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)end deletebegin deleteend deleteExcept as specified in paragraph (4), for each
23elementary school district that maintains only one school with a
24second principal apportionment average daily attendance of less
25than 101, thebegin delete county superintendentend deletebegin insert Superintendentend insert shall make
26one of the following computations, whichever provides the lesser
27amount:

begin delete

28(1)

end delete

29begin insert(a)end insert For each small school that has an average daily attendance
30during the fiscal year of less thanbegin delete 26,end deletebegin insert 24,end insert exclusive of pupils
31attending the 7th and 8th grades of a junior high school, and for
32which school at least one teacher was hired full time, thebegin delete county
33superintendentend delete
begin insert Superintendentend insert shall compute for thebegin insert schoolend insert district
34fifty-two thousand nine hundred twenty-five dollars ($52,925).

begin delete

35(2)

end delete

36begin insert(b)end insert For each small school that has an average daily attendance
37during the fiscal year ofbegin delete 26end deletebegin insert 25end insert or more and less thanbegin delete 51,end deletebegin insert 48,end insert
38 exclusive of pupils attending the 7th and 8th grades of a junior
39high school, and for which school at least two teachers were hired
40full time for more than one-half of the days schools were
P210  1maintained, thebegin delete county superintendentend deletebegin insert Superintendentend insert shall
2compute for thebegin insert schoolend insert district one hundred five thousand eight
3hundred fifty dollars ($105,850).

begin delete

4(3)

end delete

5begin insert(c)end insert For each small school that has an average daily attendance
6during the fiscal year ofbegin delete 51end deletebegin insert 49end insert or more but less thanbegin delete 76,end deletebegin insert 72,end insert
7 exclusive of pupils attending the 7th and 8th grades of a junior
8high school, and for which school three teachers were hired full
9time for more than one-half of the days schools were maintained,
10thebegin delete county superintendentend deletebegin insert Superintendentend insert shall compute for the
11begin insert schoolend insert district one hundred fifty-eight thousand seven hundred
12seventy-five dollars ($158,775).

begin delete

13(4)

end delete

14begin insert(d)end insert For each small school that has an average daily attendance
15during the fiscal year ofbegin delete 76end deletebegin insert 73end insert or more and less thanbegin delete 101,end deletebegin insert 96,end insert
16 exclusive of pupils attending the 7th and 8th grades of a junior
17high school, and for which school four teachers were hired full
18time for more than one-half of the days schools were maintained,
19thebegin delete county superintendentend deletebegin insert Superintendentend insert shall compute for the
20begin insert schoolend insert district two hundred eleven thousand seven hundred dollars
21($211,700). A school district that qualifies under this subdivision
22may use this funding calculation until thebegin delete revenue limitend deletebegin insert local
23control funding formula allocation pursuant to Section 42238.02,
24as implemented by Section 42238.03,end insert
per unit of average daily
25attendance multiplied by the average daily attendance produces
26state aid equal to the small school funding formula.

begin delete

27(b) For the 1998-99 fiscal year and each fiscal year thereafter,
28the average daily attendance figure of 101 specified in subdivision
29(a) and the ranges of average daily attendance specified in
30paragraphs (1) to (4), inclusive, shall be reduced by the statewide
31average rate of excused absence reported for elementary school
32districts for the 1996-97 fiscal year pursuant to Section 42238.7,
33with the resultant figures and ranges rounded to the nearest integer.

end delete
34begin insert

begin insertSEC. 189.end insert  

end insert

begin insertSection 42282 of the end insertbegin insertEducation Codeend insertbegin insert is amended
35to read:end insert

36

42282.  

For each district with fewer than 2,501 units of second
37principal apportionment average daily attendance, on account of
38each necessary small school, thebegin delete county superintendentend delete
39begin insert Superintendentend insert shall make the following computations:

P211  1(a) For each necessary small school which has an average daily
2attendance during the fiscal year of less thanbegin delete 26,end deletebegin insert 24,end insert exclusive of
3pupils attending the 7th and 8th grades of a junior high school,
4and for which school at least one teacher was hired full time, the
5begin delete county superintendentend deletebegin insert Superintendentend insert shall compute for thebegin insert schoolend insert
6 district fifty-two thousand nine hundred twenty-five dollars
7($52,925).

8(b) For each necessary small school which has an average daily
9attendance during the fiscal year ofbegin delete 26end deletebegin insert 25end insert or more and less than
10begin delete 51,end deletebegin insert 48,end insert exclusive of pupils attending the 7th and 8th grades of a
11junior high school, and for which school at least two teachers were
12hired full time for more than one-half of the days schools were
13maintained, thebegin delete county superintendentend deletebegin insert Superintendentend insert shall
14compute for thebegin insert schoolend insert district one hundred five thousand eight
15hundred fifty dollars ($105,850).

16(c) For each necessary small school which has an average daily
17attendance during the fiscal year ofbegin delete 51end deletebegin insert 49end insert or more, but less than
18begin delete 76,end deletebegin insert 72,end insert exclusive of pupils attending the 7th and 8th grades of a
19junior high school, and for which school three teachers were hired
20full time for more than one-half of the days schools were
21maintained, thebegin delete county superintendentend deletebegin insert Superintendentend insert shall
22compute for thebegin insert schoolend insert district one hundred fifty-eight thousand
23seven hundred seventy-five dollars ($158,775).

24(d) For each necessary small school which has an average daily
25attendance during the fiscal year ofbegin delete 76end deletebegin insert 73end insert or more and less than
26begin delete 101,end deletebegin insert 96,end insert exclusive of pupils attending the 7th and 8th grades of a
27junior high school, and for which school four teachers were hired
28full time for more than one-half of the days schools were
29maintained, thebegin delete county superintendentend deletebegin insert Superintendentend insert shall
30compute for thebegin insert schoolend insert district two hundred eleven thousand seven
31hundred dollars ($211,700).

32(e) A school district that qualifies under this section may use
33this funding calculation until thebegin delete revenue limitend deletebegin insert local control funding
34formula allocation pursuant to Section 42238.02, as implemented
35by Section 42238.03,end insert
per unit of average daily attendance
36multiplied by the average daily attendance produces state aid equal
37to the small school funding formula.

begin delete

38(f) For the 1998-99 fiscal year and each fiscal year thereafter,
39the ranges of average daily attendance specified in subdivisions
40(a) to (d), inclusive, shall be reduced by the statewide average rate
P212  1of excused absences reported for elementary school districts for
2the 1996-97 fiscal year pursuant to Section 42238.7, with the
3resultant figures and ranges rounded to the nearest integer.

end delete
4begin insert

begin insertSEC. 190.end insert  

end insert

begin insertSection 42282.1 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
5

42282.1.  

(a) Notwithstanding Section 42282, or any other
6provision of law, each necessary small school in the Death Valley
7Unified School District shall qualify for the apportionment
8specified in subdivision (b) of Section 42282 if that school has an
9average daily attendance of 21 or more and less than 51, exclusive
10of pupils attending the 7th and 8th grades of a junior high school,
11and for which school at least two teachers were hired full-time for
12more than one-half of the days schools were maintained.

13(b) It is the intent of the Legislature not to provide a special
14allowance to the Death Valley Unified School District for one of
15its schools by future legislation if the average daily attendance at
16the school is 18 or less.

end delete
17begin insert

begin insertSEC. 191.end insert  

end insert

begin insertSection 42283 of the end insertbegin insertEducation Codeend insertbegin insert is amended
18to read:end insert

19

42283.  

(a) Forbegin delete theend delete purposes ofbegin delete Sectionend deletebegin insert Sections 42281 andend insert
20 42282, a “necessary small school” is an elementary school with
21an average daily attendance of less than 101, exclusive of pupils
22attending the seventh and eighth grades of a junior high school,
23maintained by a school districtbegin delete which maintains two or more
24schools andend delete
to which school any of the following conditions apply:

25(1) If as many as five pupils residing in thebegin insert schoolend insert district and
26attending kindergarten and grades 1 to 8, inclusive, exclusive of
27pupils attending the seventh and eighth grades of a junior high
28school in the elementary school with an average daily attendance
29of less than 101 would be required to travel more than 10 miles
30one way from a point on a well-traveled road nearest their home
31to the nearest other public elementary school.

32(2) If as many as 15 pupils residing in thebegin insert schoolend insert district and
33attending kindergarten and grades 1 to 8, inclusive, exclusive of
34pupils attending the seventh and eighth grades of a junior high
35school in the elementary school with an average daily attendance
36of less than 101 would be required to travel more than five miles
37one way from a point on a well-traveled road nearest their home
38to the nearest other public elementary school.

39(3) If topographical or other conditions exist in abegin insert schoolend insert district
40which would impose unusual hardships if the number of miles
P213  1specified in paragraph (1) or (2) were required to be traveled, or
2if during the fiscal year the roads which would be traveled have
3been impassable for more than an average of two weeks per year
4for the preceding five years, the governing board of thebegin insert schoolend insert
5 district may, on or before April 1, request the Superintendentbegin delete of
6Public Instructionend delete
, in writing, for an exemption from these
7requirements or for a reduction in the miles required. The request
8shall be accompanied by a statement of the conditions upon which
9the request is based, giving the information in a form required by
10the Superintendentbegin delete of Public Instructionend delete. The Superintendentbegin delete of
11Public Instructionend delete
shall cause an investigation to be made, and
12shall either grant the request to the extent he or she deems
13necessary, or deny the request.

begin delete

14(b) For the 1998-99 fiscal year and each fiscal year thereafter,
15a “necessary small school,” as defined in subdivision (a), shall be
16an elementary school with an average daily attendance of less than
17 101 reduced by the statewide average rate of excused absence
18reported for elementary school districts for the 1996-97 fiscal year
19pursuant to Section 42238.7, rounded to the nearest integer.

end delete
begin insert

20(b) For purposes of this section, “other public elementary
21school” is a public school, including a charter school, that serves
22kindergarten or any of grades 1 to 8, inclusive, exclusive of grades
237 and 8 of a junior high school.

end insert
24begin insert

begin insertSEC. 192.end insert  

end insert

begin insertSection 42283.1 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
25

42283.1.  

(a) Notwithstanding any provision of this article or
26any other provision of law, Mt. Hamilton Elementary School and
27Harney Elementary School each shall be deemed a necessary small
28school, as defined in Section 42283. In lieu of the amount
29calculated for necessary small schools, and in addition to the
30amount per unit of average daily attendance received by the
31districts, as calculated pursuant to Article 2 (commencing with
32Section 42238), the Alum Rock Union Elementary School District
33shall receive in each fiscal year, commencing with the 1993-94
34fiscal year, a twenty thousand dollar ($20,000) apportionment for
35Mt. Hamilton Elementary School and the Patterson Joint Unified
36School District shall receive a twenty thousand dollar ($20,000)
37apportionment for Harney Elementary School.

38(b) If either Mt. Hamilton Elementary School or Harney
39Elementary School exceeds 20 units of average daily attendance
P214  1in any fiscal year, then that school shall no longer be entitled to
2receive the apportionments set forth in subdivision (a).

end delete
3begin insert

begin insertSEC. 193.end insert  

end insert

begin insertSection 42283.2 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
4

42283.2.  

(a)  Notwithstanding any other provision of law, the
5Rand Elementary School shall be deemed a necessary small school,
6as defined in Section 42283. Notwithstanding any other provision
7of law, the Sierra Sands Unified School District is eligible to
8receive apportionments for the Rand Elementary School pursuant
9to Section 42282.

10(b) If the amount of average daily attendance of the Rand
11Elementary School exceeds 100, then that school shall no longer
12be entitled to receive apportionments as a necessary small school.

end delete
13begin insert

begin insertSEC. 194.end insert  

end insert

begin insertSection 42284 of the end insertbegin insertEducation Codeend insertbegin insert is amended
14to read:end insert

15

42284.  

(a) For each district with fewer than 2,501 units of
16average daily attendance, on account of each necessary small high
17school, thebegin delete county superintendent of schoolsend deletebegin insert Superintendentend insert shall
18make one of the following computations selected with regard only
19to the number of certificated employees employed or average daily
20attendance, whichever provides the lesser amount:


21

 


Average daily
attendance

Minimum number
of certificated
employees

Amount to be
computed

   

1-begin deleteend deletebegin delete20end deletebegin deleteend deletebegin insertend insertbegin insert19end insertbegin insertend insert   

less than 3

$42,980

per teacher

1-begin deleteend deletebegin delete20end deletebegin deleteend deletebegin insertend insertbegin insert19end insertbegin insertend insert   

 3

191,340

begin deleteend deletebegin delete21-end deletebegin deleteend deletebegin delete40end deletebegin deleteend deletebegin insertend insertbegin insert20-end insertbegin insertend insertbegin insert38end insertbegin insertend insert   

 4

234,320

begin deleteend deletebegin delete41-end deletebegin deleteend deletebegin delete60end deletebegin deleteend deletebegin insertend insertbegin insert39-end insertbegin insertend insertbegin insert57end insertbegin insertend insert   

 5

277,300

begin deleteend deletebegin delete61-end deletebegin deleteend deletebegin delete75end deletebegin deleteend deletebegin insertend insertbegin insert58-end insertbegin insertend insertbegin insert71end insertbegin insertend insert   

 6

320,280

begin deleteend deletebegin delete76-end deletebegin deleteend deletebegin delete90end deletebegin deleteend deletebegin insertend insertbegin insert72-end insertbegin insertend insertbegin insert86end insertbegin insertend insert   

 7

363,260

begin deleteend deletebegin delete91-105end deletebegin deleteend deletebegin insertend insertbegin insert87-end insertbegin insertend insertbegin insert100end insertbegin insertend insert   

 8

406,240

begin delete106-120end deletebegin deleteend deletebegin insert101-114end insertbegin insertend insert   

 9

449,220

begin delete121-135end deletebegin deleteend deletebegin insert115-129end insertbegin insertend insert   

10

492,200

begin delete136-150end deletebegin deleteend deletebegin insert130-143end insertbegin insertend insert   

11

535,180

begin delete151-180end deletebegin deleteend deletebegin insert144-171end insertbegin insertend insert   

12

578,160

begin delete181-220end deletebegin deleteend deletebegin insert172-210end insertbegin insertend insert   

13

621,140

begin delete221-260end deletebegin deleteend deletebegin insert211-248end insertbegin insertend insert   

14

664,120

begin delete261-300end deletebegin deleteend deletebegin insert249-286end insertbegin insertend insert   

15

707,100

 

P215  1(b) For purposes of this section, a “certificated employee” means
2an equivalent full-time position of an individual holding a
3credential authorizing service and providing service in grades 9
4to 12, inclusive, in any secondary school. Any fraction of an
5equivalent full-time position remaining after all equivalent full-time
6positions for certificated employees within the district have been
7calculated shall be deemed to be a full-time position.

8(c) A school district that qualifies under this section may use
9the funding calculation as provided in this section until thebegin delete revenue
10limitend delete
begin insert local control funding formula allocation pursuant to Section
1142238.02, as implemented by Section 42238.03,end insert
per unit of average
12daily attendance multiplied by the average daily attendance
13produces state aid equal to the funding provided under this section.

begin delete

14(d) For the 1998-99 fiscal year and each fiscal year thereafter,
15the ranges of average daily attendance specified in the table in
16subdivision (a) shall be reduced by the statewide average rate of
17excused absence reported for high school districts for the 1996-97
18fiscal year pursuant to Section 42238.7, with the resultant ranges
19rounded to the nearest integer.

end delete
20begin insert

begin insertSEC. 195.end insert  

end insert

begin insertSection 42285 of the end insertbegin insertEducation Codeend insertbegin insert is amended
21to read:end insert

22

42285.  

(a) Forbegin delete theend delete purposes of Section 42284, a necessary
23small high school is a high school with an average daily attendance
24of less than 301 that comes within any of the following conditions:

25(1) The projection of its future enrollment on the basis of the
26enrollment of the elementary schools in the district shows that
27within eight years the enrollment in high school in grades 9 to 12,
28inclusive, will exceed 300 pupils.

29(2) Any one of the following combinations of distance and units
30of average daily attendance applies:

31(A) The high school had an average daily attendance of less
32than 100 in grades 9 to 12, inclusive, during the preceding fiscal
33year and is more than 15 miles by well-traveled road from the
34nearest other public high school and either 90 percent of the pupils
35would be required to travel 20 miles or 25 percent of the pupils
36would be required to travel 30 miles one way from a point on a
37well-traveled road nearest their homes to the nearest other public
38high school.

39(B) The high school had an average daily attendance of 100 or
40more and less than 150 in grades 9 to 12, inclusive, during the
P216  1preceding fiscal year and is more than 10 miles by well-traveled
2road from the nearest other public high school and either 90 percent
3of the pupils would be required to travel 18 miles or 25 percent of
4the pupils would be required to travel 25 miles one way from a
5point on a well-traveled road nearest their homes to the nearest
6other public high school.

7(C) The high school had an average daily attendance of 150 or
8more and less than 200 in grades 9 to 12, inclusive, during the
9preceding fiscal year and is more than 712 miles by well-traveled
10road from the nearest other public high school and either 90 percent
11of the pupils would be required to travel 15 miles or 25 percent of
12the pupils would be required to travel 20 miles one way from a
13point on a well-traveled road nearest their homes to the nearest
14other public high school.

15(D) The high school had an average daily attendance of 200 or
16more and less than 301 in grades 9 to 12, inclusive, during the
17preceding fiscal year and is more than five miles by well-traveled
18road from the nearest other public high school and either 90 percent
19of the pupils would be required to travel 10 miles or 25 percent of
20the pupils would be required to travel 15 miles to the nearest other
21public high school.

22(3) Topographical or other conditions exist in thebegin insert schoolend insert district
23which would impose unusual hardships on the pupils if the number
24of miles specified above were required to be traveled. In these
25cases, the Superintendent may, when requested, and after
26investigation, grant exceptions from the distance requirements.

27(4) The Superintendent has approved the recommendation of a
28county committee on school district organization designating one
29of two or more schools as necessary isolated schools in a situation
30where the schools are operated by two or morebegin insert schoolend insert districts and
31the average daily attendance of each of the schools is less than 301
32in grades 9 to 12, inclusive.

33(b) Forbegin delete theend delete purposes of Section 42284, a necessary small high
34school also includesbegin delete any of the following:end deletebegin insert a high school maintained
35by a school district for the exclusive purpose of educating juvenile
36hall pupils or pupils with exceptional needs.end insert

begin delete

37(1) The only high school maintained by a unified school district.

38(2) A high school maintained by a school district for the
39exclusive purpose of educating juvenile hall pupils or pupils with
40exceptional needs.

P217  1(3) (A) The Sea View Elementary School in the Coachella
2Valley Unified School District, as long as the amount of average
3daily attendance of that school is 286 or less.

4(B) The West Shores High School in the Coachella Valley
5Unified School District, as long as the amount of average daily
6attendance of that school is 286 or less.

end delete

7(c) Forbegin delete theend delete purposes of Section 42284, a necessary small high
8school does not include a continuation school.

begin delete

9(d) For each fiscal year, the high school and junior high school
10average daily attendance figures specified in subdivision (a) and
11the ranges of average daily attendance specified in paragraph (2)
12of subdivision (a) shall be reduced by the statewide average rate
13of excused absence reported for high school districts for the
141996-97 fiscal year pursuant to Section 42238.7, with the resultant
15figures and ranges rounded to the nearest integer.

end delete
begin insert

16(d) For purposes of this section, “other public high school” is
17a public school, including a charter school, that serves any of
18grades 9 to 12, inclusive, or grades 7 and 8 in a junior high school.

end insert
19begin insert

begin insertSEC. 196.end insert  

end insert

begin insertSection 42285.1 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
20

42285.1.  

(a) For purposes of Section 42285, a necessary small
21high school includes the Boys Republic High School maintained
22by the Chino Unified School District in which the majority of the
23pupils are placed by court order and the enrollment of the school
24is less than 200 pupils. The total amount annually received by the
25Chino Unified School District pursuant to this section for the
261988-89 fiscal year and each fiscal year thereafter shall not exceed
27an amount equal to the sum of one hundred eighty thousand dollars
28($180,000) plus the amount of revenue that the average daily
29attendance in the Boys Republic High School would have generated
30pursuant to Section 42238 and paragraph (1) of subdivision (a) of
31Section 42238.5.

32(b) The Chino Unified School District shall submit an annual
33report to the State Department of Education regarding the necessary
34small high school as defined in this section. The report shall
35include, but not be limited to, the number of pupils attending the
36school, the number of teachers teaching in the school, the number
37of days that classes were held in the school, and the type of
38program provided by the district.

39(c) It is the intent of the Legislature that the Chino Unified
40School District receive funding as provided by this section
P218  1commencing with the 1988-89 fiscal year and continuing in
2subsequent fiscal years.

end delete
3begin insert

begin insertSEC. 197.end insert  

end insert

begin insertSection 42285.4 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
4

42285.4.  

Notwithstanding any other provision of law, the River
5Delta Unified School District is eligible to receive apportionments
6pursuant to the schedule and criteria for small necessary high
7schools set forth in Section 42284 if the school district has no more
8than 3,000 units of average daily attendance.

end delete
9begin insert

begin insertSEC. 198.end insert  

end insert

begin insertSection 42285.5 of the end insertbegin insertEducation Codeend insertbegin insert is amended
10to read:end insert

11

42285.5.  

(a) For purposes of subdivision (a) of Section 42284
12and Section 42285, a school district may include average daily
13attendance in grades 7 and 8 and the instructors of grade 7 and 8
14pupils in the calculation of average daily attendance and number
15of certificated employees employedbegin delete in the 2011-12 fiscal year if
16the school district included average daily attendance in grades 7
17and 8 and the instructors of grade 7 and 8 pupils in the calculation
18of average daily attendance and certificated employees employed
19in the 2010-11 fiscal yearend delete
.

20(b) Notwithstanding Sections 42284 and 42285, for purposes
21of this section, with respect to a school district eligible to utilize
22subdivision (a), any references to grades 9 to 12, inclusive, in
23Sections 42284 and 42285 shall be deemed instead to be references
24to grades 7 to 12, inclusive.

25begin insert

begin insertSEC. 199.end insert  

end insert

begin insertSection 42286 of the end insertbegin insertEducation Codeend insertbegin insert is amended
26to read:end insert

27

42286.  

(a) Except as required under subdivision (b), if a high
28school is determined to be a necessary small high school under
29Section 42285, that status shall not be changed except as a review
30of the determinative factors made everybegin delete fiveend deletebegin insert twoend insert years following
31the date of the determination indicates that the determination should
32be changed.

33(b) If a high school is determined to be a necessary small high
34school under paragraph (3) of subdivision (b) of Section 42285,
35that status shall not be changed except as a review of the
36determinative factors made every two years following the date of
37the determination indicates that the determination should be
38changed.

39(c) begin deleteAny end deletebegin insertA end inserthigh school that has not been determined to be a
40necessary small high school under Section 42285, may be
P219  1determined to be a necessary small high school at the beginning
2ofbegin delete anyend deletebegin insert aend insert fiscal year if it meets the criteria specified in Section
342285.

4begin insert

begin insertSEC. 200.end insert  

end insert

begin insertSection 42287 of the end insertbegin insertEducation Codeend insertbegin insert is amended
5to read:end insert

6

42287.  

begin insertCommencing with the 2013-14 fiscal year, the
7Superintendent shall increase the funding amounts specified in
8Sections 42281, 42282, and 42284 by an amount proportionate to
9the increase in the statewide average local control funding formula
10allocations pursuant to Section 42238.02, as implemented by
11Section 42238.03, for the then current fiscal year. end insert
For the 1984-85
12fiscal yearbegin delete and each fiscal year thereafter,end deletebegin insert to the 2012-13 fiscal
13year, inclusive,end insert
the Superintendentbegin delete of Public Instructionend delete shall
14increase the funding amounts specified in Sections 42281, 42282,
15and 42284 by an amount proportionate to the increase applied to
16the statewide average revenue limit for unified school districts for
17the then current fiscal year.

18begin insert

begin insertSEC. 201.end insert  

end insert

begin insertSection 42289 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
19

42289.  

Notwithstanding any other provision of law, for each
20fiscal year, prior to calculating the increase in funding amount
21specified in Section 42287, the Superintendent of Public Instruction
22shall increase the funding amounts specified in Sections 42281,
2342282, and 42284, by the product of subdivisions (a) and (b):

24(a) The amount per unit of average daily attendance received
25by the district pursuant to Section 46201 in the prior fiscal year.

26(b) The average daily attendance for each necessary small school
27and necessary small high school for which the district received
28funding in the prior fiscal year pursuant to Section 42281, 42282,
29or 42284, as appropriate.

end delete
30begin insert

begin insertSEC. 202.end insert  

end insert

begin insertSection 42289.1 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
31

42289.1.  

(a) Notwithstanding any other provision of law, for
32the 1988-89 fiscal year and each fiscal year thereafter, after
33calculating the increase in funding amounts specified in Section
3442287, the Superintendent of Public Instruction shall increase the
35funding amounts specified in Sections 42281, 42282, and 42284,
36by the sum of paragraphs (1) and (2):

37(1) Compute the product of subparagraphs (A) and (B):

38(A) The amount per unit of average daily attendance computed
39pursuant to subdivision (g) of Section 42240.

P220  1(B) The average daily attendance for each necessary small
2school and necessary small high school for which the district
3receives funding in the current fiscal year pursuant to Section
442281, 42282, or 42284, as appropriate.

5(2) Commencing in the 1990-91 fiscal year and each fiscal year
6thereafter, the amount computed pursuant to paragraph (1) shall
7be increased by the percentage cost-of-living increase given to
8school district revenue limits for the then current fiscal year.

end delete
9begin insert

begin insertSEC. 203.end insert  

end insert

begin insertSection 42289.2 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
10

42289.2.  

(a) Notwithstanding any other provision of law, for
11the 1989-90 fiscal year and each fiscal year thereafter, after
12calculating the increase in funding amounts specified in Section
1342287, the Superintendent of Public Instruction shall increase the
14funding amounts specified in Sections 42281, 42282, and 42284,
15by the sum of paragraphs (1) and (2):

16(1) Compute the product of subparagraphs (A) and (B):

17(A) The amount per unit of average daily attendance computed
18pursuant to subdivision (e) of Section 54060.5.

19(B) The average daily attendance for each necessary small
20school and necessary small high school for which the district
21receives funding in the current fiscal year pursuant to Section
2242281, 42282, or 42284, as appropriate.

23(2) Commencing in the 1990-91 fiscal year and each fiscal year
24thereafter, the amount computed pursuant to paragraph (1) shall
25be increased by the percentage cost-of-living increase given to
26school district revenue limits for the then current fiscal year.

end delete
27begin insert

begin insertSEC. 204.end insert  

end insert

begin insertSection 42289.3 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
28

42289.3.  

(a) Notwithstanding any other provision of law, for
29the 1989-90 fiscal year and each fiscal year thereafter, after
30calculating the increase in funding amounts specified in Section
3142287, the Superintendent of Public Instruction shall increase the
32funding amounts specified in Sections 42281, 42282, and 42284,
33by the sum of paragraphs (1) and (2):

34(1) Compute the product of subparagraphs (A) and (B):

35(A) The amount per unit of average daily attendance computed
36pursuant to subdivision (e) of Section 54060.6.

37(B) The average daily attendance for each necessary small
38school and necessary small high school for which the district
39receives funding in the current fiscal year pursuant to Section
4042281, 42282, or 42284, as appropriate.

P221  1(2) Commencing in the 1990-91 fiscal year and each fiscal year
2thereafter, the amount computed pursuant to paragraph (1) shall
3be increased by the percentage cost-of-living increase given to
4school district revenue limits for the then current fiscal year.

end delete
5begin insert

begin insertSEC. 205.end insert  

end insert

begin insertSection 42289.4 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
6

42289.4.  

(a) Notwithstanding any other provision of law, for
7the 1989-90 fiscal year and each fiscal year thereafter, after
8calculating the increase in funding amounts specified in Section
942287, the Superintendent of Public Instruction shall increase the
10funding amounts specified in Sections 42281, 42282, and 42284,
11by the sum of paragraphs (1) and (2):

12(1) Compute the product of subparagraphs (A) and (B):

13(A) The amount per unit of average daily attendance computed
14pursuant to subdivision (b) of Section 54060.7.

15(B) The average daily attendance for each necessary small
16school and necessary small high school for which the district
17receives funding in the current fiscal year pursuant to Section
1842281, 42282, or 42284, as appropriate.

19(2) Commencing in the 1990-91 fiscal year and each fiscal year
20thereafter, the amount computed pursuant to paragraph (1) shall
21be increased by the percentage cost-of-living increase given to
22school district revenue limits for the then current fiscal year.

end delete
23begin insert

begin insertSEC. 206.end insert  

end insert

begin insertSection 42289.5 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
24

42289.5.  

