BILL NUMBER: AB 114	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 14, 2011
	AMENDED IN SENATE  JUNE 9, 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 amend Sections 2558.46, 8201, 8208,  8263.2,
 8263.4, 8447, 8499, 14041.6,  42238.146,
 56139,  56325,  and  69432.7  ,
and 84321.6  of, to amend and renumber Section 60422.3 of,
to amend and repeal  Section   Sections 56139
and  56331 of, to add Section  41207.41 to, to add
Article 14.7 (commencing with Section 8310) to Chapter 2 of Part 6 of
Division 1 of Title 1 of,   42251 to,  and to
repeal and add Section 42606 of, the Education Code,   to amend
Section 7911.1 of the Family Code,   to amend Sections 7572,
7582, 7585,  12440.1,  and 17581.5 of, to amend and
repeal Sections 7572.5, 7572.55, 7576, 7576.2, 7576.3, 7576.5,
7586.5, 7586.6, and 7586.7 of, and to repeal Section 7588 of, the
Government Code, and to amend Sections 5651 and 11323.2 of, to amend
and repeal Sections 5701.3 and 5701.6 of, to add and repeal Section
18356.1 of, and to repeal Chapter 6 (commencing with Section 18350)
of Part 6 of Division 9 of, the Welfare and Institutions Code,
relating to education finance,  and  making an appropriation
therefor, to take effect immediately, bill related to the budget.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 114, as amended, 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. Existing law reduces the revenue limit for
each county superintendent of schools for the 2011-12 fiscal year by
a deficit factor of 19.892%.
   This bill instead would set the deficit factor for each county
superintendent of schools for the 2011-12 fiscal year at 20.041%.
   (2) The Child Care and Development Services Act, administered by
the State Department of Education, provides that children who are 10
years of age or younger, children with exceptional needs, children 12
years of age or younger who are recipients of child protective
services or at risk of abuse, neglect, or exploitation, children 12
years of age or younger who are provided services during
nontraditional hours, children 12 years of age or younger who are
homeless, and children who are 11 and 12 years of age, as funding
permits, as specified, are eligible, with certain requirements, for
child care and development services.
   This bill would instead provide that children from infancy to 13
years of age and their parents are eligible, with certain
requirements, for child care and development services. 
   (3) Existing law, effective July 1, 2011, requires the State
Department of Education to reduce the maximum reimbursable amounts of
the contracts for the Preschool Education Program, the General Child
Care Program, the Migrant Day Care Program, the Alternative Payment
Program, the CalWORKs Stage 3 Program, and the Allowance for
Handicapped Program by 15%, as specified.  
   This bill would instead provide that the reduction in the maximum
reimbursable amounts of the contracts for the programs listed above
would be 11%, as specified.  
   (4) 
    (3)  Existing law requires that a child who is 11 or 12
years of age and who is otherwise eligible for subsidized child care
and development services, except for his or her age, be given first
priority for enrollment, and in cases of programs operating at full
capacity, first priority on the waiting list for a before or after
school program, as specified. Existing law also requires contractors
to provide each family of an otherwise eligible 11 or 12 year old
child with information about the availability of before and after
school programs located in the family's community.
   This bill would instead provide that the preferred placement for
children who are 11 or 12 years of age and who are otherwise eligible
for subsidized child care and development services is in a before or
after school program. The bill would specify criteria for the
provision of subsidized child care services for children who are 11
and 12 years of age. 
   (5)  
     The Governor's Executive Order S-23-09, dated November 9, 2009,
establishes the California State Advisory Council on Early Childhood
Education and Care.  
   This bill would rename this advisory council as the California
Early Learning Advisory Council, and provide that the advisory
council is established within the State Department of Education to
improve early learning quality for children from birth to school age.
The bill would specify the membership of the advisory council, the
duties of the advisory council, and the areas of expertise from which
the advisory council will seek input through the establishment of
subcommittees or other methods.  
   (6) 
    (4)  Existing law requires that the cost of state-funded
child care services be governed by regional market rates, and
establishes a family fee schedule reflecting specified income
eligibility limits. Existing law revises the family fee schedule that
was in effect for the 2007-08, 2008-09, 2009-10, and 2010-11 fiscal
years to reflect an increase of 10% to existing fees, and requires
the State Department of Education to submit an adjusted fee schedule
to the Department of Finance for approval in order to be implemented
by July 1, 2011.
   This bill would delete the provision requiring the fee schedule to
reflect a 10% increase in family fees. 
   (7) Existing law requires the Controller to draw warrants on the
State Treasury in each month of each year in specified amounts for
principal apportionments for purposes of funding school districts,
county superintendents of schools, and community college districts.
Existing law defers the drawing of those warrants, as specified.
Commencing with the 2011-12 fiscal year, existing law requires the
deferral of $1,300,000,000 from March, and $763,794,000 from April,
to August of the same calendar year.  
   This bill instead would require, commencing with 2011-12 fiscal
year, the deferral of $1,053,156,000 from February to July of the
same calendar year.  
   (8) Existing law prescribes the percentage of General Fund
revenues to be appropriated for school districts and community
college districts for purposes of the provisions of the California
Constitution requiring minimum funding for the public schools.
 
   This bill would appropriate $81,129,000 from the General Fund to
the Controller for transfer to Section B of the State School Fund for
the purpose of providing one-time apportionment funding to community
colleges for the 2011-12 fiscal year for the purpose of reducing the
amount of apportionment funding deferred from January to June,
inclusive, 2012, to July 2012.  
   The bill would require that, for purposes of the provisions of the
California Constitution requiring minimum funding for the public
schools, the amount appropriated and allocated pursuant to this
provision, and $663,171,000 of the amounts transferred for the
2011-12 fiscal year, be applied to the outstanding balance of the
constitutional minimum funding obligation to school districts and
community college districts for the 2006-07 and 2009-10 fiscal years.
 
   (9) 
    (5)  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. Existing law reduces the revenue limit for each
school district for the 2011-12 fiscal year by a deficit factor of
19.608%.
   This bill instead would set the deficit factor for each school
district for the 2011-12 fiscal year at 19.754%. 
   (6) Under existing law county offices of education receive certain
property tax revenues. Existing law requires a revenue limit to be
calculated for each county superintendent of schools and requires the
amount of the revenue limit to be adjusted for various factors,
including the amount of property tax revenues a county office of
education receives.  
   This bill would require the Superintendent of Public Instruction
to determine the amount of excess property taxes available to county
offices of education and would require the auditor-controller of each
county to distribute those amounts first to the school districts in
the county for purposes of revenue limits in amounts that do not
exceed the amounts that would reduce the state General Fund
apportionments for revenue limits for those school districts to zero,
and then to distribute any remaining funds to one or more community
college districts within the county, as determined by the Chancellor
of the California Community Colleges, for purposes of general purpose
apportionments, as specified. After those distributions are made,
the bill would require any remaining funds to be distributed to local
educational agencies within the county for the purpose of providing
educationally related mental health services required pursuant to
specified federal law and then to the county for the operation of
health and human services programs pursuant to a plan developed
jointly by the Director of Finance and the Secretary of Health and
Human Services. By imposing additional duties on local agency
officials, this bill would impose a state-mandated local program.
 
   (10) 
    (7)  Existing law requires the Superintendent of Public
Instruction to allocate, for the 2010-11 and 2011-12 fiscal years, a
supplemental categorical block grant to a charter school that begins
operation in the 2008-09, 2009-10, 2010-11, or 2011-12 fiscal year.
Existing law requires that this supplemental categorical block grant
equal $127 per unit of charter school average daily attendance as
determined at the 2010-11 2nd principal apportionment for schools
commencing operations in the 2008-09, 2009-10, or 2010-11 fiscal year
and at the 2011-12 2nd principal apportionment for schools
commencing operations in the 2011-12 fiscal year. Existing law
prohibits a locally funded charter school that converted from a
preexisting school between the 2008-09 and 2011-12 fiscal years,
inclusive, from receiving these funds.
   This bill instead would provide that, to the extent funds are
provided, for the 2010-11 to the 2014-15 fiscal years, inclusive, a
supplemental categorical block grant would be allocated to charter
schools commencing operations during or after the 2008-09 fiscal
year. The bill would provide that a locally or direct funded charter
school, not just a locally funded charter school, that converted from
a preexisting school between the 2008-09 and 2014-15 fiscal years,
inclusive, would be prohibited from receiving these funds.
   The bill would provide that for, the 2010-11 to the 2014-15 fiscal
years, inclusive, the supplemental categorical block grant received
by eligible charter schools would equal $127 per unit of charter
school average daily attendance for charter schools commencing
operations during or after the 2008-09 fiscal year, as specified.

   (11) 
    (8)  Existing law requires school districts, county
offices of education, and special education local plan areas to
comply with state laws that conform to the federal Individuals with
Disabilities Education Act (IDEA), in order that the state may
qualify for federal funds available for the education of individuals
with exceptional needs. Existing law requires school districts,
county offices of education, and special education local plan areas
to identify, locate, and assess individuals with exceptional needs
and to provide those pupils with a free appropriate public education
in the least restrictive environment, and with special education and
related services as reflected in an individualized education program
(IEP). Existing law requires the Superintendent of Public Instruction
to administer the special education provisions of the Education Code
and to be responsible for assuring provision of, and supervising,
education and related services to individuals with exceptional needs
as required pursuant to the federal IDEA.
   Existing law authorizes referral, through a prescribed process, of
a pupil who is suspected of needing mental health services to a
community mental health service. Existing law requires the State
Department of Mental Health or a designated community mental health
service to be responsible for the provision of mental health
services, as defined, if required in a pupil's IEP.
   This bill would make these provisions concerning referral for
mental health services inoperative as of July 1, 2011, would repeal
them as of January 1, 2012, and would make other related conforming
changes. 
   (12) 
    (9)  Existing law, for the 2008-09 to the 2014-15 fiscal
years, inclusive, provides that the governing board of a school
district is not required to provide pupils with instructional
materials by a specified period of time following adoption of those
materials by the State Board of Education.
   This bill would make a technical, nonsubstantive change in this
provision by changing its section number. 
   (13) 
    (10)  Existing law, the
Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program (Cal Grant
Program), establishes the Cal Grant A and B Entitlement Awards, the
California Community College Transfer Entitlement Awards, the
Competitive Cal Grant A and B Awards, the Cal Grant C Awards, and the
Cal Grant T Awards under the administration of the Student Aid
Commission, and establishes eligibility requirements for awards under
these programs for participating students attending qualifying
institutions.
   Existing law imposes requirements on qualifying institutions,
requiring the commission to certify by October 1 of each year the
institution's latest 3-year cohort default rate as most recently
reported by the United States Department of Education. Existing law
provides that an otherwise qualifying institution that did not meet a
specified 3-year cohort default rate would be ineligible for new Cal
Grant awards at the institution. Under the Cal Grant Program, for
the 2012-13 academic year and every academic year thereafter, an
otherwise qualifying institution with a 3-year cohort default rate
that is equal to or greater than 30% is ineligible for initial or
renewal Cal Grant awards at the institution, except as specified.
   This bill instead would specify that an otherwise qualifying
institution with a 3-year cohort default rate that is equal to or
greater than 30% is ineligible for initial and renewal Cal Grant
awards at the institution, except as specified. 
   (14) Existing law requires the Board of Governors of the
California Community Colleges to adopt regulations for the payment of
apportionments to community college districts. Existing law,
notwithstanding the board of governors' authority in this respect,
makes various adjustments to the payment of these apportionments.
Existing law appropriates $961,000,000 from the General Fund to the
Board of Governors of the California Community Colleges for
apportionments to community college districts for expenditure during
the 2012-13 fiscal year in accordance with a schedule that requires
$832,000,000 of that amount to be allocated in July of the 2012-13
fiscal year and $129,000,000 of that amount to be allocated in
October of the 2012-13 fiscal year.  
   This bill would reduce this appropriation to $560,792,000,
eliminate the above allocation provisions, and make conforming
changes in the schedule. By reducing an existing appropriation, the
bill would make an appropriation.  
   (15) Existing law establishes the California State University
under the administration of the Trustees of the California State
University. Existing law authorizes the trustees to draw from funds
appropriated to the university, for use as a revolving fund, amounts
necessary to make payments of obligations of the university directly
to vendors. Existing law requires the trustees to contract with one
or more public accounting firms to conduct systemwide and individual
campus annual financial statement and compliance audits. Existing law
further requires that at least 10 individual campus audits be
conducted annually on a rotating basis, and that each campus be
audited at least once every 2 years.  
   This bill would require the annual audits to be conducted in
accordance with generally accepted accounting principles. The bill
would delete the requirements that at least 10 individual campus
audits be conducted annually on a rotating basis, and that each
campus be audited at least once every 2 years. The bill would require
that the statements of net assets, revenues, expenses, changes in
net assets, and cashflows be included as an addendum to the annual
systemwide audit.  
   (16) 
    (11)  Under the California Constitution, whenever the
Legislature or a state agency mandates a new program or higher level
of service on any local government, the state is required to provide
a subvention of funds to reimburse the local government, with
specified exceptions. Existing law provides that no local agency or
school district is required to implement or give effect to any
statute or executive order, or portion thereof, that imposes a
mandate during any fiscal year and for the period immediately
following that fiscal year for which the Budget Act has not been
enacted for the subsequent fiscal year if specified conditions are
met including that the statute or executive order, or portion
thereof, has been specifically identified by the Legislature in the
Budget Act for the fiscal year as being one for which reimbursement
is not provided for that fiscal year. Existing law provides that only
certain specified mandates are subject to that provision.
   This bill would specify 2 additional mandates relating to
community college districts to those that are subject to the
provision. 
   (17) 
    (12)  The Administrative Procedure Act, among other
things, sets forth procedures for the development, adoption, and
promulgation of regulations by administrative agencies charged with
the implementation of statutes.
   This bill would authorize the State Department of Social Services
and the State Department of Education, notwithstanding the procedures
required by the Administrative Procedure Act, to implement the
provisions of the bill that relate to the Child Care and Development
Services Act through all-county letters, management bulletins, or
other similar instructions. 
   (18) 
    (13)  This bill would provide that the implementation of
the provisions of the bill related to the provision of child care
services would not be subject to the appeal and resolution procedures
for agencies that contract with the State Department of Education
for these purposes. 
   (19) 
    (14)  This bill would express the intent of the
Legislature that specified funding in the Budget Act of 2011 related
to  educationally related  mental health services would be
exclusively available only for the 2011-12 and 2012-13 fiscal years.

