the local
educational agency. Upon hearing testimony and reviewing written data
from the local educational agency, the district assistance and
intervention team, or county superintendent of schools, the
Superintendent shall recommend, and the state board may approve, an
alternative sanction under subdivision (c), or may take any
appropriate action.
(f) Subject to the availability of funds in the annual Budget Act
for this purpose, a local educational agency that is not identified
as a program improvement local educational agency under the federal
No Child Left Behind Act of 2001 may annually receive up to fifteen
thousand dollars ($15,000) per school identified as a program
improvement school for the purposes of supporting schools identified
as program improvement schools in the local educational agency and
determining barriers to improved pupil academic achievement. That
local educational agency shall receive no less than forty thousand
dollars ($40,000) and no more than one million five hundred thousand
dollars ($1,500,000) for those purposes. The Superintendent shall
compile a list that ranks each local educational agency based on the
number of, and percentage of, schools identified as program
improvement schools and shall provide this funding to local
educational agencies equally from each list until all funds
appropriated for this purpose are depleted. These funds shall be
provided for no more than three years.
(g) For purposes of this article, "local educational agency" means
a school district, county office of education, or charter school
that elects to receive its funding directly pursuant to Section
47651, and that provides public educational services to pupils in
kindergarten or any of grades 1 to 12, inclusive.
SEC. 7. Section 52055.59 is added to the Education Code, to read:
52055.59. (a) Subject to an appropriation in the annual Budget
Act or other statute, the Superintendent shall contract with an
independent evaluator
to complete a comprehensive three-year evaluation of the program
established pursuant to subdivision (d) of Section 52055.57. It is
the intent of the Legislature that a total of one million dollars
($1,000,000) be provided for the independent evaluation, with three
hundred thirty-four thousand dollars ($334,000) provided for the
2008-09 fiscal year, three hundred thirty-three thousand dollars
($333,000) provided for the 2009-10 fiscal year, and three hundred
thirty-three thousand dollars ($333,000) provided for the 2010-11
fiscal year. The evaluation shall focus on local educational agencies
that are identified for corrective action beginning with the 2007-08
fiscal year, and in the 2008-09, 2009-10, and 2010-11 fiscal years,
and shall include data compiled for those local educational agencies
for those years.
(b) The evaluation shall examine the implementation, impact,
costs, and effectiveness of the corrective actions and reform
strategies undertaken by local educational agencies that are
identified for corrective action, as specified in subdivision (a).
The evaluation also shall determine the effectiveness of the
technical assistance provided by the district assistance and
intervention teams and other technical assistance providers pursuant
to Section 52059.
(c) The Superintendent shall ensure that the evaluation includes,
at a minimum, all of the following factors:
(1) Program implementation data, including, but not limited to, a
review of startup activities, the quality of the academic program,
local governance and leadership, the allocation of fiscal resources,
the allocation of personnel, management practices, community support,
parental participation, the use of pupil data to inform
instructional practice, and staff development.
(2) Pupil performance data, including, but not limited to, results
of assessments used to determine whether local educational agencies
have made significant progress towards meeting their state and
federal academic growth targets and data for each of the following
subgroups:
(A) English learners.
(B) Pupils with exceptional needs.
(C) Pupils who are eligible for funds under Title I of the federal
No Child Left Behind Act of 2001 (20 U.S.C. Sec. 6301 et seq.).
(3) Data on the percentage of fully credentialed teachers, the
percentage of teachers who hold emergency credentials, the percentage
of teachers assigned outside their subject area of competence, the
accreditation status of the school if appropriate, average class size
per grade level, and the number of pupils in multitrack, year-round
schools. These data shall be compiled for the 2008-09, 2009-10, and
2010-11 school years.
(d) The evaluation shall include a rigorous qualitative and
quantitative assessment of how program implementation affected pupil
achievement and teacher quality using the information required
pursuant to subdivision (c).
(e) The Superintendent shall submit two interim reports and a
final report to the Governor, the Department of Finance, the
Legislature, and the Legislative Analyst's Office. The reports shall
be submitted to these agencies no later than November 1, 2009,
November 1, 2010, and November 1, 2011, respectively.
SEC. 8. Section 52059 of the Education Code is amended to read:
52059. (a) For purposes of complying with the federal No Child
Left Behind Act of 2001 (20 U.S.C. Sec. 6301 et seq.), a statewide
system of school support shall be established by the department to
provide a statewide system of intensive and sustained support and
technical assistance for school districts, county offices of
education, and schools in need of improvement. The system shall
consist of regional consortia as well as district assistance and
intervention teams and other technical assistance providers.
(b) The regional consortia shall work collaboratively with, and
provide technical assistance to, school districts and schools in need
of improvement by doing the following:
(1) Reviewing and analyzing all facets of the operation of a local
educational agency or school, including the following:
(A) The design and operation of the instructional program offered
by the local educational agency or school.
(B) The recruitment, hiring, and retention of principals,
teachers, and other staff, including vacancy issues. The regional
consortia may request the assistance of the Fiscal Crisis and
Management Assistance Team to review school district or school
recruitment, hiring, and retention practices.
(C) The roles and responsibilities of district and school
management personnel.
(2) Assisting the local educational agency or school in developing
recommendations for improving pupil performance and school
operations.
(3) Assisting the local educational agency or school in efforts to
eliminate misassignments of certificated personnel.
(c) For purposes of performing the functions specified in
subdivision (b), funds for the regional consortia shall be
distributed based on the number of Title I schools, the pupil
enrollment in those schools, and the number of school districts in
each region that have been identified as being in need of improvement
pursuant to Section 6316 of Title 20 of the United States Code.
(d) The regional consortia shall ensure that support is provided
in the following order of priority:
(1) To school districts or county offices of education with
schools that are subject to corrective action under Section 6316(b)
(7) of Title 20 of the United States Code.
(2) To school districts or county offices of education with
schools that are identified as being in need of improvement pursuant
to Section 6316(b) of Title 20 of the United States Code.
(3) To provide support and assistance to school districts and
county offices of education with schools participating under the
federal No Child Left Behind Act of 2001 that need support and
assistance to achieve the purposes of that act.
(4) To provide support and assistance to other school districts
and county offices of education with schools participating in a
program carried out under this chapter.
(e) In accordance with paragraph (4) of subdivision (d) of Section
52055.57, the Superintendent may recommend, and the state board may
approve, that a local educational agency that has been identified for
corrective action under the federal No Child Left Behind Act of 2001
contract with a district assistance and intervention team or other
technical assistance provider to receive technical assistance,
including, but not limited to, a needs assessment of the local
educational agency.
(1) The Superintendent shall develop, and the state board shall
approve, standards and criteria to be applied by a district
assistance and intervention team or other technical assistance
provider in carrying out its duties. The standards and criteria that
a district assistance and intervention team or other technical
assistance provider shall use in assessing a local educational agency
shall address, at a minimum, all of the following areas:
(A) Governance.
(B) Alignment of curriculum, instruction, and assessments to state
standards.
(C) Fiscal operations.
(D) Parent and community involvement.
(E) Human resources.
(F) Data systems and achievement monitoring.
(G) Professional development.
(2) Not later than 120 days after the assignment of a district
assistance and intervention team or other technical assistance
provider, or the next regularly scheduled meeting of the state board
following the expiration of the 120 days, the team shall complete a
report based on the findings from the needs assessment performed
pursuant to paragraph (1). The report shall include, at a minimum,
recommendations for improving the areas specified in paragraph (1)
that are found to need improvement. The report also shall address the
manner in which existing resources should be redirected to ensure
that the recommendations can be implemented.
(3) Not later than 30 days after completion of the report
specified in paragraph (2), the governing board of the local
educational agency may submit an appeal to the Superintendent to be
exempted from implementing one or more of the recommendations made in
the report. The Superintendent, with approval of the state board,
may exempt the local educational agency from complying with one or
more of the recommendations made in the report.
(4) Not later than 60 days after completion of the report, the
governing board of the local educational agency shall adopt the
report recommendations described in paragraph (2), as modified by any
exemptions granted by the Superintendent under paragraph (3), at a
regularly scheduled meeting of the governing board.
(f) A local educational agency that is required to contract with a
district assistance and intervention team or other technical
assistance provider pursuant to this section shall reserve funding
provided under subdivision (d) of Section 52055.57 to cover the
entire cost of the team or other technical assistance provider before
using that funding for other reform activities.
(g) Upon an evidence-based finding that a district assistance and
intervention team or other technical assistance provider has not
fulfilled its legal obligations pursuant to this section, the
Superintendent, with the approval of the state board, may remove the
district assistance and intervention team or other technical
assistance provider from the state list of eligible providers.
(h) The provisions of this section are declarative of technical
assistance requirements under the federal No Child Left Behind Act of
2001 outlined in Section 6316(b) and (c) and Section 6317(a) of
Title 20 of the United States Code.
(i) For purposes of this article, all references to schools shall
include charter schools.
SEC. 9. Section 56836.155 of the Education Code is amended to
read:
56836.155. (a) On or before November 2, 1998, the department, in
conjunction with the Legislative Analyst's Office, shall do the
following:
(1) Calculate an "incidence multiplier" for each special education
local plan area using the definition, methodology, and data provided
in the final report submitted by the American Institutes for
Research pursuant to Section 67 of Chapter 854 of the Statutes of
1997.
(2) Submit the incidence multiplier for each special education
local plan area and supporting data to the Department of Finance.
