BILL NUMBER: AB 114	CHAPTERED
	BILL TEXT

	CHAPTER  43
	FILED WITH SECRETARY OF STATE  JUNE 30, 2011
	APPROVED BY GOVERNOR  JUNE 30, 2011
	PASSED THE SENATE  JUNE 28, 2011
	PASSED THE ASSEMBLY  JUNE 28, 2011
	AMENDED IN SENATE  JUNE 28, 2011
	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 1240, 1622, 2558.46, 8201, 8208, 8263.2,
8263.4, 8447, 8499, 42127, 42238.146, 44955.5, 56325, and 69432.7 of,
to amend and renumber Section 60422.3 of, to amend and repeal
Sections 56139 and 56331 of, to amend, repeal, and add Sections
8203.5, 41202, and 76300 of, to add Sections 41202.5, 41210, 41211,
42251, and 46201.3 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, Committee on Budget. Education finance.
   (1) Existing law requires a county superintendent of schools to
certify in writing whether or not the county office of education is
able to meet its financial obligations for the current and 2
subsequent fiscal years. Existing law requires a county
superintendent of schools to approve, conditionally approve, or
disapprove the adopted budget for the school districts under his or
her jurisdiction and to determine whether the adopted budget is
consistent with a financial plan that will enable the district to
satisfy its multiyear financial commitments.
   This bill would require the budgets of a county office of
education and a school district for the 2011-12 fiscal year to
project the same level of revenue per unit of average daily
attendance as it received in the 2010-11 fiscal year, and would
delete the certification requirement regarding the 2 fiscal years
subsequent to the 2011-12 fiscal year. The bill would prohibit the
Superintendent of Public Instruction from requiring a county office
of education to do otherwise.
   (2) 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%.
   (3) 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.
   (4) 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) 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% or whatever proportion is necessary to ensure that
expenditures for these programs do not exceed the amounts
appropriated for them, including any reductions made subsequent to
the adoption of the annual Budget Act.
   (6) 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) Under existing law (Proposition 98), the California
Constitution requires the state to comply with a minimum funding
obligation each fiscal year with respect to the support of school
districts and community college districts. Existing statutory law
specifies that state funding for the Child Care and Development
Services Act is included within the calculation of state
apportionments that apply toward this constitutional funding
obligation.
   This bill would, commencing July 1, 2011, specify that funds
appropriated for the Child Care and Development Services Act do not
apply toward the constitutional minimum funding obligation for school
districts and community college districts, with the exception of
state funding for the part-day California state preschool programs
and the After School Education and Safety Program.
   The bill would make related changes in the calculation of the
minimum funding obligation required by Proposition 98.
   (8) Existing law prescribes the percentage of General Fund
revenues 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 state that specified sales and use tax revenues
transferred pursuant to certain provisions of the Revenue and
Taxation Code are not General Fund revenues for these purposes. The
bill would provide that its provisions would be operative for the
2011-12 fiscal year and subsequent years only if one or more ballot
measures approved before November 17, 2012, authorize those revenues
to be so treated, and provide funding for school districts and
community college districts in an amount equal to that which would
have been provided if the tax revenues were General Fund revenues.
   The bill would require, if the aforementioned provisions of law
are rendered inoperative because the ballot measure or measures are
not approved, that by December 17, 2012, the Director of Finance, in
consultation with the Superintendent of Public Instruction, determine
the amount by which the minimum amount of moneys required to be
applied by the state for the support of school districts and
community college districts was reduced pursuant to the operation of
the aforementioned provisions of law for the 2011-12 fiscal year.
Following the determination of this amount, the bill would
appropriate an amount equal to 17.8% of that amount from the General
Fund to the Superintendent for each of the 2012-13 to 2016-17,
inclusive, fiscal years in accordance with a specified priority
order, and would appropriate 2.2% of that amount from the General
Fund to the Chancellor of the California Community Colleges for each
of the 2012-13 to 2016-17, inclusive, fiscal years, in accordance
with a specified priority order.
   (9) 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%.
   (10) 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
for the 2011-12 fiscal year 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 to the Supplemental Revenue Augmentation Fund within the
county exclusively to reimburse the state for the costs of providing
trial court services and costs until those moneys are exhausted. By
imposing additional duties on local agency officials, this bill would
impose a state-mandated local program.
   (11) 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.
   (12) Existing law authorizes the governing board of a school
district to terminate the services of any certificated employees of
the district during the time period between 5 days after the
enactment of the Budget Act and August 15 of the fiscal year to which
that Budget Act applies if the governing board of a school district
determines that its total revenue limit per unit of average daily
attendance for the fiscal year of that Budget Act has not increased
by at least 2% and if in the opinion of the governing board it is
therefore necessary to decrease the number of permanent employees in
the district.
   This bill would make this provision inoperative from July 1, 2011,
to July 1, 2012, inclusive.
   (13) Existing law sets forth the minimum number of instructional
days and minutes school districts, county offices of education, and
charter schools are required to offer.
   This bill, for the 2011-12 school year, would reduce the minimum
number of required instructional days and minutes by up to 7 days,
and would reduce the revenue limit for each school district, county
office of education, and charter school, as specified. The bill would
require implementation of this reduction by a school district,
county office of education, and charter school that is subject to
collective bargaining to be achieved through the bargaining process,
provided that the agreement has been completed and reductions
implemented no later than June 30, 2012. These provisions would be
operative only for the 2011-12 school year and only if the Director
of Finance determines that the state revenue forecast does not meet a
specified amount.
   (14) 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.
   (15) 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.
   (16) 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.
   (17) 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.
   (18) Existing law requires the governing board of each community
college district to charge each student a fee, and sets that fee at
$36 per unit per semester.
   This bill would raise the fee to $46 per unit per semester if the
Director of Finance determines that the state revenue forecast does
not meet a specified amount.
   (19) 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 that 2 additional mandates relating to
community college districts are included among those that are subject
to the provision.
   (20) 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.
   (21) 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.
   (22) 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.
   (23) This bill would express the intent of the Legislature that
the State Department of Education and 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 appropriate departments within the California Health
and Human Services Agency to review regulations to ensure appropriate
implementation of educationally related mental health services
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 appropriate
departments within the California Health and Human Services Agency to
utilize the statutory process for adopting emergency regulations in
implementing certain statutes enacted pursuant to this bill.
   (24) This bill would make conforming changes, correct some
cross-references, and make other technical, nonsubstantive changes.
   (25) 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.
   (26) 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.
   (27) 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.
   (28) This bill would declare that it is to take effect immediately
as a bill providing for appropriations related to the Budget Bill.
   Appropriation: yes.


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

  SECTION 1.  Section 1240 of the Education Code is amended to read:
   1240.  The county superintendent of schools shall do all of the
following:
   (a) Superintend the schools of his or her county.
   (b) Maintain responsibility for the fiscal oversight of each
school district in his or her county pursuant to the authority
granted by this code.
   (c) (1) Visit and examine each school in his or her county at
reasonable intervals to observe its operation and to learn of its
problems. He or she annually may present a report of the state of the
schools in his or her county, and of his or her office, including,
but not limited to, his or her observations while visiting the
schools, to the board of education and the board of supervisors of
his or her county.
   (2) (A) For fiscal years 2004-05 to 2006-07, inclusive, to the
extent that funds are appropriated for purposes of this paragraph,
the county superintendent, or his or her designee, annually shall
submit a report, at a regularly scheduled November board meeting, to
the governing board of each school district under his or her
jurisdiction, the county board of education of his or her county, and
the board of supervisors of his or her county describing the state
of the schools in the county or of his or her office that are ranked
in deciles 1 to 3, inclusive, of the 2003 base Academic Performance
Index (API), as defined in subdivision (b) of Section 17592.70, and
shall include, among other things, his or her observations while
visiting the schools and his or her determinations for each school
regarding the status of all of the circumstances listed in
subparagraph (J) and teacher misassignments and teacher vacancies. As
a condition for receipt of funds, the county superintendent, or his
or her designee, shall use a standardized template to report the
circumstances listed in subparagraph (J) and teacher misassignments
and teacher vacancies, unless the current annual report being used by
the county superintendent, or his or her designee, already includes
those details for each school.
   (B) Commencing with the 2007-08 fiscal year, to the extent that
funds are appropriated for purposes of this paragraph, the county
superintendent, or his or her designee, annually shall submit a
report, at a regularly scheduled November board meeting, to the
governing board of each school district under his or her
jurisdiction, the county board of education of his or her county, and
the board of supervisors of his or her county describing the state
of the schools in the county or of his or her office that are ranked
in deciles 1 to 3, inclusive, of the 2006 base API, pursuant to
Section 52056. As a condition for the receipt of funds, the annual
report shall include the determinations for each school made by the
county superintendent, or his or her designee, regarding the status
of all of the circumstances listed in subparagraph (J) and teacher
misassignments and teacher vacancies, and the county superintendent,
or his or her designee, shall use a standardized template to report
the circumstances listed in subparagraph (J) and teacher
misassignments and teacher vacancies, unless the current annual
report being used by the county superintendent, or his or her
designee, already includes those details with the same level of
specificity that is otherwise required by this subdivision. For
purposes of this section, schools ranked in deciles 1 to 3,
inclusive, on the 2006 base API shall include schools determined by
the department to meet either of the following:
   (i) The school meets all of the following criteria:
   (I) Does not have a valid base API score for 2006.
   (II) Is operating in fiscal year 2007-08 and was operating in
fiscal year 2006-07 during the Standardized Testing and Reporting
(STAR) Program testing period.
   (III) Has a valid base API score for 2005 that was ranked in
deciles 1 to 3, inclusive, in that year.
   (ii) The school has an estimated base API score for 2006 that
would be in deciles 1 to 3, inclusive.
