BILL NUMBER: AB 1476	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 25, 2012

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

                        JANUARY 10, 2012

    An act relating to the Budget Act of 2012.  
An act to amend Sections 2558, 2558.46, 2571, 8208, 8235, 8236.1,
8238, 8238.4, 8239, 8263, 8263.1, 8335.4, 8335.5, 8335.7, 8447,
14041.7, 17173, 17180, 17183, 17193.5, 17199.1, 17199.3, 17199.4,
17230, 17458, 17464, 17489, 17592.71, 22138.5, 41203.1, 42238,
42238.146, 42238.15, 42621, 42622, 47633, 52055.770, 56471, 69432,
69432.7, 69433.5, 69436, and 69999.6 of, to amend, repeal, and add
Sections 1042, 14041, 14041.6, 41202, 47603, 76140, and 84321.6 of,
to add Sections 8263.3, 17199.6, 41207.6, 41366.6, 42620.1, and
52055.780 to, to add and repeal Sections 17457.5 and 46201.4 of, and
to repeal Sections 8236.2, 8238.1, 8238.2, 8238.3, 8238.5, 8238.6,
41204.2, and 41204.3 of, the Education Code, to amend Sections 
 7906, 53850, 53853, and 65995.7 of, and to add Sections 17581.6
and 17581.7 to, the Government Code, and to amend Items
6110-108-0001, 6110-161-0001, 6110-166-0001, 6110-204-0001,
6110-227-0001, 6110-260-0001, 6110-265-0001, 6110-267-0001, 6110-488,
and 6870-101-0001 of Section 2.00 of the Budget Act of 2011 (Chapter
33 of the Statutes of 2011), relating to education finance, and
making an appropriation therefor, to take effect immediately, bill
related to the budget. 



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1476, as amended, Committee on Budget.  Budget Act of
2012.   Education finance.  
   (1) Existing law authorizes a county superintendent of schools,
with the approval of the county board of education, to temporarily
transfer moneys to a school district under specified circumstances.
 
   The Charter Schools Act of 1992 authorizes any one or more persons
to submit a petition to the governing board of a school district to
establish a charter school that operates independently from the
existing school district structure as a method of accomplishing
specified goals.  
   This bill, until July 1, 2017, would authorize a county board of
education, subject to the concurrence of the county superintendent of
schools, to loan moneys from the proceeds of revenue anticipation
notes to a charter school for which the county board of education or
the county superintendent of schools has a supervisory responsibility
or, regardless of whether the charter school is within or outside of
the county, with which a county board of education or county
superintendent of schools has a contractual relationship. The bill
would require the county superintendent of schools, before the county
board of education makes the loan, to take specified actions
regarding the advisability of the loan. The bill would provide that
any loan of moneys pursuant to these provisions would not constitute
a debt or liability of the county superintendent of schools, the
county board of education, or the State of California. The bill would
prohibit a charter school from receiving more than one of these
loans per fiscal year.  
   The bill would require the county board of education, as a
condition of making a loan to a charter school, to report to the
State Department of Education by September 15 of each year specified
information on loans made to charter schools within the prior fiscal
year, and would require the department to compile that information
into one report to be submitted by December 1 of each year to the
appropriate policy and fiscal committees of the Legislature, the
Department of Finance, and the Legislative Analyst's Office. 

   (2) Existing law requires the Superintendent of Public Instruction
to apportion state aid to county superintendents of schools in
accordance with prescribed calculations.  
   This bill would revise the calculations by subtracting amounts
received separately relating to the Redevelopment Property Tax Trust
Fund and a proposed constitutional provision relating to education
funding.  
   (3) 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 20.691%.  
   This bill would set the deficit factor for each county
superintendent of schools for the 2012-13 fiscal year at 22.549%.
 
   (4) Existing law requires the Superintendent to make specified
computations relating to the allocation of property tax revenues for
each county superintendent of schools.  
   This bill would revise these computations to include as property
tax revenues those received by a county superintendent of schools
relating to the Redevelopment Property Tax Trust Fund.  
   (5) Existing law requires the Superintendent to administer all
California state preschool programs, including, but not limited to,
part-day and full-day age and developmentally appropriate programs
for 3- and 4-year-old children. Existing law defines 3- and
4-year-old children for these purposes as children who will have
their 3rd or 4th birthday, respectively, on or before December 2 of
the fiscal year in which they are enrolled in a California state
preschool program.  
   This bill would instead provide that the state preschool programs
shall include, but not be limited to, part-day age and
developmentally appropriate programs designed to facilitate the
transition to kindergarten for 3- and 4-year-old children. The bill
would instead define 3- and 4-year-old children as children who will
have their 3rd or 4th birthday, respectively, on or before November 1
for the 2012-13 fiscal year, October 1 for the 2013-14 fiscal year,
and September 1 for the 2014-15 fiscal year and each fiscal year
thereafter. The bill would, among other things, make conforming
changes relating to the deletion of references to full-day preschool
programs.  
   (6) Existing law requires the State Department of Education to
annually report to the Department of Finance and the Legislature a
statewide summary identifying, among other things, the number of
preschool age children receiving part-time and full-time development
services.  
   This bill would instead require the department to annually report
to the Department of Finance and the Legislature a statewide summary
identifying, among other things, the number of preschool age children
receiving part-day preschool and wraparound child care services, as
defined.  
   (7) Existing law requires child development and preschool
programs, as a condition of receipt of specified funds appropriated
in the Budget Act of 2006, to include, but not be limited to, age and
developmentally appropriate activities for children that are
designed to facilitate their transition to kindergarten, and
opportunities for parents and legal guardians to work with their
children on interactive literacy activities, as defined.  
   This bill would instead require a participating part-day preschool
program, as a condition of receipt of funds being provided for in
the annual Budget Act or other statute, to coordinate the provision
of (A) opportunities for parents and legal guardians to work with
their children on interactive literacy activities, as defined, (B)
specified parenting education, (C) referrals, as necessary, to
providers of instruction in adult education and English as a second
language in order to improve the academic skills of parents of
children in participating classrooms, and (D) specified staff
development.  
   (8) Existing law requires child development and preschool
programs, as a condition of receipt of specified funds appropriated
in the Budget Act of 2006, to coordinate the provision of specified
parenting education, and referrals, as necessary, to providers of
instruction in adult education and English as a second language in
order to improve the academic skills of parents of children in
participating classrooms.  
   This bill would repeal that provision, which is recodified in
regard to part-day preschool programs as described in (7).  

   (9) Existing law authorizes a local educational agency or a
participating program on behalf of one or more participating programs
to select a family literacy and education coordinator whose duties
may include specified activities.  
   This bill would repeal that provision.  
   (10) Existing law requires child development and preschool
programs, as a condition of receipt of specified funds appropriated
in the Budget Act of 2006, to provide specified staff development for
teachers in participating classrooms.  
   This bill would repeal that provision, as its provisions are
recodified.  
   (11) Existing law establishes a schedule for the expenditure, by
the Superintendent, of prescribed funds appropriated pursuant to the
Budget Act of 2006 for child development and preschool programs.
 
   This bill would instead require a family literacy supplemental
grant to be made available and distributed to California state
preschool classrooms, as determined by the Superintendent, at a rate
of $2,500 per class. The bill would, among other things, assign first
priority to California state preschool programs that contract to
receive this funding before July 1, 2012. The bill would require
family literacy supplemental grants to be used for specified
purposes. The bill would also provide that implementation of the
family literacy supplemental grant program is contingent upon funding
being provided for the program in the annual Budget Act or other
statute.  
   (12) Existing law requires, subject to the availability of
specified funds, the Superintendent to conduct a specified evaluation
of the effectiveness of prekindergarten and family literacy programs
established pursuant to specified provisions of law.  
   This bill would repeal that provision.  
   (13) Existing law authorizes the use of up to $5,000,000 of
specified funds appropriated in the Budget Act of 2005 by the
Superintendent to provide direct child care services for children in
participating classrooms to meet the child care needs of parents for
the portion of each day that is not covered by services provided as
part of a specified preschool program.  
   This bill would repeal that provision.  
   (14) Existing law requires the Superintendent to encourage state
preschool program applicants or contracting agencies to offer
full-day services through a combination of part-day preschool slots
and part-day general child care and development programs. Existing
law provides specified requirements in order to facilitate a full day
of services and requires a child who is enrolled in a preschool
program to meet specified eligibility requirements in order to be
eligible for part-day child care.  
   This bill would instead require the Superintendent to encourage
state preschool program applicants or contracting agencies to offer
full-day services through a combination of part-day preschool slots
and wraparound general child care and development programs, as
defined. The bill would also require fees to be assessed and
collected for families with children in part-day preschool programs,
families receiving wraparound child care services, as defined, or
both.  
   (15) Existing law requires the Superintendent to establish a fee
schedule for families using child care and development services
pursuant to the Child Care and Development Services Act. Existing law
requires that the family fee schedule prohibit the assessment of
fees on families whose children are enrolled in the state preschool
program.  
   This bill would remove this prohibition, thereby allowing the
family fee schedule to include the assessment of fees on families
whose children are enrolled in the state preschool program. 

   (16) Existing law provides for income eligibility standards for
families to receive child care and development services. Existing law
provides that "income eligible," for the purposes of the Child Care
and Development Services Act, means that a family's adjusted monthly
income is at or below 70% of the state median income, adjusted for
family size, and adjusted annually. Notwithstanding this provision,
existing law provides that, for the 2011-12 fiscal year, the income
eligibility limits that were in effect for the 2007-08 fiscal year
are reduced to 70% of the state median income that was in use for the
2007-08 fiscal year, adjusted for family size.  
   This bill would provide that, notwithstanding these provisions,
for the 2012-13 fiscal year, the income eligibility limits are to be
70% of the state median income that was in use for the 2007-08 fiscal
year, adjusted for family size. 
   (17) Existing law requires the State Department of Education,
effective July 1, 2011, 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 11% or by whatever proportion is necessary to
ensure that the expenditures for these programs do not exceed the
amounts appropriated for them. Existing law requires, effective July
1, 2011, families to be disenrolled from subsidized child care
services in a specified order that requires, among other things,
families whose income exceeds 70% of the state median income adjusted
for family size to be disenrolled first, except as specified, and
families with the highest income below 70% of the state median
income, in relation to family size, to be disenrolled second. 

   This bill would require the department, effective July 1, 2012, to
reduce the maximum reimbursable amounts of the contracts for 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 an additional 8.7% or whatever
proportion is necessary to ensure these expenditures do not exceed
the applicable appropriations. The bill would also require, effective
July 1, 2012, families to be disenrolled in a different specified
order that requires, among other things, families with the highest
income in relation to family size to be disenrolled first and
families that have the same income and have been enrolled in child
care services the longest to be disenrolled second.  
   (18) Existing law authorizes the City and County of San Francisco,
until July 1, 2013, and as a pilot project, to develop and implement
an individualized county child care subsidy plan, requires the city
and county, on or before June 30, 2013, to submit a final report to
the Legislature and other specified entities that summarizes the
impact of the plan, requires the city and county to phase out the
plan and implement the state's requirements for child care subsidies
as of July 1, 2015, and provides for the repeal of those provisions
on January 1, 2016.  
   This bill would instead authorize the City and County of San
Francisco to implement the individualized county child care subsidy
plan until July 1, 2014, require the city and county to phase out the
plan and implement the state's requirements for child care subsidies
as of July 1, 2016, require the city and county to submit the final
report on or before June 30, 2014, and would repeal those provisions
on January 1, 2017.  
   (19) 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 be
adjusted to reflect specified income eligibility limits.  
   This bill would require that the family fee schedule that was in
effect for the 2011-12 fiscal year remain in effect for the 2012-13
fiscal year.  
   (20) Existing law requires the Controller to draw warrants on the
State Treasury in each month of each year in specified amounts for
principal apportionments for purposes of funding school districts,
county superintendents of schools, and community college districts.
Existing law defers the drawing of those warrants, as specified.
 
   This bill would require the Superintendent to reduce the warrants
for the 2012-13 fiscal year by certain amounts as an offset for
school district and county office of education apportionments made
pursuant to specified provisions. The bill also would require the
Superintendent to delay the 2nd principal apportionment from July 2,
2013, to July 15, 2013, to account for all revenues remitted to
school districts and county offices of education pursuant to a
proposed constitutional provision relating to education funding. The
bill would require the Superintendent to reduce the June warrants for
the 2012-13 fiscal year for any amounts received pursuant to
specified provisions related to the dissolution of redevelopment
agencies. The bill, commencing with the 2012-13 fiscal year, would
defer additional specified amounts of the warrants for school
districts and county superintendents of schools from February, April,
and May 2013, to July 2013, and from March 2013 and an additional
amount from April 2013 to August 2013. The bill would make these
provisions inoperative on December 15, 2012, if the Schools and Local
Public Safety Protection Act of 2012 (Attorney General reference
number 12-0009) is not approved by the voters at the November 6,
2012, statewide general election, or if the provisions of that act
that modify personal income tax rates do not become operative due to
a conflict with another initiative measure that is approved at the
same election and receives a greater number of affirmative votes. If
either of these conditions occurs, the bill would require, as of
December 15, 2012, for the 2012-13 fiscal year only, the
Superintendent, instead of the actions described in the paragraph
above, to reduce the June warrants by certain amounts received by
school districts and county offices of education due to the
dissolution of redevelopment agencies and also would offset the
revenue limit funding received by school districts and county offices
of education by those amounts. If the provisions described in this
paragraph do not become operative, they would be repealed on January
1, 2013.  
   (21) Existing law requires the Controller to draw warrants on the
State Treasury in each month of each year in specified amounts for
purposes of funding school districts, county superintendents of
schools, and community college districts. Existing law defers the
drawing of those warrants, as specified. Existing law allows up to
$100,000,000 of the amount of the warrants for the principal
apportionments for June that are deferred until July to be drawn
instead in June for a charter school or school district if specified
criteria are met, including, in the case of a charter school, that
the chartering authority, in consultation with the county
superintendent of schools, certifies to the Superintendent of Public
Instruction and the Director of Finance that the charter school will
be unable to meet its financial obligations for June.  
   This bill would require the certification to be made by the
governing body of the charter school instead of the chartering
authority, and would require a charter school submitting that
certification to provide its chartering authority with a copy of the
certification, thereby imposing a state-mandated local program. 

   (22) Existing law establishes the California School Finance
Authority, and authorizes the authority to issue revenue bonds to
finance a single or series of projects or financing of working
capital for a single or several participating parties, defined as a
school district, charter school, county office of education, or
community college district that undertakes the financing or
refinancing of a project or of working capital, or a joint venture
school facilities construction project.  
   This bill would authorize the authority to issue revenue bonds to
refinance those projects and would revise the definition of
"participating party."  
   (23) Existing law limits the amount a participating party may
borrow from the California School Finance Authority to 85% of the
estimated amount of funds to be received by the participating party
which will be available in the fiscal year of the borrowing. 

   This bill would limit the amount a charter school may borrow to
85% of the estimated amount of funds to be received by the charter
school which will be available during the term of the loan. 

   (24) Existing law authorizes a public credit provider, as defined,
to require a participating party, with regard to providing credit
enhancement for bonds, notes, certificates of participation, or other
evidences of indebtedness of a participating party, to agree to
specified conditions, including allowing the Controller to allocate
specified school district, county office of education, or charter
school apportionments to public credit providers if the public credit
provider is required to make principal or interest payments, or
both, pursuant to the credit enhancement agreement. Existing law
imposes those same conditions on securing financing or refinancing
for projects or working capital from the California School Finance
Authority, in which case the Controller allocates apportionments when
a participating party will not make a payment to the authority at
the time the payment is required.  
   This bill would authorize the Controller, in the case of a credit
enhancement agreement between a charter school and a public credit
provider and in the case of financing secured from the authority, to
allocate apportionments designated for charter school categorical
block grants.  
   (25) Existing law authorizes the California School Finance
Authority to assign and distribute the state's 2010 federal tax
credit bond volume cap for qualified school construction bonds to or
for the benefit of charter schools, or to be further assigned and
distributed to one or more issuers in the state for the benefit of
charter schools, as determined by the authority. Existing law assigns
to the authority $68,406,000 of the state's 2010 federal tax credit
bond volume cap for qualified school construction bonds, to be issued
for the benefit of charter schools, or to be further assigned and
distributed to one or more issuers in the state for the benefit of
charter schools, as the authority determines.  
   This bill would delegate to the authority exclusive control over
the use and allocation of the volume cap for qualified school
construction bonds and would authorize the authority to use, by
resolution, the volume cap for obligations issued by the authority or
to allocate the volume cap to any party.  
   (25.1) Existing law authorizes the governing board of any school
district to sell or lease any real property, together with any
personal property located on the real property, belonging to the
school district which is not or will not be needed by the school
district for school classroom buildings at the time of delivery of
title or possession.  
   This bill would require the governing board of a school district
seeking to sell or lease real property designed to provide direct
instruction or instructional support it deems to be surplus property
to first provide a written offer for the sale or lease of the surplus
property of the school district to any charter school that has
submitted a written request to the school district to be notified of
surplus real property offered by the school district for sale or
lease. The bill would require any real property sold or leased to a
charter school to be used exclusively to provide direct instruction
or instructional support for no less than 5 years from the date the
real property is available to the charter school pursuant to a sale,
or, if the charter school leased the real property, until the real
property is returned to the possession of the school district. 

   The bill would require the price at which the real property is
sold to a charter school to not exceed the school district's cost of
acquisition, adjusted as specified. The bill would require the annual
rate of real property leased to a charter school not to exceed 5% of
the maximum sale price. The bill would require the school district
advisory committee to hold hearings to receive community input before
selling or leasing real property to a charter school. The bill would
require these provisions to only apply to real property identified
by a school district as surplus property after July 1, 2012. 

                      The bill would make this provision inoperative
on June 30, 2013, and would repeal it as of January 1, 2014. 

   (25.3) Existing law authorizes the governing board of a school
district to sell, for less than fair market value, any schoolsite
that is deemed to be surplus property of the school district to any
park district, city, or county in which the school district is wholly
or partially situated for specified uses if the governing board of
the school district adopts a resolution specifying that it will sell
or transfer the property for less than fair market value to those
entities.  
   This bill would instead authorize the governing board of a school
district to sell the surplus property to those entities only if a
charter school has not accepted an offer to purchase or lease the
property, as described in (25.1).  
   (25.5) Existing law authorizes a governing board of a school
district seeking to sell or lease any real property it deems to be
surplus property to first offer that property for sale or lease to
any contracting agency, as defined, that provides child care and
development services and pursuant to specified conditions.  

   This bill would instead authorize a governing board of a school
district seeking to sell or lease that real property to a contracting
agency, only if a charter school has not accepted an offer to
purchase or lease the property, as described in (25.1).  
   (25.7) Existing law requires the sale or lease with an option to
purchase of real property by a school district to be made in
accordance with specified priorities and procedures, including, among
other things, requiring the property to first be offered for park or
recreational purposes.  
   This bill would instead require the sale or lease with an option
to purchase of real property to first be offered for sale or lease to
any interested charter school for purposes of providing direct
instruction or instructional support, as described in (25.1). 

   (25.9) Existing law requires the governing board of a school
district, before selling or leasing any schoolsite containing
specified land, to first offer to sell or lease that portion of the
schoolsite containing the land to certain public agencies in
accordance with particular priorities, including, among other things,
offering to sell or lease the specified land to any city within
which the land may be situated.  
   This bill would instead require the governing board of a school
district to only sell or lease any schoolsite containing specified
land, as described above, if a charter school has not accepted an
offer to purchase or lease the schoolsite, as described in (25.1).
 
   (26) Existing law establishes the School Facilities Emergency
Repair Account in the State Treasury, and requires the State
Allocation Board to administer the account. Existing law establishes
the Proposition 98 Reversion Account in the General Fund, and
requires that the Legislature, from time to time, transfer into this
account moneys previously appropriated in satisfaction of the
constitutional minimum funding requirements that have not been
disbursed or otherwise encumbered for the purposes for which they
were appropriated. Existing law generally requires an amount,
equaling 50% of the unappropriated balance of the Proposition 98
Reversion Account or $100,000,000, whichever is greater, to be
transferred in the annual Budget Act from the Proposition 98
Reversion Account to the School Facilities Emergency Repair Account.
However, the amount to be transferred under this provision was set at
0 for the 2009-10, 2010-11, and 2011-12 fiscal years.  
   This bill would set the amount to be transferred under this
provision from the Proposition 98 Reversion Account to the School
Facilities Emergency Repair Account at 0 for the 2012-13 fiscal year.
 
   (27) The Teachers' Retirement Law, which is administered by the
Teachers' Retirement Board, prescribes a comprehensive system of
rights and benefits for its members, including disability benefits,
retirement benefits, and death benefits. That law specifies the days
or hours of creditable service that equal "full time" for the purpose
of calculating benefits under the Defined Benefit Program, with a
minimum standard applied, as specified.  
   This bill would provide that, if a school district, county office
of education, or charter school reduces the number of days of
instruction pursuant to a specified provision for the 2012-13 or
2013-14 fiscal years, the minimum standard for full time would be
reduced to the number of days of instruction provided by that school
district, county office of education, or charter school and the
number of hours of instruction equal to the number of days of
instruction times 6, as specified.  
   (28) 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 appropriations made to service public
debt approved by the voters of the state do not apply toward the
constitutional minimum funding obligation for school districts and
community college districts.  
   This bill would include funds appropriated for the Early Start
Program and any appropriation made to service general obligation bond
debt on behalf of school districts, county offices of education,
charter schools, and community college districts in funding that
applies toward the constitutional minimum funding obligation for
school districts and community college districts. This provision
would not become operative until December 15, 2012, and would only
become operative if the Schools and Local Public Safety Protection
Act of 2012 (Attorney General reference number 12-0009) is not
approved by the voters at the November 6, 2012, statewide general
election, or if the provisions of that act that modify personal
income tax rates do not become operative due to a conflict with
another initiative measure that is approved at the same election and
receives a greater number of affirmative votes. If this provision
does not become operative, it would be repealed on January 1, 2013.
 
   (29) Existing law requires, for the 1990-91 fiscal year and each
fiscal year thereafter, that moneys to be applied by the state for
the support of school districts, community college districts, and
direct elementary and secondary level instructional services provided
by the state be distributed in accordance with certain calculations
governing the proration of those moneys among the 3 segments of
public education. Existing law makes that provision inapplicable to
the fiscal years between 1992-93 and 2011-12, inclusive.  
   This bill would make that provision inapplicable to the 2012-13
fiscal year.  
   (30) Existing law requires the Director of Finance to make a
specified adjustment in 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 adjustment is related to
the implementation of provisions related to the implementation of
specified taxes imposed on gasoline and diesel.  
   This bill would delete the provision requiring the specified
adjustment.  
   (31) 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.
Existing law requires the Director of Finance to adjust that
percentage in a specified manner for purposes of the 2011-12 fiscal
year with respect to the shift to school districts and community
college districts of local property tax revenues in connection with
the dissolution of redevelopment agencies.  
   This bill would delete this provision.  
   (32) Under existing law, 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.  
   This bill would require, if the moneys applied by the state for
the support of school districts and community college districts for
the 2011-12 fiscal year exceed the minimum funding required by the
California Constitution, that the excess, up to a certain amount, be
deemed a payment of a specified fiscal settlement relating to the
minimum school funding obligation, as described, for the 2004-05 and
2005-06 fiscal years.  
   (33) Existing law creates the Charter School Security Fund in the
State Treasury, and requires moneys in the fund to be available for
deposit into the Charter School Revolving Loan Fund in case of
default on any loan made from the Charter School Revolving Loan Fund.
 
   This bill would require the State Department of Education to
monitor the adequacy of the amount of funds in the Charter School
Revolving Loan Fund and report annually, as specified, to the
Department of Finance and the Controller on the need, if any, to
transfer funds from the Charter School Security Fund to the Charter
School Revolving Loan Fund to replace funds lost due to loan defaults
and would provide for such a transfer to be made, as specified.
 
   (34) Existing law requires the county superintendent of schools to
determine a revenue limit for each school district in the county
pursuant to a specified formula based on the base revenue limit of
the school district for the prior year, adjusted for inflation, and
the average daily attendance for the entire school district. 

   This bill would require the calculations of the base revenue limit
for each school district to be reduced by amounts relating to the
Redevelopment Property Tax Trust Fund and a proposed constitutional
provision relating to education funding.  
   (35) 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 20.404%.
 
   This bill would provide that the deficit factor for each school
district for the 2012-13 fiscal year would be 22.272%.  
   (36) Existing law provides that, in lieu of any inflation or
cost-of-living adjustment, state funding for specified educational
programs is increased in accordance with a prescribed formula. 

   This bill would provide that child care and development programs
would not receive a cost-of-living adjustment in the 2012-13,
2013-14, and 2014-15 fiscal years.  
   (37) Existing law requires the board of supervisors of a county or
city and county to order, and the auditor and treasurer of the
county or city and county to make, a temporary transfer from funds of
the county or city and county not immediately needed to pay claims
against them to the school fund of a school district or county school
service fund of the amount needed whenever, prior to the receipt by
a school district or county school service fund of its state, county,
city and county, or district funds, the school district or county
school service fund of the county or city and county does not have
sufficient money to its credit to meet current expenses of
maintenance.  
   This bill would authorize a charter school, after all transfer
requests for school districts and county offices of education have
been satisfied and in circumstances identical to those of a school
district or county school service fund, to receive this type of
transfer of funds.  
   (38) Existing law authorizes a county superintendent of schools,
with the approval of the county board of education, to make a
temporary transfer from the county school service fund to a school
district that does not have sufficient money to its credit to meet
current operating expenses.  
   This bill would authorize a charter school in circumstances
identical to those of a school district to receive this type of
transfer of funds.  
   (39) Existing law authorizes a county superintendent of schools,
with the approval of the county board of education, to make an
apportionment to a school district from the county school service
fund conditional on the repayment of the apportionment and to
transfer that amount from the general fund of the school district to
the county school service fund during the next succeeding fiscal
year.  
   This bill would authorize a charter school in circumstances
identical to those of a school district to receive this type of
apportionment.  
   (40) 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 and allows a school district,
county office of education, and charter school to reduce the
equivalent of up to 5 days of instruction or the equivalent number of
instructional minutes per school year through the 2014-15 school
year.  
   If the Schools and Local Public Safety Protection Act of 2012
(Attorney General reference number 12-0009) is not approved by the
voters at the November 6, 2012, statewide general election, or if the
provisions of that act that modify personal income tax rates do not
become operative due to a conflict with another initiative measure
that is approved at the same election and receives a greater number
of affirmative votes, commencing December 15, 2012, this bill, for
the 2012-13 and 2013-14 school years, would allow a school district,
county office of education, or charter school to provide an
instructional year of not less than 160 days or the equivalent number
of instructional minutes. The bill would require implementation of
this reduction by a school district, county office of education, or
charter school that is subject to collective bargaining to be
achieved through the bargaining process. This authority would become
inoperative on July 1, 2015, and would be repealed on January 1,
2016. The bill, if that measure is not approved by the voters or does
not become operative due to the conflict discussed above, for the
2012-13 fiscal year, would reduce the amount of revenue limit funding
received by each school district, county office of education, and
charter school by a combined total of $2,740,377,000 and would
require the Superintendent to adjust the amount of categorical
funding allocated to basic aid school districts, as defined, in the
2012-13 fiscal year to achieve the reduction in the amount of revenue
limit funding.  
   (41) Existing law states that the law governing charter schools
does not prohibit a private person or organization from providing
funding or other assistance to the establishment or operation of a
charter school.  
   This bill, until July 1, 2017, would authorize a charter school to
contract with a county superintendent of schools or a county board
of education for purposes of borrowing moneys, as described above.
The bill would require the borrowed moneys to be expended by a
charter school solely for purposes of meeting the cash management
needs of the charter school due to the deferral of apportionment
payments and not for purposes of making capital acquisitions. 

   (42) Existing law requires the Superintendent to annually compute
a general-purpose entitlement, funded from a combination of state aid
and local funds, for each charter school, as specified.  
   This bill would require the computation of the general-purpose
entitlement to be reduced by any amount derived from a proposed
constitutional provision relating to education funding.  
   (43) The existing Quality Education Investment Act of 2006
effectuates the intent of the Legislature to implement the terms of
the proposed settlement agreement of a specified legal action, to
provide for the discharge of the minimum state educational funding
requirement, to improve the quality of academic instruction and the
level of pupil achievement in schools whose pupils have high levels
of poverty and complex educational needs, to develop exemplary school
district and school practices to create working conditions to
attract and retain well qualified teachers and administrators, and to
focus school resources solely on instructional improvement and pupil
services. The act requires, among other things, $450,000,000 per
fiscal year to be appropriated from the General Fund for specified
purposes for each of the 2008-09, and 2011-12 to 2014-15 fiscal
years, inclusive, and requires those funds to be allocated, as
specified, to Sections A and B of the State School Fund. The act
requires these appropriations to be deemed General Fund revenues
appropriated for school districts and community college districts for
the 2004-05 and 2005-06 fiscal years, as specified. A provision of
the act provides that, for the 2013-14 fiscal year, various amounts
allocated under the act are to be adjusted to reflect the total
fiscal settlement agreed to by the parties to the specified legal
action referenced above.  
   This bill would instead appropriate for these purposes from the
General Fund $361,000,000 for the 2012-13 fiscal year, and
$218,322,000 for the 2013-14 fiscal year, for allocation by the
Chancellor of the California Community Colleges and the
Superintendent, as specified, to be deemed General Fund revenues
appropriated for school districts and community college districts.
 
   This bill would require any funds appropriated as described in
(32) to be deemed General Fund revenues appropriated for school
districts and community college districts for the 2004-05 and 2005-06
fiscal years, as specified. The bill would delay the adjustment
related to the total fiscal settlement in the specified legal action
until the 2014-15 fiscal year.  
   (44) Existing law provides that an essential component of
transition services for individuals with exceptional needs is the
project workability program that provides instruction and experiences
that reinforce core curriculum concepts and skills leading to
gainful employment. Existing law requires the Superintendent to
develop criteria for awarding grants, funding, and evaluating
workability projects and requires workability project applications to
include, but not be limited to, specified elements.  
   This bill would define eligible applicants for project workability
to include local educational agencies, including school districts,
county offices of education, state special schools, and charter
schools, and nonpublic, nonsectarian schools, as defined.  
   (45) 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 (commission), and establishes
eligibility requirements for awards under these programs for
participating students attending qualifying institutions.  
   Existing law requires the maximum award amounts for students at
independent institutions to be identified in the annual Budget Act.
Existing law states the policy of the Cal Grant Program that the
maximum Cal Grant A and B awards for students attending nonpublic
institutions be equal to a specified amount.  
    Commencing with the 2013-14 award year, this bill would set
maximum tuition award amounts for Cal Grant A and B awards for new
recipients attending private for-profit and nonprofit postsecondary
educational institutions, and would require the renewal award amount
for a student whose initial award is subject to one of those maximum
award amounts to be calculated pursuant to specified law.  
   (46) Existing law requires the Student Aid 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, for purposes of
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 and
renewal Cal Grant awards at the institution. 
   This bill would decrease that 3-year cohort default rate threshold
to 15.5%. The bill would, for purposes of the 2012-13 academic year,
and every academic year thereafter, make an otherwise qualifying
institution ineligible for an initial or renewal Cal Grant award at
the institution if the institution has a graduation rate of 30% or
less for students taking 150% or less of the expected time to
complete degree requirements, as specified, with certain exceptions.
The bill also would require the commission to certify by October 1 of
each year the institution's latest graduation rate as reported by
the United States Department of Education. The bill would require the
commission to provide specified notifications and information to
initial and renewal Cal Grant recipients seeking to attend, or
attending, an institution that is ineligible for initial and renewal
Cal Grant awards under the provisions of this bill.  
   (47) The Cal Grant Program prohibits an applicant from receiving
one or a combination of Cal Grant awards in excess of a specified
amount and from obtaining a baccalaureate degree before receiving a
Cal Grant award, except in the case of Cal Grant T awards.  

   This bill would remove that exception for Cal Grant T awards and
would allow a recipient who initially qualified for both a Cal Grant
A award and a Cal Grant B award, and received a Cal Grant B award, to
be awarded a renewal Cal Grant A award if that recipient
subsequently became ineligible for a renewal Cal Grant B award and
meets the applicable Cal Grant A financial need and income and asset
criteria.  
   (48) The Cal Grant Program entitles a student who transfers from a
California community college to a qualifying institution that offers
a baccalaureate degree to receive a Cal Grant A or B award if the
student meets specified criteria.  
   This bill would additionally require that student to have attended
a California community college in the academic year immediately
preceding the academic year for which the award will be used, except
as provided.  
   (49) Provisions of law that became inoperative on July 1, 2003,
and that were repealed on January 1, 2004, established the Governor's
Scholarship Programs under the administration of the Scholarshare
Investment Board. Existing law expresses the intent of the
Legislature to provide explicit authority to the board to continue to
administer accounts for, and to make awards to, persons who
qualified for awards under the provisions of the Governor's
Scholarship Programs as those provisions existed on January 1, 2003,
and to provide for the management and disbursement of funds
previously set aside for the Governor's Scholarship Programs.
Existing law provides that the amount remaining in the Golden State
Scholarshare Trust following a specified transfer is available as a
reserve for funding claims for awards.  
           This bill would additionally state the intent of the
Legislature to provide a guarantee should additional funds be needed
to cover awards authorized and made pursuant to the program. The bill
would require the board to negotiate with the current manager of the
program to execute an amended or new management and funding
agreement, which would be required to include specified terms. The
bill would further state the intent of the Legislature to appropriate
the necessary funds to the Golden State Scholarshare Trust for the
purpose of funding individual beneficiary accounts if funds retained
in the trust after January 1, 2013, are insufficient to cover the
remaining withdrawal requests. The bill would require the board to
notify the Department of Finance and the Legislature no later than 10
working days after determining that this shortfall in available
funding will occur.  
   (50) Existing law requires the governing board of each community
college district to charge each resident a fee of $46 per unit per
semester, and to charge a tuition fee to nonresident students, with
certain exceptions, including, but not limited to, exceptions for
nonresident students attending a community college pursuant to
specified reciprocity agreements with California governing student
attendance and fees. Existing law requires those nonresident students
to pay a fee of $42 per course unit.  
   This bill instead would require those students to pay a per unit
fee that is 2 times the amount of the resident fee until June 30,
2013, and 3 times the amount of the resident fee commencing on July
1, 2013, thereby imposing a state-mandated local program.  
   (51) Existing law requires the Board of Governors of the
California Community Colleges to adopt regulations for the payment of
apportionments to community college districts. Existing law,
notwithstanding the board of governors' authority in this respect,
makes various adjustments to the payment of these apportionments by
deferring certain amounts of apportionments for January to June,
inclusive, to July and October, as specified.  
   This bill would revise these provisions. Specifically, commencing
on December 15, 2012, if the Schools and Local Public Safety
Protection Act of 2012 (Attorney General reference number 12-0009) is
approved by the voters at the November 6, 2012, statewide general
election and all of the provisions of that measure that modify
personal income tax rates become operative, this bill would require
the deferral of certain amounts of apportionments for February to
June, inclusive, to July, and would appropriate $801,094,000 for
expenditure during the 2013-14 fiscal year, to be expended in
accordance with certain provisions of the Budget Act of 2012. 

   If the Schools and Local Public Safety Protection Act of 2012
(Attorney General reference number 12-0009) is not approved by the
voters at that election, or if the provisions of that act that modify
personal income tax rates do not become operative due to a conflict
with another initiative measure that is approved at the same election
and receives a greater number of affirmative votes, commencing on
December 15, 2012, the bill would require the deferral of a greater
amount of apportionments for February to June, inclusive, to July,
and would appropriate $961,000,000 for expenditure during the 2013-14
fiscal year, to be expended in accordance with certain provisions of
the Budget Act of 2012.  
   (52) Under existing law, the California Constitution requires the
total annual appropriations subject to limitation of the state and
each local government to not exceed the appropriations limit of the
entity of government for the prior year adjusted for the change in
the cost of living and the change in population, except as otherwise
provided. Existing law, for purposes of effectively and efficiently
implementing these government spending limitation provisions of the
California Constitution, requires for the 2008-09 to 2012-13 fiscal
years, inclusive, the average daily attendance of public school
districts, including county superintendents of schools, serving
kindergarten and grades 1 to 12, inclusive, to include the same
amount of average daily attendance for classes for supplemental
instruction and regional occupational centers and programs that was
used in the 2007-08 fiscal year.  
   This bill would require the same amount of average daily
attendance for classes for supplemental instruction and regional
occupational centers and programs that was used in the 2007-08 fiscal
year to also be used in the 2013-14 and 2014-15 fiscal years. 

   (53) Under the California Constitution, whenever the Legislature
or a state agency mandates a new program or higher level of service
on any local government, including a school district and a community
college district, the state is required to provide a subvention of
funds to reimburse the local government, with specified exceptions.
 
   This bill, commencing with the 2012-13 fiscal year, would require
certain funds appropriated in the annual Budget Act for reimbursement
of the cost of a new program or increased level of service of an
existing program mandated by statute or executive order to be
available as a block grant to school districts, charter schools,
county offices of education, and community college districts to
support specified state-mandated local programs. The bill would
provide that a school district, charter school, county office of
education, or community college district that submits a letter of
intent to the Superintendent of Public Instruction and receives block
grant funding is not eligible to submit a claim for reimbursement
for specified mandated programs for the fiscal year for which the
block grant funding is received. The bill would make block grant
funds subject to required audits.  
   The bill would require the Superintendent of Public Instruction to
compile a list of all school districts, charter schools, and county
offices of education that received block grant funding in the prior
fiscal year and the Chancellor of the California Community Colleges
to compile a list of all community college districts that received
block grant funding in the prior fiscal year and the total amount
each school district, charter school, county office of education, and
community college district received. The Superintendent and the
chancellor would be required to provide this information to the
appropriate fiscal and policy committees of the Legislature, the
Controller, the Department of Finance, and the Legislative Analyst's
Office on or before September 9 of each year.  
   (54) Existing law authorizes a local agency, defined to include a
school district and county board of education, to borrow money and
the indebtedness to be represented by a note or notes issued to the
lender. Existing law authorizes the local agency to use the money
borrowed for any purpose for which the local agency is authorized to
use and expend moneys, including, but not limited to, current
expenses, capital expenditures, investment and reinvestment, and the
discharge of an obligation or indebtedness of the local agency.
Existing law requires the notes of certain school districts and
county boards of education to be issued by the appropriate county
board of supervisors. Existing law requires a note so issued to be a
general obligation of the local agency, and, to the extent not paid
from the taxes, income, revenue, cash receipts, or other moneys of
the local agency pledged for the payment of the note and interest, to
be paid from any other moneys of the local agency lawfully available
for that purpose.  
   This bill would authorize a charter school to borrow money
pursuant to these provisions.  
   (55) Existing law authorizes a school district to levy a fee,
charge, dedication, or other requirement against any construction
within the boundaries of the school district for the purpose of
funding the construction or reconstruction of school facilities.
Existing law authorizes a school district to increase the levy, as
prescribed, if state funds for new school facility construction are
not available, as specified.  
   This bill would suspend the operation of the provision authorizing
the increased levy from the day this bill becomes operative until
January 1, 2015, or until an earlier date upon the occurrence of a
specified circumstance, including passage of a statewide school
facilities bond.  
   (56) The Budget Act of 2011 made numerous appropriations for the
support of public education in this state.  
   This bill would reduce by various amounts appropriations made for
purposes of supplemental school counseling, special education,
partnership academies, instructional support to assist certain pupils
to pass the high school exit examination, English language tutoring
to limited-English-proficient pupils, incentive grants to support the
hiring of more physical education teachers, the Arts and Music Block
Grant, certificated staff mentoring, and community colleges, thereby
making an appropriation. The bill also would make available for
reappropriation the unencumbered balances of specified appropriations
made in prior fiscal years for various educational purposes and
would reappropriate $220,137,000 to the State Department of Education
for apportionment for special education programs.  
   (57) 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 Education,
notwithstanding the procedures required by the Administrative
Procedure Act, to implement the provision of the bill related to the
reduction of the maximum reimbursable amounts for specified contracts
and the order of disenrollment from subsidized child care services,
as described in (17), through management bulletins or other similar
instructions.  
   (58) The bill would provide that the implementation of the
provision of the bill related to the reduction of the maximum
reimbursable amounts for specified contracts and the order of
disenrollment from subsidized child care services, as described in
(17), is not subject to the appeal and resolution procedures for
agencies that contract with the State Department of Education for
these purposes.  
   (59) This bill would set the cost-of-living adjustment for
specified items in the Budget Act of 2012 at 0% for the 2012-13
fiscal year, notwithstanding the cost-of-living adjustment specified
in existing statutes.  
   (60) Under existing law, the amount of revenue that a school
district may collect annually for general purposes, called a revenue
limit, is calculated in accordance with various statutory formulas. A
basic aid school district is a school district where property tax
revenues exceed the revenue limit and the school district
consequently does not receive a state apportionment.  
   This bill would express legislative intent that basic aid school
districts assume categorical funding reductions proportionate to the
revenue limit reductions implemented for nonbasic aid school
districts in the 2008-09, 2009-10, 2010-11, and 2011-12 fiscal years.
The bill would include calculations to implement these funding
reductions.  
   (61) This bill would require that $12,133,000 of the funds
appropriated in the Budget Act of 2011 for purposes of special
education programs, be provided to fully fund the 2008-09 maintenance
of effort required for special education programs.  
   (62) Existing law appropriates funding for class size reduction in
kindergarten and grades 1 to 3, inclusive, to be expended consistent
with the specified requirements.  
   This bill would require the Superintendent of Public Instruction
to certify to the Controller the amounts needed for the 2012-13
fiscal year to fund the Class Size Reduction Program and set forth a
schedule for the transfer of that funding. The bill would require the
Controller to transfer that funding from the General Fund to the
State School Fund.  
   The bill would require the Superintendent, before making each
certification, to notify the Department of Finance, the Legislative
Analyst, and the appropriate policy and fiscal committees of the
Legislature regarding the amounts the Superintendent intends to
certify and would require the notification to include the data used
in determining the amounts to be certified.  
   (63) This bill would appropriate $905,700,000 from the General
Fund to the State Department of Education for 10 specified programs
according to a specified schedule, and would require the department
to encumber these funds by July 31, 2013. The bill would provide
that, for purposes of satisfying the minimum annual funding
obligation for school districts required by the California
Constitution, the appropriated funds are General Fund revenues
appropriated for school districts for the 2012-13 fiscal year. 

   (64) This bill would require funds appropriated pursuant to
specified items in the Budget Act of 2012 to be encumbered by July
31, 2013.  
   (65) This bill would appropriate $516,881,000 from the General
Fund to the Board of Governors of the California Community Colleges
in augmentation of specified funds appropriated in the Budget Act of
2012 for the purpose of increasing apportionment funding to community
college districts. This provision would become operative on December
15, 2012, only if the Schools and Local Public Safety Protection Act
of 2012 (Attorney General reference number 12-0009) is not approved
by the voters at the November 6, 2012, statewide general election, or
if the provisions of that act that modify personal income tax rates
do not become operative for a specified reason.  
   (66) Existing law requires the Board of Governors of the
California Community Colleges, in calculating each community college
district's revenue level for each fiscal year, to subtract, among
other things, the local property tax revenue specified by law for
general operating support, exclusive of bond interest and redemption,
from the total revenues owed.  
   This bill would appropriate an unspecified amount, on or before
June 30, 2012, to be determined by the Director of Finance, up to
$116,133,000, from the General Fund to the Board of Governors of the
California Community Colleges in augmentation of an item of the
Budget Act of 2011 related to community colleges if revenues
distributed to community colleges pursuant to specified provisions
related to the dissolution of redevelopment agencies are less than
estimated in the Budget Act of 2011. The bill would require the
Director of Finance, in making this determination, to consider any
other local property tax revenues and student fee revenues collected
in excess of the estimated amount of those revenues as reflected in
the Budget Act of 2012. The bill would provide that, for purposes of
satisfying the minimum annual funding obligation for community
college districts required by the California Constitution, the
appropriated funds are General Fund revenues appropriated for
community college districts in the 2011-12 fiscal year. The bill
would make a similar appropriation of an unspecified amount, without
the $116,133,000 limit, on or before June 30, 2013, in augmentation
of an item of the Budget Act of 2012 related to community colleges.
 
   (67) This bill would also appropriate an unspecified amount, up to
$19,347,000, on or before June 30, 2012, to the Superintendent of
Public Instruction, in augmentation of an item of the Budget Act of
2011 related to special education programs of local educational
agencies. The bill would make a similar appropriation of an
unspecified amount, without the $19,347,000 limit, to the extent of
excess revenues, as specified, on or before June 30, 2013, in
augmentation of an item of the Budget Act of 2012 related to special
education programs of local educational agencies.  
   (68) This bill would require the Chancellor of the California
Community Colleges, as approved by the Department of Finance and on
or before November 30, 2012, to reduce community college district
based workload measures to match available general-purpose
apportionment funding if the Schools and Local Public Safety
Protection Act of 2012 (Attorney General reference number 12-0009) is
not approved by the voters at the November 6, 2012, statewide
general election, or if the provisions of that act that modify
personal income tax rates do not become operative due to a conflict
with another initiative measure that is approved at the same election
and receives a greater number of affirmative votes. The bill would
state the intent of the Legislature that any necessary workload
reductions be made in courses and programs outside of those needed by
students to achieve their basic skills, workforce training, or
transfer goals. The bill would require the chancellor, on or before
September 15, 2013, to provide the fiscal committees of both houses
of the Legislature and the Director of Finance with a report on the
implementation of the workload reduction.  
   (69) This bill would require that, if the Schools and Local Public
Safety Protection Act of 2012 is approved by the voters at the
November 6, 2012, statewide general election, and all of the
provisions of that act that modify personal income tax rates become
operative, $50,000,000 would be transferred between specified budget
items for the purpose of providing growth funding to community
college districts, as specified.  
   (70) This bill would direct the Director of Finance to reduce a
specified appropriation made in the Budget Act of 2012 to the State
Department of Developmental Services by $197,152,000 and would
appropriate that amount to the State Department of Developmental
Services for purposes of the Early Start Program. This provision
would become operative on December 15, 2012, only if the Schools and
Local Public Safety Protection Act of 2012 (Attorney General
reference number 12-0009) is not approved by the voters at the
November 6, 2012, statewide general election, or if the provisions of
that act that modify personal income tax rates do not become
operative due to a conflict with another initiative measure that is
approved at the same election and receives a greater number of
affirmative votes.  
   (71) This bill would make conforming changes, correct
cross-references, and make other nonsubstantive changes.  
   (72) 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.  
   (73) 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.  
   (74) This bill would declare that it is to take effect immediately
as a bill providing for appropriations related to the Budget Bill.
 
