BILL NUMBER: AB 2435	ENROLLED
	BILL TEXT

	PASSED THE SENATE  AUGUST 22, 2012
	PASSED THE ASSEMBLY  AUGUST 27, 2012
	AMENDED IN SENATE  AUGUST 13, 2012
	AMENDED IN SENATE  JUNE 27, 2012
	AMENDED IN ASSEMBLY  APRIL 26, 2012
	AMENDED IN ASSEMBLY  APRIL 10, 2012

INTRODUCED BY   Assembly Member Roger Hernández

                        FEBRUARY 24, 2012

   An act to amend, repeal, and add Section 12000 of, and to add and
repeal Section 33338 of, the Education Code, relating to education
finance.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2435, 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.
Existing law authorizes the State Department of Education to take
numerous actions with respect to the receipt of funding by school
districts and other local educational agencies.
   This bill would require, until January 1, 2016, the State
Department of Education, 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 department for each
school district, unless federal law requires a lower indirect cost
rate for school districts receiving federal funds. The bill would
impose similar requirements on the department with respect to grants
or allocations of state funds.


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. The 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) The department 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
33329, that is not less than the indirect cost rate established by
the department for each school district, unless federal law requires
a lower indirect cost rate for school districts that receive federal
funds.
   (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.
   (e) This section shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or extends
that date.
  SEC. 2.  Section 12000 is added to the Education Code, 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. The 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) 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.
   (d) This section shall become operative on January 1, 2016.
  SEC. 3.  Section 33338 is added to the Education Code, to read:
   33338.  (a) The department 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 department, unless a lower 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 agencywide, 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 indirect cost rate established
by the department for each school district.
   (4) "School district" has the same meaning as defined in
subdivision (d) of Section 12000.
   (c) This section shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or extends
that date.