BILL NUMBER: AB 189	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 7, 2011
	AMENDED IN ASSEMBLY  MARCH 3, 2011

INTRODUCED BY   Assembly Member Eng
   (Coauthors: Assembly Members  Fong,   Alejo,
  Fong,  Roger Hernández,  Mendoza, Swanson,
and Torres)

                        JANUARY 26, 2011

   An act to amend Sections 42605 and 52612 of the Education Code,
relating to education funding  , and making an appropriation
therefor  .



	LEGISLATIVE COUNSEL'S DIGEST


   AB 189, as amended, Eng. Education funding.
   (1) Existing law establishes various categorical education
programs and appropriates the funding for those programs in the
annual Budget Act. Existing law requires the Superintendent of Public
Instruction, for the 2008-09 to  2012-13  
2014-15  fiscal years, inclusive, to apportion from the amounts
provided in the annual Budget Act for specified categorical education
programs an amount based on the same relative proportion that the
local educational agency received in the 2008-09 fiscal year for
those programs and authorizes school districts, for those fiscal
years, to use these funds, with specified exceptions, for any
educational purpose, to the extent permitted by federal law. 
Existing law, for those fiscal years, deems local educational
agencies that use these categorical education program funds for any
educational purpose to be in compliance with the program and funding
requirements of those categorical education programs, including
requirements related to average daily attendance accounting.
 
   This bill would extend the operation of this provision for 2
additional fiscal years, thus extending it through the 2014-15 fiscal
year. Commencing with the 2011-12 fiscal year, the bill would
require a local educational agency that receives funding pursuant to
the above provision to allocate a sufficient amount, as defined, of
the funding received from specified Budget Items for the purposes
provided for in those items. As a condition of receipt of funds, the
bill would also require the governing board of the school district or
board of the county office of education, as appropriate, to certify
that this sufficient amount of funding has been provided at a
regularly scheduled open public hearing. The bill would also make
various findings and declarations. By allowing funds appropriated for
specified purposes to be expended for any educational purpose for 2
additional fiscal years, the bill would make an appropriation.
 
   Existing law requires, as a condition of receipt of the
above-described funds for any educational purpose, the governing
board of a school district or county office of education, as
appropriate, to discuss, approve, or disapprove the proposed use of
funding and to make explicit the purposes for which each item of
appropriation for specified categorical education programs will be
used at a regularly scheduled open public hearing.  
   This bill would require that public hearing to be held prior to
and independent of a meeting where the governing board of a school
district or county office of education adopts a budget. The bill
would also require the governing board to identify the program or
programs to be closed prior to the public hearing, as specified.
 
   (2) Existing law requires a local educational agency to report
expenditures of certain categorical education program funds for any
educational purpose using the Standardized Account Code Structure, as
specified, and requires the Department of Education to collect and
provide this information to the Department of Finance and appropriate
legislative committees by a specified date.  
   This bill would require that information to be collected in a
manner that displays the linkage between a local educational agency's
allocation of each item of appropriation for specified categorical
education programs and the agency's expenditure of those funds. 

   (2) 
    (3)  Existing law authorizes the governing board of a
school district maintaining an adult class to require an adult
enrolled in the class to pay a fee and prohibits the governing board
from imposing a charge for a class in English and citizenship for
foreigners or a class in an elementary subject, except as specified.
   This bill would remove that prohibition  until July 1, 2015
 .
   Vote: majority. Appropriation:  yes   no
 . Fiscal committee: yes. State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
   