   (C) The department shall estimate an API score for any school
meeting the criteria of subclauses (I) and (II) of clause (i) of
subparagraph (B) and not meeting the criteria of subclause (III) of
clause (i) of subparagraph (B), using available test scores and
weighting or corrective factors it deems appropriate. The department
shall post the API scores on its Internet Web site on or before May
1.
   (D) For purposes of this section, references to schools ranked in
deciles 1 to 3, inclusive, on the 2006 base API shall exclude schools
operated by county offices of education pursuant to Section 56140,
as determined by the department.
   (E) In addition to the requirements above, the county
superintendent, or his or her designee, annually shall verify both of
the following:
   (i) That pupils who have not passed the high school exit
examination by the end of grade 12 are informed that they are
entitled to receive intensive instruction and services for up to two
consecutive academic years after completion of grade 12 or until the
pupil has passed both parts of the high school exit examination,
whichever comes first, pursuant to paragraphs (4) and (5) of
subdivision (d) of Section 37254.
   (ii) That pupils who have elected to receive intensive instruction
and services, pursuant to paragraphs (4) and (5) of subdivision (d)
of Section 37254, are being served.
   (F) (i) Commencing with the 2010-11 fiscal year and every third
year thereafter, the Superintendent shall identify a list of schools
ranked in deciles 1 to 3, inclusive, of the API for which the county
superintendent, or his or her designee, annually shall submit a
report, at a regularly scheduled November board meeting, to the
governing board of each school district under his or her
jurisdiction, the county board of education of his or her county, and
the board of supervisors of his or her county that describes the
state of the schools in the county or of his or her office that are
ranked in deciles 1 to 3, inclusive, of the base API as defined in
clause (ii).
   (ii) For the 2010-11 fiscal year, the list of schools ranked in
deciles 1 to 3, inclusive, of the base API shall be updated using the
criteria set forth in clauses (i) and (ii) of subparagraph (B),
subparagraph (C), and subparagraph (D), as applied to the 2009 base
API and thereafter shall be updated every third year using the
criteria set forth in clauses (i) and (ii) of subparagraph (B),
subparagraph (C), and subparagraph (D), as applied to the base API of
the year preceding the third year consistent with clause (i).
   (iii) As a condition for the receipt of funds, the annual report
shall include the determinations for each school made by the county
superintendent, or his or her designee, regarding the status of all
of the circumstances listed in subparagraph (J) and teacher
misassignments and teacher vacancies, and the county superintendent,
or his or her designee, shall use a standardized template to report
the circumstances listed in subparagraph (J) and teacher
misassignments and teacher vacancies, unless the current annual
report being used by the county superintendent, or his or her
designee, already includes those details with the same level of
specificity that is otherwise required by this subdivision.
   (G) The county superintendent of the Counties of Alpine, Amador,
Del Norte, Mariposa, Plumas, and Sierra, and the City and County of
San Francisco shall contract with another county office of education
or an independent auditor to conduct the required visits and make all
reports required by this paragraph.
   (H) On a quarterly basis, the county superintendent, or his or her
designee, shall report the results of the visits and reviews
conducted that quarter to the governing board of the school district
at a regularly scheduled meeting held in accordance with public
notification requirements. The results of the visits and reviews
shall include the determinations of the county superintendent, or his
or her designee, for each school regarding the status of all of the
circumstances listed in subparagraph (J) and teacher misassignments
and teacher vacancies. If the county superintendent, or his or her
designee, conducts no visits or reviews in a quarter, the quarterly
report shall report that fact.
   (I) The visits made pursuant to this paragraph shall be conducted
at least annually and shall meet the following criteria:
   (i) Minimize disruption to the operation of the school.
   (ii) Be performed by individuals who meet the requirements of
Section 45125.1.
   (iii) Consist of not less than 25 percent unannounced visits in
each county. During unannounced visits in each county, the county
superintendent shall not demand access to documents or specific
school personnel. Unannounced visits shall only be used to observe
the condition of school repair and maintenance, and the sufficiency
of instructional materials, as defined by Section 60119.
   (J) The priority objective of the visits made pursuant to this
paragraph shall be to determine the status of all of the following
circumstances:
   (i) Sufficient textbooks as defined in Section 60119 and as
specified in subdivision (i).
   (ii) The condition of a facility that poses an emergency or urgent
threat to the health or safety of pupils or staff as defined in
district policy or paragraph (1) of subdivision (c) of Section
17592.72.
   (iii) The accuracy of data reported on the school accountability
report card with respect to the availability of sufficient textbooks
and instructional materials, as defined by Section 60119, and the
safety, cleanliness, and adequacy of school facilities, including
good repair as required by Sections 17014, 17032.5, 17070.75, and
17089.
   (iv) The extent to which pupils who have not passed the high
school exit examination by the end of grade 12 are informed that they
are entitled to receive intensive instruction and services for up to
two consecutive academic years after completion of grade 12 or until
the pupil has passed both parts of the high school exit examination,
whichever comes first, pursuant to paragraphs (4) and (5) of
subdivision (d) of Section 37254.
   (v) The extent to which pupils who have elected to receive
intensive instruction and services, pursuant to paragraphs (4) and
(5) of subdivision (d) of Section 37254, are being served.
   (K) The county superintendent may make the status determinations
described in subparagraph (J) during a single visit or multiple
visits. In determining whether to make a single visit or multiple
visits for this purpose, the county superintendent shall take into
consideration factors such as cost-effectiveness, disruption to the
schoolsite, deadlines, and the availability of qualified reviewers.
   (L) If the county superintendent determines that the condition of
a facility poses an emergency or urgent threat to the health or
safety of pupils or staff as defined in district policy or paragraph
(1) of subdivision (c) of Section 17592.72, or is not in good repair,
as specified in subdivision (d) of Section 17002 and required by
Sections 17014, 17032.5, 17070.75, and 17089, the county
superintendent, among other things, may do any of the following:
   (i) Return to the school to verify repairs.
   (ii) Prepare a report that specifically identifies and documents
the areas or instances of noncompliance if the district has not
provided evidence of successful repairs within 30 days of the visit
of the county superintendent or, for major projects, has not provided
evidence that the repairs will be conducted in a timely manner. The
report may be provided to the governing board of the school district.
If the report is provided to the school district, it shall be
presented at a regularly scheduled meeting held in accordance with
public notification requirements. The county superintendent shall
post the report on his or her Internet Web site. The report shall be
removed from the Internet Web site when the county superintendent
verifies the repairs have been completed.
   (d) Distribute all laws, reports, circulars, instructions, and
blanks that he or she may receive for the use of the school officers.

   (e) Annually, on or before August 15, present a report to the
governing board of the school district and the Superintendent
regarding the fiscal solvency of a school district with a disapproved
budget, qualified interim certification, or a negative interim
certification, or that is determined to be in a position of fiscal
uncertainty pursuant to Section 42127.6.
   (f) Keep in his or her office the reports of the Superintendent.
   (g) Keep a record of his or her official acts, and of all the
proceedings of the county board of education, including a record of
the standing, in each study, of all applicants for certificates who
have been examined, which shall be open to the inspection of an
applicant or his or her authorized agent.
   (h) Enforce the course of study.
   (i) (1) Enforce the use of state textbooks and instructional
materials and of high school textbooks and instructional materials
regularly adopted by the proper authority in accordance with Section
51050.
   (2) For purposes of this subdivision, sufficient textbooks or
instructional materials has the same meaning as in subdivision (c) of
Section 60119.
   (3) (A) Commencing with the 2005-06 school year, if a school is
ranked in any of deciles 1 to 3, inclusive, of the base API, as
specified in paragraph (2) of subdivision (c), and not currently
under review pursuant to a state or federal intervention program, the
county superintendent specifically shall review that school at least
annually as a priority school. A review conducted for purposes of
this paragraph shall be completed by the fourth week of the school
year. For the 2004-05 fiscal year only, the county superintendent
shall make a diligent effort to conduct a visit to each school
pursuant to this paragraph within 120 days of receipt of funds for
this purpose.
   (B) In order to facilitate the review of instructional materials
before the fourth week of the school year, the county superintendent
in a county with 200 or more schools that are ranked in any of
deciles 1 to 3, inclusive, of the base API, as specified in paragraph
(2) of subdivision (c), may utilize a combination of visits and
written surveys of teachers for the purpose of determining
sufficiency of textbooks and instructional materials in accordance
with subparagraph (A) of paragraph (1) of subdivision (a) of Section
60119 and as defined in subdivision (c) of Section 60119. If a county
superintendent elects to conduct written surveys of teachers, the
county superintendent shall visit the schools surveyed within the
same academic year to verify the accuracy of the information reported
on the surveys. If a county superintendent surveys teachers at a
school in which the county superintendent has found sufficient
textbooks and instructional materials for the previous two
consecutive years and determines that the school does not have
sufficient textbooks or instructional materials, the county
superintendent shall within 10 business days provide a copy of the
insufficiency report to the school district as set forth in paragraph
(4).
   (C) For purposes of this paragraph, "written surveys" may include
paper and electronic or online surveys.
   (4) If the county superintendent determines that a school does not
have sufficient textbooks or instructional materials in accordance
with subparagraph (A) of paragraph (1) of subdivision (a) of Section
60119 and as defined by subdivision (c) of Section 60119, the county
superintendent shall do all of the following:
   (A) Prepare a report that specifically identifies and documents
the areas or instances of noncompliance.
   (B) Provide within five business days of the review, a copy of the
report to the school district, as provided in subdivision (c), or,
if applicable, provide a copy of the report to the school district
within 10 business days pursuant to subparagraph (B) of paragraph
(3).
   (C) Provide the school district with the opportunity to remedy the
deficiency. The county superintendent shall ensure remediation of
the deficiency no later than the second month of the school term.
