Amended in Assembly April 3, 2013

California Legislature—2013–14 Regular Session

Assembly BillNo. 88


Introduced bybegin delete Committee on Budget (Blumenfield (Chair), Bloom, Bonilla, Chesbro, Daly, Dickinson, Gordon, Jones-Sawyer, Mitchell, Mullin, Muratsuchi, Nazarian, Rendon, Stone, and Ting)end deletebegin insert Assembly Member Buchananend insert

January 10, 2013


begin deleteAn act relating to the Budget Act of 2013. end deletebegin insertAn act to amend Sections 1240, 1622, 1630, 2573, 8092, 10554, 14002, 14002.1, 14003, 14022.3, 14041, 14041.6, 14501, 17005.3, 17008.3, 17193.5, 17199.4, 17582, 17592.74, 32282, 33127, 35186, 35292.5, 35735, 35735.1, 35736, 37700, 37710.3, 37710.5, 38101, 41003.3, 41012, 41020, 41202, 41303, 41320.1, 41329.55, 41332, 41334, 41335, 41341, 41344, 41601, 41601.5, 41601.7, 41800, 41972, 41975, 42127, 42127.8, 42238.15, 42238.20, 42280, 42281, 42282, 42283, 42284, 42285, 42285.5, 42286, 42287, 42401, 42800, 44279.2, 44279.25, 44279.7, 44320, 44328, 44944, 44955.5, 46140, 46141, 46145, 46200, 46201, 46201.2, 46202, 46300, 46300.1, 46300.7, 46392, 46602, 46603, 46607, 46610, 47604.33, 47610, 47613, 47613.1, 47630, 47631, 47632, 47634.3, 47634.4, 47635, 47636, 47650, 47651, 47660, 47662, 47663, 48206.3, 48208, 48310, 48359.5, 48660, 48667, 49430.5, 49536, 52052.5, 52055.750, 52301, 52302, 52302.2, 52302.8, 52302.9, 52306, 52309, 52314, 52315, 52319, 52321, 52324, 52327, 52327.5, 52328, 52329, 52334, 52335, 52335.12, 54690, 54691, 54692, 54695, 54699, 54750, 56365, 56366.1, 56836.21, 56836.24, 60119, 60851, 63000, 63001, and 64000, of, to amend the heading of Article 4 (commencing with Section 2570) of Chapter 12 of Part 2 of Division 1 of Title 1, and Article 7 (commencing with Section 60117) of Chapter 1 of Part 33 of Division 4 of Title 2 of, to amend and repeal Section 14022.5 of, to add Sections 35736.5, 42238.02, 42238.03, 42238.04, 42238.05, 42238.051, 42238.052, 42238.053, 46207, and 46208, to, to add Article 2 (commencing with Section 2574) to Chapter 12 of Part 2 of Division 1 of Title 1 and Article 3.8 (commencing with Section 52060) to Chapter 6.1 of Part 28 of Division 4 of Title 2 of, to repeal Sections 315.5, 316.5, 317, 1242, 1242.5, 1982, 1982.3, 1982.5, 1983.5, 14002.3, 14002.5, 14004, 14035, 14041.1, 14041.65, 14401.1, 17583, 17584, 17584.1, 17584.2, 17584.3, 17585, 17586, 17587, 17588, 17592, 32285, 35735.2, 35735.3, 35735.4, 39809.5, 41300, 41301, 41376, 41378, 41400, 41401, 41402, 41403, 41404, 41406, 41407, 41976, 41976.1, 41976.2, 41976.5, 42238, 42238.1, 42238.2, 42238.3, 42238.4, 42238.41, 42238.42, 42238.43, 42238.44, 42238.445, 42238.45, 42238.46, 42238.48, 42238.485, 42238.49, 42238.5, 42238.51, 42238.52, 42238.53, 42238.6, 42238.7, 42238.75, 42238.8, 42238.9, 42238.95, 42238.11, 42238.12, 42238.13, 42238.14, 42238.145, 42238.146, 42238.17, 42238.18, 42238.23, 42238.24, 42239, 42240, 42240.1, 42241.3, 42241.7, 42242, 42245, 42243.7, 42244, 42245, 42251, 42282.1, 42283.1, 42283.2, 42285.1, 42285.4, 42289, 42289.1, 42289.2, 42289.3, 42289.4, 42289.5, 42289.6, 42604, 42605, 42606, 45037, 46010.2, 46013, 46013.7, 46140.5, 46144, 46201.1, 46201.3, 46201.6, 46203, 46204, 46306, 46606, 47612.7, 47613.2, 47630.5, 47632.5, 47633, 47634.1, 47664, 48200.7, 48660.2, 48663, 48664, 49452.8, 51056, 52051, 52052.2, 52301.3, 52324.5, 52335.1, 52335.2, 52335.3, 52335.4, 52335.5, 52335.6, 54693, 60117, 60118, 62002, 62002.5, 62003, 62004, 62005, and 62005.5, of, to repeal Article 9 (commencing with Section 1780), Article 10 (commencing with Section 1790), Article 11 (commending with Section 1830), Article 14.5 (commencing with Section 1900), Article 14.7 (commencing with Section 1915), and Article 17 (commencing with Section 1940) of Chapter 6 of Part 2 of Division 1 of Title 1, Article 1 (commencing with Section 2509), Article 3 (commencing with Section 2550), and Article 3.5 (commencing with Section 2560) of Chapter 12 of Part 2 of Division 1 of Title 1, Article 3 (commencing with Section 8070), Article 4 (commencing with Section 8080), and Article 8 (commencing with Section 8150) of Chapter 1 of Part 6 of Division 1 of Title 1, Article 3.6 (commencing with Section 32228) of Chapter 2 of Part 19 of Division 1 of Title 1, Article 10.4 (commencing with Section 35294.10) of Chapter 2 of Part 21 of Division 3 of Title 2, Article 4 (commencing with Section 37252) of Chapter 2 of Part 22 of Division 3 of Title 2, Article 2 (commencing with Section 39820) of Chapter 1 of Part 23.5 of Division 3 of Title 2, Article 9 (commencing with Section 41840), Article 10 (commencing with Section 41850), Article 10.5 (commencing with Section 41860), Article 11 (commencing with Section 41880), and Article 13 (commencing with Section 41920) of Chapter 5 of Part 24 of Division 3 of Title 2, Article 3 (commencing with Section 42260) of Chapter 7 of Part 24 of Division 3 of Title 2, Article 4.5 (commencing with Section 42290) and Article 4.7 (commencing with Section 42300) of Chapter 7 of Part 24 of Division 3 of Title 2, Article 11 (commencing with Section 44380), Article 12 (commencing with Section 44390), and Article 13 (commencing with Section 44395) of Chapter 2 of Part 25 of Division 3 of Title 2, Article 4.5 (commencing with Section 44500), Article 5 (commencing with Section 44520), Article 6 (commencing with Section 44560), Article 7 (commencing with Section 44570), Article 8 (commencing with Section 44580), Article 10 (commencing with Section 44630), Article 10.5 (commencing with Section 44645), and Article 10.6 (commencing with Section 44650) of Chapter 3 of Part 25 of Division 3 of Title 2, Article 3 (commencing with Section 44681) of Chapter 3.1 of Part 25 of Division 3 of Title 2, Article 8.5 (commencing with Section 45370) of Chapter 5 of Part 25 of Division 3 of Title 2, Article 7 (commencing with Section 46190) of Chapter 2 of Part 26 of Division 4 of Title 2, Article 5 (commencing with Section 46351) of Chapter 3 of Part 26 of Division 4 of Title 2, Article 2 (commencing with Section 48640) of Chapter 4 of Part 27 of Division 4 of Title 2, Article 15 (commencing with Section 51870) of Chapter 5 of Part 28 of Division 4 of Title 2, Article 3 (commencing with Section 52053), Article 3.5 (commencing with Section 52055.600), and Article 4 (commencing with Section 52056) of Chapter 6.1 of Part 28 of Division 4 of Title 2, Article 1.7 (commencing with Section 52336), Article 2 (commencing with Section 52340), Article 3 (commencing with Section 52350), Article 4 (commencing with Section 52370), Article 4.5 (commencing with Section 52378), Article 5 (commencing with Section 52381), Article 7 (commencing with Section 52450), Article 7.5 (commencing with Section 52460), Article 8 (commencing with Section 52480), and Article 9 (commencing with Section 52485) of Chapter 9 of Part 28 of Division 4 of Title 2, Article 1 (commencing with Section 52500), Article 3 (commencing with Section 52540), Article 4 (commencing with Section 52550), Article 5 (commencing with Section 52570), and Article 6 (commencing with Section 52610) of Chapter 10 of Part 28 of Division 4 of Title 2, Article 4 (commencing with Section 52750) of Chapter 11 of Part 28 of Division 4 of Title 2, Article 1 (commencing with Section 52800) of Chapter 12 of Part 28 of Division 4 of Title 2, Article 7.1 (commencing with Section 54740) and Article 7.7 (commencing with Section 54760) of Chapter 9 of Part 29 of Division 4 of Title 2, and Article 3 (commencing with Section 60240) and Article 7 (commencing with Section 60350) of Chapter 2 of Part 33 of Division 4 of Title 2, of, to repeal Chapter 3 (commencing with Section 8500), Chapter 5.1 (commencing with Section 8820), and Chapter 9 (commencing with Section 8980) of Part 6 of Division 1 of Title 1 of, Chapter 13 (commencing with Section 11200) and Chapter 17 (commencing with Section 11600) of Part 7 of Division 1 of Title 1, Chapter 2.5 (commencing with Section 37300) of Part 22 of Division 3 of Title 2, Chapter 3.2 (commencing with Section 41500) of Part 24 of Division 3 of Title 2, Chapter 11.3 (commencing with Section 42920), Chapter 11.5 (commencing with Section 42950), and Chapter 12 (commencing with Section 43001.5) of Part 24 of Division 3 of Title 2, Chapter 3.3 (commencing with Section 44700), Chapter 3.33 (commencing with Section 44720), Chapter 3.34 (commencing with Section 44730), Chapter 3.36 (commencing with Section 44735), Chapter 3.45 (commencing with Section 44755), and Chapter 3.5 (commencing with Section 44760) of Part 25 of Division 3 of Title 2, Chapter 6.8 (commencing with Section 52080), Chapter 6.9 (commencing with Section 52100), Chapter 6.10 (commencing with Section 52120), Chapter 7 (commencing with Section 52130), Chapter 8 (commencing with Section 52200), Chapter 8.3 (commencing with Section 52240), Chapter 8.5 (commencing with Section 52250), and Chapter 8.6 (commencing with Section 52270) of Part 28 of Division 4 of Title 2, Chapter 10.5 (commencing with Section 52651), Chapter 12.5 (commencing with Section 52920), Chapter 13 (commencing with Section 52910), and Chapter 17 (commencing with Section 53080) of Part 28 of Division 4 of Title 2, Chapter 1 (commencing with Section 54000) and Chapter 2 (commencing with Section 54100) of Part 29 of Division 4 of Title 2, and Chapter 3.1 (commencing with Section 58520), Chapter 5 (commencing with Section 58700), Chapter 6 (commencing with Section 58800) of Part 31 of Division 4 of Title 2, and Chapter 4 (commencing with Section 60500) of Part 33 of Division 4 of Title 2 of, and to repeal Part 10.7 (commencing with Section 17910) of Division 1 of Title 1 of, the Education Code, to amend Sections 7906 and 50286 of the Government Code, to amend Sections 33492.78, 33607.5, and 33684 of the Health and Safety Code, to amend Sections 95 and 196.4 of the Revenue and Taxation Code, and to amend Section 903.7 of the Welfare and Institutions Code, relating to school finance, and making an appropriation thereforend insertbegin insert.end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 88, as amended, begin deleteCommittee on Budgetend delete begin insertBuchananend insert. begin deleteBudget Act of 2013. end deletebegin insertSchool finance: new pupil funding formula.end insert

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(1) Existing law establishes the public school system in this state, and, among other things, provides for the establishment of county superintendents of schools, school districts, and charter schools throughout the state and for their provision of instruction at the public elementary and secondary schools these local educational agencies maintain. Existing law establishes a public school financing system that requires funding for county superintendents of schools and school districts to be calculated pursuant to a revenue limit, as specified, and requires funding for charter schools to be calculated pursuant to a general-purpose entitlement, except as provided, and requires the revenue limit and general-purpose entitlement to be composed of, among other things, state aid and certain local revenues. Existing law also establishes various categorical education programs under which funding is provided for specific educational purposes, including, among many other programs, programs for home-to-school transportation, adult education, teacher training, and class size reduction.

end insert
begin insert

This bill would revise and recast the provisions related to the public school financing system by requiring state funding for county superintendents of schools, school districts, and charter schools that previously received a general-purpose entitlement, to be calculated pursuant to a local control funding formula, as specified. The bill would repeal many provisions requiring or authorizing categorical education programs, including those related to conservation schools operated by a county superintendent of schools, apprenticeship programs, training for mathematics teachers, gifted and talented pupils, and home economics. As to most other categorical education programs, the bill would repeal provisions mandating their performance and requiring dedicated state funding for that performance, and instead would authorize local educational agencies to expend the funds previously required to be spent for the categorical education programs, including, among others, programs for home-to-school transportation, adult education, teacher training, and class size reduction, for any local educational purpose.

end insert
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This bill would also change the funding calculations for necessary small schools and make other changes related to shifting financial responsibilities.

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(2) Existing law requires a county board of education, a governing board of a school district, and a governing body of a charter school, to annually adopt a budget, as specified.

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This bill would require a county board of education, a governing board of a school district, and a governing body of a charter school that receives its funding directly, as specified, to annually adopt or revise a local control and accountability plan that aligns with the annual budget and contains certain elements and that, among other things, was developed in consultation with teachers, principals, administrators, other school personnel, parents, and pupils. By requiring county boards of education and school districts to annually adopt or revise a local control and accountability plan, the bill would impose a state-mandated local program.

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(3) Existing law requires the reimbursement a school receives for free and reduced-price meals sold or served to pupils, as specified, to be made at a specified rate.

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This bill would instead require that the reimbursement a school receives for free and reduced-price meals sold or served to pupils, as specified, be made at a rate specified in the annual Budget Act.

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(4) This bill would appropriate $1,630,222,000 to the Superintendent of Public Instruction for purposes of allocating those funds to county superintendents of schools, school districts, and charter schools pursuant to the local control funding formula for those local educational agencies.

end insert
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(5) This bill would make conforming changes, correct cross-references, and make other nonsubstantive changes.

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(6) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

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This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

end insert
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(7) 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.

end insert
begin delete

This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2013.

end delete

Vote: majority. Appropriation: begin deleteno end deletebegin insertyesend insert. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: begin deleteno end deletebegin insertyesend insert.

The people of the State of California do enact as follows:

P7    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 315.5 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
2

315.5.  

(a) In furtherance of its constitutional and legal
3requirement to offer special language assistance to children coming
4from backgrounds of limited English proficiency, the state shall
5encourage family members and others to provide personal English
6language tutoring to those children, and support these efforts by
7raising the general level of English language knowledge in the
8community.

9(b) Programs funded under this section shall be provided through
10schools or community organizations.

11(c) Funding for programs authorized under this section shall be
12provided pursuant to an appropriation in the annual Budget Act.
13Funds shall be apportioned to the Superintendent for disbursement
14to school districts for the purpose of providing funding under this
15section for free or subsidized programs of adult English language
16instruction to parents or other members of the community who
17pledge to provide personal English language tutoring to improve
18the English language proficiency of California school children
19with limited English proficiency.

end delete
20begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 316.5 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
21

316.5.  

(a) The Legislature finds and declares all of the
22following:

23(1) The more a parent or guardian is involved in the education
24of his or her child the better the child will perform in school.

25(2) English language proficiency is critical to academic success.

26(b) As a condition for receiving funding under Section 315.5
27for the 2007-08 fiscal year, each school district shall develop a
28plan, to be approved by the governing board of the school district,
29certifying that it will do all of the following:

30(1) Emphasize English language acquisition and tutoring skills
31for parents whose primary language is not English.

P8    1(2) Whenever possible, operate Community-Based English
2Tutoring (CBET) Programs at neighborhood schoolsites in order
3to provide full articulation between CBET Programs and
4instructional programs for school-aged English language learners.

5(3) Describe in its plan how the program will encourage the
6following:

7(A) Opportunities for parent-child tutoring activities.

8(B) Opportunities for the parent to become involved at the school
9that his or her child attends.

10(4) Describe how the program will document the following:

11(A) Literacy training for adults that leads to English fluency
12and the ability to provide educational support for children.

13(B) Development of tutoring skills.

14(5) Describe the projected goals of the program with respect to
15participant educational achievement and the manner in which the
16agency will measure and report progress in meeting its goals.

17(6) Describe the manner in which the program will leverage
18available funding from federal, state, and local sources in the area
19proposed to be served by the agency.

20(7) Include a program to recruit parents of K-12 English
21language learners, especially parents of pupils enrolled in K-12
22schools that are eligible to participate in the High Priority Schools
23Grant Program established under Article 3.5 (commencing with
24Section 52055.600) of Chapter 6.1 of Part 28.

25(8) The plan shall demonstrate that the CBET Program meets
26the following objectives in order to ensure that adult students in
27the CBET Program provide the best possible tutoring to K-12
28English language learners:

29(A) The adult students participating in the CBET Program shall
30make measurable English language learning progress.

31(B) The CBET Program shall be administered in accordance
32with research-based strategies for teaching English language
33learners.

34(C) The data collected under Section 317 shall be used by CBET
35administrators and staff to inform curriculum, instruction,
36assessment, research, and in-service staff development.

37(c) As a condition for receiving funding under Section 315.5
38for the 2008-09 fiscal year and for each fiscal year thereafter, the
39governing board of the school district shall review, revise as
40necessary, and approve the plan. The plan shall be reviewed, and
P9    1revised as necessary, not less than once every three years. During
2its review, the governing board shall consider the data collected
3under Section 317.

4(d) For the purposes of this section, the term “parent” includes
5a parent, legal guardian, primary caregiver, or an individual in loco
6parentis.

end delete
7begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 317 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
8

317.  

(a) As a condition for receiving funds under Section 315.5
9in any fiscal year, a school district shall collect the following data
10for use in updating its plans and to make available to the state as
11requested:

12(1) Improvement in adult English-as-a-second-language literacy
13skill levels in reading, writing, and speaking the English language,
14numeracy, problemsolving, and other literacy skills.

15(2) Improvements in the attendance of pupils with
16limited-English-language proficiency who have received tutoring
17from adults who have been identified as participants in programs
18established pursuant to Sections 315, 315.5, 316, and 316.5.

19(b) A school district that receives funding under Section 315.5
20shall provide a pretest and a posttest of reading achievement for
21adult English-as-a-second-language pupils.

22(c) The district shall review individual K-12 pupil data from
23the English language development test administered under Section
2460810 and the Standardized Testing and Reporting (STAR)
25Program set forth in Article 4 (commencing with Section 60640)
26of Chapter 5 of Part 33, in order to determine whether there has
27been achievement progress made by K-12 pupils who were tutored
28by Community-Based English Tutoring (CBET) Program students.

end delete
29begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 1240 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
30read:end insert

31

1240.  

The county superintendent of schools shall do all of the
32following:

33(a) Superintend the schools of his or her county.

34(b) Maintain responsibility for the fiscal oversight of each school
35district in his or her county pursuant to the authority granted by
36this code.

37(c) (1) Visit and examine each school in his or her county at
38reasonable intervals to observe its operation and to learn of its
39problems. He or she annually may present a report of the state of
40the schools in his or her county, and of his or her office, including,
P10   1but not limited to, his or her observations while visiting the schools,
2to the board of education and the board of supervisors of his or
3her county.

4(2) (A) For fiscal years 2004-05 to 2006-07, inclusive, to the
5extent that funds are appropriated for purposes of this paragraph,
6the county superintendent, or his or her designee, annually shall
7submit a report, at a regularly scheduled November board meeting,
8to the governing board of each school district under his or her
9jurisdiction, the county board of education of his or her county,
10and the board of supervisors of his or her county describing the
11state of the schools in the county or of his or her office that are
12ranked in deciles 1 to 3, inclusive, of the 2003 base Academic
13Performance Index (API), asbegin delete definedend deletebegin insert describedend insert in subdivision (b)
14of Section 17592.70, and shall include, among other things, his or
15her observations while visiting the schools and his or her
16determinations for each school regarding the status of all of the
17circumstances listed in subparagraphbegin delete (J)end deletebegin insert (I)end insert and teacher
18misassignments and teacher vacancies. As a condition for receipt
19of funds, the county superintendent, or his or her designee, shall
20use a standardized template to report the circumstances listed in
21subparagraphbegin delete (J)end deletebegin insert (I)end insert and teacher misassignments and teacher
22vacancies, unless the current annual report being used by the county
23superintendent, or his or her designee, already includes those details
24for each school.

25(B) Commencing with the 2007-08 fiscal year, to the extent
26that funds are appropriated for purposes of this paragraph, the
27county superintendent, or his or her designee, annually shall submit
28a report, at a regularly scheduled November board meeting, to the
29governing board of each school district under his or her jurisdiction,
30the county board of education of his or her county, and the board
31of supervisors of his or her county describing the state of the
32schools in the county or of his or her office that are ranked in
33deciles 1 to 3, inclusive, of the 2006 base API, pursuant to Section
3452056. As a condition for the receipt of funds, the annual report
35shall include the determinations for each school made by the county
36superintendent, or his or her designee, regarding the status of all
37of the circumstances listed in subparagraphbegin delete (J)end deletebegin insert (I)end insert and teacher
38misassignments and teacher vacancies, and the county
39superintendent, or his or her designee, shall use a standardized
40template to report the circumstances listed in subparagraphbegin delete (J)end deletebegin insert (I)end insert
P11   1 and teacher misassignments and teacher vacancies, unless the
2current annual report being used by the county superintendent, or
3his or her designee, already includes those details with the same
4level of specificity that is otherwise required by this subdivision.
5For purposes of this section, schools ranked in deciles 1 to 3,
6inclusive, on the 2006 base API shall include schools determined
7by the department to meet either of the following:

8(i) The school meets all of the following criteria:

9(I) Does not have a valid base API score for 2006.

10(II) Is operating in fiscal year 2007-08 and was operating in
11fiscal year 2006-07 during the Standardized Testing and Reporting
12(STAR) Program testing period.

13(III) Has a valid base API score for 2005 that was ranked in
14deciles 1 to 3, inclusive, in that year.

15(ii) The school has an estimated base API score for 2006 that
16would be in deciles 1 to 3, inclusive.

17(C) The department shall estimate an API score for any school
18meeting the criteria of subclauses (I) and (II) of clause (i) of
19subparagraph (B) and not meeting the criteria of subclause (III)
20of clause (i) of subparagraph (B), using available test scores and
21weighting or corrective factors it deems appropriate. The
22department shall post the API scores on its Internet Web site on
23or before May 1.

24(D) For purposes of this section, references to schools ranked
25in deciles 1 to 3, inclusive, on the 2006 base API shall exclude
26schools operated by county offices of education pursuant to Section
2756140, as determined by the department.

begin delete

28(E) In addition to the requirements above, the county
29superintendent, or his or her designee, annually shall verify both
30of the following:

31(i) That pupils who have not passed the high school exit
32examination by the end of grade 12 are informed that they are
33entitled to receive intensive instruction and services for up to two
34consecutive academic years after completion of grade 12 or until
35the pupil has passed both parts of the high school exit examination,
36 whichever comes first, pursuant to paragraphs (4) and (5) of
37subdivision (d) of Section 37254.

38(ii) That pupils who have elected to receive intensive instruction
39and services, pursuant to paragraphs (4) and (5) of subdivision (d)
40of Section 37254, are being served.

end delete
begin delete

P12   1(F)

end delete

2begin insert(E)end insert (i) Commencing with the 2010-11 fiscal year and every
3third year thereafter, the Superintendent shall identify a list of
4schools ranked in deciles 1 to 3, inclusive, of the API for which
5the county superintendent, or his or her designee, annually shall
6submit a report, at a regularly scheduled November board meeting,
7to the governing board of each school district under his or her
8jurisdiction, the county board of education of his or her county,
9and the board of supervisors of his or her county that describes the
10state of the schools in the county or of his or her office that are
11ranked in deciles 1 to 3, inclusive, of the base API as defined in
12clause (ii).

13(ii) For the 2010-11 fiscal year, the list of schools ranked in
14deciles 1 to 3, inclusive, of the base API shall be updated using
15the criteria set forth in clauses (i) and (ii) of subparagraph (B),
16subparagraph (C), and subparagraph (D), as applied to the 2009
17base API and thereafter shall be updated every third year using
18the criteria set forth in clauses (i) and (ii) of subparagraph (B),
19subparagraph (C), and subparagraph (D), as applied to the base
20API of the year preceding the third year consistent with clause (i).

21(iii) As a condition for the receipt of funds, the annual report
22shall include the determinations for each school made by the county
23superintendent, or his or her designee, regarding the status of all
24of the circumstances listed in subparagraphbegin delete (J)end deletebegin insert (I)end insert and teacher
25misassignments and teacher vacancies, and the county
26superintendent, or his or her designee, shall use a standardized
27template to report the circumstances listed in subparagraphbegin delete (J)end deletebegin insert (I)end insert
28 and teacher misassignments and teacher vacancies, unless the
29current annual report being used by the county superintendent, or
30 his or her designee, already includes those details with the same
31level of specificity that is otherwise required by this subdivision.

begin delete

32(G)

end delete

33begin insert(F)end insert The county superintendent of the Counties of Alpine,
34Amador, Del Norte, Mariposa, Plumas, and Sierra, and the City
35and County of San Francisco shall contract with another county
36office of education or an independent auditor to conduct the
37required visits and make all reports required by this paragraph.

begin delete

38(H)

end delete

39begin insert(G)end insert On a quarterly basis, the county superintendent, or his or
40her designee, shall report the results of the visits and reviews
P13   1conducted that quarter to the governing board of the school district
2at a regularly scheduled meeting held in accordance with public
3notification requirements. The results of the visits and reviews
4shall include the determinations of the county superintendent, or
5his or her designee, for each school regarding the status of all of
6the circumstances listed in subparagraphbegin delete (J)end deletebegin insert (I)end insert and teacher
7misassignments and teacher vacancies. If the county
8superintendent, or his or her designee, conducts no visits or reviews
9in a quarter, the quarterly report shall report that fact.

begin delete

10(I)

end delete

11begin insert(H)end insert The visits made pursuant to this paragraph shall be
12conducted at least annually and shall meet the following criteria:

13(i) Minimize disruption to the operation of the school.

14(ii) Be performed by individuals who meet the requirements of
15Section 45125.1.

16(iii) Consist of not less than 25 percent unannounced visits in
17each county. During unannounced visits in each county, the county
18superintendent shall not demand access to documents or specific
19school personnel. Unannounced visits shall only be used to observe
20the condition of school repair and maintenance, and the sufficiency
21of instructional materials, as defined by Section 60119.

begin delete

22(J)

end delete

23begin insert(I)end insert The priority objective of the visits made pursuant to this
24paragraph shall be to determine the status of all of the following
25circumstances:

26(i) Sufficient textbooks as defined in Section 60119 and as
27specified in subdivision (i).

28(ii) The condition of a facility that poses an emergency or urgent
29threat to the health or safety of pupils or staff as defined in district
30policy or paragraph (1) of subdivision (c) of Section 17592.72.

31(iii) The accuracy of data reported on the school accountability
32report card with respect to the availability of sufficient textbooks
33and instructional materials, as defined by Section 60119, and the
34safety, cleanliness, and adequacy of school facilities, including
35good repair as required by Sections 17014, 17032.5, 17070.75,
36and 17089.

begin delete

37(iv) The extent to which pupils who have not passed the high
38school exit examination by the end of grade 12 are informed that
39they are entitled to receive intensive instruction and services for
40up to two consecutive academic years after completion of grade
P14   112 or until the pupil has passed both parts of the high school exit
2examination, whichever comes first, pursuant to paragraphs (4)
3and (5) of subdivision (d) of Section 37254.

end delete
begin delete

4(v) The extent to which pupils who have elected to receive
5intensive instruction and services, pursuant to paragraphs (4) and
6(5) of subdivision (d) of Section 37254, are being served.

end delete
begin delete

7(K)

end delete

8begin insert(J)end insert The county superintendent may make the status
9determinations described in subparagraphbegin delete (J)end deletebegin insert (I)end insert during a single
10visit or multiple visits. In determining whether to make a single
11visit or multiple visits for this purpose, the county superintendent
12shall take into consideration factors such as cost-effectiveness,
13disruption to the schoolsite, deadlines, and the availability of
14qualified reviewers.

begin delete

15(L)

end delete

16begin insert(K)end insert If the county superintendent determines that the condition
17of a facility poses an emergency or urgent threat to the health or
18safety of pupils or staff asbegin delete defined inend deletebegin insert described in schoolend insert district
19policy or paragraph (1) of subdivision (c) of Section 17592.72, or
20is not in good repair, as specified in subdivision (d) of Section
2117002 and required by Sections 17014, 17032.5, 17070.75, and
2217089, the county superintendent, among other things, may do any
23of the following:

24(i) Return to the school to verify repairs.

25(ii) Prepare a report that specifically identifies and documents
26the areas or instances of noncompliance if thebegin insert schoolend insert district has
27not provided evidence of successful repairs within 30 days of the
28visit of the county superintendent or, for major projects, has not
29provided evidence that the repairs will be conducted in a timely
30manner. The report may be provided to the governing board of the
31school district. If the report is provided to the school district, it
32shall be presented at a regularly scheduled meeting held in
33accordance with public notification requirements. The county
34superintendent shall post the report on his or her Internet Web site.
35The report shall be removed from the Internet Web site when the
36county superintendent verifies the repairs have been completed.

37(d) Distribute all laws, reports, circulars, instructions, and blanks
38that he or she may receive for the use of the school officers.

39(e) Annually, on or before August 15, present a report to the
40governing board of the school district and the Superintendent
P15   1regarding the fiscal solvency of a school district with a disapproved
2budget, qualified interim certification, or a negative interim
3certification, or that is determined to be in a position of fiscal
4uncertainty pursuant to Section 42127.6.

5(f) Keep in his or her office the reports of the Superintendent.

6(g) Keep a record of his or her official acts, and of all the
7proceedings of the county board of education, including a record
8of the standing, in each study, of all applicants for certificates who
9have been examined, which shall be open to the inspection of an
10applicant or his or her authorized agent.

11(h) Enforce the course of study.

12(i) (1) Enforce the use of state textbooks and instructional
13materials and of high school textbooks and instructional materials
14regularly adopted by the proper authority in accordance with
15Section 51050.

16(2) For purposes of this subdivision, sufficient textbooks or
17instructional materials has the same meaning as in subdivision (c)
18of Section 60119.

19(3) (A) Commencing with the 2005-06 school year, if a school
20is ranked in any of deciles 1 to 3, inclusive, of the base API, as
21specified in paragraph (2) of subdivision (c), and not currently
22under review pursuant to a state or federal intervention program,
23the county superintendent specifically shall review that school at
24least annually as a priority school. A review conducted for purposes
25of this paragraph shall be completed by the fourth week of the
26school year. For the 2004-05 fiscal year only, the county
27superintendent shall make a diligent effort to conduct a visit to
28each school pursuant to this paragraph within 120 days of receipt
29of funds for this purpose.

30(B) In order to facilitate the review of instructional materials
31before the fourth week of the school year, the county superintendent
32in a county with 200 or more schools that are ranked in any of
33deciles 1 to 3, inclusive, of the base API, as specified in paragraph
34(2) of subdivision (c), may utilize a combination of visits and
35written surveys of teachers for the purpose of determining
36sufficiency of textbooks and instructional materials in accordance
37with subparagraph (A) of paragraph (1) of subdivision (a) of
38Section 60119 and as defined in subdivision (c) of Section 60119.
39If a county superintendent elects to conduct written surveys of
40teachers, the county superintendent shall visit the schools surveyed
P16   1within the same academic year to verify the accuracy of the
2information reported on the surveys. If a county superintendent
3 surveys teachers at a school in which the county superintendent
4has found sufficient textbooks and instructional materials for the
5previous two consecutive years and determines that the school
6does not have sufficient textbooks or instructional materials, the
7county superintendent shall within 10 business days provide a copy
8of the insufficiency report to the school district as set forth in
9paragraph (4).

10(C) For purposes of this paragraph, “written surveys” may
11include paper and electronic or online surveys.

12(4) If the county superintendentbegin insert of schoolsend insert determines that a
13school does not have sufficient textbooks or instructional materials
14in accordance with subparagraph (A) of paragraph (1) of
15subdivision (a) of Section 60119 and as defined by subdivision (c)
16of Section 60119, the county superintendent shall do all of the
17following:

18(A) Prepare a report that specifically identifies and documents
19the areas or instances of noncompliance.

20(B) Provide within five business days of the review, a copy of
21the report to the school district, as provided in subdivision (c), or,
22if applicable, provide a copy of the report to the school district
23within 10 business days pursuant to subparagraph (B) of paragraph
24(3).

25(C) Provide the school district with the opportunity to remedy
26the deficiency. The county superintendent shall ensure remediation
27of the deficiency no later than the second month of the school term.

28(D) If the deficiency is not remedied as required pursuant to
29subparagraph (C), the county superintendent shall request the
30 department to purchase the textbooks or instructional materials
31necessary to comply with the sufficiency requirement of this
32subdivision. If the department purchases textbooks or instructional
33materials for the school district, the department shall issue a public
34statement at the first regularly scheduled meeting of the state board
35occurring immediately after the department receives the request
36of the county superintendent and that meets the applicable public
37notice requirements, indicating that the district superintendent and
38the governing board of the school district failed to provide pupils
39with sufficient textbooks or instructional materials as required by
40this subdivision. Before purchasing the textbooks or instructional
P17   1materials, the department shall consult with thebegin insert schoolend insert district to
2determine which textbooks or instructional materials to purchase.
3begin delete All purchases of textbooks or instructional materials shall comply
4with Chapter 3.25 (commencing with Section 60420) of Part 33.end delete

5 The amount of funds necessary for the purchase of the textbooks
6and materials is a loan to the school district receiving the textbooks
7or instructional materials. Unless the school district repays the
8amount owed based upon an agreed-upon repayment schedule with
9the Superintendent, the Superintendent shall notify the Controller
10and the Controller shall deduct an amount equal to the total amount
11used to purchase the textbooks and materials from the next
12principal apportionment of thebegin insert schoolend insert district or from another
13apportionment of state funds.

14(j) Preserve carefully all reports of school officers and teachers.

15(k) Deliver to his or her successor, at the close of his or her
16official term, all records, books, documents, and papers belonging
17to the office, taking a receipt for them, which shall be filed with
18the department.

19(l) (1) Submit two reports during the fiscal year to the county
20board of education in accordance with the following:

21(A) The first report shall cover the financial and budgetary status
22of the county office of education for the period ending October
2331. The second report shall cover the period ending January 31.
24Both reports shall be reviewed by the county board of education
25and approved by the county superintendent no later than 45 days
26after the close of the period being reported.

27(B) As part of each report, the county superintendent shall certify
28in writing whether or not the county office of education is able to
29meet its financial obligations for the remainder of the fiscal year
30and, based on current forecasts, for two subsequent fiscal years.
31The certifications shall be classified as positive, qualified, or
32negative, pursuant to standards prescribed by the Superintendent,
33forbegin delete theend delete purposes of determining subsequent state agency actions
34pursuant to Section 1240.1. For purposes of this subdivision, a
35negative certification shall be assigned to a county office of
36education that, based upon current projections, will not meet its
37financial obligations for the remainder of the fiscal year or for the
38subsequent fiscal year. A qualified certification shall be assigned
39to a county office of education that may not meet its financial
40obligations for the current fiscal year or two subsequent fiscal
P18   1years. A positive certification shall be assigned to a county office
2of education that will meet its financial obligations for the current
3fiscal year and subsequent two fiscal years. In accordance with
4those standards, the Superintendent may reclassify a certification.
5If a county office of education receives a negative certification,
6the Superintendent, or his or her designee, may exercise the
7authority set forth in subdivision (c) of Section 1630. Copies of
8each certification, and of the report containing that certification,
9shall be sent to the Superintendent at the time the certification is
10submitted to the county board of education. Copies of each
11qualified or negative certification and the report containing that
12certification shall be sent to the Controller at the time the
13certification is submitted to the county board of education.

14(i) For the 2011-12 fiscal year, notwithstanding any of the
15standards and criteria adopted by the state board pursuant to Section
1633127, each county office of education budget shall project the
17same level of revenue per unit of average daily attendance as it
18received in the 2010-11 fiscal year and shall maintain staffing and
19program levels commensurate with that level.

20(ii) For the 2011-12 fiscal year, the county superintendent shall
21not be required to certify in writing whether or not the county
22office of education is able to meet its financial obligations for the
23two subsequent fiscal years.

24(iii) For the 2011-12 fiscal year, notwithstanding any of the
25standards and criteria adopted by the state board pursuant to Section
2633127, the Superintendent, as a condition on approval of a county
27office of education budget, shall not require a county office of
28education to project a lower level of revenue per unit of average
29daily attendance than it received in the 2010-11 fiscal year nor
30require the county superintendent to certify in writing whether or
31not the county office of education is able to meet its financial
32obligations for the two subsequent fiscal years.

33(2) All reports and certifications required under this subdivision
34shall be in a format or on forms prescribed by the Superintendent,
35and shall be based on standards and criteria for fiscal stability
36adopted by the state board pursuant to Section 33127. The reports
37and supporting data shall be made available by the county
38superintendent to an interested party upon request.

39(3) This subdivision does not preclude the submission of
40additional budgetary or financial reports by the county
P19   1superintendent to the county board of education or to the
2Superintendent.

3(4) The county superintendent is not responsible for the fiscal
4oversight of the community colleges in the county, however, he
5or she may perform financial services on behalf of those
6community colleges.

7(m) If requested, act as agent for the purchase of supplies for
8the city and high school districts of his or her county.

9(n) For purposes of Section 44421.5, report to the Commission
10on Teacher Credentialing the identity of a certificated person who
11knowingly and willingly reports false fiscal expenditure data
12relative to the conduct of an educational program. This requirement
13applies only if, in the course of his or her normal duties, the county
14superintendent discovers information that gives him or her
15reasonable cause to believe that false fiscal expenditure data
16relative to the conduct of an educational program has been reported.

17begin insert

begin insertSEC. 5.end insert  

end insert

begin insertSection 1242 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
18

1242.  

(a) Commencing with the 2006-07 fiscal year, funds
19appropriated pursuant to Item 6110-266-0001 of Section 2.0 of
20Chapter 47 of the Statutes of 2006 to county offices of education
21for site visits conducted pursuant to Section 1240, shall be allocated
22as follows:

23(1) Two thousand five hundred dollars ($2,500) for each
24elementary school.

25(2) Three thousand five hundred dollars ($3,500) for each middle
26or junior high school.

27(3) Five thousand dollars ($5,000) for each high school.

28(b) In addition to the funds described in subdivision (a), county
29offices of education shall receive additional funding for sites whose
30enrollment in the prior year is 20 percent greater than the average
31enrollment of all sites for the prior year as follows:

32(1) Two dollars and fifty cents ($2.50) for each pupil that
33exceeds a total elementary school enrollment of 856 pupils.

34(2) Three dollars and fifty cents ($3.50) for each pupil that
35exceeds a total middle school or junior high school enrollment of
361,427 pupils.

37(3) Five dollars ($5.00) for each pupil that exceeds a total high
38school enrollment of 2,296 pupils.

39(c) County offices of education that are responsible for visiting
40more than 150 schoolsites shall receive an additional allocation of
P20   1one dollar ($1.00) per pupil for the total prior year enrollment of
2all sites visited.

3(d) The minimum amount for allocation pursuant to this section
4to county offices of education shall be ten thousand dollars
5($10,000).

end delete
6begin insert

begin insertSEC. 6.end insert  

end insert

begin insertSection 1242.5 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
7

1242.5.  

On or before March 31, 2007, the department shall
8review the actual costs of 2005-06 fiscal year site visits conducted
9pursuant to Section 1240. If the department determines that a
10county office of education did not expend the funds allocated for
11this purpose during the 2005-06 fiscal year, the amount that
12exceeds the amount spent shall revert to the extraordinary cost
13pool created by Chapter 710 of the Statutes of 2005 and shall be
14available to cover the extraordinary costs incurred by county offices
15of education as a result of the reviews conducted pursuant to
16 Section 1240. Based on a determination by the department and the
17Department of Finance that it was necessary for a county office
18of education to incur extraordinary costs to conduct the site visits,
19funds in the amount necessary to cover these costs shall be
20allocated to the county office of education by June 30, 2007.

end delete
21begin insert

begin insertSEC. 7.end insert  

end insert

begin insertSection 1622 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
22read:end insert

23

1622.  

(a) On or before July 1 of each fiscal year, the county
24board of education shall adopt an annual budget for the budget
25yearbegin insert and, for the 2014-15 fiscal year and each fiscal year
26thereafter, take action on a local control and accountability plan
27pursuant to Sections 52062 and 52064end insert
and shall filebegin delete thatend deletebegin insert theend insert budget
28begin insert and local control and accountability planend insert with the Superintendent
29begin delete of Public Instructionend delete, the county board of supervisors, and the
30county auditor. The budget,begin insert the local control and accountability
31plan,end insert
and supporting data, shall be maintained and made available
32for public review. The budget shall indicate the date, time, and
33location at which the county board of education held the public
34hearing required under Section 1620.begin insert For the 2014-15 fiscal year
35and each fiscal year thereafter, the county board of education shall
36not adopt a budget before the county board of education adopts a
37local control and accountability plan or approves an update to an
38existing local control and accountability plan. The county board
39of education shall not adopt a budget that does not align with the
P21   1local control and accountability plan that applies to the subsequent
2fiscal year.end insert

3(b) begin insert(1)end insertbegin insertend insert The Superintendentbegin delete of Public Instructionend delete shall examine
4the budget to determinebegin delete whetherend deletebegin insert ifend insert it (1) complies with the
5standards and criteria adopted by thebegin delete State Board of Educationend delete
6begin insert state boardend insert pursuant to Section 33127 for application to final local
7educational agency budgets, (2) allows the county office of
8education to meet its financial obligations during the fiscal year,
9and (3) is consistent with a financial plan that will enable the
10county office of education to satisfy its multiyear financial
11 commitments. In addition, the Superintendent shall identify any
12technical corrections to the budget that must be made. On or before
13August 15, the Superintendentbegin delete of Public Instructionend delete shall approve
14or disapprove the budget and, in the event of a disapproval, transmit
15to the county office of education in writing his or her
16recommendations regarding revision of the budget and the reasons
17for those recommendations.begin delete Forend delete

18begin insert(2)end insertbegin insertend insertbegin insertFor end insertthe 2011-12 fiscal year, notwithstanding any of the
19standards and criteria adopted by the state board pursuant to Section
2033127, the Superintendent, as a condition on approval of a county
21office of education budget, shall not require a county office of
22education to project a lower level of revenue per unit of average
23daily attendance than it received in the 2010-11 fiscal year nor
24require the county superintendent to certify in writing whether or
25not the county office of education is able to meet its financial
26obligations for the two subsequent fiscal years.

begin insert

27(3) For the 2014-15 fiscal year and each fiscal year thereafter,
28the Superintendent shall disapprove a budget if any of the following
29occur:

end insert
begin insert

30(A) The county board of education does not file a local control
31and accountability plan with the Superintendent pursuant to
32Sections 52062 and 52064.

end insert
begin insert

33(B) If the Superintendent determines that a local control and
34accountability plan filed does not adhere to the template adopted
35by the state board pursuant to Section 52066.

end insert
begin insert

36(C) If the Superintendent determines that a local control and
37accountability plan filed does not include all of the components
38identified in subdivision (a) of Section 52064.

end insert
begin insert

P22   1(D) If the Superintendent determines that the expenditures
2included in the budget do not reflect the costs necessary to
3implement the local control and accountability plan.

end insert

4(c) On or before September 8, the county board of education
5shall revise the county office of education budget to reflect changes
6in projected income or expenditures subsequent to July 1, and to
7include any response to the recommendations of the Superintendent
8begin delete of Public Instructionend delete, shall adopt the revised budget, and shall file
9the revised budget with the Superintendentbegin delete of Public Instructionend delete,
10the county board of supervisors, and the county auditor.begin delete Prior toend delete
11begin insert Beforeend insert revising the budget, the county board of education shall
12hold a public hearing regarding the proposed revisions, which shall
13be made available for public inspection not less than three working
14daysbegin delete prior toend deletebegin insert beforeend insert the hearing. The agenda for that hearing shall
15be posted at least 72 hoursbegin delete prior toend deletebegin insert beforeend insert the public hearing and
16shall include the location where the budget will be available for
17public inspection. The revised budget, and supporting data, shall
18be maintained and made available for public review.

19(d) The Superintendentbegin delete of Public Instructionend delete shall examine the
20revised budget to determine whether it complies with the standards
21and criteria adopted by thebegin delete State Board of Educationend deletebegin insert state boardend insert
22 pursuant to Section 33127 for application to final local educational
23agency budgets and, no later than October 8, shall approve or
24disapprove the revised budget.begin insert For the 2014-15 fiscal year and
25each fiscal year thereafter, the Superintendent shall disapprove a
26revised budget if the Superintendent determines that the
27expenditures included in the budget do not reflect the costs
28necessary to implement the local control and accountability plan
29adopted by a county board of education pursuant to Sections 52062
30and 52064.end insert
If the Superintendentbegin delete of Public Instructionend delete disapproves
31the budget, he or she shall call for the formation of a budget review
32committee pursuant to Section 1623. For the 2011-12 fiscal year,
33notwithstanding any of the standards and criteria adopted by the
34 state board pursuant to Section 33127, the Superintendent, as a
35condition on approval of a county office of education budget, shall
36not require a county office of education to project a lower level of
37revenue per unit of average daily attendance than it received in
38the 2010-11 fiscal year nor require the county superintendent to
39certify in writing whether or not the county office of education is
P23   1able to meet its financial obligations for the two subsequent fiscal
2years.

3(e) Notwithstanding any other provision of this section, the
4budget review for a county office of education shall be governed
5by paragraphs (1), (2), and (3) of this subdivision, rather than by
6subdivisions (c) and (d), if the county board of education so elects,
7and notifies the Superintendentbegin delete of Public Instructionend delete in writing of
8that decision, no later than October 31 of the immediately
9 preceding calendar year.

10(1) In the event of the disapproval of the budget of a county
11office of education pursuant to subdivision (b), on or before
12September 8, the county superintendent of schools and the county
13board of education shall review the recommendations of the
14Superintendentbegin delete of Public Instructionend delete at a regularly scheduled
15meeting of the county board of education and respond to those
16recommendations. That response shall include the proposed actions
17to be taken, if any, as a result of those recommendations.

18(2) No later than October 8, after receiving the response required
19under paragraph (1), the Superintendentbegin delete of Public Instructionend delete shall
20review that response and either approve or disapprove the budget
21of the county office of education.begin insert For the 2014-15 fiscal year and
22each fiscal year thereafter, the Superintendent shall disapprove a
23budget if a county board of education does not file a local control
24and accountability plan with the Superintendent or if the
25Superintendent determines that the expenditures included in the
26budget adopted by the county board of education do not reflect
27the costs necessary to implement the local control and
28accountability plan.end insert
If the Superintendentbegin delete of Public Instructionend delete
29 disapproves the budget, he or she shall call for the formation of a
30budget review committee pursuant to Section 1623.

31(3) Not later than 45 days after the Governor signs the annual
32Budget Act, the county office of education shall make available
33for public review any revisions in revenues and expenditures that
34it has made to its budget to reflect the funding made available by
35that Budget Act.

36begin insert

begin insertSEC. 8.end insert  

end insert

begin insertSection 1630 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
37read:end insert

38

1630.  

(a) The Superintendent shall review and consider studies,
39reports, evaluations, or audits of the county office of education
40that contain evidence that the county office of education is
P24   1demonstrating fiscal distress according to the standards and criteria
2developed pursuant to Section 33127, or that contain a finding by
3an external reviewer that more than 3 of the 15 most common
4predictors of school agencies needing intervention, as determined
5by the County Office Fiscal Crisis and Management Assistance
6Team, are present. If those findings are made, the Superintendent
7shall investigate the financial condition of the county office of
8education and determine if the county office of education may be
9unable to meet its financial obligations for the current or two
10subsequent fiscal years, or should receive a qualified or negative
11 interim financial certification pursuant to Section 1240.

12(b) If at any time during the fiscal year the Superintendent
13determines that the county office of education may be unable to
14meet its financial obligations for the current or two subsequent
15fiscal years, or if the county officebegin insert of educationend insert has a qualified
16certification pursuant to Section 1240, he or she shall notify the
17county board of education and the county superintendent in writing
18of that determination and the basis for the determination. The
19notification shall include the assumptions used in making the
20determination and shall be available to the public. The
21Superintendent shall do the following, as necessary, to ensure that
22the county office meets its financial obligations:

23(1) Assign a fiscal expert, paid for by the Superintendent, to
24advise the county officebegin insert of educationend insert on its financial problems.

25(2) Conduct a study of the financial and budgetary conditions
26of the county officebegin insert of educationend insert. If, in the course of this review,
27the Superintendent determines that his or her office requires
28analytical assistance or expertise that is not available through the
29county officebegin insert of educationend insert, he or she may employ, at county office
30begin insert of educationend insert expense, on a short-term basis, staff, including
31certified public accountants, to provide the assistance and expertise.

32(3) Direct the county officebegin insert of educationend insert to submit a financial
33projection of all fund and cash balances of the county officebegin insert of
34educationend insert
as of June 30 of the current year and subsequent fiscal
35years as he or she requires.

36(4) Require the county officebegin insert of educationend insert to encumber all
37contracts and other obligations, to prepare appropriate cashflow
38analyses and monthly or quarterly budget revisions, and to
39appropriately record all receivables and payables.

P25   1(5) Direct the county officebegin insert of educationend insert to submit a proposal
2for addressing the fiscal conditions that resulted in the
3determination that the county officebegin insert of educationend insert may not be able
4to meet its financial obligations.

5(6) Withhold compensation of the county board of education
6and the county superintendent for failure to provide requested
7financial information.

8(c) If, after taking the actions identified in subdivision (a), the
9Superintendent determines that a county officebegin insert of educationend insert will
10be unable to meet its financial obligations for the current or
11subsequent fiscal year, he or she shall notify the county board of
12education and the county superintendent in writing of that
13determination and the basis for that determination. The notification
14shall include the assumptions used in making the determination
15and shall be available to the public.

16(d) If the Superintendentbegin delete of Public Instructionend delete makes that
17determination, or if the county officebegin insert of educationend insert has a negative
18certification pursuant to Section 1240, the Superintendent, shall,
19as necessary to enable the county officebegin insert of educationend insert to meet its
20financial obligations, do one or more of the following:

21(1) Develop and impose, in consultation with the county board
22of education and the county superintendent, a budget that will
23enable the countybegin insert office of educationend insert to meet its financial
24obligations.

25(2) Stay or rescind an action that is determined to be inconsistent
26with the ability of the county officebegin insert of educationend insert to meet its
27obligations for the current or subsequent fiscal year and may, as
28necessary, appoint a fiscal adviser to perform some or all of the
29duties prescribed by this paragraph on his or her behalf. This
30includes actions up to the point that the subsequent year’s budget
31is approved by the Superintendent. The Superintendent shall inform
32the county board of education in writing of his or her justification
33for an exercise of authority under this paragraph.

34(3) Assist in developing, in consultation with the county board
35of education and the county superintendent, a financial plan that
36will enable the county officebegin insert of educationend insert to meet its future
37obligations.

38(4) Assist in developing, in consultation with the county board
39 of education and the county superintendent, a budget for the
40subsequent fiscal year. If necessary, the Superintendent shall
P26   1continue to work with the county board of education and the county
2superintendent until the budget for the subsequent year is adopted.

3(e) Actions taken by the Superintendent pursuant to paragraph
4(1) or (2) of subdivision (d) shall be accompanied by a notification
5that includes the actions to be taken, the reasons for the actions,
6and the assumptions used to support the necessity for those actions.
7That notification shall be available to the public.

8(f) This section does not authorize the Superintendent to
9abrogate a provision of a collective bargaining agreement that was
10entered into by a county officebegin delete prior toend deletebegin insert of education beforeend insert the
11date upon which the Superintendent assumed authority pursuant
12to subdivision (d).

13(g) The county officebegin insert of educationend insert shall pay reasonable fees
14charged by the Superintendent for administrative expenses incurred
15pursuant to subdivision (d) or costs associated with improving the
16office’s financial management practices.

17(h) Notwithstanding any otherbegin delete provision ofend delete law, a county
18treasurer shall not honor a warrant when the Superintendent, as
19appropriate, has disapproved that warrant, or has disapproved the
20order on county officebegin insert of educationend insert funds for which a warrant was
21prepared.

22(i) For all purposes of errors and liability insurance policies, a
23fiscal expert appointed pursuant to this section shall be deemed to
24be an employee of the county office of education. The
25Superintendent may require that the fiscal adviser be placed on
26the county office of education payroll forbegin delete theend delete purposes of
27remuneration, benefits, and payroll deductions.

28(j) If staff persons are hired pursuant to paragraph (2) of
29subdivision (b), the Superintendent may certify to the Controller
30an amount to be transferred to thebegin delete State Department of Education,end delete
31begin insert state department,end insert from the funds that otherwise would be
32apportioned to the county office of education pursuant to Section
33begin delete 2558,end deletebegin insert 2575,end insert for the purpose of paying all costs incurred by that
34staff in performing their respective services. The Controller, upon
35receipt of that certification, shall transfer that amount.