  SECTION 1.    Section 42605 of the Education Code
is amended to read:
   42605.  (a) (1) Unless otherwise prohibited under federal law or
otherwise specified in subdivisions (e) and (g), for the 2008-09
fiscal year to the 2014-15 fiscal year, inclusive, recipients of
funds from the items listed in paragraph (2) may use funding
received, pursuant to subdivision (b), from any of these items listed
in paragraph (2) that are contained in Section 2.00 of the annual
Budget Act, for any educational purpose.
   (2) Items 6110-104-0001, 6110-105-0001, 6110-108-0001,
6110-122-0001, 6110-123-0001, 6110-124-0001, 6110-137-0001,
6110-144-0001, 6110-150-0001, 6110-151-0001, 6110-156-0001,
6110-181-0001, 6110-188-0001, 6110-189-0001, 6110-190-0001,
6110-193-0001, 6110-195-0001, 6110-198-0001, 6110-204-0001,
6110-208-0001, 6110-209-0001, 6110-211-0001, 6110-227-0001,
6110-228-0001, 6110-232-0001, 6110-240-0001, 6110-242-0001,
6110-243-0001, 6110-244-0001, 6110-245-0001, 6110-246-0001,
6110-247-0001, 6110-248-0001, 6110-260-0001, 6110-265-0001,
6110-266-0001, 6110-267-0001, 6110-268-0001, and 6360-101-0001 of
Section 2.00.
   (b) (1) For the 2009-10 fiscal year to the 2014-15 fiscal year,
inclusive, the Superintendent or other administering state agency, as
appropriate, shall apportion from the amounts provided in the annual
Budget Act for the items enumerated in paragraph (2) of subdivision
(a) an amount to recipients based on the same relative proportion
that the recipient received in the 2008-09 fiscal year for the
programs funded through the items enumerated in paragraph (2) of
subdivision (a).
   (2) This section and Section 42 of Chapter 12 of the 2009-10 Third
Extraordinary Session do not authorize a school district that
receives funding on behalf of a charter school pursuant to Sections
47634.1 and 47651 to redirect this funding for another purpose unless
otherwise authorized in law or pursuant to an agreement between a
charter school and its chartering authority. Notwithstanding
paragraph (1), for the 2008-09 fiscal year to the 2014-15 fiscal
year, inclusive, a school district that receives funding on behalf of
a charter school pursuant to Sections 47634.1 and 47651 shall
continue to distribute the funds to those charter schools based on
the relative proportion that the school district distributed in the
2007-08 fiscal year, and shall adjust those amounts to reflect
changes in charter school attendance in the district. The amounts
allocated shall be adjusted for any greater or lesser amount
appropriated for the items enumerated in paragraph (2) of subdivision
(a). For a charter school that began operation in the 2008-09 fiscal
year, if a school district received funding on behalf of that
charter school pursuant to Sections 47634.1 and 47651, the school
district shall continue to distribute the funds to that charter
school based on the relative proportion that the school district
distributed in the 2008-09 fiscal year and shall adjust the amount of
those funds to reflect changes in charter school attendance in the
district. The amounts allocated shall be adjusted for any greater or
lesser amount appropriated for the items enumerated in paragraph (2)
of subdivision (a).
   (3) Notwithstanding paragraph (1), for the 2008-09 fiscal year to
the 2014-15 fiscal year, inclusive, the Superintendent shall
apportion from the amounts appropriated by Item 6110-211-0001 of
Section 2.00 of the annual Budget Act an amount to a charter school
in accordance with the per-pupil methodology prescribed in
subdivision (c) of Section 47634.1.
   (4) Notwithstanding paragraph (1), for the 2008-09 fiscal year to
the 2014-15 fiscal year, inclusive, the Superintendent shall
apportion from the amounts provided in Section 2.00 of the annual
Budget Act an amount to a school district, charter school, and county
office of education based on the same relative proportion that the
local educational agency received in the 2007-08 fiscal year for the
programs funded through the following items contained in the annual
Budget Act: 6110-104-0001, 6110-105-0001, 6110-156-0001,
6110-190-0001, Schedule (3) of 6110-193-0001, 6110-198-0001,
6110-232-0001, and Schedule (2) of 6110-240-0001.
   (5) For purposes of paragraph (4), if a direct-funded charter
school began operation in the 2008-09 fiscal year, the amount that
the charter school was entitled to receive from the items enumerated
in paragraph (4) for the 2008-09 fiscal year, as certified by the
Superintendent in March 2009, is deemed to have been received in the
2007-08 fiscal year.
   (c) (1) This section does not obligate the state to refund or
repay reductions made pursuant to this section. A decision by a
school district to reduce funding pursuant to this section for a
state-mandated local program shall constitute a waiver of the
subvention of funds that the school district is otherwise entitled to
pursuant to Section 6 of Article XIII B of the California
Constitution on the amount so reduced.
   (2) As a condition of receipt of funds, the governing board of the
school district or board of the county office of education, as
appropriate, at a regularly scheduled open public hearing shall do
both of the following:
   (A) Take testimony from the public, discuss, approve or disapprove
the proposed use of funding, and make explicit for each of the
budget items in paragraph (2) of subdivision (a) the purposes for
which the funds will be used.
   (B) Certify that a sufficient amount of funding has been provided
pursuant to paragraph (1) of subdivision (g).
   (3) Using the Standardized Account Code Structure reporting
process, a local educational agency shall report expenditures of
funds pursuant to the authority of this section by using the
appropriate function codes to indicate the activities for which these
funds are expended. The department shall collect and provide this
information to the Department of Finance and the appropriate policy
and budget committees of the Legislature by April 15, 2010, and
annually thereafter on April 15 until, and including, April 15, 2016.

