BILL NUMBER: AB 103	CHAPTERED
	BILL TEXT

	CHAPTER  13
	FILED WITH SECRETARY OF STATE  MAY 23, 2012
	APPROVED BY GOVERNOR  MAY 23, 2012
	PASSED THE SENATE  MAY 7, 2012
	PASSED THE ASSEMBLY  MAY 17, 2012
	AMENDED IN SENATE  MAY 7, 2012
	AMENDED IN SENATE  MAY 2, 2012
	AMENDED IN SENATE  MARCH 22, 2012
	AMENDED IN SENATE  JULY 11, 2011
	AMENDED IN SENATE  JUNE 12, 2011
	AMENDED IN SENATE  MARCH 24, 2011
	AMENDED IN SENATE  MARCH 17, 2011
	AMENDED IN SENATE  MARCH 14, 2011

INTRODUCED BY   Committee on Budget (Blumenfield (Chair), Alejo,
Allen, Brownley, Buchanan, Butler, Cedillo, Chesbro, Dickinson,
Feuer, Gordon, Huffman, Mitchell, Monning, and Swanson)

                        JANUARY 10, 2011

   An act to add Section 14041.75 to the Education Code, and to amend
Sections 16325, 16325.5, 16326, and 16428 of, and to repeal Section
16324 of, the Government Code, relating to state cash resources, and
making an appropriation therefor, to take effect immediately, bill
related to the budget.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 103, Committee on Budget. State cash resources.
   (1) Existing law requires the Controller to draw warrants on the
State Treasury in each month of each year in specified amounts for
the purpose of funding, among other entities, charter schools and
school districts. Existing law defers the drawing of those warrants,
as specified, but, commencing with the 2010-11 fiscal year,
authorizes the payment of up to $100,000,000 of funds that would
otherwise be deferred for the month of June under certain conditions.
Existing law limits the amount that a charter school or school
district may receive under this provision to no more than the lesser
of the total amount of additional funds necessary for the charter
school or school district to meet its financial obligations for the
month of June, as specified, or the total payments that charter
school or school district is entitled to receive in July for the
prior fiscal year.
   This bill, for the 2011-12 fiscal year only, instead would limit
the amount that a charter school or school district may receive under
this provision to the amount of additional funds necessary for the
charter school or school district to meet its financial obligations
for the month of June, as specified.
   (2) Existing law, until September 1, 2012, declares the need for
an effective cash management program for the 2010-11 and 2011-12
fiscal years, and exempts activities to implement and carry out the
cash management plan from the Administrative Procedure Act.
   This bill would extend these provisions through the 2012-13 fiscal
year.
   (3) Existing law, for the 2010-11 and 2011-12 fiscal years,
prohibits payments made by the state to the University of California
and the California State University from exceeding 1/12 of the annual
appropriation for each month from July through April.
   This bill would extend that prohibition through the 2012-13 fiscal
year and would exclude from the prohibition transfers and rental
payments that support lease-revenue bonds.
   (4) Existing law, until September 1, 2012, enacts the cash
management plan to authorize the Controller, Treasurer, and Director
of Finance to defer General Fund payments for up to 60 or 90 days, as
specified, for specific entities, including county offices of
education, public schools, and charter schools, subject to certain
conditions. Existing law provides a process by which county offices
of education, public schools, and charter schools may receive
payments that would otherwise be deferred, permits those entities to
apply for a hardship waiver even if earlier payments were deferred.
Existing law prohibits the total amount of deferrals to school
districts, county offices of education, and charter schools from
exceeding $2,500,000,000 at any given time and requires the
Controller, Treasurer, and Director of Finance to determine and
jointly provide a written declaration of the amounts and timing of
payment deferrals for the 2010-11 fiscal year to the Legislature and
to the State Department of Education, and requires the State
Department of Education to provide this information to school
districts, county offices of education, and charter schools no later
than March 31, 2010.
   This bill would eliminate the limit of $2,500,000,000 in deferrals
to school districts, county offices of education, and charter
schools. The bill would, for the 2012-13 fiscal year, provide for
deferrals and repayment of those deferrals for kindergarten to grade
12, inclusive, and would provide that a county office of education, a
charter school, or a school district may receive scheduled payments
from the Controller if payments are deferred and a certification is
made on or before June 1, 2012, that the deferral of warrants will
result in the county office of education being unable to meet its
expenditure obligations for the time period in which payments are
deferred, as specified. The bill would also provide a process for a
county office of education, a charter school, or a school district to
seek a hardship waiver for the March 2013 deferral.