36(k) To facilitate the appointment of a county officebegin insert of educationend insert
37 fiscal officer and the employment of additional staff pursuant to
38paragraphs (1) and (2), respectively, of subdivision (b), for the
39purposes of those paragraphs, the Superintendentbegin delete of Public
40Instructionend delete
is exempt from the requirements of Article 6
P27   1(commencing with Section 999) of Chapter 6 of Division 4 of the
2Military and Veterans Code and Part 2 (commencing with Section
310100) of Division 2 of the Public Contract Code.

4begin insert

begin insertSEC. 9.end insert  

end insert

begin insertArticle 9 (commencing with Section 1780) of Chapter
56 of Part 2 of Division 1 of Title 1 of the end insert
begin insertEducation Codeend insertbegin insert is
6repealed.end insert

7begin insert

begin insertSEC. 10.end insert  

end insert

begin insertArticle 10 (commencing with Section 1790) of Chapter
86 of Part 2 of Division 1 of Title 1 of the end insert
begin insertEducation Codeend insertbegin insert is
9repealed.end insert

10begin insert

begin insertSEC. 11.end insert  

end insert

begin insertArticle 11 (commencing with Section 1830) of Chapter
116 of Part 2 of Division 1 of Title 1 of the end insert
begin insertEducation Codeend insertbegin insert is
12repealed.end insert

13begin insert

begin insertSEC. 12.end insert  

end insert

begin insertArticle 14.5 (commencing with Section 1900) of
14Chapter 6 of Part 2 of Division 1 of Title 1 of the end insert
begin insertEducation Codeend insert
15begin insert is repealed.end insert

16begin insert

begin insertSEC. 13.end insert  

end insert

begin insertArticle 14.7 (commencing with Section 1915) of
17Chapter 6 of Part 2 of Division 1 of Title 1 of the end insert
begin insertEducation Codeend insert
18begin insert is repealed.end insert

19begin insert

begin insertSEC. 14.end insert  

end insert

begin insertArticle 17 (commencing with Section 1940) of Chapter
206 of Part 2 of Division 1 of Title 1 of the end insert
begin insertEducation Codeend insertbegin insert is
21repealed.end insert

22begin insert

begin insertSEC. 15.end insert  

end insert

begin insertSection 1982 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
23

1982.  

(a) County community schools shall be administered
24by the county superintendent of schools.

25For purposes of making apportionments from the State School
26Fund and the levying of local taxes, any attendance generated by
27pupils in county community schools in kindergarten or any of
28grades 1 to 12, inclusive, who are enrolled pursuant to subdivisions
29(a), (b), and (d) of Section 1981 as well as any attendance generated
30by pupils in county community schools in kindergarten or any of
31grades 1 to 6, inclusive, who are enrolled pursuant to paragraph
32(1) or (2) of subdivision (c) of Section 1981 shall be credited to
33the district of residence. School districts shall pay to the county
34for the purposes of the community schools the entire revenue limit
35for each average daily attendance credited pursuant to this section.
36No funds generated by average daily attendance credited pursuant
37to this section shall be retained by the district of residence. The
38county superintendent of schools may use funds derived from
39existing tax revenues to provide additional funding per pupil
40enrolled in county community schools but not to exceed the
P28   1difference between the amount derived per pupil from the district
2and the amount available per pupil enrolled in juvenile court
3schools.

4(b) For the purposes of making apportionments from the State
5School Fund, pupils enrolled in county community schools
6pursuant to subdivision (c) of Section 1981 shall be deemed to be
7enrolled in a county juvenile hall or camp except pupils enrolled
8in kindergarten or any of grades 1 to 6, inclusive, who are enrolled
9pursuant to paragraph (1) or (2) of subdivision (c) of Section 1981.

10(c) For the purposes of this section, the county superintendent
11of schools providing educational services to homeless children
12shall be deemed to be the district of residence of those children.

end delete
13begin insert

begin insertSEC. 16.end insert  

end insert

begin insertSection 1982.3 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
14

1982.3.  

Any amounts received by a county superintendent of
15schools for revenue limit purposes that are derived from the average
16daily attendance generated by pupils enrolled in a community
17school shall be expended only for the purposes specified in
18subdivision (b) of Section 42238.18.

end delete
19begin insert

begin insertSEC. 17.end insert  

end insert

begin insertSection 1982.5 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
20

1982.5.  

Notwithstanding subdivision (b) of Section 1982, for
21purposes of making apportionments from the State School Fund,
22pupils enrolled in juvenile court schools because they were expelled
23pursuant to subdivision (a) of Section 48915 shall be deemed the
24same as pupils enrolled in county community schools pursuant to
25subdivision (a), (b), or (d) of Section 1981.

end delete
26begin insert

begin insertSEC. 18.end insert  

end insert

begin insertSection 1983.5 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
27

1983.5.  

Notwithstanding any other provision of law,
28apportionments claimed by a county office of education for units
29of average daily attendance for pupils enrolled pursuant to
30subdivision (c) of Section 1981 in excess of the number claimed
31by that county office in the 1991-92 fiscal year shall be funded at
32the statewide average revenue limit per unit of average daily
33attendance for that category of enrollment. This section does not
34apply to pupils enrolled in kindergarten or any of grades 1 to 6,
35inclusive, pursuant to paragraphs (1) or (2) of subdivision (c) of
36Section 1981.

end delete
37begin insert

begin insertSEC. 19.end insert  

end insert

begin insertArticle 1 (commencing with Section 2509) of Chapter
3812 of Part 2 of Division 1 of Title 1 of the end insert
begin insertEducation Codeend insertbegin insert is
39repealed.end insert

P29   1begin insert

begin insertSEC. 20.end insert  

end insert

begin insertArticle 3 (commencing with Section 2550) of Chapter
212 of Part 2 of Division 1 of Title 1 of the end insert
begin insertEducation Codeend insertbegin insert is
3repealed.end insert

4begin insert

begin insertSEC. 21.end insert  

end insert

begin insertArticle 3.5 (commencing with Section 2560) of
5Chapter 12 of Part 2 of Division 1 of Title 1 of the end insert
begin insertEducation Codeend insert
6begin insert is repealed.end insert

7begin insert

begin insertSEC. 22.end insert  

end insert

begin insertThe heading of Article 4 (commencing with Section
82570) of Chapter 12 of Part 2 of Division 1 of Title 1 of the end insert
begin insert9Education Codeend insertbegin insert is amended and renumbered to read:end insert

10 

11Article begin delete4.end deletebegin insert1.end insert  Allocation of Property Tax Revenues
12

 

13begin insert

begin insertSEC. 23.end insert  

end insert

begin insertSection 2573 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
14read:end insert

15

2573.  

The remainder computed pursuant to subdivision (d) of
16Section 2571 is the amount of property tax revenues to be allocated
17for programs funded pursuant to Sectionbegin delete 2558.end deletebegin insert 2575.end insert

18begin insert

begin insertSEC. 24.end insert  

end insert

begin insertArticle 2 (commencing with Section 2574) is added
19to Chapter 12 of Part 2 of Division 1 of Title 1 of the end insert
begin insertEducation
20Code
end insert
begin insert, to read:end insert

begin insert

21 

22Article begin insert2.end insert  County Local Control Funding Formula
23

 

24

begin insert2574.end insert  

For the 2013-14 fiscal year and for each fiscal year
25thereafter, the Superintendent annually shall calculate the County
26Local Control Funding Formula for each county superintendent
27of schools as follows:

28(a) Compute a county office of education operations grant equal
29to the sum of each of the following amounts:

30(1) Six hundred fifty-five thousand nine hundred twenty dollars
31($655,920).

32(2) One hundred nine thousand three hundred twenty dollars
33($109,320) multiplied by the number of school districts for which
34the county superintendent of schools has jurisdiction pursuant to
35Section 1253.

36(3) (A) Seventy dollars ($70) multiplied by the number of units
37of countywide average daily attendance, up to a maximum of
3830,000 units. For purposes of this section, countywide average
39daily attendance means the aggregate number of annual units of
40average daily attendance within the county attributable to all
P30   1school districts for which the county superintendent of schools has
2jurisdiction pursuant to Section 1253, charter schools within the
3county, and the schools operated by the county superintendent of
4schools.

5(B) Sixty dollars ($60) multiplied by the number of units of
6countywide average daily attendance for the portion of countywide
7average daily attendance, if any, above 30,000 units, up to a
8maximum of 60,000 units.

9(C) Fifty dollars ($50) multiplied by the number of units of
10countywide average daily attendance for the portion of countywide
11average daily attendance, if any, above 60,000, up to a maximum
12of 140,000 units.

13(D) Forty dollars ($40) multiplied by the number of units of
14countywide average daily attendance for the portion of countywide
15average daily attendance, if any, above 140,000 units.

16(4) For the 2014-15 fiscal year and each fiscal year thereafter,
17adjust each of the amounts provided in the prior year pursuant to
18paragraphs (1), (2), and (3) by the percentage change in the annual
19average value of the Implicit Price Deflator for State and Local
20Government Purchases of Goods and Services for the United
21States, as published by the United States Department of Commerce
22for the 12-month period ending in the third quarter of the prior
23fiscal year. This percentage change shall be determined using the
24latest data available as of May 10 of the preceding fiscal year
25compared with the annual average value of the same deflator for
26the 12-month period ending in the third quarter of the second
27preceding fiscal year, using the latest data available as of May 10
28of the preceding fiscal year, as reported by the Department of
29Finance.

30(b) Divide the enrollment of unduplicated pupils in all schools
31operated by a county superintendent of schools by the total
32enrollment in those schools.

33(1) For purposes of this section, an “unduplicated pupil” is a
34pupil who is classified as an English learner pursuant to Section
3552164, as that section read on January 1, 2013; eligible to receive
36a free or reduced-price meal pursuant to Section 49552, as that
37section read on January 1, 2013; or a foster child pursuant to
38Sections 300 and 601 of the Welfare and Institutions Code. A pupil
39shall be counted only once for purposes of this section if any of
40the following apply:

P31   1(A) The pupil is classified as an English learner and is eligible
2for a free or reduced-price meal.

3(B) The pupil is classified as an English learner and is a foster
4child.

5(C) The pupil is classified as a foster child and is eligible for a
6free or reduced-price meal.

7(D) The pupil is classified as an English learner, is eligible for
8a free or reduced-price meal, and is a foster child.

9(2) For purposes of this section, a pupil shall not be classified
10as an English learner for a total of more than five school years by
11any school district, charter school, or county office of education.

12(3) For purposes of this subdivision, a pupil enrolled in a
13juvenile court school operated by a county superintendent of
14schools shall not be included in any enrollment counts.

15(4) Commencing with the 2013-14 fiscal year, a county
16superintendent of schools annually shall report the enrollment of
17unduplicated pupils, pupils classified as English learners, pupils
18eligible for free and reduced-price meals, and foster children in
19schools operated by the county superintendent of schools to the
20Superintendent using the California Longitudinal Pupil
21Achievement Data System. The Superintendent shall make the
22calculations pursuant to this section using the California
23Longitudinal Pupil Achievement Data System.

24(c) Compute an alternative education grant equal to the sum of
25the following:

26(1) For the 2013-14 fiscal year, a base grant of eleven thousand
27 forty-five dollars ($11,045). For the 2014-15 fiscal year and each
28fiscal year thereafter, adjust the base grant provided in the prior
29year by the percentage change in the annual average value of the
30Implicit Price Deflator for State and Local Government Purchases
31of Goods and Services for the United States, as published by the
32United States Department of Commerce for the 12-month period
33ending in the third quarter of the prior fiscal year. This percentage
34change shall be determined using the latest data available as of
35May 10 of the preceding fiscal year compared with the annual
36average value of the same deflator for the 12-month period ending
37in the third quarter of the second preceding fiscal year, using the
38latest data available as of May 10 of the preceding fiscal year, as
39reported by the Department of Finance.

P32   1(2) A supplemental grant equal to 35 percent of the base grant
2defined in paragraph (1) multiplied by the percentage calculated
3in subdivision (b).

4(3) A concentration grant equal to 35 percent of the base grant
5defined in paragraph (1) multiplied by the greater of either of the
6following:

7(A) The percentage calculated in subdivision (b) less 50 percent.

8(B) Zero.

9(4) (A) Multiply the sum of paragraphs (1), (2), and (3) by the
10total number of units of average daily attendance for pupils
11attending schools operated by a county office of education,
12excluding units of average daily attendance for pupils attending
13a juvenile court school, who are any of the following:

14(i) Probation-referred pursuant to Sections 300, 601, 602, and
15654 of the Welfare and Institutions Code.

16(ii) On probation or parole and not in attendance in a school.

17(iii) Expelled for any of the reasons specified in subdivision (a)
18or (c) of Section 48915.

19(B) Multiply the number of units of average daily attendance
20for pupils attending a juvenile court school by the sum of the base
21grant calculated in paragraph (1), a supplemental grant equal to
2235 percent of the base grant pursuant to paragraph (1), and a
23concentration grant equal to 17.5 percent of the base grant
24pursuant to paragraph (1).

25(C) Add the amounts calculated in subparagraphs (A) and (B).

26(d) Add the amount calculated in subdivision (a) to the amount
27calculated in subparagraph (C) of paragraph (4) of subdivision
28(c).

29(e) Add all of the following to the amount calculated in
30subdivision (d):

31(1) The amount of funding a county superintendent of schools
32received for the 2012-13 fiscal year from funds allocated pursuant
33to the Targeted Instructional Improvement Block Grant program,
34as set forth in Article 6 (commencing with Section 41540) of
35Chapter 3.2 of Part 24 of Division 3 of Title 2, as that article read
36on January 1, 2013.

37(2) The amount of funding a county superintendent of schools
38received for the 2012-13 fiscal year from funds allocated pursuant
39to the Home to School Transportation program, as set forth in
40Article 2 (commencing with Section 39820) of Chapter 1 of Part
P33   123.5 of Division 3 of Title 2, and Article 10 (commencing with
2Section 41850) of Chapter 5 of Part 24 of Division 3 of Title 2, as
3those articles read on January 1, 2013.

4

begin insert2575.end insert  

Commencing with the 2013-14 budget year and for each
5fiscal year thereafter, the Superintendent shall distribute the
6appropriations in Section 14002 to each county superintendent of
7schools according to the following formula:

8(a) Calculate a prior year amount of funding for each county
9superintendent of schools equal to the sum of all of the following:

10(1) Entitlements for revenue limits in the 2012-13 fiscal year
11pursuant to Article 3 (commencing with Section 2550) of Chapter
1212, as that article read on January 1, 2013, adjusted only for
13changes in average daily attendance claimed by the county
14superintendent of schools for pupils identified in clauses (i), (ii)
15and (iii) of subparagraph (A) of paragraph (4) of subdivision (c)
16of Section 2574 and of pupils attending juvenile court schools. All
17other average daily attendance claimed by the county
18superintendent of schools and any other average daily attendance
19used for purposes of calculating revenue limits pursuant to Article
203 (commencing with Section 2550) of Chapter 12, as that article
21read on January 1, 2013, shall be considered final for purposes
22of this section as of the annual apportionment for the 2012-13
23fiscal year, as calculated for purposes of the certification required
24on or before February 20, 2014, pursuant to Section 41332.

25(2) The amount of funding received from appropriations
26contained in Section 2.00 of the Budget Act of 2012, as adjusted
27by Section 12.42, in the following items: 6110-104-0001,
286110-105-0001, 6110-107-0001, 6110-108-0001, 6110-111-0001,
296110-119-0001, 6110-122-0001, 6110-124-0001, 6110-128-0001,
306110-137-0001, 6110-144-0001, 6110-156-0001, 6110-158-0001,
316110-166-0001, 6110-167-0001, 6110-181-0001, 6110-188-0001,
326110-189-0001, 6110-190-0001, 6110-193-0001, 6110-195-0001,
336110-198-0001, 6110-204-0001, 6110-208-0001, 6110-209-0001,
346110-211-0001, 6110-212-0001, 6110-227-0001, 6110-228-0001,
356110-232-0001, 6110-234-0001, 6110-240-0001, 6110-242-0001,
366110-243-0001, 6110-244-0001, 6110-245-0001, 6110-246-0001,
376110-247-0001, 6110-248-0001, 6110-260-0001, 6110-265-0001,
386110-266-0001, 6110-267-0001, 6110-268-0001, and
396360-101-0001, and 2012-13 fiscal year funding for the Class
40Size Reduction Program pursuant to Chapter 6.10 (commencing
P34   1with Section 52120) of Part 28 of Division 4 of Title 2, as it read
2on January 1, 2013.

3(3) For the 2014-15 fiscal year and for each fiscal year
4thereafter, the amounts calculated pursuant to paragraph (3) of
5subdivision (b) in all prior years.

6(b) Calculate an adjustment to the amount in subdivision (a) as
7follows:

8(1) Subtract the amount in subdivision (a) from the amount
9computed in subdivision (e) of Section 2574. A difference of less
10than zero shall be deemed to be zero.

11(2) Divide the difference for the county superintendent of schools
12calculated in paragraph (1) by the total of the differences for all
13county superintendents of schools calculated pursuant to
14paragraph (1).

15(3) (A) Multiply the proportion calculated in paragraph (2) by
16the amount of funding appropriated for purposes of this section.
17The amount calculated shall not exceed the difference for the
18county superintendent of schools calculated in paragraph (1).

19(B) Add the amount calculated in subparagraph (A) to the
20allocation to the county superintendent of schools as calculated
21pursuant to subdivision (a).

22(c) Subtract from the amount calculated in subparagraph (B)
23of paragraph (3) of subdivision (b) the sum of each of the
24following:

25(1) Local property tax revenues received pursuant to Section
262573 in the then current fiscal year.

27(2) Any amounts that the county superintendent of schools was
28required to maintain as restricted and not available for expenditure
29in the 1978-79 fiscal year as specified in the second paragraph
30of subdivision (c) of Section 6 of Chapter 292 of the Statutes of
311978, as amended by Chapter 51 of the Statutes of 1979.

32(3) The amount received pursuant to subparagraph (C) of
33paragraph (3) of subdivision (a) of Section 33607.5 of the Health
34and Safety Code that is considered property taxes pursuant to that
35section.

36(4) The amount, if any, received pursuant to Sections 34177,
3734179.5, 34179.6, and 34188 of the Health and Safety Code.

38(5) (A) The amount, if any, received pursuant to subparagraph
39(B) of paragraph (3) of subdivision (e) of Section 36 of Article XIII
40of the California Constitution.

P35   1(B) The amount in subparagraph (A) shall only offset the amount
2included in paragraph (1) of subdivision (a).

3(d) (1) The Superintendent shall apportion to the county
4superintendent of schools either of the following:

5(A) If the calculation in paragraph (1) of subdivision (b) is
6positive, the amount calculated in subdivision (c).

7(B) (i) If the calculation in paragraph (1) of subdivision (b) is
8equal to zero or is negative, the sum of the amounts in paragraphs
9(1) and (2) of subdivision (a), less the sum of the amounts included
10in paragraphs (1) to (5), inclusive, of subdivision (c).

11(ii) For the first fiscal year in which the amount calculated in
12subdivision (e) of Section 2574 is greater than the sum of the
13amounts in paragraphs (1) and (2) of subdivision (a) and for each
14fiscal year thereafter, the Superintendent shall apportion to the
15county superintendent of schools the amount calculated in
16subdivision (e) of Section 2574, less the sum of the amounts
17included in paragraphs (1) to (5), inclusive, of subdivision (c).

18(2) If the amount determined pursuant to paragraph (1) is
19negative, state aid shall not be apportioned to the county
20superintendent of schools pursuant to paragraph (1). An amount
21of funds of that county superintendent of schools equal to that
22negative amount shall be deemed restricted and not available for
23expenditure during the fiscal year in which subdivision (d) applies.
24In the following fiscal year, that amount shall be considered local
25property tax revenue for purposes of paragraph (1) of subdivision
26(c).

27(3) Commencing with the 2013-14 fiscal year, the
28Superintendent shall apportion to the county superintendent of
29schools an amount of state aid of no less than the amount
30calculated in paragraph (2) of subdivision (a), including any
31amount apportioned pursuant to paragraph (1).

32(e) (1) Funds apportioned pursuant to this section shall be
33available for any locally determined educational purpose.

34(2) Funds apportioned for purposes of a supplemental grant or
35concentration grant, pursuant to paragraphs (2) and (3), and
36subparagraph (B) of paragraph (4) of subdivision (c) of Section
372754, shall be available for any locally determined educational
38purpose that benefits the pupils that generated those funds pursuant
39to a local control and accountability plan adopted by the county
40board of education.

P36   1(3) Commencing with the 2013-14 fiscal year, unless otherwise
2required by federal law, any requirements associated with the
3items listed in paragraph (2) of subdivision (a) shall not apply.

4

begin insert2576.end insert  

(a) If a county superintendent of schools enrolls in a
5school operated by the county superintendent of schools a pupil
6not funded pursuant to clause (i), (ii), or (iii) of subparagraph (A)
7of paragraph (4) of subdivision (c) of Section 2574, any attendance
8generated by that pupil shall be credited to the school district of
9residence. That school district shall pay to the county
10superintendent of schools the entire entitlement generated for each
11unit of average daily attendance by that pupil.

12(b) For purposes of this section, the school district of residence
13for a homeless child, as defined in Section 1981.2, shall be deemed
14to be the school district that last provided educational services to
15that child or, if it is not possible to determine that school district,
16the largest school district in the county.

17

begin insert2577.end insert  

Notwithstanding any other law, revenue limit funding
18for county superintendents of schools for the 2012-13 fiscal year
19and prior fiscal years shall continue to be adjusted pursuant to
20Article 3 (commencing with Section 2550) of Chapter 12, as that
21section read on January 1, 2013.

end insert
22begin insert

begin insertSEC. 25.end insert  

end insert

begin insertArticle 3 (commencing with Section 8070) of Chapter
231 of Part 6 of Division 1 of Title 1 of the end insert
begin insertEducation Codeend insertbegin insert is
24repealed.end insert

25begin insert

begin insertSEC. 26.end insert  

end insert

begin insertArticle 4 (commencing with Section 8080) of Chapter
261 of Part 6 of Division 1 of Title 1 of the end insert
begin insertEducation Codeend insertbegin insert is
27repealed.end insert

28begin insert

begin insertSEC. 27.end insert  

end insert

begin insertSection 8092 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
29read:end insert

30

8092.  

(a) A school district or districts, a county superintendent
31or superintendents, or the governing body of any agency
32maintaining a regional occupational center or program may contract
33with a private postsecondary school that is authorized or approved
34pursuant to Chapterbegin delete 3end deletebegin insert 8end insert (commencing with Sectionbegin delete 94300)end deletebegin insert 94800)end insert
35 of Part 59begin insert of Division 10 of Title 3end insert and that has been in operation
36not less than two full calendar yearsbegin delete prior toend deletebegin insert beforeend insert the effective
37date of the contract, to provide career technical skill training
38authorized by this code. A school district, community college
39district, or county superintendent of schools may contract with an
40activity center, work activity center, or sheltered workshop to
P37   1provide career technical skill training authorized by this code in
2an adult education program for adults with disabilities operated
3pursuant to subdivision (a) of Section 41976.

4(b) A contract between a public entity and a private
5postsecondary school entered into pursuant to this section, or an
6activity center, work activity center, or sheltered workshop, shall
7dobegin delete allend deletebegin insert bothend insert of the following:

8(1) Provide that the amount contracted for per student shall not
9exceed the total direct and indirect costs to provide the same
10training in the public schools or the tuition the private
11postsecondary school charges its private students, whichever is
12lower.

begin delete

13(2) Provide that the public school receiving training in a private
14postsecondary school, or an activity center, work activity center,
15or sheltered workshop pursuant to that contract may not be charged
16additional tuition for any training included in the contract. The
17attendance of those students pursuant to a contract authorized by
18this section shall be credited to the public entity for the purposes
19of apportionments from the State School Fund.

end delete
begin delete

20(3)

end delete

21begin insert(2)end insert Provide that all programs, courses, and classes of instruction
22shall meet the standards set forth in the California State Plan for
23Career Technical Education, or is a course of study for adult
24schools approved by the departmentbegin delete under Section 51056end delete.

25(c) The students who attend a private postsecondary school or
26an activity center, work activity center, or sheltered workshop
27pursuant to a contract under this section shall be enrollees of the
28public entity and the career technical instruction provided pursuant
29to that contract shall be under the exclusive control and
30management of the governing body of the contracting public entity.

31(d) The Department of Finance and thebegin delete State Department of
32Educationend delete
begin insert state departmentend insert may audit the accounts of both the
33public entity and the private party involved in these contracts to
34the extent necessary to ensure the integrity of the public funds
35involved.

36begin insert

begin insertSEC. 28.end insert  

end insert

begin insertArticle 8 (commencing with Section 8150) of Chapter
371 of Part 6 of Division 1 of Title 1 of the end insert
begin insertEducation Codeend insertbegin insert is
38repealed.end insert

39begin insert

begin insertSEC. 29.end insert  

end insert

begin insertChapter 3 (commencing with Section 8500) of Part
406 of Division 1 of Title 1 of the end insert
begin insertEducation Codeend insertbegin insert is repealed.end insert

P38   1begin insert

begin insertSEC. 30.end insert  

end insert

begin insertChapter 5.1 (commencing with Section 8820) of Part
26 of Division 1 of Title 1 of the end insert
begin insertEducation Codeend insertbegin insert is repealed.end insert

3begin insert

begin insertSEC. 31.end insert  

end insert

begin insertChapter 9 (commencing with Section 8980) of Part
46 of Division 1 of Title 1 of the end insert
begin insertEducation Codeend insertbegin insert is repealed.end insert

5begin insert

begin insertSEC. 32.end insert  

end insert

begin insertSection 10554 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
6read:end insert

7

10554.  

(a) In order for the governing board to carry out its
8responsibilities pursuant to this chapter, there is hereby established
9the Educational Telecommunication Fund. The amount of moneys
10to be deposited in the fund shall be the amount of any offset made
11to the principal apportionments made pursuant to Sectionsbegin delete 1909,
122558, 42238,end delete
begin insert 2575, 42238.02, as implemented by Section 42238.03,end insert
13 52616, Article 1.5 (commencing with Section 52335) of Chapter
149 of Part 28begin insert of Division 4 of Title 2end insert, and Chapter 7.2 (commencing
15with Section 56836) of Part 30begin insert of Division 4 of Title 2end insert, based on
16a finding that these apportionments were not in accordance with
17law. The maximum amount that may be annually deposited in the
18fund from the offset is fifteen million dollars ($15,000,000). The
19Controller shall establish an account to receive and expend moneys
20in the fund. The placement of the moneys in the fund shall occur
21only upon a finding by the Superintendentbegin delete of Public Instructionend delete
22 and the Director of Finance that the principal apportionments made
23pursuant to Sectionsbegin delete 1909, 2558, 42238,end deletebegin insert 2575, 42238.02, as
24implemented by Section 42238.03,end insert
52616, and Article 1.5
25(commencing with Section 52335) of Chapter 9 of Part 28begin insert of
26Division 4 of Title 2end insert
, and Chapter 7.2 (commencing with Section
2756836) of Part 30begin insert of Division 4 of Title 2end insert were not in accordance
28with existing law and were so identified pursuant to Sections 1624,
2914506, 41020, 41020.2, 41320, 42127.2, and 42127.3, or an
30independent audit that was approved by the department.

31(b) Moneys in the fund established pursuant to subdivision (a)
32shall only be available for expenditure upon appropriation by the
33Legislature in the Budget Act.

34(c) The moneys in the fund established pursuant to subdivision
35(a) may be expended by the governing board to carry out the
36purposes of this chapter, including for the following purposes:

37(1) To support the activities of the team established pursuant to
38subdivision (c) of Section 10551.

39(2) To assist the school districts and county superintendents of
40schools in purchasing both hardware and software to allow school
P39   1districts, county superintendents of schools, and the department
2to be linked for school business and administrative purposes. The
3governing board shall establish a matching share requirement that
4applicant school districts and county superintendents of schools
5must fulfill to receive those funds. It is the intent of the Legislature
6to encourage the distribution of grants to school districts and county
7superintendents of schools to the widest extent possible.

8(3) To provide technical assistance through county offices of
9education to school districts in implementing the standards
10established pursuant to subdivision (a) of Section 10552.

11begin insert

begin insertSEC. 33.end insert  

end insert

begin insertChapter 13 (commencing with Section 11200) of Part
127 of Division 1 of Title 1 of the end insert
begin insertEducation Codeend insertbegin insert is repealed.end insert

13begin insert

begin insertSEC. 34.end insert  

end insert

begin insertChapter 17 (commencing with Section 11600) of Part
147 of Division 1 of Title 1 of the end insert
begin insertEducation Codeend insertbegin insert is repealed.end insert

15begin insert

begin insertSEC. 35.end insert  

end insert

begin insertSection 14002 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
16read:end insert

begin delete
17

14002.  

(a) The Controller shall during each fiscal year
18commencing with the 1980-81 fiscal year, transfer from the
19General Fund of the state to that portion of the State School Fund
20restricted for elementary and high school purposes, hereinafter
21called Section A of the State School Fund such sums, in addition
22to the sums accruing from other sources, as shall provide in Section
23A of the State School Fund for apportionment during the fiscal
24year a total amount per pupil in average daily attendance during
25the preceding fiscal year credited to all elementary, high, and
26unified school districts and to all county superintendents of schools
27in the state, as certified by the Superintendent of Public Instruction,
28of one hundred eighty dollars ($180).

29(b) The Controller shall also transfer, as needed during each
30fiscal year commencing with the 1980-81 fiscal year, such
31additional amounts from the General Fund to Section A of the
32State School Fund as are certified from time to time by the
33Superintendent of Public Instruction to be necessary to meet actual
34computed apportionments from Section A of the State School Fund
35for the purposes set forth in Section 41301; provided that the total
36of such additional amounts transferred in a fiscal year shall not
37exceed, except pursuant to subdivision (c) of this section, one
38thousand two hundred sixty-eight dollars ($1,268) for the 1980-81
39fiscal year and fiscal years thereafter, per pupil in average daily
40attendance during the preceding fiscal year credited to all
P40   1elementary, high, and unified school districts and to all county
2superintendents of schools in the state, as certified by the
3Superintendent of Public Instruction.

4(c) In addition to the amounts authorized to be transferred to
5Section A of the State School Fund under subdivisions (a) and (b),
6the Controller shall transfer from the General Fund to Section A
7of the State School Fund during the fiscal year, upon certification
8of the Superintendent of Public Instruction, if necessary to meet
9actual computed apportionments for the fiscal year for the purposes
10set forth in Sections 41300 and 41301, an amount not to exceed
11the lesser of: (1) 1 percent of the total apportionment from Section
12A of the State School Fund in the preceding fiscal year for the
13purposes set forth in Sections 41300 and 41301, or (2) the net
14amount, if any, by which the total amounts authorized to be
15transferred from the General Fund to Section A of the State School
16Fund under subdivisions (a) and (b) in prior fiscal years have
17exceeded the total amounts actually apportioned in prior fiscal
18years for the purposes set forth in Sections 41300 and 41301.

end delete
19begin insert

begin insert14002.end insert  

end insert
begin insert

(a) Notwithstanding any other law, upon certification
20of the Superintendent, the Controller shall transfer from the
21General Fund to Section A of the State School Fund during each
22fiscal year the amount of moneys required to meet the actual
23computed apportionments for the fiscal year for the purposes set
24forth in Sections 2575, 42238.02, and 42238.03.

end insert
begin delete

25(d)

end delete

26begin insert(b)end insert The Controller shall also transfer to Section A of the State
27School Fund any additional amounts appropriated thereto by the
28Legislature in augmentation of any of the amounts for any of the
29purposes set forth in Sectionsbegin delete 41300 and 41301end deletebegin insert 2575, 42238.02,
30and 42238.03end insert
and such additional amounts shall be allowed and
31apportioned by the Superintendentbegin delete of Public Instructionend delete and
32warrants therefor drawn by the Controller in the manner provided
33in Sections 41050begin delete,end deletebegin insert andend insert 46304,begin delete and 84503end delete and in this article, Article
342 (commencing with Section 14040), Article 3 (commencing with
35Section 41330) of Chapter 3begin insert of Part 24 of Division 3 of Title 2end insert,
36and Article 1 (commencing with Section 41600) of Chapter 4 of
37Part 24begin insert of Division 3 of Title 2end insert.

begin delete

38(e) The amounts transferred under subdivisions (a) and (b) of
39this section shall be cumulatively increased by the following
40amounts:

end delete
begin delete

P41   1(1) In the 1981-82 fiscal year, by 7 percent.

end delete
begin delete

2(2) In the 1982-83 fiscal year and each fiscal year thereafter,
3by 6 percent.

end delete
begin delete

4(f) This section shall become operative on July 1, 2002.

end delete
5begin insert

begin insertSEC. 36.end insert  

end insert

begin insertSection 14002.1 of the end insertbegin insertEducation Codeend insertbegin insert is amended
6to read:end insert

7

14002.1.  

Notwithstanding any other law, for purposes of
8determiningbegin delete (a)end delete the amounts to be certified pursuant tobegin delete Sectionsend delete
9begin insert subdivision (a) of Sectionend insert 14002begin delete and 14004, (b) allocations made
10pursuant to Section 41301, (c) the apportionments required to be
11made pursuant to Sections 41330, 41332, and 41335, (d) revenue
12limits for school districts pursuant to Section 42238, as adjusted
13pursuant to Sections 42238.14, 42238.145, and 42238.146, and
14(e) revenue limits for county offices of education pursuant to
15Section 2558, as adjusted pursuant to Sections 2558.4, 2558.45,
16and 2558.46end delete
, the Superintendentbegin delete of Public Instructionend delete shall use
17the property tax estimates received from county auditors pursuant
18to Section 75.70 of the Revenue and Taxation Code.

19begin insert

begin insertSEC. 37.end insert  

end insert

begin insertSection 14002.3 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
20

14002.3.  

Notwithstanding any other law, for purposes of
21Sections 14002, 14004, and 41301, for the 2000-01 fiscal year
22and each fiscal year thereafter, the Superintendent of Public
23Instruction shall certify to the Controller amounts that do not
24exceed the amounts needed to fund the revenue limits of school
25districts, as determined pursuant to Section 42238, the revenue
26limits of county superintendents of schools, as determined pursuant
27to Section 2558, warrants issued pursuant to Section 41329.57,
28and the revenue limit portion of charter school operational funding,
29as determined pursuant to Section 47633.

end delete
30begin insert

begin insertSEC. 38.end insert  

end insert

begin insertSection 14002.5 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
31

14002.5.  

In making the computation prescribed by subdivision
32(b) of Section 14002, the Controller shall cumulatively increase
33the seventy-nine cents ($0.79) amount prescribed by that
34subdivision by 6 percent annually, and shall cumulatively increase
35the twenty-one dollar and fifty cents ($21.50) amount prescribed
36by that subdivision by 6 percent annually.

end delete
37begin insert

begin insertSEC. 39.end insert  

end insert

begin insertSection 14003 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
38read:end insert

39

14003.  

(a) Commencing with the 2010-11 fiscal year, on
40March 28 of each fiscal year in which the percentage growth in
P42   1per capita General Fund revenues exceeds the percentage growth
2in California per capita personal income, the Controller shall
3transfer from the General Fund to Sections A and B of the State
4School Fund, as set forth in subdivision (c), the amount determined
5pursuant to paragraph (1) minus the amount determined pursuant
6to paragraph (2).

7(1) The product of General Fund revenues from proceeds of
8taxes and one-half of the difference between the percentage growth
9in per capita General Fund revenues from proceeds of taxes and
10in California per capita personal income.

11(2) The amount of the maintenance factor certified pursuant to
12Section 41207.2 that is allocated in the current year pursuant to
13subdivision (e) of Section 8 of Article XVI of the California
14Constitution.

15(b) The amount transferred pursuant to subdivision (a) shall be
16in addition to amounts required to be allocated pursuant to
17subdivision (b) of Section 8 of Article XVI of the California
18Constitution.

19(c) (1) Of the amount determined pursuant to subdivision (a),
20the Controller shall transfer 92 percent to Section A of the State
21School Fund. The Superintendent shall allocate the funds
22transferred pursuant to this paragraph in the following priority
23order:

begin delete

24(A) An amount not to exceed two hundred million dollars
25($200,000,000) for the purposes of revenue limit equalization in
26a manner consistent with Section 42238.49 for the first fiscal year
27in which funds are transferred pursuant to this paragraph.

end delete
begin delete

28(B)

end delete

29begin insert(A)end insert Such amounts as necessary tobegin delete reduce the revenue limit deficit
30factors set forth in Sections 2558.46 and 42238.146 until the deficit
31factors are reduced to zeroend delete
begin insert implement the local control funding
32formula pursuant to Section 42238.02, as implemented by Section
3342238.03, and the county local control funding formula, pursuant
34to Section 2575end insert
.

begin delete

35(C)

end delete

36begin insert(B)end insert Any remaining amounts transferred pursuant to this
37paragraph shall be allocatedbegin delete as an equal increase per unit of average
38daily attendance in general purpose apportionments for purposes
39of Sections 2558, 42238, and 47633end delete
begin insert pursuant to Sections 2575
40and 42238.02, as implemented by Section 42238.03end insert
.

P43   1(2) Of the amount determined pursuant to subdivision (a), the
2Controller shall transfer 8 percent to Section B of the State School
3Fund. The Chancellor of the Community Colleges shall allocate
4the funds transferred pursuant to this paragraph in equal amounts
5for the following purposes:

6(A) For purposes of career and technical education pursuant to
7Chapter 352 of the Statutes of 2005.

8(B) As a proportionate increase in general purpose
9apportionments for community college districts.

10(d) For purposes of determining the amount required pursuant
11to paragraph (2) or (3), as applicable, of subdivision (b) of Section
128 of Article XVI of the California Constitution for the following
13fiscal year, all amounts transferred in the prior fiscal year pursuant
14to this section shall be deemed allocations to school districts and
15community college districts from General Fund proceeds of taxes
16appropriated pursuant to Article XIII B for that prior fiscal year.

17(e) The sum of the amounts transferred pursuant to this section
18plus the sum of the amounts of the maintenance factor certified
19pursuant to Section 41207.2 that is allocated pursuant to
20subdivision (e) of Section 8 of Article XVI of the California
21Constitution shall not exceed the total amount of eleven billion
22two hundred twelve million nine hundred nine thousand dollars
23($11,212,909,000) less any maintenance factor amount that is
24allocated for the 2009-10 fiscal year.

25begin insert

begin insertSEC. 40.end insert  

end insert

begin insertSection 14004 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
26

14004.  

In addition to all other funds appropriated and
27transferred to Section A of the State School Fund, the Controller
28shall annually transfer from the General Fund to Section A of this
29State School Fund for apportionment during the fiscal year a total
30amount per pupil in average daily attendance during the preceding
31fiscal year credited to all elementary, high, and unified school
32districts and to all county superintendents of schools in the state
33as certified by the Superintendent of Public Instruction of fourteen
34cents ($0.14).

end delete
35begin insert

begin insertSEC. 41.end insert  

end insert

begin insertSection 14022.3 of the end insertbegin insertEducation Codeend insertbegin insert is amended
36to read:end insert

37

14022.3.  

(a) For purposes of calculating “increases in
38enrollment” pursuant to paragraph (2) or (3) of subdivision (b) of
39Section 8 of Article XVI of the California Constitution, the term
40“enrollment” for school districts, community college districts, and
P44   1state agencies providing direct elementary and secondary level
2instructional services means the sum of the following:

3(1) Second principal apportionment regular average daily
4attendance for kindergarten and grades 1 to 12, inclusive, as defined
5in subdivision (b) of Sectionbegin delete 42238.5,end deletebegin insert 42238.05,end insert and as adjusted
6for any average daily attendance audit findings.

7(2) Annual average daily attendance for county offices of
8education, as calculated pursuant to subdivision (c) of Section
941601, and as adjusted for any average daily attendance audit
10findings.

11(b) Any determination or computation of enrollment for purposes
12of this section shall be based upon actual data from prior years.
13For the next succeeding year, any determination or computation
14of enrollment for purposes of this section shall be the estimated
15enrollment, adjusted as actual data become available.

16begin insert

begin insertSEC. 42.end insert  

end insert

begin insertSection 14022.5 of the end insertbegin insertEducation Codeend insertbegin insert, as added by
17Section 2 of Chapter 82 of the Statutes of 1989, is repealed.end insert

begin delete
18

14022.5.  

(a) For purposes of Section 8.5 of Article XVI of the
19California Constitution, the term “enrollment” shall have the
20following meaning for school districts, community college districts,
21and state agencies providing direct elementary and secondary level
22instructional services:

23(1) In school districts:

24(A) The average daily attendance of each school district reported
25for the second principal apportionment pursuant to Section 41601.

26(B) The annual average daily attendance for adult education
27programs and classes, as determined under subdivision (d) of
28Section 41601.

29(C) The annual average daily attendance for regional
30occupational centers and programs, as determined under
31subdivision (d) of Section 41601.

32(D) The average daily attendance of apprentices enrolled in any
33class and reported pursuant to Section 8150, except that one unit
34of average daily attendance, for purposes of this paragraph, shall
35equal 525 hours of apprenticeship instruction in an apprenticeship
36program operated pursuant to Chapter 4 (commencing with Section
373070) of Division 3 of the Labor Code.

38(E) (i) The annual average daily attendance for children enrolled
39in a state preschool program under the Child Care and Development
40Services Act (Chapter 2 (commencing with Section 8200) of Part
P45   16), except that one unit of average daily attendance, for purposes
2of this clause, shall equal 700 hours of child care or preschool
3services.

4(ii) The annual average daily attendance for children enrolled
5in any other program under the Child Care and Development
6Services Act (Chapter 2 (commencing with Section 8200) of Part
76), except that one unit of average daily attendance, for purposes
8of this clause, shall equal 250 days of child care services. For the
9purposes of this clause, less than four hours per day of child care
10services shall be defined as one-half day, from four up to six and
11one-half hours per day shall be defined as three-fourths day, and
12six and one-half hours or more per day shall be defined as one full
13day.

14(F) The annual average daily attendance of pupils enrolled in
15summer school, computed pursuant to Section 42239, except that
16one unit of average daily attendance shall equal 700 hours of
17summer school instruction in an approved summer school program.

18(G) The annual average daily attendance for pupils enrolled in
19an educational program offered by a county office of education,
20as determined pursuant to subdivisions (b) and (c) of Section
2141601.

22(2) In community college districts:

23(A) The annual average daily attendance of a community college
24district computed pursuant to Chapter 4 (commencing with Section
2584500) of Part 50, until Section 84750 becomes operative, and
26thereafter the number of full-time equivalent students as computed
27pursuant to Section 84750.

28(B) The annual average daily attendance for evening community
29college programs designated as adult schools pursuant to Section
3078401, as determined pursuant to Section 78405.

31(C) The annual average daily attendance of apprentices enrolled
32in any class and reported pursuant to Section 8150, except that one
33unit of average daily attendance, for purposes of this paragraph,
34shall equal 525 hours of apprenticeship instruction in an
35apprenticeship program operated pursuant to Chapter 4
36(commencing with Section 3070) of Division 3 of the Labor Code.

37(3) In state agencies that provide direct elementary and
38secondary level instructional services:

P46   1(A) The annual average daily attendance equivalent for pupils
2enrolled in the State Schools for the Handicapped pursuant to Part
332 (commencing with Section 59000).

4(B) The annual average daily attendance equivalent for pupils
5attending an educational program administered by the Department
6of the Youth Authority pursuant to Article 6 (commencing with
7Section 1120) and Article 10 (commencing with Section 1250) of
8Part 1 of Division 2 of Chapter 3 of the Welfare and Institutions
9Code.

10(C) The annual average daily attendance equivalent for pupils
11in the state hospitals operated by the State Department of
12Developmental Services pursuant to Chapter 8 (commencing with
13Section 56850) of Part 30.

14(b) Any determination or computation of enrollment for purposes
15of this section shall be based upon actual data from prior years.
16For the next succeeding year, any determination or computation
17of enrollment for purposes of this section shall be the estimated
18enrollment, adjusted as actual data become available.

19(c) This section shall remain in effect only until July 1, 1990,
20and as of that date is repealed, unless Senate Constitutional
21Amendment No. 1 is ratified by the voters at the statewide election
22to be held on June 5, 1990.

end delete
23begin insert

begin insertSEC. 43.end insert  

end insert

begin insertSection 14022.5 of the end insertbegin insertEducation Codeend insertbegin insert, as amended
24by Section 1 of Chapter 92 of the Statutes of 1989, is amended to
25read:end insert

26

14022.5.  

(a) For purposes of Section 8.5 of Article XVI of the
27California Constitution, the term “enrollment” shall have the
28following meaning for school districts, community college districts,
29and state agencies providing direct elementary and secondary level
30instructional services:

31(1) In school districts:

32(A) The average daily attendance of each school district reported
33for the second principal apportionment pursuant to Section 41601.

begin delete

34(B) The annual average daily attendance for adult education
35programs and classes, as determined under subdivision (d) of
36Section 41601.

end delete
begin delete

37(C) The annual average daily attendance for regional
38occupational centers and programs, as determined under
39subdivision (d) of Section 41601.

end delete
begin delete

P47   1(D) The average daily attendance of apprentices enrolled in any
2class and reported pursuant to Section 8150, except that one unit
3of average daily attendance, for purposes of this paragraph, shall
4equal 525 hours of apprenticeship instruction in an apprenticeship
5program operated pursuant to Chapter 4 (commencing with Section
63070) of Division 3 of the Labor Code.

end delete
begin delete

7(E)

end delete

8begin insert(B)end insert (i) The annual average daily attendance for children enrolled
9in a state preschool program under the Child Care and Development
10Services Act (Chapter 2 (commencing with Section 8200) of Part
116), except that one unit of average daily attendance, for purposes
12of this clause, shall equal 700 hours of preschool services.

13(ii) The annual average daily attendance for children enrolled
14in any other program under the Child Care and Development
15Services Act (Chapter 2 (commencing with Section 8200) of Part
166), except that one unit of average daily attendance, for purposes
17of this clause, shall equal 250 days of services. Forbegin delete theend delete purposes
18of this clause, less than four hours per day of services shall be
19defined as one-half day, from four up to six and one-half hours
20per day shall be defined as three-fourths day, and six and one-half
21hours or more per day shall be defined as one full day.

begin delete

22(F) The annual average daily attendance of pupils enrolled in
23summer school, computed pursuant to Section 42239, except that
24one unit of average daily attendance shall equal 700 hours of
25summer school instruction in an approved summer school program.

end delete
begin delete

26(G)

end delete

27begin insert(C)end insert The annual average daily attendance for pupils enrolled in
28an educational program offered by a county office of education,
29as determined pursuant to subdivisions (b) and (c) of Section
3041601.

31(2) In community college districts:

32(A) The annual average daily attendance of a community college
33district computed pursuant to Chapter 4 (commencing with Section
3484500) of Part 50begin insert of Division 7 of Title 3end insert, until Sectionbegin delete 84750end delete
35begin insert 84750.5end insert becomes operative, and thereafter the number of full-time
36equivalent students as computed pursuant to Sectionbegin delete 84750end delete
37begin insert 84750.5end insert.

38(B) The annual average daily attendance for evening community
39college programs designated as adult schools pursuant to Section
4078401begin delete, as determined pursuant to Section 78405end delete.

P48   1(C) The annual average daily attendance of apprentices enrolled
2in any classbegin delete and reported pursuant to Section 8150end delete, except that one
3unit of average daily attendance, for purposes of this paragraph,
4shall equal 525 hours of apprenticeship instruction in an
5apprenticeship program operated pursuant to Chapter 4
6(commencing with Section 3070) of Division 3 of the Labor Code.

7(3) In state agencies that provide direct elementary and
8 secondary level instructional services:

9(A) The annual average daily attendance equivalent for pupils
10enrolled in the State Schools for the Handicapped pursuant to Part
1132 (commencing with Section 59000)begin insert of Division 4 of Title 2end insert.

12(B) The annual average daily attendance equivalent for pupils
13attending an educational program administered by the Department
14of the Youth Authority pursuant to Article 6 (commencing with
15Section 1120) and Article 10 (commencing with Section 1250) of
16Part 1 of Division 2 of Chapter 3 of the Welfare and Institutions
17Code.

18(C) The annual average daily attendance equivalent for pupils
19in the state hospitals operated by the State Department of
20Developmental Services pursuant to Chapter 8 (commencing with
21Section 56850) of Part 30begin insert of Division 4 of Title 2end insert.

22(b) Any determination or computation of enrollment for purposes
23of this section shall be based upon actual data from prior years.
24For the next succeeding year, any determination or computation
25of enrollment for purposes of this section shall be the estimated
26enrollment, adjusted as actual data become available.

begin delete

27(c) This section shall remain in effect only until July 1, 1990,
28and as of that date is repealed, unless Senate Constitutional
29Amendment No. 1 is ratified by the voters at the statewide election
30to be held on June 5, 1990.

end delete
31begin insert

begin insertSEC. 44.end insert  

end insert

begin insertSection 14035 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
32

14035.  

(a) The county school service fund contingency account
33is hereby established in the General Fund. In each fiscal year the
34amount credited to the account shall be one hundred thousand
35dollars ($100,000). Notwithstanding any provision of Section
3614002 to the contrary, the amount to be credited to the county
37school service fund contingency account each fiscal year shall not
38be transferred from the General Fund as required or authorized to
39be transferred by Section 14002, but the amounts required or
40authorized to be transferred by Section 14002 shall be reduced by
P49   1the amount to be credited to the contingency account and shall
2remain in the General Fund to the credit of the contingency
3account.

4(b) The moneys in the General Fund to the credit of the
5contingency account shall be transferred by the Controller to the
6State School Fund in amounts as are certified from time to time
7by the Superintendent of Public Instruction to be necessary to meet
8actual costs to reimburse county superintendents of schools for
9expenses incurred in providing emergency education to pupils and
10making financial grants to school districts pursuant to Section
111602, to reimburse county superintendents of schools for the actual
12and necessary travel expenses incurred in connection with
13cooperative county publication projects by the county
14superintendent of schools or members of his or her staff, and to
15reimburse county superintendents of schools for expenses incurred
16in making emergency financial grants to school districts.

17(c) The amount credited, pursuant to this section, in each fiscal
18year to the county school service fund contingency account in the
19General Fund shall be reduced by the amount of the balance
20remaining to the account on June 30 of the preceding fiscal year
21and an equal reduction shall be made in the amount of the reduction
22in the amounts required or authorized to be transferred under
23Section 14002 in accordance with this section.

end delete
24begin insert

begin insertSEC. 45.end insert  

end insert

begin insertSection 14041 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
25read:end insert

26

14041.  

(a) The Controller shall draw warrants on the State
27Treasury in favor of the county treasurer of each county in each
28month of each year in the amounts and manner prescribed in this
29section so as to provide in each warrant a portion of the total
30amount certified by the Superintendent as apportioned under the
31provisions of Sections 41330 to 41343, inclusive, and Chapter 4
32(commencing with Section 41600) and Chapter 5 (commencing
33with Section 41760.2) and Article 2 (commencing with Section
34begin delete 42238)end deletebegin insert 42238.02)end insert of Chapter 7 of Part 24 of Division 3 of Title 2,
35during the fiscal year from the State School Fund to the school
36districts under the jurisdiction of the county superintendent of
37schools of the county, to the county school service fund, and to
38the county school tuition fund of the county.

39(1) Warrants for amounts allowed to county school service funds
40under subdivisions (a) and (b) of Section 14054 shall be for
P50   1amounts equal to 5 percent in July, 5 percent in August, and 9
2percent in each remaining month of the fiscal year of the amounts
3certified by the Superintendent as a part of the advance
4apportionment.

5(2) Warrants for amounts apportioned to school districts and
6county school service funds for classes maintained by county
7superintendents of schools and to the county school tuition funds
8shall be for amounts equal to 5 percent in July, 5 percent in August,
9and 9 percent in September, October, November, December, and
10January, of the amounts certified by the Superintendent as a part
11of the advance apportionment.

12(3) Warrants in the months of February to May, inclusive, shall
13be for amounts equal to one-fifth of the difference between the
14amounts certified by the Superintendent for school districts and
15county school service funds for classes maintained by county
16superintendents of schools and county school tuition funds as the
17first principal apportionment and the amounts required by
18paragraph (2).

19(4) Warrants for the month of June shall be for amounts equal
20to the difference between the amounts certified by the
21Superintendent for school districts and county school service funds
22for classes maintained by county superintendents of schools and
23county school tuition funds as the second principal apportionment
24and the amounts required by paragraphs (2) and (3).

25(5) Warrants in the months of July and August shall include 5
26percent of the estimated total amounts of the special purpose
27apportionment, as determined by the Superintendent. Warrants in
28the months of September to November, inclusive, shall include 9
29percent of the estimated total amounts of the special purpose
30apportionment, as determined by the Superintendent. Warrants in
31December shall include 9 percent of the amounts certified by the
32Superintendent as the special purpose apportionment, as adjusted,
33if necessary, to correct excesses or deficiencies in the estimates
34made for purposes of the warrants in the months of September to
35November, inclusive. An additional 9 percent of the amounts of
36the special purpose apportionment shall be included in the warrants
37for the months from January to June, inclusive.

38(6) Warrants in June shall include the total amounts certified
39by the Superintendent as the final apportionment.

P51   1(7) Notwithstanding paragraph (2) to the contrary, for school
2districts that reported less than 5,000 units of average daily
3attendance in the 1979-80 fiscal year and that received 39 percent
4or more, but less than 75 percent, of their total revenue limits from
5local property taxes in that fiscal year, warrants for amounts
6apportioned to the school districts shall be for amounts equal to
715 percent in July, August, September, and October; zero percent
8in November and December; and 6 percent in January of the
9amounts certified by the Superintendent as a part of the advance
10apportionment. Warrants for amounts apportioned to the school
11districts for the months of February to May, inclusive, shall be in
12accordance with paragraph (3), and for the month of June, shall
13be in accordance with paragraph (4).