   (D) If the deficiency is not remedied as required pursuant to
subparagraph (C), the county superintendent shall request the
department to purchase the textbooks or instructional materials
necessary to comply with the sufficiency requirement of this
subdivision. If the department purchases textbooks or instructional
materials for the school district, the department shall issue a
public statement at the first regularly scheduled meeting of the
state board occurring immediately after the department receives the
request of the county superintendent and that meets the applicable
public notice requirements, indicating that the district
superintendent and the governing board of the school district failed
to provide pupils with sufficient textbooks or instructional
materials as required by this subdivision. Before purchasing the
textbooks or instructional materials, the department shall consult
with the district to determine which textbooks or instructional
materials to purchase. All purchases of textbooks or instructional
materials shall comply with Chapter 3.25 (commencing with Section
60420) of Part 33. The amount of funds necessary for the purchase of
the textbooks and materials is a loan to the school district
receiving the textbooks or instructional materials. Unless the school
district repays the amount owed based upon an agreed-upon repayment
schedule with the Superintendent, the Superintendent shall notify the
Controller and the Controller shall deduct an amount equal to the
total amount used to purchase the textbooks and materials from the
next principal apportionment of the district or from another
apportionment of state funds.
   (j) Preserve carefully all reports of school officers and
teachers.
   (k) Deliver to his or her successor, at the close of his or her
official term, all records, books, documents, and papers belonging to
the office, taking a receipt for them, which shall be filed with the
department.
   (l) (1) Submit two reports during the fiscal year to the county
board of education in accordance with the following:
   (A) The first report shall cover the financial and budgetary
status of the county office of education for the period ending
October 31. The second report shall cover the period ending January
31. Both reports shall be reviewed by the county board of education
and approved by the county superintendent no later than 45 days after
the close of the period being reported.
   (B) As part of each report, the county superintendent shall
certify in writing whether or not the county office of education is
able to meet its financial obligations for the remainder of the
fiscal year and, based on current forecasts, for two subsequent
fiscal years. The certifications shall be classified as positive,
qualified, or negative, pursuant to standards prescribed by the
Superintendent, for the purposes of determining subsequent state
agency actions pursuant to Section 1240.1. For purposes of this
subdivision, a negative certification shall be assigned to a county
office of education that, based upon current projections, will not
meet its financial obligations for the remainder of the fiscal year
or for the subsequent fiscal year. A qualified certification shall be
assigned to a county office of education that may not meet its
financial obligations for the current fiscal year or two subsequent
fiscal years. A positive certification shall be assigned to a county
office of education that will meet its financial obligations for the
current fiscal year and subsequent two fiscal years. In accordance
with those standards, the Superintendent may reclassify a
certification. If a county office of education receives a negative
certification, the Superintendent, or his or her designee, may
exercise the authority set forth in subdivision (c) of Section 1630.
Copies of each certification, and of the report containing that
certification, shall be sent to the Superintendent at the time the
certification is submitted to the county board of education. Copies
of each qualified or negative certification and the report containing
that certification shall be sent to the Controller at the time the
certification is submitted to the county board of education.
   (i) For the 2011-12 fiscal year, notwithstanding any of the
standards and criteria adopted by the state board pursuant to Section
33127, each county office of education budget shall project the same
level of revenue per unit of average daily attendance as it received
in the 2010-11 fiscal year and shall maintain staffing and program
levels commensurate with that level.
   (ii) For the 2011-12 fiscal year, the county superintendent shall
not be required to certify in writing whether or not the county
office of education is able to meet its financial obligations for the
two subsequent fiscal years.
   (iii) For the 2011-12 fiscal year, notwithstanding any of the
standards and criteria adopted by the state board pursuant to Section
33127, the Superintendent, as a condition on approval of a county
office of education budget, shall not require a county office of
education to project a lower level of revenue per unit of average
daily attendance than it received in the 2010-11 fiscal year nor
require the county superintendent to certify in writing whether or
not the county office of education is able to meet its financial
obligations for the two subsequent fiscal years.
   (2) All reports and certifications required under this subdivision
shall be in a format or on forms prescribed by the Superintendent,
and shall be based on standards and criteria for fiscal stability
adopted by the state board pursuant to Section 33127. The reports and
supporting data shall be made available by the county superintendent
to an interested party upon request.
   (3) This subdivision does not preclude the submission of
additional budgetary or financial reports by the county
superintendent to the county board of education or to the
Superintendent.
   (4) The county superintendent is not responsible for the fiscal
oversight of the community colleges in the county, however, he or she
may perform financial services on behalf of those community
colleges.
   (m) If requested, act as agent for the purchase of supplies for
the city and high school districts of his or her county.
   (n) For purposes of Section 44421.5, report to the Commission on
Teacher Credentialing the identity of a certificated person who
knowingly and willingly reports false fiscal expenditure data
relative to the conduct of an educational program. This requirement
applies only if, in the course of his or her normal duties, the
county superintendent discovers information that gives him or her
reasonable cause to believe that false fiscal expenditure data
relative to the conduct of an educational program has been reported.
  SEC. 2.  Section 1622 of the Education Code is amended to read:
   1622.  (a) On or before July 1 of each fiscal year, the county
board of education shall adopt an annual budget for the budget year
and shall file that budget with the Superintendent of Public
Instruction, the county board of supervisors, and the county auditor.
The budget, and supporting data, shall be maintained and made
available for public review. The budget shall indicate the date,
time, and location at which the county board of education held the
public hearing required under Section 1620.
   (b) The Superintendent of Public Instruction shall examine the
budget to determine whether it (1) complies with the standards and
criteria adopted by the State Board of Education pursuant to Section
33127 for application to final local educational agency budgets, (2)
allows the county office of education to meet its financial
obligations during the fiscal year, and (3) is consistent with a
financial plan that will enable the county office of education to
satisfy its multiyear financial commitments. In addition, the
Superintendent shall identify any technical corrections to the budget
that must be made. On or before August 15, the Superintendent of
Public Instruction shall approve or disapprove the budget and, in the
event of a disapproval, transmit to the county office of education
in writing his or her recommendations regarding revision of the
budget and the reasons for those recommendations. For the 2011-12
fiscal year, notwithstanding any of the standards and criteria
adopted by the state board pursuant to Section 33127, the
Superintendent, as a condition on approval of a county office of
education budget, shall not require a county office of education to
project a lower level of revenue per unit of average daily attendance
than it received in the 2010-11 fiscal year nor require the county
superintendent to certify in writing whether or not the county office
of education is able to meet its financial obligations for the two
subsequent fiscal years.
   (c) On or before September 8, the county board of education shall
revise the county office of education budget to reflect changes in
projected income or expenditures subsequent to July 1, and to include
any response to the recommendations of the Superintendent of Public
Instruction, shall adopt the revised budget, and shall file the
revised budget with the Superintendent of Public Instruction, the
county board of supervisors, and the county auditor. Prior to
revising the budget, the county board of education shall hold a
public hearing regarding the proposed revisions, which shall be made
available for public inspection not less than three working days
prior to the hearing. The agenda for that hearing shall be posted at
least 72 hours prior to the public hearing and shall include the
location where the budget will be available for public inspection.
The revised budget, and supporting data, shall be maintained and made
available for public review.
   (d) The Superintendent of Public Instruction shall examine the
revised budget to determine whether it complies with the standards
and criteria adopted by the State Board of Education pursuant to
Section 33127 for application to final local educational agency
budgets and, no later than October 8, shall approve or disapprove the
revised budget. If the Superintendent of Public Instruction
disapproves the budget, he or she shall call for the formation of a
budget review committee pursuant to Section 1623. For the 2011-12
fiscal year, notwithstanding any of the standards and criteria
adopted by the state board pursuant to Section 33127, the
Superintendent, as a condition on approval of a county office of
education budget, shall not require a county office of education
                                       to project a lower level of
revenue per unit of average daily attendance than it received in the
2010-11 fiscal year nor require the county superintendent to certify
in writing whether or not the county office of education is able to
meet its financial obligations for the two subsequent fiscal years.
   (e) Notwithstanding any other provision of this section, the
budget review for a county office of education shall be governed by
paragraphs (1), (2), and (3) of this subdivision, rather than by
subdivisions (c) and (d), if the county board of education so elects,
and notifies the Superintendent of Public Instruction in writing of
that decision, no later than October 31 of the immediately preceding
calendar year.
   (1) In the event of the disapproval of the budget of a county
office of education pursuant to subdivision (b), on or before
September 8, the county superintendent of schools and the county
board of education shall review the recommendations of the
Superintendent of Public Instruction at a regularly scheduled meeting
of the county board of education and respond to those
recommendations. That response shall include the proposed actions to
be taken, if any, as a result of those recommendations.
   (2) No later than October 8, after receiving the response required
under paragraph (1), the Superintendent of Public Instruction shall
review that response and either approve or disapprove the budget of
the county office of education. If the Superintendent of Public
Instruction disapproves the budget, he or she shall call for the
formation of a budget review committee pursuant to Section 1623.
   (3) Not later than 45 days after the Governor signs the annual
Budget Act, the county office of education shall make available for
public review any revisions in revenues and expenditures that it has
made to its budget to reflect the funding made available by that
Budget Act.
  SEC. 3.  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. 4.  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. 5.  Section 8203.5 of the Education Code is amended to read:
   8203.5.  (a) The Superintendent shall ensure that each contract
entered into under this chapter to provide child care and development
services, or to facilitate the provision of those services, provides
support to the public school system of this state through the
delivery of appropriate educational services to the children served
pursuant to the contract.
   (b) The Superintendent shall ensure that all contracts for child
care and development programs include a requirement that each public
or private provider maintain a developmental profile to appropriately
identify the emotional, social, physical, and cognitive growth of
each child served in order to promote the child's success in the
public schools. To the extent possible, the department shall provide
a developmental profile to all public and private providers using
existing profile instruments that are most cost efficient. The
provider of any program operated pursuant to a contract under Section
8262 shall be responsible for maintaining developmental profiles
upon entry through exit from a child development program.
