BILL NUMBER: AB 2662 AMENDED
BILL TEXT
AMENDED IN SENATE JULY 6, 2012
AMENDED IN SENATE JUNE 20, 2012
AMENDED IN ASSEMBLY MAY 2, 2012
AMENDED IN ASSEMBLY APRIL 18, 2012
INTRODUCED BY Committee on Education (Brownley (Chair), Ammiano,
Buchanan, Butler, Carter, Eng, Halderman, Wagner, and Williams)
FEBRUARY 29, 2012
An act to amend Sections 35566, 35787, 41326, 41344, 42127, 42131,
42238.12, 48070.6, 48904, 49550.3, 51765, and 60605.86 of, and to
amend the heading of Article 3 (commencing with Section 33530) of
Chapter 4 of Part 20 of Division 2 of Title 2 of, the Education Code,
to amend Section 8880.5 of the Government Code, and to amend Section
75.70 of the Revenue and Taxation Code, relating to education.
LEGISLATIVE COUNSEL'S DIGEST
AB 2662, as amended, Committee on Education. Education.
(1) Existing law provides a process for the reorganization of
school districts and includes within the actions to reorganize a
lapse, which is defined as an action to dissolve a school district
and annex the entire territory of that district to one or more
adjoining school districts. Existing law makes an action to lapse a
school district subject to specified general statutory provisions
regarding the reorganization of school districts.
This bill would make an action to lapse a school district also
subject to other provisions regarding plans and recommendations of a
county committee on school district organization.
(2) Existing law provides emergency apportionments for school
districts that have become insolvent, and requires various actions to
be taken by the school district and the Superintendent of Public
Instruction to receive these apportionments, including the
appointment of a trustee, the appointment of an administrator, and
the approval of recovery plans. Existing law authorizes the
Superintendent to reassume all the legal rights, duties, and powers
of the governing board of the school district if the school district
violates a provision of the recovery plans within 5 years after the
trustee is removed.
This bill would authorize the Superintendent to reassume those
rights, duties, and powers during the period of the trustee's
appointment and when specified improvement plans are violated.
(3) Existing law requires the Superintendent and the Director of
Finance, jointly, to establish a plan for repayment of school funds
that a local educational agency received on the basis of average
daily attendance that did not comply with statutory or regulatory
requirements that were conditions of apportionments, as determined by
an audit or review. Existing law also requires the Superintendent
and the Director of Finance, jointly, to establish a plan for
repayment of a penalty arising from an audit exception. Existing law
authorizes a local educational agency to appeal a finding of a final
audit report.
This bill would specify, for purposes of the above-described
provisions, that a charter school is a local educational agency.
(4) Existing law requires the governing board of a school district
to certify twice during a fiscal year whether the school district is
able to meet its financial obligations for the remainder of the
fiscal year and for the subsequent fiscal year. Existing law requires
these certifications to be classified as positive, qualified, or
negative and to be filed with the county superintendent of schools.
Existing law requires a county superintendent of schools to change a
positive certification to negative or qualified when the county
office of education determines a negative or qualified certification
should have been filed.
This bill would authorize the county superintendent of schools
also to change a qualified certification if it is determined that a
negative certification should have been filed.
(5) Existing law makes the parent or guardian of any minor whose
willful misconduct results in injury or death to a pupil or public or
private school employee or volunteer or who willfully cuts, defaces,
or otherwise injures real or personal property belonging to a school
district or private school, or personal property of a school
employee, liable for all damages so caused by the minor or for a
reward concerning information leading to the determination of the
identity of, and the apprehension of, a person causing that injury or
damage. Existing law limits the parent's or guardian's liability to
$10,000.
This bill would adjust the $10,000 limit on liability annually for
inflation, as specified.
(6) Existing law authorizes the governing board of a school
district to approve supplemental instructional materials other than
those approved by the state board State Board
of Education if the governing board performs specified reviews
and determines that other supplemental instructional materials are
aligned with the California common core academic content standards
and meet the needs of the pupils of the school district.
This bill would extend this authorization to county offices of
education.
(7) Existing law governing work experience education programs
contains a reference to mentally retarded pupils.
This bill would change that reference to pupils with intellectual
disabilities.
(8) Existing law, known as the California State Lottery Act of
1984, establishes a state lottery that, among other things, provides
funds to benefit public education. The act requires payments of
lottery funds to be made directly to public school districts on the
basis of an equal amount for each unit of average daily attendance
and requires the number of units of average daily attendance in the
2008-09 to 2012-13 fiscal years, inclusive, to include the same
amount of average daily attendance for classes for adults and
regional occupational centers and programs used in the calculation
made for the 2007-08 fiscal year. As an initiative measure, the act
requires that none of its provisions may be changed except to further
its purposes by a 2/3 vote of both houses of the Legislature and
signed by the Governor.
This bill also would require the number of units of average daily
attendance in the 2013-14 and 2014-15 fiscal years to include the
same amount of average daily attendance for classes for adults and
regional occupational centers and programs used in the calculation
made for the 2007-08 fiscal year. The bill would declare that this
change furthers the purposes of the act.
(9) Existing tax law excludes school districts that receive in the
prior fiscal year a minimum of $120 of state aid per pupil or $2,400
per school district from receiving specified supplemental tax
revenues. Existing law defines these school districts as basic aid
school districts or excess tax school entities.
This bill would refer to the school districts that are not
eligible to receive the specified supplemental tax revenues as excess
tax school entities.
(10) This bill would make technical amendments and nonsubstantive
changes.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The heading of Article 3 (commencing with Section
33530) of Chapter 4 of Part 20 of Division 2 of Title 2 of the
Education Code is amended to read:
Article 3. Instructional Quality Commission
SEC. 2. Section 35566 of the Education Code is amended to read:
35566. Notwithstanding any provisions of this article, exchanges
of property tax revenues between school districts as a result of
reorganization shall be determined pursuant to subdivision (i) of
Section 99 of the Revenue and Taxation Code if one or more affected
school districts receive only basic aid apportionments required by
Section 6 of Article IX of the California Constitution.
SEC. 3. Section 35787 of the Education Code is amended to read:
35787. Except as otherwise provided in this article, an action to
lapse a school district is subject to the provisions of Chapter 3
(commencing with Section 35500), and the county committee may add to
its order to lapse a school district, pursuant to Section
35783, appropriate provisions specified in Article 3 (commencing with
Section 35730).
SEC. 4. Section 41326 of the Education Code is amended to read:
41326. (a) Notwithstanding any other provision of this code, the
acceptance by a school district of an apportionment made pursuant to
Section 41320 that exceeds an amount equal to 200 percent of the
amount of the reserve recommended for that school district
under the standards and criteria adopted pursuant to Section 33127
constitutes the agreement by the school district to the
conditions set forth in this article. Before applying for an
emergency apportionment in the amount identified in this subdivision,
the governing board of a school district shall discuss the need for
that apportionment at a regular or special meeting of the governing
board of the school district and, at that meeting, shall
receive testimony regarding the apportionment from parents, exclusive
representatives of employees of the school district, and
other members of the community. For purposes of this article,
"qualifying school district" means a school district that accepts a
loan as described in this subdivision.
(b) The Superintendent shall assume all the legal rights, duties,
and powers of the governing board of a qualifying school district.
The Superintendent, in consultation with the county superintendent of
schools, shall appoint an administrator to act on his or her behalf
in exercising the authority described in this subdivision in
accordance with all of the following:
(1) The administrator shall serve under the direction and
supervision of the Superintendent until terminated by the
Superintendent at his or her discretion. The Superintendent shall
consult with the county superintendent of schools before terminating
the administrator.
(2) The administrator shall have recognized expertise in
management and finance.
(3) To facilitate the appointment of the administrator and the
employment of any necessary staff, for purposes of this section, the
Superintendent is exempt from the requirements of Article 6
(commencing with Section 999) of Chapter 6 of Division 4 of the
Military and Veterans Code and Part 2 (commencing with Section 10100)
of Division 2 of the Public Contract Code.
(4) Notwithstanding any other law, the Superintendent may appoint
an employee of the state or the office of the county superintendent
of schools to act as administrator for up to the duration of the
administratorship. During the tenure of his or her appointment, the
administrator, if he or she is an employee of the state or the office
of the county superintendent of schools, is an employee of the
school district, but shall remain in the same retirement system under
the same plan that has been provided by his or her employment with
the state or the office of the county superintendent of schools. Upon
the expiration or termination of the appointment, the employee shall
have the right to return to his or her former position, or to a
position at substantially the same level as that position, with the
state or the office of the county superintendent of schools. The time
served in the appointment shall be counted for all purposes as if
the administrator had served that time in his or her former position
with the state or the office of the county superintendent of schools.