   The bill would also require payment of the March 2013 deferral to
the county offices of education, school districts, and charter
schools to be made no later than April 29, 2013.
   (5) Existing law requires the Controller, subject to the approval
of the Department of Finance, to pay the full amount of the
apportionment payments for March 2010 for a community college for
which the Chancellor of the California Community Colleges determines,
in consultation with the Director of Finance, on or before March 15,
2010, that a deferral of payment would present an imminent threat to
the fiscal integrity and security of the community colleges.
   This bill would, for the 2012-13 fiscal year, require the
deferrals of apportionments to community college districts in the
amounts of $150,000,000 to be made from July to December, $50,000,000
to be made from September to January, and $100,000,000 to be made
from October to January. The bill would require the Controller to
issue warrants that include the full apportionment of payments for
the months of July, September, or October, or any combination of
those months, for a community college for which the Chancellor of the
California Community Colleges determines, in consultation with the
Director of Finance, on or before June 1 of the preceding fiscal year
that deferral of warrants will present an imminent threat to the
fiscal integrity and security of the community college.
   This bill would also repeal obsolete provisions regarding the
deferral of certain payments.
   (6) Existing law requires all money received by the state as
litigation deposits, except as specified, to be deposited in the
Litigation Deposits Fund in the State Treasury. Existing law
authorizes the investment and reinvestment of those funds and
requires all revenues earned from the investment or deposit of fund
moneys to be deposited in the fund. Existing law charges the
Department of Justice with control of the fund, as specified.
   This bill would authorize the Controller to use money in the fund
for cashflow loans to the General Fund, as specified.
   (7) Existing law establishes a system of public elementary and
secondary schools in this state. This system of public elementary and
secondary schools is funded through, among other means, the
apportionment of state funds by the Superintendent of Public
Instruction to local educational agencies in accordance with
statutory formulas and the receipt of property tax revenues by those
local educational agencies.
   This bill would require the Superintendent of Public Instruction
to delay the 2nd principal apportionment for the 2011-12 fiscal year
from July 2, 2012, to July 15, 2012, to account for additional local
property tax revenues remitted to school districts and county offices
of education pursuant to a specified statute. The bill would require
each county auditor-controller to provide the Superintendent of
Public Instruction by June 10, 2012, with a report detailing the
amount of additional property tax received pursuant to this specified
statute by each school district and county office of education in
their respective jurisdictions, thereby imposing a state-mandated
local program.
   (8) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
   (9) This bill would appropriate $1,000 from the General Fund to
the Controller for administrative costs associated with this bill.
   (10) This bill would declare that it is to take effect immediately
as a bill providing for appropriations related to the Budget Bill.
   Appropriation: yes.


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

  SECTION 1.  Section 14041.75 is added to the Education Code, to
read:
   14041.75.  (a) Notwithstanding Section 14041.7, for the 2011-12
fiscal year only, up to one hundred million dollars ($100,000,000) of
the amount of the warrants for the principal apportionments for the
month of June, that are instead to be drawn in July pursuant to
Section 14041.5, may be drawn in June, subject to the approval of the
Director of Finance, for a charter school or school district as
follows:
   (1) In order for a charter school to receive a payment in June
pursuant to this section, the chartering authority, in consultation
with the county superintendent of schools, shall certify to the
Superintendent and the Director of Finance on or before April 1 that
the deferral of warrants pursuant to Sections 14041.5 and 14041.6
will result in the charter school being unable to meet its financial
obligations for June and shall provide the Superintendent an estimate
of the amount of additional funds necessary for the charter school
to meet its financial obligations for the month of June.
   (2) In order for a school district to receive a payment in June
pursuant to this section, the county superintendent of schools shall
certify to the Superintendent and to the Director of Finance on or
before April 1 that the deferral of warrants pursuant to Sections
14041.5 and 14041.6 will result in the school district being unable
to meet its financial obligations for June and shall provide the
Superintendent an estimate of the amount of additional funds
necessary for the school district to meet its financial obligations
for the month of June.