   (c)  Notwithstanding any other provision of law, "moneys to be
applied by the state," as used in subdivision (b) of Section 8 of
Article XVI of the California Constitution, includes funds
appropriated for the Child Care and Development Service Act pursuant
to Chapter 2 (commencing with Section 8200) of Part 6, whether or not
those funds are allocated to school districts, as defined in Section
41302.5, or community college districts.
   (d) This section is not subject to Part 34 (commencing with
Section 62000).
   (e) This section shall remain in effect only until July 1, 2011,
and as of that date is repealed, unless a later enacted statute, that
is enacted before July 1, 2011, deletes or extends that date.
  SEC. 6.  Section 8203.5 is added to the Education Code, to read:
   8203.5.  (a) The Superintendent shall ensure that each contract
entered into under this chapter to provide child care and development
services, or to facilitate the provision of those services, provides
support to the public school system of this state through the
delivery of appropriate educational services to the children served
pursuant to the contract.
   (b) The Superintendent shall ensure that all contracts for child
care and development programs include a requirement that each public
or private provider maintain a developmental profile to appropriately
identify the emotional, social, physical, and cognitive growth of
each child served in order to promote the child's success in the
public schools. To the extent possible, the department shall provide
a developmental profile to all public and private providers using
existing profile instruments that are most cost efficient. The
provider of any program operated pursuant to a contract under Section
8262 shall be responsible for maintaining developmental profiles
upon entry through exit from a child development program.
   (c) This section is not subject to Part 34 (commencing with
Section 62000) of Division 4 of Title 2.
   (d) This section shall become operative on July 1, 2011.
  SEC. 7.  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. 8.  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 or by whatever proportion is
necessary to ensure that expenditures for these programs do not
exceed the amounts appropriated for them, including any reductions
made subsequent to the adoption of the annual Budget Act. 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 or by whatever proportion
is necessary to ensure that expenditures for these programs do not
exceed the amounts appropriated for them, including any reductions
made subsequent to the adoption of the annual Budget Act.
   (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. 9.  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. 10.  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. 11.  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. 12.  Section 41202 of the Education Code is amended to read:
   41202.  The words and phrases set forth in subdivision (b) of
Section 8 of Article XVI of the Constitution of the State of
California shall have the following meanings:
   (a) "Moneys to be applied by the State," as used in subdivision
(b) of Section 8 of Article XVI of the California Constitution, means
appropriations from the General Fund that are made for allocation to
school districts, as defined, or community college districts. An
appropriation that is withheld, impounded, or made without provisions
for its allocation to school districts or community college
districts, shall not be considered to be "moneys to be applied by the
State."
   (b) "General Fund revenues which may be appropriated pursuant to
Article XIII B," as used in paragraph (1) of subdivision (b) of
Section 8 of Article XVI, means General Fund revenues that are the
proceeds of taxes as defined by subdivision (c) of Section 8 of
Article XIII B of the California Constitution, including, for the
1986-87 fiscal year only, any revenues that are determined to be in
excess of the appropriations limit established pursuant to Article
XIII B for the fiscal year in which they are received. General Fund
revenues for a fiscal year to which paragraph (1) of subdivision (b)
is being applied shall include, in that computation, only General
Fund revenues for that fiscal year that are the proceeds of taxes, as
defined in subdivision (c) of Section 8 of Article XIII B of the
California Constitution, and shall not include prior fiscal year
revenues. Commencing with the 1995-96 fiscal year, and each fiscal
year thereafter, "General Fund revenues that are the proceeds of
taxes," as defined in subdivision (c) of Section 8 of Article XIII B
of the California Constitution, includes any portion of the proceeds
of taxes received from the state sales tax that are transferred to
the counties pursuant to, and only if, legislation is enacted during
the 1995-96 fiscal year the purpose of which is to realign children's
programs. The amount of the proceeds of taxes shall be computed for
any fiscal year in a manner consistent with the manner in which the
amount of the proceeds of taxes was computed by the Department of
Finance for purposes of the Governor's Budget for the Budget Act of
1986.
   (c) "General Fund revenues appropriated for school districts," as
used in paragraph (1) of subdivision (b) of Section 8 of Article XVI
of the California Constitution, means the sum of appropriations made
that are for allocation to school districts, as defined in Section
41302.5, regardless of whether those appropriations were made from
the General Fund to the Superintendent of Public Instruction, to the
Controller, or to any other fund or state agency for the purpose of
allocation to school districts. The full amount of any appropriation
shall be included in the calculation of the percentage required by
paragraph (1) of subdivision (b) of Article XVI, without regard to
any unexpended balance of any appropriation. Any reappropriation of
funds appropriated in any prior year shall not be included in the sum
of appropriations.
   (d) "General Fund revenues appropriated for community college
districts," as used in paragraph (1) of subdivision (b) of Section 8
of Article XVI of the California Constitution, means the sum of
appropriations made that are for allocation to community college
districts, regardless of whether those appropriations were made from
the General Fund to the Controller, to the Chancellor of the
California Community Colleges, or to any other fund or state agency
for the purpose of allocation to community college districts. The
full amount of any appropriation shall be included in the calculation
of the percentage required by paragraph (1) of subdivision (b) of
Article XVI, without regard to any unexpended balance of any
appropriation. Any reappropriation of funds appropriated in any prior
year shall not be included in the sum of appropriations.
   (e) "Total allocations to school districts and community college
districts from General Fund proceeds of taxes appropriated pursuant
to Article XIII B," as used in paragraph (2) or (3) of subdivision
(b) of Section 8 of Article XVI of the California Constitution, means
the sum of appropriations made that are for allocation to school
districts, as defined in Section 41302.5, and community college
districts, regardless of whether those appropriations were made from
the General Fund to the Controller, to the Superintendent of Public
Instruction, to the Chancellor of the California Community Colleges,
or to any other fund or state agency for the purpose of allocation to
school districts and community college districts. The full amount of
any appropriation shall be included in the calculation of the
percentage required by paragraph (2) or (3) of subdivision (b) of
Section 8 of Article XVI, without regard to any unexpended balance of
any appropriation. Any reappropriation of funds appropriated in any
prior year shall not be included in the sum of appropriations.
   (f) "General Fund revenues appropriated for school districts and
community college districts, respectively" and "moneys to be applied
by the state for the support of school districts and community
college districts," as used in Section 8 of Article XVI of the
California Constitution, shall include funds appropriated for the
Child Care and Development Services Act pursuant to Chapter 2
(commencing with Section 8200) of Part 6 and shall not include any of
the following:
   (1) Any appropriation that is not made for allocation to a school
district, as defined in Section 41302.5, or to a community college
district regardless of whether the appropriation is made for any
purpose that may be considered to be for the benefit to a school
district, as defined in Section 41302.5, or a community college
district. This paragraph shall not be construed to exclude any
funding appropriated for the Child Care and Development Services Act
pursuant to Chapter 2 (commencing with Section 8200) of Part 6.
   (2) Any appropriation made to the Teachers' Retirement Fund or to
the Public Employees' Retirement Fund except those appropriations for
reimbursable state mandates imposed on or before January 1, 1988.
   (3) Any appropriation made to service any public debt approved by
the voters of this state.
   (g) "Allocated local proceeds of taxes," as used in paragraph (2)
or (3) of subdivision (b) of Section 8 of Article XVI of the
California Constitution, means, for school districts as defined,
those local revenues, except revenues identified pursuant to
paragraph (5) of subdivision (h) of Section 42238, that are used to
offset state aid for school districts in calculations performed
pursuant to Sections 2558, 42238, and Chapter 7.2 (commencing with
Section 56836) of Part 30.
   (h) "Allocated local proceeds of taxes," as used in paragraph (2)
or (3) of subdivision (b) of Section 8 of Article XVI of the
California Constitution, means, for community college districts,
those local revenues that are used to offset state aid for community
college districts in calculations performed pursuant to Section
84700. In no event shall the revenues or receipts derived from
student fees be considered "allocated local proceeds of taxes."
   (i) For the purposes of calculating the 4 percent entitlement
pursuant to subdivision (a) of Section 8.5 of Article XVI of the
California Constitution, "the total amount required pursuant to
Section 8(b)" shall mean the General Fund aid required for schools
pursuant to subdivision (b) of Section 8 of Article XVI of the
California Constitution, and shall not include allocated local
proceeds of taxes.
   (j) This section shall remain in effect only until July 1, 2011,
and as of that date is repealed, unless a later enacted statute, that
is enacted before July 1, 2011, deletes or extends that date.
  SEC. 13.  Section 41202 is added to the Education Code, to read:
   41202.  The words and phrases set forth in subdivision (b) of
Section 8 of Article XVI of the Constitution of the State of
California shall have the following meanings:
   (a) "Moneys to be applied by the State," as used in subdivision
(b) of Section 8 of Article XVI of the California Constitution, means
appropriations from the General Fund that are made for allocation to
school districts, as defined, or community college districts. An
appropriation that is withheld, impounded, or made without provisions
for its allocation to school districts or community college
districts, shall not be considered to be "moneys to be applied by the
State."
   (b) "General Fund revenues which may be appropriated pursuant to
Article XIII B," as used in paragraph (1) of subdivision (b) of
Section 8 of Article XVI, means General Fund revenues that are the
proceeds of taxes as defined by subdivision (c) of Section 8 of
Article XIII B of the California Constitution, including, for the
1986-87 fiscal year only, any revenues that are determined to be in
excess of the appropriations limit established pursuant to Article
XIII B for the fiscal year in which they are received. General Fund
revenues for a fiscal year to which paragraph (1) of subdivision (b)
is being applied shall include, in that computation, only General
Fund revenues for that fiscal year that are the proceeds of taxes, as
defined in subdivision (c) of Section 8 of Article XIII B of the
California Constitution, and shall not include prior fiscal year
revenues. Commencing with the 1995-96 fiscal year, and each fiscal
year thereafter, "General Fund revenues that are the proceeds of
taxes," as defined in subdivision (c) of Section 8 of Article XIII B
of the California Constitution, includes any portion of the proceeds
of taxes received from the state sales tax that are transferred to
the counties pursuant to, and only if, legislation is enacted during
the 1995-96 fiscal year the purpose of which is to realign children's
programs. The amount of the proceeds of taxes shall be computed for
any fiscal year in a manner consistent with the manner in which the
amount of the proceeds of taxes was computed by the Department of
Finance for purposes of the Governor's Budget for the Budget Act of
1986.