   (20) 
    (15)  This bill would express the intent of the
Legislature that the State Department of Education and  the
Department of Mental Health   appropriate departments
within the California Health and Human Services Agency modify or
 repeal regulations pertaining to the elimination of statutes
pursuant to this bill related to mental health services provided by
county mental health agencies. The bill would require the State
Department of Education and  the Department of Mental Health
  appropriate departments within the California Health
and Human Services Agency  to review  specified
 regulations to ensure appropriate implementation of 
educationally related  mental health  related 
services for individuals with exceptional needs pursuant to
  required by  the federal Individuals with
Disabilities Education Act and  of certain  statutes enacted
pursuant to this bill. The bill would authorize the State Department
of Education and  the Department of Mental Health 
 appropriate departments within the California Health and Human
Services Agency  to utilize the statutory process for adopting
emergency regulations in implementing  any regulatory changes
resulting from this review   certain statutes enacted
pursuant to this bill  . 
   (21)  
   (16) This bill would authorize the Controller to defer, as
necessary, the June 2012 allocations to the University of California
until not later than August 31, 2012, for purposes of cash
management. 
    (17)  This bill would make conforming changes, correct
some cross-references, and make other technical, nonsubstantive
changes. 
   (22)  
   (18) 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.  
   (19) Existing law requires the State Department of Education to
award grants to school districts, county superintendents of schools,
or entities approved by the department for nonrecurring expenses
incurred in initiating or expanding a school breakfast program or a
summer food service program.  
   This bill would make an appropriation of $1,000 for purposes of
these grants.
    (20)  The funds appropriated by this bill would be
applied toward the minimum funding requirements for school districts
and community college districts imposed by Section 8 of Article XVI
of the California Constitution. 
   (23) 
    (21)  This bill would declare that it is to take effect
immediately as a bill providing for appropriations related to the
Budget Bill.
   Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program:  no   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 7.839 percent deficit factor.
   (6) For the 2009-10 fiscal year, the revenue limit for each county
superintendent of schools determined pursuant to this article shall
be reduced by an 18.621 percent deficit factor.
   (7) For the 2010-11 fiscal year, the revenue limit for each county
superintendent of schools determined pursuant to this article shall
be reduced by an 18.250 percent deficit factor.
   (8) For the 2011-12 fiscal year, the revenue limit for each county
superintendent of schools determined pursuant to this article shall
be reduced by a 20.041 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 subdivision (a).
   (c) In computing the revenue limit for each county superintendent
of schools for the 2010-11 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 2009-10
fiscal year without being reduced by the deficit factors specified in
subdivision (a).
   (d) In computing the revenue limit for each county superintendent
of schools for the 2011-12 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 2010-11
fiscal year without being reduced by the deficit factors specified in
subdivision (a).
   (e) In computing the revenue limit for each county superintendent
of schools for the 2012-13 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 2011-12
fiscal year without being reduced by the deficit factor specified in
subdivision (a).
  SEC. 2.  Section 8201 of the Education Code is amended to read:
   8201.  The purpose of this chapter is as follows:
   (a) To provide a comprehensive, coordinated, and cost-effective
system of child care and development services for children from
infancy to 13 years of age and their parents, including a full range
of supervision, health, and support services through full- and
part-time programs.
   (b) To encourage community-level coordination in support of child
care and development services.
   (c) To provide an environment that is healthy and nurturing for
all children in child care and development programs.
   (d) To provide the opportunity for positive parenting to take
place through understanding of human growth and development.
   (e) To reduce strain between parent and child in order to prevent
abuse, neglect, or exploitation.
   (f) To enhance the cognitive development of children, with
particular emphasis upon those children who require special
assistance, including bilingual capabilities to attain their full
potential.
   (g) To establish a framework for the expansion of child care and
development services.
   (h) To empower and encourage parents and families of children who
require child care services to take responsibility to review the
safety of the child care program or facility and to evaluate the
ability of the program or facility to meet the needs of the child.
  SEC. 3.  Section 8208 of the Education Code is amended to read:
   8208.  As used in this chapter:
   (a) "Alternative payments" includes payments that are made by one
child care agency to another agency or child care provider for the
provision of child care and development services, and payments that
are made by an agency to a parent for the parent's purchase of child
care and development services.
   (b) "Alternative payment program" means a local government agency
or nonprofit organization that has contracted with the department
pursuant to Section 8220.1 to provide alternative payments and to
provide support services to parents and providers.
   (c) "Applicant or contracting agency" means a school district,
community college district, college or university, county
superintendent of schools, county, city, public agency, private
nontax-exempt agency, private tax-exempt agency, or other entity that
is authorized to establish, maintain, or operate services pursuant
to this chapter. Private agencies and parent cooperatives, duly
licensed by law, shall receive the same consideration as any other
authorized entity with no loss of parental decisionmaking
prerogatives as consistent with the provisions of this chapter.
   (d) "Assigned reimbursement rate" is that rate established by the
contract with the agency and is derived by dividing the total dollar
amount of the contract by the minimum child day of average daily
enrollment level of service required.
   (e) "Attendance" means the number of children present at a child
care and development facility. "Attendance," for the purposes of
reimbursement, includes excused absences by children because of
illness, quarantine, illness or quarantine of their parent, family
emergency, or to spend time with a parent or other relative as
required by a court of law or that is clearly in the best interest of
the child.
   (f) "Capital outlay" means the amount paid for the renovation and
repair of child care and development facilities to comply with state
and local health and safety standards, and the amount paid for the
state purchase of relocatable child care and development facilities
for lease to qualifying contracting agencies.
   (g) "Caregiver" means a person who provides direct care,
supervision, and guidance to children in a child care and development
facility.
   (h) "Child care and development facility" means any residence or
building or part thereof in which child care and development services
are provided.
   (i) "Child care and development programs" means those programs
that offer a full range of services for children from infancy to 13
years of age, for any part of a day, by a public or private agency,
in centers and family child care homes. These programs include, but
are not limited to, all of the following:
   (1) General child care and development.
   (2) Migrant child care and development.
   (3) Child care provided by the California School Age Families
Education Program (Article 7.1 (commencing with Section 54740) of
Chapter 9 of Part 29 of Division 4 of Title 2).
   (4) California state preschool program.
   (5) Resource and referral.
   (6) Child care and development services for children with
exceptional needs.
   (7) Family child care home education network.
   (8) Alternative payment.
   (9) Schoolage community child care.
   (j) "Child care and development services" means those services
designed to meet a wide variety of needs of children and their
families, while their parents or guardians are working, in training,
seeking employment, incapacitated, or in need of respite. These
services may include direct care and supervision, instructional
activities, resource and referral programs, and alternative payment
arrangements.
   (k) "Children at risk of abuse, neglect, or exploitation" means
children who are so identified in a written referral from a legal,
medical, or social service agency, or emergency shelter.
   (l) "Children with exceptional needs" means either of the
following:
   (1) Infants and toddlers under three years of age who have been
determined to be eligible for early intervention services pursuant to
the California Early Intervention Services Act (Title 14 (commencing
with Section 95000) of the Government Code) and its implementing
regulations. These children include an infant or toddler with a
developmental delay or established risk condition, or who is at high
risk of having a substantial developmental disability, as defined in
subdivision (a) of Section 95014 of the Government Code. These
children shall have active individualized family service plans, shall
be receiving early intervention services, and shall be children who
require the special attention of adults in a child care setting.
   (2) Children ages 3 to 21 years, inclusive, who have been
determined to be eligible for special education and related services
by an individualized education program team according to the special
education requirements contained in Part 30 (commencing with Section
56000) of Division 4 of Title 2, and who meet eligibility criteria
described in Section 56026 and, Article 2.5 (commencing with Section
56333) of Chapter 4 of Part 30 of Division 4 of Title 2, and Sections
3030 and 3031 of Title 5 of the California Code of Regulations.
These children shall have an active individualized education program,
shall be receiving early intervention services or appropriate
special education and related services, and shall be children who
require the special attention of adults in a child care setting.
These children include children with mental retardation, hearing
impairments (including deafness), speech or language impairments,
visual impairments (including blindness), serious emotional
disturbance (also referred to as emotional disturbance), orthopedic
impairments, autism, traumatic brain injury, other health
impairments, or specific learning disabilities, who need special
education and related services consistent with Section 1401(3)(A) of
Title 20 of the United States Code.
   (m) "Closedown costs" means reimbursements for all approved
activities associated with the closing of operations at the end of
each growing season for migrant child development programs only.
   (n) "Cost" includes, but is not limited to, expenditures that are
related to the operation of child care and development programs.
"Cost" may include a reasonable amount for state and local
contributions to employee benefits, including approved retirement
programs, agency administration, and any other reasonable program
operational costs. "Cost" may also include amounts for licensable
facilities in the community served by the program, including lease
payments or depreciation, downpayments, and payments of principal and
interest on loans incurred to acquire, rehabilitate, or construct
licensable facilities, but these costs shall not exceed fair market
rents existing in the community in which the facility is located.
"Reasonable and necessary costs" are costs that, in nature and
amount, do not exceed what an ordinary prudent person would incur in
the conduct of a competitive business.
   (o) "Elementary school," as contained in former Section 425 of
Title 20 of the United States Code (the National Defense Education
Act of 1958, Public Law 85-864, as amended), includes early childhood
education programs and all child development programs, for the
purpose of the cancellation provisions of loans to students in
institutions of higher learning.
   (p) "Family child care home education network" means an entity
organized under law that contracts with the department pursuant to
Section 8245 to make payments to licensed family child care home
providers and to provide educational and support services to those
providers and to children and families eligible for state-subsidized
child care and development services. A family child care home
education network may also be referred to as a family child care home
system.
   (q) "Health services" include, but are not limited to, all of the
following:
   (1) Referral, whenever possible, to appropriate health care
providers able to provide continuity of medical care.
   (2) Health screening and health treatment, including a full range
of immunization recorded on the appropriate state immunization form
to the extent provided by the Medi-Cal Act (Chapter 7 (commencing
with Section 14000) of Part 3 of Division 9 of the Welfare and
Institutions Code) and the Child Health and Disability Prevention
Program (Article 6 (commencing with Section 124025) of Chapter 3 of
Part 2 of Division 106 of the Health and Safety Code), but only to
the extent that ongoing care cannot be obtained utilizing community
resources.
   (3) Health education and training for children, parents, staff,
and providers.
   (4) Followup treatment through referral to appropriate health care
agencies or individual health care professionals.
   (r) "Higher educational institutions" means the Regents of the
University of California, the Trustees of the California State
University, the Board of Governors of the California Community
Colleges, and the governing bodies of any accredited private
nonprofit institution of postsecondary education.
   (s) "Intergenerational staff" means persons of various
generations.
   (t) "Limited-English-speaking-proficient and
non-English-speaking-proficient children" means children who are
unable to benefit fully from an English-only child care and
development program as a result of either of the following:
   (1) Having used a language other than English when they first
began to speak.
   (2) Having a language other than English predominantly or
exclusively spoken at home.
   (u) "Parent" means a biological parent, stepparent, adoptive
parent, foster parent, caretaker relative, or any other adult living
with a child who has responsibility for the care and welfare of the
child.
   (v) "Program director" means a person who, pursuant to Sections
8244 and 8360.1, is qualified to serve as a program director.
   (w) "Proprietary child care agency" means an organization or
facility providing child care, which is operated for profit.
   (x) "Resource and referral programs" means programs that provide
information to parents, including referrals and coordination of
community resources for parents and public or private providers of
care. Services frequently include, but are not limited to: technical
assistance for providers, toy-lending libraries, equipment-lending
libraries, toy- and equipment-lending libraries, staff development
programs, health and nutrition education, and referrals to social
services.
   (y) "Severely disabled children" are children with exceptional
needs from birth to 21 years of age, inclusive, who require intensive
instruction and training in programs serving pupils with the
following profound disabilities: autism, blindness, deafness, severe
orthopedic impairments, serious emotional disturbances, or severe
mental retardation. "Severely disabled children" also include those
individuals who would have been eligible for enrollment in a
developmental center for handicapped pupils under Chapter 6
(commencing with Section 56800) of Part 30 of Division 4 of Title 2
as it read on January 1, 1980.
   (z) "Short-term respite child care" means child care service to
assist families whose children have been identified through written
referral from a legal, medical, or social service agency, or
emergency shelter as being neglected, abused, exploited, or homeless,
or at risk of being neglected, abused, exploited, or homeless. Child
care is provided for less than 24 hours per day in child care
centers, treatment centers for abusive parents, family child care
homes, or in the child's own home.
   (aa) (1) "Site supervisor" means a person who, regardless of his
or her title, has operational program responsibility for a child care
and development program at a single site. A site supervisor shall
hold a permit issued by the Commission on Teacher Credentialing that
authorizes supervision of a child care and development program
operating in a single site. The Superintendent may waive the
requirements of this subdivision if the Superintendent determines
that the existence of compelling need is appropriately documented.
   (2) For California state preschool programs, a site supervisor may
qualify under any of the provisions in this subdivision, or may
qualify by holding an administrative credential or an administrative
services credential. A person who meets the qualifications of a
program director under both Sections 8244 and 8360.1 is also
qualified under this subdivision.
   (ab) "Standard reimbursement rate" means that rate established by
the Superintendent pursuant to Section 8265.
   (ac) "Startup costs" means those expenses an agency incurs in the
process of opening a new or additional facility prior to the full
enrollment of children.
   (ad) "California state preschool program" means part-day and
full-day educational programs for low-income or otherwise
disadvantaged three- and four-year-old children.
   (ae) "Support services" means those services that, when combined
with child care and development services, help promote the healthy
physical, mental, social, and emotional growth of children. Support
services include, but are not limited to: protective services, parent
training, provider and staff training, transportation, parent and
child counseling, child development resource and referral services,
and child placement counseling.
   (af) "Teacher" means a person with the appropriate permit issued
by the Commission on Teacher Credentialing who provides program
supervision and instruction that includes supervision of a number of
aides, volunteers, and groups of children.
   (ag) "Underserved area" means a county or subcounty area,
including, but not limited to, school districts, census tracts, or
ZIP Code areas, where the ratio of publicly subsidized child care and
development program services to the need for these services is low,
as determined by the Superintendent.
   (ah) "Workday" means the time that the parent requires temporary
care for a child for any of the following reasons:
   (1) To undertake training in preparation for a job.
   (2) To undertake or retain a job.
   (3) To undertake other activities that are essential to
maintaining or improving the social and economic function of the
family, are beneficial to the community, or are required because of
health problems in the family.
   (ai) "Three-year-old children" means children who will have their
third birthday on or before December 2 of the fiscal year in which
they are enrolled in a California state preschool program.
   (aj) "Four-year-old children" means children who will have their
fourth birthday on or before December 2 of the fiscal year in which
they are enrolled in a California state preschool program.
   (ak) "Local educational agency" means a school district, a county
office of education, a community college district, or a school
district on behalf of one or more schools within the school district.