(b) The Department of Finance shall review the incidence
multiplier for each special education local plan area and the
supporting data, and report any errors to the department and the
Legislative Analyst's Office for correction.
(c) The Department of Finance shall approve the final incidence
multiplier for each special education local plan area by November 23,
1998.
(d) For the 1998-99 fiscal year and each fiscal year thereafter to
and including the 2008-09 fiscal year, the Superintendent shall
perform the following calculation to determine the adjusted
entitlement of each special education local plan area for the
incidence of disabilities:
(1) The incidence multiplier for the special education local plan
area shall be multiplied by the statewide target amount per unit of
average daily attendance for special education local plan areas
determined pursuant to Section 56836.11 for the fiscal year in which
the computation is made.
(2) The amount determined pursuant to paragraph (1) shall be added
to the statewide target amount per unit of average daily attendance
for special education local plan area determined pursuant to Section
56836.11 for the fiscal year in which the computation is made.
(3) Subtract the amount of funding for the special education local
plan area determined pursuant to paragraph (1) of subdivision (a) or
paragraph (1) of subdivision (b) of Section 56836.08, as appropriate
for the fiscal year in which the computation is made, or the
statewide target amount per unit of average daily attendance for
special education local plan areas determined pursuant to Section
56836.11 for the fiscal year in which the computation is made,
whichever is greater, from the amount determined pursuant to
paragraph (2). For the purposes of this paragraph for the 2002-03,
2003-04, 2004-05, 2005-06, 2006-07, 2007-08, and 2008-09 fiscal
years, the amount, if any, received pursuant to Section 56836.159
shall be excluded from the funding level per unit of average daily
attendance for a special education local plan area. If the result is
less than zero, the special education local plan area shall not
receive an adjusted entitlement for the incidence of disabilities.
(4) Multiply the amount determined in paragraph (3) by either the
average daily attendance reported for the special education local
plan area for the fiscal year in which the computation is made, as
adjusted pursuant to subdivision (a) of Section 56836.15, or the
average daily attendance reported for the special education local
plan area for the prior fiscal year, as adjusted pursuant to
subdivision (a) of Section 56826.15, whichever is less.
(5) If there are insufficient funds appropriated in the fiscal
year for which the computation is made for the purposes of this
section, the amount received by each special education local plan
area shall be prorated.
(e) For the 1997-98 fiscal year, the Superintendent shall perform
the calculation in paragraphs (1) to (3), inclusive, of paragraph (d)
only for the purposes of making the computation in paragraph (1) of
subdivision (d) of Section 56836.08, but the special education local
plan area shall not receive an adjusted entitlement for the incidence
of disabilities pursuant to this section for the 1997-98 fiscal
year.
SEC. 10. Section 60604 of the Education Code is amended to read:
60604. (a) The Superintendent shall design and implement,
consistent with the timetable and plan required pursuant to
subdivision (b), a statewide pupil assessment program consistent with
the testing requirements of this article in accordance with the
objectives set forth in Section 60602. That program shall include all
of the following:
(1) A plan for producing valid, reliable, and comparable
individual pupil scores in grades 2 to 11, inclusive, and a
comprehensive analysis of these scores based on the results of the
achievement test designated by the state board that assesses a broad
range of basic academic skills pursuant to the Standardized Testing
and Reporting (STAR) Program established by Article 4 (commencing
with Section 60640).
(2) A method of working with publishers to ensure valid, reliable,
and comparable individual, grade-level, school-level,
district-level, county-level, and statewide scores in grades 2 to 11,
inclusive.
(3) Statewide academically rigorous content and performance
standards that reflect the knowledge and skills that pupils will need
in order to succeed in the information-based, global economy of the
21st century. These skills shall not include personal behavioral
standards or skills, including, but not limited to, honesty,
sociability, ethics, or self-esteem.
(4) A statewide system that provides the results of testing in a
manner that reflects the degree to which pupils are achieving the
academically rigorous content and performance standards adopted by
the state board.
(5) The alignment of assessment with the statewide academically
rigorous content and performance standards adopted by the state
board.
(6) The active, ongoing involvement of parents, classroom
teachers, administrators, other educators, governing board members of
school districts, and the public in all phases of the design and
implementation of the statewide pupil assessment program.
(7) The development of a contract or contracts with a publisher or
publishers, after the approval of statewide academically rigorous
content standards by the state board, for the development of
performance standards and assessments of applied academic skills
designed to test pupils' knowledge of academic skills and abilities
to apply that knowledge and those skills in order to solve problems
and communicate.
(b) The Superintendent shall develop and annually update for the
Legislature a five-year cost projection, implementation plan, and
timetable for implementing the program described in subdivision (a).
The annual update shall be submitted on or before March 1 of each
year to the chairperson of the fiscal subcommittee considering budget
appropriations in each house. The update shall explain any
significant variations from the five-year cost projection for the
current year budget and the proposed budget.
(c) The Superintendent shall provide each school district with
guidelines for professional development that are designed to assist
classroom teachers to use the results of the assessments administered
pursuant to this chapter to modify instruction for the purpose of
improving pupil learning. These guidelines shall be developed in
consultation with classroom teachers and approved by the state board
before dissemination.
(d) The Superintendent and the state board shall consider comments
and recommendations from school districts and the public in the
development, adoption, and approval of assessment instruments.
(e) The results of the achievement test administered pursuant to
Article 4 (commencing with Section 60640) shall be returned to the
school district within the period of time specified by the state
board.
(f) This section shall become inoperative on July 1, 2011.
SEC. 11. Section 60605 of the Education Code is amended to read:
60605. (a) (1) (A) Not later than January 1, 1998, the state
board shall adopt statewide academically rigorous content standards,
pursuant to the recommendations of the Commission for the
Establishment of Academic Content and Performance Standards, in the
core curriculum areas of reading, writing, and mathematics to serve
as the basis for assessing the academic achievement of individual
pupils and of schools, school districts, and the California
educational system. Not later than November 1, 1998, the state board
shall adopt these standards in the core curriculum areas of
history/social science and science.
(B) The state board shall adopt statewide performance standards in
the core curriculum areas of reading, writing, mathematics,
history/social science, and science based on the recommendations made
by the Superintendent of a contractor or contractors.
(C) The state board shall require the contractor or contractors to
submit performance standards to the Superintendent and the state
board not later than a specified date that allows sufficient
opportunity for the Superintendent to make a recommendation to the
state board and for the state board to conduct regional hearings
prior to the adoption of the performance standards.
(2) (A) The state board may modify any proposed content standards
or performance standards prior to adoption and may adopt content and
performance standards in individual core curriculum areas as those
standards are submitted to the state board. The state performance
standards shall be established against specific grade level
benchmarks of academic achievement for each subject area tested and
shall be based on the knowledge and skills that pupils will need in
order to succeed in the information-based, global economy of the 21st
century. These skills shall not include personal behavioral
standards or skills, including, but not limited to, honesty,
sociability, ethics, or self-esteem. The standards adopted pursuant
to this section shall be for the purpose of guiding state decisions
regarding the development, adoption, and approval of assessment
instruments pursuant to this chapter and does not mandate any actions
or activities by school districts.
(B) Because these standards are models, the adoption of these
standards is not subject to the Administrative Procedure Act. This
subparagraph is declaratory of existing law.
(3) Before adopting academic content and performance standards,
the state board shall hold regional hearings for the purpose of
giving parents and other members of the public the opportunity to
comment on the proposed standards.
(b) (1) The state board shall ensure that the statewide assessment
system adopted pursuant to this chapter yields valid, reliable
individual pupil scores and, where applicable, aggregate school
scores, school district scores, and statewide scores of pupils and
assesses basic academic skills and content standards, including the
use of a direct writing assessment or other applied academic skills
if deemed valid and reliable and if resources are made available for
their use.
(2) This subdivision does not prevent the state board from
developing or adopting an assessment instrument that also contains
assessments of basic academic skills.
(c) To the extent feasible and as otherwise required, the state
board shall ensure that assessments developed, or contracted for
pursuant to Section 60642.5, by the state are aligned with the
statewide content and performance standards adopted pursuant to
subdivision (a). The department, with the approval of the state
board, periodically shall contract for a review of the achievement
test for conformance with these standards.
(d) After adopting statewide content and performance standards,
the state board shall review the existing curriculum frameworks for
conformity with the new statewide standards and shall modify the
curriculum frameworks where appropriate to bring them into alignment
with the standards.
(e) The state board shall adopt regulations for the conduct and
administration of the testing and assessment program.
(f) The state board shall adopt a regulation for minimum security
procedures that test and assessment publishers and school districts
must follow to ensure the security and integrity of test and
assessment questions and materials.
(g) This section shall become inoperative on July 1, 2011.
SEC. 12. Section 60605.6 of the Education Code is amended to read:
60605.6. Subject to the availability of funds in the annual
Budget Act for this purpose, the Superintendent, upon approval of the
state board, shall contract for the development and distribution of
workbooks, as follows:
(a) One workbook to be distributed to all pupils in grade 10. This
workbook shall contain information on the proficiency levels that
must be demonstrated by pupils on the high school exit examination
described in Chapter 9 (commencing with Section 60850). The workbook
also shall contain sample questions, with explanations describing how
these sample questions test pupil knowledge of the language arts and
mathematics content standards adopted by the state board pursuant to
Section 60605.