   This bill would express the intent of the Legislature to enact
statutory changes relating to the Budget Act of 2012. 
   Vote: majority. Appropriation:  no   yes
 . Fiscal committee:  no   yes  .
State-mandated local program:  no   yes  .


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

   SECTION 1.    Section 1042 of the  
Education Code   is amended to read: 
   1042.  County boards of education  may:   may
do all of the following: 
   (a) Adopt rules and regulations governing the administration of
the office of the county superintendent of schools.
   (b) Review the county superintendent of schools annual itemized
estimate of anticipated revenue and expenditures before the annual
itemized estimate is filed with the auditor as required by Section
29040 of the Government Code, and make  any 
revisions, reductions, or additions  therein  
in the annual itemized estimate  it deems advisable and proper.
 No   An annual  itemized estimate shall
 not  be filed by the county superintendent of schools or be
approved by the board of supervisors until it has first been so
reviewed and approved by the county board of education.
   (c) In the name by which the  county  board of education
is designated, acquire, lease, lease-purchase, hold  ,  and
convey real property for the purpose of housing the offices and the
services of the county superintendent of schools, except that this
subdivision shall only apply to the county boards of education to
which all or a portion of the duties and functions of the county
board of supervisors specified in subdivision (b) of Section 1080
have been transferred, with the exception of the recreational duties
and recreational functions specified in subdivisions (c) and 
(e)   (d)  of Section 1080.
   (d) Contract with and employ any persons for the furnishing to the
 county  board of  education of  special services
and advice in financial, economic, accounting, engineering, legal, or
administrative  matters,   matters  if
these persons are specially trained and experienced and competent to
perform the special services required. The  county  board
 of education  may pay  to these persons  from any
available funds  such compensation to these persons as
  the compensation that  it deems proper for the
services rendered.
   (e)  (1)    Notwithstanding Section 25304 of the
Government Code, fill by appointment any vacancy that occurs during
the term of office of the county superintendent of schools. In
 any   a  county in which the  county
 superintendent  of   schools  is elected, the
appointee shall hold office until the office is filled by election
at the next gubernatorial election. 
   The 
    (2)     The  authority described in
this subdivision shall be vested in a county board of education only
upon its adoption by the  county  board  of education
 at a public meeting held pursuant to Article 1 (commencing with
Section 1000)  of Chapter 1 of Part 2  . 
   (f) (1) Subject to the concurrence of the county superintendent of
schools pursuant to paragraph (3), use and expend moneys from the
proceeds of notes issued pursuant to the authority granted in Article
7.6 (commencing with Section 53850) of Chapter 4 of Part 1 of
Division 2 of Title 5 of the Government Code, to make loans to a
charter school for which the county board of education or the county
superintendent of schools has a supervisory responsibility or,
regardless of whether the charter school is within or outside of the
county, with which the county board of education or the county
superintendent of schools has a contractual relationship pursuant to
subdivision (b) of Section 47603. Moneys borrowed by the county board
of education for the purpose of making a loan to a charter school
shall be payable solely from the funds of the charter school and
shall not constitute a debt or liability of the county board of
education or the county superintendent of schools, notwithstanding
the provisions of Section 53857 of the Government Code, or any other
law.  
   (2) The State of California is not liable for any debt or
liability within the meaning of Section 1 of Article XVI of the
California Constitution, or otherwise, for loans made pursuant to
this subdivision.  
   (3) Before the county board of education makes a loan pursuant to
this subdivision, the county superintendent of schools shall do all
of the following:  
   (A) Advise the chartering authority of the charter school and the
county office of education in which the charter school is primarily
located that the charter school has requested the loan.  
   (B) Allow the chartering authority and county office of education
to provide input regarding the advisability of making the loan. 

   (C) Solicit a recommendation from a recognized authority on school
district financial management who is not an employee of the county
office of education about the advisability of making the loan. The
recommendation shall consider the financial condition of the charter
school, the level of risk assumed by the county office of education,
and the potential impact on the county office of education if the
charter school is unable to repay the loan.  
   (D) Disclose the information received pursuant to subparagraphs
(B) and (C) at a regularly scheduled meeting of the county board of
education.  
   (E) Determine whether to concur with the intent of the county
board of education to make the loan.  
   (4) In any fiscal year, a charter school shall not receive more
than one loan that is made pursuant to this subdivision.  
   (5) (A) As a condition of making a loan to a charter school
pursuant to this subdivision, a county board of education shall
report to the department by September 15 of each year the following
information on loans made to charter schools within the prior fiscal
year:  
   (i) The name and address of each charter school that received a
loan, including the name of the county in which the charter school is
located.  
   (ii) The amount of the loan, including the interest rate, that
each charter school received.  
   (iii) The total amount of money loaned to charter schools by the
county board of education. 
   (iv) The average duration of loans made to charter schools. 

   (v) The current status of each loan, including whether or not the
charter school has repaid the loan.  
   (B) No later than December 1 of each year, the department shall
compile the information reported by the county boards of education
pursuant to subparagraph (A) into one report and submit this
information to the appropriate policy and fiscal committees of the
Legislature, the Department of Finance, and the Legislative Analyst's
Office.  
   (g) This section shall become inoperative on July 1, 2017, and, as
of January 1, 2018, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2018, deletes or
extends the dates on which it becomes inoperative and is repealed.

   SEC. 2.    Section 1042 is added to the  
Education Code   , to read:  
   1042.  County boards of education may do all of the following:
   (a) Adopt rules and regulations governing the administration of
the office of the county superintendent of schools.
   (b) Review the county superintendent of schools annual itemized
estimate of anticipated revenue and expenditures before the annual
itemized estimate is filed with the auditor as required by Section
29040 of the Government Code, and make revisions, reductions, or
additions in the annual itemized estimate it deems advisable and
proper. An annual itemized estimate shall not be filed by the county
superintendent of schools or be approved by the board of supervisors
until it has first been so reviewed and approved by the county board
of education.
   (c) In the name by which the board of education is designated,
acquire, lease, lease-purchase, hold, and convey real property for
the purpose of housing the offices and the services of the county
superintendent of schools, except that this subdivision shall only
apply to the county boards of education to which all or a portion of
the duties and functions of the county board of supervisors specified
in subdivision (b) of Section 1080 have been transferred, with the
exception of the recreational duties and recreational functions
specified in subdivisions (c) and (d) of Section 1080.
   (d) Contract with and employ any persons for the furnishing to the
county board of education of special services and advice in
financial, economic, accounting, engineering, legal, or
administrative matters if these persons are specially trained and
experienced and competent to perform the special services required.
The county board of education may pay from any available funds the
compensation that it deems proper for the services rendered.
   (e) (1) Notwithstanding Section 25304 of the Government Code, fill
by appointment any vacancy that occurs during the term of office of
the county superintendent of schools. In a county in which the
superintendent is elected, the appointee shall hold office until the
office is filled by election at the next gubernatorial election.
   (2) The authority described in this subdivision shall be vested in
a county board of education only upon its adoption by the board at a
public meeting held pursuant to Article 1 (commencing with Section
1000).
   (f) This section shall become operative on July 1, 2017. 
   SEC. 3.    Section 2558 of the   Education
Code   is amended to read: 
   2558.  Notwithstanding any other law, for the 1979-80 fiscal year
and each fiscal year thereafter, the Superintendent  of
Public Instruction  shall apportion state aid to county
superintendents of schools pursuant to this section.
   (a) The Superintendent  of Public Instruction 
shall total the amounts computed for the fiscal year pursuant to
Sections 2550, 2551.3, 2554, 2555, and 2557 and Section 2551, as that
section read on January 1, 1999. For the 1979-80 fiscal year and for
purposes of calculating the 1979-80 fiscal year base amounts in
succeeding fiscal years, the amounts in Sections 2550, 2551, 2552,
2554, 2555, and 2557, as they read in the 1979-80 fiscal year, shall
be multiplied by a factor of 0.994. For the 1981-82 fiscal year and
for purposes of calculating the 1981-82 fiscal year base amounts in
succeeding fiscal years, the amount in this subdivision shall be
multiplied by a factor of 0.97.
   (b) For the 1995-96 fiscal year and each fiscal year thereafter,
the county superintendent of schools shall adjust the total revenue
limit computed pursuant to this section by the amount of increased or
decreased employer contributions to the Public Employees' Retirement
System resulting from the enactment of Chapter 330 of the Statutes
of 1982, adjusted for any changes in those contributions resulting
from subsequent changes in employer contribution rates, excluding
rate changes due to the direct transfer of the state-mandated portion
of the employer contributions to the Public Employees' Retirement
System through the current fiscal year. The adjustment shall be
calculated for each county superintendent of schools as follows:
   (1) Determine the amount of employer contributions that would have
been made in the current fiscal year if the applicable Public
Employees' Retirement System employee contribution rate in effect
immediately  prior to   before  the
enactment of Chapter 330 of the Statutes of 1982 were in effect
during the current fiscal year.
   (2) Determine the actual amount of employer contributions made to
the Public Employees' Retirement System in the current fiscal year.
   (3) If the amount determined in paragraph (1) is greater than the
amount determined in paragraph (2), the total revenue limit computed
pursuant to this part for that county superintendent of schools shall
be decreased by the amount of the difference between those
paragraphs; or if the amount determined in paragraph (1) is less than
the amount determined in paragraph (2), the total revenue limit for
that county superintendent of schools shall be increased by the
amount of the difference between those paragraphs.
   (4) For  the  purposes of this subdivision,
employer contributions to the Public Employees' Retirement System for
 any   either  of the following positions
shall be excluded from the calculation specified above:
   (A) Positions or portions of positions supported by federal funds
that are subject to supplanting restrictions. 
   (B) Positions supported by funds received pursuant to paragraph
(1) of subdivision (a) of Section 54203.  
   (C) 
    (B)  Positions supported, to the extent of employers'
contributions not exceeding twenty-five thousand dollars ($25,000) by
any single educational agency, from a non-General Fund revenue
source determined to be properly excludable from this subdivision by
the Superintendent  of Public Instruction  with the
approval of the Director of Finance. Commencing in the 2002-03 fiscal
year, only positions supported from a non-General Fund revenue
source determined to be properly excludable as identified for a
particular local  education   educational 
agency or pursuant to a blanket waiver by the Superintendent 
of Public Instruction  and the Director of Finance,
 prior to   before  the 2002-03 fiscal
year, may be excluded pursuant to this paragraph.
   (5) For accounting purposes, any reduction to county office of
education revenue limits made by this subdivision may be reflected as
an expenditure from appropriate sources of revenue as directed by
the Superintendent  of Public Instruction  .
   (6) The amount of the increase or decrease to the revenue limits
of county superintendents of schools made by this subdivision for the
1995-96 to 2001-02 fiscal years, inclusive, may not be adjusted by
the deficit factor applied to the revenue limit of each county
superintendent of schools pursuant to Section 2558.45.
   (7) For the 2003-04 fiscal year and any fiscal year thereafter,
the revenue limit reduction specified in Section 2558.46 may not be
applied to the amount of the increase or decrease to the revenue
limits of each county superintendent of schools computed pursuant to
paragraph (3).
   (c) The Superintendent of Public Instruction 
shall also subtract from the amount determined in subdivision (a) the
sum of  all of the following  :  (1) local

    (1)    Local  property tax revenues
received pursuant to Section 2573 in the then current fiscal year,
and tax revenues received pursuant to Section 2556 in the then
current fiscal year  , (2) state   . 
    (2)     State  and federal categorical
aid for the fiscal year  , (3) district   .

    (3)     District  contributions
pursuant to Section 52321 for the fiscal year, and other applicable
local contributions and revenues  , (4) any   .

    (4)     Any  amounts that the county
superintendent of schools was required to maintain as restricted and
not available for expenditure in the 1978-79 fiscal year as specified
in the second paragraph of subdivision (c) of Section 6 of Chapter
292 of the Statutes of 1978, as amended by Chapter 51 of the Statutes
of 1979  , and (5) the   . 
    (5)     The  amount received pursuant
to subparagraph (C) of paragraph (3) of subdivision (a) of Section
33607.5 of the Health and Safety Code that is considered property
taxes pursuant to that section. 
   (6) The amount, if any, received pursuant to Sections 34177,
34179.5, 34179.6, and 34188 of the Health and Safety Code.  

   (7) The amount, if any, received pursuant to subparagraph (B) of
paragraph (3) of subdivision (e) of Section 36 of Article XIII of the
California Constitution. 
   (d) The remainder computed in subdivision (c) shall be distributed
in the same manner as state aid to school districts from funds
appropriated to Section A of the State School Fund.
   (e) If the remainder determined pursuant to subdivision (c) is a
negative amount, no state aid shall be distributed to that county
superintendent of schools pursuant to subdivision (d), and an amount
of funds of that county superintendent  of schools  equal to
that negative amount shall be deemed restricted and not available
for expenditure during the current fiscal year. In the next fiscal
year, that amount shall be considered local property tax revenue for
purposes of the operation of paragraph (1) of subdivision (c).
   (f) The calculations set forth in paragraphs (1) to (3),
inclusive, of subdivision (b) exclude employer contributions for
employees of charter schools funded pursuant to Article 2 (commencing
with Section 47633) of Chapter 6 of Part 26.8  of Division 4 of
Title 2  .
   SEC. 4.    Section   2558.46 of the 
 Education Code   , as amended by Section 1 of Chapter 2
of the Statutes of 2012, 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 20.691 percent deficit factor. 
   (9) For the 2012-13 fiscal year, the revenue limit for each county
superintendent of schools determined pursuant to this article shall
be reduced by a 22.549 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). 
   (f) In computing the revenue limit for each county superintendent
of schools for the 2013-14 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 2012-13
fiscal year without being reduced by the deficit factors specified in
subdivision (a). 
   SEC. 5.    Section 2571 of the   Education
Code   is amended to read: 
   2571.  The Superintendent  of Public Instruction 
shall make the following computations for each county superintendent
of schools:
   (a) Add the property tax revenues received for the 1977-78 fiscal
year pursuant to subdivisions (b), (c)  ,  and (d) of
Section 2500, Section 2501 for purposes of Section 1705, Section 2502
for purposes of Section 56811, Section 2505 for special education
tuition charges, Section 42909 for purposes of Section 56604, and
Section 56364 or Section 56364.2, as applicable. For purposes of this
subdivision, section references are to sections effective during the
1977-78 fiscal year.
   (b) Divide the sum computed pursuant to subdivision (a) by the
total amount of property tax revenues received by the county
superintendent of schools for the 1977-78 fiscal year.
   (c) Multiply the quotient computed pursuant to subdivision (b) by
the total amount of property tax revenues received by the county
superintendent of schools for the then current fiscal year.
   (d) Subtract the product computed pursuant to subdivision (c) from
the total amount of property tax revenues received by the county
superintendent of schools for the then current fiscal year.
   (e) For purposes of subdivisions (c) and (d), "total property tax
revenues" include taxes on the secured roll, taxes on the unsecured
roll, prior year taxes  and   , 
subventions of property taxes  , and, beginning in the 2012-13
fiscal year, revenues received pursuant to Sections 34177, 34179.5,
34179.6, and 34188 of the Health and Safety Code  .
   SEC. 6.    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 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
  a  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  of age
 , 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 intellectual disabilities, 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
intellectual disabilities. "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
  before  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   the
date specified  of the fiscal year in which they are enrolled in
a California state preschool program  .   , as
follows:  
   (1) November 1 of the 2012-13 fiscal year.  
   (2) October 1 of the 2013-14 fiscal year.  
   (3) September 1 of the 2014-15 fiscal year and each fiscal year
thereafter. 
   (aj) "Four-year-old children" means children who will have their
fourth birthday on or before  December 2   the
date specified  of the fiscal year in which they are enrolled in
a California state preschool program  .   , as
follows:  
   (1) November 1 of the 2012-13 fiscal year.  
   (2) October 1 of the 2013-14 fiscal year.  
   (3) September 1 of the 2014-15 fiscal year and each fiscal year
thereafter. 
   (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. 7.    Section 8235 of the   Education
Code   is amended to read: 
   8235.  (a) The Superintendent shall administer all California
state preschool programs. Those programs shall include, but not be
limited to, part-day  and full-day  age and
developmentally appropriate programs  designed to facilitate the
transition to kindergarten  for three- and  four-year
old   four-year-old  children in educational
development, health services, social services, nutritional services,
parent education and parent participation, evaluation, and staff
development. Preschool programs for which federal reimbursement is
not available shall be funded as prescribed by the Legislature in the
Budget Act, and unless otherwise specified by the Legislature, shall
not  utilize   use  federal funds made
available through Title XX of the  federal  Social Security
Act (42 U.S.C. Sec. 1397).
   (b) Three- and four-year-old children are eligible for the
part-day California state preschool program if the family meets at
least one of the criteria specified in paragraph (1) of subdivision
(a) of Section 8263.
   (c) Notwithstanding any other  provision of  law,
a part-day California state preschool program may provide services
to children in families whose income is no more than 15 percent above
the income eligibility threshold, as described in Sections 8263 and
8263.1, after all eligible three- and four-year-old children have
been enrolled. No more than 10 percent of children enrolled,
calculated throughout the participating program's entire contract,
may be filled by children in families above the income eligibility
threshold.
   (d) A part-day California state preschool program shall operate
for a minimum of (1) three hours per day, excluding time for
home-to-school transportation, and (2) a minimum of 175 days per
year, unless the contract specifies a lower number of days of
operation. 
   (e) Three- and four-year-old children are eligible for full-day
California state preschool program services if the family meets at
least one of the criteria specified in paragraph (1) of subdivision
(a) of Section 8263, and the parents meet at least one of the
criteria specified in paragraph (2) of subdivision (a) of Section
8263.  
   (f) A full-day California state preschool program shall operate
(1) full time determined by the number of hours necessary to meet the
child care and development needs of families, and (2) a minimum of
246 days per year, unless the contract specifies a lower number of
days of operation.  
   (g) Fees shall be assessed and collected for families with
children in the full-day California state preschool program pursuant
to subdivisions (g) and (h) of Section 8263. Fees shall not be
assessed for families whose children are enrolled in the part-day
California state preschool program.  
   (h) 
    (e)  Any agency described in subdivision (c) of Section
8208 as an "applicant or contracting agency" is eligible to contract
to operate a California state preschool program. 
   (f) Part-day preschool services shall be reimbursed on a per
capita basis, as determined by the Superintendent, and contingent on
funding being provided for the part-day preschool services in the
annual Budget Act.  
   (g) Federal Head Start funds used to provide services to families
receiving California state preschool services shall be deemed
nonrestricted funds. 
   SEC. 8.    Section 8236.1 of the   Education
Code   is amended to read: 
   8236.1.  The department shall annually monitor funding 
utilized   used  in general child care and
development programs for infants and toddlers, and hours of service
provided in the California state preschool program, and shall
annually report to the Department of Finance and to the Legislature a
statewide summary identifying the estimated funding 
utilized   used  for infants and toddlers, and the
number of preschool age children receiving  part-time
  part-day preschool  and  full-time
development   wraparound child care  services 
, as defined in subdivision (f) of Section 8239  . The annual
report shall include a comparison to the prior year on a
county-by-county basis.
   SEC. 9.    Section 8236.2 of the   Education
Code   is repealed.  
   8236.2.  (a) The Superintendent shall encourage California state
preschool program contracting agencies to offer full-day services to
parents who have a qualifying need.
   (b) Part-day services shall be reimbursed on a per capita basis,
as determined by the Superintendent.
   (c) Full-day services shall be reimbursed at no more than the
standard reimbursement rate with adjustment factors.
   (d) Federal Head Start funds used to provide services to families
receiving California state preschool services shall be deemed
nonrestricted funds. 
   SEC. 10.    Section 8238 of the   Education
Code   is amended to read: 
   8238.  As a condition of receipt of funds pursuant to Section
8238.4, a participating  part-day preschool  program shall
 include, but not be limited to, both  
coordinate the provision of all  of the following: 
   (a) Age and developmentally appropriate activities for children in
participating classrooms that are designed to facilitate their
transition to kindergarten.  
   (b) 
    (a)  Opportunities for parents and legal guardians to
work with their children on interactive literacy activities. For
purposes of this subdivision, "interactive literacy activities" means
activities in which parents or legal guardians actively participate
in facilitating the acquisition by their children of prereading
skills through guided activities such as shared reading, learning the
alphabet, and basic vocabulary development. 
   (b) Parenting education for parents and legal guardians of
children in participating classrooms to support the development by
their children of literacy skills. Parenting education shall include,
but not be limited to, instruction in all of the following: 

   (1) Providing support for the educational growth and success of
their children.  
   (2) Improving parent-school communications and parental
understanding of school structures and expectations.  
   (3) Becoming active partners with teachers in the education of
their children.  
   (c) Referrals, as necessary, to providers of instruction in adult
education and English as a second language in order to improve the
academic skills of parents and legal guardians of children in
participating classrooms.  
   (d) Staff development for teachers in participating classrooms
that includes, but is not limited to, all of the following: 

   (1) Development of a pedagogical knowledge, including, but not
limited to, improved instructional strategies.  
   (2) Knowledge and application of developmentally appropriate
assessments of the prereading skills of children in participating
classrooms.  
   (3) Information on working with families, including the use of
onsite coaching, for guided practice in interactive literacy
activities. 
   SEC. 11.    Section 8238.1 of the  
Education Code   is repealed.  
   8238.1.  As a condition of receipt of funds pursuant to Section
8238.4, a participating program shall coordinate the provision of all
of the following:
   (a) Parenting education for parents and legal guardians of
children in participating classrooms to support the development by
their children of literacy skills. Parenting education shall include,
but not be limited to, instruction in all of the following:
   (1) Providing support for the educational growth and success of
their children.
   (2) Improving the parent-school communications and parental
understanding of school structures and expectations.
   (3) Becoming active partners with teachers in the education of
their children.
   (b) Referrals, as necessary, to providers of instruction in adult
education and English as a second language in order to improve the
academic skills of parents and legal guardians of children in
participating classrooms. 
   SEC. 12.    Section 8238.2 of the  
Education Code   is repealed.  
   8238.2.  A local educational agency or a participating program on
behalf of one or more participating programs may select a family
literacy and education coordinator whose duties may include all of
the following:
   (a) Developing a system to coordinate the provision of literacy
services to families at the local educational agency and community
level.
   (b) Creating an organizational partnership between each program
provider and an adult education program operated by a local
educational agency or other community provider, as needed.
   (c) Promoting parental involvement in participating classrooms.

   SEC. 13.    Section 8238.3 of the  
Education Code   is repealed.  
   8238.3.  As a condition of receipt of funds pursuant to Section
8238.4, a participating program shall provide staff development for
teachers in participating classrooms that includes, but is not
limited to, all of the following:
   (a) Development of a pedagogical knowledge including, but not
limited to, improved instructional strategies.
   (b) Knowledge and application of developmentally appropriate
assessments of the prereading skills of children in participating
classrooms.
   (c) Information on working with families, including the use of on
site coaching, for guided practice in interactive literacy
activities. 
   SEC. 14.    Section 8238.4 of the  
Education Code   is amended to read:  
   8238.4.  Of funds appropriated in Schedule (1) of Item
6110-196-0001 of Section 2.00 of the Budget Act of 2006 (Ch. 48,
Stats. 2006) for child development and preschool programs, fifty
million dollars ($50,000,000) is available for expenditure by the
Superintendent as follows:
   (a) (1) Forty-five million dollars ($45,000,000) to reimburse
participating programs on a per-child basis at the same rate that is
used for the state preschool program, as determined in the annual
Budget Act or other statute.
   (2) The funds described in paragraph (1) shall 
    8238.4.    (a) A family literacy supplemental grant
shall be made available and distributed to qualifying California
state preschool classrooms, as determined by the Superintendent, at a
rate of two thousand five hundred dollars ($2,500) per class. The
Superintendent shall distribute the family literacy supplemental
grant funds according to the following priorities:  
   (1) First priority shall be assigned to California state preschool
programs that contract to receive this funding before July 1, 2012.
These programs shall receive this funding until their contract is
terminated or the California state preschool program no longer
provides family literacy services. 
    (2)     Second priority shall  be
assigned to  California state preschool  programs 
operating classrooms  located in the attendance area of
elementary schools in deciles 1 to 3, inclusive, based on the
 2005 base   most   recently published
 Academic Performance Index pursuant to Section 52056 .
  The Superintendent shall use a lottery process in
implementing this paragraph  .  Within elementary
schools in deciles 1 to 3, inclusive, based on the 2005 base Academic
Performance Index, preference shall be provided to underserved areas
as described in subdivision (d) of Section 8279.3. If the funds
described in paragraph (1) are offered under a new competitive
bidding process after January 1, 2008, due to the termination,
suspension, or relinquishment of an original contract award and in
order to maintain an existing class, the department shall assign
first priority to successful applicants that will maintain that class
within the attendance area of the elementary school as originally
granted.  
   (3) Notwithstanding any other provision of law, programs receiving
funding in this section shall serve children who would attend
kindergarten in the subsequent academic year. No child shall receive
services from a program under this section for more than one year.
 
   (4) Notwithstanding any other provision of law, a program
receiving funding pursuant to this section may provide services to
children in families above the income eligibility threshold, as
described in Sections 8263 and 8263.1, if the number of contracted
slots exceed the number of eligible children. No more than 20 percent
of contracted slots, calculated throughout the participating program'
s entire contract, may be filled by children in families above the
income eligibility threshold.  
   (5) The department shall report to the Department of Finance and
the Legislature in the annual report specified in Section 8236.1 and
in the same format used for the annual report, the number of children
who are being served by the California state preschool program. The
report shall also include the number of children served above the
income eligibility threshold and the age of all children served.
 
   (b) (1) Five million dollars ($5,000,000) to be distributed to
each participating class at a rate of two thousand five hundred
dollars ($2,500) per class per school year. Funds received pursuant
to this subdivision may be used for all of the following purposes:
 
   (A) Compensation and support costs for program coordinators as
described in Section 8238.2.  
   (B) Staff development pursuant to Section 8238.3. 

   (C) Family literacy services.  
   (D) Instructional materials, including consumables. 

   (2) In the event that the total amount described in paragraph (1)
is insufficient to fund all of the participating class at the per
classroom rate described in that paragraph, the class rate shall be
prorated accordingly.  
           (3) Eligibility to receive funding pursuant to this
subdivision is restricted to participating programs that were
eligible to receive funding pursuant to this section in the 2007-08
fiscal year.  
   (c) The appropriation of funds for purposes of this section beyond
the amounts described in this section shall be pursuant to the
annual Budget Act or other statute.  
   (d) Notwithstanding the provisions of this section to the
contrary, programs receiving funding pursuant to this section may
participate in all California state preschool programs administered
by the Superintendent pursuant to Section 8235.  
   (b) A family literacy supplemental grant distributed pursuant to
this section shall be used for purposes specified in Section 8238.
 
   (c) Implementation of this section is contingent upon funding
being provided for family literacy supplemental grants for California
state preschool programs in the annual Budget Act or other statute.

   SEC. 15.    Section 8238.5 of the  
Education Code   is repealed.  
   8238.5.  Subject to the availability of funds for purposes of this
section, as described in subdivision (c) of 8238.4, the
Superintendent shall conduct an evaluation of the effectiveness of
prekindergarten and family literacy programs established pursuant to
this article. To the extent feasible, the evaluation shall do both of
the following:
   (a) Rely on quantifiable measures of academic achievement of
participating children, including, but not limited to, performance on
the Standardized Testing and Reporting Program test and the English
language development test administered in grade 3.
   (b) Estimate the costs and benefits of the programs. 
   SEC. 16.    Section 8238.6 of the  
Education Code   is repealed.  
   8238.6.  Notwithstanding any other provision of law, up to five
million dollars ($5,000,000) of unearned contract funds appropriated
in Schedule (1.5)(a) of Item 6110-196-0001 of Section 2.00 of the
Budget Act of 2005 (Ch. 38, Stats. 2005) for general child care
programs is available for expenditure by the Superintendent to
provide direct child care services for children in participating
classrooms to meet the child care needs of parents for the portion of
each day that is not covered by services provided as part of a
preschool program pursuant Section 8238.4. 
   SEC. 17.    Section 8239 of the  Education
Code   is amended to read: 
   8239.  The Superintendent shall encourage state preschool program
applicants or contracting agencies to offer full-day services through
a combination of part-day preschool slots and  part-day
  wraparound  general child care and development
programs. In order to facilitate a full-day of services, all of the
following shall apply:
   (a) Part-day preschool programs provided pursuant to this section
shall operate between 175 and 180 days.
   (b)  Part-day   Wraparound   
general child care and development programs provided pursuant to this
section may operate a minimum of 246 days per year unless the child
development contract specified a lower minimum days of operation.
Part-day general child care and development programs may operate a
full-day for the remainder of the year after the completion of the
preschool program.
   (c)  Full day services provided under this section
  Part-day preschool services combined with wraparound
child care services  shall be reimbursed at no more than the
 full-day  standard reimbursement rate  for general
child care programs  with adjustment factors  , pursuant to
Section 8265 and as determined in the annual Budget Act  .

   (d) Notwithstanding any provision of law, to be eligible for
part-day child care, a child who is enrolled in a preschool program
shall be required to meet the eligibility requirements specified in
paragraph (4) of subdivision (a) of Section 8238.4 and the
requirements pursuant to Sections 8263 and 8263.1 at the time of
enrollment in a preschool. Subsequent to enrollment, a child shall be
deemed eligible for part-day care as long as the child is enrolled
in a preschool program.  
   (d) Three- and four-year-old children are eligible for wraparound
child care services to supplement the part-day California state
preschool program if the family meets at least one of the criteria
specified in paragraph (1) of subdivision (a) of Section 8263, and
the parents meet at least one of the criteria specified in paragraph
(2) of subdivision (a) of Section 8263.  
   (e) Fees shall be assessed and collected for families with
children in part-day preschool programs, or families receiving
wraparound child care services, or both, pursuant to subdivisions (g)
and (h) of Section 8263.  
   (f) For purposes of this section, "wraparound child care services"
and "wraparound general child care and development programs" mean
services provided for the remaining portion of the day or remainder
of the year following the completion of part-day preschool services
that are necessary to meet the child care needs of parents eligible
pursuant to subdivision (a) of Section 8263. These services shall be
provided consistent with the general child care and development
programs provided pursuant to Article 8 (commencing with Section
8240). 
   SEC. 18.    Section 8263 of the   Education
Code   is amended to read: 
   8263.  (a) The Superintendent shall adopt rules and regulations on
eligibility, enrollment, and priority of services needed to
implement this chapter. In order to be eligible for federal and state
subsidized child development services, families shall meet at least
one requirement in each of the following areas:
   (1) A family is (A) a current aid recipient, (B) income eligible,
(C) homeless, or (D) one whose children are recipients of protective
services, or whose children have been identified as being abused,
neglected, or exploited, or at risk of being abused, neglected, or
exploited.
   (2) A family needs the child care services (A) because the child
is identified by a legal, medical,  or  social services
agency, or emergency shelter as (i) a recipient of protective
services or (ii) being neglected, abused, or exploited, or at risk of
neglect, abuse, or exploitation, or (B) because the parents are (i)
engaged in vocational training leading directly to a recognized
trade, paraprofession, or profession, (ii) employed or seeking
employment, (iii) seeking permanent housing for family stability, or
(iv) incapacitated.
   (b) Except as provided in Article 15.5 (commencing with Section
8350), priority for  state   federal  and
 federally   state  subsidized child
development services is as follows:
   (1) (A) First priority shall be given to neglected or abused
children who are recipients of child protective services, or children
who are at risk of being neglected or abused, upon written referral
from a legal, medical, or social services agency. If an agency is
unable to enroll a child in the first priority category, the agency
shall refer the family to local resource and referral services to
locate services for the child.
   (B) A family who is receiving child care on the basis of being a
child at risk of abuse, neglect, or exploitation, as defined in
subdivision (k) of Section 8208, is eligible to receive services
pursuant to subparagraph (A) for up to three months, unless the
family becomes eligible pursuant to subparagraph (C).
   (C) A family may receive child care services for up to 12 months
on the basis of a certification by the county child welfare agency
that child care services continue to be necessary or, if the child is
receiving child protective services during that period of time, and
the family requires child care and remains otherwise eligible. This
time limit does not apply if the family's child care referral is
recertified by the county child welfare agency.
   (2) Second priority shall be given equally to eligible families,
regardless of the number of parents in the home, who are income
eligible. Within this priority, families with the lowest gross
monthly income in relation to family size, as determined by a
schedule adopted by the Superintendent, shall be admitted first. If
two or more families are in the same priority in relation to income,
the family that has a child with exceptional needs shall be admitted
first. If there is no family of the same priority with a child with
exceptional needs, the same priority family that has been on the
waiting list for the longest time shall be admitted first. For
purposes of determining order of admission, the grants of public
assistance recipients shall be counted as income.
   (3) The Superintendent shall set criteria for and may grant
specific waivers of the priorities established in this subdivision
for agencies that wish to serve specific populations, including
children with exceptional needs or children of prisoners. These new
waivers shall not include proposals to avoid appropriate fee
schedules or admit ineligible families, but may include proposals to
accept members of special populations in other than strict income
order, as long as appropriate fees are paid.
   (c) Notwithstanding any other  provision of  law,
in order to promote continuity of services, a family enrolled in a
state or federally funded child care and development program whose
services would otherwise be terminated because the family no longer
meets the program income, eligibility, or need criteria may continue
to receive child development services in another state or federally
funded child care and development program if the contractor is able
to transfer the family's enrollment to another program for which the
family is eligible  prior to   before  the
date of termination of services or to exchange the family's existing
enrollment with the enrollment of a family in another program,
provided that both families satisfy the eligibility requirements for
the program in which they are being enrolled. The transfer of
enrollment may be to another program within the same administrative
agency or to another agency that administers state or federally
funded child care and development programs.
   (d) In order to promote continuity of services, the Superintendent
may extend the 60-working-day period specified in subdivision (a) of
Section  18101   18086.5  of Title 5 of
the California Code of Regulations for an additional 60 working days
if he or she determines that opportunities for employment have
diminished to the degree that one or both parents cannot reasonably
be expected to find employment within 60 working days and granting
the extension is in the public interest. The scope of extensions
granted pursuant to this subdivision shall be limited to the
necessary geographic areas and affected persons, which shall be
described in the Superintendent's order granting the extension. It is
the intent of the Legislature that extensions granted pursuant to
this subdivision improve services in areas with high unemployment
rates and areas with disproportionately high numbers of seasonal
agricultural jobs.
   (e) A physical examination and evaluation, including
age-appropriate immunization, shall be required  prior to
  before  , or within six weeks of, enrollment. A
standard, rule, or regulation shall not require medical examination
or immunization for admission to a child care and development program
of a child whose parent or guardian files a letter with the
governing board of the child care and development program stating
that the medical examination or immunization is contrary to his or
her religious beliefs, or provide for the exclusion of a child from
the program because of a parent or guardian having filed the letter.
However, if there is good cause to believe that a child is suffering
from a recognized contagious or infectious disease, the child shall
be temporarily excluded from the program until the governing board of
the child care and development program is satisfied that the child
is not suffering from that contagious or infectious disease.
   (f) Regulations formulated and promulgated pursuant to this
section shall include the recommendations of the State Department of
Health Care Services relative to health care screening and the
provision of health care services. The Superintendent shall seek the
advice and assistance of these health authorities in situations where
service under this chapter includes or requires care of children who
are ill or children with exceptional needs.
   (g) (1) The Superintendent shall establish a fee schedule for
families utilizing child care and development services pursuant to
this chapter, including families receiving services under paragraph
(1) of subdivision (b). Families receiving services under
subparagraph (B) of paragraph (1) of subdivision (b) may be exempt
from these fees for up to three months. Families receiving services
under subparagraph (C) of paragraph (1) of subdivision (b) may be
exempt from these fees for up to 12 months. The cumulative period of
time of exemption from these fees for families receiving services
under paragraph (1) of subdivision (b) shall not exceed 12 months.
   (2) The income of a recipient of federal supplemental security
income benefits pursuant to Title XVI of the federal Social Security
Act (42 U.S.C. Sec. 1381 et seq.) and state supplemental program
benefits pursuant to Title XVI of the federal Social Security Act
 (42 U.S.C. Sec. 1381 et seq.)  and Chapter 3 (commencing
with Section 12000) of Part 3 of Division 9 of the Welfare and
Institutions Code shall not be included as income for  the
 purposes of determining the amount of the family fee.
   (h)  (1)    The family fee schedule shall
 include, but not be limited to, the following restrictions:
 
   (1) Fees shall not be assessed for families whose children are
enrolled in the state preschool program.  
   (2) A 
    provide, among other things, that a  contractor or
provider may require parents to provide diapers. A contractor or
provider offering field trips either may include the cost of the
field trips within the service rate charged to the parent or may
charge parents an additional fee. Federal or state money shall not be
used to reimburse parents for the costs of field trips if those
costs are charged as an additional fee. A contractor or provider that
charges parents an additional fee for field trips shall inform
parents,  prior to   before  enrolling the
child, that a fee may be charged and that no reimbursement will be
available.  A 
    (2)     A  contractor or provider may
charge parents for field trips or require parents to provide diapers
only under the following circumstances:
   (A) The provider has a written policy that is adopted by the
agency's governing board that includes parents in the decisionmaking
process regarding both of the following:
   (i) Whether or not, and how much, to charge for field trip
expenses.
   (ii) Whether or not to require parents to provide diapers.
   (B) The maximum total of charges per child in a contract year does
not exceed twenty-five dollars ($25).
   (C) A child shall not be denied participation in a field trip due
to the parent's inability or refusal to pay the charge. Adverse
action shall not be taken against a parent for that inability or
refusal. 
   Each 
    (3)     Each  contractor or provider
shall establish a payment system that prevents the identification of
children based on whether or not their parents have paid a field trip
charge. 
   Expenses 
    (   4)     Expenses  incurred
and income received for field trips pursuant to this section shall
be reported to the department. The income received for field trips
shall be reported specifically as restricted income.
   (i) The Superintendent shall establish guidelines for the
collection of employer-sponsored child care benefit payments from a
parent whose child receives subsidized child care and development
services. These guidelines shall provide for the collection of the
full amount of the benefit payment, but not to exceed the actual cost
of child care and development services provided, notwithstanding the
applicable fee based on the fee schedule.
   (j) The Superintendent shall establish guidelines according to
which the director or a duly authorized representative of the child
care and development program will certify children as eligible for
state reimbursement pursuant to this section.
   (k) Public funds shall not be paid directly or indirectly to an
agency that does not pay at least the minimum wage to each of its
employees.
   SEC. 19.   Section 8263.1 of the   Education
Code   is amended to read: 
   8263.1.  (a) For purposes of this chapter, "income eligible" means
that a family's adjusted monthly income is at or below 70 percent of
the state median income, adjusted for family size, and adjusted
annually.
   (b) Notwithstanding any other law, for the 2011-12 fiscal year,
the income eligibility limits that were in effect for the 2007-08
fiscal year shall be reduced to 70 percent of the state median income
that was in use for the 2007-08 fiscal year, adjusted for family
size, effective July 1, 2011. 
   (c) Notwithstanding any other law, for the 2012-13 fiscal year,
the income eligibility limits shall be 70 percent of the state median
income that was in use for the 2007-08 fiscal year, adjusted for
family size.  
   (c) 
    (d)  The income of a recipient of federal supplemental
security income benefits pursuant to Title XVI of the federal Social
Security Act (42 U.S.C. Sec. 1381 et seq.) and state supplemental
program benefits pursuant to Title XVI of the federal Social Security
Act and Chapter 3 (commencing with Section 12000) of Part 3 of
Division 9 of the Welfare and Institutions Code shall not be included
as income for the purposes of determining eligibility for child care
under this chapter.
   SEC. 20.    Section 8263.3 is added to the  
Education Code   , to read:  
   8263.3.  (a) Notwithstanding any other law, and in addition to any
reductions applied pursuant to Section 8263.2, effective July 1,
2012, the department shall reduce the maximum reimbursable amounts of
the contracts for 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 8.7 percent or
by whatever proportion is necessary to ensure that expenditures for
these programs do not exceed the amounts appropriated for them, as
adjusted for any reductions in appropriations 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 8.7
percent or whatever proportion is necessary to ensure that
expenditures for these programs do not exceed the amounts
appropriated for them, as adjusted for any reductions in
appropriations made subsequent to the adoption of the annual Budget
Act.
   (b) Notwithstanding any other law, effective July 1, 2012,
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 with the highest income in relation to family size.
   (2) Families that have the same income and have been enrolled in
child care services the longest.
   (3) Families that have the same income and have a child with
exceptional needs.
   (4) Families whose children are receiving child protective
services or are at risk of being neglected or abused, regardless of
family income. 
   SEC. 21.    Section 8335.4 of the   
 Education Code   is amended to read: 
   8335.4.  (a) Upon approval of the plan by the Child Development
Division of the department, the City and County of San Francisco
shall annually prepare and submit to the Legislature, the State
Department of Social Services, and the department a report that
summarizes the success of the pilot project and the city and county's
ability to maximize the use of funds and to improve and stabilize
child care in the city and county.
   (b) The City and County of San Francisco shall submit an interim
report to the Legislature, the State Department of Social Services,
and the department on or before December 31, 2010, and shall submit a
final report to those entities on or before June 30,  2013
  2014  , summarizing the impact of the plan on the
child care needs of working families in the city and county.
   SEC. 22.    Section 8335.5 of the   
 Education Code   is amended to read: 
   8335.5.  The City and County of San Francisco may implement an
individualized child care subsidy plan until July 1,  2013
  2014  , at which date the city and county shall
terminate the plan. Between July 1,  2013   2014
 , and July 1,  2015   2016  , the
city and county shall phase out the individualized county child care
subsidy plan and, as of July 1,  2015   2016
 , shall implement the state's requirements for child care
subsidies. A child enrolling for the first time for subsidized child
care in the city and county after July 1,  2013 
2014  , shall not be enrolled in the pilot program established
pursuant to this article and is subject to existing state laws and
regulations regarding child care eligibility and priority.
   SEC. 23.    Section 8335.7 of the   
 Education Code   is amended to read: 
   8335.7.  This article shall become inoperative on July 1, 
2015   2016  , and as of January 1,  2016
  2017  , is repealed, unless a later enacted
statute, that is enacted before January 1,  2016 
 2017  , deletes or extends the dates on which it becomes
inoperative and is repealed.
   SEC. 24.    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) Notwithstanding any other law, the family fee schedule that
was in effect for the 2011-12 fiscal year pursuant to paragraph (4)
shall remain in effect for the 2012-13 fiscal year, and shall retain
a flat fee per family.  
   (5) 
    (6)  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. 25.    Section 14041 of the   Education
Code   is amended to read: 
   14041.  (a) The Controller shall draw warrants on the State
Treasury in favor of the county treasurer of each county in each
month of each year in the amounts and manner prescribed in this
section so as to provide in each warrant a portion of the total
amount certified by the Superintendent as apportioned under the
provisions of Sections 41330 to 41343, inclusive, and Chapter 4
(commencing with Section 41600) and Chapter 5 (commencing with
Section  41700)   41760.2)  and Article 2
(commencing with Section  42237)   42238) 
of Chapter 7 of Part 24 of Division 3 of Title 2,  inclusive,
 during the fiscal year from the State School Fund to the
school districts under the jurisdiction of the county superintendent
of schools of the county, to the county school service fund, and to
the county school tuition fund of the county.
   (1) Warrants for amounts allowed to  the  county
school service funds under subdivisions (a) and (b) of Section 14054
shall be for amounts equal to 5 percent in July, 5 percent in August,
and 9 percent in each remaining month of the fiscal year of the
amounts certified by the Superintendent as a part of the advance
apportionment.
   (2) Warrants for amounts apportioned to school districts and
county school service funds for classes maintained by county
superintendents of schools and to the county school tuition funds
shall be for amounts equal to 5 percent in July, 5 percent in August,
and 9 percent in September, October, November, December, and
January, of the amounts certified by the Superintendent as a part of
the advance apportionment.
   (3) Warrants in the months of February to May, inclusive, shall be
for amounts equal to one-fifth of the difference between the amounts
certified by the Superintendent for school districts and county
school service funds for classes maintained by county superintendents
of schools and county school tuition funds as the first principal
apportionment and the amounts required by paragraph (2).
   (4) Warrants for the month of June shall be for amounts equal to
the difference between the amounts certified by the Superintendent
for school districts and county school service funds for classes
maintained by county superintendents of schools and county school
tuition funds as the second principal apportionment and the amounts
required by paragraphs (2) and (3).
   (5) Warrants in the months of July and August shall include 5
percent of the estimated total amounts of the special purpose
apportionment, as determined by the Superintendent. Warrants in the
months of September to November, inclusive, shall include 9 percent
of the estimated total amounts of the special purpose apportionment,
as determined by the Superintendent. Warrants in December shall
include 9 percent of the amounts certified by the Superintendent as
the special purpose apportionment, as adjusted, if necessary, to
correct excesses or deficiencies in the estimates made for purposes
of the warrants in the months of September to November, inclusive. An
additional 9 percent of the amounts of the special purpose
apportionment shall be included in the warrants for the months from
January to June, inclusive.
   (6) Warrants in June shall include the total amounts certified by
the Superintendent as the final apportionment.
   (7) Notwithstanding paragraph (2) to the contrary, for school
districts that reported less than 5,000 units of average daily
attendance in the 1979-80 fiscal year and that received 39 percent or
more, but less than 75 percent, of their total revenue limits from
local property taxes in that fiscal year, warrants for amounts
apportioned to the  school  districts shall be for amounts
equal to 15 percent in July, August, September, and October; zero
percent in November and December; and 6 percent in January of the
amounts certified by the Superintendent as a part of the advance
apportionment. Warrants for amounts apportioned to the  school
 districts for the months of February to May, inclusive, shall
be in accordance with paragraph (3), and for the month of June, shall
be in accordance with paragraph (4).
   (8) Notwithstanding paragraph (2) or (7) to the contrary, for
school districts which reported less than 5,000 units of average
daily attendance in the 1979-80 fiscal year and which received 75
percent or more of their total revenue limits from local property
taxes in that fiscal year, warrants for amounts apportioned to the
 school  districts shall be for amounts equal to 15 percent
in July; 30 percent in August and September; 15 percent in October;
zero percent in November and December; 6 percent in January; and zero
percent in February, March, April, and May, of the amounts certified
by the Superintendent as a part of the advance apportionment.
Warrants for the month of June shall be in accordance with paragraph
(4). 
   (9) (A) Notwithstanding any other law, for the 2012-13 fiscal year
only, for purposes of warrants drawn on the State Treasury pursuant
to this section, the amount certified by the Superintendent as the
advance apportionment and first principal apportionment shall include
the following reduction:  
   (i) The Superintendent shall multiply six billion nine hundred
twenty-one million five hundred twenty-two thousand dollars
($6,921,522,000) by the ratio of the revenue limit or charter school
general purposes funding for each county office of education, school
district, or charter school, to the statewide total of revenue limit
and charter school general purpose funding.  
   (ii) For each county office of education, school district, or
charter school, the Superintendent shall subtract the amount
calculated in clause (i) from the apportionments calculated pursuant
to Sections 2558, 42238, and 47633.  
   (B) Notwithstanding any other law, for the 2012-13 fiscal year,
the Superintendent shall delay the second principal apportionment
calculated pursuant to Section 41335 from July 2, 2013, to July 15,
2013, to account for all revenues remitted to school districts and
county offices of education pursuant to subparagraph (B) of paragraph
(3) of subdivision (e) of Section 36 of Article XIII of the
California Constitution. The Superintendent shall ensure that the
second principal apportionment calculated pursuant to Section 41335
accounts for the difference between the amount distributed pursuant
to subparagraph (B) of paragraph (3) of subdivision (e) of Section 36
of Article XIII of the California Constitution and the offsets
listed in subparagraph (A). Nothing in this section shall delay the
payment of warrants to school districts and county offices of
education 10 days before the close of the state's fiscal year
pursuant to subparagraph (B) of paragraph (3) of subdivision (e) of
Section 36 of Article XIII of the California Constitution.  