Notwithstanding any other provision of law, the
25increases determined pursuant to Sections 42289, 42289.1, 42289.3,
26and 42289.4 shall be permanently increased for the 1998-99 fiscal
27year by the quotient, for each district eligible for an increase, of
28the amount determined pursuant to subparagraph (B) of paragraph
29(3) of subdivision (a) of Section 42238.8 divided by the amount
30determined pursuant to subparagraph (C) of paragraph (3) of
31subdivision (a) of Section 42238.8.

end delete
32begin insert

begin insertSEC. 207.end insert  

end insert

begin insertSection 42289.6 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
33

42289.6.  

(a) It is the intent of the Legislature that the Quality
34Education Commission review the eligibility provisions for the
35establishment of necessary small schools as specified in Sections
3642280, 42282, 42283, 42284, and 42285, including the following:

37(1) The appropriate size for a necessary small elementary school,
38a necessary small middle school, and a necessary small high school.

39(2) Whether mileage and other eligibility requirements are
40appropriate or need to be modified.

P222  1(b) It is further the intent of the Legislature that by January 1,
22006, the Quality Education Commission recommend to the
3Legislature modifications regarding the size, eligibility
4requirements, and funding of necessary small schools.

end delete
5begin insert

begin insertSEC. 208.end insert  

end insert

begin insertArticle 4.5 (commencing with Section 42290) of
6Chapter 7 of Part 24 of Division 3 of Title 2 of the end insert
begin insertEducation Codeend insert
7begin insert is repealed.end insert

8begin insert

begin insertSEC. 209.end insert  

end insert

begin insertArticle 4.7 (commencing with Section 42300) of
9Chapter 7 of Part 24 of Division 3 of Title 2 of the end insert
begin insertEducation Codeend insert
10begin insert is repealed.end insert

11begin insert

begin insertSEC. 210.end insert  

end insert

begin insertSection 42401 of the end insertbegin insertEducation Codeend insertbegin insert is amended
12to read:end insert

13

42401.  

(a) Revenues from any transactions and use tax
14imposed pursuant to Chapter 3.5 (commencing with Section
157288.1) of Part 1.7 of Division 2 of the Revenue and Taxation
16Code shall not be considered “allocated local proceeds of taxes”
17pursuant to Section 41202 of the Education Code or paragraph (2)
18of subdivision (b) of Section 8 of Article XVI of the California
19Constitution.

20(b) Revenues derived from any transactions and use tax imposed
21pursuant to Chapter 3.5 (commencing with Section 7288.1) of Part
221.7 of Division 2 of the Revenue and Taxation Code shall
23supplement, and shall not be offset against, the allocations made
24pursuant tobegin delete Section 2558 or 42238end deletebegin insert Section 2575 or 42238.02, as
25implemented pursuant to Section 42238.03,end insert
of the Education Code.

26begin insert

begin insertSEC. 211.end insert  

end insert

begin insertSection 42604 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
27

42604.  

Notwithstanding any other provisions of law, the
28computation of reimbursement for the costs of attendance specified
29in contractual agreements through which educational services are
30provided by other than the district or county in which a pupil
31resides shall be based on the revenue per average daily attendance
32received by the school district or county in which the pupil resides
33rather than the computed revenue limit or foundation program per
34average daily attendance of the district or county of residence.

end delete
35begin insert

begin insertSEC. 212.end insert  

end insert

begin insertSection 42605 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
36

42605.  

(a) (1) Unless otherwise prohibited under federal law
37or otherwise specified in subdivision (e), for the 2008-09 fiscal
38year to the 2014-15 fiscal year, inclusive, recipients of funds from
39the items listed in paragraph (2) may use funding received, pursuant
40to subdivision (b), from any of these items listed in paragraph (2)
P223  1that are contained in Section 2.00 of the annual Budget Act, for
2any educational purpose.

3(2) Items 6110-104-0001, 6110-105-0001, 6110-108-0001,
46110-122-0001, 6110-124-0001, 6110-137-0001, 6110-144-0001,
56110-150-0001, 6110-151-0001, 6110-156-0001, 6110-181-0001,
66110-188-0001, 6110-189-0001, 6110-190-0001, 6110-193-0001,
76110-195-0001, 6110-198-0001, 6110-204-0001, 6110-208-0001,
86110-209-0001, 6110-211-0001, 6110-227-0001, 6110-228-0001,
96110-232-0001, 6110-240-0001, 6110-242-0001, 6110-243-0001,
106110-244-0001, 6110-245-0001, 6110-246-0001, 6110-247-0001,
116110-248-0001, 6110-260-0001, 6110-265-0001, 6110-266-0001,
126110-267-0001, 6110-268-0001, and 6360-101-0001 of Section
132.00.

14(b) (1) For the 2009-10 fiscal year to the 2014-15 fiscal year,
15inclusive, the Superintendent or other administering state agency,
16as appropriate, shall apportion from the amounts provided in the
17annual Budget Act for the items enumerated in paragraph (2) of
18subdivision (a) an amount to recipients based on the same relative
19proportion that the recipient received in the 2008-09 fiscal year
20for the programs funded through the items enumerated in paragraph
21(2) of subdivision (a).

22(2) This section and Section 42 of Chapter 12 of the Third
23Extraordinary Session of the Statutes of 2009 do not authorize a
24school district that receives funding on behalf of a charter school
25pursuant to Sections 47634.1 and 47651 to redirect this funding
26for another purpose unless otherwise authorized in law or pursuant
27to an agreement between a charter school and its chartering
28authority. Notwithstanding paragraph (1), for the 2008-09 fiscal
29year to the 2014-15 fiscal year, inclusive, a school district that
30receives funding on behalf of a charter school pursuant to Sections
3147634.1 and 47651 shall continue to distribute the funds to those
32charter schools based on the relative proportion that the school
33district distributed in the 2007-08 fiscal year, and shall adjust those
34amounts to reflect changes in charter school attendance in the
35district. The amounts allocated shall be adjusted for any greater
36or lesser amount appropriated for the items enumerated in
37paragraph (2) of subdivision (a). For a charter school that began
38operation in the 2008-09 fiscal year, if a school district received
39funding on behalf of that charter school pursuant to Sections
4047634.1 and 47651, the school district shall continue to distribute
P224  1the funds to that charter school based on the relative proportion
2that the school district distributed in the 2008-09 fiscal year and
3shall adjust the amount of those funds to reflect changes in charter
4school attendance in the district. The amounts allocated shall be
5adjusted for any greater or lesser amount appropriated for the items
6enumerated in paragraph (2) of subdivision (a).

7(3) Notwithstanding paragraph (1), for the 2008-09 fiscal year
8to the 2014-15 fiscal year, inclusive, the Superintendent shall
9apportion from the amounts appropriated by Item 6110-211-0001
10of Section 2.00 of the annual Budget Act an amount to a charter
11school in accordance with the per-pupil methodology prescribed
12in subdivision (c) of Section 47634.1.

13(4) Notwithstanding paragraph (1), for the 2008-09 fiscal year
14to the 2014-15 fiscal year, inclusive, the Superintendent shall
15apportion from the amounts provided in the annual Budget Act an
16amount to a school district, charter school, and county office of
17education based on the same relative proportion that the local
18educational agency received in the 2007-08 fiscal year for the
19programs funded through the following items contained in Section
202.00 of the annual Budget Act: 6110-104-0001, 6110-105-0001,
216110-156-0001, 6110-190-0001, Schedule (3) of 6110-193-0001,
226110-198-0001, 6110-232-0001, and Schedule (2) of
236110-240-0001.

24(5) For purposes of paragraph (4), if a direct-funded charter
25school began operation in the 2008-09 fiscal year, the amount that
26the charter school was entitled to receive from the items
27enumerated in paragraph (4) for the 2008-09 fiscal year, as certified
28by the Superintendent in March 2009, is deemed to have been
29received in the 2007-08 fiscal year.

30(c) (1) This section does not obligate the state to refund or repay
31reductions made pursuant to this section. A decision by a school
32district to reduce funding pursuant to this section for a
33state-mandated local program shall constitute a waiver of the
34subvention of funds that the school district is otherwise entitled to
35pursuant to Section 6 of Article XIII B of the California
36Constitution on the amount so reduced.

37(2) (A) As a condition of receipt of funds, the governing board
38of the school district or governing board of the county office of
39education, as appropriate, at a regularly scheduled open public
40hearing shall take testimony from the public, discuss, approve or
P225  1disapprove the proposed use of funding, and make explicit for each
2of the budget items in paragraph (2) of subdivision (a) the purposes
3for which the funds will be used.

4(B) The regularly scheduled open public hearing held pursuant
5to subparagraph (A) shall be held before and independent of a
6meeting where the governing board of the school district or
7governing board of the county office of education adopts a budget.
8If the governing board intends to close a program funded by the
9items listed in paragraph (2) of subdivision (a), the governing board
10shall identify, in the notice of the agenda of the public hearing or
11at another public hearing, the program or programs proposed to
12be closed.

13(3) Using the Standardized Account Code Structure reporting
14process, a local educational agency shall report expenditures of
15funds pursuant to the authority of this section by using the
16appropriate function codes to indicate the activities for which these
17funds are expended. The department shall collect and provide this
18information to the Department of Finance and the appropriate
19policy and budget committees of the Legislature by April 15, 2010,
20and annually thereafter on April 15 until, and including, April 15,
212016.

22(d) For the 2008-09 fiscal year to the 2014-15 fiscal year,
23inclusive, local educational agencies that use the flexibility
24provision of this section shall be deemed to be in compliance with
25the program and funding requirements contained in statutory,
26regulatory, and provisional language, associated with the items
27enumerated in subdivision (a).

28(e) Notwithstanding subdivision (d), the following requirements
29shall continue to apply:

30(1) For Item 6110-105-0001 of Section 2.00 of the annual
31Budget Act, the amount authorized for flexibility shall exclude the
32funding provided to fund remedial educational services pursuant
33to Provision 4. For Item 6110-156-0001 of Section 2.00 of the
34annual Budget Act, the amount authorized for flexibility shall
35exclude the funding provided for instruction of CalWORKs-eligible
36students pursuant to Schedules (2) and (3) and Provisions 2 and
374.

38(2) (A) Any instructional materials purchased by a local
39educational agency for kindergarten and grades 1 to 8, inclusive,
40and for grades 9 to 12, inclusive, shall be aligned with the state
P226  1standards adopted pursuant to Section 60605 or 60605.8, and shall
2also meet the reporting and sufficiency requirements contained in
3Section 60119.

4(B) For purposes of this section, “sufficiency” means that each
5pupil has sufficient textbooks and instructional materials in the
6four core areas as defined by Section 60119 and that all pupils
7within the local educational agency who are enrolled in the same
8course shall have identical textbooks and instructional materials,
9as specified in Section 1240.3.

10(3) For Item 6110-195-0001 of Section 2.00 of the annual
11Budget Act, the item shall exclude moneys that are required to
12fund awards for teachers that have previously met the requirements
13necessary to obtain these awards, until the award is paid in full.

14(4) For Item 6110-266-0001 of Section 2.00 of the annual
15Budget Act, a county office of education shall conduct at least one
16site visit to each of the required schoolsites pursuant to Section
171240 and shall fulfill all of the duties set forth in Sections 1240
18and 44258.9.

19(5) For Item 6110-198-0001 of Section 2.00 of the annual
20Budget Act, a school district or county office of education that
21operates the child care component of the Cal-SAFE program shall
22comply with paragraphs (5) and (6) of subdivision (c) of Section
2354746.

24(f) This section does not invalidate any state law pertaining to
25teacher credentialing requirements or the functions that require
26credentials.

end delete
27begin insert

begin insertSEC. 213.end insert  

end insert

begin insertSection 42606 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
28

42606.  

(a) To the extent funds are provided, for the 2010-11
29to the 2014-15 fiscal years, inclusive, the Superintendent shall
30allocate a supplemental categorical block grant to a charter school
31that began operation during or after the 2008-09 fiscal year. These
32supplemental categorical block grant funds may be used for any
33educational purpose. Commencing in the 2011-12 fiscal year, a
34locally or direct funded charter school that converted from a
35preexisting school between the 2008-09 and 2014-15 fiscal years,
36inclusive, is not eligible for funding specified in this section. A
37charter school that receives funding pursuant to this subdivision
38shall not receive additional funding for programs specified in
39paragraph (2) of subdivision (a) of Section 42605, with the
P227  1exception of the program funded pursuant to Item 6110-211-0001
2of Section 2.00 of the annual Budget Act.

3(b) (1) For the 2010-11 fiscal year, the supplemental categorical
4block grant shall equal one hundred twenty-seven dollars ($127)
5per unit of charter school average daily attendance as determined
6at the 2010-11 second principal apportionment for charter schools
7commencing operations during or after the 2008-09 fiscal year.
8A locally funded charter school that converted from a preexisting
9school during or after the 2008-09 fiscal year is not eligible for
10funding specified in this section.

11(2) For the 2011-12 to the 2014-15 fiscal years, inclusive, the
12supplemental categorical block grant shall equal one hundred
13twenty-seven dollars ($127) per unit of charter school average
14daily attendance as determined at the current year second principal
15apportionment for charter schools commencing operations during
16or after the 2008-09 fiscal year. In lieu of this supplemental grant,
17a school district shall provide new conversion charter schools that
18commenced operations within the district during or after the
192008-09 fiscal year, one hundred twenty-seven dollars ($127) per
20unit of charter school average daily attendance as determined at
21the current year second principal apportionment. This paragraph
22does not preclude a school district and a new conversion charter
23school from negotiating an alternative funding rate. Absent
24agreement from both parties on an alternative rate, the school
25district shall be obligated to provide funding at the one hundred
26twenty-seven dollars ($127) per average daily attendance rate.

end delete
27begin insert

begin insertSEC. 214.end insert  

end insert

begin insertSection 42800 of the end insertbegin insertEducation Codeend insertbegin insert is amended
28to read:end insert

29

42800.  

(a) The governing board ofbegin delete anyend deletebegin insert aend insert school district may,
30with the consent of the county superintendent of schools, establish
31a revolving cash fund for the use of the chief accounting officer
32of thebegin insert schoolend insert district, by adopting a resolution setting forth the
33necessity for the revolving cash fund, the officer for whom and
34the purposes for which the revolving cash fund shall be available,
35and the amount of the fund. The purposes for which the revolving
36cash fund shall be available shall include the purposes specified
37in Section 45167. Three certified copies of the resolution shall be
38transmitted to the county superintendent of schools. If he approves
39the establishment of the fund, the county superintendent shall
40endorse his consent on the resolution and return one copy to the
P228  1governing body of thebegin insert schoolend insert district, and transmit one copy to the
2county auditor.

3(b) The maximum amount allowed for revolving cash funds
4established pursuant to subdivision (a) shall be the lesser of:

5(1) Two percent of the district’s estimated expenditures for the
6current fiscal year, or

7(2) A dollar amount limit of seventy-five thousand dollars
8($75,000) for any elementary school or high school district and
9one hundred fifty thousand dollars ($150,000) for any unified
10school district for fiscal year 1990-91. The dollar amount limit
11for eachbegin insert schoolend insert district shall thereafter be increased annually by
12the percentage increase in thebegin insert schoolend insert district’sbegin delete revenue limit
13established by Section 42238end delete
begin insert local control funding formula
14allocation established pursuant to Section 42238.02, as
15implemented pursuant to Section 42238.03end insert
.

16begin insert

begin insertSEC. 215.end insert  

end insert

begin insertChapter 11.3 (commencing with Section 42920) of
17Part 24 of Division 3 of Title 2 of the end insert
begin insertEducation Codeend insertbegin insert is repealed.end insert

18begin insert

begin insertSEC. 216.end insert  

end insert

begin insertChapter 11.5 (commencing with Section 42950) of
19Part 24 of Division 3 of Title 2 of the end insert
begin insertEducation Codeend insertbegin insert is repealed.end insert

20begin insert

begin insertSEC. 217.end insert  

end insert

begin insertChapter 12 (commencing with Section 43001.5) of
21Part 24 of Division 3 of Title 2 of the end insert
begin insertEducation Codeend insertbegin insert is repealed.end insert

22begin insert

begin insertSEC. 218.end insert  

end insert

begin insertSection 44279.2 of the end insertbegin insertEducation Codeend insertbegin insert is amended
23to read:end insert

24

44279.2.  

(a) The Superintendent and the commission shall
25jointly administer the California Beginning Teacher Support and
26Assessment System pursuant to this chapter. In administering this
27section, the Superintendent and the commission shall provide or
28contract for the provision of all of the following:

29(1) Establishing requirements for reviewing and approving
30teacher induction programs.

31(2) Developing and administering a system for ensuring teacher
32induction program quality and effectiveness. For purposes of this
33section, “program effectiveness” means producing excellent
34program outcomes in relation to the purposes defined in subdivision
35(b) of Section 44279.1. For purposes of this section, “program
36 quality” means excellence with respect to program factors,
37including, but not limited to, all of the following:

38(A) Program goals.

39(B) Design resources.

40(C) Management, evaluation, and improvement of the program.

P229  1(D) School context and working conditions.

2(E) Support and assessment services to each beginning teacher.

3(3) Developing purposes and functions for reviewing and
4approving supplemental grants and standards for program clusters
5and program consultants, as defined pursuant to Section 44279.7.

6(4) Improving and refining the formative assessment system.

7(5) Improving and refining professional development materials
8and strategies for all personnel involved in implementing induction
9programs.

10(6) Conducting and tracking research related to beginning
11teacher induction.

12(7) Periodically evaluating the validity of the California
13Standards for the Teaching Profession adopted by the commission
14and the Standards of Quality and Effectiveness for Beginning
15Teacher Support and Assessment Program adopted by the
16commission and making changes to those documents, as necessary.

17(b) As part of the California Beginning Teacher Support and
18Assessment System, the commission and the Superintendent shall
19establish requirements for local teacher induction programs.

20(c) A school district or consortium of school districts maybegin delete apply
21to the Superintendent for funding toend delete
establish a local teacher
22induction program pursuant to this sectionbegin delete. From amounts
23appropriated for purposes of this section, the Superintendent shall
24allocate three thousand dollars ($3,000) for each beginning teacher
25participating in the program. That amount shall be adjusted each
26fiscal year by the inflation factor set forth in Section 42238.1. To
27be eligible to receive funding, a school district or consortium of
28school districtsend delete
begin insert thatend insert shall, at a minimum, meet all of the following
29requirements:

30(1) Develop, implement, and evaluate teacher induction
31programs that meet the Quality and Effectiveness for Beginning
32Teacher Induction Program Standards adopted by the commission.

33(2) Support beginning teachers in meeting the competencies
34described in the California Standards for the Teaching Profession
35adopted by the commission.

36(3) Meet criteria for the cost-effective delivery of program
37services.

begin delete

38(4) From amounts received from local, state, or resources
39available for purposes of teacher induction programs, contribute
P230  1not less than two thousand dollars ($2,000) for the costs of each
2beginning teacher served in the induction program.

end delete
begin delete

3(d) Teachers who have received their preliminary credential in
4a district intern program pursuant to Article 7.5 (commencing with
5Section 44325) or an intern program pursuant to Article 3
6(commencing with Section 44450) of Chapter 3 and who are
7participating in an induction program pursuant to this section are
8not eligible for funding pursuant to Article 11 (commencing with
9Section 44380) of Chapter 2.

end delete
10begin insert

begin insertSEC. 219.end insert  

end insert

begin insertSection 44279.25 of the end insertbegin insertEducation Codeend insertbegin insert is amended
11to read:end insert

begin delete
12

44279.25.  

(a) By December 1, 2007, the Superintendent and
13the commission shall report to the Legislature and the Governor
14on the current state of the Beginning Teacher Support and
15Assessment System. The report shall review the articulation of
16teacher preparation programs and teacher induction programs to
17eliminate duplicative requirements and, at a minimum, do all of
18the following:

19(1) Recommend revisions to laws, regulations, or policies to
20eliminate duplicative requirements between teacher preparation
21and teacher induction programs, with particular attention paid to
22eliminating duplication between induction requirements and
23requirements for completion of state-approved alternative
24certification programs.

25(2) Recommend revisions to the system to ensure that teacher
26credential candidates achieve teaching competence and programs
27use best practices to transition candidates from teacher preparation
28programs to induction programs.

29(3) Recommend ways to ensure that beginning teachers receive
30direct assistance from experienced teachers who are familiar with
31the grade span, subject matter, and teaching and classroom
32management techniques appropriate to the teaching assignment of
33each beginning teacher.

34(b) By July 1, 2008, the Superintendent and the commission
35shall review and revise, as necessary, the Standards of Quality and
36Effectiveness for Professional Teacher Induction Programs of
37March 2002 to ensure that these standards address the application
38of knowledge and skills previously acquired in a preliminary
39credential program and to remove any requirements or activities
40that require candidates to duplicate the acquisition of knowledge
P231  1through coursework. This review shall include, but need not be
2limited to, all of the following:

3(1) A review of formative assessment systems in use to ensure
4that the systems are appropriately flexible and may be adapted to
5reflect progress of individual candidates.

6(2) A review of professional development provided to induction
7participants to ensure that it is not duplicative of coursework
8completed during teacher preparation.

9(3) A review of new teacher support to ensure that the focus is
10on application and enhancement of skills and knowledge acquired
11in a preliminary credential program.

12(4) Recommendations for program monitoring with respect to
13this subdivision.

14(c)

end delete
15begin insert

begin insert44279.25.end insert  

end insert

begin insert(a)end insert In consultation with the Superintendent, the
16commission shall revise the formative assessment system for
17beginning teachers, as necessary to ensure that related tasks and
18activities are aligned to the revised standardsbegin insert adopted pursuant to
19subdivision (c)end insert
.

begin delete

20(d)

end delete

21begin insert(b)end insert The Superintendent and the commission shall identify
22effective practices and techniques and provide for the dissemination
23of these to local induction program providers.

begin delete

24(e)

end delete

25begin insert(c)end insert Immediately following the adoptionbegin insert by the commissionend insert of
26revised standardsbegin delete pursuant to subdivision (b),end delete the commission shall
27review induction programs to determine whether local teacher
28induction programs are meeting standards of quality and
29effectivenessbegin delete adopted pursuant to subdivision (b)end delete and to assure
30greater program quality and consistency. The commission shall
31schedule regular reviews following the initial review of programs
32pursuant to this subdivision.

begin delete

33(f)

end delete

34begin insert(d)end insert The Superintendent and the commission shall ensure that
35teacher credential candidates are notified of the opportunity to
36choose an early completion option pursuant to Section 44468.

begin delete

37(g) It is the intent of the Legislature that funds appropriated in
38Provision 44 of Item 6110-001-0890 of Section 2.00 of the Budget
39Act of 2006 (Chapter 47 of the Statutes of 2006) be made available
40for reviews and preparation of the reports required pursuant to
P232  1subdivisions (a) and (b), and that the implementation of
2recommendations proceed immediately following the adoption of
3those reviews and reports.

end delete
4begin insert

begin insertSEC. 220.end insert  

end insert

begin insertSection 44279.7 of the end insertbegin insertEducation Codeend insertbegin insert is amended
5to read:end insert

begin delete
6

44279.7.  

(a) The superintendent and the commission shall
7award supplemental grants on a competitive basis to Beginning
8Teacher Support and Assessment System teacher induction
9programs established pursuant to Section 44279.2 that are identified
10as having expertise according to criteria established by the
11superintendent and the commission. The supplemental grants
12received pursuant to this section shall be expended to assist clusters
13of teacher induction programs operated by school districts or
14consortiums of school districts.

15(b)

end delete
16begin insert

begin insert44279.7.end insert  

end insert

begin insert(a)end insert Thebegin delete superintendentend deletebegin insert Superintendentend insert and the
17commission shall designate each school district and consortium
18of school districts participating in the Beginning Teacher Support
19and Assessment System established pursuant to Section 44279.2
20as belonging to a cluster according to the criteria established
21pursuant to this subdivision. Forbegin delete theend delete purposes of this section
22“cluster” means a cluster of school districts or consortium of school
23districts established pursuant this section. Thebegin delete superintendentend delete
24begin insert Superintendentend insert and the commission shall establish criteria for the
25formation of school districts or consortiums of school district
26teacher induction program clusters based upon, but not necessarily
27be limited to, all of the following:

28(1) Geographic proximity.

29(2) Program size.

30(3) The number of beginning teachers served.

31(4) The similarity of teacher characteristics and pupil populations
32in each school district.

begin delete

33(c)

end delete

34begin insert(b)end insert School districts and consortiums of school districtsbegin delete awarded
35supplemental grants pursuant to this section shallend delete
begin insert mayend insert identify a
36teacher induction program consultant to assist the school district
37or consortiums of school districts forming a cluster. The
38begin delete superintendentend deletebegin insert Superintendentend insert and the commission shall identify
39the purpose and functions of each consultant. Those purposes and
P233  1functions shall include, but not necessarily be limited to, all the
2following:

3(1) Assisting in designing, implementing, refining, and
4evaluating their teacher induction programs.

5(2) Assisting in building the capacity to provide professional
6development for all personnel involved in the implementation of
7teacher induction programs, including, but not limited to, beginning
8teachers, support providers, and administrators.

9(3) Disseminating information on teacher induction programs
10to all interested participants within the cluster and collaborating
11with other consultants statewide and with state administrative
12agency staff to ensure ongoing program improvement.

begin delete

13(d) The superintendent and the commission shall ensure that
14each grant awarded pursuant to this section supports the salary and
15benefits and other related costs based on the prorated amount of
16time dedicated to this function for a consultant to assist each
17cluster.

end delete
18begin insert

begin insertSEC. 221.end insert  

end insert

begin insertSection 44320 of the end insertbegin insertEducation Codeend insertbegin insert is amended
19to read:end insert

20

44320.  

(a) Professional preparation, including student teaching,
21shall be made available in the upper division course offerings at
22all California public institutions of higher learning, except the
23California Maritime Academy and the Hastings College of the
24Law. No more than nine semester units, or the equivalent, of
25professional education courses may be designated as prerequisites
26for purposes of admission to student teaching, except that, to satisfy
27the English language requirement as set forth in paragraph (3) of
28subdivision (b) of Section 44259, candidates may be required to
29take 12 semester units, or the equivalent, as professional education
30prerequisites to student teaching.

31(b) The commission shall encourage postsecondary institutions
32that offer programs of professional preparation to collaborate with
33school districts, county offices of education, and professional
34organizations in the design and delivery of local programs to
35function as part of the California beginning teacher support and
36assessment program pursuant to Section 44279.2. If local
37educational agencies and institutions of higher education
38voluntarily agree to implement the program, the following
39provisions shall apply to each collaborative effort:

P234  1(1) Postsecondary institutions and local education agencies shall
2coordinate and articulate the program of professional preparation
3and the beginning teacher support and assessment program, so the
4two programs provide continuity in the preparation, support, and
5assessment of beginning teachers.

6(2) At the discretion of a postsecondary institution that
7participates in a collaborative effort, the program of professional
8preparation may be submitted to the commission for approval as
9a program of preparation, support, and assessment that is at least
10two years long.

11(3) In each program of preparation, support, and assessment,
12the postsecondary institution shall make it possible for each
13candidate to complete all requirements for a valid teaching
14credential in the equivalent of one year of full-time study.

15(4) A postsecondary institution that participates in a
16collaborative effort may, at its discretion, determine that successful
17completion of the support and assessment components of an
18articulated program of professional preparation, support, and
19assessment fulfills some or all of the requirements of subdivision
20(c) of Section 44259, and may accordingly recommend applicants
21for the professional teaching credential. The standards and criteria
22for making these determinations and recommendations shall be
23included in the institution’s proposal for a program.

24(5) A local educational agency that collaborates, at its own
25discretion, with a postsecondary education institution in the design
26and delivery of an articulated program of professional preparation,
27support, and assessment that meets the standards and criteria
28pursuant to subdivision (c) of Section 44279.2,begin delete and that receives
29funds pursuant to the annual Budget Act,end delete
may contract with the
30postsecondary institution to pay the institution’s costs of designing
31and delivering the support and assessment components of the
32program.

33(c) Local educational agencies that are approved by the
34commission to provide programs of personalized preparation to
35candidates for designated subjects teaching credentials are
36 encouraged to participate in the design and delivery of local
37programs under the California beginning teacher support and
38assessment program pursuant to Article 4.5 (commencing with
39Section 44279.2), in a manner consistent with subdivision (b).

P235  1(d) begin deletePrior to end deletebegin insertBefore end insertadmission to either student teaching under
2any professional preparation program approved by the commission,
3or participation in a field experience program as described in
4Section 44324, a candidate for a credential shall obtain a certificate
5of clearance from the commission which shall be issued when the
6commission has verified the candidate’s personal identification
7and health status. The fee for the certificate of clearance shall not
8exceed one-half of the regular fee for a credential and shall be
9deducted from the fee for the initial credential applied for by the
10certificate holder.

11begin insert

begin insertSEC. 222.end insert  

end insert

begin insertSection 44328 of the end insertbegin insertEducation Codeend insertbegin insert is amended
12to read:end insert

13

44328.  

(a) Unless the commission determines that substantial
14evidence exists that a person is unqualified to teach, upon the
15completion of successful service as a district intern pursuant to
16subdivision (b) of Section 44325, and upon the recommendation
17of the school district governing board, the commission shall award
18preliminary credentials to district interns in the same manner as
19applicants recommended for credentials by institutions that operate
20approved programs of professional preparation.

