BILL NUMBER: SB 1028	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 30, 2012
	AMENDED IN ASSEMBLY  AUGUST 23, 2012

INTRODUCED BY   Committee on Budget and Fiscal Review

                        FEBRUARY 6, 2012

   An act to amend Sections 17193.5, 17199.4, 52055.780,  and
 69432.7  , and 69999.6  of the Education Code, to
amend Section 17581.6 of the Government Code, to amend Items
6110-485 and 6110-488 of Section 2.00 of the Budget Act of 2011
(Chapter 33 of the Statutes of 2011), and to add Item 6440-301-6048
to Section 2.00 of the Budget Act of 2012 (Chapter 21 of the Statutes
of 2012), relating to education finance, and making an appropriation
therefor, to take effect immediately, bill related to the budget.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1028, as amended, Committee on Budget and Fiscal Review.
Education finance.
   (1) Existing law authorizes a public credit provider, as defined,
to require a participating party, with regard to providing credit
enhancement for bonds, notes, certificates of participation, or other
evidences of indebtedness of a participating party, to agree to
specified conditions, including allowing the Controller to allocate
specified school district, county office of education, or charter
school apportionments to public credit providers if the public credit
provider is required to make principal or interest payments, or
both, pursuant to the credit enhancement agreement. Existing law
imposes those same conditions on securing financing or refinancing
for projects or working capital from the California School Finance
Authority, in which case the Controller allocates apportionments to
an identified trustee when a participating party will not make a
payment to the authority at the time the payment is required.
Existing law also requires any amount apportioned pursuant to these
provisions to be deemed an allocation to the participating party for
specified purposes.
   This bill would instead authorize these payments to a public
credit provider or a trustee, as applicable, to be made, without
regard to the specified funding source of the apportionment, from
specified apportionments. The bill would also require that the amount
apportioned for a participating party be deemed an allocation to the
participating party and included in the computation of the
allocation, limit, entitlement, or apportionment for the
participating party.
   (2) The Quality Education Investment Act of 2006 effectuates the
intent of the Legislature to implement the terms of the proposed
settlement agreement of a specified legal action, to provide for the
discharge of the minimum state educational funding requirement, and
to improve the quality of academic instruction and the level of pupil
achievement in schools whose pupils have high levels of poverty and
complex educational needs, among other things. A provision of the act
appropriates $218,322,000 from the General Fund for the 2013-14
fiscal year, of which $170,322,000 is for transfer by the Controller
to Section A of the State School Fund for allocation by the
Superintendent of Public Instruction pursuant to the act.
   This bill would instead require, for the 2013-14 fiscal year, that
$361,000,000 be appropriated from the General Fund, of which
$313,000,000 would be for transfer by the Controller to Section A of
the State School Fund for allocation by the Superintendent of Public
Instruction pursuant to the act.
   (3) Existing law, the Ortiz-Pacheco-Poochigian-Vasconcellos Cal
Grant Program (Cal Grant Program), establishes the Cal Grant A and B
Entitlement awards, the California Community College Transfer
Entitlement awards, the Competitive Cal Grant A and B awards, the Cal
Grant C awards, and the Cal Grant T awards under the administration
of the Student Aid Commission (commission), and establishes
eligibility requirements for awards under these programs for
participating students attending qualifying institutions, as defined.

   Existing law requires the commission to certify by October 1 of
each year a qualifying institution's latest 3-year cohort default
rate as most recently reported by the United States Department of
Education. Existing law provides that, for purposes of the 2012-13
academic year, and every academic year thereafter, an otherwise
qualifying institution with a 3-year cohort default rate that is
equal to or greater than 15.5% is ineligible for initial and renewal
Cal Grant awards at the institution. Existing law also requires that
an otherwise qualifying institution is ineligible for an initial or
renewal Cal Grant award at the institution if the institution has a
graduation rate of 30% or less for students taking 150% or less of
the expected time to complete degree requirements, as specified, with
certain exceptions. Existing law also requires that an otherwise
qualifying institution that becomes ineligible under these provisions
for initial and renewal Cal Grant awards may regain its eligibility
for the academic year following an academic year in which it
satisfies the requirements relating to the cohort default rate and
the graduation rate.
   This bill would instead require that an otherwise qualifying
institution that becomes ineligible under these provisions for
initial and renewal Cal Grant awards shall regain its eligibility for
the academic year for which it satisfies these requirements. 
   (4) Provisions of law that became inoperative on July 1, 2003, and
that were repealed on January 1, 2004, established the Governor's
Scholarship Programs under the administration of the Scholarshare
Investment Board. Existing law expresses the intent of the
Legislature to provide explicit authority to the board to continue to
administer accounts for, and to make awards to, persons who
qualified for awards under the provisions of the Governor's
Scholarship Programs as those provisions existed on January 1, 2003,
and to provide for the management and disbursement of funds
previously set aside for the Governor's Scholarship Programs.
Existing law provides that the amount remaining in the Golden State
Scholarshare Trust following a specified transfer is available as a
reserve for funding claims for awards.  
   Existing law additionally states the intent of the Legislature to
provide a guarantee should additional funds be needed to cover awards
authorized and made pursuant to the program. Existing law also
requires the board to negotiate with the current manager of the
program to execute an amended or new management and funding
agreement, which would be required to include specified terms,
including, but not limited to, terms that provide for the return to
the General Fund of specified moneys appropriated to the Governor's
Scholarship Programs.  
   Of those funds transferred to the General Fund, this bill would
appropriate $5,000,000 to the Chancellor of the California State
University, without regard to fiscal years, for specified purposes
relating to open education resources as provided in legislation
enacted in the 2011-12 Regular Session. The bill would prohibit all,
or a portion, of that $5,000,000 from being encumbered unless at
least 100% of that amount encumbered is matched by private funds, and
would require the amount of the $5,000,000 that is not matched by
private funds to revert to the Golden State Scholarshare Trust for
purposes of the Governor's Scholarship Programs.  
   (4) 
    (5)  Under the California Constitution, whenever the
Legislature or a state agency mandates a new program or higher level
of service on any local government, including a school district and a
community college district, the state is required to provide a
subvention of funds to reimburse the local government, with specified
exceptions. Existing law, commencing with the 2012-13 fiscal year,
requires that certain funds appropriated in the annual Budget Act for
reimbursement of the cost of a new program or increased level of
service of an existing program mandated by statute or executive order
be available as a block grant to school districts, charter schools,
and county offices of education to support specified state-mandated
local programs and permits those entities to elect to receive that
block grant funding in lieu of claiming mandated costs pursuant to
the state claims process.
   This bill would add specified state-mandated local programs to the
set of programs for which a school district, charter school, or
county office of education may elect to receive a block grant,
including, among others, interdistrict attendance permits program.