  SEC. 4.    Section 8263.2 of the Education Code is
amended to read:
   8263.2.  (a) Notwithstanding any other law, effective July 1,
2011, the department shall reduce the maximum reimbursable amounts of
the contracts for the Preschool Education Program, the General Child
Care Program, the Migrant Day Care Program, the Alternative Payment
Program, the CalWORKs Stage 3 Program, and the Allowance for
Handicapped Program by 11 percent. The department may consider the
contractor's performance or whether the contractor serves children in
underserved areas as defined in subdivision (ag) of Section 8208
when determining contract reductions, provided that the aggregate
reduction to each program specified in this subdivision is 11
percent.
   (b) Notwithstanding any other law, effective July 1, 2011,
families shall be disenrolled from subsidized child care services,
consistent with the priorities for services specified in subdivision
(b) of Section 8263. Families shall be disenrolled in the following
order:
   (1) Families whose income exceeds 70 percent of the state median
income (SMI) adjusted for family size, except for families whose
children are receiving child protective services or are at risk of
being neglected or abused.
   (2) Families with the highest income below 70 percent of the SMI,
in relation to family size.
   (3) Families that have the same income and have been enrolled in
child care services the longest.
   (4) Families that have the same income and have a child with
exceptional needs.
   (5) Families whose children are receiving child protective
services or are at risk of being neglected or abused, regardless of
family income. 
   SEC. 5.   SEC. 4.   Section 8263.4 of
the Education Code is amended to read:
   8263.4.  (a) The preferred placement for children who are 11 or 12
years of age and who are otherwise eligible for subsidized child
care and development services shall be in a before or after school
program.
   (b) Children who are 11 or 12 years of age shall be eligible for
subsidized child care services only for the portion of care needed
that is not available in a before or after school program provided
pursuant to Article 22.5 (commencing with Section 8482) or Article
22.6 (commencing with Section 8484.7). Contractors shall provide each
family of an eligible 11 or 12 year old with the option of combining
care provided in a before or after school program with subsidized
child care in another setting, for those hours within a day when the
before or after school program does not operate, in order to meet the
child care needs of the family.
   (c) Children who are 11 or 12 years of age, who are eligible for
and who are receiving subsidized child care services, and for whom a
before or after school program is not available, shall continue to
receive subsidized child care services.
   (d) A before or after school program shall be considered not
available when a parent certifies in writing, on a form provided by
the department that is translated into the parent's primary language
pursuant to Sections 7295.4 and 7296.2 of the Government Code, the
reason or reasons why the program would not meet the child care needs
of the family. The reasons why a before or after school program
shall be considered not available shall include, but not be limited
to, any of the following:
   (1) The program does not provide services when needed during the
year, such as during the summer, school breaks, or intersession.
   (2) The program does not provide services when needed during the
day, such as in the early morning, evening, or weekend hours.
   (3) The program is too geographically distant from the child's
school of attendance.
   (4) The program is too geographically distant from the parents'
residence.
   (5) Use of the program would create substantial transportation
obstacles for the family.
   (6) Any other reason that makes the use of before or after school
care inappropriate for the child or burdensome on the family.
   (e) If an 11 or 12 year old child who is enrolled in a subsidized
child development program becomes ineligible for subsidized child
care under subdivision (b) and is disenrolled from the before or
after school program, or if the before or after school program no
longer meets the child care needs of the family, the child shall be
given priority to return to the subsidized child care services upon
the parent's notification of the contractor of the need for child
care.
   (f) This section does not apply to an 11 or 12 year old child with
a disability, including a child with exceptional needs who has an
individualized education program as required by the federal
Individuals with Disabilities Education Act (20 U.S.C. Sec. 1400 et
seq.), Section 504 of the federal Rehabilitation Act of 1973 (29
U.S.C. Sec. 794), or Part 30 (commencing with Section 56000) of
Division 4 of Title 2.
   (g) The savings generated each contract year by the implementation
of the changes made to this section by the act amending this section
during the 2005-06 Regular Session shall remain with each
alternative payment program, child development center, or other
contractor for the provision of child care services, except for care
provided by programs pursuant to Article 15.5 (commencing with
Section 8350). Each contractor shall report annually to the
department the amount of savings resulting from this implementation,
and the department shall report annually to the Legislature the
amount of savings statewide resulting from that implementation.

  SEC. 6.    Article 14.7 (commencing with Section
8310) is added to Chapter 2 of Part 6 of Division 1 of Title 1 of the
Education Code, to read:

      Article 14.7.  California Early Learning Advisory Council


   8310.  (a) The California Early Learning Advisory Council is
hereby established within the department to improve early learning
quality for children from birth to school age.
   (b) Membership on the advisory council shall include 13 members,
as follows:
   (1) The Superintendent or his or her designee.
   (2) The President of the state board or his or her designee.
   (3) The chairperson of the California Children and Families
Commission or his or her designee.
   (4) The President of the local First 5 County Commission
Association or his or her designee.
   (5) The Director of Social Services or his or her designee.
   (6) The Director of the California Head Start State Collaboration.

   (7) One representative of institutions of higher education in the
state.
   (8) One representative of the state agency responsible for health
or mental health care.
   (9) One representative of Head Start agencies located in the
state, including migrant or seasonal and Indian Head Start programs.
     (10) Four representatives from the early care and education
community. At least one of these representatives shall be employed by
an early childhood education program within a local educational
agency, and at least one of these representatives shall be employed
by the Alternative Payment Program or Resource and Referral Network.
   (c) The Senate Committee on Rules shall appoint the representative
of the institutions of higher education in the state, the
representative of the Head Start agencies, and one representative
from the early care and education community.
   (d) The Speaker of the Assembly shall appoint three
representatives from the early care and education community.
   (e) The Governor shall appoint the representative of the state
agency responsible for health or mental health care.
   (f) The Superintendent and the President of the state board, or
their designees, shall serve as cochairs of the advisory council.
   (g) The Governor may continue to exercise the discretion granted
by Section 9837b of Title 42 of the United States Code, as amended by
Public Law 110-134, with regard to the advisory council established
by this section.
   8311.  The advisory council shall, at a minimum, perform the
duties required by the federal 2007 Head Start Reauthorization Act
(42 U.S.C. Secs. 9801 et seq.), establish a statewide plan for early
learning, and advise the Legislature, Governor, and Superintendent
regarding early learning access, quality, and participation.
   8312.  (a) The advisory council shall seek input through the
establishment of subcommittees or other methods from persons with
expertise in the following areas:
   (1) Early learning quality improvement systems in use nationwide.
   (2) Early child care and education, including representatives from
the higher education segments, the Commission on Teacher
Credentialing, and administrators, caregivers, and teachers from both
the public and private sectors.
   (3) Kindergarten and grades 1 to 12, inclusive, public school
teachers.
   (4) English language development, including primary and secondary
language acquisition.
   (5) Education and care of children with exceptional needs or
disabilities.
   (6) Infant and toddler care.
   (7) Consumer education.
   (8) Parent and guardian engagement.
   (9) Workforce development.
   (10) Facilities development.
   (11) Technical assistance.
   (l2) Program accreditation.
   (b) The advisory council shall seek input from parents from
diverse socio-economic and racial and ethnic backgrounds. 
   SEC. 7.   SEC. 5.   Section 8447 of the
Education Code is amended to read:
   8447.  (a) The Legislature hereby finds and declares that greater
efficiencies may be achieved in the execution of state subsidized
child care and development program contracts with public and private
agencies by the timely approval of contract provisions by the
Department of Finance, the Department of General Services, and the
State Department of Education and by authorizing the State Department
of Education to establish a multiyear application, contract
expenditure, and service review as may be necessary to provide timely
service while preserving audit and oversight functions to protect
the public welfare.
   (b) (1) The Department of Finance and the Department of General
Services shall approve or disapprove annual contract funding terms
and conditions, including both family fee schedules and regional
market rate schedules that are required to be adhered to by contract,
and contract face sheets submitted by the State Department of
Education not more than 30 working days from the date of submission,
unless unresolved conflicts remain between the Department of Finance,
the State Department of Education, and the Department of General
Services. The State Department of Education shall resolve conflicts
within an additional 30 working day time period. Contracts and
funding terms and conditions shall be issued to child care
contractors no later than June 1. Applications for new child care
funding shall be issued not more than 45 working days after the
effective date of authorized new allocations of child care moneys.
   (2) Notwithstanding paragraph (1), the State Department of
Education shall implement the regional market rate schedules based
upon the county aggregates, as determined by the Regional Market
survey conducted in 2005.
   (3) Notwithstanding paragraph (1), for the 2006-07 fiscal year,
the State Department of Education shall update the family fee
schedules by family size, based on the 2005 state median income
survey data for a family of four. The family fee schedule used during
the 2005-06 fiscal year shall remain in effect. However, the
department shall adjust the family fee schedule for families that are
newly eligible to receive or will continue to receive services under
the new income eligibility limits. The family fees shall not exceed
10 percent of the family's monthly income.
   (4) Notwithstanding any other law, the family fee schedule that
was in effect for the 2007-08, 2008-09, 2009-10, and 2010-11 fiscal
years shall be adjusted to reflect the income eligibility limits
specified in subdivision (b) of Section 8263.1 for the 2011-12 fiscal
year, and shall retain a flat fee per family. The revised family fee
schedule shall begin at income levels at which families currently
begin paying fees. The revised family fees shall not exceed 10
percent of the family's monthly income. The State Department of
Education shall first submit the adjusted fee schedule to the
Department of Finance for approval in order to be implemented by July
1, 2011.
   (5) It is the intent of the Legislature to fully fund the third
stage of child care for former CalWORKs recipients.
   (c) With respect to subdivision (b), it is the intent of the
Legislature that the Department of Finance annually review contract
funding terms and conditions for the primary purpose of ensuring
consistency between child care contracts and the child care budget.
This review shall include evaluating any proposed changes to contract
language or other fiscal documents to which the contractor is
required to adhere, including those changes to terms or conditions
that authorize higher reimbursement rates, that modify related
adjustment factors, that modify administrative or other service
allowances, or that diminish fee revenues otherwise available for
services, to determine if the change is necessary or has the
potential effect of reducing the number of full-time equivalent
children that may be served.
   (d) Alternative payment child care systems, as set forth in
Article 3 (commencing with Section 8220), shall be subject to the
rates established in the Regional Market Rate Survey of California
Child Care Providers for provider payments. The State Department of
Education shall contract to conduct and complete a Regional Market
Rate Survey no more frequently than once every two years, consistent
with federal regulations, with a goal of completion by March 1.
   (e) By March 1 of each year, the Department of Finance shall
provide to the State Department of Education the State Median Income
amount for a four-person household in California based on the best
available data. The State Department of Education shall adjust its
fee schedule for child care providers to reflect this updated state
median income; however, no changes based on revisions to the state
median income amount shall be implemented midyear.
   (f) Notwithstanding the June 1 date specified in subdivision (b),
changes to the regional market rate schedules and fee schedules may
be made at any other time to reflect the availability of accurate
data necessary for their completion, provided these documents receive
the approval of the Department of Finance. The Department of Finance
shall review the changes within 30 working days of submission and
the State Department of Education shall resolve conflicts within an
additional 30 working day period. Contractors shall be given adequate
notice prior to the effective date of the approved schedules. It is
the intent of the Legislature that contracts for services not be
delayed by the timing of the availability of accurate data needed to
update these schedules.
   (g) Notwithstanding any other provision of law, no family
receiving CalWORKs cash aid may be charged a family fee.
   SEC. 8.   SEC. 6.   Section 8499 of the
Education Code is amended to read:
   8499.  For purposes of this chapter, the following definitions
shall apply:
   (a) "Block grant" means the block grant contained in Title VI of
the Child Care and Development Fund, as established by the federal
Personal Responsibility and Work Opportunity Reconciliation Act of
1996 (P.L. 104-193).
   (b) "Child care" means all licensed child care and development
services and license-exempt child care, including, but not limited
to, private for-profit programs, nonprofit programs, and publicly
funded programs, for all children up to and including 12 years of
age, including children with exceptional needs and children from all
linguistic and cultural backgrounds.
   (c) "Child care provider" means a person who provides child care
services or represents persons who provide child care services.
   (d) "Community representative" means a person who represents an
agency or business that provides private funding for child care
services, or who advocates for child care services through
participation in civic or community-based organizations but is not a
child care provider and does not represent an agency that contracts
with the State Department of Education to provide child care and
development services.
   (e) "Consumer" means a parent or person who receives, or who has
received within the past 36 months, child care services.
   (f) "Department" means the State Department of Education.
   (g) "Local planning council" means a local child care and
development planning council as described in Section 8499.3.
   (h) "Public agency representative" means a person who represents a
city, county, city and county, or local educational agency. 