(5) Except for an individual appointed as an administrator by the
Superintendent pursuant to paragraph (4), the administrator shall be
a member of the State Teachers' Retirement System, if qualified, for
the period of service as administrator, unless he or she elects in
writing not to become a member. A person who is a member or retirant
of the State Teachers' Retirement System at the time of appointment
shall continue to be a member or retirant of the system for the
duration of the appointment. If the administrator chooses to become a
member or is already a member, the administrator shall be placed on
the payroll of the school district for purposes of providing
appropriate contributions to the system. The Superintendent may also
require the administrator to be placed on the payroll of the school
district for purposes of remuneration, other benefits, and payroll
deductions.
(6) For purposes of workers' compensation benefits, the
administrator is an employee of the qualifying school
district, except that an administrator appointed pursuant to
paragraph (4) may be deemed an employee of the state or office of the
county superintendent of schools, as applicable.
(7) The qualifying school district shall add the
administrator as a covered employee of the school district for all
purposes of errors and omissions liability insurance policies.
(8) The salary and benefits of the administrator shall be
established by the Superintendent and paid by the qualifying school
district.
(9) The Superintendent or the administrator may employ, on a
short-term basis and at school district expense, any staff
necessary to assist the administrator, including, but not limited
to, a certified public accountant.
(10) The administrator may do all of the following:
(A) Implement substantial changes in the fiscal policies and
practices of the school district, including, if necessary,
the filing of a petition under Chapter 9 (commencing with Section
901) of Title 11 of the United States Code for the adjustment of
indebtedness.
(B) Revise the educational program of the school
district to reflect realistic income projections and pupil
performance relative to state standards.
(C) Encourage all members of the school community to accept a fair
share of the burden of the fiscal recovery of the school
district.
(D) Consult, for the purposes described in this subdivision, with
the governing board of the school district, the exclusive
representatives of the employees of the school district,
parents, and the community.
(E) Consult with, and seek recommendations from, the
Superintendent, county superintendent of schools, and the County
Office Fiscal Crisis and Management Assistance Team authorized
pursuant to subdivision (c) of Section 42127.8 for the purposes
described in this article.
(F) With the approval of the Superintendent, enter into agreements
on behalf of the school district and, subject to any
contractual obligation of the school district, change any
existing district rules, regulations, policies, or practices as
necessary for the effective implementation of the recovery plans
referred to in Sections 41327 and 41327.1.
(c) (1) For the period of time during which the Superintendent
exercises the authority described in subdivision (b), the governing
board of the qualifying school district shall serve as an advisory
body reporting to the state-appointed administrator, and has no
rights, duties, or powers, and is not entitled to any stipend,
benefits, or other compensation from the school district.
(2) Upon the appointment of an administrator pursuant to this
section, the district superintendent of schools is no longer an
employee of the school district.
(3) A determination of the severance compensation for the district
superintendent shall be made pursuant to subdivision (j).
(d) Notwithstanding Section 35031 or any other law, the
administrator, after according the affected employee reasonable
notice and the opportunity for a hearing, may terminate the
employment of any deputy, associate, assistant superintendent of
schools, or any other district level administrator who is employed by
a school district under a contract of employment signed or renewed
after January 1, 1992, if the employee fails to document, to the
satisfaction of the administrator, that before the date of the
acceptance of the apportionment he or she either advised the
governing board of the school district, or his or her
superior, that actions contemplated or taken by the governing board
of the school district could result in the fiscal
insolvency of the school district, or took other
appropriate action to avert that fiscal insolvency.
(e) The authority of the Superintendent, and the administrator,
under this section shall continue until all of the following occur:
(1) (A) After one complete fiscal year has elapsed following the
school district's acceptance of a loan as described in
subdivision (a), the administrator determines, and so notifies the
Superintendent and the county superintendent of schools, that future
compliance by the school district with the recovery plans approved
pursuant to paragraph (2) is probable.
(B) The Superintendent may return power to the governing board
of the school district for any area listed in subdivision
(a) of Section 41327.1 if performance under the recovery plan for
that area has been demonstrated to the satisfaction of the
Superintendent.
(2) The Superintendent has approved all of the recovery plans
referred to in subdivision (a) of Section 41327 and the County Office
Fiscal Crisis and Management Assistance Team completes the
improvement plans specified in Section 41327.1 and has completed a
minimum of two reports identifying the school district's
progress in implementing the improvement plans.
(3) The administrator certifies that all necessary collective
bargaining agreements have been negotiated and ratified, and that the
agreements are consistent with the terms of the recovery plans.
(4) The school district has completed all reports
required by the Superintendent and the administrator.
(5) The Superintendent determines that future compliance by the
school district with the recovery plans approved pursuant to
paragraph (2) is probable.
(f) When the conditions stated in subdivision (e) have been met,
and at least 60 days after the Superintendent has notified the
Legislature, the Department of Finance, the Controller, and the
county superintendent of schools that he or she expects the
conditions prescribed pursuant to this section to be met, the
governing board of the school district shall regain all of its legal
rights, duties, and powers, except for the powers held by the trustee
provided for pursuant to Article 2 (commencing with Section 41320).
The Superintendent shall appoint a trustee under Section 41320.1 to
monitor and review the operations of the school district
until the conditions of subdivision (b) of that section have been
met.
(g) Notwithstanding subdivision (f), if the school
district violates any provision of the recovery plans approved by the
Superintendent pursuant to this article within five years after the
trustee appointed pursuant to Section 41320.1 is removed or the
improvement plans specified in Section 41327.1 during the period of
the trustee's appointment, the Superintendent may reassume, either
directly or through an administrator appointed in accordance with
this section, all of the legal rights, duties, and powers of the
governing board of the school district. The Superintendent
shall return to the governing board of the school district all of
its legal rights, duties, and powers reassumed under this subdivision
when he or she determines that future compliance with the approved
recovery plans is probable, or after a period of one year, whichever
occurs later.
(h) Article 2 (commencing with Section 41320) shall apply except
as otherwise specified in this article.
(i) It is the intent of the Legislature that the legislative
budget subcommittees annually conduct a review of each qualifying
school district that includes an evaluation of the financial
condition of the school district, the impact of the
recovery plans upon the school district's educational
program, and the efforts made by the state-appointed administrator to
obtain input from the community and the governing board of the
school district.
(j) (1) The district superintendent is entitled to a due process
hearing for purposes of determining final compensation. The final
compensation of the district superintendent shall be between zero and
six times his or her monthly salary. The outcome of the due process
hearing shall be reported to the Superintendent and the public. The
information provided to the public shall explain the rationale for
the compensation.
(2) This subdivision applies only to a contract for employment
negotiated on or after June 21, 2004.
(k) (1) When the Superintendent assumes control over a school
district pursuant to subdivision (b), he or she shall, in
consultation with the County Office Fiscal Crisis and Management
Assistance Team, review the fiscal oversight of the school
district by the county superintendent of schools. The Superintendent
may consult with other fiscal experts, including other county
superintendents of schools and regional fiscal teams, in conducting
this review.
(2) Within three months of assuming control over a qualifying
school district, the Superintendent shall report his or her
findings to the Legislature and shall provide a copy of that report
to the Department of Finance. This report shall include findings as
to fiscal oversight actions that were or were not taken and may
include recommendations as to an appropriate legislative response to
improve fiscal oversight.
(3) If after performing the duties described in paragraphs (1) and
(2), the Superintendent determines that the county superintendent of
schools failed to carry out his or her responsibilities for fiscal
oversight as required by this code, the Superintendent may exercise
the authority of the county superintendent of schools who has
oversight responsibilities for a qualifying school district. If the
Superintendent finds, based on the report required in paragraph (2),
that the county superintendent of schools failed to appropriately
take into account particular types of indicators of financial
distress, or failed to take appropriate remedial actions in the
qualifying school district, the Superintendent shall
further investigate whether the county superintendent of schools
failed to take into account those indicators, or similarly failed to
take appropriate actions in other school districts with
negative or qualified certifications, and shall provide an additional
report on the fiscal oversight practices of the county
superintendent to the appropriate policy and fiscal committees of
each house of the Legislature and the Department of Finance.