   (5) 
    (6)  The Budget Act of 2011 made numerous appropriations
for the support of public education in this state.
   Existing law establishes the Proposition 98 Reversion Account in
the General Fund, and requires that the Legislature, from time to
time, transfer into this account moneys previously appropriated in
satisfaction of the constitutional minimum funding requirements that
have not been disbursed or otherwise encumbered for the purposes for
which they were appropriated. The Budget Act of 2011 reappropriated
$6,824,000 from the Proposition 98 Reversion Account, of which
$6,594,000 was for allocation by the Superintendent of Public
Instruction for apportionment for special education programs, as
specified.
   This bill would reappropriate an additional $10,335,000 from the
Proposition 98 Reversion Account for allocation by the Superintendent
to support special education, as specified. 
   (6) 
    (7)  The Budget Act of 2011, as amended, reappropriated
$220,137,000 from the General Fund to the State Department of
Education for apportionment for special education programs.
   This bill would reduce this reappropriation to the department for
those purposes by $10,335,000 to $209,802,000. 
   (7) 
    (8)  Existing law establishes the 2006 University
Capital Outlay Bond Fund in the State Treasury for deposit of funds
from the proceeds of bonds issued and sold for the purpose of
providing funds to aid the University of California, the Hastings
College of the Law, and the California State University.
   This bill would amend the Budget Act of 2012 by appropriating
$4,750,000 from the 2006 University Capital Outlay Bond Fund to the
University of California for the purpose of funding preliminary plans
and working drawings for the Classroom and Academic Office Building
at the Merced campus. The bill would require that contractors and
subcontractors of the University of California be required to pay
prevailing wages, as specified, as a condition of the availability of
these funds. The bill would also authorize the use of the 2006 bond
funds remaining at the end of capital outlay projects for specified
purposes. 
   (8) 
    (9)  The Budget Act of 2012 appropriated $2,053,750,000
for the support of the University of California.
   This bill would require the University of California, as a
condition of receipt of those funds, to report to the Legislature by
May 1, 2013, on whether it has met an enrollment goal for the 2012-13
academic year. 
   (9) 
    (10)  This bill would require the State Board of
Education and the Health and Human Services Agency, including the
Department of Health Care Services, the Department of Mental Health,
and the Department of Social Services, to repeal regulations relating
to county mental health services that are no longer supported by
statute, including specified regulations. 
   (10) 
    (11)  Funds appropriated by this bill would be applied
toward the minimum funding requirements for school districts and
community college districts imposed by Section 8 of Article XVI of
the California Constitution. 
   (11) 
    (12)  This bill would declare that it is to take effect
immediately as a bill providing for appropriations related to the
Budget Bill.
   Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 17193.5 of the Education Code is amended to
read:
   17193.5.  (a) For purposes of this section, "public credit
provider" means any financial institution or combination of financial
institutions, that consists either solely, or has as a member or
participant, a public retirement system. Notwithstanding any other
law, a public credit provider, in connection with providing credit
enhancement for bonds, notes, certificates of participation, or other
evidences of indebtedness of a participating party, may require the
participating party to agree to the following conditions:
   (1) If a participating party adopts a resolution by a majority
vote of its board to participate under this section, it shall provide
notice to the Controller of that election. The notice shall include
a schedule for the repayment of principal and interest on the bonds,
notes, certificates of participation, or other evidence of
indebtedness and identify the public credit provider that provided
credit enhancement. The notice shall be provided not later than the
date of issuance of the bonds.
   (2) If, for any reason a public credit provider is required to
make principal or interest payments or both pursuant to a credit
enhancement agreement, the public credit provider shall immediately
notify the Controller of that fact and of the amount paid out by the
public credit provider.
   (3) Upon receipt of the notice required by paragraph (2), the
Controller shall make an apportionment to the public credit provider
in the amount of the payments made by the public credit provider for
the purpose of reimbursing the public credit provider for its
expenditures made pursuant to the credit enhancement agreement. The
Controller shall make that apportionment only from moneys designated
for apportionments to a participating party, provided that such
moneys are from one or more of the following:
   (A) Any revenue limit apportionments to a school district or
county office of education without regard to the specific funding
source of the apportionment.
   (B) Any general apportionments to a community college district
without regard to the specific funding source of the apportionment.
   (C) Any charter school block grant apportionments to a charter
school without regard to the specific funding source of the
apportionment.
   (D) Any charter school categorical block grant apportionments to a
charter school without regard to the specific funding source of the
apportionment.
   (b) The amount apportioned for a participating party pursuant to
this section shall be deemed to be an allocation to the participating
party and shall be included in the computation of allocation, limit,
entitlement, or apportionment for the participating party. The
participating party and its creditors do not have a claim to funds
apportioned or anticipated to be apportioned to the trustee by the
Controller pursuant to paragraph (3) of subdivision (a).
  SEC. 2.  Section 17199.4 of the Education Code is amended to read:
   17199.4.  (a) Notwithstanding any other law, any participating
party, in connection with securing financing or refinancing of
projects, or working capital pursuant to this chapter, may elect to
guarantee or provide for payment of the bonds and related obligations
in accordance with the following conditions:
   (1) If a participating party adopts a resolution by a majority
vote of its board to participate under this section, it shall provide
notice to the Controller of that election. The notice shall include
a schedule for the repayment of principal and interest on the bonds,
and any other costs necessary or incidental to financing pursuant to
this chapter, and identify a trustee appointed by the participating
party or the authority for purposes of this section. If payment of
all or a portion of the principal and interest on the bond is secured
by a letter of credit or other instrument of direct payment, the
notice may provide for reimbursements to the provider of the
instrument in lieu of payment of that portion of the principal and
interest of the bonds. The notice shall be provided not later than
the date of issuance of the bonds or 60 days before the next payment,
whichever date is later. The participating party shall update the
notice at least annually if there is a change in the required payment
for any reason, including, but not limited to, providing for new or
increased costs necessary or incidental to the financing.
   (2) If, for any reason, the participating party will not make a
payment at the time the payment is required, the participating party
shall notify the trustee of that fact and of the amount of the
deficiency. If the trustee receives this notice from the
participating party, or does not receive any payment by the date that
payment becomes due, the trustee shall immediately communicate that
information to the Controller.
   (3) Upon receipt of the notice required by paragraph (2), the
Controller shall make an apportionment to the trustee on the date
shown in the schedule in the amount of the deficiency for the purpose
of making the required payment. The Controller shall make that
apportionment only from moneys designated for apportionment to a
participating party, provided that such moneys are from one or more
of the following:
   (A) Any revenue limit apportionments to a school district or
county office of education without regard to the specific funding
source of the apportionment.
   (B) Any charter school block grant apportionments to a charter
school without regard to the specific funding source of the
apportionment.
   (C) Any charter school categorical block grant apportionments to a
charter school without regard to the specific funding source of the
apportionment.
   (4) As an alternative to the procedures set forth in paragraphs
(2) and (3), the participating party may provide a transfer schedule
in its notice to the Controller of its election to participate under
this section. The transfer schedule shall set forth amounts to be
transferred to the trustee and the date for the transfers. The
Controller, subject to the limitation in paragraph (3), shall make
apportionments to the trustee of those amounts on the specified date
for the purpose of making those transfers. The authority may require
a participating party to proceed under this subdivision.
   (b)  The amount apportioned for a participating party pursuant to
this section shall be deemed to be an allocation to the participating
party and shall be included in the computation of allocation, limit,
entitlement, or apportionment for the participating party.
    The participating party and its creditors do not have a claim to
funds apportioned or anticipated to be apportioned to the trustee by
the Controller pursuant to paragraph (3) and (4) of subdivision (a),
or to the funds apportioned to by the Controller to the trustee under
any other provision of this section.
   (c) (1)  Participating parties that elect to participate under
this section shall apply to the authority. The authority shall
consider each of the following priorities in making funds available:
   (A) First priority shall be given to school districts, charter
schools, or county offices of education that apply for funding for
instructional classroom space.
   (B) Second priority shall be given to school districts, charter
schools, or county offices of education that apply for funding of
modernization of instructional classroom space.
   (C) Third priority shall be given to all other eligible costs, as
defined in Section 17173.
   (2) The authority shall prioritize applications at appropriate
intervals.
   (3) A school district electing to participate under this section
that has applied for revenue bond moneys for purposes of joint
venture school facilities construction projects, pursuant to Article
5 (commencing with Section 17060) of Chapter 12, shall not be subject
to the priorities set forth in paragraph (1).
   (d) This section shall not be construed to make the State of
California liable for any payments within the meaning of Section 1 of
Article XVI of the California Constitution or otherwise, except as
expressly provided in this section.
   (e) A school district that has a qualified or negative
certification pursuant to Section 42131, or a county office of
education that has a qualified or negative certification pursuant to
Section 1240, may not participate under this section.
  SEC. 3.  Section 52055.780 of the Education Code is amended to
read:
   52055.780.  (a) School districts and chartering authorities shall
receive funding at the following rate, on behalf of funded schools:
   (1) For kindergarten and grades 1 to 3, inclusive, five hundred
dollars ($500) per enrolled pupil in funded schools.
   (2) For grades 4 to 8, inclusive, nine hundred dollars ($900) per
enrolled pupil in funded schools.
   (3) For grades 9 to 12, inclusive, one thousand dollars ($1,000)
per enrolled pupil in funded schools.
   (b) For purposes of subdivision (a), enrollment of a pupil in a
funded school in the prior fiscal year shall be based on data from
the CBEDS.
   (c) For the 2012-13 fiscal year, three hundred sixty-one million
dollars ($361,000,000) is hereby appropriated from the General Fund
to be allocated as follows:
   (1) Forty-eight million dollars ($48,000,000) for transfer by the
Controller to Section B of the State School Fund for allocation by
the Chancellor of the California Community Colleges to community
colleges as required under subdivision (d).
   (2) Three hundred thirteen million dollars ($313,000,000) for
transfer by the Controller to Section A of the State School Fund for
allocation by the Superintendent pursuant to this article.
   (3) Payments made pursuant to this subdivision shall be made only
on or after October 8 of the 2012-13 fiscal year.
   (d) The sum transferred pursuant to paragraph (1) of subdivision
(c) shall be allocated by the Chancellor of the California Community
Colleges to the community colleges for the purpose of improving and
expanding career technical education in public secondary education
and lower division public higher education pursuant to Section 88532,
including the hiring of additional faculty to expand the number of
career technical education programs and course offerings.
   (e) For the 2013-14 fiscal year, three hundred sixty-one million
dollars ($361,000,000) is hereby appropriated from the General Fund
to be allocated as follows:
   (1) Forty-eight million dollars ($48,000,000) for transfer by the
Controller to Section B of the State School Fund for allocation by
the Chancellor of the California Community Colleges to community
colleges as required under subdivision (d).
   (2) Three hundred thirteen million dollars ($313,000,000) for
transfer by the Controller to Section A of the State School Fund for
allocation by the Superintendent pursuant to this article.
   (f) From funds appropriated under subdivision (c), the
Superintendent shall provide not more than two million dollars
($2,000,000) to county superintendents of schools to carry out the
requirements of this article, allocated in a manner similar to that
created to carry out the new duties of those superintendents under
the settlement agreement in the case of Williams v. California
(Super. Ct. San Francisco, No. CGC-00-312236).
   (g) For purposes of making the computations required by Section 8
of Article XVI of the California Constitution, including computation
of the state's minimum funding obligation to school districts and
community college districts in subsequent fiscal years, the
appropriations made pursuant to subdivisions (c) and (e) shall be
deemed to be "General Fund revenues appropriated for school
districts," as defined in subdivision (c) of Section 41202 and
"General Fund revenues appropriated for community college districts,"
as defined in subdivision (d) of Section 41202, for the 2012-13 and
2013-14 fiscal years and included within the "total allocations to
school districts and community college districts from General Fund
proceeds of taxes appropriated pursuant to Article XIII B," as
defined in subdivision (e) of Section 41202, for that fiscal year.
  SEC. 4.  Section 69432.7 of the Education Code is amended to read:
   69432.7.  As used in this chapter, the following terms have the
following meanings:
   (a) An "academic year" is July 1 to June 30, inclusive. The
starting date of a session shall determine the academic year in which
it is included.
   (b) "Access costs" means living expenses and expenses for
transportation, supplies, and books.
   (c) "Award year" means one academic year, or the equivalent, of
attendance at a qualifying institution.
   (d) "College grade point average" and "community college grade
point average" mean a grade point average calculated on the basis of
all college work completed, except for nontransferable units and
courses not counted in the computation for admission to a California
public institution of higher education that grants a baccalaureate
degree.
   (e) "Commission" means the Student Aid Commission.
   (f) "Enrollment status" means part- or full-time status.
   (1) "Part time," for purposes of Cal Grant eligibility, means 6 to
11 semester units, inclusive, or the equivalent.
   (2) "Full time," for purposes of Cal Grant eligibility, means 12
or more semester units or the equivalent.
   (g) "Expected family contribution," with respect to an applicant,
shall be determined using the federal methodology pursuant to
subdivision (a) of Section 69506 (as established by Title IV of the
federal Higher Education Act of 1965, as amended (20 U.S.C. Sec. 1070
et seq.)) and applicable rules and regulations adopted by the
commission.
   (h) "High school grade point average" means a grade point average
calculated on a 4.0 scale, using all academic coursework, for the
sophomore year, the summer following the sophomore year, the junior
year, and the summer following the junior year, excluding physical
education, reserve officer training corps (ROTC), and remedial
courses, and computed pursuant to regulations of the commission.
However, for high school graduates who apply after their senior year,
"high school grade point average" includes senior year coursework.
   (i) "Instructional program of not less than one academic year"
means a program of study that results in the award of an associate or
baccalaureate degree or certificate requiring at least 24 semester
units or the equivalent, or that results in eligibility for transfer
from a community college to a baccalaureate degree program.
   (j) "Instructional program of not less than two academic years"
means a program of study that results in the award of an associate or
baccalaureate degree requiring at least 48 semester units or the
equivalent, or that results in eligibility for transfer from a
community college to a baccalaureate degree program.
   (k) "Maximum household income and asset levels" means the
applicable household income and household asset levels for
participants, including new applicants and renewing recipients, in
the Cal Grant Program, as defined and adopted in regulations by the
commission for the 2001-02 academic year, which shall be set pursuant
to the following income and asset ceiling amounts:
         CAL GRANT PROGRAM INCOME CEILINGS