   (3) The criteria, as applicable, set forth in statute and
regulations to qualify a school district for an emergency
apportionment shall be used to make the certification specified in
paragraph (2).
   (4) A charter school or school district may receive, pursuant to
this section, no more than the amount of additional funds necessary
for the charter school or school district to meet its financial
obligations for the month of June, as reported to the Superintendent
pursuant to paragraph (1) or (2).
   (b) If the total amount requested by charter schools and school
districts pursuant to paragraph (4) of subdivision (a) exceeds one
hundred million dollars ($100,000,000), the Controller, Treasurer,
and Director of Finance may authorize additional payments to meet
these requests, but total payments to charter schools and school
districts pursuant to this section shall not exceed three hundred
million dollars ($300,000,000). No later than May 1, the Controller,
Treasurer, and Director of Finance shall determine whether sufficient
cash is available to make payments in excess of one hundred million
dollars ($100,000,000). In making the determination that cash is
sufficient to make additional payments, in whole or in part, the
Controller, Treasurer, and Director of Finance shall consider costs
for state government, the scope of any identified cash shortage,
timing, achievability, legislative direction, and the impact and
hardship imposed on potentially affected programs, entities, and
related public services. The Department of Finance shall notify the
Joint Legislative Budget Committee within 10 days of this
determination and identify the total amount of requests that will be
paid.
   (c) If the total amount of cash made available pursuant to
subdivision (b) is less than the amount requested pursuant to
paragraph (4) of subdivision (a), payments to charter schools and
school districts shall be prioritized according to the date on which
notification was provided to the Superintendent and the Department of
Finance.
   (d) Payments pursuant to this section shall be made no later than
June 20.
   (e) Except as provided in subdivisions (c) and (e) of Section
41202, for purposes of making the computations required by Section 8
of Article XVI of the California Constitution, the warrants drawn
pursuant to subdivision (a) shall be deemed to be "General Fund
revenues appropriated for school districts," as defined in
subdivision (c) of Section 41202, for the fiscal year in which the
warrants are drawn 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 the fiscal year in
which the warrants are drawn.
  SEC. 2.  Section 16324 of the Government Code is repealed.
  SEC. 3.  Section 16325 of the Government Code is amended to read:
   16325.  (a) An effective cash management plan is needed for the
2010-11, 2011-12, and 2012-13 fiscal years to address General Fund
cash shortages that otherwise may occur during the fiscal year. The
goals of the cash management plan described in this section are to
accomplish the following:
   (1) Increase the state's ability to address cash shortages in a
quick and responsible manner.
   (2) Address rating agencies' and bond markets' concerns regarding
the state's ability to react effectively to cashflow pressures while
providing a higher level of certainty to bondholders.
   (3) Preserve external borrowing capacity and affordability for the
state's infrastructure programs.
   (4) Provide a higher level of predictability to affected programs
and entities where deferrals or delays are required.
   (b) Nothing in this section or in Sections 16325.5 and 16326 shall
be construed to affect in any way the timing or amount of payments
of state payroll or to affect in any way any judicial proceeding
related to the timing or amount of state employee compensation.
Nothing in this section, Section 16325.5, or Section 16326 shall be
construed to authorize the delay of debt service payments, rental
payments that support lease-revenue bonds, reimbursements to local
governments for certain reductions in ad valorem property taxes, as
required by Section 25.5 of Article XIII of the California
Constitution, or required payments for borrowings secured by these
repayment obligations, payments required under a Funds Transfer
Cooperative Agreement that are pledged to pay debt service on state
payment acceleration notes that were issued to finance toll bridge
seismic retrofit and replacement projects, payments appropriated in
any year to pay a court judgment pursuant to the settlement agreement
in Paterno v. State (2003) 113 Cal.App.4th 998, or payments to small
vendors as defined in the California Prompt Payment Act (Chapter 4.5
(commencing with Section 927) of Part 3 of Division 3.6 of Title 1).
Nothing in this section, Section 16325.5, or Section 16326 shall be
construed to affect the applicability of interest, late payment
penalty, and similar payment requirements under the California Prompt
Payment Act when payments to persons or entities specified in those
laws are delayed.
   (c) Deferrals authorized in the cash management plan described in
this section and in Sections 16325.5 and 16326 are in addition to any
payment delays, payment deferrals, or payment schedules specified in
other laws. Deferrals authorized in the cash management plan
described in this section and in Sections 16325.5 and 16326 do not
replace, remove, or alter any previously implemented payment delays
or payment deferrals.