  SEC. 9.    Section 14041.6 of the Education Code
is amended to read:
   14041.6.  (a) Notwithstanding subdivision (a) of Section 14041, or
any other law, commencing with the 2008-09 fiscal year, and ending
with the 2010-11 fiscal year, warrants for the principal
apportionments for the month of February in the amount of two billion
dollars ($2,000,000,000) instead shall be drawn in July of the same
calendar year pursuant to the certification made pursuant to Section
41339.
   (b) Notwithstanding subdivision (a) of Section 14041 or any other
law, commencing with the 2009-10 fiscal year, warrants for the
principal apportionments for the month of April in the amount of six
hundred seventy-eight million six hundred eleven thousand dollars
($678,611,000) and for the month of May in the amount of one billion
dollars ($1,000,000,000) instead shall be drawn in August of the same
calendar year pursuant to the certification made pursuant to Section
41339.
   (c) Notwithstanding subdivision (a) of Section 14041 or any other
law, commencing with the 2010-11 fiscal year, warrants for the
principal apportionments for the month of April in the amount of four
hundred nineteen million twenty thousand dollars ($419,020,000), for
the month of May in the amount of eight hundred million dollars
($800,000,000), and for the month of June in the amount of five
hundred million dollars ($500,000,000), instead shall be drawn in
July of the same calendar year pursuant to the certification made
pursuant to Section 41339.
   (d) Notwithstanding subdivision (a) of Section 14041 or any other
law, commencing with the 2011-12 fiscal year, warrants for the
principal apportionments for the month of February in the amount of
one billion fifty-three million one hundred fifty-six thousand
dollars ($1,053,156,000) instead shall be drawn in July of the same
calendar year pursuant to the certification made pursuant to Section
41339.
   (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 subdivisions (a), (b), (c), and (d) shall be deemed to be
"General Fund revenues appropriated to 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. 10.    Section 41207.41 is added to the
Education Code, immediately following Section 41207.4, to read:
   41207.41.  (a) The sum of eighty-one million one hundred
twenty-nine thousand dollars ($81,129,000) is hereby appropriated
from the General Fund to the Controller, for transfer to Section B of
the State School Fund for the purpose of providing one-time
apportionment funding to community colleges for the 2011-12 fiscal
year for the purpose of reducing the amount of apportionment funding
deferred from January to June, inclusive, 2012, to July 2012. The
Chancellor of the California Community Colleges shall allocate the
funding in a manner that conforms to the amounts deferred pursuant to
Section 84321.6.
   (b) For purposes of Section 8 of Article XVI of the California
Constitution, the amounts appropriated and allocated pursuant to
subdivision (a) and six hundred sixty-three million one hundred
seventy-one thousand dollars ($663,171,000) of the amounts
transferred pursuant to Section 14002.3 for the 2011-12 fiscal year
shall be applied to 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
for the 2006-07 and 2009-10 fiscal years. These amounts shall be
deemed to be appropriations made and allocated in those fiscal years
in which the deficiencies resulting in the outstanding balance were
incurred. 
   SEC. 11.   SEC. 7.   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
7.844 percent deficit factor.
   (6) For the 2009-10 fiscal year, the revenue limit for each school
district determined pursuant to this article shall be reduced by a
18.355 percent deficit factor.
   (7) For the 2010-11 fiscal year, the revenue limit for each school
district determined pursuant to this article shall be reduced by a
17.963 percent deficit factor.
   (8) For the 2011-12 fiscal year, the revenue limit for each school
district determined pursuant to this article shall be reduced by a
19.754 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
subdivision (a).
   (c) In computing the revenue limit for each school district for
the 2010-11 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 2009-10 fiscal year without being reduced
by the deficit factors specified in subdivision (a).
   (d) In computing the revenue limit for each school district for
the 2011-12 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 2010-11 fiscal year without being reduced
by the deficit factors specified in subdivision (a).
   (e) In computing the revenue limit for each school district for
the 2012-13 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 2011-12 fiscal year without being reduced
by the deficit factors specified in subdivision (a). 
  SEC. 8.    Section 42251 is added to the Education Code,
to read:
   42251.  (a) The Superintendent shall make the following
calculations for the 2011-12 fiscal year:
   (1) Determine the amount of funds that will be restricted after
the Superintendent makes the deduction pursuant to Section 52335.3
for each county office of education pursuant to subdivision (e) of
Section 2558 as of June 30, 2012.
   (2) Divide fifty million dollars ($50,000,000) by the statewide
sum of the amounts determined pursuant to paragraph (1). If the
fraction is greater than one it shall be deemed to be one.
   (3) Multiply the fraction determined pursuant to paragraph (2) by
the amount determined pursuant to paragraph (1) for each county
office of education.
   (b) The auditor-controller of each county shall distribute the
amounts determined in paragraph (3) of subdivision (a) in the
following priority order:
   (1) To one or more school districts within the county, as
determined by the Superintendent, for purposes of revenue limits
pursuant to Section 42238 in amounts that do not exceed the amounts
that would reduce the state General Fund apportionments for revenue
limits for those school districts to zero.
   (2) Any remaining amounts to one or more community college
districts within the county, as determined by the Chancellor of the
California Community Colleges, for purposes of general purpose
apportionments pursuant to Article 2 (commencing with Section
84750.5) of Chapter 5 of Part 50 of Division 7 of Title 3 in amounts
that do not exceed the amounts that would reduce the state General
Fund allocations for the general purpose apportionments for those
community college districts to zero.
   (3) Any remaining amounts to local educational agencies within the
county for the purpose of providing educationally related mental
health services required pursuant to the federal Individuals with
Disabilities Education Act (20 U.S.C. Sec. 1400 et seq.). The
Superintendent shall designate the local educational agencies and the
amounts to be distributed for purposes of this paragraph, provided
that the amounts distributed pursuant to this paragraph shall not
exceed the amounts of state General Funds that would otherwise be
allocated to the local educational agencies by law for educationally
related mental health services required pursuant to the federal
Individuals with Disabilities Education Act (20 U.S.C. Sec. 1400 et
seq.). The Director of Finance shall reduce the state General Fund
allocations to the local educational agencies for educationally
related mental health services required pursuant to the federal
Individuals with Disabilities Education Act (20 U.S.C. Sec. 1400 et
seq.) by the amounts distributed pursuant to this paragraph.
   (4) Any remaining amounts to the county for the operation of
health and human services programs pursuant to a plan developed
jointly by the Director of Finance and the Secretary of Health and
Human Services. The Director of Finance shall reduce state General
Fund allocations for these services by the amounts distributed
pursuant to his paragraph. 
   SEC. 12.   SEC. 9.   Section 42606 of
the Education Code is repealed.
   SEC. 13.   SEC. 10.   Section 42606 is
added to the Education Code, to read:
   42606.  (a) To the extent funds are provided, for the 2010-11 to
the 2014-15 fiscal years, inclusive, the Superintendent shall
allocate a supplemental categorical block grant to a charter school
that began operation during or after the 2008-09 fiscal year. These
supplemental categorical block grant funds may be used for any
educational purpose. Commencing in the 2011-12 fiscal year, a locally
or direct funded charter school that converted from a preexisting
school between the 2008-09 and 2014-15 fiscal years, inclusive, is
not eligible for funding specified in this section. A charter school
that receives funding pursuant to this subdivision shall not receive
additional funding for programs specified in paragraph (2) of
subdivision (a) of Section 42605, with the exception of the program
funded pursuant to Item 6110-211-0001 of Section 2.00 of the annual
Budget Act.
   (b) (1) For the 2010-11 fiscal year, the supplemental categorical
block grant shall equal one hundred twenty-seven dollars ($127) per
unit of charter school average daily attendance as determined at the
2010-11 second principal apportionment for charter schools commencing
operations during or after the 2008-09 fiscal year. A locally funded
charter school that converted from a preexisting school during or
after the 2008-09 fiscal year is not eligible for funding specified
in this section.
   (2) For the 2011-12 to the 2014-15 fiscal years, inclusive, the
supplemental categorical block grant shall equal one hundred
twenty-seven dollars ($127) per unit of charter school average daily
attendance as determined at the current year second principal
apportionment for charter schools commencing operations during or
after the 2008-09 fiscal year. In lieu of this supplemental grant, a
school district shall provide new conversion charter schools that
commenced operations within the district during or after the 2008-09
fiscal year, one hundred twenty-seven dollars ($127) per unit of
charter school average daily attendance as determined at the current
year second principal apportionment. This paragraph does not preclude
a school district and a new conversion charter school from
negotiating an alternative funding rate. Absent agreement from both
parties on an alternative rate, the school district shall be
obligated to provide funding at the one hundred twenty-seven dollars
($127) per average daily attendance rate.
   SEC. 14.   SEC. 11.   Section 56139 of
the Education Code is amended to read:
   56139.   (a)    The Superintendent is
responsible for monitoring local educational agencies to ensure
compliance with the requirement to provide mental health services to
individuals with exceptional needs pursuant to  the federal
Individuals with Disabilities Education Act (20 U.S.C. Sec. 1400 et
seq.) and to ensure that funds provided for this purpose are
appropriately utilized.  Chapter 26.5 (commencing with
Section 7570) of Division 7 of Title 1 of the Government Code and to
ensure that funds provided for this purpose are appropriately
utilized.
   (b) The  superintendent   Superintendent
 shall submit a report to the Legislature by April 1, 2005, that
includes all of the following:
   (1) A description of the data that is currently collected by the
department related to pupils served and services provided pursuant to
Chapter 26.5 (commencing with Section 7570) of Division 7 of Title 1
of the Government Code.
   (2) A description of the existing monitoring processes used by the
department to ensure that local educational agencies are complying
with Chapter 26.5 (commencing with Section 7570) of Division 7 of
Title 1 of the Government Code, including the monitoring performed to
ensure the appropriate use of funds for programs identified in
Section 64000.
   (3) Recommendations on the manner in which to strengthen and
improve monitoring by the department of the compliance by a local
educational agency with the requirements of Chapter 26.5 (commencing
with Section 7570) of Division 7 of Title 1 of the Government Code,
on the manner in which to strengthen and improve collaboration and
coordination with the State Department of Mental Health in monitoring
and data collection activities, and on the additional data needed
related to Chapter 26.5 (commencing with Section 7570) of Division 7
of Title 1 of the Government Code.
   (c) The  superintendent   Superintendent
 shall collaborate with the Director  of the State
Department  of Mental Health in preparing the report
required pursuant to subdivision (b) and shall convene at least one
meeting of appropriate stakeholders and organizations, including a
representative from the State Department of Mental Health and mental
health directors, to obtain input on existing data collection and
monitoring processes, and on ways to strengthen and improve the data
collected and monitoring performed. 
   (d) This section shall become inoperative on July 1, 2011, and, as
of January 1, 2012, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2012, deletes or
extends the dates on which it becomes
                      inoperative and is repealed. 
   SEC. 15.   SEC. 12.   Section 56325 of
the Education Code is amended to read:
   56325.  (a) (1) As required by subclause (I) of clause (i) of
subparagraph (C) of paragraph (2) of subsection (d) of Section 1414
of Title 20 of the United States Code, the following shall apply to
special education programs for individuals with exceptional needs who
transfer from district to district within the state. In the case of
an individual with exceptional needs who has an individualized
education program and transfers into a district from a district not
operating programs under the same local plan in which he or she was
last enrolled in a special education program within the same academic
year, the local educational agency shall provide the pupil with a
free appropriate public education, including services comparable to
those described in the previously approved individualized education
program, in consultation with the parents, for a period not to exceed
30 days, by which time the local educational agency shall adopt the
previously approved individualized education program or shall
develop, adopt, and implement a new individualized education program
that is consistent with federal and state law.
   (2) In the case of an individual with exceptional needs who has an
individualized education program and transfers into a district from
a district operating programs under the same special education local
plan area of the district in which he or she was last enrolled in a
special education program within the same academic year, the new
district shall continue, without delay, to provide services
comparable to those described in the existing approved individualized
education program, unless the parent and the local educational
agency agree to develop, adopt, and implement a new individualized
education program that is consistent with federal and state law.
   (3) As required by subclause (II) of clause (i) of subparagraph
(C) of paragraph (2) of subsection (d) of Section 1414 of Title 20 of
the United States Code, the following shall apply to special
education programs for individuals with exceptional needs who
transfer from an educational agency located outside the State of
California to a district within California. In the case of an
individual with exceptional needs who transfers from district to
district within the same academic year, the local educational agency
shall provide the pupil with a free appropriate public education,
including services comparable to those described in the previously
approved individualized education program, in consultation with the
parents, until the local educational agency conducts an assessment
pursuant to paragraph (1) of subsection (a) of Section 1414 of Title
20 of the United States Code, if determined to be necessary by the
local educational agency, and develops a new individualized education
program, if appropriate, that is consistent with federal and state
law.
   (b) (1) To facilitate the transition for an individual with
exceptional needs described in subdivision (a), the new school in
which the individual with exceptional needs enrolls shall take
reasonable steps to promptly obtain the pupil's records, including
the individualized education program and supporting documents and any
other records relating to the provision of special education and
related services to the pupil, from the previous school in which the
pupil was enrolled, pursuant to paragraph (2) of subsection (a) of
Section 99.31 of Title 34 of the Code of Federal Regulations.
   (2) The previous school in which the individual with exceptional
needs was enrolled shall take reasonable steps to promptly respond to
the request from the new school.
   (c) If whenever a pupil described in subdivision (a) was placed
and residing in a residential nonpublic, nonsectarian school, prior
to transferring to a district in another special education local plan
area, and this placement is not eligible for funding pursuant to
Section 56836.16, the special education local plan area that contains
the district that made the residential nonpublic, nonsectarian
school placement is responsible for the funding of the placement,
including related services, for the remainder of the school year. An
extended year session is included in the school year in which the
session ends.
   SEC. 16.   SEC. 13.   Section 56331 of
the Education Code is amended to read:
   56331.  (a) A pupil who is suspected of needing mental health
services may be referred to a community mental health service in
accordance with Section 7576 of the Government Code.
   (b) Prior to referring a pupil to a county mental health agency
for services, the local educational agency shall follow the
procedures set forth in Section 56320 and conduct an assessment in
accordance with Sections 300.301 to 300.306, inclusive, of Title 34
of the Code of Federal Regulations. If an individual with exceptional
needs is identified as potentially requiring mental health services,
the local educational agency shall request the participation of the
county mental health agency in the individualized education program.
A local educational agency shall provide any specially designed
instruction required by an individualized education program,
including related services such as counseling services, parent
counseling and training, psychological services, or social work
services in schools as defined in Section 300.34 of Title 34 of the
Code of Federal Regulations. If the individualized education program
of an individual with exceptional needs includes a functional
behavioral assessment and behavior intervention plan, in accordance
with Section 300.530 of Title 34 of the Code of Federal Regulations,
the local educational agency shall provide documentation upon
referral to a county mental health agency. Local educational agencies
shall provide related services, by qualified personnel, unless the
individualized education program team designates a more appropriate
agency for the provision of services. Local educational agencies and
community mental health services shall work collaboratively to ensure
that assessments performed prior to referral are as useful as
possible to the community mental health service agency in determining
the need for mental health services and the level of services
needed.
   (c) This section shall become inoperative on July 1, 2011, and, as
of January 1, 2012, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2012, deletes or
extends the dates on which it becomes inoperative and is repealed.
   SEC. 17.   SEC. 14.   Section 60422.3 of
the Education Code is amended and renumbered to read:
   60049.  (a) Notwithstanding subdivision (i) of Section 60200,
Section 60422, or any other provision of law, for the 2008-09 to the
2014-15 fiscal years, inclusive, the governing board of a school
district is not required to provide pupils with instructional
materials by a specified period of time following adoption of those
materials by the state board.
   (b) Notwithstanding subdivision (a), this section does not relieve
school districts of their obligations to provide every pupil with
textbooks or instructional materials, as provided in Section 1240.3.
   (c) This section does not relieve school districts of the
obligation to hold a public hearing or hearings pursuant to
subparagraphs (A) and (B) of paragraph (1) of subdivision (a) of
Section 60119.
   (d) This section shall become inoperative on July 1, 2015, and, as
of January 1, 2016, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2016, deletes or
extends the dates on which it becomes inoperative and is repealed.
   SEC. 18.   SEC. 15.   Section 69432.7 of
the Education Code is amended to read:
   69432.7.  As used in this chapter, the following terms have the
following meanings:
   (a) An "academic year" is July 1 to June 30, inclusive. The
starting date of a session shall determine the academic year in which
it is included.
   (b) "Access costs" means living expenses and expenses for
transportation, supplies, and books.
   (c) "Award year" means one academic year, or the equivalent, of
attendance at a qualifying institution.
   (d) "College grade point average" and "community college grade
point average" mean a grade point average calculated on the basis of
all college work completed, except for nontransferable units and
courses not counted in the computation for admission to a California
public institution of higher education that grants a baccalaureate
degree.
   (e) "Commission" means the Student Aid Commission.
   (f) "Enrollment status" means part- or full-time status.
   (1) "Part time," for purposes of Cal Grant eligibility, means 6 to
11 semester units, inclusive, or the equivalent.
   (2) "Full time," for purposes of Cal Grant eligibility, means 12
or more semester units or the equivalent.
   (g) "Expected family contribution," with respect to an applicant,
shall be determined using the federal methodology pursuant to
subdivision (a) of Section 69506 (as established by Title IV of the
federal Higher Education Act of 1965, as amended (20 U.S.C. Sec. 1070
et seq.)) and applicable rules and regulations adopted by the
commission.
   (h) "High school grade point average" means a grade point average
calculated on a 4.0 scale, using all academic coursework, for the
sophomore year, the summer following the sophomore year, the junior
year, and the summer following the junior year, excluding physical
education, reserve officer training corps (ROTC), and remedial
courses, and computed pursuant to regulations of the commission.
However, for high school graduates who apply after their senior year,
"high school grade point average" includes senior year coursework.
   (i) "Instructional program of not less than one academic year"
means a program of study that results in the award of an associate or
baccalaureate degree or certificate requiring at least 24 semester
units or the equivalent, or that results in eligibility for transfer
from a community college to a baccalaureate degree program.
   (j) "Instructional program of not less than two academic years"
means a program of study that results in the award of an associate or
baccalaureate degree requiring at least 48 semester units or the
equivalent, or that results in eligibility for transfer from a
community college to a baccalaureate degree program.
   (k) "Maximum household income and asset levels" means the
applicable household income and household asset levels for
participants, including new applicants and renewing recipients, in
the Cal Grant Program, as defined and adopted in regulations by the
commission for the 2001-02 academic year, which shall be set pursuant
to the following income and asset ceiling amounts:
         CAL GRANT PROGRAM INCOME CEILINGS