(b) Separate workbooks for each of grades 2 to 11, inclusive. Each
pupil in grades 2 to 11, inclusive, who is required to take the
achievement tests described in Section 60642.5 shall receive a copy
of the workbook designed for the same grade level in which the pupil
is enrolled. These workbooks shall contain material to assist pupils
and their parents with standards-based learning, including the grade
appropriate academic content standards adopted by the state board
pursuant to Section 60605 and sample questions that require knowledge
of these standards to answer. The workbooks also shall describe how
the sample questions test knowledge of the state board adopted
academic content standards.
(c) This section shall become inoperative on July 1, 2011.
SEC. 13. Section 60606 of the Education Code is amended to read:
60606. (a) After adopting an assessment of applied academic
skills for use in grades 4, 5, 8, and 10 pursuant to Section 60605,
the state board shall submit the instrument, once designated or
adopted, for review by the Statewide Pupil Assessment Review Panel,
which is hereby established.
(b) The panel shall consist of six members. Three members shall be
appointed by the Governor, one member shall be appointed by the
Senate Committee on Rules, one member shall be appointed by the
Speaker of the Assembly, and one member shall be appointed by the
Superintendent. A majority of the panel shall consist of parents
whose children attend public schools in the state in kindergarten and
grades 1 to 12, inclusive.
(c) Panel members shall serve two-year terms, without
compensation. No panel member shall serve more than two consecutive
terms.
(d) The panel shall review the instrument specified in subdivision
(a) in order to ensure that the content of the instrument complies
with the requirements of Section 60614. Notwithstanding any other
provision of law, the panel may meet in closed session with a
publisher for the purpose of addressing questions and clarifying
issues that relate to ensuring that the content of the publisher's
test or assessment, as the case may be, complies with the
requirements of Section 60614.
(e) The panel shall report its findings and recommendations to the
state board within 10 days of its receipt of the instrument. If the
panel fails to report within the required 10 days, the test or
assessment shall be deemed acceptable to the panel.
(f) This section shall become inoperative on July 1, 2011.
SEC. 14. Section 60616 of the Education Code is amended to read:
60616. Any achievement test adopted by the state board pursuant
to this chapter may be reviewed by any Member of the Legislature or
any member of the governing board of a school district, if the member
agrees in writing prior to the review to maintain the
confidentiality of the test.
SEC. 15. Section 60630 of the Education Code is amended to read:
60630. (a) The Superintendent shall prepare and submit an annual
report to the Legislature and the state board containing an analysis
of the results and test scores of the assessment of applied academic
skills adopted pursuant to subdivision (b) of Section 60605. The
report simultaneously shall be made available in an electronic medium
on the Internet. The analysis may include, but need not be limited
to, the following factors:
(1) Financial characteristics, including specially funded
programs.
(2) Pupil and parent characteristics.
(3) Staff characteristics.
(4) Instructional methodologies and materials.
(b) School districts shall submit to the department whatever
information the department deems necessary to carry out this section.
SEC. 16. Section 60640 of the Education Code is amended to read:
60640. (a) There is hereby established the Standardized Testing
and Reporting Program, to be known as the STAR Program.
(b) From the funds available for that purpose, each school
district, charter school, and county office of education shall
administer to each of its pupils in grades 2 to
11, inclusive, the standards-based achievement
test provided for in Section 60642.5. The state board shall establish
a testing period to provide that all schools administer these tests
to pupils at approximately the same time during the instructional
year, except as necessary to ensure test security and to meet the
final filing date.
(c) The publisher and the school district shall provide two makeup
days for the testing of previously absent pupils within the testing
period established by the state board in subdivision (b).
(d) The governing board of the school district may administer
achievement tests in grades other than those required by subdivision
(b) as it deems appropriate.
(e) Pursuant to Section 1412(a)(17) of Title 20 of the United
States Code, individuals with exceptional needs, as defined in
Section 56026, shall be included in the testing requirement of
subdivision (b) with appropriate accommodations in administration,
where necessary, and those individuals with exceptional needs who are
unable to participate in the testing, even with accommodations,
shall be given an alternate assessment.
(f) (1) At the option of the school district, pupils with limited
English proficiency who are enrolled in any of grades 2 to 11,
inclusive, may take a second achievement test in their primary
language. Primary language tests administered pursuant to this
subdivision and subdivision (g) shall be subject to the requirements
of subdivision (a) of Section 60641. These primary language tests
shall produce individual pupil scores that are valid and reliable.
(2) Notwithstanding any other law, the state board shall designate
for use, as part of this program, a single primary language test in
each language for which a test is available for grades 2 to 11,
inclusive, pursuant to the process used for designation of the
assessment chosen in the 1997-98 fiscal year, as specified in Section
60643, as applicable.
(3) (A) The department shall use funds made available pursuant to
Title VI of the federal No Child Left Behind Act of 2001 (20 U.S.C.
Sec. 6301 et seq.) and appropriated by the annual Budget Act for the
purpose of developing and adopting primary language assessments that
are aligned to the state academic content standards. Subject to the
availability of funds, primary language assessments shall be
developed and adopted for reading/language arts and mathematics in
the dominant primary language of limited-English-proficient pupils.
The dominant primary language shall be determined by the count in the
annual language census of the primary language of each
limited-English-proficient pupil enrolled in the California public
schools.
(B) Once a dominant primary language assessment is available for
use for a specific grade level, it shall be administered in place of
the assessment designated pursuant to paragraph (1) for that grade
level.
(C) In choosing a contractor to develop a primary language
assessment the state board shall consider the criteria for choosing a
contractor or test publisher as specified by Section 60643, and as
specified by Section 60642.5, as applicable.
(D) Subject to the availability of funds, the assessments shall be
developed in grade order starting with the lowest grade subject to
the STAR Program.
(E) If the state board contracts for the development of primary
language assessments or test items to augment an existing assessment,
the state shall retain ownership rights to the assessment and the
test items. With the approval of the state board, the department may
license the test for use in other states subject to a compensation
agreement approved by the Department of Finance.
(F) On or before January 1, 2006, the department shall submit to
the Legislature a report on the development and implementation of the
initial primary language assessments and recommendations on the
development and implementation of future assessments and funding
requirements.
(g) A pupil identified as limited English proficient pursuant to
the administration of a test made available pursuant to Section 60810
who is enrolled in any of grades 2 to 11, inclusive, and who either
receives instruction in his or her primary language or has been
enrolled in a school in the United States for less than 12 months
shall be required to take a test in his or her primary language if a
test is available.
(h) (1) The Superintendent shall apportion funds to school
districts to enable school districts to meet the requirements of
subdivisions (b), (e), (f), and (g).
(2) The state board annually shall establish the amount of funding
to be apportioned to school districts for each test administered and
annually shall establish the amount that each publisher shall be
paid for each test administered under the agreements required
pursuant to Section 60643. The amounts to be paid to the publishers
shall be determined by considering the cost estimates submitted by
each publisher each September and the amount included in the annual
Budget Act, and by making allowance for the estimated costs to school
districts for compliance with the requirements of subdivisions (b),
(e), (f), and (g).
(3) An adjustment to the amount of funding to be apportioned per
test shall not be valid without the approval of the Director of
Finance. A request for approval of an adjustment to the amount of
funding to be apportioned per test shall be submitted in writing to
the Director of Finance and the chairpersons of the fiscal committees
of both houses of the Legislature with accompanying material
justifying the proposed adjustment. The Director of Finance is
authorized to approve only those adjustments related to activities
required by statute. The Director of Finance shall approve or
disapprove the amount within 30 days of receipt of the request and
shall notify the chairpersons of the fiscal committees of both houses
of the Legislature of the decision.
(i) For purposes of making the computations required by Section 8
of Article XVI of the California Constitution, the appropriation for
the apportionments made pursuant to paragraph (1) of subdivision (h),
and the payments made to the publishers under the contracts required
pursuant to Section 60643 or subparagraph (C) of paragraph (1) of
subdivision (a) of Section 60605 between the department and the
contractor, are "General Fund revenues appropriated for school
districts," as defined in subdivision (c) of Section 41202, for the
applicable fiscal year, and included within the "total allocations to
school districts and community college districts from General Fund
proceeds of taxes appropriated pursuant to Article XIII B," as
defined in subdivision (e) of Section 41202, for that fiscal year.
(j) As a condition to receiving an apportionment pursuant to
subdivision (h), a school district shall report to the Superintendent
all of the following:
(1) The number of pupils enrolled in the school district in grades
2 to 11, inclusive.
(2) The number of pupils to whom an achievement test was
administered in grades 2 to 11, inclusive, in the school district.
(3) The number of pupils in paragraph (1) who were exempted from
the test at the request of their parents or guardians.
(k) The Superintendent and the state board are authorized and
encouraged to assist postsecondary educational institutions to use
the assessment results of the California Standards Tests, including,
but not limited to, the augmented California Standards Tests, for
academic credit, placement, or admissions processes.
(l) The Superintendent, with the approval of the state board,
annually shall release to the public test items from the
standards-based achievement tests pursuant to Section 60642.5
administered in previous years. The minimum number of test items
released per year shall be equal to 25 percent of the total number of
test items on the test administered in the previous year.
(m) This section shall become inoperative on July, 1, 2011.
SEC. 17. Section 60641 of the Education Code is amended to read:
60641. (a) The department shall ensure that school districts
comply with each of the following requirements:
(1) The standards-based achievement test provided for in Section
60642.5 is scheduled to be administered to all pupils during the
period prescribed in subdivision (b) of Section 60640.