SEC. 5. Section 41344 of the Education Code is amended to read:
41344. (a) If, as the result of an audit or review, a local
educational agency is required to repay an apportionment significant
audit exception or to pay a penalty arising from an audit exception,
the Superintendent and the Director of Finance, or their designees,
jointly shall establish a plan for repayment of state school funds
that the local educational agency received on the basis of average
daily attendance, or other data, that did not comply with statutory
or regulatory requirements that were conditions of the
apportionments, or for payment of a penalty arising from an audit
exception. A local educational agency shall request a plan within 90
days of receiving the final audit report or review, within 30 days of
withdrawing or receiving a final determination regarding an appeal
pursuant to subdivision (d), or, in the absence of an appeal pursuant
to subdivision (d), within 30 days of withdrawing or receiving a
determination of a summary review pursuant to subdivision (d) of
Section 41344.1. At the time the local educational agency is
notified, the Controller also shall be notified of the plan. The plan
shall be established in accordance with the following:
(1) The Controller shall withhold the disallowed or penalty amount
at the next principal apportionment or pursuant to paragraph (2),
unless subdivision (d) of this section or subdivision (d) of Section
41344.1 applies, in which case the disallowed or penalty amount shall
be withheld, at the next principal apportionment or pursuant to
paragraph (2) following the determination regarding the appeal or
summary appeal. In calculating a disallowed amount, the Controller
shall determine the total amount of overpayment received by the local
educational agency on the basis of average daily attendance, or
other data, reported by the local educational agency that did not
comply with one or more statutory or regulatory requirements that are
conditions of apportionment.
(2) If the Superintendent and the Director of Finance concur that
repayment of the full liability or payment of the penalty in the
current fiscal year would constitute a severe financial hardship for
the local educational agency, they may approve a plan of equal annual
payments over a period of up to eight years. The plan shall include
interest on each year's outstanding balance at the rate earned on the
state's Pooled Money Investment Account during that year. The
Superintendent and the Director of Finance jointly shall establish
this plan. The Controller shall withhold amounts pursuant to the
plan.
(3) If the Superintendent and the Director of Finance do not
jointly establish a plan, the Controller shall withhold the entire
disallowed amount determined pursuant to paragraph (1), or the
penalty amount, at the next principal apportionment.
(b) (1) For purposes of computing average daily attendance
pursuant to Section 42238.5, a local educational agency's prior
fiscal year average daily attendance shall be reduced by an amount
equal to any average daily attendance disallowed in the current year,
by an audit or review, as defined in subdivision (e).
(2) Commencing with the 1999-2000 fiscal year, this subdivision
may not result in a local educational agency repaying more than the
value of the average daily attendance disallowed in the audit
exception plus interest and other penalties or reductions in
apportionments as provided by existing law.
(c) Notwithstanding any other law, this section may not be waived
under any authority set forth in this code except as provided in this
section or Section 41344.1.
(d) Within 60 days of the date on which a local educational agency
receives a final audit report resulting from an audit or review of
all or any part of the operations of the local educational agency, or
within 30 days of receiving a determination of a summary review
pursuant to subdivision (d) of Section 41344.1, a local educational
agency may appeal a finding contained in the final report, pursuant
to Section 41344.1. Within 90 days of the date on which the appeal is
received by the panel, a hearing shall be held at which the local
educational agency may present evidence or arguments if the local
educational agency believes that the final report contains any
finding that was based on errors of fact or interpretation of law, or
if the local educational agency believes in good faith that it was
in substantial compliance with all legal requirements. A repayment
schedule may not commence until the panel reaches a determination
regarding the appeal. If the panel determines that the local
educational agency is correct in its assertion, in whole or in part,
the allowable portion of any apportionment payment that was withheld
shall be paid at the next principal apportionment.
(e) (1) As used in this section, "audit or review" means an audit
conducted by the Controller's office, an annual audit conducted by a
certified public accountant or a public accounting firm pursuant to
Section 41020, and an audit or review conducted by a governmental
agency that provided the local educational agency with an opportunity
to provide a written response.
(2) As used in this section, "local educational agency" includes a
charter school.
SEC. 6. Section 42127 of the Education Code is amended to read:
42127. (a) On or before July 1 of each year, the governing board
of each school district shall accomplish the following:
(1) Hold a public hearing on the budget to be adopted for the
subsequent fiscal year. The budget to be adopted shall be prepared in
accordance with Section 42126. The agenda for that hearing shall be
posted at least 72 hours before the public hearing and shall include
the location where the budget will be available for public
inspection.
(A) For the 2011-12 fiscal year, notwithstanding any of the
standards and criteria adopted by the state board pursuant to Section
33127, each school district budget shall project the same level of
revenue per unit of average daily attendance as it received in the
2010-11 fiscal year and shall maintain staffing and program levels
commensurate with that level.
(B) For the 2011-12 fiscal year, the school district shall not be
required to demonstrate that it is able to meet its financial
obligations for the two subsequent fiscal years.
(2) Adopt a budget. Not later than five days after that adoption
or by July 1, whichever occurs first, the governing board of the
school district shall file that budget with the county
superintendent of schools. That budget and supporting data shall be
maintained and made available for public review. If the governing
board of the school district does not want all or a
portion of the property tax requirement levied for the purpose of
making payments for the interest and redemption charges on
indebtedness as described in paragraph (1) or (2) of subdivision (b)
of Section 1 of Article XIII A of the California Constitution, the
budget shall include a statement of the amount or portion for which a
levy shall not be made.
(b) The county superintendent of schools may accept changes in any
statement included in the budget, pursuant to subdivision (a), of
the amount or portion for which a property tax levy shall not be
made. The county superintendent of schools or the county
auditor shall compute the actual amounts to be levied on the property
tax rolls of the school district for purposes that exceed
apportionments to the school district pursuant to Chapter
6 (commencing with Section 95) of Part 0.5 of Division 1 of the
Revenue and Taxation Code. Each school district shall provide all
data needed by the county superintendent of schools or the
county auditor to compute the amounts. On or before August 15, the
county superintendent of schools shall transmit the
amounts computed to the county auditor who shall compute the tax
rates necessary to produce the amounts. On or before September 1, the
county auditor shall submit the rate computed to the board of
supervisors for adoption.
(c) The county superintendent of schools shall do all of the
following:
(1) Examine the adopted budget to determine whether it complies
with the standards and criteria adopted by the state board pursuant
to Section 33127 for application to final local educational agency
budgets. The county superintendent of schools shall
identify, if necessary, any technical corrections
that are required to be made to bring the budget into compliance with
those standards and criteria.
(2) Determine whether the adopted budget will allow the
school district to meet its financial obligations during the
fiscal year and is consistent with a financial plan that will enable
the school district to satisfy its multiyear financial
commitments. In addition to his or her own analysis of the budget of
each school district, the county superintendent of schools shall
review and consider studies, reports, evaluations, or audits of the
school district that were commissioned by the school
district, the county superintendent of schools , the
Superintendent, and state control agencies and that contain evidence
that the school district is showing fiscal distress under the
standards and criteria adopted in Section 33127 or that contain a
finding by an external reviewer that more than three of the 15 most
common predictors of a school district needing intervention, as
determined by the County Office Fiscal Crisis and Management
Assistance Team, are present. The county superintendent of schools
shall either conditionally approve or disapprove a budget that does
not provide adequate assurance that the school district
will meet its current and future obligations and resolve any problems
identified in studies, reports, evaluations, or audits described in
this paragraph.
(d) On or before August 15, the county superintendent of schools
shall approve, conditionally approve, or disapprove the adopted
budget for each school district. If a school district does not submit
a budget to the county superintendent of schools, the county
superintendent of schools shall develop, at school district
expense, a budget for that school district by September 15 and
transmit that budget to the governing board of the school district.
The budget prepared by the county superintendent of schools shall be
deemed adopted, unless the county superintendent of schools approves
any modifications made by the governing board of the school district.
The approved budget shall be used as a guide for the school
district's priorities. The Superintendent shall review and
certify the budget approved by the county. If, pursuant to the review
conducted pursuant to subdivision (c), the county superintendent of
schools determines that the adopted budget for a school district does
not satisfy paragraph (1) or (2) of that subdivision, he or she
shall conditionally approve or disapprove the budget and, not later
than August 15, transmit to the governing board of the school
district, in writing, his or her recommendations regarding revision
of the budget and the reasons for those recommendations, including,
but not limited to, the amounts of any budget adjustments needed
before he or she can approve that budget. The county superintendent
of schools may assign a fiscal adviser to assist the school
district to develop a
budget in compliance with those revisions. In addition, the county
superintendent of schools may appoint a committee to examine and
comment on the superintendent's review and recommendations, subject
to the requirement that the committee report its findings to the
county superintendent of schools no later than August 20.
For the 2011-12 fiscal year, notwithstanding any of the standards and
criteria adopted by the state board pursuant to Section 33127, the
county superintendent of schools , as a condition on
approval of a school district budget, shall not require a school
district to project a lower level of revenue per unit of average
daily attendance than it received in the 2010-11 fiscal year nor
require the school district to demonstrate that it is able to meet
its financial obligations for the two subsequent fiscal years.
