BILL NUMBER: AB 2081	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 8, 2010

INTRODUCED BY   Committee on Education (Brownley (Chair), Nestande
(Vice Chair), Ammiano, Arambula,  Buchanan,  Carter,
Eng,  Solorio,  and Torlakson)

                        FEBRUARY 18, 2010

   An act to amend Sections 1274  and 5200   ,
5200, 35534, and 35542  of the Education Code, relating to
education.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2081, as amended, Committee on Education. Education.
    (1) Existing law authorizes a county superintendent of schools to
establish a fund or funds for losses and payments, including, but
not limited to, property of the superintendent, any liability, and
workers' compensation, in the county treasury for the purpose of
covering the deductible amount under deductible types of insurance
policies, losses or payments arising from self-insurance programs, or
losses or payments due to noninsured perils. Existing law specifies
that these provisions do not preclude a county superintendent from
providing protection against those losses and liability partly by
means of insurance written by acceptable insurers.
   This bill would delete an obsolete cross-reference relating to
insurance and would make technical changes.
   (2) Existing law requires a unified school district that is
coterminous with or includes within its boundaries a chartered city
or city and county to be governed by the board of education provided
for in the charter of the city or city and county. Existing law
exempts such a unified school district from certain provisions of
law, except as specified.
   This bill would delete an obsolete cross-reference relating to
these provisions and would make technical changes. 
   (3) Existing law provides that any action to reorganize a school
district shall be effective for all purposes on July 1 of the
calendar year following the calendar year in which the action is
completed, except as specified.  
   This bill would correct an erroneous cross-reference relating to
these provisions.  
   (4) Existing law provides that whenever the boundaries of an
elementary school district and a high school district become
coterminous, the districts are merged into a new unified district.
Existing law authorizes an elementary school district that has
boundaries within a high school district to be excluded from an
action to unify those districts if the governing board receives
approval from the State Board of Education.  
   This bill would instead authorize an elementary school district
that has boundaries within a high school district to be excluded from
an action to unify those districts if the governing board receives
approval from the county committee, if specified conditions are met,
or from the state board if these conditions are not met. 
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

  SECTION 1.  Section 1274 of the Education Code is amended to read:
   1274.  The county superintendent of schools may establish a fund
or funds for losses, and payments, including, but not limited to,
property of the county superintendent of schools, any liability, and
workers' compensation, in the county treasury for the purpose of
covering the deductible amount under deductible types of insurance
policies, losses or payments arising from self-insurance programs, or
losses or payments due to noninsured perils. In the fund or funds
shall be placed such sums, to be provided in the budget of the county
superintendent of schools, as will create an amount which, together
with investments made from the fund or funds, will be sufficient in
the judgment of the county superintendent of schools to protect the
county superintendent of schools from those losses or to provide for
payments on the deductible amount under deductible types of insurance
policies, losses or payments arising from self-insurance programs,
or losses or payments due to noninsured perils. Nothing in this
section shall be construed as prohibiting the county superintendent
of schools from providing protection against those losses or
liability for the payment of claims partly by means of the fund or
funds and partly by means of insurance written by acceptable
insurers.
   The fund or funds shall be considered as separate and apart from
all other funds of the county superintendent of schools, and the
balance therein shall not be considered as being part of the working
cash of the county superintendent of schools in compiling annual
budgets.
   Warrants may be drawn on, or transfers made from, the fund or
funds so created only to reimburse or indemnify the county
superintendent of schools for losses as herein specified, and for the
payment of claims, administrative costs, related services, and to
provide for deductible insurance amounts and purchase of excess
insurance. The warrants or transfers shall be within the purpose of
the fund or funds as established by the county superintendent of
schools.
   The cash placed in the fund or funds may be invested and
reinvested by the county treasurer, with the advice and consent of
the county superintendent of schools, in securities which are legal
investments for surplus county funds in this state. The income
derived from the investments, together with interest earned on
uninvested funds, shall be considered revenue of and be deposited in
the fund. The cost of contracts or services authorized by this
section are appropriate charges against the respective fund.
   The county superintendent of schools may contract for
investigative, administrative, and claims adjustment services
relating to claims. The contract may provide that the contracting
firm may reject, settle, compromise, and approve claims against the
county superintendent of schools, its officers or employees, within
those limits and for those amounts as the county superintendent of
schools may specify, and may provide that the contracting firm may
execute and issue checks in payment of those claims, which checks
shall be payable only from a trust account which may be established
by the county superintendent of schools. Funds in the trust account
established by the county superintendent of schools pursuant to the
provisions of this section shall not exceed a sum sufficient as
determined by the superintendent to provide for the settlement of
claims for a 30-day period. The rejection or settlement and approval
of a claim by the contracting firm in accordance with the terms of
the contract shall have the same effect as would the rejection or
settlement and approval of the claim by the county superintendent of
schools. The contract may also provide that the contracting firm may
employ legal counsel, subject to those terms and limitations as the
county superintendent of schools may prescribe, to advise the
contracting firm concerning the legality and advisability of
rejecting, settling, compromising, and paying claims referred to the
contracting firm by the county superintendent of schools for
investigation and adjustment, or to represent the superintendent in
litigation concerning the claims. The compensation and expenses of
the attorney for services rendered to the county superintendent of
schools shall be an appropriate charge against the appropriate fund.
   The contract provided for in this section may contain any other
terms and conditions the county superintendent of schools may
consider necessary or desirable to effectuate the superintendent's
self-insured programs.
   In lieu of, or in addition to, contracting for the services
described in this section, the county superintendent of schools may
authorize an employee or employees to perform any or all of the
services and functions which the county superintendent of schools may
contract for under the provisions of this section.
   As used in this section, "firm" includes a person, corporation, or
other legal entity.
   A county superintendent of schools may participate in, or
administer, insurance for one or more school or community college
districts pursuant to this section, and Section 81602.
  SEC. 2.  Section 5200 of the Education Code is amended to read:
   5200.  Any unified school district that is coterminous with or
includes within its boundaries a chartered city or city and county
shall be governed by the board of education provided for in the
charter of the city or city and county. Sections 5000, 5017, 5090,
5091, 35013, 35101, and 35105 shall not apply to such unified school
districts, except as follows:
   (a) As provided in the charter of the city or city and county.
   (b) If the charter of the city or city and county fails to provide
for a board of education or for any or all of the matters specified
in Sections 5000, 5017, 5090, 5091, 5222, 35013, 35101, and 35105,
those sections shall apply as to the matter not provided for in the
charter.
   SEC. 3.    Section 35534 of the   Education
Code   is amended to read: 
   35534.  Except as provided in Sections  35535 and
 35536  and 35786  and subject to compliance with
Section 54900 of the Government Code, any action to reorganize a
school district shall be effective for all purposes on July 1 of the
calendar year following the calendar year in which the action is
completed.
   SEC. 4.    Section 35542 of the   Education
Code   is amended to read: 
   35542.  (a) Whenever the boundaries of an elementary school
district and a high school district become coterminous, the districts
are merged into a new unified district.
   (b) Notwithstanding subdivision (a), an elementary school district
that has boundaries that are totally within a high school district
may be excluded from an action to unify those districts if the
governing board receives approval for an exclusion from the 
State Board of Education   county committee if the
conditions of subdivision (b) of Section 35710 are met or from the
state board if those conditions are not met  . Any elementary
school district  so  authorized  by the State Board
of Education  to be excluded from an action to unify, may
continue to feed into the coterminous high school under the same
terms that existed before any action to unify pursuant to subdivision
(a).