   (d) Activities by the Controller, Treasurer, and Director of
Finance to implement and carry out the cash management plan described
in this section and Sections 16325.5 and 16326 are hereby exempted
from the provisions of the Administrative Procedure Act (Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3).
   (e) This section shall become inoperative on September 1, 2013,
and, as of January 1, 2014, is repealed, unless a later enacted
statute, that becomes operative on or before January 1, 2014, deletes
or extends the dates on which it becomes inoperative and is
repealed.
  SEC. 4.  Section 16325.5 of the Government Code is amended to read:

   16325.5.  (a) Notwithstanding any other law, and to the extent not
prohibited by federal law or the California Constitution, in order
to effectively manage state cash resources, the 2010-11, 2011-12, and
2012-13 General Fund payments projected to be made for the programs
or departments listed in subdivision (b) shall be deferred in the
months of July, October, and March, in whole or in part for no more
than 60, 90, and 60 days, respectively, unless otherwise specified in
Section 16326. Nothing in this section shall be construed to
authorize the deferral of state payroll, debt service, or rental
payments that support lease-revenue bonds.
   (b) The departments and programs subject to subdivision (a) are as
follows:
   (1) Supplementary Security Income/State Supplementary Payments
made by the State Department of Social Services to the federal
government.
   (2) Local government social services payments.
   (c) Prior to implementing each of the payment deferrals identified
in subdivision (b) and other provisions of the act adding this
section, the Controller, Treasurer, and Director of Finance shall
jointly review and compare the actual General Fund receipts and
disbursements with the receipts and disbursements contained in the
most current published cashflow projections. If the Controller,
Treasurer, and Director of Finance determine sufficient cash is
available to make scheduled payments, in whole or in part, through
the 60- or 90-day period or other period specified in law, including
the payments otherwise subject to deferral identified in subdivision
(b), and maintain a prudent cash reserve, the Controller shall make
the deferred payment, in whole or in part, as originally scheduled or
within the time provided for by law. In making the determination
that cash is sufficient to make the payments, the Controller,
Treasurer, and Director of Finance shall also consider costs for
state government, the scope of any identified cash shortage, timing,
achievability, legislative direction, and the impact and hardship
imposed on potentially affected programs, entities, and related
public services. The Department of Finance shall notify the Joint
Legislative Budget Committee of this action within 10 days of making
this determination.
   (d) In the event payments are deferred pursuant to subdivision (a)
or other provisions of the act adding this section, beginning July 1
of the appropriate fiscal year, the Controller, Treasurer, and
Director of Finance shall review on a monthly basis, or as necessary,
the actual General Fund cash receipts and disbursements in
comparison to the receipt and disbursement projections associated
with the Governor's most current cashflow statements. If the
Controller, Treasurer, and Director of Finance determine sufficient
cash is available to make payments otherwise deferred for the 60- or
90-day period or other period specified in law, including the
payments otherwise subject to deferral identified in subdivision (b)
or other provisions of the act adding this section, and maintain a
prudent cash reserve, the Controller shall make the deferred
payments, in whole or in part, as soon as feasible unless otherwise
provided in Section 16326. In making the determination that cash is
sufficient to make the payments, in whole or in part, the Controller,
Treasurer, and Director of Finance shall also consider costs for
state government, the scope of any identified cash shortage, timing,
achievability, legislative direction, and the impact and hardship
imposed on potentially affected programs, entities, and related
public services. The Department of Finance shall notify the Joint
Legislative Budget Committee within 10 days of this determination and
identify the date upon which the payments were made or will be made.

   (e) Upon concurrence of the Controller, Treasurer, and Director of
Finance, deferrals authorized pursuant to subdivision (a) or other
provisions of the act adding this section may be moved forward to the
prior month or delayed to the subsequent month. Any changes may be
authorized no sooner than 30 days after notification in writing by
the Department of Finance to the Joint Legislative Budget Committee,
or not sooner than whatever lesser time the Chairperson of the Joint
Legislative Budget Committee, or his or her designee, may determine.