+--------------------+--------------+--------------+
|                        Cal Grant                 |
|                           A,                     |
|                        C, and T      Cal Grant B |
+--------------------+--------------+--------------+
|Dependent and Independent students with           |
|dependents*                                       |
+--------------------+--------------+--------------+
|Family Size                                       |
+--------------------+--------------+--------------+
|  Six or more             $74,100        $40,700  |
+--------------------+--------------+--------------+
|  Five                    $68,700        $37,700  |
+--------------------+--------------+--------------+
|  Four                    $64,100        $33,700  |
+--------------------+--------------+--------------+
|  Three                   $59,000        $30,300  |
+--------------------+--------------+--------------+
|  Two                     $57,600        $26,900  |
+--------------------+--------------+--------------+
|Independent                                       |
+--------------------+--------------+--------------+
|  Single, no              $23,500        $23,500  |
|dependents                                        |
+--------------------+--------------+--------------+
|  Married                 $26,900        $26,900  |
+--------------------+--------------+--------------+


   *Applies to independent students with dependents other than a
spouse.
          CAL GRANT PROGRAM ASSET CEILINGS


+----------------------+-------------+-------------+
|                         Cal Grant                |
|                             A,                   |
|                          C, and T    Cal Grant B |
+----------------------+-------------+-------------+
|Dependent**                $49,600       $49,600  |
+----------------------+-------------+-------------+
|Independent                $23,600       $23,600  |
+----------------------+-------------+-------------+


   **Applies to independent students with dependents other than a
spouse.


   The commission shall annually adjust the maximum household income
and asset levels based on the percentage change in the cost of living
within the meaning of paragraph (1) of subdivision (e) of Section 8
of Article XIII B of the California Constitution. The maximum
household income and asset levels applicable to a renewing recipient
shall be the greater of the adjusted maximum household income and
asset levels or the maximum household income and asset levels at the
time of the renewing recipient's initial Cal Grant award. For a
recipient who was initially awarded a Cal Grant for an academic year
before the 2011-12 academic year, the maximum household income and
asset levels shall be the greater of the adjusted maximum household
income and asset levels or the 2010-11 academic year maximum
household income and asset levels. An applicant or renewal recipient
who qualifies to be considered under the simplified needs test
established by federal law for student assistance shall be presumed
to meet the asset level test under this section. Prior to disbursing
any Cal Grant funds, a qualifying institution shall be obligated,
under the terms of its institutional participation agreement with the
commission, to resolve any conflicts that may exist in the data the
institution possesses relating to that individual.
   (l) (1) "Qualifying institution" means an institution that
complies with paragraphs (2) and (3) and is any of the following:
   (A) A California private or independent postsecondary educational
institution that participates in the Pell Grant Program and in at
least two of the following federal campus-based student aid programs:

   (i) Federal Work-Study.
   (ii) Perkins Loan Program.
   (iii) Supplemental Educational Opportunity Grant Program.
   (B) A nonprofit institution headquartered and operating in
California that certifies to the commission that 10 percent of the
institution's operating budget, as demonstrated in an audited
financial statement, is expended for purposes of institutionally
funded student financial aid in the form of grants, that demonstrates
to the commission that it has the administrative capacity to
administer the funds, that is accredited by the Western Association
of Schools and Colleges, and that meets any other state-required
criteria adopted by regulation by the commission in consultation with
the Department of Finance. A regionally accredited institution that
was deemed qualified by the commission to participate in the Cal
Grant Program for the 2000-01 academic year shall retain its
eligibility as long as it maintains its existing accreditation
status.
   (C) A California public postsecondary educational institution.
   (2) (A) The institution shall provide information on where to
access California license examination passage rates for the most
recent available year from graduates of its undergraduate programs
leading to employment for which passage of a California licensing
examination is required, if that data is electronically available
through the Internet Web site of a California licensing or regulatory
agency. For purposes of this paragraph, "provide" may exclusively
include placement of an Internet Web site address labeled as an
access point for the data on the passage rates of recent program
graduates on the Internet Web site where enrollment information is
also located, on an Internet Web site that provides centralized
admissions information for postsecondary educational systems with
multiple campuses, or on applications for enrollment or other program
information distributed to prospective students.
   (B) The institution shall be responsible for certifying to the
commission compliance with the requirements of subparagraph (A).
   (3) (A) The commission shall certify by October 1 of each year the
institution's latest three-year cohort default rate as most recently
reported by the United States Department of Education.
   (B) For purposes of the 2011-12 academic year, an otherwise
qualifying institution with a 2008 trial three-year cohort default
rate reported by the United States Department of Education as of
February 28, 2011, that is equal to or greater than 24.6 percent
shall be ineligible for initial and renewal Cal Grant awards at the
institution, except as provided in subparagraph (F).
   (C) For purposes of the 2012-13 academic year, and every academic
year thereafter, an otherwise qualifying institution with a
three-year cohort default rate that is equal to or greater than 30
percent, as certified by the commission on October 1, 2011, and every
year thereafter, shall be ineligible for initial and renewal Cal
Grant awards at the institution, except as provided in subparagraph
(F).
   (D) (i) An otherwise qualifying institution that becomes
ineligible under this paragraph for initial and renewal Cal Grant
awards may regain its eligibility for the academic year following an
academic year in which it satisfies the requirements established in
subparagraph (B) or (C), as applicable.
   (ii) If the United States Department of Education corrects or
revises an institution's three-year cohort default rate that
originally failed to satisfy the requirements established in
subparagraph (B) or (C), as applicable, and the correction or
revision results in the institution's three-year cohort default rate
satisfying those requirements, that institution shall immediately
regain its eligibility for the academic year to which the corrected
or revised three-year cohort default rate would have been applied.
   (E) An otherwise qualifying institution for which no three-year
cohort default rate has been reported by the United States Department
of Education shall be provisionally eligible to participate in the
Cal Grant Program until a three-year cohort default rate has been
reported for the institution by the United States Department of
Education.
   (F) An institution that is ineligible for initial and renewal Cal
Grant awards at the institution under subparagraph (B) or (C) shall
be eligible for renewal Cal Grant awards for recipients who were
enrolled in the ineligible institution during the academic year
before the academic year for which the institution is ineligible and
who choose to renew their Cal Grant awards to attend the ineligible
institution. Cal Grant awards subject to this subparagraph shall be
reduced as follows:
   (i) The maximum Cal Grant A and B awards specified in the annual
Budget Act shall be reduced by 20 percent.
   (ii) The reductions specified in this subparagraph shall not
impact access costs as specified in subdivision (b) of Section 69435.