21(b) Notwithstanding paragraphs (1) and (2) of subdivision (a)
22of Section 44225, paragraphs (3), (4), (5), and (6) of subdivision
23(b) of Section 44259, paragraphs (1), (2), (3), and (4) of subdivision
24(c) of Section 44259, and Sections 44261, 44265, and 44335, upon
25 recommendation by the governing board, district interns shall be
26issued preliminary credentials, upon the completion of successful
27service as a teacher pursuant to subdivision (b) of Section 44325,
28unless the governing board recommends, and the commission finds
29substantial evidence, that the person is not qualified to teach. A
30school district may require a district intern who is pursuing a clear
31credential to complete an approved induction program if funds are
32available or approved coursework in accordance with paragraph
33(5) of subdivision (c) of Section 44259.begin delete Pursuant to Article 11
34(commencing with Section 44380), teachers participating in an
35induction program pursuant to Article 4.5 (commencing with
36Section 44279.1) are no longer eligible for funding under the
37district intern program.end delete

38(c) Notwithstanding Section 44261, the preliminary credential
39awarded to any district intern holding a district intern credential
40to teach bilingual education classes shall be a basic teaching
P236  1credential with a bilingual-crosscultural language and academic
2development emphasis. Notwithstanding Section 44265, the
3preliminary credential awarded to any district intern who holds a
4district intern credential to teach special education pupils shall be
5a special education specialist instruction credential that authorizes
6the holder to teach special education pupils.

7(d) It is the intent of the Legislature that institutions of higher
8education that operate approved programs of professional
9preparation work cooperatively with school districts that offer
10district intern programs for a special education specialist credential
11to apply the regular education coursework and fieldwork from the
12special education district intern program toward earning a multiple
13or single subject teaching credential through the institution.

14begin insert

begin insertSEC. 223.end insert  

end insert

begin insertArticle 11 (commencing with Section 44380) of
15Chapter 2 of Part 25 of Division 3 of Title 2 of the end insert
begin insertEducation Codeend insert
16begin insert is repealed.end insert

17begin insert

begin insertSEC. 224.end insert  

end insert

begin insertArticle 12 (commencing with Section 44390) of
18Chapter 2 of Part 25 of Division 3 of Title 2 of the end insert
begin insertEducation Codeend insert
19begin insert is repealed.end insert

20begin insert

begin insertSEC. 225.end insert  

end insert

begin insertArticle 13 (commencing with Section 44395) of
21Chapter 2 of Part 25 of Division 3 of Title 2 of the end insert
begin insertEducation Codeend insert
22begin insert is repealed.end insert

23begin insert

begin insertSEC. 226.end insert  

end insert

begin insertArticle 4.5 (commencing with Section 44500) of
24Chapter 3 of Part 25 of Division 3 of Title 2 of the end insert
begin insertEducation Codeend insert
25begin insert is repealed.end insert

26begin insert

begin insertSEC. 227.end insert  

end insert

begin insertArticle 5 (commencing with Section 44520) of
27Chapter 3 of Part 25 of Division 3 of Title 2 of the end insert
begin insertEducation Codeend insert
28begin insert is repealed.end insert

29begin insert

begin insertSEC. 228.end insert  

end insert

begin insertArticle 6 (commencing with Section 44560) of
30Chapter 3 of Part 25 of Division 3 of Title 2 of the end insert
begin insertEducation Codeend insert
31begin insert is repealed.end insert

32begin insert

begin insertSEC. 229.end insert  

end insert

begin insertArticle 7 (commencing with Section 44570) of
33Chapter 3 of Part 25 of Division 3 of Title 2 of the end insert
begin insertEducation Codeend insert
34begin insert is repealed.end insert

35begin insert

begin insertSEC. 230.end insert  

end insert

begin insertArticle 8 (commencing with Section 44580) of
36Chapter 3 of Part 25 of Division 3 of Title 2 of the end insert
begin insertEducation Codeend insert
37begin insert is repealed.end insert

38begin insert

begin insertSEC. 231.end insert  

end insert

begin insertArticle 10 (commencing with Section 44630) of
39Chapter 3 of Part 25 of Division 3 of Title 2 of the end insert
begin insertEducation Codeend insert
40begin insert is repealed.end insert

P237  1begin insert

begin insertSEC. 232.end insert  

end insert

begin insertArticle 10.5 (commencing with Section 44645) of
2Chapter 3 of Part 25 of Division 3 of Title 2 of the end insert
begin insertEducation Codeend insert
3begin insert is repealed.end insert

4begin insert

begin insertSEC. 233.end insert  

end insert

begin insertArticle 10.6 (commencing with Section 44650) of
5Chapter 3 of Part 25 of Division 3 of Title 2 of the end insert
begin insertEducation Codeend insert
6begin insert is repealed.end insert

7begin insert

begin insertSEC. 234.end insert  

end insert

begin insertArticle 3 (commencing with Section 44681) of
8Chapter 3.1 of Part 25 of Division 3 of Title 2 of the end insert
begin insertEducation
9Code
end insert
begin insert is repealed.end insert

10begin insert

begin insertSEC. 235.end insert  

end insert

begin insertChapter 3.3 (commencing with Section 44700) of
11Part 25 of Division 3 of Title 2 of the end insert
begin insertEducation Codeend insertbegin insert is repealed.end insert

12begin insert

begin insertSEC. 236.end insert  

end insert

begin insertChapter 3.33 (commencing with Section 44720) of
13Part 25 of Division 3 of Title 2 of the end insert
begin insertEducation Codeend insertbegin insert is repealed.end insert

14begin insert

begin insertSEC. 237.end insert  

end insert

begin insertChapter 3.34 (commencing with Section 44730) of
15Part 25 of Division 3 of Title 2 of the end insert
begin insertEducation Codeend insertbegin insert is repealed.end insert

16begin insert

begin insertSEC. 238.end insert  

end insert

begin insertChapter 3.36 (commencing with Section 44735) of
17Part 25 of Division 3 of Title 2 of the end insert
begin insertEducation Codeend insertbegin insert is repealed.end insert

18begin insert

begin insertSEC. 239.end insert  

end insert

begin insertChapter 3.45 (commencing with Section 44755) of
19Part 25 of Division 3 of Title 2 of the end insert
begin insertEducation Codeend insertbegin insert is repealed.end insert

20begin insert

begin insertSEC. 240.end insert  

end insert

begin insertChapter 3.5 (commencing with Section 44760) of
21Part 25 of Division 3 of Title 2 of the end insert
begin insertEducation Codeend insertbegin insert is repealed.end insert

22begin insert

begin insertSEC. 241.end insert  

end insert

begin insertSection 44944 of the end insertbegin insertEducation Codeend insertbegin insert is amended
23to read:end insert

24

44944.  

(a) (1) In a dismissal or suspension proceeding initiated
25pursuant to Section 44934, if a hearing is requested by the
26employee, the hearing shall be commenced within 60 days from
27the date of the employee’s demand for a hearing. The hearing shall
28be initiated, conducted, and a decision made in accordance with
29Chapter 5 (commencing with Section 11500) of Part 1 of Division
303 of Title 2 of the Government Code. However, the hearing date
31shall be established after consultation with the employee and the
32governing boardbegin insert of the school districtend insert, or their representatives, and
33the Commission on Professional Competence shall have all of the
34power granted to an agency in that chapter, except that the right
35of discovery of the parties shall not be limited to those matters set
36forth in Section 11507.6 of the Government Code but shall include
37the rights and duties of any party in a civil action brought in a
38superior court under Title 4 (commencing with Section 2016.010)
39of Part 4 of the Code of Civil Procedure. Notwithstanding any
40provision to the contrary, and except for the taking of oral
P238  1depositions, no discovery shall occur later than 30 calendar days
2after the employee is served with a copy of the accusation pursuant
3to Section 11505 of the Government Code. In all cases, discovery
4shall be completedbegin delete prior toend deletebegin insert beforeend insert seven calendar days before the
5date upon which the hearing commences. Ifbegin delete anyend deletebegin insert aend insert continuance is
6granted pursuant to Section 11524 of the Government Code, the
7time limitation for commencement of the hearing as provided in
8this subdivision shall be extended for a period of time equal to the
9continuance. However, the extension shall not include that period
10of time attributable to an unlawful refusal by either party to allow
11the discovery provided for in this section.

12(2) If the right of discovery granted under paragraph (1) is
13denied by either the employee or the governing boardbegin insert of the school
14districtend insert
, all of the remedies in Chapter 7 (commencing with Section
152023.010) of Title 4 of Part 4 of the Code of Civil Procedure shall
16be available to the party seeking discovery and the court of proper
17jurisdiction, to entertain his or her motion, shall be the superior
18court of the county in which the hearing will be held.

19(3) The time periods in this section and of Chapter 5
20(commencing with Section 11500) of Part 1 of Division 3 of Title
212 of the Government Code and of Title 4 (commencing with
22Section 2016.010) of Part 4 of the Code of Civil Procedure shall
23not be applied so as to deny discovery in a hearing conducted
24pursuant to this section.

25(4) The superior court of the county in which the hearing will
26be held may, upon motion of the party seeking discovery, suspend
27the hearing so as to comply with the requirement of the preceding
28paragraph.

29(5) No witness shall be permitted to testify at the hearing except
30upon oath or affirmation. No testimony shall be given or evidence
31introduced relating to matters that occurred more than four years
32begin delete prior toend deletebegin insert beforeend insert the date of the filing of the notice. Evidence of
33records regularly kept by the governing boardbegin insert of the school districtend insert
34 concerning the employee may be introduced, but no decision
35relating to the dismissal or suspension ofbegin delete anyend deletebegin insert anend insert employee shall
36be made based on charges or evidence ofbegin delete anyend deletebegin insert aend insert nature relating to
37matters occurring more than four yearsbegin delete prior toend deletebegin insert beforeend insert the filing
38of the notice.

39(b) (1) The hearing provided for in this section shall be
40conducted by a Commission on Professional Competence. One
P239  1member of the commission shall be selected by the employee, one
2member shall be selected by the governing boardbegin insert of the school
3districtend insert
, and one member shall be an administrative law judge of
4the Office of Administrative Hearings who shall be chairperson
5and a voting member of the commission and shall be responsible
6for assuring that the legal rights of the parties are protected at the
7hearing. If either the governing boardbegin insert of the school districtend insert or the
8employee for any reason fails to select a commission member at
9least seven calendar daysbegin delete prior toend deletebegin insert beforeend insert the date of the hearing,
10the failure shall constitute a waiver of the right to selection, and
11the county board of education or its specific designee shall
12immediately make the selection. If the county board of education
13is also the governing board of the school district or has by statute
14been granted the powers of a governing boardbegin insert of a school districtend insert,
15the selection shall be made by the Superintendent, who shall be
16reimbursed by the school district for all costs incident to the
17selection.

18(2) The member selected by the governing boardbegin insert of the school
19districtend insert
and the member selected by the employee shall not be
20related to the employee and shall not be employees of thebegin insert schoolend insert
21 district initiating the dismissal or suspension and shall hold a
22currently valid credential and have at least five years’ experience
23within the past 10 years in the discipline of the employee.

24(c) (1) The decision of the Commission on Professional
25Competence shall be made by a majority vote, and the commission
26shall prepare a written decision containing findings of fact,
27determinations of issues, and a disposition that shall be, solely,
28one of the following:

29(A) That the employee should be dismissed.

30(B) That the employee should be suspended for a specific period
31of time without pay.

32(C) That the employee should not be dismissed or suspended.

33(2) The decision of the Commission on Professional Competence
34that the employee should not be dismissed or suspended shall not
35be based on nonsubstantive procedural errors committed by the
36school district or governing boardbegin insert of the school districtend insert unless the
37errors are prejudicial errors.

38(3) The commission shall not have the power to dispose of the
39charge of dismissal by imposing probation or other alternative
40sanctions. The imposition of suspension pursuant to subparagraph
P240  1(B) of paragraph (1) shall be available only in a suspension
2proceeding authorized pursuant to subdivision (b) of Section 44932
3or Section 44933.

4(4) The decision of the Commission on Professional Competence
5shall be deemed to be the final decision of the governing boardbegin insert of
6the school districtend insert
.

7(5) The board may adopt from time to time rules and procedures
8not inconsistent with this section as may be necessary to effectuate
9this section.

10(6) The governing boardbegin insert of the school districtend insert and the employee
11shall have the right to be represented by counsel.

12(d) (1) If the member selected by the governing boardbegin insert of the
13school districtend insert
or the member selected by the employee is employed
14bybegin delete anyend deletebegin insert aend insert school district in this state, the member shall, during any
15service on a Commission on Professional Competence, continue
16to receive salary, fringe benefits, accumulated sick leave, and other
17leaves and benefits from thebegin insert schoolend insert district in which the member
18is employed, but shall receive no additional compensation or
19honorariums for service on the commission.

20(2) If service on a Commission on Professional Competence
21occurs during summer recess or vacation periods, the member shall
22receive compensation proportionate to that received during the
23current or immediately preceding contract period from the
24member’s employingbegin insert schoolend insert district, whichever amount is greater.

25(e) (1) If the Commission on Professional Competence
26determines that the employee should be dismissed or suspended,
27the governing boardbegin insert of the school districtend insert and the employee shall
28share equally the expenses of the hearing, including the cost of the
29administrative law judge.begin delete The state shall pay any costs incurred
30under paragraph (2) of subdivision (d), the reasonable expenses,
31as determined by the administrative law judge, of the member
32selected by the governing board and the member selected by the
33employee, including, but not limited to, payments or obligations
34incurred for travel, meals, and lodging, and the cost of the substitute
35or substitutes, if any, for the member selected by the governing
36board and the member selected by the employee. The Controller
37shall pay all claims submitted pursuant to this paragraph from the
38General Fund, and may prescribe reasonable rules, regulations,
39and forms for the submission of the claims.end delete
The employee and the
P241  1governing boardbegin insert of the school districtend insert shall pay their own attorney’s
2fees.

3(2) If the Commission on Professional Competence determines
4that the employee should not be dismissed or suspended, the
5governing boardbegin insert of the school districtend insert shall pay the expenses of
6the hearing, including the cost of the administrative law judge, any
7costs incurred under paragraph (2) of subdivision (d), the
8reasonable expenses, as determined by the administrative law
9judge, of the member selected by the governing boardbegin insert of the school
10districtend insert
and the member selected by the employee, including, but
11not limited to, payments or obligations incurred for travel, meals,
12and lodging, the cost of the substitute or substitutes, if any, for the
13member selected by the governing boardbegin insert of the school districtend insert and
14the member selected by the employee, and reasonable attorney’s
15fees incurred by the employee.

16(3) As used in this section, “reasonable expenses” shall not be
17deemed “compensation” within the meaning of subdivision (d).

18(4) If either the governing boardbegin insert of the school districtend insert or the
19employee petitions a court of competent jurisdiction for review of
20the decision of the commission, the payment of expenses to
21members of the commission required by this subdivision shall not
22be stayed.

begin delete

23(5) (A) If the decision of the commission is finally reversed or
24vacated by a court of competent jurisdiction, either the state, having
25paid the commission members’ expenses, shall be entitled to
26reimbursement from the governing board for those expenses, or
27the governing board, having paid the expenses, shall be entitled
28to reimbursement from the state.

end delete
begin delete

29(B) Additionally,

end delete

30begin insert(5)end insertbegin insertend insertbegin insertIf the decision of the commission is finally reversed or
31vacated by a court of competent jurisdiction, end insert
either the employee,
32having paid a portion of the expenses of the hearing, including the
33cost of the administrative law judge, shall be entitled to
34reimbursement from the governing boardbegin insert of the school districtend insert for
35the expenses, or the governing boardbegin insert of the school districtend insert, having
36paid its portion and the employee’s portion of the expenses of the
37hearing, including the cost of the administrative law judge, shall
38be entitled to reimbursement from the employee for that portion
39of the expenses.

P242  1(f) The hearing provided for in this section shall be conducted
2in a place selected by agreement among the members of the
3commission. In the absence of agreement, the place shall be
4selected by the administrative law judge.

5begin insert

begin insertSEC. 242.end insert  

end insert

begin insertSection 44955.5 of the end insertbegin insertEducation Codeend insertbegin insert is amended
6to read:end insert

7

44955.5.  

(a) During the time period between five days after
8the enactment of the Budget Act and August 15 of the fiscal year
9to which that Budget Act applies, if the governing board of a school
10district determines that its totalbegin delete revenue limitend deletebegin insert local control funding
11formula allocation pursuant to Section 42238.02, as implemented
12by Section 42238.03,end insert
per unit of average daily attendance for the
13fiscal year of that Budget Act has not increased by at least 2
14percent, and if in the opinion of the governing boardbegin insert of the school
15districtend insert
it is therefore necessary to decrease the number of
16permanent employees in thebegin insert schoolend insert district, the governing board
17begin insert of the school districtend insert may terminate the services ofbegin delete anyend delete permanent
18or probationary certificated employees of thebegin insert schoolend insert district,
19including employees holding a position that requires an
20administrative or supervisory credential. The termination shall be
21pursuant to Sections 44951 and 44955 but, notwithstanding
22anything to the contrary in Sections 44951 and 44955, in
23accordance with a schedule of notice and hearing adopted by the
24governing boardbegin insert of the school districtend insert.

25(b) This section is inoperative from July 1, 2002, to July 1, 2003,
26inclusive, and from July 1, 2011, to July 1, 2012, inclusive.

27begin insert

begin insertSEC. 243.end insert  

end insert

begin insertSection 45037 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
28

45037.  

(a) Except as provided in Section 45036, for the fiscal
29year 2001-02 and for any fiscal year thereafter in which a person
30renders service as a teacher in kindergarten or any of grades 1 to
3112, inclusive, who does not have a valid certification document,
32the school district or county office of education in which the person
33is employed shall be assessed a penalty that shall be in lieu of any
34loss of funding that would otherwise result under Chapter 6.10
35(commencing with Section 52120) of Part 28. The penalty shall
36be calculated as provided in subdivision (b) and withheld from
37state funding otherwise due to the district or county office of
38education.

P243  1(1) Notwithstanding Section 46300, the attendance of the
2noncertificated person’s pupils during the period of service shall
3be included in the computation of average daily attendance.

4(2) The noncertificated person’s period of service shall not be
5excluded from the determination of eligibility for incentive funding
6for a longer instructional day or year, or both, pursuant to Article
78 (commencing with Section 46200) of Chapter 2 of Part 26.

8(b) (1) For each person who rendered service in the employment
9of the district or county office of education as a teacher in
10kindergarten or any of grades 1 to 12, inclusive, during the fiscal
11year, add the total number of schooldays on which the person
12rendered any amount of the service.

13(2) For each person who rendered service in the employment
14of the district or county office of education as a teacher in
15kindergarten or any of grades 1 to 12, inclusive, during the fiscal
16year, for a period of service during which the person did not have
17a valid certification document, add the number of schooldays on
18which the person rendered any amount of the service without a
19valid certification document.

20(3) Divide the number determined in paragraph (2) by the
21number determined in paragraph (1) and carry the result to four
22decimal places.

23(4) Multiply a school district’s revenue limit entitlement for the
24fiscal year, calculated pursuant to Section 42238, or it’s funding
25amount calculated pursuant to Article 4 (commencing with Section
2642280) of Chapter 7 of Part 24, as applicable, or a county office
27of education’s funding for the fiscal year, for the program in which
28the noncertificated person rendered service by the number
29determined in paragraph (3).

30(c) Beginning in 2002-03, if a county office of education releases
31a warrant in favor of a person for whom a period of school district
32service is included in the calculation set forth in paragraph (2) of
33subdivision (b), and the warrant is either compensation for
34employment as a teacher or for employment in some other capacity
35if the county office of education has direct knowledge or is in
36possession of information giving rise to a reasonable inference
37that the person is rendering service as a teacher, the county office
38shall be assessed a penalty. The penalty assessed to a county office
39for any fiscal year in which one or more district teachers did not
P244  1have a valid certification document shall be equal to the lesser of
2three amounts as follows:

3(1) Fifty percent of all penalties assessed for that fiscal year to
4all school districts in the county office’s jurisdiction pursuant to
5subdivision (b).

6(2) One-half percent of the total expenditures for that fiscal year
7from unrestricted resources, as defined in the California School
8Accounting Manual, in the county office’s county school service
9fund, when two or fewer districts in the county office’s jurisdiction
10are subject to penalties pursuant to subdivision (b).

11(3) One percent of the total expenditures for that fiscal year
12from unrestricted resources, as defined in the California School
13Accounting Manual, in the county office’s county school service
14fund, when three or more districts in the county office’s jurisdiction
15are subject to penalties pursuant to subdivision (b).

16(d) Except as provided in Section 41344.1, nothing in this section
17may be waived in whole or in part.

end delete
18begin insert

begin insertSEC. 244.end insert  

end insert

begin insertArticle 8.5 (commencing with Section 45370) of
19Chapter 5 of Part 25 of Division 3 of Title 2 of the end insert
begin insertEducation Codeend insert
20begin insert is repealed.end insert

21begin insert

begin insertSEC. 245.end insert  

end insert

begin insertSection 46010.2 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
22

46010.2.  

(a) For the purpose of determining “changes in
23enrollment” pursuant to subdivision (b) of Section 8 of Article
24XVI of the California Constitution, as required by subdivision (d)
25of Section 41204, the total days of attendance by pupils in schools
26and classes maintained by a school district shall, in the 1997-98
27fiscal year, be separately determined both as if subdivision (b) of
28Section 46010, as it read in the 1997-98 fiscal year, did and did
29not apply. The days of attendance figure resulting from the
30application of subdivision (b) of Section 46010 shall be used in
31calculating average daily attendance for comparison with average
32daily attendance in the 1996-97 fiscal year. The days of attendance
33figure determined without applying subdivision (b) of Section
3446010 shall be used in calculating average daily attendance for
35comparison with average daily attendance in the 1998-99 fiscal
36year.

37(b) For the purpose of determining “changes in enrollment” for
38the 2008-09 fiscal year pursuant to subdivision (b) of Section 8
39of Article XVI of the California Constitution, as required by
40subdivision (d) of Section 41204, the total days of attendance by
P245  1pupils in schools and classes maintained by a school district, in
2the 2007-08 fiscal year, shall be separately determined both as if
3the California School Age Families Education Program
4(Cal-SAFE), as set forth in Article 7.1 (commencing with Section
554740) of Chapter 9 of Part 29, as it read on January 1, 2008, did
6and did not apply. The days of attendance figure resulting from
7the application of the Cal-SAFE program shall be used in
8calculating average daily attendance for comparison with average
9daily attendance in the 2006-07 fiscal year. The days of attendance
10figure determined without applying the Cal-SAFE program shall
11be used in calculating average daily attendance for comparison
12with average daily attendance in the 2008-09 fiscal year.

end delete
13begin insert

begin insertSEC. 246.end insert  

end insert

begin insertSection 46013 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
14

46013.  

(a) If there is an increase in actual student attendance
15of any school maintained by a school district to which Section
1646013.7 has been made applicable, then an increase in the revenue
17limit of a school district shall be calculated as follows:

18(1) The Superintendent of Public Instruction shall prescribe the
19manner in which actual student attendance is calculated.

20(2) Divide the actual student attendance in the 1979-80 fiscal
21year by total enrollment in the 1979-80 fiscal year.

22(3) Divide the actual student attendance in the current fiscal
23year by total enrollment in the current fiscal year.

24(4) Subtract the quotient calculated pursuant to paragraph (2)
25from the quotient calculated pursuant to paragraph (3).

26(5) Divide the difference calculated pursuant to paragraph (4)
27by 0.02.

28(6) If the quotient calculated pursuant to paragraph (5) is equal
29to or greater than one, then divide that quotient by 100.

30(7) If the quotient calculated pursuant to paragraph (5) is less
31than one, then the district shall not be affected by the provisions
32of this section.

33(8) Multiply the quotient calculated pursuant to paragraph (6)
34by the revenue limit per unit of average daily attendance in the
35current fiscal year, and multiply that product by the total enrollment
36of the school which generated the increased actual student
37attendance. This is the amount by which revenue limit shall be
38increased.

39(b) The revenue limit increase calculated pursuant to subdivision
40(a) shall be allocated as follows:

P246  1(1) If the school receives funds pursuant to either Chapter 3.1
2(commencing with Section 44670) of Part 25 or Chapter 6
3(commencing with Section 52000) of Part 28, then one-half of the
4increase shall be added to such funds; the other half of the increase
5shall be added to the general fund of the district.

6(2) If the school does not receive funds pursuant to either
7Chapter 3.1 (commencing with Section 44670) of Part 25 or
8Chapter 6 (commencing with Section 52000) of Part 28, then
9one-half of the increase shall be used to initiate a program pursuant
10to Chapter 6 (commencing with Section 52000) of Part 28 at the
11school; the other half of the increase shall be added to the general
12fund of the district. If a program is not initiated pursuant to Chapter
136 (commencing with Section 52000) of Part 28 within one year,
14then those funds shall be deposited in the general fund of the
15district and the apportionment of funds to the district from Section
16A of the State School Fund for the then current fiscal year shall
17be reduced by the same amount.

end delete
18begin insert

begin insertSEC. 247.end insert  

end insert

begin insertSection 46013.7 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
19

46013.7.  

The Superintendent of Public Instruction may
20authorize 30 schools in 28 school districts to continue to use the
21attendance accounting and reporting procedures prescribed by
22Section 46013 for the 1985-86 school year through the 1993-94
23school year, and shall not require these districts to keep parallel
24attendance accounting and reporting procedures as required under
25existing laws otherwise applicable. Subsequent to the 1982-83
26fiscal year, no school district shall be eligible to receive a revenue
27limit increase pursuant to Section 46013.

end delete
28begin insert

begin insertSEC. 248.end insert  

end insert

begin insertSection 46140 of the end insertbegin insertEducation Codeend insertbegin insert is amended
29to read:end insert

30

46140.  

begin deleteNo end deletebegin insertA end insertpupil in a high school, other than a pupil enrolled
31inbegin delete a regional occupational center or program,end deletebegin insert anend insert evening high
32school, continuation high school, or continuation education class,
33shallbegin insert notend insert be credited with more than one day of attendance in any
34calendar day and nothing in this article shall be construed to the
35 contrary.

36begin insert

begin insertSEC. 249.end insert  

end insert

begin insertSection 46140.5 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
37

46140.5.  

Any school district which was credited with
38attendance of pupils pursuant to Section 46140 under a vocational
39education program occupationally organized and conducted under
40federal approval in 1976-77, other than a regional occupational
P247  1program or regional occupational center, may request the county
2superintendent of schools to increase the district base revenue limit
3for fiscal year 1977-78 and fiscal years thereafter by the amount
4of revenue received on account of such vocational education
5attendance in 1976-77. The county superintendent, upon
6verification of such amounts, shall adjust the district’s base revenue
7limit.

8As a clarification of the intent of the law, a district, which had
9not submitted attendance documents of pupils pursuant to Section
1046140 under a vocational education program occupationally
11organized and conducted under federal approval in 1976-77, other
12than a regional occupational program or regional occupational
13center, at the time the attendance reports were originally due, shall
14not have the right at a later date to submit amended attendance
15documents to have credited this attendance.

end delete
16begin insert

begin insertSEC. 250.end insert  

end insert

begin insertSection 46141 of the end insertbegin insertEducation Codeend insertbegin insert is amended
17to read:end insert

18

46141.  

The minimum schoolday in a high school is 240
19minutes, except in an evening high school, an early college high
20school, a middle college high school,begin delete a regional occupational
21center, an opportunity school and in opportunity classes,end delete
a
22continuation high school, in continuation education classes, in late
23afternoon or Saturday occupationally organized vocational training
24programs conducted under a federally approved plan for vocational
25education, and for students enrolled in a work experience education
26program approved under the provisions of Article 7 (commencing
27with Section 51760) of Chapter 5 of Part 28.

28begin insert

begin insertSEC. 251.end insert  

end insert

begin insertSection 46144 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
29

46144.  

The minimum day in a special day or a Saturday
30vocational training program and for a pupil enrolled in a work
31experience education program approved under Article 7
32(commencing with Section 51760) of Chapter 5 of Part 28, except
33for a pupil enrolled in a continuation school or class pursuant to
34Section 48402, is four periods totaling at least 180 minutes in
35duration, except that for a pupil in an approved work experience
36program who attends a school, other than a continuation school or
37class, in which the regularly scheduled period is greater than 60
38minutes in length, the minimum day is one or more periods totaling
39at least 180 minutes in duration.

end delete
P248  1begin insert

begin insertSEC. 252.end insert  

end insert

begin insertSection 46145 of the end insertbegin insertEducation Codeend insertbegin insert is amended
2to read:end insert

3

46145.  

Commencing with the first semester or quarter that
4begins after January 1, 1984, pupils in grade 12 shall be enrolled
5in at least five courses each semester or the equivalent number of
6courses per quarter. Ifbegin delete anyend deletebegin insert aend insert pupil in grade 12 is required by
7medical prescription to attend school for less than five courses
8during the semester or the equivalent number of courses during
9the quarter, the average daily attendance allowed for that pupil’s
10attendance shall bear the same proportion to one day of attendance
11as the number of courses in which the pupil is enrolled bears to
12five or the equivalent number for the quarter system.