In the event cash is available to make the payments earlier than
identified in the notification, as determined by the Controller,
Treasurer, and Director of Finance, the Department of Finance shall
notify the Joint Legislative Budget Committee within 10 days of
making this determination.
   (f) This section shall become inoperative on September 1, 2013,
and, as of January 1, 2014, is repealed, unless a later enacted
statute, that becomes operative on or before January 1, 2014, deletes
or extends the dates on which it becomes inoperative and is
repealed.
  SEC. 5.  Section 16326 of the Government Code is amended to read:
   16326.  (a) Notwithstanding any other law, except as otherwise
specified in Sections 16325 and 16325.5, cash deferrals specified in
Sections 16325 and 16325.5, as amended by the act amending this
section, shall be limited, as follows:
   (1) For the 2011-12 fiscal year, deferrals for kindergarten to
grade 12, inclusive, and repayment of those deferrals, shall be
scheduled as follows: One billion four hundred million dollars
($1,400,000,000) shall be deferred in both July and August of 2011.
Two billion four hundred million dollars ($2,400,000,000) shall be
deferred in October 2011. Seven hundred million ($700,000,000) of the
July 2011 deferral shall be paid in September 2011, and four billion
five hundred million dollars ($4,500,000,000) shall be paid in
January 2012 for the remaining July, August, and October 2011
deferrals. One billion four hundred million dollars ($1,400,000,000)
shall be deferred in March 2012 and paid entirely in April 2012. The
State Department of Education shall inform school districts, county
offices of education, and charter schools of the amounts and timing
of payment deferrals for the 2011-12 fiscal year. This declaration
shall be provided no later than April 15, 2011. It is the intent of
the Legislature that the advance principal apportionment payment due
in July be deferred as a part of the July 2011 deferral and that the
advance principal apportionment payment due in August be deferred as
a part of the August 2011 deferral.
   (A) Subject to the approval of the Director of Finance, in order
for a county office of education to receive scheduled payments from
the Controller if payments are deferred, the Superintendent of Public
Instruction shall certify that the deferral of warrants will result
in the county office of education being unable to meet its
expenditure obligations for the time period during which warrants are
deferred, and shall notify the Director of Finance of this fact on
or before June 1, 2011. Subject to the approval of the Director of
Finance, a county office of education that did not receive payments
for July 2011, August 2011, and October 2011 may seek a hardship
waiver to receive scheduled payments from the Controller if payments
are deferred in March 2012. To apply for a hardship waiver, the
Superintendent of Public Instruction shall certify that the deferral
of March 2012 warrants will result in the county office of education
being unable to meet its expenditure obligations for the time period
during which warrants are deferred, and shall notify the Director of
Finance of this fact on or before January 5, 2012. The criteria, as
applicable, set forth in statute and regulations to qualify a school
district for an emergency apportionment shall be used to make the
certifications specified in this subparagraph.
   (B) Subject to the approval of the Director of Finance, in order
for a charter school to receive scheduled payments from the
Controller if payments are deferred, the chartering authority, in
consultation with the county superintendent of schools, shall certify
that the deferral of warrants will result in the charter school
being unable to meet its expenditure obligations for the time period
during which warrants are deferred, and shall notify the
Superintendent of Public Instruction and the Director of Finance of
this fact on or before June 1, 2011. Subject to the approval of the
Director of Finance, a charter school that did not receive payments
for July 2011, August 2011, and October 2011 may seek a hardship
waiver to receive scheduled payments from the Controller if payments
are deferred in March 2012. To apply for a hardship waiver, the
chartering authority, in consultation with the county superintendent
of schools, shall certify that the deferral of March 2012 warrants
will result in the charter school being unable to meet its
expenditure obligations for the time period during which warrants are
deferred, and shall notify the Superintendent of Public Instruction
and the Director of Finance on or before January 5, 2012. The
criteria, as applicable, set forth in statute and regulations to
qualify a school district for an emergency apportionment shall be
used to make the certifications specified in this subparagraph.