(e) On or before September 8, the governing board of the school
district shall revise the adopted budget to reflect changes in
projected income or expenditures subsequent to July 1, and to include
any response to the recommendations of the county superintendent of
schools, shall adopt the revised budget, and shall file the revised
budget with the county superintendent of schools. Before revising the
budget, the governing board of the school district shall
hold a public hearing regarding the proposed revisions, to be
conducted in accordance with Section 42103. In addition, if the
adopted budget is disapproved pursuant to subdivision (d), the
governing board of the school district and the
county superintendent of schools shall review the disapproval and the
recommendations of the county superintendent of schools regarding
revision of the budget at the public hearing. The revised budget and
supporting data shall be maintained and made available for public
review.
(1) For the 2011-12 fiscal year, notwithstanding any of the
standards and criteria adopted by the state board pursuant to Section
33127, each school district budget shall project the same level of
revenue per unit of average daily attendance as it received in the
2010-11 fiscal year and shall maintain staffing and program levels
commensurate with that level.
(2) For the 2011-12 fiscal year, the school district shall not be
required to demonstrate that it is able to meet its financial
obligations for the two subsequent fiscal years.
(f) On or before September 22, the county superintendent of
schools shall provide a list to the Superintendent identifying all
school districts for which budgets may be disapproved.
(g) The county superintendent of schools shall examine the revised
budget to determine whether it (1) complies with the standards and
criteria adopted by the state board pursuant to Section 33127 for
application to final local educational agency budgets, (2) allows the
school district to meet its financial obligations during
the fiscal year, (3) satisfies all conditions established by the
county superintendent of schools in the case of a conditionally
approved budget, and (4) is consistent with a financial plan that
will enable the school district to satisfy its multiyear
financial commitments, and, not later than October 8, shall approve
or disapprove the revised budget. If the county superintendent of
schools disapproves the budget, he or she shall call for the
formation of a budget review committee pursuant to Section 42127.1,
unless the governing board of the school district and the county
superintendent of schools agree to waive the requirement that a
budget review committee be formed and the department approves the
waiver after determining that a budget review committee is not
necessary. Upon the grant of a waiver, the county superintendent
of schools immediately has the authority and responsibility
provided in Section 42127.3. Upon approving a waiver of the budget
review committee, the department shall ensure that a balanced budget
is adopted for the school district by November 30. If no budget is
adopted by November 30, the Superintendent may adopt a budget for the
school district. The Superintendent shall report to the Legislature
and the Director of Finance by December 10 if any school
district, including a school district that has received a
waiver of the budget review committee process, does not have an
adopted budget by November 30. This report shall include the reasons
why a budget has not been adopted by the deadline, the steps being
taken to finalize budget adoption, the date the adopted budget is
anticipated, and whether the Superintendent has or will exercise his
or her authority to adopt a budget for the school district. For the
2011-12 fiscal year, notwithstanding any of the standards and
criteria adopted by the state board pursuant to Section 33127, the
county superintendent of schools , as a condition on
approval of a school district budget, shall not require a school
district to project a lower level of revenue per unit of average
daily attendance than it received in the 2010-11 fiscal year nor
require the school district to demonstrate that it is able to meet
its financial obligations for the two subsequent fiscal years.
(h) Not later than October 8, the county superintendent of schools
shall submit a report to the Superintendent identifying all school
districts for which budgets have been disapproved or budget review
committees waived. The report shall include a copy of the written
response transmitted to each of those school districts
pursuant to subdivision (d).
(i) Notwithstanding any other provision of this section, the
budget review for a school district shall be governed by paragraphs
(1), (2), and (3), rather than by subdivisions (e) and (g), if the
governing board of the school district so elects and notifies the
county superintendent of schools in writing of that
decision, not later than October 31 of the immediately preceding
calendar year. On or before July 1, the governing board of a school
district for which the budget review is governed by this subdivision,
rather than by subdivisions (e) and (g), shall conduct a public
hearing regarding its proposed budget in accordance with Section
42103.
(1) If the adopted budget of a school district is disapproved
pursuant to subdivision (d), on or before September 8, the governing
board of the school district, in conjunction with the county
superintendent of schools, shall review the superintendent's
recommendations at a regular meeting of the governing board of
the school district and respond to those
recommendations. The response shall include any revisions to the
adopted budget and other proposed actions to be taken, if any, as a
result of those recommendations.
(2) On or before September 22, the county superintendent of
schools shall provide a list to the Superintendent identifying all
school districts for which a budget may be tentatively disapproved.
(3) Not later than October 8, after receiving the response
required under paragraph (1), the county superintendent of schools
shall review that response and either approve or disapprove the
budget. If the county superintendent of schools disapproves the
budget, he or she shall call for the formation of a budget review
committee pursuant to Section 42127.1, unless the governing board of
the school district and the county superintendent of schools agree to
waive the requirement that a budget review committee be formed and
the department approves the waiver after determining that a budget
review committee is not necessary. Upon the grant of a waiver, the
county superintendent has the authority and responsibility provided
to a budget review committee in Section 42127.3. Upon approving a
waiver of the budget review committee, the department shall ensure
that a balanced budget is adopted for the school district by November
30. The Superintendent shall report to the Legislature and the
Director of Finance by December 10 if any school district,
including a school district that has received a waiver of
the budget review committee process, does not have an adopted budget
by November 30. This report shall include the reasons why a budget
has not been adopted by the deadline, the steps being taken to
finalize budget adoption, and the date the adopted budget is
anticipated. For the 2011-12 fiscal year, notwithstanding any of the
standards and criteria adopted by the state board pursuant to Section
33127, the county superintendent of schools , as a
condition on approval of a school district budget, shall not require
a school district to project a lower level of revenue per unit of
average daily attendance than it received in the 2010-11 fiscal year
nor require the school district to demonstrate that it is able to
meet its financial obligations for the two subsequent fiscal years.
(4) Not later than 45 days after the Governor signs the annual
Budget Act, the school district shall make available for public
review any revisions in revenues and expenditures that it has made to
its budget to reflect the funding made available by that Budget Act.
(j) Any school district for which the county board of education
serves as the governing board of the school district is
not subject to subdivisions (c) to (h), inclusive, but is governed
instead by the budget procedures set forth in Section 1622.
SEC. 7. Section 42131 of the Education Code is amended to read:
42131. (a) (1) Pursuant to the reports required by Section 42130,
the governing board of each school district shall certify, in
writing, within 45 days after the close of the period being reported,
whether the school district is able to meet its financial
obligations for the remainder of the fiscal year and, based on
current forecasts, for the subsequent fiscal year. These
certifications shall be based upon the governing board's
board of the school district's assessment, on
the basis of standards and criteria for fiscal stability adopted by
the state board pursuant to Section 33127, of the school
district budget, as revised to reflect current information regarding
the adopted State Budget, school district property tax
revenues pursuant to Sections 95 to 100, inclusive, of the Revenue
and Taxation Code, and ending balances for the preceding fiscal year
as reported pursuant to Section 42100. The certifications shall be
classified as positive, qualified, or negative, as prescribed by the
Superintendent for purposes of determining subsequent actions by the
Superintendent, the Controller, or the county superintendent of
schools, pursuant to subdivisions (b) and (c). These certifications
shall be based upon the financial and budgetary reports required by
Section 42130 but may include additional financial information known
by the governing board of the school district to exist at
the time of each certification. For purposes of this subdivision, a
negative certification shall be assigned to any school district that,
based upon current projections, will be unable to meet its financial
obligations for the remainder of the fiscal year or the subsequent
fiscal year. A qualified certification shall be assigned to any
school district that, based upon current projections, may not meet
its financial obligations for the current fiscal year or two
subsequent fiscal years. A positive certification shall be assigned
to any school district that, based upon current projections, will
meet its financial obligations for the current fiscal year and
subsequent two fiscal years.
(2) (A) A copy of each certification and a copy of the report
submitted to the governing board of the school district
pursuant to Section 42130 shall be filed with the county
superintendent of schools. If a county office of education receives a
positive certification when it determines a negative or qualified
certification should have been filed, or receives a qualified
certification when it determines a negative certification should have
been filed, the county superintendent of schools shall change the
certification to negative or qualified, as appropriate, and, no later
than 75 days after the close of the period being reported, shall
provide notice of that action to the governing board of the school
district and to the Superintendent. No later than five days after a
school district receives notice from the county superintendent of
schools of a change in the school district's certification
to negative or qualified, the governing board of the school
district may submit an appeal to the Superintendent regarding
the validity of that change, in accordance with the criteria applied
to those designations pursuant to this subdivision. No later than 10
days after receiving that appeal, the Superintendent shall determine
the certification to be assigned to the school district
and shall notify the governing board of the school
district and the county superintendent of schools of that
determination.