   (10) Notwithstanding paragraph (1), (3), or (7), for the 2012-13
fiscal year only, the Superintendent shall reduce the June warrants
for any amounts received pursuant to Sections 34179.5 and 34179.6 of
the Health and Safety Code. This reduction shall constitute the
entire amount distributed pursuant to Sections 34179.5 and 34179.6 of
the Health and Safety Code and offset pursuant to subparagraph (B)
of paragraph (6) of subdivision (h) of Section 42238, paragraph (6)
of subdivision (c) of Section 2558, and Section 56836.08. 
   (b) The drawing of the warrants required to be drawn during any
one of the months mentioned may be postponed by the Controller for
not to exceed 30 days, but the total amounts due the several counties
during any fiscal year shall be paid within the fiscal year. The
warrants shall be paid by the  State Treasurer from
the State School Fund and are not subject to  the provisions
of   Section 925.6 of the  Government Code 
Section 925.6  . 
   (c) This section shall become inoperative on December 15, 2012,
and, as of January 1, 2013, is repealed, only if the Schools and
Local Public Safety Protection Act of 2012 (Attorney General
reference number 12-0009) is not approved by the voters at the
November 6, 2012, statewide general election, or if the provisions of
that act that modify personal income tax rates do not become
operative due to a conflict with another initiative measure that is
approved at the same election and receives a greater number of
affirmative votes. 
   SEC. 26.    Section 14041 is added to the  
  Education Code   , to read:  
   14041.  (a) The Controller shall draw warrants on the State
Treasury in favor of the county treasurer of each county in each
month of each year in the amounts and manner prescribed in this
section so as to provide in each warrant a portion of the total
amount certified by the Superintendent as apportioned under the
provisions of Sections 41330 to 41343, inclusive, and Chapter 4
(commencing with Section 41600) and Chapter 5 (commencing with
Section 41760.2) and Article 2 (commencing with Section 42238) of
Chapter 7 of Part 24 of Division 3 of Title 2, during the fiscal year
from the State School Fund to the school districts under the
jurisdiction of the county superintendent of schools of the county,
to the county school service fund, and to the county school tuition
fund of the county.
   (1) Warrants for amounts allowed to county school service funds
under subdivisions (a) and (b) of Section 14054 shall be for amounts
equal to 5 percent in July, 5 percent in August, and 9 percent in
each remaining month of the fiscal year of the amounts certified by
the Superintendent as a part of the advance apportionment.
   (2) Warrants for amounts apportioned to school districts and
county school service funds for classes maintained by county
superintendents of schools and to the county school tuition funds
shall be for amounts equal to 5 percent in July, 5 percent in August,
and 9 percent in September, October, November, December, and
January, of the amounts certified by the Superintendent as a part of
the advance apportionment.
   (3) Warrants in the months of February to May, inclusive, shall be
for amounts equal to one-fifth of the difference between the amounts
certified by the Superintendent for school districts and county
school service funds for classes maintained by county superintendents
of schools and county school tuition funds as the first principal
apportionment and the amounts required by paragraph (2).
   (4) Warrants for the month of June shall be for amounts equal to
the difference between the amounts certified by the Superintendent
for school districts and county school service funds for classes
maintained by county superintendents of schools and county school
tuition funds as the second principal apportionment and the amounts
required by paragraphs (2) and (3).
   (5) Warrants in the months of July and August shall include 5
percent of the estimated total amounts of the special purpose
apportionment, as determined by the Superintendent. Warrants in the
months of September to November, inclusive, shall include 9 percent
of the estimated total amounts of the special purpose apportionment,
as determined by the Superintendent. Warrants in December shall
include 9 percent of the amounts certified by the Superintendent as
the special purpose apportionment, as adjusted, if necessary, to
correct excesses or deficiencies in the estimates made for purposes
of the warrants in the months of September to November, inclusive. An
additional 9 percent of the amounts of the special purpose
apportionment shall be included in the warrants for the months from
January to June, inclusive.
   (6) Warrants in June shall include the total amounts certified by
the Superintendent as the final apportionment.
   (7) Notwithstanding paragraph (2) to the contrary, for school
districts that reported less than 5,000 units of average daily
attendance in the 1979-80 fiscal year and that received 39 percent or
more, but less than 75 percent, of their total revenue limits from
local property taxes in that fiscal year, warrants for amounts
apportioned to the school districts shall be for amounts equal to 15
percent in July, August, September, and October; zero percent in
November and December; and 6 percent in January of the amounts
certified by the Superintendent as a part of the advance
apportionment. Warrants for amounts apportioned to the school
districts for the months of February to May, inclusive, shall be in
accordance with paragraph (3), and for the month of June, shall be in
accordance with paragraph (4).
   (8) Notwithstanding paragraph (2) or (7) to the contrary, for
school districts which reported less than 5,000 units of average
daily attendance in the 1979-80 fiscal year and which received 75
percent or more of their total revenue limits from local property
taxes in that fiscal year, warrants for amounts apportioned to the
school districts shall be for amounts equal to 15 percent in July; 30
percent in August and September; 15 percent in October; zero percent
in November and December; 6 percent in January; and zero percent in
February, March, April, and May, of the amounts certified by the
Superintendent as a part of the advance apportionment. Warrants for
the month of June shall be in accordance with paragraph (4).
   (9) Notwithstanding paragraph (1), (3), or (7), for the 2012-13
fiscal year only, the Superintendent shall reduce only the June
warrants for any amounts received pursuant to Sections 34179.5 and
34179.6 of the Health and Safety Code. This reduction shall
constitute the entire amount distributed pursuant to Sections 34179.5
and 34179.6 of the Health and Safety Code and shall constitute an
offset pursuant to paragraph (6) of subdivision (c) of Section 2558
and paragraph (6) of subdivision (h) of Section 42238.
   (b) The drawing of the warrants required to be drawn during any
one of the months mentioned may be postponed by the Controller for
not to exceed 30 days, but the total amounts due the several counties
during any fiscal year shall be paid within the fiscal year. The
warrants shall be paid by the Treasurer from the State School Fund
and are not subject to Section 925.6 of the Government Code.
   (c) This section shall not become operative until December 15,
2012, and shall become operative only if the Schools and Local Public
Safety Protection Act of 2012 (Attorney General reference number
12-0009) is not approved by the voters at the November 6, 2012,
statewide general election, or if the provisions of that act that
modify personal income tax rates do not become operative due to a
conflict with another initiative measure that is approved at the same
election and receives a greater number of affirmative votes. If the
Schools and Local Public Safety Protection Act of 2012 (Attorney
General reference number 12-0009) is approved by the voters at the
November 6, 2012, statewide general election, and all of the
provisions of that act that modify personal income taxes become
operative, this section shall not become operative and shall be
repealed on January 1, 2013. 
   SEC. 27.   Section 14041.6 of the  
Education Code   is amended to read: 
   14041.6.  (a) Notwithstanding subdivision (a) of Section 14041, or
any other law,  commencing with   from 
the 2008-09 fiscal year  to the 2011-12 fiscal year, inclusive
 , warrants for the principal apportionments for the month of
February in the amount of two billion dollars ($2,000,000,000)
instead shall be drawn in July of the same calendar year pursuant to
the certification made pursuant to Section 41339.  Commencing
with the 2012-13 fiscal year, warrants for   the principal
apportionments for the month of February in the amount of five
hundred thirty-one million seven hundred twenty thousand dollars
($531,720,000) instead shall be drawn in July of the same calendar
year pursuant to the certification made pursuant to Section 41339.

   (b) Notwithstanding subdivision (a) of Section 14041 or any other
law,  commencing with   from  the 2009-10
fiscal year  to the 2011-12 fiscal year, inclusive  ,
warrants for the principal apportionments for the month of April in
the amount of six hundred seventy-eight million six hundred eleven
thousand dollars ($678,611,000) and for the month of May in the
amount of one billion dollars ($1,000,000,000) instead shall be drawn
in August of the same calendar year pursuant to the certification
made pursuant to Section 41339.  Commencing with the 2012-13
fiscal year, warrants for the principal apportionments for the month
of April in the amount of one hundred seventy-five million seven
hundred twenty-eight thousand dollars ($175,728,000) and for the
month of May in the amount of one billion one hundred seventy-six
million seven hundred one thousand dollars ($1,176,701,000) instead
shall be drawn in July of the same calendar year pursuant to the
certification made pursuant to Section 41339. 
   (c) Notwithstanding subdivision (a) of Section 14041 or any other
law, commencing with the 2010-11 fiscal year, warrants for the
principal apportionments for the month of April in the amount of four
hundred nineteen million twenty thousand dollars ($419,020,000), for
the month of May in the amount of eight hundred million dollars
($800,000,000), and for the month of June in the amount of five
hundred million dollars ($500,000,000)  ,  instead
shall be drawn in July of the same calendar year pursuant to the
certification made pursuant to Section 41339.
   (d) Notwithstanding subdivision (a) of Section 14041 or any other
law,  commencing with   in  the 2011-12
fiscal year, warrants for the principal apportionments for the month
of March in the amount of one billion three hundred million dollars
($1,300,000,000) and for the month of April in the amount of seven
hundred sixty-three million seven hundred ninety-four thousand
dollars ($763,794,000) instead shall be drawn in August of the same
calendar year pursuant to the certification made pursuant to Section
41339.  Commencing with the 2012-13 fiscal year, warrants for the
principal apportionments for the month of March in the amount of one
billion twenty-nine million four hundred ninety-three thousand
dollars ($1,029,493,000) and for the month of April in the amount of
seven hundred sixty-three million seven hundred ninety-four thousand
dollars ($763,794,000) instead shall be drawn in August of the same
calendar year pursuant to the certification made pursuant to Section
41339. 
   (e) Except as provided in subdivisions (c) and (e) of Section
41202, for purposes of making the computations required by Section 8
of Article XVI of the California Constitution, the warrants drawn
pursuant to subdivisions (a), (b), (c), and (d) shall be deemed to be
"General Fund revenues appropriated  to   for
 school districts," as defined in subdivision (c) of Section
41202, for the fiscal year in which the warrants are drawn and
included within the "total allocations to school districts and
community college districts from General Fund proceeds of taxes
appropriated pursuant to Article XIII B," as defined in subdivision
(e) of Section 41202, for the fiscal year in which the warrants are
drawn. 
   (f) This section shall become inoperative on December 15, 2012,
and, as of January 1, 2013, is repealed, only if the Schools and
Local Public Safety Protection Act of 2012 (Attorney General
reference number 12-0009) is not approved by the voters at the
November 6, 2012, statewide general election, or if the provisions of
that act that modify personal income tax rates do not become
operative due to a conflict with another initiative measure that is
approved at the same election and receives a greater number of
affirmative votes. 
   SEC. 28.    Section 14041.6 is added to the 
   Education Code   , to read:  
   14041.6.  (a) Notwithstanding subdivision (a) of Section 14041, or
any other law, commencing with the 2008-09 fiscal year, warrants for
the principal apportionments for the month of February in the amount
of two billion dollars ($2,000,000,000) instead shall be drawn in
July of the same calendar year pursuant to the certification made
pursuant to Section 41339.
   (b) Notwithstanding subdivision (a) of Section 14041 or any other
law, commencing with the 2009-10 fiscal year, warrants for the
principal apportionments for the month of April in the amount of six
hundred seventy-eight million six hundred eleven thousand dollars
($678,611,000) and for the month of May in the amount of one billion
dollars ($1,000,000,000) instead shall be drawn in August of the same
calendar year pursuant to the certification made pursuant to Section
41339.
   (c) Notwithstanding subdivision (a) of Section 14041 or any other
law, commencing with the 2010-11 fiscal year, warrants for the
principal apportionments for the month of April in the amount of four
hundred nineteen million twenty thousand dollars ($419,020,000), for
the month of May in the amount of eight hundred million dollars
($800,000,000), and for the month of June in the amount of five
hundred million dollars ($500,000,000), instead shall be drawn in
July of the same calendar year pursuant to the certification made
pursuant to Section 41339.
   (d) Notwithstanding subdivision (a) of Section 14041 or any other
law, commencing with the 2011-12 fiscal year, warrants for the
principal apportionments for the month of March in the amount of one
billion three hundred million dollars ($1,300,000,000) and for the
month of April in the amount of seven hundred sixty-three million
seven hundred ninety-four thousand dollars ($763,794,000) instead
shall be drawn in August of the same calendar year pursuant to the
certification made pursuant to Section 41339.
   (e) Except as provided in subdivisions (c) and (e) of Section
41202, for purposes of making the computations required by Section 8
of Article XVI of the California Constitution, the warrants drawn
pursuant to subdivisions (a), (b), (c), and (d) shall be deemed to be
"General Fund revenues appropriated to school districts," as defined
in subdivision (c) of Section 41202, for the fiscal year in which
the warrants are drawn and included within the "total allocations to
school districts and community college districts from General Fund
proceeds of taxes appropriated pursuant to Article XIII B," as
defined in subdivision (e) of Section 41202, for the fiscal year in
which the warrants are drawn.
          (f) This section shall not become operative until December
15, 2012, and shall become operative only if the Schools and Local
Public Safety Protection Act of 2012 (Attorney General reference
number 12-0009) is not approved by the voters at the November 6,
2012, statewide general election, or if the provisions of that act
that modify personal income tax rates do not become operative due to
a conflict with another initiative measure that is approved at the
same election and receives a greater number of affirmative votes. If
the Schools and Local Public Safety Protection Act of 2012 (Attorney
General reference number 12-0009) is approved by the voters at the
November 6, 2012, statewide general election, and all of the
provisions of that act that modify personal income tax rates become
operative, this section shall not become operative and shall be
repealed on January 1, 2013. 
   SEC. 29.    Section 14041.7 of the  
Education Code   is amended to read: 
   14041.7.  (a) Commencing with the 2010-11 fiscal year, up to one
hundred million dollars ($100,000,000) of the amount of the warrants
for the principal apportionments for the month of June, that are
instead to be drawn in July pursuant to Section 14041.5, may be drawn
in June, subject to the approval of the Director of Finance, for a
charter school or school district as follows:
   (1) In order for a charter school to receive a payment in June
pursuant to this section, the  chartering authority 
 governing body of the charter school  , in consultation
with the county superintendent of schools, shall certify to the
Superintendent and the Director of Finance on or before April 1 that
the deferral of warrants pursuant to Sections 14041.5 and 14041.6
will result in the charter school being unable to meet its financial
obligations for June and shall provide the Superintendent an estimate
of the amount of additional funds necessary for the charter school
to meet its financial obligations for the month of June.
   (2) In order for a school district to receive a payment in June
pursuant to this section, the county superintendent of schools shall
certify to the Superintendent and to the Director of Finance on or
before April 1 that the deferral of warrants pursuant to Sections
14041.5 and 14041.6 will result in the school district being unable
to meet its financial obligations for June and shall provide the
Superintendent an estimate of the amount of additional funds
necessary for the school district to meet its financial obligations
for the month of June.
   (3) The criteria, as applicable, set forth in statute and
regulations to qualify a school district for an emergency
apportionment shall be used to make the certification specified in
paragraph (2).
   (4)  A charter school or school district may receive, pursuant to
this section, no more than the lesser of the following:
   (A) The total amount of additional funds necessary for the charter
school or school district to meet its financial obligations for the
month of June, as reported to the Superintendent pursuant to
paragraph (1) or (2).
   (B) The total payments the charter school or school district is
entitled to receive in July for the prior fiscal year.
   (b)  If the total amount requested by charter schools and school
districts pursuant to paragraph (4) of subdivision (a) exceeds one
hundred million dollars ($100,000,000), the Controller, Treasurer,
and Director of Finance may authorize additional payments to meet
these requests, but total payments to charter schools and school
districts pursuant to this section shall not exceed three hundred
million dollars ($300,000,000). No later than May 1, the Controller,
Treasurer, and Director of Finance shall determine whether sufficient
cash is available to make payments in excess of one hundred million
dollars ($100,000,000). In making the determination that cash is
sufficient to make additional payments, in whole or in part, the
Controller, Treasurer, and Director of Finance shall consider costs
for state government, the scope of any identified cash shortage,
timing, achievability, legislative direction, and the impact and
hardship imposed on potentially affected programs, entities, and
related public services. The Department of Finance shall notify the
Joint Legislative Budget Committee within 10 days of this
determination and identify the total amount of requests that will be
paid.
   (c) If the total amount of cash made available pursuant to
subdivision (b) is less than the amount requested pursuant to
paragraph (3) of subdivision (a), payments to charter schools and
school districts shall be prioritized according to the date on which
notification was provided to the Superintendent and the Department of
Finance. 
   (d) A charter school submitting a certification pursuant to
paragraph (1) of subdivision (a) shall provide its chartering
authority with a copy of the certification.  
   (d) 
    (e)  Payments pursuant to this section shall be made no
later than June 20. 
   (e) 
    (f)  Except as provided in subdivisions (c) and (e) of
Section 41202, for purposes of making the computations required by
Section 8 of Article XVI of the California Constitution, the warrants
drawn pursuant to subdivision (a) shall be deemed to be "General
Fund revenues appropriated to school districts," as defined in
subdivision (c) of Section 41202, for the fiscal year in which the
warrants are drawn and included within the "total allocations to
school districts and community college districts from General Fund
proceeds of taxes appropriated pursuant to Article XIII B," as
defined in subdivision (e) of Section 41202, for the fiscal year in
which the warrants are drawn.
   SEC. 30.    Section 17173 of the   Education
Code   is amended to read: 
   17173.  As used in this chapter, the following words and terms
shall have the following meanings, unless the context indicates or
requires another or different meaning or intent:
   (a) "Act" means the California School Finance Authority Act.
   (b) "Agent" means a county or city board of education or
superintendent of schools acting with the board's consent, on behalf
of one or more school districts for any purpose of this chapter, the
Board of Governors of the California Community Colleges or the
Chancellor of the California Community Colleges acting with the Board
of Governors' consent, on behalf of one or more community college
districts for any purpose of this chapter, and the school district,
county office of education, or other chartering entity acting with
the consent of, and on behalf of, one or more charter schools for any
purpose of this chapter.
   (c) "Authority" means the California School Finance Authority, or
any board, body, commission, department, or officer succeeding to the
principal functions of the authority, or to which the powers
conferred upon the authority by this chapter shall be given by law.
   (d) "Bonds" or "revenue bonds" means bonds, notes, lease
obligations, certificates of participation, commercial paper, and any
other evidences of indebtedness.
   (e) "Cost," as applied to all or part of a project financed or
refinanced pursuant to this chapter, means and includes all or any
part of the cost of any of the following:
   (1) Construction.
   (2) Acquisition or improvement of all lands, structures, real or
personal property, rights, rights-of-way, franchises, easements, and
interests acquired or used for a project.
   (3) Demolition or removal of any buildings or structures on land
acquired for a project, including the acquisition of any lands to
which the buildings or structures may be moved.
   (4) All machinery and equipment.
   (5) Financing or refinancing charges, including, but not limited
to, credit enhancement costs, and prepayment penalties.
   (6) Interest  prior to   before  ,
during, and for a period following, the completion of any
construction or improvement determined by the authority.
   (7) Provisions for working capital.
   (8) Reserves for principal and interest, and for extensions,
enlargements, additions, replacements, renovations, and improvements.

   (9) Engineering, architectural, financial, and legal services,
plans, specifications, studies, surveys, estimates, administrative
expenses, and other expenses necessary or incident to the
construction, acquisition, or improvement of any project or any
financing or refinancing under this chapter.
   (f) "Educational facility" means any property, facility,
structure, equipment, or furnishings used or operated in conjunction
with one or more public schools, including charter schools, or
community colleges, including, but not limited to, all of the
following:
   (1) Classrooms.
   (2) Auditoriums.
   (3) Student centers.
   (4) Administrative offices.
   (5) Sports facilities.
   (6) Maintenance, storage, or utility facilities.
   (7) All necessary or usual attendant and related facilities and
equipment, including streets, parking, and supportive service
facilities or structures required or useful for the effective
operation of the educational facility.
   (g) "Participating party" means  a   : 
    (1)     A  school district, charter
school, county office of education, or community college district
that undertakes, itself or through an agent, the financing or
refinancing of a project or of working capital pursuant to this
chapter.  "Participating 
    (2)     Any person, company, association,
state or municipal government entity, partnership, firm, or other
entity or group of entities that undertakes t   he financing
or refinancing of a project pursuant to this chapter in conjunction
with an entity described in paragraph (1). 
    (3)     "Participating  party" shall
also be deemed to refer to the agent to the extent the agent is
acting on behalf of the school district, charter school, county
office of education, or community college district for any purpose of
this chapter. 
   (4) For purposes of subdivision (d) of Section 17183, and Section
17193.5, subdivisions (a) and (b) of Section 17199.1, and Section
17199.4, "participating party" shall be deemed to refer to an entity
described in paragraph (1) in conjunction with which an entity
described in paragraph (2), if any, applied for financing from the
authority. 
   (h) "Project" means the acquisition, construction, expansion,
remodeling, renovation, improvement, furnishing, or equipping of an
educational facility to be financed or refinanced pursuant to this
chapter. "Project" may include any combination of the foregoing
undertaken jointly by any participating district with one or more
other participating parties.
   (i) "Working capital" means funds to be used by, or on behalf of,
a participating party to pay maintenance or operating expenses, or
any other costs that would be treated as an expense item under
generally accepted accounting principles in connection with the
ownership or operation of an educational facility, including, but not
limited to, all of the following:
   (1) Reserves for maintenance or operating expenses.
   (2) Interest for a period not to exceed two years on any loan for
working capital made pursuant to this chapter.
   (3) Reserves for debt service, and any other costs necessary or
incidental to, financing pursuant to this chapter.
   (4) Payments made by a participating party for the rent or lease
of an educational facility.
   (j) "Certificate of participation" means an undivided interest in
one or more bonds, leases, loans, installment sales, or other
agreements of a participating party or parties.
   (k) "Charter school" means a school established pursuant to Part
26.8 (commencing with Section 47600)  of Title 2  .
   SEC. 31.    Section 17180 of the   Education
Code   is amended to read: 
   17180.  The authority is hereby authorized to do all of the
following:
   (a) Adopt bylaws for the regulation of its affairs and the conduct
of its business.
   (b) Adopt an official seal.
   (c) Sue and be sued in its own name.
   (d) Receive and accept gifts, grants, or donations of money for
any of the purposes of this chapter from any of the following:
   (1) A federal agency.
   (2) A state agency.
   (3) A municipality, county, or other political subdivision of the
state.
   (4) An individual, association, or corporation.
   (e) Engage the services of private consultants to render
professional and technical assistance and advice in carrying out the
purposes of this chapter.
   (f) (1) Determine the location and character of any project to be
financed or refinanced under this chapter, and acquire, construct,
enlarge, remodel, renovate, alter, improve, furnish, equip, own,
maintain, manage, repair, operate, lease as lessee or lessor, or
regulate the same.
   (2) Designate a participating party as its agent, with authority
to enter into contracts, for any of the purposes specified in
paragraph (1).
   (3) Enter into contracts for any of the purposes specified in
paragraph (1).
   (4) Enter into contracts for the management and operation of a
project owned by the authority.
   (g) Acquire, directly or by and through a participating party as
its agent, by purchase solely from funds provided pursuant to this
chapter, or by gift or devise, and sell, by installment or otherwise,
property, rights, rights-of-way, franchises, easements, and other
interests in lands, including, but not limited to, lands lying under
water, and riparian rights, located within the state that the
authority deems necessary or convenient for the acquisition,
construction, financing, or operation of a project. The authority may
do so upon the terms, and at the prices, it considers reasonable and
upon which it can agree with the owner, and may take the title to
the interest in the name of the authority or in the name of a
participating party as its agent.
   (h) Receive and accept from any source loans, contributions, or
grants for, or in aid of, the construction, financing, or refinancing
of all or part of a project, in the form of money, property, labor,
or other things of value.
   (i) Pursuant to an agreement between the authority and the
participating party, make, directly or through a lending institution,
secured or unsecured loans to  a participating party  , or
purchase secured or unsecured loans from  a participating party
 , or purchase all or part of any  participating party's
 rights to or possibilities regarding the state share of funding
for school facilities approved by the State Allocation Board
pursuant to Chapter 12.5 (commencing with Section 17070.10). The
purchase of all or part of any rights to, or possibilities regarding,
the state contribution for funding for school facilities approved by
the State Allocation Board shall be limited to amounts approved and
funded or amounts approved but not yet funded from proceeds of state
bonds already authorized by the electors but not yet issued. Loans or
purchases completed pursuant to this section may be used to finance
or refinance a project or provide working capital. A loan to finance
or refinance a project shall not exceed the total cost of the
project, as determined by the participating party and approved by the
authority.
   (j) Upon the terms and conditions the authority deems proper,
lease a project being financed or refinanced pursuant to this chapter
to a participating party, and charge and collect rent therefor. The
authority may terminate a lease pursuant to this subdivision upon the
lessee's failure to comply with any of its obligations under the
lease. The lease may include any of the following provisions:
   (1) That the lessee shall have the option to renew the term of the
lease for the period or periods, and at the rent, determined by the
authority, or to purchase any or all of the project.
   (2) That upon payment by the participating party of all of the
indebtedness incurred by the authority for the financing of the
project or for the refinancing of the participating party's
outstanding indebtedness, the authority may convey any or all of the
project to the lessee or lessees, with or without further
consideration.
   (k) Charge and equitably apportion among participating parties its
administrative costs and expenses incurred pursuant to this chapter.

   (  l  ) (1) Obtain, or aid in obtaining, from any state
or federal agency or any private company, any insurance, guarantee,
letter, or line of credit regarding, or of, or for, the payment or
repayment of all or part of the interest, principal, or both, on any
loan, lease, or obligation, or any instrument evidencing or securing
the same, made or entered into pursuant to this chapter, or on any
bonds issued pursuant to this chapter.
   (2) Notwithstanding any other provision of this chapter, enter
into any agreement, contract, or any other instrument regarding any
insurance, guarantee, letter, or line of credit specified in
paragraph (1), and accept payment in the manner and form provided
 therein in the event of default by   in the
agreement, contract, or instrument if  a participating party
 defaults  .
   (3) Assign any insurance, guarantee, letter, or line of credit
specified in paragraph (1) as security for bonds issued by the
authority.
   (m) Enter into any agreements or contracts, including, but not
limited to, agreements for liquidity or credit enhancement, execute
any instruments, and any other act or thing necessary, convenient, or
desirable for the purposes of the authority or to carry out any
express power granted the authority pursuant to this chapter.
   (n) At the discretion of the authority, invest any moneys held in
reserve or in sinking funds, or any moneys not required for immediate
use or disbursement, in obligations authorized by the resolution
authorizing the bonds secured by the investment, or by law governing
the investment of trust funds in the custody of the Treasurer.
   (o) Adopt guidelines for grants, bonds, and other evidences of
indebtedness.
   SEC. 32.    Section 17183 of the   Education
Code   is amended to read: 
   17183.  (a) From time to time, the authority  may
 , by resolution,  may  issue its revenue bonds in
order to provide funds for any of the purposes of this chapter. Bonds
may be issued to finance  or refinance  any of the
following:
   (1) A single project or financing of working capital for a single
participating party.
   (2) A series of projects or financings of working capital for a
single participating party.
   (3) A single project or financing of working capital for several
participating parties.
   (4) Several projects or  financing  
financings  of working capital for several participating
parties.
   (5) A joint venture school facilities construction project
undertaken pursuant to Article 5 (commencing with Section 17060) of
Chapter 12.
   (b) Except as otherwise expressly provided by the authority, all
revenue bonds shall be payable from any available revenues or moneys
of the authority not otherwise pledged, subject only to any
agreements with holders of particular bonds or notes pledging any
particular revenue or moneys. Notwithstanding that revenue bonds
issued pursuant to this section may be payable from a special fund,
the revenue bonds shall be, and shall be deemed to be for all
purposes, negotiable instruments, subject only to the provisions of
the revenue bonds for registration.
   (c) The revenue bonds of the authority may be issued as serial
bonds, term bonds, or the authority, in its discretion, may issue
bonds of both types. The issuance shall be in accordance with the
indenture, trust agreement, or resolution relating to the revenue
bonds, which shall provide all of the following:
   (1) The date or dates of the bonds.
   (2) The date or dates upon which the bonds will mature, not to
exceed 40 years from their respective dates.
   (3) The interest rate or rates, or methods of determining the
interest rate or rates, of the bonds.
   (4) When the bonds are payable.
   (5) The denominations of the bonds.
   (6) The form of the bonds, which shall be either bearer or
registered.
   (7) The registration privileges of the bonds.
   (8) The manner in which the bonds are to be executed.
   (9) The place or places at which the bonds shall be payable in
lawful money of the United States of America.
   (10) The terms of redemption of the bonds.
   (d) After giving due consideration to the recommendations of the
participating party or parties, the revenue bonds of the authority
shall be sold by the Treasurer at either a public or private sale at
a price or prices, and upon the terms and conditions prescribed by
the authority. The revenue bonds of the authority may be sold at,
above, or below the par value of the bonds.
   (e) Pending the preparation of the definitive bonds, the authority
may issue interim receipts or certificates or temporary bonds that
shall be exchanged for the definitive bonds.
   (f) Any resolution authorizing the issuance of any bonds of the
authority, or any issue of revenue bonds of the authority, may
include any of the following provisions:
   (1) Provisions pledging all or any part of the proceeds of the
bonds or revenue of a project or loan.
   (2) Provisions concerning the replacement of mutilated, destroyed,
stolen, or lost bonds.
   (3) Provisions specifying insurance to be maintained on the
project and the authorized uses of the proceeds of the insurance.
   (4) Covenants against the mortgaging or otherwise encumbering,
selling, leasing, pledging, placing a charge upon, or otherwise
disposing of the project  prior to   before
 the payment of the bonds issued to finance the project.
   (5) Provisions specifying the events of default, terms upon which
the bonds may be declared due before maturity, and the terms upon
which the declaration and its consequences may be waived.
   (6) The rights, liabilities, powers, and duties arising upon the
breach of any covenants, conditions, or obligations.
   (7) Vesting of the right to enforce covenants in a trustee.
   (8) The terms upon which all or any percentage of the bondholders
may enforce covenants or duties.
   (9) Procedures for amending the terms of the resolution, with or
without the consent of the holders of a specified number of bonds.
   (10) Provision for any other acts or things deemed necessary,
convenient, or desirable by the authority to secure the bonds or
improve their marketability.
   (g) The validity of the authorization and issuance of any bond
issue shall not be affected by proceedings for the acquisition,
construction, or improvement of any project, or by contracts relating
to those proceedings. Any resolution authorizing the issuance of any
bonds of the authority may provide authorization for the bonds to
bear a statement certifying that they are issued pursuant to this
chapter. Bonds bearing that statement shall be conclusively deemed
valid and issued in conformity with this chapter. Reference on the
face of the bonds to the resolution by its date of adoption shall
incorporate the provisions of the resolution and of this chapter into
the terms of the bonds.
   (h) Members of the authority, or any person executing the revenue
bonds of the authority, shall not incur personal liability on the
bonds, nor shall these persons incur personal liability or
accountability by reason of the issuance of the revenue bonds of the
authority.
   (i) The authority is authorized, out of any funds available for
that purpose, to purchase revenue bonds of the authority. The
authority may hold, pledge, cancel, or resell any bonds purchased
under the authority of this subdivision, subject to, and in
accordance with, agreements with bondholders.
   (j) The financing or refinancing of projects or working capital
may be provided pursuant to this chapter by means other than revenue
bonds, at the discretion of the authority, including financing or
refinancing through certificates of participation, or other
interests, in bonds, loans, leases, installment sales, or other
agreements of the participating party or parties. In this connection,
the authority may do all things and execute and deliver all
documents and instruments as may be necessary or desirable with
regard to issuance of the certificates of participation or other
means of financing or refinancing.
   (k) The authority may by resolution issue its revenue bonds in the
form of commercial paper.
   SEC. 33.    Section 17193.5 of the  
Education Code   is amended to read: 
   17193.5.  (a) For purposes of this section, "public credit
provider" means any financial institution or combination of financial
institutions, that consists either solely, or has as a member or
participant, a public retirement system. Notwithstanding any other
 provision of  law, a public credit provider
 may  , in connection with providing credit
enhancement for bonds, notes, certificates of participation, or other
evidences of indebtedness of a participating party,  may 
require the participating party to agree to the following conditions:

   (1) If a participating party adopts a resolution by a majority
vote of its board to participate under this section, it shall provide
notice to the Controller of that election. The notice shall include
a schedule for the repayment of principal and interest on the bonds,
notes, certificates of participation, or other evidence of
indebtedness and identify the public credit provider that provided
credit enhancement. The notice shall be provided not later than the
date of issuance of the bonds.
   (2) If, for any reason a public credit provider is required to
make principal or interest payments or both pursuant to a credit
enhancement agreement, the public credit provider shall immediately
notify the Controller of that fact and of the amount paid out by the
public credit provider.
   (3) Upon receipt of the notice required by paragraph (2), the
Controller shall make an apportionment to the public credit provider
in the amount of the payments made by the public credit provider for
the purpose of reimbursing the public credit provider for its
expenditures made pursuant to the credit enhancement agreement. The
Controller shall make that apportionment only from moneys designated
for apportionments to a school district pursuant to Section 42238 or
to a county office of education pursuant to Section 2558 or to the
community college district pursuant to Section 84750, or in the case
of a charter school, pursuant to  Section  
Sections  47633  , 47634.1, and 47634.2  .
                                                                (b)
The amount apportioned for a participating party pursuant to this
section shall be deemed to be an allocation to the participating
party for purposes of subdivision (b) or Section 8 of Article XVI of
the California Constitution. For purposes of computing revenue limits
or revenue levels pursuant to Section 42338 for any school district
or pursuant to Section 2558 for any county office of education or
pursuant to Section 84750 for any community college district, the
revenue limit or revenue level for any fiscal year in which funds are
apportioned for the district or for the county office of education
pursuant to this section shall include any amounts apportioned by the
Controller pursuant to paragraph (3) of subdivision (a). For
 the  purposes of computing the general-purpose
entitlement of a charter school pursuant to Section 47633, that
entitlement shall include any amounts apportioned by the Controller
pursuant to paragraph (3) of subdivision (a).  For purposes of
computing the categorical block grant of a charter school pursuant to
Section 47634.1 or 47634.2, that grant shall include any amounts
apportioned by the Controller pursuant to paragraph (3) of
subdivision (a).  The participating party and its creditors do
not have a claim to funds apportioned or anticipated to be
apportioned to the trustee by the Controller pursuant to paragraph
(3) of subdivision (a).
   SEC. 34.    Section 17199.1 of the  
Education Code   is amended to read: 
   17199.1.  (a) Any participating party, exclusively for the purpose
of securing financing or refinancing of projects or working capital
pursuant to this chapter through the issuance, by the authority, of
revenue bonds, certificates of participation, or other means, and
notwithstanding any other  provision of  law, may
 : (1) sell   do any of the following: 
    (1)     Sell  to the authority all or
part of any rights to or possibilities regarding the state's share of
funding for school facilities approved by the State Allocation Board
pursuant to Chapter 12.5 (commencing with Sec. 17070.10)  ,
 including amounts apportioned and funded and amounts approved
but not yet funded by the State Allocation Board from proceeds of
state bonds already authorized by the electors but not yet issued
 ; (2) issue   . 
    (2)     Issue  bonds to the authority
 ; or (3) borrow   . 
    (3)     Borrow  money or purchase or
lease educational facilities from the authority, and in connection
 therewith   with the borrowing, purchase, or
lease  , sell or lease property to the authority, in each case
at any interest rate or rates, rental provisions, with any maturity
date or dates or term, and with any other transfer, assignment,
payment, security, default, remedy, and other terms or provisions as
may be specified in the sale of rights agreement or the bonds of the
participating party or a loan, loan purchase, installment sale,
lease, or other agreement between the authority and the participating
party, subject to the following conditions:
   (A)  (i)    The sum of the amount borrowed to
finance  or refinance  working capital and the interest
payable  thereon   on the working capital
assumed  at the initial interest rate if interest is variable,
shall not exceed 85 percent of the estimated amount of uncollected
taxes, income, revenue, cash receipts, and other funds  to be
 received by the participating party, which  will
  : 
    (I)     In the case of a school district,
community college district, or county office of education, will 
be available in  any   the  fiscal year
 for   of the   borrowing. 
    (II)     In the case of a charter school,
will be available during the term of the loan, for  the
repayment of the loan and the interest  thereon 
 on the loan  .  For 
    (ii)     For  purposes of this
paragraph, "revenue" includes, but is not limited to, federal and
state funds received by the participating party.
   (B) In computing the maximum amount that may be borrowed 
in any fiscal year  pursuant to subparagraph (A), the
participating party may exclude the amount of any principal or
interest  which   that  is secured by a
pledge of the amount in any inactive or term deposit of the
participating party  which   that  has a
term scheduled to terminate  during that fiscal year
  : 
    (i)     In the case of a school district,
community college district, or county office of education, during the
fiscal year of the borrowing  . 
   (ii) In the case of a charter school, during the term of the loan.