   (d) For the 2008-09 fiscal year to the 2014-15 fiscal year,
inclusive, local educational agencies that use the flexibility
provision of this section shall be deemed to be in compliance with
the program and funding requirements contained in statutory,
regulatory, and provisional language, associated with the items
enumerated in subdivision (a).
   (e) Notwithstanding subdivision (d), the following requirements
shall continue to apply:
   (1) For Items 6110-105-0001 and 6110-156-0001 of Section 2.00 of
the annual Budget Act, the amount authorized for flexibility shall
exclude the funding provided for instruction of CalWORKs-eligible
students pursuant to Schedules (2) and (3) and Provisions 2 and 4.
   (2) (A) Any instructional materials purchased by a local
educational agency shall be the materials adopted by the state board
for kindergarten and grades 1 to 8, inclusive, and for grades 9 to
12, inclusive, the materials purchased shall be aligned with state
standards as defined by Section 60605, and shall also meet the
reporting and sufficiency requirements contained in Section 60119.
   (B) For purposes of this section, "sufficiency" means that each
pupil has sufficient textbooks and instructional materials in the
four core areas as defined by Section 60119 and that all pupils
within the local educational agency who are enrolled in the same
course shall have identical textbooks and instructional materials, as
specified in Section 1240.3.
   (3) For Item 6110-195-0001 of Section 2.00 of the annual Budget
Act, the item shall exclude moneys that are required to fund awards
for teachers that have previously met the requirements necessary to
obtain these awards, until the award is paid in full.
   (4) For Item 6110-266-0001 of Section 2.00 of the annual Budget
Act, a county office of education shall conduct at least one site
visit to each of the required schoolsites pursuant to Section 1240
and shall fulfill all of the duties set forth in Sections 1240 and
44258.9.
   (5) For Item 6110-198-0001 of Section 2.00 of the annual Budget
Act, a school district or county office of education that operates
the child care component of the Cal-SAFE program shall comply with
paragraphs (5) and (6) of subdivision (c) of Section 54746.
   (f) This section does not invalidate any state law pertaining to
teacher credentialing requirements or the functions that require
credentials.
   (g) (1) Notwithstanding subdivision (d), commencing with the
2011-12 fiscal year, a local educational agency that receives funding
pursuant to this section shall allocate a sufficient amount of
funding received from the items listed in paragraph (2) for the
purposes provided for in those items. For purposes of this paragraph,
a "sufficient amount" means maintaining a sufficient level of
instruction services for each of the programs funded by the items
listed in paragraph (2), to the extent that the local educational
agency shall be able to reinstate full funding for the programs upon
the expiration of the funding flexibility authorized pursuant to this
section.
   (2) This subdivision shall apply to Items 6110-104-0001,
6110-105-0001, 6110-156-0001, and 6110-204-0001 of Section 2.00 of
the annual Budget Act.
   (3) The Legislature finds and declares both of the following:
   (A) The funding flexibility authorized pursuant to this section is
for the purpose of assisting local educational agencies in
responding to the state's current fiscal emergency and is intended to
last only for the duration of the fiscal emergency.
   (B) It is the intent of the Legislature that, after a local
educational agency makes the determination that a sufficient amount
of funding has been allocated pursuant to paragraph (1), the local
educational agency should ensure that there are an adequate number of
administrative and credentialed teaching staff to provide a baseline
level of core courses during the period that funding flexibility is
authorized pursuant to this section, so that there is sufficient
staffing to fully expand programmatic offerings upon the expiration
of the funding flexibility. 
   SECTION 1.    Section 42605 of the  
Education Code   is amended to read: 
   42605.  (a) (1) Unless otherwise prohibited under federal law or
otherwise specified in subdivision (e), for the 2008-09 fiscal year
to the 2014-15 fiscal year, inclusive, recipients of funds from the
items listed in paragraph (2) may use funding received, pursuant to
subdivision (b), from any of these items listed in paragraph (2) that
are contained in  an   Section 2.00 of the
 annual Budget Act, for any educational purpose.
   (2) Items 6110-104-0001, 6110-105-0001, 6110-108-0001,
6110-122-0001, 6110-124-0001, 6110-137-0001, 6110-144-0001,
6110-150-0001, 6110-151-0001, 6110-156-0001, 6110-181-0001,
6110-188-0001, 6110-189-0001, 6110-190-0001, 6110-193-0001,
6110-195-0001, 6110-198-0001, 6110-204-0001, 6110-208-0001,