14(8) Notwithstanding paragraph (2) or (7) to the contrary, for
15school districts which reported less than 5,000 units of average
16daily attendance in the 1979-80 fiscal year and which received 75
17percent or more of their total revenue limits from local property
18taxes in that fiscal year, warrants for amounts apportioned to the
19school districts shall be for amounts equal to 15 percent in July;
2030 percent in August and September; 15 percent in October; zero
21percent in November and December; 6 percent in January; and
22zero percent in February, March, April, and May, of the amounts
23certified by the Superintendent as a part of the advance
24apportionment. Warrants for the month of June shall be in
25accordance with paragraph (4).

26(9) (A) Notwithstanding any other law, for the 2012-13 fiscal
27year only, for purposes of warrants drawn on the State Treasury
28pursuant to this section, the amount certified by the Superintendent
29as the advance apportionment and first principal apportionment
30shall include the following reduction:

31(i) The Superintendent shall multiply six billion nine hundred
32twenty-one million five hundred twenty-two thousand dollars
33($6,921,522,000) by the ratio of the revenue limit or charter school
34general purposes funding for each county office of education,
35school district, or charter school, to the statewide total of revenue
36limit and charter school general purpose funding.

37(ii) For each county office of education, school district, or
38charter school, the Superintendent shall subtract the amount
39calculated in clause (i) from the apportionments calculated pursuant
P52   1to Sections 2558, 42238, and 47633begin insert, as those sections read on
2June 30, 2013end insert
.

3(B) Notwithstanding any other law, for the 2012-13 fiscal year,
4the Superintendent shall delay the second principal apportionment
5calculated pursuant to Section 41335 from July 2, 2013, to July
615, 2013, to account for all revenues remitted to school districts
7and county offices of education pursuant to subparagraph (B) of
8paragraph (3) of subdivision (e) of Section 36 of Article XIII of
9the California Constitution. The Superintendent shall ensure that
10the second principal apportionment calculated pursuant to Section
1141335 accounts for the difference between the amount distributed
12pursuant to subparagraph (B) of paragraph (3) of subdivision (e)
13of Section 36 of Article XIII of the California Constitution and
14the offsets listed in subparagraph (A). Nothing in this section shall
15delay the payment of warrants to school districts and county offices
16of education 10 days before the close of the state’s fiscal year
17pursuant to subparagraph (B) of paragraph (3) of subdivision (e)
18of Section 36 of Article XIII of the California Constitution.

19(10) Notwithstanding paragraph (1), (3), or (7), for the 2012-13
20fiscal year only, the Superintendent shall reduce the June warrants
21for any amounts received pursuant to Sections 34179.5 and 34179.6
22of the Health and Safety Code. This reduction shall constitute the
23entire amount distributed pursuant to Sections 34179.5 and 34179.6
24of the Health and Safety Code and offset pursuant to subparagraph
25(B) of paragraph (6) of subdivision (h) of Section 42238, paragraph
26(6) of subdivision (c) of Section 2558, and Section 56836.08begin insert, as
27those sections read on June 30, 2013end insert
.

28(b) The drawing of the warrants required to be drawn during
29any one of the months mentioned may be postponed by the
30Controller for not to exceed 30 days, but the total amounts due the
31several counties during any fiscal year shall be paid within the
32fiscal year. The warrants shall be paid by the Treasurer from the
33State School Fund and are not subject to Section 925.6 of the
34Government Code.

begin delete

35(c) This section shall become inoperative on December 15,
362012, and, as of January 1, 2013, is repealed, only if the Schools
37and Local Public Safety Protection Act of 2012 (Attorney General
38reference number 12-0009) is not approved by the voters at the
39November 6, 2012, statewide general election, or if the provisions
40of that act that modify personal income tax rates do not become
P53   1operative due to a conflict with another initiative measure that is
2approved at the same election and receives a greater number of
3affirmative votes.

end delete
4begin insert

begin insertSEC. 46.end insert  

end insert

begin insertSection 14041.1 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
5

14041.1.  

(a) Except as provided pursuant to subdivision (b),
6notwithstanding paragraphs (1) and (2) of subdivision (a) and
7subdivision (b) of Section 14041, for the 2008-09 fiscal year only:

8(1) Warrants for amounts allowed to the county school service
9funds under subdivisions (a) and (b) of Section 14054 shall be for
10amounts equal to 0.9 percent in July, 12 percent in August, 15.1
11percent in September, and 8 percent in each remaining month of
12the fiscal year of the amounts certified by the Superintendent as a
13part of the advance apportionment.

14(2) Warrants for amounts apportioned to school districts and
15county school service funds for classes maintained by county
16superintendents of schools and to the county school tuition funds
17shall be for amounts equal to 0.9 percent in July, 12 percent in
18August, 13.1 percent in September, and 8 percent in October,
19November, December, and January, of the amounts certified by
20the Superintendent as a part of the advance apportionment.

21(b) Notwithstanding subdivision (a) and subject to the approval
22of the Director of Finance, the Controller shall issue warrants
23pursuant to Section 14041 that include the full amount of the
24apportionment payments for the month of July for a local
25educational agency for which the county superintendent of schools
26certifies to the Superintendent of Public Instruction and to the
27Director of Finance on or before May 15, 2008, that the deferral
28of warrants pursuant to subdivision (a) will result in qualifying the
29local educational agency for an emergency apportionment pursuant
30to Article 2 (commencing with Section 41320) of Chapter 3 of
31Part 24 of Division 3 of Title 2.

end delete
32begin insert

begin insertSEC. 47.end insert  

end insert

begin insertSection 14041.6 of the end insertbegin insertEducation Codeend insertbegin insert is amended
33to read:end insert

34

14041.6.  

(a) Notwithstanding subdivision (a) of Section 14041,
35or any other law,begin delete fromend deletebegin insert forend insert the 2008-09 fiscal yearbegin delete to the 2011-12
36fiscal year, inclusive,end delete
warrants for the principal apportionments
37for the month of February in the amount of two billion dollars
38($2,000,000,000) instead shall be drawn in July of the same
39calendar year pursuant to the certification made pursuant to Section
4041339. begin delete Commencing with the 2012-13 fiscal year, warrants for
P54   1 the principal apportionments for the month of February in the
2amount of five hundred thirty-one million seven hundred twenty
3thousand dollars ($531,720,000) instead shall be drawn in July of
4the same calendar year pursuant to the certification made pursuant
5to Section 41339.end delete

6(b) Notwithstanding subdivision (a) of Section 14041 or any
7other law,begin delete fromend deletebegin insert forend insert the 2009-10 fiscal yearbegin delete to the 2011-12 fiscal
8year, inclusive,end delete
warrants for the principal apportionmentsbegin insert for the
9month of February in the amount of two billion dollars
10($2,000,000,000) instead shall be drawn in July of the same
11 calendar year, and warrantsend insert
for the month of April in the amount
12of six hundred seventy-eight million six hundred eleven thousand
13dollars ($678,611,000) and for the month of May in the amount
14of one billion dollars ($1,000,000,000) instead shall be drawn in
15August of the same calendar year pursuant to the certification made
16pursuant to Section 41339.begin delete Commencing with the 2012-13 fiscal
17year, warrants for the principal apportionments for the month of
18April in the amount of one hundred seventy-five million seven
19hundred twenty-eight thousand dollars ($175,728,000) and for the
20month of May in the amount of one billion one hundred seventy-six
21million seven hundred one thousand dollars ($1,176,701,000)
22instead shall be drawn in July of the same calendar year pursuant
23to the certification made pursuant to Section 41339.end delete

24(c) Notwithstanding subdivision (a) of Section 14041 or any
25 other law,begin delete commencing withend deletebegin insert forend insert the 2010-11 fiscal year, warrants
26for the principal apportionmentsbegin insert for the month of February in the
27amount of two billion dollars ($2,000,000,000),end insert
for the month of
28April in the amount of four hundred nineteen million twenty
29thousand dollars ($419,020,000), for the month of May in the
30amount of eight hundred million dollars ($800,000,000), and for
31the month of June in the amount of five hundred million dollars
32($500,000,000) instead shall be drawn in July of the same calendar
33yearbegin insert and warrants for the month of April in the amount of six
34hundred seventy-eight million six hundred eleven thousand dollars
35($678,611,000) and for the month of May in the amount of one
36billion dollars ($1,000,000,000) instead shall be drawn in Augustend insert

37 pursuant to the certification made pursuant to Section 41339.

38(d) Notwithstanding subdivision (a) of Section 14041 or any
39other law,begin delete inend deletebegin insert forend insert the 2011-12 fiscal year,begin insert warrants for the principal
40apportionments for the month of February in the amount of two
P55   1billion dollars ($2,000,000,000), for the month of April in the
2amount of four hundred nineteen million twenty thousand dollars
3($419,020,000), for the month of May in the amount of eight
4hundred million dollars ($800,000,000), and for the month of June
5in the amount of five hundred million dollars ($500,000,000)
6instead shall be drawn in July of the same calendar year andend insert

7 warrants forbegin delete the principal apportionments forend delete the month of March
8in the amount of one billion three hundred million dollars
9($1,300,000,000)begin delete andend deletebegin insert,end insert for the month of April in the amount of begin delete10 seven hundred sixty-three million seven hundred ninety-four
11thousand dollars ($763,794,000)end delete
begin insert one billion four hundred forty-two
12million four hundred five thousand dollars ($1,442,405,000), and
13for the month of May in the amount of one billion dollars
14($1,000,000,000)end insert
instead shall be drawn in August of the same
15calendar year pursuant to the certification made pursuant to Section
1641339.begin delete Commencing with the 2012-13 fiscal year, warrants for
17the principal apportionments for the month of March in the amount
18of one billion twenty-nine million four hundred ninety-three
19thousand dollars ($1,029,493,000) and for the month of April in
20the amount of seven hundred sixty-three million seven hundred
21ninety-four thousand dollars ($763,794,000) instead shall be drawn
22in August of the same calendar year pursuant to the certification
23made pursuant to Section 41339.end delete

begin insert

24(e) Notwithstanding subdivision (a) of Section 14041, or any
25other law, for the 2012-13 fiscal year warrants for the principal
26apportionments for the month of February in the amount of five
27hundred thirty-one million seven hundred twenty thousand dollars
28($531,720,000), for the month of April in the amount of five
29hundred ninety-four million seven hundred forty-eight thousand
30dollars ($594,748,000), for the month of May in the amount of one
31billion nine hundred seventy-six million seven hundred one
32thousand dollars ($1,976,701,000), and for the month of June in
33the amount of five hundred million dollars ($500,000,000) instead
34shall be drawn in July of the same calendar year and warrants for
35the month of March in the amount of one billion twenty-nine million
36four hundred ninety-three thousand dollars ($1,029,493,000) and
37for the month of April in the amount of seven hundred sixty-three
38million seven hundred ninety-four thousand dollars ($763,794,000)
39instead shall be drawn in August pursuant to the certification made
40pursuant to Section 41339.

end insert
begin insert

P56   1(f) Notwithstanding subdivision (a) of Section 14041, or any
2other law, commencing with the 2013-14 fiscal year warrants for
3the principal apportionments for the month of April in the amount
4of three hundred ninety million nine hundred thirty-nine thousand
5dollars ($390,939,000), for the month of May in the amount of one
6billion nine hundred seventy-six million seven hundred one
7thousand dollars ($1,976,701,000), and for the month of June in
8the amount of five hundred million dollars ($500,000,000) instead
9shall be drawn in July of the same calendar year and warrants for
10the month of April in the amount of seven hundred sixty-three
11million seven hundred ninety-four thousand dollars ($763,794,000)
12instead shall be drawn in August pursuant to the certification made
13pursuant to Section 41339.

end insert
begin insert

14(g) Notwithstanding subdivision (a) of Section 14041 or any
15other law, commencing with the 2013-14 fiscal year, warrants for
16the principal apportionments for the month of May in the amount
17of two hundred million ($200,000,000) and for the month of June
18in the amount of six hundred ninety-nine million four hundred
19seventy-three thousand dollars ($699,473,000) instead shall be
20drawn in July of the same calendar year pursuant to the
21certification made pursuant to Section 41339. The Superintendent
22shall allocate this deferred amount and repayment to local
23educational agencies based on their proportionate share of funding
24appropriated to local educational agencies pursuant to Section
2592 of Chapter 38 of the Statutes of 2012.

end insert
begin delete

26(e)

end delete

27begin insert(h)end insert Except as provided in subdivisions (c) and (e) of Section
2841202, for purposes of making the computations required by
29Section 8 of Article XVI of the California Constitution, the
30warrants drawn pursuant to subdivisions (a)begin delete, (b), (c), and (d)end deletebegin insert to
31(g), inclusive,end insert
shall be deemed to be “General Fund revenues
32appropriated for school districts,” as defined in subdivision (c) of
33Section 41202, for the fiscal year in which the warrants are drawn
34and included within the “total allocations to school districts and
35community college districts from General Fund proceeds of taxes
36appropriated pursuant to Article XIII B,” as defined in subdivision
37(e) of Section 41202, for the fiscal year in which the warrants are
38drawn.

begin delete

39(f) This section shall become inoperative on December 15, 2012,
40and, as of January 1, 2013, is repealed, only if the Schools and
P57   1Local Public Safety Protection Act of 2012 (Attorney General
2reference number 12-0009) is not approved by the voters at the
3November 6, 2012, statewide general election, or if the provisions
4of that act that modify personal income tax rates do not become
5operative due to a conflict with another initiative measure that is
6approved at the same election and receives a greater number of
7affirmative votes.

end delete
8begin insert

begin insertSEC. 48.end insert  

end insert

begin insertSection 14041.65 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
9

14041.65.  

(a) Notwithstanding subdivision (a) of Section
1014041.6, for the 2010-11 fiscal year only, warrants for the principal
11apportionments for the month of February in the amount of
12twenty-four million seven hundred thousand dollars ($24,700,000)
13instead shall be drawn in July of the same calendar year pursuant
14to the certification made pursuant to Section 41339.

15(b) Notwithstanding subdivision (a) of Section 14041.6, for the
162010-11 fiscal year only, warrants for the principal apportionments
17for the month of February in the amount of one billion four hundred
18five million five hundred thousand dollars ($1,405,500,000) instead
19shall be drawn in August of the same calendar year pursuant to
20the certification made pursuant to Section 41339.

21(c) Notwithstanding subdivision (a) of Section 14041.6, for the
222010-11 fiscal year only, warrants for the principal apportionments
23for the month of February in the amount of five hundred sixty-nine
24million eight hundred thousand dollars ($569,800,000) instead
25shall be drawn in September of the same calendar year pursuant
26to the certification made pursuant to Section 41339.

27(d) Notwithstanding subdivision (c) of Section 14041.6, for the
282010-11 fiscal year only, warrants for the principal apportionments
29for the month of April in the amount of four hundred nineteen
30million twenty thousand dollars ($419,020,000) instead shall be
31drawn in September of the same calendar year pursuant to the
32certification made pursuant to Section 41339.

33(e) Notwithstanding subdivision (c) of Section 14041.6, for the
342010-11 fiscal year only, warrants for the principal apportionments
35for the month of May in the amount of eight hundred million
36dollars ($800,000,000) instead shall be drawn in September of the
37same calendar year pursuant to the certification made pursuant to
38Section 41339.

end delete
39begin insert

begin insertSEC. 49.end insert  

end insert

begin insertSection 14401.1 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
P58   1

14401.1.  

Of the amounts appropriated in the items listed in
2paragraph (2) of subdivision (a) of Section 42605 that are contained
3in the annual Budget Act, payments equal to 5 percent of the total
4amount appropriated in those items shall be made for the months
5of July and August. Payments for the months of September to June,
6inclusive, shall be equal to 9 percent of the total amount
7appropriated in those items.

end delete
8begin insert

begin insertSEC. 50.end insert  

end insert

begin insertSection 14501 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
9read:end insert

10

14501.  

(a) As used in this chapter, “financial and compliance
11audit” shall be consistent with the definition provided in the
12“Standards for Audits of Governmental Organizations, Programs,
13Activities, and Functions” promulgated by the Comptroller General
14of the United States. Financial and compliance audits conducted
15under this chapter shall fulfill federal single audit requirements.

16(b) As used in this chapter, “compliance audit” means an audit
17that ascertains and verifies whether or not funds provided through
18apportionment, contract, or grant, either federal or state, have been
19properly disbursed and expended as required by law or regulation
20or both and includes the verification of each of the following:

begin insert

21(1) Expenditure of these funds in accordance with the local
22control and accountability plan adopted by the governing board
23of the school district pursuant to Sections 52060 and 52064 or the
24county board of education pursuant to Sections 52062 and 52064.

end insert
begin delete

25(1)

end delete

26begin insert(2)end insert The reporting requirements for the sufficiency of textbooks
27or instructional materials, or both, as defined in Section 60119.

begin delete

28(2)

end delete

29begin insert(3)end insert Teacher misassignments pursuant to Section 44258.9.

begin delete

30(3)

end delete

31begin insert(4)end insert The accuracy of information reported on the School
32Accountability Report Card required by Section 33126. The
33requirements set forth in paragraphs (1) and (2) and this paragraph
34shall be added to the audit guide requirements pursuant to
35subdivision (b) of Section 14502.1.

36begin insert

begin insertSEC. 51.end insert  

end insert

begin insertSection 17005.3 of the end insertbegin insertEducation Codeend insertbegin insert is amended
37to read:end insert

38

17005.3.  

(a) begin deleteAny end deletebegin insertA end insertschool district with an average daily
39attendance of less than 2,501 pupils may apply to the board for a
40loan to cover the project activities of the first or second phase, as
P59   1those phases were defined on July 1, 1993, of a project funded
2under this chapter. The loan shall not bebegin delete utilizedend deletebegin insert usedend insert for the
3purchase of real property and shall be repaid by the school district
4either through a dedication of fees or charges levied pursuant to
5Section 17620 until the loan is repaid or upon receiving the project
6funding at the construction phase, but, in any event, the loan shall
7be repaid within five years from the date on which the board makes
8the loan. In addition to the other methods of repayment specified
9in this subdivision, the board may also notify the Controller if a
10school district is 90 days late in making loan repayments, in which
11case the Controller shall reduce the apportionments to which the
12school district is otherwise entitled under Section 42238begin insert, as that
13section read on June 30, 2013, and Section 42238.02, as
14implemented pursuant to Section 42238.03,end insert
as necessary to recover
15past due payments and any current payments.

16(b) The board may make loans under this section to the extent
17that the board determines that funds are available for that purpose.
18The total annual maximum funds that may be loaned under this
19section is ten million dollars ($10,000,000) per fiscal year.

20(c) The board may make loans under this section only for those
21projects and phases that have met all of the eligibility standards
22of the board and receive approval for an apportionment, but for
23which apportionment funds are not available. In any event, the
24amount of the loan shall not exceed the amount that would have
25been eligible for apportionment.

26begin insert

begin insertSEC. 52.end insert  

end insert

begin insertSection 17008.3 of the end insertbegin insertEducation Codeend insertbegin insert is amended
27to read:end insert

28

17008.3.  

(a) The board may establish a revolving loan account
29within the State School Building Lease-Purchase Fund, and may
30allocate from the fund to that account those amounts it determines
31to be necessary forbegin delete theend delete purposes of this section.

32(b) The board may apportion tobegin delete anyend deletebegin insert aend insert school district that submits
33to the board a statement of its intent to subsequently file a project
34application under this chapter, a loan for the purpose of advance
35planning and related administrative costs pursuant to the
36preparation of that application. The loan amount shall not exceed
373 percent of the estimated project cost, as determined pursuant to
38the building cost standards established under this chapter.

39(c) If, within a period of 24 months following the receipt of any
40loan amounts under this section, the project for which those
P60   1advance planning funds were provided has not been found by the
2board to be qualified for funding under this chapter, the board shall
3so notify the Controller, who shall reduce the apportionments to
4which thebegin insert schoolend insert district is otherwise entitled under Section 42238begin insert,
5as that section read on June 30, 2013, and Section 42238.02, as
6implemented pursuant to Section 42238.03,end insert
as necessary to repay
7the amount of all loans provided under this section, over such
8period of time as the board finds to be reasonable. The Controller
9shall transfer the amount of all apportionment reductions imposed
10under this subdivision to the revolving loan account established
11under this section.

12(d) The repayment of loan amounts received under this section
13by school districts other than those described under subdivision
14(c) shall be accomplished by the withholding, as determined by
15the board, of apportionment funds that would be available to the
16begin insert schoolend insert district for purposes of the project for which thebegin insert schoolend insert
17 district received funding approval under this chapter.

18begin insert

begin insertSEC. 53.end insert  

end insert

begin insertSection 17193.5 of the end insertbegin insertEducation Codeend insertbegin insert is amended
19to read:end insert

20

17193.5.  

(a) For purposes of this section, “public credit
21provider” means any financial institution or combination of
22financial institutions, that consists either solely, or has as a member
23or participant, a public retirement system. Notwithstanding any
24other law, a public credit provider, in connection with providing
25credit enhancement for bonds, notes, certificates of participation,
26or other evidences of indebtedness of a participating party, may
27require the participating party to agree to the following conditions:

28(1) If a participating party adopts a resolution by a majority vote
29of its board to participate under this section, it shall provide notice
30to the Controller of that election. The notice shall include a
31schedule for the repayment of principal and interest on the bonds,
32notes, certificates of participation, or other evidence of
33indebtedness and identify the public credit provider that provided
34credit enhancement. The notice shall be provided not later than
35the date of issuance of the bonds.

36(2) If, for any reason a public credit provider is required to make
37principal or interest payments or both pursuant to a credit
38enhancement agreement, the public credit provider shall
39immediately notify the Controller of that fact and of the amount
40paid out by the public credit provider.

P61   1(3) Upon receipt of the notice required by paragraph (2), the
2Controller shall make an apportionment to the public credit
3provider in the amount of the payments made by the public credit
4provider for the purpose of reimbursing the public credit provider
5for its expenditures made pursuant to the credit enhancement
6agreement. The Controller shall make that apportionment only
7from moneys designated for apportionments to a participating
8party, provided that such moneys are from one or more of the
9following:

10(A) Anybegin delete revenue limit apportionmentsend deletebegin insert funding apportioned for
11purposes of revenue limits or the local control funding formula
12pursuant to Section 42238.02, as implemented by Section 42238.03,end insert

13 to a school district or county office of education without regard to
14the specific funding source of the apportionment.

15(B) Any general apportionments to a community college district
16without regard to the specific funding source of the apportionment.

17(C) Anybegin delete charter school block grant apportionmentsend deletebegin insert funding
18apportioned for purposes of the charter school block grant or the
19local control funding formula pursuant to Section 42238.02, as
20implemented by Section 42238.03,end insert
to a charter school without
21regard to the specific funding source of the apportionment.

begin delete

22(D) Any charter school categorical block grant apportionments
23to a charter school without regard to the specific funding source
24of the apportionment.

end delete

25(b) The amount apportioned for a participating party pursuant
26to this section shall be deemed to be an allocation to the
27participating party and shall be included in the computation of
28allocation, limit, entitlement, or apportionment for the participating
29party. The participating party and its creditors do not have a claim
30to funds apportioned or anticipated to be apportioned to the trustee
31by the Controller pursuant to paragraph (3) of subdivision (a).

32begin insert

begin insertSEC. 54.end insert  

end insert

begin insertSection 17199.4 of the end insertbegin insertEducation Codeend insertbegin insert is amended
33to read:end insert

34

17199.4.  

(a) Notwithstanding any other law, any participating
35party, in connection with securing financing or refinancing of
36projects, or working capital pursuant to this chapter, may elect to
37guarantee or provide for payment of the bonds and related
38obligations in accordance with the following conditions:

39(1) If a participating party adopts a resolution by a majority vote
40of its board to participate under this section, it shall provide notice
P62   1to the Controller of that election. The notice shall include a
2schedule for the repayment of principal and interest on the bonds,
3and any other costs necessary or incidental to financing pursuant
4to this chapter, and identify a trustee appointed by the participating
5party or the authority for purposes of this section. If payment of
6all or a portion of the principal and interest on the bond is secured
7by a letter of credit or other instrument of direct payment, the
8notice may provide for reimbursements to the provider of the
9instrument in lieu of payment of that portion of the principal and
10interest of the bonds. The notice shall be provided not later than
11the date of issuance of the bonds or 60 days before the next
12payment, whichever date is later. The participating party shall
13update the notice at least annually if there is a change in the
14required payment for any reason, including, but not limited to,
15providing for new or increased costs necessary or incidental to the
16financing.

17(2) If, for any reason, the participating party will not make a
18payment at the time the payment is required, the participating party
19shall notify the trustee of that fact and of the amount of the
20deficiency. If the trustee receives this notice from the participating
21party, or does not receive any payment by the date that payment
22becomes due, the trustee shall immediately communicate that
23information to the Controller.

24(3) Upon receipt of the notice required by paragraph (2), the
25Controller shall make an apportionment to the trustee on the date
26shown in the schedule in the amount of the deficiency for the
27purpose of making the required payment. The Controller shall
28make that apportionment only from moneys designated for
29apportionment to a participating party, provided that such moneys
30are from one or more of the following:

31(A) Anybegin delete revenue limit apportionmentsend deletebegin insert funding apportioned for
32purposes of revenue limits or the local control funding formula
33pursuant to Section 42238.02, as implemented by Section 42238.03,end insert

34 to a school district or county office of education without regard to
35the specific funding source of the apportionment.

36(B) Anybegin delete charter school block grant apportionmentsend deletebegin insert funding
37apportioned for purposes of the charter school block grant or the
38local control funding formula pursuant to Section 42238.02, as
39implemented by Section 42238.03,end insert
to a charter school without
40regard to the specific funding source of the apportionment.

begin delete

P63   1(C) Any charter school categorical block grant apportionments
2to a charter school without regard to the specific funding source
3of the apportionment.

end delete

4(4) As an alternative to the procedures set forth in paragraphs
5(2) and (3), the participating party may provide a transfer schedule
6in its notice to the Controller of its election to participate under
7this section. The transfer schedule shall set forth amounts to be
8transferred to the trustee and the date for the transfers. The
9Controller, subject to the limitation in paragraph (3), shall make
10apportionments to the trustee of those amounts on the specified
11date for the purpose of making those transfers. The authority may
12require a participating party to proceed under this subdivision.

13(b)  The amount apportioned for a participating party pursuant
14to this section shall be deemed to be an allocation to the
15participating party and shall be included in the computation of
16allocation, limit, entitlement, or apportionment for the participating
17party.

18The participating party and its creditors do not have a claim to
19funds apportioned or anticipated to be apportioned to the trustee
20by the Controller pursuant to paragraph (3) and (4) of subdivision
21(a), or to the funds apportioned to by the Controller to the trustee
22under any other provision of this section.

23(c) (1)  Participating parties that elect to participate under this
24section shall apply to the authority. The authority shall consider
25each of the following priorities in making funds available:

26(A) First priority shall be given to school districts, charter
27schools, or county offices of education that apply for funding for
28instructional classroom space.

29(B) Second priority shall be given to school districts, charter
30schools, or county offices of education that apply for funding of
31modernization of instructional classroom space.

32(C) Third priority shall be given to all other eligible costs, as
33defined in Section 17173.

34(2) The authority shall prioritize applications at appropriate
35intervals.

36(3) A school district electing to participate under this section
37that has applied for revenue bond moneys for purposes of joint
38venture school facilities construction projects, pursuant to Article
395 (commencing with Section 17060) of Chapter 12, shall not be
40subject to the priorities set forth in paragraph (1).

P64   1(d) This section shall not be construed to make the State of
2California liable for any payments within the meaning of Section
31 of Article XVI of the California Constitution or otherwise, except
4as expressly provided in this section.

5(e) A school district that has a qualified or negative certification
6pursuant to Section 42131, or a county office of education that has
7a qualified or negative certification pursuant to Section 1240, may
8not participate under this section.

9begin insert

begin insertSEC. 55.end insert  

end insert

begin insertSection 17582 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
10read:end insert

11

17582.  

(a) The governing board ofbegin delete eachend deletebegin insert aend insert school district may
12establish a restricted fund to be known as the “district deferred
13maintenance fund” forbegin delete the purposeend deletebegin insert purposesend insert of major repair or
14replacement of plumbing, heating, air conditioning, electrical,
15roofing, and floor systems, the exterior and interior painting of
16school buildings, the inspection, sampling, and analysis of building
17materials to determine the presence of asbestos-containing
18materials, the encapsulation or removal of asbestos-containing
19materials, the inspection, identification, sampling, and analysis of
20building materials to determine the presence of lead-containing
21materials, the control, management, and removal of lead-containing
22materials, and any other items of maintenance approved by the
23State Allocation Board. Funds deposited in the district deferred
24maintenance fund may be received from any source whatsoever,
25and shall be accounted for separately from all other funds and
26accounts and retained in the district deferred maintenance fund for
27purposes of this section. The term “school building” as used in
28this article includes a facility that a county office of education is
29authorized to use pursuant to Article 3 (commencing with Section
3017280) of Chapter 3.

31(b) Funds deposited in the district deferred maintenance fund
32shall only be expended for maintenance purposes as provided
33 pursuant to subdivision (a).

34(c) The governing board of each school district shall have
35complete control over the funds and earnings of funds once
36deposited in the district deferred maintenance fundbegin delete, provided that
37no funds deposited in the district deferred maintenance fund
38pursuant to subdivision (a) or (b) of Section 17584 may be
39expended by the governing board for any purpose except those
40specified in subdivision (a) of this sectionend delete
.

P65   1begin insert

begin insertSEC. 56.end insert  

end insert

begin insertSection 17583 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
2

17583.  

Notwithstanding Section 17582, whenever the state
3funds provided pursuant to Sections 17584 and 17585 are
4insufficient to fully match the local funds deposited in the deferred
5maintenance fund, the governing board of each school district may
6transfer the excess local funds deposited in that fund to any other
7expenditure classifications in other funds of the district. A
8resolution providing for the transfer shall be approved by a
9two-thirds vote of the governing board members and filed with
10the county superintendent of schools and the county auditor.

end delete
11begin insert

begin insertSEC. 57.end insert  

end insert

begin insertSection 17584 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
12

17584.  

(a) Each fiscal year, the State Allocation Board shall
13apportion, from the State School Deferred Maintenance Fund, to
14school districts an amount equal to one dollar ($1) for each one
15dollar ($1) of local funds up to a maximum of12 percent of the
16district’s second prior fiscal year revenue limit average daily
17 attendance multiplied by the average, per unit of second prior fiscal
18year average daily attendance, of the total expenditures and ending
19fund balances of the total general funds and adult education funds
20for districts of similar size and type, as defined in subdivision (b)
21of Section 42238.4, for the second prior fiscal year, exclusive of
22any amounts expended for capital outlay, debt service, or revenues
23that are passed through to other local education agencies, to the
24extent of funds available.

25(b) In order to be eligible to receive state aid pursuant to
26subdivision (a), no district shall be required to budget from local
27district funds an amount greater than 12 percent of the district’s
28second prior fiscal year revenue limit average daily attendance,
29multiplied by the average, per unit of second prior fiscal year
30average daily attendance, of the total expenditures and ending fund
31balances of the total general funds and adult education funds for
32districts of similar size and type, as defined in subdivision (b) of
33Section 42238.4 for the second prior fiscal year, exclusive of any
34amounts expended for capital outlay, debt service, or revenues that
35are passed through to other local educational agencies.

end delete
36begin insert

begin insertSEC. 58.end insert  

end insert

begin insertSection 17584.1 of the end insertbegin insertEducation Codeend insertbegin insert, as amended
37by Section 18 of Chapter 7 of the Statutes of 2011, is repealed.end insert

begin delete
38

17584.1.  

(a) The governing board of a school district shall
39discuss proposals and plans for expenditure of funds for the
P66   1deferred maintenance of school district facilities at a regularly
2scheduled public hearing.

3(b) The purposes of this section are to inform the public
4regarding the local decisionmaking process relating to the deferred
5maintenance of school facilities and to provide a foundation for
6local accountability in that regard.

7(c) This section shall become inoperative on July 1, 2015, and,
8as of January 1, 2016, is repealed, unless a later enacted statute,
9that becomes operative on or before January 1, 2016, deletes or
10extends the dates on which it becomes inoperative and is repealed.

end delete
11begin insert

begin insertSEC. 59.end insert  

end insert

begin insertSection 17584.1 of the end insertbegin insertEducation Codeend insertbegin insert, as amended
12by Section 19 of Chapter 7 of the Statutes of 2011, is repealed.end insert

begin delete
13

17584.1.  

(a) The governing board of a school district shall
14discuss proposals and plans for expenditure of funds for the
15deferred maintenance of school district facilities at a regularly
16scheduled public hearing.

17(b) In any fiscal year that the school district does not set aside
180.5 percent of its current-year revenue limit average daily
19attendance for deferred maintenance, the governing board of a
20school district shall submit a report to the Legislature by March 1
21of that year, with copies to the Superintendent, the state board, the
22Department of Finance, and the State Allocation Board.

23(c) The report required pursuant to subdivision (b) shall include
24all of the following:

25(1) A schedule of the complete school facilities deferred
26maintenance needs of the school district for the current fiscal year,
27including a schedule of costs per schoolsite and total costs.

28(2) A detailed description of the school district’s spending
29priorities for the current fiscal year and an explanation of why
30those priorities, or any other considerations, have prevented the
31school district from setting aside sufficient local funds so as to
32permit it to fully fund its deferred maintenance program and, if
33eligible, to participate in the state deferred maintenance funding
34program as set forth in Section 17584.

35(3) An explanation of the manner in which the governing board
36of a school district plans to meet its current-year facilities deferred
37maintenance needs without setting aside the funds set forth in
38Section 17584.

P67   1(d) Copies of the report shall be made available at each
2schoolsite within the school district, and shall be provided to the
3public upon request.

4(e) The purposes of this section are to inform the public
5regarding the local decisionmaking process relating to the deferred
6maintenance of school facilities and to provide a foundation for
7local accountability in that regard.

8(f) This section shall become operative on July 1, 2015.

end delete
9begin insert

begin insertSEC. 60.end insert  

end insert

begin insertSection 17584.2 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
10

17584.2.  

At the public hearing required pursuant to Section
1117584.1, the governing board of the school district shall also
12address the use of deferred maintenance funds for the inspection,
13identification, sampling, and analysis of building materials to
14determine the presence of lead-containing materials and the control,
15management, and removal of lead-containing materials.

end delete
16begin insert

begin insertSEC. 61.end insert  

end insert

begin insertSection 17584.3 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
17

17584.3.  

(a) A priority for use of funds appropriated pursuant
18to Section 17584 shall be to ensure that facilities, including, but
19not limited to, restroom facilities for pupils, are functional and that
20they meet local hygiene standards generally applicable to public
21facilities.

22(b) This section does not authorize the use of funds apportioned
23pursuant to Section 17584 for regular operational and maintenance
24costs of restrooms and other facilities. The funds apportioned
25pursuant to Section 17584 may only be used for the deferred
26maintenance of those facilities consistent with subdivision (a) of
27Section 17582.

end delete
28begin insert

begin insertSEC. 62.end insert  

end insert

begin insertSection 17585 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
29

17585.  

(a) School districts may submit applications to the
30State Allocation Board for deferred maintenance funding in
31addition to the amounts specified in Section 17584. In order to be
32eligible for an additional apportionment, a school district shall do
33all of the following:

34(1) Certify that if an additional apportionment is provided, the
35district will have matched the additional apportionment amount
36with an equal amount of district funds that have not been previously
37used as a match for state aid.

38(2) Certify an additional claim of not greater than one-half of
391 percent of the district’s current-year revenue limit average daily
40attendance, multiplied by the average, per unit of average daily
P68   1attendance, of the total general funds and adult education funds
2budgeted by districts of similar size and type, as defined in Section
342238.4 for the prior fiscal year, excluding any amounts budgeted
4for capital outlay or debt service, but including adult education
5funds.

6(3) Certify that any additional funds will be used to meet
7deferred maintenance identified in the district’s five-year deferred
8maintenance plan.

9(b) The State Allocation Board shall establish rules and
10regulations regarding the formulas used to apportion additional
11funds pursuant to this section.

12(c) It is the intent of the Legislature that state funds for deferred
13maintenance be drawn first from excess bond repayments by school
14districts, revenues pursuant to subdivision (f) of Section 6217 of
15the Public Resources Code, and proceeds from existing general
16obligation bonds.

end delete
17begin insert

begin insertSEC. 63.end insert  

end insert

begin insertSection 17586 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
18

17586.  

Notwithstanding any limitations imposed as a result of
19actions taken by the State Allocation Board pursuant to Section
2017462, a school district shall be eligible to receive an
21apportionment pursuant to subdivision (b) of Section 17584, if it
22meets all of the following criteria:

23(a) There are excess revenues that resulted from the sale of
24surplus sites upon which there was no encumbrance to the board.

25(b) The Superintendent of Public Instruction has verified all of
26the following:

27(1) The district had a fiscal emergency in any one or both of the
281987-88 and 1988-89 fiscal years.

29(2) The fiscal emergency was caused primarily by required
30expenditures.

31(3) The district has taken reasonable steps to address the fiscal
32emergency.

end delete
33begin insert

begin insertSEC. 64.end insert  

end insert

begin insertSection 17587 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
34

17587.  

(a) Notwithstanding the limitations of Section 17584,
35the State Allocation Board may each year reserve an amount not
36to exceed 10 percent of the funds transferred from any source to
37the State School Deferred Maintenance Fund for apportionments
38to school districts, in instances of extreme hardship. The
39apportionment shall be in addition to the apportionments made
40pursuant to Section 17584. Not less than one-half of all funds made
P69   1available by this section shall be apportioned to school districts
2that had an average daily attendance, excluding summer session
3attendance, of less than 2,501 during the prior fiscal year.

4An extreme hardship shall exist in a school district if the State
5Allocation Board determines the existence of all of the following:

6(1) That the district has deposited in its deferred maintenance
7fund an amount equal to at least 0.5 percent of the total general
8funds and adult education funds budgeted by the district for the
9fiscal year, exclusive of any amounts budgeted for capital outlay
10or debt service.

11(2) That the district has a critical project on its five-year plan
12which, if not completed in one year, could result in serious damage
13to the remainder of the facility or would result in a serious hazard
14to the health and safety of the pupils attending the facility.

15(3) That the total funds deposited by the district and the state
16pursuant to Section 17584 are insufficient to complete the project.

17(b) If a determination is made that a hardship exists pursuant to
18subdivision (a), the State Allocation Board may increase the
19apportionment to a school district by the amount it determines
20necessary to complete the critical project.

21(c) Notwithstanding subdivision (a), in any fiscal year in which
22the State Allocation Board has apportioned all funding from the
23State School Deferred Maintenance Fund for which school districts
24have qualified under Section 17584, the board may apportion any
25amount remaining in that fund for the purposes of this section.

26(d) This section shall become operative on July 1, 2015.

end delete
27begin insert

begin insertSEC. 65.end insert  

end insert

begin insertSection 17588 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
28

17588.  

As a result of the determination made in Section 17587,
29the State Allocation Board may do any of the following:

30(a) Increase the apportionment to an eligible school district by
31the amount it determines necessary to complete the critical project,
32and require a contribution by the district.

33(b) Waive repayment by the district, in whole or in part.

34(c) Reduce state apportionments pursuant to Section 17584 in
35future years to offset the increased apportionment.

36The State Allocation Board shall develop and adopt regulations
37for the application of subdivisions (a), (b), and (c). The regulations
38may give consideration to a school district’s financial resources,
39ongoing deferred maintenance needs, and the nature of the project
40for which the hardship apportionment is requested.

P70   1The waiver authorized in subdivision (b) may be applied by the
2board to any repayment otherwise required by law, regardless of
3apportionment date.

end delete
4begin insert

begin insertSEC. 66.end insert  

end insert

begin insertSection 17592 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
5

17592.  

From any moneys in the State School Deferred
6Maintenance Fund, the board shall make available to the Director
7of General Services such amounts as it determines necessary to
8provide the assistance, pursuant to this chapter, required by Section
915504 of the Government Code.

end delete
10begin insert

begin insertSEC. 67.end insert  

end insert

begin insertSection 17592.74 of the end insertbegin insertEducation Codeend insertbegin insert is amended
11to read:end insert

12

17592.74.  

Notwithstanding any other law, the funds provided
13to school districts from the School Facilities Emergency Repair
14Account pursuant to this article for the purpose of emergency repair
15grants shall not bebegin delete used to do either of the following:end deletebegin insert deposited
16into a school district deferred maintenance fund for purposes
17established pursuant to Section 17582.end insert

begin delete

18(a) Supplant funds provided to local educational agencies for
19the deferred maintenance of school facilities pursuant to Sections
2017584 and 17587.

end delete
begin delete

21(b) Be deposited into a school district deferred maintenance
22fund for the purposes established pursuant to Section 17582.

end delete
23begin insert

begin insertSEC. 68.end insert  

end insert

begin insertPart 10.7 (commencing with Section 17910) of
24Division 1 of Title 1 of the end insert
begin insertEducation Codeend insertbegin insert is repealed.end insert

25begin insert

begin insertSEC. 69.end insert  

end insert

begin insertArticle 3.6 (commencing with Section 32228) of
26Chapter 2 of Part 19 of Division 1 of Title 1 of the end insert
begin insertEducation Codeend insert
27begin insert is repealed.end insert

28begin insert

begin insertSEC. 70.end insert  

end insert

begin insertSection 32282 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
29read:end insert

30

32282.  

(a) The comprehensive school safety plan shall include,
31but not be limited to, both of the following:

32(1) Assessing the current status of school crime committed on
33school campuses and at school-related functions.

34(2) Identifying appropriate strategies and programs that will
35provide or maintain a high level of school safety and address the
36school’s procedures for complying with existing laws related to
37school safety, which shall include the development of all of the
38following:

P71   1(A) Child abuse reporting procedures consistent with Article
22.5 (commencing with Section 11164) of Chapter 2 of Title 1 of
3Part 4 of the Penal Code.

4(B) Disaster procedures, routine and emergency, including
5adaptations for pupils with disabilities in accordance with the
6federal Americans with Disabilities Act of 1990 (42 U.S.C. Sec.
712101 et seq.). The disaster procedures shall also include, but not
8be limited to, both of the following:

9(i) Establishing an earthquake emergency procedure system in
10every public school building having an occupant capacity of 50
11or more pupils or more than one classroom. Abegin insert schoolend insert district or
12county officebegin insert of educationend insert may work with the California
13Emergency Management Agency and the Seismic Safety
14Commission to develop and establish the earthquake emergency
15procedure system. The system shall include, but not be limited to,
16all of the following:

17(I) A school building disaster plan, ready for implementation
18at any time, for maintaining the safety and care of pupils and staff.

19(II) A drop procedure whereby each pupil and staff member
20takes cover under a table or desk, dropping to his or her knees,
21with the head protected by the arms, and the back to the windows.
22A drop procedure practice shall be held at least once each school
23quarter in elementary schools and at least once a semester in
24secondary schools.

25(III) Protective measures to be taken before, during, and
26following an earthquake.

27(IV) A program to ensure that pupils and both the certificated
28and classified staff are aware of, and properly trained in, the
29earthquake emergency procedure system.

30(ii) Establishing a procedure to allow a public agency, including
31the American Red Cross, to use school buildings, grounds, and
32equipment for mass care and welfare shelters during disasters or
33other emergencies affecting the public health and welfare. The
34begin insert schoolend insert district or county officebegin insert of educationend insert shall cooperate with
35the public agency in furnishing and maintaining the services as
36thebegin insert schoolend insert district or county officebegin insert of educationend insert may deem
37necessary to meet the needs of the community.

38(C) Policies pursuant to subdivision (d) of Section 48915 for
39pupils who committed an act listed in subdivision (c) of Section
4048915 and other school-designated serious acts which would lead
P72   1to suspension, expulsion, or mandatory expulsion recommendations
2pursuant to Article 1 (commencing with Section 48900) of Chapter
36 of Part 27 of Division 4 of Title 2.

4(D) Procedures to notify teachers of dangerous pupils pursuant
5to Section 49079.

6(E) A discrimination and harassment policy consistent with the
7prohibition against discrimination contained in Chapter 2
8(commencing with Section 200) of Part 1.

9(F) The provisions of any schoolwide dress code, pursuant to
10Section 35183, that prohibits pupils from wearing “gang-related
11apparel,” if the school has adopted that type of a dress code. For
12those purposes, the comprehensive school safety plan shall define
13“gang-related apparel.” The definition shall be limited to apparel
14that, if worn or displayed on a school campus, reasonably could
15be determined to threaten the health and safety of the school
16environment. Any schoolwide dress code established pursuant to
17this section and Section 35183 shall be enforced on the school
18 campus and at any school-sponsored activity by the principal of
19the school or the person designated by the principal. For purposes
20of this paragraph, “gang-related apparel” shall not be considered
21a protected form of speech pursuant to Section 48950.

22(G) Procedures for safe ingress and egress of pupils, parents,
23and school employees to and from school.

24(H) A safe and orderly environment conducive to learning at
25the school.

26(I) The rules and procedures on school discipline adopted
27pursuant to Sections 35291 and 35291.5.

28(b) It is the intent of the Legislature that schools develop
29comprehensive school safety plans using existing resources,
30including the materials and services of the partnership, pursuant
31to this chapter. It is also the intent of the Legislature that schools
32use the handbook developed and distributed by the School/Law
33Enforcement Partnership Program entitled “Safe Schools: A
34Planning Guide for Action” in conjunction with developing their
35plan for school safety.

begin delete

36(c) Grants to assist schools in implementing their comprehensive
37school safety plan shall be made available through the partnership
38as authorized by Section 32285.

end delete
begin delete

39(d)

end delete

P73   1begin insert(c)end insert Each schoolsite council or school safety planning committee
2in developing and updating a comprehensive school safety plan
3shall, where practical, consult, cooperate, and coordinate with
4other schoolsite councils or school safety planning committees.

begin delete

5(e)

end delete

6begin insert(d)end insert The comprehensive school safety plan may be evaluated
7and amended, as needed, by the school safety planning committee,
8but shall be evaluated at least once a year, to ensure that the
9comprehensive school safety plan is properly implemented. An
10updated file of all safety-related plans and materials shall be readily
11available for inspection by the public.

begin delete

12(f)

end delete

13begin insert(e)end insert As comprehensive school safety plans are reviewed and
14updated, the Legislature encourages all plans, to the extent that
15resources are available, to include policies and procedures aimed
16at the prevention of bullying.

begin delete

17(g)

end delete

18begin insert(f)end insert The comprehensive school safety plan, as written and updated
19by the schoolsite council or school safety planning committee,
20shall be submitted for approval under subdivision (a) of Section
2132288.

22begin insert

begin insertSEC. 71.end insert  

end insert

begin insertSection 32285 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
23

32285.  

(a) The governing board of a school district, on behalf
24of one or more schools within the district that have developed a
25school safety plan, may apply to the Superintendent of Public
26Instruction for a grant to implement school safety plans. The
27partnership shall award grants for school safety plans that include,
28but are not limited to, the following criteria:

29(1) Assessment of the recent incidence of crime committed on
30the school campus.

31(2) Identification of appropriate strategies and programs that
32will provide or maintain a high level of school safety.

33(3) Development of an action plan, in conjunction with local
34law enforcement agencies, for implementing appropriate safety
35strategies and programs, and determining the fiscal impact of
36executing the strategies and programs. The action plan shall
37identify available resources which will provide for implementation
38of the plan.

39(b) The Superintendent of Public Instruction shall award grants
40pursuant to this section to school districts for the implementation
P74   1of individual school safety plans in an amount not to exceed five
2thousand dollars ($5,000) for each school. No grant shall be made
3unless the school district makes available, for purposes of
4implementing the school safety plans, an amount of funds equal
5to the amount of the grant. Grants should be awarded through a
6competitive process, based upon criteria including, but not limited
7to, the merit of the proposal and the need for imposing school
8safety, based on school crime rates.

9(c) Any school receiving a grant under this section shall submit
10to the Superintendent of Public Instruction verified copies of its
11schoolsite crime report annually for three consecutive years
12following the receipt of the grant to study the impact of the
13implementation of the school safety plan on the incidence of crime
14on the campus of the school.

end delete
15begin insert

begin insertSEC. 72.end insert  

end insert

begin insertSection 33127 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
16read:end insert

17

33127.  

(a) The Superintendentbegin delete of Public Instructionend delete, the
18Controller, and the Director of the Department of Finance shall
19develop, on or before March 1, 1989, standards and criteria to be
20reviewed and adopted by thebegin delete State Board of Education,end deletebegin insert state board,end insert
21 and to be used by local educational agencies in the development
22of annual budgets and the management of subsequent expenditures
23from that budget. During the development of the standards and
24criteria, the Superintendentbegin delete of Public Instructionend delete shall convene a
25committee composed of representatives from school districts,
26county offices of education, state agencies, the Legislature, and
27appropriate labor and professional organizations. The committee
28may review and comment on the proposal standards and criteria
29prior to their adoption. In addition, the standards and criteria shall
30be used to monitor the fiscal stability of local educational agencies
31as provided for in Sections 1240.1, 1240.2, 1621, 1623, 33131,
3242127, and 42127.1.

33(b) The Superintendentbegin delete of Public Instructionend delete, the Controller,
34and the Director of the Department of Finance shall update the
35standards and criteria developed pursuant to subdivision (a) on or
36before September 1, 2005. The updated standards and criteria shall
37be reviewed and adopted pursuant to the procedure established by
38subdivision (a) and are applicable to local educational agency
39budgets commencing with the 2006-07 fiscal year and each fiscal
40year thereafter.

begin insert

P75   1(c) The Superintendent, the Controller, and the Director of the
2Department of Finance shall update the standards and criteria
3developed pursuant to subdivision (a) on or before January 1,
42014. Standards and criteria related to the requirements of Article
53.8 (commencing with Section 52060) of Chapter 6.1 of Part 28
6of Title 2 shall be included. The updated standards and criteria
7shall be reviewed and adopted pursuant to the procedure
8established by subdivision (a) and are applicable to local
9educational agency budgets commencing with the 2014-15 fiscal
10year and each fiscal year thereafter.

end insert
begin delete

11(c)

end delete

12begin insert(d)end insert Afterbegin delete September 1, 2005,end deletebegin insert January 1, 2014,end insert to the extent
13necessary, any revisions or updates to the standards and criteria
14shall be developed by the Superintendentbegin delete of Public Instructionend delete,
15the Controller, and the Director of the Department of Finance
16pursuant the procedures established by subdivision (a). The
17revisions or updates shall specify the fiscal year in which the
18revisions or updates are applicable.

19begin insert

begin insertSEC. 73.end insert  

end insert

begin insertSection 35186 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
20read:end insert

21

35186.  

(a) A school district shall use the uniform complaint
22process it has adopted as required by Chapter 5.1 (commencing
23with Section 4600)begin insert of Division 1end insert of Title 5 of the California Code
24of Regulations, with modifications, as necessary, to help identify
25and resolve any deficiencies related to instructional materials,
26emergency or urgent facilities conditions that pose a threat to the
27health and safety of pupils or staff,begin insert andend insert teacher vacancy or
28misassignmentbegin delete, and intensive instruction and services provided
29pursuant to Section 37254 to pupils who have not passed one or
30both parts of the high school exit examination after the completion
31of grade 12end delete
.

32(1) A complaint may be filed anonymously. A complainant who
33identifies himself or herself is entitled to a response if he or she
34indicates that a response is requested. A complaint form shall
35include a space to mark to indicate whether a response is requested.
36If Section 48985 is otherwise applicable, the response, if requested,
37and report shall be written in English and the primary language in
38which the complaint was filed. All complaints and responses are
39public records.

P76   1(2) The complaint form shall specify the location for filing a
2complaint. A complainant may add as much text to explain the
3complaint as he or she wishes.

4(3) Except as provided pursuant to paragraph (4), a complaint
5shall be filed with the principal of the school or his or her designee.
6A complaint about problems beyond the authority of the school
7 principal shall be forwarded in a timely manner but not to exceed
810 working days to the appropriate school district official for
9resolution.

begin delete

10(4) A complaint regarding any deficiencies related to intensive
11instruction and services provided pursuant to Section 37254 to
12pupils who have not passed one or both parts of the high school
13exit examination after the completion of grade 12 shall be
14submitted to the district official designated by the district
15superintendent. A complaint may be filed at the school district
16office, or it may be filed at the schoolsite and shall be immediately
17forwarded to the designee of the district superintendent.

end delete

18(b) The principal or the designee of the district superintendent,
19as applicable, shall make all reasonable efforts to investigate any
20problem within his or her authority. The principal or designee of
21the district superintendent shall remedy a valid complaint within
22a reasonable time period but not to exceed 30 working days from
23the date the complaint was received. The principal or designee of
24the district superintendent shall report to the complainant the
25resolution of the complaint within 45 working days of the initial
26filing. If the principal makes this report, the principal shall also
27report the same information in the same timeframe to the designee
28of the district superintendent.

29(c) A complainant not satisfied with the resolution of the
30principal or the designee of the district superintendent has the right
31to describe the complaint to the governing board of the school
32district at a regularly scheduled hearing of the governing boardbegin insert of
33the school districtend insert
. As to complaints involving a condition of a
34facility that poses an emergency or urgent threat, as defined in
35paragraph (1) of subdivision (c) of Section 17592.72, a complainant
36who is not satisfied with the resolution proffered by the principal
37or the designee of the district superintendent has the right to file
38an appeal to the Superintendent, who shall provide a written report
39to the state board describing the basis for the complaint and, as
P77   1appropriate, a proposed remedy for the issue described in the
2complaint.