   (C) A participating party that borrows money to finance  or
refinance  working capital pursuant to this subdivision shall be
required to repay and discharge the loan, including interest, within
15 months of the loan date.
   (D) In enacting this chapter, it is the intent of the Legislature
to provide financing  or refinancing  of working capital
needed to cover temporary or cashflow deficits and needs for working
capital and not long-term budget deficits or shortfalls in funding.
The participating party must demonstrate to the satisfaction of the
authority that, during the term of any working capital loan received
pursuant to this chapter, the participating party will receive or
otherwise have (without additional borrowing) sufficient funds to
repay and discharge the loan. The participating party may take into
account all funds received by the participating party and may base
future projections upon historical experience or reasonable
expectations, or a combination  thereof   of
both  .
   (b) Notwithstanding Sections 700, 703, and 1045 of the Civil Code,
the rights and possibilities that a participating party may have or
obtain in the future to an approved state contribution to funding for
school facilities pursuant to Chapter 12.5 (commencing with 
Sec.   Section  17070.10) that remains unfunded
pending the issuance of state bonds already authorized by the
electors shall constitute property for all purposes and may be
transferred as provided in subdivision (a). In the case of any
transfer or assignment of rights or possibilities relating to funds
for which bonds have been approved by the voters but are not yet
available, the transfer or assignment shall be approved by resolution
of the State Allocation Board  prior to  
before  becoming effective.
   (c) Any participating party may enter into any agreement for
liquidity or credit enhancement, with any reimbursement, payment,
interest, security, default, remedy, and other terms it may deem
necessary or appropriate in connection with the issuance of bonds,
the borrowing of money  ,  or the lease or purchase of
educational facilities, whichever is applicable. Any participating
party or parties  may  also  may  do all
things and execute all documents as may be necessary or desirable in
connection with the issuance of certificates of participation, or
other interests, in any bond, loan, note, installment sale, lease, or
other agreement of the participating party.
   (d) A school district  may   ,  by
resolution  , may  authorize any county or city board of
education or superintendent of schools, a community college district
 may   ,  by resolution  , may 
authorize the Board of Governors of the California Community Colleges
or the Chancellor of the California Community Colleges, and a
charter school  may   ,  by resolution 
, may  authorize its chartering entity or educational
management organization, to act as its agent in the performance of
any of the matters permitted by this section or any other provision
of this chapter. Notwithstanding any other  provision of
 law, the agent shall have the powers granted by the
resolution for purposes of this chapter. The resolution shall be
deemed to bind the school district, charter school, or community
college district, as the case may be, to any contract, agreement,
instrument, or other document executed by the agent on behalf of the
school district, charter school, or community college district, and
all duties, obligations, or responsibilities contained 
therein   in the contract, agreement, instrument, or
other document  on the part of the school district, charter
school, or community college district, to the same extent as if duly
authorized, executed, and delivered by the school district, charter
school, or community college district.
   (e) This section shall be deemed to provide a complete,
additional, and alternative method for accomplishing the acts
authorized by this section, and the sale or transfer of any rights to
or possibilities regarding the state share of funding for school
facilities approved by the State Allocation Board  , 
including amounts apportioned and funded and amounts approved but not
yet funded from proceeds of state bonds already authorized by the
electors but not yet issued, issuance of bonds to, borrowing of money
from, or sale or purchase or lease of educational facilities from or
to, the authority. Any agreement entered into in connection with the
transfer of any rights to or possibilities regarding the state
contribution for funding for school facilities pursuant to Chapter
12.5 (commencing with Section 17070.10), including amounts
apportioned and funded and amounts approved but not yet funded by the
State Allocation Board from proceeds of state bonds already
authorized by the electors but not yet issued, or the issuance of
bonds, the borrowing of money  ,  or the sale, purchase, or
lease of educational facilities, including, without limitation, any
agreement for liquidity or credit enhancement under this section,
need not comply with the requirements of any other law applicable to
issuance of bonds, borrowing, selling, purchasing, leasing, pledge,
encumbrance, or credit, as the case may be, by a school district,
charter school, or community college district, or by a county or city
board of education or superintendent of schools, or the Board of
Governors of the California Community Colleges or Chancellor of the
California Community Colleges, or the governing board of a charter
school, chartering entity, or educational management organization.
   SEC. 35.    Section 17199.3 of the  
Education Code   is amended to read: 
   17199.3.  (a) The total amount of revenue bonds  which
  that  may be issued and outstanding at any time
for purposes of this chapter, other than those revenue bonds issued
under Section 17199.4, shall not exceed four hundred million dollars
($400,000,000).
   (b) The total amount that may be outstanding at any time under
this chapter, for purposes of Section 17199.4 only, shall not exceed
four billion dollars ($4,000,000,000).
   (c) For purposes of subdivisions (a) and (b), bonds  which
  that  meet any of the following conditions shall
not be deemed to be outstanding:
   (1) Bonds  which   that  have been
refunded pursuant to Section 17188.
   (2) Bonds for which money or securities in amounts necessary to
pay or redeem the principal, interest, or any redemption premium on
the bonds have been deposited in trust.
   (3) Bonds  which   that  have been
issued to  provide  finance or refinance 
working capital.
   SEC. 36.    Section 17199.4 of the  
Education Code   is amended to read: 
   17199.4.  (a) Notwithstanding any other law, any participating
party, in connection with securing financing or refinancing of
projects, or working capital pursuant to this chapter, may elect to
guarantee or provide for payment of the bonds  and related
obligations  in accordance with the following conditions:
   (1) If a participating party adopts a resolution by a majority
vote of its board to participate under this section, it shall provide
notice to the Controller of that election. The notice shall include
a schedule for the repayment of principal and interest on the bonds,
and any other costs necessary or incidental to financing pursuant to
this chapter, and identify a trustee appointed by the participating
party or the authority for purposes of this section.  If payment
of all or a portion of the principal and interest on the bond is
secured by a letter of credit or other instrument of direct payment,
the notice may provide for reimbursements to the provider of the in
  strument in lieu of payment of that portion of the
principal and interest of the bonds.  The notice shall be
provided not later than the date of issuance of the bonds or 60 days
 prior to   before  the next payment,
whichever date is later. The participating party shall update the
notice at least annually if there is a change in the required payment
for any reason, including, but not limited to, providing for new or
increased costs necessary or incidental to the financing.
   (2) If, for any reason, the participating party will not make a
payment at the time the payment is required, the participating party
shall notify the trustee of that fact and of the amount of the
deficiency. If the trustee receives this notice from the
participating party, or does not receive any payment by the date that
payment becomes due, the trustee shall immediately communicate that
information to the Controller.
   (3) Upon receipt of the notice required by paragraph (2), the
Controller shall make an apportionment to the trustee on the date
shown in the schedule in the amount of the deficiency for the purpose
of making the required payment. The Controller shall make that
apportionment only from moneys in Section A of the State School Fund
designated for apportionment to a school district pursuant to Section
42238 or to the county office of education pursuant to Section 2558,
or in the case of a charter school, pursuant to  Section
  Sections  47633  , 47634.1, and 47634.2 
.
   (4) As an alternative to the procedures set forth in paragraphs
(2) and (3), the participating party may provide a transfer schedule
in its notice to the Controller of its election to participate under
this section. The transfer schedule shall set forth amounts to be
transferred to the trustee and the date for the transfers. The
Controller  shall  , subject to the limitation in
paragraph (3),  shall  make apportionments to the trustee of
those amounts on the specified date for the purpose of making those
transfers. The authority may require a participating party to proceed
under this subdivision.
   (b) (1) The amount apportioned for a participating party pursuant
to this section shall be deemed to be an allocation to the
participating party for purposes of subdivision (b) of Section 8 of
Article XVI of the California Constitution.
   (2) For purposes of computing revenue limits pursuant to Section
42238 for any school district or pursuant to Section 2558 for any
county office of education, the revenue limit for any fiscal year in
which funds are apportioned for the participating party pursuant to
this section shall include any amounts apportioned by the Controller
pursuant to paragraphs (3) and (4) of subdivision (a).
   (3) For  the  purposes of computing the
general-purpose entitlement of a charter school pursuant to Section
47633, that entitlement shall include any amounts apportioned by the
Controller pursuant to paragraphs (3) and (4) of subdivision (a).
 For purposes of computing the categ   orical block
grant of a charter school pursuant to Section 47634.1 or 47634.2,
that grant shall include any amounts apportioned by the Controller
pursuant to paragraphs (3) and (4) of subdivision (a).  The
participating party and its creditors do not have a claim to funds
apportioned or anticipated to be apportioned to the trustee by the
Controller pursuant to paragraph (3) and (4) of subdivision (a), or
to the funds apportioned to by the Controller to the trustee under
any other provision of this section.
   (c) (1)  Participating parties that elect to participate under
this section shall apply to the authority. The authority shall
consider each of the following priorities in making funds available:
   (A) First priority shall be given to school districts, charter
schools, or county offices of education that apply for funding for
instructional classroom space.
   (B) Second priority shall be given to school districts, charter
schools, or county offices of education that apply for funding of
modernization of instructional classroom space.
   (C) Third priority shall be given to all other eligible costs, as
defined in Section 17173.
   (2) The authority shall prioritize applications at appropriate
intervals.
   (3) A school district electing to participate under this section
that has applied for revenue bond moneys for  the 
purposes of joint venture school facilities construction projects,
pursuant to Article 5 (commencing with Section 17060) of Chapter 12,
shall not be subject to the priorities set forth in paragraph (1).
   (d) This section shall not be construed to make the State of
California liable for any payments within the meaning of Section 1 of
Article XVI of the California Constitution or otherwise, except as
expressly provided in this section.
   (e) A school district that has a qualified or negative
certification pursuant to Section 42131, or a county office of
education that has a qualified or negative certification pursuant to
Section 1240, may not participate under this section.
   SEC. 37.    Section 17199.6 is added to the 
 Education Code   , to read:  
   17199.6.  The authority is delegated exclusive control over the
use and allocation of the volume cap described in Section 142(k) of
the federal Internal Revenue Code, or successor provisions of the
Internal Revenue Code. The board of the authority, by resolution, may
use the volume cap for obligations issued by the authority or
allocate the volume cap to any party. 
   SEC. 37.1.    Section 17230 of the   
 Education Code   is amended to read: 
   17230.  Notwithstanding the provisions of Article 4 (commencing
with Section 17455) of Chapter 4  of this part  and
in addition to the requirements placed upon school districts pursuant
to Section 54222 of the Government Code, the governing board of
 any   a  school district may sell, for
less than fair market value,  any   a 
schoolsite that is deemed to be surplus property of the  school
 district  and for which a charter school has not accepted
an offer to purchase or lease pursuant to Section 17457.5  , to
 any   a  park district, city, or county in
which the school district is wholly or partially situated for use or
partial use as park or recreational purposes or open-space purposes
if the governing board  of the school district  adopts a
resolution specifying that it will sell or transfer the property for
less than fair market value to such an entity for that purpose. The
offer to sell shall be made in writing, but the terms by which the
property may be sold or transferred need not be specifically
provided.
   SEC. 37.3.    Section 17457.5 is added to the 
 Education Code   , to read:  
   17457.5.  (a) Notwithstanding Article 8 (commencing with Section
54220) of Chapter 5 of Part 1 of Division 2 of Title 5 of the
Government Code, the governing board of a school district seeking to
sell or lease real property designed to provide direct instruction or
instructional support it deems to be surplus property shall first
offer that property for sale or lease to any charter school that has
submitted a written request to the school district to be notified of
surplus property offered for sale or lease by the school district,
pursuant to the following conditions:
   (1) The real property sold or leased shall be used by the charter
school exclusively to provide direct instruction or instructional
support, for a period of not less than five years from the date upon
which the real property is made available to that charter school,
pursuant to the sale, or, in the event of a lease, until the real
property is returned to the possession of the school district,
whichever occurs earlier.
   (2) In the event that the charter school fails to comply with the
condition set forth in paragraph (1), the charter school that
purchased the real property is required to immediately offer that
real property for sale pursuant to this article and Article 5
(commencing with Section 17485) and to sell the property pursuant to
those provisions. The charter school shall comply, in that regard,
with all requirements under those provisions that would otherwise
apply to a school district, except that a sale price computed under
subdivision (a) of Section 17491 shall be based upon the cost of
acquisition incurred by the school district that sold the property
pursuant to this subdivision, rather than that incurred by the
charter school. In the event, alternatively, of a lease of real
property pursuant to this subdivision, the failure by the charter
school to comply with paragraph (1) shall constitute a breach of the
lease, entitling the school district to immediate possession of the
real property, in addition to any damages to which the school
district may be entitled under the lease agreement.
   (3) The school district, and each of the entities authorized to
receive offers of sale pursuant to this article or Article 5
(commencing with Section 17485), has standing to enforce the
conditions set forth in this subdivision, and shall be entitled to
the payment of reasonable attorney's fees incurred as a prevailing
party in any action or proceeding brought to enforce any of those
conditions.
   (b) A school district seeking to sell or lease real property
designed to provide direct instruction or instructional support it
deems to be surplus property shall provide a written offer to any
charter school that has submitted a written request to the school
district to be notified of surplus property offered for sale or lease
by the school district. A charter school desiring to purchase or
lease the property shall, within 60 days after a written offer is
received, notify the school district of its intent to purchase or
lease the property. In the event more than one charter school
notifies the school district of their intent to purchase or lease the
property, the governing board of the school district may determine
to which charter school to sell or lease the property.
   (c) The price at which property described in this section is sold
pursuant to this section shall not exceed the school district's cost
of acquisition, adjusted by a factor equivalent to the percentage
increase or decrease in the cost of living from the date of purchase
to the year in which the offer of sale is made, plus the cost of any
school facilities construction undertaken on the property by the
school district since its acquisition of the land, adjusted by a
factor equivalent to the increase or decrease in the statewide cost
index for class B construction, as annually determined by the State
Allocation Board pursuant to Section 17072.10, from the year the
improvement is completed to the year in which the sale is made. In
the event a statewide cost index for class B construction is not
available, the school district shall use a factor equal to the
average statewide cost index for class B construction for the
preceding 10 calendar years. In no event shall the price be less than
25 percent of the fair market value of the property described in
this section or less than the amount necessary to retire the share of
local bonded indebtedness plus the amount of the original cost of
the approved state aid applications on the property. The percentage
of annual increase or decrease in the cost of living shall be the
amount shown for January 1 of the applicable year by the then current
Bureau of Labor Statistics Consumers Price Index for the area in
which the schoolsite is located.
   (d) Land that is leased pursuant to this section shall be leased
at an annual rate of not more than 5 percent of the maximum sales
price determined pursuant to subdivision (c), adjusted annually by a
factor equivalent to the percentage increase or decrease in the cost
of living for the immediately preceding year. The percentage of
annual increase or decrease in the cost of living shall be the amount
shown for January 1 of the applicable year by the then current
Bureau of Labor Statistics Consumers Price Index for the area in
which the schoolsite is located.
   (e) The sale or lease of the real property of a school district,
as authorized under subdivision (a), shall not occur until the school
district advisory committee has held hearings pursuant to
subdivision (c) of Section 17390.
   (f) This section shall only apply to real property identified by a
school district as surplus property after July 1, 2012.
   (g) This section shall become inoperative on June 30, 2013, and,
as of January 1, 2014, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2014, deletes or
extends the dates on which it becomes inoperative and is repealed.

   SEC. 37.5.    Section 17458 of the   
 Education Code   is amended to read: 
   17458.  (a) Notwithstanding Article 8 (commencing with Section
54220) of Chapter 5 of Part 1 of Division 2 of Title 5 of the
Government Code, the governing board of  any   a
 school district complying with Section  101338.2
  101238.2  of Title 22 of the California 
Administrative Code  Code of Regulations  and
seeking to sell or lease  any  real property it
deems to be surplus property  and for which a charter school has
not accepted an offer to purchase or lease pursuant to Section
17457.5,  may first offer that property for sale
                              or lease to  any  
a  contracting agency, as defined in Section 8208  of
the Education Code  , pursuant to the following conditions:
   (1) The real property sold or leased shall be used by the
contracting agency, or by  any   a 
successor in interest to the contracting agency, exclusively for the
delivery of child care and development services, as defined in
Section 8208  of the Education Code  , for a period
of not less than five years from the date upon which the real
property is made available to that agency, or successor in interest,
pursuant to the sale, or, in the event of a lease, until the real
property is returned to the possession of the school district,
whichever occurs earlier.
   (2) In the event that the contracting agency, or any successor in
interest, fails to comply with the condition set forth in paragraph
(1), that agency, or successor in interest, that purchased the real
property, is required immediately to offer that real property for
sale pursuant to this article and Article 5 (commencing with Section
17485) and to sell the property pursuant to those provisions. The
agency, or its successor in interest, shall comply, in that regard,
with all requirements under those provisions that would otherwise
apply to a school district, except that a sale price computed under
subdivision (a) of Section 17491 shall be based upon the cost of
acquisition incurred by the school district that sold the property
pursuant to this subdivision, rather than that incurred by the
contracting agency or its successor in interest. In the event,
alternatively, of a lease of real property pursuant to this
subdivision, the failure by the contracting agency, or any successor
in interest, to comply with paragraph (1) shall constitute a breach
of the lease, entitling the school district to immediate possession
of the real property, in addition to any damages to which the 
school  district may be entitled under the lease agreement.
   (3) The school district, and each of the entities authorized to
receive offers of sale pursuant to this article or Article 5
(commencing with Section 17485), has standing to enforce the
conditions set forth in this subdivision, and shall be entitled to
the payment of reasonable attorneys' fees incurred as a prevailing
party in any action or proceeding brought to enforce any of those
conditions.
   (b) No sale or lease of the real property of  any
  a  school district, as authorized under
subdivision (a), may occur until the school district advisory
committee has held hearings pursuant to subdivision (c) of Section
17390.
   (c) This section is in addition to, and shall not limit the
requirements of, Article 5 (commencing with Section 17485), but this
section may be  utilized   used  with
regard to property  which   that  the
governing board of a school district may retain under Section 17490.
   SEC. 37.7.    Section 17464 of the   
 Education Code   is amended to read: 
   17464.  Except as provided for in Article 2 (commencing with
Section 17230) of Chapter 1, the sale or lease with an option to
purchase of real property by a school district shall be in accordance
with the following priorities and procedures:
   (a) First, the  property shall be offered for sale or lease
pursuant to Section 17457.5 to any interested charter school for
purposes of providing direct instruction or instructional support.

    (b)     Second, the  property shall be
offered for park or recreational purposes pursuant to Article 8
(commencing with Section 54220) of Chapter 5 of Part 1 of Division 2
of Title 5 of the Government Code, in any instance in which that
article is applicable. 
   (b) Second, 
    (c)     Third,  the property shall be
offered for sale or lease with an option to purchase, at fair market
value in  each   both  of the following
ways:
   (1) In writing, to the Director of General Services, the Regents
of the University of California, the Trustees of the California State
University, the county and city in which the property is situated,
to any public housing authority in the county in which the property
is situated, and to any entity referenced in paragraph (2) that has
submitted a written request to the school district to be directly
notified of the offer for sale or lease with an option to purchase
the real property by the  school  district.
   (2) By public notice to any public district, public authority,
public agency, public corporation, or any other political subdivision
in this state, to the federal government, and to nonprofit
charitable corporations existing on December 31, 1979, and organized
pursuant to Part 3 (commencing with Section 10200) of Division 2 of
Title 1 of the Corporations Code then in effect or organized on or
after January 1, 1980, as a public benefit corporation under Part 2
(commencing with Section 5110) of Division 2 of Title 1 of the
Corporations Code. Public notice shall consist of at least publishing
its intention to dispose of the real property in a newspaper of
general circulation within the  school  district, or if
there is no newspaper of general circulation in the  school 
district, then in any newspaper of general circulation that is
regularly circulated in the  school  district. The notice
shall specify that the property is being made available to all public
districts, public authorities, public agencies, and other political
subdivisions or public corporations in this state, and to other
nonprofit charitable or nonprofit public benefit corporations.

   Publication 
    (d)     Publication  of notice
pursuant to this section shall be once each week for three successive
weeks. Three publications in a newspaper regularly published once a
week or more often, with at least five days intervening between the
respective publication dates not counting the publication dates, are
sufficient. The written notice required by paragraph (1)  of
subdivision (c)  shall be mailed no later than the date of the
second published notice. 
   The 
    (e)     The  entity desiring to
purchase or lease the property shall, within 60 days after the third
publication of notice, notify the school district of its intent to
purchase or lease the property. If the entity desiring to purchase or
lease the property and the  school  district are unable to
arrive at a mutually satisfactory price or lease payment during the
60-day period, the property may be disposed of as otherwise provided
in this section. In the event the  school  district receives
offers from more than one entity pursuant to this subdivision, the
school district governing board may determine which of these offers
to accept. 
   (c) Third, 
    (f)     Fourth,  the property may be
disposed of in any other manner authorized by law. 
   This 
    (g)     This  section shall become
operative January 1, 1988.
   SEC. 37.9.    Section 17489 of the  
 Education Code   is amended to read: 
   17489.   (a)    Notwithstanding Section 54222 of
the Government Code, the governing board  of a school district
 ,  prior to   before  selling or
leasing  any   a  schoolsite containing
land described in Section 17486, excluding that portion of a
schoolsite retained by the governing board  of the school
district  pursuant to Section 17490, shall  , if a charter
school has not accepted an offer to purchase or lease the schoolsite
pursuant to Section 17457.5,  first offer to sell or lease that
portion of the schoolsite consisting of land described in Section
17486, excluding that portion retained by the governing board  of
the school district  pursuant to Section 17490, to the
following public agencies in accordance with the following
priorities: 
   (a) 
    (1)    First, to any city within which the land
may be situated. 
   (b) 
    (2)    Second, to any park or recreation
district within which the land may be situated. 
   (c) 
    (3)    Third, to any regional park authority
having jurisdiction within the area in which the land is situated.

   (d) 
    (4)    Fourth, to any county within which the
land may be situated. 
   The 
    (b)     The  governing board  of
the school district  shall have discretion to determine whether
the offer shall be an offer to sell or an offer to lease. 
   An 
    (c)     An  entity which proposes to
purchase or lease a schoolsite offered by a school district shall
notify the  school  district of its intention, in writing,
within 60 days after receiving written notification from the 
school  district of its offer to sell or lease.
   SEC. 38.    Section 17592.71 of the   
Education Code   is amended to read: 
   17592.71.  (a) There is hereby established in the State Treasury
the School Facilities Emergency Repair Account. The State Allocation
Board shall administer the account.
   (b) (1) Commencing with the 2005-06 fiscal year, an amount of
moneys shall be transferred in the annual Budget Act from the
Proposition 98 Reversion Account to the School Facilities Emergency
Repair Account, equaling 50 percent of the unappropriated balance of
the Proposition 98 Reversion Account or one hundred million dollars
($100,000,000), whichever amount is greater. Moneys transferred
pursuant to this subdivision shall be used for the purpose of
addressing emergency facilities needs pursuant to Section 17592.72.
   (2) Notwithstanding paragraph (1), for the 2008-09 fiscal year,
the amount of money to be transferred from the Proposition 98
Reversion Account to the School Facilities Emergency Repair Account
pursuant to paragraph (1) shall not exceed one hundred one million
dollars ($101,000,000).
   (3) Notwithstanding paragraph (1), for the 2009-10 fiscal year,
the amount of money to be transferred from the Proposition 98
Reversion Account to the School Facilities Emergency Repair Account
pursuant to paragraph (1) shall be zero.
   (4) Notwithstanding paragraph (1), for the 2010-11 fiscal year,
the amount of money to be transferred from the Proposition 98
Reversion Account to the School Facilities Emergency Repair Account
pursuant to paragraph (1) shall be zero.
   (5) Notwithstanding paragraph (1), for the 2011-12 fiscal year,
the amount of money to be transferred from the Proposition 98
Reversion Account to the School Facilities Emergency Repair Account
pursuant to paragraph (1) shall be zero. 
   (6) Notwithstanding paragraph (1), for the 2012-13 fiscal year,
the amount of money to be transferred from the Proposition 98
Reversion Account to the School Facilities Emergency Repair Account
pursuant to paragraph (1) shall be zero. 
   (c) The Legislature may transfer to the School Facilities
Emergency Repair Account other one-time Proposition 98 funds, except
funds specified pursuant to Section 41207, as repealed and added by
Section 6 of Chapter 216 of the Statutes of 2004. Donations by
private entities shall be deposited in the account and, for tax
purposes, be treated as otherwise provided by law.
   (d) Funds shall be transferred pursuant to this section until a
total of eight hundred million dollars ($800,000,000) has been
disbursed from the School Facilities Emergency Repair Account.
   SEC. 39.    Section 22138.5 of the  
Education Code   is amended to read: 
   22138.5.  (a) "Full time" means the days or hours of creditable
service the employer requires to be performed by a class of employees
in a school year in order to earn the compensation earnable as
defined in Section 22115 and specified under the terms of a
collective bargaining agreement or employment agreement. For the
purpose of crediting service under this part, "full time" may not be
less than the minimum standard specified in this section. Each
collective bargaining agreement or employment agreement that applies
to a member subject to the minimum standard specified in paragraph
(5) of subdivision (c) shall specify the number of hours of
creditable service that equal "full time" pursuant to this section,
and shall make specific reference to this section.
   (b) The minimum standard for full time in prekindergarten through
grade 12 is as follows:
   (1) One hundred seventy-five days per year or 1,050 hours per
year, except as provided in paragraphs (2) and (3).
   (2) (A) One hundred ninety days per year or 1,520 hours per year
for all principals and program managers, including advisers,
coordinators, consultants, and developers or planners of curricula,
instructional materials, or programs, and for administrators, except
as provided in subparagraph (B).
   (B) Two hundred fifteen days per year or 1,720 hours per year
including school and legal holidays pursuant to the policy adopted by
the employer's governing board for administrators at a county office
of education.
   (3) One thousand fifty hours per year for teachers in adult
education programs. 
   (4) Notwithstanding any other provision of this subdivision, if a
school district, county office of education, or charter school
reduces the number of days of instruction pursuant to Section 46201.4
for the 2012-13 or 2013-14 fiscal years, the minimum standard for
full time specified in paragraph (1) shall be reduced to the number
of days of instruction provided by that school district, county
office of education, or charter school and the number of hours of
instruction equal to the number of days of instruction times six. The
minimum standard for full time specified in paragraphs (2) and (3)
for that school district, county office of education, or charter
school shall be reduced by the same percentage of days and hours the
standard specified in paragraph (1) was reduced pursuant to this
paragraph. 
   (c) The minimum standard for full time in community colleges is as
follows:
   (1) One hundred seventy-five days per year or 1,050 hours per
year, except as provided in paragraphs (2), (3), (4), (5), and (6).
Full time includes time for duties the employer requires to be
performed as part of the full-time assignment for a particular class
of employees.
   (2) One hundred ninety days per year or 1,520 hours per year for
all program managers and for administrators, except as provided in
paragraph (3).
   (3) Two hundred fifteen days per year or 1,720 hours per year
including school and legal holidays pursuant to the policy adopted by
the employer's governing board for administrators at a district
office.
   (4) One hundred seventy-five days per year or 1,050 hours per year
for all counselors and librarians.
   (5) Five hundred twenty-five instructional hours per school year
for all instructors employed on a part-time basis, except instructors
specified in paragraph (6). If an instructor receives compensation
for office hours pursuant to Article 10 (commencing with Section
87880) of Chapter 3 of Part 51  of Division 7 of Title 3  ,
the minimum standard shall be increased appropriately by the number
of office hours required annually for the class of employees.
   (6) Eight hundred seventy-five instructional hours per school year
for all instructors employed in adult education programs. If an
instructor receives compensation for office hours pursuant to Article
10 (commencing with Section 87880) of Chapter 3 of Part 51  of
Division 7 of Title 3  , the minimum standard shall be increased
appropriately by the number of office hours required annually for
the class of employees.
   (d) The board has final authority to determine full time for
purposes of crediting service under this part if full time is not
otherwise specified in this section.
   SEC. 40.    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, 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.
  inoperative on December 15, 2012, and, as of January
1, 2013, is repealed, only if the Schools and Local Public Safety
Protection Act of 2012 (Attorney General reference number 12-0009) is
not approved by the voters at the November 6, 2012, statewide
general election, or if the provisions of that act that modify
personal income tax rates do not become operative due to a conflict
with another initiative measure that is approved at the same election
and receives a greater number of   affirmative votes. 

   SEC. 41.    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, 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, the California Early
Intervention Services Act established pursuant to Title 14
(commencing with Section 95000) of the Government Code, and any
appropriation made to service general obligation bond debt on behalf
of school districts, county offices of education, charter schools,
and community college districts, 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, 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, the
California Early Intervention Services Act established pursuant to
Title 14 (commencing with Section 95000) of the Government Code, or
any appropriation made to service general obligation bond debt on
behalf of school districts, county offices of education, charter
schools, and community college districts.
   (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) 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 of Division 4.
   (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 former
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 not become operative until December 15,
2012, and shall become operative only if the Schools and Local Public
Safety Protection Act of 2012 (Attorney General reference number
12-0009) is not approved by the voters at the November 6, 2012,
statewide general election, or if the provisions of that act that
modify personal income tax rates do not become operative due to a
conflict with another initiative measure that is approved at the same
election and receives a greater number of affirmative votes. If the
Schools and Local Public Safety Protection Act of 2012 (Attorney
General reference number 12-0009) is approved by the voters at the
November 6, 2012, statewide general election, and all of the
provisions of that act that modify personal income tax rates become
operative, this section shall not become operative and shall be
repealed on January 1, 2013. 
   SEC. 42.    Section 41203.1 of the  
Education Code   is amended to read: 
   41203.1.  (a) For the 1990-91 fiscal year and each fiscal year
thereafter, allocations calculated pursuant to Section 41203 shall be
distributed in accordance with calculations provided in this
section. Notwithstanding Section 41203, and for  the
 purposes of this section, school districts, community
college districts, and direct elementary and secondary level
instructional services provided by the State of California shall be
regarded as separate segments of public education, and each of these
three segments of public education shall be entitled to receive
respective shares of the amount calculated pursuant to Section 41203
as though the calculation made pursuant to subdivision (b) of Section
8 of Article XVI of the California Constitution were to be applied
separately to each segment and the base year for  the
 purposes of this calculation under paragraph (1) of
subdivision (b) of Section 8 of Article XVI of the California
Constitution were based on the 1989-90 fiscal year. Calculations made
pursuant to this subdivision shall be made so that each segment of
public education is entitled to the greater of the amounts calculated
for that segment pursuant to paragraph (1) or (2) of subdivision (b)
of Section 8 of Article XVI of the California Constitution.
   (b) If the single calculation made pursuant to Section 41203
yields a guaranteed amount of funding that is less than the sum of
the amounts calculated pursuant to subdivision (a), the amount
calculated pursuant to Section 41203 shall be prorated for the three
segments of public education.
   (c) Notwithstanding any other law, this section does not apply to
the 1992-93 to  2011-12   2012-13  fiscal
years, inclusive.
   SEC. 43.    Section 41204.2 of the  
Education Code   is repealed.  
   41204.2.  The Director of Finance shall adjust "the percentage of
General Fund revenues appropriated for school districts and community
college districts, respectively, in fiscal year 1986-87" for
purposes of applying paragraph (1) of subdivision (b) of Section 8 of
Article XVI of the California Constitution in a manner that ensures
that the shift in General Fund revenues, pursuant to Sections 6051.8,
6201.8, 6357.7, and 7361.1, subdivision (b) of Section 7360, and
subdivision (b) of Section 60050 of the Revenue and Taxation Code, as
those provisions were enacted in the 2009-10 Eighth Extraordinary
Session and 2009-10 Regular Session, and reenacted in the 2011-12
Regular Session, shall have no net fiscal impact upon the amounts
that are otherwise required to be applied by the state for the
support of school districts and community college districts pursuant
to Section 8 of Article XVI of the California Constitution. 

   SEC. 44.    Section 41204.3 of the  
Education Code   is repealed.  
   41204.3.  (a) Notwithstanding any other law, for the 2011-12
fiscal year, the Director of Finance shall adjust "the percentage of
General Fund revenues appropriated for school districts and community
college districts, respectively, in fiscal year 1986-87" for
purposes of making the calculations required under paragraph (1) of
subdivision (b) of Section 8 of Article XVI of the California
Constitution in a manner that ensures that the shift to school
districts and community college districts of local property tax
revenues pursuant to subdivision (a) of Section 34183 of the Health
and Safety Code has no net fiscal impact upon the combined amount of
General Fund proceeds of taxes and allocated local proceeds of taxes
that are otherwise required to be applied by the state for the
support of school districts and community college districts pursuant
to Section 8 of Article XVI of the California Constitution.
   (b) For purposes of Section 8 of Article XVI of the California
Constitution, the property tax revenues transferred to school
districts, county offices of education, and community college
districts pursuant to subdivision (a) of Section 34183 of the Health
and Safety Code shall constitute "allocated local proceeds of taxes."

   (c) For the 2012-13 fiscal year, and for each fiscal year
thereafter, the adjustments provided in this section shall not be
made. 
   SEC. 45.    Section 41207.6 is added to the 
 Education Code   , to read:  
   41207.6.  If the Superintendent and the Director of Finance
jointly determine that, for the 2011-12 fiscal year, the state has
applied moneys for the support of school districts and community
college districts in an amount that exceeds the minimum amount
required for the 2011-12 fiscal year pursuant to Section 8 of Article
XVI of the California Constitution, the excess, up to six hundred
seventy-one million eight hundred thirty thousand dollars
($671,830,000), shall be deemed, as of June 30, 2012, a payment of
the fiscal settlement agreed to by the parties in California Teachers
Association, et al. v. Arnold Schwarzenegger (Case Number 05CS01165
of the Superior Court for the County of Sacramento) and Chapter 213
of the Statutes of 2004 for the 2004-05 and 2005-06 fiscal years, as
determined in subdivision (a) or (b) of Section 41207.1. 
   SEC. 46.    Section 41366.6 is added to the 
 Education Code   , to read:  
   41366.6.  (a) The department shall monitor the adequacy of the
amount of funds in the Charter School Revolving Loan Fund and report
annually to the Department of Finance and the Controller on the need,
if any, to transfer funds from the Charter School Security Fund to
the Charter School Revolving Loan Fund for the sole purpose of
replacing funds lost in the Charter School Revolving Loan Fund due to
loan defaults. Before requesting any transfer of funds from the
Charter School Security Fund, the department shall make all
reasonable efforts to recover funds directly from the defaulting loan
recipient. To the extent that the department determines that a
transfer from the Charter School Security Fund to the Charter School
Revolving Loan Fund is necessary, the department shall obtain
approval from the Director of Finance before a transfer of funds is
made. Not sooner than 30 days after notification in writing to the
Chairperson of the Joint Legislative Budget Committee, the Director
of Finance shall direct the Controller to transfer the appropriate
amount of funds.
   (b) By October 1 of each year, the department shall provide
detailed fund condition information for the Charter School Revolving
Loan Fund and the Charter School Security Fund to the Department of
Finance and the Legislative Analyst's Office. At a minimum, this
information shall contain an accounting of actual beginning balances,
revenues, itemized expenditures, and ending balances for the prior
year, as well as projected beginning balances, revenues, itemized
expenditures, and ending balances for the current year and budget
year. 
   SEC. 47.    Section 42238 of the   Education
Code  is amended to read: 
   42238.  (a) For the 1984-85 fiscal year and each fiscal year
thereafter, the county superintendent of schools shall determine a
revenue limit for each school district in the county pursuant to this
section.
   (b) The base revenue limit for a fiscal year shall be determined
by adding to the base revenue limit for the prior fiscal year the
following amounts:
   (1) The inflation adjustment specified in Section 42238.1.
   (2) For the 1995-96 fiscal year, the equalization adjustment
specified in Section 42238.4.
   (3) For the 1996-97 fiscal year, the equalization adjustments
specified in Sections 42238.41, 42238.42, and 42238.43.
   (4) For the 1985-86 fiscal year, the amount per unit of average
daily attendance received in the 1984-85 fiscal year pursuant to
Section 42238.7.
   (5) For the 1985-86, 1986-87, and 1987-88 fiscal years, the amount
per unit of average daily attendance received in the prior fiscal
year pursuant to Section 42238.8.
   (6) For the 2004-05 fiscal year, the equalization adjustment
specified in Section 42238.44.
   (7) For the 2006-07 fiscal year, the equalization adjustment
specified in Section 42238.48.
   (8) For the 2011-12 fiscal year, the equalization adjustment
specified in Section 42238.49.
   (c) (1) (A) For the 2010-11 fiscal year, the Superintendent shall
compute an add-on for each school district by adding the inflation
adjustment specified in Section 42238.1 to the adjustment specified
in Section 42238.485.
   (B) For the 2011-12 fiscal year and each fiscal year thereafter,
the Superintendent shall compute an add-on for each school district
by adding the inflation adjustment specified in Section 42238.1 to
the amount computed pursuant to this paragraph for the prior fiscal
year.
   (2) Commencing with the 2010-11 fiscal year, the Superintendent
shall compute an add-on for each school district by dividing each
school district's fiscal year average daily attendance computed
pursuant to Section 42238.5 by the total adjustments in funding for
each district made for the 2007-08 fiscal year pursuant to Section
42238.22 as it read on January 1, 2009.
   (d) The sum of the base revenue limit computed pursuant to
subdivision (b) and the add-on computed pursuant to subdivision (c)
shall be multiplied by the district average daily attendance computed
pursuant to Section 42238.5.
   (e) For districts electing to compute units of average daily
attendance pursuant to paragraph (2) of subdivision (a) of Section
42238.5, the amount computed pursuant to Article 4 (commencing with
Section 42280) shall be added to the amount computed in subdivision
(c) or (d), as appropriate.
   (f) For the 1984-85 fiscal year only, the county superintendent
shall reduce the total revenue limit computed in this section by the
amount of the decreased employer contributions to the Public
Employees' Retirement System resulting from enactment of Chapter 330
of the Statutes of 1982, offset by any increase in those
contributions, as of the 1983-84 fiscal year, resulting from
subsequent changes in employer contribution rates.
   (g) The reduction required by subdivision (f) shall be calculated
as follows:
   (1) Determine the amount of employer contributions that would have
been made in the 1983-84 fiscal year if the applicable Public
Employees' Retirement System employer contribution rate in effect
immediately  prior to   before  the
enactment of Chapter 330 of the Statutes of 1982 was in effect during
the 1983-84 fiscal year.
   (2) Subtract from the amount determined in paragraph (1) the
greater of subparagraph (A) or (B):
   (A) The amount of employer contributions that would have been made
in the 1983-84 fiscal year if the applicable Public Employees'
Retirement System employer contribution rate in effect immediately
after the enactment of Chapter 330 of the Statutes of 1982 was in
effect during the 1983-84 fiscal year.
   (B) The actual amount of employer contributions made to the Public
Employees' Retirement System in the 1983-84 fiscal year.
   (3) For purposes of this subdivision, employer contributions to
the Public Employees' Retirement System for either of the following
shall be excluded from the calculation specified above:
   (A) Positions supported totally by federal funds that were subject
to supplanting restrictions.
   (B) Positions supported, to the extent of employer contributions
not exceeding twenty-five thousand dollars ($25,000) by a single
educational agency, from a revenue source determined on the basis of
equity to be properly excludable from the provisions of this
subdivision by the Superintendent with the approval of the Director
of Finance.
   (4) For accounting purposes, the reduction made by this
subdivision may be reflected as an expenditure from appropriate
sources of revenue as directed by the Superintendent.
   (h) The Superintendent shall apportion to each school district the
amount determined in this section less the sum of:
   (1) The district's property tax revenue received pursuant to
Chapter 3.5 (commencing with Section 75) and Chapter 6 (commencing
with Section 95) of Part 0.5 of Division 1 of the Revenue and
Taxation Code.
   (2) The amount, if any, received pursuant to Part 18.5 (commencing
with Section 38101) of Division 2 of the Revenue and Taxation Code.
   (3) The amount, if any, received pursuant to Chapter 3 (commencing
with Section 16140) of Part 1 of Division 4 of Title 2 of the
Government Code.
   (4) Prior years' taxes and taxes on the unsecured roll.
   (5) Fifty percent of the amount received pursuant to Section
41603.
   (6)  (A)    The amount, if any, received
pursuant to the Community Redevelopment Law (Part 1 (commencing with
Section 33000) of Division 24 of the Health and Safety Code), except
for any amount received pursuant to Section 33401 or 33676 of the
Health and Safety Code that is used for land acquisition, facility
construction, reconstruction, or remodeling, or deferred maintenance,
except for any amount received pursuant to Section 33492.15 of,
paragraph (4) of subdivision (a) of Section 33607.5 of, or Section
33607.7 of, the Health and Safety Code that is allocated exclusively
for educational facilities. 
   (B) The amount, if any, received pursuant to Sections 34177,
34179.5, 34179.6, and 34188 of the Health and Safety Code.  
   (C) The amount, if any, received pursuant to subparagraph (B) of
paragraph (3) of subdivision (e) of Section 36 of Article XIII of the
California Constitution. 
   (7) For a unified school district, other than a unified school
district that has converted all of its schools to charter status
pursuant to Section 47606, the amount of statewide average
general-purpose funding per unit of average daily attendance received
by school districts for each of four grade level ranges, as computed
by the department pursuant to Section 47633, multiplied by the
average daily attendance, in corresponding grade level ranges, of any
pupils who attend charter schools funded pursuant to Chapter 6
(commencing with Section 47630) of Part 26.8 of Division 4 for which
the  school  district is the sponsoring local educational
agency, as defined in Section 47632, and who reside in and would
otherwise have been eligible to attend a noncharter school of the
 school  district.
   (i) A transfer of pupils of grades 7 and 8 between an elementary
school district and a high school district shall not result in the
receiving  school  district receiving a revenue limit
apportionment for those pupils that exceeds 105 percent of the
statewide average revenue limit for the type and size of the
receiving school district.
   SEC. 48.    Section   42238.146 of the 
 Education Code   , as amended by Section 2 of Chapter
2 of the Statutes of 2012, 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
20.404 percent deficit factor. 
   (9) For the 2012-13 fiscal year, the revenue limit for each school
district determined pursuant to this article shall be reduced by a
22.272 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). 
   (f) In computing the revenue limit for each school district for
the 2013-14 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 2012-13 fiscal year without being reduced
by the deficit factors specified in subdivision (a). 
   SEC. 49.    Section 42238.15 of the   
 Education Code   is amended to read: 
   42238.15.  (a) Notwithstanding any other  provision of
 law, and in lieu of any inflation or cost-of-living
adjustment otherwise authorized for any of the programs enumerated in
subdivision (b), state funding for the programs enumerated in
subdivision (b) shall be increased annually by the product of the
following:
   (1) The sum of 1.0 plus the percentage change determined under
subdivision (b) of Section 42238.1.
   (2) The sum of 1.0 plus the percentage of increase, from the prior
fiscal year to the current fiscal year, in each of the workload
factors described in subdivision (b).
   (b) The programs for which annual state funding increases are
determined under this section, and the factors used to measure
workload for each of those programs, are as follows:
   (1) Special education programs and services, as measured by the
regular second principal apportionment average daily attendance for
kindergarten and grades 1 to 12, inclusive.
   (2) Child care and development programs, and preschool programs,
as measured by the state population of children up to and including
four years of age.
   (3) Instructional materials for kindergarten and grades 1 to 8,
inclusive, as measured by enrollment in kindergarten and grades 1 to
8, inclusive.
   (4) Instructional materials for grades 9 to 12, inclusive, as
measured by enrollment in those grades.
   (5) Regional occupational programs and centers, as measured by
enrollment in grades 11 and 12.
   (6) School improvement programs in kindergarten and grades 1 to 6,
inclusive, as measured by enrollment in kindergarten and grades 1 to
6, inclusive.
   (7) School improvement programs in grades 7 to 12, inclusive, as
measured by enrollment in those grades.
   (8) Economic impact aid, as measured by the number of children of
ages 5 to 17 years, inclusive, from families that receive Aid to
Families with Dependent Children and the number of pupils of limited
English proficiency, as identified pursuant to Section 52163.
   (9) Staff development programs, as measured by enrollment in
kindergarten and grades 1 to 12, inclusive.
   (10) Gifted and talented education programs, as measured by
enrollment in kindergarten and grades 1 to 12, inclusive. 
   (c) Notwithstanding any other law, child care and development
programs shall not receive a cost-of-living adjustment in the
2012-13, 2013-14, and 2014-15 fiscal years. 
   SEC. 50.    Section 42620.1 is added to the 
 Education Code   , to read:  
   42620.1.  (a) Whenever a charter school of a county or city and
county does not have sufficient money to its credit, before the
charter school receives its state, county, city and county, or
district funds, to meet current expenses of maintenance, the board of
supervisors of the county or city and county may order, and the
auditor and treasurer of the county or city and county shall make, a
temporary transfer from any funds of the county or city and county
not immediately needed to pay claims against them to the charter
school of the amount needed, not exceeding 85 percent of the amount
of money that will accrue to the charter school during the fiscal
year. Upon the making of a transfer, the auditor shall immediately
notify the superintendent of schools of the county or city and county
of the amount transferred. The board of supervisors may order
temporary transfers of funds to charter schools only after ensuring
that all transfer requests for school districts and county offices of
education have been satisfied pursuant to Section 42620.
   (b) The funds transferred under this section to the credit of a
charter school shall be retransferred by the auditor and treasurer to
the fund from which they were taken from the first moneys accruing
to the charter school and before any other obligation of the charter
school is paid from the money accruing. 
   SEC. 51.    Section 42621 of the   Education
Code   is amended to read: 
   42621.  The county superintendent of schools of each county  ,
 with the approval of the  County Board of Education
  county board of education  , may make temporary
transfers to  any   a  school district
 which   or charter school that  does not
have sufficient money to its credit to meet current operating
expenses from the county school service fund, in  such
 amounts and at  such  times  as he
  that the county superintendent of schools  deems
necessary.  Such   These  transfers shall
not exceed 85 percent of the amount of money accruing to the school
district  or   charter school  at the time of
transfer. The amounts so transferred shall be repaid to the county
school service fund  prior to   before 
June 30 of the current year from any funds subsequently received by
the school district  or charter school  .
   SEC. 52.    Section 42622 of the   Education
Code   is amended to read: 
   42622.  The county superintendent of schools, with the approval of
the county board of education, may make an apportionment to a school
district  or charter school  from the county school service
fund conditional upon the repayment to the fund during the next
succeeding fiscal year of the amount apportioned to the  school
 district  or charter school  and  shall
 , during the next succeeding fiscal year,  shall 
transfer the amount of  such   the 
apportionment from the general fund of the  school  district
 or charter school  to the county school service fund.
   SEC. 53.    Section 46201.4 is added to the 
 Education Code   , to read:  
   46201.4.  (a) Notwithstanding Section 46201.2, for the 2012-13 and
2013-14 school years, a school district, county office of education,
or charter school may provide an instructional year of not less than
160 days or the equivalent number of instructional minutes without
incurring the penalties set forth in Sections 41420, 46200, 46200.5,
46201, 46201.5, 46202, and 47612.5.
   (b) Implementation of the reduction in the number of instructional
days or instructional minutes authorized pursuant to subdivision (a)
by a school district, county office of education, or 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.
   (c) (1) For the 2012-13 fiscal year, 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, or Article
2 (commencing with Section 47633) of Chapter 6 of Part 26.8 shall be
reduced by a combined total of two billion seven hundred forty
million three hundred seventy-seven thousand dollars ($2,740,377,000)
in addition to the reduction in revenue limit funding set forth in
Sections 2558 and 42238.
   (2) To achieve the reduction required pursuant to paragraph (1),
the Superintendent shall adjust the amount of categorical funding
allocated to basic aid school districts in the 2012-13 fiscal year.
For purposes of this subdivision, "basic aid school district" means a
school district that does not receive from the state, for the
2012-13 fiscal year, an apportionment of state funds pursuant to
subdivision (h) of Section 42238.
   (d) (1) This section shall become operative on December 15, 2012,
only if the Schools and Local Public Safety Protection Act of 2012
(Attorney General reference number 12-0009) is not approved by the
voters at the November 6, 2012, statewide general election, or if the
provisions of that act that modify personal income tax rates do not
become operative due to a conflict with another initiative measure
that is approved at the same election and receives a greater number
of affirmative votes. If the Schools and Local Public Safety
Protection Act of 2012 (Attorney General reference number 12-0009) is
approved by the voters at the November 6, 2012, statewide general
election, and all of the provisions of that act that modify personal
income taxes become operative, this section shall not become
operative and shall be repealed on January 1, 2013.
   (2) If this section becomes operative pursuant to paragraph (1),
it 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. 54.    Section 47603 of the   Education
Code   is amended to read: 
   47603.   (a)    This part shall not be construed
to prohibit any private person or organization from providing
funding or other assistance to the establishment or operation of a
charter school. 
   (b) (1) A charter school may contract with a county superintendent
of schools or a county board of education for purposes of borrowing
moneys pursuant to subdivision (f) of Section 1042.  
   (2) Moneys borrowed pursuant to subdivision (f) of Section 1042
shall be expended by a charter school solely for purposes of meeting
the cash management needs of the charter school due to the deferral
of apportionment payments pursuant to Sections 14041.5, 14041.6,
14041.65, and 14041.7 and pursuant to Sections 16325, 16325.5, and
16326 of the Government Code and shall not be used for purposes of
making capital acquisitions.  
   (c) This section shall become inoperative on July 1, 2017, and, as
of January 1, 2018, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2018, deletes or
extends the dates on which it becomes inoperative and is repealed.