   (G) Notwithstanding any other law, the requirements of this
paragraph shall not apply to institutions with 40 percent or less of
undergraduate students borrowing federal student loans, using
information reported to the United States Department of Education for
the academic year two years prior to the year in which the
commission is certifying the three-year cohort default rate pursuant
to subparagraph (A).
   (H) By January 1, 2013, the Legislative Analyst shall submit to
the Legislature a report on the implementation of this paragraph. The
report shall be prepared in consultation with the commission, and
shall include policy recommendations for appropriate measures of
default risk and other direct or indirect measures of quality or
effectiveness in educational institutions participating in the Cal
Grant Program, and appropriate scores for those measures. It is the
intent of the Legislature that appropriate policy and fiscal
committees review the requirements of this paragraph and consider
changes thereto.
   (m) "Satisfactory academic progress" means those criteria required
by applicable federal standards published in Title 34 of the Code of
Federal Regulations. The commission may adopt regulations defining
"satisfactory academic progress" in a manner that is consistent with
those federal standards. 
  SEC. 19.    Section 84321.6 of the Education Code
is amended to read:
   84321.6.  (a) Notwithstanding any other law that governs the
regulations adopted by the Chancellor of the California Community
Colleges to disburse funds, the payment of apportionments to
districts pursuant to Sections 84320 and 84321 shall be adjusted,
commencing with the 2011-12 fiscal year, by the following:
   (1) For the month of June, ninety-six million two hundred
ninety-two thousand dollars ($96,292,000) shall be deferred to July.
   (2) For the month of May, ninety-seven million dollars
($97,000,000) shall be deferred to July.
   (3) For the month of April, ninety-seven million dollars
($97,000,000) shall be deferred to July.
   (4) For the month of March, seventy-six million five hundred
thousand dollars ($76,500,000) shall be deferred to July.
   (5) For the month of February, ninety-seven million dollars
($97,000,000) shall be deferred to July.
   (6) For the month of January, ninety-seven million dollars
($97,000,000) shall be deferred to July.
   (b) The sum of five hundred sixty million seven hundred ninety-two
thousand dollars ($560,792,000) is hereby appropriated in July of
the 2012-13 fiscal year from the General Fund to the Board of
Governors of the California Community Colleges for apportionments to
community college districts in satisfaction of the moneys deferred
pursuant to subdivision (a). Those moneys shall be expended in
accordance with Schedule (1) of Item 6870-101-0001 of Section 2.00 of
the Budget Act of 2011.
   (c) For purposes of making the computations required by Section 8
of Article XVI of the California Constitution, the appropriations
made by subdivision (b) shall be deemed to be "General Fund revenues
appropriated for community college districts," as defined in
subdivision (d) of Section 41202, for the 2012-13 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 the 2012-13 fiscal year. 
   SEC. 16.    Section 7911.1 of the   Family
Code   is amended to read: 
   7911.1.  (a) Notwithstanding any other  provision of
 law, the State Department of Social Services or its
designee shall investigate any threat to the health and safety of
children placed by a California county social services agency or
probation department in an out-of-state group home pursuant to the
provisions of the Interstate Compact on the Placement of Children.
This authority shall include the authority to interview children or
staff in private or review their file at the out-of-state facility or
wherever the child or files may be at the time of the investigation.
Notwithstanding any other  provisions of  law, the
State Department of Social Services or its designee shall require
certified out-of-state group homes to comply with the reporting
requirements applicable to group homes licensed in California
pursuant to Title 22 of the California Code of Regulations for each
child in care regardless of whether he or she is a California
placement, by submitting a copy of the required reports to the
Compact Administrator within regulatory timeframes. The Compact
Administrator within one business day of receiving a serious events
report shall verbally notify the appropriate placement agencies and
within five working days of receiving a written report from the
out-of-state group home, forward a copy of the written report to the
appropriate placement agencies.
   (b) Any contract, memorandum of understanding, or agreement
entered into pursuant to paragraph (b) of Article 5 of the Interstate
Compact on the Placement of Children regarding the placement of a
child out of state by a California county social services agency or
probation department shall include the language set forth in
subdivision (a).
   (c) The State Department of Social Services or its designee shall
perform initial and continuing inspection of out-of-state group homes
in order to either certify that the out-of-state group home meets
all licensure standards required of group homes operated in
California or that the department has granted a waiver to a specific
licensing standard upon a finding that there exists no adverse impact
to health and safety. Any failure by an out-of-state group home
facility to make children or staff available as required by
subdivision (a) for a private interview or make files available for
review shall be grounds to deny or discontinue the certification. The
State Department of Social Services shall grant or deny an initial
certification or a waiver under this subdivision to an out-of-state
group home facility that has more than six California children placed
by a county social services agency or probation department by August
19, 1999. The department shall grant or deny an initial
certification or a waiver under this subdivision to an out-of-state
group home facility that has six or fewer California children placed
by a county social services agency or probation department by
February 19, 2000. Certifications made pursuant to this subdivision
shall be reviewed annually.
   (d) Within six months of the effective date of this section, a
county shall be required to obtain an assessment and placement
recommendation by a county multidisciplinary team for each child in
an out-of-state group home facility. On or after March 1, 1999, a
county shall be required to obtain an assessment and placement
recommendation by a county multidisciplinary team prior to placement
of a child in an out-
of-state group home facility.
   (e) Any failure by an out-of-state group home to obtain or
maintain its certification as required by subdivision (c) shall
preclude the use of any public funds, whether county, state, or
federal, in the payment for the placement of any child in that
out-of-state group home, pursuant to the Interstate Compact on the
Placement of Children.
   (f) (1) A multidisciplinary team shall consist of participating
members from county social services, county mental health, county
probation, county superintendents of schools, and other members as
determined by the county.
   (2) Participants shall have knowledge or experience in the
prevention, identification, and treatment of child abuse and neglect
cases, and shall be qualified to recommend a broad range of services
related to child abuse or neglect.
   (g) (1) The department may deny, suspend, or discontinue the
certification of the out-of-state group home if the department makes
a finding that the group home is not operating in compliance with the
requirements of subdivision (c).
   (2) Any judicial proceeding to contest the department's
determination as to the status of the out-of-state group home
certificate shall be held in California pursuant to Section 1085 of
the Code of Civil Procedure.
   (h)  This   The certification requirements of
this  section shall not impact placements  of emotionally
disturbed children  made pursuant to  Chapter 26.5
(commencing with Section 7570) of Division 7 of Title 1 of the
Government Code relating to seriously emotionally disturbed children
  an individualized education program developed pursuant
to the federal Individuals with Disabilities Education Act (20
U.S.C. Sec. 1400 et seq.) if the placement is not funded with federal
or state foster care funds  .
   (i) Only an out-of-state group home authorized by the Compact
Administrator to receive state funds for the placement by a county
social services agency or probation department of any child in that
out-of-state group home from the effective date of this section shall
be eligible for public funds pending the department's certification
under this section.
   SEC. 20.  SEC. 17.   Section 7572 of the
Government Code is amended to read:
   7572.  (a) A child shall be assessed in all areas related to the
suspected disability by those qualified to make a determination of
the child's need for the service before any action is taken with
respect to the provision of related services or designated
instruction and services to a child, including, but not limited to,
services in the areas of occupational therapy and physical therapy.
All assessments required or conducted pursuant to this section shall
be governed by the assessment procedures contained in Article 2
(commencing with Section 56320) of Chapter 4 of Part 30 of Division 4
of Title 2 of the Education Code.
   (b) Occupational therapy and physical therapy assessments shall be
conducted by qualified medical personnel as specified in regulations
developed by the State Department of Health Services in consultation
with the State Department of Education.
   (c) A related service or designated instruction and service shall
only be added to the child's individualized education program by the
individualized education program team, as described in Part 30
(commencing with Section 56000) of Division 4 of Title 2 of the
Education Code, if a formal assessment has been conducted pursuant to
this section, and a qualified person conducting the assessment
recommended the service in order for the child to benefit from
special education. In no case shall the inclusion of necessary
related services in a pupil's individualized education plan be
contingent upon identifying the funding source. Nothing in this
section shall prevent a parent from obtaining an independent
assessment in accordance with subdivision (b) of Section 56329 of the
Education Code, which shall be considered by the individualized
education program team.
   (1) If an assessment has been conducted pursuant to subdivision
(b), the recommendation of the person who conducted the assessment
shall be reviewed and discussed with the parent and with appropriate
members of the individualized education program team prior to the
meeting of the individualized education program team. When the
proposed recommendation of the person has been discussed with the
parent and there is disagreement on the recommendation pertaining to
the related service, the parent shall be notified in writing and may
require the person who conducted the assessment to attend the
individualized education program team meeting to discuss the
recommendation. The person who conducted the assessment shall attend
the individualized education program team meeting if requested.
Following this discussion and review, the recommendation of the
person who conducted the assessment shall be the recommendation of
the individualized education program team members who are attending
on behalf of the local educational agency.
   (2) If an independent assessment for the provision of related
services or designated instruction and services is submitted to the
individualized education program team, review of that assessment
shall be conducted by the person specified in subdivision (b). The
recommendation of the person who reviewed the independent assessment
shall be reviewed and discussed with the parent and with appropriate
members of the individualized education program team prior to the
meeting of the individualized education program team. The parent
shall be notified in writing and may request the person who reviewed
the independent assessment to attend the individualized education
program team meeting to discuss the recommendation. The person who
reviewed the independent assessment shall attend the individualized
education program team meeting if requested. Following this review
and discussion, the recommendation of the person who reviewed the
independent assessment shall be the recommendation of the
individualized education program team members who are attending on
behalf of the local agency.
   (3) Any disputes between the parent and team members representing
the public agencies regarding a recommendation made in accordance
with paragraphs (1) and (2) shall be resolved pursuant to Chapter 5
(commencing with Section 56500) of Part 30 of Division 4 of Title 2
of the Education Code.
   (d) Whenever a related service or designated instruction and
service specified in subdivision (b) is to be considered for
inclusion in the child's individualized educational program, the
local education agency shall invite the responsible public agency
representative to meet with the individualized education program team
to determine the need for the service and participate in developing
the individualized education program. If the responsible public
agency representative cannot meet with the individualized education
program team, then the representative shall provide written
information concerning the need for the service pursuant to
subdivision (c). Conference calls, together with written
recommendations, are acceptable forms of participation. If the
responsible public agency representative will not be available to
participate in the individualized education program meeting, the
local educational agency shall ensure that a qualified substitute is
available to explain and interpret the evaluation pursuant to
subdivision (d) of Section 56341 of the Education Code. A copy of the
information shall be provided by the responsible public agency to
the parents or any adult pupil for whom no guardian or conservator
has been appointed.
   SEC. 21.   SEC. 18.   Section 7572.5 of
the Government Code is amended to read:
   7572.5.  (a) If an assessment is conducted pursuant to Article 2
(commencing with Section 56320) of Chapter 4 of Part 30 of Division 4
of Title 2 of the Education Code, which determines that a child is
seriously emotionally disturbed, as defined in Section 300.8 of Title
34 of the Code of Federal Regulations, and any member of the
individualized education program team recommends residential
placement based on relevant assessment information, the
individualized education program team shall be expanded to include a
representative of the county mental health department.
   (b) The expanded individualized education program team shall
review the assessment and determine whether:
   (1) The child's needs can reasonably be met through any
combination of nonresidential services, preventing the need for
out-of-home care.
   (2) Residential care is necessary for the child to benefit from
educational services.
   (3) Residential services are available that address the needs
identified in the assessment and that will ameliorate the conditions
leading to the seriously emotionally disturbed designation.
   (c) If the review required in subdivision (b) results in an
individualized education program that calls for residential
placement, the individualized education program shall include all of
the items outlined in Section 56345 of the Education Code, and shall
also include:
   (1) Designation of the county mental health department as lead
case manager. Lead case management responsibility may be delegated to
the county welfare department by agreement between the county
welfare department and the designated county mental health
department. The county mental health department shall retain
financial responsibility for the provision of case management
services.
   (2) Provision for a review of the case progress, the continuing
need for out-of-home placement, the extent of compliance with the
individualized education program, and progress toward alleviating the
need for out-of-home care, by the full individualized education
program team at least every six months.
   (3) Identification of an appropriate residential facility for
placement with the assistance of the county welfare department as
necessary.
   (d) This section shall become inoperative on July 1, 2011, and, as
of January 1, 2012, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2012, deletes or
extends the dates on which it becomes inoperative and is repealed.
   SEC. 22.   SEC. 19.   Section 7572.55 of
the Government Code is amended to read:
   7572.55.  (a) Residential placements for a child with a disability
who is seriously emotionally disturbed may be made out-of-state only
after in-state alternatives have been considered and are found not
to meet the child's needs and only when the requirements of Section
7572.5, and subdivision (e) of Section 56365 of the Education Code
have been met. The local education agency shall document the
alternatives to out-of-state residential placement that were
considered and the reasons why they were rejected.
   (b) Out-of-state placements shall be made only in a privately
operated school certified by the California Department of Education.
   (c) A plan shall be developed for using less restrictive
alternatives and in-state alternatives as soon as they become
available, unless it is in the best educational interest of the child
to remain in the out-of-state school. If the child is a ward or
dependent of the court, this plan shall be documented in the record.
   (d) This section shall become inoperative on July 1, 2011, and, as
of January 1, 2012, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2012, deletes or
extends the dates on which it becomes inoperative and is repealed.
   SEC. 23.   SEC. 20.   Section 7576 of
the Government Code is amended to read:
   7576.  (a) The State Department of Mental Health, or a community
mental health service, as described in Section 5602 of the Welfare
and Institutions Code, designated by the State Department of Mental
Health, is responsible for the provision of mental health services,
as defined in regulations by the State Department of Mental Health,
developed in consultation with the State Department of Education, if
required in the individualized education program of a pupil. A local
educational agency is not required to place a pupil in a more
restrictive educational environment in order for the pupil to receive
the mental health services specified in his or her individualized
education program if the mental health services can be appropriately
provided in a less restrictive setting. It is the intent of the
Legislature that the local educational agency and the community
mental health service vigorously attempt to develop a mutually
satisfactory placement that is acceptable to the parent and addresses
the educational and mental health treatment needs of the pupil in a
manner that is cost effective for both public agencies, subject to
the requirements of state and federal special education law,
including the requirement that the placement be appropriate and in
the least restrictive environment. For purposes of this section,
"parent" is as defined in Section 56028 of the Education Code.
   (b) A local educational agency, individualized education program
team, or parent may initiate a referral for assessment of the social
and emotional status of a pupil, pursuant to Section 56320 of the
Education Code. Based on the results of assessments completed
pursuant to Section 56320 of the Education Code, an individualized
education program team may refer a pupil who has been determined to
be an individual with exceptional needs, as defined in Section 56026
of the Education Code, and who is suspected of needing mental health
services to a community mental health service if the pupil meets all
of the criteria in paragraphs (1) to (5), inclusive. Referral
packages shall include all documentation required in subdivision (c),
and shall be provided immediately to the community mental health
service.
   (1) The pupil has been assessed by school personnel in accordance
with Article 2 (commencing with Section 56320) of Chapter 4 of Part
30 of Division 4 of Title 2 of the Education Code. Local educational
agencies and community mental health services shall work
collaboratively to ensure that assessments performed prior to
referral are as useful as possible to the community mental health
service in determining the need for mental health services and the
level of services needed.
   (2) The local educational agency has obtained written parental
consent for the referral of the pupil to the community mental health
service, for the release and exchange of all relevant information
between the local educational agency and the community mental health
service, and for the observation of the pupil by mental health
professionals in an educational setting.
   (3) The pupil has emotional or behavioral characteristics that
satisfy all of the following:
   (A) Are observed by qualified educational staff in educational and
other settings, as appropriate.
   (B) Impede the pupil from benefiting from educational services.
   (C) Are significant as indicated by their rate of occurrence and
intensity.
   (D) Are associated with a condition that cannot be described
solely as a social maladjustment or a temporary adjustment problem,
and cannot be resolved with short-term counseling.
   (4) As determined using educational assessments, the pupil's
functioning, including cognitive functioning, is at a level
sufficient to enable the pupil to benefit from mental health
services.
   (5) The local educational agency, pursuant to Section 56331 of the
Education Code, has provided appropriate counseling and guidance
services, psychological services, parent counseling and training, or
social work services to the pupil pursuant to Section 56363 of the
Education Code, or behavioral intervention as specified in Section
56520 of the Education Code, as specified in the individualized
education program and the individualized education program team has
determined that the services do not meet the educational needs of the
pupil, or, in cases where these services are clearly inadequate or
inappropriate to meet the educational needs of the pupil, the
individualized education program team has documented which of these
services were considered and why they were determined to be
inadequate or inappropriate.
   (c) If referring a pupil to a community mental health service in
accordance with subdivision (b), the local educational agency or the
individualized education program team shall provide the following
documentation:
   (1) Copies of the current individualized education program, all
current assessment reports completed by school personnel in all areas
of suspected disabilities pursuant to Article 2 (commencing with
Section 56320) of Chapter 4 of Part 30 of Division 4 of Title 2 of
the Education Code, and other relevant information, including reports
completed by other agencies.
   (2) A copy of the parent's consent obtained as provided in
paragraph (2) of subdivision (b).
   (3) A summary of the emotional or behavioral characteristics of
the pupil, including documentation that the pupil meets the criteria
set forth in paragraphs (3) and (4) of subdivision (b).
   (4) A description of the counseling, psychological, and guidance
services, and other interventions that have been provided to the
pupil, as provided in the individualized education program of the
pupil, including the initiation, duration, and frequency of these
services, or an explanation of the reasons a service was considered
for the pupil and determined to be inadequate or inappropriate to
meet his or her educational needs.
   (d) Based on preliminary results of assessments performed pursuant
to Section 56320 of the Education Code, a local educational agency
may refer a pupil who has been determined to be, or is suspected of
being, an individual with exceptional needs, and is suspected of
needing mental health services, to a community mental health service
if a pupil meets the criteria in paragraphs (1) and (2). Referral
packages shall include all documentation required in subdivision (e)
and shall be provided immediately to the community mental health
service.
   (1) The pupil meets the criteria in paragraphs (2) to (4),
inclusive, of subdivision (b).
   (2) Counseling and guidance services, psychological services,
parent counseling and training, social work services, and behavioral
or other interventions as provided in the individualized education
program of the pupil are clearly inadequate or inappropriate in
meeting his or her educational needs.
   (e) If referring a pupil to a community mental health service in
accordance with subdivision (d), the local educational agency shall
provide the following documentation:
   (1) Results of preliminary assessments to the extent they are
available and other relevant information including reports completed
by other agencies.
   (2) A copy of the parent's consent obtained as provided in
paragraph (2) of subdivision (b).
   (3) A summary of the emotional or behavioral characteristics of
the pupil, including documentation that the pupil meets the criteria
in paragraphs (3) and (4) of subdivision (b).
   (4) Documentation that appropriate related educational and
designated instruction and services have been provided in accordance
with Sections 300.34 and 300.39 of Title 34 of the Code of Federal
Regulations.
   (5) An explanation of the reasons that counseling and guidance
services, psychological services, parent counseling and training,
social work services, and behavioral or other interventions as
provided in the individualized education program of the pupil are
clearly inadequate or inappropriate in meeting his or her educational
needs.
   (f) The procedures set forth in this chapter are not designed for
use in responding to psychiatric emergencies or other situations
requiring immediate response. In these situations, a parent may seek
services from other public programs or private providers, as
appropriate. This subdivision does not change the identification and
referral responsibilities imposed on local educational agencies under
Article 1 (commencing with Section 56300) of Chapter 4 of Part 30 of
Division 4 of Title 2 of the Education Code.
   (g) Referrals shall be made to the community mental health service
in the county in which the pupil lives. If the pupil has been placed
into residential care from another county, the community mental
health service receiving the referral shall forward the referral
immediately to the community mental health service of the county of
origin, which shall have fiscal and programmatic responsibility for
providing or arranging for the provision of necessary services. The
procedures described in this subdivision shall not delay or impede
the referral and assessment process.
   (h) A county mental health agency does not have fiscal or legal
responsibility for costs it incurs prior to the approval of an
individualized education program, except for costs associated with
conducting a mental health assessment.
   (i) This section shall become inoperative on July 1, 2011, and, as
of January 1, 2012, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2012, deletes or
extends the dates on which it becomes inoperative and is repealed.
   SEC. 24.   SEC. 21.   Section 7576.2 of
the Government Code is amended to read:
   7576.2.  (a) The Director of the State Department of Mental Health
is responsible for monitoring county mental health agencies to
ensure compliance with the requirement to provide mental health
services to disabled pupils pursuant to this chapter and to ensure
that funds provided for this purpose are appropriately utilized.
   (b) The Director of the State Department of Mental Health shall
submit a report to the Legislature by April 1, 2005, that includes
the following:
   (1) A description of the data that is currently collected by the
State Department of Mental Health related to pupils served and
services provided pursuant to this chapter.
   (2) A description of the existing monitoring process used by the
State Department of Mental Health to ensure that county mental health
agencies are complying with this chapter.
   (3) Recommendations on the manner in which to strengthen and
improve monitoring by the State Department of Mental Health of the
compliance by a county mental health agency with the requirements of
this chapter, on the manner in which to strengthen and improve
collaboration and coordination with the State Department of Education
in monitoring and data collection activities, and on the additional
data needed related to this chapter.
   (c) The Director of the State Department of Mental Health shall
collaborate with the Superintendent of Public Instruction in
preparing the report required pursuant to subdivision (b) and shall
convene at least one meeting of appropriate stakeholders and
organizations, including a representative from the State Department
of Education, to obtain input on existing data collection and
monitoring processes, and on ways to strengthen and improve the data
collected and monitoring performed.
   (d) This section shall become inoperative on July 1, 2011, and, as
of January 1, 2012, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2012, deletes or
extends the dates on which it becomes inoperative and is repealed.
   SEC. 25.   SEC. 22.   Section 7576.3 of
the Government Code is amended to read:
   7576.3.  (a) It is the intent of the Legislature that the Director
of the State Department of Mental Health collaborate with an entity
with expertise in children's mental health to collect, analyze, and
disseminate best practices for delivering mental health services to
disabled pupils. The best practices may include, but are not limited
to:
   (1) Interagency agreements in urban, suburban, and rural areas
that result in clear identification of responsibilities between local
educational agencies and county mental health agencies and result in
efficient and effective delivery of services to pupils.
   (2) Procedures for developing and amending individualized
education programs that include mental health services that provide
flexibility to educational and mental health agencies and protect the
interests of children in obtaining needed mental health needs.
   (3) Procedures for creating ongoing communication between the
classroom teacher of the pupil and the mental health professional who
is directing the mental health program for the pupil.
   (b) This section shall become inoperative on July 1, 2011, and, as
of January 1, 2012, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2012, deletes or
extends the dates on which it becomes inoperative and is repealed.
   SEC. 26.   SEC. 23.   Section 7576.5 of
the Government Code is amended to read:
   7576.5.  (a) If funds are appropriated to local educational
agencies to support the costs of providing services pursuant to this
chapter, the local educational agencies shall transfer those funds to
the community mental health services that provide services pursuant
to this chapter in order to reduce the local costs of providing these
services. These funds shall be used exclusively for programs
operated under this chapter and are offsetting revenues in any
reimbursable mandate claim relating to special education programs and
services.
   (b) This section shall become inoperative on July 1, 2011, and, as
of January 1, 2012, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2012, deletes or
extends the dates on which it becomes inoperative and is repealed.
   SEC. 27.   SEC. 24.   Section 7582 of
the Government Code is amended to read:
   7582.  Assessments and therapy treatment services provided under
programs of the State Department of Health Care Services, or its
designated local agencies, rendered to a child referred by a local
education agency for an assessment or a disabled child or youth with
an individualized education program, shall be exempt from financial
eligibility standards and family repayment requirements for these
services when rendered pursuant to this chapter.
   SEC. 28.   SEC. 25.   Section 7585 of
the Government Code is amended to read:
   7585.  (a) Whenever a department or local agency designated by
that department fails to provide a related service or designated
instruction and service required pursuant to Section 7575, and
specified in the pupil's individualized education program, the
parent, adult pupil, if applicable, or a local educational agency
referred to in this chapter, shall submit a written notification of
the failure to provide the service to the Superintendent of Public
Instruction or the Secretary of California Health and Human Services.