   (C) Subject to the approval of the Director of Finance, in order
for a school district to receive scheduled payments from the
Controller if payments are deferred, the county superintendent of
schools shall certify to the Superintendent of Public Instruction and
the Director of Finance on or before June 1, 2011, that the deferral
of warrants will result in the school district being unable to meet
its expenditure obligations for the time period during which warrants
are deferred. Subject to the approval of the Director of Finance, a
school district that did not receive payments for July 2011, August
2011, and October 2011 may seek a hardship waiver to receive
scheduled payments from the Controller if payments are deferred in
March 2012. To apply for a hardship waiver, the county superintendent
of schools shall certify to the Superintendent of Public Instruction
and to the Director of Finance on or before January 5, 2012, that
the deferral of March 2012 warrants will result in the school
district being unable to meet its expenditure obligations for the
time period during which warrants are deferred. The criteria, as
applicable, set forth in statute and regulations to qualify a school
district for an emergency apportionment shall be used to make the
certifications specified in this subparagraph.
   (D) Notwithstanding Section 16325.5, payments of the March 2012
deferral to the county offices of education, school districts, and
charter schools, shall be made no later than April 29, 2012.
   (2) For the 2012-13 fiscal year, deferrals for kindergarten to
grade 12, inclusive, and repayment of those deferrals, shall be
scheduled as follows: One billion two hundred million dollars
($1,200,000,000) shall be deferred in July 2012. Six hundred million
dollars ($600,000,000) shall be deferred in August 2012. Eight
hundred million dollars ($800,000,000) shall be deferred in October
2012. Seven hundred million dollars ($700,000,000) of the deferral
made in July 2012 shall be paid in September 2012, and one billion
nine hundred million dollars ($1,900,000,000) shall be paid in
January 2013 for the remaining deferrals made in July, August, and
October 2012. Nine hundred million dollars ($900,000,000) shall be
deferred in March 2013 and paid entirely in April 2013. The State
Department of Education shall, no later than five days following the
enactment of the act adding this paragraph, inform school districts,
county offices of education, and charter schools of the amounts and
timing of payment deferrals for the 2012-13 fiscal year. It is the
intent of the Legislature that the advance principal apportionment
payment due in July be deferred as a part of the July 2012 deferral
and that the advance principal apportionment payment due in August be
deferred as a part of the August 2012 deferral.
   (A) Subject to the approval of the Director of Finance, in order
for a county office of education to receive scheduled payments from
the Controller if payments are deferred, the Superintendent of Public
Instruction shall certify that the deferral of warrants will result
in the county office of education being unable to meet its
expenditure obligations for the time period during which warrants are
deferred, and shall notify the Director of Finance of this fact on
or before June 1, 2012. Subject to the approval of the Director of
Finance, a county office of education that did not receive payments
for July 2012, August 2012, and October 2012 may seek a hardship
waiver to receive scheduled payments from the Controller if payments
are deferred in March 2013. To apply for a hardship waiver, the
Superintendent of Public Instruction shall certify that the deferral
of March 2013 warrants will result in the county office of education
being unable to meet its expenditure obligations for the time period
during which warrants are deferred, and shall notify the Director of
Finance on or before January 4, 2013. The criteria, as applicable,
set forth in statute and regulations to qualify a school district for
an emergency apportionment shall be used to make the certifications
specified in this subparagraph.
   (B) Subject to the approval of the Director of Finance, in order
for a charter school to receive scheduled payments from the
Controller if payments are deferred, the chartering authority, in
consultation with the county superintendent of schools, shall certify
that the deferral of warrants will result in the charter school
being unable to meet its expenditure obligations for the time period
during which warrants are deferred, and shall notify the
Superintendent of Public Instruction and the Director of Finance on
or before June 1, 2012. Subject to the approval of the Director of
Finance, a charter school that did not receive payments for July
2012, August 2012, and October 2012 may seek a hardship waiver to
receive scheduled payments from the Controller if payments are
deferred in March 2013. To apply for a hardship waiver, the
chartering authority, in consultation with the county superintendent
of schools, shall certify that the deferral of March 2013 warrants
will result in the charter school being unable to meet its
expenditure obligations for the time period during which warrants are
deferred, and shall notify the Superintendent of Public Instruction
and the Director of Finance on or before January 4, 2013. The
criteria, as applicable, set forth in statute and regulations to
qualify a school district for an emergency apportionment shall be
used to make the certifications specified in this subparagraph.