   SEC. 55.    Section 47603 is added to the  
Education Code   , to read:  
   47603.  (a) This part shall not be construed to prohibit any
private person or organization from providing funding or other
assistance to the establishment or operation of a charter school.
   (b) This section shall become operative on July 1, 2017. 
   SEC. 56.    Section 47633 of the   Education
Code   is amended to read: 
   47633.  The Superintendent  of Public Instruction
 shall annually compute a general-purpose entitlement,
funded from a combination of state aid and local funds, for each
charter school as follows:
   (a) The  superintendent   Superintendent
 shall annually compute the statewide average amount of
general-purpose funding per unit of average daily attendance received
by school districts for each of four grade level ranges:
kindergarten and grades 1, 2, and 3; grades 4, 5, and 6; grades 7 and
8; and, grades 9 to 12, inclusive. For purposes of making these
computations, both of the following conditions shall apply:
   (1) Revenue limit funding attributable to pupils in kindergarten
and grades 1 to 5, inclusive, shall equal the statewide average
revenue limit funding per unit of average daily attendance received
by elementary school districts; revenue limit funding attributable to
pupils in grades 6, 7, and 8, shall equal the statewide average
revenue limit funding per unit of average daily attendance received
by unified school districts; and revenue limit funding attributable
to pupils in grades 9 to 12, inclusive, shall equal the statewide
average revenue limit funding per unit of average daily attendance
received by high school districts.
   (2) Revenue limit funding received by school districts shall
exclude the value of any benefit attributable to the presence of
necessary small schools or necessary small high schools within the
school district.
   (b) The  superintendent   Superintendent
 shall multiply each of the four amounts computed in subdivision
(a) by the charter school's average daily attendance in the
corresponding grade level ranges. The resulting figure shall be the
amount of the charter school's general-purpose entitlement, which
shall be funded through a combination of state aid and local funds.
From funds appropriated for this purpose pursuant to Section 14002,
the superintendent shall apportion to each charter school this
amount, less local funds allocated to the charter school pursuant to
Section 47635  and any amount received pursuant to subparagraph
(B) of paragraph (3) of subdivision (e) of Section 36 of Article XIII
of the California Constitution  .
   (c) General-purpose entitlement funding may be used for any public
school purpose determined by the governing body of the charter
school.
   SEC. 57.    Section 52055.770 of the   
 Education Code   is amended to read: 
   52055.770.  (a) School districts and chartering authorities shall
receive funding at the following rate, on behalf of funded schools:
   (1) For kindergarten and grades 1 to 3, inclusive, five hundred
dollars ($500) per enrolled pupil in funded schools.
   (2) For grades 4 to 8, inclusive, nine hundred dollars ($900) per
enrolled pupil in funded schools.
   (3) For grades 9 to 12, inclusive, one thousand dollars ($1,000)
per enrolled pupil in funded schools.
   (b) For purposes of subdivision (a), enrollment of a pupil in a
funded school in the prior fiscal year shall be based on data from
the CBEDS. For the 2007-08 fiscal year, the funded rates shall be
reduced to reflect the percentage difference in the total amounts
appropriated for purposes of this section in that year compared to
the amounts appropriated for purposes of this section in the 2008-09
fiscal year.
   (c) The following amounts are hereby appropriated from the General
Fund for the purposes set forth in subdivision (f) 
 (g)  :
   (1) For the 2007-08 fiscal year, three hundred million dollars
($300,000,000), to be allocated as follows:
   (A) Thirty-two million dollars ($32,000,000) for transfer by the
Controller to Section B of the State School Fund for allocation by
the Chancellor of the California Community Colleges to community
colleges for the purpose of providing funding to the community
colleges to improve and expand career technical education in public
secondary education and lower division public higher education
pursuant to Section 88532, including the hiring of additional faculty
to expand the number of career technical education programs and
course offerings.
   (B) Two hundred sixty-eight million dollars ($268,000,000) for
transfer by the Controller to Section A of the State School Fund for
allocation by the Superintendent pursuant to this article.
   (2) For each of the 2008-09,  and  2011-12
 to   ,   and  2014-15 fiscal
years,  inclusive,  four hundred fifty million
dollars ($450,000,000) per fiscal year, to be allocated as follows:
   (A) Forty-eight million dollars ($48,000,000) for transfer by the
Controller to Section B of the State School Fund for allocation by
the Chancellor of the California Community Colleges to community
colleges as required under subdivision (e)  for the 2008-09
fiscal year, and under subdivision (f) for the 2011-12   and
2014-15 fiscal years  .
   (B) Four hundred two million dollars ($402,000,000) for transfer
by the Controller to Section A of the State School Fund for
allocation by the Superintendent pursuant to this article.
   (3) For the 2009-10 fiscal year, thirty million dollars
($30,000,000), to be allocated for transfer by the Controller to
Section B of the State School Fund for allocation by the Chancellor
of the California Community Colleges to community colleges as
required under subdivision (e).
   (4) For the 2010-11 fiscal year, four hundred twenty million
dollars ($420,000,000), to be allocated as follows:
   (A) Eighteen million dollars ($18,000,000) for transfer by the
Controller to Section B of the State School Fund for allocation by
the Chancellor of the California Community Colleges to community
colleges as required under subdivision (e).
   (B) Four hundred two million dollars ($402,000,000) for transfer
by the Controller to Section A of the State School Fund for
allocation by the Superintendent pursuant to this article. 
   (C) 
    (5)  Commencing with the 2010-11 fiscal year, payments
made pursuant to  subparagraphs (A) and (B)  
this subdivision  shall be made only on or after October 8 of
each fiscal year.
   (d) For the  2013-14   2014-15  fiscal
year  ,  the amounts appropriated under subdivision (c)
shall be adjusted to reflect the total fiscal settlement agreed to by
the parties in California Teachers Association, et al. v. Arnold
Schwarzenegger (Case Number 05CS01165 of the Superior Court for the
County of Sacramento) and the sum of all fiscal years of funding
provided  to fund this article   pursuant to
this section and Section 41207.6  shall not exceed the total
funds agreed to by those parties. This annual appropriation shall
continue to be made until the Director of Finance reports to the
Legislature, along with all proposed adjustments to the Governor's
Budget pursuant to Section 13308 of the Government Code, that the sum
of appropriations made and allocated pursuant to subdivision (c)
equals the total outstanding balance of the minimum state educational
funding obligation to school districts and community college
districts required by Section 8 of Article XVI of the California
Constitution and Chapter 213 of the Statutes of 2004 for the 2004-05
and 2005-06 fiscal years, as determined in subdivision (a) or (b) of
Section 41207.1.
   (e) The sum transferred under subparagraph (A) of paragraph (2) of
subdivision (c) for the 2008-09 fiscal year shall be allocated by
the Chancellor of the California Community Colleges as follows:
   (1) Thirty-eight million dollars ($38,000,000) to the community
colleges for the purpose of providing funding to the community
colleges to improve and expand career technical education in public
secondary education and lower division public higher education
pursuant to Section 88532, including the hiring of additional faculty
to expand the number of career technical education programs and
course offerings.
   (2) Ten million dollars ($10,000,000) to the community colleges
for the purpose of providing one-time block grants to community
college districts to be used for one-time items of expenditure,
including, but not limited to, the following purposes:
   (A) Physical plant, scheduled maintenance, deferred maintenance,
and special repairs.
   (B) Instructional materials and support.
   (C) Instructional equipment, including equipment related to career
technical education, with priority for nursing program equipment.
   (D) Library materials.
   (E) Technology infrastructure.
   (F) Hazardous substances abatement, cleanup, and repair.
   (G) Architectural barrier removal.
   (H) State-mandated local programs.
   (3) The Chancellor of the California Community Colleges shall
allocate the amount allocated pursuant to paragraph (2) to community
college districts on an equal amount per actual full-time equivalent
student (FTES) reported for the prior fiscal year, except that each
community college district shall be allocated an amount not less than
fifty thousand dollars ($50,000), and the equal amount per unit of
FTES shall be computed accordingly.
   (4) Funds allocated under paragraph (2) shall supplement and not
supplant existing expenditures and may not be counted as the 
community college  district contribution for physical plant
projects and instructional material purchases funded in Item
6870-101-0001 of Section 2.00 of the annual Budget Act.
   (f) For each  fiscal year, commencing with  
of  the 2011-12  and  2014-15 fiscal  year,
inclusive   years  , the sum transferred pursuant
to subparagraph (A) of paragraph (2) of subdivision (c) shall be
allocated by the Chancellor of the California Community Colleges
 as follows: Forty-eight million dollars ($48,000,000)
 to the community colleges for the purpose of 
providing funding to the community colleges to improve and expand
  improving and expanding  career technical
education in public secondary education and lower division public
higher education pursuant to Section 88532, including the hiring of
additional faculty to expand the number of career technical education
programs and course offerings.
   (g) The appropriations made under subdivision (c)  and the
amount specified in   Section 41207.6  are for the
purpose of discharging in full the minimum state educational funding
obligation to school districts and community college districts
pursuant to Section 8 of Article XVI of the California Constitution
and Chapter 213 of the Statutes of 2004 for the 2004-05 fiscal year,
and the outstanding maintenance factor for the 2005-06 fiscal year
resulting from this additional payment of the Chapter 213 amount for
the 2004-05 fiscal year.
   (h) For  the  purposes of making the computations
required by Section 8 of Article XVI of the California Constitution,
including computation of the state's minimum funding obligation to
school districts and community college districts in subsequent fiscal
years, the first one billion six hundred twenty million nine hundred
twenty-eight thousand dollars ($1,620,928,000) in appropriations
made pursuant to subdivision (c)  and the amount specified in
 Section 41207.6  shall be deemed to be "General Fund
revenues appropriated for school districts," as defined in
subdivision (c) of Section 41202 and "General Fund Revenues
appropriated for community college districts," as defined in
subdivision (d) of Section 41202, for the 2004-05 fiscal year and
included within the "total allocations to school districts and
community college districts from General Fund proceeds of taxes
appropriated pursuant to Article XIII B," as defined in subdivision
(e) of Section 41202, for that fiscal year. The remaining
appropriations made pursuant to subdivision (c)  and the amount
specified in   Section 41207.6  shall be deemed to be
"General Fund revenues appropriated for school districts," as defined
in subdivision (c) of Section 41202 and "General Fund revenues
appropriated for community college districts," as defined in
subdivision (d) of Section 41202, for the 2005-06 fiscal year and
included within the "total allocations to school districts and
community college districts from General Fund proceeds of taxes
appropriated pursuant to Article XIII B," as defined in subdivision
(e) of Section 41202, for that fiscal year.
   (i) From funds appropriated under subdivision (c), the
Superintendent shall provide both of the following:
   (1) Not more than two million dollars ($2,000,000) annually to
county superintendents of schools to carry out the requirements of
this article, allocated in a manner similar to that created to carry
out the new duties of those superintendents under the settlement
agreement in the case of Williams v. California (Super. Ct. San
Francisco, No. CGC-00-312236).
   (2) Five million dollars ($5,000,000) in the 2007-08 fiscal year
to support regional assistance under Section 52055.730. It is the
intent of the Legislature that the Superintendent and the president
of the state board or his or her designee, along with county offices
of education, seek foundational and other financial support to
sustain and expand these services. Funds provided under this
paragraph that are not expended in the 2007-08 fiscal year shall be
reappropriated for use in subsequent fiscal years for the same
purpose.
   (j) Notwithstanding any other  provision of  law,
funds appropriated under subdivision (c) but not allocated to
schools with kindergarten or grades 1 to 12, inclusive, in a fiscal
year, due to program termination in any year or otherwise, shall be
 available for reappropriation only 
reappropriated  in furtherance of the purposes of this article.
First priority for those amounts shall be to provide cost-of-living
increases and enrollment growth adjustments to funded schools.
   (k) The sum of three hundred fifty thousand dollars ($350,000) is
hereby appropriated from the General Fund to the  State
Department of Education   department  to fund 3.0
positions to implement this article. Funding provided under this
subdivision is not part of funds provided pursuant to subdivision
(c).
   SEC. 58.    Section 5205   5.780 is added to
the   Education Code   , to read:  
   52055.780.  (a) School districts and chartering authorities shall
receive funding at the following rate, on behalf of funded
                                    schools:
   (1) For kindergarten and grades 1 to 3, inclusive, five hundred
dollars ($500) per enrolled pupil in funded schools.
   (2) For grades 4 to 8, inclusive, nine hundred dollars ($900) per
enrolled pupil in funded schools.
   (3) For grades 9 to 12, inclusive, one thousand dollars ($1,000)
per enrolled pupil in funded schools.
   (b) For purposes of subdivision (a), enrollment of a pupil in a
funded school in the prior fiscal year shall be based on data from
the CBEDS.
   (c) For the 2012-13 fiscal year, three hundred sixty-one million
dollars ($361,000,000) is hereby appropriated from the General Fund
to be allocated as follows:
   (1) Forty-eight million dollars ($48,000,000) for transfer by the
Controller to Section B of the State School Fund for allocation by
the Chancellor of the California Community Colleges to community
colleges as required under subdivision (d).
   (2) Three hundred thirteen million dollars ($313,000,000) for
transfer by the Controller to Section A of the State School Fund for
allocation by the Superintendent pursuant to this article.
   (3) Payments made pursuant to this subdivision shall be made only
on or after October 8 of the 2012-13 fiscal year.
   (d) The sum transferred pursuant to paragraph (1) of subdivision
(c) shall be allocated by the Chancellor of the California Community
Colleges to the community colleges for the purpose of improving and
expanding career technical education in public secondary education
and lower division public higher education pursuant to Section 88532,
including the hiring of additional faculty to expand the number of
career technical education programs and course offerings.
   (e) For the 2013-14 fiscal year, two hundred eighteen million
three hundred twenty-two thousand dollars ($218,322,000) is hereby
appropriated from the General Fund to be allocated as follows:
   (1) Forty-eight million dollars ($48,000,000) for transfer by the
Controller to Section B of the State School Fund for allocation by
the Chancellor of the California Community Colleges to community
colleges as required under subdivision (d).
   (2) One hundred seventy million three hundred twenty-two thousand
dollars ($170,322,000) for transfer by the Controller to Section A of
the State School Fund for allocation by the Superintendent pursuant
to this article.
   (f) From funds appropriated under subdivision (c), the
Superintendent shall provide not more than two million dollars
($2,000,000) to county superintendents of schools to carry out the
requirements of this article, allocated in a manner similar to that
created to carry out the new duties of those superintendents under
the settlement agreement in the case of Williams v. California
(Super. Ct. San Francisco, No. CGC-00-312236).
   (g) For purposes of making the computations required by Section 8
of Article XVI of the California Constitution, including computation
of the state's minimum funding obligation to school districts and
community college districts in subsequent fiscal years, the
appropriations made pursuant to subdivisions (c) and (e) shall be
deemed to be "General Fund revenues appropriated for school
districts," as defined in subdivision (c) of Section 41202 and
"General Fund revenues appropriated for community college districts,"
as defined in subdivision (d) of Section 41202, for the 2012-13
fiscal year and included within the "total allocations to school
districts and community college districts from General Fund proceeds
of taxes appropriated pursuant to Article XIII B," as defined in
subdivision (e) of Section 41202, for that fiscal year. 
   SEC. 59.    Section 56471 of the   Education
Code   is amended to read: 
   56471.  (a) The program shall be administered by the State
Department of Education.
   (b) The department shall establish an advisory committee. This
committee will include representatives from local workability
projects to ensure ongoing communications.
   (c) The  superintendent   Superintendent
 shall develop criteria for awarding grants, funding, and
evaluating  of  workability projects. 
   (d) Eligible applicants shall include local educational agencies,
including school districts, county offices of education, state
special schools, and charter schools, and nonpublic, nonsectarian
schools, as defined in Section 56034.  
   (d) 
    (e)  Workability project applications shall include, but
are not limited to, the following elements:
(1) recruitment, (2) assessment, (3) counseling, (4) preemployment
skills training, (5) vocational training, (6) student wages for
try-out employment, (7) placement in unsubsidized employment, (8)
other assistance with transition to a quality adult life, and (9)
utilization of an interdisciplinary advisory committee to enhance
project goals.
   SEC. 60.    Section 69432 of the   Education
Code   is amended to read: 
   69432.  (a) Cal Grant Program awards shall be known as "Cal Grant
A Entitlement Awards," "Cal Grant B Entitlement Awards," "California
Community College Transfer Entitlement Awards," "Competitive Cal
Grant A and B Awards," "Cal Grant C Awards," and "Cal Grant T Awards."

   (b) Maximum award amounts for students at independent institutions
and for Cal Grant C and T awards shall be identified in the annual
Budget Act. Maximum award amounts for Cal Grant A and B awards for
students attending public institutions shall be referenced in the
annual Budget Act. 
   (c) (1) Notwithstanding subdivision (b), and subdivision (c) of
Section 66021.2, commencing with the 2013-14 award year, the maximum
tuition award amounts for Cal Grant A and B awards for students
attending private for-profit and nonprofit postsecondary educational
institutions shall be as follows:  
   (A) Four thousand dollars ($4,000) for new recipients attending
private for-profit postsecondary educational institutions.  

   (B) For the 2013-14 award year, nine thousand eighty-four dollars
($9,084) for new recipients attending private nonprofit postsecondary
educational institutions. For the 2014-15 award year and each award
year thereafter, eight thousand fifty-six dollars ($8,056) for new
recipients attending private nonprofit postsecondary educational
institutions.  
   (2) The renewal award amount for a student whose initial award is
subject to a maximum award amount specified in this subdivision shall
be calculated pursuant to paragraph (2) of subdivision (a) of
Section 69433.  
   (3) Notwithstanding subparagraph (A) of paragraph (1), new
recipients attending private for-profit postsecondary educational
institutions that are accredited by the Western Association of
Schools and Colleges as of July 1, 2012, shall have the same maximum
tuition award amounts as are set forth in subparagraph (B) of
paragraph (1). 
   SEC. 61.    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  and
graduation 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   15.5 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),  or (G),
 as applicable.
   (ii) If the United States Department of Education corrects or
revises an institution's three-year cohort default rate  or
graduation rate  that originally failed to satisfy the
requirements established in subparagraph (B)  or 
 ,  (C),  or (G),  as applicable, and the
correction or revision results in the institution's three-year cohort
default rate  or graduation 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  or graduation rate  would
have been applied.
   (E) An otherwise qualifying institution for which no three-year
cohort default  rate or graduation  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  or graduation rate  has been reported
for the institution by the United States Department of Education.
   (F)  (i)    An institution that is ineligible
for initial and renewal Cal Grant awards at the institution under
subparagraph (B)  or (C)   , (C), or (G) 
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) 
    (I) The maximum Cal Grant A and B awards specified in
the annual Budget Act shall be reduced by 20 percent. 
   (ii) 
    (II)  The reductions specified in this subparagraph
shall not impact access costs as specified in subdivision (b) of
Section 69435. 
   (ii) This subparagraph shall become inoperative on July 1, 2013.
 
   (G) For purposes of the 2012-13 academic year, and every academic
year thereafter, an otherwise qualifying institution with a
graduation rate of 30 percent or less for students taking 150 percent
or less of the expected time to complete degree requirements, as
reported by the United States Department of Education and as
certified by the commission pursuant to subparagraph (A), shall be
ineligible for initial and renewal Cal Grant awards at the
institution, except as provided for in subparagraphs (F) and (I).
 
   (G) 
    (H)  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  
before  the year in which the commission is certifying the
three-year cohort default rate  or graduation rate  pursuant
to subparagraph (A). 
   (I) Notwithstanding subparagraph (G), an otherwise qualifying
institution with a three-year cohort default rate that is less than
10 percent and a graduation rate above 20 percent for students taking
150 percent or less of the expected time to complete degree
requirements, as certified by the commission pursuant to subparagraph
(A), shall remain eligible for initial and renewal Cal Grant awards
at the institution through the 2016-17 academic year.  
   (J) The commission shall do all of the following:  
   (i) Notify initial Cal Grant recipients seeking to attend, or
attending, an institution that is ineligible for initial and renewal
Cal Grant awards under subparagraph (C) or (G) that the institution
is ineligible for initial Cal Grant awards for the academic year for
which the student received an initial Cal Grant award.  
   (ii) Notify renewal Cal Grant recipients attending an institution
that is ineligible for initial and renewal Cal Grant awards at the
institution under subparagraph (C) or (G) that the student's Cal
Grant award will be reduced by 20 percent, or eliminated, as
appropriate, if the student attends the ineligible institution in an
academic year in which the institution is ineligible.  
   (iii) Provide initial and renewal Cal Grant recipients seeking to
attend, or attending, an institution that is ineligible for initial
and renewal Cal Grant awards at the institution under subparagraph
(C) or (G) with a complete list of all California postsecondary
educational institutions at which the student would be eligible to
receive an unreduced Cal Grant award.  
   (H) 
    (K)  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. 62.    Section 69433.5 of the   
 Education Code   is amended to read: 
   69433.5.  (a) Only a resident of California, as determined by the
commission pursuant to Part 41 (commencing with Section 68000), is
eligible for an initial Cal Grant award. The recipient shall remain
eligible for award renewal only if he or she is a California
resident, in attendance, and making satisfactory academic progress at
a qualifying institution, as determined by the commission.
   (b) A part-time student shall not be discriminated against in the
selection of Cal Grant Program award recipients, and an award to a
part-time student shall be approximately proportional to the time the
student spends in the instructional program, as determined by the
commission. A first-time Cal Grant Program award recipient who is a
part-time student shall be eligible for a full-time renewal award if
he or she becomes a full-time student.
   (c) Cal Grant Program awards shall be awarded without regard to
race, religion, creed, sex, sexual orientation, gender identity,
gender expression, or age.
   (d) An applicant shall not receive more than one type of Cal Grant
Program award concurrently.  Except as provided in Section
69440, an   An  applicant shall not:
   (1) Receive one or a combination of Cal Grant Program awards in
excess of the amount equivalent to the award level for a total of
four years of full-time attendance in an undergraduate program,
except as provided in Section 69433.6.
   (2) Have obtained a baccalaureate degree  prior to
  before  receiving a Cal Grant Program award
 , except as provided in Section 69440  .
   (e) A Cal Grant Program award, except as provided in Section
69440, may only be used for educational expenses of a program of
study leading directly to an undergraduate degree or certificate, or
for expenses of undergraduate coursework in a program of study
leading directly to a first professional degree, but for which no
baccalaureate degree is awarded.
   (f) The commission shall, for students who accelerate college
attendance, increase the amount of award proportional to the period
of additional attendance resulting from attendance in classes that
fulfill requirements or electives for graduation during summer terms,
sessions, or quarters. In the aggregate, the total amount a student
may receive in a four-year period may not be increased as a result of
accelerating his or her progress to a degree by attending summer
terms, sessions, or quarters.
   (g) The commission shall notify Cal Grant award recipients of the
availability of funding for the summer term, session, or quarter
through prominent notice in financial aid award letters, materials,
guides, electronic information, and other means that may include, but
not necessarily be limited to, surveys, newspaper articles, or
attachments to communications from the commission and any other
published documents.
   (h) The commission may require, by the adoption of rules and
regulations, the production of reports, accounting, documents, or
other necessary statements from the award recipient and the college
or university of attendance pertaining to the use or application of
the award.
                                     (i) A Cal Grant Program award
may be utilized only at a qualifying institution. 
   (j) A recipient who initially qualified for both a Cal Grant A
award and a Cal Grant B award, and received a Cal Grant B award, may
be awarded a renewal Cal Grant A award if that recipient subsequently
became ineligible for a renewal Cal Grant B award and meets the
applicable Cal Grant A financial need and income and asset criteria.

   SEC. 63.    Section 69436 of the   Education
Code   is amended to read: 
   69436.  (a) A student who was not awarded a Cal Grant A or B award
pursuant to Article 2 (commencing with Section 69434) or Article 3
(commencing with Section 69435) at the time of his or her high school
graduation but, at the time of transfer from a California community
college to a qualifying baccalaureate program, meets all of the
criteria set forth in subdivision (b), shall be entitled to a Cal
Grant A or B award.
   (b) Any California resident transferring from a California
community college to a qualifying institution that offers a
baccalaureate degree is entitled to receive, and the commission, or a
qualifying institution pursuant to Article 8 (commencing with
Section 69450), shall award, a Cal Grant A or B award depending on
the eligibility determined pursuant to subdivision (c), if all of the
following criteria are met:
   (1) A complete official financial aid application has been
submitted or postmarked pursuant to Section 69432.9, no later than
the March 2 of the year immediately preceding the award year.
   (2) The student demonstrates financial need pursuant to Section
69433.
   (3) The student has earned a community college grade point average
of at least 2.4 on a 4.0 scale and is eligible to transfer to a
qualifying institution that offers a baccalaureate degree.
   (4) The student's household has an income and asset level not
exceeding the limits set forth in Section 69432.7.
   (5) The student is pursuing a baccalaureate degree that is offered
by a qualifying institution.
   (6) He or she is enrolled at least part time.
   (7) The student meets the general Cal Grant eligibility
requirements set forth in Article 1 (commencing with Section 69430).
   (8) The student will not be 28 years of age or older by December
31 of the award year.
   (9) The student graduated from a California high school or its
equivalent during or after the 2000-01 academic year. 
   (10) (A) Except as provided for in subparagraph (B), the student
attended a California community college in the academic year
immediately preceding the academic year for which the award will be
used.  
   (B) A student otherwise eligible to receive an award pursuant to
this section, who attended a California community college in the
2011-12 academic year, may use the award for the 2012-13 and 2013-14
academic years. 
   (c) The amount and type of the award pursuant to this article
shall be determined as follows:
   (1) For applicants with income and assets at or under the Cal
Grant A limits, the award amount shall be the amount established
pursuant to Article 2 (commencing with Section 69434).
   (2) For applicants with income and assets at or under the Cal
Grant B limits, the award amount shall be the amount established
pursuant to Article 3 (commencing with Section 69435).
   (d) (1) A student meeting the requirements of paragraph (9) of
subdivision (b) by means of high school graduation, rather than its
equivalent, shall be required to have graduated from a California
high school, unless that California resident graduated from a high
school outside of California due solely to orders received from a
branch of the United States Armed Forces by that student or by that
student's parent or guardian that required that student to be outside
of California at the time of high school graduation.
   (2) For the purposes of this article, both of the following are
exempt from the requirements of subdivision (e) of Section 69433.9
and paragraph (9) of subdivision (b) of this section:
   (A) A student for whom a claim under this article was paid prior
to December 1, 2005.
   (B) A student for whom a claim under this article for the 2004-05
award year or the 2005-06 award year was or is paid on or after
December 1, 2005, but no later than October 15, 2006.
   (3) (A) The commission, or a qualifying institution pursuant to
Article 8 (commencing with Section 69450), shall make preliminary
awards to all applicants currently eligible for an award under this
article. At the time an applicant receives a preliminary award, the
commission, or a qualifying institution pursuant to Article 8
(commencing with Section 69450), shall require that applicant to
affirm, in writing, under penalty of perjury, that he or she meets
the requirements set forth in subdivision (e) of Section 69433.9,
paragraph (9) of subdivision (b) of this section, and paragraph (1)
of this subdivision. The commission, or a qualifying institution
pursuant to Article 8 (commencing with Section 69450), shall notify
each person who receives a preliminary award under this paragraph
that his or her award is subject to an audit pursuant to subparagraph
(B).
   (B) The commission shall select, at random, a minimum of 10
percent of the new and renewal awards made under subparagraph (A),
and shall require, prior to the disbursement of Cal Grant funds to
the affected postsecondary institution, that the institution verify
that the recipient meets the requirements of subdivision (e) of
Section 69433.9, paragraph (9) of subdivision (b) of this section,
and paragraph (1) of this subdivision. An award that is audited under
this paragraph and found to be valid shall not be subject to a
subsequent audit.
   (C) Pursuant to Section 69517.5, the commission shall seek
repayment of any and all funds found to be improperly disbursed under
this article.
   (D) On or before November 1 of each year, the commission shall
submit a report to the Legislature and the Governor including, but
not necessarily limited to, both of the following:
   (i) The number of awards made under this article in the preceding
12 months.
   (ii) The number of new and renewal awards selected, in the
preceding 12 months, for verification under subparagraph (B), and the
results of that verification with respect to students at the
University of California, at the California State University, at
independent nonprofit institutions, and at independent for-profit
institutions.
   SEC. 64.    Section 69999.6 of the   
 Education Code   is amended to read: 
   69999.6.  (a) In enacting this article, it is the intent of the
Legislature to accomplish  both   all  of
the following:
   (1) Provide explicit authority to the board to continue to
administer accounts for, and make awards to, persons who qualified
for awards under the provisions of the Governor's Scholarship
Programs as those provisions existed on January 1, 2003, prior to the
repeal of former Article 20 (commencing with Section 69995).
   (2) Provide for the management and disbursement of funds
previously set aside for the scholarship programs authorized by
former Article 20 (commencing with Section 69995). 
   (3) Provide a guarantee should additional funds be needed to cover
awards authorized and made pursuant to former Article 20 (commencing
with Section 69995). 
   (b) The board may manage and disburse the funds previously set
aside for the scholarship programs authorized by former Article 20
(commencing with Section 69995).
   (c) If a person has earned an award under the Governor's
Scholarship Programs on or before January 1, 2003, but has not
claimed the award on or before June 30, 2004, he or she still may
claim the award by a date that is five years from the first June 30
that fell after he or she took the qualifying test. An award shall
not be made by the  Scholarshare Investment Board 
 board  after that date. 
   (d) The board shall negotiate with the current manager of the
Governor's Scholarship Programs and execute an amended or new
management and funding agreement, before January 1, 2013, which shall
include, but not be limited to, all of the following:  
   (1) Terms providing for the return to the General Fund by no later
than January 1, 2013, of moneys appropriated to the Governor's
Scholarship Programs that are not anticipated to be needed to make
awards pursuant to paragraphs (1) and (2) of subdivision (a). 

   (2) Provisions that authorize the board to pay agreed-upon early
withdrawal penalties or fees.  
   (3) Terms that extend the final date upon which the board may
withdraw funds for a person who earned an award under the Governor's
Scholarship Programs.  
   (e) (1) If funds retained in the Golden State Scholarshare Trust
after January 1, 2013, are insufficient to cover the remaining
withdrawal requests, it is the intent of the Legislature to
appropriate the necessary funds to the Golden State Scholarshare
Trust for the purpose of funding individual beneficiary accounts.
 
   (2) The board shall notify the Department of Finance and the
Legislature no later than 10 working days after determining that a
shortfall in available funding described in paragraph (1) will occur.
 
   (d) 
    (f)  The board may adopt rules and regulations for the
implementation of this article.
   SEC. 65.    Section 76140 of the   Education
Code   is amended to read: 
   76140.  (a) A community college district may admit and shall
charge a tuition fee to nonresident students. The district may exempt
from all or parts of the fee any person described in paragraph (1),
(2), or (3):
   (1) All nonresidents who enroll for six or fewer units. Exemptions
made pursuant to this paragraph shall not be made on an individual
basis.
   (2) Any nonresident who is both a citizen and resident of a
foreign country, if the nonresident has demonstrated a financial need
for the exemption. Not more than 10 percent of the nonresident
foreign students attending any community college district may be so
exempted. Exemptions made pursuant to this paragraph may be made on
an individual basis.
   (3) (A) A student who, as of August 29, 2005, was enrolled, or
admitted with an intention to enroll, in the fall term of the 2005-06
academic year in a regionally accredited institution of higher
education in Alabama, Louisiana, or Mississippi, and who could not
continue his or her attendance at that institution as a direct
consequence of damage sustained by that institution as a result of
Hurricane Katrina.
   (B) The chancellor shall develop guidelines for the implementation
of this paragraph. These guidelines shall include standards for
appropriate documentation of student eligibility to the extent
feasible.
   (C) This paragraph shall apply only to the 2005-06 academic year.
   (b) A district may contract with a state, a county contiguous to
California, the federal government, or a foreign country, or an
agency thereof, for payment of all or a part of a nonresident student'
s tuition fee.
   (c) Nonresident students shall not be reported as full-time
equivalent students (FTES) for state apportionment purposes, except
as provided by subdivision (j) or another statute, in which case a
nonresident tuition fee may not be charged.
   (d) The nonresident tuition fee shall be set by the governing
board of each community college district not later than February 1 of
each year for the succeeding fiscal year. The governing board of
each community college district shall provide nonresident students
with notice of nonresident tuition fee changes during the spring term
before the fall term in which the change will take effect.
Nonresident tuition fee increases shall be gradual, moderate, and
predictable. The fee may be paid in installments, as determined by
the governing board of the district.
   (e) (1) The fee established by the governing board pursuant to
subdivision (d) shall represent for nonresident students enrolled in
30 semester units or 45 quarter units of credit per fiscal year one
or more of the following:
   (A) The amount that was expended by the district for the expense
of education as defined by the California Community College Budget
and Accounting Manual in the preceding fiscal year increased by the
projected percent increase in the United States Consumer Price Index
as determined by the Department of Finance for the current fiscal
year and succeeding fiscal year and divided by the FTES (including
nonresident students) attending in the district in the preceding
fiscal year. However, if for the district's preceding fiscal year
FTES of all students attending in the district in noncredit courses
is equal to, or greater than, 10 percent of the district's total FTES
attending in the district, the district may substitute the data for
expense of education in grades 13 and 14 and FTES in grades 13 and 14
attending in the district.
   (B) The expense of education in the preceding fiscal year of all
districts increased by the projected percent increase in the United
States Consumer Price Index as determined by the Department of
Finance for the fiscal year and succeeding fiscal year and divided by
the FTES (including nonresident students) attending all districts
during the preceding fiscal year. However, if the amount calculated
under this paragraph for the succeeding fiscal year is less than the
amount established for the current fiscal year or for any of the past
four fiscal years, the district may set the nonresident tuition fee
at the greater of the current or any of the past four-year amounts.
   (C) An amount not to exceed the fee established by the governing
board of any contiguous district.
   (D) An amount not to exceed the amount that was expended by the
district for the expense of education, but in no case less than the
statewide average as set forth in subparagraph (B).
   (E) An amount no greater than the average of the nonresident
tuition fees of public community colleges of no less than 12 states
that are comparable to California in cost of living. The
determination of comparable states shall be based on a composite
cost-of-living index as determined by the United States Department of
Labor or a cooperating government agency.
   (2) The additional revenue generated by the increased nonresident
tuition permitted under the amendments made to this subdivision
during the 2009-10 Regular Session shall be used to expand and
enhance services to resident students. In no event shall the
admission of nonresident students come at the expense of resident
enrollment.
   (f) The governing board of each community college district also
shall adopt a tuition fee per unit of credit for nonresident students
enrolled in more or less than 15 units of credit per term by
dividing the fee determined in subdivision (e) by 30 for colleges
operating on the semester system and 45 for colleges operating on the
quarter system and rounding to the nearest whole dollar. The same
rate shall be uniformly charged nonresident students attending any
terms or sessions maintained by the community college. The rate
charged shall be the rate established for the fiscal year in which
the term or session ends.
   (g) Any loss in district revenue generated by the nonresident
tuition fee shall not be offset by additional state funding.
   (h) Any district that has fewer than 1,500 FTES and whose boundary
is within 10 miles of another state that has a reciprocity agreement
with California governing student attendance and fees may exempt
students from that state from the mandatory fee requirement described
in subdivision (a) for nonresident students.
   (i) Any district that has more than 1,500, but less than 3,001,
FTES and whose boundary is within 10 miles of another state that has
a reciprocity agreement with California governing student attendance
and fees may, in any one fiscal year, exempt up to 100 FTES from that
state from the mandatory fee requirement described in subdivision
(a) for nonresident students.
   (j) The attendance of nonresident students who are exempted
pursuant to subdivision (h) or (i), or pursuant to paragraph (3) of
subdivision (a), from the mandatory fee requirement described in
subdivision (a) for nonresident students may be reported as resident
FTES for state apportionment purposes. Any nonresident student
reported as resident FTES for state apportionment purposes pursuant
to subdivision (h) or (i) shall pay a  fee of forty-two
dollars ($42) per course unit   per unit fee that is two
times the amount of the fee established for residents pursuant to
Section 76300  . That fee is to be included in the FTES
adjustments described in Section 76330 for purposes of computing
apportionments. 
   (k) This section shall remain operative only until June 30, 2013,
and as of January 1, 2014, is repealed, unless a later enacted
statute, that is enacted before January 1, 2014, deletes or extends
that date. 
   SEC. 66.    Section 76140 is added to the  
  Education Code   , to read:  
   76140.  (a) A community college district may admit and shall
charge a tuition fee to nonresident students. The district may exempt
from all or parts of the fee any person described in paragraph (1),
(2), or (3):
   (1) All nonresidents who enroll for six or fewer units. Exemptions
made pursuant to this paragraph shall not be made on an individual
basis.
   (2) Any nonresident who is both a citizen and resident of a
foreign country, if the nonresident has demonstrated a financial need
for the exemption. Not more than 10 percent of the nonresident
foreign students attending any community college district may be so
exempted. Exemptions made pursuant to this paragraph may be made on
an individual basis.
   (3) (A) A student who, as of August 29, 2005, was enrolled, or
admitted with an intention to enroll, in the fall term of the 2005-06
academic year in a regionally accredited institution of higher
education in Alabama, Louisiana, or Mississippi, and who could not
continue his or her attendance at that institution as a direct
consequence of damage sustained by that institution as a result of
Hurricane Katrina.
   (B) The chancellor shall develop guidelines for the implementation
of this paragraph. These guidelines shall include standards for
appropriate documentation of student eligibility to the extent
feasible.
   (C) This paragraph shall apply only to the 2005-06 academic year.
   (b) A district may contract with a state, a county contiguous to
California, the federal government, or a foreign country, or an
agency thereof, for payment of all or a part of a nonresident student'
s tuition fee.
   (c) Nonresident students shall not be reported as full-time
equivalent students (FTES) for state apportionment purposes, except
as provided by subdivision (j) or another statute, in which case a
nonresident tuition fee may not be charged.
   (d) The nonresident tuition fee shall be set by the governing
board of each community college district not later than February 1 of
each year for the succeeding fiscal year. The governing board of
each community college district shall provide nonresident students
with notice of nonresident tuition fee changes during the spring term
before the fall term in which the change will take effect.
Nonresident tuition fee increases shall be gradual, moderate, and
predictable. The fee may be paid in installments, as determined by
the governing board of the district.
   (e) (1) The fee established by the governing board pursuant to
subdivision (d) shall represent for nonresident students enrolled in
30 semester units or 45 quarter units of credit per fiscal year one
or more of the following:
   (A) The amount that was expended by the district for the expense
of education as defined by the California Community College Budget
and Accounting Manual in the preceding fiscal year increased by the
projected percent increase in the United States Consumer Price Index
as determined by the Department of Finance for the current fiscal
year and succeeding fiscal year and divided by the FTES (including
nonresident students) attending in the district in the preceding
fiscal year. However, if for the district's preceding fiscal year
FTES of all students attending in the district in noncredit courses
is equal to, or greater than, 10 percent of the district's total FTES
attending in the district, the district may substitute the data for
expense of education in grades 13 and 14 and FTES in grades 13 and 14
attending in the district.
   (B) The expense of education in the preceding fiscal year of all
districts increased by the projected percent increase in the United
States Consumer Price Index as determined by the Department of
Finance for the fiscal year and succeeding fiscal year and divided by
the FTES (including nonresident students) attending all districts
during the preceding fiscal year. However, if the amount calculated
under this paragraph for the succeeding fiscal year is less than the
amount established for the current fiscal year or for any of the past
four fiscal years, the district may set the nonresident tuition fee
at the greater of the current or any of the past four-year amounts.
   (C) An amount not to exceed the fee established by the governing
board of any contiguous district.
   (D) An amount not to exceed the amount that was expended by the
district for the expense of education, but in no case less than the
statewide average as set forth in subparagraph (B).
   (E) An amount no greater than the average of the nonresident
tuition fees of public community colleges of no less than 12 states
that are comparable to California in cost of living. The
determination of comparable states shall be based on a composite
cost-of-living index as determined by the United States Department of
Labor or a cooperating government agency.
   (2) The additional revenue generated by the increased nonresident
tuition permitted under the amendments made to this subdivision
during the 2009-10 Regular Session shall be used to expand and
enhance services to resident students. In no event shall the
admission of nonresident students come at the expense of resident
enrollment.
   (f) The governing board of each community college district also
shall adopt a tuition fee per unit of credit for nonresident students
enrolled in more or less than 15 units of credit per term by
dividing the fee determined in subdivision (e) by 30 for colleges
operating on the semester system and 45 for colleges operating on the
quarter system and rounding to the nearest whole dollar. The same
rate shall be uniformly charged nonresident students attending any
terms or sessions maintained by the community college. The rate
charged shall be the rate established for the fiscal year in which
the term or session ends.
   (g) Any loss in district revenue generated by the nonresident
tuition fee shall not be offset by additional state funding.
   (h) Any district that has fewer than 1,500 FTES and whose boundary
is within 10 miles of another state that has a reciprocity agreement
with California governing student attendance and fees may exempt
students from that state from the mandatory fee requirement described
in subdivision (a) for nonresident students.
   (i) Any district that has more than 1,500, but less than 3,001,
FTES and whose boundary is within 10 miles of another state that has
a reciprocity agreement with California governing student attendance
and fees may, in any one fiscal year, exempt up to 100 FTES from that
state from the mandatory fee requirement described in subdivision
(a) for nonresident students.
   (j) The attendance of nonresident students who are exempted
pursuant to subdivision (h) or (i), or pursuant to paragraph (3) of
subdivision (a), from the mandatory fee requirement described in
subdivision (a) for nonresident students may be reported as resident
FTES for state apportionment purposes. Any nonresident student
reported as resident FTES for state apportionment purposes pursuant
to subdivision (h) or (i) shall pay a per unit fee that is three
times the amount of the fee established for residents pursuant to
Section 76300. That fee is to be included in the FTES adjustments
described in Section 76330 for purposes of computing apportionments.
   (k) This section shall become operative on July 1, 2013. 
   SEC. 67.    Section 84321.6 of the   
 Education Code   is amended to read: 
   84321.6.  (a) Notwithstanding any other law that governs the
regulations adopted by the Chancellor of the California Community
Colleges to disburse funds, the payment of apportionments to 
community college  districts pursuant to Sections 84320 and
84321 shall be adjusted, commencing with the 2011-12 fiscal year, by
the following:
   (1) For the month of June, two hundred twenty-one million five
hundred thousand dollars ($221,500,000) shall be deferred to July.
   (2) For the month of May, one hundred twenty-four million five
hundred thousand dollars ($124,500,000) shall be deferred, of which
one hundred three million dollars ($103,000,000) shall be deferred to
July and twenty-one million five hundred thousand dollars
($21,500,000) shall be deferred to October.
                                                                  (3)
For the month of April, one hundred seventy-nine million five
hundred thousand dollars ($179,500,000) shall be deferred, of which
one hundred fifty-eight million dollars ($158,000,000) shall be
deferred to July and twenty-one million five hundred thousand dollars
($21,500,000) shall be deferred to October.
   (4) For the month of March, one hundred nineteen million five
hundred thousand dollars ($119,500,000) shall be deferred, of which
seventy-six million five hundred thousand dollars ($76,500,000) shall
be deferred to July and forty-three million dollars ($43,000,000)
shall be deferred to October.
   (5) For the month of February, one hundred fifty-eight million
dollars ($158,000,000) shall be deferred, of which one hundred
thirty-six million five hundred thousand dollars ($136,500,000) shall
be deferred to July and twenty-one million five hundred thousand
dollars ($21,500,000) shall be deferred to October.
   (6) For the month of January, one hundred fifty-eight million
dollars ($158,000,000) shall be deferred, of which one hundred
thirty-six million five hundred thousand dollars ($136,500,000) shall
be deferred to July and twenty-one million five hundred thousand
dollars ($21,500,000) shall be deferred to October.
   (b) The sum of nine hundred sixty-one million dollars
($961,000,000) is hereby appropriated from the General Fund to the
Board of Governors of the California Community Colleges for
apportionments to community college districts, for expenditure during
the 2012-13 fiscal year, to be expended in accordance with Schedule
(1) of Item 6870-101-0001 of Section 2.00 of the Budget Act of 2011.
   (c) Of the funds appropriated in subdivision (b), eight hundred
thirty-two million dollars ($832,000,000) shall be allocated in July
of the 2012-13 fiscal year and one hundred twenty-nine million
dollars ($129,000,000) shall be allocated in October in satisfaction
of the moneys deferred pursuant to subdivision (a).
   (d) For  the  purposes of making the computations
required by Section 8 of Article XVI of the California Constitution,
the appropriations made by subdivision (b) shall be deemed to be
"General Fund revenues appropriated for community college districts,"
as defined in subdivision (d) of Section 41202, for the 2012-13
fiscal year, and included within the "total allocations to school
districts and community college districts from General Fund proceeds
of taxes appropriated pursuant to Article XIII B," as defined in
subdivision (e) of Section 41202, for the 2012-13 fiscal year. 
   (e) This section shall become inoperative on December 15, 2012,
and, as of January 1, 2013, is repealed. 
   SEC. 68.    Section 84321.6 is added to the 
   Education Code   , to read:  
   84321.6.  (a) Notwithstanding any other law that governs the
regulations adopted by the Chancellor of the California Community
Colleges to disburse funds, the payment of apportionments to
community college districts pursuant to Sections 84320 and 84321
shall be adjusted by the following:
   (1) For the month of January, one hundred twenty-six million
ninety-four thousand dollars ($126,094,000) shall be deferred to
July.
   (2) For the month of February, one hundred thirty-five million
dollars ($135,000,000) shall be deferred to July.
   (3) For the month of March, one hundred thirty-five million
dollars ($135,000,000) shall be deferred to July.
   (4) For the month of April, one hundred thirty-five million
dollars ($135,000,000) shall be deferred to July.
   (5) For the month of May, one hundred thirty-five million dollars
($135,000,000) shall be deferred to July.
   (6) For the month of June, one hundred thirty-five million dollars
($135,000,000) shall be deferred to July.
   (b) In satisfaction of the moneys deferred pursuant to subdivision
(a), the sum of eight hundred one million ninety-four thousand
dollars ($801,094,000) is hereby appropriated in July of the 2013-14
fiscal year from the General Fund to the Board of Governors of the
California Community Colleges for apportionments to community college
districts, for expenditure during the 2013-14 fiscal year, to be
expended in accordance with Schedule (1) of Item 6870-101-0001 of
Section 2.00 of the Budget Act of 2012.
   (c) For purposes of making the computations required by Section 8
of Article XVI of the California Constitution, the appropriations
made by subdivision (b) shall be deemed to be "General Fund revenues
appropriated for community college districts," as defined in
subdivision (d) of Section 41202, for the 2013-14 fiscal year, and
included within the "total allocations to school districts and
community college districts from General Fund proceeds of taxes
appropriated pursuant to Article XIII B," as defined in subdivision
(e) of Section 41202, for the 2013-14 fiscal year.
   (d) This section shall not become operative until December 15,
2012, and shall become operative only if the Schools and Local Public
Safety Protection Act of 2012 (Attorney General reference number
12-0009) is approved by the voters at the November 6, 2012, statewide
general election, and all of the provisions of that act that modify
personal income tax rates become operative. If the Schools and Local
Public Safety Protection Act of 2012 (Attorney General reference
number 12-0009) is not approved by the voters at the November 6,
2012, statewide general election, or if the provisions of that act
that modify personal income tax rates do not become operative due to
a conflict with another initiative measure that is approved at the
same election and receives a greater number of affirmative votes,
this section shall not become operative and shall be repealed on
January 1, 2013. 
   SEC. 69.    Section 84321.6 is added to the 
   Education Code   , to read:  
   84321.6.  (a) Notwithstanding any other law that governs the
regulations adopted by the Chancellor of the California Community
Colleges to disburse funds, the payment of apportionments to
community college districts pursuant to Sections 84320 and 84321
shall be adjusted by the following:
   (1) For the month of January, one hundred forty million dollars
($140,000,000) shall be deferred to July.
   (2) For the month of February, one hundred forty million dollars
($140,000,000) shall be deferred to July.
   (3) For the month of March, one hundred forty million dollars
($140,000,000) shall be deferred to July.
   (4) For the month of April, one hundred sixty million dollars
($160,000,000) shall be deferred to July.
   (5) For the month of May, one hundred eighty million dollars
($180,000,000) shall be deferred to July.
   (6) For the month of June, two hundred one million dollars
($201,000,000) shall be deferred, of which seventy-two million
dollars ($72,000,000) shall be deferred to July and one hundred
twenty-nine million dollars ($129,000,000) shall be deferred to
October.
   (b) The sum of nine hundred sixty-one million dollars
($961,000,000) is hereby appropriated from the General Fund to the
Board of Governors of the California Community Colleges for
apportionments to community college districts, for expenditure during
the 2013-14 fiscal year, to be expended in accordance with Schedule
(1) of Item 6870-101-0001 of Section 2.00 of the Budget Act of 2012.
   (c) Of the funds appropriated in subdivision (b), eight hundred
thirty-two million dollars ($832,000,000) shall be allocated in July
of the 2013-14 fiscal year and one hundred twenty-nine million
dollars ($129,000,000) shall be allocated in October of that fiscal
year in satisfaction of the moneys deferred pursuant to subdivision
(a).
   (d) For the purposes of making the computations required by
Section 8 of Article XVI of the California Constitution, the
appropriations made by subdivision (b) shall be deemed to be "General
Fund revenues appropriated for community college districts," as
defined in subdivision (d) of Section 41202, for the 2013-14 fiscal
year, and included within the "total allocations to school districts
and community college districts from General Fund proceeds of taxes
appropriated pursuant to Article XIII B," as defined in subdivision
(e) of Section 41202, for the 2013-14 fiscal year.
   (e) This section shall not become operative until December 15,
2012, and shall become operative only if the Schools and Local Public
Safety Protection Act of 2012 (Attorney General reference number
12-0009) is not approved by the voters at the November 6, 2012,
statewide general election, or if the provisions of that act that
modify personal income tax rates do not become operative due to a
conflict with another initiative measure that is approved at the same
election and receives a greater number of affirmative votes. If the
Schools and Local Public Safety Protection Act of 2012 (Attorney
General reference number 12-0009) is approved by the voters at the
November 6, 2012, statewide general election, and all of the
provisions of that act that modify personal income tax rates become
operative, this section shall not become operative and shall be
repealed on January 1, 2013. 
   SEC. 70.    Section 7906 of the   Government
Code   is amended to read: 
   7906.  For school districts:
   (a) "ADA" means a school district's second principal apportionment
units of average daily attendance as determined pursuant to Section
42238.5 of the Education Code, including average daily attendance in
summer school, regional occupational centers and programs, and
apprenticeship programs, and excluding average daily attendance in
adult education programs. All other units of average daily attendance
including, but not limited to, special day classes for special
education pupils, shall be included.
   (1) For purposes of this subdivision, the average daily attendance
of summer school programs shall be determined pursuant to
subparagraph (F) of paragraph (1) of subdivision (a) of Section
14022.5 of the Education Code.
   (2) For purposes of this subdivision, the average daily attendance
of apprenticeship programs shall be determined pursuant to
subparagraph (D) of paragraph (1) of subdivision (a) of Section
14022.5 of the Education Code.
   (3) For the 2008-09, 2009-10, 2010-11, 2011-12,  and
 2012-13  , 2013-14, and 2014-15  fiscal years, the
average daily attendance of public school districts, including
county superintendents of schools, serving kindergarten and grades 1
to 12, inclusive, or any part thereof, shall include the same amount
of average daily attendance for classes for supplemental instruction
and regional occupational centers and programs that was used for
 the  purposes of this section for the 2007-08
fiscal year.
   (b) "Foundation program level" means:
   (1) For the 1978-79 fiscal year, one thousand two hundred
forty-one dollars ($1,241) for elementary school  districts,
one thousand three hundred twenty-two dollars ($1,322) for unified
 school  districts, and one thousand four hundred
twenty-seven dollars ($1,427) for high school districts.
   (2) For the 1979-80 fiscal year to the 1986-87 fiscal year,
inclusive, the levels specified in paragraph (1) increased by the
lesser of the change in cost of living or California per capita
personal income for the preceding calendar year.
   (3) For the 1986-87 fiscal year, the levels specified in paragraph
(2) increased by one hundred eighty dollars ($180) for elementary
 school  districts, one hundred ninety-one dollars ($191)
for unified  school  districts, and two hundred seven
dollars ($207) for high school districts.
   (4) For the 1987-88 fiscal year, the levels specified in paragraph
(3) increased by the lesser of the change in cost of living or
California per capita personal income for the preceding calendar
year.
   (5) For the 1988-89 fiscal year and each fiscal year thereafter,
the foundation program level shall be the appropriations limit of the
school district for the current fiscal year, plus amounts paid for
any nonreimbursed court or federal mandates imposed on or after
November 6, 1979, less the sum of the following:
   (A) Interest earned on the proceeds of taxes during the current
fiscal year.
   (B) The 50 percent of miscellaneous funds received during the
current fiscal year  which   that  are from
the proceeds of taxes.
   (C) Locally voted taxes received during the current fiscal year,
such as parcel taxes or square foot taxes, unless for voter-approved
bonded debt.
   (D) Any other local proceeds of taxes received during the current
fiscal year, other than local taxes which count towards the revenue
limit, such as excess bond revenues transferred to a district's
general fund pursuant to Section 15234 of the Education Code.
   (c) "Proceeds of taxes" shall be deemed to include subventions
received from the state only if those subventions are for one of the
following two purposes:
   (1) Basic aid subventions of one hundred twenty dollars ($120) per
ADA.
   (2) Additional apportionments  which   that
 , when added to the district's local revenues as defined in
Section 42238 of the Education Code, do not exceed the foundation
program level for that district. In no case shall subventions
received from the state for reimbursement of state mandates in
accordance with the provisions of Section 6 of Article XIII B of the
California Constitution or of Section 17561 or for reimbursement of
court or federal mandates imposed on or after November 6, 1979, be
considered "proceeds of taxes" for  the  purposes of
this section.
   (d) Proceeds of taxes for a fiscal year shall not include any
proceeds of taxes within the district's beginning balance or reserve,
unless those funds were not appropriated in a prior fiscal year.
Funds that were appropriated to a reserve or other fund referenced in
Section 5 of Article XIII B of the California Constitution shall be
deemed to be appropriated for the purpose of this paragraph.
   (e) The remainder of the state apportionments, including special
purpose apportionments and categorical aid subventions shall not be
considered proceeds of taxes for a school district.
   (f) Each school district shall report to the Superintendent of
Public Instruction and to the Director of Finance at least annually
its appropriations limit, its appropriations subject to limitation,
the amount of its state aid apportionments and subventions included
within the proceeds of taxes of the school district, and amounts
excluded from its appropriations limit, at a time and in a manner
prescribed by the Superintendent of Public Instruction and approved
by the Director of Finance.
   (g) For the 1988-89 fiscal year and each fiscal year thereafter,
nothing in paragraph (2) of subdivision (c) shall be so construed as
to require that the amount determined pursuant to subdivision (b) be
multiplied by the amount determined pursuant to subdivision (a) for
purposes of determining the amount of state aid included in school
district "proceeds of taxes" for purposes of this section.
   SEC. 71.    Section 17581.6 is added to the 
 Government Code   , to read:  
   17581.6.  (a) Commencing with the 2012-13 fiscal year, funds
provided in Item 6110-296-0001 of Section 2.00 of the annual Budget
Act shall be allocated as block grants to school districts, charter
schools, and county offices of education to support all of the
mandated programs described in subdivision (d).
   (b) (1) Notwithstanding any other law, each fiscal year a school
district or county office of education may receive funding for the
performance of the mandated activities listed in subdivision (d)
either through the block grant established pursuant to this section
or by claiming reimbursement pursuant to Section 17560. A school
district or county office of education that claims reimbursement for
any mandated activities pursuant to Section 17560 for mandated costs
incurred during a fiscal year shall not be eligible for funding
pursuant to this section for the same fiscal year.
   (2) A school district and county office of education that elects
to receive block grant funding instead of seeking reimbursement
pursuant to Section 17560 shall, and any charter school that elects
to receive block grant funding shall, submit a letter of intent to
the Superintendent of Public Instruction on or before September 30 of
each year requesting block grant funding pursuant to this section.
The Superintendent shall distribute funding provided pursuant to
subdivision (a) to school districts, charter schools, and county
offices of education pursuant to the rates set forth in Item
6110-296-0001 of Section 2.00 of the annual Budget Act. Funding
distributed pursuant to this section is in lieu of reimbursement
pursuant to Section 6 of Article XIII B of the California
Constitution for the performance of all activities specified in
subdivision (d) as those activities pertain to school districts and
county offices of education. A school district, county office of
education, or charter school that submits a letter of intent and
receives block grant funding pursuant to this section shall not also
be eligible to submit a claim for reimbursement of costs incurred for
a mandated program set forth in subdivision (d) for the fiscal year
for which the block grant funding is received.
   (c) Block grant funding provided to school districts, charter
schools, and county offices of education pursuant to this section is
subject to annual audits required by Section 41020 of the Education
Code.
   (d) Block grant funding provided pursuant to this section to
individual school districts, charter schools, and county offices of
education is to support all of the following mandated programs:
   (1) Absentee Ballots (CSM 3713; Chapter 77 of the Statutes of 1978
and Chapter 1032 of the Statutes of 2002).
   (2) Agency Fee Arrangements (00-TC-17 and 01-TC-14; Chapter 893 of
the Statutes of 2000 and Chapter 805 of the Statutes of 2001).
   (3) AIDS Instruction and AIDS Prevention Instruction (CSM 4422,
99-TC-07, and 00-TC-01; Chapter 818 of the Statutes of 1991; and
Chapter 403 of the Statutes of 1998).
   (4) California State Teachers' Retirement System Service Credit
(02-TC-19; Chapter 603 of the Statutes of 1994; Chapters 383, 634,
and 680 of the Statutes of 1996; Chapter 838 of the Statutes of 1997;
Chapter 965 of the Statutes of 1998; Chapter 939 of the Statutes of
1999; and Chapter 1021 of the Statutes of 2000).
   (5) Caregiver Affidavits (CSM 4497; Chapter 98 of the Statutes of
1994).
   (6) Charter Schools I, II, and III (CSM 4437, 99-TC-03, and
99-TC-14; Chapter 781 of the Statutes of 1992; Chapters 34 and 673 of
the Statutes of 1998; Chapter 34 of the Statutes of 1998; and
Chapter 78 of the Statutes of 1999).
   (7) Collective Bargaining (CSM 4425; Chapter 961 of the Statutes
of 1975).
   (8) Comprehensive School Safety Plans (98-TC-01 and 99-TC-10;
Chapter 736 of the Statutes of 1997; Chapter 996 of the Statutes of
1999; and Chapter 828 of the Statutes of 2003).
   (9) Consolidation of Annual Parent Notification/Schoolsite
Discipline Rules/Alternative Schools (CSM 4488, CSM 4461, 99-TC-09,
00-TC-12, 97-TC-24, CSM 4453, CSM 4474, CSM 4462; Chapter 448 of the
Statutes of 1975; Chapter 965 of the Statutes of 1977; Chapter 975 of
the Statutes of 1980; Chapter 469 of the Statutes of 1981; Chapter
459 of the Statutes of 1985; Chapters 87 and 97 of the Statutes of
1986; Chapter 1452 of the Statutes of 1987; Chapters 65 and 1284 of
the Statutes of 1988; Chapter 213 of the Statutes of 1989; Chapters
10 and 403 of the Statutes of 1990; Chapter 906 of the Statutes of
1992; Chapter 1296 of the Statutes of 1993; Chapter 929 of the
Statutes of 1997; Chapters 846 and 1031 of the Statutes of 1998;
Chapter 1 of the Statutes of 1999, First Extraordinary Session;
Chapter 73 of the Statutes of 2000; Chapter 650 of the Statutes of
2003; Chapter 895 of the Statutes of 2004; and Chapter 677 of the
Statutes of 2005).
   (10) Consolidation of Law Enforcement Agency Notification and
Missing Children Reports (CSM 4505; Chapter 1117 of the Statutes of
1989 and 01-TC-09; Chapter 249 of the Statutes of 1986; and Chapter
832 of the Statutes of 1999).
   (11) Consolidation of Notification to Teachers: Pupils Subject to
Suspension or Expulsion I and II, and Pupil Discipline Records
(00-TC-10 and 00-TC-11; Chapter 345 of the Statutes of 2000).
   (12) County Office of Education Fiscal Accountability Reporting
(97-TC-20; Chapters 917 and 1452 of the Statutes of 1987; Chapters
1461 and 1462 of the Statutes of 1988; Chapter 1372 of the Statutes
of 1990; Chapter 1213 of the Statutes of 1991; Chapter 323 of the
Statutes of 1992; Chapters 923 and 924 of the Statutes of 1993;
Chapters 650 and 1002 of the Statutes of 1994; and Chapter 525 of the
Statutes of 1995).
   (13) Criminal Background Checks (97-TC-16; Chapters 588 and 589 of
the Statutes of 1997).
   (14) Criminal Background Checks II (00-TC-05; Chapters 594 and 840
of the Statutes of 1998; and Chapter 78 of the Statutes of 1999).
   (15) Differential Pay and Reemployment (99-TC-02; Chapter 30 of
the Statutes of 1998).
   (16) Financial and Compliance Audits (CSM 4498 and CSM 4498-A;
Chapter 36 of the Statutes of 1977).
   (17) Habitual Truants (CSM 4487 and CSM 4487-A; Chapter 1184 of
the Statutes of 1975).
   (18) High School Exit Examination (00-TC-06; Chapter 1 of the
Statutes of 1999, First Extraordinary Session; and Chapter 135 of the
Statutes of 1999).
   (19) Immunization Records (SB 90-120; Chapter 1176 of the Statutes
of 1977).
   (20) Immunization Records--Hepatitis B (98-TC-05; Chapter 325 of
the Statutes of 1978; Chapter 435 of the Statutes of 1979; Chapter
472 of the Statutes of 1982; Chapter 984 of the Statutes of 1991;
Chapter 1300 of the Statutes of 1992; Chapter 1172 of the Statutes of
1994; Chapters 291 and 415 of the Statutes of 1995; Chapter 1023 of
the Statutes of 1996; and Chapters 855 and 882 of the Statutes of
1997).
   (21) Intradistrict Attendance (CSM 4454; Chapters 161 and 915 of
the Statutes of 1993).
   (22) Juvenile Court Notices II (CSM 4475; Chapters 1011 and 1423
of the Statutes of 1984; Chapter 1019 of the Statutes of 1994; and
Chapter 71 of the Statutes of 1995).
   (23) Mandate Reimbursement Process I and II (CSM 4204, CSM 4485,
and 05-TC-05; Chapter 486 of the Statutes of 1975).
   (24) Notification of Truancy (CSM 4133; Chapter 498 of the
Statutes of 1983; Chapter 1023 of the Statutes of 1994; and Chapter
19 of the Statutes of 1995).
   (25) Open Meetings/Brown Act Reform (CSM 4257 and CSM 4469;
Chapter 641 of the Statutes of 1986; and Chapters 1136, 1137, and
1138 of the Statutes of 1993).
   (26) Physical Performance Tests (96-365-01; Chapter 975 of the
Statutes of 1995).
   (27) Prevailing Wage Rate (01-TC-28; Chapter 1249 of the Statutes
of 1978).
   (28) Pupil Health Screenings (CSM 4440; Chapter 1208 of the
Statutes of 1976; Chapter 373 of the Statutes of 1991; and Chapter
750 of the Statutes of 1992).
   (29) Pupil Promotion and Retention (98-TC-19; Chapter 100 of the
Statutes of 1981; Chapter 1388 of the Statutes of 1982; Chapter 498
of the Statutes of 1983; Chapter 1263 of the Statutes of 1990; and
Chapters 742 and 743 of the Statutes of 1998).
   (30) Pupil Safety Notices (02-TC-13; Chapter 498 of the Statutes
of 1983; Chapter 482 of the Statutes of 1984; Chapter 948 of the
Statutes of 1984; Chapter 196 of the Statutes of 1986; Chapter 332 of
the Statutes of 1986; Chapter 445 of the Statutes of 1992; Chapter
1317 of the Statutes of 1992; Chapter 589 of the Statutes of 1993;
Chapter 1172 of the Statutes of 1994; Chapter 1023 of the Statutes of
1996; and Chapter 492 of the Statutes of 2000).
   (31) Pupil Expulsions (CSM 4455; Chapter 1253 of the Statutes of
1975; Chapter 965 of the Statutes of 1977; Chapter 668 of the
Statutes of 1978; Chapter 318 of the Statutes of 1982; Chapter 498 of
the Statutes of 1983; Chapter 622 of the Statutes of 1984; Chapter
942 of the Statutes of 1987; Chapter 1231 of the Statutes of 1990;
Chapter 152 of the Statutes of 1992; Chapters 1255, 1256, and 1257 of
the Statutes of 1993; and Chapter 146 of the Statutes of 1994).
   (32) Pupil Expulsion Appeals (CSM 4463; Chapter 1253 of the
Statutes of 1975; Chapter 965 of the Statutes of 1977; Chapter 668 of
the Statutes of 1978; and Chapter 498 of the Statutes of 1983).
         (33) Pupil Suspensions (CSM 4456; Chapter 965 of the
Statutes of 1977; Chapter 668 of the Statutes of 1978; Chapter 73 of
the Statutes of 1980; Chapter 498 of the Statutes of 1983; Chapter
856 of the Statutes of 1985; and Chapter 134 of the Statutes of
1987).
   (34) School Accountability Report Cards (97-TC-21, 00-TC-09,
00-TC-13, and 02-TC-32; Chapter 918 of the Statutes of 1997; Chapter
912 of the Statutes of 1997; Chapter 824 of the Statutes of 1994;
Chapter 1031 of the Statutes of 1993; Chapter 759 of the Statutes of
1992; and Chapter 1463 of the Statutes of 1989).
   (35) School District Fiscal Accountability Reporting (97-TC-19;
Chapter 100 of the Statutes of 1981; Chapter 185 of the Statutes of
1985; Chapter 1150 of the Statutes of 1986; Chapters 917 and 1452 of
the Statutes of 1987; Chapters 1461 and 1462 of the Statutes of 1988;
Chapter 525 of the Statutes of 1990; Chapter 1213 of the Statutes of
1991; Chapter 323 of the Statutes of 1992; Chapters 923 and 924 of
the Statutes of 1993; Chapters 650 and 1002 of the Statutes of 1994;
and Chapter 525 of the Statutes of 1995).
   (36) School District Reorganization (98-TC-24; Chapter 1192 of the
Statutes of 1980; and Chapter 1186 of the Statutes of 1994).
   (37) The Stull Act (98-TC-25; Chapter 498 of the Statutes of 1983;
and Chapter 4 of the Statutes of 1999).
   (38) Threats Against Peace Officers (CSM 96-365-02; Chapter 1249
of the Statutes of 1992; and Chapter 666 of the Statutes of 1995).
   (e) The Superintendent of Public Instruction shall compile a list
of all school districts, charter schools, and county offices of
education that received block grant funding in the prior fiscal year
pursuant to this section. This list shall include the total amount
each school district, charter school, and county office of education
received. The Superintendent shall provide this information to the
appropriate fiscal and policy committees of the Legislature, the
Controller, the Department of Finance, and the Legislative Analyst
Office on or before September 9 of each year. 
   SEC. 72.    Section 17581.7 is added to the 
 Government Code   , to read:  
   17581.7.  (a) Commencing with the 2012-13 fiscal year, funds
provided in Item 6870-296-0001 of Section 2.00 of the annual Budget
Act shall be allocated as block grants to community college districts
to support all of the mandated programs described in subdivision
(d).
   (b) (1) Notwithstanding any other law, each fiscal year a
community college district may receive funding for the performance of
mandated activities listed in subdivision (d) either through the
block grant established pursuant to this section or by claiming
reimbursement pursuant to Section 17560. A community college district
that claims reimbursement for any mandated activities pursuant to
Section 17560 for mandated costs incurred during a fiscal year shall
not be eligible for funding pursuant to this section for the same
fiscal year.
   (2) A community college district that elects to receive block
grant funding instead of seeking reimbursement pursuant to Section
17560 shall submit a letter of intent to the Chancellor of the
California Community Colleges on or before September 30 of each year
requesting block grant funding pursuant to this section. The
chancellor shall distribute funding provided pursuant to subdivision
(a) to community colleges pursuant to the rates set forth in Item
6870-296-0001 of Section 2.00 of the annual Budget Act. Funding
distributed pursuant to this section is in lieu of reimbursement
pursuant to Section 6 of Article XIII B of the California
Constitution for the performance of all activities specified in
subdivision (d) as those activities pertain to community college
districts. A community college district that submits a letter of
intent and receives block grant funding pursuant to this section
shall not also be eligible to submit a claim for reimbursement of
costs incurred for a mandated program set forth in subdivision (d)
for the fiscal year for which the block grant funding is received.
   (c) Block grant funding provided to community college districts
pursuant to this section is subject to annual audits required by
Section 84040 of the Education Code.
   (d) Block grant funding provided pursuant to this section to
individual community college districts is to support all of the
following mandated programs:
   (1) Absentee Ballots (CSM 3713; Chapter 77 of the Statutes of
1978; and Chapter 1032 of the Statutes of 2002).
   (2) Agency Fee Arrangements (00-TC-17 and 01-TC-14; Chapter 893 of
the Statutes of 2000; and Chapter 805 of the Statutes of 2001).
   (3) Cal Grants (02-TC-28; Chapter 403 of the Statutes of 2000).
   (4) California State Teachers Retirement System Service Credit
(02-TC-19; Chapter 603 of the Statutes of 1994; Chapters 383, 634,
and 680 of the Statutes of 1996; Chapter 838 of the Statutes of 1997;
Chapter 965 of the Statutes of 1998; Chapter 939 of the Statutes of
1999; and Chapter 1021 of the Statutes of 2000).
   (5) Collective Bargaining (CSM 4425 and 97-TC-08; Chapter 961 of
the Statutes of 1975).
   (6) Community College Construction (02-TC-47; Chapter 910 of the
Statutes of 1980; Chapters 470 and 891 of the Statutes of 1981;
Chapter 973 of the Statutes of 1988; Chapter 1372 of the Statutes of
1990; Chapter 1038 of the Statutes of 1991; and Chapter 758 of the
Statutes of 1995).
   (7) Discrimination Complaint Procedures (02-TC-42 and portions of
02-TC-25 and 02-TC-31; Chapter 1010 of the Statutes of 1976; Chapter
470 of the Statutes of 1981; Chapter 1117 of the Statutes of 1982;
Chapter 143 of the Statutes of 1983; Chapter 1371 of the Statutes of
1984; Chapter 973 of the Statutes of 1988; Chapter 1372 of the
Statutes of 1990; Chapter 1198 of the Statutes of 1991; Chapter 914
of the Statutes of 1998; Chapter 587 of the Statutes of 1999; and
Chapter 1169 of the Statutes of 2002).
   (8) Enrollment Fee Collection and Waivers (99-TC-13 and 00-TC-15).