+--------------------+--------------+--------------+
|                        Cal Grant                 |
|                           A,                     |
|                        C, and T      Cal Grant B |
+--------------------+--------------+--------------+
|Dependent and Independent students with           |
|dependents*                                       |
+--------------------+--------------+--------------+
|Family Size                                       |
+--------------------+--------------+--------------+
|  Six or more             $74,100        $40,700  |
+--------------------+--------------+--------------+
|  Five                    $68,700        $37,700  |
+--------------------+--------------+--------------+
|  Four                    $64,100        $33,700  |
+--------------------+--------------+--------------+
|  Three                   $59,000        $30,300  |
+--------------------+--------------+--------------+
|  Two                     $57,600        $26,900  |
+--------------------+--------------+--------------+
|Independent                                       |
+--------------------+--------------+--------------+
|  Single, no              $23,500        $23,500  |
|dependents                                        |
+--------------------+--------------+--------------+
|  Married                 $26,900        $26,900  |
+--------------------+--------------+--------------+


   *Applies to independent students with dependents other than a
spouse.
          CAL GRANT PROGRAM ASSET CEILINGS


+----------------------+-------------+-------------+
|                         Cal Grant                |
|                             A,                   |
|                          C, and T    Cal Grant B |
+----------------------+-------------+-------------+
|Dependent**                $49,600       $49,600  |
+----------------------+-------------+-------------+
|Independent                $23,600       $23,600  |
+----------------------+-------------+-------------+


   **Applies to independent students with dependents other than a
spouse.


   The commission shall annually adjust the maximum household income
and asset levels based on the percentage change in the cost of living
within the meaning of paragraph (1) of subdivision (e) of Section 8
of Article XIII B of the California Constitution. The maximum
household income and asset levels applicable to a renewing recipient
shall be the greater of the adjusted maximum household income and
asset levels or the maximum household income and asset levels at the
time of the renewing recipient's initial Cal Grant award. For a
recipient who was initially awarded a Cal Grant for an academic year
before the 2011-12 academic year, the maximum household income and
asset levels shall be the greater of the adjusted maximum household
income and asset levels or the 2010-11 academic year maximum
household income and asset levels. An applicant or renewal recipient
who qualifies to be considered under the simplified needs test
established by federal law for student assistance shall be presumed
to meet the asset level test under this section. Prior to disbursing
any Cal Grant funds, a qualifying institution shall be obligated,
under the terms of its institutional participation agreement with the
commission, to resolve any conflicts that may exist in the data the
institution possesses relating to that individual.
   (l) (1) "Qualifying institution" means an institution that
complies with paragraphs (2) and (3) and is any of the following:
   (A) A California private or independent postsecondary educational
institution that participates in the Pell Grant Program and in at
least two of the following federal campus-based student aid programs:

   (i) Federal Work-Study.
   (ii) Perkins Loan Program.
   (iii) Supplemental Educational Opportunity Grant Program.
   (B) A nonprofit institution headquartered and operating in
California that certifies to the commission that 10 percent of the
institution's operating budget, as demonstrated in an audited
financial statement, is expended for purposes of institutionally
funded student financial aid in the form of grants, that demonstrates
to the commission that it has the administrative capacity to
administer the funds, that is accredited by the Western Association
of Schools and Colleges, and that meets any other state-required
criteria adopted by regulation by the commission in consultation with
the Department of Finance. A regionally accredited institution that
was deemed qualified by the commission to participate in the Cal
Grant Program for the 2000-01 academic year shall retain its
eligibility as long as it maintains its existing accreditation
status.
   (C) A California public postsecondary educational institution.
   (2) (A) The institution shall provide information on where to
access California license examination passage rates for the most
recent available year from graduates of its undergraduate programs
leading to employment for which passage of a California licensing
examination is required, if that data is electronically available
through the Internet Web site of a California licensing or regulatory
agency. For purposes of this paragraph, "provide" may exclusively
include placement of an Internet Web site address labeled as an
access point for the data on the passage rates of recent program
graduates on the Internet Web site where enrollment information is
also located, on an Internet Web site that provides centralized
admissions information for postsecondary educational systems with
multiple campuses, or on applications for enrollment or other program
information distributed to prospective students.
   (B) The institution shall be responsible for certifying to the
commission compliance with the requirements of subparagraph (A).
   (3) (A) The commission shall certify by October 1 of each year the
institution's latest three-year cohort default rate and graduation
rate as most recently reported by the United States Department of
Education.
   (B) For purposes of the 2011-12 academic year, an otherwise
qualifying institution with a three-year cohort default rate reported
by the United States Department of Education that is equal to or
greater than 24.6 percent shall be ineligible for initial and renewal
Cal Grant awards at the institution, except as provided in
subparagraph (F).
   (C) For purposes of the 2012-13 academic year, and every academic
year thereafter, an otherwise qualifying institution with a
three-year cohort default rate that is equal to or greater than 15.5
percent, as certified by the commission on October 1, 2011, and every
year thereafter, shall be ineligible for initial and renewal Cal
Grant awards at the institution, except as provided in subparagraph
(F).
   (D) (i) An otherwise qualifying institution that becomes
ineligible under this paragraph for initial and renewal Cal Grant
awards shall regain its eligibility for the academic year for which
it satisfies the requirements established in subparagraph (B), (C),
or (G), as applicable.
   (ii) If the United States Department of Education corrects or
revises an institution's three-year cohort default rate or graduation
rate that originally failed to satisfy the requirements established
in subparagraph (B), (C), or (G), as applicable, and the correction
or revision results in the institution's three-year cohort default
rate or graduation rate satisfying those requirements, that
institution shall immediately regain its eligibility for the academic
year to which the corrected or revised three-year cohort default
rate or graduation rate would have been applied.
   (E) An otherwise qualifying institution for which no three-year
cohort default rate or graduation rate has been reported by the
United States Department of Education shall be provisionally eligible
to participate in the Cal Grant Program until a three-year cohort
default rate or graduation rate has been reported for the institution
by the United States Department of Education.
   (F) (i) An institution that is ineligible for initial and renewal
Cal Grant awards at the institution under subparagraph (B), (C), or
(G) shall be eligible for renewal Cal Grant awards for recipients who
were enrolled in the ineligible institution during the academic year
before the academic year for which the institution is ineligible and
who choose to renew their Cal Grant awards to attend the ineligible
institution. Cal Grant awards subject to this subparagraph shall be
reduced as follows:
   (I) The maximum Cal Grant A and B awards specified in the annual
Budget Act shall be reduced by 20 percent.
   (II) The reductions specified in this subparagraph shall not
impact access costs as specified in subdivision (b) of Section 69435.

   (ii) This subparagraph shall become inoperative on July 1, 2013.
   (G) For purposes of the 2012-13 academic year, and every academic
year thereafter, an otherwise qualifying institution with a
graduation rate of 30 percent or less for students taking 150 percent
or less of the expected time to complete degree requirements, as
reported by the United States Department of Education and as
certified by the commission pursuant to subparagraph (A), shall be
ineligible for initial and renewal Cal Grant awards at the
institution, except as provided for in subparagraphs (F) and (I).
   (H) Notwithstanding any other law, the requirements of this
paragraph shall not apply to institutions with 40 percent or less of
undergraduate students borrowing federal student loans, using
information reported to the United States Department of Education for
the academic year two years before the year in which the commission
is certifying the three-year cohort default rate or graduation rate
pursuant to subparagraph (A).
   (I) Notwithstanding subparagraph (G), an otherwise qualifying
institution with a three-year cohort default rate that is less than
10 percent and a graduation rate above 20 percent for students taking
150 percent or less of the expected time to complete degree
requirements, as certified by the commission pursuant to subparagraph
(A), shall remain eligible for initial and renewal Cal Grant awards
at the institution through the 2016-17 academic year.
   (J) The commission shall do all of the following:
   (i) Notify initial Cal Grant recipients seeking to attend, or
attending, an institution that is ineligible for initial and renewal
Cal Grant awards under subparagraph (C) or (G) that the institution
is ineligible for initial Cal Grant awards for the academic year for
which the student received an initial Cal Grant award.
   (ii) Notify renewal Cal Grant recipients attending an institution
that is ineligible for initial and renewal Cal Grant awards at the
institution under subparagraph (C) or (G) that the student's Cal
Grant award will be reduced by 20 percent, or eliminated, as
appropriate, if the student attends the ineligible institution in an
academic year in which the institution is ineligible.
   (iii) Provide initial and renewal Cal Grant recipients seeking to
attend, or attending, an institution that is ineligible for initial
and renewal Cal Grant awards at the institution under subparagraph
(C) or (G) with a complete list of all California postsecondary
educational institutions at which the student would be eligible to
receive an unreduced Cal Grant award.
   (K) By January 1, 2013, the Legislative Analyst shall submit to
the Legislature a report on the implementation of this paragraph.
                                         The report shall be prepared
in consultation with the commission, and shall include policy
recommendations for appropriate measures of default risk and other
direct or indirect measures of quality or effectiveness in
educational institutions participating in the Cal Grant Program, and
appropriate scores for those measures. It is the intent of the
Legislature that appropriate policy and fiscal committees review the
requirements of this paragraph and consider changes thereto.
   (m) "Satisfactory academic progress" means those criteria required
by applicable federal standards published in Title 34 of the Code of
Federal Regulations. The commission may adopt regulations defining
"satisfactory academic progress" in a manner that is consistent with
those federal standards.
   SEC. 5.    Section 69999.6 of the   
 Education Code   is amended to read: 
   69999.6.  (a) In enacting this article, it is the intent of the
Legislature to accomplish all of the following:
   (1) Provide explicit authority to the board to continue to
administer accounts for, and make awards to, persons who qualified
for awards under the provisions of the Governor's Scholarship
Programs as those provisions existed on January 1, 2003, prior to the
repeal of former Article 20 (commencing with Section 69995).
   (2) Provide for the management and disbursement of funds
previously set aside for the scholarship programs authorized by
former Article 20 (commencing with Section 69995).
   (3) Provide a guarantee should additional funds be needed to cover
awards authorized and made pursuant to former Article 20 (commencing
with Section 69995).
   (b) The board may manage and disburse the funds previously set
aside for the scholarship programs authorized by former Article 20
(commencing with Section 69995).
   (c) If a person has earned an award under the Governor's
Scholarship Programs on or before January 1, 2003, but has not
claimed the award on or before June 30, 2004, he or she still may
claim the award by a date that is five years from the first June 30
that fell after he or she took the qualifying test. An award shall
not be made by the board after that date.
   (d) The board shall negotiate with the current manager of the
Governor's Scholarship Programs and execute an amended or new
management and funding agreement, before January 1, 2013, which shall
include, but not be limited to, all of the following:
   (1) Terms providing for the return to the General Fund by no later
than January 1, 2013, of moneys appropriated to the Governor's
Scholarship Programs that are not anticipated to be needed to make
awards pursuant to paragraphs (1) and (2) of subdivision (a).
     (2) Provisions that authorize the board to pay
agreed-upon early withdrawal penalties or fees.
     (3) Terms that extend  to  the final date upon
which the board may withdraw funds for a person who earned an award
under the Governor's Scholarship Programs.
   (e) (1) If funds retained in the Golden State Scholarshare Trust
after January 1, 2013, are insufficient to cover the remaining
withdrawal requests, it is the intent of the Legislature to
appropriate the necessary funds to the Golden State Scholarshare
Trust for the purpose of funding individual beneficiary accounts.
   (2) The board shall notify the Department of Finance and the
Legislature no later than 10 working days after determining that a
shortfall in available funding described in paragraph (1) will occur.