   (c) "General Fund revenues appropriated for school districts," as
used in paragraph (1) of subdivision (b) of Section 8 of Article XVI
of the California Constitution, means the sum of appropriations made
that are for allocation to school districts, as defined in Section
41302.5, regardless of whether those appropriations were made from
the General Fund to the Superintendent, to the Controller, or to any
other fund or state agency for the purpose of allocation to school
districts. The full amount of any appropriation shall be included in
the calculation of the percentage required by paragraph (1) of
subdivision (b) of Article XVI, without regard to any unexpended
balance of any appropriation. Any reappropriation of funds
appropriated in any prior year shall not be included in the sum of
appropriations.
   (d) "General Fund revenues appropriated for community college
districts," as used in paragraph (1) of subdivision (b) of Section 8
of Article XVI of the California Constitution, means the sum of
appropriations made that are for allocation to community college
districts, regardless of whether those appropriations were made from
the General Fund to the Controller, to the Chancellor of the
California Community Colleges, or to any other fund or state agency
for the purpose of allocation to community college districts. The
full amount of any appropriation shall be included in the calculation
of the percentage required by paragraph (1) of subdivision (b) of
Article XVI, without regard to any unexpended balance of any
appropriation. Any reappropriation of funds appropriated in any prior
year shall not be included in the sum of appropriations.
   (e) "Total allocations to school districts and community college
districts from General Fund proceeds of taxes appropriated pursuant
to Article XIII B," as used in paragraph (2) or (3) of subdivision
(b) of Section 8 of Article XVI of the California Constitution, means
the sum of appropriations made that are for allocation to school
districts, as defined in Section 41302.5, and community college
districts, regardless of whether those appropriations were made from
the General Fund to the Controller, to the Superintendent, to the
Chancellor of the California Community Colleges, or to any other fund
or state agency for the purpose of allocation to school districts
and community college districts. The full amount of any appropriation
shall be included in the calculation of the percentage required by
paragraph (2) or (3) of subdivision (b) of Section 8 of Article XVI,
without regard to any unexpended balance of any appropriation. Any
reappropriation of funds appropriated in any prior year shall not be
included in the sum of appropriations.
   (f) "General Fund revenues appropriated for school districts and
community college districts, respectively" and "moneys to be applied
by the state for the support of school districts and community
college districts," as used in Section 8 of Article XVI of the
California Constitution, shall include funds appropriated for
part-day California state preschool programs under Article 7
(commencing with Section 8235) of Chapter 2 of Part 6 of Division 1
of Title 1, and the After School Education and Safety Program
established pursuant to Article 22.5 (commencing with Section 8482)
of Chapter 2 of Part 6 of Division 1 of Title 1, and shall not
include any of the following:
   (1) Any appropriation that is not made for allocation to a school
district, as defined in Section 41302.5, or to a community college
district, regardless of whether the appropriation is made for any
purpose that may be considered to be for the benefit to a school
district, as defined in Section 41302.5, or a community college
district. This paragraph shall not be construed to exclude any
funding appropriated for part-day California state preschool programs
under Article 7 (commencing with Section 8235) of Chapter 2 of Part
6 of Division 1 of Title 1 or the After School Education and Safety
Program established pursuant to Article 22.5 (commencing with Section
8482) of Chapter 2 of Part 6 of Division 1 of Title 1.
   (2) Any appropriation made to the Teachers' Retirement Fund or to
the Public Employees' Retirement Fund except those appropriations for
reimbursable state mandates imposed on or before January 1, 1988.
   (3) Any appropriation made to service any public debt approved by
the voters of this state.
   (4) With the exception of the programs identified in paragraph
(1), commencing with the 2011-12 fiscal year, any funds appropriated
for the Child Care and Development Services Act, pursuant to Chapter
2 (commencing with Section 8200) of Part 6 of Division 1 of Title 1.
   (g) "Allocated local proceeds of taxes," as used in paragraph (2)
or (3) of subdivision (b) of Section 8 of Article XVI of the
California Constitution, means, for school districts as defined,
those local revenues, except revenues identified pursuant to
paragraph (5) of subdivision (h) of Section 42238, that are used to
offset state aid for school districts in calculations performed
pursuant to Sections 2558, 42238, and Chapter 7.2 (commencing with
Section 56836) of Part 30.
   (h) "Allocated local proceeds of taxes," as used in paragraph (2)
or (3) of subdivision (b) of Section 8 of Article XVI of the
California
Constitution, means, for community college districts, those local
revenues that are used to offset state aid for community college
districts in calculations performed pursuant to Section 84700. In no
event shall the revenues or receipts derived from student fees be
considered "allocated local proceeds of taxes."
   (i) For purposes of calculating the 4-percent entitlement pursuant
to subdivision (a) of Section 8.5 of Article XVI of the California
Constitution, "the total amount required pursuant to Section 8(b)"
shall mean the General Fund aid required for schools pursuant to
subdivision (b) of Section 8 of Article XVI of the California
Constitution, and shall not include allocated local proceeds of
taxes.
   (j) This section shall become operative on July 1, 2011.
  SEC. 14.  Section 41202.5 is added to the Education Code, to read:
   41202.5.  (a) The finds and declares as follows:
   (1) The Legislature acted to implement Proposition 98 soon after
its passage by defining "total allocations to school districts and
community college districts from General Fund proceeds of taxes" to
include the entirety of programs funded under the Child Care and
Development Services Act (Chapter 2 (commencing with Section 8200) of
Part 6 of Division 1 of Title 1).
   (2) In California Teachers Assn. v. Hayes (1992) 5 Cal.App.4th
1513, the Court of Appeal permitted the inclusion of child care
within the Proposition 98 minimum funding guarantee but left open the
possibility of excluding particular child care programs that did not
directly advance and support the educational mission of school
districts.
   (b) It is the intent of the Legislature to clarify that the
part-time state preschool programs and the After School Education and
Safety Program fall within the Proposition 98 guarantee and to fund
other child care programs less directly associated with school
districts from appropriations that do not count toward the
Proposition 98 minimum guarantee.
   (c) Notwithstanding any other provision of law, for purposes of
making the computations required by subdivision (b) of Section 8 of
Article XVI of the California Constitution in the 2011-12 fiscal year
and each subsequent fiscal year, both of the following apply:
   (1) For purposes of paragraph (1) of subdivision (b) of Section 8
of Article XVI of the California Constitution, the term "General Fund
revenues appropriated for school districts and community college
districts, respectively, in fiscal year 1986-87" does not include
General Fund revenues appropriated for any program within Chapter 2
(commencing with Section 8200) of Part 6 of Division 1 of Title 1,
with the exception of the part-day California state preschool
programs set forth in Article 7 (commencing with Section 8235) and
the After School Education and Safety Program in Article 22.5
(commencing with Section 8482). The Director of Finance shall adjust
accordingly "the percentage of General Fund revenues appropriated for
school districts and community college districts, respectively, in
fiscal year 1986-87," for purposes of applying that percentage in the
2011-12 fiscal year and each subsequent fiscal year in making the
calculations required under paragraph (1) of subdivision (b) of
Section 8 of Article XVI of the California Constitution.
   (2) General Fund revenues appropriated in the 2010-11 fiscal year
or any subsequent fiscal year for any program within Chapter 2
(commencing with Section 8200) of Part 6 of Division 1 of Title 1,
with the exception of the part-day California state preschool
programs set forth in Article 7 (commencing with Section 8235) and
the After School Education and Safety Program in Article 22.5
(commencing with Section 8482), are not included within the "total
allocations to school districts and community college districts from
General Fund proceeds of taxes appropriated pursuant to Article XIII
B" for purposes of paragraph (2) or (3) of subdivision (b) of Section
8 of Article XVI of the California Constitution.
  SEC. 15.  Section 41210 is added to the Education Code, to read:
   41210.  (a) The revenues transferred pursuant to Section 6015.15
and 6201.15 of the Revenue and Taxation Code are not "General Fund
revenues" as that term is used in Section 8 of Article XVI of the
California Constitution.
   (b) This section shall be operative for the 2011-12 fiscal year
and subsequent years so long as one or more ballot measures approved
before November 17, 2012, authorize the determination in subdivision
(a) and provide funding for school districts and community college
districts in an amount equal to that which would have been provided
if the revenues referenced in subdivision (a) were General Fund
revenues for purposes of Section 8 of Article XVI of the California
Constitution.
  SEC. 16.  Section 41211 is added to the Education Code, to read:
   41211.  The following shall apply if Section 41210 is rendered
inoperative because the ballot measure or measures described in
subdivision (b) of that section are not approved:
   (a) Before December 17, 2012, the Director of Finance, in
consultation with the Superintendent, shall determine the amount of
funding that would have been provided in the 2011-12 fiscal year to
school districts and community college districts if the revenues
described in subdivision (a) of Section 41210 were General Fund
revenues for purposes of Section 8 of Article XVI of the California
Constitution.
   (b) For each of the 2012-13 to 2016-17, inclusive, fiscal years,
17.8 percent of the amount determined in subdivision (a) is
appropriated from the General Fund to the Superintendent and shall be
distributed in the following priority:
   (1) To reduce amounts deferred under Section 14041.6.
   (2) To repay obligations to school districts and county offices of
education under Section 6 of Article XIII B of the California
Constitution.
   (3) To use for other one-time purposes as provided by statute
enacted after the effective date of this section.