(2) The individual results of each pupil test administered
pursuant to Section 60640 shall be reported, in writing, to the
parent or guardian of the pupil. The written report shall include a
clear explanation of the purpose of the test, the score of the pupil,
and the intended use by the school district of the test score. This
subdivision does not require teachers or other school district
personnel to prepare individualized explanations of the test score of
each pupil.
(3) (A) The individual results of each pupil test administered
pursuant to Section 60640 also shall be reported to the school and
teachers of a pupil. The school district shall include the test
results of a pupil in his or her pupil records. However, except as
provided in this section, individual pupil test results only may be
released with the permission of either the pupil's parent or guardian
if the pupil is a minor, or the pupil if the pupil has reached the
age of majority or is emancipated.
(B) Notwithstanding subparagraph (A), a pupil or his or her parent
or guardian may authorize the release of individual pupil results to
a postsecondary educational institution for the purpose of credit,
placement, or admission.
(4) The districtwide, school-level, and grade-level results of the
STAR Program in each of the grades designated pursuant to Section
60640, but not the score or relative position of any individually
ascertainable pupil, shall be reported to the governing board of the
school district at a regularly scheduled meeting, and the countywide,
school-level, and grade-level results for classes and programs under
the jurisdiction of the county office of education shall be
similarly reported to the county board of education at a regularly
scheduled meeting.
(b) The publisher of the standards-based achievement tests
provided for in Section 60642.5 shall make the individual pupil,
grade, school, school district, and state results available to the
department pursuant to paragraph (9) of subdivision (a) of Section
60643 by August 8 of each year in which the achievement test is
administered for those schools for which the last day of test
administration, including makeup days, is on or before June 25. The
department shall make the grade, school, school district, and state
results available on the Internet by August 15 of each year in which
the achievement test is administered for those schools for which the
last day of test administration, including makeup days, is on or
before June 25.
(c) The department shall take all reasonable steps to ensure that
the results of the test for all pupils who take the test by June 25
are made available on the Internet by August 15, as set forth in
subdivision (b).
(d) The department shall ensure that a California Standards Test
that is augmented for the purpose of determining credit, placement,
or admission of a pupil in a postsecondary educational institution
inform a pupil in grade 11 that he or she may request that the
results from that assessment be released to a postsecondary
educational institution.
SEC. 18. Section 60642 of the Education Code is repealed.
SEC. 19. Section 60642.5 of the Education Code is amended to read:
60642.5. (a) The Superintendent, with approval of the state
board, shall provide for the development of an assessment instrument,
to be called the California Standards Tests, that measures the
degree to which pupils are achieving the academically rigorous
content standards and performance standards, to the extent standards
have been adopted by the state board. These standards-based
achievement tests shall contain the subject areas specified in
paragraph (3) of subdivision (a) of Section 60603 for grades 2 to 8,
inclusive, and shall include an assessment in history/social science
in at least one elementary or middle school grade level selected by
the state board and science in at least one elementary or middle
school grade level selected by the state board, and the core
curriculum areas specified in paragraph (5) of subdivision (a) of
Section 60603 for grades 9 to 11, inclusive, except that
history-social science shall not be included in the grade 9
assessment unless the state board adopts academic content standards
for a grade 9 history-social science course, and shall include, at a
minimum, a direct writing assessment once in elementary school and
once in middle or junior high school and other items of applied
academic skill if deemed valid and reliable and if resources are made
available for their use.
(b) In approving a contract for the development or administration
of the California Standards Tests, the state board shall consider
each of the following criteria:
(1) The ability of the contractor to produce valid, reliable
individual pupil scores.
(2) The ability of the contractor to report results pursuant to
subdivision (a) of Section 60643 by August 8.
(3) The ability of the contractor to ensure alignment between the
standards-based achievement test and the academically rigorous
content and performance standards as those standards are adopted by
the state board. This criterion shall include the ability of the
contractor to implement a process to establish and maintain alignment
between the test items and the standards.
(4) The per pupil cost estimates of developing and, if
appropriate, administering the proposed assessment with a system to
facilitate the determination of future per pupil cost determinations.
(5) The procedures of the contractor to ensure the security and
integrity of test questions and materials.
(6) The experience of the contractor in successfully conducting
testing programs adopted and administered by other states. For
experience to be considered, the number of grades and pupils tested
shall be provided.
(c) The standards-based achievement tests may use items from other
tests.
SEC. 20. Section 60643 of the Education Code is amended to read:
60643. (a) To be eligible for consideration under Section 60642.5
by the state board, test publishers shall agree in writing each year
to meet the following requirements, as applicable, if selected:
(1) Enter into an agreement, pursuant to subdivision (e) or (f),
with the department by October 15 of that year.
(2) Align the standards-based achievement test provided for in
Section 60642.5 to the academically rigorous content and performance
standards adopted by the state board.
(3) Comply with subdivisions (c) and (d) of Section 60645.
(4) Provide valid and reliable individual pupil scores to parents
or guardians, teachers, and school administrators.
(5) Provide valid and reliable aggregate scores to school
districts and county boards of education in all of the following
forms and formats:
(A) Grade level.
(B) School level.
(C) District level.
(D) Countywide.
(E) Statewide.
(F) Comparison of statewide scores relative to other states.
(6) Provide disaggregated scores, based on
limited-English-proficient status and nonlimited-English-proficient
status. For purposes of this section, pupils with
"nonlimited-English-proficient status" shall include the total of
those pupils who are English-only pupils, fluent-English-proficient
pupils, and redesignated fluent-English-proficient pupils. These
scores shall be provided to school districts and county boards of
education in the same forms and formats listed in paragraph (5).
(7) Provide disaggregated scores by pupil gender and ethnicity and
provide disaggregated scores based on whether pupils are
economically disadvantaged or not. These disaggregated scores shall
be in the same forms and formats as listed in paragraph (5). In any
one year, the disaggregation shall entail information already being
collected by school districts, county offices of education, or
charter schools.
(8) Provide disaggregated scores for pupils who have
individualized education programs and have enrolled in special
education, to the extent required by federal law. These scores shall
be provided in the same forms and formats listed in paragraph (5).
This section shall not be construed to exclude the scores of special
education pupils from any state or federal accountability system.
(9) Provide information listed in paragraphs (5), (6), (7), and
(8) to the department and the state board in the medium requested by
each entity, respectively.
(b) It is the intent of the Legislature that the publisher work
with the Superintendent and the state board in developing a
methodology to disaggregate statewide scores as required in
paragraphs (6) and (7) of subdivision (a), and in determining which
variable indicated on the STAR testing document shall serve as a
proxy for "economically disadvantaged" status pursuant to paragraph
(7) of subdivision (a).
(c) Access to information about individual pupils or their
families shall be granted to the publisher only for purposes of
correctly associating test results with the pupils who produced those
results or for reporting and disaggregating test results as required
by this section. School districts are prohibited from excluding a
pupil from the test if a parent or parents decline to disclose
income. This chapter does not abridge or deny rights to
confidentiality contained in the federal Family Educational Rights
and Privacy Act of 1974 (20 U.S.C. Sec. 1232g) or other applicable
state and federal law that protect the confidentiality of information
collected by educational institutions.
(d) Notwithstanding any other law, the publisher of the
standards-based achievement test provided for in Section 60642.5 or
any contractor under subdivision (f) shall comply with all of the
conditions and requirements enumerated in subdivision (a), as
applicable, to the satisfaction of the state board.
(e) (1) A publisher shall not provide a test described in Section
60642.5 or 60650 or in subdivision (f) of Section 60640 for use in
California public schools, unless the publisher enters into a written
contract with the department as set forth in this subdivision.
(2) The department shall develop, and the state board shall
approve, a contract to be entered into with a publisher pursuant to
paragraph (1). The department may develop the contract through
negotiations with the publisher.
(3) For purposes of the contracts authorized pursuant to this
subdivision, the department is exempt from the requirements of Part 2
(commencing with Section 10100) of Division 2 of the Public Contract
Code and from the requirements of Article 6 (commencing with Section
999) of Chapter 6 of Division 4 of the Military and Veterans Code.
(4) The contracts shall include provisions for progress payments
to the publisher for work performed or costs incurred in the
performance of the contract. Not less than 10 percent of the amount
budgeted for each separate and distinct component task provided for
in each contract shall be withheld pending final completion of all
component tasks by that publisher. The total amount withheld pending
final completion shall not exceed 10 percent of the total contract
price.
(5) The contracts shall require liquidated damages to be paid by
the publisher in the amount of up to 10 percent of the total cost of
the contract for any component task that the publisher through its
own fault or that of its subcontractors fails to substantially
perform by the date specified in the agreement.
(6) The contracts shall establish the process and criteria by
which the successful completion of each component task shall be
recommended by the department and approved by the state board.
(7) The publishers shall submit, as part of the contract
negotiation process, a proposed budget and invoice schedule, that
includes a detailed listing of the costs for each component task and
the expected date of the invoice for each completed component task.
(8) The contracts shall specify the following component tasks, as
applicable, that are separate and distinct:
(A) Development of new tests or test items as required by
paragraph (2) of subdivision (a).
(B) Test materials production or publication.
(C) Delivery of test materials to school districts.
(D) Test processing, scoring, and analyses.
(E) Reporting of test results to the school districts, including,
but not limited to, all reports specified in this section.
(F) Reporting of test results to the department, including, but
not limited to, the electronic files required pursuant to this
section.
(G) All other analyses or reports required by the Superintendent
to meet the requirements of state and federal law and set forth in
the agreement.
(9) The contracts shall specify the specific reports and data
files, if any, that are to be provided to school districts by the
publisher and the number of copies of each report or file to be
provided.