   (f) (1) Of the funds transferred to the General Fund pursuant to
paragraph (1) of subdivision (d), five million dollars ($5,000,000)
is hereby appropriated to the Chancellor of the California State
University, without regard to fiscal years, to fund the establishment
and administration of the California Open Education Resources
Council and the California Digital Open Source Library, and the
development or acquisition of open education resources, or any
combination thereof, pursuant to legislation enacted in the 2011-12
Regular Session of the Legislature, provided that the chancellor may
provide reimbursement to the California Community Colleges and the
University of California for costs those segments, or their
representatives, incur in association with the activities described
in this paragraph.  
   (2) Moneys, or a portion of moneys, appropriated pursuant to
paragraph (1) shall not be encumbered unless at least 100 percent of
that amount encumbered is matched by private funds. Moneys
appropriated pursuant to paragraph (1) that are not matched by
private funds shall revert to the Golden State Scholarshare Trust for
purposes of the Governor's Scholarship Programs.  
    (f) 
    (g)  The board may adopt rules and regulations for the
implementation of this article.
   SEC. 5.   SEC. 6.   Section 17581.6 of
the Government Code is amended to read:
   17581.6.  (a) Commencing with the 2012-13 fiscal year, funds
provided in Item 6110-296-0001 of Section 2.00 of the annual Budget
Act shall be allocated as block grants to school districts, charter
schools, and county offices of education to support all of the
mandated programs described in subdivision (d).
   (b) (1) Notwithstanding any other law, each fiscal year a school
district or county office of education may receive funding for the
performance of the mandated activities listed in subdivision (d)
either through the block grant established pursuant to this section
or by claiming reimbursement pursuant to Section 17560. A school
district or county office of education that claims reimbursement for
any mandated activities pursuant to Section 17560 for mandated costs
incurred during a fiscal year shall not be eligible for funding
pursuant to this section for the same fiscal year.
   (2) A school district and county office of education that elects
to receive block grant funding instead of seeking reimbursement
pursuant to Section 17560 shall, and any charter school that elects
to receive block grant funding shall, submit a letter of intent to
the Superintendent of Public Instruction on or before September 30 of
each year requesting block grant funding pursuant to this section.
The Superintendent of Public Instruction shall distribute funding
provided pursuant to subdivision (a) to school districts, charter
schools, and county offices of education pursuant to the rates set
forth in Item 6110-296-0001 of Section 2.00 of the annual Budget Act.
Funding distributed pursuant to this section is in lieu of
reimbursement pursuant to Section 6 of Article XIII B of the
California Constitution for the performance of all activities
specified in subdivision (d) as those activities pertain to school
districts and county offices of education. A school district, county
office of education, or charter school that submits a letter of
intent and receives block grant funding pursuant to this section
shall not also be eligible to submit a claim for reimbursement of
costs incurred for a mandated program set forth in subdivision (d)
for the fiscal year for which the block grant funding is received.
   (c) Block grant funding provided to school districts, charter
schools, and county offices of education pursuant to this section is
subject to annual audits required by Section 41020 of the Education
Code.
   (d) Block grant funding provided pursuant to this section to
individual school districts, charter schools, and county offices of
education is to support all of the following mandated programs:
   (1) Absentee Ballots (CSM 3713; Chapter 77 of the Statutes of 1978
and Chapter 1032 of the Statutes of 2002).
   (2) Academic Performance Index (01-TC-22; Chapter 3 of the
Statutes of 1999, First Extraordinary Session; and Chapter 695 of the
Statutes of 2000).
   (3) Agency Fee Arrangements (00-TC-17 and 01-TC-14; Chapter 893 of
the Statutes of 2000 and Chapter 805 of the Statutes of 2001).
   (4) AIDS Instruction and AIDS Prevention Instruction (CSM 4422,
99-TC-07, and 00-TC-01; Chapter 818 of the Statutes of 1991; and
Chapter 403 of the Statutes of 1998).
   (5) California State Teachers' Retirement System Service Credit
(02-TC-19; Chapter 603 of the Statutes of 1994; Chapters 383, 634,
and 680 of the Statutes of 1996; Chapter 838 of the Statutes of 1997;
Chapter 965 of the Statutes of 1998; Chapter 939 of the Statutes of
1999; and Chapter 1021 of the Statutes of 2000).
   (6) Caregiver Affidavits (CSM 4497; Chapter 98 of the Statutes of
1994).
   (7) Charter Schools I, II, and III (CSM 4437, 99-TC-03, and
99-TC-14; Chapter 781 of the Statutes of 1992; Chapters 34 and 673 of
the Statutes of 1998; Chapter 34 of the Statutes of 1998; and
Chapter 78 of the Statutes of 1999).
   (8) Child Abuse and Neglect Reporting (01-TC-21: Chapters 640 and
1459 of the Statutes of 1987; Chapter 132 of the Statutes of 1991;
Chapter 459 of the Statutes of 1992; Chapter 311 of the Statutes of
1998; Chapter 916 of the Statutes of 2000; and Chapters 133 and 754
of the Statutes of 2001).
   (9) Collective Bargaining (CSM 4425; Chapter 961 of the Statutes
of 1975).
   (10) Comprehensive School Safety Plans (98-TC-01 and 99-TC-10;
Chapter 736 of the Statutes of 1997; Chapter 996 of the Statutes of
1999; and Chapter 828 of the Statutes of 2003).
   (11) Consolidation of Annual Parent Notification/Schoolsite
Discipline Rules/Alternative Schools (CSM 4488, CSM 4461, 99-TC-09,
00-TC-12, 97-TC-24, CSM 4453, CSM 4474, CSM 4462; Chapter 448 of the
Statutes of 1975; Chapter 965 of the Statutes of 1977; Chapter 975 of
the Statutes of 1980; Chapter 469 of the Statutes of 1981; Chapter
459 of the Statutes of 1985; Chapters 87 and 97 of the Statutes of
1986; Chapter 1452 of the Statutes of 1987; Chapters 65 and 1284 of
the Statutes of 1988; Chapter 213 of the Statutes of 1989; Chapters
10 and 403 of the Statutes of 1990; Chapter 906 of the Statutes of
1992; Chapter 1296 of the Statutes of 1993; Chapter 929 of the
Statutes of 1997; Chapters 846 and 1031 of the Statutes of 1998;
Chapter 1 of the Statutes of 1999, First Extraordinary Session;
Chapter 73 of the Statutes of 2000; Chapter 650 of the Statutes of
2003; Chapter 895 of the Statutes of 2004; and Chapter 677 of the
Statutes of 2005).
   (12) Consolidation of Law Enforcement Agency Notification and
Missing Children Reports (CSM 4505; Chapter 1117 of the Statutes of
1989 and 01-TC-09; Chapter 249 of the Statutes of 1986; and Chapter
832 of the Statutes of 1999).
   (13) Consolidation of Notification to Teachers: Pupils Subject to
Suspension or Expulsion I and II, and Pupil Discipline Records
(00-TC-10 and 00-TC-11; Chapter 345 of the Statutes of 2000).
   (14) County Office of Education Fiscal Accountability Reporting
(97-TC-20; Chapters 917 and 1452 of the Statutes of 1987; Chapters
1461 and 1462 of the Statutes of 1988; Chapter 1372 of the Statutes
of 1990; Chapter 1213 of the Statutes of 1991; Chapter 323 of the
Statutes of 1992; Chapters 923 and 924 of the Statutes of 1993;
Chapters 650 and 1002 of the Statutes of 1994; and Chapter 525 of the
Statutes of 1995).
   (15) Criminal Background Checks (97-TC-16; Chapters 588 and 589 of
the Statutes of 1997).
   (16) Criminal Background Checks II (00-TC-05; Chapters 594 and 840
of the Statutes of 1998; and Chapter 78 of the Statutes of 1999).
   (17) Differential Pay and Reemployment (99-TC-02; Chapter 30 of
the Statutes of 1998).
   (18) Expulsion of Pupil: Transcript Cost for Appeals (SMAS;
Chapter 1253 of the Statutes of 1975).
   (19) Financial and Compliance Audits (CSM 4498 and CSM 4498-A;
Chapter 36 of the Statutes of 1977).
   (20) Habitual Truants (CSM 4487 and CSM 4487-A; Chapter 1184 of
the Statutes of 1975).
   (21) High School Exit Examination (00-TC-06; Chapter 1 of the
Statutes of 1999, First Extraordinary Session; and Chapter 135 of the
Statutes of 1999).
   (22) Immunization Records (SB 90-120; Chapter 1176 of the Statutes
of 1977).
   (23) Immunization Records--Hepatitis B (98-TC-05; Chapter 325 of
the Statutes of 1978; Chapter 435 of the Statutes of 1979; Chapter
472 of the Statutes of 1982; Chapter 984 of the Statutes of 1991;
Chapter 1300 of the Statutes of 1992; Chapter 1172 of the Statutes of
1994; Chapters 291 and 415 of the Statutes of 1995; Chapter 1023 of
the Statutes of 1996; and Chapters 855 and 882 of the Statutes of
1997).
   (24) Interdistrict Attendance Permits (CSM 4442; Chapters 172 and
742 of the Statutes of 1986; Chapter 853 of the Statutes of 1989;
Chapter 10 of the Statutes of 1990; and Chapter 120 of the Statutes
of 1992).
   (25) Intradistrict Attendance (CSM 4454; Chapters 161 and 915 of
the Statutes of 1993).
   (26) Juvenile Court Notices II (CSM 4475; Chapters 1011 and 1423
of the Statutes of 1984; Chapter 1019 of the Statutes of 1994; and
Chapter 71 of the Statutes of 1995).
   (27) Mandate Reimbursement Process I and II (CSM 4204, CSM 4485,
and 05-TC-05; Chapter 486 of the Statutes of 1975).
   (28) Notification of Truancy (CSM 4133; Chapter 498 of the
Statutes of 1983; Chapter 1023 of the Statutes of 1994; and Chapter
19 of the Statutes of 1995).
   (29) Open Meetings/Brown Act Reform (CSM 4257 and CSM 4469;
Chapter 641 of the Statutes of 1986; and Chapters 1136, 1137, and
1138 of the Statutes of 1993).
   (30) Physical Performance Tests (96-365-01; Chapter 975 of the
Statutes of 1995).
   (31) Prevailing Wage Rate (01-TC-28; Chapter 1249 of the Statutes
of 1978).
   (32) Pupil Health Screenings (CSM 4440; Chapter 1208 of the
Statutes of 1976; Chapter 373 of the Statutes of 1991; and Chapter
750 of the Statutes of 1992).
   (33) Pupil Promotion and Retention (98-TC-19; Chapter 100 of the
Statutes of 1981; Chapter 1388 of the Statutes of 1982; Chapter 498
of the Statutes of 1983; Chapter 1263 of the Statutes of 1990; and
Chapters 742 and 743 of the Statutes of 1998).
   (34) Pupil Safety Notices (02-TC-13; Chapter 498 of the Statutes
of 1983; Chapter 482 of the Statutes of 1984; Chapter 948 of the
Statutes of 1984; Chapter 196 of the Statutes of 1986; Chapter 332 of
the Statutes of 1986; Chapter 445 of the Statutes of 1992; Chapter
1317 of the Statutes of 1992; Chapter 589 of the Statutes of 1993;
Chapter 1172 of the Statutes of 1994; Chapter 1023 of the Statutes of
1996; and Chapter 492 of the Statutes of 2000).
   (35) Pupil Expulsions (CSM 4455; Chapter 1253 of the Statutes of
1975; Chapter 965 of the Statutes of 1977; Chapter 668 of the
Statutes of 1978; Chapter 318 of the Statutes of 1982; Chapter 498 of
the Statutes of 1983; Chapter 622 of the Statutes of 1984; Chapter
942 of the Statutes of 1987; Chapter 1231 of the Statutes of 1990;
Chapter 152 of the Statutes of 1992; Chapters 1255, 1256, and 1257 of
the Statutes of 1993; and Chapter 146 of the Statutes of 1994).
   (36) Pupil Expulsion Appeals (CSM 4463; Chapter 1253 of the
Statutes of 1975; Chapter 965 of the Statutes of 1977; Chapter 668 of
the Statutes of 1978; and Chapter 498 of the Statutes of 1983).
   (37) Pupil Suspensions (CSM 4456; Chapter 965 of the Statutes of
1977; Chapter 668 of the Statutes of 1978; Chapter 73 of the Statutes
of 1980; Chapter 498 of the Statutes of 1983; Chapter 856 of the
Statutes of 1985; and Chapter 134 of the Statutes of 1987).
   (38) School Accountability Report Cards (97-TC-21, 00-TC-09,
00-TC-13, and 02-TC-32; Chapter 918 of the Statutes of 1997; Chapter
912 of the Statutes of 1997; Chapter 824 of the Statutes of 1994;
Chapter 1031 of the Statutes of 1993; Chapter 759 of the Statutes of
1992; and Chapter 1463 of the Statutes of 1989).
   (39) School District Fiscal Accountability Reporting (97-TC-19;
Chapter 100 of the Statutes of 1981; Chapter 185 of the Statutes of
1985; Chapter 1150 of the Statutes of 1986; Chapters 917 and 1452 of
the Statutes of 1987; Chapters 1461 and 1462 of the Statutes of 1988;
Chapter 525 of the Statutes of 1990; Chapter 1213 of the Statutes of
1991; Chapter 323 of the Statutes of 1992; Chapters 923 and 924 of
the Statutes of 1993; Chapters 650 and 1002 of the Statutes of 1994;
and Chapter 525 of the Statutes of 1995).
   (40) School District Reorganization (98-TC-24; Chapter 1192 of the
Statutes of 1980; and Chapter 1186 of the Statutes of 1994).
   (41) Student Records (02-TC-34; Chapter 593 of the Statutes of
1989; Chapter 561 of the Statutes of 1993; Chapter 311 of the
Statutes of 1998; and Chapter 67 of the Statutes of 2000).
   (42) The Stull Act (98-TC-25; Chapter 498 of the Statutes of 1983;
and Chapter 4 of the Statutes of 1999).
   (43) Threats Against Peace Officers (CSM 96-365-02; Chapter 1249
of the Statutes of 1992; and Chapter 666 of the Statutes of 1995).
   (e) The Superintendent of Public Instruction shall compile a list
of all school districts, charter schools, and county offices of
education that received block grant funding in the prior fiscal year
pursuant to this section. This list shall include the total amount
each school district, charter school, and county office of education
received. The Superintendent of Public Instruction shall provide this
information to the appropriate fiscal and policy committees of the
Legislature, the Controller, the Department of Finance, and the
Legislative Analyst Office on or before September 9 of each year.
   SEC. 6.   SEC. 7.   Item 6110-485 of
Section 2.00 of the Budget Act of 2011 is amended to read:
6110-485--Reappropriation (Proposition 98),
Department of Education. The sum of
$17,159,000 is hereby reappropriated from the
Proposition 98 Reversion Account for the
following purposes:
     0001-- General Fund
     (1) The sum of $6,594,000 to the State
         Department of Education for transfer
         by the Controller to Section A of the
         State School Fund for       allocation
         by the Superintendent of Public
         Instruction for apportionment for
         special education programs pursuant to
         Part 30 (commencing with Section
         56000) of Division 4 of Title 2 of the
         Education Code.
     (2) The sum of $230,000 to the State
         Department of Education for transfer
         by the Controller to Section A of the
         State School Fund for allocation by
         the Superintendent of Public
         Instruction for the purpose of funding
         California School Information Services
         administration activities authorized
         pursuant to Schedule (2) of Item 6110-
         140-0001.
     (3) The sum of $10,335,000 to the State
         Department of Education       for the
         transfer by the Controller to Section
         A of the State School Fund for
         allocation by the Superintendent of
         Public Instruction to support special
         education authorized pursuant to
         Schedule (1) of Item 6110-161-0001.