13However, this requirement shall not apply to pupils enrolled in
14begin delete regional occupational programs, regional occupational centers,end delete
15 courses at accredited postsecondary educational institutions,
16independent study, special education programs where the pupil’s
17individualized education program establishes a different number
18of courses, continuation education classes, work experience
19education programs approved under the provisions of Article 7
20(commencing with Section 51760) of Chapter 5 of Part 28, or any
21other course of study authorized by the governing boardbegin insert of the
22school districtend insert
which is equivalent to the approved high school
23course of study.

24begin insert

begin insertSEC. 253.end insert  

end insert

begin insertArticle 7 (commencing with Section 46190) of
25Chapter 2 of Part 26 of Division 4 of Title 2 of the end insert
begin insertEducation Codeend insert
26begin insert is repealed.end insert

27begin insert

begin insertSEC. 254.end insert  

end insert

begin insertSection 46200 of the end insertbegin insertEducation Codeend insertbegin insert is amended
28to read:end insert

begin delete
29

46200.  

(a) In the 1984-85 fiscal year, for each school district
30that certifies to the Superintendent of Public Instruction that it
31offers 180 days or more of instruction per school year, the
32Superintendent of Public Instruction shall apportion thirty-five
33dollars ($35) per unit of average daily attendance, exclusive of
34adult average daily attendance, the average daily attendance of
35pupils while participating in regional occupation centers or
36programs, and average daily attendance for pupils attending
37summer school. A multitrack year-round school shall be deemed
38to be in compliance with the 180-day requirement if it certifies to
39the Superintendent of Public Instruction that it is a multitrack
40year-round school and maintains its school for a minimum of 163
P249  1schooldays. Each school district that received an apportionment
2pursuant to this subdivision in the 1984-85 fiscal year shall add
3thirty-five dollars ($35) to the district’s base revenue limit per unit
4of average daily attendance for the 1985-86 fiscal year.

5(b) For any school district that received an apportionment
6pursuant to subdivision (a) and that offered less than 180 days, or
7offered less than the number of days required in subdivision (a)
8for multitrack year-round schools, of instruction in the 1985-86
9fiscal year to the 2000-01 fiscal year, inclusive, and that does not
10provide the minimum number of instructional minutes specified
11in subdivision (a) of Section 46201 for that fiscal year, the
12Superintendent of Public Instruction shall reduce the base revenue
13limit per unit of average daily attendance for that fiscal year or
14years by an amount attributable to the increase received pursuant
15to subdivision (a), as adjusted in fiscal years subsequent to the
161984-85 fiscal year.

17(c) 

end delete
18begin insert

begin insert46200.end insert  

end insert

Forbegin delete anyend deletebegin insert aend insert school district that received an apportionment
19pursuant to subdivision (a)begin insert of this section, as it read on January
201, 2013,end insert
and that offers less than 180 days of instruction or, in
21multitrack year-round schools, fewer than the number of days
22required in subdivision (a)begin insert of this section, as it read on January
231, 2013,end insert
for multitrack year-round schools, in thebegin delete 2001-02end deletebegin insert 2013-14end insert
24 fiscal year, or any fiscal year thereafter, the Superintendentbegin delete of
25Public Instructionend delete
shall withhold from thebegin delete district’s revenue limit
26apportionmentend delete
begin insert school district’s local control funding formula grant
27apportionment pursuant to Section 42238.02, as implemented by
28Section 42238.03,end insert
for the average daily attendance of each affected
29grade level the sum of 0.0056 multiplied by that apportionment,
30for each day less than 180, or, in multitrack year-round schools,
31for each day less than the number of days required in subdivision
32(a) for year-round schools that thebegin insert schoolend insert district offered.

begin delete

33(d) For any school district that received an apportionment
34pursuant to subdivision (a) and that offered less than 180 days of
35instruction as required in subdivision (a) in the 1985-86 fiscal
36year, to either the end of the final year of the teacher bargaining
37unit contract in force in that district on January 1, 2002, inclusive,
38or, if no teacher bargaining unit contract was in force in that district
39on January 1, 2002, to the end of the 2001-02 fiscal year, inclusive,
40and that provided the minimum number of instructional minutes
P250  1in subdivision (a) of Section 46201 during all of the period
2applicable to the district pursuant to this subdivision, subdivision
3(c) shall not apply until the first fiscal year following the end of
4the applicable period of years.

end delete
5begin insert

begin insertSEC. 255.end insert  

end insert

begin insertSection 46201 of the end insertbegin insertEducation Codeend insertbegin insert is amended
6to read:end insert

begin delete
7

46201.  

(a) In each of the 1984-85, 1985-86, and 1986-87
8fiscal years, for each school district that certifies to the
9Superintendent of Public Instruction that it offers at least the
10amount of instructional time specified in this subdivision at a grade
11level or levels, the Superintendent of Public Instruction shall
12determine an amount equal to twenty dollars ($20) per unit of
13current year second principal apportionment regular average daily
14attendance in kindergarten and grades 1 to 8, inclusive, and forty
15dollars ($40) per unit of current year second principal
16apportionment regular average daily attendance in grades 9 to 12,
17inclusive. This section shall not apply to adult average daily
18attendance, the average daily attendance for pupils attending
19summer schools, alternative schools, regional occupational centers
20and programs, continuation high schools, or opportunity schools,
21and the attendance of pupils while participating in community
22college or independent study programs.

23(1) In the 1984-85 fiscal year, for kindergarten and each of
24grades 1 to 12, inclusive, the sum of subparagraphs (A) and (B):

25(A) The number of instructional minutes offered at that grade
26level in the 1982-83 fiscal year.

27(B) One-third of the difference between the number of minutes
28specified for that grade level in paragraph (3) and the number of
29instructional minutes offered at that grade level in the 1982-83
30fiscal year.

31(2) In the 1985-86 fiscal year, for kindergarten and each of
32grades 1 to 12, inclusive, the sum of subparagraphs (A) and (B):

33(A) The number of instructional minutes offered at that grade
34level in the 1982-83 fiscal year.

35(B) Two-thirds of the difference between the number of minutes
36specified for that grade level in paragraph (3) and the number of
37instructional minutes offered at that grade level in the 1982-83
38fiscal year.

39(3) In the 1986-87 fiscal year:

40(A) Thirty-six thousand minutes in kindergarten.

P251  1(B) Fifty thousand four hundred minutes in grades 1 to 3,
2inclusive.

3(C) Fifty-four thousand minutes in grades 4 to 8, inclusive.

4(D) Sixty-four thousand eight hundred minutes in grades 9 to
512, inclusive.

6(4) In any fiscal year, each school district that receives an
7apportionment pursuant to subdivision (a) for average daily
8attendance in grades 9 to 12, inclusive, shall offer a program of
9instruction that allows each student to receive at least 24 course
10years of instruction, or the equivalent, during grades 9 to 12,
11inclusive.

12(5) For any schoolsite at which programs are operated in more
13than one of the grade levels enumerated in subparagraph (B) or
14(C) of paragraph (3), the school district may calculate a weighted
15average of minutes for those grade levels at that schoolsite for
16purposes of making the certification authorized by this subdivision.

17(b) (1) If any of the amounts of instructional time specified in
18paragraph (3) of subdivision (a) is a lesser number of minutes for
19that grade level than actually provided by the district in the same
20grade in the 1982-83 fiscal year, the 1982-83 fiscal year number
21of minutes for that grade level, adjusted to comply with Section
2246111, shall instead be the requirement for the purposes of
23paragraphs (1), (2), and (3) of subdivision (a). Commencing with
24the 1990-91 fiscal year, and each fiscal year through the 1995-96
25fiscal year, any school district subject to this subdivision that does
26not maintain the number of instructional minutes for a particular
27grade level that the school district maintained for the 1982-83
28fiscal year, adjusted to comply with Section 46111, shall not be
29subject to paragraphs (1) to (3), inclusive, of subdivision (c) if that
30school district maintains at least the minimum number of
31instructional minutes for each grade level set forth in paragraph
32(3) of subdivision (a) in the 1990-91 fiscal year and each fiscal
33year through the 1994-95 fiscal year or the 1995-96 fiscal year
34for districts whose instructional minutes were adjusted to comply
35with Section 46111, and thereafter returns to the number of
36instructional minutes maintained for each grade level in the
371982-83 fiscal year.

38(2) The Legislature finds and declares that the school districts
39to which paragraph (1) is applicable have not offered any less
P252  1instructional time than is required of all other school districts and
2therefore should not be forced to pay any penalty.

3(c) (1) For any school district that receives an apportionment
4pursuant to subdivision (a) in the 1984-85 fiscal year and that
5reduces the amount of instructional time offered below the
6minimum amounts specified in paragraph (1) of subdivision (a)
7in the 1985-86 fiscal year or any fiscal year thereafter, up to and
8including the 2000-01 fiscal year, the Superintendent of Public
9Instruction shall reduce the base revenue limit per unit of average
10daily attendance for the fiscal year in which the reduction occurs
11by an amount attributable to the increase in the 1985-86 fiscal
12year base revenue limit per unit of average daily attendance
13pursuant to paragraph (4) of subdivision (b) of Section 42238, as
14adjusted in the 1985-86 fiscal year and fiscal years thereafter.

15(2) For each school district that receives an apportionment
16pursuant to subdivision (a) in the 1985-86 fiscal year and that
17reduces the amount of instructional time offered below the
18minimum amounts specified in paragraph (2) of subdivision (a)
19in the 1986-87 fiscal year or any fiscal year thereafter, up to and
20including the 2000-01 fiscal year, the Superintendent of Public
21 Instruction shall reduce the base revenue limit per unit of average
22daily attendance for the fiscal year in which the reduction occurs
23by an amount attributable to the increase in the 1986-87 fiscal
24year base revenue limit per unit of average daily attendance
25pursuant to paragraph (4) of subdivision (b) of Section 42238, as
26adjusted in the 1986-87 fiscal year and fiscal years thereafter.

27(3) For each school district that receives an apportionment
28pursuant to subdivision (a) in the 1986-87 fiscal year and that
29reduces the amount of instructional time offered below the
30minimum amounts specified in paragraph (3) of subdivision (a)
31in the 1987-88 fiscal year or any fiscal year thereafter, up to and
32including the 2000-01 fiscal year, the Superintendent of Public
33Instruction shall reduce the base revenue limit per unit of average
34daily attendance for the fiscal year in which the reduction occurs
35by an amount attributable to the increase in the 1987-88 fiscal
36year base revenue limit per unit of average daily attendance
37pursuant to paragraph (4) of subdivision (b) of Section 42238, as
38adjusted in the 1987-88 fiscal year and fiscal years thereafter.

39(d)

end delete
P253  1begin insert

begin insert46201.end insert  

end insert

begin insert(a)end insert For each school district thatbegin delete receivesend deletebegin insert receivedend insert an
2apportionment pursuant to subdivision (a)begin delete in the 1986-87 fiscal
3yearend delete
begin insert of this section, as it read on January 1, 2013,end insert and that reduces
4the amount of instructional time offered below the minimum
5amounts specified inbegin delete either paragraph (3) of subdivision (a) or
6paragraph (1) ofend delete
subdivision (b),begin delete whichever is applicable, in the
72001-02 fiscal year, or any fiscal year thereafter,end delete
the
8Superintendentbegin delete of Public Instructionend delete shall withhold from the
9begin delete district’s revenue limit apportionmentend deletebegin insert school district’s local control
10funding formula grant apportionment pursuant to Section
1142238.02, as implemented by Section 42238.03,end insert
for the average
12daily attendance of each affected grade level, the sum of that
13apportionment multiplied by the percentage of the minimum
14offered minutes at that grade level that thebegin insert schoolend insert district failed to
15offer.

begin insert

16(b) Commencing with the 2013-14 fiscal year:

end insert
begin insert

17(1) Thirty-six thousand minutes in kindergarten.

end insert
begin insert

18(2) Fifty thousand four hundred minutes in grades 1 to 3,
19inclusive.

end insert
begin insert

20(3) Fifty-four thousand minutes in grades 4 to 8, inclusive.

end insert
begin insert

21(4) Sixty-four thousand eight hundred minutes in grades 9 to
2212, inclusive.

end insert
23begin insert

begin insertSEC. 256.end insert  

end insert

begin insertSection 46201.1 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
24

46201.1.  

(a) Notwithstanding paragraph (4) of subdivision (b)
25of Section 42238, for each school district that received an
26apportionment pursuant to subdivision (a) of Section 46201 in the
271985-86 fiscal year, the county superintendent shall, for the
281986-87 fiscal year, add to the district’s base revenue limit per
29unit of average daily attendance the amount received in the
301985-86 fiscal year, pursuant to subdivision (a) of Section 46201
31divided by the sum of paragraphs (1) and (2).

32(1) The district’s average daily attendance for the 1985-86 fiscal
33year computed pursuant to Section 42238.5.

34(2) The units of average daily attendance in the 1985-86 fiscal
35year resulting from pupils attending schools funded pursuant to
36Article 4 (commencing with Section 42280).

37(b) Notwithstanding paragraph (4) of subdivision (b) of Section
3842238, for each school district that received an apportionment
39pursuant to subdivision (a) of Section 46201 in the 1984-85 fiscal
40year, the county superintendent shall, for calculations or
P254  1recalculations of the district’s 1985-86 base revenue limit per unit
2of average daily attendance, add to the district’s base revenue limit
3per unit of average daily attendance the amount received in the
41984-85 fiscal year pursuant to subdivision (a) of Section 46201
5divided by the sum of paragraphs (1) and (2).

6(1) The district’s average daily attendance for the 1984-85 fiscal
7year computed pursuant to Section 42238.5.

8(2) The units of average daily attendance in the 1984-85 fiscal
9year resulting from pupils attending schools funded pursuant to
10Article 4 (commencing with Section 42280).

11(c) Notwithstanding paragraph (3) of subdivision (b) of Section
1242238, for each school district that received an apportionment
13pursuant to subdivision (a) of Section 46200 in the 1984-85 fiscal
14year, the county superintendent shall, for calculations or
15recalculations of the district’s 1985-86 base revenue limit per unit
16of average daily attendance, add to the district’s base revenue limit
17per unit of average daily attendance the amount received in the
181984-85 fiscal year divided by the sum of paragraphs (1) and (2).

19(1) The district’s average daily attendance for the 1984-85 fiscal
20year computed pursuant to Section 42238.5.

21(2) The units of average daily attendance for the 1984-85 fiscal
22year resulting from pupils attending schools funded pursuant to
23Article 4 (commencing with Section 42280).

24(d) Notwithstanding subdivision (b) of Section 46200, for any
25school district that received an apportionment pursuant to
26subdivision (a) of Section 46200 that offers less than 180 days of
27instruction in the 1986-87 fiscal year, the Superintendent of Public
28Instruction shall reduce the base revenue limit per unit of average
29daily attendance for the 1986-87 fiscal year by an amount
30attributable to the increase received pursuant to subdivision (a) of
31Section 46200, as adjusted.

end delete
32begin insert

begin insertSEC. 257.end insert  

end insert

begin insertSection 46201.2 of the end insertbegin insertEducation Codeend insertbegin insert is amended
33to read:end insert

34

46201.2.  

(a) Commencing with the 2009-10 school year and
35continuing through thebegin delete 2014-15end deletebegin insert 2012-13end insert school year, a school
36district, county office of education, or charter school may reduce
37the equivalent of up to five days of instruction or the equivalent
38number of instructional minutes without incurring the penalties
39set forth in Sections 41420, 46200, 46200.5, 46201, 46201.5,
4046202, and 47612.5begin insert, as those sections read on January 1, 2013end insert.
P255  1A school district, county office of education, or charter school
2shall receive revenue limit funding based on the adjustments
3prescribed pursuant to Section 42238.146begin insert, as it read on January
41, 2013,end insert
whether or not it reduces the number of schooldays or
5instructional minutes.

begin insert

6(b) For the 2013-14 and 2014-15 school years, a school district,
7county office of education, or charter school may reduce the
8equivalent of up to five days of instruction or the equivalent number
9of instructional minutes without incurring the penalties set forth
10in Sections 41420, 46200, 46200.5, 46201, 46201.5, 46202, and
1147612.5.

end insert
begin delete

12(b)

end delete

13begin insert(c)end insert This section shall become inoperative on July 1, 2015, and,
14as of January 1, 2016, is repealed, unless a later enacted statute,
15that becomes operative on or before January 1, 2016, deletes or
16extends the dates on which it becomes inoperative and is repealed.

17begin insert

begin insertSEC. 258.end insert  

end insert

begin insertSection 46201.3 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
18

46201.3.  

(a) For the 2011-12 school year, the minimum
19number of instructional days and minutes school districts, county
20offices of education, and charter schools are required to offer as
21set forth in Sections 41420, 46200, 46200.5, 46201, 46201.5,
2246202, and 47612.5 shall be reduced by up to seven days.

23(b) Implementation of the reduction in the number of
24instructional days offered by a school district, county office of
25education, and charter school that is subject to collective bargaining
26pursuant to Chapter 10.7 (commencing with Section 3540) of
27Division 4 of Title 1 of the Government Code shall be achieved
28through the bargaining process, provided that the agreement has
29been completed and reductions implemented no later than June
3030, 2012.

31(c) The revenue limit for each school district, county office of
32education, and charter school determined pursuant to Article 3
33(commencing with Section 2550) of Chapter 12 of Part 2 of
34Division 1 of Title 1, Article 2 (commencing with Section 42238)
35of Chapter 7 of Part 24 of Division 3, and Article 2 (commencing
36with Section 47633) of Chapter 6 of Part 26.8 of Division 4 shall
37be reduced by the product of 4 percent and the fraction determined
38pursuant to paragraph (2).

39(1) Subtract the revenue forecast determined pursuant to
40subdivision (a) of Section 3.94 of the Budget Act of 2011 from
P256  1eighty-six billion four hundred fifty-two million five hundred
2thousand dollars ($86,452,500,000).

3(2) Divide the lesser of two billion dollars ($2,000,000,000) or
4the amount calculated in paragraph (1) by two billion dollars
5 ($2,000,000,000).

6(d) This section does not affect the number of instructional days
7or instructional minutes that may be reduced pursuant to Section
846201.2.

9(e) The revenue limit reductions authorized by this section,
10when combined with the reductions applied under subdivision (c)
11of Section 3.94 of the Budget Act of 2011, may not be applied so
12as to reduce school funding below the requirements of Section 8
13of Article XVI of the California Constitution based on the
14applicable revenues estimated by the Department of Finance
15pursuant to Section 3.94 of the Budget Act of 2011.

16(f) This section shall be operative on February 1, 2012, only for
17the 2011-12 school year and only if subdivision (c) of Section
183.94 of the Budget Act of 2011 is operative.

end delete
19begin insert

begin insertSEC. 259.end insert  

end insert

begin insertSection 46201.6 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
20

46201.6.  

Any school district that elected not to participate in
21either or both of the longer-day and longer-year incentive funding
22programs set forth in this article may commence participation in,
23and begin receiving funding for, either or both of those programs
24in the 1998-99 or 1999-2000 fiscal years, on the same basis as if
25it had participated in the program or programs since July 1, 1984,
26if the district meets the requirement of paragraph (3) of subdivision
27(a) of Section 46201 in the fiscal year in which it commences
28participation and each fiscal year thereafter.

end delete
29begin insert

begin insertSEC. 260.end insert  

end insert

begin insertSection 46202 of the end insertbegin insertEducation Codeend insertbegin insert is amended
30to read:end insert

begin delete
31

46202.  

(a) Except as otherwise provided in this section, in
32fiscal year 2000-01 and prior, if the governing board of a school
33district offers less instructional time than the amount of
34instructional time fixed for the 1982-83 fiscal year, the
35Superintendent of Public Instruction shall, in that fiscal year, reduce
36that district’s apportionment by the average percentage increase
37in the base revenue limit for districts of similar type and size
38multiplied by the district’s units of average daily attendance.

39(b) Except as otherwise provided in this section, in fiscal year
402001-02 and any fiscal year thereafter, if

end delete
P257  1begin insert

begin insert46202.end insert  

end insert

begin insertIf end inserta school district that does not participate in the
2program set forth inbegin delete this articleend deletebegin insert Sections 46200 to 46206, inclusive,
3as those sections read on January 1, 2013,end insert
offers less instructional
4timebegin insert in a fiscal yearend insert than the amount of instructional time fixed
5for the 1982-83 fiscal year, the Superintendentbegin delete of Public Instructionend delete
6 shall withhold for that fiscal year, from thebegin delete district’s revenue limit
7apportionmentend delete
begin insert school district’s local control funding formula grant
8apportionment pursuant to Section 42238.03, as implemented by
9Section 42238.03,end insert
for the average daily attendance of each affected
10grade level, the amount of that apportionment multiplied by the
11percentage of instructional minutes fixed in the 1982-83 school
12year, at that grade level, that thebegin insert schoolend insert district failed to offer.

begin delete

13(c) The Glendora Unified School District shall reinstate the
14sixth period, which shall be equivalent to at least 50 minutes of
15instruction, effective the start of the second semester of the
161983-84 fiscal year.

end delete
17begin insert

begin insertSEC. 261.end insert  

end insert

begin insertSection 46203 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
18

46203.  

Amounts apportioned to school districts pursuant to
19this article shall supplement, and not supplant, apportionments
20received pursuant to any other provision of law.

end delete
21begin insert

begin insertSEC. 262.end insert  

end insert

begin insertSection 46204 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
22

46204.  

The Superintendent of Public Instruction shall reduce
23the time periods specified in Sections 46200 and 46201 to the
24extent that the superintendent determines that insufficient funds
25are available to fund the per pupil amounts prescribed by those
26sections.

end delete
27begin insert

begin insertSEC. 263.end insert  

end insert

begin insertSection 46207 is added to the end insertbegin insertEducation Codeend insertbegin insert, to
28read:end insert

begin insert
29

begin insert46207.end insert  

(a) Notwithstanding Sections 46200 to 46205, inclusive,
30upon a determination that a school district equals or exceeds its
31local control funding formula target computed pursuant to Section
3242238.02 as determined by the calculation of a zero difference
33pursuant to paragraph (1) of subdivision (b) of Section 42238.03,
34each school district, as a condition of apportionment pursuant to
35Section 42238.02, as implemented pursuant to Section 42238.03,
36shall, for each fiscal year, offer, at a minimum, the following
37number of minutes of instruction:

38(1) To pupils in kindergarten, 36,000 minutes.

39(2) To pupils in grades 1 to 3, inclusive, 50,400 minutes.

40(3) To pupils in grades 4 to 8, inclusive, 54,000 minutes.

P258  1(4) To pupils in grades 9 to 12, inclusive, 64,800 minutes.

2(b) For a school district that has met its local control funding
3formula target that reduces the amount of instructional time offered
4below the minimum amounts specified in subdivision (a), the
5Superintendent shall withhold from the school district’s local
6control funding formula apportionment for the average daily
7attendance of each affected grade level, the sum of that
8apportionment multiplied by the percentage of the minimum offered
9minutes at that grade level that the school district failed to offer.

10(c) Notwithstanding subdivision (a), for the 2013-14 and
112014-15 school years, a school district that equals or exceeds its
12computed local control funding formula target may reduce the
13equivalent of up to five days of instruction or the equivalent number
14of instructional minutes without incurring the penalties set forth
15in this section.

end insert
16begin insert

begin insertSEC. 264.end insert  

end insert

begin insertSection 46208 is added to the end insertbegin insertEducation Codeend insertbegin insert, to
17read:end insert

begin insert
18

begin insert46208.end insert  

(a) Notwithstanding Sections 46200 to 46205, inclusive,
19upon a determination that a school district equals or exceeds its
20local control funding formula target computed pursuant to Section
2142238.02 as determined by the calculation of a zero difference
22pursuant to paragraph (1) of subdivision (b) of Section 42238.03,
23each school district, as a condition of apportionment pursuant to
24Section 42238.02, as implemented pursuant to Section 42238.03,
25shall offer 180 days or more of instruction per school year. A
26school operating a multitrack year-round school shall be deemed
27to be in compliance with the 180-day requirement if it certifies to
28the Superintendent that it is a multitrack year-round school and
29maintains its school for a minimum of 163 schooldays.

30(b) Notwithstanding subdivision (a), for the 2013-14 and
312014-15 school years, a school district that equals or exceeds its
32computed local control funding formula target may reduce the
33equivalent of up to five days of instruction or the equivalent number
34of instructional minutes without incurring the penalties set forth
35in this section.

end insert
36begin insert

begin insertSEC. 265.end insert  

end insert

begin insertSection 46300 of the end insertbegin insertEducation Codeend insertbegin insert is amended
37to read:end insert

38

46300.  

(a) In computing average daily attendance of a school
39district or county office of education, there shall be included the
40attendance of pupils while engaged in educational activities
P259  1required of those pupils and under the immediate supervision and
2control of an employee of thebegin insert schoolend insert district or county officebegin insert of
3educationend insert
who possessed a valid certification document, registered
4as required by law.

5(b) (1) For purposes of a work experience education program
6in a secondary school that meets the standards of the California
7State Plan for Career Technical Education, “immediate
8supervision,” in the context of off-campus work training stations,
9means pupil participation in on-the-job training as outlined under
10a training agreement, coordinated by the school district under a
11state-approved plan, wherein the employer and certificated school
12personnel share the responsibility for on-the-job supervision.

begin delete

13(2) The pupil-teacher ratio in a work experience program shall
14not exceed 125 pupils per full-time equivalent certificated teacher
15coordinator. This ratio may be waived by the state board pursuant
16to Article 3 (commencing with Section 33050) of Chapter 1 of
17Part 20 of Division 2 under criteria developed by the state board.

end delete
begin delete

18(3)

end delete

19begin insert(2)end insert A pupil enrolled in a work experience program shall not be
20credited with more than one day of attendance per calendar day,
21and shall be a full-time pupil enrolled in regular classes that meet
22the requirements of Section 46141 or 46144.

23(c) (1) For purposes of the rehabilitative schools, classes, or
24programs described in Section 48917 that require immediate
25supervision, “immediate supervision” means that the person to
26whom the pupil is required to report for training, counseling,
27tutoring, or other prescribed activity shares the responsibility for
28the supervision of the pupils in the rehabilitative activities with
29certificated personnel of thebegin insert schoolend insert district.

30(2) A pupil enrolled in a rehabilitative school, class, or program
31shall not be credited with more than one day of attendance per
32calendar day.

begin delete

33(d) (1) For purposes of computing the average daily attendance
34of pupils engaged in the educational activities required of high
35school pupils who are also enrolled in a regional occupational
36center or regional occupational program, the school district shall
37receive proportional average daily attendance credit for those
38 educational activities that are less than the minimum schoolday,
39pursuant to regulations adopted by the state board; however, none
P260  1of that attendance shall be counted for purposes of computing
2attendance pursuant to Section 52324.

3(2) A school district shall not receive proportional average daily
4attendance credit pursuant to this subdivision for a pupil in
5attendance for less than 145 minutes each day.

6(3) The divisor for computing proportional average daily
7attendance pursuant to this subdivision is 240, except that, in the
8case of a pupil excused from physical education classes pursuant
9to Section 52316, the divisor is 180.

10(4) Notwithstanding any other provision of law, travel time of
11pupils to attend a regional occupational center or regional
12occupational program shall not be used in any manner in the
13 computation of average daily attendance.

end delete
begin delete

14(e)

end delete

15begin insert(d)end insert (1) In computing the average daily attendance of a school
16district, there shall also be included the attendance of pupils
17participating in independent study conducted pursuant to Article
185.5 (commencing with Section 51745) of Chapter 5 of Part 28 for
19five or more consecutive schooldays.

20(2) A pupil participating in independent study shall not be
21credited with more than one day of attendance per calendar day.

begin delete

22(f) For purposes of cooperative career technical education
23programs and community classrooms described in Section 52372.1,
24“immediate supervision” means pupil participation in paid and
25unpaid on-the-job experiences, as outlined under a training
26agreement and individualized training plans wherein the supervisor
27of the training site and certificated school personnel share the
28responsibility for the supervision of on-the-job experiences.

end delete
begin delete

29(g)

end delete

30begin insert(e)end insert (1) In computing the average daily attendance of a school
31district, there shall be included the attendance of pupils in
32kindergarten after they have completed one school year in
33kindergarten or pupils in a transitional kindergarten program after
34they have completed one year in that program if one of the
35following conditions is met:

36(A) The school district has on file for each of those pupils an
37agreement made pursuant to Section 48011, approved in form and
38content by the department and signed by the pupil’s parent or
39guardian, that the pupil may continue in kindergarten for not more
40than one additional school year.

P261  1(B) The pupils participated in a transitional kindergarten
2program pursuant to subdivision (c) of Section 48000.

3(2) A school district may not include for apportionment purposes
4the attendance of any pupil for more than two years in kindergarten
5or for more than two years in a combination of transitional
6kindergarten and kindergarten.