3(d) A school district shall report summarized data on the nature
4and resolution of all complaints on a quarterly basis to the county
5superintendent of schools and the governing board of the school
6district. The summaries shall be publicly reported on a quarterly
7basis at a regularly scheduled meeting of the governing board of
8the school district. The report shall include the number of
9complaints by general subject area with the number of resolved
10and unresolved complaints. The complaints and written responses
11shall be available as public records.

12(e) The procedure required pursuant to this section is intended
13to address all of the following:

14(1) A complaint related to instructional materials as follows:

15(A) A pupil, including an English learner, does not have
16standards-aligned textbooks or instructional materials or
17state-adopted or district-adopted textbooks or other required
18instructional material to use in class.

19(B) A pupil does not have access to instructional materials to
20use at home or after school.

21(C) Textbooks or instructional materials are in poor or unusable
22condition, have missing pages, or are unreadable due to damage.

23(2) A complaint related to teacher vacancy or misassignment
24as follows:

25(A) A semester begins and a teacher vacancy exists.

26(B) A teacher who lacks credentials or training to teach English
27learners is assigned to teach a class with more than 20-percent
28English learner pupils in the class. This subparagraph does not
29relieve a school district from complying with state or federal law
30regarding teachers of English learners.

31(C) A teacher is assigned to teach a class for which the teacher
32lacks subject matter competency.

33(3) A complaint related to the condition of facilities that pose
34an emergency or urgent threat to the health or safety of pupils or
35staff as defined in paragraph (1) of subdivision (c) of Section
3617592.72 and any other emergency conditions the school district
37determines appropriate and the requirements established pursuant
38to subdivision (a) of Section 35292.5.

begin delete

P78   1(4) A complaint related to the provision of intensive instruction
2and services pursuant to paragraphs (4) and (5) of subdivision (d)
3of Section 37254.

end delete

4(f) In order to identify appropriate subjects of complaint, a notice
5shall be posted in each classroom in each school in the school
6district notifying parents, guardians, pupils, and teachers of the
7following:

8(1) There should be sufficient textbooks and instructional
9materials. For there to be sufficient textbooks and instructional
10materials each pupil, including English learners, must have a
11textbook or instructional materials, or both, to use in class and to
12take home.

13(2) School facilities must be clean, safe, and maintained in good
14repair.

15(3) There should be no teacher vacancies or misassignments as
16defined in paragraphs (2) and (3) of subdivision (h).

begin delete

17(4) Pupils who have not passed the high school exit examination
18by the end of grade 12 are entitled to receive intensive instruction
19and services for up to two consecutive academic years after
20completion of grade 12 or until the pupil has passed both parts of
21the high school exit examination, whichever comes first, pursuant
22to paragraphs (4) and (5) of subdivision (d) of Section 37254. The
23information in this paragraph, which is to be included in the notice
24required pursuant to this subdivision, shall only be included in
25notices posted in classrooms in schools with grades 10 to 12,
26inclusive.

end delete
begin delete

27(5)

end delete

28begin insert(4)end insert The location at which to obtain a form to file a complaint
29in case of a shortage. Posting a notice downloadable from the
30Internet Web site of the department shall satisfy this requirement.

31(g) A local educational agency shall establish local policies and
32procedures, post notices, and implement this section on or before
33January 1, 2005.

34(h) For purposes of this section, the following definitions apply:

35(1) “Good repair” has the same meaning as specified in
36subdivision (d) of Section 17002.

37(2) “Misassignment” means the placement of a certificated
38employee in a teaching or services position for which the employee
39does not hold a legally recognized certificate or credential or the
40placement of a certificated employee in a teaching or services
P79   1position that the employee is not otherwise authorized by statute
2to hold.

3(3) “Teacher vacancy” means a position to which a single
4designated certificated employee has not been assigned at the
5beginning of the year for an entire year or, if the position is for a
6one-semester course, a position to which a single designated
7certificated employee has not been assigned at the beginning of a
8semester for an entire semester.

9begin insert

begin insertSEC. 74.end insert  

end insert

begin insertSection 35292.5 of the end insertbegin insertEducation Codeend insertbegin insert is amended
10to read:end insert

11

35292.5.  

(a) Every public and private school maintaining any
12combination of classes from kindergarten to grade 12, inclusive,
13shall comply with all of the following:

14(1) Every restroom shall at all times be maintained and cleaned
15regularly, fully operational and stocked at all times with toilet
16paper, soap, and paper towels or functional hand dryers.

17(2) The school shall keep all restrooms open during school hours
18when pupils are not in classes, and shall keep a sufficient number
19of restrooms open during school hours when pupils are in classes.

20(b) Notwithstanding subdivision (a), a school may temporarily
21closebegin delete anyend deletebegin insert aend insert restroom as necessary for pupil safety or as necessary
22to repair the facility.

begin delete

23(c) Any school district that operates a public school that is in
24violation of this section as determined by the State Allocation
25Board, is ineligible for state deferred maintenance fund matching
26apportionments pursuant to Section 17584 if the school district
27has not corrected the violation within 30 days after receipt of a
28written notice of the violation from the board. Prior to determining
29that the school district is ineligible, the board shall provide the
30school district with a reasonable opportunity to cure the violation.
31The board shall notify the Superintendent of Public Instruction
32regarding a school district found to be in violation of this section.
33The Superintendent of Public Instruction shall notify the Controller
34to withhold apportionments otherwise due the school district under
35Section 17584.

end delete
36begin insert

begin insertSEC. 75.end insert  

end insert

begin insertArticle 10.4 (commencing with Section 35294.10) of
37Chapter 2 of Part 21 of Division 3 of Title 2 of the end insert
begin insertEducation Codeend insert
38begin insert is repealed.end insert

39begin insert

begin insertSEC. 76.end insert  

end insert

begin insertSection 35735 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
40read:end insert

P80   1

35735.  

(a) Each proposal for the reorganization of school
2districts shall include a computation of thebegin delete base revenue limitend delete
3begin insert current and projected local control funding formula allocation
4pursuant to Section 42238.02, as implemented by Section 42238.03,end insert

5 per unit of average daily attendance for thebegin insert schoolend insert districts. That
6computation shall be an integral part of the proposal and shall not
7be considered separately from the proposal. The computation of
8thebegin delete base revenue limitend deletebegin insert local control funding formula allocation
9pursuant to Section 42238.02, as implemented by Section 42238.03,end insert

10 for the newly organized school districts shall be based on the
11current information available for each affected school district for
12the second principal apportionment period for the fiscal yearbegin delete two
13years prior toend delete
begin insert beforeend insert the fiscal year in which the reorganization is
14to become effectivebegin insert, unless subdivision (f) applies, in which case
15the computation for the newly organized school districts shall be
16based on the local control funding formula grant pursuant to
17Section 42238.02, as implemented by Section 42238.03end insert
.begin delete The
18computation of any adjustments for employee salaries and benefits
19shall be based on information from the fiscal year two years prior
20to the fiscal year in which the reorganization is to become effective.end delete

21 Forbegin delete theend delete purposes of this article “affected school district” means a
22school district affected by a reorganization because all or a portion
23of its average daily attendance is to be included in the newly
24organized school districts.

25(b) The county superintendent of schools shall compute thebegin delete base
26revenue limitend delete
begin insert local control funding formula allocation pursuant
27to Section 42238.02, as implemented by Section 42238.03,end insert
per unit
28of average daily attendance pursuant to Section 35735.1 for a
29school district involved in an action to reorganize and in an action
30to transfer territory.

31(c) Thebegin delete State Department of Educationend deletebegin insert departmentend insert shall use
32information provided pursuant to subdivision (a) by the county
33superintendent of schools in each county that has a school district
34affected by an action to unify or by an appeal of a transfer of
35territory to compute thebegin delete base revenue limitend deletebegin insert local control funding
36formula allocation pursuant to Section 42238.02, as implemented
37by Section 42238.03,end insert
per unit of average daily attendance for a
38newly organized school district pursuant to Section 35735.1.

P81   1(d) This section shallbegin delete notend deletebegin insert onlyend insert apply to any reorganization
2 proposal approved by thebegin delete State Board of Education prior to January
31, 1995end delete
begin insert state board subsequent to July 1, 2013end insert.

4(e) Any costs incurred by the county superintendent of schools
5in preparing reports pursuant to this sectionbegin delete or Section 35735.1 or
635735.2end delete
may be billed to the affected school districts on a
7proportionate basis.

begin insert

8(f) Upon a determination that all school districts or charter
9schools equal or exceed the local control funding formula target
10computed pursuant to Section 42238.02 as determined by the
11calculation of a zero difference pursuant to paragraph (1) of
12subdivision (b) of Section 42238.03 for all school districts and
13charter schools, a reorganizing school district shall compute a
14per unit of average daily attendance funding level pursuant to the
15local control funding formula pursuant to Section 42238.02.

end insert
16begin insert

begin insertSEC. 77.end insert  

end insert

begin insertSection 35735.1 of the end insertbegin insertEducation Codeend insertbegin insert is amended
17to read:end insert

18

35735.1.  

(a) Thebegin delete base revenue limitend deletebegin insert local control funding
19formula allocationend insert
per unit of average daily attendance for newly
20organized school districts shall be equal to the total of the amount
21ofbegin delete blended revenue limitend deletebegin insert the local control funding formula
22allocation pursuant to Section 42238.02, as implemented by Section
2342238.03,end insert
per unit of average daily attendance of the affected
24school districts computed pursuant to paragraph (1)begin delete, the amount
25based on salaries and benefits of classified employees computed
26pursuant to paragraph (2), the amount based on salaries and benefits
27of certificated employees calculated pursuant to paragraph (3),
28and the amount of the inflation adjustment calculated pursuant to
29paragraph (4)end delete
. The following computations shall be made to
30determine thebegin delete base revenue limitend deletebegin insert local control funding formula
31allocation pursuant to Section 42238.02, as implemented by Section
3242238.03,end insert
per unit of average daily attendance for the newly
33organized school districts:

34(1) Perform the following computation to arrive at the blended
35begin delete revenue limit:end deletebegin insert local control funding formula pursuant to Section
3642238.02, as implemented by Section 42238.03:end insert

37(A) Based on the current information available for each affected
38school district for the second principal apportionment period for
39the fiscal yearbegin delete, two years prior toend deletebegin insert beforeend insert the fiscal year in which
40the reorganization is to become effective, multiply thebegin delete base revenue
P82   1limitend delete
begin insert local control funding formula allocation pursuant to Section
242238.02, as implemented by Section 42238.03,end insert
per unit of average
3daily attendance for that school district by the number of units of
4average daily attendance for that school district that the county
5superintendent of schools determines will be included in the
6proposed school district.

7(B) Add the amounts calculated pursuant to subparagraph (A)
8begin insert and divide that sum by the number of units of average daily
9attendance in the newly organized school districtsend insert
.

begin delete

10(2) For each affected school district in the newly organized
11school districts, the following computation shall be made to
12determine the amount to be included in the base revenue limit per
13unit of average daily attendance for the newly organized school
14districts that is based on the salaries and benefits of full-time
15equivalent classified employees:

end delete
begin delete

16(A) For each of those school districts, make the following
17computation to arrive at the highest average amount expended for
18salaries and benefits for classified full-time employees by the
19districts:

end delete
begin delete

20(i) Add the amount of all salaries and benefits for classified
21employees of the district, including both part-time and full-time
22employees.

end delete
begin delete

23(ii) Divide the amount computed in clause (i) by the total number
24of full-time equivalent classified employees in the district.

end delete
begin delete

25(B) Among those school districts that will make up 25 percent
26or more of the average daily attendance of the resulting newly
27organized school district, compare the amounts determined for
28each of those school districts pursuant to subparagraph (A) and
29identify the highest average amount expended for salaries and
30benefits for classified employees.

end delete
begin delete

31(C) For each of the school districts with salaries and benefits
32that are below the highest average amount identified in
33subparagraph (B) and that are included, in whole or in part, in the
34newly organized district, subtract the amount determined for the
35district pursuant to subparagraph (A) from the amount identified
36pursuant to subparagraph (B).

end delete
begin delete

37(D) For each of those school districts, multiply the amount
38determined for the district pursuant to subparagraph (C) by the
39number of full-time equivalent classified employees employed by
P83   1the district, and then multiply by the percentage of the district’s
2average daily attendance to be included in the new district.

end delete
begin delete

3(E) Add the amounts computed for each school district pursuant
4to subparagraph (D).

end delete
begin delete

5(3) For each affected school district in the newly organized
6school districts, the following computation shall be made to
7determine the amount to be included in the base revenue limit per
8unit of average daily attendance for the newly organized school
9districts that is based on the salaries and benefits of full-time
10equivalent certificated employees:

end delete
begin delete

11(A) For each of those school districts, make the following
12computation to determine the highest average amount expended
13for salaries and benefits for certificated full-time employees:

end delete
begin delete

14(i) Add the amount of all salaries and benefits for certificated
15employees, including both part-time and full-time employees.

end delete
begin delete

16(ii) Divide the amount determined in clause (i) by the total
17number of full-time equivalent certificated employees in the
18district.

end delete
begin delete

19(B) Among those school districts that will make up 25 percent
20or more of the average daily attendance of the resulting newly
21organized school district, compare the amounts determined for
22each school district pursuant to subparagraph (A) and identify the
23highest average amount expended for salaries and benefits for
24certificated employees.

end delete
begin delete

25(C) For each of the school districts with salaries and benefits
26that are below the highest average amount identified in
27subparagraph (B) and that are included, in whole or in part, in the
28newly organized school district, subtract the amount determined
29for the district pursuant to subparagraph (A) from the amount
30identified pursuant to subparagraph (B).

end delete
begin delete

31(D) For each of those school districts, multiply the amount
32determined for the district pursuant to subparagraph (C) by the
33number of full-time equivalent certificated employees of the school
34district, and then multiply by the percentage of the district’s
35average daily attendance to be included in the new district.

end delete
begin delete

36(E) Add the amount calculated for each school district identified
37pursuant to subparagraph (D).

end delete
begin delete

38(4) The base revenue limit per unit of average daily attendance
39shall be adjusted for inflation as follows:

end delete
begin delete

P84   1(A) Add the amounts determined pursuant to subparagraph (B)
2of paragraph (1), subparagraph (E) of paragraph (2), and
3subparagraph (E) of paragraph (3), and divide that sum by the
4number of units of average daily attendance in the newly organized
5school districts. The amount determined pursuant to this
6subparagraph shall not exceed 110 percent of the blended revenue
7limit per unit of average daily attendance calculated pursuant to
8paragraph (1).

end delete
begin delete

9(B) (i) Increase the amount determined pursuant to
10subparagraph (A) by the amount of the inflation adjustment
11calculated and used for apportionment purposes pursuant to Section
1242238.1 for the fiscal year immediately preceding the year in which
13the reorganization becomes effective.

end delete
begin delete

14(ii) With respect to a school district that unifies effective July
151, 1997, and that has an average daily attendance in the 1996-97
16fiscal year of more than 1,500 units, increase the amount
17determined pursuant to subparagraph (A) by an amount calculated
18as follows:

end delete
begin delete

19(I) For each component district of the newly unified district,
20multiply the amount of revenue limit equalization aid per unit of
21average daily attendance determined pursuant to Sections 42238.41,
2242238.42, and 42238.43, or any other sections of law, for the
231996-97 fiscal year by the 1996-97 second principal apportionment
24units of average daily attendance determined pursuant to Section
2542238.5 for that component district.

end delete
begin delete

26(II) Add the results for all component districts, and divide this
27amount by the sum of the 1996-97 second principal apportionment
28units of average daily attendance determined pursuant to Section
2942238.5 for all component districts.

end delete
begin delete

30(C) Increase the amount determined pursuant to subparagraph
31(B) by the amount of the inflation adjustment calculated and used
32for apportionment purposes pursuant to Section 42238.1 for the
33fiscal year in which the reorganization becomes effective for all
34purposes.

end delete
begin delete

35(D) Increase the amount determined pursuant to subparagraph
36(C) by any other adjustments to the base revenue limit per unit of
37average daily attendance that the newly organized school districts
38would have been eligible to receive had they been reorganized in
39the fiscal year two years prior to the year in which the
40reorganization becomes effective for all purposes.

end delete

P85   1(b) The amount determined pursuant tobegin delete subparagraph (D) of
2paragraph (4) ofend delete
subdivision (a) shall be thebegin delete base revenue limitend delete
3begin insert local control funding formula allocation pursuant to Section
442238.02, as implemented by Section 42238.03,end insert
per unit of average
5daily attendance for the newly organized school districts.

6(c) Thebegin delete base revenue limit per unit ofend delete average daily attendance
7begin delete for theend deletebegin insert of aend insert newly organized school districtbegin delete shall not be greater
8than the amount set forth in the proposal for reorganization that is
9approved by the state board. The Superintendent may make
10adjustments to base revenue limit apportionments to a newly
11organized school district, if necessary to cause those
12apportionments to be consistent with this section.end delete
begin insert, for purposes of
13Sections 42238.02 and 42238.03, shall be the average daily
14attendance that is attributable to the area reorganized for the fiscal
15year before the fiscal year in which the new school district becomes
16effective for all purposes.end insert

begin delete

17(d) If the territorial jurisdiction of any school district was revised
18pursuant to a unification, consolidation, or other reorganization,
19occurring on or before July 1, 1989, that resulted in a school district
20having a larger territorial jurisdiction than the original school
21district prior to the reorganization, and a reorganization of school
22districts occurs on or after the effective date of the act that added
23this subdivision that results in a school district having a territorial
24jurisdiction that is substantially the same, as determined by the
25state board, as the territorial jurisdiction of that original school
26district prior to the most recent reorganization occurring on or
27before July 1, 1989, the revenue limit of the school district resulting
28from the subsequent reorganization shall be the same,
29notwithstanding subdivision (b), as the revenue limit that was
30determined for the original school district prior to the most recent
31reorganization occurring on or before July 1, 1989.

end delete
begin delete

32(e) The average daily attendance of a newly organized school
33district, for purposes of subdivision (d) of Section 42238, shall be
34the average daily attendance that is attributable to the area
35reorganized for the fiscal year two years prior to the fiscal year in
36which the new district becomes effective for all purposes.

end delete
begin delete

37(f) For purposes of computing average daily attendance pursuant
38to subdivision (d) of Section 42238 for each school district that
39exists prior to the reorganization and whose average daily
40attendance is directly affected by the reorganization, the following
P86   1calculation shall apply for the fiscal year two years prior to the
2fiscal year in which the newly reorganized school district becomes
3effective:

end delete
begin delete

4(1) Divide the 1982-83 fiscal year average daily attendance,
5computed pursuant to subdivision (d) of Section 42238, by the
6total average daily attendance of the district pursuant to Section
742238.5.

end delete
begin delete

8(2) Multiply the percentage computed pursuant to paragraph
9(1) by the total average daily attendance of the district calculated
10pursuant to Section 42238.5, excluding the average daily attendance
11of pupils attributable to the area reorganized.

end delete
begin delete

12(g) This section shall not apply to any reorganization proposal
13approved by the state board prior to January 1, 1995.

end delete
begin insert

14(d) Notwithstanding this section, commencing with the 2013-14
15fiscal year, a newly reorganized school district shall receive
16state-aid funding pursuant to paragraph (3) of subdivision (b) of
17Section 42238.03 of at least the total combined funding amount
18received by each school district pursuant to paragraphs (1) and
19(2) of subdivision (a) of Section 42238.03 for the fiscal year before
20the fiscal year in which the new school district becomes effective
21for all purposes.

end insert
begin delete

22(h)

end delete

23begin insert(e)end insert Notwithstanding any otherbegin delete provision ofend delete law, this section
24shall not be subject to waiver by the state board pursuant to Section
2533050 or by the Superintendent.

begin insert

26(f) Upon a determination that all school districts or charter
27schools equal or exceed the local control funding formula target
28computed pursuant to Section 42238.02 as determined by the
29calculation of a zero difference pursuant to paragraph (1) of
30subdivision (b) of Section 42238.03, for all school districts and
31charter schools, this section shall not apply and the newly
32reorganized school district shall receive an allocation equal to
33the amount calculated under Section 42238.02 in that fiscal year
34and future fiscal years.

end insert
35begin insert

begin insertSEC. 78.end insert  

end insert

begin insertSection 35735.2 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
36

35735.2.  

(a) If a newly organized school district is unable to
37provide the school facilities necessary to provide instructional
38services by employees of the district to all of the pupils who are
39residents of that district during the fiscal year in which the
40reorganization becomes effective for all purposes, the base revenue
P87   1limit per unit of average daily attendance of the newly organized
2district shall be the blended revenue limit arrived at pursuant to
3paragraph (1) of subdivision (a) of Section 35735.1 as adjusted by
4the calculations made pursuant to subparagraphs (B), (C), and (D)
5of paragraph (4) of subdivision (a) of Section 35735.1 and
6subdivision (b) of Section 35735.1. As the newly organized school
7district obtains the school facilities necessary to provide
8instructional services by employees of the district to all or a portion
9of those pupils, the following adjustment shall be made to the base
10revenue limit per unit of average daily attendance of the district
11each fiscal year subsequent to the fiscal year in which the
12reorganization becomes effective until the fiscal year in which the
13district provides the facilities necessary to provide those services
14for all of those pupils:

15(1) Determine the total number of pupils who are residents of
16the district to whom the district was unable to provide school
17facilities necessary to provide that instruction during the fiscal
18year in which the reorganization becomes effective for all purposes.

19(2) Determine the total number of pupils identified in paragraph
20(1) that will attend school in school facilities located in, and receive
21instructional services provided by employees of, that district in
22the current fiscal year.

23(3) Divide the number determined pursuant to paragraph (2) by
24the number determined pursuant to paragraph (1) to determine the
25percentage of pupils identified in paragraph (1) who will attend
26school in school facilities located in, and receive instructional
27services provided by employees of, that district in the current fiscal
28year.

29(4) Multiply the numbers determined pursuant to paragraphs
30(2) and (3) of subdivision (a) of Section 35735.1 by the percentage
31determined pursuant to paragraph (3) for that fiscal year, and total
32the amounts. Divide that sum by the number of units of average
33daily attendance residing in the proposed district in the current
34fiscal year.

35(5) Increase the base revenue limit calculated pursuant to
36subdivision (a) of this section for the school district by the amount
37arrived at pursuant to paragraph (4) as adjusted by the calculations
38pursuant to subparagraphs (B), (C), and (D) of paragraph (4) of
39subdivision (a) of Section 35735.1. In no event shall the amount
40determined pursuant to this paragraph exceed that amount that
P88   1would otherwise be calculated pursuant to subdivision (a) of
2Section 35735.1.

3(b) For the purposes of making the adjustments described in
4subdivision (a), the annual audit of the school district required
5pursuant to Section 41020 shall include an audit of the average
6daily attendance of pupils by grade level and the numbers of
7certificated and classified employees on which the adjustments to
8the base revenue limit of the district were made pursuant to
9paragraphs (1), (2), and (3) of subdivision (a) of Section 35735.1.
10Until the newly organized school district provides the school
11facilities necessary to provide instructional services by employees
12of the district to pupils who are residents of the district in the
13manner and in the timeframes set forth in the proposal to reorganize
14that was approved by the State Board of Education, the county
15superintendent of schools shall, for each fiscal year, inform the
16Superintendent of Public Instruction of the extent to which the
17district is providing those facilities to those pupils. The county
18superintendent of schools may charge the school district for the
19cost of preparation of the report. Based on that information, the
20superintendent shall make base revenue limit apportionments to
21the school district in a manner consistent with subdivision (a).

22(c) If the newly organized school district is unable to provide
23the school facilities necessary to provide instructional services by
24employees of the district to all of the pupils who are residents of
25the district five years from the date on which the reorganization
26becomes effective for all purposes, the State Department of
27Education shall recommend to the State Board of Education
28whether or not the district should be lapsed pursuant to Article 5
29(commencing with Section 35780). The State Department of
30Education shall make that recommendation for each fiscal year
31until either the school district provides the school facilities
32necessary to provide instructional services by employees of the
33district to all of the pupils who are residents of the district or the
34district is lapsed. Upon recommendation by the State Department
35of Education, the State Board of Education may direct the county
36committee on school district organization to lapse the school
37district according to the procedures set forth in Article 5
38(commencing with Section 35780).

39(d) This section shall not apply to any reorganization proposal
40approved by the State Board of Education prior to January 1, 1995.

end delete
P89   1begin insert

begin insertSEC. 79.end insert  

end insert

begin insertSection 35735.3 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
2

35735.3.  

The transfer of seventh and eighth grade pupils
3between an elementary school district and a high school district
4triggers the recomputation, pursuant to Section 35735.1, of the
5base revenue limit per unit of average daily attendance of the
6district receiving the 7th and 8th grade pupils, except that the
7computations described in paragraphs (2) and (3) of subdivision
8(a) of Section 35735.1 shall not apply to a recomputation performed
9pursuant to this section.

end delete
10begin insert

begin insertSEC. 80.end insert  

end insert

begin insertSection 35735.4 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
11

35735.4.  

Notwithstanding paragraphs (2) and (3) of subdivision
12(a) of Section 35735.1, as it read on June 30, 1998, a school district
13that was reorganized in the 1998-99 fiscal year, had an enrollment
14of fewer than 2,000 pupils in the second fiscal year prior to the
15fiscal year of reorganization, was wholly located within a county
16of the 20th class, as defined pursuant to Section 28041 of the
17Government Code, and for which the criteria specified in paragraph
18(2) or (3), or both, of subdivision (a) of Section 35735.1, as it read
19on June 30, 1998, would have been met had pupils on interdistrict
20transfers in the second fiscal year prior to the fiscal year of
21reorganization attended their district of residence, may include the
22calculations set forth in paragraphs (2) and (3) of subdivision (a)
23of Section 35735.1, as it read on June 30, 1998, in the calculation
24of its base revenue limit per unit of average daily attendance.

end delete
25begin insert

begin insertSEC. 81.end insert  

end insert

begin insertSection 35736 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
26read:end insert

27

35736.  

Plans and recommendations may include a proposal
28for dividing the property, other than real property, and obligations
29of any school district proposed to be divided between two or more
30school districts, or proposed to be partially included in one or more
31school districts. As used in this section, “property” includes funds,
32cash on hand, and moneys due but uncollected on the date
33reorganization becomes effective for all purposes, and state
34apportionments based on average daily attendance earned in the
35year immediately preceding the date reorganization becomes
36effective for all purposes. In providing for this division, the plans
37and recommendations may consider the assessed valuation of each
38portion of thebegin insert schoolend insert district, thebegin delete revenue limitend deletebegin insert local control
39funding formula allocation pursuant to Section 42238.02, as
40implemented by Section 42238.03,end insert
per pupil in eachbegin insert schoolend insert district,
P90   1the number of children of school age residing in each portion of
2thebegin insert schoolend insert district, the value and location of the school property,
3and such other matters as may be deemed pertinent and equitable.
4Any such proposal shall be an integral part of the proposal and not
5a separate proposition.

6begin insert

begin insertSEC. 82.end insert  

end insert

begin insertSection 35736.5 is added to the end insertbegin insertEducation Codeend insertbegin insert, to
7read:end insert

begin insert
8

begin insert35736.5.end insert  

Sections 35735 to 35736, inclusive, shall only apply
9to school district reorganizations undertaken after July 1, 2013.
10Reorganizations occurring before July 1, 2013, shall occur
11pursuant to Sections 35735 to 35736, inclusive, as those sections
12read on January 1, 2013.

end insert
13begin insert

begin insertSEC. 83.end insert  

end insert

begin insertArticle 4 (commencing with Section 37252) of Chapter
142 of Part 22 of Division 3 of Title 2 of the end insert
begin insertEducation Codeend insertbegin insert is
15repealed.end insert

16begin insert

begin insertSEC. 84.end insert  

end insert

begin insertChapter 2.5 (commencing with Section 37300) of
17Part 22 of Division 3 of Title 2 of the end insert
begin insertEducation Codeend insertbegin insert is repealed.end insert

18begin insert

begin insertSEC. 85.end insert  

end insert

begin insertSection 37700 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
19read:end insert

20

37700.  

(a) Notwithstanding any other law, the Pacific Unified
21School District, the Leggett Valley Unified School District, and
22the Reeds Creek Elementary School District may operate one or
23more schools in their respective districts on a four-day school
24week, if the district complies with the instructional time
25requirements specified in Section 37701 and the other requirements
26of this chapter.

27(b) If a school district operates one or more schools on a
28four-day week pursuant to this section and the program for the
29school year provides less than the 180 days of instruction required
30under Section 46200,begin insert as it read on January 1, 2013,end insert the
31Superintendentbegin delete of Public Instructionend delete shall reduce thebegin delete base revenue
32limitend delete
begin insert local control funding formula allocation pursuant to Section
3342238.02, as implemented pursuant to Section 42238.03,end insert
per unit
34of average daily attendance for that fiscal year by the amount the
35school district would have received for the increase received
36pursuant to subdivision (a) of Section 46200,begin insert as it read on January
371, 2013,end insert
as adjusted in fiscal years subsequent to the 1984-85 fiscal
38year. If a school district operates one or more schools on a four-day
39school week pursuant to this section and the program provides less
40than the minimum instructional minutes required under Section
P91   146201,begin insert as it read on January 1, 2013,end insert the Superintendentbegin delete of Public
2Instructionend delete
shall reduce thebegin delete base revenue limitend deletebegin insert local control funding
3formula allocation pursuant to Section 42238.02, as implemented
4pursuant to Section 42238.03,end insert
per unit of average daily attendance
5for that fiscal year in which the reduction occurs by the amount
6the school district would have received for the increase in the
71987-88 fiscal year base revenue limit per unit of average daily
8attendance pursuant to paragraph (6) of subdivision (b) of Section
942238,begin insert as it read on June 30, 2013,end insert as adjustedbegin delete inend deletebegin insert fromend insert the 1987-88
10fiscal yearbegin delete and fiscal years thereafterend deletebegin insert to the 2012-13 fiscal year,
11inclusive, and, commencing with the 2013-14 fiscal year, pursuant
12to the local control funding formula allocation pursuant to Section
1342238.02, as implemented pursuant to Section 42238.03, per unit
14of average daily attendanceend insert
.

15(c) A school district with an exclusive bargaining representative
16may operate a school on a four-day school week pursuant to this
17section only if thebegin insert schoolend insert district and the representative of each
18bargaining unit ofbegin insert schoolend insert district employees mutually agree to that
19operation in a memorandum of understanding.

begin insert

20(d) Notwithstanding this section, upon a determination that a
21school district identified in subdivision (a) equals or exceeds its
22local control funding formula target computed pursuant to Section
2342238.02 as determined by the calculation of a zero difference
24pursuant to paragraph (1) of subdivision (b) of Section 42238.03,
25the school district, as a condition of apportionment pursuant to
26Section 42238.02, as implemented pursuant to Section 42238.03,
27shall offer 180 days or more of instruction per school year, and
28meet the minimum minute requirements pursuant to paragraph
29(1) of subdivision (a) of Section 46207.

end insert
30begin insert

begin insertSEC. 86.end insert  

end insert

begin insertSection 37710.3 of the end insertbegin insertEducation Codeend insertbegin insert is amended
31to read:end insert

32

37710.3.  

(a) Beginning in the 2010-11 fiscal year, the Alpaugh
33Unified School District may operate one or more schools in the
34school district on a four-day school week if the district complies
35with the instructional time requirements in Section 37701 and the
36other requirements of this chapter. The state board may waive
37five-consecutive-day operating requirements for any of the
38following programs that operate on a four-day school week
39pursuant to this section, provided that the district meets the
40minimum time requirement for each program:

P92   1(1) Preschools.

2(2) Before and after school programs.

3(3) Independent study programs.

4(4) Child nutrition and food service programs.

5(5) Community day schools.

6(6) Regional occupational centers or programs.

7(7) Continuation high schools.

8(b) If the school district operates one or more schools on a
9four-day school week pursuant to this section, and the program
10for the school year provides fewer than the 180 days of instruction
11required under Section 46200,begin insert as it read on January 1, 2013,end insert the
12Superintendent shall reduce thebegin delete base revenue limitend deletebegin insert local control
13funding formula allocation pursuant to Section 42238.02, as
14implemented pursuant to Section 42238.03,end insert
per unit of average
15daily attendance for that fiscal year by the amount the school
16district would have received for the increase received pursuant to
17subdivision (a) of Section 46200,begin insert as it read on January 1, 2013,end insert
18 as adjusted in fiscal years subsequent to the 1984-85 fiscal year.
19If the school district operates one or more schools on a four-day
20school week pursuant to this section, and the program provides
21fewer than the minimum instructional minutes required under
22Section 46201,begin insert as it read on January 1, 2013,end insert the Superintendent
23shall reduce thebegin delete base revenue limitend deletebegin insert local control funding formula
24allocation pursuant to Section 42238.02, as implemented pursuant
25to Section 42238.03,end insert
per unit of average daily attendance for that
26fiscal year in which the reduction occurs by the amount the school
27district would have received for the increase in the base revenue
28limit per unit of average daily attendance pursuant to subdivision
29(a) of Section 46201,begin insert as it read on January 1, 2013,end insert as adjusted
30begin delete inend deletebegin insert fromend insert the 1987-88 fiscal yearbegin delete and fiscal years thereafterend deletebegin insert to the
312012-13 fiscal year, inclusive, and, commencing with the 2013-14
32fiscal year, pursuant to the local control funding formula allocation
33pursuant to Section 42238.02, as implemented pursuant to Section
3442238.03, per unit of average daily attendanceend insert
.

35(c) Notwithstanding Section 37710, if a small school having
36between 11 and 99 valid Standardized Testing and Reporting
37Program test scores operating on a four-day school week fails to
38achieve its Academic Performance Index growth target pursuant
39to Section 52052 for two consecutive years, the authority of that
40school to operate on a four-day school week shall be permanently
P93   1revoked commencing with the school year following the second
2consecutive year the school failed to achieve its Academic
3Performance Index growth rate.

4(d) If the school district operates one or more schools on a
5four-day school week pursuant to this section, the school district
6shall submit a report to the department, the Senate Committee on
7Education, and the Assembly Committee on Education on or before
8January 15, 2015. The report shall include, but not necessarily be
9limited to, information on all of the following:

10(1) Programs the district offered on the fifth schoolday and their
11participation rates.

12(2) Whether the four-day school week schedule resulted in any
13fiscal savings.

14(3) Impact on overall attendance of the schools operating a
15four-day school week.

16(4) Programs for which the state board waived minimum time
17and five-consecutive-day requirements and the operational and
18educational effects of the programs if they operated at less time
19than required.

20(5) The impact of the four-day school week on crime statistics,
21especially on the day on which school would otherwise be in
22session.

23(6) Information on the Academic Performance Index, pursuant
24to Section 52052, for every year a school in the district operated
25on a four-day school week. The information shall include, but not
26necessarily be limited to, the base and growth Academic
27Performance Index of each school that operated on a four-day
28school week and whether that school met the Academic
29Performance growth targets.

begin insert

30(e) Notwithstanding this section, upon a determination that a
31school district identified in subdivision (a) equals or exceeds its
32local control funding formula target computed pursuant to Section
3342238.02 as determined by the calculation of a zero difference
34pursuant to paragraph (1) of subdivision (b) of Section 42238.03,
35the school district, as a condition of apportionment pursuant to
36Section 42238.02, as implemented pursuant to Section 42238.03,
37shall offer 180 days or more of instruction per school year, and
38meet the minimum minute requirements pursuant to paragraph
39(1) of subdivision (a) of Section 46207.

end insert
begin delete

40(e)

end delete

P94   1begin insert(f)end insert This section shall remain in effect only until January 1, 2016,
2and as of that date is repealed, unless a later enacted statute, that
3is enacted before January 1, 2016, deletes or extends that date.

4begin insert

begin insertSEC. 87.end insert  

end insert

begin insertSection 37710.5 of the end insertbegin insertEducation Codeend insertbegin insert is amended
5to read:end insert

6

37710.5.  

(a) Beginning in the 2009-10 fiscal year, the Potter
7Valley Community Unified School District may operate one or
8more schools in the school district on a four-day school week if
9thebegin insert schoolend insert district complies with the instructional time requirements
10specified in Section 37701 and the other requirements of this
11chapter. Thebegin delete State Board of Educationend deletebegin insert state boardend insert may waive
12five-consecutive-day operating requirements for any of the
13following programs that operate on a four-day week pursuant to
14 this section, provided that thebegin insert schoolend insert district meets the minimum
15time requirement for each program:

16(1) Preschools.

17(2) Before and after school programs.

18(3) Independent study programs.

19(4) Child nutrition and food service programs.

20(5) Community day schools.

21(6) Regional occupational centers or programs.

22(7) Continuation high schools.

23(b) If the school district operates one or more schools on a
24four-day week pursuant to this section, and the program for the
25school year provides fewer than the 180 days of instruction required
26under Section 46200,begin insert as it read on January 1, 2013,end insert the
27Superintendent shall reduce thebegin delete base revenue limitend deletebegin insert local control
28funding formula allocation pursuant to Section 42238.02, as
29implemented pursuant to Section 42238.03,end insert
per unit of average
30daily attendance for that fiscal year by the amount the school
31district would have received for the increase received pursuant to
32subdivision (a) of Section 46200,begin insert as it read on January 1, 2013,end insert
33 as adjusted in fiscal years subsequent to the 1984-85 fiscal year.
34If the school district operates one or more schools on a four-day
35school week pursuant to this section, and the program provides
36fewer than the minimum instructional minutes required under
37Section 46201,begin insert as it read on January 1, 2013,end insert the Superintendent
38shall reduce thebegin delete base revenue limitend deletebegin insert local control funding formula
39allocation pursuant to Section 42238.02, as implemented pursuant
40to Section 42238.03,end insert
per unit of average daily attendance for that
P95   1fiscal year in which the reduction occurs by the amount the school
2district would have received for the increase in the base revenue
3limit per unit of average daily attendance pursuant to subdivision
4(a) of Section 46201,begin insert as it read on January 1, 2013,end insert as adjusted
5begin delete inend deletebegin insert from end insert the 1987-88 fiscal yearbegin delete and fiscal years thereafterend deletebegin insert to the
62012-13 fiscal year, inclusive, and, commencing with the 2013-14
7fiscal year, pursuant to Section 42238.02, as implemented pursuant
8to Section 42238.03, per unit of average daily attendanceend insert
.

9(c) If the school district operates one or more schools on a
10four-day school week pursuant to this section, the school district
11shall submit a report to the department, the Senate Committee on
12Education and the Assembly Committee on Education on January
1315, 2014. The report shall include, but not necessarily be limited
14to, information on the following:

15(1) Programs the district offered on the fifth day and their
16participation rates.

17(2) Whether the four-day school week schedule resulted in any
18fiscal savings.

19(3) Impact on overall attendance of the schools operating a
20four-day school week.

21(4) Programs for which the Superintendent waived minimum
22time and five-consecutive-day requirements and the operational
23and educational effect of the programs if they operated at less time
24than required.

begin insert

25(d) Notwithstanding this section, upon a determination that a
26school district identified in subdivision (a) equals or exceeds its
27local control funding formula target computed pursuant to Section
2842238.02 as determined by the calculation of a zero difference
29pursuant to paragraph (1) of subdivision (b) of Section 42238.03,
30the school district, as a condition of apportionment pursuant to
31Section 42238.02, as implemented pursuant to Section 42238.03,
32shall offer 180 days or more of instruction per school year, and
33meet the minimum minute requirements pursuant to paragraph
34(1) of subdivision (a) of Section 46207.

end insert
begin delete

35(d)

end delete

36begin insert(e)end insert This section shall remain in effect only until January 1, 2015,
37and as of that date is repealed, unless a later enacted statute, that
38is enacted before January 1, 2015, deletes or extends that date.

39begin insert

begin insertSEC. 88.end insert  

end insert

begin insertSection 38101 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
40read:end insert

P96   1

38101.  

(a) The governing board of a school district may
2authorize expenditures from the cafeteria fund or cafeteria account
3only for those charges from that fund or account that are defined
4in the California School Accounting Manual.

5(b) A food service program shall not be charged more than once
6for expenditures for the same service. If a food service program
7is being charged for a service as a direct cost, the school district
8shall not also allocate that cost as a direct support cost or indirect
9cost.

10(c) For purposes of this section, an “indirect cost” shall be
11limited to the lesser of the school district’s prior year indirect cost
12rate as approved by the department or the statewide average
13approved indirect cost for the second prior fiscal year.

14(d) Charges to, or transfers from, a food service program shall
15indicate when the charge or transfer was made and shall be
16accompanied by a written explanation of the purpose of, and basis
17for, the expenditure.

18(e) This section does not authorize a school district to charge a
19food service program any charges prohibited by state or federal
20law or regulation.

21(f) If the department and the Department of Finance concur that
22a school district has violated this section, the Superintendent shall
23direct that school district to transfer double the amount improperly
24transferred to the general fund of the school district from that fund
25to the cafeteria fund of the school district or cafeteria account for
26the subsequent fiscal year which is then to be used for the
27improvement of the food service program of the school district. If
28the school district fails to make that transfer as directed, the
29Superintendent shall reduce the regular apportionment of the school
30district determined pursuant to Section 42238begin insert, as it read on
31January 1, 2013, or the local control funding formula allocation
32pursuant to Section 42238.02, as implemented pursuant to Section
3342238.03,end insert
and increase the child nutrition allowance of the school
34district determined pursuant to Section 41350 by double the amount
35improperly transferred to the general fund of the school district
36and that amount is then to be used for improvement of the food
37service program.

38(g) It is the intent of the Legislature in enacting this section that
39responsible school district officials be held fully accountable for
40the accounting and reporting of food service programs and that
P97   1minor and inadvertent instances of noncompliance be resolved in
2a fair and equitable manner to the satisfaction of the Superintendent
3and the Department of Finance.

4(h) The Superintendent, with the approval of the Department
5of Finance, may waive up to the full transfer amount in subdivision
6(f) if he or she determines that the noncompliance involved is
7minor or inadvertent, or both.

8begin insert

begin insertSEC. 89.end insert  

end insert

begin insertSection 39809.5 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
9

39809.5.  

(a) The sum of the state aid received and the parent
10fees collected in a fiscal year may not exceed actual operating cost
11of home-to-school transportation in that fiscal year.

12(b) If excess fees are collected due to errors in estimated costs,
13fees shall be reduced in succeeding years.

14(c) The governing board shall certify to the county
15superintendent that districts have levied fees in accordance with
16law, and that fees have been reduced and excess fee revenue
17eliminated whenever excess fees have been charged.

end delete
18begin insert

begin insertSEC. 90.end insert  

end insert

begin insertArticle 2 (commencing with Section 39820) of Chapter
191 of Part 23.5 of Division 3 of Title 2 of the end insert
begin insertEducation Codeend insertbegin insert is
20repealed.end insert

21begin insert

begin insertSEC. 91.end insert  

end insert

begin insertSection 41003.3 of the end insertbegin insertEducation Codeend insertbegin insert is amended
22to read:end insert

23

41003.3.  

(a) Consistent with the provisions of Article 4
24(commencing with Section 17455) of Chapter 4 of Part 10.5 of
25Division 1 of Title 1, from July 1, 2008, to June 30, 2010, inclusive,
26the Dixon Unified School District may sell surplus real property
27previously used as the school farm on Sievers Road, located five
28miles outside of the city and which is not feasible for future school
29construction, together with any personal property located thereon,
30purchased entirely with local funds. The proceeds of the sale shall
31be deposited into the general fund of the school district in order
32to reestablish a 3-percent reserve. The remainder of the proceeds
33from the sale of the property that are not utilized to reestablish the
343-percent reserve shall be deposited into the capital outlay fund
35of the school district.

36(b) In order to expend funds pursuant to subdivision (a), the
37begin insert schoolend insert district shall meet all of the following conditions:

38(1) Thebegin insert schoolend insert district shall not be eligible for new construction
39funding for 10 years from the date that funds are deposited into
40the general fund of the school district pursuant to subdivision (a),
P98   1except that thebegin insert schoolend insert district may apply for new construction
2funds if both of the following conditions are met:

3(A) At least five years have elapsed since the date upon which
4the sale was executed pursuant to subdivision (a).

5(B) The State Allocation Board determines that thebegin insert schoolend insert
6 district has demonstrated enrollment growth or a need for additional
7sites or building construction that thebegin insert schoolend insert district could not have
8easily anticipated at the time the sale was executed pursuant to
9subdivision (a).

10(2) The governing board of thebegin insert schoolend insert district shall complete a
11governance training program focusing on fiscal management
12provided by the County Office Fiscal Crisis and Management
13Assistance Team (FCMAT).

14(3) Any remaining funds from the sale of the property shall be
15exhausted for capital outlay purposesbegin delete prior to anyend deletebegin insert before aend insert request
16for modernization funding.

17(4) Notwithstanding any other provision of law, the Dixon
18Unified School District, from July 1, 2008, to June 30, 2010,
19inclusive, shall not be eligible to receive financial hardship
20assistance pursuant to Article 8 (commencing with Section
2117075.10) of Chapter 12.5 of Part 10 of Division 1 of Title 1.

begin delete

22(5) The district shall not be eligible to receive hardship funding
23 from the State School Deferred Maintenance Fund pursuant to
24Section 17587 until all remaining funds from the sale of the
25property identified in, and pursuant to, subdivision (a) are
26exhausted for deferred maintenance or capital outlay purposes.

end delete
begin delete

27(6)

end delete

28begin insert(5)end insert The governing board of thebegin insert schoolend insert district shall certify all
29of the following to the State Allocation Board:

30(A) Thebegin insert schoolend insert district has no major deferred maintenance
31requirements that cannot be completed with existing capital outlay
32resources.

33(B) The sale of the real property pursuant to this section does
34not violate any provisions of a local general obligation bond act.

35(C) The real property sold pursuant to this section is not suitable
36to meet any projected school construction need for the next 10
37years.

begin delete

38(7)

end delete

39begin insert(6)end insert Before exercising the authority granted by this section, the
40governing board of thebegin insert schoolend insert district, at a regularly scheduled
P99   1meetingbegin delete of that boardend delete, shall present a plan for expending one-time
2resources pursuant to this section. The plan shall identify the source
3and use of the funds, and describe how the proposed use of funds,
4in combination with budget reductions, will address thebegin insert schoolend insert
5 district’s deficit spending and restore the ongoing fiscal solvency
6of thebegin insert schoolend insert district.

begin delete

7(8)

end delete

8begin insert(7)end insert No later than 10 years after the date of the sale of surplus
9property pursuant to subdivision (a), thebegin insert schoolend insert district shall deposit
10into its capital outlay fund an amount equal to the amount of the
11proceeds from the sale of the property that is deposited into the
12begin insert schoolend insert district’s general fund as needed to establish the 3-percent
13reserve in accordance with subdivision (a).

14(c) This section shall remain in effect only until January 1, 2021,
15and as of that date is repealed, unless a later enacted statute, that
16is enacted before January 1, 2021, deletes or extends that date.

17begin insert

begin insertSEC. 92.end insert  

end insert

begin insertSection 41012 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
18read:end insert

19

41012.  

For purposes of determiningbegin delete allowancesend deletebegin insert apportionmentsend insert
20 pursuant tobegin delete Chapter 8 (commencing with Section 52200) of Part
2128, andend delete
Chapterbegin delete 3end deletebegin insert 5end insert (commencing with Section 56500) and Chapter
22begin delete 4end deletebegin insert 6end insert (commencing with Section 56600) of Part 30begin insert of Division 4end insert,
23the Superintendentbegin delete of Public Instructionend delete shall require the use of a
24uniform cost accounting procedure, as set forth in the California
25School Accounting Manual.

26begin insert

begin insertSEC. 93.end insert  

end insert

begin insertSection 41020 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
27read:end insert

28

41020.  

(a) It is the intent of the Legislature to encourage sound
29fiscal management practices among local educational agencies for
30the most efficient and effective use of public funds for the
31education of children in California by strengthening fiscal
32accountability at thebegin insert schoolend insert district, county, and state levels.

33(b) (1) Not later than the first day of May of each fiscal year,
34each county superintendent of schools shall provide for an audit
35of all funds under his or her jurisdiction and control and the
36governing board of each local educational agency shall either
37provide for an audit of the books and accounts of the local
38educational agency, including an audit of income and expenditures
39by source of funds, or make arrangements with the county
P100  1superintendent of schools having jurisdiction over the local
2educational agency to provide for that auditing.

3(2) A contract to perform the audit of a local educational agency
4that has a disapproved budget or has received a negative
5certification on any budget or interim financial report during the
6current fiscal year or either of the two preceding fiscal years, or
7for which the county superintendent of schools has otherwise
8determined that a lack of going concern exists, is not valid unless
9approved by the responsible county superintendent of schools and
10the governing board.

11(3) If the governing board of a local educational agency has not
12provided for an audit of the books and accounts of the local
13educational agency by April 1, the county superintendent of schools
14having jurisdiction over the local educational agency shall provide
15for the audit of each local educational agency.

16(4) An audit conducted pursuant to this section shall comply
17fully with the Government Auditing Standards issued by the
18Comptroller General of the United States.

19(5) For purposes of this section, “local educational agency” does
20not include community colleges.

21(c) Each audit conducted in accordance with this section shall
22include all funds of the local educational agency, including the
23student body and cafeteria funds and accounts and any other funds
24under the control or jurisdiction of the local educational agency.
25Each audit shall also include an audit of pupil attendance
26procedures.begin insert Each audit shall include a determination of whether
27funds were expended in accordance with a local control and
28accountability plan pursuant to Article 3.8 (commencing with
29Section 52060) of Chapter 6.1 of Part 28 of Division 3.end insert

30(d) All audit reports for each fiscal year shall be developed and
31reported using a format established by the Controller after
32consultation with the Superintendent and the Director of Finance.

33(e) (1) The cost of the audits provided for by the county
34superintendent of schools shall be paid from the county school
35service fund and the county superintendent of schools shall transfer
36the pro rata share of the cost chargeable to eachbegin insert schoolend insert district
37frombegin insert schoolend insert district funds.

38(2) The cost of the audit provided for by a governing board shall
39be paid from local educational agency funds. The audit of the funds
P101  1under the jurisdiction and control of the county superintendent of
2schools shall be paid from the county school service fund.

3(f) (1) The audits shall be made by a certified public accountant
4or a public accountant, licensed by the California Board of
5Accountancy, and selected by the local educational agency, as
6applicable, from a directory of certified public accountants and
7public accountants deemed by the Controller as qualified to conduct
8audits of local educational agencies, which shall be published by
9the Controller not later than December 31 of each year.

10(2) Commencing with the 2003-04 fiscal year and except as
11provided in subdivision (d) of Section 41320.1, it is unlawful for
12a public accounting firm to provide audit services to a local
13educational agency if the lead audit partner, or coordinating audit
14partner, having primary responsibility for the audit, or the audit
15partner responsible for reviewing the audit, has performed audit
16services for that local educational agency in each of the six previous
17fiscal years. The Education Audits Appeal Panel may waive this
18requirement if the panel finds that no otherwise eligible auditor is
19available to perform the audit.

20(3) It is the intent of the Legislature that, notwithstanding
21paragraph (2), the rotation within public accounting firms conform
22to provisions of the federal Sarbanes-Oxley Act of 2002begin delete (P.L.end delete
23begin insert (Public Lawend insert 107-204; 15 U.S.C. Sec. 7201 et seq.), and upon
24release of the report required by the act of the Comptroller General
25of the United States addressing the mandatory rotation of registered
26public accounting firms, the Legislature intends to reconsider the
27provisions of paragraph (2). In determining which certified public
28accountants and public accountants shall be included in the
29directory, the Controller shall use the following criteria:

30(A) The certified public accountants or public accountants shall
31be in good standing as certified by the Board of Accountancy.

32(B) The certified public accountants or public accountants, as
33a result of a quality control review conducted by the Controller
34pursuant to Section 14504.2, shall not have been found to have
35conducted an audit in a manner constituting noncompliance with
36subdivision (a) of Section 14503.

37(g) (1) The auditor’s report shall include each of the following:

38(A) A statement that the audit was conducted pursuant to
39standards and procedures developed in accordance with Chapter
P102  13 (commencing with Section 14500) of Part 9 of Division 1 of
2Title 1.

3(B) A summary of audit exceptions and management
4improvement recommendations.

5(C) Each audit of a local educational agency shall include an
6evaluation by the auditor on whether there is substantial doubt
7about the ability of the local educational agency to continue as a
8going concern for a reasonable period of time. This evaluation
9shall be based on the Statementbegin delete ofend deletebegin insert onend insert Auditing Standards (SAS)
10No. 59, as issued by the AICPA regarding disclosure requirements
11relating to the ability of the entity to continue as a going concern.

12(2) To the extent possible, a description of correction or plan
13of correction shall be incorporated in the audit report, describing
14the specific actions that are planned to be taken, or that have been
15taken, to correct the problem identified by the auditor. The
16descriptions of specific actions to be taken or that have been taken
17shall not solely consist of general comments such as “will
18implement,” “accepted the recommendation,” or “will discuss at
19a later date.”

20(h) Not later than December 15, a report of each local
21educational agency audit for the preceding fiscal year shall be filed
22with the county superintendent of schools of the county in which
23the local educational agency is located, the department, and the
24Controller. The Superintendent shall make any adjustments
25necessary in future apportionments of all state funds, to correct
26any audit exceptions revealed by those audit reports.

27(i) (1) Commencing with the 2002-03 audit of local educational
28agencies pursuant to this section and subdivision (d) of Section
2941320.1, each county superintendent of schools shall be responsible
30for reviewing the audit exceptions contained in an audit of a local
31educational agency under his or her jurisdiction related to
32attendance, inventory of equipment, internal control, and any
33miscellaneous items, and determining whether the exceptions have
34been either corrected or an acceptable plan of correction has been
35developed.