        (b) When either the Superintendent or the secretary receives
a written notification of the failure to provide a service as
specified in subdivision (a), a copy shall immediately be transmitted
to the other party. The Superintendent, or his or her designee, and
the secretary, or his or her designee, shall meet to resolve the
issue within 15 calendar days of receipt of the notification. A
written copy of the meeting resolution shall be mailed to the parent,
the local educational agency, and affected departments, within 10
days of the meeting.
   (c) If the issue cannot be resolved within 15 calendar days to the
satisfaction of the Superintendent and the secretary, they shall
jointly submit the issue in writing to the Director of the Office of
Administrative Hearings, or his or her designee, in the Department of
General Services.
   (d) The Director of the Office of Administrative Hearings, or his
or her designee, shall review the issue and submit his or her
findings in the case to the Superintendent and the secretary within
30 calendar days of receipt of the case. The decision of the
director, or his or her designee, shall be binding on the departments
and their designated agencies who are parties to the dispute.
   (e) If the meeting, conducted pursuant to subdivision (b), fails
to resolve the issue to the satisfaction of the parent or local
educational agency, either party may appeal to the director, whose
decision shall be the final administrative determination and binding
on all parties.
   (f) Whenever notification is filed pursuant to subdivision (a),
the pupil affected by the dispute shall be provided with the
appropriate related service or designated instruction and service
pending resolution of the dispute, if the pupil had been receiving
the service. The Superintendent and the secretary shall ensure that
funds are available for the provision of the service pending
resolution of the issue pursuant to subdivision (e).
   (g) This section does not prevent a parent or adult pupil from
filing for a due process hearing under Section 7586.
   (h) The contract between the State Department of Education and the
Office of Administrative Hearings for conducting due process
hearings shall include payment for services rendered by the Office of
Administrative Hearings which are required by this section.
   SEC. 29.   SEC. 26.   Section 7586.5 of
the Government Code is amended to read:
   7586.5.  (a) Not later than January 1, 1988, the Superintendent of
Public Instruction and the Secretary of the Health and Human
Services Agency jointly shall submit to the Legislature and the
Governor a report on the implementation of this chapter. The report
shall include, but not be limited to, information regarding the
number of complaints and due process hearings resulting from this
chapter.
   (b) This section shall become inoperative on July 1, 2011, and, as
of January 1, 2012, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2012, deletes or
extends the dates on which it becomes inoperative and is repealed.
   SEC. 30.   SEC. 27.   Section 7586.6 of
the Government Code is amended to read:
   7586.6.  (a) The Superintendent of Public Instruction and the
Secretary of the Health and Human Services Agency shall ensure that
the State Department of Education and the State Department of Mental
Health enter into an interagency agreement by January 1, 1998. It is
the intent of the Legislature that the agreement include, but not be
limited to, procedures for ongoing joint training, technical
assistance for state and local personnel responsible for implementing
this chapter, protocols for monitoring service delivery, and a
system for compiling data on program operations.
   (b) It is the intent of the Legislature that the designated local
agencies of the State Department of Education and the State
Department of Mental Health update their interagency agreements for
services specified in this chapter at the earliest possible time. It
is the intent of the Legislature that the state and local interagency
agreements be updated at least every three years or earlier as
necessary.
   (c) This section shall become inoperative on July 1, 2011, and, as
of January 1, 2012, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2012, deletes or
extends the dates on which it becomes inoperative and is repealed.
   SEC. 31.   SEC. 28.   Section 7586.7 of
the Government Code is amended to read:
   7586.7.  (a) The Superintendent of Public Instruction and the
Secretary of the Health and Human Services Agency jointly shall
prepare and implement within existing resources a plan for in-service
training of state and local personnel responsible for implementing
the provisions of this chapter.
   (b) This section shall become inoperative on July 1, 2011, and, as
of January 1, 2012, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2012, deletes or
extends the dates on which it becomes inoperative and is repealed.
   SEC. 32.   SEC. 29.   Section 7588 of
the Government Code is repealed. 
  SEC. 33.    Section 12440.1 of the Government Code
is amended to read:
   12440.1.  (a) The trustees, in conjunction with the Controller,
shall implement a process that allows any campus or other unit of the
university to make payments of obligations of the university from
its revolving fund directly to all of its vendors. Notwithstanding
Article 5 (commencing with Section 16400) of Chapter 2 of Part 2 of
Division 4 of Title 2, or any other law, the trustees may draw from
funds appropriated to the university, for use as a revolving fund,
amounts necessary to make payments of obligations of the university
directly to vendors. In any fiscal year, the trustees shall obtain
the approval of the Director of Finance to draw amounts in excess of
10 percent of the total appropriation to the university for that
fiscal year for use as a revolving fund.
   (b) Notwithstanding Sections 925.6, 12410, and 16403, or any other
law, the trustees shall maintain payment records for three years and
make those records available to the Controller for postaudit review,
as needed.
   (c) (1) Notwithstanding Section 8546.4 or any other law, the
trustees shall contract with one or more public accounting firms to
conduct a systemwide annual financial statement audit in accordance
with generally accepted accounting principles (GAAP), as well as
other required compliance audits without obtaining the approval of
any other state officer or entity.
   (2) The statement of net assets, statement of revenues, expenses,
changes in net assets, and statement of cashflows of each campus
shall be included as an addendum to the annual systemwide audit.
Summary information on transactions with auxiliary organizations for
each campus shall also be included in the addendum. Any additional
information necessary shall be provided upon request.
   (d) The internal and independent financial statement audits of the
trustees shall test compliance with procurement procedures and the
integrity of the payments made. The results of these audits shall be
included in the biennial report required by Section 13405.
   (e) As used in this section:
   (1) "Trustees" means the Trustees of the California State
University.
   (2) "University" means the California State University. 
   SEC. 34.   SEC. 30.   Section 17581.5 of
the Government Code is amended to read:
   17581.5.  (a) A school district or community college district
shall not be required to implement or give effect to the statutes, or
a portion of the statutes, identified in subdivision (c) during any
fiscal year and for the period immediately following that fiscal year
for which the Budget Act has not been enacted for the subsequent
fiscal year if all of the following apply:
   (1) The statute or a portion of the statute, has been determined
by the Legislature, the commission, or any court to mandate a new
program or higher level of service requiring reimbursement of school
districts or community college districts pursuant to Section 6 of
Article XIII B of the California Constitution.
   (2) The statute, or a portion of the statute, or the test claim
number utilized by the commission, specifically has been identified
by the Legislature in the Budget Act for the fiscal year as being one
for which reimbursement is not provided for that fiscal year. For
purposes of this paragraph, a mandate shall be considered
specifically to have been identified by the Legislature only if it
has been included within the schedule of reimbursable mandates shown
in the Budget Act and it specifically is identified in the language
of a provision of the item providing the appropriation for mandate
reimbursements.
   (b) Within 30 days after enactment of the Budget Act, the
Department of Finance shall notify school districts of any statute or
executive order, or portion thereof, for which reimbursement is not
provided for the fiscal year pursuant to this section.
   (c) This section applies only to the following mandates:
   (1) School Bus Safety I (CSM-4433) and II (97-TC-22) (Chapter 642
of the Statutes of 1992; Chapter 831 of the Statutes of 1994; and
Chapter 739 of the Statutes of 1997).
   (2) County Treasury Withdrawals (96-365-03; and Chapter 784 of the
Statutes of 1995 and Chapter 156 of the Statutes of 1996).
   (3) Grand Jury Proceedings (98-TC-27; and Chapter 1170 of the
Statutes of 1996, Chapter 443 of the Statutes of 1997, and Chapter
230 of the Statutes of 1998).
   (4) Law Enforcement Sexual Harassment Training (97-TC-07; and
Chapter 126 of the Statutes of 1993).
   (5) Health Benefits for Survivors of Peace Officers and
Firefighters (Chapter 1120 of the Statutes of 1996 and 97-TC-25).
   (d) This section applies to the following mandates for the
2010-11, 2011-12, and 2012-13 fiscal years only:
   (1) Removal of Chemicals (Chapter 1107 of the Statutes of 1984 and
CSM 4211 and 4298).
   (2) Scoliosis Screening (Chapter 1347 of the Statutes of 1980 and
CSM 4195).
   (3) Pupil Residency Verification and Appeals (Chapter 309 of the
Statutes of 1995 and 96-384-01).
   (4) Integrated Waste Management (Chapter 1116 of the Statutes of
1992 and 00-TC-07).
   (5) Law Enforcement Jurisdiction Agreements (Chapter 284 of the
Statutes of 1998 and 98-TC-20).
   (6) Physical Education Reports (Chapter 640 of the Statutes of
1997 and 98-TC-08).
   (7) 98.01.042.390-Sexual Assault Response Procedures (Chapter 423
of the Statutes of 1990 and 99-TC-12).
   (8) 98.01.059.389-Student Records (Chapter 593 of the Statutes of
1989 and 02-TC-34).
   SEC. 35.   SEC. 31.   Section 5651 of
the Welfare and Institutions Code is amended to read:
   5651.  The proposed annual county mental health services
performance contract shall include all of the following:
   (a) The following assurances:
   (1) That the county is in compliance with the expenditure
requirements of Section 17608.05.
   (2) That the county shall provide services to persons receiving
involuntary treatment as required by Part 1 (commencing with Section
5000) and Part 1.5 (commencing with Section 5585).
   (3) That the county shall comply with all requirements necessary
for Medi-Cal reimbursement for mental health treatment services and
case management programs provided to Medi-Cal eligible individuals,
including, but not limited to, the provisions set forth in Chapter 3
(commencing with Section 5700), and that the county shall submit cost
reports and other data to the department in the form and manner
determined by the department.
   (4) That the local mental health advisory board has reviewed and
approved procedures ensuring citizen and professional involvement at
all stages of the planning process pursuant to Section 5604.2.
   (5) That the county shall comply with all provisions and
requirements in law pertaining to patient rights.
   (6) That the county shall comply with all requirements in federal
law and regulation pertaining to federally funded mental health
programs.
   (7) That the county shall provide all data and information set
forth in Sections 5610 and 5664.
   (8) That the county, if it elects to provide the services
described in Chapter 2.5 (commencing with Section 5670), shall comply
with guidelines established for program initiatives outlined in that
chapter.
   (9) Assurances that the county shall comply with all applicable
laws and regulations for all services delivered.
   (b) The county's proposed agreement with the department for state
hospital usage as required by Chapter 4 (commencing with Section
4330) of Part 2 of Division 4.
   (c) Any contractual requirements needed for any program
initiatives utilized by the county contained within this part. In
addition, any county may choose to include contract provisions for
other state directed mental health managed programs within this
performance contract.
   (d) Other information determined to be necessary by the director,
to the extent this requirement does not substantially increase county
costs.
   SEC. 36.   SEC. 32.   Section 5701.3 of
the Welfare and Institutions Code is amended to read:
   5701.3.  (a) Consistent with the annual Budget Act, this chapter
shall not affect the responsibility of the state to fund
psychotherapy and other mental health services required by Chapter
26.5 (commencing with Section 7570) of Division 7 of Title 1 of the
Government Code, and the state shall reimburse counties for all
allowable costs incurred by counties in providing services pursuant
to that chapter. The reimbursement provided pursuant to this section
for purposes of Chapter 26.5 (commencing with Section 7570) of
Division 7 of Title 1 of the Government Code shall be provided by the
state through an appropriation included in either the annual Budget
Act or other statute. Counties shall continue to receive
reimbursement from specifically appropriated funds for costs
necessarily incurred in providing psychotherapy and other mental
health services in accordance with this chapter. For reimbursement
claims for services delivered in the 2001-02 fiscal year and
thereafter, counties are not required to provide any share of those
costs or to fund the cost of any part of these services with money
received from the Local Revenue Fund established by Chapter 6
(commencing with Section 17600) of Part 5 of Division 9.
   (b) This section shall become inoperative on July 1, 2011, and, as
of January 1, 2012, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2012, deletes or
extends the dates on which it becomes inoperative and is repealed.
   SEC. 37.   SEC. 33.   Section 5701.6 of
the Welfare and Institutions Code is amended to read:
   5701.6.  (a) Counties may utilize money received from the Local
Revenue Fund established by Chapter 6 (commencing with Section 17600)
of Part 5 of Division 9 to fund the costs of any part of those
services provided pursuant to Chapter 26.5 (commencing with Section
7570) of Division 7 of Title 1 of the Government Code. If money from
the Local Revenue Fund is used by counties for those services,
counties are eligible for reimbursement from the state for all
allowable costs to fund assessments, psychotherapy, and other mental
health services allowable pursuant to Section 300.24 of Title 34 of
the Code of Federal Regulations and required by Chapter 26.5
(commencing with Section 7570) of Division 7 of Title 1 of the
Government Code.
   (b) This section is declaratory of existing law.
   (c) This section shall become inoperative on July 1, 2011, and, as
of January 1, 2012, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2012, deletes or
extends the dates on which it becomes inoperative and is repealed.
   SEC. 38.   SEC. 34.   Section 11323.2 of
the Welfare and Institutions Code is amended to read:
   11323.2.  (a) Necessary supportive services shall be available to
every participant in order to participate in the program activity to
which he or she is assigned or to accept employment or the
participant shall have good cause for not participating under
subdivision (f) of Section 11320.3. As provided in the
welfare-to-work plan entered into between the county and participant
pursuant to this article, supportive services shall include all of
the following:
   (1) Child care.
   (A) Paid child care shall be available to every participant with a
dependent child in the assistance unit who needs paid child care if
the child is 10 years of age or under, or requires child care or
supervision due to a physical, mental, or developmental disability or
other similar condition as verified by the county welfare
department, or who is under court supervision.
   (B) To the extent funds are available paid child care shall be
available to a participant with a dependent child in the assistance
unit who needs paid child care if the child is 11 or 12 years of age.