(10) The contracts shall specify the means by which any delivery
date for materials to each school district shall be verified by the
publisher and the school district.
(11) School districts may negotiate a separate agreement with the
publisher for any additional materials or services not within the
contracts specified in this subdivision, including, but not limited
to, the administration of the tests to pupils in grade levels other
than grades 2 to 11, inclusive. Any separate agreement is not within
the scope of the contract specified in this subdivision.
(f) The department, with approval of the state board, may enter
into a separate contract for the development or administration of a
test authorized pursuant to this part, including, but not limited to,
item development, coordination of tests, assemblage of tests or test
items, scoring, or reporting. The liquidated damages provision set
forth in paragraph (5) of subdivision (e) shall apply to a contract
entered into pursuant to this subdivision.
(g) This section shall become inoperative on July, 1, 2011.
SEC. 21. Section 60644 of the Education Code is repealed.
SEC. 22. Section 60645 of the Education Code is amended to read:
60645. (a) The panel established pursuant to Section 60606 shall
review the standards-based achievement test provided for in Section
60642.5 and items identified in subdivision (d) for compliance with
Section 60614.
(b) Test questions or test content identified by the panel to be
out of compliance with Section 60614 shall be recommended for
deletion or replacement pursuant to subdivision (e) of Section 60606.
(c) The state board shall ensure that any question or content not
in compliance with Section 60614 is deleted from the standards-based
achievement test provided for in Section 60642.5.
(d) If necessary to maintain the requirements of Section 60642.5,
the publisher shall replace deleted test content with revisions that
comply with Section 60614 as required by the state board pursuant to
subdivision (c).
SEC. 23. Section 60647 of the Education Code is amended to read:
60647. An action to challenge a provision of this article or a
determination made by the state board under this article, shall be
filed and adjudicated pursuant to Sections 860 to 870, inclusive, of
the Code of Civil Procedure. No exercise of discretion by the state
board in its administration of this article or exercise of its
discretion pursuant to Section 60605 shall be overturned absent a
finding that the state board acted in an arbitrary and capricious
manner.
SEC. 24. Section 69521.3 of the Education Code is amended to read:
69521.3. (a) The Director of Finance is hereby authorized to act
as agent for the state and, in that capacity, to sell the state
student loan guarantee program assets and liabilities not retained by
the Student Aid Commission to an entity that the director, in
consultation with the Treasurer, determines will provide the best
combination of each of the following:
(1) The highest price for those state student loan guarantee
program assets and liabilities.
(2) The greatest security for the payment of the purchase price.
(3) Demonstrated competence and professional qualifications
necessary for the continued satisfactory performance of student loan
guarantee services.
(4) The approval of the Secretary of Education.
(5) The quality of student services offered, including, but not
necessarily limited to, borrower training in budgeting and financial
management, including debt management and other forms of financial
literacy.
(6) Borrower transparency or disclosure policies for products or
services, or both, offered to students outside of the federal student
loan programs.
(b) Notwithstanding any other provision of law, the sale process
shall include the steps the director, in consultation with the
Treasurer, deems necessary or convenient to achieve the ends set
forth in this section. The process shall include, but not necessarily
be limited to, all of the following:
(1) The satisfaction of criteria established by the director, in
consultation with the Treasurer, consistent with achieving a
combination of the best price for those state student loan guarantee
program assets and liabilities and the continued operation of student
loan guarantee services for California under the Federal Family
Education Loan Program. These criteria shall include any pertinent
requirements of the Secretary of Education.
(2) A Notice of Request for Qualifications sent by the Director of
Finance to each firm currently acting as a state student loan
guarantee agency under the Federal Family Education Loan Program and
any entity proposed by the Secretary of Education, and advertised in
the State Contracts Register pursuant to Sections 14827.1 and 14827.2
of the Government Code. This notice shall include a description of
the state student loan guarantee program, a summary description of
the state student loan guarantee program assets and liabilities
offered for sale, and a description of the due diligence review
process to provide potential purchasers with further information
regarding the state student loan guarantee program assets and
liabilities offered for sale, the selection criteria on which the
transaction will be based, the submission requirements and deadlines,
and a Department of Finance contact name and telephone number for
more information. A copy of the Notice of Request for Qualifications
shall be provided to the Joint Legislative Budget Committee within
seven days of transmittal to state student loan guarantee agencies.
(3) The evaluation
by the director, in consultation with the Treasurer, of all
statements timely submitted in response to the Notice of Request for
Qualifications sent pursuant to paragraph (2), using the criteria
contained in the notice, and, based on those statements, the
establishment of a qualified purchasers list.
SEC. 25. Section 69521.4 of the Education Code is amended to read:
69521.4. (a) If, after seeking the advice of, and in active
participation with, the Treasurer, the Director of Finance determines
that an alternative arrangement to the sale of the state student
loan guarantee program assets and liabilities may be financially
beneficial to the state, the Director of Finance is also hereby
authorized to enter into an arrangement other than that authorized in
Section 69521.3, for the purpose of maximizing the value of the
state student loan guarantee program assets and liabilities. This
arrangement may take any form the director, in consultation with the
Treasurer, deems advisable to provide the best combination of each of
the following:
(1) The greatest value to the General Fund.
(2) The greatest financial security for achieving value to the
General Fund.
(3) The continued satisfactory performance of student loan
guarantee services.
(4) The approval of the United States Secretary of Education, to
the extent required by Public Law 94-482, or subsequent federal
regulations.
(5) The quality of student services offered, including, but not
necessarily limited to, borrower training in budgeting and financial
management, including debt management and other forms of financial
literacy.
(6) Borrower transparency or disclosure policies for products or
services, or both, offered to students outside of the federal student
loan programs.
(b) Notwithstanding any other provision of law, this process shall
include the steps the Director of Finance, in consultation with the
Treasurer, deems necessary or convenient to achieve the ends set
forth in this section. The process shall include, but not necessarily
be limited to, all of the following:
(1) The satisfaction of the established criteria consistent with
achieving a combination of the greatest value to the General Fund and
the continued operation of student loan guarantee services for
California under the Federal Family Education Loan Program. The
criteria shall include any pertinent requirements of the Secretary of
Education.
(2) A Notice of Request for Qualifications sent by the director to
each nonprofit entity currently acting as a state student loan
guaranty agency under the Federal Family Education Loan Program, any
entity known to the director to be acting as a servicing agent for a
state student loan guaranty agency, and any nonprofit entity proposed
by the Secretary of Education, and advertised in the State Contracts
Register pursuant to Sections 14827.1 and 14827.2 of the Government
Code. The notice shall include a description of the state student
loan guarantee program, a summary description of the state student
loan guarantee program assets and liabilities, and a description of
the due diligence review process to provide further information
regarding the state student loan guarantee program assets and
liabilities, the selection criteria on which the transaction will be
based, submission requirements and date, and a Department of Finance
contact name and phone number for more information. A copy of the
Notice of Request for Qualifications shall be provided to the Joint
Legislative Budget Committee within seven days of transmittal to
state student loan guarantee agencies.
(3) The evaluation by the director, in consultation with the
Treasurer, of all statements timely submitted in response to the
Notice of Request for Qualifications, using the criteria contained in
the notice, and, based on the statements, the establishment of a
qualified purchasers list.
SEC. 26. Section 69521.5 of the Education Code is amended to read:
69521.5. (a) The Director of Finance is authorized to take all
actions that he or she deems to be necessary or convenient to
accomplish any of the following:
(1) To preserve the state student loan guarantee program assets,
pending consummation of their sale or the consummation of any other
transaction, to maximize the value of the state student loan
guarantee program to the state, including, without limitation, as
authorized in Sections 69522, 69526, and 69766.
(2) To engage in negotiations with, and provide sufficient
information regarding the state student loan guarantee assets and
liabilities to, potential purchasers or any potential transferee
guaranty program operator.
(3) To either consummate the sale of, and transfer, the state
student loan guarantee program assets and liabilities not retained to
the Student Aid Commission to the transferee guarantee agency, or to
consummate the agreement with the transferee guaranty program
operator.
(4) To seek and negotiate with the United States Secretary of
Education the designation of any alternative state student loan
guarantee agency for California under the Federal Family Education
Loan Program or the approval of the Secretary of Education of any
transferee guaranty program operator to the extent required by Public
Law 94-82, or subsequent federal regulations.
(5) To transfer the Federal Student Loan Reserve Fund to any
transferee guaranty agency in a manner that is consistent with the
intentions of the United States Secretary of Education.
(6) To transfer any of the state student loan guarantee program
assets in the form of cash or investments not transferred to any
transferee guaranty agency or transferee guarantee program operator
directly to the General Fund.
(7) To retain any state student loan guarantee program assets
determined by the director to be necessary or appropriate for the
purposes of the Student Aid Commission.
(b) In order to accomplish the purposes of this article, the
Director of Finance shall do all of the following:
(1) Notify the Chairperson of the Joint Legislative Budget
Committee and the chairpersons of the Senate and Assembly Budget
Committees of the determination of the Director of Finance to proceed
with a transaction other than the sale of the state student loan
guarantee program assets and liabilities pursuant to Section 69521.3,
providing that notice no later than 30 days prior to the
consummation of the transaction with the transferee guarantee program
operator.
(2) Upon the consummation of the sale of the state student loan
guarantee program assets to a transferee guaranty agency, the
Director of Finance shall notify the Secretary of State and the
Chairperson of the Joint Legislative Budget Committee.