6110-209-0001, 6110-211-0001, 6110-227-0001, 6110-228-0001,
6110-232-0001, 6110-240-0001, 6110-242-0001, 6110-243-0001,
6110-244-0001, 6110-245-0001, 6110-246-0001, 6110-247-0001,
6110-248-0001, 6110-260-0001, 6110-265-0001, 6110-266-0001,
6110-267-0001, 6110-268-0001, and 6360-101-0001 of Section 2.00.
   (b) (1) For the 2009-10 fiscal year to the 2014-15 fiscal year,
inclusive, the Superintendent or other administering state agency, as
appropriate, shall apportion from the amounts provided in the annual
Budget Act for the items enumerated in paragraph (2) of subdivision
(a) an amount to recipients based on the same relative proportion
that the recipient received in the 2008-09 fiscal year for the
programs funded through the items enumerated in paragraph (2) of
subdivision (a).
   (2) This section and Section 42 of Chapter 12 of the Third
Extraordinary Session of the Statutes of 2009 do not authorize a
school district that receives funding on behalf of a charter school
pursuant to Sections 47634.1 and 47651 to redirect this funding for
another purpose unless otherwise authorized in law or pursuant to an
agreement between a charter school and its chartering authority.
Notwithstanding paragraph (1), for the 2008-09 fiscal year to the
2014-15 fiscal year, inclusive, a school district that receives
funding on behalf of a charter school pursuant to Sections 47634.1
and 47651 shall continue to distribute the funds to those charter
schools based on the relative proportion that the school district
distributed in the 2007-08 fiscal year, and shall adjust those
amounts to reflect changes in charter school attendance in the
district. The amounts allocated shall be adjusted for any greater or
lesser amount appropriated for the items enumerated in paragraph (2)
of subdivision (a). For a charter school that began operation in the
2008-09 fiscal year, if a school district received funding on behalf
of that charter school pursuant to Sections 47634.1 and 47651, the
school district shall continue to distribute the funds to that
charter school based on the relative proportion that the school
district distributed in the 2008-09 fiscal year and shall adjust the
amount of those funds to reflect changes in charter school attendance
in the district. The amounts allocated shall be adjusted for any
greater or lesser amount appropriated for the items enumerated in
paragraph (2) of subdivision (a).
   (3) Notwithstanding paragraph (1), for the 2008-09 fiscal year to
the 2014-15 fiscal year, inclusive, the Superintendent shall
apportion from the amounts appropriated by Item 6110-211-0001 of
Section 2.00 of the annual Budget Act an amount to a charter school
in accordance with the per-pupil methodology prescribed in
subdivision (c) of Section 47634.1.
   (4) Notwithstanding paragraph (1), for the 2008-09 fiscal year to
the 2014-15 fiscal year, inclusive, the Superintendent shall
apportion from the amounts provided in  Section 2.00 of  the
annual Budget Act an amount to a school district, charter school,
and county office of education based on the same relative proportion
that the local educational agency received in the 2007-08 fiscal year
for the programs funded through the following items contained in
Section 2.00 of the annual Budget Act: 6110-104-0001, 6110-105-0001,
6110-156-0001, 6110-190-0001, Schedule (3) of 6110-193-0001,
6110-198-0001, 6110-232-0001, and Schedule (2) of 6110-240-0001.
   (5) For purposes of paragraph (4), if a direct-funded charter
school began operation in the 2008-09 fiscal year, the amount that
the charter school was entitled to receive from the items enumerated
in paragraph (4) for the 2008-09 fiscal year, as certified by the
Superintendent in March 2009, is deemed to have been received in the
2007-08 fiscal year.
   (c) (1) This section does not obligate the state to refund or
repay reductions made pursuant to this section. A decision by a
school district to reduce funding pursuant to this section for a
state-mandated local program shall constitute a waiver of the
subvention of funds that the school district is otherwise entitled to
pursuant to Section 6 of Article XIII B of the California
Constitution on the amount so reduced.
   (2)  (A)    As a condition of receipt of funds,
the governing board of the school district or  governing 
board of the county office of education, as appropriate, at a
regularly scheduled open public hearing shall take testimony from the
public, discuss, approve or disapprove the proposed use of funding,
and make explicit for each of the budget items in paragraph (2) of
subdivision (a) the purposes for which the funds will be used. 
   (B) The regularly scheduled open public hearing held pursuant to
subparagraph (A) shall be held prior to and independent of a meeting
where the governing board of the school district or governing board
of the county office of education adopts a budget. If the governing