   (C) Subject to the approval of the Director of Finance, in order
for a school district to receive scheduled payments from the
Controller if payments are deferred, the county superintendent of
schools shall certify to the Superintendent of Public Instruction and
the Director of Finance on or before June 1, 2012, that the deferral
of warrants will result in the school district being unable to meet
its expenditure obligations for the time period during which warrants
are deferred. Subject to the approval of the Director of Finance, a
school district that did not receive payments for July 2012, August
2012, and October 2012 may seek a hardship waiver to receive
scheduled payments from the Controller if payments are deferred in
March 2013. To apply for a hardship waiver, the county superintendent
of schools shall certify to the Superintendent of Public Instruction
and to the Director of Finance on or before January 4, 2013, that
the deferral of March 2013 warrants will result in the school
district being unable to meet its expenditure obligations for the
time period during which warrants are deferred. The criteria, as
applicable, set forth in statute and regulations to qualify a school
district for an emergency apportionment shall be used to make the
certifications specified in this subparagraph.
   (D) Notwithstanding Section 16325.5, payments of the March 2013
deferral to the county offices of education, school districts, and
charter schools, shall be made no later than April 29, 2013.
   (3) Of the amount appropriated from the General Fund to the
University of California for the 2010-11, 2011-12, and 2012-13 fiscal
years, excluding transfers and rental payments that support
lease-revenue bonds, payments made by the state to the University of
California shall not exceed one-twelfth of the annual appropriation
for each month from July through April. Any remaining appropriation
balance may be paid to the University of California thereafter with
no limitations.
   (4) Notwithstanding Sections 84320, 84321, and 84321.5 of the
Education Code and any other law that governs the regulations adopted
by the Chancellor of the California Community Colleges to disburse
funds for the 2011-12 fiscal year, two hundred million dollars
($200,000,000) and one hundred million dollars ($100,000,000) from
the payment of apportionments to districts pursuant to Sections
84320, 84321, and 84321.5 of the Education Code for July and March,
respectively, shall be deferred to October and May, respectively.
Notwithstanding this paragraph and subject to the approval of the
Director of Finance, the Controller shall issue warrants pursuant to
Sections 84320, 84321, and 84321.5 of the Education Code that include
the full amount of the apportionment payments for the months of July
or March, or both, for a community college for which the Chancellor
of the California Community Colleges determines, in consultation with
the Director of Finance, on or before June 1 of the preceding fiscal
year, that the deferral of warrants pursuant to this paragraph will
present an imminent threat to the fiscal integrity and security of
the community college.
   (5) For the 2012-13 fiscal year, notwithstanding Sections 84320,
84321, and 84321.5 of the Education Code and any other law that
governs the regulations adopted by the Chancellor of the California
Community Colleges to disburse funds, from the payment of
apportionments to districts pursuant to Sections 84320, 84321, and
84321.5 of the Education Code, the following deferrals shall be made
within the same fiscal year: one hundred fifty million dollars
($150,000,000) from July to December, inclusive, fifty million
dollars ($50,000,000) from September to January, inclusive, and one
hundred million dollars ($100,000,000) from October to January,
inclusive. Notwithstanding this paragraph and subject to the approval
of the Director of Finance, the Controller shall issue warrants
pursuant to Sections 84320, 84321, and 84321.5 of the Education Code
that include the full amount of the apportionment payments for the
months of July, September, or October, or any combination of those
months, for a community college for
         which the Chancellor of the California Community Colleges
determines, in consultation with the Director of Finance, on or
before June 1 of the preceding fiscal year, that the deferral of
warrants pursuant to this paragraph will present an imminent threat
to the fiscal integrity and security of the community college.
   (6) Of the amount appropriated from the General Fund to the
California State University for the 2010-11, 2011-12, and 2012-13
fiscal years, excluding transfers and rental payments that support
lease-revenue bonds, payments made by the state to the California
State University shall not exceed one-twelfth of the annual
appropriation for each month from July through April. Any remaining
appropriation balance may be paid to the California State University
thereafter with no limitations.
   (7) The 2010-11, 2011-12, and 2012-13 cash management plans
described in Sections 16325 and 16325.5 may include deferrals in
state payments for specific programs that are disbursed to cities,
counties, and other public entities not addressed elsewhere in this
section. Deferral of payments by the state to cities, counties, and
other public entities not addressed elsewhere in this section shall
be as follows:
   (A) Payments shall be deferred as specified in Section 16325.5 per
the specific program.
   (B) Payments shall be limited to one billion dollars
($1,000,000,000) for all programs that affect cities, counties, and
other public entities not addressed elsewhere in this section at any
given point in time.