(B) Copies of any certification in which the governing board
of the school district is unable to certify unqualifiedly that
these financial obligations will be met and a copy of the report
submitted to the governing board of the school district
pursuant to Section 42130 shall be sent by the county office of
education to the Controller and the Superintendent at the time of the
certification, together with a completed transmittal form provided
by the Superintendent. Within 75 days after the close of the
reporting period on all school district certifications that are
classified as qualified or negative pursuant to this section, the
appropriate county superintendent of schools shall submit to the
Superintendent and the Controller his or her comments on those
certifications and report any action proposed or taken pursuant to
subdivision (b).
(3) All reports and certifications required under this subdivision
shall be in a format or on forms prescribed by the Superintendent
and shall be based on standards and criteria for fiscal stability
adopted by the state board pursuant to Section 33127.
(4) This subdivision does not preclude the submission of
additional budgetary or financial reports by the county
superintendent of schools to the governing board of the school
district, or to the Superintendent.
(b) As to any school district having a negative or qualified
certification, the county superintendent of schools shall exercise
his or her authority, as necessary, pursuant to Section 42127.6.
(c) Within 75 days after the close of each reporting period, each
county superintendent of schools shall report to the Controller and
the Superintendent as to whether the governing board of each of the
school districts under his or her jurisdiction has submitted the
certification required by subdivision (a). That report shall account
for all school districts under the jurisdiction of the
county office of education and indicate the type of certification
filed by each school district.
(d) The Controller's office may conduct an audit or review of the
fiscal condition of any school district having a negative
or qualified certification.
(e) The governing board of each school district filing a qualified
or negative certification for the second report required under
Section 42130, or classified as qualified or negative by the county
superintendent of schools, shall provide to the county superintendent
of schools, the Controller, and the Superintendent no later than
June 1, financial statement projections of the school
district's fund and cash balances through June 30 for the period
ending April 30. The governing boards of all other school districts
are encouraged to develop a similar financial statement for use in
developing the beginning fund balances of the school
district for the ensuing fiscal year.
(f) Any school district for which the county board of education
serves as the governing board of the school district is
not subject to subdivisions (a) to (f), inclusive, but is governed
instead by the interim report, monitoring, and review procedures set
forth in subdivision ( l ) of Section 1240 and in Article
2 (commencing with Section 1620) of Chapter 5 of Part 2.
SEC. 8. Section 42238.12 of the Education Code is amended to read:
42238.12. (a) For the 1995-96 fiscal year and each fiscal year
thereafter, the county superintendent of schools shall adjust the
total revenue limit for each school district in the jurisdiction of
the county superintendent of schools 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 school district, as follows:
(1) (A) Determine the amount of employer contributions that would
have been made in the current fiscal year if the applicable Public
Employees' Retirement System employer contribution rate in effect
immediately before the enactment of Chapter 330 of the Statutes of
1982 were in effect during the current fiscal year.
(B) For purposes of this calculation, no school district shall
have a contribution rate higher than 13.020 percent.
(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) for a school
district is greater than the amount determined in paragraph (2), the
total revenue limit computed for that school district shall be
decreased by the amount of the difference between those paragraphs;
or, if the amount determined in paragraph (1) for a school district
is less than the amount determined in paragraph (2), the total
revenue limit for that school district shall be increased by the
amount of the difference between those paragraphs.
(4) For the purpose of this section, employer contributions to the
Public Employees' Retirement System for any 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 Section
41540 that are established in order to satisfy court-ordered
desegregation requirements.
(C) 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 section by the Superintendent
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 educational agency or pursuant to a blanket
waiver by the Superintendent and the Director of Finance, before the
2002-03 fiscal year, may be excluded pursuant to this paragraph.
(5) For accounting purposes, any reduction to school
district revenue limits made by this provision may be reflected as an
expenditure from appropriate sources of revenue as directed by the
Superintendent.
(6) The amount of the increase or decrease to the revenue limits
of school districts computed pursuant to paragraph (3) for the
1995-96 to 2002-03 fiscal years, inclusive, may not be adjusted by
the deficit factor applied to the revenue limit of each school
district pursuant to Section 42238.145.
(7) For the 2003-04 fiscal year and any fiscal year thereafter,
the revenue limit reduction specified in Section 42238.146 may not be
applied to the amount of the increase or decrease to the revenue
limits of school districts computed pursuant to paragraph (3).
(b) The calculations set forth in paragraphs (1) to (3),
inclusive, of subdivision (a) exclude employer contributions for
employees of charter schools funded pursuant to Article 2 (commencing
with Section 47633) of Chapter 6 of Part 26.8.
(c) Funding appropriated through the Budget Act of 2001 or
legislation amending the Budget Act of 2001 for the purpose of
limiting the reductions to revenue limits calculated pursuant to this
section and to Section 2558 for the 2001-02 fiscal year shall be
allocated on a one-time basis in the following manner:
(1) Each school district and county office of education subject to
a reduced apportionment pursuant to this section or to Section 2558
shall receive a share of the amount described in paragraph (3) that
is proportionate to the reduction in their apportionment pursuant to
this section or to Section 2558 for the 2001-02 fiscal year as
compared to the statewide total reduction that would occur absent
this paragraph.
(2) For the 2001-02 fiscal year, instead of the alternative
calculation authorized by paragraph (1), San Francisco Unified School
District shall receive an amount equal to five dollars and 57 cents
($5.57) multiplied by its second principal apportionment average
daily attendance for the 2001-02 fiscal year.
(3) Notwithstanding any other law, total allocations pursuant to
this subdivision may not exceed thirty-five million dollars
($35,000,000).
(d) Thirty-five million dollars ($35,000,000) is hereby
appropriated from the General Fund for transfer to Section A of the
State School Fund for local assistance for the purpose of limiting
the reductions to revenue limits calculated pursuant to this section
and to Section 2558 for the 2003-04 fiscal year. Funding from this
appropriation shall be allocated in the following manner:
(1) Each school district and county office of education subject to
a reduced apportionment pursuant to this section or to Section 2558
shall receive a share of the amount appropriated in this subdivision
that is proportionate to the reduction in their apportionment
pursuant to this section or to Section 2558 for the 2003-04 fiscal
year as compared to the statewide total reduction that would occur
absent this paragraph.
(2) For the 2003-04 fiscal year, instead of the alternative
calculation authorized by paragraph (1), the San Francisco Unified
School District shall receive an amount equal to five dollars and 57
cents ($5.57) multiplied by its second principal apportionment
average daily attendance for the 2003-04 fiscal year.
(3) Notwithstanding any other law, total allocations pursuant to
this subdivision may not exceed thirty-five million dollars
($35,000,000) for the 2003-04 fiscal year.
(4) For the purposes of making the computations required by
Section 8 of Article XVI of the California Constitution, the
appropriation made by this section shall be deemed to be "General
Fund revenues appropriated for school districts," as defined in
subdivision (c) of Section 41202, for the 2003-04 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 2003-04 fiscal year.
(e) For the 2004-05 fiscal year, and each fiscal year thereafter,
apportionment reductions pursuant to this section and to Section 2558
shall be limited as follows:
(1) Each school district and county office of education subject to
a reduced apportionment pursuant to this section or to Section 2558
shall receive a share of the amount described in paragraph (3) that
is proportionate to the reduction in their apportionment pursuant to
this section or to Section 2558 for the 2004-05 fiscal year as
compared to the statewide total reduction as would occur absent this
paragraph.
(2) Instead of the alternative calculation authorized by paragraph
(1), the San Francisco Unified School District shall receive funding
equal to the amount of funding per unit of average daily attendance
specified in paragraph (2) of subdivision (c) as increased annually
by cost-of-living adjustments specified in Section 42238.1,
multiplied by its second principal apportionment average daily
attendance for that fiscal year.
(3) Notwithstanding any other law, total limitations pursuant to
this subdivision may not annually exceed thirty-five million dollars
($35,000,000) as annually increased by the cost-of-living adjustments
specified in Section 42238.1, multiplied by the annual statewide
percentage growth in total average daily attendance, measured at the
second principal apportionment.
SEC. 9. Section 48070.6 of the Education Code is amended to read:
48070.6. (a) On or before August 1, 2011, and annually
thereafter, utilizing data produced by the California Longitudinal
Pupil Achievement Data System pursuant to Section 60900 and other
available data, the Superintendent shall submit to the Governor, the
Legislature, and the state board a report that shall be called the
Annual Report on Dropouts in California. The report shall include,
but not be limited to, all of the following:
(1) One-year dropout rates for each of grades 7 to 12, inclusive.
(2) Four-year cohort dropout rates for grades 9 to 12, inclusive.
(3) Two- or three-year cohort dropout rates, as appropriate, for
middle schools.
(4) Grade 9 to grade 10 promotion rates.