36(2) Commencing with the 2004-05 audit of local educational
37agencies pursuant to this section and subdivision (d) of Section
38 41320.1, each county superintendent of schools shall include in
39the review of audit exceptions performed pursuant to this
40subdivision those audit exceptions related to use of instructional
P103  1materials program funds, teacher misassignments pursuant to
2Section 44258.9, information reported on the school accountability
3report card required pursuant to Section 33126 and shall determine
4whether the exceptions are either corrected or an acceptable plan
5of correction has been developed.

6(j) Upon submission of the final audit report to the governing
7board of each local educational agency and subsequent receipt of
8the audit by the county superintendent of schools having
9jurisdiction over the local educational agency, the county office
10of education shall do all of the following:

11(1) Review audit exceptions related to attendance, inventory of
12equipment, internal control, and other miscellaneous exceptions.
13Attendance exceptions or issues shall include, but not be limited
14to, those related tobegin delete revenue limits, adult education,end deletebegin insert local control
15funding formula allocations pursuant to Section 42238.02, as
16implemented by Section 42238.03,end insert
and independent study.

17(2) If a description of the correction or plan of correction has
18not been provided as part of the audit required by this section, then
19the county superintendent of schools shall notify the local
20educational agency and request the governing board of the local
21educational agency to provide to the county superintendent of
22schools a description of the corrections or plan of correction by
23March 15.

24(3) Review the description of correction or plan of correction
25and determine its adequacy. If the description of the correction or
26plan of correction is not adequate, the county superintendent of
27schools shall require the local educational agency to resubmit that
28portion of its response that is inadequate.

29(k) Each county superintendent of schools shall certify to the
30Superintendent and the Controller, not later than May 15, that his
31or her staff has reviewed all audits of local educational agencies
32under his or her jurisdiction for the prior fiscal year, that all
33exceptions that the county superintendent was required to review
34were reviewed, and that all of those exceptions, except as otherwise
35noted in the certification, have been corrected by the local
36educational agency or that an acceptable plan of correction has
37been submitted to the county superintendent of schools. In addition,
38the county superintendent shall identify, by local educational
39agency, any attendance-related audit exception or exceptions
40involving state funds, and require the local educational agency to
P104  1which the audit exceptions were directed to submit appropriate
2reporting forms for processing by the Superintendent.

3(l) In the audit of a local educational agency for a subsequent
4year, the auditor shall review the correction or plan or plans of
5correction submitted by the local educational agency to determine
6if the exceptions have been resolved. If not, the auditor shall
7immediately notify the appropriate county office of education and
8the department and restate the exception in the audit report. After
9receiving that notification, the department shall either consult with
10the local educational agency to resolve the exception or require
11the county superintendent of schools to follow up with the local
12educational agency.

13(m) (1) The Superintendent shall be responsible for ensuring
14that local educational agencies have either corrected or developed
15plans of correction for any one or more of the following:

16(A) All federal and state compliance audit exceptions identified
17in the audit.

18(B) Any exceptions that the county superintendent certifies as
19of May 15 have not been corrected.

20(C) Any repeat audit exceptions that are not assigned to a county
21superintendent to correct.

22(2) In addition, the Superintendent shall be responsible for
23ensuring that county superintendents of schools and each county
24board of education that serves as the governing board of a local
25educational agency either correct all audit exceptions identified in
26the audits of county superintendents of schools and of the local
27educational agencies for which the county boards of education
28serve as the governing boards or develop acceptable plans of
29correction for those exceptions.

30(3) The Superintendent shall report annually to the Controller
31on his or her actions to ensure that school districts, county
32superintendents of schools, and each county board of education
33that serves as the governing board of a school district have either
34corrected or developed plans of correction for any of the exceptions
35noted pursuant to paragraph (1).

36(n) To facilitate correction of the exceptions identified by the
37audits issued pursuant to this section, commencing with 2002-03
38audits pursuant to this section, the Controller shall require auditors
39to categorize audit exceptions in each audit report in a manner that
40will make it clear to both the county superintendent of schools and
P105  1the Superintendent which exceptions they are responsible for
2ensuring the correction of by a local educational agency. In
3addition, the Controller annually shall select a sampling of county
4superintendents of schools and perform a followup of the audit
5resolution process of those county superintendents of schools and
6report the results of that followup to the Superintendent and the
7county superintendents of schools that were reviewed.

8(o) County superintendents of schools shall adjust subsequent
9local property tax requirements to correct audit exceptions relating
10to local educational agency tax rates and tax revenues.

11(p) If a governing board or county superintendent of schools
12fails or is unable to make satisfactory arrangements for the audit
13pursuant to this section, the Controller shall make arrangements
14for the audit and the cost of the audit shall be paid from local
15educational agency funds or the county school service fund, as the
16case may be.

begin delete

17(q) Audits of regional occupational centers and programs are
18subject to the provisions of this section.

end delete
begin delete

19(r)

end delete

20begin insert(q)end insert This section does not authorize examination of, or reports
21on, the curriculum used or provided for in any local educational
22agency.

begin delete

23(s)

end delete

24begin insert(r)end insert Notwithstanding any otherbegin delete provision ofend delete law, a nonauditing,
25management, or other consulting service to be provided to a local
26educational agency by a certified public accounting firm while the
27certified public accounting firm is performing an audit of the
28agency pursuant to this section must be in accord with Government
29Accounting Standards, Amendment No. 3, as published by the
30United States General Accounting Office.

31begin insert

begin insertSEC. 94.end insert  

end insert

begin insertSection 41202 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
32read:end insert

33

41202.  

The words and phrases set forth in subdivision (b) of
34Section 8 of Article XVI of the Constitution of the State of
35California shall have the following meanings:

36(a) “Moneys to be applied by the State,” as used in subdivision
37(b) of Section 8 of Article XVI of the California Constitution,
38means appropriations from the General Fund that are made for
39allocation to school districts, as defined, or community college
40districts. An appropriation that is withheld, impounded, or made
P106  1without provisions for its allocation to school districts or
2community college districts, shall not be considered to be “moneys
3to be applied by the State.”

4(b) “General Fund revenues which may be appropriated pursuant
5to Article XIII B,” as used in paragraph (1) of subdivision (b) of
6Section 8 of Article XVI, means General Fund revenues that are
7the proceeds of taxes as defined by subdivision (c) of Section 8 of
8Article XIII B of the California Constitution, including, for the
91986-87 fiscal year only, any revenues that are determined to be
10in excess of the appropriations limit established pursuant to Article
11XIII B for the fiscal year in which they are received. General Fund
12revenues for a fiscal year to which paragraph (1) of subdivision
13(b) is being applied shall include, in that computation, only General
14Fund revenues for that fiscal year that are the proceeds of taxes,
15as defined in subdivision (c) of Section 8 of Article XIII B of the
16California Constitution, and shall not include prior fiscal year
17revenues. Commencing with the 1995-96 fiscal year, and each
18fiscal year thereafter, “General Fund revenues that are the proceeds
19of taxes,” as defined in subdivision (c) of Section 8 of Article
20XIII B of the California Constitution, includes any portion of the
21proceeds of taxes received from the state sales tax that are
22transferred to the counties pursuant to, and only if, legislation is
23enacted during the 1995-96 fiscal year the purpose of which is to
24realign children’s programs. The amount of the proceeds of taxes
25shall be computed for any fiscal year in a manner consistent with
26the manner in which the amount of the proceeds of taxes was
27computed by the Department of Finance for purposes of the
28Governor’s Budget for the Budget Act of 1986.

29(c) “General Fund revenues appropriated for school districts,”
30as used in paragraph (1) of subdivision (b) of Section 8 of Article
31XVI of the California Constitution, means the sum of
32appropriations made that are for allocation to school districts, as
33defined in Section 41302.5, regardless of whether those
34appropriations were made from the General Fund to the
35Superintendent, to the Controller, or to any other fund or state
36agency for the purpose of allocation to school districts. The full
37amount of any appropriation shall be included in the calculation
38of the percentage required by paragraph (1) of subdivision (b) of
39Article XVI, without regard to any unexpended balance of any
P107  1appropriation. Any reappropriation of funds appropriated in any
2prior year shall not be included in the sum of appropriations.

3(d) “General Fund revenues appropriated for community college
4districts,” as used in paragraph (1) of subdivision (b) of Section 8
5of Article XVI of the California Constitution, means the sum of
6appropriations made that are for allocation to community college
7districts, regardless of whether those appropriations were made
8from the General Fund to the Controller, to the Chancellor of the
9California Community Colleges, or to any other fund or state
10agency for the purpose of allocation to community college districts.
11The full amount of any appropriation shall be included in the
12calculation of the percentage required by paragraph (1) of
13subdivision (b) of Article XVI, without regard to any unexpended
14balance of any appropriation. Any reappropriation of funds
15appropriated in any prior year shall not be included in the sum of
16appropriations.

17(e) “Total allocations to school districts and community college
18districts from General Fund proceeds of taxes appropriated pursuant
19to Article XIII B,” as used in paragraph (2) or (3) of subdivision
20(b) of Section 8 of Article XVI of the California Constitution,
21means the sum of appropriations made that are for allocation to
22school districts, as defined in Section 41302.5, and community
23college districts, regardless of whether those appropriations were
24made from the General Fund to the Controller, to the
25Superintendent, to the Chancellor of the California Community
26Colleges, or to any other fund or state agency for the purpose of
27allocation to school districts and community college districts. The
28full amount of any appropriation shall be included in the calculation
29of the percentage required by paragraph (2) or (3) of subdivision
30(b) of Section 8 of Article XVI, without regard to any unexpended
31balance of any appropriation. Any reappropriation of funds
32appropriated in any prior year shall not be included in the sum of
33appropriations.

34(f) “General Fund revenues appropriated for school districts
35and community college districts, respectively” and “moneys to be
36applied by the state for the support of school districts and
37community college districts,” as used in Section 8 of Article XVI
38of the California Constitution, shall include funds appropriated for
39part-day California state preschool programs under Article 7
40(commencing with Section 8235) of Chapter 2 of Part 6 of Division
P108  11 of Title 1, and the After School Education and Safety Program
2established pursuant to Article 22.5 (commencing with Section
38482) of Chapter 2 of Part 6 of Division 1 of Title 1, and shall not
4include any of the following:

5(1) Any appropriation that is not made for allocation to a school
6district, as defined in Section 41302.5, or to a community college
7district, regardless of whether the appropriation is made for any
8purpose that may be considered to be for the benefit to a school
9district, as defined in Section 41302.5, or a community college
10district. This paragraph shall not be construed to exclude any
11funding appropriated for part-day California state preschool
12programs under Article 7 (commencing with Section 8235) of
13Chapter 2 of Part 6 of Division 1 of Title 1 or the After School
14Education and Safety Program established pursuant to Article 22.5
15(commencing with Section 8482) of Chapter 2 of Part 6 of Division
161 of Title 1.

17(2) Any appropriation made to the Teachers’ Retirement Fund
18or to the Public Employees’ Retirement Fund except those
19appropriations for reimbursable state mandates imposed on or
20before January 1, 1988.

21(3) Any appropriation made to service any public debt approved
22by the voters of this state.

23(4) With the exception of the programs identified in paragraph
24(1), commencing with the 2011-12 fiscal year, any funds
25appropriated for the Child Care and Development Services Act,
26pursuant to Chapter 2 (commencing with Section 8200) of Part 6
27of Division 1 of Title 1.

28(g) “Allocated local proceeds of taxes,” as used in paragraph
29(2) or (3) of subdivision (b) of Section 8 of Article XVI of the
30California Constitution, means, for school districts as defined,
31those local revenues, except revenues identified pursuant to
32paragraph (5) of subdivisionbegin delete (h)end deletebegin insert (j)end insert of Sectionbegin delete 42238,end deletebegin insert 42238.02,end insert
33 that are used to offset state aid for school districts in calculations
34performed pursuant to Sectionsbegin delete 2558, 42238,end deletebegin insert 2575, 42238.02,end insert and
35Chapter 7.2 (commencing with Section 56836) of Part 30begin insert of
36Division 4end insert
.

37(h) “Allocated local proceeds of taxes,” as used in paragraph
38(2) or (3) of subdivision (b) of Section 8 of Article XVI of the
39California Constitution, means, for community college districts,
40those local revenues that are used to offset state aid for community
P109  1college districtsbegin delete in calculations performed pursuant to Section
284700end delete
. In no event shall the revenues or receipts derived from
3student fees be considered “allocated local proceeds of taxes.”

4(i) For purposes of calculating the 4-percent entitlement pursuant
5to subdivision (a) of Section 8.5 of Article XVI of the California
6Constitution, “the total amount required pursuant to Section 8(b)”
7shall mean the General Fund aid required for schools pursuant to
8subdivision (b) of Section 8 of Article XVI of the California
9Constitution, and shall not include allocated local proceeds of
10taxes.

begin delete

11(j) This section shall become inoperative on December 15, 2012,
12and, as of January 1, 2013, is repealed, only if the Schools and
13Local Public Safety Protection Act of 2012 (Attorney General
14reference number 12-0009) is not approved by the voters at the
15November 6, 2012, statewide general election, or if the provisions
16of that act that modify personal income tax rates do not become
17operative due to a conflict with another initiative measure that is
18approved at the same election and receives a greater number of
19affirmative votes.

end delete
20begin insert

begin insertSEC. 95.end insert  

end insert

begin insertSection 41300 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
21

41300.  

Commencing with July 1, 1980, the amount transferred
22to Section A of the State School Fund pursuant to subdivision (a)
23of Section 14002 shall be expended for basic aid, equalization aid,
24allowances for adults, and allowances to the county school tuition
25funds to be apportioned on account of average daily attendance.

end delete
26begin insert

begin insertSEC. 96.end insert  

end insert

begin insertSection 41301 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
27

41301.  

The amount transferred to Section A of the State School
28Fund pursuant to Section 14002 and Section 14004 shall be
29expended in accordance with the following schedule:

30(a) Twenty-six dollars and ninety-five cents ($26.95) multiplied
31by the total average daily attendance credited during the preceding
32school year to elementary school districts which during the
33preceding school year had less than 901 units of average daily
34attendance, to high school districts which during the preceding
35school year had less than 301 units of average daily attendance,
36and to unified districts which during the preceding school year had
37less than 1,501 units of average daily attendance, but not to exceed
38an amount equal to ninety-nine cents ($0.99) multiplied by the
39average daily attendance credited during the preceding fiscal year
40to all elementary, high, and unified school districts and to all county
P110  1superintendents of schools in the state, for allowance to county
2school service funds pursuant to subdivision (a) of Section 14054.

3Commencing with the 1980-81 fiscal year, the amounts in this
4subdivision shall be increased annually by the same percentage
5prescribed by Section 14002.5.

6(b) Fourteen dollars and thirty-five cents ($14.35) multiplied
7by the total average daily attendance credited to all elementary,
8high, and unified school districts and to all county superintendents
9of schools in the state, during the preceding school year for the
10purposes of Article 10 (commencing with Section 41850) of
11Chapter 5 of this part.

12(c) Thirty-eight dollars and thirty cents ($38.30) multiplied by
13the total average daily attendance credited to all elementary, high,
14and unified school districts and to all county superintendents of
15schools in the state, during the preceding school year, for the
16purposes of Article 3 (commencing with Section 56030) of Chapter
171, Chapter 3 (commencing with Section 56500), Chapter 5
18(commencing with Section 56700) of Part 30 of Division 4 of this
19title, and Sections 41863, 41866, 41892, and 41897.

20(d) Four dollars and fifty cents ($4.50) multiplied by the total
21average daily attendance credited to all elementary, high, and
22unified school districts and to all county superintendents of schools
23in the state during the preceding school year for allowances to
24county school service funds pursuant to subdivision (b) of Section
2514054.

26Commencing with the 1980-81 fiscal year, the amount in this
27subdivision shall be increased by the same percentage allowed in
28Section 14002.5.

29(e) Three dollars and sixty-nine cents ($3.69) multiplied by the
30average daily attendance during the preceding fiscal year credited
31to all elementary, high, and unified school districts and to all county
32superintendents of schools in the state for allowances to school
33districts for the purposes of Section 52205. The amount in this
34subdivision shall be annually increased by the percentage specified
35in subdivision (e) of Section 14002.

36(f) One thousand three hundred sixty-four dollars and
37seventy-one cents ($1,364.71) multiplied by the average daily
38attendance during the preceding fiscal year credited to all
39elementary, high, and unified school districts and to all county
40superintendents of schools in the state during the preceding school
P111  1year for basic aid, equalization aid, allowances for adults, and
2allowances to the county school tuition funds to be apportioned
3on account of average daily attendance. The amount expended
4pursuant to this subdivision shall be annually revised to reflect the
5adjustment prescribed by subdivision (e) of Section 14002.

6(g) Twenty dollars and seventy cents ($20.70) multiplied by the
7average daily attendance during the preceding school year credited
8to all elementary, high, and unified school districts and to all county
9superintendents of schools in the state for purposes of Chapter 4
10(commencing with Section 56600) of Part 30 of Division 4 of this
11title.

12(h) Ninety cents ($0.90) multiplied by the average daily
13attendance during the preceding fiscal year credited to all
14elementary, high, and unified school districts and to all county
15superintendents of schools in the state for purposes of Article 8
16(commencing with Section 8150) of Chapter 1 of Part 6.

end delete
17begin insert

begin insertSEC. 97.end insert  

end insert

begin insertSection 41303 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
18read:end insert

19

41303.  

The Superintendentbegin delete of Public Instructionend delete shall report
20to the Controller, on or before the 20th day of October of each
21year, the total average daily attendance during the preceding fiscal
22year credited to all kindergarten,begin insert including average daily
23attendance for transitional kindergarten,end insert
elementary,begin insert andend insert high
24begin delete school, and adultend delete schools in the state and to county school tuition
25funds.

26begin insert

begin insertSEC. 98.end insert  

end insert

begin insertSection 41320.1 of the end insertbegin insertEducation Codeend insertbegin insert is amended
27to read:end insert

28

41320.1.  

Acceptance by the school district of the
29apportionments made pursuant to Section 41320 constitutes the
30agreement by the school district to all of the following conditions:

31(a) The Superintendent shall appoint a trustee who has
32recognized expertise in management and finance and may employ,
33on a short-term basis, staff necessary to assist the trustee, including,
34but not limited to, certified public accountants, as follows:

35(1) The expenses incurred by the trustee and necessary staff
36shall be borne by the school district.

37(2) The Superintendent shall establish the terms and conditions
38of the employment, including the remuneration of the trustee. The
39trustee shall serve at the pleasure of, and report directly to, the
40Superintendent.

P112  1(3) The trustee, and necessary staff, shall serve until the school
2district has adequate fiscal systems and controls in place, the
3Superintendent has determined that the school district’s future
4compliance with the fiscal plan approved for the school district
5under Section 41320 is probable, and the Superintendent decides
6to terminate the trustee’s appointment, but in no event, for less
7than three years. The Superintendent shall notify the county
8superintendent of schools, the Legislature, the Department of
9Finance, and the Controller no less than 60 days before the time
10that the Superintendent expects these conditions to be met.

11(4) Before the school district repays the loan, including interest,
12the recipient of the loan shall select an auditor from a list
13established by the Superintendent and the Controller to conduct
14an audit of its fiscal systems. If the fiscal systems are deemed to
15be inadequate, the Superintendent may retain the trustee until the
16deficiencies are corrected. The cost of this audit and any additional
17cost of the trustee shall be borne by the school district.

18(5) Notwithstanding any other law, all reports submitted to the
19trustee are public records.

20(6) To facilitate the appointment of the trustee and the
21employment of necessary staff, for purposes of this section, the
22Superintendent is exempt from the requirements of Article 6
23(commencing with Section 999) of Chapter 6 of Division 4 of the
24Military and Veterans Code and Part 2 (commencing with Section
2510100) of Division 2 of the Public Contract Code.

26(7) Notwithstanding any other law, the Superintendent may
27appoint an employee of the department to act as trustee for up to
28the duration of the trusteeship. The salary and benefits of that
29employee shall be established by the Superintendent and paid by
30the school district. During the time of appointment, the employee
31is an employee of the school district, but shall remain in the same
32retirement system under the same plan as if the employee had
33remained in the department. Upon the expiration or termination
34of the appointment, the employee shall have the right to return to
35his or her former position, or to a position at substantially the same
36level as that position, with the department. The time served in the
37appointment shall be counted for all purposes as if the employee
38had served that time in his or her former position with the
39department.

P113  1(b) (1) The trustee appointed by the Superintendent shall
2monitor and review the operation of the school district. During the
3period of his or her service, the trustee may stay or rescind an
4action of the governing board of the school district that, in the
5judgment of the trustee, may affect the financial condition of the
6school district.

7(2) After the trustee’s period of service, and until the loan is
8repaid, the county superintendent of schools that has jurisdiction
9over the school district may stay or rescind an action of the
10governing board of the school district that, in his or her judgment,
11may affect the financial condition of the school district. The county
12superintendent of schools shall notify the Superintendent, within
13five business days, if he or she stays or rescinds an action of the
14governing board of the school district. The notice shall include,
15but not be limited to, both of the following:

16(A) A description of the governing board of the school district’s
17intended action and its financial implications.

18(B) The rationale and findings that support the county
19superintendent of school’s decision to stay or rescind the action
20of the governing board of the school district.

21(3) If the Superintendent is notified by the county superintendent
22of schools pursuant to paragraph (2), the Superintendent shall
23report to the Legislature, on or before December 30 of every year,
24whether the school district is complying with the fiscal plan
25approved for the school district.

26(4) The Superintendent may establish timelines and prescribe
27formats for reports and other materials to be used by the trustee to
28monitor and review the operations of the school district. The trustee
29shall approve or reject all reports and other materials required from
30the school district as a condition of receiving the apportionment.
31The Superintendent, upon the recommendation of the trustee, may
32reduce an apportionment to the school district in an amount up to
33two hundred dollars ($200) per day for each late or unacceptable
34report or other material required under this part, and shall report
35to the Legislature a failure of the school district to comply with
36the requirements of this section. If the Superintendent determines,
37at any time, that the fiscal plan approved for the school district
38under Section 41320 is unsatisfactory, he or she may modify the
39plan as necessary, and the school district shall comply with the
40plan as modified.

P114  1(c) At the request of the Superintendent, the Controller shall
2transfer to the department, from an apportionment to which the
3school district would otherwise have been entitled pursuant to
4Sectionbegin delete 42238,end deletebegin insert 42238.02, as implemented pursuant to Section
542238.03,end insert
the amount necessary to pay the expenses incurred by
6the trustee and associated costs incurred by the county
7superintendent of schools.

8(d) For the fiscal year in which the apportionments are disbursed
9and every year thereafter, the Controller, or his or her designee,
10shall cause an audit to be conducted of the books and accounts of
11the school district, in lieu of the audit required by Section 41020.
12At the Controller’s discretion, the audit may be conducted by the
13Controller, his or her designee, or an auditor selected by the school
14district and approved by the Controller. The costs of these audits
15shall be borne by the school district. These audits shall be required
16until the Controller determines, in consultation with the
17Superintendent, that the school district is financially solvent, but
18in no event earlier than one year following the implementation of
19the plan or later than the time the apportionment made is repaid,
20including interest. In addition, the Controller shall conduct quality
21control reviews pursuant to subdivision (c) of Section 14504.2.

22(e) For purposes of errors and omissions liability insurance
23policies, the trustee appointed pursuant to this section is an
24employee of the local educational agency to which he or she is
25assigned. For purposes of workers’ compensation benefits, the
26trustee is an employee of the local educational agency to which
27he or she is assigned, except that a trustee appointed pursuant to
28paragraph (7) of subdivision (a) is an employee of the department
29for that purpose.

30(f) Except for an individual appointed by the Superintendent as
31trustee pursuant to paragraph (7) of subdivision (a), the
32state-appointed trustee is a member of the State Teachers’
33Retirement System, if qualified, for the period of service as trustee,
34unless the trustee elects in writing not to become a member. A
35person who is a member or retirant of the State Teachers’
36Retirement System at the time of appointment shall continue to
37be a member or retirant of the system for the duration of the
38appointment. If the trustee chooses to become a member or is
39already a member, the trustee shall be placed on the payroll of the
40school district for purposes of providing appropriate contributions
P115  1to the system. The Superintendent may also require that an
2individual appointed as trustee pursuant to paragraph (7) of
3subdivision (a) be placed on the payroll of the school district for
4purposes of remuneration, other benefits, and payroll deductions.
5For purposes of workers’ compensation benefits, the
6state-appointed trustee is deemed an employee of the local
7educational agency to which he or she is assigned, except that a
8trustee who is appointed pursuant to paragraph (7) of subdivision
9(a) is an employee of the department for that purpose.

10begin insert

begin insertSEC. 99.end insert  

end insert

begin insertSection 41329.55 of the end insertbegin insertEducation Codeend insertbegin insert is amended
11to read:end insert

12

41329.55.  

(a) Simultaneous with the execution of the lease
13financing authorized pursuant to Section 41329.52, the bank shall
14provide to the Controller and the school district a notification of
15its lease financing. The notice shall include a schedule of rent
16payments to become due to the bank from the school district and
17the bond trustee. The Controller shall make the apportionment to
18the bond trustee of those amounts on the dates shown on the
19schedule. The bank may further authorize the apportionments to
20be used to pay or reimburse the provider of any credit enhancement
21of bonds and other ongoing or periodic ancillary costs of the bond
22financing issued by the bank in connection with this article. If the
23amount of rent payments vary from the schedule as a result of
24variable interest rates on the bonds, early redemptions, or changes
25in expenses, the bank shall amend or supplement the schedule
26accordingly.

27(b) Except where financing is for a community college district,
28the Controller shall make the apportionment only from moneys in
29Section A of the State School Fundbegin insert or any local control funding
30formula allocations pursuant to Section 42238.02, as implemented
31by Section 42238.03,end insert
designated for apportionment to thebegin insert schoolend insert
32 district andbegin delete anyend deletebegin insert anend insert apportionment authorized pursuant to this
33subdivision shall constitute a lien senior to any other apportionment
34or payment of State School Fund moneys to or for thatbegin insert schoolend insert
35 district not made pursuant to this subdivision.

36(c) If financing is for the Compton Community College District,
37the Controller shall make the apportionment only from moneys in
38Section B of the State School Fund.begin delete Anyend deletebegin insert Anend insert apportionment
39authorized pursuant to this subdivision shall constitute a lien senior
P116  1to any other apportionment or payment of Section B State School
2Fund moneys.

3(d) The amount apportioned for a school district pursuant to
4this section is an allocation to thebegin insert schoolend insert district for purposes of
5subdivision (b) of Section 8 of Article XVI of the California
6Constitution. For purposes of computingbegin delete revenue limits pursuant
7to Section 42238end delete
begin insert apportionments for local control funding formula
8allocations pursuant to Section 42238.02, as implemented pursuant
9to Section 42238.03,end insert
for any school district, thebegin delete revenue limitend deletebegin insert local
10control funding formula allocations pursuant to Section 42238.02,
11as implemented pursuant to Section 42238.03,end insert
for any fiscal year
12in which funds are apportioned for thebegin insert schoolend insert district pursuant to
13this section shall include any amounts apportioned by the
14Controller pursuant to subdivisions (a), (b), and (c), as well as
15Section 41329.57.

16(e) No party, including the school district or any of its creditors,
17shall have any claim to the money apportioned or to be apportioned
18to the bond trustee by the Controller pursuant to this section.

19begin insert

begin insertSEC. 100.end insert  

end insert

begin insertSection 41332 of the end insertbegin insertEducation Codeend insertbegin insert is amended
20to read:end insert

21

41332.  

The Superintendentbegin delete of Public Instructionend delete shall, on or
22before February 20th of each year, apportion to each elementary
23school district, high school district, county school service fund,
24and county school tuition fund the total amounts allowed to them
25under Sections 14054, 14057, 14058, 41790, 41800,begin delete 41810, 41811,
2641840, 41841, 41863, 41866, 41882, 41884, 41885, 41886, 41888,end delete

27 41950, 41970,begin insert andend insert 41971,begin delete 42004, 42005, 42054, 42055, 42056,
28and 52205,end delete
whichever are in effect. This apportionment shall be
29called the first principal apportionment.

30begin insert

begin insertSEC. 101.end insert  

end insert

begin insertSection 41334 of the end insertbegin insertEducation Codeend insertbegin insert is amended
31to read:end insert

32

41334.  

The Superintendentbegin delete of Public Instructionend delete shall on or
33before December 10th of each year apportion:

34(a) To each elementary, high school, and county school service
35fund the total of amounts allowed to them underbegin delete Sections 41850
36to 41862, inclusive, and Sections 41930 to 41936, inclusive, andend delete

37begin insert Article 14 (commencing with Section 41930) of Chapter 5.end insert

38(b) To each school district maintaining a high school or high
39 schools, each county superintendent of schools, thebegin delete California
40Youth Authorityend delete
begin insert Division of Juvenile Justiceend insert and thebegin delete State
P117  1Department of Educationend delete
begin insert departmentend insert the total of amounts allowed
2to them under Sections 41900 to 41912, inclusive.

3This apportionment shall be called the special purpose
4apportionment.

5begin insert

begin insertSEC. 102.end insert  

end insert

begin insertSection 41335 of the end insertbegin insertEducation Codeend insertbegin insert is amended
6to read:end insert

7

41335.  

(a) The Superintendentbegin delete of Public Instructionend delete shall on
8or before July 2 of each year apportion to each elementary school
9district, high school district, county school service fund, and county
10school tuition fund the total amounts allowed to each respective
11district or fund, as would have been apportioned on June 25 of the
12fiscal year of the apportionment pursuant to Section 41335 as it
13read on May 30, 2003, under Sections 14054, 14057, 14058, 41790,
1441800,begin delete 41810, 41811, 41840, 41841, 41863, 41866, 41882, 41884,
1541885, 41886, 41888,end delete
41950, 41970,begin insert andend insert 41971,begin delete 42004, 42005,
1642054, 42055, 42056, and 52205,end delete
whichever are in effect. This
17apportionment shall be called the second principal apportionment.

18(b) This section shall become operative on June 1, 2003.

19begin insert

begin insertSEC. 103.end insert  

end insert

begin insertSection 41341 of the end insertbegin insertEducation Codeend insertbegin insert is amended
20to read:end insert

21

41341.  

(a) (1) If, during any fiscal year, the amount
22apportioned to a school district or to any fund from Section A of
23the State School Fund differs either positively or negatively from
24the amount to which the district or fund was entitled by an amount
25equal to revenue limit fundingbegin insert through the 2012-13 fiscal year,
26and, commencing with the 2013-14 fiscal year, local control
27funding formula entitlements pursuant to Section 42238.02, as
28implemented pursuant to Section 42238.03,end insert
for one unit of average
29daily attendance, the Superintendentbegin delete of Public Instructionend delete, in
30accordance with regulations that he or she is hereby authorized to
31adopt, not later than the first succeeding fiscal year from the fiscal
32year in which the computational error was made, shall withhold
33from, or add to, the apportionment made during that fiscal year,
34the amount of the excess or deficiency, as the case may be.
35Notwithstanding any other provision of this code to the contrary,
36excesses withheld or deficiencies added by the Superintendentbegin delete of
37Public Instructionend delete
under this subdivision shall be added to or
38allowed from any portion of the State School Fund.

39(2) Notwithstanding paragraph (1), excesses may be withheld
40or deficiencies added to apportionments on account of audit
P118  1exceptions in any fiscal year in which they are certified by the
2Superintendentbegin delete of Public Instructionend delete.

3(b) If, during any fiscal year, the amount apportioned to a
4community college district or to any fund from Section B of the
5State School Fund differs either positively or negatively from the
6amount to which thebegin insert community collegeend insert district or fund was
7entitled, by an amount equal to the funding of one full-time
8equivalent student, the Chancellor of the California Community
9Colleges, in accordance with regulations that he or she is hereby
10authorized to adopt, not later than the first succeeding fiscal year
11from the fiscal year in which the computational error was made,
12shall withhold from, or add to, the apportionment made during
13that fiscal year, the amount of the excess or deficiency, as the case
14may be. Notwithstanding any other provision of this code to the
15contrary, excesses withheld or deficiencies added by the Chancellor
16of the California Community Colleges under this subdivision shall
17be added to or allowed from any portion of the State School Fund.

18begin insert

begin insertSEC. 104.end insert  

end insert

begin insertSection 41344 of the end insertbegin insertEducation Codeend insertbegin insert is amended
19to read:end insert

20

41344.  

(a) If, as the result of an audit or review, a local
21educational agency is required to repay an apportionment
22significant audit exception or to pay a penalty arising from an audit
23exception, the Superintendent and the Director of Finance, or their
24designees, jointly shall establish a plan for repayment of state
25school funds that the local educational agency received on the
26basis of average daily attendance, or other data, that did not comply
27with statutory or regulatory requirements that were conditions of
28the apportionments, or for payment of a penalty arising from an
29audit exception. A local educational agency shall request a plan
30within 90 days of receiving the final audit report or review, within
3130 days of withdrawing or receiving a final determination regarding
32an appeal pursuant to subdivision (d), or, in the absence of an
33appeal pursuant to subdivision (d), within 30 days of withdrawing
34or receiving a determination of a summary review pursuant to
35subdivision (d) of Section 41344.1. At the time the local
36educational agency is notified, the Controller also shall be notified
37of the plan. The plan shall be established in accordance with the
38following:

39(1) The Controller shall withhold the disallowed or penalty
40amount at the next principal apportionment or pursuant to
P119  1paragraph (2), unless subdivision (d) of this section or subdivision
2(d) of Section 41344.1 applies, in which case the disallowed or
3penalty amount shall be withheld, at the next principal
4apportionment or pursuant to paragraph (2) following the
5determination regarding the appeal or summary appeal. In
6calculating a disallowed amount, the Controller shall determine
7the total amount of overpayment received by the local educational
8agency on the basis of average daily attendance, or other data,
9 reported by the local educational agency that did not comply with
10one or more statutory or regulatory requirements that are conditions
11of apportionment.

12(2) If the Superintendent and the Director of Finance concur
13that repayment of the full liability or payment of the penalty in the
14current fiscal year would constitute a severe financial hardship for
15the local educational agency, they may approve a plan of equal
16annual payments over a period of up to eight years. The plan shall
17include interest on each year’s outstanding balance at the rate
18earned on the state’s Pooled Money Investment Account during
19that year. The Superintendent and the Director of Finance jointly
20shall establish this plan. The Controller shall withhold amounts
21pursuant to the plan.

22(3) If the Superintendent and the Director of Finance do not
23jointly establish a plan, the Controller shall withhold the entire
24 disallowed amount determined pursuant to paragraph (1), or the
25penalty amount, at the next principal apportionment.

26(b) (1) For purposes of computing average daily attendance
27pursuant to Section 42238.5,begin insert as it read on January 1, 2013, and
28Section 42238.05,end insert
a local educational agency’s prior fiscal year
29average daily attendance shall be reduced by an amount equal to
30any average daily attendance disallowed in the current year, by an
31audit or review, as defined in subdivision (e).

32(2) Commencing with the 1999-2000 fiscal year, this
33subdivision may not result in a local educational agency repaying
34more than the value of the average daily attendance disallowed in
35the audit exception plus interest and other penalties or reductions
36in apportionments as provided by existing law.

37(c) Notwithstanding any other law, this section may not be
38waived under any authority set forth in this code except as provided
39in this section or Section 41344.1.

P120  1(d) Within 60 days of the date on which a local educational
2agency receives a final audit report resulting from an audit or
3 review of all or any part of the operations of the local educational
4agency, or within 30 days of receiving a determination of a
5summary review pursuant to subdivision (d) of Section 41344.1,
6a local educational agency may appeal a finding contained in the
7final report, pursuant to Section 41344.1. Within 90 days of the
8date on which the appeal is received by the panel, a hearing shall
9be held at which the local educational agency may present evidence
10or arguments if the local educational agency believes that the final
11report contains any finding that was based on errors of fact or
12interpretation of law, or if the local educational agency believes
13in good faith that it was in substantial compliance with all legal
14requirements. A repayment schedule may not commence until the
15panel reaches a determination regarding the appeal. If the panel
16determines that the local educational agency is correct in its
17assertion, in whole or in part, the allowable portion of any
18apportionment payment that was withheld shall be paid at the next
19principal apportionment.

20(e) (1) As used in this section, “audit or review” means an audit
21conducted by the Controller’s office, an annual audit conducted
22by a certified public accountant or a public accounting firm
23pursuant to Section 41020, and an audit or review conducted by a
24governmental agency that provided the local educational agency
25with an opportunity to provide a written response.

26(2) As used in this section, “local educational agency” includes
27a charter school.

28begin insert

begin insertSEC. 105.end insert  

end insert

begin insertSection 41376 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
29

41376.  

The Superintendent of Public Instruction, in computing
30apportionments and allowances from the State School Fund for
31the second principal apportionment, shall determine the following
32for the regular day classes of the elementary schools maintained
33by each school district:

34(a) For grades 1 to 3, inclusive, he shall determine the number
35of classes, the number of pupils enrolled in each class, the total
36enrollment in all such classes, the average number of pupils
37enrolled per class, and the total of the numbers of pupils which
38are in excess of thirty (30) in each class.

39For those districts which do not have any classes with an
40enrollment in excess of 32 and whose average size for all the
P121  1classes is 30.0 or less, there shall be no excess declared. For those
2districts which have one or more classes in excess of an enrollment
3of 32 or whose average size for all the classes is more than 30, the
4excess shall be the total of the number of pupils which are in excess
5of 30 in each class having an enrollment of more than 30.

6(b) For grades 4 to 8, inclusive, he shall determine the total
7number of pupils enrolled, the number of full-time equivalent
8classroom teachers, and the average number of pupils per each
9full-time equivalent classroom teacher. He shall also determine
10the excess if any, of pupils enrolled in such grades in the following
11manner:

12(1) Determine the number of pupils by which the average
13number of pupils per each full-time equivalent classroom teacher
14for the current fiscal year exceeds the greater of the average number
15of pupils per each full-time equivalent classroom teacher in all the
16appropriate districts of the state, as determined by the
17Superintendent of Public Instruction, for October 30, 1964, or the
18average number of pupils per each full-time equivalent classroom
19teacher which existed in the district on either October 30, 1964 or
20March 30, 1964, as selected by the governing board.

21(2) Multiply the number determined in (1) above by the number
22of full-time equivalent classroom teachers of the current fiscal
23year.

24(3) Reduce the number determined in (2) above by the remainder
25which results from dividing such number by the average number
26of pupils per each full-time equivalent teacher for October 30,
271964, as determined by the Superintendent of Public Instruction
28in (1) above.

29(c) He shall compute the product obtained by multiplying the
30excess number of pupils, if any, under the provisions of subdivision
31(a) of this section by ninety-seven hundredths (0.97), and shall
32multiply the product so obtained by the ratio of statewide change
33in average daily attendance to district change in average daily
34attendance. Change in average daily attendance shall be determined
35by dividing average daily attendance in grades 1, 2 and 3 reported
36for purposes of the first principal apportionment of the current
37year by that reported for purposes of the first principal
38apportionment of the preceding year.

39(d) If the school district reports that it has maintained, during
40the current fiscal year, any classes in which there were enrolled
P122  1pupils in excess of thirty (30) per class pursuant to subdivision (a)
2of this section, and there is no excess number of pupils computed
3pursuant to subdivision (b) of this section, he shall decrease the
4average daily attendance reported under the provisions of Section
541601 by the product determined under subdivision (c) of this
6section.

7(e) If the school district reports that it has maintained, during
8the current fiscal year, no classes in which there were enrolled
9pupils in excess of thirty (30) per class determined pursuant to
10subdivision (a) of this section, and there is an excess number of
11pupils computed pursuant to subdivision (b) of this section, he
12shall make the following computation:

13He shall compute the product obtained by multiplying the excess
14number of pupils computed pursuant to subdivision (b) of this
15section by ninety-seven hundredths (0.97) and shall multiply the
16product so obtained by the ratio of statewide change in average
17daily attendance to the district change in average daily attendance.
18He shall decrease the average daily attendance reported under the
19provisions of Section 41601 by the resulting product.

20(f) If the school district reports that it has maintained, during
21the current fiscal year, any classes in which there were enrolled
22pupils in excess of thirty (30) per class determined pursuant to
23subdivision (a) of this section, and there is an excess number of
24pupils computed pursuant to subdivision (b) of this section, he
25shall make the following computation:

26He shall add to the product determined under subdivision (c) of
27this section, the product determined under subdivision (e) of this
28section and decrease the average daily attendance reported under
29the provisions of Section 41601 by this total amount.

30The governing board of each school district maintaining
31elementary schools shall report for the fiscal year 1964-65 and
32each year thereafter the information required for the determination
33to be made by the Superintendent of Public Instruction under the
34provisions of this section in accordance with instructions provided
35on forms furnished and prescribed by the Superintendent of Public
36Instruction. Such information shall be reported by the school
37district together with, and at the same time as, the reports required
38to be filed for the second principal apportionment of the State
39School Fund. The forms on which the data and information is
40reported shall include a certification by each school district
P123  1superintendent or chief administrative officer that the data is correct
2and accurate for the period covered, according to his best
3information and belief.

4For purposes of this section, a “full-time equivalent classroom
5teacher” means an employee of an elementary, high school, or
6unified school district, employed in a position requiring
7certification qualifications and whose duties require him to teach
8pupils in the elementary schools of that district in regular day
9classes for the full time for which he is employed during the regular
10schoolday. In reporting the total number of full-time equivalent
11classroom teachers, there shall be included, in addition to those
12employees defined above, the full-time equivalent of all fractional
13time for which employees in positions requiring certification
14qualifications are required to devote to teaching pupils in the
15elementary schools of the district in regular day classes during the
16regular schoolday.

17For purposes of this section, the number of pupils enrolled in
18each class means the average of the active enrollment in that class
19on the last teaching day of each school month which ends prior to
20April 15th of each school year.

21The provisions of this section are not applicable to school
22districts with less than 101 units of average daily attendance for
23the current fiscal year.

24Although no decreases in average daily attendance shall be made
25for the fiscal year 1964-65, reports are required to be filed under
26the provisions of this section, and the Superintendent of Public
27Instruction shall notify each school district the amount of the
28decrease in state allowances which would have been effected had
29such decrease in average daily attendance been applied.

30The Superintendent of Public Instruction shall adopt rules and
31regulations which he may deem necessary for the effective
32administration of this section. Such rules and regulations may
33specify that no decrease in average daily attendance reported under
34the provisions of Section 41601 shall be made for a school district
35on account of large classes due to instructional television or team
36teaching, which may necessarily involve class sizes at periods
37during the day larger than the standard set forth in this section.

end delete
38begin insert

begin insertSEC. 106.end insert  

end insert

begin insertSection 41378 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
39

41378.  

The Superintendent of Public Instruction, in computing
40apportionments and allowances from the State School Fund for
P124  1the second principal apportionment, shall determine the following
2for the kindergarten classes maintained by each school district
3maintaining kindergarten classes.

4(a) The number of pupils enrolled in each kindergarten class,
5the total enrollment in all such classes, and the average number of
6pupils enrolled per class.

7(b) The total number of pupils which are in excess of thirty-three
8(33) in each class having an enrollment of more than thirty-three
9(33).

10(c) The total number of pupils by which the average class size
11in the district exceeds 31.

12(d) The greater number of pupils as determined in (b) or (c)
13above.

14(e) He shall compute the product obtained by multiplying the
15excess number of pupils computed pursuant to subdivision (d) of
16this section by ninety-seven hundredths (0.97). He shall decrease
17the average daily attendance reported under the provisions of
18Section 41601 by the resulting product.

end delete
19begin insert

begin insertSEC. 107.end insert  

end insert

begin insertSection 41400 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
20

41400.  

It is the intent and purpose of the Legislature to improve
21public education in California by maximizing the allocation of
22existing resources, to discourage the growth of bureaucracy in the
23public schools, and to emphasize the importance and significance
24of the classroom teacher.

end delete
25begin insert

begin insertSEC. 108.end insert  

end insert

begin insertSection 41401 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
26

41401.  

For the purposes of this article:

27(a) “Administrative employee” means an employee of a school
28district, employed in a position requiring certification
29qualifications, who does not come within the definition set forth
30in subdivision (c) or (d).

31(b) “Classified employee” means an employee of a school
32district, employed in a position not requiring certification
33qualifications.

34(c) “Pupil services employee” means an employee of a school
35district, employed in a position requiring a standard designated
36services credential, health and development credential, or a
37librarian credential, who performs direct services to pupils. “Pupil
38services employee” includes, but is not limited to, in-school
39librarians, school nurses, assistant in-school librarians, audiovisual
40personnel, counselors, psychologists, psychometrists, guidance
P125  1and welfare personnel, attendance personnel, school social workers,
2and all other certificated personnel performing pupil-personnel,
3health, or librarian services.

4(d) “Teacher” means an employee of a school district, employed
5in a position requiring certification qualifications, whose duties
6require him or her to provide direct instruction to pupils in the
7schools of that district for the full time for which he or she is
8employed. “Teacher” includes, but is not limited to, teachers of
9special classes, teachers of exceptional children, teachers of pupils
10with physical disabilities, teachers of minors with intellectual
11disabilities, substitute teachers, instructional television teachers,
12specialist mathematics teachers, specialist reading teachers, home
13and hospital teachers, and learning disability group teachers.
14Instructional preparation time shall be counted as part of the teacher
15full-time equivalent, including, but not limited to, mentor teacher
16or department chairperson time.

end delete
17begin insert

begin insertSEC. 109.end insert  

end insert

begin insertSection 41402 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
18

41402.  

The maximum ratios of administrative employees to
19each 100 teachers in the various types of school districts shall be
20as follows:

21(a) In elementary school districts--9.

22(b) In unified school districts--8.

23(c) In high school districts--7.

24This section shall not apply to a school district that has one or
25fewer administrators.

end delete
26begin insert

begin insertSEC. 110.end insert  

end insert

begin insertSection 41403 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
27

41403.  

The Superintendent of Public Instruction shall
28determine, for each current fiscal year, for each school district in
29the state, to two decimal points, the following:

30(a) The total number of administrative employees, except those
31serving in positions that are supported by categorical grants from
32any source and are in programs that require specific
33teacher/administrator ratios, or that are supported by federal funds.
34As to those serving in positions that are not supported completely
35by these categorical grants from any source or completely by
36federal funds, the number of employees reported shall include the
37full-time equivalent of all fractional time attributable to that time
38not supported by categorical grants or federal funds.

39(b) The total number of teachers except those serving in
40positions that are supported by federal funds or by categorical
P126  1grants from any source and are in programs that require specific
2teacher/administrator ratios. As to those serving in positions that
3are not supported completely by these categorical grants from any
4source or completely by federal funds, the number of employees
5reported shall include the full-time equivalent of all fractional time
6attributable to that time not supported by categorical grants or
7federal funds. Substitute teachers may be counted as teachers only
8if the employee for whom they are substituting is not counted. In
9no event shall the number of full-time equivalent teachers reported
10be greater than the number of full-time equivalent teaching
11positions in the district.

12(c) The total maximum number of administrative employees
13that should be employed by the district based upon the application
14of the appropriate ratio prescribed by Section 41402 to the number
15of teachers determined pursuant to subdivision (b).

16(d) The number of administrative employees in excess of the
17number allowable without penalty as determined by subtracting
18the number determined pursuant to subdivision (c) from the number
19determined pursuant to subdivision (a).

20The number of employees reported pursuant to subdivisions (a),
21(b), (c), and (d) shall include the full-time equivalent of all
22fractional time of those employees.

23For purposes of determining the allowable ratio of administrative
24employees to teachers for the San Diego City School District, the
25number of employees and the full-time equivalent of all of the
26fractional time of employees serving the district in positions
27mandated as the result of the district’s court-ordered integration
28plan is excluded from the numbers identified pursuant to
29subdivisions (a), (b), (c), and (d).

30No individual may be counted as more than one full-time
31equivalent employee unless the individual is employed on a
32part-time basis in adult education, driver education, or vocational
33education, or any part-time or additional teaching assignment, in
34addition to his or her regular full-time assignment.

end delete
35begin insert

begin insertSEC. 111.end insert  

end insert

begin insertSection 41404 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
36

41404.  

The Superintendent of Public Instruction shall determine
37the reduction in state support resulting from excess administrative
38employees identified in subdivision (d) of Section 41403 as
39follows:

P127  1(a) Compute the ratio which total state support to the district
2general fund bears to the total general fund income of the district.

3(b) Multiply the ratio determined pursuant to subdivision (a) by
4the average salary of administrative employees.

5(c) Multiply the product of subdivision (b) by the number of
6administrative employees converted to the nearest whole number
7in excess of the maximum number specified in Section 41402.

8The amount of the second principal apportionment made to the
9district for the current fiscal year pursuant to Section 41335 shall
10be reduced by the product so produced. However, no reduction
11shall reduce the final apportionment below the amount specified
12in Section 6 of Article IX of the California Constitution.

end delete
13begin insert

begin insertSEC. 112.end insert  

end insert

begin insertSection 41406 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
14

41406.  

Amounts allowable from the State School Fund but not
15transferred thereto because of the operation of Section 41404 and
16the provisions of subdivision (b) of Section 14002, shall be held
17in the General Fund and shall be expended for public school
18purposes pursuant to appropriations thereof enacted by the
19Legislature.

end delete
20begin insert

begin insertSEC. 113.end insert  

end insert

begin insertSection 41407 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
21

41407.  

Notwithstanding any other provision of law, a school
22district is subject, with regard to Section 41402, to audits conducted
23pursuant to Section 41020.

end delete
24begin insert

begin insertSEC. 114.end insert  

end insert

begin insertChapter 3.2 (commencing with Section 41500) of
25Part 24 of Division 3 of Title 2 of the end insert
begin insertEducation Codeend insertbegin insert is repealed.end insert

26begin insert

begin insertSEC. 115.end insert  

end insert

begin insertSection 41601 of the end insertbegin insertEducation Codeend insertbegin insert is amended
27to read:end insert

28

41601.  

Forbegin delete theend delete purposes of this chapter, the governing board
29of each school district shall report to the Superintendentbegin delete of Public
30Instructionend delete
during each fiscal year the average daily attendance of
31thebegin insert schoolend insert district for all full school months during (1) the period
32between July 1 and December 31, inclusive, to be known as the
33“first period” report for the first principal apportionment, and (2)
34the period between July 1 and April 15, inclusive, to be known as
35the “second period” report for the second principal apportionment.
36Each county superintendent of schools shall report the average
37daily attendance for the schools and classes maintained by him or
38her and the average daily attendance for the county school tuition
39fund.

P128  1Each report shall be prepared in accordance with instructions
2on forms prescribed and furnished by the Superintendentbegin delete of Public
3Instructionend delete
. Average daily attendance shall be computed in the
4following manner:

5(a) The average daily attendance in the regular elementary,
6middle, and high schools, including continuation schools and
7classes, opportunity schools and classes, and special day classes,
8maintained by the school districts shall be determined by dividing
9the total number of days of attendance allowed in all full school
10months in each period by the number of days the schools are
11actually taught in all full school months in each period, exclusive
12of Saturdays or Sundays and exclusive of weekend makeup classes
13pursuant to Section 37223.

14(b) The attendance for schools and classes maintained by a
15county superintendent of schools and the county school tuition
16fund shall be reported in the same manner as reported by school
17districts. The average daily attendance in special education classes
18operated by county superintendents of schools shall be determined
19in the same manner as all other attendance under subdivision (a).
20begin delete The average daily attendance in all other schools and classes
21maintained by the county superintendents of schools shall be
22determined by dividing the total number of days of attendance in
23all full school months in the first period by a divisor of 70, in the
24second period by 135 and at annual time by 175.end delete
For attendance
25in special classesbegin delete and centersend delete pursuant to Section begin delete 56364 or Sectionend delete
26 56364.2,begin delete as applicable,end delete the average daily attendance shall be
27reported by the county superintendents of schools, but credited for
28revenue limit purposes to the district in which the pupil resides.

begin delete

29(c) The days of attendance in classes for adults and regional
30occupational centers programs shall be reported in the same manner
31as all other attendance under subdivision (a). The average daily
32attendance in those schools and classes shall be determined by
33dividing the total number of days of attendance in all full school
34months in the first period by a divisor of 85 in the second period
35by 135 and at annual time by 175.

end delete
36begin insert

begin insertSEC. 116.end insert  

end insert

begin insertSection 41601.5 of the end insertbegin insertEducation Codeend insertbegin insert is amended
37to read:end insert

38

41601.5.  

For any fiscal year, a school district with an increase
39in the number of units of average daily attendance from the second
40principal apportionment to the annual apportionment may request
P129  1the county superintendent of schools to adjust thebegin insert schoolend insert district’s
2begin delete revenue limit or block grant by utilizingend deletebegin insert local control funding
3formula allocations pursuant to Section 42238.02, as implemented
4by Section 42238.03, by usingend insert
the units of average daily attendance
5for the annual apportionment in lieu of the units of average daily
6attendance for the second principal apportionment. To qualify for
7this adjustment, the increase in the units of average daily attendance
8between the two periods shall meet the following requirements:

9(a) The increase shall be equal to either paragraph (1) or (2):

10(1) Equal to or greater than 2 percent.

11(2) For the 1984-85 fiscal year and each fiscal year thereafter,
12for school districts with less than 2,501 units of average daily
13attendance, equal to or greater than 10 units of average daily
14attendance.

15(b) The increase shall be attributable to pupils of migrant
16agricultural workers.

17begin insert

begin insertSEC. 117.end insert  

end insert

begin insertSection 41601.7 of the end insertbegin insertEducation Codeend insertbegin insert is amended
18to read:end insert

19

41601.7.  