7begin insert

begin insertSEC. 266.end insert  

end insert

begin insertSection 46300.1 of the end insertbegin insertEducation Codeend insertbegin insert is amended
8to read:end insert

9

46300.1.  

Commencing July 1, 1993,begin delete noend deletebegin insert aend insert school districtbegin delete mayend delete
10begin insert shall notend insert receive school district apportionments pursuant to Section
11begin delete 42238end deletebegin insert 42238.02end insert for independent study by pupils 21 years of age
12or older or by pupils 19 years of age or older who have not been
13continuously enrolled in kindergarten or any of grades 1 to 12,
14inclusive, since their 18th birthday.

15begin insert

begin insertSEC. 267.end insert  

end insert

begin insertSection 46300.7 of the end insertbegin insertEducation Codeend insertbegin insert is amended
16to read:end insert

17

46300.7.  

Notwithstanding any otherbegin delete provision ofend delete law,begin delete noend deletebegin insert aend insert
18 school district or county office of education shallbegin insert notend insert receive
19apportionments forbegin delete anyend deletebegin insert aend insert pupil in independent study unless that
20entity receives written permission from the parent or guardian of
21the pupilbegin delete prior toend deletebegin insert beforeend insert the commencement of independent study
22by that pupilbegin insert consistent with the requirements for independent
23study pursuant to Section 51747end insert
.begin delete The written permission shall
24specify the actual dates of participation, the methods of study and
25evaluation, and the resources to be made available for the
26independent study program for the pupil.end delete

27begin insert

begin insertSEC. 268.end insert  

end insert

begin insertSection 46306 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
28

46306.  

Notwithstanding any other provision of law, the average
29daily attendance of pupils enrolled in summer schools shall be
30credited to the school district in the fiscal year in which the last
31day of the summer school falls.

end delete
32begin insert

begin insertSEC. 269.end insert  

end insert

begin insertArticle 5 (commencing with Section 46351) of
33Chapter 3 of Part 26 of Division 4 of Title 2 of the end insert
begin insertEducation Codeend insert
34begin insert is repealed.end insert

35begin insert

begin insertSEC. 270.end insert  

end insert

begin insertSection 46392 of the end insertbegin insertEducation Codeend insertbegin insert is amended
36to read:end insert

37

46392.  

(a) Whenever the average daily attendance ofbegin delete anyend deletebegin insert aend insert
38 school districtbegin delete,end deletebegin insert orend insert county office of education,begin delete or regional
39occupational center or programend delete
duringbegin delete anyend deletebegin insert aend insert fiscal year has been
40materially decreased duringbegin delete anyend deletebegin insert aend insert fiscal year because of any of
P262  1the following, the fact shall be established to the satisfaction of
2the Superintendentbegin delete of Public Instructionend delete by affidavits of the
3members of the governing board of the school district or county
4office of education, and the county superintendent of schools:

5(1) Fire.

6(2) Flood.

7(3) Impassable roads.

8(4) An epidemic.

9(5) An earthquake.

10(6) The imminence of a major safety hazard as determined by
11the local law enforcement agency.

12(7) A strike involving transportation services to pupils provided
13by a nonschool entity.

14(8) An order provided for in Section 41422.

15(b) In the event a state of emergency is declared by the Governor
16in a county,begin delete anyend deletebegin insert aend insert decrease in average daily attendance in the
17county below the approximate total average daily attendance that
18would have been credited to a school districtbegin delete,end deletebegin insert orend insert county office of
19educationbegin delete, or regional occupational center or programend delete had the state
20of emergency not occurred shall be deemed material. The
21begin delete superintendentend deletebegin insert Superintendentend insert shall determine the length of the
22period during which average daily attendance has been reduced
23by the state of emergency. This period which is determined by the
24begin delete superintendentend deletebegin insert Superintendentend insert shall not extend into the next fiscal
25year following the declaration of the state of emergency by the
26Governor, except upon a showing by a school districtbegin delete,end deletebegin insert orend insert county
27office of education,begin delete or regional occupational center or program,end delete
28 to the satisfaction of thebegin delete superintendent,end deletebegin insert Superintendent,end insert that
29extending the period into the next fiscal year is essential to alleviate
30continued reductions in average daily attendance attributable to
31the state of emergency.

32(c) The average daily attendance of thebegin insert schoolend insert districtbegin delete,end deletebegin insert orend insert county
33office of educationbegin delete, or regional occupational center or programend delete
34 for the fiscal year shall be estimated by thebegin delete superintendentend delete
35begin insert Superintendentend insert in a manner that credits to the school districtbegin delete,end deletebegin insert orend insert
36 county office of educationbegin delete, or regional occupational center or
37programend delete
for determining the apportionments to be made to the
38begin insert schoolend insert districtbegin delete,end deletebegin insert orend insert county office of educationbegin delete, or regional
39occupational center or programend delete
from the State School Fund
40 approximately the total average daily attendance that would have
P263  1been credited to the school districtbegin delete,end deletebegin insert orend insert county office of educationbegin delete,
2or regional occupational center or programend delete
had the emergency not
3occurred or had the order not been issued.

4(d) This section applies to any average daily attendance that
5occurs during any part of a school year.

6begin insert

begin insertSEC. 271.end insert  

end insert

begin insertSection 46602 of the end insertbegin insertEducation Codeend insertbegin insert is amended
7to read:end insert

8

46602.  

If the county board of education determines that the
9pupil should be permitted to attend in thebegin insert schoolend insert district in which
10he or she desires to attend, the pupil shall be admitted to school in
11thebegin insert schoolend insert district without delay and the attendance may be counted
12by thebegin insert schoolend insert district of attendance forbegin delete revenue limit andend deletebegin insert local
13 control funding formula allocations pursuant to Section 42238.02,
14as implemented by Section 42238.03,end insert
state apportionment purposes.

15Written notice of the decision by the county board of education
16shall be delivered to the pupil and the parent or guardian, or person
17having custody of him or her, and to the governing boards of the
18begin insert schoolend insert districts.

19begin insert

begin insertSEC. 272.end insert  

end insert

begin insertSection 46603 of the end insertbegin insertEducation Codeend insertbegin insert is amended
20to read:end insert

21

46603.  

For a period not to exceed two school months, the
22governing board of a school district may provisionally admit to
23the schools of thebegin insert schoolend insert district a pupil who resides in another
24begin insert schoolend insert district, pending a decision of the twobegin insert governingend insert boardsbegin insert of
25the school districtsend insert
, or by the county board of education upon
26appeal, regarding the interdistrict attendance.

27Regardless of whether the decision on interdistrict attendance
28is allowed, the provisional attendance may be counted by thebegin insert schoolend insert
29 district of attendance forbegin delete revenue limitend deletebegin insert local control funding
30formula allocations pursuant to Section 42238.02, as implemented
31by Section 42238.03,end insert
and state apportionment purposes.

32begin insert

begin insertSEC. 273.end insert  

end insert

begin insertSection 46606 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
33

46606.  

(a) A regional occupational program or regional
34occupational center maintained by a school district, county
35superintendent of schools, or a regional occupational program or
36regional occupational center maintained by two or more school
37districts pursuant to a joint powers or cooperative agreement, may
38admit pupils who reside outside the attendance area of the regional
39occupational program or regional occupational center.

P264  1(b) The average daily attendance for attendance of pupils who
2reside outside of the regional occupational center or program
3attendance area and are enrolled in a regional occupational center
4or program pursuant to Section 52317 shall be credited to the
5regional occupational center or program that incurs the training
6costs for purposes of determining state apportionments and the
7revenue limits.

8(c) For purposes of computing the revenue limits for pupils who
9enroll in a regional occupational center or program outside their
10district of residence, the regional occupational center or program
11shall claim its own revenue limit.

12(d) The regional occupational center or program is not eligible
13for state reimbursement for home-to-school transportation
14allowances for pupils who are enrolled in the regional occupational
15center or program pursuant to this section.

end delete
16begin insert

begin insertSEC. 274.end insert  

end insert

begin insertSection 46607 of the end insertbegin insertEducation Codeend insertbegin insert is amended
17to read:end insert

18

46607.  

(a) Except as provided in subdivision (b)begin delete or (c)end delete, the
19average daily attendance for attendance of pupils from another
20begin insert schoolend insert district shall be credited to thebegin insert schoolend insert district of attendance
21for purposes of determining state apportionments and thebegin delete revenue
22limit pursuant to Section 42237 or 42238end delete
begin insert local control funding
23formula allocations pursuant to Section 42238.02, as implemented
24by Section 42238.03end insert
.

25(b) Forbegin delete anyend deletebegin insert a schoolend insert district that would have a reduction of 25
26percent or more in its federal grant pursuant to Public Law 81-874
27if the average daily attendance of pupils residing within thebegin insert schoolend insert
28 district were credited to thebegin insert schoolend insert district of attendance, then the
29average daily attendance resulting from an interdistrict attendance
30agreement shall be credited to thebegin insert schoolend insert district of residence and
31thebegin insert schoolend insert district of residence shall pay a tuition to thebegin insert schoolend insert
32 district of attendance no later than the next August 31, after the
33close of the fiscal yearbegin delete as follows:end deletebegin insert pursuant to subdivision (c).end insert

begin delete

34(1)

end delete

35begin insert(c)end insert For attendance in regular day schools and summer schools
36the tuition per unit of average daily attendance, if any, shall not
37exceed the actual cost per unit of average daily attendance for the
38grade level or program less any income, other than tuition, received
39by thebegin insert schoolend insert district of attendance on account of such attendance.

begin delete

P265  1(2) The district in which the pupil resides shall reduce its total
2revenue limit pursuant to Section 42238 by the total excess, if any,
3of its revenue limit per unit of average daily attendance multiplied
4by the total interdistrict attendance over the total tuition to be paid
5to districts of attendance.

end delete
begin delete

6The district in which the pupil resides may increase its total
7revenue limit pursuant to Section 42238 by the total excess, if any,
8of the total tuition to be paid to districts of attendance over the
9district of residence’s revenue limit per unit of average daily
10attendance multiplied by the total interdistrict average daily
11attendance.

end delete
begin delete

12(c) For any consortium of school districts operating an adult
13education and a regional occupational program serving four or
14more school districts, the school districts may agree to claim the
15unit of average daily attendance on the basis of the district of
16residence and pay such interdistrict tuition to the district of
17attendance as agreed to by the participating districts.

end delete
18begin insert

begin insertSEC. 275.end insert  

end insert

begin insertSection 46610 of the end insertbegin insertEducation Codeend insertbegin insert is amended
19to read:end insert

20

46610.  

Notwithstanding any otherbegin delete provision ofend delete law, the
21Fallbrook Union High School District shall enter into an
22interdistrict attendance agreement with the Capistrano Unified
23School District to allow any pupil, at the request of his or her parent
24or guardian, to attend schools of the Capistrano Unified School
25District when the pupil resides in the San Onofre housing area of
26the Marine Corps Base, Camp Joseph H. Pendleton. No more than
27150 pupils from the Fallbrook Union High School District may
28attend school in the Capistrano Unified School District pursuant
29to this interdistrict attendance agreement.

30The Fallbrook Union High School District shall be credited with
31the average daily attendance of these pupils for the purpose of
32determining state apportionments andbegin delete revenue limitsend deletebegin insert local control
33funding formula allocations pursuant to Section 42238.02, as
34implemented by Section 42238.03,end insert
and for the purpose of receiving
35federal grants pursuant to Public Law 81-874.

36The Fallbrook Union High School District shall pay tuition to
37the Capistrano Unified School District for the attendance of these
38pupils only in the amount of the state apportionments paid to the
39Fallbrook Union High School District for the attendance of these
40pupils, plus an amount computed as follows:

P266  1(a) Divide the amount of funds paid pursuant to Section 3 of
2Public Law 81-874 (20 U.S.C. 238) to the Fallbrook Union High
3School District in the current fiscal year by the average daily
4attendance of thebegin insert schoolend insert district in the current fiscal year.

5(b) Multiply the amount in subdivision (a) by the average daily
6attendance, for the year of attendance for secondary school pupils
7attending the schools of the Capistrano Unified School District
8pursuant to Section 46610.

9begin insert

begin insertSEC. 276.end insert  

end insert

begin insertSection 47604.33 of the end insertbegin insertEducation Codeend insertbegin insert is amended
10to read:end insert

11

47604.33.  

(a) Each charter school shall annually prepare and
12submit the following reports to its chartering authority and the
13county superintendent of schools, or only to the county
14superintendent of schools if the county board of education is the
15chartering authority:

16(1) On or before July 1, a preliminary budgetbegin insert and a local control
17and accountability plan adopted pursuant to Section 52065end insert
. For
18a charter school in its first year of operation, the information
19submitted pursuant to subdivision (g) of Section 47605 satisfies
20this requirement.

21(2) On or before December 15, an interim financial report. This
22report shall reflect changes through October 31.

23(3) On or before March 15, a second interim financial report.
24This report shall reflect changes through January 31.

25(4) On or before September 15, a final unaudited report for the
26full prior year.

27(b) The chartering authority shall use any financial information
28it obtains from the charter school, including, but not limited to,
29the reports required by this section, to assess the fiscal condition
30of the charter school pursuant to subdivision (d) of Section
3147604.32.

32(c) The cost of performing the duties required by this section
33shall be funded with supervisorial oversight fees collected pursuant
34to Section 47613.

35begin insert

begin insertSEC. 277.end insert  

end insert

begin insertSection 47610 of the end insertbegin insertEducation Codeend insertbegin insert is amended
36to read:end insert

37

47610.  

A charter school shall comply with this part and all of
38the provisions set forth in its charter, but is otherwise exempt from
39the laws governing school districts, except all of the following:

40(a) As specified in Section 47611.

P267  1(b) As specified in Section 41365.

begin insert

2(c) As specified in Section 52065.

end insert
begin delete

3(c)

end delete

4begin insert(d)end insert All laws establishing minimum age for public school
5attendance.

begin delete

6(d)

end delete

7begin insert(e)end insert The California Building Standards Code (Part 2
8(commencing with Section 101) of Title 24 of the California Code
9of Regulations), as adopted and enforced by the local building
10enforcement agency with jurisdiction over the area in which the
11charter school is located.

begin delete

12(e)

end delete

13begin insert(f)end insert Charter school facilities shall comply with subdivision (d)
14by January 1, 2007.

15begin insert

begin insertSEC. 278.end insert  

end insert

begin insertSection 47612.7 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
16

47612.7.  

(a) Notwithstanding Section 47612.5 or any other
17law, the Center for Advanced Research and Technology, operating
18pursuant to a joint powers agreement between the Clovis Unified
19School District and the Fresno Unified School District, is eligible
20to receive general-purpose funding, as calculated pursuant to
21Section 47633, for the 2005-06 and 2006-07 fiscal years for a
22total average daily attendance not to exceed the center’s average
23daily attendance as determined at the second principal
24apportionment for the 2005-06 and 2006-07 fiscal years,
25respectively, and for the 2007-08 fiscal year for a total average
26daily attendance not to exceed the center’s average daily attendance
27as determined at the second principal apportionment for the
282006-07 fiscal year.

29(b) Commencing with the 2008-09 fiscal year, the Center for
30Advanced Research and Technology, as described in subdivision
31(a), is not eligible to receive funding pursuant to Chapter 6
32(commencing with Section 47630).

33(c) This section shall become inoperative on July 1, 2017, and,
34as of January 1, 2018, is repealed, unless a later enacted statute,
35that becomes operative on or before January 1, 2018, deletes or
36extends the dates on which it becomes inoperative and is repealed.

end delete
37begin insert

begin insertSEC. 279.end insert  

end insert

begin insertSection 47613 of the end insertbegin insertEducation Codeend insertbegin insert is amended
38to read:end insert

39

47613.  

(a) Except as set forth in subdivision (b), a chartering
40authority may charge for the actual costs of supervisorial oversight
P268  1of a charter school not to exceed 1 percent of the revenue of the
2charter school.

3(b) A chartering authority may charge for the actual costs of
4supervisorial oversight of a charter school not to exceed 3 percent
5of the revenue of the charter school if the charter school is able to
6obtain substantially rent free facilities from the chartering authority.

7(c) A local agency that is given the responsibility for
8supervisorial oversight of a charter school, pursuant to paragraph
9(1) of subdivision (k) of Section 47605, may charge for the actual
10costs of supervisorial oversight, and administrative costs necessary
11to secure charter school funding. A charter school that is charged
12for costs under this subdivision may not be charged pursuant to
13subdivision (a) or (b).

14(d) This section does not prevent the charter school from
15separately purchasing administrative or other services from the
16chartering authority or any other source.

17(e) For purposes of this section, a chartering authority means a
18school district, county board of education, or the state board, that
19granted the charter to the charter school.

20(f) For purposes of this section, “revenue of the charter school”
21means thebegin delete general purpose entitlement and categorical block grant,
22as defined in subdivisions (a) and (b) of Section 47632end delete
begin insert local
23control funding formula allocation pursuant to Section 42238.02,
24as implemented by Section 42238.03end insert
.

25(g) (1) The California Research Bureau of the California State
26Library shall prepare and submit to the Legislature on or before
27January 8, 2009, a report on the key elements and actual costs of
28charter school oversight. For purposes of the report, the bureau
29shall define fiscal and academic oversight and shall include any
30financial relationship between a charter school and its chartering
31authority that has the effect of furthering the operations of the
32charter school and that may provide opportunities to oversee the
33charter school. The report, at a minimum, shall address all of the
34following issues:

35(A) The range of annual activities that entities providing
36supervisorial oversight of charter schools are expected to perform.

37(B) Staff time spent on reviewing charter petitions measured
38by the size of school districts and the number of charter petitions
39reviewed.

P269  1(C) Staff time spent on oversight responsibilities measured by
2the size of school districts and the number of charter schools.

3(D) Best practices for charter school oversight measured by
4efficiency and effectiveness. A cost analysis of those best practices
5after being measured by efficiency and effectiveness.

6(E) Comparison of school district costs and revenues attributable
7to charter school oversight.

8(F) Administrative services provided to a charter school by a
9chartering authority, such as human resources, that may be useful
10in the oversight of the charter school and chartering authority
11revenues attributable to those services.

12(G) Length of time required to review a single charter petition.

13(H) Recommendations for structuring charter school oversight
14and accountability in California, including an assessment of
15whether or not the associated costs specified in subdivisions (a)
16and (b) and subparagraph (F) are adequate to support appropriate
17supervisorial oversight.

18(2) In preparing its report, the California Research Bureau shall
19consult with an advisory panel to ensure technical accuracy.

20begin insert

begin insertSEC. 280.end insert  

end insert

begin insertSection 47613.1 of the end insertbegin insertEducation Codeend insertbegin insert is amended
21to read:end insert

22

47613.1.  

The Superintendentbegin delete of Public Instructionend delete shall make
23begin delete allend deletebegin insert bothend insert of the following apportionments on behalf of a charter
24school in a school district in which all schools have been converted
25to charter schools pursuant to Section 47606begin delete, and that elects not
26to be funded pursuant to the block grant funding model set forth
27in Section 47633 in each fiscal year that the charter school so
28electsend delete
:

begin delete

29(a) From funds appropriated to Section A of the State School
30Fund for apportionment for that fiscal year pursuant to Article 2
31(commencing with Section 42238) of Chapter 7 of Part 24, an
32amount for each unit of current fiscal year regular average daily
33attendance in the charter school that is equal to the current fiscal
34year base revenue limit for the school district to which the charter
35petition was submitted.

end delete
begin delete

36(b)

end delete

37begin insert(a)end insert For each pupil enrolled in the charter school who is entitled
38to special education services, the state and federal funds for special
39education services for that pupil that would have been apportioned
P270  1for that pupil to the school district to which the charter petition
2was submitted.

begin delete

3(c)

end delete

4begin insert(b)end insert Funds for the programs described inbegin delete clause (i) of
5subparagraph (B) of paragraph (1) of subdivision (a) of Section
654761, andend delete
Sections 63000 and 64000, to the extent that any pupil
7enrolled in the charter school is eligible to participate.

8begin insert

begin insertSEC. 281.end insert  

end insert

begin insertSection 47613.2 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
9

47613.2.  

Notwithstanding Sections 47613.1 and 47661, for the
102000-01 fiscal year, the revenue limit of an elementary school
11district may be determined using either the current or prior year
12second principal apportionment average daily attendance,
13whichever is greater, if all the schools in the district were converted
14to charter schools in the 2000-01 fiscal year and the district
15continued to be funded through the base revenue limit method.

end delete
16begin insert

begin insertSEC. 282.end insert  

end insert

begin insertSection 47630 of the end insertbegin insertEducation Codeend insertbegin insert is amended
17to read:end insert

18

47630.  

begin delete(a)end deletebegin deleteend deleteIt is the intent of the Legislature that each charter
19school be provided with operational funding that is equal to the
20total funding that would be available to a similar school district
21serving a similar pupil population, except that a charter school
22may not be funded as a necessary small school or a necessary small
23high schoolbegin delete, nor receive revenue limit funding that exceeds the
24statewide average for a school district of a similar typeend delete
.

begin delete

25(b) The Legislature finds and declares that the funding method
26established by this chapter provides for simple and, at the option
27of the charter school, local or direct allocation of funds to charter
28schools in a manner that is consistent with state and federal law.

end delete
29begin insert

begin insertSEC. 283.end insert  

end insert

begin insertSection 47630.5 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
30

47630.5.  

(a) This chapter applies to the calculation of
31operational funding for charter schools. Except as otherwise
32provided in this chapter, this chapter shall apply to all charter
33schools without regard to their sponsoring local education agency.

34(b) For the 1999-2000, 2000-01, and 2001-02 fiscal years in
35the case of a charter school that was assigned a number by the
36State Board of Education prior to June 1, 1999, the use of the
37charter school funding method established by this chapter shall be
38at the discretion of that charter school. A charter school that elects
39to have its funding determined pursuant to the method established
40by this chapter shall notify the State Department of Education by
P271  1June 1 prior to the affected fiscal year. An election to be funded
2pursuant to the method established by this chapter is irrevocable.

3(c) Additional legal or fiscal responsibilities on the part of a
4county superintendent of schools are not imposed by this chapter,
5except as specifically provided in this chapter.

end delete
6begin insert

begin insertSEC. 284.end insert  

end insert

begin insertSection 47631 of the end insertbegin insertEducation Codeend insertbegin insert is amended
7to read:end insert

8

47631.  

(a) begin deleteArticle 2 (commencing with Section 47633) and end delete
9Article 3 (commencing with Section 47636)begin delete mayend deletebegin insert shallend insert not apply
10to a charter granted pursuant to Section 47605.5.

11(b) Notwithstanding subdivision (a), a pupil attending a
12county-sponsored charter school who is eligible to attend that
13school solely as a result of parental request pursuant to subdivision
14(b) of Section 1981 shall be funded pursuant tobegin delete this chapterend deletebegin insert the
15local control funding formula pursuant to Section 42238.02, as
16implemented by Section 42238.03end insert
.

17begin insert

begin insertSEC. 285.end insert  

end insert

begin insertSection 47632 of the end insertbegin insertEducation Codeend insertbegin insert is amended
18to read:end insert

19

47632.  

For purposes of this chapter, the following terms shall
20be defined as follows:

21(a) “General-purpose entitlement” means an amount computed
22by thebegin delete formula set forth in Section 47633 beginning in the
231999-2000 fiscal year, which is based on the statewide average
24amounts of general-purpose funding from those state and local
25sources identified in Section 47633 received by school districts of
26similar type and serving similar pupil populationsend delete
begin insert local control
27funding formula pursuant to Section 42238.02, as implemented by
28Section 42238.03end insert
.

begin delete

29(b) “Categorical block grant” means an amount computed by
30the formula set forth in Section 47634 beginning in the 1999-2000
31fiscal year, which is based on the statewide average amounts of
32categorical aid from those sources identified in Section 47634
33received by school districts of similar type and serving similar
34pupil populations.

end delete
begin delete

35(c)

end delete

36begin insert(b)end insert “General-purpose funding” means those funds that consist
37of state aid, local property taxes, and other revenues applied toward
38a school district’sbegin delete revenue limit, pursuant to Section 42238end deletebegin insert local
39control funding formula, pursuant to Section 42238.02, as
40implemented by Section 42238.03end insert
.

begin delete

P272  1(d)

end delete

2begin insert(c)end insert “Categorical aid” means aid that consists of state or federally
3funded programs, or both, which are apportioned for specific
4purposes set forth in statute or regulation.

begin delete

5(e) “Economic impact aid-eligible pupils” means those pupils
6that are included in the economic impact aid-eligible pupil count
7pursuant to Section 54023. For purposes of applying Section 54023
8to charter schools, “economically disadvantaged pupils” means
9the pupils described in paragraph (2) of subdivision (a) of Section
1054026.

end delete
begin delete

11(f)

end delete

12begin insert(d)end insert “Educationally disadvantaged pupils” means those pupils
13who are eligible for subsidized meals pursuant to Section 49552
14or are identified as English learners pursuant to subdivision (a) of
15Section 306, or both.

begin delete

16(g)

end delete

17begin insert(e)end insert “Operational funding” means all funding except funding for
18capital outlay.

begin delete

19(h)

end delete

20begin insert(f)end insert “School district of a similar type” means a school district
21that is serving similar grade levels.

begin delete

22(i)

end delete

23begin insert(g)end insert “Similar pupil population” means similar numbers of pupils
24by grade level, with a similar proportion of educationally
25disadvantaged pupils.

begin delete

26(j)

end delete

27begin insert(h)end insert “Sponsoring local educational agency” means the following:

28(1) If a charter school is granted by a school district, the
29sponsoring local educational agency is the school district.

30(2) If a charter is granted by a county office of education after
31having been previously denied by a school district, the sponsoring
32local educational agency means the school district that initially
33denied the charter petition.

34(3) If a charter is granted by the state board after having been
35previously denied by a local educational agency, the sponsoring
36local educational agency means the local educational agency
37designated by the state board pursuant to paragraph (1) of
38subdivision (k) of Section 47605 or if a local educational agency
39is not designated, the local educational agency that initially denied
40the charter petition.

P273  1(4) For pupils attending county-sponsored charter schools who
2are eligible to attend those schools solely as a result of parental
3request pursuant to subdivision (b) of Section 1981, the sponsoring
4local educational agency means the pupils’ school district of
5residence.

6(5) For pupils attending countywide charter schools pursuant
7to Section 47605.6 who reside in a basic aid school district, the
8sponsoring local educational agency means the school district of
9residence of the pupil. For purposes of this paragraph, “basic aid
10school district” means a school district that does not receive an
11apportionment of state fundsbegin delete pursuant toend deletebegin insert as described inend insert
12 subdivisionbegin delete (h)end deletebegin insert (o)end insert of Sectionbegin delete 42238end deletebegin insert 42238.02end insert.

13begin insert

begin insertSEC. 286.end insert  

end insert

begin insertSection 47632.5 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
14

47632.5.  

A charter school that is established through the
15conversion of an existing public school where the charter is granted
16by a district other than the district in which the school is located
17may not generate or receive revenue limit funding in excess of the
18revenue limit of the school district in which the school was located
19prior to the conversion to charter status. This limitation shall apply
20whether the charter converts to charter status a single existing
21public school or multiple existing public schools.

end delete
22begin insert

begin insertSEC. 287.end insert  

end insert

begin insertSection 47633 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
23

47633.  

The Superintendent shall annually compute a
24general-purpose entitlement, funded from a combination of state
25aid and local funds, for each charter school as follows:

26(a) The Superintendent shall annually compute the statewide
27average amount of general-purpose funding per unit of average
28daily attendance received by school districts for each of four grade
29level ranges: kindergarten and grades 1, 2, and 3; grades 4, 5, and
306; grades 7 and 8; and, grades 9 to 12, inclusive. For purposes of
31making these computations, both of the following conditions shall
32apply:

33(1) Revenue limit funding attributable to pupils in kindergarten
34and grades 1 to 5, inclusive, shall equal the statewide average
35revenue limit funding per unit of average daily attendance received
36by elementary school districts; revenue limit funding attributable
37to pupils in grades 6, 7, and 8, shall equal the statewide average
38revenue limit funding per unit of average daily attendance received
39by unified school districts; and revenue limit funding attributable
40to pupils in grades 9 to 12, inclusive, shall equal the statewide
P274  1average revenue limit funding per unit of average daily attendance
2received by high school districts.

3(2) Revenue limit funding received by school districts shall
4exclude the value of any benefit attributable to the presence of
5 necessary small schools or necessary small high schools within
6the school district.

7(b) The Superintendent shall multiply each of the four amounts
8computed in subdivision (a) by the charter school’s average daily
9attendance in the corresponding grade level ranges. The resulting
10figure shall be the amount of the charter school’s general-purpose
11entitlement, which shall be funded through a combination of state
12aid and local funds. From funds appropriated for this purpose
13pursuant to Section 14002, the superintendent shall apportion to
14each charter school this amount, less local funds allocated to the
15charter school pursuant to Section 47635 and any amount received
16pursuant to subparagraph (B) of paragraph (3) of subdivision (e)
17of Section 36 of Article XIII of the California Constitution.