   (c) For each of the 2012-13 to 2016-17, inclusive, fiscal years,
2.2 percent of the amount determined in subdivision (a) is
appropriated from the General Fund to the Chancellor of the
California Community Colleges and shall be distributed in the
following priority:
   (1) To reduce amounts deferred under Section 84321.6.
   (2) To repay obligations to community college districts under
Section 6 of Article XIII B of the California Constitution.
   (3) To use for other one-time purposes as provided by statute
enacted after the effective date of this section.
   (d) For the 2011-12 fiscal year and subsequent fiscal years, the
computations required by Section 8 of Article XVI of the California
Constitution shall include the amount determined in subdivision (a).
  SEC. 17.  Section 42127 of the Education Code is amended to read:
   42127.  (a) On or before July 1 of each year, the governing board
of each school district shall accomplish the following:
   (1) Hold a public hearing on the budget to be adopted for the
subsequent fiscal year. The budget to be adopted shall be prepared in
accordance with Section 42126. The agenda for that hearing shall be
posted at least 72 hours prior to the public hearing and shall
include the location where the budget will be available for public
inspection.
   (A) For the 2011-12 fiscal year, notwithstanding any of the
standards and criteria adopted by the state board pursuant to Section
33127, each school district budget shall project the same level of
revenue per unit of average daily attendance as it received in the
2010-11 fiscal year and shall maintain staffing and program levels
commensurate with that level.
   (B) For the 2011-12 fiscal year, the school district shall not be
required to demonstrate that it is able to meet its financial
obligations for the two subsequent fiscal years.
   (2) Adopt a budget. Not later than five days after that adoption
or by July 1, whichever occurs first, the governing board shall file
that budget with the county superintendent of schools. That budget
and supporting data shall be maintained and made available for public
review. If the governing board of the district does not want all or
a portion of the property tax requirement levied for the purpose of
making payments for the interest and redemption charges on
indebtedness as described in paragraph (1) or (2) of subdivision (b)
of Section 1 of Article XIII A of the California Constitution, the
budget shall include a statement of the amount or portion for which a
levy shall not be made.
   (b) The county superintendent of schools may accept changes in any
statement included in the budget, pursuant to subdivision (a), of
the amount or portion for which a property tax levy shall not be
made. The county superintendent or the county auditor shall compute
the actual amounts to be levied on the property tax rolls of the
district for purposes that exceed apportionments to the district
pursuant to Chapter 6 (commencing with Section 95) of Part 0.5 of
Division 1 of the Revenue and Taxation Code. Each school district
shall provide all data needed by the county superintendent or the
county auditor to compute the amounts. On or before August 15, the
county superintendent shall transmit the amounts computed to the
county auditor who shall compute the tax rates necessary to produce
the amounts. On or before September 1, the county auditor shall
submit the rate computed to the board of supervisors for adoption.
   (c) The county superintendent of schools shall do all of the
following:
   (1) Examine the adopted budget to determine whether it complies
with the standards and criteria adopted by the state board pursuant
to Section 33127 for application to final local educational agency
budgets. The county superintendent shall identify, if necessary, any
technical corrections that are required to be made to bring the
budget into compliance with those standards and criteria.
   (2) Determine whether the adopted budget will allow the district
to meet its financial obligations during the fiscal year and is
consistent with a financial plan that will enable the district to
satisfy its multiyear financial commitments. In addition to his or
her own analysis of the budget of each school district, the county
superintendent of schools shall review and consider studies, reports,
evaluations, or audits of the school district that were commissioned
by the district, the county superintendent, the Superintendent, and
state control agencies and that contain evidence that the school
district is showing fiscal distress under the standards and criteria
adopted in Section 33127 or that contain a finding by an external
reviewer that more than three of the 15 most common predictors of a
school district needing intervention, as determined by the County
Office Fiscal Crisis and Management Assistance Team, are present. The
county superintendent of schools shall either conditionally approve
or disapprove a budget that does not provide adequate assurance that
the district will meet its current and future obligations and resolve
any problems identified in studies, reports, evaluations, or audits
described in this paragraph.
   (d) On or before August 15, the county superintendent of schools
shall approve, conditionally approve, or disapprove the adopted
budget for each school district. If a school district does not submit
a budget to the county superintendent of schools, the county
superintendent of schools shall, at district expense, develop a
budget for that school district by September 15 and transmit that
budget to the governing board of the school district. The budget
prepared by the county superintendent of schools shall be deemed
adopted, unless the county superintendent of schools approves any
modifications made by the governing board of the school district. The
approved budget shall be used as a guide for the district's
priorities. The Superintendent shall review and certify the budget
approved by the county. If, pursuant to the review conducted pursuant
to subdivision (c), the county superintendent of schools determines
that the adopted budget for a school district does not satisfy
paragraph (1) or (2) of that subdivision, he or she shall
conditionally approve or disapprove the budget and, not later than
August 15, transmit to the governing board of the school district, in
writing, his or her recommendations regarding revision of the budget
and the reasons for those recommendations, including, but not
limited to, the amounts of any budget adjustments needed before he or
she can conditionally approve that budget. The county superintendent
of schools may assign a fiscal adviser to assist the district to
develop a budget in compliance with those revisions. In addition, the
county superintendent of schools may appoint a committee to examine
and comment on the superintendent's review and recommendations,
subject to the requirement that the committee report its findings to
the superintendent no later than August 20. For the 2011-12 fiscal
year, notwithstanding any of the standards and criteria adopted by
the state board pursuant to Section 33127, the county superintendent,
as a condition on approval of a school district budget, shall not
require a school district to project a lower level of revenue per
unit of average daily attendance than it received in the 2010-11
fiscal year nor require the school district to demonstrate that it is
able to meet its financial obligations for the two subsequent fiscal
years.
   (e) On or before September 8, the governing board of the school
district shall revise the adopted budget to reflect changes in
projected income or expenditures subsequent to July 1, and to include
any response to the recommendations of the county superintendent of
schools, shall adopt the revised budget, and shall file the revised
budget with the county superintendent of schools. Prior to revising
the budget, the governing board shall hold a public hearing regarding
the proposed revisions, to be conducted in accordance with Section
42103. In addition, if the adopted budget is disapproved pursuant to
subdivision (d), the governing board and the county superintendent of
schools shall review the disapproval and the recommendations of the
county superintendent of schools regarding revision of the budget at
the public hearing. The revised budget and supporting data shall be
maintained and made available for public review.
   (1) For the 2011-12 fiscal year, notwithstanding any of the
standards and criteria adopted by the state board pursuant to Section
33127, each school district budget shall project the same level of
revenue per unit of average daily attendance as it received in the
2010-11 fiscal year and shall maintain staffing and program levels
commensurate with that level.
   (2) For the 2011-12 fiscal year, the school district shall not be
required to demonstrate that it is able to meet its financial
obligations for the two subsequent fiscal years.
   (f) On or before September 22, the county superintendent of
schools shall provide a list to the Superintendent identifying all
school districts for which budgets may be disapproved.
   (g) The county superintendent of schools shall examine the revised
budget to determine whether it (1) complies with the standards and
criteria adopted by the state board pursuant to Section 33127 for
application to final local educational agency budgets, (2) allows the
district to meet its financial obligations during the fiscal year,
(3) satisfies all conditions established by the county superintendent
of schools in the case of a conditionally approved budget, and (4)
is consistent with a financial plan that will enable the district to
satisfy its multiyear financial commitments, and, not later than
October 8, shall approve or disapprove the revised budget. If the
county superintendent of schools disapproves the budget, he or she
shall call for the formation of a budget review committee pursuant to
Section 42127.1, unless the governing board of the school district
and the county superintendent of schools agree to waive the
requirement that a budget review committee be formed and the
department approves the waiver after determining that a budget review
committee is not necessary. Upon the grant of a waiver, the county
superintendent immediately has the authority and responsibility
provided in Section 42127.3. Upon approving a waiver of the budget
review committee, the department shall ensure that a balanced budget
is adopted for the school district by November 30. If no budget is
adopted by November 30, the Superintendent may adopt a budget for the
school district. The Superintendent shall report to the Legislature
and the Director of Finance by December 10 if any district, including
a district that has received a waiver of the budget review committee
process, does not have an adopted budget by November 30. This report
shall include the reasons why a budget has not been adopted by the
deadline, the steps being taken to finalize budget adoption, the date
the adopted budget is anticipated, and whether the Superintendent
has or will exercise his or her authority to adopt a budget for the
school district. For the 2011-12 fiscal year, notwithstanding any of
the standards and criteria adopted by the state board pursuant to
Section 33127, the county superintendent, as a condition on approval
of a school district budget, shall not require a school district to
project a lower level of revenue per unit of average daily attendance
than it received in the 2010-11 fiscal year nor require the school
district to demonstrate that it is able to meet its financial
obligations for the two subsequent fiscal years.
   (h) Not later than October 8, the county superintendent of schools
shall submit a report to the Superintendent identifying all school
districts for which budgets have been disapproved or budget review
committees waived. The report shall include a copy of the written
response transmitted to each of those districts pursuant to
subdivision (d).
   (i) Notwithstanding any other provision of this section, the
budget review for a school district shall be governed by paragraphs
(1), (2), and (3) of this subdivision, rather than by subdivisions
(e) and (g), if the governing board of the school district so elects
and notifies the county superintendent in writing of that decision,
not later than October 31 of the immediately preceding calendar year.
On or before July 1, the governing board of a school district for
which the budget review is governed by this subdivision, rather than
by subdivisions (e) and (g), shall conduct a public hearing regarding
its proposed budget in accordance with Section 42103.
   (1) If the adopted budget of a school district is disapproved
pursuant to subdivision (d), on or before September 8, the governing
board of the school district, in conjunction with the county
superintendent of schools, shall review the superintendent's
recommendations at a regular meeting of the governing board and
respond to those recommendations. The response shall include any
revisions to the adopted budget and other proposed actions to be
taken, if any, as a result of those recommendations.