A school district with an increase or decrease in the
20number of units of average daily attendance at a necessary small
21high school from the second principal apportionment to the annual
22apportionment may request the county superintendent of schools
23to adjust the district’sbegin delete revenue limit or block grant by utilizingend delete
24begin insert local control funding formula allocations pursuant to Section
2542238.02, as implemented by Section 42238.03, by usingend insert
the units
26of average daily attendance for the annual apportionment for the
27necessary small high school in lieu of the units of average daily
28attendance for the second principal apportionment. To qualify for
29this adjustment, the following conditions shall be met:

30(1) The increase or decrease in the units of average daily
31attendance between the two periods at the necessary small high
32school shall be equal to or greater than 15 percent and such increase
33or decrease shall be attributable to pupils attending a necessary
34small high school which provides a program of education with
35individualized instruction in a residential setting at an institution
36for pupils who have been placed in foster care for rehabilitation
37purposes pursuant to Chapter 2 (commencing with Section 200)
38of Part 1 of Division 2 of the Welfare and Institutions Code.

P130  1(2) The school district reimburses the county superintendent of
2schools for the administrative costs of making the adjustment
3prescribed by this section.

4begin insert

begin insertSEC. 118.end insert  

end insert

begin insertSection 41800 of the end insertbegin insertEducation Codeend insertbegin insert is amended
5to read:end insert

6

41800.  

begin deleteThe Superintendent of Public Instruction end deletebegin insert(a)end insertbegin insertend insertbegin insertThe
7Superintendent end insert
shall allow to each high school district one hundred
8twenty dollars ($120) for each unit of average daily attendance in
9thebegin insert schoolend insert district during the fiscal year as computed under
10subdivision (a) of Section 41601, subject to the provisions of
11Section 41608, but not less than two thousand four hundred dollars
12($2,400) shall be allowed to any high school district, to be known
13as basic state aid.

begin delete

14The Superintendent of Public Instruction shall

end delete

15begin insert (b)end insertbegin insertend insertbegin insertThe Superintendent shall end insertexclude from the computation of
16allowances provided by this section the average daily attendance
17during the fiscal year of adultsbegin delete, as adults are defined in Section
1852610, and of inmates of any state penal institution for adults or
19of any city, county, or city and county jail, road camp or farm for
20adultsend delete
.

begin insert

21(c) As used in this section, “adult” means a person 18 years of
22age or older or a person who is not concurrently enrolled in a
23regular high school program. However, a person 18 years of age
24or older who is concurrently enrolled in a regular high school
25program is not an adult for purposes of this section.

end insert
26begin insert

begin insertSEC. 119.end insert  

end insert

begin insertArticle 9 (commencing with Section 41840) of
27Chapter 5 of Part 24 of Division 3 of Title 2 of the end insert
begin insertEducation Codeend insert
28begin insert is repealed.end insert

29begin insert

begin insertSEC. 120.end insert  

end insert

begin insertArticle 10 (commencing with Section 41850) of
30Chapter 5 of Part 24 of Division 3 of Title 2 of the end insert
begin insertEducation Codeend insert
31begin insert is repealed.end insert

32begin insert

begin insertSEC. 121.end insert  

end insert

begin insertArticle 10.5 (commencing with Section 41860) of
33Chapter 5 of Part 24 of Division 3 of Title 2 of the end insert
begin insertEducation Codeend insert
34begin insert is repealed.end insert

35begin insert

begin insertSEC. 122.end insert  

end insert

begin insertArticle 11 (commencing with Section 41880) of
36Chapter 5 of Part 24 of Division 3 of Title 2 of the end insert
begin insertEducation Codeend insert
37begin insert is repealed.end insert

38begin insert

begin insertSEC. 123.end insert  

end insert

begin insertArticle 13 (commencing with Section 41920) of
39Chapter 5 of Part 24 of Division 3 of Title 2 of the end insert
begin insertEducation Codeend insert
40begin insert is repealed.end insert

P131  1begin insert

begin insertSEC. 124.end insert  

end insert

begin insertSection 41972 of the end insertbegin insertEducation Codeend insertbegin insert is amended
2to read:end insert

3

41972.  

begin insert(a)end insertbegin insertend insert Balances available from any appropriation for
4apportionments from Section A of the State School Fund and funds
5provided by subdivisionbegin delete (c)end deletebegin insert (b)end insert of Section 14002, or provided by
6any otherbegin delete provision ofend delete law in lieu of those sections, shall be used
7 to restore any reductions in apportionments to elementary, high,
8and unified school districts and county superintendents of schools
9as follows:

begin delete

10(a)

end delete

11begin insert(1)end insert First, for revenue limits computed pursuant to Sectionsbegin delete 2558
12and 42238end delete
begin insert 2575 and 42238.02, as implemented by Section
1342238.03end insert
.

begin delete

14(b)

end delete

15begin insert(2)end insert Second, for special education computed pursuant to Chapter
167.2 (commencing with Section 56836) of Part 30begin insert of Division 4end insert.

begin delete

17(c) Third, for home-to-school transportation computed pursuant
18to Section 41856 or, commencing with the 1984-85 fiscal year,
19Article 10 (commencing with Section 41850) of Chapter 8.

end delete
begin delete

20Any

end delete

21begin insert(b)end insertbegin insertend insertbegin insertAny end insertremaining balances otherwise transferable under
22begin delete subdivisions (b) and (c)end deletebegin insert subdivision (b)end insert of Section 14002 shall
23revert to the General Fund.

24begin insert

begin insertSEC. 125.end insert  

end insert

begin insertSection 41975 of the end insertbegin insertEducation Codeend insertbegin insert is amended
25to read:end insert

26

41975.  

(a) Apportionments and allowances to a school district
27from Section A of the State School Fund in a fiscal year may not
28be less than the product of one hundred twenty dollars ($120)
29multiplied by the average daily attendance of the district in the
30preceding fiscal year, or two thousand four hundred dollars
31($2,400), whichever amount is the greater.

32(b) State funds apportioned to each school district for categorical
33education programs, or other state funds apportioned to each school
34district from the State School Fund, shall be applied to meet the
35requirement of Section 6 of Article IX of the California
36Constitution to provide a minimum of one hundred twenty dollars
37($120) of state aid per pupil or two thousand four hundred dollars
38($2,400) per school district.

39(c) Notwithstanding any other law, the Superintendentbegin delete of Public
40Instruction mayend delete
begin insert shallend insert not increase thebegin delete revenue limitend deletebegin insert local control
P132  1funding formula pursuant to Section 42238.02, as implemented by
2Section 42238.03,end insert
apportionment ofbegin delete anyend deletebegin insert aend insert school district to provide
3basic state aid pursuant to Section 6 of Article IX of the California
4 Constitution or any other law, unless that school district has not
5received the greater amount of one hundred twenty dollars ($120)
6per pupil or two thousand four hundred dollars ($2,400) from all
7state funds, including funds for categorical education programs.
8If a school district receives less than the amount specified in this
9subdivision, the Superintendentbegin delete of Public Instructionend delete shall allocate
10the difference between the amount of state funds received and the
11constitutional minimum of the greater amount of one hundred
12twenty dollars ($120) per pupil or two thousand four hundred
13dollars ($2,400) per school district.

14begin insert

begin insertSEC. 126.end insert  

end insert

begin insertSection 41976 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
15

41976.  

(a) For purposes of this chapter, the following classes
16and courses are authorized to be offered by school districts and
17county superintendents of schools for apportionment purposes
18from the adult education fund:

19(1) Adult programs in parenting, including parent cooperative
20preschools, and classes in child growth and development,
21parent-child relationships, and parenting.

22(2) Adult programs in elementary and secondary basic skills
23and other courses and classes required for the high school diploma.
24Apportionments for these courses and classes may only be
25generated by students who do not possess a high school diploma,
26except for remedial academic courses or classes in reading,
27mathematics, and language arts.

28(3) Adult education programs in English as a second language.

29(4) Adult education programs for immigrants eligible for
30educational services in citizenship, English as a second language,
31and workforce preparation classes in the basic skills of speaking,
32listening, reading, writing, mathematics, decisionmaking and
33problem solving skills, and other classes required for preparation
34to participate in job specific technical training.

35(5) Adult education programs for adults with disabilities.

36(6) Adult short-term career technical education programs with
37high employment potential. Any reference to “vocational”
38education or programs in adult education means “career technical”
39education or programs in adult education.

40(7) Adult programs for older adults.

P133  1(8) Adult education programs for apprentices.

2(9) Adult programs in home economics.

3(10) Adult programs in health and safety education.

4(b) No state apportionment shall be made for any course or class
5which is not set forth in subdivision (a).

end delete
6begin insert

begin insertSEC. 127.end insert  

end insert

begin insertSection 41976.1 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
7

41976.1.  

Notwithstanding Section 41976, any school district
8may offer adult education courses and classes in the adult education
9programs described in Section 41976 provided that district qualifies
10for funding to begin those courses or classes pursuant to Section
1152616.18.

end delete
12begin insert

begin insertSEC. 128.end insert  

end insert

begin insertSection 41976.2 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
13

41976.2.  

Notwithstanding Section 41976, a school district may
14offer adult education courses and classes if the school district
15received funding in the 1991-92 fiscal year to conduct programs
16through independent study for persons 21 years of age or older
17and persons 19 years of age or older who have not been
18continuously enrolled in kindergarten, or any of grades 1 to 12,
19inclusive, since their 18th birthday.

end delete
20begin insert

begin insertSEC. 129.end insert  

end insert

begin insertSection 41976.5 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
21

41976.5.  

(a) Each school district or county superintendent of
22schools providing services in summer school programs for adults
23with disabilities in the 1977-78 school year shall continue in the
241980-81 fiscal year and each fiscal year thereafter to offer these
25programs.

26(b) A school district or county superintendent of schools
27receiving apportionments from Section A of the State School Fund
28shall offer summer programs for graduating high school seniors
29in need of courses for graduation.

end delete
30begin insert

begin insertSEC. 130.end insert  

end insert

begin insertSection 42127 of the end insertbegin insertEducation Codeend insertbegin insert is amended
31to read:end insert

32

42127.  

(a) On or before July 1 of each year, the governing
33board of each school district shall accomplish the following:

34(1) Hold a public hearing on the budget to be adopted for the
35subsequent fiscal year. The budget to be adopted shall be prepared
36in accordance with Section 42126. The agenda for that hearing
37shall be posted at least 72 hours before the public hearing and shall
38include the location where the budget will be available for public
39inspection.

P134  1(A) For the 2011-12 fiscal year, notwithstanding any of the
2standards and criteria adopted by the state board pursuant to Section
333127, each school district budget shall project the same level of
4revenue per unit of average daily attendance as it received in the
52010-11 fiscal year and shall maintain staffing and program levels
6commensurate with that level.

7(B) For the 2011-12 fiscal year, the school district shall not be
8required to demonstrate that it is able to meet its financial
9obligations for the two subsequent fiscal years.

10(2) Adopt a budgetbegin insert and take action on a local control and
11accountability plan pursuant to Sections 52060 and 52064end insert
. Not
12later than five days after that adoption or by July 1, whichever
13occurs first, the governing board of the school district shall file
14that budget with the county superintendent of schools.begin delete Thatend deletebegin insert Theend insert
15 budgetbegin insert, the local control and accountability plan,end insert and supporting
16data shall be maintained and made available for public review. If
17the governing board of the school district does not want all or a
18portion of the property tax requirement levied for the purpose of
19making payments for the interest and redemption charges on
20indebtedness as described in paragraph (1) or (2) of subdivision
21(b) of Section 1 of Article XIII A of the California Constitution,
22the budget shall include a statement of the amount or portion for
23which a levy shall not be made.begin insert For the 2014-15 fiscal year and
24each fiscal year thereafter, the governing board of the school
25district shall not adopt a budget before the governing board of the
26school district adopts a local control and accountability plan or
27approves an update to an existing local control and accountability
28plan pursuant to Sections 52060 and 52064. The governing board
29of a school district shall not adopt a budget that does not align
30with the local control and accountability plan that applies to the
31subsequent fiscal year.end insert

32(b) The county superintendent of schools may accept changes
33in any statement included in the budget, pursuant to subdivision
34(a), of the amount or portion for which a property tax levy shall
35not be made. The county superintendent of schools or the county
36auditor shall compute the actual amounts to be levied on the
37property tax rolls of the school district for purposes that exceed
38apportionments to the school district pursuant to Chapter 6
39(commencing with Section 95) of Part 0.5 of Division 1 of the
40Revenue and Taxation Code. Each school district shall provide all
P135  1data needed by the county superintendent of schools or the county
2auditor to compute the amounts. On or before August 15, the
3county superintendent of schools shall transmit the amounts
4computed to the county auditor who shall compute the tax rates
5necessary to produce the amounts. On or before September 1, the
6county auditor shall submit the rate computed to the board of
7supervisors for adoption.

8(c) The county superintendent of schools shall do all of the
9following:

10(1) Examine the adopted budget to determine whether it
11complies with the standards and criteria adopted by the state board
12pursuant to Section 33127 for application to final local educational
13agency budgets. The county superintendent of schools shall
14identify, if necessary, technical corrections that are required to be
15made to bring the budget into compliance with those standards
16and criteria.

17(2) Determine whether the adopted budget will allow the school
18district to meet its financial obligations during the fiscal year and
19is consistent with a financial plan that will enable the school district
20to satisfy its multiyear financial commitments. In addition to his
21or her own analysis of the budget of each school district, the county
22superintendent of schools shall review and consider studies, reports,
23evaluations, or audits of the school district that were commissioned
24by the school district, the county superintendent of schools, the
25Superintendent, and state control agencies and that contain
26evidence that the school district is showing fiscal distress under
27the standards and criteria adopted in Section 33127 or that contain
28a finding by an external reviewer that more than three of the 15
29most common predictors of a school district needing intervention,
30as determined by the County Office Fiscal Crisis and Management
31Assistance Team, are present. The county superintendent of schools
32shall either conditionally approve or disapprove a budget that does
33not provide adequate assurance that the school district will meet
34its current and future obligations and resolve any problems
35identified in studies, reports, evaluations, or audits described in
36this paragraph.

begin insert

37(3) Determine whether the adopted budget will allow the school
38district to implement the specific actions and strategies included
39in the local control and accountability plan adopted by the
P136  1governing board of the school district pursuant to Section 52060
2and 52064.

end insert

3(d) On or before August 15, the county superintendent of schools
4shall approve, conditionally approve, or disapprove the adopted
5budget for each school district.begin insert For the 2014-15 fiscal year and
6each fiscal year thereafter, the county superintendent of schools
7shall disapprove a budget if a school district does not file a local
8control and accountability plan with the county superintendent of
9schools, if the Superintendent determines that a local control and
10accountability plan filed does not adhere to the template adopted
11by the state board pursuant to Section 52066 or does not include
12all of the components identified in subdivision (a) of Section 52064,
13or if the county superintendent of schools determines that the
14expenditures included in the budget do not reflect the costs
15necessary to implement the plan.end insert
If a school district does not submit
16a budget to the county superintendent of schools, the county
17superintendent of schools shall develop, at school district expense,
18a budget for that school district by September 15 and transmit that
19budget to the governing board of the school district. The budget
20prepared by the county superintendent of schools shall be deemed
21adopted, unless the county superintendent of schools approves any
22modifications made by the governing board of the school district.
23The approved budget shall be used as a guide for the school
24district’s priorities. The Superintendent shall review and certify
25the budget approved by the county. If, pursuant to the review
26conducted pursuant to subdivision (c), the county superintendent
27of schools determines that the adopted budget for a school district
28does not satisfy paragraph (1) or (2) of that subdivision, he or she
29shall conditionally approve or disapprove the budget and, not later
30than August 15, transmit to the governing board of the school
31district, in writing, his or her recommendations regarding revision
32of the budget and the reasons for those recommendations,
33including, but not limited to, the amounts of any budget
34adjustments needed before he or she can approve that budget. The
35county superintendent of schools may assign a fiscal adviser to
36assist the school district to develop a budget in compliance with
37those revisions. In addition, the county superintendent of schools
38may appoint a committee to examine and comment on the
39superintendent’s review and recommendations, subject to the
40requirement that the committee report its findings to the county
P137  1superintendent of schools no later than August 20. For the 2011-12
2fiscal year, notwithstanding any of the standards and criteria
3adopted by the state board pursuant to Section 33127, the county
4superintendent of schools, as a condition on approval of a school
5district budget, shall not require a school district to project a lower
6level of revenue per unit of average daily attendance than it
7received in the 2010-11 fiscal year nor require the school district
8to demonstrate that it is able to meet its financial obligations for
9the two subsequent fiscal years.

10(e) On or before September 8, the governing board of the school
11district shall revise the adopted budget to reflect changes in
12projected income or expenditures subsequent to July 1, and to
13include any response to the recommendations of the county
14superintendent of schools, shall adopt the revised budget, and shall
15file the revised budget with the county superintendent of schools.
16Before revising the budget, the governing board of the school
17district shall hold a public hearing regarding the proposed revisions,
18to be conducted in accordance with Section 42103. In addition, if
19the adopted budget is disapproved pursuant to subdivision (d), the
20governing board of the school district and the county
21superintendent of schools shall review the disapproval and the
22 recommendations of the county superintendent of schools regarding
23revision of the budget at the public hearing. The revised budget
24and supporting data shall be maintained and made available for
25public review.

26(1) For the 2011-12 fiscal year, notwithstanding any of the
27standards and criteria adopted by the state board pursuant to Section
2833127, each school district budget shall project the same level of
29revenue per unit of average daily attendance as it received in the
302010-11 fiscal year and shall maintain staffing and program levels
31commensurate with that level.

32(2) For the 2011-12 fiscal year, the school district shall not be
33required to demonstrate that it is able to meet its financial
34obligations for the two subsequent fiscal years.

35(f) On or before September 22, the county superintendent of
36schools shall provide a list to the Superintendent identifying all
37school districts for which budgets may be disapproved.

38(g) The county superintendent of schools shall examine the
39revised budget to determine whether it (1) complies with the
40standards and criteria adopted by the state board pursuant to Section
P138  133127 for application to final local educational agency budgets,
2(2) allows the school district to meet its financial obligations during
3the fiscal year, (3) satisfies all conditions established by the county
4superintendent of schools in the case of a conditionally approved
5budget, and (4) is consistent with a financial plan that will enable
6the school district to satisfy its multiyear financial commitments,
7and, not later than October 8, shall approve or disapprove the
8revised budget. If the county superintendent of schools disapproves
9the budget, he or she shall call for the formation of a budget review
10committee pursuant to Section 42127.1, unless the governing board
11of the school district and the county superintendent of schools
12agree to waive the requirement that a budget review committee be
13formed and the department approves the waiver after determining
14that a budget review committee is not necessary. Upon the grant
15of a waiver, the county superintendent of schools immediately has
16the authority and responsibility provided in Section 42127.3. Upon
17approving a waiver of the budget review committee, the department
18shall ensure that a balanced budget is adopted for the school district
19by November 30. If no budget is adopted by November 30, the
20Superintendent may adopt a budget for the school district. The
21Superintendent shall report to the Legislature and the Director of
22Finance by December 10 if any school district, including a school
23district that has received a waiver of the budget review committee
24process, does not have an adopted budget by November 30. This
25report shall include the reasons why a budget has not been adopted
26by the deadline, the steps being taken to finalize budget adoption,
27the date the adopted budget is anticipated, and whether the
28Superintendent has or will exercise his or her authority to adopt a
29budget for the school district. For the 2011-12 fiscal year,
30notwithstanding any of the standards and criteria adopted by the
31state board pursuant to Section 33127, the county superintendent
32of schools, as a condition on approval of a school district budget,
33shall not require a school district to project a lower level of revenue
34per unit of average daily attendance than it received in the 2010-11
35fiscal year nor require the school district to demonstrate that it is
36able to meet its financial obligations for the two subsequent fiscal
37years.

38(h) Not later than October 8, the county superintendent of
39schools shall submit a report to the Superintendent identifying all
40school districts for which budgets have been disapproved or budget
P139  1review committees waived. The report shall include a copy of the
2written response transmitted to each of those school districts
3pursuant to subdivision (d).

4(i) Notwithstanding any other provision of this section, the
5budget review for a school district shall be governed by paragraphs
6(1), (2), and (3), rather than by subdivisions (e) and (g), if the
7governing board of the school district so elects and notifies the
8county superintendent of schools in writing of that decision, not
9later than October 31 of the immediately preceding calendar year.
10On or before July 1, the governing board of a school district for
11which the budget review is governed by this subdivision, rather
12than by subdivisions (e) and (g), shall conduct a public hearing
13regarding its proposed budget in accordance with Section 42103.

14(1) If the adopted budget of a school district is disapproved
15pursuant to subdivision (d), on or before September 8, the
16 governing board of the school district, in conjunction with the
17county superintendent of schools, shall review the superintendent’s
18recommendations at a regular meeting of the governing board of
19the school district and respond to those recommendations. The
20response shall include any revisions to the adopted budget and
21other proposed actions to be taken, if any, as a result of those
22recommendations.

23(2) On or before September 22, the county superintendent of
24schools shall provide a list to the Superintendent identifying all
25school districts for which a budget may be tentatively disapproved.

26(3) Not later than October 8, after receiving the response
27required under paragraph (1), the county superintendent of schools
28shall review that response and either approve or disapprove the
29budget. If the county superintendent of schools disapproves the
30budget, he or she shall call for the formation of a budget review
31committee pursuant to Section 42127.1, unless the governing board
32of the school district and the county superintendent of schools
33agree to waive the requirement that a budget review committee be
34formed and the department approves the waiver after determining
35that a budget review committee is not necessary. Upon the grant
36of a waiver, the county superintendent has the authority and
37responsibility provided to a budget review committee in Section
3842127.3. Upon approving a waiver of the budget review committee,
39the department shall ensure that a balanced budget is adopted for
40the school district by November 30. The Superintendent shall
P140  1report to the Legislature and the Director of Finance by December
210 if any school district, including a school district that has received
3a waiver of the budget review committee process, does not have
4an adopted budget by November 30. This report shall include the
5reasons why a budget has not been adopted by the deadline, the
6steps being taken to finalize budget adoption, and the date the
7adopted budget is anticipated. For the 2011-12 fiscal year,
8notwithstanding any of the standards and criteria adopted by the
9state board pursuant to Section 33127, the county superintendent
10of schools, as a condition on approval of a school district budget,
11shall not require a school district to project a lower level of revenue
12per unit of average daily attendance than it received in the 2010-11
13fiscal year nor require the school district to demonstrate that it is
14able to meet its financial obligations for the two subsequent fiscal
15years.

16(4) Not later than 45 days after the Governor signs the annual
17Budget Act, the school district shall make available for public
18review any revisions in revenues and expenditures that it has made
19to its budget to reflect the funding made available by that Budget
20Act.

21(j) Any school district for which the county board of education
22serves as the governing board of the school district is not subject
23to subdivisions (c) to (h), inclusive, but is governed instead by the
24budget procedures set forth in Section 1622.

25begin insert

begin insertSEC. 131.end insert  

end insert

begin insertSection 42127.8 of the end insertbegin insertEducation Codeend insertbegin insert is amended
26to read:end insert

27

42127.8.  

(a) The governing board provided for in subdivision
28(b) shall establish a unit to be known as the County Office Fiscal
29Crisis and Management Assistance Team. The team shall consist
30of persons having extensive experience in school district budgeting,
31accounting, data processing, telecommunications, risk management,
32food services, pupil transportation, purchasing and warehousing,
33facilities maintenance and operation, and personnel administration,
34organization, and staffing. The Superintendent may appoint one
35employee of the department to serve on the unit. The unit shall be
36operated under the immediate direction of an appropriate county
37office of education selected jointly, in response to an application
38process, by the Superintendent and the president of the state board
39or his or her designee.

P141  1(b) The unit established under subdivision (a) shall be selected
2and governed by a 25-member governing board consisting of one
3representative chosen by the California County Superintendents
4Educational Services Association from each of the 11 county
5service regions designated by the association, 11 superintendents
6of school districts chosen by the Association of California School
7Administrators from each of the 11 county service regions, one
8representative from the department chosen by the Superintendent,
9the Chancellor of the California Community Colleges or his or her
10designee, and one member of a community college district
11governing board chosen by the chancellor. The governing board
12of the County Office Fiscal Crisis and Management Assistance
13Team shall select a county superintendent of schools to chair the
14unit.

15(c) (1) The Superintendent may request the unit to provide the
16assistance described in subdivision (b) of Section 1624, Section
171630, subdivision (b) of Section 42127.3, subdivision (c) of Section
1842127.6, Section 42127.9, and subdivision (a) of Sectionbegin delete 42238.2,end delete
19begin insert 42238.051,end insert and to review the fiscal and administrative condition
20of any county office of education, school district, or charter school.

21(2) A county superintendent of schools may request the unit to
22review the fiscal or administrative condition of a school district
23or charter school under his or her jurisdiction.

24(3) The Board of Governors of the California Community
25Colleges may request the unit to provide the assistance described
26in Section 84041.

27(d) In addition to the functions described in subdivision (c), the
28unit shall do all of the following:

29(1) Provide fiscal management assistance, at the request of any
30school district, charter school, or county office of education, or,
31pursuant to subdivision (g) of Section 84041, at the request of any
32community college district. Each school district, charter school,
33or county office of education receiving that assistance shall be
34required to pay the onsite personnel costs and travel costs incurred
35by the unit for that purpose, pursuant to rates determined by the
36governing board established under subdivision (b). The governing
37board annually shall distribute rate information to each school
38district, charter school, and county office of education.

39(2) Facilitate training for members of the governing board of
40the school district, district and county superintendents, chief
P142  1financial officers within the district, and schoolsite personnel whose
2primary responsibility is to address fiscal issues. Training services
3shall emphasize efforts to improve fiscal accountability and expand
4the fiscal competency of local agencies. The unit shall use state
5professional associations, private organizations, and public agencies
6to provide guidance, support, and the delivery of any training
7services.

8(3) Facilitate fiscal management training through the 11 county
9service regions to county office of education staff to ensure that
10they develop the technical skills necessary to perform their
11fiduciary duties. The governing board established pursuant to
12subdivision (b) shall determine the extent of the training that is
13necessary to comply with this paragraph.

14(4) Produce a training calendar, to be disseminated semiannually
15to each county service region, that publicizes all of the fiscal
16training services that are being offered at the local, regional, and
17state levels.

18(e) The governing board shall reserve not less than 25 percent,
19nor more than 50 percent, of its revenues each year for expenditure
20for the costs of contracts and professional services as management
21assistance to school districts or county superintendents of schools
22in which the board determines that a fiscal emergency exists.

23(f) The governing board established under subdivision (b) may
24levy an annual assessment against each county office of education
25that elects to participate under this section in an amount not to
26exceed twenty cents ($0.20) per unit of total average daily
27attendance for all school districts within the county. The revenues
28collected pursuant to that assessment shall be applied to the
29expenses of the unit.

30(g) The governing board established under subdivision (b) may
31pay to the department, from any available funds, a reasonable
32amount to reimburse the department for actual administrative
33expenses incurred in the review of the budgets and fiscal conditions
34of school districts, charter schools, and county superintendents of
35schools.

36(h) When employed as a fiscal adviser by the department
37pursuant to Section 1630, employees of the unit established
38pursuant to subdivision (a) shall be considered employees of the
39department for purposes of errors and omissions liability insurance.

P143  1(i) (1) The unit shall request and review applications to establish
2regional teams of education finance experts throughout the state.

3(2) To the extent that funding is provided for purposes of this
4subdivision in the annual Budget Act or through another
5appropriation, regional teams selected by the Superintendent, in
6consultation with the unit, shall provide training and technical
7expertise to school districts, charter schools, and county offices of
8education facing fiscal difficulties.

9(3) The regional teams shall follow the standards and guidelines
10of and remain under the general supervision of the governing board
11established under subdivision (b).

12(4) It is the intent of the Legislature that, to the extent possible,
13the regional teams be distributed geographically throughout the
14various regions of the state in order to provide timely, cost-effective
15expertise to school districts, charter schools, county offices of
16education, and community college districts throughout the state.

17begin insert

begin insertSEC. 132.end insert  

end insert

begin insertSection 42238 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
18

42238.  

(a) For the 1984-85 fiscal year and each fiscal year
19thereafter, the county superintendent of schools shall determine a
20revenue limit for each school district in the county pursuant to this
21section.

22(b) The base revenue limit for a fiscal year shall be determined
23by adding to the base revenue limit for the prior fiscal year the
24following amounts:

25(1) The inflation adjustment specified in Section 42238.1.

26(2) For the 1995-96 fiscal year, the equalization adjustment
27specified in Section 42238.4.

28(3) For the 1996-97 fiscal year, the equalization adjustments
29specified in Sections 42238.41, 42238.42, and 42238.43.

30(4) For the 1985-86 fiscal year, the amount per unit of average
31daily attendance received in the 1984-85 fiscal year pursuant to
32Section 42238.7.

33(5) For the 1985-86, 1986-87, and 1987-88 fiscal years, the
34amount per unit of average daily attendance received in the prior
35fiscal year pursuant to Section 42238.8.

36(6) For the 2004-05 fiscal year, the equalization adjustment
37specified in Section 42238.44.

38(7) For the 2006-07 fiscal year, the equalization adjustment
39specified in Section 42238.48.

P144  1(8) For the 2011-12 fiscal year, the equalization adjustment
2specified in Section 42238.49.

3(c) (1) (A) For the 2010-11 fiscal year, the Superintendent
4shall compute an add-on for each school district by adding the
5inflation adjustment specified in Section 42238.1 to the adjustment
6specified in Section 42238.485.

7(B) For the 2011-12 fiscal year and each fiscal year thereafter,
8the Superintendent shall compute an add-on for each school district
9by adding the inflation adjustment specified in Section 42238.1 to
10the amount computed pursuant to this paragraph for the prior fiscal
11year.

12(2) Commencing with the 2010-11 fiscal year, the
13Superintendent shall compute an add-on for each school district
14by dividing each school district’s fiscal year average daily
15attendance computed pursuant to Section 42238.5 by the total
16adjustments in funding for each district made for the 2007-08
17fiscal year pursuant to Section 42238.22 as it read on January 1,
182009.

19(d) The sum of the base revenue limit computed pursuant to
20subdivision (b) and the add-on computed pursuant to subdivision
21(c) shall be multiplied by the district average daily attendance
22computed pursuant to Section 42238.5.

23(e) For districts electing to compute units of average daily
24attendance pursuant to paragraph (2) of subdivision (a) of Section
2542238.5, the amount computed pursuant to Article 4 (commencing
26with Section 42280) shall be added to the amount computed in
27subdivision (c) or (d), as appropriate.

28(f) For the 1984-85 fiscal year only, the county superintendent
29shall reduce the total revenue limit computed in this section by the
30amount of the decreased employer contributions to the Public
31Employees’ Retirement System resulting from enactment of
32Chapter 330 of the Statutes of 1982, offset by any increase in those
33contributions, as of the 1983-84 fiscal year, resulting from
34subsequent changes in employer contribution rates.

35(g) The reduction required by subdivision (f) shall be calculated
36as follows:

37(1) Determine the amount of employer contributions that would
38have been made in the 1983-84 fiscal year if the applicable Public
39Employees’ Retirement System employer contribution rate in effect
P145  1immediately before the enactment of Chapter 330 of the Statutes
2of 1982 was in effect during the 1983-84 fiscal year.

3(2) Subtract from the amount determined in paragraph (1) the
4greater of subparagraph (A) or (B):

5(A) The amount of employer contributions that would have been
6made in the 1983-84 fiscal year if the applicable Public
7Employees’ Retirement System employer contribution rate in effect
8immediately after the enactment of Chapter 330 of the Statutes of
91982 was in effect during the 1983-84 fiscal year.

10(B) The actual amount of employer contributions made to the
11Public Employees’ Retirement System in the 1983-84 fiscal year.

12(3) For purposes of this subdivision, employer contributions to
13the Public Employees’ Retirement System for either of the
14following shall be excluded from the calculation specified above:

15(A) Positions supported totally by federal funds that were subject
16to supplanting restrictions.

17(B) Positions supported, to the extent of employer contributions
18not exceeding twenty-five thousand dollars ($25,000) by a single
19educational agency, from a revenue source determined on the basis
20of equity to be properly excludable from the provisions of this
21subdivision by the Superintendent with the approval of the Director
22of Finance.

23(4) For accounting purposes, the reduction made by this
24subdivision may be reflected as an expenditure from appropriate
25sources of revenue as directed by the Superintendent.

26(h) The Superintendent shall apportion to each school district
27the amount determined in this section less the sum of:

28(1) The district’s property tax revenue received pursuant to
29Chapter 3.5 (commencing with Section 75) and Chapter 6
30(commencing with Section 95) of Part 0.5 of Division 1 of the
31Revenue and Taxation Code.

32(2) The amount, if any, received pursuant to Part 18.5
33(commencing with Section 38101) of Division 2 of the Revenue
34and Taxation Code.

35(3) The amount, if any, received pursuant to Chapter 3
36(commencing with Section 16140) of Part 1 of Division 4 of Title
372 of the Government Code.

38(4) Prior years’ taxes and taxes on the unsecured roll.

39(5) Fifty percent of the amount received pursuant to Section
4041603.

P146  1(6) (A) The amount, if any, received pursuant to the Community
2Redevelopment Law (Part 1 (commencing with Section 33000)
3of Division 24 of the Health and Safety Code), except for any
4amount received pursuant to Section 33401 or 33676 of the Health
5and Safety Code that is used for land acquisition, facility
6construction, reconstruction, or remodeling, or deferred
7maintenance, except for any amount received pursuant to Section
833492.15 of, paragraph (4) of subdivision (a) of Section 33607.5
9of, or Section 33607.7 of, the Health and Safety Code that is
10allocated exclusively for educational facilities.

11(B) The amount, if any, received pursuant to Sections 34177,
1234179.5, 34179.6, and 34188 of the Health and Safety Code.

13(C) The amount, if any, received pursuant to subparagraph (B)
14of paragraph (3) of subdivision (e) of Section 36 of Article XIII
15of the California Constitution.

16(7) For a unified school district, other than a unified school
17district that has converted all of its schools to charter status
18pursuant to Section 47606, the amount of statewide average
19general-purpose funding per unit of average daily attendance
20received by school districts for each of four grade level ranges, as
21computed by the department pursuant to Section 47633, multiplied
22by the average daily attendance, in corresponding grade level
23ranges, of any pupils who attend charter schools funded pursuant
24to Chapter 6 (commencing with Section 47630) of Part 26.8 of
25Division 4 for which the school district is the sponsoring local
26educational agency, as defined in Section 47632, and who reside
27in and would otherwise have been eligible to attend a noncharter
28school of the school district.

29(i) A transfer of pupils of grades 7 and 8 between an elementary
30school district and a high school district shall not result in the
31receiving school district receiving a revenue limit apportionment
32for those pupils that exceeds 105 percent of the statewide average
33revenue limit for the type and size of the receiving school district.

end delete
34begin insert

begin insertSEC. 133.end insert  

end insert

begin insertSection 42238.02 is added to the end insertbegin insertEducation Codeend insertbegin insert,
35to read:end insert

begin insert
36

begin insert42238.02.end insert  

(a) The amount computed pursuant to this section
37shall be known as the school district and charter school local
38control funding formula.

39(b) (1) For purposes of this section “unduplicated pupil” means
40a pupil enrolled in a school district or a charter school who is
P147  1either classified as an English learner pursuant to Section 52164,
2as that section read on January 1, 2013, eligible to receive a free
3or reduced-price meal pursuant to Section 49552, as that section
4read on January 1, 2013, or is a foster youth pursuant to Sections
5300 and 601 of the Welfare and Institutions Code. A pupil shall
6be counted only once for purposes of this section if any of the
7following apply:

8(A) The pupil is classified as an English learner and is eligible
9for a free or reduced-price meal.

10(B) The pupil is classified as an English learner and is a foster
11youth.

12(C) The pupil is classified as a foster youth and is eligible for
13a free or reduced-price meal.

14(D) The pupil is classified as an English learner, is eligible for
15a free or reduced-price meal, and is a foster youth.

16(2) For purposes if this section, a pupil shall not be classified
17as an English Learner for more than five school years in total.

18(3) Commencing with the 2013-14 fiscal year, a school district
19or charter school shall annually report their enrolled unduplicated
20pupil, free and reduced-price meal eligibility, foster youth, and
21English learner pupil counts to the Superintendent.

22(4) Commencing with the 2013-14 fiscal year, a county office
23of education shall review and validate reported English learner,
24foster youth, and free or reduced-price meal eligible pupil data
25for school districts and charter schools under their jurisdiction to
26ensure the data is reported accurately.

27(5) The counts of unduplicated pupils shall be derived by the
28Superintendent using the California Longitudinal Pupil
29Achievement Data System.

30(6) The Superintendent shall calculate the percentage of
31unduplicated pupils for each school district and charter school by
32dividing the enrollment of unduplicated pupils in a school district
33or charter school by the total enrollment in that school district or
34charter school.

35(c) Commencing with the 2013-14 fiscal year and each fiscal
36year thereafter, the Superintendent shall annually calculate a local
37control funding formula grant for each school district and charter
38school in the state pursuant to this section.

39(d) The Superintendent shall compute a grade span adjusted
40base grant equal to the total of the following amounts:

P148  1(1) For the 2013-14 fiscal year, a base grant of:

2(A) Seven thousand six hundred eighty dollars ($7,680) for
3average daily attendance in grades 9 to 12, inclusive.

4(B) Six thousand six hundred twenty-eight dollars ($6,628) for
5average daily attendance in grades 7 and 8.

6(C) Six thousand four hundred thirty-seven dollars ($6,437) for
7average daily attendance in grades 4 to 6, inclusive.

8(D) Six thousand three hundred forty-two dollars ($6,342) for
9average daily attendance in kindergarten and grades 1 to 3,
10inclusive.

11(2) In each year the grade span adjusted base grants in
12paragraph (1) shall be adjusted by the percentage change in the
13annual average value of the Implicit Price Deflator for State and
14Local Government Purchases of Goods and Services for the United
15States, as published by the United States Department of Commerce
16for the 12-month period ending in the third quarter of the prior
17fiscal year. This percentage change shall be determined using the
18latest data available as of May 10 of the preceding fiscal year
19compared with the annual average value of the same deflator for
20the 12-month period ending in the third quarter of the second
21preceding fiscal year, using the latest data available as of May 10
22of the preceding fiscal year, as reported by the Department of
23Finance.

24(3) (A) The Superintendent shall compute an additional
25adjustment to the kindergarten and grades 1 to 3, inclusive, base
26grant as adjusted for inflation pursuant to paragraph (2) equal to
2711.23 percent. The additional grant shall be calculated by
28multiplying the kindergarten and grades 1 to 3, inclusive, base
29grant as adjusted by paragraph (2) by 11.23 percent.

30(B) Until paragraph (4) of subdivision (b) of Section 42238.03
31is effective, as a condition of the receipt of funds in this paragraph,
32 a school district shall make progress toward maintaining an annual
33average class size of not more than 24 pupils for each classroom
34per school site in kindergarten and grades 1 to 3, inclusive, unless
35a collectively bargained alternative annual average class size for
36each classroom per school site in those grades is agreed to by the
37school district, pursuant to the following calculation:

38(i) Determine a school district’s annual average class size for
39each classroom per school site for kindergarten and grades 1 to
403, inclusive, in the prior year. For the 2013-14 fiscal year, this
P149  1amount shall be the annual average class size for each classroom
2per school site for kindergarten and grades 1 to 3, inclusive, in
3the 2012-13 fiscal year.

4(ii) Determine a school district’s percentage of total need
5pursuant to paragraph (2) of subdivision (b) of Section 42238.03.

6(iii) Determine the percentage of the need calculated in clause
7(ii) that is met by funding provided to the school district pursuant
8to paragraph (3) of subdivision (b) of Section 42238.03.

9(iv) Determine the difference between the amount computed
10pursuant to clause (i) and an annual average class size of not more
11than 24 pupils for each classroom per school site.

12(v) Calculate a current year annual average class size
13adjustment for each classroom per school site for kindergarten
14and grades 1 to 3, inclusive, equal to the adjustment calculated in
15clause (iv) multiplied by one minus the percentage determined
16pursuant to clause (iii).

17(C) School districts that have an annual average class size for
18each classroom per school site for kindergarten and grades 1 to
193, inclusive, of 24 pupils or less for each classroom per school site
20in the 2012-13 fiscal year, shall be exempt from the requirements
21of subparagraph (B) so long as the school district continues to
22maintain an annual average class size for each classroom per
23school site for kindergarten and grades 1 to 3, inclusive, of not
24more than 24 pupils in each classroom, unless a collectively
25bargained alternative ratio is agreed to by the school district.

26(D) Upon full implementation of the local control funding
27formula, as a condition of the receipt of funds in this paragraph,
28all school districts shall maintain an annual average class size for
29each classroom per school site for kindergarten and grades 1 to
303, inclusive, of not more than 24 pupils for each classroom per
31school site in kindergarten and grades 1 to 3, inclusive, unless a
32collectively bargained alternative ratio is agreed to by the school
33district.

34(E) The annual average class size requirement for each
35classroom per school site for kindergarten and grades 1 to 3,
36inclusive, established pursuant to this paragraph shall not be
37subject to waiver by the state board pursuant to Section 33050 or
38by the Superintendent.

39(4) The Superintendent shall compute an additional adjustment
40to the base grant for grades 9 to 12, inclusive, as adjusted for
P150  1inflation pursuant to paragraph (2), equal to 2.8 percent. The
2additional grant shall be calculated by multiplying the base grant
3for grades 9 to 12, inclusive, as adjusted by paragraph (2), by 2.8
4percent.

5(e) The Superintendent shall compute a supplemental grant
6add-on equal to 35 percent of the base grants as specified in
7subparagraphs (A) to (D), inclusive, of paragraph (1) of
8subdivision (d), as adjusted by paragraph (2) of subdivision (d),
9for each school district or charter school percentage of
10unduplicated pupils. The supplemental grant shall be calculated
11by multiplying the base grants as specified in subparagraphs (A)
12to (D), inclusive, of paragraph (1), as adjusted by paragraph (2)
13of subdivision (d), by 35 percent and by the percentage of
14unduplicated pupils in that school district or charter school.

15(f) The Superintendent shall compute a concentration grant
16add-on equal to 35 percent of the base grants as specified in
17subparagraphs (A) to (D), inclusive, of paragraph (1) of
18subdivision (d), as adjusted by paragraph (2) of subdivision (d),
19for each school district’s or charter school’s percentage of
20unduplicated pupils in excess of 50 percent of the school district’s
21or charter school’s total enrollment. The concentration grant shall
22be calculated by multiplying the base grant as specified in
23subparagraphs (A) to (D), inclusive, of paragraph (1) of
24subdivision (d), as adjusted by paragraph (2) of subdivision (d),
25by 35 percent and by the percentage of unduplicated pupils in
26excess of 50 percent of the total enrollment in that school district
27or charter school. For a charter school physically located in only
28one school district, the percentage of unduplicated pupils in excess
29of 50 percent used to calculate concentration grants shall not
30exceed the percentage of unduplicated pupils in excess of 50
31percent of the school district in which the charter school is
32physically located. If the charter school is physically located in
33more than one school district, the charter school’s percentage of
34unduplicated pupils in excess of 50 percent used to calculate
35concentration grants shall not exceed that of the school district
36with the highest percentage of unduplicated pupils in excess of 50
37percent within the charter school’s physical location.

38(g) The Superintendent shall compute an add-on to the total
39sum of a school district’s or charter school’s base, supplemental,
40and concentration grants equal to the amount of funding a school
P151  1district or charter school received from funds allocated pursuant
2to the Targeted Instructional Improvement Block Grant program,
3as set forth in Article 6 (commencing with Section 41540) of
4Chapter 3.2, for the 2012-13 fiscal year, as that article read on
5January 1, 2013. A school district or charter school shall not
6receive a total funding amount from this add-on greater than the
7total amount of funding received by the school district or charter
8school from that program in the 2012-13 fiscal year.

9(h) The Superintendent shall compute an add-on to the total
10sum of a school district’s or charter school’s base, supplemental,
11and concentration grants equal to the amount of funding a school
12district or charter school received from funds allocated pursuant
13to the Home-to-School Transportation program, as set forth in
14former Article 2 (commencing with Section 39820) of Chapter 1
15of Part 23.5 and former Article 10 (commencing with Section
1641850) of Chapter 5, for the 2012-13 fiscal year. A school district
17or charter school shall not receive a total funding amount from
18this add-on greater than the total amount received by the school
19district or charter school for that program in the 2012-13 fiscal
20year.

21(i) The sum of the local control funding formula rates computed
22pursuant to subdivisions (c) to (f), inclusive, shall be multiplied
23by:

24(1) For school districts, the average daily attendance of the
25school district in the corresponding grade level ranges computed
26pursuant to Section 42238.05.

27(2) For charter schools, the total current year average daily
28attendance in the corresponding grade level ranges.

29(j) Notwithstanding any other law, the Superintendent shall
30adjust the sum of each school district’s or charter school’s amount
31determined in subdivisions (g) to (i), inclusive, pursuant to the
32calculation specified in Section 42238.03, less the sum of the
33following:

34(1) (A) For school districts, the property tax revenue received
35pursuant to Chapter 3.5 (commencing with Section 75) and Chapter
366 (commencing with Section 95) of Part 0.5 of Division 1 of the
37Revenue and Taxation Code.

38(B) For charter schools, the in-lieu property tax amount
39provided to a charter school pursuant to Section 47635.

P152  1(2) The amount, if any, received pursuant to Part 18.5
2(commencing with Section 38101) of Division 2 of the Revenue
3and Taxation Code.

4(3) The amount, if any, received pursuant to Chapter 3
5(commencing with Section 16140) of Part 1 of Division 4 of Title
62 of the Government Code.

7(4) Prior years’ taxes and taxes on the unsecured roll.

8(5) Fifty percent of the amount received pursuant to Section
941603.

10(6) The amount, if any, received pursuant to the Community
11Redevelopment Law (Part 1 (commencing with Section 33000) of
12Division 24 of the Health and Safety Code), less any amount
13received pursuant to Section 33401 or 33676 of the Health and
14Safety Code that is used for land acquisition, facility construction,
15reconstruction, or remodeling, or deferred maintenance and that
16is not an amount received pursuant to Section 33492.15, or
17paragraph (4) of subdivision (a) of Section 33607.5, or Section
1833607.7 of the Health and Safety Code that is allocated exclusively
19for educational facilities.

20(7) The amount, if any, received pursuant to Sections 34183
21and 34188 of the Health and Safety Code.

22(8) (A) Revenue received pursuant to subparagraph (B) of
23paragraph (3) of subdivision (e) of Section 36 of Article XIII of
24the California Constitution.

25(B) Subparagraph (A) shall only offset entitlements provided
26for the purpose of paragraph (1) of subdivision (a) of Section
2742238.03 as continued in subsequent years by paragraph (3) of
28subdivision (a) of Section 42238.03.

29(k) A school district shall annually transfer to each of its charter
30schools funding in lieu of property taxes pursuant to Section 47635.

31(l) (1) The funds apportioned pursuant to this section and
32Section 42238.03, shall be available to a school district or charter
33school for any locally determined educational purpose.

34(2) School districts and charter schools that receive
35supplemental or concentration grants, or both, pursuant to this
36section shall use those funds for any locally determined educational
37purpose so long as it substantially benefits the unduplicated pupils
38that generated those funds as provided for in a school district’s
39or charter school’s local control and accountability plan.

P153  1(m) Nothing in this section shall be interpreted to authorize a
2school district that receives funding on behalf of a charter school
3pursuant to Section 47651 to redirect this funding for another
4purpose unless otherwise authorized in law or pursuant to an
5agreement between a charter school and its chartering authority.

6(n) Any calculations in law that are used for purposes of
7determining if a local educational agency is an excess tax school
8entity or basic aid school district, including, but not limited to,
9this section and Sections 42238.03, 41544, 47660, 47632, 47663,
1048310, and 48359.5, and Section 95 of the Revenue and Taxation
11Code, shall be made exclusive of the revenue received pursuant
12to subparagraph (B) of paragraph (3) of subdivision (e) of Section
1336 of Article XIII of the California Constitution.

14(o) A school district that does not receive an apportionment of
15state funds pursuant to this section as implemented pursuant to
16Section 42238.03, excluding funds apportioned due to the
17requirements of subdivision (d) of Section 42238.03 shall be
18considered a “basic aid school district” or an “excess tax entity.”

end insert
19begin insert

begin insertSEC. 134.end insert  

end insert

begin insertSection 42238.03 is added to the end insertbegin insertEducation Codeend insertbegin insert,
20to read:end insert

begin insert
21

begin insert42238.03.end insert  

Commencing with the 2013-14 fiscal year and each
22fiscal year thereafter, the Superintendent shall allocate the
23appropriations in Section 14002 to each charter school and school
24district according to the following formula:

25(a) Calculate the prior year amount of funding for each school
26district and charter school, as follows:

27(1) For the 2013-14 fiscal year, the prior year funding level
28shall be the total of all of the following:

29(A) Entitlements for revenue limits in the 2012-13 fiscal year
30pursuant to Article 2 (commencing with Section 42238) and Article
312 (commencing with Section 47633) of Chapter 6 of Part 26.8 of
32Division 4, as those articles read on June 30, 2013.

33(B) Notwithstanding subparagraph (A), entitlements for revenue
34limits for fiscal years before June 30, 2013, shall be annually
35adjusted, as necessary, for average daily attendance and revenue
36offsets, as specified in paragraphs (1) to (7), inclusive, of
37subdivision (h) of Section 42238, as that section read on June 30,
382013, and the in-lieu property tax amount provided to a charter
39school pursuant to Section 47635, as that section read on June
4030, 2013.

P154  1(2) (A) Entitlements from items contained in Section 2.00, as
2adjusted pursuant to Section 12.42, of the Budget Act of 2012 for
3Items 6110-104-0001, 6110-105-0001, 6110-108-0001,
46110-111-0001, 6110-119-0001, 6110-122-0001, 6110-124-0001,
56110-128-0001, 6110-137-0001, 6110-144-0001, 6110-156-0001,
66110-158-0001, 6110-166-0001, 6110-167-0001, 6110-181-0001,
76110-188-0001, 6110-189-0001, 6110-190-0001, 6110-193-0001,
86110-195-0001, 6110-198-0001, 6110-204-0001, 6110-208-0001,
96110-209-0001, 6110-211-0001, 6110-212-0001, 6110-227-0001,
106110-228-0001, 6110-232-0001, 6110-240-0001, 6110-242-0001,
116110-243-0001, 6110-244-0001, 6110-245-0001, 6110-246-0001,
126110-247-0001, 6110-248-0001, 6110-260-0001, 6110-265-0001,
136110-267-0001, 6110-268-0001, 6360-101-0001, and 2012-13
14fiscal year funding for the Class Size Reduction Program pursuant
15to Chapter 6.10 (commencing with Section 52120) of Part 28 of
16Division 4, as it read on January 1, 2013.

17(B) Entitlements pursuant to Section 47634.1, as that section
18read on January 1, 2013, shall be adjusted for growth in average
19daily attendance.

20(3) For the 2014-15 fiscal year and each fiscal year thereafter,
21the prior year amount shall be the amount each school district or
22charter school received in the prior year pursuant to this section.

23(b) Calculate an adjustment to the amount in subdivision (a) as
24follows:

25(1) Subtract the amount in subdivision (a) from the amount
26computed for each school district or charter school under the local
27control funding formula entitlements in subdivision (j) of Section
2842238.02. School districts and charter schools with a negative
29difference shall be deemed to have a zero difference.

30(2) Each school district’s and charter school’s total need as
31calculated pursuant to paragraph (1) shall be divided by the sum
32of all school districts’ and charter schools’ total need to determine
33the school district’s or charter school’s respective proportions of
34total need.

35(3) Each school district’s and charter school’s proportion of
36total need shall be multiplied by any available appropriations for
37this purpose, and added to the school district’s or charter school’s
38funding amounts as calculated pursuant to subdivision (a).

39(4) If the total amount of funds available for allocation pursuant
40to this subdivision are sufficient to fully fund the amounts computed
P155  1pursuant to paragraph (1), the local control funding formula grant
2computed pursuant to subdivision (c) of Section 42238.02 shall
3be adjusted such that any available appropriations for this purpose
4in that fiscal year are expended pursuant to the local control
5funding formula.

6(c) Upon a determination that a school district or charter school
7equals or exceeds the local control funding formula target
8computed pursuant to subdivision (j) of Section 42238.02, as
9determined by the calculation of a zero difference pursuant to
10paragraph (1) of subdivision (b) of this section, this section shall
11not apply and the school district or charter school shall receive
12an allocation equal to the amount calculated under Section
1342238.02 in that fiscal year and future fiscal years.

14(d) Notwithstanding subdivisions (b) and (c), commencing with
15the 2013-14 fiscal year, a school district or charter school shall
16receive state-aid funding pursuant to paragraph (3) of subdivision
17(b) of no less than the funding the school district or charter school
18received from programs in paragraphs (1) and (2) of subdivision
19(a).

20(e) (1) For purposes of this section, commencing with the
212013-14 fiscal year and until all school districts and charter
22schools equal or exceed their local control funding formula target
23computed pursuant to Section 42238.02 as determined by the
24calculation of a zero difference pursuant to paragraph (1) of
25subdivision (b), a newly operational charter school shall be
26determined to have a prior year per average daily attendance
27funding amount equal to the lesser of:

28(A) The prior year funding amount per average daily attendance
29for the school district in which the charter school is physically
30located. The Superintendent shall calculate the per average daily
31attendance amount for this purpose by dividing the total local
32control funding formula entitlement received by that school district
33in the prior year by prior year average daily attendance of that
34school district. For purposes of this paragraph, a charter school
35that is physically located in more than one school district, shall
36use the calculated per average daily attendance local control
37funding entitlement of the school district with the highest prior
38year per average daily attendance funding amount.

P156  1(B) The charter school’s local control funding formula rate
2computed pursuant to subdivisions (c) to (i), inclusive, of Section
342238.02.

4(2) For charter schools funded pursuant to paragraph (1), the
5charter school shall be eligible to receive growth funding pursuant
6to subdivision (b) toward meeting the newly operational charter
7school’s local control funding formula target.