(5) Percentage of high school pupils for each of grades 9 to 12,
inclusive, who are on track to earn sufficient credits to graduate.
(6) The average number of nonpromotional school moves that pupils
make between grades 6 to 12, inclusive.
(7) "Full-year" dropout rates for alternative schools, including
dropout recovery high schools, calculated using a methodology
developed by the Superintendent to appropriately reflect dropout
rates in each type of alternative school.
(8) An explanation of the methodology or methodologies used to
calculate "full-year" dropout rates for alternative schools pursuant
to paragraph (7).
(9) Passage rates on the high school exit examination adopted
pursuant to subdivision (a) of Section 60850.
(10) Other available data relating to dropout or graduation rates
or pupil progress toward high school graduation.
(b) When cohort dropout rates can be calculated accurately using
longitudinal data, the rates described in paragraph (3) of
subdivision (a) shall be replaced by dropout rates for cohorts of
pupils entering middle school.
(c) When data is available, the report shall also include all of
the following:
(1) Rates at which pupils graduate in four, five, and six years,
pursuant to subparagraph (A) of paragraph (4) of subdivision (a) of
Section 52052.
(2) Percentage of high school graduates and dropouts who
completed courses that are certified by the University of California
as meeting admission requirement criteria for the University of
California and California State University systems.
(3) Percentage of high school graduates and dropouts who completed
two or more classes in career technical education.
(4) Percentage of high school graduates and dropouts who completed
both course sequences described in paragraphs (2) and (3).
(5) Behavioral data by school and district, including suspensions
and expulsions.
(6) Truancy rates.
(7) GED earning rates.
(8) Chronic absentee rates, as defined in Section 60901.
(d) If possible, the data listed in subdivisions (a) and (b) shall
be presented in the report, organized as follows:
(1) By state.
(2) By county.
(3) By school district, both including and excluding
charter schools.
(4) By school.
(e) The report shall include data from alternative middle and high
schools, including continuation high schools, community day schools,
juvenile court schools, special schools, opportunity schools, and
schools attended by wards of the Department of Corrections and
Rehabilitation, Division of Juvenile Justice.
(f) The report may include relevant data on school climate and
pupil engagement from the California Healthy Kids Survey.
(g) If possible, the data listed in subdivisions (a) and (b) shall
be presented for the following subgroups, if the subgroup consists
of at least 50 pupils, and the subgroup constitutes at least 15
percent of the total population of pupils at a school:
(1) Grade level.
(2) Ethnicity.
(3) Gender.
(4) Low socioeconomic status.
(5) English learners.
(6) Special education status.
(h) The first Annual Report on Dropouts in California shall
include data from the most recent year. Subsequent annual reports
shall include data from the most recent year and, at a minimum, the
two prior years, so that comparisons can be made easily.
(i) The Superintendent or his or her designee shall make an oral
presentation of the contents of the report to the state board at a
regularly scheduled meeting of the state board.
(j) The Superintendent shall make the contents of the report
available on the department's Internet Web site in a format that is
easy for the public to access and understand.
(k) If inclusion of school-level data would render the written
report unwieldy, the data may be omitted from the written report and
posted on the department's Internet Web site.
(l) It is the intent of the Legislature that the report prepared
by the Superintendent be usable by schools, school
districts, policymakers, researchers, parents, and the public, for
purposes of identifying and understanding trends, causal relations,
early warning indicators, and potential points of intervention to
address the high rate of dropouts in California.
(m) For purposes of this section, dropouts shall be defined using
the exit/withdrawal codes developed by the department.
(n) For purposes of this section, "dropout recovery high school"
has the same meaning as defined in subparagraph (D) of paragraph (4)
of subdivision (a) of Section 52052.
SEC. 10. Section 48904 of the Education Code is amended to read:
48904. (a) (1) Notwithstanding Section 1714.1 of the Civil Code,
the parent or guardian of any minor whose willful misconduct results
in injury or death to any pupil or any person employed by, or
performing volunteer services for, a school district or private
school or who willfully cuts, defaces, or otherwise injures in any
way any property, real or personal, belonging to a school district or
private school, or personal property of any school employee, shall
be liable for all damages so caused by the minor. The liability of
the parent or guardian shall not exceed ten thousand dollars
($10,000), adjusted annually for inflation. The parent or guardian
shall be liable also for the amount of any reward not exceeding ten
thousand dollars ($10,000), adjusted annually for inflation, paid
pursuant to Section 53069.5 of the Government Code. The parent or
guardian of a minor shall be liable to a school district or private
school for all property belonging to the school district or private
school loaned to the minor and not returned upon demand of an
employee of the school district or private school
authorized to make the demand.
(2) The Superintendent annually shall compute an adjustment of the
liability limits prescribed by this subdivision to reflect the
percentage change in the average annual value of the Implicit Price
Deflator for State and Local Government Purchases of Goods and
Services for the United States, as published by the United States
Department of Commerce for the 12-month period ending in the prior
fiscal year. The annual adjustment shall be rounded to the nearest
one hundred dollars ($100).
(b) (1) Any school district or private school whose real or
personal property has been willfully cut, defaced, or otherwise
injured, or whose property is loaned to a pupil and willfully not
returned upon demand of an employee of the school district
or private school authorized to make the demand may, after affording
the pupil his or her due process rights, withhold the grades,
diploma, and transcripts of the pupil responsible for the damage
until the pupil or the pupil's parent or guardian has paid for the
damages thereto, as provided in subdivision (a).
(2) The school district or private school shall notify the parent
or guardian of the pupil in writing of the pupil's alleged misconduct
before withholding the pupil's grades, diploma, or transcripts
pursuant to this subdivision. When the minor and parent are unable to
pay for the damages, or to return the property, the school district
or private school shall provide a program of voluntary work for the
minor in lieu of the payment of monetary damages. Upon completion of
the voluntary work, the grades, diploma, and transcripts of the pupil
shall be released.
(3) The governing board of each school district or governing body
of each private school shall establish rules and regulations
governing procedures for the implementation of this subdivision. The
procedures shall conform to, but are not necessarily limited to,
those procedures established in this code for the expulsion of
pupils.
SEC. 11. Section 49550.3 of the Education Code is amended to read:
49550.3. (a) Because a hungry child cannot learn, the Legislature
intends, as a state nutrition and health policy, that the School
Breakfast Program be made available in all schools where it is needed
to provide adequate nutrition for children in attendance.
(b) The department, in cooperation with school districts and
county superintendents of schools, shall provide information and
limited financial assistance to encourage program startup and
expansion into all qualified schools, as follows:
(1) Provide information to school districts and county
superintendents of schools concerning the benefits and availability
of the School Breakfast Program.
(2) Each year, provide additional information and financial
assistance to schools in the state, in which 20 percent or more of
the school enrollment consists of children who have applied and
qualify for free and reduced-price meals.
(c) The department shall award grants of up to fifteen thousand
dollars ($15,000) per schoolsite on a competitive basis to school
districts, county superintendents of schools, or entities approved by
the department, limited to an amount subject to budget
appropriations each fiscal year, for nonrecurring expenses incurred
in initiating or expanding a school breakfast program under this
section or a summer food service program pursuant to Article 10.7
(commencing with Section 49547).
(d) Grants awarded under this section shall be used for
nonrecurring costs of initiating or expanding a school breakfast
program or a summer food service program, including the acquisition
of equipment, training of staff in new capacities, outreach efforts
to publicize new or expanded school breakfast programs or summer food
service programs, minor alterations to accommodate new equipment,
computer point-of-service systems for food service, and the purchase
of vehicles for transporting food to schools. Funds may not be used
for salaries and benefits of staff, food, computers, except computer
point-of-service systems, or capital outlay.
(e) In making grant awards under this section in any fiscal year,
the department shall give a preference to school districts and county
superintendents of schools that do all of the following:
(1) Submit to the department a plan to start or expand school
breakfast programs or summer food service programs in the school
district or the county, including a description of the
following:
(A) The manner in which the school district or county
superintendent of schools will provide technical
assistance and funding to schoolsites to expand those programs.
(B) Detailed information on the nonrecurring expenses needed to
initiate a program.
(C) Public or private resources that have been assembled to carry
out expansion of these programs during that year.
(2) Agree to operate the breakfast program or the summer food
service program for a period of not less than three years.
(3) Assure that the expenditure of funds from state and local
resources for the maintenance of the breakfast program or the summer
food service program shall not be diminished as a result of grant
awards received under this section.
SEC. 12. Section 51765 of the Education Code is amended to read:
51765. (a) The governing board of a school district that
establishes and supervises a work experience education program in
which pupils with intellectual disabilities are employed in part-time
jobs may use funds derived from any source, to the extent
permissible by appropriate law or regulation, to pay the wages of
pupils so employed.