(3) Upon the consummation of a transaction authorized by this
article with a transferee guarantee program operator, the Director of
Finance shall notify the Secretary of State and the Chairperson of
the Joint Legislative Budget Committee.
(c) In order to accomplish the purposes of this article:
(1) The Student Aid Commission shall cooperate fully with the
Director of Finance and, in particular, take all steps to preserve
the state student loan guarantee program assets deemed necessary or
convenient by the Director of Finance, including, without limitation,
as set forth in Sections 69522, 69526, and 69766.
(2) The Student Aid Commission shall direct the auxiliary
organization to cooperate fully with the director.
(3) Until the consummation of the sale or other transaction to
maximize the value of the state student loan guarantee program to the
state, all of the actions, approvals, and directions of the Student
Aid Commission affecting the state student loan guarantee program
shall be effective only upon the approval of the Director of Finance.
(4) Notwithstanding any provision of the Nonprofit Public Benefit
Corporation Law (Part 2 (commencing with Section 5110) of Division 2
of Title 1 of the Corporations Code), the auxiliary organization
shall, as directed by the Student Aid Commission under paragraph (2),
cooperate fully with the Director of Finance.
SEC. 27. Section 69521.10 of the Education Code is amended to
read:
69521.10. (a) The Director of Finance, in consultation with the
Treasurer, shall select a firm or individual to provide advisory
services based on demonstrated competence and professional
qualifications necessary for the satisfactory performance of the
services required, in the manner described in this section.
(b) The Director of Finance and the Treasurer shall establish
selection criteria for selecting an advisor. The criteria may
include, but are not necessarily limited to, factors such as
professional excellence, demonstrated competence, specialized
experience in performing similar services, education and experience
of key personnel to be assigned, staff capability, ability to meet
schedules, nature and quality of similar completed work of the firm
or individual, reliability and continuity of the firm or individual,
and other considerations deemed by the director and the Treasurer to
be relevant and necessary to the performance of advisory services.
(c) The Director of Finance, for the purposes of obtaining
services under this section, shall send a Notice of Request for
Qualifications to firms and individuals in the underwriter and
financial advisor pools of the Treasurer. The director shall publish
this notice in the State Contracts Register pursuant to Sections
14827.1 and 14827.2 of the Government Code. The notice shall include
a description of the advisory services required, the selection
criteria based on which the contract award will be made, submission
requirements and deadlines, and a Department of Finance contact name
and telephone number for more information. A copy of the Notice of
Request for Qualifications shall be provided to the Joint Legislative
Budget Committee within seven days of publication in the State
Contracts Register.
(d) (1) After the final response date stated in the Notice of
Request for Qualifications, the Director of Finance and the Treasurer
shall review the responses submitted, and shall evaluate them using
the criteria contained in the notice. The director and the Treasurer
shall rank, in order of preference based on the criteria contained in
the notice, the firm or individuals determined to be qualified to
perform the required services.
(2) The Director of Finance and the Treasurer, or their designees,
may interview any of the qualified firms or individuals regarding
the experience and qualifications of those firms or individuals, as
well as anticipated concepts and the benefits of alternative methods
of furnishing the required services.
(e) (1) Following the interviews, if any, held pursuant to
subdivision (d), the Director of Finance and the Treasurer shall
adjust the ranking of the qualified individuals or firms to reflect
those firms or individuals deemed to be the most highly qualified to
perform the required services.
(2) The Director of Finance, in consultation with the Treasurer,
shall enter into negotiations with the firm or individual most highly
ranked pursuant to paragraph (1). If negotiations are concluded
successfully, the director shall enter into a contract. If the
director, in his or her sole discretion, concludes that the
negotiations are unsuccessful, the director shall terminate the
negotiations, and begin new negotiations, in consultation with the
Treasurer, with the other firms or individuals ranked pursuant to
paragraph (1) in order of their ranking, and either contract with or
terminate negotiations with each next most highly ranked firm or
individual.
(3) If, after pursuing the negotiation process set forth in
paragraph (2), the Director of Finance has been unable to negotiate a
satisfactory contract at fair and reasonable compensation, the
director may reinstitute the selection process prescribed in this
section, commencing with the issuance of a new Notice of Request for
Qualifications.
(4) The Director of Finance shall notify the Joint Legislative
Budget Committee in writing within seven days of entering into a
contract with an individual or firm pursuant to paragraph (2).
SEC. 28. Section 69521.11 of the Education Code is amended to
read:
69521.11. (a) The Director of Finance shall notify the Joint
Legislative Budget Committee in writing upon his or her determination
that neither the sale nor any other transaction authorized by this
article is anticipated to achieve the purposes of this article.
(b) The Director of Finance shall cease those activities he or she
is authorized or directed to undertake pursuant to this article and
Sections 69522, 69526, and 69766 upon the earlier of:
(1) The 30th day following written notice by the director to the
Chairperson of the Joint Legislative Budget Committee pursuant to
subdivision (a).
(2) January 10, 2011.
SEC. 29. Section 69522 of the Education Code is amended to read:
69522. (a) (1) The commission may establish an auxiliary
organization for the purpose of providing operational and
administrative services for the participation by the commission in
the Federal Family Education Loan Program, or for other activities
approved by the commission and determined by the commission to be all
of the following:
(A) Related to student financial aid.
(B) Consistent with the general mission of the commission.
(C) Consistent with the purposes of the federal Higher Education
Act of 1965 (Public Law 89-329) and amendments to that act.
(2) The activities approved by the commission under this
subdivision shall not include either of the following:
(A) The issuance of bonds.
(B) Loan origination or loan capitalization activities. This
paragraph shall not preclude the commission or the auxiliary
organization from undertaking either of the following:
(i) Other permitted activities that are related to student
financial aid in partnership with institutions that conduct loan
origination or loan capitalization activities.
(ii) Loan origination or capitalization activities authorized
pursuant to an agreement with the United States Secretary of
Education for the lender-of-last-resort program.
(b) The auxiliary organization shall be established and maintained
as a nonprofit public benefit corporation subject to the Nonprofit
Public Benefit Corporation Law in Part 2 (commencing with Section
5110) of Division 2 of Title 1 of the Corporations Code, except that,
if there is a conflict between this article and the Nonprofit Public
Benefit Corporation Law, this article shall prevail.
(c) (1) The commission shall maintain its responsibility for
financial aid program administration, policy leadership program
evaluation, and information development and coordination. The
auxiliary organization shall provide operational and support services
essential to the administration of the Federal Family Education Loan
Program and other permitted activities that are related to student
financial aid, if those services are determined by the commission to
be consistent with the overall mission of the commission.
(2) On or after the operative date of Article 2.4 (commencing with
Section 69521), the commission shall not authorize the auxiliary
organization to perform any new or additional services except those
deemed by the Director of Finance to be necessary or convenient
either for the operation of the state student loan guarantee program,
as defined in Section 69521.2, or to accomplish the goal of
maximizing the value of the state student loan guarantee program
assets and liabilities pursuant to Article 2.4 (commencing with
Section 69521).
(3) The implementation and effectuation of the auxiliary
organization shall be carried out so as to enhance the administration
and delivery of commission programs and services. The commission
shall conduct regular performance evaluations of the operation of
auxiliary organizations in furtherance of its fiscal and fiduciary
responsibilities for approved programs.
(d) (1) (A) The operations of the auxiliary organization shall be
conducted in conformity with an operating agreement approved annually
by the commission. On and after January 1, 2002, the commission may
approve an operating agreement for a period not to exceed five years.
Prior to approval, the commission shall provide a copy of the
proposed operating agreement to the Department of Finance and the
Joint Legislative Budget Committee for their review and comment. The
operations of the auxiliary organization shall be limited to services
prescribed in that agreement.
(B) On or after the operative date of Article 2.4 (commencing with
Section 69521), the commission shall not approve any operating
agreement that permits the auxiliary organization to perform any new
or additional services, except those deemed by the Director of
Finance to be necessary or convenient either for the operation of the
state student loan guarantee program, as defined in Section 69521.2,
or to accomplish the goal of maximizing the value of the state
student loan guarantee program assets and liabilities pursuant to
Article 2.4 (commencing with Section 69521).
(2) Prior to approval of any amendment to an existing operating
agreement or any new operating agreement with an auxiliary
organization or subsidiary auxiliary organization for the purpose of
delineating new services or activities authorized pursuant to
subdivision (a), the commission shall provide the Director of Finance
and the Joint Legislative Budget Committee with at least 45 days
advance notice in writing that includes a description of the proposed
operating agreement. If the Director of Finance or the Joint
Legislative Budget Committee notifies the commission regarding issues
of concern with the proposed operating agreement, the commission
shall convene a meeting of appropriate representatives from the
commission, the Department of Finance, and the Legislature to resolve
those issues.
(e) The commission shall oversee the development and operations of
the auxiliary organization in a manner that ensures broad public
input and consultation with representatives of the financial aid
community, colleges and universities, and state agencies.
SEC. 30. Section 69561 of the Education Code is amended to read:
69561. (a) The Student Opportunity and Access Program is
administered by the Student Aid Commission.
(b) The Student Aid Commission may apportion funds on a progress
payment schedule for the support of projects designed to increase the
accessibility of postsecondary educational opportunities for any of
the following elementary and secondary school pupils:
(1) Pupils who are from low-income families.
(2) Pupils who would be the first in their families to attend
college.
(3) Pupils who are from schools or geographic regions with
documented low-eligibility or college participation rates.