   SEC. 7.   SEC. 8.  Item 6110-488 of
Section 2.00 of the Budget Act of 2011, as amended by Section 84 of
Chapter 38 of the Statutes of 2012, is amended to read:
6110-488--Reappropriation, Department of Education.
Notwithstanding any other provision of law, the
balances from the following items are available for
reappropriation for the purposes specified in
Provisions 1 to 5, inclusive:
       0001--General Fund
       (1)        $24,000,000 of the unexpended
                  balance of the amount appropriated
                  for child care programs in
                  Schedules (1) and       (1.5) of
                  Item 6110-196-0001 of the Budget
                  Act of 2010 (Ch. 712, Stats. 2010)
       (2)        $6,900,000 or whatever greater or
                  lesser amount of the unexpended
                  balance of the amount appropriated
                  for Economic Impact Aid in Item
                  6110-128-0001 of the Budget Act of
                  2010 (Ch. 712, Stats. 2010)
       (3)        $20,000,000 or whatever greater or
                  lesser amount of the unexpended
                  balance of the amount appropriated
                  for special education in Schedule
                  (1) of Item 6110-161-0001 of the
                  Budget Act of 2010 (Ch. 712, Stats.
                  2010)
       (4)        $15,121,000 or whatever greater or
                  lesser amount of the unexpended
                  balance of the amount appropriated
                  for the K-3 Class Size Reduction
                  program in paragraph (9) of
                  subdivision (a) of Section 38 of
                  Chapter 12 of the Statutes of 2009
       (5)        $40,000,000 or whatever greater or
                  lesser amount of the unexpended
                  balance of the amount appropriated
                  for the Quality Education
                  Investment Act in the 2010-11
                  fiscal year pursuant to Section
                  52055.770 of the Education Code
       (7)        $9,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the English
                  Language Learners Supplemental
                  Instructional Materials program in
                  paragraph (10) of subdivision (a)
                  of Section 43 of Chapter 79 of the
                  Statutes of 2006
       (8)        $6,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Agricultural
                  Career Technical Education Program
                  in Item 6110-167-0001 of the Budget
                  Act of 2008 (Chs. 268 and 269,
                  Stats. 2008)
       (9)        $973,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Class Size
                  Reduction Program in Item 6110-234-
                  0001 of the Budget Act of 2008
                  (Chs. 268 and 269, Stats. 2008)
       (10)       $422,000 or whatever greater or
                  lesser amount represents the
                  balance available from Schedule (1)
                  of Item 6870-101-0001 of the Budget
                  Act of 2006 (Chs. 47 and 48, Stats.
                  2006), as reappropriated in Item
                  6870-492 of the Budget Act of 2008
                  (Chs. 268 and 269, Stats. 2008)
       (11)       $902,000 or whatever greater or
                  lesser amount represents the
                  balance available from Schedules
                  (7), (8), and (19) of Item 6870-101-
                  0001 of the Budget Act of 2008
                  (Chs. 268 and 269, Stats. 2008)
       (12)       $1,039,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for Special Education
                  Instruction in Schedule (2) of Item
                  6110-161-0001 of the Budget Act of
                  2009 (Ch. 1, 2009-10 3rd Ex. Sess.,
                  as revised by Ch. 1, 2009-10 4th
                  Ex. Sess.)
       (13)       $82,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for Child Nutrition in
                  Item 6110-651-0001, pursuant to
                  Section 5 of Chapter 3 of the 2009-
                  10 Fourth Extraordinary Session, as
                  amended by Chapter 31 of the 2009-
                  10 Third Extraordinary Session
       (14)       $267,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Supplemental
                  School Counseling Program in Item
                  6110-108-0001 of the Budget Act of
                  2010 (Ch. 712, Stats. 2010)
       (15)       $15,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Special
                  Education Program in Schedule (2)
                  of Item 6110-161-0001 of the Budget
                  Act of 2010 (Ch. 712, Stats. 2010)
       (16)       $30,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the California
                  Partnership Academies in Item 6110-
                  166-0001 of the Budget Act of 2010
                  (Ch. 712, Stats. 2010)
       (17)       $418,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the California
                  High School Exit Exam Supplemental
                  Instruction program in Item 6110-
                  204-0001 of the Budget Act of 2010
                  (Ch. 712, Stats. 2010)
       (18)       $369,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of       the
                  amount appropriated for the Arts
                  and Music Block Grant program in
                  Item 6110-265-0001 of the Budget
                  Act of 2010 (Ch. 712, Stats. 2010)
       (19)       $18,677,000 or whatever greater or
                  lesser amount represents the
                  balance available from Schedules
                  (1), (7), (8), (9), and (19) of
                  Item 6870-101-0001 of the Budget
                  Act of 2009 (Ch. 1, 2009-10 3rd Ex.
                  Sess., as revised by Ch. 1, 2009-10
                  4th Ex. Sess.)
       (20)       $33,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Charter
                  Schools Facilities Grant Program in
                  paragraph (11) of subdivision (a)
                  of       Section 43 of Chapter 79
                  of the Statutes of 2006.
       (21)       $413,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Charter
                  Schools Facilities Grant Program
                  pursuant to Section 47614.5 of the
                  Education Code (Ch. 215, Stats.
                  2007).
       (22)       $18,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount

                         appropriated for the California
                  Partnership Academies in Item 6110-
                  166-0001 of the Budget Act of 2008
                  (Chs. 268 and 269, Stats. 2008).
       (23)       $201,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Supplemental
                  School Counseling Program in Item
                  6110-108-0001 of the Budget Act of
                  2009 (Ch. 1, 2009-10 3rd Ex. Sess.,
                  as revised by Ch. 1, 2009-10 4th
                  Ex. Sess.).
       (24)       $14,058,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for Special Education
                  Instruction in Schedule (1) of Item
                  6110-161-0001 of the Budget Act of
                  2009 (Ch. 1, 2009-10 3rd Ex. Sess.,
                  as revised by Ch. 1, 2009-10 4th
                  Ex. Sess.).
       (25)       $1,003,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the California
                  Partnership Academies in Item 6110-
                  166-0001 of the Budget Act of 2009
                  (Ch. 1, 2009-10 3rd Ex. Sess., as
                  revised by Ch. 1, 2009-10 4th Ex.
                  Sess.).
       (26)       $1,334,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Charter School
                  Economic Impact Aid Program in
                  Schedule (2) of Item 6110-211-0001
                  of the Budget Act of 2009 (Ch. 1,
                  2009-10 3rd Ex. Sess., as revised
                  by Ch. 1, 2009-10 4th Ex. Sess.).
       (27)       $1,275,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for Special Education
                  Instruction in Item 6110-650-0001
                  (pursuant to Sec. 5, Ch. 3, 2009-10
                  4th Ex. Sess., as revised by Ch.
                  31, 2009-10 3rd Ex. Sess.).
       (28)       $48,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the English
                  Language Tutoring program in Item
                  6110-227-0001 of the Budget Act of
                  2010 (Ch. 712, Stats. 2010).
       (29)       $29,000 or whatever       greater
                  or lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Physical
                  Education Incentive Grants program
                  in Item 6110-260-0001 of the Budget
                  Act of 2010 (Ch. 712, Stats. 2010).
       (30)       $18,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Certificated
                  Staff Mentoring program in Item
                  6110-267-0001 of the Budget Act of
                  2010 (Ch. 712, Stats. 2010).
       (31)       $5,337,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the After School
                  Education and       Safety program
                  in Item 6110-649-0001 in the 2008-
                  09 fiscal year, pursuant to
                  Sections 8483.5 and 8483.51 of the
                  Education Code.
       (32)       $713,000 or whatever greater or
                  lesser amount of the unexpended
                  balance of the amount appropriated
                  for the special education
                  instruction in Schedule (1) of Item
                  6110-161-0001 of the Budget Act of
                  2009 (Ch. 1, 2009-10 3rd Ex. Sess.,
                  as revised by Ch. 1, 2009-10 4th
                  Ex. Sess.)
       (33)       $56,717,000 or whatever greater or
                  lesser amount of the unexpended
                  balance of the amount appropriated
                  for special education instruction
                  in Schedule (1) of Item       6110-
                  161-0001 of the Budget Act of 2010
                  (Ch. 712, Stats. 2010)
       (34)       $4,000,000 or whatever greater or
                  lesser amount of the unexpended
                  balance of the amount appropriated
                  for the Child Nutrition Program in
                  Schedule (1) of Item 6110-203-0001
                  of the Budget Act of 2010 (Ch. 712,
                  Stats. 2010)
       (35)       $13,925,000 or whatever greater or
                  lesser amount of the unexpended
                  balance of the amount appropriated
                  for child care programs in
                  Schedules (1) and (1.5) of Item
                  6110-196-0001 of the Budget Act of
                  2009 (Ch. 1, 2009-10 3rd Ex. Sess.,
                  as revised by Ch. 1,       2009-10
                  4th Ex. Sess.)
       (36)       $32,314,000 or whatever greater or
                  lesser amount of the unexpended
                  balance of the amount appropriated
                  for Child Care Programs in Schedule
                  (1.5) of Item 6110-196-0001 of the
                  Budget Act of 2010 (Ch. 712, Stats.
                  2010)
       (37)       $11,663,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the After School
                  Education and Safety program in
                  Item 6110-649-0001 in the 2009-10
                  fiscal year, pursuant to Sections
                  8483.5 and 8483.51 of the Education
                  Code.
       (38)       $16,801,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the After School
                  Education and Safety program in
                  Item 6110-649-0001 in the 2010-11
                  fiscal year, pursuant to Sections
                  8483.5 and 8483.51 of the Education
                  Code.
       (39)       $45,000 or whatever greater or
                  lesser amount of the unexpended
                  balance of the amount appropriated
                  for Categorical Programs for
                  charter schools in Schedule (1) of
                  Item 6110-211-0001 of the Budget
                  Act of 2009 (Ch. 1, 2009-10 3rd Ex.
                  Sess., as revised by Ch. 1, 2009-10
                  4th Ex. Sess.)
       (40)       $5,000 or whatever greater or
                  lesser amount of the unexpended
                  balance of the amount appropriated
                  for English Language Development
                  Assessment in Item 6110-651-0001
                  pursuant to Section 5 of Chapter 3
                  of the 2009-10 Fourth Extraordinary
                  Session, as amended by Chapter 31
                  of the 2009-10 Third Extraordinary
                  Session.
       (41)       $652,000 or whatever greater or
                  lesser amount of the unexpended
                  balance of the amount appropriated
                  for Economic Impact Aid in Item
                  6110-128-0001 of the Budget Act of
                  2010 (Ch. 712, Stats. 2010)
       (42)       $722,000 or whatever greater or
                  lesser amount of the unexpended
                  balance of the amount appropriated
                  for the Early Education Program for
                  Individuals with Exceptional Needs
                  in Schedule (2) of Item 6110-161-
                  0001 of the Budget Act of 2010 (Ch.
                  712, Stats. 2010)
       (43)       $2,245,000 or whatever greater or
                  lesser amount of the unexpended
                  balance of the amount appropriated
                  for the Quality Education
                  Investment Act in the 2010-11
                  fiscal year pursuant to Section
                  52055.770 of the Education Code.
       (44)       $70,000,000 or whatever greater or
                  lesser amount of the unexpended
                  balance of the amount
                  appropriated for the Quality
                  Education Investment Act in the
                  2011-12 fiscal year pursuant to
                  Section 52055.770 of the Education
                  Code.
       Provisions:
       2.         The sum of $5,303,000 is hereby
                  reappropriated to the State
                  Department of Education for
                  transfer by the Controller to
                  Section A of the State School Fund
                  for allocation by the
                  Superintendent of Public
                  Instruction to support costs during
                  the 2011-12 fiscal year associated
                  with the Class Size Reduction
                  Program operated pursuant to
                  Chapter 6.10 (commencing with
                  Section 52120) of Part 28 of
                  Division 4 of Title 2 of the
                  Education Code.
       3.         The sum of $5,673,000 is hereby
                  reappropriated to the State
                  Department of Education for
                  transfer by the Controller to
                  Section A of the State School Fund
                  for       allocation by the
                  Superintendent of Public
                  Instruction to support California
                  School Information Services
                  administration activities
                  authorized pursuant to Schedule (2)
                  of Item 6110-140-0001.
       4.         The sum of $142,021,000 is hereby
                  reappropriated to the State
                  Department of Education for
                  transfer by the Controller to
                  Section A of the State School Fund
                  for allocation by the
                  Superintendent of Public
                  Instruction for apportionment for
                  special education programs pursuant
                  to Part 30 (commencing with Section
                  56000) of Division 4 of Title 2 of
                  the Education Code.
       5.         The sum of       $209,802,000 is
                  hereby reappropriated to the State
                  Department of Education for
                  transfer by the Controller to
                  Section A of the State School Fund
                  for allocation by the
                  Superintendent of Public
                  Instruction for apportionment for
                  special education programs pursuant
                  to Part 30 (commencing with Section
                  56000) of Division 4 of Title 2 of
                  the Education Code


