BILL NUMBER: AB 2435	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Roger Hernández

                        FEBRUARY 24, 2012

   An act to amend Section 12000 of, and to add Section 33038 to, the
Education Code, relating to education finance.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2435, as introduced, Roger Hernández. Education finance:
indirect cost rates.
   Existing law requires the State Board of Education to direct the
allocation and apportionment of federal funds to school districts, as
defined, and other agencies entitled to receive those funds.
   This bill would require the state board, and any other state
agency that administers a grant or allocation of federal funds to a
school district, as defined, to allow an indirect cost rate, as
defined, that is not less than the indirect cost rate established by
the state board for each school district, unless a lower indirect
cost rate is required by federal law. The bill would impose similar
requirements on the state board with respect to grants or allocations
of state funds.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 12000 of the Education Code is amended to read:

   12000.  (a) If, by any act of Congress, funds are provided as
federal aid to education to the several states and the disposition of
the funds is not otherwise provided for by or under the act of
Congress or by or under any law of this state, the apportionment and
distribution of those funds to school districts shall, insofar as
consistent with the requirements prescribed by the federal law and
implementing rules and regulations, be governed by the standards set
forth in this article.
   (b) If a federal law designates a state educational agency or
other agency or officer primarily responsible for state supervision
of public schools, that designation shall be deemed to refer to the
 State Board of Education   state board  .
The  State Board of Education   state board
 shall make timely application for any federal funds made
available, and shall, pursuant to the federal law and this article,
direct the allocation and apportionment of the federal funds to
school districts. 
   (c) Notwithstanding any other law, the state board, and any other
state agency that administers a grant or allocation of federal funds
to a school district, shall allow an indirect cost rate, as that term
is defined in Section 33038, that is not less than the indirect cost
rate established by the state board for each school district, unless
a lower indirect cost rate is required by federal law. 

   (c) 
    (d)  For purposes of this section and Section 12001,
"school districts" include school districts, county offices of
education, and other educational agencies or entities deemed eligible
pursuant to state and federal law.
  SEC. 2.  Section 33038 is added to the Education Code, to read:
   33038.  (a) Notwithstanding any other law, the state board, or any
other state agency that administers a grant or allocation of state
funds to a school district, shall allow an indirect cost rate that is
not less than the indirect cost rate established by the state board
for each school district, unless a lower indirect rate is required by
law.
   (b) As used in this section:
   (1) "Direct cost" means a cost that provides measurable, direct
benefits to a particular program of an agency. Direct costs of a
local educational agency include, but are not necessarily limited to,
salaries and benefits of teachers and instructional aides, costs for
purchasing textbooks and instructional supplies, and costs for
providing pupils with counseling, health services, and
transportation.
   (2) "Indirect cost" means the agency-wide, general management cost
of the activities for the direction and control of the agency as a
whole. Indirect costs include, but are not necessarily limited to,
administrative activities necessary for the general operation of the
agency, such as accounting, budgeting, payroll preparation, personnel
services, purchasing, and centralized data processing.
   (3) "Indirect cost rate" means the ratio of an agency's indirect
costs to its direct costs.