8(3) Upon a determination that all school districts or charter
9schools equal or exceed the local control funding formula target
10computed pursuant to Section 42238.02 as determined by the
11calculation of a zero difference pursuant to paragraph (1) of
12subdivision (b) for all school districts and charter schools, this
13subdivision shall not apply and the charter school shall receive
14an allocation equal to the amount calculated under Section
1542238.02 in that fiscal year and future fiscal years.

end insert
16begin insert

begin insertSEC. 135.end insert  

end insert

begin insertSection 42238.04 is added to the end insertbegin insertEducation Codeend insertbegin insert,
17to read:end insert

begin insert
18

begin insert42238.04.end insert  

Notwithstanding any other law, revenue limit funding
19for school districts and charter school block grant funding for
20charter schools for the 2012-13 fiscal year and prior fiscal years
21shall continue to be adjusted pursuant to Article 2 (commencing
22with Section 42238), and Article 2 (commencing with Section
2347633) of Chapter 6 of Part 26.8 of Division 4, as those articles
24read on June 30, 2013.

end insert
25begin insert

begin insertSEC. 136.end insert  

end insert

begin insertSection 42238.05 is added to the end insertbegin insertEducation Codeend insertbegin insert,
26to read:end insert

begin insert
27

begin insert42238.05.end insert  

(a) For purposes of Sections 42238.02 and
2842238.03, the fiscal year average daily attendance shall be
29computed pursuant to paragraphs (1) or (2).

30(1) The second principal apportionment regular average daily
31attendance for either the current or prior fiscal year, whichever
32is greater. However, prior fiscal year average daily attendance
33shall be adjusted for any loss or gain of average daily attendance
34due to a reorganization or transfer of territory.

35(2) A school district that elects to receive funding pursuant to
36Article 4 (commencing with Section 42280) shall compute its units
37of average daily attendance for purposes of Section 42238.02 by
38subtracting the amount determined in subparagraph (B) from the
39amount determined in subparagraph (A).

P157  1(A) The units of average daily attendance computed pursuant
2to paragraph (1).

3(B) The units of average daily attendance resulting from pupils
4attending schools funded pursuant to Article 4 (commencing with
5Section 42280).

6(b) For purposes of this article, regular average daily
7attendance shall be the base grant average daily attendance.

8(c) For purposes of this section, the Superintendent shall
9distribute total ungraded enrollment and average daily attendance
10among kindergarten and each of grades 1 to 12, inclusive, in
11proportion to the amounts of graded enrollment and average daily
12attendance, respectively, in each of these grades.

13(d) For purposes of this section, the Superintendent shall
14distribute average daily attendance generated by the difference
15between prior year average daily attendance and current year
16average daily attendance, if positive, among kindergarten and
17each of grades 1 to 12, inclusive, in proportion to the amounts of
18graded average daily attendance, respectively, in each of these
19grades.

20(e) This section shall only apply to average daily attendance
21generated by school districts and shall not apply average daily
22attendance generated by charter schools.

23(f) A pupil shall not be counted more than once for purposes of
24calculating average daily attendance pursuant to this section.

end insert
25begin insert

begin insertSEC. 137.end insert  

end insert

begin insertSection 42238.051 is added to the end insertbegin insertEducation Codeend insertbegin insert,
26to read:end insert

begin insert
27

begin insert42238.051.end insert  

(a) For purposes of paragraph (1) of subdivision
28(a) of Section 42238.05, a sponsoring school district’s average
29daily attendance shall be computed as follows:

30(1) Compute the sponsoring school district’s regular average
31daily attendance in the current year, excluding the attendance of
32pupils in charter schools.

33(2) (A) Compute the regular average daily attendance used to
34calculate the second principal apportionment of the school district
35for the prior year, excluding the attendance of pupils in charter
36schools.

37(B) Compute the attendance of pupils who attended one or more
38noncharter schools of the school district between July 1, and the
39last day of the second period, inclusive, in the prior year, and who
40attended a charter school sponsored by the school district between
P158  1July 1, and the last day of the second period, inclusive, in the
2current year. For purposes of this subparagraph, a pupil enrolled
3in a grade at a charter school sponsored by the school district
4shall not be counted if the school district does not offer classes for
5pupils enrolled in that grade. The amount of the attendance counted
6for any pupil for the purpose of this subparagraph may not be
7greater than the attendance claimed for that pupil by the charter
8school in the current year.

9(C) Compute the attendance of pupils who attended a charter
10school sponsored by the school district in the prior year and who
11attended one or more noncharter schools of the school district in
12the current year. The amount of the attendance counted for any
13pupil for the purpose of this subparagraph may not be greater
14than the attendance claimed for that pupil by the school district
15in the current year.

16(D) From the amount determined pursuant to subparagraph
17(B), subtract the amount determined pursuant to subparagraph
18(C). If the result is less than zero, the amount shall be deemed to
19be zero.

20(E) The prior year average daily attendance determined
21pursuant to subparagraph (A) shall be reduced by the amount
22determined pursuant to subparagraph (D).

23(3) To the greater of the amounts computed pursuant to
24paragraphs (1) and (2), add the regular average daily attendance
25in the current year of all pupils attending charter schools
26sponsored by the school district that are not funded through the
27charter schools local control funding formula allocation pursuant
28to Section 42238.02, as implemented by Section 42238.03.

29(b) For purposes of this section, a “sponsoring school district”
30shall mean a “sponsoring local educational agency,” as defined
31in Section 47632, as that section read on January 1, 2013.

end insert
32begin insert

begin insertSEC. 138.end insert  

end insert

begin insertSection 42238.052 is added to the end insertbegin insertEducation Codeend insertbegin insert,
33to read:end insert

begin insert
34

begin insert42238.052.end insert  

(a) Notwithstanding any other law, the prior year
35average daily attendance for a school district determined pursuant
36to subdivision (a) of Section 42238.051 shall be increased by the
37prior year second principal apportionment average daily
38attendance of a school district only for a school that meets the
39following description:

P159  1(1) The school was a district noncharter school in any year
2before the prior year.

3(2) The school was operated as a district-approved charter
4school in the prior year.

5(3) The school is again operated as a district noncharter school
6in the current year.

7(b) An adjustment to prior year average daily attendance
8pursuant to this section may not be made for the attendance of
9pupils who were not residents of the school district in the prior
10year.

end insert
11begin insert

begin insertSEC. 139.end insert  

end insert

begin insertSection 42238.053 is added to the end insertbegin insertEducation Codeend insertbegin insert,
12to read:end insert

begin insert
13

begin insert42238.053.end insert  

(a) The fiscal year average daily attendance
14computed under Section 42238.05 shall be increased, for each
15school district that operates a school that meets the eligibility
16requirements set forth in subdivision (b), by the number of days
17of attendance of pupils enrolled in eligible schools in the school
18district who are currently migratory children, as defined by Section
1954441, and who are residing in state-operated migrant housing
20projects between the second principal apportionment and the end
21of the regular school year, divided by the number of days school
22was actually taught in the regular day schools of the district,
23excluding Saturdays and Sundays.

24(b) For a school district to be eligible for purposes of this
25section, the following conditions shall apply:

26(1) One or more state-operated migrant housing projects are
27located within the attendance area of the school.

28(2) The maximum number of pupils enrolled in the school in the
29relevant fiscal year who are currently migratory children, as
30calculated under subdivision (a), constitutes not less than one-third
31of the total pupil enrollment of the school.

32(c) The Superintendent shall establish rules and regulations for
33the implementation of this section.

end insert
34begin insert

begin insertSEC. 140.end insert  

end insert

begin insertSection 42238.1 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
35

42238.1.  

(a) For the 1986-87 fiscal year and each fiscal year
36up to and including the 1998-99 fiscal year, the Superintendent
37of Public Instruction shall compute an inflation adjustment equal
38to the product of paragraphs (1) and (2):

39(1) Compute the sum of the following:

P160  1(A) The statewide average base revenue limit per unit of average
2daily attendance for the prior fiscal year for districts of similar
3type.

4(B) The amount, if any, per unit of average daily attendance
5received by the district pursuant to Article 8 (commencing with
6Section 46200) of Chapter 2 of Part 26 for the prior fiscal year.

7(2) The percentage change in the annual average value of the
8Implicit Price Deflator for State and Local Government Purchases
9of Goods and Services for the United States, as published by the
10United States Department of Commerce for the 12-month period
11ending in the third quarter of the prior fiscal year. This percentage
12change shall be determined using the latest data available as of
13May 1 of the preceding fiscal year compared with the annual
14average value of the same deflator for the 12-month period ending
15in the third quarter of the second preceding fiscal year, using the
16latest data available as of May 1 of the second preceding fiscal
17year, as reported by the Department of Finance.

18(b) For the 1999-2000 fiscal year and each fiscal year thereafter,
19the Superintendent of Public Instruction shall compute an inflation
20adjustment equal to the product of paragraphs (1) and (2):

21(1) Compute the sum of the following:

22(A) The statewide average base revenue limit per unit of average
23daily attendance for the prior fiscal year for districts of similar
24type.

25(B) The amount, if any, per unit of average daily attendance
26received by the district pursuant to Article 8 (commencing with
27Section 46200) of Chapter 2 of Part 26 for the prior fiscal year.

28(2) The percentage change in the annual average value of the
29Implicit Price Deflator for State and Local Government Purchases
30of Goods and Services for the United States, as published by the
31United States Department of Commerce for the 12-month period
32ending in the third quarter of the prior fiscal year. This percentage
33change shall be determined using the latest data available as of
34May 10 of the preceding fiscal year compared with the annual
35average value of the same deflator for the 12-month period ending
36in the third quarter of the second preceding fiscal year, using the
37latest data available as of May 10 of the preceding fiscal year, as
38report by the Department of Finance.

39(c) This section shall become operative July 1, 1986.

end delete
40begin insert

begin insertSEC. 141.end insert  

end insert

begin insertSection 42238.2 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
P161  1

42238.2.  

(a) (1) Notwithstanding Section 42238.5 or any other
2provision of law, a school district that meets any of the following
3conditions shall be entitled to an adjustment to its units of average
4daily attendance pursuant to this section:

5(A) The school district experiences a decline in the number of
6units of average daily attendance in excess of 8 percent of its total
7average daily attendance as a result of the closure of a facility
8operated by a branch of the United States Armed Forces in the
9school district’s boundaries.

10(B) The school district experiences a decline in the number of
11units of average daily attendance that is less than 8 percent but at
12least 5 percent of its total average daily attendance as a result of
13the closure of a facility operated by a branch of the United States
14Armed Forces in that school district’s boundaries, upon a finding
15by both the Superintendent of Public Instruction and the Director
16of Finance that both of the following conditions exist:

17(i) The school district demonstrates that at the end of a three-year
18period the school district will experience a 10-percent reduction
19in the amount of funding that the school district would otherwise
20have received from state apportionments, funding received pursuant
21to the California State Lottery Act of 1984 (Chapter 12.5
22(commencing with Section 8880) of Division 1 of Title 2 of the
23Government Code), and funding received pursuant to Title VIII
24of Public Law 103-382, as a result of the loss of pupils related to
25the closure of a facility operated by a branch of the United States
26Armed Forces.

27(ii) The fiscal crisis and management assistance team established
28pursuant to Section 42127.8 has reviewed the school district’s
29finances and has found that the school district has taken significant
30steps to reduce expenditure.

31(C) The school district experiences a decline in the number of
32units of average daily attendance in excess of 5 percent of its total
33average daily attendance and the Director of Finance determines
34that the school district is likely, within eight years of that decline,
35to maintain a number of units of average daily attendance that is
36equivalent to the number of units of average daily attendance
37maintained by the school district prior to the decline.
38Notwithstanding subdivision (b), loan repayments shall commence
39no later than the fourth year after the base year or at a later time,
40as determined by the Director of Finance.

P162  1(2) For purposes of this section, the year preceding a decline
2shall be the base year.

3(b) In the second year after the base year, the district average
4daily attendance pursuant to Section 42238.5 may, if the district
5chooses, be increased by 75 percent of the difference between the
6base year units of average daily attendance and the units of average
7daily attendance in the first year of decline. In the third year after
8the base year, the district average daily attendance pursuant to
9Section 42238.5 may, if the district chooses, be increased by 50
10percent of the difference between the base year units of average
11daily attendance and the units of average daily attendance in the
12first year of decline. The amount of money represented by these
13increases shall be considered a loan to the school district. Loan
14repayments shall commence no later than the fourth year after the
15base year.

16(c) (1) The Superintendent of Public Instruction, in consultation
17with a school district subject to this section, shall determine a
18schedule for repayment of the total amount loaned pursuant to this
19section which may not exceed 10 years. Payments shall include
20interest charged at a rate based on the most current investment rate
21of the Pooled Money Investment Account in the General Fund as
22of the date of the disbursement of funds to the school district.

23(2) Upon written notification by the Superintendent of Public
24Instruction that the school district has not made one or more of the
25payments required by the schedule established pursuant to
26paragraph (1), the Controller shall withhold from Section A of the
27State School Fund the defaulted payment which shall not exceed
28the amount of any apportionment entitlement of the district to
29moneys in Section A of the State School Fund. In that regard, the
30Controller shall withhold the amount of any payment made under
31this subdivision, including reimbursement of the Controller’s
32administrative costs as determined under a schedule approved by
33the California Debt Advisory Commission, from subsequent
34apportionments to the school district from Section A of the State
35School Fund.

36(3) Any apportionments made by the Controller pursuant to
37paragraph (2) shall be deemed to be an allocation to the school
38district for purposes of subdivision (b) of Section 8 of Article XVI
39of the California Constitution, and for purposes of Chapter 2
40(commencing with Section 41200) of Part 24.

P163  1(d) In no event shall the adjustment provided by this section
2cause the apportionment to a school district to exceed the amount
3that would otherwise be calculated for apportionment to the district
4pursuant to Sections 42238 and 42238.1.

5(e) This section does not apply to a school district that
6experiences a decline in enrollment as a result of a school district
7reorganization pursuant to Chapter 3 (commencing with Section
835500) of Part 21 or any other law.

end delete
9begin insert

begin insertSEC. 142.end insert  

end insert

begin insertSection 42238.3 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
10

42238.3.  

(a) For each year during the loan repayment period
11provided for in Section 42238.2, any district utilizing the
12adjustment pursuant to Section 42238.2 may adjust its revenue
13limit computed pursuant to Section 42238 to the statewide average
14revenue limit per unit of average daily attendance for its size and
15type of district in proportion to the percentage of the loan that the
16school district has repaid up to and including the year in which the
17revenue limit adjustment is made.

18(b) This section does not apply to a school district that
19experiences a decline in enrollment as a result of a school district
20reorganization pursuant to Chapter 3 (commencing with Section
2135500) of Part 21 or any other law.

end delete
22begin insert

begin insertSEC. 143.end insert  

end insert

begin insertSection 42238.4 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
23

42238.4.  

(a) For the 1995-96 fiscal year, the county
24superintendent of schools shall compute an equalization adjustment
25for each school district in the county, so that no district’s base
26revenue limit per unit of average daily attendance is less than the
27prior fiscal year statewide average base revenue limit for the
28appropriate size and type of district listed in subdivision (b) plus
29the inflation adjustment specified in Section 42238.1 for the current
30fiscal year for the appropriate type of district.

31For purposes of this section, the district base revenue limit and
32the statewide average base revenue limit shall not include any
33amounts attributable to Section 45023.4, 46200, or 46201.

34(b) Subdivision (a) shall apply to the following school districts,
35which shall be grouped according to size and type as follows:


36

 

 District

ADA   

Elementary   

less than 101

Elementary   

more than 100

High School   

less than 301

High School   

more than 300

Unified   

less than 1,501

Unified   

more than 1,500

P164  4

 

5(c) The Superintendent shall compute a revenue limit
6equalization adjustment for each school district’s base revenue
7limit per unit of average daily attendance as follows:

8(1) Add the products of the amount computed for each school
9district by the county superintendent pursuant to subdivision (a)
10and the average daily attendance used to calculate the district’s
11revenue limit for the current fiscal year as adjusted for the deficit
12factor in Section 42238.145.

13(2) Divide the amount appropriated for purposes of this section
14for the current fiscal year by the amount computed pursuant to
15paragraph (1).

16(3) Multiply the amount computed for the school district
17pursuant to subdivision (a) by the amount computed pursuant to
18paragraph (2).

19(d) For the purposes of this section, the 1994-95 statewide
20average base revenue limits determined for the purposes of
21subdivision (a) and the fraction computed pursuant to paragraph
22(2) of subdivision (c) by the Superintendent for the 1995-96 second
23principal apportionment shall be final, and shall not be calculated
24as subsequent apportionments. In no event shall the fraction
25computed pursuant to paragraph (2) of subdivision (c) exceed 1.00.
26For the purposes of determining the size of a district used in
27subdivision (b), the Superintendent shall use a school district’s
28revenue limit average daily attendance for the 1994-95 fiscal year
29determined pursuant to Section 42238.5 and Article 4 (commencing
30with Section 42280).

31(e) This section shall only be operative if the Director of Finance
32certifies that a settlement agreement in California Teachers
33Association v. Gould (Sacramento County Superior Court Case
34CV 373415) is effective. No funds shall be disbursed under this
35section for this purpose before August 1, 1996, and any
36apportionment or allocation of funds appropriated for purposes of
37this section shall be accounted for in the 1995-96 fiscal year.

38(f) Appropriations for the 1995-96 fiscal year as a result of the
39implementation of this section shall be deemed “General Fund
40revenues appropriated for school districts,” as defined in
P165  1subdivision (c) of Section 41202, for the 1995-96 fiscal year and
2“total allocations to school districts and community college districts
3from General Fund proceeds of taxes appropriated to Article
4XIII B,” as defined in subdivision (e) of Section 41202, for that
5fiscal year, for purposes of Section 8 of Article XVI of the
6California Constitution.

end delete
7begin insert

begin insertSEC. 144.end insert  

end insert

begin insertSection 42238.41 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
8

42238.41.  

(a) For the 1996-97 fiscal year, the county
9superintendent of schools, in conjunction with the Superintendent
10of Public Instruction, shall compute an equalization adjustment
11for each school district in the county, so that no district’s 1995-96
12base revenue limit per unit of average daily attendance is less than
13the 1995-96 fiscal year statewide average base revenue limit for
14the appropriate size and type of district listed in subdivision (b).

15For purposes of this section, the district base revenue limit and
16the statewide average base revenue limit shall not include any
17amounts attributable to Section 45023.4, 46200, or 46201.

18(b) Subdivision (a) shall apply to the following school districts,
19which shall be grouped according to size and type as follows:


20

 

 District

ADA 

Elementary   

less than 101

Elementary    

more than 100

High School   

less than 301

High School   

more than 300

Unified   

less than 1,501

Unified   

more than 1,500

P165 28

 

29(c) The Superintendent of Public Instruction shall compute a
30revenue limit equalization adjustment for each school district’s
31base revenue limit per unit of average daily attendance as follows:

32(1) Add the products of the amount computed for each school
33district by the county superintendent pursuant to subdivision (a)
34and the average daily attendance used to calculate the district’s
35revenue limit for the current fiscal year as adjusted for the deficit
36factor in Section 42238.145.

37(2) Divide the amount appropriated for purposes of this section
38for the current fiscal year by the amount computed pursuant to
39paragraph (1).

P166  1(3) Multiply the amount computed for the school district
2pursuant to subdivision (a) by the amount computed pursuant to
3paragraph (2).

4(d) For the purposes of this section, the 1995-96 statewide
5average base revenue limits determined for the purposes of
6subdivision (a) and the fraction computed pursuant to paragraph
7(2) of subdivision (c) by the Superintendent of Public Instruction
8for the 1995-96 second principal apportionment shall be final, and
9shall not be recalculated at subsequent apportionments. In no event
10shall the fraction computed pursuant to paragraph (2) of subdivision
11(c) exceed 1.00. For the purposes of determining the size of a
12district used in subdivision (b), county superintendents of schools,
13in conjunction with the Superintendent of Public Instruction, shall
14use a school district’s revenue limit average daily attendance for
15the 1995-96 fiscal year as determined pursuant to Section 42238.5
16and Article 4 (commencing with Section 42280).

end delete
17begin insert

begin insertSEC. 145.end insert  

end insert

begin insertSection 42238.42 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
18

42238.42.  

(a) In the event that the amount required to be
19appropriated for the purpose of the state’s minimum funding
20obligation to school districts and community college districts
21pursuant to Section 8 of Article XVI of the California Constitution
22for the 1996-97 fiscal year, as determined in paragraph (1) of
23subdivision (b), exceeds the amount appropriated for that purpose
24for the 1996-97 fiscal year, as determined pursuant to paragraph
25(2) of subdivision (b), the amount computed pursuant to subdivision
26(d), is hereby appropriated from the General Fund to the
27Superintendent of Public Instruction for the purposes of equalizing
28the revenue limits of school districts pursuant to subdivision (e)
29and Section 42238.43 and for the purpose of reducing the deficit
30factor applied to the revenue limits of county superintendents of
31schools pursuant to Section 2558.45 and reducing the deficit factor
32applied to the revenue limits of the school districts pursuant to
33Section 42238.145.

34(b) To determine the amounts available for the purposes of this
35section, the Department of Finance shall make the following
36computations:

37(1) At the first principal apportionment for the 1997-98 fiscal
38year, compute the level of General Fund revenues that meets the
39state’s minimum funding obligation to school districts and
40community college districts pursuant to Section 8 of Article XVI
P167  1of the California Constitution for the 1996-97 fiscal year based
2upon the most current determination of data as defined in
3subdivision (a) of Section 41206 of the Education Code.

4(2) Subtract from the amount determined in paragraph (1) an
5amount equal to the total amount of General Fund revenues that
6have been appropriated for the purpose of meeting the state’s
7minimum funding obligation for the 1996-97 fiscal year to school
8districts and community college districts pursuant to Section 8 of
9Article XVI of the California Constitution as of February 1, 1998.

10(3) If the amount computed in paragraph (2) is greater than zero,
11that amount is the total amount available for the purposes of this
12section.

13(c) To determine the portion of the amount computed in
14subdivision (a) to set aside for community college districts pursuant
15to this section, the Department of Finance shall make the following
16 computations:

17(1) Add the total General Fund allocations to school districts
18and community college districts for the purposes of meeting the
19state’s minimum funding obligation to school districts and
20community college districts pursuant to Section 8 of Article XVI
21of the California Constitution for the 1996-97 fiscal year to the
22total statewide amount of “allocated local proceeds of taxes,” as
23defined in subdivisions (g) and (h) of Section 41202, allocated to
24school districts and community college districts for the 1996-97
25fiscal year.

26(2) Divide the sum of the General Fund allocations made to
27community college districts for the purposes of meeting the state’s
28minimum funding obligation to community college districts
29pursuant to Section 8 of Article XVI of the California Constitution
30for the 1996-97 fiscal year and the total statewide amount of
31“allocated local proceeds of taxes,” as defined in subdivision (h)
32of Section 41202, allocated to community college districts for the
331996-97 fiscal year by the sum computed pursuant to paragraph
34(1).

35(3) Multiply the amount computed pursuant to subdivision (b)
36by the percentage determined in paragraph (2). Community college
37districts shall be entitled to receive an amount equal to the amount
38computed pursuant to this paragraph and that amount shall be set
39aside from the General Fund for appropriation to community
40college districts by the Legislature.

P168  1(d) The amount of the appropriation made pursuant to
2subdivision (a) of this section shall be computed by subtracting
3the amount computed in paragraph (3) of subdivision (c) from the
4amount computed pursuant to subdivision (b). The Director of the
5Department of Finance shall certify to the Controller the amount
6of the appropriation computed pursuant to this subdivision and
7under no circumstances shall funds be released by the Controller
8for purposes of this section before that certification is received by
9the Controller.

10(e) The Superintendent of Public Instruction shall allocate 50
11percent of the amount computed pursuant to subdivision (d) to
12school districts for the purpose of making equalization adjustments
13to the base revenue limit of school districts for the 1996-97 fiscal
14year, as follows:

15(1) The Superintendent of Public Instruction shall perform the
16computations set forth in Section 42238.43 for the purpose of
17equalization adjustments to the base revenue limits of school
18districts for the 1996-97 fiscal year to determine the amount to
19allocate to each school district pursuant to this paragraph.

20(2) The Superintendent of Public Instruction shall repeat the
21process of computing equalization adjustments to the base revenue
22limits of school districts for the 1996-97 fiscal year pursuant to
23Section 42238.43 until the total amount of funds available for that
24purpose pursuant to this subdivision is allocated to school districts.

25(3) If the total amount of funds available for allocation pursuant
26to this subdivision is insufficient to fully fund the amounts
27computed pursuant to paragraph (1) or the amount computed
28pursuant to any of the iterations made pursuant to paragraph (2),
29the allocations computed pursuant to those paragraphs shall be
30reduced proportionately.

31(f) The Superintendent of Public Instruction shall allocate 50
32percent of the amount computed pursuant to subdivision (d) to
33county superintendents of schools for the purpose of reducing the
341996-97 and 1997-98 deficit factors applied to the revenue limits
35of county superintendent of schools and school districts pursuant
36to Sections 2558.45 and 42238.145, respectively. The amount of
37the allocation made to each school district and county
38superintendent of schools for the purpose of reducing their
39respective deficit factors shall be computed in proportion to their
40respective shares of the total statewide amount of the revenue
P169  1limits after adjustment for deficit factors for school districts and
2county superintendents of schools.

3(g) In no event shall this section be construed to require an
4appropriation that would cause the aggregate amount required to
5be appropriated from the General Fund for the 1996-97 fiscal year
6pursuant to Section 8 of Article XVI of the California Constitution
7to be exceeded.

end delete
8begin insert

begin insertSEC. 146.end insert  

end insert

begin insertSection 42238.43 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
9

42238.43.  

(a) (1) For the 1996-97 fiscal year, the county
10superintendent of schools, in conjunction with the Superintendent
11of Public Instruction, shall compute an equalization adjustment
12for each school district in the county, so that no district’s base
13revenue limit per unit of average daily attendance is less than the
141996-97 fiscal year statewide average base revenue limit for the
15appropriate size and type of district listed in subdivision (b).

16(2) For purposes of this section, the district base revenue limit
17and the statewide average base revenue limit shall not include any
18amounts attributable to Section 45023.4, 46200, or 46201.

19(b) Subdivision (a) shall apply to the following school districts,
20which shall be grouped according to size and type as follows:


21

 

 District

 

ADA 

Elementary   

 

less than 101

Elementary   

 

more than 100

High School   

 

less than 301

High School   

 

more than 300

Unified   

 

less than 1,501

Unified   

 

more than 1,500

P169 29

 

30(c) The equalization adjustment computed pursuant to this
31section shall only be funded from amounts appropriated for that
32purpose pursuant to Section 42238.42.

33(d) (1) For the purposes of the computation made pursuant to
34paragraph (1) of subdivision (e) of Section 42238.42, the 1996-97
35statewide average base revenue limits determined for the purposes
36of subdivision (a) and the fraction, if any, computed pursuant to
37paragraph (3) of subdivision (e) of Section 42238.42 by the
38Superintendent of Public Instruction for the 1996-97 second
39principal apportionment shall be final, and shall not be calculated
40as subsequent apportionments. In no event shall the fraction
P170  1computed pursuant to paragraph (3) of subdivision (e) of Section
242238.42 exceed 1.00. If any iterations are required pursuant to
3paragraph (2) of Section 42238.42, the Superintendent of Public
4Instruction shall recompute the 1996-97 statewide average base
5revenue limit to include any adjustments made by the immediately
6preceding iteration.

7(2) (A) For the purposes of determining the size of a school
8district under subdivision (b), the Superintendent of Public
9Instruction shall use a school district’s revenue limit average daily
10attendance for the 1996-97 fiscal year as determined pursuant to
11Section 42238.5 and Article 4 (commencing with Section 42280).

12(B) Notwithstanding subparagraph (A), for the purposes of
13determining the size of a school district under subdivision (b) with
14respect to any elementary, high, or unified school district that was
15funded in the 1996-97 school year as a large elementary, high, or
16unified school district, as determined pursuant to subdivision (a)
17of Section 42238.5, the school district’s actual revenue limit
18average daily attendance for the 1996-97 school year may be used.
19The actual revenue limit average daily attendance for the 1996-97
20school year shall be used to calculate the 1996-97 revenue limit
21of a school district exercising the authority granted under this
22subparagraph. The governing board of a school district to which
23this subparagraph is applicable may exercise the authority granted
24under this subparagraph by enacting a resolution to that effect and
25transmitting a copy of that resolution to the Superintendent of
26Public Instruction on or before a date designated by the
27Superintendent of Public Instruction for that school year. After the
28Superintendent of Public Instruction receives the resolution, the
29superintendent shall make the necessary adjustments to the school
30 district’s revenue limit calculation.

end delete
31begin insert

begin insertSEC. 147.end insert  

end insert

begin insertSection 42238.44 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
32

42238.44.  

(a) This section shall be known and may be cited
33as, the Fairness in Education Funding Act.

34(b) (1) For the 2004-05 fiscal year, the Superintendent of Public
35Instruction shall compute an equalization adjustment for each
36school district, so that the 2003-04 base revenue limit per unit of
37average daily attendance of a district is not less than the 2003-04
38base revenue limit per unit of average daily attendance above which
39fall not more than 10 percent of the total statewide units of average
P171  1daily attendance for each category of school district set forth in
2subdivision (c).

3(2) For purposes of this section, the district base revenue limit
4and the statewide average base revenue limit shall not include any
5amounts attributable to Section 45023.4, 46200, or 46201.

6(c) Subdivision (b) shall apply to the following school districts,
7which shall be grouped according to size and type as follows:


8

 

 District

ADA   

Elementary   

less than 101

Elementary   

more than 100

High School   

less than 301

High School   

more than 300

Unified   

less than 1,501

Unified   

more than 1,500

P171 16

 

17(d) The Superintendent of Public Instruction shall compute a
18revenue limit equalization adjustment for each school district’s
19base revenue limit per unit of average daily attendance as follows:

20(1) Multiply the amount computed for each school district
21pursuant to subdivision (b) by the average daily attendance used
22to calculate the revenue limit for the 2004-05 fiscal year of a
23district.

24(2) Divide the amount appropriated for purposes of this section
25for the 2004-05 fiscal year by the statewide sum of the amount
26computed pursuant to paragraph (1).

27(3) Multiply the amount computed for the school district
28pursuant to paragraph (1) of subdivision (b) by the amount
29computed pursuant to paragraph (2).

30(e) (1) For the purposes of this section, the 2003-04 statewide
3190th percentile base revenue limit determined pursuant to paragraph
32(1) of subdivision (b), and the fraction computed pursuant to
33paragraph (2) of subdivision (d) for the 2003-04 second principal
34apportionment, shall be final, and shall not be recalculated at
35subsequent apportionments. The fraction computed pursuant to
36paragraph (2) of subdivision (d) shall not, under any circumstances,
37exceed 1.00. For purposes of determining the size of a school
38district pursuant to subdivision (c), county superintendents of
39schools, in conjunction with the Superintendent of Public
40Instruction, shall use school district revenue limit average daily
P172  1attendance for the 2003-04 fiscal year as determined pursuant to
2Section 42238.5 and Article 4 (commencing with Section 42280).

3(2) For the purposes of calculating the size of a school district
4pursuant to subdivision (c), the Superintendent of Public Instruction
5shall include units of average daily attendance of any charter school
6for which the school district is the chartering agency.

7(3) For the purposes of computing the target amounts pursuant
8to subdivision (b), the Superintendent of Public Instruction shall
9count all charter school average daily attendance toward the
10average daily attendance of the school district that is the chartering
11agency.

end delete
12begin insert

begin insertSEC. 148.end insert  

end insert

begin insertSection 42238.445 of the end insertbegin insertEducation Codeend insertbegin insert is
13repealed.end insert

begin delete
14

42238.445.  

(a) (1) For the 2002-03 fiscal year, the
15Superintendent of Public Instruction shall compute an equalization
16adjustment for each school district by determining the amount that
17would be necessary to assure that no district’s 2001-02 base
18revenue limit per unit of average daily attendance is less than the
192001-02 base revenue limit per unit of average daily attendance
20above which fall not more than 10 percent of the total statewide
21units of average daily attendance for each category of school
22district set forth in subdivision (b).

23(2) For purposes of this section, the district base revenue limit
24and the statewide average base revenue limit shall not include any
25amounts attributable to Section 45023.4, 46200, or 46201.

26(b) Subdivision (a) shall apply to the following school districts,
27which shall be grouped according to size and type as follows:


28

 

 District

ADA   

Elementary   

less than 101

Elementary   

more than 100

High School   

less than 301

High School   

more than 300

Unified   

less than 1,501

Unified   

more than 1,500

P172 36

 

37(c) The Superintendent of Public Instruction shall determine
38and allocate, on a one-time basis, an amount for each school district
39as follows:

P173  1(1) Multiply the amount computed for each school district
2pursuant to subdivision (a) by the average daily attendance used
3to calculate the district’s revenue limit for the 2002-03 fiscal year.

4(2) Divide forty-two million dollars ($42,000,000) appropriated
5pursuant to Provision 2 of Item 6110-223-0001 of Section 2.00 of
6the Budget Act of 2002 by the statewide sum of the amount
7computed pursuant to paragraph (1).

8(3) Multiply the amount computed for the school district
9pursuant to paragraph (1) by the amount computed pursuant to
10paragraph (2).

11(d) (1) For the purposes of this section, the 2001-02 statewide
1290th percentile base revenue limit determined pursuant to paragraph
13(1) of subdivision (a), and the fraction computed pursuant to
14paragraph (2) of subdivision (c) for the 2001-02 second principal
15apportionment, shall be final, and shall not be recalculated at
16subsequent apportionments. The fraction computed pursuant to
17paragraph (2) of subdivision (c) shall not, under any circumstances,
18exceed 1.00. For purposes of determining the size of a school
19district pursuant to subdivision (b), county superintendents of
20schools, in conjunction with the Superintendent of Public
21Instruction, shall use school district revenue limit average daily
22attendance for the 2001-02 fiscal year as determined pursuant to
23Section 42238.5 and Article 4 (commencing with Section 42280).

24(2) For the purposes of calculating the size of a school district
25pursuant to subdivision (b), the Superintendent of Public Instruction
26shall include units of average daily attendance of any charter school
27for which the school district is the chartering agency.

28(3) For the purposes of computing the target amounts pursuant
29to subdivision (a), the Superintendent of Public Instruction shall
30count all charter school average daily attendance toward the
31average daily attendance of the school district that is the chartering
32agency.

33(e) Allocations pursuant to this section do not represent
34adjustments to school district base revenue limits.

end delete
35begin insert

begin insertSEC. 149.end insert  

end insert

begin insertSection 42238.45 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
36

42238.45.  

(a) (1) For the 2001-02 fiscal year, the
37Superintendent of Public Instruction shall compute an adjustment
38for each school district, so that no district’s 2000-01 base revenue
39limit per unit of average daily attendance is less than the 2000-01
40base revenue limit per unit of average daily attendance above which
P174  1fall not more than 10 percent of the total statewide units of average
2daily attendance for each category of school district set forth in
3subdivision (b).

4(2) For purposes of this section, the district base revenue limit
5and the statewide average base revenue limit shall not include any
6amounts attributable to Section 45023.4, 46200, or 46201.

7(b) Subdivision (a) shall apply to the following school districts,
8which shall be grouped according to size and type as follows:


9

 

 District

ADA   

Elementary   

less than 101

Elementary   

more than 100

High School   

less than 301

High School   

more than 300

Unified   

less than 1,501

Unified   

more than 1,500

P174 17

 

18(c) For the 2001-02 fiscal year, the Superintendent of Public
19Instruction shall determine and allocate on a one-time basis for
20each school district amounts as follows:

21(1) Multiply the amount computed for each school district
22pursuant to subdivision (a) by the average daily attendance used
23to calculate the district’s revenue limit for the 2001-02 fiscal year.

24(2) Divide forty million dollars ($40,000,000) appropriated for
25purposes of this section for the 2001-02 fiscal year by the statewide
26sum of the amount computed pursuant to paragraph (1).

27(3) Multiply the amount computed for the school district
28pursuant to paragraph (1) of subdivision (a) by the amount
29computed pursuant to paragraph (2).

30(d) (1) For the purposes of calculating the size of a school
31district pursuant to subdivision (b), the Superintendent of Public
32Instruction shall include units of average daily attendance of any
33charter school for which the school district is the chartering agency.

34(2) For the purposes of computing the target amounts pursuant
35to subdivision (a), the Superintendent of Public Instruction shall
36count all charter school average daily attendance toward the
37average daily attendance of the school district that is the chartering
38agency.

39(e) Allocations for purposes of this section do not represent
40adjustments to school district base revenue limits.

end delete
P175  1begin insert

begin insertSEC. 150.end insert  

end insert

begin insertSection 42238.46 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
2

42238.46.  

(a) For the 2003-04 fiscal year, the Superintendent
3of Public Instruction shall compute an equalization adjustment for
4each school district so that no district’s 2002-03 adjusted base
5revenue limit per unit of average daily attendance is less than the
62002-03 fiscal year adjusted base revenue limit above which fall
7not more that 8.25 percent of the total statewide units of average
8daily attendance for the appropriate size and type of district listed
9in subdivision (b).

10For purposes of this section, the district adjusted base revenue
11limit and the statewide average adjusted base revenue limit may
12not include any amounts attributable to Section 45023.4, 46200,
13or 46201.

14(b) Subdivision (a) applies to the following school districts,
15which shall be grouped according to size and type as follows:


16

 

 District

ADA   

Elementary   

less than 101

Elementary   

more than 100

High School   

less than 301

High School   

more than 300

Unified   

less than 1,501

Unified   

more than 1,500

P175 24

 

25(c) The Superintendent of Public Instruction shall compute a
26revenue limit equalization adjustment for each school district’s
27adjusted base revenue limit per unit of average daily attendance
28as follows:

29(1) Add the products of the amount computed for each school
30district by the county superintendent pursuant to subdivision (a)
31and the average daily attendance used to calculate the district’s
32revenue limit for the current fiscal year.

33(2) Divide the amount appropriated for purposes of this section
34for the current fiscal year by the amount computed pursuant to
35paragraph (1).

36(3) Multiply the amount computed for the school district
37pursuant to subdivision (a) by the amount computed pursuant to
38paragraph (2).

39(d) (1) For purposes of this section only, prior to computing
40the equalization adjustment pursuant to this section, the
P176  1Superintendent of Public Instruction shall calculate an adjusted
2base revenue limit for each district by revising the 2002-03 base
3revenue limit of the district to eliminate that portion of the one-time
4adjustment to its base revenue limit related to excused absences
5made pursuant to Section 42238.8.

6(2) For the purposes of this section, the 2002-03 statewide
7average adjusted base revenue limits determined for the purposes
8of subdivision (a) and the fraction computed pursuant to paragraph
9(2) of subdivision (c) by the Superintendent of Public Instruction
10for the 2002-03 second principal apportionment shall be final, and
11shall not be recalculated at subsequent apportionments. In no event
12shall the fraction computed pursuant to paragraph (2) of subdivision
13(c) exceed 1.00. For the purposes of determining the size of a
14district used in subdivision (b), county superintendents of schools,
15in conjunction with the Superintendent of Public Instruction, shall
16use a school district’s revenue limit average daily attendance for
17the 2002-03 fiscal year as determined pursuant to Section 42238.5
18and Article 4 (commencing with Section 42280).

19(3) For the purposes of calculating the size of a school district
20pursuant to subdivision (b), the Superintendent of Public Instruction
21shall include units of average daily attendance of any charter school
22for which the school district is the chartering agency.

23(4) For the purposes of computing the target amounts pursuant
24to subdivision (a), the Superintendent of Public Instruction shall
25count all charter school average daily attendance towards the
26average daily attendance of the school district that is the chartering
27agency.

end delete
28begin insert

begin insertSEC. 151.end insert  

end insert

begin insertSection 42238.48 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
29

42238.48.  

(a) (1) For the 2006-07 fiscal year, the
30Superintendent shall compute an equalization adjustment for each
31school district, so that the 2005-06 base revenue limit per unit
32average daily attendance of a school district is not less than the
332005-06 base revenue limit per unit of average daily attendance
34above which fall not more than 10 percent of the total statewide
35units of average daily attendance for each category of school
36district set forth in subdivision (b).

37(2) For purposes of this section, the base revenue limit shall not
38include any amounts attributable to Section 45023.4, 46200, or
3946201.

P177  1(b) Subdivision (a) shall apply to the following school districts,
2which shall be grouped according to size and type as follows:


3

 

 District

ADA   

Elementary   

less than 101

Elementary   

more than 100

High School   

less than 301

High School   

more than 300

Unified   

less than 1,501

Unified   

more than 1,500

P177 11

 

12(c) The Superintendent shall compute a revenue limit
13equalization adjustment for each school district’s base revenue
14limit per unit of average daily attendance as follows:

15(1) Multiply the amount computed for each school district
16pursuant to subdivision (a) by the average daily attendance used
17to calculate the revenue limit for the 2006-07 fiscal year of a school
18district.

19(2) Divide the amount appropriated for purposes of this section
20for the 2006-07 fiscal year by the statewide sum of the amount
21computed pursuant to paragraph (1).

22(3) Multiply the amount computed for the school district
23pursuant to paragraph (1) of subdivision (a) by the amount
24computed pursuant to paragraph (2).

25(d) (1) For the purposes of this section, the 2005-06 statewide
2690th percentile base revenue limit determined pursuant to paragraph
27(1) of subdivision (a), and the fraction computed pursuant to
28paragraph (2) of subdivision (c) for the 2005-06 second principal
29apportionment, shall be final, and shall not be recalculated at
30 subsequent apportionments. The fraction computed pursuant to
31paragraph (2) of subdivision (c) shall not exceed 1.00. For purposes
32of determining the size of a school district pursuant to subdivision
33(b), county superintendents of schools, in conjunction with the
34Superintendent, shall use school district revenue limit average
35daily attendance for the 2005-06 fiscal year as determined pursuant
36to Section 42238.5 and Article 4 (commencing with Section
3742280).

38(2) For the purposes of calculating the size of a school district
39pursuant to subdivision (b), the Superintendent shall include units
P178  1of average daily attendance of any charter school for which the
2school district is the sponsoring local educational agency.

3(3) For the purposes of computing the target amounts pursuant
4to subdivision (a), the Superintendent shall count all charter school
5average daily attendance toward the average daily attendance of
6the school district that is the sponsoring local educational agency.

end delete
7begin insert

begin insertSEC. 152.end insert  

end insert

begin insertSection 42238.485 of the end insertbegin insertEducation Codeend insertbegin insert is
8repealed.end insert

begin delete
9

42238.485.  

(a) For the 2010-11 fiscal year, the Superintendent
10shall compute an adjustment for each school district by dividing
11each school district’s 2007-08 fiscal year average daily attendance
12into the sum of the following:

13(1) Funding for Meals for Needy Pupils programs received by
14the school district for the 2007-08 fiscal year pursuant to Section
1542241.2, as it read on January 1, 2009.

16(2) Funding incentives to increase beginning teachers’ salaries
17received by the school district for the 2007-08 fiscal year pursuant
18to Sections 45023.1 and 45023.4, as those sections read on January
191, 2009.

20(b) For purposes of this section, average daily attendance shall
21be computed pursuant to Section 42238.5.

22(c) Notwithstanding any other provision of this section, no
23funding specified in this section shall be added to the adjustment
24computed pursuant to subdivision (a) if that funding is currently
25included in a school district’s base revenue limit calculated
26pursuant to Section 42238.

end delete
27begin insert

begin insertSEC. 153.end insert  

end insert

begin insertSection 42238.49 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
28

42238.49.  

(a) (1) For the 2011-12 fiscal year, the
29Superintendent shall compute an equalization adjustment for each
30school district, so that the 2010-11 base revenue limit per unit of
31average daily attendance of a school district is not less than the
322010-11 base revenue limit per unit of average daily attendance
33above which fall not more than 10 percent of the total statewide
34units of average daily attendance for each category of school
35district set forth in subdivision (b).

36(2) For purposes of this section, the base revenue limit shall not
37include any amounts attributable to Section 45023.4, 46200, or
3846201.

39(b) Subdivision (a) shall apply to the following school districts,
40which shall be grouped according to size and type as follows:


P179  8

 

 District

  ADA

Elementary   

less than 101

Elementary   

more than 100

High School   

less than 301

High School   

more than 300

Unified   

less than 1,501

Unified   

more than 1,500

 

9(c) The Superintendent shall compute a revenue limit
10equalization adjustment for each school district’s base revenue
11limit per unit of average daily attendance as follows:

12(1) Multiply the amount computed for each school district
13pursuant to subdivision (a) by the average daily attendance used
14to calculate the revenue limit for the 2011-12 fiscal year of a school
15district.

16(2) Divide the amount appropriated from the Supplemental
17Education Payment Account for purposes of this section for the
182011-12 fiscal year by the statewide sum of the amounts computed
19pursuant to paragraph (1).

20(3) Multiply the amount computed for the school district
21pursuant to paragraph (1) of subdivision (a) by the amount
22computed pursuant to paragraph (2).

23(d) (1) For the purposes of this section, the 2010-11 statewide
2490th percentile base revenue limit determined pursuant to paragraph
25(1) of subdivision (a), and the fraction computed pursuant to
26paragraph (2) of subdivision (c) for the 2010-11 second principal
27apportionment, shall be final, and shall not be recalculated at
28subsequent apportionments. The fraction computed pursuant to
29paragraph (2) of subdivision (c) shall not exceed 1.00. For purposes
30of determining the size of a school district pursuant to subdivision
31(b), county superintendents of schools, in conjunction with the
32Superintendent, shall use school district revenue limit average
33daily attendance for the 2010-11 fiscal year as determined pursuant
34to Section 42238.5 and Article 4 (commencing with Section
3542280).

36(2) For the purposes of calculating the size of a school district
37pursuant to subdivision (b), the Superintendent shall include units
38of average daily attendance of any charter school for which the
39school district is the sponsoring local educational agency.

P180  1(3) For the purposes of computing the target amounts pursuant
2to subdivision (a), the Superintendent shall count all charter school
3average daily attendance toward the average daily attendance of
4the school district that is the sponsoring local educational agency.

end delete
5begin insert

begin insertSEC. 154.end insert  

end insert

begin insertSection 42238.5 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
6

42238.5.  

(a) For purposes of Section 42238, the fiscal year
7average daily attendance shall be computed pursuant to paragraph
8(1) or (2).

9(1) The second principal apportionment regular average daily
10attendance for either the current or prior fiscal year, whichever is
11greater. However, prior fiscal year average daily attendance shall
12be adjusted for any loss or gain of average daily attendance due
13to a reorganization or transfer of territory, or, commencing in the
141993-94 fiscal year, and each fiscal year thereafter, for any change
15in average daily attendance for pupils who are concurrently enrolled
16in adult programs and classes pursuant to Section 52616.17.

17(2) Any school district that elects to receive funding pursuant
18to Article 4 (commencing with Section 42280) shall compute its
19units of average daily attendance for purposes of Section 42238
20by subtracting the amount determined in subparagraph (B) from
21the amount determined in subparagraph (A).

22(A) The units of average daily attendance computed pursuant
23to paragraph (1).

24(B) The units of average daily attendance resulting from pupils
25attending schools funded pursuant to Article 4 (commencing with
26Section 42280).

27(b) For purposes of this article, regular average daily attendance
28shall be the base revenue limit average daily attendance, excluding
29summer school average daily attendance.

30(c) For purposes of this section, for the 1998-99 fiscal year
31only, the prior year average daily attendance shall be the 1997-98
32regular average daily attendance, excluding absences excused
33pursuant to subdivision (b) of Section 46010, as that subdivision
34read on July 1, 1996.

end delete
35begin insert

begin insertSEC. 155.end insert  

end insert

begin insertSection 42238.51 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
36

42238.51.  

(a) For purposes of paragraph (1) of subdivision
37(a) of Section 42238.5, a sponsoring school district’s average daily
38attendance shall be computed as follows:

P181  1(1) Compute the sponsoring school district’s regular average
2daily attendance in the current year, excluding the attendance of
3pupils in charter schools.

4(2) (A) Compute the regular average daily attendance used to
5calculate the second principal apportionment of the school district
6for the prior year, excluding the attendance of pupils in charter
7schools.

8(B) Compute the attendance of pupils who attended one or more
9noncharter schools of the school district between July 1, and the
10last day of the second period, inclusive, in the prior year, and who
11attended a charter school sponsored by the school district between
12July 1, and the last day of the second period, inclusive, in the
13current year. For the purposes of this paragraph, a pupil enrolled
14in a grade at a charter school sponsored by the school district shall
15not be counted if the school district does not offer classes for pupils
16enrolled in that grade. The amount of the attendance counted for
17any pupil for the purpose of this subparagraph may not be greater
18than the attendance claimed for that pupil by the charter school in
19the current year.

20(C) Compute the attendance of pupils who attended a charter
21school sponsored by the school district in the prior year and who
22attended one or more noncharter schools of the school district in
23the current year. The amount of the attendance counted for any
24pupil for the purpose of this subparagraph may not be greater than
25the attendance claimed for that pupil by the school district in the
26current year.

27(D) From the amount determined pursuant to subparagraph (B),
28subtract the amount determined pursuant to subparagraph (C). If
29the result is less than zero, the amount shall be deemed to be zero.

30(E) The prior year average daily attendance determined pursuant
31to subparagraph (A) shall be reduced by the amount determined
32pursuant to subparagraph (D).

33(3) To the greater of the amounts computed pursuant to
34paragraphs (1) and (2), add the regular average daily attendance
35in the current year of all pupils attending charter schools sponsored
36by the district that are not funded pursuant to Article 2
37(commencing with Section 47633) of Chapter 6 of Part 26.

38(b) For the purposes of this section, a “sponsoring school
39district” shall mean a “sponsoring local educational agency,” as
40defined in Section 47632.

P182  1(c) This section shall become operative on July 1, 2007.

end delete
2begin insert

begin insertSEC. 156.end insert  

end insert

begin insertSection 42238.52 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
3

42238.52.  

(a) Notwithstanding any other provision of law, the
4prior year average daily attendance for a school district determined
5pursuant to subdivision (b) of Section 42238.51 shall be increased
6by the prior year second principal apportionment average daily
7attendance of district residents only of any school that meets the
8following description:

9(1) The school was a district noncharter school in any year prior
10to the prior year.

11(2) The school was operated as a district-approved charter school
12in the prior year.

13(3) The school is again operated as a district noncharter school
14in the current year.

15(b) An adjustment to prior year average daily attendance
16pursuant to this section may not be made for the attendance of
17pupils who were not residents of the school district in the prior
18year.

19(c) This section applies to the 2000-01 fiscal year and
20subsequent fiscal years.

end delete
21begin insert

begin insertSEC. 157.end insert  

end insert

begin insertSection 42238.53 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
22

42238.53.  

(a) Sections 42238.51 and 42238.52 do not apply
23to resident pupils in charter schools operating under the districtwide
24charter of a district that has converted all of its schools to charter
25status pursuant to Section 47606 and has elected not to be funded
26pursuant to Article 2 (commencing with Section 47633) of Chapter
276 of Part 26.

28(b) For the purposes of this section, “resident pupils” means
29pupils who reside in, and are otherwise eligible to attend, a school
30in the specified district.

end delete
31begin insert

begin insertSEC. 158.end insert  

end insert

begin insertSection 42238.6 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
32

42238.6.  

(a) The fiscal year average daily attendance computed
33under Section 42238.5 shall be increased, for each school district
34that operates any school that meets the eligibility requirements set
35forth in subdivision (b), by the number of child days of attendance
36of pupils enrolled in eligible schools in the district who are
37currently migratory children, as defined by Section 54441, and
38who are residing in state-operated migrant housing projects
39between the second principal apportionment and the end of the
40regular school year, divided by the number of days school was
P183  1actually taught in the regular day schools of the district, excluding
2 Saturdays and Sundays.

3(b) For a school to be eligible for the purposes of this section,
4the following conditions shall apply:

5(1) One or more state-operated migrant housing projects are
6located within the attendance area of the school.

7(2) The maximum number of pupils enrolled in the school in
8the relevant fiscal year who are currently migratory children, as
9calculated under subdivision (a), constitutes not less than one-third
10of the total pupil enrollment of the school.

11(c) The Superintendent of Public Instruction shall establish rules
12and regulations for the implementation of this section.

end delete
13begin insert

begin insertSEC. 159.end insert  

end insert

begin insertSection 42238.7 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
14

42238.7.  

The governing board of each school district, as a
15condition of apportionment, shall report to the Superintendent of
16Public Instruction, not later than May 1, 1998, and September 1,
171998, respectively, the portion of the attendance in the schools and
18classes maintained by the district that was reported for each of the
191996-97 and 1997-98 school years pursuant to Section 41601 that
20consisted of absences excused pursuant to subdivision (b) of
21Section 46010 and to Section 46015, as those sections read on July
221, 1996.

end delete
23begin insert

begin insertSEC. 160.end insert  

end insert

begin insertSection 42238.75 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
24

42238.75.  

Notwithstanding any other provision of law:

25(a) All completed audits, including those on appeal, of school
26districts, charter schools, and county offices of education funded
27by Item 8860-025-0001 of Section 2.00 of Chapter 50 of the
28Statutes of 1999, Item 8860-025-0001 of Section 2.00 of Chapter
2952 of the Statutes of 2000, and Item 8860-025-0001 of Section
302.00 of Chapter 106 of the Statutes of 2001, and any findings of
31those audits, are withdrawn, and no loss of apportionment arising
32from the findings of those audits shall be realized.

33(b) All audits funded by Item 8860-025-0001 of Section 2.00
34of Chapter 50 of the Statutes of 1999, Item 8860-025-0001 of
35Section 2.00 of Chapter 52 of the Statutes of 2000, and Item
368860-025-0001 of Section 2.00 of Chapter 106 of the Statutes of
372001, shall be discontinued.