18(c) General-purpose entitlement funding may be used for any
19public school purpose determined by the governing body of the
20charter school.

end delete
21begin insert

begin insertSEC. 288.end insert  

end insert

begin insertSection 47634.1 of the end insertbegin insertEducation Codeend insertbegin insert, as amended
22by Section 23 of Chapter 2 of the 4th Extraordinary Session of the
23Statutes of 2009, is repealed.end insert

begin delete
24

47634.1.  

(a) Notwithstanding subdivision (a) of Section 47634,
25a categorical block grant for charter schools for the 2005-06 fiscal
26year shall be calculated as follows:

27(1) The Superintendent shall divide the total amount of funding
28appropriated for the purpose of this block grant in the annual
29Budget Act or another statute, less the total amount calculated in
30paragraph (2), by the statewide total of charter school average
31daily attendance, as determined at the second principal
32apportionment for the 2005-06 fiscal year.

33(2) The statewide average amount, as computed by the
34Superintendent, of funding per identified educationally
35disadvantaged pupil received by school districts in the current
36fiscal year pursuant to Article 2 (commencing with Section 54020)
37of Chapter 1 of Part 29. This amount shall be multiplied by the
38number of educationally disadvantaged pupils enrolled in the
39charter school. The resulting amount, if greater than zero, may not
40be less than the minimum amount of Economic Impact Aid funding
P275  1to which a school district of similar size would be entitled pursuant
2to Section 54022. For purposes of this subdivision, a pupil who is
3eligible for subsidized meals pursuant to Section 49552 and is
4identified as an English learner pursuant to subdivision (a) of
5Section 306 shall count as two pupils.

6(3) For each charter school, the Superintendent shall multiply
7the amount calculated in paragraph (1) by the school’s average
8daily attendance as determined at the second principal
9apportionment for the 2005-06 fiscal year.

10(4) The Superintendent shall add the amounts computed in
11paragraphs (2) and (3). The resulting amount shall be the charter
12school categorical block grant that the Superintendent shall
13apportion to each charter school from funds appropriated for this
14purpose in the annual Budget Act or another statute. The
15Superintendent shall allocate an advance payment of this grant as
16early as possible, but no later than October 31, 2005, based on
17prior year average daily attendance as determined at the second
18principal apportionment or, for a charter school in its first year of
19operation that commences instruction on or before September 30,
202005, on estimates of average daily attendance for the current fiscal
21year determined pursuant to Section 47652.

22(b) (1) For the 2006-07 fiscal year, the categorical block grant
23allocated by the Superintendent for charter schools shall be four
24hundred dollars ($400) per unit of charter school average daily
25attendance as determined at the second principal apportionment
26for the 2006-07 fiscal year. This amount shall be supplemented
27by the amount calculated in paragraph (2).

28(2) The statewide average amount, as computed by the
29Superintendent, of funding per economic impact aid-eligible pupil
30count received by school districts in the current fiscal year,
31pursuant to Article 2 (commencing with Section 54020) of Chapter
321 of Part 29, shall be multiplied by the number of economic impact
33aid-eligible pupils enrolled in the charter school. The resulting
34amount, if greater than zero, may not be less than the minimum
35amount of Economic Impact Aid funding to which a school district
36of similar size would be entitled pursuant to Section 54022.

37(c) (1) For the 2007-08 fiscal year, the categorical block grant
38allocated by the Superintendent for charter schools shall be five
39hundred dollars ($500) per unit of charter school average daily
40attendance as determined at the second principal apportionment
P276  1for the 2007-08 fiscal year. For each fiscal year thereafter, this
2per unit amount shall be adjusted for the cost-of-living adjustment,
3as determined pursuant to Section 42238.1, for that fiscal year.
4This amount shall be supplemented in the 2007-08 fiscal year and
5each fiscal year thereafter by the amount calculated in paragraph
6(2).

7(2) The statewide average amount, as computed by the
8Superintendent, of funding per economic impact aid-eligible pupil
9count received by school districts in the current year, pursuant to
10 Article 2 (commencing with Section 54020) of Chapter 1 of Part
1129, shall be multiplied by the number of economic impact
12aid-eligible pupils enrolled in the charter school. The resulting
13amount, if greater than zero, may not be less than the minimum
14amount of Economic Impact Aid funding to which a school district
15of similar size would be entitled pursuant to Section 54022.

16(d) It is the intent of the Legislature to fully fund the categorical
17block grant for charter schools as specified in this section and to
18appropriate additional funding that may be needed in order to
19compensate for unanticipated increases in average daily attendance
20and counts of economic impact aid-eligible pupils, pursuant to
21Article 2 (commencing with Section 54020) of Chapter 1 of Part
2229, in charter schools. In any fiscal year in which the department
23identifies a deficiency in the categorical block grant, the department
24shall identify the available balance for programs that count towards
25meeting the requirements of Section 8 of Article XVI of the
26California Constitution and have unobligated funds for the year.

27(e) For the purposes of this section, a funding deficiency shall
28be strictly limited to unanticipated increases in average daily
29attendance and counts of economic impact aid-eligible pupils. In
30no event shall additional funding be provided to restore reductions
31made to categorical programs pursuant to Control Section 12.42
32of an annual Budget Act.

33(f) On or before July 1, the department shall provide the
34Department of Finance with a list of those programs and their
35available balances, and the amount of the deficiency, if any, in the
36categorical block grant. Within 45 days of the receipt of a
37notification of deficiency, the Director of Finance shall verify the
38amount of the deficiency in the categorical block grant and direct
39the Controller to transfer an amount, equal to the lesser of the
40amount available or the amount needed to fully fund the categorical
P277  1block grant, from those programs to the categorical block grant.
2The Department of Finance shall notify the Joint Legislative
3Budget Committee within 30 days of any transfer made pursuant
4to this section.

5(g) Commencing October 1, 2007, the Legislative Analyst’s
6Office shall triennially convene a work group to review,
7commencing with appropriations proposed for the 2008-09 fiscal
8year, the appropriateness of the funding level provided by the
9categorical block grant established in this section.

10(h) Categorical block grant funding may be used for any purpose
11determined by the governing body of the charter school.

12(i) This section shall become inoperative on July 1, 2013, and,
13as of January 1, 2014, is repealed, unless a later enacted statute,
14that becomes operative on or before January 1, 2014, deletes or
15extends the dates on which it becomes inoperative and is repealed.

end delete
16begin insert

begin insertSEC. 289.end insert  

end insert

begin insertSection 47634.1 of the end insertbegin insertEducation Codeend insertbegin insert, as added
17by Section 24 of Chapter 2 of the 4th Extraordinary Session of the
18Statutes of 2009, is repealed.end insert

begin delete
19

47634.1.  

(a) Notwithstanding subdivision (a) of Section 47634,
20a categorical block grant for charter schools for the 2005-06 fiscal
21year shall be calculated as follows:

22(1) The Superintendent shall divide the total amount of funding
23appropriated for the purpose of this block grant in the annual
24Budget Act or another statute, less the total amount calculated in
25paragraph (2), by the statewide total of charter school average
26daily attendance, as determined at the second principal
27apportionment for the 2005-06 fiscal year.

28(2) The statewide average amount, as computed by the
29Superintendent, of funding per identified educationally
30disadvantaged pupil received by school districts in the current
31fiscal year pursuant to Article 2 (commencing with Section 54020)
32of Chapter 1 of Part 29. This amount shall be multiplied by the
33number of educationally disadvantaged pupils enrolled in the
34charter school. The resulting amount, if greater than zero, shall
35not be less than the minimum amount of Economic Impact Aid
36funding to which a school district of similar size would be entitled
37pursuant to Section 54022. For purposes of this subdivision, a
38pupil who is eligible for subsidized meals pursuant to Section
3949552 and is identified as an English learner pursuant to
40subdivision (a) of Section 306 shall count as two pupils.

P278  1(3) For each charter school, the Superintendent shall multiply
2the amount calculated in paragraph (1) by the school’s average
3daily attendance as determined at the second principal
4apportionment for the 2005-06 fiscal year.

5(4) The Superintendent shall add the amounts computed in
6paragraphs (2) and (3). The resulting amount shall be the charter
7school categorical block grant that the Superintendent shall
8apportion to each charter school from funds appropriated for this
9purpose in the annual Budget Act or another statute. The
10Superintendent shall allocate an advance payment of this grant as
11early as possible, but no later than October 31, 2005, based on
12prior year average daily attendance as determined at the second
13principal apportionment or, for a charter school in its first year of
14operation that commences instruction on or before September 30,
152005, on estimates of average daily attendance for the current fiscal
16year determined pursuant to Section 47652.

17(b) (1) For the 2006-07 fiscal year, the categorical block grant
18allocated by the Superintendent for charter schools shall be four
19hundred dollars ($400) per unit of charter school average daily
20attendance as determined at the second principal apportionment
21for the 2006-07 fiscal year. This amount shall be supplemented
22by the amount calculated in paragraph (2).

23(2) The statewide average amount, as computed by the
24Superintendent, of funding per economic impact aid-eligible pupil
25count received by school districts in the current fiscal year,
26pursuant to Article 2 (commencing with Section 54020) of Chapter
271 of Part 29, shall be multiplied by the number of economic impact
28aid-eligible pupils enrolled in the charter school. The resulting
29amount, if greater than zero, shall not be less than the minimum
30amount of Economic Impact Aid funding to which a school district
31of similar size would be entitled pursuant to Section 54022.

32(c) (1) For the 2007-08 fiscal year, the categorical block grant
33allocated by the Superintendent for charter schools shall be five
34hundred dollars ($500) per unit of charter school average daily
35attendance as determined at the second principal apportionment
36for the 2007-08 fiscal year. For each fiscal year thereafter, this
37per unit amount shall be adjusted for the cost-of-living adjustment,
38as determined pursuant to Section 42238.1, for that fiscal year.
39 This amount shall be supplemented in the 2007-08 fiscal year and
P279  1each fiscal year thereafter by the amount calculated in paragraph
2(2).

3(2) The statewide average amount, as computed by the
4Superintendent, of funding per economic impact aid-eligible pupil
5count received by school districts in the current year, pursuant to
6Article 2 (commencing with Section 54020) of Chapter 1 of Part
729, shall be multiplied by the number of economic impact
8aid-eligible pupils enrolled in the charter school. The resulting
9amount, if greater than zero, shall not be less than the minimum
10amount of Economic Impact Aid funding to which a school district
11of similar size would be entitled pursuant to Section 54022.

12(d) It is the intent of the Legislature to fully fund the categorical
13block grant for charter schools as specified in this section and to
14appropriate additional funding that may be needed in order to
15compensate for unanticipated increases in average daily attendance
16and counts of economic impact aid-eligible pupils, pursuant to
17Article 2 (commencing with Section 54020) of Chapter 1 of Part
1829, in charter schools. In any fiscal year in which the department
19identifies a deficiency in the categorical block grant, the department
20shall identify the available balance for programs that count towards
21meeting the requirements of Section 8 of Article XVI of the
22California Constitution and have unobligated funds for the year.
23On or before July 1, the department shall provide the Department
24of Finance with a list of those programs and their available
25balances, and the amount of the deficiency, if any, in the categorical
26block grant. Within 45 days of the receipt of a notification of
27deficiency, the Director of Finance shall verify the amount of the
28deficiency in the categorical block grant and direct the Controller
29to transfer an amount, equal to the lesser of the amount available
30or the amount needed to fully fund the categorical block grant,
31from those programs to the categorical block grant. The Department
32of Finance shall notify the Joint Legislative Budget Committee
33within 30 days of any transfer made pursuant to this section.

34(e) Commencing October 1, 2007, the Legislative Analyst’s
35Office shall triennially convene a work group to review,
36commencing with appropriations proposed for the 2008-09 fiscal
37year, the appropriateness of the funding level provided by the
38categorical block grant established in this section.

39(f) Categorical block grant funding may be used for any purpose
40determined by the governing body of the charter school.

P280  1(g) This section shall become operative on July 1, 2013.

end delete
2begin insert

begin insertSEC. 290.end insert  

end insert

begin insertSection 47634.3 of the end insertbegin insertEducation Codeend insertbegin insert is amended
3to read:end insert

4

47634.3.  

For purposes ofbegin delete Section 47633,end deletebegin insert Sections 42238.02
5and 42238.03,end insert
the Superintendent shall compute average daily
6attendance in each of grades 1 through 12, respectively, as follows:

7(a) Distribute statewide total ungraded enrollment and average
8daily attendance among kindergarten and each of grades 1 through
912, inclusive, in proportion to the amounts of graded enrollment
10and average daily attendance, respectively, in each of these grades.

11(b) Multiply enrollment in each of grades 1 through 12,
12respectively, by the ratio of average daily attendance to enrollment
13in the applicable grade range: 1 through 3, inclusive, 4 through 6,
14inclusive; 7 and 8; and 9 through 12, inclusive.

15begin insert

begin insertSEC. 291.end insert  

end insert

begin insertSection 47634.4 of the end insertbegin insertEducation Codeend insertbegin insert is amended
16to read:end insert

17

47634.4.  

(a) A charter school that elects to receive its funding
18directly, pursuant to Section 47651, may apply individually for
19federal and state categorical programs, not excluded in this section,
20but only to the extent it is eligible for funding and meets the
21provisions of the program. For purposes of determining eligibility
22for, and allocation of, state or federal categorical aid, a charter
23school that applies individually shall be deemed to be a school
24district, except as otherwise provided in this chapter.

25(b) A charter school that does not elect to receive its funding
26directly, pursuant to Section 47651, may, in cooperation with its
27chartering authority, apply for federal and state categorical
28programs not specified in this section, but only to the extent it is
29 eligible for funding and meets the provisions of the program.

30(c) Notwithstanding any otherbegin delete provision ofend delete law, for the 2006-07
31fiscal year and each fiscal year thereafter, a charter school may
32not apply directly for categorical programs for which services are
33exclusively or almost exclusively provided by a county office of
34education.

35(d) Consistent with subdivision (c), a charter school may not
36receive direct funding for any of the following county-administered
37categorical programs:

38(1) American Indian Education Centers.

begin delete

39(2) The California Association of Student Councils.

end delete
begin delete

P281  1(3) California Technology Assistance Project established
2pursuant to Article 15 (commencing with Section 51870) of
3Chapter 5 of Part 28.

end delete
begin delete

4(4) The Center for Civic Education.

end delete
begin delete

5(5)

end delete

6begin insert(2)end insert County Office Fiscal Crisis and Management Assistance
7Team.

begin delete

8(6)

end delete

9begin insert(3)end insert The K-12 High Speed Network.

10(e) A charter school may apply separately for district-level or
11school-level grants associated with any of the categorical programs
12specified in subdivision (d).

begin delete

13(f) Notwithstanding any other provision of law, for the 2006-07
14fiscal year and each fiscal year thereafter, in addition to the
15programs listed in subdivision (d), a charter school may not apply
16for any of the following categorical programs:

17(1) Agricultural Career Technical Education Incentive Program,
18as set forth in Article 7.5 (commencing with Section 52460) of
19Chapter 9 of Part 28.

20(2) Bilingual Teacher Training Assistance Program, as set forth
21in Article 4 (commencing with Section 52180) of Chapter 7 of
22Part 28.

23(3) California Peer Assistance and Review Program for
24Teachers, as set forth in Article 4.5 (commencing with Section
2544500) of Chapter 3 of Part 25.

26(4) College preparation programs, as set forth in Chapter 12
27(commencing with Section 11020) of Part 7, Chapter 8.3
28(commencing with Section 52240) of Part 28, and Chapter 8
29(commencing with Section 60830) of Part 33.

30(5) Foster youth programs pursuant to Chapter 11.3
31(commencing with Section 42920) of Part 24.

32(6) Gifted and talented pupil programs pursuant to Chapter 8
33(commencing with Section 52200) of Part 28.

34(7) Home-to-school transportation programs, as set forth in
35Article 2 (commencing with Section 39820) of Chapter 1 of Part
3623.5 and Article 10 (commencing with Section 41850) of Chapter
375 of Part 24.

38(8) International Baccalaureate Diploma Program, as set forth
39in Chapter 12.5 (commencing with Section 52920) of Part 28.

P282  1(9) Mathematics and Reading Professional Development
2Program, as set forth in Article 3 (commencing with Section 99230)
3of Chapter 5 of Part 65.

4(10) Principal Training Program, as set forth in Article 4.6
5(commencing with Section 44510) of Chapter 3 of Part 25.

6(11) Professional Development Block Grant, as set forth in
7Article 5 (commencing with Section 41530) of Chapter 3.2 of Part
824.

9(12) Program to Reduce Class Size in Two Courses in Grade 9
10(formerly The Morgan-Hart Class Size Reduction Act of 1989),
11as set forth in Chapter 6.8 (commencing with Section 52080) of
12Part 28.

13(13) Pupil Retention Block Grant, as set forth in Article 2
14(commencing with Section 41505) of Chapter 3.2 of Part 24.

15(14) Reader services for blind teachers, as set forth in Article
168.5 (commencing with Section 45370) of Chapter 5 of Part 25.

17(15) School and Library Improvement Block Grant, as set forth
18in Article 7 (commencing with Section 41570) of Chapter 3.2 of
19Part 24.

20(16) School Safety Consolidated Competitive Grant, as set forth
21in Article 3 (commencing with Section 41510) of Chapter 3.2 of
22Part 24.

23(17) School safety programs, as set forth in Article 3.6
24(commencing with Section 32228) and Article 3.8 (commencing
25with Section 32239.5) of Chapter 2 of Part 19.

26(18) Specialized secondary schools pursuant to Chapter 6
27(commencing with Section 58800) of Part 31.

28(19) State Instructional Materials Fund, as set forth in Article
293 (commencing with Section 60240) of Chapter 2 of Part 33.

30(20) Targeted Instructional Improvement Block Grant, as set
31forth in Article 6 (commencing with Section 41540) of Chapter
323.2 of Part 24.

33(21) Teacher dismissal apportionment, as set forth in Section
3444944.

35(22) The deferred maintenance program, as set forth in Article
361 (commencing with Section 17565) of Chapter 5 of Part 10.5.

37(23) The General Fund contribution to the State Instructional
38Materials Fund pursuant to Article 3 (commencing with Section
3960240) of Chapter 2 of Part 33.

P283  1(24) Year-Round School Grant Program, as set forth in Article
23 (commencing with Section 42260) of Chapter 7 of Part 24.

end delete
3begin insert

begin insertSEC. 292.end insert  

end insert

begin insertSection 47635 of the end insertbegin insertEducation Codeend insertbegin insert is amended
4to read:end insert

5

47635.  

(a) A sponsoring local educational agency shall
6annually transfer to each of its charter schools funding in lieu of
7property taxes equal to the lesser of the following two amounts:

8(1) The average amount of property taxes per unit of average
9daily attendance, including average daily attendance attributable
10to charter schools, received by the local educational agency,
11multiplied by the charter school’s average daily attendance.

12(2) The statewide averagebegin delete general-purpose fundingend deletebegin insert local control
13 funding formula grant funding pursuant to Section 42238.02, as
14implemented by Section 42238.03,end insert
per unit of average daily
15attendance received by school districts, as determined by thebegin delete State
16Department of Education,end delete
begin insert department,end insert multiplied by the charter
17school’s average daily attendance in each of the four corresponding
18grade level ranges: kindergarten and grades 1, 2, and 3; grades 4,
195, and 6; grades 7 and 8; and grades 9 to 12, inclusive.

20(b) The sponsoring local educational agency shall transfer
21funding in lieu of property taxes to the charter school in monthly
22installments, by no later than the 15th of each month.

23(1) For the months of August to February, inclusive, a charter
24school’s funding in lieu of property taxes shall be computed based
25on the amount of property taxes received by the sponsoring local
26educational agency during the preceding fiscal year, as reported
27to the Superintendentbegin delete of Public Instructionend delete for purposes of the
28second principal apportionment. A sponsoring local educational
29agency shall transfer to the charter school the charter school’s
30estimated annual entitlement to funding in lieu of property taxes
31as follows:

32(A) Six percent in August.

33(B) Twelve percent in September.

34(C) Eight percent each month in October, November, December,
35January, and February.

36(2) For the months of March to June, inclusive, a charter
37school’s funding in lieu of property taxes shall be computed based
38on the amount of property taxes estimated to be received by the
39sponsoring local educational agency during the fiscal year, as
40reported to the Superintendentbegin delete of Public Instructionend delete for purposes
P284  1of the first principal apportionment. A sponsoring local educational
2agency shall transfer to each of its charter schools an amount equal
3to one-sixth of the difference between the school’s estimated annual
4entitlement to funding in lieu of property taxes and the amounts
5provided pursuant to paragraph (1). An additional one-sixth of this
6difference shall be included in the amount transferred in the month
7of March.

8(3) For the month of July, a charter school’s funding in lieu of
9property taxes shall be computed based on the amount of property
10taxes estimated to be received by the sponsoring local educational
11agency during the prior fiscal year, as reported to the
12Superintendentbegin delete of Public Instructionend delete for purposes of the second
13principal apportionment. A sponsoring local educational agency
14shall transfer to each of its charter schools an amount equal to the
15remaining difference between the school’s estimated annual
16entitlement to funding in lieu of property taxes and the amounts
17provided pursuant to paragraphs (1) and (2).

18(4) Final adjustments to the amount of funding in lieu of
19property taxes allocated to a charter school shall be made in
20February, in conjunction with the final reconciliation of annual
21apportionments to schools.

22(5) Subdivision (a) and paragraphs (1) to (4), inclusive,begin delete of
23subdivision (b)end delete
do not apply for pupils who reside in, and are
24otherwise eligible to attend a school in, a basic aid school district,
25but who attend a charter school in a nonbasic aid school district.
26With regard to these pupils, the sponsoring basic aidbegin insert schoolend insert district
27shall transfer to the charter school an amount of funds equivalent
28to thebegin delete revenue limitend deletebegin insert local control funding formula grant pursuant
29to Section 42238.02, as implemented by Section 42238.03,end insert
earned
30through average daily attendance by the charter school for each
31pupil’s attendance, not to exceed the average property tax share
32per unit of average daily attendance for pupils residing and
33attending in the basic aidbegin insert schoolend insert district. The transfer of funds shall
34be made in not fewer than two installments at the request of the
35charter school, the first occurring not later than February 1 and the
36second not later than June 1 of each school year. Payments shall
37reflect the average daily attendance certified for the time periods
38of the first and second principal apportionments, respectively. The
39Superintendentbegin delete of Public Instructionend delete may not apportion any funds
40for the attendance of pupils described in this subdivision unless
P285  1the amount transferred by the basic aidbegin insert schoolend insert district is less than
2thebegin delete revenue limitend deletebegin insert local control funding formula grant pursuant to
3Section 42238.02, as implemented by Section 42238.03,end insert
earned by
4the charter school, in which event the Superintendentbegin delete of Public
5Instructionend delete
shall apportion the difference to the charter school from
6state funds.

7begin insert

begin insertSEC. 293.end insert  

end insert

begin insertSection 47636 of the end insertbegin insertEducation Codeend insertbegin insert is amended
8to read:end insert

9

47636.  

(a) This chapterbegin delete doesend deletebegin insert shallend insert not prevent a charter school
10from negotiating with a local educational agency for a share of
11operational funding from sources not otherwise set forth in this
12chapter including, but not limited to, all of the following:

13(1) Forest reserve revenues and other operational revenues
14received due to harvesting or extraction of minerals or other natural
15resources.

16(2) Sales and use taxes, to the extent that the associated revenues
17are available for noncapital expenses of public schools.

18(3) Parcel taxes, to the extent that the associated revenues are
19available for noncapital expenses of public schools.

20(4) Ad valorem property taxes received by a school district
21which exceed itsbegin delete revenue limit entitlementend deletebegin insert local control funding
22formula entitlement pursuant to Section 42238.02, as implemented
23by Section 42238.03end insert
.

24(5) “Basic aid” received by a school district pursuant to Section
256 of Article IX of the California Constitution.

26(b) This section shall become operative July 1, 2006.

27begin insert

begin insertSEC. 294.end insert  

end insert

begin insertSection 47650 of the end insertbegin insertEducation Codeend insertbegin insert is amended
28to read:end insert

29

47650.  

A charter school shall be deemed to be a school district
30for purposes of determining the manner in which warrants are
31drawn on the State School Fund pursuant to Section 14041. For
32purposes of Section 14041, a charter school’s “total amount
33certified” means the state aid portion of the charter school’s total
34begin delete general-purpose entitlement and categorical block grant computed
35pursuant to Sections 47633 and 47634end delete
begin insert local control funding
36formula allocation pursuant to Section 42238.02, as implemented
37by Section 42238.03end insert
.

38begin insert

begin insertSEC. 295.end insert  

end insert

begin insertSection 47651 of the end insertbegin insertEducation Codeend insertbegin insert is amended
39to read:end insert

P286  1

47651.  

(a) A charter school may receive the state aid portion
2of the charter school’s totalbegin delete general-purpose entitlement and
3categorical block grantend delete
begin insert local control funding formula allocation
4pursuant to Section 42238.02, as implemented by Section 42238.03,end insert

5 directly or through the local educational agency that either grants
6its charter or was designated by thebegin delete State Board of Educationend deletebegin insert state
7boardend insert
.

8(1) In the case of a charter school that elects to receive its
9funding directly, the warrant shall be drawn in favor of thebegin insert countyend insert
10 superintendent of schools of the county in which the local
11educational agency that approved the charter or was designated
12by thebegin delete State Board of Educationend deletebegin insert state boardend insert as the oversight agency
13pursuant to paragraph (1) of subdivision (k) of Section 47605 is
14located, for deposit to the appropriate funds or accounts of the
15charter school in the county treasury. The county superintendent
16of schools is authorized to establish appropriate funds or accounts
17in the county treasury for each charter school.

18(2) In the case of a charter school that does not elect to receive
19its funding directly pursuant to Section 47651, the warrant shall
20be drawn in favor of thebegin insert countyend insert superintendent of schools of the
21county in which the local educational agency that granted the
22charter is located or was designated the oversight agency by the
23begin insert stateend insert board pursuant to paragraph (1) of subdivision (k) of Section
2447605, for deposit to the appropriate funds or accounts of the local
25educational agency.

26(3) In the case of a charter school, the charter of which was
27granted by thebegin delete State Board of Education,end deletebegin insert state board,end insert but for which
28thebegin insert stateend insert board has not delegated oversight responsibilities pursuant
29to paragraph (1) of subdivision (k) of Section 47605, the warrant
30shall be drawn in favor of thebegin insert countyend insert superintendent of schools in
31the county where the local educational agency is located that
32initially denied the charter that was later approved by thebegin insert stateend insert
33 board. The county superintendent of schools is authorized to
34establish appropriate funds or accounts in the county treasury for
35each charter school.

36(b) On or before June 1 of each year, a charter school electing
37to receive its funding directly shall so notify the county
38superintendent of schools of the county in which the local
39educational agency that granted the charter is located or, in the
40case of charters for which thebegin delete State Board of Educationend deletebegin insert state boardend insert
P287  1 has designated an oversight agency pursuant to paragraph (1) of
2subdivision (k) of Section 47605, the county superintendent of
3schools of the county in which the designated oversight agency is
4located. An election to receive funding directly shall apply to all
5funding that the charter school is eligible to receive including, but
6not limited to, thebegin delete charter general-purpose entitlements and the
7categorical block grant computed pursuant to Sections 47633 and
847634,end delete
begin insert local control funding formula allocation pursuant to Section
942238.02, as implemented by Section 42238.03,end insert
other state and
10federal categorical aid, and lottery funds.

11begin insert

begin insertSEC. 296.end insert  

end insert

begin insertSection 47660 of the end insertbegin insertEducation Codeend insertbegin insert is amended
12to read:end insert

13

47660.  

begin delete(a)end deletebegin deleteend deleteFor purposes of computing eligibility for, and
14entitlements to, general purpose funding and operational funding
15for categorical programs, the enrollment and average daily
16attendance of a sponsoring local educational agency shall exclude
17the enrollment and attendance of pupils in its charter schools
18funded pursuant to this chapter.

begin delete

19(b) (1) Notwithstanding subdivision (a), and commencing with
20the 2005-06 fiscal year, for purposes of computing eligibility for,
21and entitlements to, revenue limit funding, the average daily
22attendance of a unified school district, other than a unified school
23district that has converted all of its schools to charter status
24pursuant to Section 47606, shall include all attendance of pupils
25who reside in the unified school district and who would otherwise
26have been eligible to attend a noncharter school of the school
27district, if the school district was a basic aid school district in the
28prior fiscal year, or if the pupils reside in the unified school district
29and attended a charter school of that school district that converted
30to charter status on or after July 1, 2005. Only the attendance of
31the pupils described by this paragraph shall be included in the
32calculation made pursuant to paragraph (7) of subdivision (h) of
33Section 42238.