   (9) Health Fee Elimination (CSM 4206; Chapter 1 of the Statutes of
1984, Second Extraordinary Session).
   (10) Mandate Reimbursement Process I and II (CSM 4204, CSM 4485,
and 05-TC-05; Chapter 486 of the Statutes of 1975).
   (11) Minimum Conditions for State Aid (02-TC-25 and 02-TC-31;
Chapter 802 of the Statutes of 1975; Chapters 275, 783, 1010, and
1176 of the Statutes of 1976; Chapters 36 and 967 of the Statutes of
1977; Chapters 797 and 977 of the Statutes of 1979; Chapter 910 of
the Statutes of 1980; Chapters 470 and 891 of the Statutes of 1981;
Chapters 1117 and 1329 of the Statutes of 1982; Chapters 143 and 537
of the Statutes of 1983; Chapter 1371 of the Statutes of 1984;
Chapter 1467 of the Statutes of 1986; Chapters 973 and 1514 of the
Statutes of 1988; Chapters 1372 and 1667 of the Statutes of 1990;
Chapters 1038, 1188, and 1198 of the Statutes of 1991; Chapters 493
and 758 of the Statutes of 1995; Chapters 365, 914, and 1023 of the
Statutes of 1998; Chapter 587 of the Statutes of 1999; Chapter 187 of
the Statutes of 2000; and Chapter 1169 of the Statutes of 2002).
   (12) Open Meetings/Brown Act Reform (CSM 4257 and CSM 4469;
Chapter 641 of the Statutes of 1986; and Chapters 1136, 1137, and
1138 of the Statutes of 1993).
   (13) Prevailing Wage Rate (01-TC-28; Chapter 1249 of the Statutes
of 1978).
   (14) Reporting Improper Governmental Activities (02-TC-24; Chapter
416 of the Statutes of 2001; and Chapter 81 of the Statutes of
2002).
   (15) Sex Offenders: Disclosure by Law Enforcement Officers
(97-TC-15; Chapters 908 and 909 of the Statutes of 1996; Chapters 17,
80, 817, 818, 819, 820, 821, and 822 of the Statutes of 1997; and
Chapters 485, 550, 927, 928, 929, and 930 of the Statutes of 1998).
   (16) Threats Against Peace Officers (CSM 96-365-02; Chapter 1249
of the Statutes of 1992; and Chapter 666 of the Statutes of 1995).
   (17) Tuition Fee Waivers (02-TC-21; Chapter 36 of the Statutes of
1977; Chapter 580 of the Statutes of 1980; Chapter 102 of the
Statutes of 1981; Chapter 1070 of the Statutes of 1982; Chapter 753
of the Statutes of 1988; Chapters 424, 900, and 985 of the Statutes
1989; Chapter 1372 of the Statutes of 1990; Chapter 455 of the
Statutes of 1991; Chapter 8 of the Statutes of 1993; Chapter 389 of
the Statutes of 1995; Chapter 438 of the Statutes of 1997; Chapter
952 of the Statutes of 1998; Chapters 571 and 949 of the Statutes of
2000; Chapter 814 of the Statutes of 2001; and Chapter 450 of the
Statutes of 2002).
   (e) The Chancellor of the California Community Colleges shall
compile a list of all community college districts that received block
grant funding in the prior fiscal year pursuant to subdivision (a).
This list shall include the total amount each community college
district received. The chancellor shall provide this information to
the appropriate fiscal and policy committees of the Legislature, the
Controller, the Department of Finance, and the Legislative Analyst's
Office on or before September 9 of each year. 
   SEC. 73.    Section 53850 of the  
Government Code   is amended to read: 
   53850.   (a)    As used in this article, "local
agency" means  a  county, city and county, city, school
district of any type, community college district, county board of
education, or any other municipal or public corporation or district.

   (b) For purposes of this article only, "local agency" also
includes a charter school. This subdivision does not make a charter
school a local agency for any purpose other than for this article.

   SEC. 74.    Section 53853 of the  
Government Code   is amended to read: 
   53853.  (a) The note or notes shall be issued pursuant to a
resolution  authorizing the issuance thereof 
adopted by the legislative body of the local agency  authorizing
the issuance of the note or notes  , except that the note or
notes of a county board of education, school district,  charter
school,  or community college district that has not been
accorded fiscal accountability status pursuant to Section 1080,
42647, 42650, or 85266 of the Education Code shall be issued in the
name of the school district  , charter school,  or community
college district by the board of supervisors of the county, the
county superintendent of which has jurisdiction over the school
district  , charter school,  or community college district,
as soon as possible following receipt of a resolution of the
governing board  or body  of the school district  ,
charter school,  or community college district requesting the
borrowing and the note or notes of a county board of education shall
be issued in the name of the county board of education by the board
of supervisors of the county as soon as possible following receipt of
a resolution of the county board of education requesting that the
county assist in that borrowing. The school district,  charter
school,  community college district, or county board of
education that submits that resolution to the county board of
supervisors shall simultaneously provide a copy of the resolution to
the county superintendent of schools and the county treasurer.
   (b) Notwithstanding subdivision (a), if the appropriate county
board of supervisors fails to authorize, by resolution, the issuance
of a note or notes in the name of a county board of education, school
district,  charter school,  or community college district
as specified by that subdivision within 45 calendar days following
its receipt of the resolution of the county board of education,
 or of  the governing board of the school district
or community college district,  or the governing body of the
charter school  requesting that issuance, or if the county board
of supervisors notifies the county board of education, school
district,  charter school,  or community college district
that it will not authorize that issuance within that 45-day period,
then the note or notes may be issued by the county board of
education, school district,  charter school,  or community
college district in its name pursuant to the previously adopted
resolution. The resolution adopted by the governing board  or
body  of the school district  , charter school,  or
community college district, or by the county board of education,
shall not contain direction to the county treasurer for the
investment of any proceeds of the note or notes while deposited in
the county treasury, but may direct the investment of proceeds of the
note or notes held by a trustee and any other amounts held by that
trustee or pledged for repayment or security of the note or notes.
This subdivision applies only in the case of a note or notes of a
county board of education, school district,  charter school,
 or community college district to be issued in conjunction with
a note or notes of one or more other county board of education,
school district,  charter school,  or community college
district.  No   A  county board of
supervisors, county treasurer, or county auditor shall  not 
be deemed to have any fiduciary responsibility with regard to any
note or notes issued pursuant to this subdivision. This subdivision
shall not apply to a county board of education, school district, 
charter school,  or community college district that is under
the authority of a trustee as a result of accepting an emergency
apportionment.
   (c) Notes authorized to be issued may be issued from time to time
as provided in the resolution. The resolution of the county board of
education, school district,  charter school,  or community
college district shall set forth the form and the manner of execution
of the note or notes.
   SEC. 75.    Section 65995.7 of the  
Government Code  is amended to read: 
   65995.7.  (a) (1) If state funds for new school facility
construction are not available, the governing board of a school
district that complies with Section 65995.5 may increase the
alternative fee, charge, dedication, or other requirement calculated
pursuant to subdivision (c) of Section 65995.5 by an amount that may
not exceed the amount calculated pursuant to subdivision (c) of
Section 65995.5, except that for the purposes of calculating this
additional amount, the amount identified in paragraph (2) of
subdivision (c) of Section 65995.5 may not be subtracted from the
amount determined pursuant to paragraph (1) of subdivision (c) of
Section 65995.5. For purposes of this section, state funds are not
available if the State Allocation Board is no longer approving
apportionments for new construction pursuant to Article 5 (commencing
with Section 17072.20) of Chapter 12.5 of Part 10 of the Education
Code due to a lack of funds available for new construction. Upon
making a determination that state funds are no longer available, the
State Allocation Board shall notify the Secretary of the Senate and
the Chief Clerk of the Assembly, in writing, of that determination
and the date when state funds are no longer available for publication
in the respective journal of each house. For the purposes of making
this determination, the board shall not consider whether funds are
available for, or whether it is making preliminary apportionments or
final apportionments pursuant to, Article 11 (commencing with Section
17078.10).
   (2) Paragraph (1) shall become inoperative commencing on the
effective date of the measure that amended this section to add this
paragraph, and shall remain inoperative through the earlier of either
of the following:
   (A) November 5, 2002, if the voters reject the Kindergarten
University Public Education Facilities Bond Act of 2002, after which
date paragraph (1) shall again become operative.
   (B) The date of the 2004 direct primary election after which date
paragraph (1) shall again become operative. 
   (3) Paragraph (1) shall become inoperative commencing on the
effective date of the measure that amended this section to add this
paragraph, and shall remain inoperative through December 31, 2014,
after which date paragraph (1) shall again become operative, except
that it may become operative sooner in either of the following
circumstances: 
   (A) A statewide school facilities bond passes before December 31,
2014, in which case paragraph (1) shall become operative upon
certification of the election in which the voters approved the bond.
 
   (B) A statewide school facilities bond has not been placed on the
ballot for the November 4, 2014, statewide general election by August
31, 2014, in which case paragraph (1) shall become operative on
September 1, 2014. 
   (b) A governing board may offer a reimbursement election to the
person subject to the fee, charge, dedication, or other requirement
that provides the person with the right to monetary reimbursement of
the supplemental amount authorized by this section, to the extent
that the district receives funds from state sources for construction
of the facilities for which that amount was required, less any amount
expended by the district for interim housing. At the option of the
person subject to the fee, charge, dedication, or other requirement
the reimbursement election may be made on a tract or lot basis.
Reimbursement of available funds shall be made within 30 days as they
are received by the district.
   (c) A governing board may offer the person subject to the fee,
charge, dedication, or other requirement an opportunity to negotiate
an alternative reimbursement agreement if the terms of the agreement
are mutually agreed upon.
   (d) A governing board may provide that the rights granted by the
reimbursement election or the alternative reimbursement agreement are
assignable.
   SEC. 76.    Item 6110-108-0001 of Section 2.00 of the
  Budget Act of 2011   is amended to read: 
6110-108-0001--For local assistance,
Department of Education (Proposition 98),
Program 20-Instructional Support, for
transfer to Section A of the State School
Fund, the Supplemental School Counseling
Program, established pursuant to Article
4.5 (commencing with Section 52378) of
Chapter 9 of Part 28 of Division 4 of
Title 2 of the Education Code..............  208,391,000

                                              208,097,000 
      Provisions:
      1.     Of the funds appropriated in
             this item, $0 is to reflect a
             cost-of-living adjustment.
      2.     The funds appropriated in this
             item reflect an adjustment to
             the base funding of 0.0
             percent for the annual
             adjustment in statewide
             average daily attendance.
      3.     The amount appropriated in
             this item shall be reduced
             pursuant to Section
             12.42.


   SEC. 77.    Item 6110-161-0001 of Section 2.00 of the
  Budget Act of 2011   , as amended by Section 3
of Chapter 135 of the Statutes of 2011, is amended to read: 
6110-161-0001--For local assistance,
Department of Education (Proposition
98), Program 10.60-Special Education
Programs for Exceptional Children........  3,030,913,000

                                            2,810,308,000 
    Schedule:
    (1)  10.60.050.003-
         Special education     2,960,010,00 
         instruction.........             
2,739,405,0  0
                                          0 
    (2)  10.60.050.080-Early
         Education Program
         for Individuals
         with Exceptional
         Needs...............   85,298,000
    (3)  Reimbursements for
         Early Education
         Program, Part C.....  -14,395,000
    Provisions:
    1.   Funds appropriated by this item
         are for transfer by the
         Controller to Section A of the
         State School Fund, in lieu of
         the amount that otherwise would
         be appropriated for transfer
         from the General Fund in the
         State Treasury to Section A of
         the State School Fund for the
         2011-12 fiscal year pursuant to
         Sections 14002 and 41301 of the
         Education Code, for
         apportionment pursuant to Part
         30 (commencing with Section
         56000) of Division 4 of Title 2
         of the Education Code,
         superseding all prior law.
    2.   Of the funds appropriated in
         Schedule (1), up to $13,195,000,
         plus any cost-of-living
         adjustment, shall be available
         for the purchase, repair, and
         inventory maintenance of
         specialized books, materials,
         and equipment for pupils with
         low-incidence disabilities, as
         defined in Section 56026.5 of
         the Education Code.
    3.   Of the funds appropriated in
         Schedule (1), up to $10,081,000,
         plus any cost-of-living
         adjustment, shall be available
         for the purposes of vocational
         training and job placement for
         special education pupils through
         Project Workability I pursuant
         to Article 3 (commencing with
         Section 56470) of Chapter 4.5 of
         Part 30 of Division 4 of Title 2
         of the Education Code. As a
         condition of receiving these
         funds, each local educational
         agency shall certify that the
         amount of nonfederal resources,
         exclusive of funds received
         pursuant to this provision,
         devoted to the provision of
         vocational education for special
         education pupils shall be
         maintained at or above the level
         provided in the 1984-85 fiscal
         year.       The Superintendent
         of Public Instruction may waive
         this requirement for local
         educational agencies that
         demonstrate that the requirement
         would impose a severe hardship.
    4.   Of the funds appropriated in
         Schedule (1), up to $5,258,000,
         plus any cost-of-living
         adjustment (COLA), shall be
         available for regional
         occupational centers and
         programs that serve pupils
         having disabilities; up to
         $88,542,000, plus any COLA,
         shall be available for
         regionalized program specialist
         services; and up to $2,687,000,
         plus any COLA, shall be
         available for small special
         education local plan areas
         (SELPAs) pursuant to Section
         56836.24 of the Education Code.
    5.   Of the funds       appropriated
         in Schedule (1), up to
         $3,000,000 is provided for
         extraordinary costs associated
         with single placements in
         nonpublic, nonsectarian schools,
         pursuant to Section 56836.21 of
         the Education Code. Pursuant to
         legislation, these funds shall
         also provide reimbursement for
         costs associated with pupils
         residing in licensed children's
         institutes.
    6.   Of the funds appropriated in
         Schedule (1), up to
         $179,930,000, plus any cost-of-
         living adjustment (COLA), is
         available to fund the costs of
         children placed in licensed
         children's institutions who
         attend nonpublic schools based
         on the funding formula
         authorized in Chapter 914 of the
         Statutes of 2004.
    7.   Funds       available for infant
         units shall be allocated with
         the following average number of
         pupils per unit:
         (a)    For special classes and
                centers-- 16.
         (b)    For resource specialist
                programs-- 24.
         (c)    For designated
                instructional services--
                16.
    8.   Notwithstanding any other
         provision of law, early
         education programs for infants
         and toddlers shall be offered
         for 200 days. Funds appropriated
         in Schedule (2) shall be
         allocated by the State
         Department of Education for the
         2011-12 fiscal year to those
         programs receiving allocations
         for instructional units pursuant
         to Section 56432 of the
         Education Code for the Early
         Education Program for
         Individuals with Exceptional
         Needs operated pursuant to
         Chapter 4.4 (commencing with
         Section 56425) of Part 30 of
         Division 4 of Title 2 of the
         Education Code, based on
         computing 200-day entitlements.
         Notwithstanding any other
         provision of law, funds in
         Schedule (2) shall be used only
         for the purposes specified in
         Provisions 10 and 11.
    9.   Notwithstanding any other
         provision of law, state funds
         appropriated in Schedule (2) in
         excess of the amount necessary
         to fund the deficited
         entitlements pursuant to Section
         56432 of the Education Code and
         Provision 10 shall be available
         for allocation by the State
         Department of Education to local
         educational agencies for the
         operation of programs serving
         solely low-incidence infants and
         toddlers pursuant to Title 14

  (commencing with Section 95000)
         of the Government Code. These
         funds shall be allocated to each
         local educational agency for
         each solely low-incidence child
         through age two in excess of the
         number of solely low-incidence
         children through age two served
         by the local educational agency
         during the 1992-93 fiscal year
         and reported on the April 1993
         pupil count. These funds shall
         only be allocated if the amount
         of reimbursement received from
         the State Department of
         Developmental Services is
         insufficient to fully fund the
         costs of operating the Early
         Intervention Program, as
         authorized by Title 14
         (commencing with Section 95000)
         of the Government Code.
    10.  The State Department of
         Education, through coordination
         with the special education local
         plan areas, shall ensure local
         interagency coordination and
         collaboration in the provision
         of early intervention services,
         including local training
         activities, child-find
         activities, public awareness,
         and the family resource center
         activities.
    11.  Funds appropriated in this item,
         unless otherwise specified, are
         available for the sole purpose
         of funding 2011-12 fiscal year
         special education program costs
         and shall not be used to fund
         any prior year adjustments,
         claims, or costs.
    12.  Of the amount provided in
         Schedule (1), up to $188,000,
         plus any cost-of-living
         adjustment, shall be available
         to fully fund the declining
         enrollment of necessary small
         special education local plan
         areas pursuant to Chapter 551 of
         the Statutes of 2001.
    13.  Pursuant to Section 56427 of the
         Education Code, of the funds
         appropriated in Schedule (1), up
         to $2,324,000 may be used to
         provide funding for infant
         programs, and may be used for
         those programs that do not
         qualify for funding pursuant to
         Section 56432 of the Education
         Code.
    14.  Of the funds appropriated in
         Schedule (1), up to $29,478,000
         shall       be allocated to
         local educational agencies for
         the purposes of Project
         Workability I.
    15.  Of the funds appropriated in
         Schedule (1), up to $1,700,000
         shall be used to provide
         specialized services to pupils
         with low-incidence disabilities,
         as defined in Section 56026.5 of
         the Education Code.
    16.  Of the funds appropriated in
         Schedule (1), up to $1,117,000
         shall be used for a personnel
         development program. This
         program shall include state-
         sponsored staff development for
         special education personnel to
         have the necessary content
         knowledge and skills to serve
         children with disabilities. This
         funding may include training and
         services targeting special
         education       teachers and
         related service personnel that
         teach core academic or multiple
         subjects to meet the applicable
         special education requirements
         of the Individuals with
         Disabilities Education
         Improvement Act of 2004 (20
         U.S.C. Sec. 1400 et seq.).
    17.  Of the funds appropriated in
         Schedule (1), up to $200,000
         shall be used for research and
         training in cross-cultural
         assessments.
    18.  Of the amount specified in
         Schedule (1), up to $31,000,000
         shall be available only to
         provide educationally related
         mental health services,
         including out-of-home
         residential services for
         emotionally disturbed pupils,
         required by an individualized
         education program pursuant to
         the federal       Individuals
         with Disabilities Education
         Improvement Act of 2004 (20
         U.S.C. Sec. 1400 et seq.). The
         Superintendent of Public
         Instruction shall allocate these
         funds to special education local
         plan areas on a one-time basis
         in the 2011-12 fiscal year based
         upon an equal rate per pupil
         using the methodology specified
         in Section 56836.07 of the
         Education Code.
    19.  Of the amount provided in
         Schedule (1), $0 is to reflect a
         cost-of-living adjustment.
    20.  Of the amount provided in
         Schedule (2), $0 is to reflect a
         cost-of-living adjustment.
    21.  Of the amount appropriated in
         this item, up to $1,480,000 is
         available for the state's share
         of costs in the settlement of
         Emma C. v. Delaine Eastin, et
         al. (N.D. Cal. No. C96-4179TEH).
         The State Department of
         Education shall report by
         January 1, 2012, to the fiscal
         committees of both houses of the
         Legislature, the Department of
         Finance, and the Legislative
         Analyst's Office on the planned
         use of the additional special
         education funds provided to the
         Ravenswood Elementary School
         District pursuant to this
         settlement. The report shall
         also provide the State
         Department of Education's best
         estimate of when this
         supplemental funding will no
         longer be required by the court.
         The State Department of
         Education shall comply with the
         requirements of Section 948 of
         the Government Code in any
         further request for funds to
         satisfy this settlement.
    22.  Of the funds appropriated in
         this item, up to $2,500,000
         shall be allocated directly to
         special education local plan
         areas for a personnel
         development program that meets
         the highly qualified teacher
         requirements and ensures that
         all personnel necessary to carry
         out this part are appropriately
         and adequately prepared, subject
         to the requirements of paragraph
         (14) of subdivision (a) of
         Section 612 of the federal
         Individuals with Disabilities
         Education Improvement Act of
         2004 (20 U.S.C. Sec. 1400 et
         seq.) and Section 2122 of the
         federal Elementary and Secondary
         Education Act of 1965 (20 U.S.C.
         Sec. 6301 et seq.). The local in-
         service programs shall include a
         parent training component and
         may include a staff training
         component, and may include a
         special education teacher
         component for special education
         service personnel and
         paraprofessionals, consistent
         with state certification and
         licensing requirements. Use of
         these funds shall be described
         in the       local plans. These
         funds may be used to provide
         training in alternative dispute
         resolution and the local
         mediation of disputes. All
         programs are to include
         evaluation components.
    23.  Notwithstanding any other
         provision of law, state funds
         appropriated in Schedule (1) in
         excess of the amount necessary
         to fund the defined entitlement
         shall be to fulfill other
         shortages in entitlements
         budgeted in this schedule by the
         State Department of Education,
         upon Department of Finance
         approval, to any program funded
         under Schedule (1).
    24.  The funds appropriated in this
         item reflect an adjustment to
         the base funding of 0.23 percent
         for the annual adjustment in
         statewide       average daily
         attendance.
    25.  Of the funds appropriated in
         Schedule (1), the amount
         resulting from increases in
         federal funds reflected in the
         calculation performed in
         paragraph (1) of subdivision (c)
         of Section 56836.08 of the
         Education Code shall be
         allocated based on an equal
         amount per average daily
         attendance and added to each
         special education local plan
         area's base funding, consistent
         with paragraphs (1) to (4),
         inclusive, of subdivision (b) of
         Section 56836.158 of the
         Education Code. When the final
         amount is determined, the State
         Department of Education shall
         provide this information to the
         Department of Finance and the
         budget committees of each house
         of the Legislature.
    26.  Of       the amount specified in
         Schedule (1), $218,786,000 shall
         be available only to provide
         educationally related mental
         health services, including out-
         of-home residential services for
         emotionally disturbed pupils,
         required by an individualized
         education program pursuant to
         the federal Individuals with
         Disabilities Education
         Improvement Act of 2004 (20
         U.S.C. Sec. 1400 et seq.) and as
         described in Section 56363 of
         the Education Code. The
         Superintendent of Public
         Instruction shall allocate these
         funds to special education local
         plan areas in the 2011-12 fiscal
         year based upon an equal rate
         per pupil using the methodology
         specified in Section 56836.07 of
         the Education Code.
    27.  Of the amount specified in
         Schedule (1), up to $3,000,000
         shall be made available to the
         Superintendent of Public
         Instruction, in collaboration
         with the Department of Finance
         and the       Legislative
         Analyst, and subject to approval
         by the Department of Finance, to
         administer an extraordinary cost
         pool associated with
         educationally related mental
         health services, including out-
         of-home residential services for
         emotionally disturbed pupils,
         for necessary small special
         education local plan areas as
         defined in Section 56212 of the
         Education Code.


   SEC. 78.    Item 6110-166-0001 of Section 2.00 of the
  Budget Act of 2011   is amended to read: 
6110-166-0001--For local assistance,
Department of Education (Proposition 98),
for transfer to Section A of the State
School Fund for purposes of Article 5
(commencing with Section 54690) of
Chapter 9 of Part 29 of Division 4 of
Title 2 of the Education Code,
Partnership Academies Program.............  26,730,000

                                             26,709,000 
    Schedule:
    (1)    10.70.070.001-
           California
           Partnership
           Academies...........   23,490,000 
                                  23,469,000 
    (2)    10.70.070.002-
           ""Green''
           California
           Partnership
           Academies...........   2,922,000
    (2.5)  10.70.070.003-
           ""Clean''
           Technology
           Partnership
           Academies...........   3,240,000
    (3)    Reimbursements......  -2,922,000
    Provisions:
    1.     If there are any funds in this
           item that are not allocated for
           planning or operational grants,
           the State Department of
           Education may allocate those
           remaining funds as one-time
           grants to state-funded
           partnership academies to be
           used for one-time purposes.
    2.     The State Department of
           Education shall not authorize
           new       partnership academies
           without the approval of the
           Department of Finance and 30-
           day notification to the Joint
           Legislative Budget Committee.
    3.     Notwithstanding Provisions 1
           and 2, the funds appropriated
           in Schedule (2) shall be
           available consistent with
           Article 5 (commencing with
           Section 54690) of Chapter 9 of
           Part 29 of Division 4 of Title
           2 of the Education Code and
           pursuant to Chapter 757 of the
           Statutes of 2008.
    4.     The amount appropriated in this
           item shall be reduced pursuant
           to Section 12.42.
    5.     Notwithstanding any other
           provision of law, the funds
           appropriated in Schedule (2)
           reflect carryover funds that
           are available for encumbrance
           until June 30, 2013.
    6.     Notwithstanding Provisions 1
           and 2, the funds appropriated
           in Schedule (2.5) shall be
           available consistent with
           Article 5.5 (commencing with
           Section 54698) of Chapter 9 of
           Part 29 of Division 4 of Title
           2 of the Education Code.


   SEC. 79.    Item 6110-204-0001 of Section 2.00 of the
  Budget Act of 2011   is amended to read: 
6110-204-0001--For local assistance,
Department of Education (Proposition 98),
Program 20-Instructional Support for
transfer by the Controller to Section A of
the State School Fund for allocation by
the Superintendent of Public Instruction...   72,752,000

                                               72,396,000 
      Provisions:
      1.     The funds appropriated in this
             item are available to assist
             eligible pupils, pursuant to
             Section 37254 of the Education
             Code, who are required to pass
             the California High School
             Exit Examination in order to
             receive a diploma.
      2.     Of the amount appropriated in
             this item, $0 is to reflect a
             cost-of-living adjustment.
      3.     The per-pupil amount for grade
             12 may not exceed $520 in the
             2011-12 fiscal year.
      4.     The funds in this item shall
             be allocated by the State
             Department of Education as
             specified in this item no
             later than October 1 of each
             fiscal year.
      5.     The amount appropriated in
             this item shall be reduced
             pursuant to Section 12.42.