   (2) On or before September 22, the county superintendent of
schools will provide a list to the Superintendent identifying all
school districts for which a budget may be tentatively disapproved.
   (3) Not later than October 8, after receiving the response
required under paragraph (1), the county superintendent of schools
shall review that response and either approve or disapprove the
budget. If the county superintendent of schools disapproves the
budget, he or she shall call for the formation of a budget review
committee pursuant to Section 42127.1, unless the governing board of
the school district and the county superintendent of schools agree to
waive the requirement that a budget review committee be formed and
the department approves the waiver after determining that a budget
review committee is not necessary. Upon the grant of a waiver, the
county superintendent has the authority and responsibility provided
to a budget review committee in Section 42127.3. Upon approving a
waiver of the budget review committee, the department shall ensure
that a balanced budget is adopted for the school district by November
30. The Superintendent shall report to the Legislature and the
Director of Finance by December 10 if any district, including a
district that has received a waiver of the budget review committee
process, does not have an adopted budget by November 30. This report
shall include the reasons why a budget has not been adopted by the
deadline, the steps being taken to finalize budget adoption, and the
date the adopted budget is anticipated. For the 2011-12 fiscal year,
notwithstanding any of the standards and criteria adopted by the
state board pursuant to Section 33127, the county superintendent, as
a condition on approval of a school district budget, shall not
require a school district to project a lower level of revenue per
unit of average daily attendance than it received in the 2010-11
fiscal year nor require the school district to demonstrate that it is
able to meet its financial obligations for the two subsequent fiscal
years.
   (4) Not later than 45 days after the Governor signs the annual
Budget Act, the school district shall make available for public
review any revisions in revenues and expenditures that it has made to
its budget to reflect the funding made available by that Budget Act.

   (j) Any school district for which the county board of education
serves as the governing board is not subject to subdivisions (c) to
(h), inclusive, but is governed instead by the budget procedures set
forth in Section 1622.
  SEC. 18.  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. 19.  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)
    to the Supplemental Revenue Augmentation Fund created within the
county pursuant to Section 100.06 of the Revenue and Taxation Code.
The aggregate amount of transfers required by this subdivision shall
be made in two equal shares, with the first share being transferred
no later than January 15, 2012, and the second share being
transferred after that date but no later than May 1, 2012.
    (c) The moneys transferred to the Supplemental Revenue
Augmentation Fund in the 2011-12 fiscal year shall be transferred by
the county office of education to the Controller, in amounts and for
those purposes as directed by the Director of Finance, exclusively to
reimburse the state for the costs of providing trial court services
and costs until those moneys are exhausted.
  SEC. 20.  Section 42606 of the Education Code is repealed.
  SEC. 21.  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. 22.  Section 44955.5 of the Education Code is amended to read:

   44955.5.  (a) During the time period between five days after the
enactment of the Budget Act and August 15 of the fiscal year to which
that Budget Act applies, if the governing board of a school district
determines that its total revenue limit per unit of average daily
attendance for the fiscal year of that Budget Act has not increased
by at least 2 percent, and if in the opinion of the governing board
it is therefore necessary to decrease the number of permanent
employees in the district, the governing board may terminate the
services of any permanent or probationary certificated employees of
the district, including employees holding a position that requires an
administrative or supervisory credential. The termination shall be
pursuant to Sections 44951 and 44955 but, notwithstanding anything to
the contrary in Sections 44951 and 44955, in accordance with a
schedule of notice and hearing adopted by the governing board.
   (b) This section is inoperative from July 1, 2002, to July 1,
2003, inclusive, and from July 1, 2011, to July 1, 2012, inclusive.
  SEC. 23.  Section 46201.3 is added to the Education Code, to read:
   46201.3.  (a) For the 2011-12 school year, the minimum number of
instructional days and minutes school districts, county offices of
education, and charter schools are required to offer as set forth in
Sections 41420, 46200, 46200.5, 46201, 46201.5, 46202, and 47612.5
shall be reduced by up to seven days.
   (b) Implementation of the reduction in the number of instructional
days offered by a school district, county office of education, and
charter school that is subject to collective bargaining pursuant to
Chapter 10.7 (commencing with Section 3540) of Division 4 of Title 1
of the Government Code shall be achieved through the bargaining
process, provided that the agreement has been completed and
reductions implemented no later than June 30, 2012.
   (c) The revenue limit for each school district, county office of
education, and charter school determined pursuant to Article 3
(commencing with Section 2550) of Chapter 12 of Part 2 of Division 1
of Title 1, Article 2 (commencing with Section 42238) of Chapter 7 of
Part 24 of Division 3, and Article 2 (commencing with Section 47633)
of Chapter 6 of Part 26.8 of Division 4 shall be reduced by the
product of 4 percent and the fraction determined pursuant to
paragraph (2).
   (1) Subtract the revenue forecast determined pursuant to
subdivision (a) of Section 3.94 of the Budget Act of 2011 from
eighty-six billion four hundred fifty-two million five hundred
thousand dollars ($86,452,500,000).
   (2) Divide the lesser of two billion dollars ($2,000,000,000) or
the amount calculated in paragraph (1) by two billion dollars
($2,000,000,000).
   (d) This section does not affect the number of instructional days
or instructional minutes that may be reduced pursuant to Section
46201.2.
   (e) The revenue limit reductions authorized by this section, when
combined with the reductions applied under subdivision (c) of Section
3.94 of the Budget Act of 2011, may not be applied so as to reduce
school funding below the requirements of Section 8 of Article XVI of
the California Constitution based on the applicable revenues
estimated by the Department of Finance pursuant to Section 3.94 of
the Budget Act of 2011.
   (f) This section shall be operative on February 1, 2012, only for
the 2011-12 school year and only if subdivision (c) of Section 3.94
of the Budget Act of 2011 is operative.
  SEC. 24.  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 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 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 shall collaborate with the Director 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. 25.  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. 26.  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. 27.  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. 28.  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. 29.  Section 76300 of the Education Code is amended to read:
   76300.  (a) The governing board of each community college district
shall charge each student a fee pursuant to this section.
   (b) (1) The fee prescribed by this section shall be thirty-six
dollars ($36) per unit per semester, effective with the fall term of
the 2011-12 academic year.
   (2) The board of governors shall proportionately adjust the amount
of the fee for term lengths based upon a quarter system, and also
shall proportionately adjust the amount of the fee for summer
sessions, intersessions, and other short-term courses. In making
these adjustments, the board of governors may round the per unit fee
and the per term or per session fee to the nearest dollar.
   (c) For the purposes of computing apportionments to community
college districts pursuant to Section 84750.5, the board of governors
shall subtract, from the total revenue owed to each district, 98
percent of the revenues received by districts from charging a fee
pursuant to this section.
   (d) The board of governors shall reduce apportionments by up to 10
percent to any district that does not collect the fees prescribed by
this section.
   (e) The fee requirement does not apply to any of the following:
   (1) Students enrolled in the noncredit courses designated by
Section 84757.
   (2) California State University or University of California
students enrolled in remedial classes provided by a community college
district on a campus of the University of California or a campus of
the California State University, for whom the district claims an
attendance apportionment pursuant to an agreement between the
district and the California State University or the University of
California.
   (3) Students enrolled in credit contract education courses
pursuant to Section 78021, if the entire cost of the course,
including administrative costs, is paid by the public or private
agency, corporation, or association with which the district is
contracting and if these students are not included in the calculation
of the full-time equivalent students (FTES) of that district.
   (f) The governing board of a community college district may exempt
special part-time students admitted pursuant to Section 76001 from
the fee requirement.
   (g) (1) The fee requirements of this section shall be waived for
any student who, at the time of enrollment, is a recipient of
benefits under the Temporary Assistance to Needy Families program,
the Supplemental Security Income/State Supplementary Program, or a
general assistance program or has demonstrated financial need in
accordance with the methodology set forth in federal law or
regulation for determining the expected family contribution of
students seeking financial aid.
   (2) The governing board of a community college district also shall
waive the fee requirements of this section for any student who
demonstrates eligibility according to income standards established by
regulations of the board of governors.
   (3) Paragraphs (1) and (2) may be applied to a student enrolled in
the 2005-06 academic year if the student is exempted from
nonresident tuition under paragraph (3) of subdivision (a) of Section
76140.
   (h) The fee requirements of this section shall be waived for any
student who, at the time of enrollment, is a dependent, or surviving
spouse who has not remarried, of any member of the California
National Guard who, in the line of duty and while in the active
service of the state, was killed, died of a disability resulting from
an event that occurred while in the active service of the state, or
is permanently disabled as a result of an event that occurred while
in the active service of the state. "Active service of the state,"
for the purposes of this subdivision, refers to a member of the
California National Guard activated pursuant to Section 146 of the
Military and Veterans Code.
   (i) The fee requirements of this section shall be waived for any
student who is the surviving spouse or the child, natural or adopted,
of a deceased person who met all of the requirements of Section
68120.
   (j) The fee requirements of this section shall be waived for any
student in an undergraduate program, including a student who has
previously graduated from another undergraduate or graduate program,
who is the dependent of any individual killed in the September 11,
2001, terrorist attacks on the World Trade Center and the Pentagon or
the crash of United Airlines Flight 93 in southwestern Pennsylvania,
if that dependent meets the financial need requirements set forth in
Section 69432.7 for the Cal Grant A Program and either of the
following applies:
   (1) The dependent was a resident of California on September 11,
2001.
   (2) The individual killed in the attacks was a resident of
California on September 11, 2001.
   (k) A determination of whether a person is a resident of
California on September 11, 2001, for purposes of subdivision (j)
shall be based on the criteria set forth in Chapter 1 (commencing
with Section 68000) of Part 41 of Division 5 for determining
nonresident and resident tuition.
   (l) (1) "Dependent," for purposes of subdivision (j), is a person
who, because of his or her relationship to an individual killed as a
result of injuries sustained during the terrorist attacks of
September 11, 2001, qualifies for compensation under the federal
September 11th Victim Compensation Fund of 2001 (Title IV (commencing
with Section 401) of Public Law 107-42).