   (C) A maximum of three deferrals per specific program may be made
during the fiscal year.
   (D) The state shall not defer any payments to a county with a
population less than 50,000, or a city within a county with a
population less than 50,000.
   (E) Payments to local governments may be deferred for social
services programs and Mental Health Services Act (Proposition 63)
programs.
   (8) In addition to implementing the payment schedule described in
paragraph (6), the Director of Finance may at any time during the
2010-11, 2011-12, and 2012-13 fiscal years defer payment of General
Fund moneys, in a cumulative amount not to exceed two hundred fifty
million dollars ($250,000,000) annually, appropriated to the
California State University. Payment of the amount deferred shall be
made in the final week of April.
   (b) Limits on payment deferrals specified in subparagraphs (A) and
(C) of paragraph (7) of subdivision (a) shall not apply to payments
to the Mental Health Services Act (Proposition 63) programs.
   (c) Upon the Controller's receipt of a letter from the executive
officer of the Administrative Office of the Courts, or any other
executive officer representing cities or counties, the state may
defer payments to the entity or entities that the executive officer
represents as specified in the letter even if the specified amounts
exceed the deferrals authorized in this section or elsewhere in law.
   (d) This section shall become inoperative on September 1, 2013,
and, as of January 1, 2014, is repealed, unless a later enacted
statute, that becomes operative on or before January 1, 2014, deletes
or extends the dates on which it becomes inoperative and is
repealed.
  SEC. 6.  Section 16428 of the Government Code is amended to read:
   16428.  Money in the fund may be invested and reinvested in any
securities described in Section 16430 or deposited in banks as
provided in Chapter 4 (commencing with Section 16500) of this part or
deposited in savings and loan associations as provided in Chapter
4.5 (commencing with Section 16600) of this part. The department
shall determine the amount of money available for investment or
deposit and shall so arrange the investment or deposit program that
funds will be available for the immediate payment of any court order
or decree. The Treasurer shall invest or make deposits in accordance
with these determinations.
   All revenues earned from investment or deposit of fund moneys
shall be deposited in the fund. After first deducting therefrom the
amount payable to the Treasurer for investment services rendered and
the amount payable to the department for administrative services
rendered, the department shall apportion as of June 30 and December
31 of each year the remainder of such revenues earned and deposited
in the fund during the six calendar months ending with such dates.
There shall be apportioned and credited to each litigation deposit in
the fund during such six-month period, an amount directly
proportionate to the total deposits in the fund and the length of
time such deposits remained therein. The amounts so apportioned shall
be paid to the party receiving the deposit. The cost of
administrative services rendered shall be determined by the
department in a manner approved by the Department of Finance. The
amounts payable to the department and to the Treasurer shall be
transferred to the General Fund and accounted as reimbursements to
their respective appropriations.
   Notwithstanding any other provision of law, the Controller may use
money in the fund for cashflow loans to the General Fund as provided
in Sections 16310 and 16381.
  SEC. 7.  (a) Notwithstanding any other law, for the 2011-12 fiscal
year, the Superintendent of Public Instruction shall delay the second
principal apportionment calculated pursuant to Section 41335 of the
Education Code from July 2, 2012, to July 15, 2012, to account for
additional local property tax revenues remitted to school districts
and county offices of education by county auditor-controllers
pursuant to Section 34183 of the Health and Safety Code.
   (b) No later than June 10, 2012, each county auditor-controller
shall provide the Superintendent of Public Instruction with a report,
on forms prescribed by the Superintendent of Public Instruction,
detailing the amount of additional property tax received by each
school district and county office of education in their respective
jurisdictions pursuant to Section 34183 of the Health and Safety
Code.
  SEC. 8.  If the Commission on State Mandates determines that this
act contains costs mandated by the state, reimbursement to local
agencies and school districts for those costs shall be made pursuant
to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of
the Government Code.
  SEC. 9.  The sum of one thousand dollars ($1,000) is hereby
appropriated to the Controller from the General Fund for
administrative costs associated with this act.
  SEC. 10.  This act is a bill providing for appropriations related
to the Budget Bill within the meaning of subdivision (e) of Section
12 of Article IV of the California Constitution, has been identified
as related to the budget in the Budget Bill, and shall take effect
immediately.