   SEC. 8.   SEC. 9.   Item 6440-301-6048
is added to Section 2.00 of the Budget Act of 2012, to read:
6440-301-6048--For capital outlay,
University of California, payable from the
2006 University Capital Outlay Bond Fund .... 4,750,000
     Schedule:
     Merced Campus
     (1) 99.11.075-Classroom
         and Academic Office
         Building--Preliminary
         plans and       working
         drawings .................. 4,750,000
     Provisions:
     1.  Identified savings in funds
         encumbered from this general
         obligation bond fund for
         construction contracts for capital
         outlay projects, remaining after
         completion of a capital outlay
         project and upon resolution of all
         change orders and claims, may be
         used prior to the appropriation
         reversion date: (a) to begin working
         drawings for a project for which
         preliminary plan funds have been
         appropriated and the plans have been
         approved by the State Public Works
         Board consistent with the scope and
         cost approved by the
         Legislature as adjusted for
         inflation only, (b) to proceed
         further with the underground tank
         corrections program, (c) to perform
         engineering evaluations on buildings
         that have been identified as
         potentially in need of seismic
         retrofitting, (d) to proceed with
         design and construction of projects
         to meet requirements under the
         federal Americans with Disabilities
         Act of 1990 (42 U.S.C. Sec. 12101 et
         seq.), or (e) to fund minor capital
         outlay projects.
     2.  The funds provided in this item
         shall be available for expenditure
         only if the University of California
         requires the payment of prevailing
         wage rates by the contractors and
         subcontractors on all projects in
         this item and on all other capital
         outlay projects undertaken by the
         University of California that are
         funded using nonstate funds or are
         otherwise not financed with the
         funds appropriated in this item.
         This requirement shall represent a
         moratorium on granting further
         exceptions to paying prevailing wage
         rates until June 30, 2013.


   SEC. 9.   SEC. 10.   The Legislature
expects the University of California to enroll a total of 209,977
state-supported full-time equivalent students during the 2012-13
academic year. This enrollment target does not include nonresident
students and students enrolled in nonstate supported summer programs.
As a condition of receipt of funds pursuant to Item 6440-001-0001 of
Section 2.00 of the Budget Act of 2012, the University of California
shall report to the Legislature by May 1, 2013, on whether it has
met the 2012-13 academic year enrollment goal.
   SEC. 10.   SEC. 11.   The State Board of
Education and the Health and Human Services Agency, including the
Department of Health Care Services, the Department of Mental Health,
and the Department of Social Services, shall repeal regulations
related to mental health services provided by county mental health
agencies that are no longer supported by statute, including Sections
60020, 60025, 60030, 60040, 60045, 60050, 60055, 60100, 60110, and
60200 of Title 2 of the California Code of Regulations.
   SEC. 11.   SEC. 12.   This act is a bill
providing for appropriations related to the Budget Bill within the
meaning of subdivision (e) of Section 12 of Article IV of the
California Constitution, has been identified as related to the budget
in the Budget Bill, and shall take effect immediately.