38(c) The Controller shall notify all school districts, charter
39schools, and county offices of education that it is no longer
40necessary to retain records supporting pupil attendance and excused
P184  1absences used for purposes of calculating average daily attendance
2during the 1996-97 fiscal year.

end delete
3begin insert

begin insertSEC. 161.end insert  

end insert

begin insertSection 42238.8 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
4

42238.8.  

(a) Effective July 1, 1998, the Superintendent of
5Public Instruction shall make a one-time adjustment to the revenue
6limit per unit of average daily attendance of each school district.
7This one-time adjustment shall apply for the 1998-99 fiscal year,
8and for each fiscal year thereafter, but not for any year prior to
91998-99, and shall be accomplished by revision of the prior fiscal
10year revenue limit per unit of average daily attendance, as follows:

11(1) Determine a revised revenue limit per unit of average daily
12attendance for the 1996-97 fiscal year as follows:

13(A) For each school district that had its revenue limit funding
14for the 1996-97 fiscal year calculated on the basis of its 1996-97
15average daily attendance pursuant to paragraph (1) of subdivision
16(a) of Section 42238.5, the revised revenue limit per unit of average
17daily attendance shall equal the adjusted total base revenue limit
18determined pursuant to paragraph (2) divided by the adjusted
19average daily attendance determined pursuant to subparagraph (A)
20of paragraph (3).

21(B) For each school district that had its revenue limit funding
22for the 1996-97 fiscal year calculated on the basis of its 1995-96
23average daily attendance pursuant to paragraph (1) of subdivision
24(a) of Section 42238.5, the revised revenue limit per unit of average
25daily attendance shall equal the adjusted total base revenue limit
26determined pursuant to paragraph (2) divided by the adjusted
27average daily attendance determined pursuant to subparagraphs
28(B), (C), and (D) of paragraph (3).

29(2) Determine the amount of the 1996-97 total base revenue
30limit funding received pursuant to Section 42238 for growth and
31nongrowth average daily attendance, including, as nongrowth
32average daily attendance, attendance in necessary small schools
33in the year determined to be the greater pursuant to paragraph (1)
34of subdivision (a) of Section 42238.5 for the 1996-97 fiscal year,
35but excluding attendance in nonpublic, nonsectarian schools,
36county office operated special education, and county community
37school programs.

38(3) (A) Reduce the average daily attendance figure used to
39make the determination set forth in paragraph (2) by the amount
40of average daily attendance included in that figure for excused
P185  1absences pursuant to subdivision (b) of Section 46010 as that
2subdivision read on July 1, 1996.

3(B) Determine the second principal apportionment average daily
4attendance for the 1996-97 fiscal year, including attendance in
5necessary small schools and attendance for excused absences
6pursuant to subdivision (b) of Section 46010 as it read on July 1,
71996, but excluding attendance, including attendance for excused
8absences, in nonpublic, nonsectarian schools, county-operated
9special education programs, and county community schools.

10(C) Determine the second principal apportionment average daily
11attendance for the 1996-97 fiscal year, including attendance in
12necessary small schools, but excluding attendance in nonpublic,
13nonsectarian schools, county-operated special education programs,
14and county community schools and for excused absences pursuant
15to subdivision (b) of Section 46010 as it read on July 1, 1996.

16(D) Calculate the adjusted revenue limit average daily attendance
17by multiplying the average daily attendance figure used to make
18the determination set forth in paragraph (2) by the quotient of the
19amount determined pursuant to subparagraph (C) divided by the
20amount determined pursuant to subparagraph (B).

21(4) Recalculate the 1997-98 fiscal year revenue limit per unit
22of average daily attendance to reflect the revision in the 1996-97
23revenue limit per unit of average daily attendance determined
24pursuant to paragraph (1).

25(b) The calculations made pursuant to paragraphs (1) and (4)
26of subdivision (a) shall not be used for apportionment purposes
27for either of the fiscal years referred to in those paragraphs or for
28adjustments for those years.

29(c) If the governing board of any school district demonstrates
30to the satisfaction of the Superintendent of Public Instruction that,
31because of extraordinary circumstances beyond the control of the
32school district, the amount of absences excused in one or more
33district programs in fiscal year 1996-97 pursuant to subdivision
34(b) of Section 46010 as it read on July 1, 1996, was significantly
35lower than it would ordinarily have been in comparison to the
36amount of actual attendance in fiscal year 1996-97, the
37Superintendent of Public Instruction shall make a compensating
38adjustment, consistent with the provisions of Section 2 of the
39Education Code, in the calculation set forth in this section.

end delete
40begin insert

begin insertSEC. 162.end insert  

end insert

begin insertSection 42238.9 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
P186  1

42238.9.  

The amount per unit of average daily attendance
2subtracted pursuant to Section 56712 for revenue limits for pupils
3in special classes and centers shall be the district’s total revenue
4limit for the current fiscal year computed pursuant to Section
542238, including funds received pursuant to Article 4 (commencing
6with Section 42280), but excluding the total amount of funds
7received pursuant to Sections 46200 to 46206, inclusive, and
8Section 45023.4, as that section read on July 1, 1986, divided by
9the district’s current year average daily attendance pursuant to
10 Section 42238.5. The amount per unit of average daily attendance
11that is excluded in this calculation for each school district shall be
12increased for the 1998-99 fiscal year by the quotient for that district
13of the amount determined pursuant to subparagraph (B) of
14paragraph (3) of subdivision (a) of Section 42238.8 divided by the
15amount determined pursuant to subparagraph (C) of paragraph (3)
16of subdivision (a) of Section 42238.8.

end delete
17begin insert

begin insertSEC. 163.end insert  

end insert

begin insertSection 42238.95 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
18

42238.95.  

(a) The amount per unit of average daily attendance
19for pupils in special classes and centers that shall be apportioned
20to each county office of education shall be equal to the amount
21determined for the district of residence pursuant to Section 42238.9,
22increased by the quotient equal to the amount determined pursuant
23to paragraph (1) divided by the amount determined pursuant to
24paragraph (2). This subdivision only applies to average daily
25attendance served by employees of the county office of education.

26(1) Determine the second principal apportionment average daily
27attendance for special education for the county office of education
28for the 1996-97 fiscal year, including attendance for excused
29absences, divided by the corresponding average daily attendance
30excluding attendance for excused absences pursuant to subdivision
31(b) of Section 46010 as it read on July 1, 1996, reported pursuant
32to Section 41601 for the 1996-97 fiscal year.

33(2) Determine the second principal apportionment average daily
34attendance for the 1996-97 fiscal year, including attendance for
35excused absences, for all of the school districts within the county,
36excluding average daily attendance for county office special
37education and county community school programs and nonpublic
38nonsectarian schools, divided by the corresponding average daily
39attendance, excluding attendance for excused absences determined
40pursuant to subdivision (b) of Section 46010 as it read on July 1,
P187  11996, and reported pursuant to Section 41601 for the 1996-97
2fiscal year.

3(b) A county office of education shall provide the data required
4to perform the calculation specified in paragraph (1) of subdivision
5(a) to the Superintendent of Public Instruction in order to be eligible
6for the adjustment pursuant to subdivision (a).

end delete
7begin insert

begin insertSEC. 164.end insert  

end insert

begin insertSection 42238.11 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
8

42238.11.  

Notwithstanding any other provision of law, for the
91994-95 fiscal year the county superintendent of schools shall
10reduce the total revenue limit for each school district in the
11jurisdiction of the county superintendent of schools by the amount
12of the decreased employer contributions to the Public Employees’
13Retirement System resulting from the enactment of Chapter 330
14of the Statutes of 1982, adjusted for any changes in those
15contributions resulting from subsequent changes in employer
16contribution rates, excluding rate changes due to the direct transfer
17of the state-mandated portion of the employer contributions to the
18Public Employees’ Retirement System, through the 1994-95 fiscal
19year. The reduction shall be calculated for each school district as
20follows:

21(a) Determine the amount of employer contributions that would
22have been made in the 1994-95 fiscal year if the applicable Public
23Employees’ Retirement System employer contribution rate in effect
24immediately prior to the enactment of Chapter 330 of the Statutes
25of 1982 were in effect during the 1994-95 fiscal year.

26For purposes of this calculation, no school district shall have a
27contribution rate higher than 13.020 percent.

28(b) Subtract from the amount determined in subdivision (a) the
29actual amount of employer contributions made to the Public
30Employees’ Retirement System in the 1994-95 fiscal year.

31(c) For the purposes of this section, employer contributions to
32the Public Employees’ Retirement System for any of the following
33positions shall be excluded from the calculation specified above:

34(1) Positions or portions of positions supported by federal funds
35that are subject to supplanting restrictions.

36(2) Positions supported by funds received pursuant to Section
3742243.6.

38(3) Positions supported, to the extent of employer contributions
39not exceeding twenty-five thousand dollars ($25,000) by any single
40educational agency, from a non-General Fund revenue source
P188  1determined to be properly excludable from this section by the
2Superintendent of Public Instruction with the approval of the
3Director of Finance.

4(d) For accounting purposes, the reduction made by this
5provision may be reflected as an expenditure from appropriate
6sources of revenue as directed by the Superintendent of Public
7Instruction.

8(e) The amount of the reduction made by this section shall not
9be adjusted by the deficit factor calculated pursuant to Section
1042238.145.

11It is the intent of the Legislature to make adjustments to school
12district revenue limits for the 1994-95 fiscal year to reflect savings
13that these districts will realize in the contributions to the Public
14Employees’ Retirement System due to a reduced contribution rate
15for the 1994-95 fiscal year.

end delete
16begin insert

begin insertSEC. 165.end insert  

end insert

begin insertSection 42238.12 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
17

42238.12.  

(a) For the 1995-96 fiscal year and each fiscal year
18thereafter, the county superintendent of schools shall adjust the
19total revenue limit for each school district in the jurisdiction of the
20county superintendent of schools by the amount of increased or
21decreased employer contributions to the Public Employees’
22Retirement System resulting from the enactment of Chapter 330
23of the Statutes of 1982, adjusted for any changes in those
24contributions resulting from subsequent changes in employer
25contribution rates, excluding rate changes due to the direct transfer
26of the state-mandated portion of the employer contributions to the
27Public Employees’ Retirement System, through the current fiscal
28year. The adjustment shall be calculated for each school district,
29as follows:

30(1) (A) Determine the amount of employer contributions that
31would have been made in the current fiscal year if the applicable
32Public Employees’ Retirement System employer contribution rate
33in effect immediately before the enactment of Chapter 330 of the
34Statutes of 1982 were in effect during the current fiscal year.

35(B) For purposes of this calculation, no school district shall have
36a contribution rate higher than 13.020 percent.

37(2) Determine the actual amount of employer contributions
38made to the Public Employees’ Retirement System in the current
39fiscal year.

P189  1(3) If the amount determined in paragraph (1) for a school
2district is greater than the amount determined in paragraph (2), the
3total revenue limit computed for that school district shall be
4decreased by the amount of the difference between those
5paragraphs; or, if the amount determined in paragraph (1) for a
6school district is less than the amount determined in paragraph (2),
7the total revenue limit for that school district shall be increased by
8the amount of the difference between those paragraphs.

9(4) For the purpose of this section, employer contributions to
10the Public Employees’ Retirement System for any of the following
11positions shall be excluded from the calculation specified above:

12(A) Positions or portions of positions supported by federal funds
13that are subject to supplanting restrictions.

14(B) Positions supported by funds received pursuant to Section
1541540 that are established in order to satisfy court-ordered
16desegregation requirements.

17(C) Positions supported, to the extent of employers’
18contributions not exceeding twenty-five thousand dollars ($25,000)
19by any single educational agency, from a non-General Fund
20revenue source determined to be properly excludable from this
21section by the Superintendent with the approval of the Director of
22Finance. Commencing in the 2002-03 fiscal year, only positions
23supported from a non-General Fund revenue source determined
24to be properly excludable as identified for a particular local
25educational agency or pursuant to a blanket waiver by the
26Superintendent and the Director of Finance, before the 2002-03
27fiscal year, may be excluded pursuant to this paragraph.

28(5) For accounting purposes, any reduction to school district
29revenue limits made by this provision may be reflected as an
30expenditure from appropriate sources of revenue as directed by
31the Superintendent.

32(6) The amount of the increase or decrease to the revenue limits
33of school districts computed pursuant to paragraph (3) for the
341995-96 to 2002-03 fiscal years, inclusive, may not be adjusted
35by the deficit factor applied to the revenue limit of each school
36district pursuant to Section 42238.145.

37(7) For the 2003-04 fiscal year and any fiscal year thereafter,
38the revenue limit reduction specified in Section 42238.146 may
39not be applied to the amount of the increase or decrease to the
P190  1revenue limits of school districts computed pursuant to paragraph
2(3).

3(b) The calculations set forth in paragraphs (1) to (3), inclusive,
4of subdivision (a) exclude employer contributions for employees
5of charter schools funded pursuant to Article 2 (commencing with
6Section 47633) of Chapter 6 of Part 26.8.

7(c) Funding appropriated through the Budget Act of 2001 or
8legislation amending the Budget Act of 2001 for the purpose of
9limiting the reductions to revenue limits calculated pursuant to
10this section and to Section 2558 for the 2001-02 fiscal year shall
11be allocated on a one-time basis in the following manner:

12(1) Each school district and county office of education subject
13to a reduced apportionment pursuant to this section or to Section
142558 shall receive a share of the amount described in paragraph
15(3) that is proportionate to the reduction in their apportionment
16pursuant to this section or to Section 2558 for the 2001-02 fiscal
17year as compared to the statewide total reduction that would occur
18absent this paragraph.

19(2) For the 2001-02 fiscal year, instead of the alternative
20calculation authorized by paragraph (1), San Francisco Unified
21School District shall receive an amount equal to five dollars and
2257 cents ($5.57) multiplied by its second principal apportionment
23average daily attendance for the 2001-02 fiscal year.

24(3) Notwithstanding any other law, total allocations pursuant
25to this subdivision may not exceed thirty-five million dollars
26($35,000,000).

27(d) Thirty-five million dollars ($35,000,000) is hereby
28appropriated from the General Fund for transfer to Section A of
29the State School Fund for local assistance for the purpose of
30limiting the reductions to revenue limits calculated pursuant to
31this section and to Section 2558 for the 2003-04 fiscal year.
32Funding from this appropriation shall be allocated in the following
33manner:

34(1) Each school district and county office of education subject
35to a reduced apportionment pursuant to this section or to Section
362558 shall receive a share of the amount appropriated in this
37subdivision that is proportionate to the reduction in their
38apportionment pursuant to this section or to Section 2558 for the
392003-04 fiscal year as compared to the statewide total reduction
40that would occur absent this paragraph.

P191  1(2) For the 2003-04 fiscal year, instead of the alternative
2calculation authorized by paragraph (1), the San Francisco Unified
3School District shall receive an amount equal to five dollars and
457 cents ($5.57) multiplied by its second principal apportionment
5average daily attendance for the 2003-04 fiscal year.

6(3) Notwithstanding any other law, total allocations pursuant
7to this subdivision may not exceed thirty-five million dollars
8($35,000,000) for the 2003-04 fiscal year.

9(4) For the purposes of making the computations required by
10Section 8 of Article XVI of the California Constitution, the
11appropriation made by this section shall be deemed to be “General
12Fund revenues appropriated for school districts,” as defined in
13subdivision (c) of Section 41202, for the 2003-04 fiscal year and
14included within the “total allocations to school districts and
15community college districts from General Fund proceeds of taxes
16appropriated pursuant to Article XIII B,” as defined in subdivision
17(e) of Section 41202, for the 2003-04 fiscal year.

18(e) For the 2004-05 fiscal year, and each fiscal year thereafter,
19apportionment reductions pursuant to this section and to Section
202558 shall be limited as follows:

21(1) Each school district and county office of education subject
22to a reduced apportionment pursuant to this section or to Section
232558 shall receive a share of the amount described in paragraph
24(3) that is proportionate to the reduction in their apportionment
25pursuant to this section or to Section 2558 for the 2004-05 fiscal
26year as compared to the statewide total reduction as would occur
27absent this paragraph.

28(2) Instead of the alternative calculation authorized by paragraph
29(1), the San Francisco Unified School District shall receive funding
30equal to the amount of funding per unit of average daily attendance
31specified in paragraph (2) of subdivision (c) as increased annually
32by cost-of-living adjustments specified in Section 42238.1,
33multiplied by its second principal apportionment average daily
34attendance for that fiscal year.

35(3) Notwithstanding any other law, total limitations pursuant to
36this subdivision may not annually exceed thirty-five million dollars
37($35,000,000) as annually increased by the cost-of-living
38adjustments specified in Section 42238.1, multiplied by the annual
39statewide percentage growth in total average daily attendance,
40measured at the second principal apportionment.

end delete
P192  1begin insert

begin insertSEC. 166.end insert  

end insert

begin insertSection 42238.13 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
2

42238.13.  

(a) Notwithstanding any other provision of law, for
3any elementary school district that meets all of the criteria specified
4in subdivision (b), the base revenue limit for the 1988-89 fiscal
5year and each subsequent fiscal year computed pursuant to Section
642238 shall be computed as though the 1987-88 base revenue limit
7per unit of average daily attendance was two thousand nine hundred
8sixty-five dollars ($2,965). The county superintendent shall
9compute the revenue limit on that basis.

10(b) The revenue limit computation described in subdivision (a)
11shall apply to any elementary school district that meets all of the
12following criteria:

13(1) The minority enrollment in the district in the 1987-88 school
14year was greater than 98 percent.

15(2) The AFDC enrollment in the district in the 1987-88 school
16year was greater than 32 percent.

17(3) The district ranked in all of the following categories in the
181986-87 California Assessment Program as follows:

19(A) Lowest 3 percent for third grade reading.

20(B) Lowest 2 percent for sixth grade reading.

21(C) Lowest 1 percent for eighth grade reading.

22(D) Lowest 1 percent for sixth grade mathematics.

23(E) Lowest 1 percent for eighth grade mathematics.

24(F) Lowest 1 percent for history/social science.

25(G) Lowest 1 percent for science.

26(4) The district’s 1987-88 base revenue limit was 2 percent
27below the statewide average for elementary districts and 7 percent
28below the county average for elementary districts.

29(5) The district is under a court order as of the effective date of
30this act.

end delete
31begin insert

begin insertSEC. 167.end insert  

end insert

begin insertSection 42238.14 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
32

42238.14.  

For the purposes of this article, the revenue limit
33for the 1993-94 fiscal year for each school district determined
34pursuant to this article and adjusted pursuant to Section 42238.16
35shall be reduced by a 8.14 percent deficit factor.

end delete
36begin insert

begin insertSEC. 168.end insert  

end insert

begin insertSection 42238.145 of the end insertbegin insertEducation Codeend insertbegin insert is
37repealed.end insert

begin delete
38

42238.145.  

For the purposes of this article, the revenue limit
39for each school district shall be reduced by a deficit factor, as
40follows:

P193  1(a) (1) For the 1994-95 fiscal year, the revenue limit for each
2school district determined pursuant to this article shall be reduced
3by an 11.01 percent deficit factor.

4(2) For the 1995-96 fiscal year, the revenue limit for each school
5district determined pursuant to this article shall be reduced by a
610.12 percent deficit factor.

7(3) For the 1996-97 and 1997-98 fiscal years, the revenue limit
8for each school district determined pursuant to this article shall be
9reduced by a 9.967 percent deficit factor, as adjusted pursuant to
10Section 42238.42.

11(4) For the 1999-2000 fiscal year, the revenue limit for each
12school district determined pursuant to this article shall be reduced
13by a 6.996 percent deficit factor.

14(b) (1) The revenue limit for the 1994-95 fiscal year for each
15school district shall be determined as if the revenue limit for each
16school district had been determined for the 1993-94 fiscal year
17without being reduced by the deficit factor required pursuant to
18Section 42238.14.

19(2) When computing the revenue limit for each school district
20for the 1995-96 or any subsequent fiscal year pursuant to this
21article, the revenue limit shall be determined as if the revenue limit
22for that school district had been determined for the previous fiscal
23year without being reduced by the deficit factor specified in this
24section.

end delete
25begin insert

begin insertSEC. 169.end insert  

end insert

begin insertSection 42238.146 of the end insertbegin insertEducation Codeend insertbegin insert is
26repealed.end insert

begin delete
27

42238.146.  

(a) (1) For the 2003-04 fiscal year, the revenue
28limit for each school district determined pursuant to this article
29shall be reduced by a 1.198 percent deficit factor.

30(2) For the 2004-05 fiscal year, the revenue limit for each school
31district determined pursuant to this article shall be reduced by a
320.323 percent deficit factor.

33(3) For the 2003-04 and 2004-05 fiscal years, the revenue limit
34for each school district determined pursuant to this article shall be
35further reduced by a 1.826 percent deficit factor.

36(4) For the 2005-06 fiscal year, the revenue limit for each school
37district determined pursuant to this article shall be reduced by a
380.892 percent deficit factor.

P194  1(5) For the 2008-09 fiscal year, the revenue limit for each school
2district determined pursuant to this article shall be reduced by a
37.844 percent deficit factor.

4(6) For the 2009-10 fiscal year, the revenue limit for each school
5district determined pursuant to this article shall be reduced by a
618.355 percent deficit factor.

7(7) For the 2010-11 fiscal year, the revenue limit for each school
8district determined pursuant to this article shall be reduced by a
917.963 percent deficit factor.

10(8) For the 2011-12 fiscal year, the revenue limit for each school
11district determined pursuant to this article shall be reduced by a
1220.404 percent deficit factor.

13(9) For the 2012-13 fiscal year, the revenue limit for each school
14district determined pursuant to this article shall be reduced by a
1522.272 percent deficit factor.

16(b) In computing the revenue limit for each school district for
17the 2006-07 fiscal year pursuant to this article, the revenue limit
18shall be determined as if the revenue limit for that school district
19had been determined for the 2003-04, 2004-05, and 2005-06 fiscal
20years without being reduced by the deficit factors specified in
21subdivision (a).

22(c) In computing the revenue limit for each school district for
23the 2010-11 fiscal year pursuant to this article, the revenue limit
24shall be determined as if the revenue limit for that school district
25had been determined for the 2009-10 fiscal year without being
26reduced by the deficit factors specified in subdivision (a).

27(d) In computing the revenue limit for each school district for
28the 2011-12 fiscal year pursuant to this article, the revenue limit
29shall be determined as if the revenue limit for that school district
30had been determined for the 2010-11 fiscal year without being
31reduced by the deficit factors specified in subdivision (a).

32(e) In computing the revenue limit for each school district for
33the 2012-13 fiscal year pursuant to this article, the revenue limit
34shall be determined as if the revenue limit for that school district
35had been determined for the 2011-12 fiscal year without being
36reduced by the deficit factors specified in subdivision (a).

37(f) In computing the revenue limit for each school district for
38the 2013-14 fiscal year pursuant to this article, the revenue limit
39shall be determined as if the revenue limit for that school district
P195  1had been determined for the 2012-13 fiscal year without being
2reduced by the deficit factors specified in subdivision (a).

end delete
3begin insert

begin insertSEC. 170.end insert  

end insert

begin insertSection 42238.15 of the end insertbegin insertEducation Codeend insertbegin insert is amended
4to read:end insert

5

42238.15.  

(a) Notwithstanding any other law, and in lieu of
6any inflation or cost-of-living adjustment otherwise authorized for
7any of the programs enumerated in subdivision (b), state funding
8for the programs enumerated in subdivision (b) shall be increased
9annually by the product of the following:

10(1) The sum of 1.0 plus the percentage change determined under
11begin insert paragraph (2) ofend insert subdivisionbegin delete (b)end deletebegin insert (d)end insert of Sectionbegin delete 42238.1end deletebegin insert 42238.02end insert.

12(2) The sum of 1.0 plus the percentage of increase, from the
13prior fiscal year to the current fiscal year, in each of the workload
14factors described in subdivision (b).

15(b) The programs for which annual state funding increases are
16determined under this section, and the factors used to measure
17workload for each of those programs, are as follows:

18(1) Special education programs and services, as measured by
19the regular second principal apportionment average daily
20attendance for kindergarten and grades 1 to 12, inclusive.

21(2) Child care and development programs, and preschool
22programs, as measured by the state population of children up to
23and including four years of age.

begin delete

24(3) Instructional materials for kindergarten and grades 1 to 8,
25inclusive, as measured by enrollment in kindergarten and grades
261 to 8, inclusive.

27(4) Instructional materials for grades 9 to 12, inclusive, as
28measured by enrollment in those grades.

29(5) Regional occupational programs and centers, as measured
30by enrollment in grades 11 and 12.

31(6) School improvement programs in kindergarten and grades
321 to 6, inclusive, as measured by enrollment in kindergarten and
33grades 1 to 6, inclusive.

34(7) School improvement programs in grades 7 to 12, inclusive,
35as measured by enrollment in those grades.

36(8) Economic impact aid, as measured by the number of children
37of ages 5 to 17 years, inclusive, from families that receive Aid to
38Families with Dependent Children and the number of pupils of
39limited English proficiency, as identified pursuant to Section
4052163.

P196  1(9) Staff development programs, as measured by enrollment in
2kindergarten and grades 1 to 12, inclusive.

3(10) Gifted and talented education programs, as measured by
4enrollment in kindergarten and grades 1 to 12, inclusive.

end delete

5(c) Notwithstanding any other law, child care and development
6programs shall not receive a cost-of-living adjustment in the
72012-13, 2013-14, and 2014-15 fiscal years.

8begin insert

begin insertSEC. 171.end insert  

end insert

begin insertSection 42238.17 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
9

42238.17.  

Notwithstanding any other provision of law, for any
10school district that was reorganized effective July 1, 1992, as a
11unified school district and that is congruent to a school district that
12was reorganized as an elementary school district effective July 1,
131990, the Superintendent of Public Instruction shall compute
14apportionments using the following data:

15(a) For the purposes of paragraph (1) of subdivision (d) of
16Section 42238 for the 1990-91 and 1991-92 fiscal years, the
17superintendent shall use the actual number of units of average daily
18attendance for the 1990-91 fiscal year second principal
19apportionments.

20(b) For the purposes of paragraph (1) of subdivision (d) of
21Section 42238, for the 1992-93 fiscal year and each fiscal year
22thereafter, the superintendent shall use the actual number of units
23of average daily attendance for the 1992-93 fiscal year second
24principal apportionment.

end delete
25begin insert

begin insertSEC. 172.end insert  

end insert

begin insertSection 42238.18 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
26

42238.18.  

(a) Notwithstanding any other provision of law,
27only those pupils enrolled in county office of education programs
28while detained in a juvenile hall, juvenile home, day center,
29juvenile ranch, juvenile camp, or regional youth educational facility
30established pursuant to Article 23 (commencing with Section 850),
31Article 24 (commencing with Section 880), and Article 24.5
32(commencing with Section 894) of Chapter 2 of Part 1 of Division
332 of the Welfare and Institutions Code shall be counted as juvenile
34court school pupils. For purposes of apportionments, those pupils
35in a group home housing 25 or more children placed pursuant to
36Sections 362, 727, and 730 of the Welfare and Institutions Code
37or in any group home housing 25 or more children and operating
38one or more additional sites under a central administration for
39children placed pursuant to Section 362, 727, or 730 of the Welfare
40and Institutions Code shall be reported as county group home and
P197  1institutions pupils to the Superintendent and shall be counted as
2juvenile court school pupils for purposes of apportionments.

3(b) Notwithstanding any other provision of law, any county
4superintendent of schools operating juvenile court schools, county
5group home and institutions schools, or community schools, or
6any combination of these schools shall maintain an account in their
7general fund to be known as the juvenile court and community
8school account, and shall deposit all funds derived from the
9operation of juvenile court, county group home and institutions
10schools, and community schools into that account. Expenditures
11from the juvenile court and community school account shall be
12limited to the following:

13(1) Those expenditures defined as direct costs of instructional
14programs by the California State School Accounting Manual,
15except that facility costs, including the costs of renting, leasing,
16purchasing, remodeling, constructing, or improving buildings and
17the costs of purchasing or improving land, shall be allowed as an
18instructional cost in the juvenile court and community school fund.
19Deferred maintenance contributions made pursuant to Section
2017584 may also be allowed as an instructional cost of juvenile
21court and county community school programs, provided the
22contribution does not exceed the program’s proportionate share
23of total county school service fund expenditures as defined in
24Section 17584, and provided the funds are used for deferred
25maintenance of juvenile court and county community school
26facilities.

27(2) Expenditures that are defined as documented direct support
28costs by the California State School Accounting Manual.

29(3) Expenditures that are defined as allocated direct support
30costs by the California State School Accounting Manual.

31(4) Other expenditures for support and indirect charges.
32However, these charges may not exceed 10 percent of the sum of
33the expenditures in paragraphs (1), (2), and (3).

34Expenditures that represent contract payments to other agencies
35for the operation of juvenile court and community school programs
36shall be included in the juvenile court and community school
37account and the contract costs distributed to the cost categories
38defined in paragraphs (1), (2), (3), and (4). At the end of any given
39school year the net ending balance in the juvenile court and
40community school account may be distributed to a reserved account
P198  1for economic contingencies or to a reserved account for capital
2outlay, provided that the combined total transferred does not exceed
315 percent of the current year’s authorized expenditures as specified
4above and also provided that funds placed in the reserved accounts
5shall only be expended for juvenile court, county group home and
6institutions, or community school programs. The net ending
7balance, except for those funds placed in a capital outlay fund,
8shall not exceed the greater of 15 percent of the previous year’s
9expenditures or twenty-five thousand dollars ($25,000). A county
10may accumulate over a period of two or more given school years
11a net ending balance in the capital outlay reserved account of more
12than 15 percent of the current fiscal year’s expenditures under
13provisions of a resolution of the governing board. Funds in the
14capital outlay reserve are to be used for capital outlay only. The
15Superintendent shall require an annual certification by county
16superintendents of schools beginning in the 1989-90 fiscal year
17that juvenile court, county group home and institutions, and
18community school funds have been expended as provided in this
19section and shall withhold from the subsequent year’s
20apportionment an amount equal to any excess ending balance or
21excess transfers, as provided in this subdivision, in the juvenile
22court and community school account.

23(c) Notwithstanding any other provision of law, pupils who are
24referred by the county probation department under Section 601 or
25654 of the Welfare and Institutions Code, shall be enrolled and
26eligible for apportionments in county community schools only
27after an individualized review and certification of the
28appropriateness of enrollment in the county group home and
29institution’s school or county community school. The
30individualized review shall include representatives of the court,
31the county department of education, the county probation
32department, and either the school district of residence or, in cases
33in which the pupil resides in a group home or institution, the school
34district in which the group home or institution is located, and, in
35each case, the school district representative shall agree to the
36appropriateness of the proposed placement and pupils so placed
37shall have a probation officer assigned to their case.

38(d) Regardless of the operative date of the amendments to this
39section made during the 1997 portion of the 1997-98 Regular
40Session, this section, as so amended, shall be implemented as
P199  1though it had been operative on July 1, 1996. For the purpose of
2implementing this section for the entire 1996-97 fiscal year, the
3Superintendent and other public officers shall take all necessary
4steps to effect the required adjustments and shall have authority
5to adjust allowance computations, apportionments, and
6disbursements ordered from Section A of the State School Fund
7and other public funds.

end delete
8begin insert

begin insertSEC. 173.end insert  

end insert

begin insertSection 42238.20 of the end insertbegin insertEducation Codeend insertbegin insert is amended
9to read:end insert

10

42238.20.  

(a) Notwithstanding any other law, commencing in
11thebegin delete 2008-09end deletebegin insert 2013-14end insert fiscal year, the minimum schoolday for a
12pupil concurrently enrolled in regular secondary school classes
13and classes operating pursuant to a joint powers agreement that
14became effective before January 1, 2008, is 180 minutes. These
15regular secondary school classes constitute regular school classes
16for the purposes of Section 46010.3.

17(b) Notwithstanding any other law, for purposes of computing
18the average daily attendance of a pupil described in subdivision
19(a), the 180-minute minimum schoolday permitted by this section
20shall be computed and reported as attendance for three-quarters
21of the full 240-minute minimum schoolday prescribed by Section
2246141.

23(c) For a pupil described in subdivision (a), the average daily
24attendance shall be included as school district average daily
25attendance computed pursuant to Sectionbegin delete 42238.5end deletebegin insert 42238.05end insert.

26(d) (1) Commencing with thebegin delete 2008-09end deletebegin insert 2013-14end insert fiscal year,
27the Superintendent shall compute funding for each pupil enrolled
28in classes as described in subdivision (a), for the period of time
29each day during which the pupil attends classes pursuant to a joint
30powers agreement, by multiplying the annual clock hours of
31attendance, up to a maximum of three clock hours per schoolday,
32by the rate described in subdivision (e)begin delete or (f)end delete, as applicable.

33(2) The Superintendent shall add the amount computed pursuant
34to paragraph (1) to thebegin delete revenue limit calculated pursuant to Section
3542238end delete
begin insert local control funding formula calculated pursuant to Section
3642238.02, as implemented by Section 42238.03,end insert
for the school
37district of attendance of the pupil.

38(3) A pupil shall not generate apportionment credit pursuant to
39this subdivision for more than 540 hours in any school year.

P200  1(e) The hourly rate for thebegin delete 2008-09end deletebegin insert 2012-13end insert fiscal year shall
2be determined as follows:

3(1) Subtract 73.3 percent of the school districtbegin delete revenue limitend delete
4begin insert local control funding formula allocationend insert funding per unit of
5average daily attendance computed pursuant to Sectionbegin delete 42238 for
6the 2007-08end delete
begin insert 42238.02, as implemented by Section 42238.03, for
7the 2013-14end insert
fiscal year for the school districts that entered into
8the joint powers agreement from the statewide averagebegin delete revenue
9limitend delete
begin insert local control funding formula allocation pursuant to Section
1042238.02, as implemented by Section 42238.03,end insert
funding per unit
11of average daily attendancebegin delete received by high school districts
12computed pursuant to paragraph (1) of subdivision (a) of Section
1347633 for the 2007-08 fiscal yearend delete
.

14(2) Divide the amount computed in paragraph (1) by 540.

begin delete

15(3) Multiply the amount in paragraph (2) by the cost of living,
16deficit factor, and equalization adjustments applied to revenue
17limits for the 2008-09 fiscal year.

end delete
begin delete

18(f) Commencing with the 2009-10 fiscal year, the hourly rate
19for the current fiscal year shall be determined by multiplying the
20prior year hourly rate by the cost of living, deficit factor, and
21equalization adjustments applied to the current year revenue limit
22computed pursuant to Section 42238.

end delete
begin delete

23(g)

end delete

24begin insert(f)end insert For purposes of computing attendance pursuant to Section
2546300 or any other law, immediate supervision and control of
26pupils while attending classes pursuant to a joint powers agreement
27described in subdivision (a) is deemed satisfied regardless of the
28school district employing the certificated employee providing the
29supervision and control, provided the school district is a party to
30the joint powers agreement.

begin delete

31(h)

end delete

32begin insert(g)end insert The auditor who conducts the annual audit pursuant to
33Section 41020 shall verify compliance with this section by each
34school district that is a party to the joint powers agreement as
35described in subdivision (a). An instance of noncompliance shall
36be reported as an audit exception. If the noncompliance is a
37condition of eligibility for the receipt of funds, the audit report
38shall include a statement of the number of units of average daily
39attendance or hours, if any, that were inappropriately reported for
40apportionment.

begin delete

P201  1(i)

end delete

2begin insert(h)end insert Notwithstanding any other law, the number of hours of
3instruction at regional occupational centers or programs that are
4claimed for funding pursuant to subdivision (d) shall be used, in
5addition to the hourly rate determined pursuant to subdivision (e)
6or (f), whichever subdivision is applicable, in the computation of
7the average daily attendance of the regional occupational center
8or program.

begin delete

9(j) This section shall become inoperative on July 1, 2017, and,
10as of January 1, 2018, is repealed, unless a later enacted statute,
11that becomes operative on or before January 1, 2018, deletes or
12extends the dates on which it becomes inoperative and is repealed.

end delete
13begin insert

begin insertSEC. 174.end insert  

end insert

begin insertSection 42238.23 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
14

42238.23.  

Notwithstanding any other provision of law, persons
15providing services to local education agencies through use of a
16joint powers authority involving the local education agency who
17would, in absence of the joint powers authority, otherwise be
18considered school employees and subject to the Public Employees’
19Retirement System rate reduction to revenue limits authorized in
20Section 42238, shall not be excluded from the calculations of the
21Public Employees’ Retirement System reduction authorized in that
22section.

end delete
23begin insert

begin insertSEC. 175.end insert  

end insert

begin insertSection 42238.24 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
24

42238.24.  

Costs related to the salaries and benefits of teachers
25incurred by a school district or county office of education to
26provide the courses specified in paragraph (1) of subdivision (a)
27of Section 51225.3 shall be offset by the amount of state funding
28apportioned to the district pursuant to this article, or in the case of
29a county office of education pursuant to Article 2 (commencing
30with Section 2550) of Chapter 12 of Part 2 of Division 1 of Title
311, and the amount of state funding received from any of the items
32listed in Section 42605 that are contained in the annual Budget
33Act. The proportion of the school district’s current expense of
34education that is required to be expended for payment of the
35salaries of classroom teachers pursuant to Section 41372 shall first
36be allocated to fund the teacher salary costs incurred to provide
37the courses required by the state.

end delete
38begin insert

begin insertSEC. 176.end insert  

end insert

begin insertSection 42239 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
39

42239.  

(a) For each fiscal year the Superintendent of Public
40Instruction shall compute funding for supplemental instruction for
P202  1each school district or charter school by multiplying the number
2of pupil hours of supplemental instruction claimed pursuant to
3Sections 37252 and 37252.2 by the pupil hour allowance specified
4in subdivision (b) or by a pupil hour allowance specified in the
5annual Budget Act in lieu of the amount computed in subdivision
6(b).

7(b) Hours of supplemental instruction shall be reimbursed at a
8rate of three dollars and fifty-three cents ($3.53) per pupil hour,
9adjusted in the 2005-06 fiscal year and subsequent fiscal years as
10specified in this section, provided that a different reimbursement
11rate may be specified for each fiscal year in the annual Budget Act
12that appropriates funding for that fiscal year. This amount shall be
13increased annually by the percentage increase pursuant to
14subdivision (b) of Section 42238.1 granted to school districts or
15charter schools for base revenue limit cost-of-living increases.

16(c) (1) If appropriated funding is insufficient to pay all claims
17made in any fiscal year pursuant to Sections 37252 and 37252.2,
18the superintendent shall use any available funding appropriated
19for the purposes of reimbursing school districts pursuant to Section
2037252 or 37252.2.

21(2) If appropriated funding is still insufficient to pay all claims
22made in any fiscal year pursuant to Section 37252 or 37252.2, the
23superintendent shall use any available funding appropriated for
24the purposes of reimbursing school districts for supplemental
25instruction in the prior fiscal year.

26(3) If appropriated funding is still insufficient to pay all claims
27made in any fiscal year pursuant to Section 37252 or 37252.2, the
28superintendent shall use any available funding appropriated for
29the purposes of reimbursing school districts for supplemental
30instruction in the current fiscal year.

31(4) The superintendent shall notify the Director of Finance that
32there is an insufficiency of funding appropriated for the purposes
33of Sections 37252 and 37252.2 only after the superintendent has
34exhausted all available balances of appropriations made for the
35current or prior fiscal years for the reimbursement of school
36districts for supplemental instruction.

37(d) Notwithstanding any other provision of law, neither the State
38Board of Education nor the Superintendent of Public Instruction
39may waive any provision of this section.

end delete
40begin insert

begin insertSEC. 177.end insert  

end insert

begin insertSection 42240 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
P203  1

42240.  

For the 1988-89 fiscal year, the Superintendent of
2Public Instruction shall do the following:

3(a) Using the latest available data as of July 1, 1987, identify
4each school district that meets all of the following criteria:

5(1) Has a second principal apportionment average daily
6attendance of fewer than 2,501 for the prior fiscal year.

7(2) Has approved home-to-school transportation costs in excess
8of 3 percent of its general fund total expense of education in the
9prior fiscal year.

10(b) For each school district identified pursuant to subdivision
11(a), or that receives funding pursuant to Section 42240 or 42240.1
12in the prior fiscal year, the superintendent shall make the following
13calculations:

14(1) Subtract from the approved home-to-school transportation
15costs an amount equal to 3 percent of the general fund total expense
16of education exclusive of lottery revenues.

17(2) Compare the amount determined in paragraph (1) to the
18amount the district received in the 1987-88 fiscal year pursuant
19to Sections 42240 and 42240.1.

20(c) If the comparison results in an amount less than the amount
21received in the 1987-88 fiscal year, the superintendent shall use
22that amount, but in no case shall the superintendent use an amount
23less than 95 percent of the amount received in the 1987-88 fiscal
24year.

25(d) The superintendent shall calculate the net savings from the
26comparison in subdivision (c).

27(e) If the comparison results in an amount greater than the
28amount received in the 1987-88 fiscal year, the superintendent
29shall use the amount calculated as the sum of the following:

30(1) The amount received in the 1987-88 fiscal year.

31(2) The amount determined by allocating the net savings
32calculated in subdivision (d) on a pro rata basis to each district in
33proportion to the amount by which comparison results in an amount
34greater than the amount received in the 1987-88 fiscal year.

35(f) The superintendent shall divide the amount determined
36pursuant to subdivision (c) or (e), whichever is appropriate, by the
371987-88 second principal apportionment average daily attendance.

38(g) The amount determined by subdivision (f) may be added to
39the amount determined pursuant to subdivision (b) of Section
4042238.

P204  1(h) The amount determined pursuant to subdivision (c) or (e),
2whichever is appropriate, may be added to the district’s
3transportation allowance under Section 41850.

4(i) Each school district eligible for funds may elect to have the
5funds allocated pursuant to either subdivision (g) or (h).

6(j) The amounts added to subdivision (b) of Section 42238
7pursuant to subdivision (g) and the amount added to Section 41850
8by subdivision (h) shall be considered to be permanent adjustments
9to the base revenue limit or transportation allowance as appropriate.

end delete
10begin insert

begin insertSEC. 178.end insert  

end insert

begin insertSection 42240.1 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
11

42240.1.  

Any elementary school district with less than 2,501
12units of average daily attendance in grades kindergarten to 6,
13inclusive, for the second principal apportionment in the 1978-79
14fiscal year, whose 7th and 8th grade pupils were being educated
15by a high school district pursuant to Article 5 (commencing with
16Section 37060) of Chapter 1 of Part 22 during the 1978-79 fiscal
17year, shall be entitled to the revenue limit adjustment computed
18pursuant to Section 42240 beginning with the 1981-82 fiscal year.

19This section shall become operative January 1, 1982.

end delete
20begin insert

begin insertSEC. 179.end insert  

end insert

begin insertSection 42241.3 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
21

42241.3.  

(a) This section applies only to the funding generated
22by the average daily attendance of pupils attending a charter school
23that has operated as a charter school since prior to July 1, 2005, if
24a unified school district has been the sponsoring local educational
25agency as defined in subdivision (i) of Section 47632, and if the
26unified school district was governed by Section 47660 as that
27section read on December 31, 2005.

28(b) For the 2005-06 fiscal year only, the revenue limit funding
29of a unified school district, other than a unified school district that
30has converted all of its schools to charter status pursuant to Section
3147606 and is operating them as charter schools, shall be increased
32or decreased to reflect half of the difference between the funding
33provided for the base revenue limit per unit of average daily
34attendance of the unified school district as set forth in Section
3542238 and the general-purpose entitlement per unit of average
36daily attendance of the charter school as set forth in Section 47633.

end delete
37begin insert

begin insertSEC. 180.end insert  

end insert

begin insertSection 42241.7 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
38

42241.7.  

(a) For the 1978-79 fiscal year, and each fiscal year
39thereafter, the revenue limit of any elementary, high, or unified
40school district authorized pursuant to Sections 42237 and 42238
P205  1may be increased by an amount sufficient to provide additional
2revenue equal to the expenditures estimated to be incurred by the
3district in the budget year in complying with the following
4provisions of the Unemployment Insurance Code: Sections 605
5and 803, Article 6 (commencing with Section 821) of Chapter 3
6of Part 1 of Division 1, or Article 3 (commencing with Section
7976) of Chapter 4 of Part 1 of Division 1, less the actual
8expenditures incurred by the district in the 1975-76 fiscal year in
9complying with the following provisions of the Unemployment
10Insurance Code: Section 605.2 and Article 6 (commencing with
11Section 821) of Chapter 3 of Part 1 of Division 1.

12(b) If, at the end of any fiscal year, the actual expenditures of
13the district specified in subdivision (a) are less than the revenue
14derived from the increase in revenue limit provided in subdivision
15(a) for that fiscal year, the difference shall be used in the following
16fiscal year exclusively for expenditures required pursuant to the
17Unemployment Insurance Code provisions specified in subdivision
18(a).

19(c) If, at the end of any fiscal year, the actual expenditures of
20the district specified in subdivision (a) exceed the revenue derived
21from the increase in revenue limit provided in subdivision (a) for
22that fiscal year, the difference may be added to the increase in
23revenue limit, authorized pursuant to this section, in the following
24fiscal year.

25(d) (1) For the 1994-95 to 2002-03 fiscal years, inclusive, the
26adjustment computed pursuant to this section shall not be adjusted
27by the deficit factor applied to the revenue limit of each school
28district pursuant to Section 42238.145.

29(2) For the 2003-04 fiscal year and each fiscal year thereafter,
30the revenue limit reduction specified in Section 42238.146 may
31not be applied to the adjustment computed pursuant to this section.

32(e) Expenditures for employees of charter schools funded
33pursuant to Article 2 (commencing with Section 47633) of Chapter
346 of Part 26.8 are excluded from the calculations set forth in this
35 section.

end delete
36begin insert

begin insertSEC. 181.end insert  

end insert

begin insertSection 42242 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
37

42242.  

The Superintendent of Public Instruction shall determine
38at the time of each apportionment the proposed receipts and
39expenditures of funds under the provisions of the Individuals with
40Disabilities Education Act (20 U.S.C. Sec. 1400 et seq.). In the
P206  1event that the proposed distribution of funds results in funds not
2being expended, those funds are hereby reappropriated for
3reallocation for local entitlements for special education.

4This section shall become operative July 1, 1984.

end delete
5begin insert

begin insertSEC. 182.end insert  

end insert

begin insertSection 42243.7 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
6

42243.7.  

(a) For any school district that commenced operations
7on or after June 30, 1978, or for any school district that receives
8approval from the department for a new continuation education
9high school for the 1979-80 fiscal year, or any fiscal year
10thereafter, the Superintendent of Public Instruction shall compute
11an adjustment to the district revenue limit pursuant to this section.

12(b) Determine the amount of foundation program that the district
13would have been entitled to pursuant to subdivision (a) of Section
1441711, as that section read on July 1, 1977, if the district had
15operated during the 1977-78 fiscal year, utilizing the number of
16units of average daily attendance attending high school in the
17district in the fiscal year for which the revenue limit is being
18computed.

19(c) Determine the amount of foundation program that the district
20would have been entitled to pursuant to paragraph (1) of
21subdivision (b) of Section 41711, as that section read on July 1,
221977, if the district had operated during the 1977-78 fiscal year,
23utilizing the same number of units of average daily attendance
24used in subdivision (b) of this section.

25(d) Subtract the amount determined pursuant to subdivision (c)
26from the amount computed pursuant to subdivision (b).

27(e) The amount computed pursuant to subdivision (d), if greater
28than zero, shall be added to the revenue limit computed pursuant
29to subdivision (c) of Section 42237 or pursuant to Section 42238.
30If the amount in subdivision (d) is less than zero there is no
31adjustment.

32(f) The Superintendent of Public Instruction shall reduce by the
33amount computed pursuant to subdivision (e) the revenue limit
34computed pursuant to Section 42238 of any district discontinuing
35the operation of a continuation education school approved pursuant
36to subdivision (a).

37(g) (1) For the 1994-95 to 2002-03 fiscal years, inclusive, the
38adjustment computed pursuant to this section may not be adjusted
39by the deficit factor applied to the revenue limit of each school
40 district pursuant to Section 42238.145.

P207  1(2) For the 2003-04 fiscal year and each fiscal year thereafter,
2the revenue limit reduction specified in Section 42238.146 may
3not be applied to the adjustment computed pursuant to this section.

4(h) The adjustment computed pursuant to this section for a new
5continuation education high school may be applicable for any
6unified school district that was not fully operational during the
7first year of operation of the continuation education high school.
8The number of units of average daily attendance to be used in
9computing the adjustment shall be the number of units of average
10daily attendance generated by the continuation education high
11school in the district for the first year that the district is fully
12operational in all grades.

13(i) In the 1998-99 fiscal year and each fiscal year thereafter,
14the ranges of average daily attendance resulting from the
15calculation set forth in this section pursuant to Section 41711, as
16that section read on July 1, 1977, shall be reduced by the statewide
17average percentage that absences excused pursuant to subdivision
18(b) of Section 46010, as that section read on July 1, 1996, were of
19total second principal apportionment regular average daily
20attendance for high schools in 1996-97, with the reduced ranges
21then rounded to the nearest integer.

22(j) Commencing with the 2005-06 fiscal year and
23notwithstanding any provision of law, the amount of the adjustment
24calculated pursuant to this section shall not be added to the revenue
25limit of a school district, but shall be used in determining the
26amount of the pupil retention block grant awarded a school district
27pursuant to Article 1 (commencing with Section 41500) of Chapter
283.2.

end delete
29begin insert

begin insertSEC. 183.end insert  

end insert

begin insertSection 42244 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
30

42244.  

It is the intent of the Legislature that, in the event a
31district increases its average daily attendance at a continuation
32education school above the average daily attendance level approved
33pursuant to subdivision (a) of Section 42243.7, the entire amount
34of the revenues generated by the additional average daily
35attendance shall be expended on the continuation education school
36program.

end delete
37begin insert

begin insertSEC. 184.end insert  

end insert

begin insertSection 42245 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
38

42245.  

Whenever any computation required by this article
39results, because of estimating or other errors, in a total revenue
40limit in an amount more or less than actual data would have
P208  1produced, the revenue limit for the succeeding fiscal year shall be
2reduced by an amount equal to the amount of the error if the total
3produced was more, and may be increased by an amount up to the
4amount of the error if the total produced was less.

end delete
5begin insert

begin insertSEC. 185.end insert  

end insert

begin insertSection 42251 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
6

42251.  

(a) The Superintendent shall make the following
7calculations for the 2011-12 fiscal year:

8(1) Determine the amount of funds that will be restricted after
9the Superintendent makes the deduction pursuant to Section
1052335.3 for each county office of education pursuant to subdivision
11(e) of Section 2558 as of June 30, 2012.

12(2) Divide fifty million dollars ($50,000,000) by the statewide
13sum of the amounts determined pursuant to paragraph (1). If the
14fraction is greater than one it shall be deemed to be one.

15(3) Multiply the fraction determined pursuant to paragraph (2)
16by the amount determined pursuant to paragraph (1) for each
17county office of education.

18(b) The auditor-controller of each county shall distribute the
19amounts determined in paragraph (3) of subdivision (a) to the
20Supplemental Revenue Augmentation Fund created within the
21county pursuant to Section 100.06 of the Revenue and Taxation
22Code. The aggregate amount of transfers required by this
23subdivision shall be made in two equal shares, with the first share
24being transferred no later than January 15, 2012, and the second
25share being transferred after that date but no later than May 1,
262012.

27(c) The moneys transferred to the Supplemental Revenue
28Augmentation Fund in the 2011-12 fiscal year shall be transferred
29by the county office of education to the Controller, in amounts and
30for those purposes as directed by the Director of Finance,
31exclusively to reimburse the state for the costs of providing trial
32court services and costs until those moneys are exhausted.

end delete
33begin insert

begin insertSEC. 186.end insert  

end insert

begin insertArticle 3 (commencing with Section 42260) of
34Chapter 7 of Part 24 of Division 3 of Title 2 of the end insert
begin insertEducation Codeend insert
35begin insert is repealed.end insert

36begin insert

begin insertSEC. 187.end insert  

end insert

begin insertSection 42280 of the end insertbegin insertEducation Codeend insertbegin insert is amended
37to read:end insert

38

42280.  

(a) For each school district that meets, in the current
39or prior fiscal year, the conditions specified in Section 42281,
4042282, or 42284 thebegin delete county superintendent of schoolsend delete
P209  1begin insert Superintendentend insert shall compute, for each qualifying school in the
2begin insert schoolend insert district, an amount pursuant to this article.

3(b) For each school district that is a countywide unified school
4district that had fewer than 2,501 units of average daily attendance
5in the 1990-91 fiscal year, thebegin delete county superintendent of schoolsend delete
6begin insert Superintendentend insert shall compute an amount pursuant to this article
7for those schools that meet the conditions specified in Sections
842283 and 42285 in the current or prior fiscal year. This
9subdivision is only applicable to those schools funded pursuant to
10this article in the 1990-91 fiscal year and, in subsequent years, if
11the school district has no more than 3,000 units of average daily
12attendance.

begin delete

13(c) For the 1998-99 fiscal year, average daily attendance
14reported pursuant to Section 41601 for the 1997-98 fiscal year,
15exclusive of average daily attendance for absences excused
16pursuant to subdivision (b) of Section 46010 as that subdivision
17read on July 1, 1996, shall be used for the purpose of determining
18whether school districts meet the conditions in Sections 42281,
1942282, and 42284 for the prior fiscal year.

end delete
20begin insert

begin insertSEC. 188.end insert  

end insert

begin insertSection 42281 of the end insertbegin insertEducation Codeend insertbegin insert is amended
21to read:end insert

22

42281.  

begin delete(a)