   (2) A dependent who is the surviving spouse of an individual
killed in the terrorist attacks of September 11, 2001, is entitled to
the waivers provided in this section until January 1, 2013.
   (3) A dependent who is the surviving child, natural or adopted, of
an individual killed in the terrorist attacks of September 11, 2001,
is entitled to the waivers under subdivision (j) until that person
attains the age of 30 years.
   (4) A dependent of an individual killed in the terrorist attacks
of September 11, 2001, who is determined to be eligible by the
California Victim Compensation and Government Claims Board, is also
entitled to the waivers provided in this section until January 1,
2013.
   (m) (1) It is the intent of the Legislature that sufficient funds
be provided to support the provision of a fee waiver for every
student who demonstrates eligibility pursuant to subdivisions (g) to
(j), inclusive.
   (2) From funds provided in the annual Budget Act, the board of
governors shall allocate to community college districts, pursuant to
this subdivision, an amount equal to 2 percent of the fees waived
pursuant to subdivisions (g) to (j), inclusive. From funds provided
in the annual Budget Act, the board of governors shall allocate to
community college districts, pursuant to this subdivision, an amount
equal to ninety-one cents ($0.91) per credit unit waived pursuant to
subdivisions (g) to (j), inclusive. It is the intent of the
Legislature that funds provided pursuant to this subdivision be used
to support the determination of financial need and delivery of
student financial aid services, on the basis of the number of
students for whom fees are waived. It also is the intent of the
Legislature that the funds provided pursuant to this subdivision
directly offset mandated costs claimed by community college districts
pursuant to Commission on State Mandates consolidated Test Claims
99-TC-13 (Enrollment Fee Collection) and 00-TC-15 (Enrollment Fee
Waivers). Funds allocated to a community college district for
determination of financial need and delivery of student financial aid
services shall supplement, and shall not supplant, the level of
funds allocated for the administration of student financial aid
programs during the 1992-93 fiscal year.
   (n) The board of governors shall adopt regulations implementing
this section.
   (o) This section shall be inoperative and is repealed on January
1, 2012, only if Section 3.94 of the Budget Act of 2011 is operative.

  SEC. 30.  Section 76300 is added to the Education Code, to read:
   76300.  (a) The governing board of each community college district
shall charge each student a fee pursuant to this section.
   (b) (1) The fee prescribed by this section shall be forty-six
dollars ($46) per unit per semester, effective with the fall term of
the 2011-12 academic year.
   (2) The board of governors shall proportionately adjust the amount
of the fee for term lengths based upon a quarter system, and also
shall proportionately adjust the amount of the fee for summer
sessions, intersessions, and other short-term courses. In making
these adjustments, the board of governors may round the per unit fee
and the per term or per session fee to the nearest dollar.
   (c) For the purposes of computing apportionments to community
college districts pursuant to Section 84750.5, the board of governors
shall subtract, from the total revenue owed to each district, 98
percent of the revenues received by districts from charging a fee
pursuant to this section.
   (d) The board of governors shall reduce apportionments by up to 10
percent to any district that does not collect the fees prescribed by
this section.
   (e) The fee requirement does not apply to any of the following:
   (1) Students enrolled in the noncredit courses designated by
Section 84757.
   (2) California State University or University of California
students enrolled in remedial classes provided by a community college
district on a campus of the University of California or a campus of
the California State University, for whom the district claims an
attendance apportionment pursuant to an agreement between the
district and the California State University or the University of
California.
   (3) Students enrolled in credit contract education courses
pursuant to Section 78021, if the entire cost of the course,
including administrative costs, is paid by the public or private
agency, corporation, or association with which the district is
contracting and if these students are not included in the calculation
of the full-time equivalent students (FTES) of that district.
   (f) The governing board of a community college district may exempt
special part-time students admitted pursuant to Section 76001 from
the fee requirement.
   (g) (1) The fee requirements of this section shall be waived for
any student who, at the time of enrollment, is a recipient of
benefits under the Temporary Assistance to Needy Families program,
the Supplemental Security Income/State Supplementary Program, or a
general assistance program or has demonstrated financial need in
accordance with the methodology set forth in federal law or
regulation for determining the expected family contribution of
students seeking financial aid.
   (2) The governing board of a community college district also shall
waive the fee requirements of this section for any student who
demonstrates eligibility according to income standards established by
regulations of the board of governors.
   (3) Paragraphs (1) and (2) may be applied to a student enrolled in
the 2005-06 academic year if the student is exempted from
nonresident tuition under paragraph (3) of subdivision (a) of Section
76140.
   (h) The fee requirements of this section shall be waived for any
student who, at the time of enrollment, is a dependent or surviving
spouse who has not remarried, of any member of the California
National Guard who, in the line of duty and while in the active
service of the state, was killed, died of a disability resulting from
an event that occurred while in the active service of the state, or
is permanently disabled as a result of an event that occurred while
in the active service of the state. "Active service of the state,"
for the purposes of this subdivision, refers to a member of the
California National Guard activated pursuant to Section 146 of the
Military and Veterans Code.
   (i) The fee requirements of this section shall be waived for any
student who is the surviving spouse or the child, natural or adopted,
of a deceased person who met all of the requirements of Section
68120.
   (j) The fee requirements of this section shall be waived for any
student in an undergraduate program, including a student who has
previously graduated from another undergraduate or graduate program,
who is the dependent of any individual killed in the September 11,
2001, terrorist attacks on the World Trade Center and the Pentagon or
the crash of United Airlines Flight 93 in southwestern Pennsylvania,
if that dependent meets the financial need requirements set forth in
Section 69432.7 for the Cal Grant A Program and either of the
following applies:
   (1) The dependent was a resident of California on September 11,
2001.
   (2) The individual killed in the attacks was a resident of
California on September 11, 2001.
   (k) A determination of whether a person is a resident of
California on September 11, 2001, for purposes of subdivision (j)
shall be based on the criteria set forth in Chapter 1 (commencing
with Section 68000) of Part 41 of Division 5 for determining
nonresident and resident tuition.
   (l) (1) "Dependent," for purposes of subdivision (j), is a person
who, because of his or her relationship to an individual killed as a
result of injuries sustained during the terrorist attacks of
September 11, 2001, qualifies for compensation under the federal
September 11th Victim Compensation Fund of 2001 (Title IV (commencing
with Section 401) of Public Law 107-42).
   (2) A dependent who is the surviving spouse of an individual
killed in the terrorist attacks of September 11, 2001, is entitled to
the waivers provided in this section until January 1, 2013.
   (3) A dependent who is the surviving child, natural or adopted, of
an individual killed in the terrorist attacks of September 11, 2001,
is entitled to the waivers under subdivision (j) until that person
attains 30 years of age.
   (4) A dependent of an individual killed in the terrorist attacks
of September 11, 2001, who is determined to be eligible by the
California Victim Compensation and Government Claims Board, is also
entitled to the waivers provided in this section until January 1,
2013.
   (m) (1) It is the intent of the Legislature that sufficient funds
be provided to support the provision of a fee waiver for every
student who demonstrates eligibility pursuant to subdivisions (g) to
(j), inclusive.
   (2) From funds provided in the annual Budget Act, the board of
governors shall allocate to community college districts, pursuant to
this subdivision, an amount equal to 2 percent of the fees waived
pursuant to subdivisions (g) to (j), inclusive. From funds provided
in the annual Budget Act, the board of governors shall allocate to
community college districts, pursuant to this subdivision, an amount
equal to ninety-one cents ($0.91) per credit unit waived pursuant to
subdivisions (g) to (j), inclusive. It is the intent of the
Legislature that funds provided pursuant to this subdivision be used
to support the determination of financial need and delivery of
student financial aid services, on the basis of the number of
students for whom fees are waived. It also is the intent of the
Legislature that the funds provided pursuant to this subdivision
directly offset mandated costs claimed by community college districts
pursuant to Commission on State Mandates consolidated Test Claims
99-TC-13 (Enrollment Fee Collection) and 00-TC-15 (Enrollment Fee
Waivers). Funds allocated to a community college district for
determination of financial need and delivery of student financial aid
services shall supplement, and shall not supplant, the level of
funds allocated for the administration of student financial aid
programs during the 1992-93 fiscal year.
   (n) The board of governors shall adopt regulations implementing
this section.
   (o) This section shall become operative on January 1, 2012, only
if Section 3.94 of the Budget Act of 2011 is operative.
  SEC. 31.  Section 7911.1 of the Family Code is amended to read:
   7911.1.  (a) Notwithstanding any other 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 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) The certification requirements of this section shall not
impact placements of emotionally disturbed children made pursuant to
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. 32.  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. 33.  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. 34.  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. 35.  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. 36.  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. 37.  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. 38.  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. 39.  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. 40.  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. 41.  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. 42.  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. 43.  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. 44.  Section 7588 of the Government Code is repealed.
  SEC. 45.  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. 46.  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. 47.  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. 48.  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. 49.  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. 50.  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. 51.  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. 52.  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 Section 4, Sections 7 to 11, inclusive, and
Section 50 of this act, through all-county letters, management
bulletins, or other similar instructions.
  SEC. 53.  Notwithstanding any other law, the implementation of
Section 4, Sections 7 to 11, inclusive, and Section 50 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. 54.  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 services, including out-of-home
residential services for emotionally disturbed pupils, required by
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. 55.  (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 24 to 26, inclusive, Section 32 to 44,
inclusive, Sections 47 to 49, inclusive, and Section 51 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 24 to 26, inclusive, Section 32 to 44, inclusive,
Sections 47 to 49, inclusive, and Section 51 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 24 to 26, inclusive,
Section 32 to 44, inclusive, Sections 47 to 49, inclusive, and
Section 51 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. 56.  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. 57.  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. 58.  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.