(c) These projects shall primarily do all of the following:
(1) Increase the availability of information for these pupils on
the existence of postsecondary schooling and work opportunities.
(2) Raise the achievement levels of these pupils so as to increase
the number of high school graduates eligible to pursue postsecondary
learning opportunities.
(d) Projects may assist community college students in transferring
to four-year institutions, to the extent that project resources are
available.
(e) Projects may provide assistance to low-income fifth and sixth
grade pupils and their parents in order to implement outreach efforts
designed to use the future availability of financial assistance as a
means of motivating pupils to stay in school and complete college
preparatory courses.
(f) Projects may provide assistance to low-income middle and high
school pupils and their parents in order to implement outreach
efforts designed to use the future availability of financial
assistance as a means of motivating pupils to stay in school by
promoting career technical education public awareness. Projects shall
promote the value of career technical education, available career
programs in public schools and postsecondary segments with sequenced
courses beginning in high school and continuing into postsecondary
education, and the resulting career opportunities.
(g) Each project shall be proposed and operated through a
consortium that involves at least one secondary school district
office, at least one four-year college or university, at least one
community college, and at least one of the following agencies:
(1) A nonprofit educational, counseling, or community agency.
(2) A private vocational or technical school accredited by a
national, state, or regional accrediting association recognized by
the United States Department of Education.
(h) The commission, in awarding initial project grants, shall give
priority to proposals developed by more than three eligible
agencies. Projects shall be located throughout the state in order to
provide access to program services in rural, urban, and suburban
areas.
(i) The governing board of each project, comprising at least one
representative from each entity in the consortium, shall establish
management policy, provide direction to the project director, set
priorities for budgetary decisions that reflect the specific needs of
the project, and assume responsibility for maintaining the required
level of matching funds, including solicitations from the private
sector and corporate sources.
(j) Prior to receiving a project grant, each consortium shall
conduct a planning process and submit a comprehensive project
proposal to include, but not be limited to, the following
information:
(1) The agencies participating in the project.
(2) The pupils to be served by the project.
(3) The ways in which the project will reduce duplication and
related costs.
(4) The methods for assessing the project's impact.
(k) Each project shall include the direct involvement of secondary
school staff in the daily operations of the project, with preference
in funding to those projects that effectively integrate the
objectives of the Student Opportunity and Access Program with those
of the school district in providing services that are essential to
preparing pupils for postsecondary education.
(l) Each project shall maintain within the project headquarters a
comprehensive pupil-specific information system on pupils receiving
services through the program in grades 11 and 12 at secondary schools
within the participating districts. This information shall be
maintained in a manner consistent with the law relating to pupil
records.
(m) At least 30 percent or the equivalent of each project grant
shall be allocated for stipends to peer advisers and tutors who meet
all of the following criteria:
(1) Work with secondary school pupils.
(2) Are currently enrolled in a college or other postsecondary
school as an undergraduate or graduate student.
(3) Have demonstrated financial need for the stipend.
(n) Each project should work cooperatively with other projects in
the program and with the commission to establish viable student
services and sound administrative procedures and to ensure
coordination of the activities of the project with existing
educational opportunity programs. The Student Aid Commission may
develop additional regulations regarding the awarding of project
grants and criteria for evaluating the effectiveness of the
individual projects.
SEC. 31. Section 76300 of the Education Code is amended to read:
76300. (a) The governing board of each community college district
shall charge each student a fee pursuant to this section.
(b) (1) The fee prescribed by this section shall be twenty dollars
($20) per unit per semester, effective with the spring term of the
2006-07 academic year.
(2) The board of governors shall proportionately adjust the amount
of the fee for term lengths based upon a quarter system, and also
shall proportionately adjust the amount of the fee for summer
sessions, intersessions, and other short-term courses. In making
these adjustments, the board of governors may round the per unit fee
and the per term or per session fee to the nearest dollar.
(c) For the purposes of computing apportionments to community
college districts pursuant to Section 84750, the board of governors
shall subtract, from the total revenue owed to each district, 98
percent of the revenues received by districts from charging a fee
pursuant to this section.
(d) The board of governors shall reduce apportionments by up to 10
percent to any district that does not collect the fees prescribed by
this section.
(e) The fee requirement does not apply to any of the following:
(1) Students enrolled in the noncredit courses designated by
Section 84757.
(2) California State University or University of California
students enrolled in remedial classes provided by a community college
district on a campus of the University of California or a campus of
the California State University, for whom the district claims an
attendance apportionment pursuant to an agreement between the
district and the California State University or the University of
California.
(3) Students enrolled in credit contract education courses
pursuant to Section 78021, if the entire cost of the course,
including administrative costs, is paid by the public or private
agency, corporation, or association with which the district is
contracting and if these students are not included in the calculation
of the full-time equivalent students (FTES) of that district.
(f) The governing board of a community college district may exempt
special part-time students admitted pursuant to Section 76001 from
the fee requirement.
(g) (1) The fee requirements of this section shall be waived for
any student who, at the time of enrollment, is a recipient of
benefits under the Temporary Assistance to Needy Families program,
the Supplemental Security Income/State Supplementary Program, or a
general assistance program or has demonstrated financial need in
accordance with the methodology set forth in federal law or
regulation for determining the expected family contribution of
students seeking financial aid.
(2) The governing board of a community college district also shall
waive the fee requirements of this section for any student who
demonstrates eligibility according to income standards established by
regulations of the board of governors.
(3) Paragraphs (1) and (2) may be applied to a student enrolled in
the 2005-06 academic year if the student is exempted from
nonresident tuition under paragraph (3) of subdivision (a) of Section
76140.
(h) The fee
requirements of this section shall be waived for any student who, at
the time of enrollment, is a dependent, or surviving spouse who has
not remarried, of any member of the California National Guard who, in
the line of duty and while in the active service of the state, was
killed, died of a disability resulting from an event that occurred
while in the active service of the state, or is permanently disabled
as a result of an event that occurred while in the active service of
the state. "Active service of the state," for the purposes of this
subdivision, refers to a member of the California National Guard
activated pursuant to Section 146 of the Military and Veterans Code.
(i) The fee requirements of this section shall be waived for any
student who is the surviving spouse or the child, natural or adopted,
of a deceased person who met all of the requirements of Section
68120.
(j) The fee requirements of this section shall be waived for any
student in an undergraduate program, including a student who has
previously graduated from another undergraduate or graduate program,
who is the dependent of any individual killed in the September 11,
2001, terrorist attacks on the World Trade Center and the Pentagon or
the crash of United Airlines Flight 93 in southwestern Pennsylvania,
if that dependent meets the financial need requirements set forth in
Section 69432.7 for the Cal Grant A Program and either of the
following applies:
(1) The dependent was a resident of California on September 11,
2001.
(2) The individual killed in the attacks was a resident of
California on September 11, 2001.
(k) A determination of whether a person is a resident of
California on September 11, 2001, for purposes of subdivision (j)
shall be based on the criteria set forth in Chapter 1 (commencing
with Section 68000) of Part 41 for determining nonresident and
resident tuition.
() (1) "Dependent," for purposes of subdivision (j), is a person
who, because of his or her relationship to an individual killed as a
result of injuries sustained during the terrorist attacks of
September 11, 2001, qualifies for compensation under the federal
September 11th Victim Compensation Fund of 2001 (Title IV (commencing
with Section 401) of Public Law 107-42).
(2) A dependent who is the surviving spouse of an individual
killed in the terrorist attacks of September 11, 2001, is entitled to
the waivers provided in this section until January 1, 2013.
(3) A dependent who is the surviving child, natural or adopted, of
an individual killed in the terrorist attacks of September 11, 2001,
is entitled to the waivers under subdivision (j) until that person
attains the age of 30 years.
(4) A dependent of an individual killed in the terrorist attacks
of September 11, 2001, who is determined to be eligible by the
California Victim Compensation and Government Claims Board, is also
entitled to the waivers provided in this section until January 1,
2013.
(m) (1) It is the intent of the Legislature that sufficient funds
be provided to support the provision of a fee waiver for every
student who demonstrates eligibility pursuant to subdivisions (g) to
(j), inclusive.
(2) From funds provided in the annual Budget Act, the board of
governors shall allocate to community college districts, pursuant to
this subdivision, an amount equal to 2 percent of the fees waived
pursuant to subdivisions (g) to (j), inclusive. From funds provided
in the annual Budget Act, the board of governors shall allocate to
community college districts, pursuant to this subdivision, an amount
equal to ninety-one cents ($0.91) per credit unit waived pursuant to
subdivisions (g) to (j), inclusive. It is the intent of the
Legislature that funds provided pursuant to this subdivision be used
to support the determination of financial need and delivery of
student financial aid services, on the basis of the number of
students for whom fees are waived. It also is the intent of the
Legislature that the funds provided pursuant to this subdivision
directly offset mandated costs claimed by community college districts
pursuant to Commission on State Mandates consolidated Test Claims
99-TC-13 (Enrollment Fee Collection) and 00-TC-15 (Enrollment Fee
Waivers). Funds allocated to a community college district for
determination of financial need and delivery of student financial aid
services shall supplement, and shall not supplant, the level of
funds allocated for the administration of student financial aid
programs during the 1992-93 fiscal year.
(n) The board of governors shall adopt regulations implementing
this section.
SEC. 32. Notwithstanding any other law, the sum of twelve million
five hundred thousand dollars ($12,500,000) is hereby appropriated
from the Public Interest Research, Development, and Demonstration
Fund to the Chancellor of the California Community Colleges.