34(2) Notwithstanding subdivision (a), for the 2005-06 fiscal year
35only, for purposes of computing eligibility for, and entitlements
36to, revenue limit funding, the average daily attendance of a unified
37school district, other than a unified school district that has
38converted all of its schools to charter status pursuant to Section
3947606 and is operating them as charter schools, shall include all
40attendance of pupils who reside in the unified school district and
P288  1who would otherwise have been eligible to attend a noncharter
2school of the unified school district if the pupils attended a charter
3school operating in the unified school district prior to July 1, 2005.
4Only the attendance of pupils described by this paragraph shall be
5included in the calculation made pursuant to Section 42241.3. The
6attendance of the pupils described by this paragraph shall be
7included in the calculation made pursuant to paragraph (7) of
8subdivision (h) of Section 42238.

9(c) (1) For the attendance of pupils specified in subdivision (b),
10the general-purpose entitlement for a charter school that is
11established through the conversion of an existing public school
12within a unified school district on or after July 1, 2005, but before
13January 1, 2010, shall be determined using the following amount
14of general-purpose funding per unit of average daily attendance,
15in lieu of the amount calculated pursuant to subdivision (a) of
16Section 47633:

17(A) The amount of the actual unrestricted revenues expended
18per unit of average daily attendance for that school in the year
19prior to its conversion to, and operation as, a charter school,
20adjusted for the base revenue limit per pupil inflation increase
21adjustment set forth in Section 42238.1, if this adjustment is
22provided, and also adjusted for equalization, deficit reduction, and
23other state general-purpose increases, if any, provided for the
24unified school district in the year of conversion to, and operation
25as a charter school.

26(B) For a subsequent fiscal year, the general-purpose entitlement
27shall be determined based on the amount per unit of average daily
28attendance allocated in the prior fiscal year adjusted for the base
29revenue limit per pupil inflation increase adjustment set forth in
30Section 42238.1, if this adjustment is provided, and also adjusted
31for equalization, deficit reduction, and other state general-purpose
32increases, if any, provided for the unified school district in that
33fiscal year.

34(2) This subdivision shall not apply to a charter school that is
35established through the conversion of an existing public school
36within a unified school district on or after January 1, 2010, which
37instead shall receive general-purpose funding

38pursuant to Section 47633. This paragraph does not preclude a
39charter school or unified school district from agreeing to an
40alternative funding formula.

P289  1(d) Commencing with the 2005-06 fiscal year, the
2general-purpose funding per unit of average daily attendance
3specified for a unified school district for purposes of paragraph
4(7) of subdivision (h) of Section 42238 for a school within the
5unified school district that converted to charter status on or after
6July 1, 2005, shall be deemed to be the amount computed pursuant
7to subdivision (c).

8(e) A unified school district that is the sponsoring local
9educational agency as defined in subdivision (j) of Section 47632
10of a charter school that is subject to paragraphs (1) and (2) of
11subdivision (c) shall certify to the Superintendent the amount
12specified in paragraph (1) of subdivision (c) prior to the approval
13of the charter petition by the governing board of the school district.
14This amount may be based on estimates of the unrestricted revenues
15expended in the fiscal year prior to the school’s conversion to
16charter status and the school’s operation as a charter school,
17provided that the amount is recertified when the actual data
18becomes available.

19(f) For the purposes of this section, “basic aid school district”
20means a school district that does not receive from the state an
21apportionment of state funds pursuant to subdivision (h) of Section
2242238.

23(g) A school district may use the existing Standardized Account
24Code Structure and cost allocation methods, if appropriate, for an
25accounting of the actual unrestricted revenues expended in support
26of a school pursuant to subdivision (c).

27(h) For purposes of this section and Section 42241.3, “operating”
28means that pupils are attending and receiving instruction at the
29charter school.

end delete
30begin insert

begin insertSEC. 297.end insert  

end insert

begin insertSection 47662 of the end insertbegin insertEducation Codeend insertbegin insert is amended
31to read:end insert

32

47662.  

For purposes of Sectionbegin delete 42238,end deletebegin insert 42238.02, as
33implemented by Section 42238.03,end insert
the property tax revenues
34received by a sponsoring local educational agency pursuant to
35Chapter 3.5 (commencing with Section 75) and Chapter 6
36(commencing with Section 95) of Part 0.5begin insert of Division 1end insert of the
37Revenue and Taxation Code shall be reduced by the amount of
38funding in lieu of property taxes allocated to a charter school or
39schools pursuant to Section 47635.

P290  1begin insert

begin insertSEC. 298.end insert  

end insert

begin insertSection 47663 of the end insertbegin insertEducation Codeend insertbegin insert is amended
2to read:end insert

3

47663.  

(a) For a pupil of a charter school sponsored by a basic
4aid school district who resides in, and is otherwise eligible to
5attend, a school district other than a basic aid school district, the
6Superintendentbegin delete of Public Instructionend delete shall apportion to the
7sponsoring school district an amount equal to 70 percent of the
8begin delete revenue limitend deletebegin insert local control funding formula allocations pursuant
9to Section 42238.02, as implemented by Section 42238.03,end insert
per unit
10of average daily attendance that would have been apportioned to
11the school district that the pupil resides in and would otherwise
12have been eligible to attend.

13(b) Abegin insert schoolend insert district that loses basic aid status as a result of
14transferring property taxes to a charter school or schools pursuant
15to Section 47635begin insert for pupils who reside in, and are otherwise
16eligible to attend a school district other than the school district
17that sponsors the charter school,end insert
shall be eligible to receive a pro
18rata share of funding provided by subdivision (a), with the proration
19factor calculated as the ratio of the following:

20(1) The amount of property taxes that thebegin insert schoolend insert district receives
21in excess of its totalbegin delete revenue limit guarantee, prior toend deletebegin insert base grant
22per unit of average daily attendance calculated pursuant to Section
2342238.02, as implemented by Section 42238.03, beforeend insert
any
24transfers made pursuant to Section 47635begin insert, except for transfers of
25in lieu of taxes made for pupils who reside in and would otherwise
26be eligible to attend a school of the school districtend insert
.

27(2) The total amount ofbegin insert in lieu ofend insert property taxes transferred
28pursuant to Section 47635 to the charter school or schools that it
29sponsorsbegin insert, except for transfer of in lieu of taxes made for pupils
30who reside in and would otherwise be eligible to attend a school
31of the school districtend insert
.

begin insert

32(c) In no event shall the amount provided pursuant to this section
33exceed the amount of in lieu of property taxes transferred on behalf
34of charter school pupils who do not reside in the school district,
35less the proportionate amount of base grant state aid provided
36pursuant to Section 42238.02, as implemented by Section 42238.03,
37that is attributable to the charter school pupils who do not reside
38in the school district.

end insert
begin delete

39(c)

end delete

P291  1begin insert(d)end insert The Superintendentbegin delete of Public Instruction mayend deletebegin insert shallend insert not
2apportion funds for the attendance of a pupil in a charter school
3of a nonbasic aid school district who resides in, and is otherwise
4eligible to attend school in, a basic aid school district unless the
5pupil is subject to the exception set forth in paragraph (5) of
6subdivision (b) of Section 47635.

begin delete

7(d)

end delete

8begin insert(e)end insert For purposes of this section, “basic aid school district” means
9a school district that does not receive from the state, for any fiscal
10year in which the subdivision is applied, an apportionment of state
11fundsbegin delete pursuant toend deletebegin insert as described inend insert subdivisionbegin delete (h)end deletebegin insert (o)end insert of Section
12begin delete 42238end deletebegin insert 42238.02end insert.

13begin insert

begin insertSEC. 299.end insert  

end insert

begin insertSection 47664 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
14

47664.  

(a) A school district in which all schools have been
15converted to charter schools pursuant to Section 47606, at the
16school district’s discretion, may use the funding method provided
17for by this chapter. A school district that elects to have its funding
18determined pursuant to the method provided for by this chapter
19shall so notify the Superintendent of Public Instruction by June 1
20prior to the affected fiscal year. Once made, an election to be
21funded pursuant to the method provided for by this chapter is
22irrevocable.

23(b) In the case of a school district in which all schools have been
24converted to charter schools pursuant to Section 47606, and that
25has not elected to be funded pursuant to the method provided for
26by this chapter, any increase in district average daily attendance
27attributable to pupils who reside in, and would otherwise be eligible
28to attend, a district other than the district sponsoring the charter
29school shall be funded at the lesser of the following:

30(1) The sponsoring district’s own base revenue limit per unit of
31average daily attendance.

32(2) The statewide average base revenue limit per unit of average
33daily attendance for districts of a similar type. For purposes of this
34paragraph, increases in average daily attendance shall be measured
35relative to the 1998-99 fiscal year or the fiscal year in which all
36schools in the district were converted to charter schools pursuant
37to Section 47606, whichever fiscal year is later.

38(c) A school district in which all schools have been converted
39to charter schools pursuant to Section 47606 and that is the
40sponsoring entity for a charter school or schools that were
P292  1previously funded pursuant to the method provided pursuant to
2this chapter shall have its base revenue limit computed as follows:

3(1) The average daily attendance of the charter school or schools
4for the fiscal year prior to the fiscal year in which the conversion
5is effective shall be multiplied by the statewide average base
6revenue limit per unit of average daily attendance for districts of
7similar type for the fiscal year in which the conversion is effective.

8(2) The school district’s remaining average daily attendance for
9the fiscal year prior to the fiscal year in which the conversion is
10effective shall be multiplied by the school district’s base revenue
11limit per unit of average daily attendance for the fiscal year in
12which the conversion is effective.

13(3) The amounts computed in paragraphs (1) and (2) shall be
14added and this total shall be divided by the district’s total average
15daily attendance, including average daily attendance in charter
16schools for which it is the sponsoring entity, for the fiscal year
17prior to the fiscal year in which the conversion is effective.

end delete
18begin insert

begin insertSEC. 300.end insert  

end insert

begin insertSection 48200.7 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
19

48200.7.  

(a) The State Department of Education shall identify
20the three lowest performing elementary schools in the Compton
21Unified School District for purposes of extending the school year
22for pupils enrolled in kindergarten or grades 1 and 2 and for those
23pupils in any of grades 3 to 5, inclusive, who are performing in
24mathematics or English language arts two or more grade levels
25below the grade in which those pupils are enrolled as determined
26under subdivision (d).

27(b) Beginning with the 1998-99 school year, the Compton
28Unified School District may identify schools of the district, in
29addition to those identified pursuant to subdivision (a), that are
30among the lowest performing schools in the district, and may
31provide extended school year instruction pursuant to Section
3241601.1 to any pupil enrolled in kindergarten or any of grades 1
33to 12, inclusive, in a school identified pursuant to this subdivision
34who is performing in mathematics or English language arts at a
35grade level that is two or more grade levels below the grade in
36which that pupil is enrolled as determined pursuant to subdivision
37(d).

38(c) Notwithstanding subdivision (b) of this section and Section
3941601.1, the amount of funding claimed by the district for extended
40year instruction shall not in any year exceed twice the amount
P293  1claimed pursuant to this section in the 1997-98 fiscal year as
2adjusted each year by the inflation adjustment determined pursuant
3to Section 42238.1.

4(d) The determination that a pupil is performing two or more
5grade levels below the grade in which that pupil is enrolled shall
6be based on any combination of the following:

7(1) The California Achievement Test-Form E.

8(2) The Spanish assessment of basic education.

9(3) Proficiency tests required for graduation.

10(4) District criterion reference tests based on state curriculum
11guides.

12(5) The STAR test.

13(e) The Compton Unified School District shall test all pupils in
14kindergarten and grades 1 to 12, inclusive, in its lowest performing
15schools identified pursuant to subdivisions (a) and (b) prior to
16those pupils beginning an extended school year program under
17this section. At the end of the school year the school district shall
18again test the pupils in kindergarten and grades 1 to 12, inclusive,
19to determine the grade level at which those pupils are performing.

20(f) The department shall approve each of the following areas in
21each elementary school identified as high-priority pursuant to
22subdivision (a):

23(1) Curricula.

24(2) Testing instruments.

25(3) Schoolday length.

26(4) Teacher selection, teacher mentoring, and staff development
27processes.

28(g) The department shall review teacher compensation, including
29salary and benefits, in each elementary school identified as
30high-priority pursuant to subdivision (a).

31(h) The department shall collect data as to each of the following
32items for each school in subdivisions (a) and (b):

33(1) Instructional materials used by, and made available to, the
34school.

35(2) Teacher capacity.

36(3) Any other baseline data deemed necessary by the department.

37(i) Instruction provided to pupils subject to this section during
38schooldays in excess of schooldays offered to other pupils shall
39be devoted to instruction in basic skills in mathematics and English
40language arts.

P294  1(j) In conjunction with the Legislative Analyst, the department
2shall contract for an independent evaluation to determine the
3effectiveness of the extended school year curriculum, instructional
4program, and materials provided pursuant to this section and funded
5pursuant to Section 41601.1 in improving pupil academic
6outcomes. Testing and data collection conducted pursuant to this
7section shall be administered under the oversight of the independent
8evaluator, who shall be provided with copies of all test results.
9Results of the evaluation shall be reported on or before January 1,
102002, to the Superintendent of Public Instruction, the Legislative
11Analyst, the Director of Finance, and the appropriate policy and
12fiscal committees of the Legislature. The Compton Unified School
13District shall be responsible for all costs incurred pursuant to this
14subdivision.

15(k) A percentage of funding appropriated for purposes of this
16section, in an amount to be determined by the Superintendent of
17Public Instruction, shall be used for purposes of testing and data
18collecting pursuant to this section.

end delete
19begin insert

begin insertSEC. 301.end insert  

end insert

begin insertSection 48206.3 of the end insertbegin insertEducation Codeend insertbegin insert is amended
20to read:end insert

21

48206.3.  

(a) Except for those pupils receiving individual
22instruction provided pursuant to Section 48206.5, a pupil with a
23temporary disability which makes attendance in the regular day
24classes or alternative education program in which the pupil is
25enrolled impossible or inadvisable shall receive individual
26instruction provided by thebegin insert schoolend insert district in which the pupil is
27deemed to reside.

28(b) For purposes of this section and Sections 48206.5, 48207,
29and 48208, the following terms have the following meanings:

30(1) “Individual instruction” means instruction provided to an
31individual pupil in the pupil’s home, in a hospital or other
32residential health facility, excluding state hospitals, or under other
33circumstances prescribed by regulations adopted for that purpose
34by thebegin delete State Board of Educationend deletebegin insert state boardend insert.

35(2) “Temporary disability” means a physical, mental, or
36emotional disability incurred while a pupil is enrolled in regular
37day classes or an alternative education program, and after which
38the pupil can reasonably be expected to return to regular day classes
39or the alternative education program without special intervention.
40A temporary disability shall not include a disability for which a
P295  1pupil is identified as an individual with exceptional needs pursuant
2to Section 56026.

3(c) (1) For purposes of computing average daily attendance
4pursuant to Sectionbegin delete 42238.5,end deletebegin insert 42238.05,end insert each clock hour of teaching
5time devoted to individual instruction shall count as one day of
6attendance.

7(2) begin deleteNo end deletebegin insertA end insertpupil shallbegin insert notend insert be credited with more than five days
8of attendance per calendar week, or more than the total number of
9calendar days that regular classes are maintained by thebegin insert schoolend insert
10 district inbegin delete anyend deletebegin insert aend insert fiscal year.

11(d) Notice of the availability of individualized instruction shall
12be given pursuant to Section 48980.

13begin insert

begin insertSEC. 302.end insert  

end insert

begin insertSection 48208 of the end insertbegin insertEducation Codeend insertbegin insert is amended
14to read:end insert

15

48208.  

(a) It shall be the primary responsibility of the parent
16or guardian of a pupil with a temporary disability to notify the
17school district in which the pupil is deemed to reside pursuant to
18Section 48207 of the pupil’s presence in a qualifying hospital.

19(b) Upon receipt of notification pursuant to subdivision (a), a
20school district shall do all of the following:

21(1) Within five working days of receipt of the notification,
22determine whether the pupil will be able to receive individualized
23instruction, and, if the determination is positive, when the
24individualized instruction may commence. Individualized
25instruction shall commence no later than five working days after
26the positive determination has been rendered.

27(2) Provide the pupil with individualized instruction pursuant
28to Section 48206.3. The school district may enter into an agreement
29with the school district in which the pupil previously attended
30regular day classes or an alternative education program, to have
31the school district the pupil previously attended provide the pupil
32with individualized instruction pursuant to Section 48206.3.

33(3) Within five working days of the commencement of
34individualized instruction, provide the school district in which the
35pupil previously attended regular day classes or an alternative
36education program with written notice that the pupil shall not be
37counted by thatbegin insert schoolend insert district for purposes of computing average
38daily attendance pursuant to Sectionbegin delete 42238.5,end deletebegin insert 42238.05,end insert effective
39the date on which individualized instruction commenced.

P296  1begin insert

begin insertSEC. 303.end insert  

end insert

begin insertSection 48310 of the end insertbegin insertEducation Codeend insertbegin insert is amended
2to read:end insert

3

48310.  

(a) The average daily attendance for pupils admitted
4by a school district of choice pursuant to this article shall be
5credited to thatbegin insert schoolend insert district pursuant to Section 46607. The
6attendance report for the school district of choice may include an
7identification of the school district of residence.

8(b) Notwithstanding other provisions of law, state aid for
9categorical education programs for pupils admitted under this
10article shall be apportioned to the school district of choice.

11(c) Forbegin delete anyend deletebegin insert aend insert school district of choice that is a basic aidbegin insert schoolend insert
12 district, the apportionment of state funds forbegin delete anyend delete average daily
13attendance credited pursuant to this section shall be 70 percent of
14thebegin insert schoolend insert districtbegin delete revenue limitend deletebegin insert local control funding formula
15grantend insert
calculated pursuant to Sectionbegin delete 42238end deletebegin insert 42238.02, as
16implemented by Section 42238.03,end insert
that would have been
17apportioned to thebegin insert schoolend insert district of residence. For purposes of
18this subdivision, the term “basic aidbegin insert schoolend insert district” means a school
19district that does not receive from the state, forbegin delete anyend deletebegin insert aend insert fiscal year
20in which the subdivision is applied, an apportionment of state funds
21begin delete pursuant toend deletebegin insert as described inend insert subdivisionbegin delete (h)end deletebegin insert (o)end insert of Sectionbegin delete 42238end delete
22begin insert 42238.02end insert.

23(d) The average daily attendance of pupils admitted by a school
24district of choice pursuant to this article shall be credited to that
25school district forbegin delete theend delete purposes of any determination under Article
262 (commencing with Section 17010) of Chapter 12 of Part 10begin insert of
27Division 1 of Title 1end insert
thatbegin delete utilizesend deletebegin insert usesend insert an average daily attendance
28 calculation.

29begin insert

begin insertSEC. 304.end insert  

end insert

begin insertSection 48359.5 of the end insertbegin insertEducation Codeend insertbegin insert is amended
30to read:end insert

31

48359.5.  

For a school district of enrollment that is a basic aid
32begin insert schoolend insert district, the apportionment of state funds forbegin delete anyend delete average
33daily attendance credited pursuant to this article shall be 70 percent
34of thebegin insert schoolend insert districtbegin delete revenue limitend deletebegin insert local control funding formula
35grantend insert
that would have been apportioned to the school district of
36residencebegin insert pursuant to Section 42238.02, as implemented by Section
3742238.03end insert
. Apportionment of these funds shall begin in the second
38consecutive year of enrollment, and continue annually until the
39pupil graduates from, or is no longer enrolled in, the school district
40of enrollment. For purposes of this section, “basic aid school
P297  1district” means a school district that does not receive an
2apportionment of state fundsbegin delete pursuant toend deletebegin insert as described inend insert
3 subdivisionbegin delete (h)end deletebegin insert (o)end insert of Sectionbegin delete 42238end deletebegin insert 42238.02end insert forbegin delete anyend deletebegin insert aend insert fiscal year
4in which this subdivision may apply.

5begin insert

begin insertSEC. 305.end insert  

end insert

begin insertArticle 2 (commencing with Section 48640) of
6Chapter 4 of Part 27 of Division 4 of Title 2 of the end insert
begin insertEducation Codeend insert
7begin insert is repealed.end insert

8begin insert

begin insertSEC. 306.end insert  

end insert

begin insertSection 48660 of the end insertbegin insertEducation Codeend insertbegin insert is amended
9to read:end insert

10

48660.  

The governing board of a school district may establish
11one or more community day schools for pupils who meet one or
12more of the conditions described in subdivision (b) of Section
1348662. A community day school may serve pupils in any of
14kindergarten and grades 1 to 6, inclusive, or any of grades 7 to 12,
15inclusive, or the same or lesser included range of grades as may
16be found inbegin delete anyend deletebegin insert anend insert individual middle or junior high school operated
17by thebegin insert schoolend insert district. If a school district is organized as abegin insert schoolend insert
18 district that serves kindergarten and grades 1 to 8, inclusive, but
19no higher grades, the governing board of the school district may
20establish a community day school for any kindergarten and grades
211 to 8, inclusive, upon a two-thirds vote of thebegin insert governingend insert boardbegin insert of
22the school districtend insert
. It is the intent of the Legislature, that to the
23extent possible, the governing board of a school district operating
24a community day school for any of kindergarten and grades 1 to
258, inclusive, separate younger pupils from older pupils within that
26community day school.begin delete Except as provided in Section 47634, a
27charter school may not receive funding as a community day school
28unless it meets all the conditions of apportionment set forth in this
29article.end delete

30begin insert

begin insertSEC. 307.end insert  

end insert

begin insertSection 48660.2 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
31

48660.2.  

(a) Notwithstanding any other provision of law, and
32as a condition of receiving apportionments under this article, school
33districts operating one or more community day schools shall
34annually report to the Superintendent, on forms approved by the
35State Board of Education, the direct instructional costs and
36documented support costs of their community day schools, using
37definitions included in the California School Accounting Manual,
38Part I, as it read on July 1, 1997, except that districts may include
39in these reports the costs of rents and leases for facilities used by
40community day schools and maintenance and operations costs for
P298  1facilities used by community day schools. Each school district that
2has received approval from the department to use the standardized
3account code structure may satisfy the requirement set forth in this
4subdivision by reporting the direct costs of the community day
5school program, and shall maintain documentation of all
6noninstructional costs charged to the community day school
7program.

8(b) The Superintendent shall do each of the following:

9(1) Multiply the total of all funds received by each school district
10on behalf of pupils while enrolled in community day schools by
110.9.

12(2) Subtract the total of each school district’s costs for
13community day schools, as determined pursuant to subdivision
14(a), from the amount determined pursuant to paragraph (1).

15(3) If the amount determined pursuant to paragraph (2) for a
16school district is positive, the Superintendent shall subtract that
17amount from the school district’s next apportionment.

18(c) (1) For purposes of making the computation required by
19paragraph (1) of subdivision (b) for the 2004-05 fiscal year, the
20“total of all funds received” means the total of all funds received
21in the 2002-03 to 2004-05 fiscal years, inclusive.

22(2) For purposes of making the computation required by
23paragraph (2) of subdivision (b) for the 2004-05 fiscal year, the
24“school district’s costs” means the school district’s costs incurred
25in the 2002-03 to 2004-05 fiscal years, inclusive.

end delete
26begin insert

begin insertSEC. 308.end insert  

end insert

begin insertSection 48663 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
27

48663.  

(a) The minimum schoolday in a community day school
28is 360 minutes of classroom instruction provided by a certificated
29employee of the district reporting the attendance of the pupils for
30apportionment funding.

31(b) A pupil enrolled in a community day school may not
32generate more than one day of community day school attendance
33credit in a schoolday for any purpose.

34(c) For the purposes of calculating the additional funding
35provided to a school district pursuant to Section 48664, only
36community day school attendance shall be reported in clock hours.
37Attendance of less than five clock hours in a schoolday shall be
38disregarded for purposes of Section 48664. Five clock hours of
39attendance in one schoolday shall be deemed to be one-half day
40of attendance, for purposes of additional funding pursuant to
P299  1Section 48664. Six clock hours or more of attendance in one
2schoolday shall be deemed to be one day of attendance, for
3purposes of additional funding pursuant to Section 48664.

4(d) Independent study may not be utilized as a means of
5providing any part of the minimum instructional day provided
6pursuant to subdivision (a).

7(e) A community day school’s academic programs shall be
8comparable to those available to pupils of a similar age in the
9school district.

end delete
10begin insert

begin insertSEC. 309.end insert  

end insert

begin insertSection 48664 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
11

48664.  

(a) (1) In addition to funds from all other sources, the
12Superintendent of Public Instruction shall apportion to each school
13district that operates a community day school four thousand dollars
14($4,000) per year, and for each county office of education that
15operates a community day school three thousand dollars ($3,000)
16per year, for each unit of average daily attendance reported at the
17annual apportionment for pupil attendance at community day
18schools, adjusted annually commencing with the 1999-2000 fiscal
19year for the inflation adjustment calculated pursuant to subdivision
20(b) of Section 42238.1. Average daily attendance reported for this
21program shall not exceed 0.375 percent of a district’s prior year
22P2 average daily attendance in an elementary school district, 0.5
23percent of a district’s prior year P2 average daily attendance in a
24unified school district, or 0.625 percent of a district’s prior year
25P2 average daily attendance in a high school district. The units of
26average daily attendance of a community day school operated by
27a county office of education shall not exceed the unused units of
28average daily attendance of the community day schools operated
29by the school districts within the jurisdiction of that county office
30of education.

31(2) The Superintendent of Public Instruction may reallocate to
32any school district any unexpended balance of the appropriations
33made for the purposes of this subdivision for actual pupil
34attendance in excess of the percentage specified in this subdivision
35for the school district in an amount not to exceed one-half of that
36percentage. However, the average daily attendance generated by
37pupils expelled pursuant to subdivision (d) of Section 48915, shall
38not be subject to these percentage caps on average daily attendance.

39(b) The average daily attendance of a community day school
40shall be determined by dividing the total number of days of
P300  1attendance in all full school months, by a divisor of 70 in the first
2period of each fiscal year, by a divisor of 135 in the second period
3of each fiscal year, and by a divisor of 180 at the annual time of
4each fiscal year.

5(c) The Superintendent of Public Instruction shall apportion to
6each school district that operates a community day school an
7amount equal to four dollars ($4), adjusted annually commencing
8with the 1999-2000 fiscal year for inflation pursuant to subdivision
9(b) of Section 42238.1, multiplied by the total of the number of
10hours each schoolday, up to a maximum of two hours daily, that
11each community day school pupil remains at the community day
12school under the supervision of an employee of the school district,
13or a consortium of school districts pursuant to Section 48916.1,
14reporting the attendance of the pupils for apportionment funding
15following completion of the full six-hour instructional day.

16(d) It is the intent of the Legislature that districts enter into
17consortia, as feasible, for the purpose of providing community day
18school programs. Any school district with fewer than 2,501 units
19of average daily attendance may request a waiver for any fiscal
20year of the funding limitations set forth in this section. The
21Superintendent of Public Instruction shall approve a waiver if he
22or she deems it necessary in order to permit the operation of a
23community day school of reasonably comparable quality to those
24offered in a school district with 2,501 or more units of average
25daily attendance. In no event shall the amount allocated pursuant
26to a waiver exceed the amount provided for one teacher pursuant
27to Section 42284, for pupils enrolled in kindergarten and grades
281 to 6, inclusive, or the amount provided for one teacher pursuant
29to Section 42284, for pupils enrolled in grades 7 to 12, inclusive.
30The provisions of this act shall not apply to any school district that
31applied for a waiver within the funding limits established by this
32subdivision but was denied funding or not fully funded.

33(e) The State Department of Education shall evaluate and report
34to the appropriate legislative policy committees and budget
35committees on or before October 1, 1998, and for two years
36thereafter the following programmatic and fiscal issues:

37(1) The number of expulsions statewide.

38(2) The number of school districts operating community day
39schools.

40(3) Status of the countywide plans as defined in Section 48926.

P301  1(4) An evaluation of the community day school average daily
2attendance funding percentage cap.

3(5) Number of small school districts requesting and the number
4receiving a waiver under this section.

5(6) The effect of hourly accounting under Section 48663 for
6purposes of receiving the additional funding under Section 48664.

7(7) The number of pupils and average daily attendance served
8in community day programs, further identified as the number
9expelled pursuant to subdivision (b) of Section 48915, subdivision
10(d) of Section 48915, other expulsion criteria, or referred through
11a formal district process.

12(8) Pupil outcome data and other data as required under Section
1348916.1.

14(9) Other programmatic or fiscal matters as determined by the
15State Department of Education.

16(f) The additional funds provided in subdivisions (a), (c), and
17(d) shall only be allocated to the extent that funds are appropriated
18for this purpose in the annual Budget Act or other legislation, or
19both, except for pupils expelled pursuant to subdivision (d) of
20Section 48915. For pupils expelled pursuant to subdivision (d) of
21Section 48915, the funds apportioned under subdivision (a) are
22continuously appropriated from the General Fund to Section A of
23the State School Fund.