   (C) Necessary child care services shall be available to every
former recipient for up to two years, pursuant to Article 15.5
(commencing with Section 8350) of Chapter 2 of Part 6 of Division 1
of Title 1 of the Education Code.
   (D) A child in foster care receiving benefits under Title IV-E of
the federal Social Security Act (42 U.S.C. Sec. 670 et seq.) or a
child who would become a dependent child except for the receipt of
federal Supplemental Security Income benefits pursuant to Title XVI
of the federal Social Security Act (42 U.S.C. Sec. 1381 et seq.)
shall be deemed to be a dependent child for the purposes of this
paragraph.
   (E) The provision of care and payment rates under this paragraph
shall be governed by Article 15.5 (commencing with Section 8350) of
Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code.
Parent fees shall be governed by subdivisions (g) and (h) of Section
8263 of the Education Code.
   (2) Transportation costs, which shall be governed by regional
market rates as determined in accordance with regulations established
by the department.
   (3) Ancillary expenses, which shall include the cost of books,
tools, clothing specifically required for the job, fees, and other
necessary costs.
   (4) Personal counseling. A participant who has personal or family
problems that would affect the outcome of the welfare-to-work plan
entered into pursuant to this article shall, to the extent available,
receive necessary counseling or therapy to help him or her and his
or her family adjust to his or her job or training assignment.
   (b) If provided in a county plan, the county may continue to
provide case management and supportive services under this section to
former participants who become employed. The county may provide
these services for up to the first 12 months of employment to the
extent they are not available from other sources and are needed for
the individual to retain the employment.
   SEC. 39.   SEC. 35.   Section 18356.1 is
added to the Welfare and Institutions Code, to read:
   18356.1.  This chapter shall become inoperative on July 1, 2011,
and, as of January 1, 2012, is repealed, unless a later enacted
statute, that becomes operative on or before January 1, 2012, deletes
or extends the dates on which it becomes inoperative and is
repealed.
   SEC. 40.   SEC. 36.   Notwithstanding
the rulemaking provisions of the Administrative Procedure Act
(Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3
of Title 2 of the Government Code), the State Department of Social
Services or the State Department of Education may implement Sections
 2 to 5, inclusive, and Sections 7, 8, and 38  
2 to 6, inclusive, and Section 34  of this act, through
all-county letters, management bulletins, or other similar
instructions.
   SEC. 41.   SEC. 37.   Notwithstanding
any other law, the implementation of Sections  2 to 5,
inclusive, and Sections 7, 8, and 38   2 to 6,
inclusive, and Section 34  of this act is not subject to the
appeal and resolution procedures for agencies that contract with the
State Department of Education for the provision of child care
services or the due process requirements afforded to families that
are denied services specified in Chapter 19 (commencing with Section
18000) of Division 1 of Title 5 of the California Code of
Regulations.
   SEC. 42.   SEC. 38.   It is the intent
of the Legislature that funding provided in provisions 18 and 26 of
Item 6110-161-0001 and provision 9 of Item 6110-161-0890 of Section
2.00 of the Budget Act of 2011 for  educationally related 
mental health  related  services, including
out-of-home residential services for emotionally disturbed pupils,
required by  an individualized education program pursuant to
 the federal Individuals with Disabilities Education Act (20
U.S.C. Sec. 1400 et seq.) shall be exclusively available for these
services only for the 2011-12 and 2012-13 fiscal years. 
  SEC. 43.    (a) It is the intent of the
Legislature that the State Department of Education and the Department
of Mental Health repeal regulations pertaining to the elimination of
statutes pursuant to this act related to mental health services
provided by county mental health agencies.
   (b) The State Department of Education and the Department of Mental
Health shall review Division 9 (commencing with Section 60000) of
Title 2 of the California Code of Regulations and Chapter 6
(commencing with Section 1000) of Division 1 of Title 9 of the
California Code of Regulations, as applicable, to ensure appropriate
implementation of mental health related services for individuals with
exceptional needs pursuant to the federal Individuals with
Disabilities Education Act (20 U.S.C. Sec. 1400 et seq.) and statutes
enacted pursuant to this act.
   (c) To ensure that any regulatory changes resulting from the
review conducted pursuant to subdivision (b) are implemented as soon
as possible, the State Department of Education and the Department of
Mental Health may utilize the process for adopting emergency
regulations set forth in Section 11346.1 of the Government Code.

   SEC. 39.    (a) It is the intent of the Legislature
that the State Department of Education and the appropriate
departments within the California Health and Human Services Agency
modify or repeal regulations that are no longer supported by statute
due to the amendments in Sections 11 to 13, inclusive, Sections 17 to
29, inclusive, Sections 31 to 33, inclusive, and Section 35 of this
act.  
   (b) The State Department of Education and the appropriate
departments within the California Health and Human Services Agency
shall review regulations to ensure the appropriate implementation of
educationally related mental health services required by the federal
Individuals with Disabilities Education Act (20 U.S.C. Sec. 1400 et
seq.) and Sections 11 to 13, inclusive, Sections 17 to 29, inclusive,
Sections 31 to 33, inclusive, and Section 35 of this act.  

   (c) The State Department of Education and the appropriate
departments within the California Health and Human Services Agency
may adopt regulations to implement Sections 11 to 13, inclusive,
Sections 17 to 29, inclusive, Sections 31 to 33, inclusive, and
Section 35 of this act. The adoption, amendment, repeal, or
readoption of a regulation authorized by this section is deemed to
address an emergency, for purposes of Sections 11346.1 and 11349.6 of
the Government Code, and the State Department of Education and the
appropriate departments within the California Health and Human
Services Agency are hereby exempted, for this purpose, from the
requirements of subdivision (b) of Section 11346.1 of the Government
Code. For purposes of subdivision (e) of Section 11346.1 of the
Government Code, the 180-day period, as applicable to the effective
period of an emergency regulatory action and submission of specified
materials to the Office of Administrative Law, is hereby extended to
one year. 
   SEC. 40.    Notwithstanding paragraph (3) of
subdivision (a) of Section 16326 of the Government Code, the
Controller may defer, as necessary, the June 2012 allocations to the
University of California until not later than August 31, 2012, for
purposes of cash management.
   SEC. 41.    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. 42.    There is hereby appropriated one thousand
dollars ($1,000) from the General Fund to the State Department of
Education for purposes of funding the award grants pursuant to
Section 49550.3 of the Education Code to school districts, county
superintendents of schools, or entities approved by the department
for nonrecurring expenses incurred in initiating or expanding a
school breakfast program or a summer food service program. 
   SEC. 44.   SEC. 43.   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.
                                                ____ CORRECTIONS
Text--Pages 9 and 32.
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