   SEC. 80.    Item 6110-227-0001 of Section 2.00 of the
  Budget Act of 2011   is amended to read: 
6110-227-0001--For local assistance,
Department of Education (Proposition 98),
for transfer to Section A of the State
School Fund, English language tutoring to
children with limited English
proficiency, established pursuant to
Article 4 (commencing with Section 315)
of Chapter 3 of Part 1 of Division 1 of
Title 1 of the Education Code.............   50,000,000

                                              49,969,000 
    Schedule:
    (1)   10-Instruction......    50,000,000  

                                  49,969,000 
    Provisions:
    1.    The amount appropriated in this
          item shall be reduced pursuant
          to Section 12.42.


   SEC. 81.    Item 6110-260-0001 of Section 2.00 of the
  Budget Act of 2011   is amended to read: 
6110-260-0001--For local assistance,
Department of Education (Proposition 98),
20.11-Instructional Support: for transfer
to Section A of the State School Fund,
Physical Education Teacher Incentive
Grants.....................................   41,812,000

                                               41,700,000 
      Provisions:
      1.     The funds appropriated in this
             item are for transfer by the
             Controller to the
             Superintendent of Public
             Instruction to provide
             incentive grants to schools
             serving kindergarten or any of
             grades 1 to 8, inclusive, to
             support the hiring of more
             credentialed physical
             education teachers.
              These grants shall be
             allocated in the amount of
             $37,355 per schoolsite to the
             districts that were randomly
             selected in 2006-07 in order
             to hire teachers to provide
             instruction in physical
             education       courses.
      2.     As a condition of receipt of
             funds, school districts
             identified through the process
             required pursuant to Section
             41020 of the Education Code as
             not meeting the required
             physical education instruction
             minutes required in Sections
             51210, 51222, and 51223 of the
             Education Code shall be
             required to provide a plan to
             the county office of education
             that corrects the deficient
             physical education minutes for
             the following school year and,
             to the extent practicable,
             make up the deficient minutes
             identified.
      3.     Of the funds appropriated in
             this item, $0 is to reflect a
             cost-of-living adjustment.
      4.     The amount appropriated in
             this item shall be reduced
             pursuant to Section 12.42.


   SEC. 82.    Item 6110-265-0001 of Section 2.00 of the
  Budget Act of 2011   is amended to read: 
6110-265-0001--For local assistance,
Department of Education (Proposition 98),
Program 20.15-for transfer to Section A of
the State School Fund, Arts and Music Block
Grant.......................................  109,757,000

                                               109,273,000 
     Provisions:
     1.    The funds appropriated in this
           item shall be for the purpose of
           providing block grants to school
           districts, charter schools, and
           county offices of education to
           support standards-aligned arts
           and music instruction in
           kindergarten and grades 1 to 12,
           inclusive. Local educational
           agencies shall use these funds to
           supplement, and not supplant,
           existing resources for arts and
           music.
     2.    (a)    (1)    The State
                         Department of
                         Education shall
                         allocate the
                         funding to
                         districts, charter
                         schools, and county
                         offices of
                         education on the
                         basis of an equal
                         amount per pupil,
                         provided that a
                         minimum of $2,228
                         shall be allocated
                         for schoolsites
                         with 20 or fewer
                         pupils and a
                         minimum of $3,564
                         shall be allocated
                         for schoolsites
                         with more than 20
                         pupils.
                  (2)    Except as provided
                         in subdivision (b),
                         the governing board
                         of a district,
                         charter school, or
                         county office of
                         education shall
                         distribute funds
                         received pursuant
                         to this item to all
                         schoolsites on the
                         basis of an equal
                         amount per pupil or
                         the schoolsite
                         minimums as set
                         forth in paragraph
                         (1), whichever of
                         the two amounts is
                         greatest.
           (b)    If the governing board
                  elects not to allocate
                  funds to schoolsites in
                  the amounts specified
                  pursuant to paragraph (2)
                  of subdivision (a), the
                  governing board shall do
                  both of the following:
                  (1)    Adopt a resolution,
                         to that effect, at
                         a public meeting.
                         The resolution
                         shall specify how
                         the funds are to be
                         allocated among
                         schoolsites and for
                         districtwide
                         purposes and the
                         reasons for those
                         allocations.
                  (2)    Prior to the public
                         meeting, inform
                         schoolsite
                         councils,
                         schoolwide advisory
                         groups,       or
                         school support
                         groups, as
                         applicable, of the
                         content of the
                         proposed resolution
                         and of the time and
                         location where the
                         resolution is
                         proposed to be
                         adopted.
           (c)    By February 2 of each
                  year, as a condition of
                  receipt of funds, the
                  governing board of each
                  school district shall
                  provide a summary report
                  to the department of how
                  these funds were expended
                  or are proposed to be
                  expended, the number of
                  pupils, and the grade
                  levels served. The
                  department shall collect
                  and compile this data and
                  report that information to
                  the appropriate policy and
                  fiscal committees of the
                  Legislature, the
                  Legislative Analyst's
                  Office, and the Department
                  of Finance.
           (d)    For purposes of this
                  provision, ""school
                  district'' means a school
                  district, county office of
                  education, state special
                  school, or direct-funded
                  charter school, as
                  described in paragraph (1)
                  of subdivision (a) of
                  Section 47651 of the
                  Education Code.
     3.    The funds appropriated in this
           item may be used for hiring of
           additional staff and for ongoing
           support of staff hired under the
           grant program, purchase of new or
           used materials, books, supplies,
           and equipment, and implementing
           or increasing staff development
           opportunities, as necessary to
           support standards-aligned arts
           and music instruction.
     4.    Of the funds       appropriated
           in this item, $0 is to reflect a
           cost-of-living adjustment.
     5.    The amount appropriated in this
           item shall be reduced pursuant to
           Section 12.42.


   SEC. 83.    Item 6110-267-0001 of Section 2.00 of the
  Budget Act of 2011   is amended to read: 
6110-267-0001--For local assistance,
Department of Education (Proposition 98),
Program 20-for transfer to Section A of
the State School Fund, Instructional
Support for Certificated Staff Mentoring
Program....................................   10,707,000

                                               10,684,000 
      Provisions:
      1.     The funds appropriated in this
             item shall be allocated by the
             Superintendent of Public
             Instruction to school
             districts for the purpose of
             encouraging excellent,
             experienced teachers to teach
             in staff priority schools and
             to assist teacher interns
             during their induction and
             first years of teaching,
             pursuant to Article 6
             (commencing with Section
             44560) of Chapter 3 of Part 25
             of Division 3 of Title 2 of
             the Education Code.
      2.     Of the funds appropriated in
             this item, $0 is to reflect a
             cost-of-living
             adjustment for a total per-
             participant rate of $6,273.
      3.     The amount appropriated in
             this item shall be reduced
             pursuant to Section 12.42.


   SEC. 84.    Item 6110-488 of Section 2.00 of the
  Budget Act of 2011   , as amended by Section 7 of
Chapter 15 of the First Extraordinary Session of the Statutes of
2011, is amended to read: 
6110-488--Reappropriation, Department of Education.
Notwithstanding any other provision of law, the
balances from the following items are available for
reappropriation for the purposes specified in
Provisions 1 to 5, inclusive:
       0001--General Fund
       (1)        $24,000,000 of the unexpended
                  balance of the amount appropriated
                  for child care programs in
                  Schedules (1) and (1.5) of Item
                  6110-196-0001 of the Budget Act of
                  2010 (Ch. 712, Stats.       2010)
       (2)        $6,900,000 or whatever greater or
                  lesser amount of the unexpended
                  balance of the amount appropriated
                  for Economic Impact Aid in Item
                  6110-128-0001 of the Budget Act of
                  2010 (Ch. 712, Stats. 2010)
       (3)        $20,000,000 or whatever greater or
                  lesser amount of the unexpended
                  balance of the amount appropriated
                  for special education in Schedule
                  (1) of Item 6110-161-0001 of the
                  Budget Act of 2010 (Ch. 712, Stats.
                  2010)
       (4)        $15,121,000 or whatever greater or
                  lesser amount of the unexpended
                  balance of the amount appropriated
                  for the K-3       Class Size
                  Reduction program in paragraph (9)

              of subdivision (a) of Section 38 of
                  Chapter 12 of the Statutes of 2009
       (5)        $40,000,000 or whatever greater or
                  lesser amount of the unexpended
                  balance of the amount appropriated
                  for the Quality Education
                  Investment Act in the 2010-11
                  fiscal year pursuant to Section
                  52055.770 of the Education Code
       (7)        $9,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the English
                  Language Learners Supplemental
                  Instructional Materials program in
                  paragraph (10) of subdivision (a)
                  of Section 43 of Chapter 79 of the
                  Statutes of 2006
       (8)        $6,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Agricultural
                  Career Technical Education Program
                  in Item 6110-167-0001 of the Budget
                  Act of 2008 (Chs. 268 and 269,
                  Stats. 2008)
       (9)        $973,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Class Size
                  Reduction Program in Item 6110-234-
                  0001 of the Budget Act of 2008
                  (Chs. 268 and 269, Stats. 2008)
       (10)       $422,000 or whatever greater or
                  lesser amount represents the
                  balance available from Schedule (1)
                  of Item 6870-101-0001 of the Budget
                  Act of       2006 (Chs. 47 and 48,
                  Stats. 2006), as reappropriated in
                  Item 6870-492 of the Budget Act of
                  2008 (Chs. 268 and 269, Stats. 2008)
       (11)       $902,000 or whatever greater or
                  lesser amount represents the
                  balance available from Schedules
                  (7), (8), and (19) of Item 6870-101-
                  0001 of the Budget Act of 2008
                  (Chs. 268 and 269, Stats. 2008)
       (12)       $1,039,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for Special Education
                  Instruction in Schedule (2) of Item
                  6110-161-0001 of the Budget Act of
                  2009 (Ch. 1, 2009-10 3rd Ex. Sess.,
                  as revised by Ch. 1, 2009-10 4th
                  Ex. Sess.)
       (13)       $82,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for Child Nutrition in
                  Item 6110-651-0001, pursuant to
                  Section 5 of Chapter 3 of the 2009-
                  10 Fourth Extraordinary Session, as
                  amended by Chapter 31 of the 2009-
                  10 Third Extraordinary Session
       (14)       $267,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Supplemental
                  School Counseling Program in Item
                  6110-108-0001 of the Budget Act of
                  2010 (Ch. 712, Stats. 2010)
       (15)       $15,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the
                  amount appropriated for the Special
                  Education Program in Schedule (2)
                  of Item 6110-161-0001 of the Budget
                  Act of 2010 (Ch. 712, Stats. 2010)
       (16)       $30,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the California
                  Partnership Academies in Item 6110-
                  166-0001 of the Budget Act of 2010
                  (Ch. 712, Stats. 2010)
       (17)       $418,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the California
                  High School Exit Exam Supplemental
                  Instruction program in Item 6110-
                  204-0001 of the Budget Act of 2010
                  (Ch. 712, Stats. 2010)
       (18)       $369,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Arts and Music
                  Block Grant program in Item 6110-
                  265-0001 of the Budget Act of 2010
                  (Ch. 712, Stats. 2010)
       (19)       $18,677,000 or whatever greater or
                  lesser amount represents the
                  balance available from Schedules
                  (1), (7), (8), (9), and (19) of
                  Item 6870-101-0001 of the Budget
                  Act of 2009 (Ch. 1, 2009-10 3rd Ex.
                  Sess., as revised by Ch. 1, 2009-10
                  4th Ex. Sess.)
       (20)       $33,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Charter
                  Schools       Facilities Grant
                  Program in paragraph (11) of
                  subdivision (a) of Section 43 of
                  Chapter 79 of the Statutes of 2006.
       (21)       $413,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Charter
                  Schools Facilities Grant Program
                  pursuant to Section 47614.5 of the
                  Education Code (Ch. 215, Stats.
                  2007).
       (22)       $18,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the California
                  Partnership Academies in Item 6110-
                  166-0001 of the Budget Act of 2008
                  (Chs. 268 and 269, Stats. 2008).
       (23)       $201,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Supplemental
                  School Counseling Program in Item
                  6110-108-0001 of the Budget Act of
                  2009 (Ch. 1, 2009-10 3rd Ex. Sess.,
                  as revised by Ch. 1, 2009-10 4th
                  Ex. Sess.).
       (24)       $14,058,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for Special Education
                  Instruction in Schedule (1) of Item
                  6110-161-0001 of the Budget Act of
                  2009 (Ch. 1, 2009-10 3rd Ex. Sess.,
                  as revised by Ch. 1, 2009-10 4th
                  Ex. Sess.).
       (25)       $1,003,000 or whatever greater or
                  lesser amount reflects the
                  unexpended       balance of the
                  amount appropriated for the
                  California Partnership Academies in
                  Item 6110-166-0001 of the Budget
                  Act of 2009 (Ch. 1, 2009-10 3rd Ex.
                  Sess., as revised by Ch. 1, 2009-10
                  4th Ex. Sess.).
       (26)       $1,334,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Charter School
                  Economic Impact Aid Program in
                  Schedule (2) of Item 6110-211-0001
                  of the Budget Act of 2009 (Ch. 1,
                  2009-10 3rd Ex. Sess., as revised
                  by Ch. 1, 2009-10 4th Ex. Sess.).
       (27)       $1,275,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for Special Education
                  Instruction in Item 6110-650-0001
                  (pursuant to Sec. 5, Ch. 3,
                  2009-10 4th Ex. Sess., as revised
                  by Ch. 31, 2009-10 3rd Ex. Sess.).
       (28)       $48,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the English
                  Language Tutoring program in Item
                  6110-227-0001 of the Budget Act of
                  2010 (Ch. 712, Stats. 2010).
       (29)       $29,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Physical
                  Education Incentive Grants program
                  in Item 6110-260-0001 of the Budget
                  Act of 2010 (Ch. 712, Stats. 2010).
       (30)       $18,000 or       whatever greater
                  or lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Certificated
                  Staff Mentoring program in Item
                  6110-267-0001 of the Budget Act of
                  2010 (Ch. 712, Stats. 2010).
       (31)       $5,337,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the After School
                  Education and Safety program in
                  Item 6110-649-0001 in the 2008-09
                  fiscal year, pursuant to Sections
                  8483.5 and 8483.51 of the Education
                  Code.
        (32)       $713,000 or whatever greater or 
                   lesser amount of the unexpended 
                   balance of the amount appropriated 
                   for the special education 
                   instruction in Schedule (1) of Item 
                   6110-161-0001 of the Budget Act of 
                   2009 (Ch. 1, 2009-10 3rd Ex. Sess., 
                   as revised by Ch. 1, 2009-10 4th 
                   Ex. Sess.) 
        (33)       $56,717,000 or whatever greater or 
                   lesser amount of the unexpended 
                   balance of the amount appropriated 
                   for special education instruction 
                   in Schedule (1) of Item 6110-161- 
                   0001 of the Budget Act of 2010 (Ch. 
                   712, Stats. 2010) 
        (34)       $4,000,000 or whatever greater or 
                   lesser amount of the unexpended 
                   balance of the amount appropriated 
                   for the Child Nutrition Program in 
                   Schedule (1) of Item 6110-203-0001 
                   of the Budget Act of 2010 (Ch. 712, 
                   Stats. 2010) 
        (35)       $13,925,000 or whatever greater or 
                   lesser amount of the unexpended 
                   balance of the amount appropriated 
                   for child care programs in 
                   Schedules (1) and (1.5) of Item 
                   6110-196-0001 of the Budget Act of 
                   2009 (Ch. 1, 2009-10 3rd Ex. Sess., 
                   as revised by Ch. 1, 2009-10 4th 
                   Ex. Sess.) 
        (36)       $32,314,000 or whatever greater or 
                   lesser amount of the unexpended 
                   balance of the amount appropriated 
                   for Child Care Programs in Schedule 
                   (1.5) of Item 6110-196-0001 of the 
                   Budget Act of 2010 (Ch. 712, Stats. 
                   2010) 
        (37)       $11,663,000 or whatever greater or 
                   lesser amount reflects the 
                   unexpended balance of the amount 
                   appropriated for the After School 
                   Education and Safety program in 
                   Item 6110-649-0001 in the 2009-10 
                   fiscal year, pursuant to Sections 
                   8483.5 and 8483.51 of the Education 
                   Code. 
        (38)       $16,801,000 or whatever greater or 
                   lesser amount reflects the 
                   unexpended balance of the amount 
                   appropriated for the After School 
                   Education and Safety program in 
                   Item 6110-649-0001 in the 2010-11 
                   fiscal year, pursuant to Sections 
                   8483.5 and 8483.51 of the Education 
                   Code. 
        (39)       $45,000 or whatever greater or 
                   lesser amount of the unexpended 
                   balance of the amount appropriated 
                   for Categorical Programs for 
                   charter schools in Schedule (1) of 
                   Item 6110-211-0001 of the Budget 
                   Act of 2009 (Ch. 1, 2009-10 3rd Ex. 
                   Sess., as revised by Ch. 1, 2009-10 
                   4th Ex. Sess.) 
        (40)       $5,000 or whatever greater or 
                   lesser amount of the unexpended 
                   balance of the amount appropriated 
                   for English Language Development 
                  Assessment in Item 6110-651-0001 
                   pursuant to Section 5 of Chapter 3 
                   of the 2009-10 Fourth Extraordinary 
                   Session, as amended by Chapter 31 
                   of the 2009-10 Third Extraordinary 
                   Session. 
        (41)       $652,000 or whatever greater or 
                   lesser amount of the unexpended 
                   balance of the amount appropriated 
                   for Economic Impact Aid in Item 
                   6110-128-0001 of the Budget Act of 
                   2010 (Ch. 712, Stats. 2010) 
        (42)       $722,000 or whatever greater or 
                   lesser amount of the unexpended 
                   balance of the amount appropriated 
                   for the Early Education Program for 
                   Individuals with Exceptional Needs 
                   in Schedule (2) of Item 6110-161- 
                   0001 of the Budget Act of 2010 (Ch. 
                   712, Stats. 2010) 
        (43)       $2,245,000 or whatever greater or 
                   lesser amount of the unexpended 
                   balance of the amount appropriated 
                   for the Quality Education 
                   Investment Act in the 2010-11 
                   fiscal year pursuant to Section 
                   52055.770 of the Education Code. 
        (44)       $70,000,000 or whatever greater or 
                   lesser amount of the unexpended 
                   balance of the amount appropriated 
                   for the Quality Education 
                   Investment Act in the 2011-12 
                   fiscal year pursuant to Section 
                   52055.770 of the Education Code. 
       Provisions:
       2.         The sum of $5,303,000 is hereby
                  reappropriated to the State
                  Department of Education for
                  transfer by the Controller to
                  Section A of the State School Fund
                  for allocation by the
                  Superintendent of Public
                  Instruction to support costs during
                  the 2011-12 fiscal year associated
                  with the Class Size Reduction
                  Program operated pursuant to
                  Chapter 6.10 (commencing with
                  Section 52120) of Part 28 of
                  Division 4 of Title 2 of the
                  Education Code.
       3.         The sum of $5,673,000 is hereby
                  reappropriated to the State
                  Department of Education for
                  transfer by the Controller to
                  Section A of the State School Fund
                  for allocation by the
                  Superintendent of Public
                  Instruction to support California
                  School Information Services
                  administration activities
                  authorized pursuant to Schedule (2)
                  of Item 6110-140-0001.
       4.         The sum of $142,021,000 is hereby
                  reappropriated to the State
                  Department of Education for
                  transfer by the Controller to
                  Section A of the State School Fund
                  for allocation by the
                  Superintendent of Public
                  Instruction for apportionment for
                  special education programs pursuant
                  to Part 30 (commencing with Section
                  56000) of Division 4 of Title 2 of
                  the Education Code.
        5.         The sum of $220,137,000 is hereby 
                   reappropriated to the State 
                   Department of Education for 
                   transfer by the Controller to 
                   Section A of the State School Fund 
                   for allocation by the 
                   Superintendent of Public 
                   Instruction for apportionment for 
                   special education programs pursuant 
                   to Part 30 (commencing with Section 
                   56000) of Division 4 of Title 2 of 
                   the Education Code 


   SEC. 85.    Item 6870-101-0001 of Section 2.00 of the
  Budget Act of 2011   is amended to read: 
6870-101-0001--For local assistance,
Board of Governors of the California
Community Colleges (Proposition 98)...   2,560,233,000

                                          2,444,100,000 
   Schedule:
   (1) 10.10.010-              2,162,888   

        Apportionments........ 2,046,755 
        Apportionments........ 
  ,000
   (2) 10.10.020-
       Apprenticeship........ 7,174,000
   (3) 10.10.030-Growth for
       Apportionments........         0
   (4) 20.10.004-Student
       Success for Basic      20,037,00
       Skills Students.......         0
   (5) 20.10.005-Student
       Financial Aid          56,741,00
       Administration........         0
   (6) 20.10.020-Disabled     69,223,00
       Students..............         0
   (7) 20.10.045-Special
       Services for CalWORKs  26,695,00
       Recipients............         0
   (8) 20.10.060-Foster Care
       Education Program..... 5,254,000
   (9) 20.10.070-             49,183,00
       Matriculation.........         0
   (10 20.20.020-Academic
   )   Senate for the
       Community Colleges....   318,000
   (11 20.20.041-Equal
   )   Employment
       Opportunity pursuant
       to Ch. 1169, Stats.
       2002..................   767,000
   (12 20.20.050-Part-time
   )   Faculty Health
       Insurance.............   490,000
   (13 20.20.051-Part-time    24,907,00
   )   Faculty Compensation..         0
   (14 20.20.055-Part-time
   )   Faculty Office Hours.. 3,514,000
   (15 20.30.011-
   )   Telecommunications
       and Technology         15,290,00
       Services..............         0
   (16 20.30.050-Economic     22,929,00
   )   Development...........         0
   (17 20.30.070-Transfer
   )   Education and
       Articulation..........   698,000
   (18 20.40.026-Physical
   )   Plant and
       Instructional Support.         0
   (19 20.10.010-Extended
   )   Opportunity Programs
       and Services and       73,605,00
       Special Services......         0
   (20 20.30.045-Fund for
   )   Student Success....... 3,792,000
   (21 20.70.010-Career
   )   Technical Education...         0
   (22 20.80.010-Campus
   )   Child Care Tax
       Bailout............... 3,350,000
   (23 20.95.010-Nursing      13,378,00
   )   Program Support.......         0
   Provisions:
   1.  The funds appropriated in this
       item are for transfer by the
       Controller during the 2011-12
       fiscal year       to Section B
       of the State School Fund.
   2.  Notwithstanding any other
       provision of law, apportionment
       funding for community college
       districts shall be based on the
       greater of the current year or
       prior year level of full-time
       equivalent students (FTES),
       consistent with K-12 declining
       enrollment practices pursuant
       to Section 42238.5 of the
       Education Code. Decreases in
       FTES shall result in a revenue
       reduction at the district's
       average level of apportionment
       funding per FTES and shall be
       made in the year following the
       initial year of decrease in
       FTES.
   3.  The funds appropriated in
       Schedule (1) for Apportionments
       include $31,409,000 to
       encourage district-level
       accountability efforts pursuant
       to Section 84754.5 of the
       Education Code. It is intended
       that the Chancellor of the
       California Community Colleges
       submit an annual report on
       district-specific
       accountability measures by
       March 31 of each year. This
       report shall reflect outcomes
       from the most recently
       completed fiscal year for which
       data is available pursuant to
       Section 84754.5 of the
       Education Code.
   4.  Of the funds appropriated in
       Schedule (1), Apportionments:
       (a)   Up to $100,000 is for a
             maintenance allowance,
             pursuant to Section 54200
             of Title 5 of the
             California Code of
             Regulations.
       (b)   Up to $500,000 is to
             reimburse colleges for
             the costs of federal aid
             repayments related to
             assessed fees for fee
             waiver recipients. This
             reimbursement only
             applies to students who
             completely withdraw from
             college before the census
             date pursuant to Section
             58508 of Title 5 of the
             California Code of
             Regulations.
   5.  Notwithstanding any other
       provision of law, the
       Chancellor of the California
       Community Colleges shall not
       reduce district workload
       obligations for a lack of a
       funded cost-of-living
       adjustment.
   6.  (a)   The amount appropriated
             in Schedule (2) for the
             Apprenticeship Program
             shall be available as
             necessary upon
             certification by the
             Chancellor of the
             California Community
             Colleges for the purpose
             of funding community
             college-related and
             supplemental instruction
             pursuant to Section 3074
             of the Labor Code, as
             provided in Section 8152
             of the Education Code. No
             community college
             district shall use funds
             available under this
             provision to offer any
             new apprenticeship
             training program or the
             expansion of any existing
             program unless the new
             program or expansion has
             been approved by the
             chancellor.
       (b)   Notwithstanding Section
             8152 of the Education
             Code, each 60-minute hour
             of teaching time devoted
             to each indentured
             apprentice enrolled in
             and attending classes of
             related and supplemental
             instruction as provided
             under Section 3074 of the
             Labor Code shall be
             reimbursed at the rate of
             $5.04 per hour. For
             purposes of this
             provision, each hour of
             teaching time may include
             up to 10 minutes for
             passing time and breaks.
   7.  Funds appropriated in Schedule
       (3), Growth for Apportionments,
       shall be available first to any
       districts bringing online newly
       accredited colleges or
       California Postsecondary
       Education Commission-approved
       educational centers. It is the
       intent of the Legislature that
       increases in basic foundation
       allocations to each college be
       funded prior to additional
       growth in full-time equivalent
       students. The Chancellor of the
       California Community Colleges
       shall provide a report by
       November 1 of each year, to the
       Department of Finance and the
       Legislative Analyst, on the
       number of new centers and
       colleges added for the current
       fiscal year and those
       anticipated to be added for the
       prospective budget year. This
       report shall also detail the
       specific funding adjustments
       provided for basic foundation
       allocations to each college and
       center for the current fiscal
       year.
   8.  Notwithstanding any other
       provision of law, funds
       appropriated in Schedule (3),
       Growth for Apportionments,
       shall only be allocated for
       growth in full-time equivalent
       students (FTES), on a district-
       by-district basis, as
       determined by the Chancellor of
       the California Community
       Colleges. The chancellor shall
       not include any FTES from
       concurrent enrollment in
       physical education, dance,
       recreation, study skills, and
       personal development courses
       and other courses in conflict
       with existing law for the
       purpose of calculating a
       district's three-year overcap
       adjustment. The       Board of
       Governors of the California
       Community Colleges shall
       implement the criteria required
       by subdivision (a) of Provision

      5 of Item 6870-101-0001 of
       Section 2.00 of the Budget Act
       of 2003 (Ch. 157, Stats. 2003)
       for the allocation of funds
       appropriated in Schedules (1)
       and (3) of this item, so as to
       ensure that courses related to
       student needs for transfer,
       basic skills, and
       vocational/workforce training
       are accorded the highest
       priority and are provided to
       the maximum extent possible
       within budgeted funds.
   9.  The funds appropriated in
       Schedule (4), Student Success
       for Basic Skills Students,
       shall be allocated as follows:
       (a)   $969,000 for faculty and
             staff development to
             improve curriculum,
             instruction, student
             services, and program
             practices in the areas of
             basic skills and English
             as a Second Language
             (ESL) programs. The
             Office of the Chancellor
             of the California
             Community Colleges shall
             select a district,
             utilizing a competitive
             process, to carry out
             these faculty and staff
             development activities.
             All colleges receiving
             funds pursuant to
             subdivision (b) shall be
             provided with the
             opportunity to
             participate in the
             faculty and staff
             development programs
             specified in this
             subdivision. The
             chancellor shall report
             on the use of these funds
             by the selected district
             to the Legislative
             Analyst and the
             Department of Finance not
             later than September 1 of
             each year.
       (b)   $19,068,000 for
             allocation by the
             chancellor to community
             college districts for
             improving outcomes of
             students who enter
             college needing at least
             one course in ESL or
             basic skills, with
             particular emphasis on
             students transitioning
             from high school.
       (c)   Funding specified in
             subdivisions (a) and (b)
             shall be distributed to
             eligible applicants
             pursuant to Chapter 489
             of the Statutes of 2007.
       (d)   The Office of the
             Chancellor shall work
             jointly with the
             Department of Finance and
             the Legislative Analyst
             to evaluate and refine,
             as necessary, the annual
             accountability measures
             for this program. It is
             the intent of the
             Legislature that annual
             performance
             accountability measures
             for this program utilize,
             to the extent possible,
             data available as part of
             the accountability system
             developed pursuant to
             Section 84754.5 of the
             Education Code. By
             September 1, 2010, the
             chancellor shall submit a
             report to the Governor
             and Legislature on basic
             skills accountability
             using system- and college-
             level data and an annual
             report each year
             thereafter by September 1.
   10. (a)   Of the funds appropriated
             in Schedule (5) for
             Student Financial Aid
             Administration, not less
             than $12,562,000 is
             available to provide
             $0.91 per unit
             reimbursement to
             community college
             districts for the
             provision of board of
             governors (BOG) fee
             waiver awards pursuant to
             paragraph (2) of
             subdivision (m) of
             Section 76300 of the
             Education Code.
       (b)   Of the funds appropriated
             in Schedule (5), not less
             than $7,179,000 is
             available to provide
             reimbursement of 2
             percent of total waiver
             value to community
             college districts for the
             provision of BOG fee
             waiver awards pursuant to
             paragraph (2) of
             subdivision (m) of
             Section 76300 of the
             Education Code.
       (c)   Funding provided to
             community college
             districts in subdivisions
             (a) and (b) is provided
             to directly offset any
             mandated costs claimed by
             community college
             districts pursuant to
             Commission on State
             Mandates Test Claims 99-
             TC-13 (Enrollment Fee
             Collection) and 00-TC-15
             (Enrollment Fee Waivers).
       (d)   (1)   Of the amount
                   appropriated in
                   Schedule (5),
                   $2,800,000 shall be
                   for a contract with
                   a community college
                   district to conduct
                   a statewide media
                   campaign to promote
                   the general message
                   to prospective
                   students as
                   follows: (A) the
                   California
                   Community Colleges
                   (CCC) remain
                   affordable, (B)
                   financial aid and
                   tax credits are
                   available to cover
                   enrollment fees and
                   help with books and
                   other costs, and
                   (C) the active
                   encouragement of
                   contact between
                   pupils and local
                   CCC financial aid
                   offices. Any funds
                   used from this
                   source to produce
                   radio, television,
                   or mail campaigns
                   must emphasize the
                   availability of
                   financial aid, the
                   easiest and most
                   reliable method of
                   accessing the aid,
                   a contact telephone
                   number, an Internet
                   Web site address,
                   where applicable,
                   and the physical
                   location of a
                   financial aid
                   office. Any mail
                   campaign must
                   give priority to
                   existing pupils,
                   recent high school
                   graduates, and 12th
                   graders. The
                   outreach and
                   information
                   campaign should
                   target its efforts
                   in high schools,
                   welfare offices,
                   unemployment
                   offices, churches,
                   community centers,
                   and any other
                   location that will
                   most effectively
                   reach low-income
                   and disadvantaged
                   students who must
                   overcome barriers
                   in accessing
                   postsecondary
                   education. The
                   community college
                   district awarded
                   the contract shall
                   consult with the
                   Chancellor of the
                   California
                   Community Colleges
                   and the Student Aid
                   Commission prior to
                   performing any
                   activities to
                   ensure appropriate
                   coordination with
                   any other state
                   efforts in this
                   area and ensure
                   compliance with
                   this provision.
             (2)   Of the amount
                   appropriated in
                   Schedule (5), not
                   more than
                   $34,200,000 shall
                   be for       direct
                   contact with
                   potential and
                   current financial
                   aid applicants.
                   Each CCC campus
                   shall receive a
                   minimum allocation
                   of $50,000. The
                   remainder of the
                   funding shall be
                   allocated to
                   campuses based upon
                   a formula
                   reflecting full-
                   time equivalent
                   students (FTES)
                   weighted by a
                   measure of low-
                   income populations
                   as demonstrated by
                   BOG fee waiver
                   program
                   participation
                   within a district.
                   It is the intent of
                   the Legislature, to
                   the extent that
                   funds are provided
                   in this item, that
                   all campuses
                   provide additional
                   staff resources to
                   increase both
                   financial aid
                   participation and
                   student access to
                   low-income and
                   disadvantaged
                   students who must
                   overcome barriers
                   in accessing
                   postsecondary
                   education. Funds
                   may be used for
                   screening current
                   students for
                   possible financial
                   aid eligibility and
                   offering personal
                   assistance to these
                   students in
                   accessing financial
                   aid, providing
                   individual help in
                   multiple languages
                   for families and
                   students in filling
                   out the necessary
                   paperwork to apply
                   for financial aid,
                   and increasing
                   financial aid staff
                   to process
                   additional
                   financial aid forms.
             (3)   Funding provided to
                   community college
                   districts in
                   paragraph (2) is
                   provided to
                   directly offset any
                   mandated costs
                   claimed by
                   community college
                   districts pursuant
                   to the Commission
                   on State Mandates
                   Test Claims 02-TC-
                   28 (Cal Grants) and
                   02-TC-21 (Tuition
                   Fee Waivers).
             (4)   Funds allocated to
                   a community college
                   district for
                   financial aid
                   personnel, outreach
                   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
                   2001-02 or 2006-07
                   fiscal year,
                   whichever is
                   greater.
             (5)   It is the intent of
                   the Legislature
                   that the Office of
                   the Chancellor of
                   the California
                   Community Colleges
                   provide the
                   Legislature with a
                   report not later
                   than April 1 of
                   each year on the
                   use of the funds
                   allocated pursuant
                   to paragraphs (1)
                   and (2), including
                   the distribution of
                   the funds, specific
                   uses of the funds,
                   strategies employed
                   to reach low-income
                   and disadvantaged
                   students
                   potentially
                   eligible for
                   financial aid, and
                   the extent to which
                   districts were
                   successful in
                   increasing the
                   number of students
                   accessing financial
                   aid, particularly
                   the maximum Pell
                   Grant award.
             (6)   It is the intent of
                   the Legislature
                   that the chancellor
                   report by May 15 of
                   each year, in the
                   manner and using
                   the factors set
                   forth in paragraph
                   (5) of subdivision
                   (c) of Provision 11
                   of Item 6870-101-
                   0001 of Section
                   2.00 of the Budget
                   Act of 2007 (Chs.
                   171 and 172, Stats.
                   2007), on the
                   impact of outreach
                   efforts on student
                   headcount and FTES
                   enrollment for the
                   2008-09 and 2009-10
                   academic years.
       (e)   Notwithstanding
             subdivision (m) of
             Section 76300 of the
             Education Code or any
             other provision of law,
             the amount of funds
             appropriated for the
             purpose of administering
             fee waivers for the 2011-
             12 fiscal year shall be
             determined in this act.
   11. (a)   The funds appropriated in
             Schedule (6) for the
             Disabled Students Program
             are for assisting
             districts in funding the
             excess direct
             instructional cost of
             providing special support
             services or instruction,
             or both, to disabled
             students enrolled at
             community colleges, and
             for state hospital
             programs, as mandated by
             federal law.
       (b)   Of the amount
             appropriated in Schedule
             (6), no less than
             $3,166,000 shall be used
             to address deficiencies
             identified by the federal
             Office of Civil Rights
             (OCR), as determined by
             the Office of the
             Chancellor of the
             California Community
             Colleges.
       (c)   Of the amount
             appropriated in Schedule
             (6), at least $757,000
             shall be used for support
             of the High Tech Centers
             for activities including,
             but not limited to,
             training of district
             employees, staff, and
             students in the use of
             specialized computer
             equipment for the
             disabled. All High Tech
             Centers shall meet
             standards developed by
             the Office of the
             Chancellor. Colleges that
             receive these
             augmentations shall not
             supplant existing
             resources provided to the
             centers.
       (d)   Notwithstanding any other
             provision of law, of the
             funds appropriated in
             Schedule (6), $1,000,000
             shall be for state
             hospital adult education
             programs       at the
             hospitals served by the
             Coast and Kern Community
             College Districts since
             the 1986-87 fiscal year.
             If adult education
             services at any of the
             three hospitals are not
             supported by the
             community colleges in any
             portion of the 2011-12
             fiscal year, remaining
             funds shall, upon order
             of the Department of
             Finance, after 30 days'
             notice to the Chairperson
             of the Joint Legislative
             Budget Committee, be
             transferred to the State
             Department of
             Developmental Services
             (DDS). For any transfer
             of funds to DDS during
             the 2011-12 fiscal year,
             the Proposition 98 base
             funding levels for
             community colleges and
             DDS shall be adjusted
             accordingly.
       (e)   Of the funds appropriated
             in Schedule (6) for the
             Disabled Student
             Services, no less than
             $7,704,000 shall be
             allocated to support high-
             cost sign language
             interpreter services
             and real-time captioning
             equipment or other
             communication
             accommodations for
             hearing-impaired students
             based on a 4-to-1 state-
             to-local district match.
   12. The funds appropriated in
       Schedule (7), Special Services
       for CalWORKs Recipients, are
       for the purpose of assisting
       welfare recipient students and
       those in transition off of
       welfare to achieve long-term
       self-sufficiency through
       coordinated student services
       offered at community colleges,
       including workstudy, other
       educational related work
       experience, job placement
       services, child care services,
       and coordination with county
       welfare offices to determine
       eligibility and availability of
       services. All services funded
       in Schedule (7) shall be for
       current CalWORKs recipients or
       prior CalWORKs recipients who
       are in transition off of cash
       assistance for no more than two
       years. Current       cash-
       assistance recipients may
       utilize these services until
       their initial educational
       objectives are met. Former
       recipients in transition off of
       cash assistance may utilize
       these services for a period of
       up to two years after leaving
       cash assistance subject to the
       conditions of this provision.
       These funds shall be used to
       supplement and not supplant
       existing funds and services
       provided for CalWORKs
       recipients attending community
       colleges. The Chancellor of the
       California Community Colleges
       shall develop an equitable
       method for allocating funds to
       all districts and colleges
       based on the relative numbers
       of CalWORKs recipients in
       attendance and shall allocate
       funds for the following
       purposes:
       (a)   Job placement.
       (b)   Coordination with county
             welfare offices and other
             local agencies, including
             local workforce
             investment boards.
       (c)   Curriculum development
             and redesign.
       (d)   Child care and workstudy.
       (e)   Instruction.
       (f)   Postemployment skills
             training and related
             skills.
       (g)   Campus-based case
             management, limited to on-
             campus assistance and
             services not provided by
             county case workers that
             do not supplant other
             counseling and academic
             support services funded
             through existing
             California Community
             Colleges categorical
             programs.
        Of the amount appropriated in
       Schedule (7), $9,188,000 is for
       child care and does not require
       a district match. For the
       remaining funds, districts
       shall, as a condition of
       receipt of       these funds,
       provide a $1 match for every $1
       provided by the state.
        Funds utilized for subsidized
       child care shall be for
       children of CalWORKs recipients
       through campus-based centers or
       parental choice vouchers at
       rates and with rules consistent
       with those applied to related
       programs operated by the State
       Department of Education in the
       2011-12 fiscal year, including
       eligibility, reimbursement
       rates, and parental
       contribution schedules.
       Subsidized campus child care
       for CalWORKs recipients may be
       provided during the period they
       are engaged in qualifying state
       and federal work activities
       through attainment of their
       initial education and training
       plan and for up to three months
       thereafter or until the end of
       the academic year, whichever
       period of time is greater.
        Funds utilized for workstudy
       shall be used solely for
       payments to employers that
       currently participate in campus-
       based workstudy programs or are
       providing work experiences that
       are directly related to and in
       furtherance of student
       educational programs and work
       participation requirements,
       provided that those payments
       may not exceed 75 percent of
       the wage for the workstudy
       positions, and the employers
       shall pay at least 25 percent
       of the wage for the workstudy
       positions. These funds may be
       expended only if the total
       hours of education, employment,
       and workstudy for the student
       are sufficient to meet both
       state and federal minimum
       requirements for qualifying
       work-related activities.
        Funds may be used to provide
       credit or noncredit classes for
       CalWORKs students if a district
       has committed all of its funded
       full-time equivalent students
       (FTES) and is unable to offer
       the additional instructional
       services to meet the demand for
       CalWORKs students. This
       determination shall be based on
       fall enrollment information.
       Districts shall submit
       applications to the Office of
       the Chancellor by December 1 of
       each year. If the chancellor
       approves the use of funds for
       direct instructional workload,
       the Office of the Chancellor
       shall submit a report to the
       Department of Finance and the
       Joint Legislative Budget
       Committee by February 15 of
       each year that (a) identifies
       the enrollment of new CalWORKs
       students, (b) states whether
       and why additional classes were
       needed to accommodate the needs
       of CalWORKs students, and (c)
       sets forth an expenditure plan
       for the balance of funds.
        As a condition of receipt of
       the funds appropriated in
       Schedule (7), by the fourth
       week following the end of the
       semester or quarter term
       commencing in January 2012,
       each participating community
       college shall submit to the
       Office of the Chancellor a
       report, in the format specified
       by the chancellor in
       consultation with the State
       Department of Social Services,
       that includes, but is not
       limited to, the funded
       components, the number of hours
       of child care provided, the
       average monthly enrollment of
       CalWORKs dependents served in
       child care, the number of
       workstudy hours provided, the
       hourly salaries and type of
       jobs, the number of students
       being case managed, the short-
       term programs available, the
       student participation rates,
       and other outcome data. It is
       intended that, to the extent
       practicable, reporting from
       colleges utilize data gathered
       for federal reporting
       requirements at the state and
       local level.       Further, it
       is intended that the Office of
       the Chancellor compile the
       information for annual reports
       to the Legislature, the
       Governor, the Legislative
       Analyst, the Department of
       Finance, and the State
       Department of Social Services
       by February 15 of each year.
        First priority for
       expenditures of any funds
       appropriated in Schedule (7)
       shall be in support of current
       CalWORKs recipients. However,
       if caseloads are insufficient
       to fully utilize all of the
       funding in this schedule in a
       cost-beneficial way, it is
       intended that up to $5,000,000
       of the funds subject to local
       matching requirements may be
       allocated for providing
       postemployment services to
       former CalWORKs recipients who
       have been off of cash
       assistance for no longer than
       two years to assist them in
       upgrading skills, job
       retention, and advancement.
       Allowable       services
       include direct instruction that
       cannot be funded under
       available growth funding, child
       care to support attendance in
       these classes consistent with
       this provision, job development
       and placement services, and
       career counseling and
       assessment activities that
       cannot be funded through other
       programs. Child care services
       may only be provided for
       periods commensurate with a
       student's need for
       postemployment training within
       the two-year transitional
       period.
        Prior to allocation of funds
       for postemployment services,
       the chancellor shall first
       secure the approval of the
       Department of Finance for the
       allocations, complete a
       cumulative report on the
       outcomes, activities, and cost-
       effectiveness of the program no
       later than February 15 of each
       year in compliance with the