(b) The Legislature hereby finds and declares that the authority
granted by this section is necessary to ensure that the work
experience education program will continue to provide maximum
educational benefit to pupils, particularly pupils with intellectual
disabilities, and that the program is deemed to serve a public
purpose.
SEC. 13. Section 60605.86 of the Education Code is amended to
read:
60605.86. (a) The department shall recommend, and the state board
shall approve, evaluation criteria to guide the development and
review of supplemental instructional materials.
(b) Notwithstanding any other law, and on a one-time basis, the
department shall develop a list, on or before July 1, 2012, of
supplemental instructional materials for use in kindergarten and
grades 1 to 8, inclusive, that are aligned with the California common
core academic content standards for language arts and for use in
kindergarten and grades 1 to 7, inclusive, that are aligned with the
California common core academic content standards for mathematics.
The supplemental instructional materials shall provide a bridge
between the California common core academic content standards and the
standards-aligned instructional materials currently being used by
local educational agencies.
(c) (1) The department shall recommend, and the state board shall
approve, content review experts to review, in an open and transparent
process, supplemental instructional materials submitted for approval
in the subject areas of mathematics and English language arts.
(2) The majority of content review experts approved pursuant to
paragraph (1) shall be teachers who are credentialed in the subject
area they are reviewing. The content review experts shall also
include appropriate persons from postsecondary institutions and
school and school district curriculum administrators, and other
persons who are knowledgeable in the appropriate subject area.
(3) The content review experts shall serve without compensation.
(d) (1) On or before September 30, 2012, the state board shall do
the following:
(A) Approve all, or a portion, of the list of supplemental
instructional materials proposed by the department, taking into
consideration the review of the content review experts and any other
relevant information, as appropriate.
(B) Reject all, or a portion, of the list of supplemental
instructional materials proposed by the department, taking into
consideration the review of the content review experts and any other
relevant information, as appropriate.
(2) The state board may add an item to the list of supplemental
instructional materials proposed by the department.
(3) If the state board rejects all, or a portion, of the list of
supplemental instructional materials proposed by the department, or
adds an item to the list, the state board, in a public meeting held
pursuant to the Bagley-Keene Open Meeting Act (Article 9 (commencing
with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2
of the Government Code), shall provide written reasons for the
removal or addition of an item on the list. The state board shall not
approve a supplemental instructional material it adds to the list at
the same time it provides its written reason for adding the
material; instead, the state board shall approve the added material
at a subsequent public meeting.
(e) (1) The governing boards of school districts and county
offices of education may approve supplemental instructional materials
other than those approved by the state board pursuant to subdivision
(d) if the governing board of the school district or county office
of education determines that other supplemental instructional
materials are aligned with the California common core academic
content standards and meet the needs of the pupils of the school
district or county office of education. The governing board of
a school district and a county office of education may only approve
supplemental instructional materials that comply with the evaluation
criteria approved pursuant to subdivision (a) and the requirements of
Section 60226, subdivision (h), and Article 4 (commencing with
Section 60060).
(2) (A) A supplemental instructional material approved by a
governing board of a school district or a county office of education
pursuant to this subdivision that is in the subject area of
mathematics or English language arts shall be reviewed by content
review experts chosen by the governing board of the school district
or county office of education.
(B) The majority of the content review experts chosen pursuant to
subparagraph (A) shall be teachers who are credentialed in the
subject area they are reviewing. The content review experts shall
include appropriate persons from postsecondary institutions and
school and school district or county office of education curriculum
administrators, and other persons who are knowledgeable in the
appropriate subject area.
(C) The content review experts shall serve without compensation.
(f) Publishers choosing to submit supplemental instructional
materials for approval by the state board shall submit standards
maps.
(g) (1) Before approving supplemental instructional materials
pursuant to this section, the state board shall review those
instructional materials for academic content, social content, and
instructional support to teachers and pupils. Supplemental
instructional materials approved by the state board pursuant to this
section shall meet required program criteria for grade-level
programs, intervention programs, and English learners and shall
include materials for use by teachers.
(2) Before approving supplemental instructional materials pursuant
to this section, the governing board of a school district or a
county office of education shall review those instructional materials
for academic content and instructional support to teachers and
pupils. Supplemental instructional materials approved by the
governing board of a school district or a county office of education
pursuant to this section shall meet required program criteria for
grade-level programs, intervention programs, and English learners,
and shall include materials for use by teachers.
(h) Supplemental instructional materials approved pursuant to this
section shall comply with the social content review requirements
that would be imposed by Assembly Bill 339 of the 2011-12 Regular
Session if that bill becomes operative; otherwise, the governing
board of a school district or a county office of education shall
review supplemental instructional materials for social content in
compliance with Article 3 (commencing with Section 60040).
(i) The department shall maintain on its Internet Web site the
list of supplemental instructional materials approved by the state
board pursuant to subdivision (d).
(j) The department shall use federal carryover funds received
pursuant to Title I of the federal No Child Left Behind Act of 2001
(20 U.S.C. Sec. 6301 et seq.) to implement this section.
(k) This section shall become inoperative on July 1, 2014, and, as
of July 1, 2015, is repealed, unless a later enacted statute, that
becomes operative on or before July 1, 2015, deletes or extends the
dates on which it becomes inoperative and is repealed.
SEC. 14. Section 8880.5 of the Government Code is amended to read:
8880.5. Allocations for education:
The California State Lottery Education Fund is created within the
State Treasury, and is continuously appropriated for carrying out the
purposes of this chapter. The Controller shall draw warrants on this
fund and distribute them quarterly in the following manner, provided
that the payments specified in subdivisions (a) to (g), inclusive,
shall be equal per capita amounts.
(a) (1) Payments shall be made directly to public school
districts, including county superintendents of schools, serving
kindergarten and grades 1 to 12, inclusive, or any part thereof, on
the basis of an equal amount for each unit of average daily
attendance, as defined by law and adjusted pursuant to subdivision (
l ).
(2) For purposes of this paragraph, in each of the 2008-09,
2009-10, 2010-11, 2011-12, 2012-13, 2013-14, and 2014-15 fiscal
years, the number of units of average daily attendance in each of
those fiscal years for programs for public school districts,
including county superintendents of schools, serving kindergarten and
grades 1 to 12, inclusive, shall include the same amount of average
daily attendance for classes for adults and regional occupational
centers and programs used in the calculation made pursuant to this
subdivision for the 2007-08 fiscal year.
(b) Payments shall also be made directly to public school
districts serving community colleges, on the basis of an equal amount
for each unit of average daily attendance, as defined by law.
(c) Payments shall also be made directly to the Board of Trustees
of the California State University on the basis of an amount for each
unit of equivalent full-time enrollment. Funds received by the
trustees shall be deposited in and expended from the California State
University Lottery Education Fund, which is hereby created or, at
the discretion of the trustees, deposited in local trust accounts in
accordance with subdivision (j) of Section 89721 of the Education
Code.
(d) Payments shall also be made directly to the Regents of the
University of California on the basis of an amount for each unit of
equivalent full-time enrollment.
(e) Payments shall also be made directly to the Board of Directors
of the Hastings College of the Law on the basis of an amount for
each unit of equivalent full-time enrollment.
(f) Payments shall also be made directly to the Department of the
Youth Authority for educational programs serving kindergarten and
grades 1 to 12, inclusive, or any part thereof, on the basis of an
equal amount for each unit of average daily attendance, as defined by
law.
(g) Payments shall also be made directly to the two California
Schools for the Deaf, the California School for the Blind, and the
three Diagnostic Schools for Neurologically Handicapped Children, on
the basis of an amount for each unit of equivalent full-time
enrollment.
(h) Payments shall also be made directly to the State Department
of Developmental Services and the State Department of Mental Health
for clients with developmental or mental disabilities who are
enrolled in state hospital education programs, including
developmental centers, on the basis of an equal amount for each unit
of average daily attendance, as defined by law.
(i) No Budget Act or other statutory provision shall direct that
payments for public education made pursuant to this chapter be used
for purposes and programs (including workload adjustments and
maintenance of the level of service) authorized by Chapters 498, 565,
and 1302 of the Statutes of 1983, Chapter 97 or 258 of the Statutes
of 1984, or Chapter 1 of the Statutes of the 1983-84 Second
Extraordinary Session.
(j) School districts and other agencies receiving funds
distributed pursuant to this chapter may at their option utilize
funds allocated by this chapter to provide additional funds for those
purposes and programs prescribed by subdivision (i) for the purpose
of enrichment or expansion.
(k) As a condition of receiving any moneys pursuant to subdivision
(a) or (b), each school district and county
superintendent of schools shall establish a separate account for the
receipt and expenditure of those moneys, which account shall be
clearly identified as a lottery education account.