(a) Of the amount appropriated in this section, the Chancellor of
the California Community Colleges shall transfer twelve million
dollars ($12,000,000) to the State Department of Education for
expenditure in one-time funds for local grants to be allocated
pursuant to Article 5 (commencing with Section 54690) of Chapter 9 of
Part 29 of Division 4 of Title 2 of the Education Code over three
years as specified in the Budget Act of 2008. In addition to the
statutory program requirements, grantees shall create partnership
academies that focus on clean technology and energy businesses and
provide skilled workforces for the products and services for energy
or water conservation, or both, renewable energy, pollution
reduction, or other technologies that improve the environment in
furtherance of state environmental laws. Priority for grants pursuant
to this subdivision shall be assigned to school districts that do
not currently participate in the partnership academies program
pursuant to Article 5 (commencing with Section 54690) of Chapter 9 of
Part 29 of Division 4 of Title 2 of the Education Code. Existing
grantees may apply subject to the availability of funds.
(b) Of the amount appropriated in this section, the Chancellor of
the California Community Colleges shall transfer five hundred
thousand dollars ($500,000) to the State Department of Education to
pay for the expenses of administering the local grants pursuant to
this section. Funding for purposes of this section shall be provided
pursuant to an interagency agreement between the Chancellor of the
California Community Colleges and the State Department of Education.
SEC. 33. (a) The sum of thirty nine million seven hundred eighty
thousand dollars ($39,780,000) is hereby appropriated from the
General Fund to the Board of Governors of the California Community
Colleges, in augmentation of Schedule (1) of Item 6870-101-0001 of
Section 2.00 of the Budget Act of 2008, for the purpose of providing
a 0.68 percent cost-of-living adjustment to apportionments to
community college districts, for expenditure during the 2008-09
fiscal year.
(b) For the purposes of making the computations required by
Section 8 of Article XVI of the California Constitution, the
appropriation made by subdivision (a) shall be deemed to be "General
Fund revenues appropriated for community college districts," as
defined in subdivision (d) of Section 41202 of the Education Code,
for the 2008-09 fiscal year, and included within the "total
allocations to school districts and community college districts from
General Fund proceeds of taxes appropriated pursuant to Article XIII
B," as defined in subdivision (e) of Section 41202 of the Education
Code, for the 2008-09 fiscal year.
SEC. 34. (a) The sum of three hundred eighty-eight million two
hundred eighty-three thousand dollars ($388,283,000) is hereby
appropriated from the General Fund to the State Department of
Education. This appropriation reflects the portion of the June 2009
principal apportionment that is to be deferred until July 2009 and
attributed to the 2009-10 fiscal year. Notwithstanding any other law,
the department shall encumber the funds appropriated in this section
by July 31, 2009. It is the intent of the Legislature that, by
extending the encumbrance authority for the funds appropriated in
this section to July 31, 2009, the funds will be treated in a manner
consistent with Section 1.80 of the Budget Act of 2008. The
appropriation is made in accordance with the following schedule:
(1) Six million two hundred twenty-seven thousand dollars
($6,227,000) for apprenticeship programs to be expended consistent
with the requirements specified in Item 6110-103-0001 of Section 2.00
of the Budget Act of 2008.
(2) Ninety million one hundred seventeen thousand dollars
($90,117,000) for supplemental instruction to be expended consistent
with the requirements specified in Item 6110-104-0001 of Section 2.00
of the Budget Act of 2008. Of the amount appropriated by this
paragraph, fifty-one million sixty-one thousand dollars ($51,061,000)
shall be expended consistent with Schedule (1) of Item 6110-104-0001
of Section 2.00 of the Budget Act of 2008, twelve million three
hundred thirty thousand dollars ($12,330,000) shall be expended
consistent with Schedule (2) of that item, four million six hundred
ninety thousand dollars ($4,690,000) shall be expended consistent
with Schedule (3) of that item, and twenty-two million thirty-six
thousand dollars ($22,036,000) shall be expended consistent with
Schedule (4) of that item.
(3) Thirty-nine million six hundred thirty thousand dollars
($39,630,000) for regional occupational centers and programs to be
expended consistent with the requirements specified in Schedule (1)
of Item 6110-105-0001 of Section 2.00 of the Budget Act of 2008.
(4) Fifty-two million five hundred eighty-three thousand dollars
($52,583,000) for home-to-school transportation to be expended
consistent with the requirements specified in Schedule (1) of Item
6110-111-0001 of Section 2.00 of the Budget Act of 2008.
(5) Four million two hundred ninety-four thousand dollars
($4,294,000) for the Gifted and Talented Pupil Program to be expended
consistent with the requirements specified in Item 6110-124-0001 of
Section 2.00 of the Budget Act of 2008.
(6) Forty-five million eight hundred ninety-six thousand dollars
($45,896,000) for adult education to be expended consistent with the
requirements specified in Schedule (1) of Item 6110-156-0001 of
Section 2.00 of the Budget Act of 2008.
(7) Four million seven hundred fifty-one thousand dollars
($4,751,000) for community day schools to be expended consistent with
the requirements specified in Item 6110-190-0001 of Section 2.00 of
the Budget Act of 2008.
(8) Five million nine hundred forty-seven thousand dollars
($5,947,000) for categorical block grants for charter schools to be
expended consistent with the requirements specified in Item
6110-211-0001 of Section 2.00 of the Budget Act of 2008.
(9) Thirty-eight million seven hundred twenty thousand dollars
($38,720,000) for the School Safety Block Grant to be expended
consistent with the requirements specified in Schedule (1) of Item
6110-228-0001 of Section 2.00 of the Budget Act of 2008.
(10) One hundred million one hundred eighteen thousand dollars
($100,118,000) for the Targeted Instructional Improvement Grant
Program to be expended consistent with the requirements specified in
Item 6110-246-0001 of Section 2.00 of the Budget Act of 2008.
(b) For the purposes of making the computations required by
Section 8 of Article XVI of the California Constitution, the
appropriations made by subdivision (a) shall be deemed to be "General
Fund revenues appropriated for school districts," as defined in
subdivision (c) of Section 41202 of the Education Code, for the
2009-10 fiscal year, and included within the "total allocations to
school districts and community college districts from General Fund
proceeds of taxes appropriated pursuant to Article XIII B," as
defined in subdivision (e) of Section 41202 of the Education Code,
for the 2009-10 fiscal year.
SEC. 35. (a) The sum of two hundred million dollars ($200,000,000)
is hereby appropriated from the General Fund to the Board of
Governors of the California Community Colleges for apportionments to
community college districts, for expenditure during the 2009-10
fiscal year, to be expended in accordance with Schedule (1) of Item
6870-101-0001 of Section 2.00 of the Budget Act of 2008.
(b) For the purposes of making the computations required by
Section 8 of Article XVI of the California Constitution, the
appropriation made by subdivision (a) shall be deemed to be "General
Fund revenues appropriated for community college districts," as
defined in subdivision (d) of Section 41202 of the Education Code,
for the 2009-10 fiscal year, and included within the "total
allocations to school districts and community college districts from
General Fund proceeds of taxes appropriated pursuant to Article XIII
B," as defined in subdivision (e) of Section 41202 of the Education
Code, for the 2009-10 fiscal year.
SEC. 36. Notwithstanding paragraphs (1) and (2) of subdivision (d)
of Section 41207 of the Education Code, there shall be no annual
appropriation in the 2008-09 fiscal year from the General Fund to the
Controller for allocation by the Controller to school districts and
community colleges for the purposes described in Section 41207.
SEC. 37. (a) Notwithstanding Sections 42238.1 and 42238.15 of the
Education Code or any other provision of law, the cost-of-living
adjustment for Items 6110-104-0001, 6110-105-0001, 6110-111-0001,
6110-156-0001, 6110-158-0001, 6110-161-0001, 6110-189-0001,
6110-190-0001, 6110-196-0001, 6110-232-0001, 6110-234-0001,
6110-244-0001, and 6110-246-0001 of Section 2.00 of the Budget Act of
2007 (Chapters 171 and 172 of the Statutes of 2007) and those items
identified in subdivision (b) of Section 12.40 of the Budget Act of
2008 is zero percent for the 2008-09 fiscal year. All funds
appropriated in the Budget Act of 2008 in the items identified in
this section are in lieu of the amounts that would otherwise be
appropriated pursuant to any other provision of law.
(b) Notwithstanding Section 42238.1 of the Education Code or any
other provision of law, for purposes of Section 48664 of the
Education Code the cost-of-living adjustment is zero percent for the
2008-09 fiscal year.
SEC. 38. Notwithstanding any other provision of law, the funds
appropriated pursuant to Items 6110-103-0001, 6110-104-0001,
6110-105-0001, 6110-111-0001, 6110-124-0001, 6110-156-0001,
6110-158-0001, 6110-161-0001, 6110-190-0001, 6110-211-0001, and
6110-243-0001 of Section 2.00 of the Budget Act of 2008 shall be
encumbered by July 31, 2009. This one-month extension of encumbrance
authority is provided due to the effect of the deferral of the June
2009 principal apportionment on the budget items specified in this
section. It is the intent of the Legislature that, by extending the
encumbrance authority for the funds identified in this section to
July 31, 2009, the funds will be treated in a manner consistent with
Section 1.80 of the Budget Act of 2008.
SEC. 39. 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 make the necessary statutory changes to implement the
Budget Act of 2008 at the earliest possible time, it is necessary
that this act take effect immediately.