             Budget Acts of 1998 (Ch. 324,
       Stats. 1998) and       1999
       (Ch. 50, Stats. 1999) and this
       act, and shall provide the
       rationale and justification for
       the proposed allocation of
       postemployment services to
       districts for transitional
       students.
        If a district is unable to
       fully expend its share of child
       care funds, it may request that
       the Office of the Chancellor
       approve a reallocation to other
       CalWORKs purposes authorized by
       this provision, subject to all
       pertinent limitations and
       district match required for
       these purposes under this
       provision.
        Of the funds appropriated in
       Schedule (7) for the Special
       Services for CalWORKs
       Recipients Program, no less
       than $4,900,000 is to provide
       direct workstudy wage
       reimbursement for students
       served under this program, and
       $613,000 is available for
       campus job development and
       placement services.
   13. Funds appropriated in Schedule
       (7) for the Special Services
       for CalWORKs Recipients Program
       have been budgeted to meet the
       state's Temporary Assistance
       for Needy Families maintenance-
       of-effort requirement pursuant
       to the federal Personal
       Responsibility and Work
       Opportunity Reconciliation Act
       of 1996 (P.L. 104-193) and may
       not be expended in any way that
       would cause their
       disqualification as a federally
       allowable maintenance-of-effort
       expenditure.
   14. (a)   Funds provided in
             Schedule (8) for the
             Foster Care Education
             Program shall be
             allocated to provide
             foster and
             relative/kinship care
             education and training.
             Districts shall ensure
             that education and
             training required by
             Sections 1529.1 and
             1529.2 of the Health and
             Safety Code and Section
             16003 of the Welfare and
             Institutions Code receive
             priority. Districts may
             use any remaining funds
             for additional parenting
             skills training.
       (b)   Funds provided in
             Schedule (8) shall be
             used for foster parent
             and relative/kinship care
             provider education
             training services
             consistent with the
             following criteria:
             (1)   The Chancellor of
                   the California
                   Community Colleges
                   shall use these
                   funds exclusively
                   for foster parent
                   and
                   relative/kinship
                   care provider
                   education and
                   training, as
                   specified by the
                   chancellor in
                   consultation with
                   an advisory
                   committee that
                   includes foster
                   parents,
                   representatives of
                   statewide foster
                   parent
                   organizations,
                   parent and
                   relative/kinship
                   care providers, and
                   representatives
                   from the State
                   Department of
                   Social Services.
             (2)   Acceptance of funds
                   under this program
                   shall constitute
                   agreement by the
                   district to comply
                   with such reporting
                   requirements,
                   guidelines, and
                   other conditions
                   for receipt of
                   funding as the
                   chancellor may
                   establish.
             (3)   Each college plan
                   for foster and
                   relative/kinship
                   care education
                   programs shall
                   include the
                   provision of
                   training to
                   facilitate the
                   development of
                   foster family
                   homes, small family
                   homes, and
                   relative/kinship
                   homes to care for
                   no more than six
                   children who have
                   special mental,
                   emotional,
                   developmental, or
                   physical needs.
             (4)   The State
                   Department of
                   Social Services
                   shall facilitate
                   the participation
                   of county welfare
                   departments in the
                   foster and
                   relative/kinship
                   care education
                   program.
   15. (a)   Funds appropriated in
             Schedule (9) for the
             Matriculation Program are
             for the purpose of
             student matriculation
             pursuant to Article 1
             (commencing with Section
             78210) of Chapter 2 of
             Part 48 of Division 7 of
             Title 3 of the Education
             Code.
       (b)   Of the amount
             appropriated in Schedule
             (9), $9,381,000 shall be
             allocated to community
             college districts on a
             one-to-one matching funds
             basis to provide
             matriculation services,
             including, but not
             limited to, orientation,
             assessment, and
             counseling, for students
             enrolled in designated
             noncredit classes and
             programs who may benefit
             most, as determined by
             the Chancellor of the
             California Community
             Colleges pursuant to
             Sections 78216 and 78218
             of the Education Code.
   16. The funds in Schedule (13) for
       the Part-time Faculty
       Compensation Program shall be
       allocated solely to increase
       compensation for part-time
       faculty from the amounts
       previously authorized. Funds
       shall be distributed to
       districts based on the total
       actual full-time equivalent
       students served in the previous
       fiscal year and include a small
       district factor as determined
       by the Chancellor of the
       California Community Colleges.
       These funds are to be used to
       assist districts in making part-
       time faculty salaries more
       comparable to full-time
       salaries for similar work, as
       determined through each
       district's local collective
       bargaining process. These funds
       shall not supplant the amount
       of resources each district used
       to compensate part-time faculty
       or be used to exceed parity of
       each part-time faculty employed
       by each district with regular
       full-time faculty at the same
       district, as       certified by
       the chancellor. If a district
       achieves parity, its allocation
       may be used for any other
       educational purpose.
   17. (a)   $14,151,000 of the funds
             provided in Schedule (15)
             for the
             Telecommunications and
             Technology Services
             Program shall be for the
             purpose of supporting
             technical and application
             innovations and for
             coordination of
             activities that serve to
             maximize the utility of
             the technology
             investments of the
             community college system
             towards improving
             learning outcomes.
             Allocations shall be made
             by the Chancellor of the
             California Community
             Colleges, based on
             criteria and guidelines
             as developed by the
             chancellor, on a
             competitive basis through
             the RFA/RFP application
             process for the following
             purposes:
             (1)   Provision of access
                   to statewide
                   multimedia hosting
                   and delivery
                   services for system
                   colleges and
                   districts.
             (2)   Provision of
                   systemwide
                   Internet, audio
                   bridging, and
                   telephony.
             (3)   Technical
                   assistance and
                   planning,
                   cooperative
                   purchase
                   agreements, and
                   faculty and staff
                   development in a
                   manner consistent
                   with paragraph (3)
                   of subdivision (b)
                   of Provision 17 of
                   Item 6870-101-0001
                   of Section
                   2.00 of the Budget
                   Act of 1996 (Ch.
                   162, Stats. 1996).
             (4)   Ongoing support for
                   the California
                   Virtual Campus
                   Distance Education
                   Program.
             (5)   Ongoing support for
                   programs designed
                   to use technology
                   in assisting
                   accreditation and
                   the alignment of
                   curricula across K-
                   20 segments in
                   California.
             (6)   Support for
                   technology
                   pilots and ongoing
                   technology programs
                   and applications
                   that serve to
                   maximize the
                   utility and economy
                   of scale of the
                   technology
                   investments of the
                   community college
                   system towards
                   improving learning
                   outcomes.
              In addition, a portion
             of the funds provided in
             this subdivision shall be
             available for allocations
             to districts. It is the
             intent of the Legislature
             that these funds be used
             by colleges to maintain
             the technology
             capabilities specified in
             subdivision (a) of
             Provision 21 of Item 6870-
             101-0001 of Section 2.00
             of the Budget Act of 2003
             (Ch. 157, Stats. 2003).
             These funds shall not
             supplant existing funds
             used for those purposes,
             and colleges shall match
             maintenance and ongoing
             costs with other funds as
             provided by subdivision
             (a) of Provision 21 of
             Item 6870-101-0001 of
             Section       2.00 of the
             Budget Act of 2003 (Ch.
             157, Stats. 2003).
       (b)   The Office of the
             Chancellor of the
             California Community
             Colleges shall develop
             the reporting criteria
             for all programs funded
             by this item and shall
             submit that for review
             along with an annual
             progress report on
             program implementation to
             the Legislative Analyst
             and the Department of
             Finance no later than
             December 1 of each year.
             Reporting shall include
             summaries of allocations
             and expenditures by
             program and by district,
             where applicable.
       (c)   Of the funds provided in
             Schedule (15), $1,139,000
             is for ongoing support
             and expansion of the
             California Partnership
             for Achieving Student
             Success (Cal-PASS)
             program. As a condition
             of receipt of these
             funds, the grantee shall
             submit to the Office of
             the Chancellor, by
             October 15 of each year,
             all of the following: (1)
             a report that includes
             the numbers and
             percentages of
             institutions and school
             districts that have
             signed agreements and the
             number and percentage
             that have actively
             submitted data in the
             current year and (2) an
             annual financial audit,
             as prescribed by the
             chancellor, that includes
             an accounting of all
             funding sources and all
             uses of funds by funding
             source. The report and
             audit also shall be
             submitted to the
             Legislative Analyst, the
             Department of Finance,
             and the appropriate
             budget subcommittees of
             the budget committees of
             each house of the
             Legislature. It is the
             intent of the Legislature
             that all reporting
             requirements contained in
             this subdivision shall be
             completed using funds
             provided to the grantee.
   18. Of the funds provided in
       Schedule (16) for the Economic
       and Workforce Development
       Program:
       (a)   $11,187,000 is allocated
             for regional business
             resources assistance and
             innovation network
             centers. Each allocation
             to a district for Centers
             for International
             Development shall contain
             sufficient funds, as
             determined by the
             Chancellor of the
             California Community
             Colleges, for the
             continued operation of
             Mexican International
             Trade Centers.
       (b)   $3,833,000 is allocated
             for industry-driven
             regional education and
             training collaboratives.
             These allocations shall
             be made on a competitive
             basis and the amounts
             shall not be restricted
             to any predetermined
             limit, but rather shall
             be funded on their
             individual merits.
       (c)   $1,769,000 is allocated
             for statewide network
             leadership,
             organizational
             development,
             coordination, information
             and support services, or
             other program purposes.
       (d)   $2,220,000 is available
             for Job Development
             Incentive Training
             programs focused on job
             creation for public
             assistance recipients.
             Any annual savings from
             this subdivision shall
             only be available for
             expenditure for one-time
             activities       listed
             under subdivision (j) of
             Section 88531 of the
             Education Code.
       (e)   $3,920,000 is allocated
             for the establishment of
             a Responsive Incumbent
             Worker Training Fund,
             which will serve to
             expand the delivery of
             performance improvement
             training to employers and
             incumbent workers in high-
             growth industries. Funds
             shall also be used to
             develop programs that
             integrate basic skills
             and career technical
             education curriculum in
             ways that provide
             students with seamless
             educational coursework
             that transitions students
             into high-tech and high-
             demand job sectors.
       (f)   The following provisions
             apply to the expenditure
             of funds within
             subdivisions (a) and (b):
             Funds allocated for
             centers and regional
             collaboratives shall seek
             to maximize the use of
             state funds for
             subdivisions (g) to (j),
             inclusive, of Section
             88531 of the Education
             Code. Funds allocated to
             districts for purposes of
             subdivisions (g) and (i)
             of Section 88531 of the
             Education Code for
             performance-based
             training and student
             internships shall be
             matched by a minimum of
             $1 of private business
             and industry funding for
             each $1 of state funds.
             Funds allocated for
             purposes of subdivision
             (h) of Section 88531 of
             the Education Code for
             credit and noncredit
             instruction may be
             transferred to Schedule
             (1) or (3) to facilitate
             distribution at the
             chancellor's discretion.
             Any funds that become
             available from network
             centers due to savings,
             discontinuance, or
             reduction of amounts
             shall first be made
             available for additional
             allocations in
             subdivision (b) to
             increase the level of
             subsidized training
             otherwise available.
       (g)   Funds allocated by the
             Board of Governors of the
             California Community
             Colleges under this
             provision may not be used
             by community college
             districts to supplant
             existing courses or
             contract education
             offerings. The chancellor
             shall ensure that funds
             are spent only for
             expanded services and
             shall implement
             accountability reporting
             for districts receiving
             these funds to ensure
             that training, credit,
             and noncredit programs
             remain relevant to
             business needs. Programs
             that do not demonstrate
             continued relevance and
             support by business shall
             not be eligible for
             continued funding. The
             board of governors shall
             consider the level of
             involvement and financial
             commitments of business
             and industry as primary
             factors in making awards.
             The chancellor shall
             incorporate project
             requirements into the
             guidelines for audits of
             economic development
             projects.
       (h)   Primary objectives of the
             Economic and Workforce
             Development Program are
             to maximize instruction,
             to prepare students for
             entry-level jobs, to
             increase skills of the
             current workforce, and to
             stimulate the growth of
             businesses through
             training so that more
             jobs are created. As part
             of the annual report on
             the performance of the
             Economic and Workforce
             Development Program, the
             chancellor shall provide
             disaggregated data
             detailing the funding
             provided to each economic
             development regional
             center and each industry-
             driven regional education
             and training
             collaborative, and to the
             extent practicable, the
             total number of hours of
             contract education
             services, performance
             improvement training,
             credit and noncredit
             instruction, and job
             placements created as a
             result of each center and
             collaborative.
   19. (a)   The funds appropriated in
             Schedule (17) for the
             Transfer Education and
             Articulation Program are
             available to support
             transfer and articulation
             projects and common
             course numbering projects.
       (b)   Funding provided to
             community college
             districts from Schedule
             (17) is provided to
             directly offset any
             mandated costs claimed by
             community college
             districts pursuant to
             Chapter 737 of the
             Statutes of 2004.
   20. (a)   One-half of any funds
             appropriated in Schedule
             (18) are available for
             the following purposes:
             (1)   Scheduled
                   maintenance and
                   special repairs of
                   facilities. The
                   Chancellor of the
                   California
                   Community Colleges
                   shall allocate
                   funds to districts
                   on the basis of
                   actual reported
                   full-time
                   equivalent students
                   (FTES), and may
                   establish a minimum
                   allocation per
                   district. As a
                   condition for
                   receiving and
                   expending these
                   funds for
                   maintenance or
                   special repairs, a
                   district shall
                   certify that it
                   will increase its
                   operations and
                   maintenance
                   spending from the
                   1995-96 fiscal year
                   by the amount it
                   allocates from this
                   appropriation for
                   maintenance and
                   special repairs,
                   plus an equal
                   amount to be
                   provided from
                   district
                   discretionary
                   funds. The
                   chancellor may
                   waive all or
                   a portion of the
                   matching
                   requirement based
                   upon a review of a
                   district's
                   financial
                   condition. The
                   question of whether
                   a district has
                   complied with its
                   resolution shall be
                   reviewed under the
                   annual audit of
                   that district. For
                   every $1 a district
                   expends from any
                   funds provided in
                   this appropriation
                   for scheduled
                   maintenance and
                   special repairs,
                   the recipient
                   district shall
                   provide $1 in
                   matching funds.
             (2)   Hazardous
                   substances
                   abatement, cleanup,
                   and repairs.
             (3)   Architectural
                   barrier removal
                   projects that meet
                   the requirements of
                   the federal
                   Americans with
                   Disabilities Act of
                   1990 (42 U.S.C.
                   Sec. 12101 et seq.)
                   and seismic
                   retrofit projects
                   limited to
                   $400,000. Districts
                   that receive funds
                   for architectural
                   barrier removal
                   projects shall
                   provide a $1 match
                   for every $1
                   provided by the
                   state.
       (b)   One-half of any funds
             appropriated in Schedule
             (18) are available for
             replacement of
             instructional equipment
             and library materials.
             For every $3 a district
             expends from any moneys
             provided in this
             appropriation for
             replacement of
             instructional equipment
             or library materials, the
             recipient district shall
             provide $1 in matching
             funds. The chancellor may
             waive all or a portion of
             the matching requirement
             based upon a review of a
             district's financial
             condition. The funds
             provided for
             instructional equipment
             and library materials
             shall not be used for
             personal services costs
             or operating expenses.
             The chancellor shall
             allocate funds to
             districts on the basis of
             actual reported FTES and
             may establish a minimum
             allocation per district.
             The question of whether a
             district has complied
             with its resolution shall
             be reviewed under the
             annual audit of that
             district.
       (c)   Any funds appropriated in
             Schedule (18) shall be
             available for expenditure
             until June 30, 2013.
   21. Of the funds appropriated in
       Schedule (19) for Extended
       Opportunity Programs and
       Services, $64,273,000 is for
       Extended Opportunity Programs
       and Services (EOPS) in
       accordance with Article 8
       (commencing with Section 69640)
       of       Chapter 2 of Part 42
       of Division 5 of Title 3 of the
       Education Code. Funds provided
       in this item for EOPS shall be
       available to students on all
       campuses within the California
       Community Colleges system,
       including those students on new
       campuses or in new districts.
       In addition, $9,332,000 is for
       funding, at all colleges, the
       Cooperative Agencies Resources
                 for Education (CARE) program in
       accordance with Article 4
       (commencing with Section 79150)
       of Chapter 9 of Part 48 of
       Division 7 of Title 3 of the
       Education Code. The Board of
       Governors of the California
       Community Colleges shall
       allocate funds on a priority
       basis to local programs on the
       basis of need for student
       services.
   22. Of the funds appropriated in
       Schedule (19) for the Extended
       Opportunity Programs and
       Services, no less than
       $4,972,000 shall be available
       to support additional
       textbook assistance grants to
       community college students as
       an allowable expenditure
       consistent with paragraph (10)
       of subdivision (b) of Section
       69648 of the Education Code. In
       addition, these funds shall not
       supplant the amount of
       resources used for textbook
       grants in the 2001-02 fiscal
       year.
   23. The funds appropriated in
       Schedule (20) for the Fund for
       Student Success are for
       additional targeted student
       services, to be expended as
       follows:
       (a)   $1,183,000 is for the
             Puente Project to support
             up to 75 colleges. These
             funds are available if
             matched by $200,000 of
             private funds and the
             participating community
             colleges and University
             of California campuses
             maintain their 1995-96
             fiscal year support level
             for the Puente Project.
             All funding shall be
             allocated directly to
             participating districts
             in accordance with their
             participation agreement.
       (b)   Up to $1,515,000 is for
             the Mathematics,
             Engineering and Science
             Achievement (MESA)
             program. For each dollar
             allocated, the recipient
             district shall provide $1
             in matching funds.
       (c)   No less than $1,094,000
             is for the Middle College
             High School Program. With
             the exception of fully
             compliant special part-
             time students at the
             community colleges
             pursuant to Sections
             48802 and 76001 of the
             Education Code, student
             workload based on
             participation in the
             Middle College High
             School Program shall not
             be eligible for community
             college state
             apportionment. Further,
             no community college
             state apportionment shall
             be made available for
             physical education
             classes, noncredit
             classes, nor other
             courses specified in
             Provision 8.
   24. Pursuant to Sections 69648.5,
       78216, and 84850, and
       subdivision (b) of Section
       87108, of the Education Code,
       the Board of Governors of the
       California Community Colleges
       may allocate funds appropriated
       in Schedules (6), (9), (11),
       and (19) by grant or contract,
       or through the apportionment
       process, to one or more
       districts for the purpose of
       providing program evaluation,
       accountability, monitoring, or
       program development services,
       as appropriate under the
       applicable statute.
   25. (a)   All funds appropriated in
             Schedule (21) for the
             Career Technical
             Education Program are for
             the purpose of aligning
             career-technical
             education curriculum
             between K-12 and
             community colleges in
             targeted industry-driven
             programs offered through
             the Economic and
             Workforce Development
             Program. Prior to the
             allocation of these
             funds, the Chancellor of
             the California Community
             Colleges, in conjunction
             with the State Department
             of Education, shall
             submit a proposed
             expenditure plan for the
             funds contained in this
             item, and the rationale
             therefor, to the
             Department of Finance by
             August 1 of each year for
             approval.
       (b)   If funds       are
             appropriated in Schedule
             (21) for the Career
             Technical Education
             Program, no more than
             $2,500,000 is available
             for the development and
             enhancement of health-
             related career pathway
             programs in grades 7 to
             12, inclusive, and for
             the articulation and
             alignment of health-
             related curriculum
             between schools with
             pupils in kindergarten
             and grades 1 to 12,
             inclusive, and the
             California Community
             Colleges.
   26. The funds appropriated in
       Schedule (22) for the Campus
       Child Care Tax Bailout shall be
       allocated by the Chancellor of
       the California Community
       Colleges to community college
       districts that levied child
       care permissive override taxes
       in the 1977-78 fiscal year
       pursuant to Sections 8329 and
       8330 of the Education Code in
       an amount proportional to the
       property tax revenues, tax
       relief subventions, and state
       aid required to be made
       available by the district to
       its child care and development
       program for the 1979-80 fiscal
       year pursuant to Section 30 of
       Chapter 1035 of the Statutes of
       1979, increased or decreased by
       any cost-of-living adjustment
       granted in subsequent fiscal
       years. These funds shall be
       used only for the purpose of
       community college child care
       and development programs.
   27. With regard to the funds
       appropriated in Schedule (23),
       Nursing Program Support, all of
       the following shall apply:
       (a)   $8,475,000 shall be used
             to provide support for
             nursing program
             enrollment and equipment
             needs consistent with
             paragraph (2) of
             subdivision (a) of
             Section 2 of
             Chapter 514 of the
             Statutes of 2001. Funding
             for nursing enrollment
             shall provide a marginal
             increase in funding in
             addition to the amount
             provided for each full-
             time equivalent student
             for regular growth in
             apportionments.
       (b)   $4,903,000 shall be used
             to provide diagnostic and
             support services,
             preentry coursework,
             alternative program
             delivery model
             development, and other
             services to reduce the
             incidence of student
             attrition in nursing
             programs.
       (c)   Funds shall be allocated
             according to the
             following criteria:
             (1)   The degree to which
                   the funds provided
                   would be used to
                   increase student
                   enrollment in
                   nursing programs
                   beyond the level of
                   full-time
                   equivalent students
                   served in the 2010-
                   11 academic year.
             (2)   The district's
                   level of attrition
                   from nursing
                   programs and the
                   suitability of
                   planned
                   expenditures to
                   address attrition
                   levels.
             (3)   The degree to which
                   funds provided
                   would be used to
                   support
                   infrastructure or
                   equipment needs
                   with the intent of
                   building capacity
                   and increasing the
                   number of nursing
                   students served.
             (4)   For districts with
                   attrition rates of
                   15 percent or more,
                   new funding shall
                   focus on attrition
                   reduction. For
                   districts with
                   attrition rates
                   below 15 percent,
                   new funding shall
                   focus on enrollment
                   expansion.
       (d)   On or before March 1 of
             each year, the Chancellor
             of the California
             Community Colleges shall
             provide the Legislature
             and the Department of
             Finance with a report on
             the allocation of
             funding. For each
             district receiving
             funding under this item,
             the report       shall
             include all of the
             following: (1) the amount
             of funding received, (2)
             the number of nursing
             full-time equivalent
             students served in the
             2006-07 academic year,
             and the additional number
             of nursing full-time
             equivalent students
             served with funding
             provided in this item in
             each subsequent year, (3)
             the district's attrition
             and completion rates in
             the 2006-07 academic year
             and subsequent years, (4)
             any equipment or
             infrastructure-related
             items acquired with the
             funds appropriated in
             this item, and (5) the
             number of new and
             existing faculty
             receiving annual stipend
             awards.
   28. Notwithstanding any other
       provision of law, the
       Chancellor of the California
       Community Colleges shall
       allocate categorical funds as
       specified in legislation
       enacted in 2009 and as amended
       in 2010. Pursuant to the
       conditions specified in that
       legislation,       districts
       may utilize funds allocated
       from Schedules (2), (9), (10),
       (11), (12), (13), (14), (16),
       (17), (18), and (22) as further
       specified in that legislation.
       Notwithstanding this provision
       and subdivision (b) of Section
       84043 of the Education Code,
       the chancellor may adjust
       allocations, as necessary, for
       funding provided pursuant to
       Schedules (10), (16), and (17)
       in support of statewide or
       regional functions.
   29. Notwithstanding any other
       provision of law, the
       Chancellor of the California
       Community Colleges may reduce
       community college district base
       workload measures to match
       available funding under
       Schedule (1), which reflects a
       base reduction of $290,000,000
       to support community college
       district general
       apportionments. It is the
       intent of the Legislature that
       community college districts, to
       the greatest extent possible,
       shall       implement any
       necessary workload reductions
       in courses and programs outside
       of those needed by students to
       achieve their basic skills,
       workforce training, or transfer
       goals. On or before April 15,
       2012, the chancellor shall
       provide the fiscal committees
       of both houses of the
       Legislature and the Director of
       Finance with a report on the
       implementation of this
       provision.


   SEC. 86.    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 Education may implement Section 20 of
this act through management bulletins or other similar instructions.

   SEC. 87.    Notwithstanding any other law, the
implementation of Section 20 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. 88.    (a) Notwithstanding Sections 42238.1 and
42238.15 of the Education Code or any other law, the cost-of-living
adjustment for Items 6110-104-0001, 6110-105-0001, 6110-119-0001,
6110-122-0001, 6110-124-0001, 6110-128-0001, 6110-150-0001,
6110-156-0001, 6110-158-0001, 6110-161-0001, 6110-167-0001,
6110-181-0001, 6110-189-0001, 6110-190-0001, 6110-193-0001,
6110-194-0001, 6110-196-0001, 6110-203-0001, 6110-209-0001,
6110-211-0001, 6110-212-0001, 6110-224-0001, 6110-232-0001,
6110-244-0001, and 6110-246-0001 of Section 2.00 of the Budget Act of
2012 is 0 percent for the 2012-13 fiscal year. All funds
appropriated in the Budget Act of 2012 in the items identified in
this section are in lieu of the amounts that would otherwise be
appropriated pursuant to any other provision of law.  
   (b) Notwithstanding Section 42238.1 of the Education Code or any
other law, for purposes of Section 48664 of the Education Code, the
cost-of-living adjustment is 0 percent for the 2012-13 fiscal year.

   SEC. 89.    (a) It is the intent of the Legislature
that basic aid school districts assume categorical funding reductions
proportionate to the revenue limit reductions implemented for
nonbasic aid school districts in the 2008-09, 2009-10, 2010-11, and
2011-12 fiscal years. It is the intent of the Legislature that the
reductions to categorical funding for basic aid school districts set
forth in this section be restored at the same time as, and in direct
proportion to, reductions in the deficit factor for school district
revenue limits set forth in Section 42238.146 of the Education Code.
The Superintendent of Public Instruction shall reduce the amount of
categorical funding allocated to basic aid school districts in the
2012-13 fiscal year, as follows:  
   (1) For the 2012-13 fiscal year, the State Department of Education
shall notify each basic aid school district, by September 1, 2013,
or two months after the Budget Act of 2013 is enacted, whichever is
later, of the amount of funds to be reduced from its categorical
funding allocations, as follows:  
   (A) Multiply each district's 2012-13 fiscal year total revenue
limit subject to the deficit factor specified in paragraph (5) of
subdivision (a) of Section 42238.146 of the Education Code,
calculated as of the 2012-13 fiscal year certified second principal
apportionment, by 8.92 percent.  
   (B) The State Department of Education shall recover from
categorical funds identified in paragraph (2) and apportioned in the
2013-14 fiscal year to school districts that were basic aid school
districts in the 2012-13 fiscal year, the lesser of the amount
calculated in subparagraph (A) or the amount by which the sum of the
amounts described in subdivision (h) of Section 42238 of the
Education Code exceeds the school district's revenue limit. This
result will be further limited by the following:  
   (i) The amount of categorical funds to be reduced shall be limited
to the extent that the provisions of Section 41975 of the Education
Code cannot be met through other state aid.  
   (ii) If the amount determined in subparagraph (A) exceeds the
amount of categorical funding owed or paid in the 2013-14 fiscal year
to the basic aid school district for programs identified in
paragraph (2), the State Department of Education shall recover the
lesser amount.  
   (2) The State Department of Education shall recover the amount of
funds calculated in paragraph (1) and may offset funds for any
categorical program to be received in the 2013-14 fiscal year, with
the exception of funds received under the After School Education and
Safety Program, the Quality Education Investment Act of 2006, and
funds for child care and development.  
   (b) By June 30, 2014, the State Department of Education shall
report to the Controller and the Director of Finance the amounts that
were recovered from each categorical education program and the
corresponding item of appropriation in the Budget Act of 2012 that is
to be reduced. The amounts so reduced shall revert to the General
Fund. The reductions pursuant to this subdivision shall be reductions
in the amount appropriated for purposes of Section 8 of Article XVI
of the California Constitution for the 2012-13 fiscal year. 

   (c) For purposes of this section, "basic aid school district"
means a school district that does not receive from the state, for the
2012-13 fiscal year, an apportionment of state funds pursuant to
subdivision (h) of Section 42238 of the Education Code. 
   SEC. 90.    Of the amount allocated in Schedule (1)
of Item 6110-161-0001 of Section 2.00 of the Budget Act of 2011,
twelve million one hundred thirty-three thousand dollars
($12,133,000) is provided to fully fund the 2008-09 maintenance of
effort in the special education program. 
   SEC. 91.    (a) Notwithstanding any other law, the
Superintendent of Public Instruction shall certify to the Controller
the amounts needed for the 2012-13 fiscal year to fund the Class Size
Reduction Program operated pursuant to Chapter 6.10 (commencing with
Section 52120) of Part 28 of Division 4 of Title 2 of the Education
Code, pursuant to the following schedule:  
   (1) Within 90 days of the enactment of the Budget Act of 2012, the
Superintendent of Public Instruction shall certify to the Controller
the amount needed to fund the advance apportionments for the 2012-13
fiscal year, consistent with paragraph (2) of subdivision (c), and
paragraph (1) of subdivision (g), of Section 52126 and Section
52124.3 of the Education Code.  
   (2) By February 25, 2013, the Superintendent of Public Instruction
shall certify to the Controller the amount needed to fund the
apportionment payments for the 2012-13 fiscal year on the basis of
applications received, consistent with paragraph (2) of subdivision
(c), and paragraph (2) of subdivision (g), of Section 52126 and
Section 52124.3 of the Education Code.  
   (3) By July 25, 2013, the Superintendent of Public Instruction
shall certify to the Controller the amount needed to fund the
apportionments for the 2012-13 fiscal year on the basis of actual
enrollment, consistent with paragraph (2) of subdivision (c), and
paragraph (3) of subdivision (g), of Section 52126 and Section
52124.3 of the Education Code.  
   (4) By April 30, 2014, the Superintendent of Public Instruction
shall certify to the Controller the amount needed to fund the full
apportionments for the 2012-13 fiscal year on the basis of revised
reports of actual enrollment, consistent with paragraph (2) of
subdivision (c), and paragraph (3) of subdivision (g), of Section
52126 and Section 52124.3 of the Education Code.  
   (b) Not later than five days following each certification made
pursuant to subdivision (a), the Controller shall transfer from the
General Fund to Section A of the State School Fund for allocation by
the Superintendent of Public Instruction for purposes of Chapter 6.10
(commencing with Section 52120) of Part 28 of Division 4 of Title 2
of the Education Code the following amounts:  
   (1) For the certification made pursuant to paragraph (1) of
subdivision (a), the amount certified.  
   (2) For the certification made pursuant to paragraph (2) of
subdivision (a), 55 percent of the amount certified minus the amount
transferred pursuant to paragraph (1).  
   (3) For the certification made pursuant to paragraph (3) of
subdivision (a), the amount certified minus the sum of the amounts
transferred pursuant to paragraphs (1) and (2). 
   (4) For the certification made pursuant to paragraph (4) of
subdivision (a), the amount certified pursuant to paragraph (4) of
subdivision (a) minus the sum of the amounts transferred pursuant to
paragraphs (1), (2), and (3).  
   (c) Not less than 30 days before making each certification
pursuant to subdivision (a), the Superintendent of Public Instruction
shall notify the Department of Finance, the Legislative Analyst, and
the appropriate policy and fiscal committees of the Legislature
regarding the amounts the Superintendent intends to certify to the
Controller and shall include in that notification the data used in
determining the amounts to be certified.  
   (d) The per pupil amounts for Option One and Option Two for the
2012-13 fiscal year shall be the same as those provided in the
2009-10 fiscal year.  
   (e) For the purposes of making the computations required by
Section 8 of Article XVI of the California Constitution, the
transfers made by paragraphs (3) and (4) of subdivision (b) shall be
deemed to be "General Fund revenues appropriated for school
districts," as defined in subdivision (c) of Section 41202 of the
Education Code, for the 2013-14 fiscal year, and included within the
"total allocations to school districts and community college
districts from General Fund proceeds of taxes appropriated pursuant
to Article XIII B," as defined in subdivision (e) of Section 41202 of
the Education Code, for the 2013-14 fiscal year. 
   SEC. 92.    (a) The sum of nine hundred five million
seven hundred thousand dollars ($905,700,000) is hereby appropriated
from the General Fund to the State Department of Education. This
appropriation reflects the portion of the payment for class size
reduction in kindergarten and grades 1 to 3, inclusive, that is to be
deferred until and attributed to the 2013-14 fiscal year and the
June 2013 principal apportionment that is to be deferred until July
2013 and attributed to the 2013-14 fiscal year. Notwithstanding any
other law, the department shall encumber the funds appropriated in
this section by July 31, 2013. It is the intent of the Legislature
that, by extending the encumbrance authority for the funds
appropriated in this section to July 31, 2013, the funds will be
treated in a manner consistent with Section 1.80 of the Budget Act of
2012. The appropriation is made in accordance with the following
schedule:  
   (1) Six million two hundred twenty-seven thousand dollars
($6,227,000) for apprenticeship programs to be expended consistent
with the requirements specified in Item 6110-103-0001 of Section 2.00
of the Budget Act of 2012.  
   (2) Ninety million one hundred seventeen thousand dollars
($90,117,000) for supplemental instruction to be expended consistent
with the requirements specified in Item 6110-104-0001 of Section 2.00
of the Budget Act of 2012. Of the amount appropriated by this
paragraph, fifty-one million sixty-one thousand dollars ($51,061,000)
shall be expended consistent with Schedule (1) of Item 6110-104-0001
of Section 2.00 of the Budget Act of 2012, twelve million three
hundred thirty thousand dollars ($12,330,000) shall be expended
consistent with Schedule (2) of that item, four million six hundred
ninety thousand dollars ($4,690,000) shall be expended consistent
with Schedule (3) of that item, and twenty-two million thirty-six
thousand dollars ($22,036,000) shall be expended consistent with
Schedule (4) of that item.  
   (3) Thirty-nine million six hundred thirty thousand dollars
($39,630,000) for regional occupational centers and programs to be
expended consistent with the requirements specified in Schedule (1)
of Item 6110-105-0001 of Section 2.00 of the Budget Act of 2012.
 
   (4) Four million two hundred ninety-four thousand dollars
($4,294,000) for the Gifted and Talented Pupil Program to be expended
consistent with the requirements specified in Item 6110-124-0001 of
Section 2.00 of the Budget Act of 2012.  
   (5) Forty-five million eight hundred ninety-six thousand dollars
($45,896,000) for adult education to be expended consistent with the
requirements specified in Schedule (1) of Item 6110-156-0001 of
Section 2.00 of the Budget Act of 2012.  
   (6) Four million seven hundred fifty-one thousand dollars
($4,751,000) for community day schools to be expended consistent with
the requirements specified in Item 6110-190-0001 of Section 2.00 of
the Budget Act of 2012.  
   (7) Five million nine hundred forty-seven thousand dollars
($5,947,000) for categorical block grants for charter schools to be
expended consistent with the requirements specified
                                in Item 6110-211-0001 of Section 2.00
of the Budget Act of 2012.  
   (8) Thirty-eight million seven hundred twenty thousand dollars
($38,720,000) for the School Safety Block Grant to be expended
consistent with the requirements specified in Item 6110-228-0001 of
Section 2.00 of the Budget Act of 2012.  
   (9) One hundred million one hundred eighteen thousand dollars
($100,118,000) for the Targeted Instructional Improvement Block Grant
Program to be expended consistent with the requirements specified in
Item 6110-246-0001 of Section 2.00 of the Budget Act of 2012. 

   (b) The amount appropriated in subdivision (a) shall be reduced by
the lesser of five hundred seventy million dollars ($570,000,000) or
the sum of the amounts transferred pursuant to paragraphs (3) and
(4) of subdivision (b) of Section 91 of this act.  
   (c) For purposes of making the computations required by Section 8
of Article XVI of the California Constitution, the appropriations
made by subdivision (a) shall be deemed to be "General Fund revenues
appropriated for school districts," as defined in subdivision (c) of
Section 41202 of the Education Code, for the 2013-14 fiscal year, and
included within the "total allocations to school districts and
community college districts from General Fund proceeds of taxes
appropriated pursuant to Article XIII B," as defined in subdivision
(e) of Section 41202 of the Education Code, for the 2013-14 fiscal
year. 
   SEC. 93.    Notwithstanding any other law, the funds
appropriated pursuant to Items 6110-103-0001, 6110-104-0001,
6110-105-0001, 6110-124-0001, 6110-156-0001, 6110-158-0001,
6110-161-0001, 6110-190-0001, 6110-211-0001, 6110-234-0001, and
6110-243-0001 of Section 2.00 of the Budget Act of 2012 shall be
encumbered by July 31, 2013. This one-month extension of encumbrance
authority is provided due to the effect of the deferral of the June
2013 principal apportionment on the budget items specified in this
section. It is the intent of the Legislature that, by extending the
encumbrance authority for the funds identified in this section to
July 31, 2013, the funds will be treated in a manner consistent with
Section 1.80 of the Budget Act of 2012. 
   SEC. 94.    (a) The sum of five hundred sixteen
million eight hundred eighty-one thousand dollars ($516,881,000) is
hereby appropriated from the General Fund to the Board of Governors
of the California Community Colleges in augmentation of Schedule (1)
of Item 6870-101-0001 of Section 2.00 of the Budget Act of 2012 for
the purpose of increasing apportionment funding to community college
districts.  
   (b) Notwithstanding any other law that governs the regulations
adopted by the Board of Governors of the California Community
Colleges, the funds appropriated in subdivision (a) shall be
allocated as follows:  
   (1) One hundred million dollars ($100,000,000) shall be allocated
for the month of February.  
   (2) One hundred million dollars ($100,000,000) shall be allocated
for the month of March.  
   (3) One hundred million dollars ($100,000,000) shall be allocated
for the month of April.  
   (4) One hundred million dollars ($100,000,000) shall be allocated
for the month of May.  
   (5) One hundred sixteen million eight hundred eighty-one thousand
dollars ($116,881,000) shall be allocated for the month of June.

   (c) For the purposes of making the computations required by
Section 8 of Article XVI of the California Constitution, the
appropriations made by subdivision (b) shall be deemed to be "General
Fund revenues appropriated for community college districts," as
defined in subdivision (d) of Section 41202 of the Education Code,
for the 2012-13 fiscal year, and included within the "total
allocations to school districts and community college districts from
General Fund proceeds of taxes appropriated pursuant to Article XIII
B," as defined in subdivision (e) of Section 41202 of the Education
Code, for the 2012-13 fiscal year.  
   (d) This section shall not become operative until December 15,
2012, and shall become operative only if the Schools and Local Public
Safety Protection Act of 2012 (Attorney General reference number
12-0009) is not approved by the voters at the November 6, 2012,
statewide general election, or if the provisions of that act that
modify personal income tax rates do not become operative due to a
conflict with another initiative measure that is approved at the same
election and receives a greater number of affirmative votes. If the
Schools and Local Public Safety Protection Act of 2012 (Attorney
General reference number 12-0009) is approved by the voters at the
November 6, 2012, statewide general election, and all of the
provisions of that act that modify personal income tax rates become
operative, this section shall not become operative and shall be
repealed on January 1, 2013. 
   SEC. 95.    (a) On or before June 30, 2012, an amount
to be determined by the Director of Finance, but not to exceed one
hundred sixteen million one hundred thirty-three thousand dollars
($116,133,000), shall be appropriated from the General Fund to the
Board of Governors of the California Community Colleges in
augmentation of Schedule (1) of Item 6870-101-0001 of Section 2.00 of
the Budget Act of 2011. 
   (b) The funds appropriated in subdivision (a) shall only be
available to the extent that revenues distributed to community
college districts pursuant to Section 34188 of the Health and Safety
Code are less than the estimated amount reflected in the Budget Act
of 2011, as determined by the Director of Finance.  
   (c) In making the determination pursuant to subdivision (b), the
Director of Finance shall consider any other local property tax
revenues and student fee revenues collected in excess of the
estimated amounts reflected in the Budget Act of 2011.  
   (d) The Director of Finance shall notify the Chairperson of the
Joint Legislative Budget Committee, or his or her designee, of his or
her intent to notify the Controller of the necessity to release
funds appropriated in subdivision (a) and the amount needed to
address the property tax shortfall determined pursuant to subdivision
(b). The Controller shall make the funds available not sooner than
five days after this notification and the Office of the Chancellor of
the California Community Colleges shall work with the Controller to
allocate these funds to community college districts as soon as
practicable.  
   (e) For purposes of making the computations required by Section 8
of Article XVI of the California Constitution, the appropriations
made by subdivision (a) shall be deemed to be "General Fund revenues
appropriated for community college districts," as defined in
subdivision (d) of Section 41202 of the Education Code, for the
2011-12 fiscal year, and included within the "total allocations to
school districts and community college districts from General Fund
proceeds of taxes appropriated pursuant to Article XIII B," as
defined in subdivision (e) of Section 41202 of the Education Code,
for the 2011-12 fiscal year. 
   SEC. 96.    (a) On or before June 30, 2012, an amount
to be determined by the Director of Finance, but not to exceed
nineteen million three hundred forty-seven thousand dollars
($19,347,000), shall be appropriated from the General Fund to the
Superintendent of Public Instruction in augmentation of Schedule (1)
of Item 6110-161-0001 of Section 2.00 of the Budget Act of 2011.
 
   (b) The funds appropriated in subdivision (a) shall only be
available to the extent that revenues distributed to local
educational agencies pursuant to Section 34188 of the Health and
Safety Code are less than the estimated amount reflected in the
Budget Act of 2011, as determined by the Director of Finance. 

   (c) In making the determination pursuant to subdivision (b), the
Director of Finance shall consider any other local property tax
revenues collected in excess of the estimated amounts reflected in
the Budget Act of 2011.  
   (d) The Director of Finance shall notify the Chairperson of the
Joint Legislative Budget Committee, or his or her designee, of his or
her intent to notify the Controller of the necessity to release
funds appropriated in subdivision (a) and the amount needed to
address the property tax shortfall determined pursuant to subdivision
(b). The Controller shall make the funds available not sooner than
five days after this notification and the State Department of
Education shall work with the Controller to allocate these funds to
local educational agencies as soon as practicable. 
   (e) For purposes of making the computations required by Section 8
of Article XVI of the California Constitution, the appropriations
made by subdivision (a) shall be deemed to be "General Fund revenues
appropriated for school districts," as defined in subdivision (c) of
Section 41202 of the Education Code, for the 2011-12 fiscal year, and
included within the "total allocations to school districts and
community college districts from General Fund proceeds of taxes
appropriated pursuant to Article XIII B," as defined in subdivision
(e) of Section 41202 of the Education Code, for the 2011-12 fiscal
year. 
   SEC. 97.    (a) On or before June 30, 2013, an amount
to be determined by the Director of Finance shall be appropriated
from the General Fund to the Board of Governors of the California
Community Colleges in augmentation of Schedule (1) of Item
6870-101-0001 of Section 2.00 of the Budget Act of 2012.  
   (b) The funds appropriated in subdivision (a) shall only be
available to the extent that revenues distributed to community
colleges pursuant to Sections 34177, 34179.5, 34179.6, and 34188 of
the Health and Safety Code are less than the estimated amount
reflected in the Budget Act of 2012, as determined by the Director of
Finance.  
   (c) On or before June 30, 2013, the Director of Finance shall
determine if the revenues distributed to community college districts
pursuant to Sections 34177, 34179.5, 34179.6, and 34188 of the Health
and Safety Code exceed the estimated amount reflected in the Budget
Act of 2012 and shall reduce Schedule (1) of Item 6870-101-0001 of
Section 2.00 of the Budget Act of 2012 by the amount of that excess.
 
   (d) In making the determinations pursuant to subdivisions (b) and
(c), the Director of Finance shall consider any other local property
tax revenues and student fee revenues collected in excess or in
deficit of the estimated amounts reflected in the Budget Act of 2012.
 
   (e) The Director of Finance shall notify the Chairperson of the
Joint Legislative Budget Committee, or his or her designee, of his or
her intent to notify the Controller of the necessity to release
funds appropriated in subdivision (a) or to make the reduction
pursuant to subdivision (c), and the amount needed to address the
property tax shortfall determined pursuant to subdivision (b) or the
amount of the reduction made pursuant to subdivision (c). The
Controller shall make the funds available not sooner than five days
after this notification and the Office of the Chancellor of the
California Community Colleges shall work with the Controller to
allocate these funds to community college districts as soon as
practicable.  
   (f) For the purposes of making the computations required by
Section 8 of Article XVI of the California Constitution, the
appropriations made by subdivision (a) shall be deemed to be "General
Fund revenues appropriated for community college districts," as
defined in subdivision (d) of Section 41202 of the Education Code,
for the 2012-13 fiscal year, and included within the "total
allocations to school districts and community college districts from
General Fund proceeds of taxes appropriated pursuant to Article XIII
B," as defined in subdivision (e) of Section 41202 of the Education
Code, for the 2012-13 fiscal year. 
   SEC. 98.    (a) On or before June 30, 2013, an amount
to be determined by the Director of Finance shall be appropriated
from the General Fund to the Superintendent of Public Instruction in
augmentation of Schedule (1) of Item 6110-161-0001 of Section 2.00 of
the Budget Act of 2012.  
   (b) The funds appropriated in subdivision (a) shall only be
available to the extent that revenues distributed to local
educational agencies for special education programs pursuant to
Sections 34177, 34179.5, 34179.6, and 34188 of the Health and Safety
Code are less than the estimated amount reflected in the Budget Act
of 2012, as determined by the Director of Finance.  
   (c) On or before June 30, 2013, the Director of Finance shall
determine if the revenues distributed to local educational agencies
for special education programs pursuant to Sections 34177, 34179.5,
34179.6, and 34188 of the Health and Safety Code exceed the estimated
amount reflected in the Budget Act of 2012 and shall reduce Schedule
(1) of Item 6110-161-0001 of Section 2.00 of the Budget Act of 2012
by the amount of that excess.  
   (d) In making the determinations pursuant to subdivisions (b) and
(c), the Director of Finance shall consider any other local property
tax revenues collected in excess or in deficit of the estimated
amounts reflected in the Budget Act of 2012.  
   (e) The Director of Finance shall notify the Chairperson of the
Joint Legislative Budget Committee, or his or her designee, of his or
her intent to notify the Controller of the necessity to release
funds appropriated in subdivision (a) or to make the reduction
pursuant to subdivision (c), and the amount needed to address the
property tax shortfall determined pursuant to subdivision (b) or the
amount of the reduction made pursuant to subdivision (c). The
Controller shall make the funds available not sooner than five days
after this notification and the State Department of Education shall
work with the Controller to allocate these funds to local educational
agencies as soon as practicable.  
   (f) For the purposes of making the computations required by
Section 8 of Article XVI of the California Constitution, the
appropriations made by subdivision (a) shall be deemed to be "General
Fund revenues appropriated for school districts," as defined in
subdivision (c) of Section 41202 of the Education Code, for the
2012-13 fiscal year, and included within the "total allocations to
school districts and community college districts from General Fund
proceeds of taxes appropriated pursuant to Article XIII B," as
defined in subdivision (e) of Section 41202 of the Education Code,
for the 2012-13 fiscal year. 
   SEC. 99.   If the Schools and Local Public Safety
Protection Act of 2012 (Attorney General reference number 12-0009) is
not approved by the voters at the November 6, 2012, statewide
general election, or if the provisions of that act that modify
personal income tax rates do not become operative due to a conflict
with another initiative measure that is approved at the same election
and receives a greater number of affirmative votes, on or before
November 30, 2012, the Chancellor of the California Community
Colleges, as approved by the Department of Finance, shall reduce
community college district base workload measures to match available
general-purpose apportionment funding. It is the intent of the
Legislature that community college districts, to the greatest extent
possible, shall implement any necessary workload reductions in
courses and programs outside of those needed by students to achieve
their basic skills, workforce training, or transfer goals. On or
before September 15, 2013, the Chancellor of the California Community
Colleges shall provide the fiscal committees of both houses of the
Legislature and the Director of Finance with a report on the
implementation of this provision. 
   SEC. 100.    If the Schools and Local Public Safety
Protection Act of 2012 (Attorney General reference number 12-0009) is
approved by the voters at the November 6, 2012, statewide general
election, and all of the provisions of that act that modify personal
income tax rates become operative, fifty million dollars
($50,000,000) (Proposition 98 General Fund) shall be transferred from
Schedule (1) of Item 6870-101-0001 of Section 2.00 of the Budget Act
of 2012 to Schedule (4) of Item 6870-101-0001 of Section 2.00 of the
Budget Act of 2012 for the purpose of providing growth funding to
community college districts. The California Community Colleges
Chancellor's Office may adjust community college district
apportionment funding allocations as necessary to reflect the
possibility that fifty million dollars ($50,000,000) may be
distributed as growth funding. 
   SEC. 101.    (a) The Director of Finance shall reduce
Schedule (2) of Item 4300-101-0001 of Section 2.00 of the Budget Act
of 2012 by one hundred ninety-seven million one hundred fifty-two
thousand dollars ($197,152,000).  
   (b) The sum of one hundred ninety-seven million one hundred
fifty-two thousand dollars ($197,152,000) is hereby appropriated from
the General Fund to the State Department of Developmental Services
for the Early Start Program, established pursuant to Title 14
(commencing with Section 95000) of the Government Code, and
consistent with Schedule (2) of Item 4300-101-0001 of Section 2.00 of
the Budget Act of 2011.  
   (c) For the purposes of making the computations required by
Section 8 of Article XVI of the California Constitution, the
appropriations made by subdivision (b) shall be deemed to be "General
Fund revenues appropriated for school districts," as defined in
subdivision (c) of Section 41202 of the Education Code, for the
2012-13 fiscal year, and included within the "total allocations to
school districts and community college districts from General Fund
proceeds of taxes appropriated pursuant to Article XIII B," as
defined in subdivision (e) of Section 41202 of the Education Code,
for the 2012-13 fiscal year.  
   (d) This section shall become operative on December 15, 2012, only
if the Schools and Local Public Safety Protection Act of 2012
(Attorney General reference number 12-0009) is not approved by the
voters at the November 6, 2012, statewide general election, or if the
provisions of that act that modify personal income tax rates do not
become operative due to a conflict with another initiative measure
that is approved at the same election and receives a greater number
of affirmative votes. 
   SEC. 102.    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. 103.    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.  
  SECTION 1.    It is the intent of the Legislature
to enact statutory changes relating to the Budget Act of 2012.