board intends to close a program funded by the items listed in
paragraph (2) of subdivision (a), the governing board shall identify,
in the notice of the agenda of the public hearing or at another
public hearing, the program or programs proposed to be closed. 
   (3)  (A)    Using the Standardized Account Code
Structure reporting process, a local educational agency shall report
expenditures of funds pursuant to the authority of this section by
using the appropriate function codes to indicate the activities for
which these funds are expended. The department shall collect and
provide this information to the Department of Finance and the
appropriate policy and budget committees of the Legislature by April
15, 2010, and annually thereafter on April 15 until, and including,
April 15, 2016. 
   (B) The information collected pursuant to subparagraph (A) shall
be collected and provided in a manner that displays the linkage
between a local educational agency's allocation of each item listed
in paragraph (2) of subdivision (a) and the local educational agency'
s expenditure of those funds. 
   (d) For the 2008-09 fiscal year to the 2014-15 fiscal year,
inclusive, local educational agencies that use the flexibility
provision of this section shall be deemed to be in compliance with
the program and funding requirements contained in statutory,
regulatory, and provisional language, associated with the items
enumerated in subdivision (a).
   (e) Notwithstanding subdivision (d), the following requirements
shall continue to apply:
   (1) For Item 6110-105-0001 of Section 2.00 of the annual Budget
Act, the amount authorized for flexibility shall exclude the funding
provided to fund remedial educational services pursuant to Provision
4. For Item 6110-156-0001 of Section 2.00 of the annual Budget Act,
the amount authorized for flexibility shall exclude the funding
provided for instruction of CalWORKs-eligible students pursuant to
Schedules (2) and (3) and Provisions 2 and 4.
   (2) (A) Any instructional materials purchased by a local
educational agency shall be the materials adopted by the state board
for kindergarten and grades 1 to 8, inclusive, and for grades 9 to
12, inclusive, the materials purchased shall be aligned with state
standards as defined by Section 60605, and shall also meet the
reporting and sufficiency requirements contained in Section 60119.
   (B) For purposes of this section, "sufficiency" means that each
pupil has sufficient textbooks and instructional materials in the
four core areas as defined by Section 60119 and that all pupils
within the local educational agency who are enrolled in the same
course shall have identical textbooks and instructional materials, as
specified in Section 1240.3.
   (3) For Item 6110-195-0001 of Section 2.00 of the annual Budget
Act, the item shall exclude moneys that are required to fund awards
for teachers that have previously met the requirements necessary to
obtain these awards, until the award is paid in full.
   (4) For Item 6110-266-0001 of Section 2.00 of the annual Budget
Act, a county office of education shall conduct at least one site
visit to each of the required schoolsites pursuant to Section 1240
and shall fulfill all of the duties set forth in Sections 1240 and
44258.9.
   (5) For Item 6110-198-0001 of Section 2.00 of the annual Budget
Act, a school district or county office of education that operates
the child care component of the Cal-SAFE program shall comply with
paragraphs (5) and (6) of subdivision (c) of Section 54746.
   (f) This section does not invalidate any state law pertaining to
teacher credentialing requirements or the functions that require
credentials.
  SEC. 2.  Section 52612 of the Education Code is amended to read:
   52612.  (a) Except as specified in this section, the governing
board of the  school  district maintaining the class may
require an adult enrolled in a class for adults to pay a fee for the
class.  Except as specified in Section 52613, the governing board
of a school district shall not impose a charge of any kind for a
class in English and citizenship or a class in an elementary subject.
 A fee charge shall not be made for a class designated by the
governing board as a class for which high school credit is granted
when the class is taken by a person who does not hold a high school
diploma. The total of the fees required and revenues derived from
average daily attendance shall not exceed the estimated cost of all
such classes maintained, including the reserves authorized by Section
52501.5.
   (b) All textbooks and classroom materials furnished without charge
under this section may also be offered for sale at the school
bookstore. 
   (c) Notwithstanding subdivision (a), the governing board of a
school district may charge a fee for a class in English and
citizenship or a class in an elementary subject until July 1, 2015.