( l ) Commencing with the 1998-99 fiscal year, and each
year thereafter, for purposes of subdivision (a), average daily
attendance shall be increased by the statewide average rate of
excused absences for the 1996-97 fiscal year as determined pursuant
to the provisions of Chapter 855 of the Statutes of 1997. The
statewide average excused absence rate, and the corresponding
adjustment factor required for the operation of this subdivision,
shall be certified to the State Controller by the Superintendent of
Public Instruction.
(m) It is the intent of this chapter that all funds allocated from
the California State Lottery Education Fund shall be used
exclusively for the education of pupils and students and no funds
shall be spent for acquisition of real property, construction of
facilities, financing of research, or any other noninstructional
purpose.
SEC. 15. Section 75.70 of the Revenue and Taxation Code is amended
to read:
75.70. (a) Notwithstanding any other law, for the 1983-84 fiscal
year, each county auditor shall allocate to all elementary, high
school, and unified school districts within the county in proportion
to each school district's average daily attendance, as
certified by the Superintendent of Public Instruction for purposes of
the advance apportionment of state aid in the then current fiscal
year, without respect to the allocation of property tax revenues
pursuant to Chapter 6 (commencing with Section 95) of Part 0.5, and
without respect to allocation and payment of funds as provided for in
subdivision (b) of Section 33670 of the Health and Safety Code, an
amount equal to the additional revenues generated by the rate levied
pursuant to subdivision (a) of Section 1 of Article XIII A of the
California Constitution applied to the increased assessments for the
current roll under this chapter. Additional revenues generated by a
rate or rates levied in excess of the limitation prescribed by
subdivision (a) of Section 1 of Article XIII A of the California
Constitution shall be allocated to the fund for which the tax rate or
rates were levied.
(b) For the 1984-85 fiscal year, the county auditor shall, without
respect to the allocation of property tax revenues pursuant to
Chapter 6 (commencing with Section 95) of Part 0.5, do all of the
following:
(1) Make the allocation and payment of funds as provided in
Section 33670 of the Health and Safety Code.
(2) Allocate to the county the amount determined pursuant to
Section 75.60.
(3) Allocate to the county an amount equal to the total amount of
additional revenues generated by the rate levied pursuant to
subdivision (a) of Section 1 of Article XIII A of the California
Constitution applied to the increased assessments under this chapter,
less the amount determined pursuant to paragraphs (1) and (2), the
remainder multiplied by the county's property tax apportionment
factor determined pursuant to Section 97.5.
(4) Allocate to each community college district and county
superintendent of schools within the county an amount equal to the
total amount of additional revenues generated by the rate levied
pursuant to subdivision (a) of Section 1 of Article XIII A of the
California Constitution applied to the increased assessments under
this chapter, less the amount determined pursuant to paragraphs (1)
and (2), the remainder multiplied by each county superintendent of
schools' and community college district's property tax apportionment
factor determined pursuant to Section 97.5.
(5) Allocate to each city within the county an amount equal to the
total amount of additional revenue generated by the rate levied
pursuant to subdivision (a) of Section 1 of Article XIII A of the
California Constitution applied to the increased assessments under
this chapter, less the amount determined pursuant to paragraphs (1)
and (2), the remainder multiplied by each city's property tax
apportionment factor determined pursuant to Section 97.5.
(6) Allocate to each special district within the county an amount
equal to the total amount of additional revenues generated by the
rate levied pursuant to subdivision (a) of Section 1 of Article XIII
A of the California Constitution applied to the increased assessments
under this chapter, less the amount determined pursuant to
paragraphs (1) and (2), the remainder multiplied by each special
district's property tax apportionment factor determined pursuant to
Section 97.5. The amount allocated to each special district which is
governed by the board of supervisors of a county or whose governing
board is the same as the board of supervisors of a county, shall be
subject to Section 98.6.
(7) Allocate the remaining revenues generated by the rate levied
pursuant to subdivision (a) of Section 1 of Article XIII A of the
California Constitution applied to the increased assessments under
this chapter to all elementary, high school, and unified school
districts within the county in proportion to each school
district's average daily attendance, as certified by the
Superintendent of Public Instruction for purposes of the advance
apportionment of state aid in the then current fiscal year.
(8)
Allocate additional revenues generated by a rate levied in excess of
the limitation prescribed by subdivision (a) of Section 1 of Article
XIII A of the California Constitution to the fund or funds for which
the tax rate or rates were levied.
These allocations shall be made on a timely basis but no later
than 30 calendar days after the close of the preceding monthly or
four-weekly accounting period.
(c) For the 1985-86 fiscal year, and each fiscal year thereafter,
the county auditor shall, without respect to the allocation of
property tax revenues pursuant to Chapter 6 (commencing with Section
95) of Part 0.5, do all of the following:
(1) Make the allocation and payment of funds as provided in
Section 33670 of the Health and Safety Code.
(2) Allocate and pay to the county an amount equal to the total
amount of additional revenues generated by the rate levied pursuant
to subdivision (a) of Section 1 of Article XIII A of the California
Constitution applied to the increased assessments under this chapter,
less the amount determined pursuant to paragraph (1), the remainder
multiplied by the county's property tax apportionment factor
determined pursuant to Section 97.5.
(3) Allocate and pay to each county superintendent of schools and
community college district within the county an amount equal to the
total amount of additional revenues generated by the rate levied
pursuant to subdivision (a) of Section 1 of Article XIII A of the
California Constitution applied to the increased assessments under
this chapter, less the amount determined pursuant to paragraph (1),
the remainder multiplied by each county superintendent of schools'
and community college district's property tax apportionment factor
determined pursuant to Section 97.5.
(4) Allocate and pay to each city within the county an amount
equal to the total amount of additional revenues generated by the
rate levied pursuant to subdivision (a) of Section 1 of Article XIII
A of the California Constitution applied to the increased assessments
under this chapter, less the amount determined pursuant to paragraph
(1), the remainder multiplied by each city's property tax
apportionment factor determined pursuant to Section 97.5.
(5) Allocate and pay to each special district within the county an
amount equal to the total amount of additional revenues generated by
the rate levied pursuant to subdivision (a) of Section 1 of Article
XIII A of the California Constitution applied to the increased
assessments under this chapter, less the amount determined pursuant
to paragraph (1), the remainder multiplied by each special district's
property tax apportionment factor determined pursuant to Section
97.5. The amount allocated to each special district which is governed
by the board of supervisors of a county or whose governing body is
the same as the board of supervisors of a county, shall be subject to
Section 98.6.
(6) Allocate and pay the remaining revenues generated by the rate
levied pursuant to subdivision (a) of Section 1 of Article XIII A of
the California Constitution applied to the increased assessments
under this chapter to all elementary, high school, and unified school
districts within the county in proportion to each school
district's average daily attendance, as certified by the
Superintendent of Public Instruction for the purposes of the advance
apportionment of state aid in the then current fiscal year.
(7) Allocate and pay additional revenues generated by a rate
levied in excess of the limitation prescribed by subdivision (a) of
Section 1 of Article XIII A of the California Constitution to the
fund or funds for which the tax rate or rates were levied.
These allocations and payments shall be made on a timely basis but
no later than 30 calendar days after the close of the preceding
monthly or four-weekly accounting period. For a county with a
population of 500,000 or less, the allocations may be made on a
biannual basis.
(d) For purposes of the certification made by the Superintendent
of Public Instruction pursuant to subdivision (a), the average daily
attendance of the following school districts shall be
deemed to be zero:
(1) In the case of multicounty school districts, the
portions of the school districts located other than in the
county of control.
(2) A school district that is an excess tax school entity, as
defined in subdivision (n) of Section 95, in the prior fiscal year.
(e) The Superintendent of Public Instruction shall certify the
appropriate counts of average daily attendance pursuant to
subdivision (a) to each county auditor no later than July 15 of each
applicable fiscal year.
(f) On or before November 15 and April 15, the auditor of each
county shall furnish to the Superintendent of Public Instruction the
estimated amount of tax receipts pursuant to this section of each
school district situated within his or her county.
(g) In the event property tax revenues under this chapter are
generated by a change in ownership or completed new construction
which occurred on or before May 31, 1984, but are collected
subsequent to the 1983-84 fiscal year, the revenues for the current
roll shall be allocated to school districts as if they had been
collected and allocated during this 1983-84 fiscal year. Any of the
aforementioned revenues which are collected in the 1984-85 fiscal
year shall be applied to school apportionments for the 1984-85 fiscal
year.
SEC. 16. The Legislature finds and declares that Section
15 14 of this act furthers the purposes of the
California State Lottery Act of 1984.