24(g) A one-time adjustment shall be made to the amount specified
25in subdivision (a), for the 1998-99 fiscal year and subsequent fiscal
26years, by increasing that amount by the statewide average quotient
27resulting from dividing the average daily attendance specified in
28subparagraph (B) of paragraph (3) of subdivision (a) of Section
2942238.8 by the amount specified in subparagraph (C) of paragraph
30(3) of subdivision (a) of Section 42238.8.

end delete
31begin insert

begin insertSEC. 310.end insert  

end insert

begin insertSection 48667 of the end insertbegin insertEducation Codeend insertbegin insert is amended
32to read:end insert

33

48667.  

begin delete(a)end deletebegin deleteend deleteForbegin delete theend delete purposes of this article, each county office
34of education shall be deemed to be a school district.

begin delete

35(b) The Superintendent of Public Instruction shall use the
36revenue limit per unit of average daily attendance of the statewide
37average juvenile court school revenue limit per unit of average
38daily attendance for a community day school operated by a county
39office of education.

end delete
P302  1begin insert

begin insertSEC. 311.end insert  

end insert

begin insertSection 49430.5 of the end insertbegin insertEducation Codeend insertbegin insert is amended
2to read:end insert

3

49430.5.  

(a) The reimbursement a school receives for free and
4reduced price meals sold or served to pupils in elementary, middle,
5or high schools included within a school district, charter school,
6or county office of education shall bebegin delete twenty-one cents ($0.21)end delete
7begin insert specified in the annual end insertbegin insertBudget end insertbegin insertActend insert.

8(b) To qualify for the reimbursement for free and reduced price
9meals provided to pupils in elementary, middle, or high schools,
10a school shall follow the Enhanced Food Based Meal Pattern,
11Nutrient Standard Meal Planning, or Traditional Meal Pattern
12developed by the United States Department of Agriculture or the
13SHAPE Menu Patterns developed by the state.

14(c) The reimbursement ratesbegin delete set forth in this sectionend deletebegin insert specified
15in the annual Budget Actend insert
shall be adjusted annually for increases
16in cost of living in the same manner set forth inbegin delete Section 42238.1end delete
17begin insert paragraph (2) of subdivision (d) of Section 42238.02end insert.

18begin insert

begin insertSEC. 312.end insert  

end insert

begin insertSection 49452.8 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
19

49452.8.  

(a) A pupil, while enrolled in kindergarten in a public
20school, or while enrolled in first grade in a public school if the
21pupil was not previously enrolled in kindergarten in a public
22school, no later than May 31 of the school year, shall present proof
23of having received an oral health assessment by a licensed dentist,
24or other licensed or registered dental health professional operating
25within his or her scope of practice, that was performed no earlier
26than 12 months prior to the date of the initial enrollment of the
27pupil.

28(b) The parent or legal guardian of a pupil may be excused from
29complying with subdivision (a) by indicating on the form described
30in subdivision (d) that the oral health assessment could not be
31completed because of one or more of the reasons provided in
32subparagraphs (A) to (C), inclusive, of paragraph (2) of subdivision
33(d).

34(c) A public school shall notify the parent or legal guardian of
35a pupil described in subdivision (a) concerning the assessment
36requirement. The notification, at a minimum, shall consist of a
37letter that includes all of the following:

38(1) An explanation of the administrative requirements of this
39section.

40(2) Information on the importance of primary teeth.

P303  1(3) Information on the importance of oral health to overall health
2and to learning.

3(4) A toll-free telephone number to request an application for
4Healthy Families, Medi-Cal, or other government-subsidized health
5insurance programs.

6(5) Contact information for county public health departments.

7(6) A statement of privacy applicable under state and federal
8laws and regulations.

9(d) In order to ensure uniform data collection, the department,
10in consultation with interested persons, shall develop and make
11available on the Internet Web site of the department, a standardized
12notification form as specified in subdivision (c) that shall be used
13by each school district. The standardized form shall include all of
14the following:

15(1) A section that can be used by the licensed dentist or other
16licensed or registered dental health professional performing the
17assessment to record information that is consistent with the
18information collected on the oral health assessment form developed
19by the Association of State and Territorial Dental Directors.

20(2) A section in which the parent or legal guardian of a pupil
21can indicate the reason why an assessment could not be completed
22by marking the box next to the appropriate reason. The reasons
23for not completing an assessment shall include all of the following:

24(A) Completion of an assessment poses an undue financial
25burden on the parent or legal guardian.

26(B) Lack of access by the parent or legal guardian to a licensed
27dentist or other licensed or registered dental health professional.

28(C) The parent or legal guardian does not consent to an
29assessment.

30(e) Upon receiving completed assessments, all school districts,
31by December 31 of each year, shall submit a report to the county
32office of education of the county in which the school district is
33located. The report shall include all of the following:

34(1) The total number of pupils in the district, by school, who
35are subject to the requirement to present proof of having received
36an oral health assessment pursuant to subdivision (a).

37(2) The total number of pupils described in paragraph (1) who
38present proof of an assessment.

39(3) The total number of pupils described in paragraph (1) who
40could not complete an assessment due to financial burden.

P304  1(4) The total number of pupils described in paragraph (1) who
2could not complete an assessment due to lack of access to a
3licensed dentist or other licensed or registered dental health
4professional.

5(5) The total number of pupils described in paragraph (1) who
6could not complete an assessment because their parents or legal
7guardians did not consent to their child receiving the assessment.

8(6) The total number of pupils described in paragraph (1) who
9are assessed and found to have untreated decay.

10(7) The total number of pupils described in paragraph (1) who
11did not return either the assessment form or the waiver request to
12the school.

13(f) Each county office of education shall maintain the data
14described in subdivision (e) in a manner that allows the county
15office to release it upon request.

16(g) This section does not prohibit any of the following:

17(1) County offices of education from sharing aggregate data
18collected pursuant to this section with other governmental agencies,
19philanthropic organizations, or other nonprofit organizations for
20the purpose of data analysis.

21(2) Use of assessment data that is compliant with the federal
22Health Insurance Portability and Accountability Act of 1996 (P.L.
23104-191) for purposes of conducting research and analysis on the
24oral health status of public school pupils in California.

25(h) This section does not preclude a school district or county
26office of education from developing a schoolsite-based oral health
27assessment program to meet the requirements of this section.

28(i) The Office of Oral Health of the Chronic Disease Control
29Branch of the State Department of Public Health shall conduct an
30evaluation of the requirements imposed by this section and prepare
31and submit a report to the Legislature by January 1, 2010, that
32discusses improvements in the oral health of children resulting
33from the imposition of those requirements. The Office of Oral
34Health may receive private funds and contract with the University
35of California to fulfill the duties described in this subdivision.

36(j) Funds appropriated in the annual Budget Act for the activities
37required by this section shall first be used to offset reimbursement
38provided to local educational agencies pursuant to Part 7
39(commencing with Section 17500) of Division 4 of Title 2 of the
40Government Code for state-mandated costs imposed by this section.

end delete
P305  1begin insert

begin insertSEC. 313.end insert  

end insert

begin insertSection 49536 of the end insertbegin insertEducation Codeend insertbegin insert is amended
2to read:end insert

3

49536.  

begin deleteThe State Department of Education end deletebegin insert(a)end insertbegin insertend insertbegin insertThe department end insert
4shall,begin delete prior toend deletebegin insert beforeend insert July 1 of each year, prescribe an adjustment
5in the state meal contribution rates established pursuant to this
6section for the forthcoming fiscal year. The adjustments shall
7reflect the changes in the cost of operating a school breakfast and
8lunch program and shall be made commencing on July 1 of each
9year. The adjustment shall be the average of the separate indices
10of the “Food Away From Home Index” for Los Angeles and San
11Francisco as prepared by the United States Bureau of Labor
12Statistics.

begin delete

13In

end delete

14begin insert(b)end insertbegin insertend insertbegin insertIn end insertgiving effect to the cost-of-living provisions of this
15section, thebegin delete Department of Educationend deletebegin insert departmentend insert shall use the
16same month for computation of the percentage change in the cost
17of living after July 1, 1975. The same month shall be used annually
18thereafter. The product ofbegin delete anyend deletebegin insert aend insert percentage increase or decrease
19in the average index and the per meal reimbursement disbursement
20rate shall be adjusted by the amount ofbegin delete anyend deletebegin insert aend insert cost-of-living change
21currently in effect pursuant to the provisions of this section.

begin delete

22Commencing

end delete

23begin insert(c)end insertbegin insertend insertbegin insertCommencing end insertwith the 1990-91 fiscal year, the cost-of-living
24adjustment shall be equal to the percentage change determined
25pursuant tobegin delete subdivision (b) of Section 42238.1end deletebegin insert paragraph (2) of
26subdivision (d) of Section 42238.02end insert
.

27begin insert

begin insertSEC. 314.end insert  

end insert

begin insertSection 51056 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
28

51056.  

A course of study for each adult school shall be prepared
29under the direction of the governing board of the district
30maintaining the adult school and shall be subject to approval of
31the Department of Education.

end delete
32begin insert

begin insertSEC. 315.end insert  

end insert

begin insertArticle 15 (commencing with Section 51870) of
33Chapter 5 of Part 28 of Division 4 of Title 2 of the end insert
begin insertEducation Codeend insert
34begin insert is repealed.end insert

35begin insert

begin insertSEC. 316.end insert  

end insert

begin insertSection 52051 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
36

52051.  

The Public School Performance Accountability Program
37is hereby established and shall consist of the following three
38component parts:

39(a) The state Academic Performance Index, to be known as the
40API.

P306  1(b) The Immediate Intervention/Underperforming Schools
2Program.

3(c) The Governor’s High Achieving/Improving Schools
4Program.

end delete
5begin insert

begin insertSEC. 317.end insert  

end insert

begin insertSection 52052.2 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
6

52052.2.  

A school that receives an API score with an asterisk
7shall be eligible for the Governor’s Performance Awards Program,
8as set forth in Section 52057 and for participation in the Immediate
9Intervention/Underperforming Schools Program, as set forth in
10Section 52053.

end delete
11begin insert

begin insertSEC. 318.end insert  

end insert

begin insertSection 52052.5 of the end insertbegin insertEducation Codeend insertbegin insert is amended
12to read:end insert

13

52052.5.  

(a) The Superintendent shall establish a broadly
14representative and diverse advisory committee to advise the
15Superintendentbegin delete of Public Instructionend delete and the state board on all
16appropriate matters relative to the creation of the Academic
17Performance Indexbegin delete and the implementation of the Immediate
18Intervention/Underperforming Schools Program and the High
19Achieving/Improving Schools Programend delete
. Members of the advisory
20committee shall serve without compensation for terms not to
21exceed two years. The department shall provide staff to the
22advisory panel.

23(b) By July 1, 2005, the advisory committee established pursuant
24to this section shall make recommendations to the Superintendent
25on the appropriateness and feasibility of a methodology for
26generating a measurement of academic performance bybegin delete utilizingend delete
27begin insert usingend insert unique pupil identifiers for pupils in kindergarten and any
28of grades 1 to 12, inclusive, and annual academic achievement
29growth to provide a more accurate measure of a school’s growth
30over time. If appropriate and feasible, the Superintendent, with the
31approval of the state board, shall thereafter implement this
32measurement of academic performance.

33(c) By January 1, 2011, the Superintendent and the state board,
34in consultation with the advisory committee established pursuant
35to subdivision (a), shall make recommendations to the Legislature
36and the Governor on each of the following:

37(1) Approaches to increasing the emphasis of science and
38mathematics in the calculation of the Academic Performance Index
39or any successor measure.

P307  1(2) Methods to incorporate into the Academic Performance
2Index, or into other aspects of the state’s accountability system, a
3measure of the degree to which pupils graduate from high school
4with the skills and knowledge necessary to attain entry-level
5employment in business or industry, as set forth in subdivision (b)
6of Section 51228.

7(3) Methods to incorporate into the Academic Performance
8Index, or into other aspects of the state’s accountability system, a
9measure of the degree to which pupils graduate from high school
10with the skills and knowledge necessary to succeed in
11postsecondary education.

12(d) By July 1, 2013, the Superintendent and the state board, in
13consultation with the advisory committee established pursuant to
14subdivision (a), shall make recommendations to the Legislature
15and the Governor on the establishment of a methodology for
16generating a measurement of group and individual academic
17performance growth by utilizing individual pupil results from a
18longitudinally valid achievement assessment system. These
19recommendations should also address any interactions between
20the Academic Performance Index, or any successor measure, and
21individual test scores from the state’s tests, as well as implications
22for the reauthorization of the state’s assessment system. This
23paragraph shall not be construed to supersede the provisions of
24Chapter 273 of the Statutes of 2009.

25begin insert

begin insertSEC. 319.end insert  

end insert

begin insertArticle 3 (commencing with Section 52053) of
26Chapter 6.1 of Part 28 of Division 4 of Title 2 of the end insert
begin insertEducation
27Code
end insert
begin insert is repealed.end insert

28begin insert

begin insertSEC. 320.end insert  

end insert

begin insertArticle 3.5 (commencing with Section 52055.600)
29of Chapter 6.1 of Part 28 of Division 4 of Title 2 of the end insert
begin insertEducation
30Code
end insert
begin insert is repealed.end insert

31begin insert

begin insertSEC. 321.end insert  

end insert

begin insertSection 52055.750 of the end insertbegin insertEducation Codeend insertbegin insert is amended
32to read:end insert

33

52055.750.  

(a) A school district or chartering authority that
34receives funding pursuant to this article shall agree to do all of the
35following for each funded school within its jurisdiction:

36(1) Comply with the program requirements of this article and
37require that each funded schoolsite complete and meet the criteria
38of an academic review process that includes the elements of the
39school assistance and intervention team review process described
40in Section 52055.51begin insert, as that section read on January 1, 2013end insert.

P308  1(2) Ensure that funded schools meet the requirements of this
2article.

3(3) Ensure that each school administrator in a funded school is
4confirmed to have exemplary qualifications and experience by the
5end of the first full year of funding and in each year of funding
6thereafter. Those qualifications shall include the ability to support
7the success of all pupils by facilitating the development,
8articulation, implementation, and stewardship of a vision of
9learning that is shared and supported by the school community as
10well as the ability to advocate, nurture, and sustain a school culture
11and instructional program that is conducive to pupils learning and
12staff professional growth. The school district or chartering authority
13shall provide for high quality professional development for each
14administrator through leadership training, coaching, and mentoring
15and shall take all reasonable steps to maintain stable school
16leadership in schools that receive funding pursuant to this article.
17To the extent appropriate the professional development shall be
18similar in quality and rigor to that provided pursuant to the
19Administrator Training Program under Article 4.6 (commencing
20with Section 44510) of Chapter 3 of Part 25begin insert, as that article read
21on January 1, 2012end insert
.

22(4) Provide all fiscal and evaluation data requested by the
23Superintendent for initial approval, annual reviews, and reports.

24(5) Comply with subdivisions (a) to (c), inclusive, of Section
2552055.630,begin insert as that section read on January 1, 2013,end insert and in the
26same manner consult with the exclusive representative of classified
27employees.

28(6) Assist eligible schools in developing and carrying out a plan
29to implement the provisions of this article to ensure thebegin insert schoolend insert
30 district’s plan supports the work of the school.

31(7) Agree to focus on conditions that improve instruction and
32achievement in funded schools.

33(8) Express its full understanding that not meeting annual and
34final program and academic achievement requirements under this
35article will result in the termination of funding.

36(9) Ensure that the funds received on behalf of funded schools
37are expended on that school, except that during the first partial
38year of fundingbegin insert schoolend insert districts may use funding under this article
39for facilities necessary to meet the class size reduction requirements
P309  1of this article, if all funds are spent on funded schools within the
2begin insert schoolend insert district.

3(10) Use the uniform process recommended by the
4Superintendent pursuant to subdivision (d) of Section 52055.730
5to ensure that the average teaching experience of the classroom
6teachers in funded schools is equal to or greater than the average
7teaching experience of classroom teachers in the school district as
8a whole.

9(b) If not expressly prohibited by federal law, a school district
10or chartering authority on behalf of a funded school is exempt from
11requirements imposed on the use of state categorical or federal
12funds in the consolidated application, except those funds related
13to economic impact aid, if those funds are identified in the revised
14plan of Section 52055.755. Funded schools are exempt from all
15program requirements associated with funds in the consolidated
16application, except requirements regarding parent advisory
17committees, schoolsite councils, and special education. Funds
18provided under the economic aid program shall not be used to
19implement this program.

20(c) Each funded school shall ensure that each teacher in a
21subject-specific classroom or teaching covered subjects participates
22in professional development that is made available by thebegin insert schoolend insert
23 district or the schoolsite councils, is developed in a collaborative
24process with interested parties, and is articulated in an improvement
25plan. For purposes of this article, professional development
26activities may include collaboration time for teachers to develop
27new instructional lessons or analyze pupil data, mentoring projects
28for new teachers, or extra support for teachers to improve practice.
29At a minimum, appropriate professional development for the site
30shall be part of a coherent plan that combines school activities
31within the school, including, but not limited to, lesson study or
32coteaching, and external learning opportunities that meet all of the
33following criteria:

34(1) Are related to the academic subjects taught.

35(2) Provide time to meet and work with other teachers.

36(3) Support instruction and pupil learning to improve instruction
37in a manner that is consistent with academic content standards.

38(4) Include an average of 40 hours per teacher per year.

39(d) At a minimum, professional development in a self-contained
40classroom shall include content regarding mathematics, science,
P310  1English language arts, reading, and English language development.
2Professional development for teachers teaching subject specific
3courses shall include the specific subject and English language
4development. To the extent appropriate the professional
5development shall be similar in quality and rigor to the training
6provided under the Mathematics and Reading Professional
7Development Program in Article 3 (commencing with Section
899230) of Chapter 5 of Part 65begin insert, as that article read on January 1,
92012end insert
.

10(e) On or before the end of the first three years of full funding,
11funded schools shall do the following:

12(1) Increase actual pupil attendance, as compared with monthly
13enrollment in the school.

14(2) For secondary schools, increase graduation rates as described
15in Section 52055.640.

16begin insert

begin insertSEC. 322.end insert  

end insert

begin insertArticle 4 (commencing with Section 52056) of
17Chapter 6.1 of Part 28 of Division 4 of Title 2 of the end insert
begin insertEducation
18Code
end insert
begin insert is repealed.end insert

19begin insert

begin insertSEC. 323.end insert  

end insert

begin insertArticle 3.8 (commencing with Section 52060) is
20added to Chapter 6.1 of Part 28 of Division 4 of Title 2 of the end insert
begin insert21Education Codeend insertbegin insert, to read:end insert

begin insert

22 

23Article begin insert3.8.end insert  Local Control and Accountability Plans
24

 

25

begin insert52060.end insert  

(a) The governing board of each school district shall
26adopt a local control and accountability plan using a template
27adopted by the state board.

28(b) A local control and accountability plan adopted by a
29governing board of a school district shall be effective for a period
30of at least one year but no longer than five years. If a governing
31board of a school district adopts a plan that would be effective for
32a period longer than one year, the governing board must approve
33an update to the existing plan at least annually.

34(c) On or before July 1 of each fiscal year, a governing board
35of a school district shall take action on a local control and
36accountability plan for the subsequent fiscal year, either by
37adopting a new local control and accountability plan or by
38approving an update to a plan the governing board of the school
39district has previously adopted.

P311  1(d) A governing board of a school district shall update the local
2control and accountability plan if the governing board of the school
3district determines that changes in the composition of the base
4Academic Performance Index require the school district to take
5specific actions and use strategies that are not already included
6in the plan to meet the Academic Performance Index growth target
7for each school in the school district. If the governing board of
8the school district determines that an update is necessary, the
9governing board of the school district shall approve the update
10by November 1 of the year in which the new base Academic
11Performance Index is released.

12(e) A governing board of a school district shall demonstrate
13that a local control and accountability plan approved by the
14governing board of the school district was developed in
15consultation with teachers, principals, administrators, other school
16personnel, parents, and pupils.

17(f) A governing board of a school district shall ensure that a
18local control and accountability plan is consistent with all school
19plans submitted pursuant to Section 64001 by a school district for
20schools within the school district.

21(g) Before adopting a local control and accountability plan or
22approving an update to an existing plan, a governing board of a
23school district shall hold at least one public hearing to solicit
24recommendations and opinions of members of the public regarding
25specific actions and strategies that should be included in the plan.
26The agenda for the public hearing shall be posted at least 72 hours
27before the public hearing and shall include the location where the
28local control and accountability plan will be available for public
29inspection. This public hearing shall be held at the same meeting
30as the public hearing required by paragraph (1) of subdivision (a)
31of Section 42127.

32(h) A governing board of a school district shall notify members
33of the public, using the most efficient method possible, of the
34opportunity to submit written recommendations and opinions
35regarding specific actions and strategies that should be included
36in the local control and accountability plan. This subdivision shall
37not be interpreted to require a school district to produce printed
38notices or to send notices by mail.

39(i) A governing board of a school district shall adopt a local
40control and accountability plan in a public meeting. This meeting
P312  1shall be held after, but not on the same day as, the public hearing
2held pursuant to subdivision (g). This meeting shall be the same
3meeting during which the governing board of the school district
4considers a budget pursuant to paragraph (2) of subdivision (a)
5of Section 42127.

6(j) A governing board of a school district may adopt a revised
7local control and accountability plan if the governing board of
8the school district is required to adopt a revised budget. A revised
9local control and accountability plan shall be adopted at the same
10meeting that a revised budget is adopted.

11

begin insert52061.end insert  

(a) Not later than five days after adoption of a local
12control and accountability plan or approval of an update to an
13existing plan pursuant to Section 52060, the governing board of
14a school district shall file the plan with the county superintendent
15of schools. The plan shall be filed on the same day that the
16governing board of the school district files the budget pursuant to
17paragraph (2) of subdivision (a) of Section 42127.

18(b) The county superintendent of schools shall do all of the
19following:

20(1) Examine if the plan adheres to the template adopted by the
21state board pursuant to Section 52066 and includes all of the
22components identified in subdivision (a) of Section 52064.

23(2) Determine if the budget for the subsequent fiscal year
24adopted by the governing board of the school district includes
25expenditures sufficient to implement the specific actions and
26strategies included in the local control and accountability plan
27adopted by the governing board of the school district, based on
28the projections of the costs included in the plan.

29(3) In making the determinations pursuant to paragraphs (1)
30and (2), consider input from teachers, principals, administrators,
31other school personnel, parents, and pupils from the school district.

32

begin insert52062.end insert  

(a) Each county superintendent of schools shall
33develop, and each county board of education shall adopt, a local
34control and accountability plan using a template adopted by the
35state board.

36(b) A local control and accountability plan adopted by a county
37board of education shall be effective for a period of at least one
38year but no longer than five years. If a county board of education
39adopts a plan that would be effective for a period longer than one
P313  1year, the county board of education must approve an update to
2the plan at least annually.

3(c) On or before July 1 of each fiscal year, a county board of
4education shall take action on a local control and accountability
5plan for the subsequent fiscal year, either by adopting a new local
6control and accountability plan or by approving an update to a
7plan the county board of education has previously adopted.

8(d) A county superintendent of schools shall update and present
9to the county board of education for approval the local control
10and accountability plan if the county board of education determines
11that changes in the composition of the base Academic Performance
12Index require the county superintendent of schools to take specific
13actions and use strategies that are not already included in the plan
14to meet the Academic Performance Index growth target for each
15school operated by the county superintendent of schools. If the
16county board of education determines that an update is necessary,
17the county board of education shall approve the update by
18November 1 of the year in which the base Academic Performance
19Index is released.

20(e) A county superintendent of schools shall demonstrate that
21a local control and accountability plan was developed in
22consultation with teachers, principals, administrators, other school
23personnel, parents, and pupils. A county superintendent of schools
24also shall demonstrate that the superintendents of all school
25districts in the county were consulted in the development of the
26plan.

27(f) A local control and accountability plan shall be consistent
28with all school plans submitted pursuant to Section 64001 by the
29county superintendent of schools for schools operated by the county
30superintendent of schools.

31(g) Before adopting a local control and accountability plan or
32approving an update to an existing plan, a county board of
33education shall hold at least one public hearing to solicit
34recommendations and opinions of members of the public regarding
35specific actions and strategies that should be included in the plan.
36The agenda for that hearing shall be posted at least 72 hours
37before the public hearing and shall include the location where the
38local control and accountability plan will be available for public
39inspection. The public hearing shall be held at the same meeting
40as the public hearing required by Section 1620.

P314  1(h) A county board of education shall notify members of the
2public, using the most efficient method possible, of the opportunity
3to submit written recommendations and opinions regarding specific
4actions and strategies that should be included in the local control
5and accountability plan. This subdivision shall not be interpreted
6to require a county board of education to produce printed notices
7or to send notices by mail.

8(i) A county board of education shall adopt a local control and
9 accountability plan in a public meeting. This meeting shall be held
10after, but not on the same day as, the public hearing held pursuant
11to subdivision (g). The meeting shall be the same meeting during
12which a county board of education considers a budget pursuant
13to Section 1620.

14(j) A county board of education may adopt a revised local
15control and accountability plan if the county board of education
16is required to adopt a revised budget. A revised local control and
17accountability plan shall be adopted at the same meeting that a
18revised budget is adopted.

19

begin insert52063.end insert  

(a) No later than five days after adoption of a local
20control and accountability plan or approval of an update to an
21existing plan pursuant to Section 52062 by a county board of
22education, the county superintendent of schools shall file the plan
23with the Superintendent, the county board of supervisors, and the
24county auditor. The plan shall be filed on the same day that the
25county superintendent of schools files the budget pursuant to
26subdivision (a) of Section 1622.

27(b) The Superintendent shall do all of the following:

28(1) Examine if the plan adheres to the template adopted by the
29state board pursuant to Section 52066 and includes all of the
30components identified in subdivision (a) of Section 52064.

31(2) Determine if the budget for the subsequent fiscal year
32adopted by the county board of education includes expenditures
33sufficient to implement the specific actions and strategies included
34in the local control and accountability plan adopted by the county
35board of education, based on the projections of the costs included
36in the plan.

37(3) In making the determinations pursuant to paragraphs (1)
38and (2), consider input from teachers, principals, administrators,
39other school personnel, parents, and pupils in the county.

P315  1

begin insert52064.end insert  

(a) A local control and accountability plan adopted
2by a governing board of a school district or a county board of
3education shall identify goals and describe the specific actions the
4school district or county superintendent of schools will take and
5strategies that will be used to achieve all of the following:

6(1) Implement, for all pupils, the content standards adopted by
7the state board pursuant to Sections 60605.8, 60605.10, and
860605.11.

9(2) Increase the Academic Performance Index for each school
10and for each numerically significant pupil subgroup pursuant to
11Section 52052 and reduce gaps in the Academic Performance
12Index and other measures of pupil achievement between
13 numerically significant pupil subgroups.

14(3) Improve pupil achievement of the content standards adopted
15by the state board pursuant to Sections 60605, 60605.2, 60605.3,
1660605.8, and 60605.85, at all grade levels, as evidenced by the
17results of statewide assessments pursuant to Article 4 (commencing
18with Section 60640) of Chapter 5 of Part 33, other statewide
19assessments, and appropriate local assessments.

20(4) Increase high school graduation rates, if a school district
21or a county superintendent of schools enrolls high school pupils,
22increase attendance rates, and reduce dropout rates.

23(5) Increase the percentage of pupils who have successfully
24completed each of the following:

25(A) Courses that satisfy the requirements for entrance to the
26University of California and the California State University.

27(B) Advanced placement courses.

28(C) Career technical education programs.

29(6) Identify and address needs of pupils, and schools
30predominantly serving pupils, who meet any of the following
31definitions:

32(A) Pupils who have been classified as an English learner
33pursuant to Section 52164.

34(B) Pupils who qualify for the free and reduced-price meal
35program pursuant to Section 49552.

36(C) Foster children as defined in Sections 300 and 601 of the
37Welfare and Institutions Code.

38(D) Pupils enrolled in a juvenile court school operated by a
39county superintendent of schools pursuant to subdivision (a) of
40Section 48645.2, if applicable.

P316  1(7) Remedy deficiencies in any school in the school district or
2any school operated by the county board of education and improve
3school conditions in any of the areas included in paragraphs (5),
4(6), and (8) of subdivision (b) of Section 33126. This includes
5ensuring access for each pupil to the following:

6(A) Sufficient textbooks and instructional materials.

7(B) Safe, clean, and adequate school facilities.

8(C) Qualified teachers.

9(8) Provide meaningful opportunities for parent involvement,
10including, at a minimum, supporting effective schoolsite councils
11or other structures at each school and advisory panels to the
12governing board of the school district or the county board of
13education or, if parents so choose, creating other processes or
14structures, such as creating the role of an ombudsman for parents,
15to address complaints and other issues raised by parents.

16(b) A local control and accountability plan developed by a
17county superintendent of schools and approved by a county board
18of education shall also include, in addition to the elements included
19in subdivision (a), goals related to addressing countywide needs,
20and describe specific actions and strategies to do all of the
21following:

22(1) Conduct effective oversight of school districts pursuant to
23Article 2 (commencing with Section 1240) of Chapter 2 of Part 2
24of Division 1 of Title 1 and Chapter 6 (commencing with Section
2542100) of Part 24 of Division 3 of Title 2.

26(2) Provide support to school districts in the county, including
27support related to school district operations, educational
28technology, and professional development, and guidance to school
29districts related to curriculum and instructional practices.

30(3) Coordinate instruction for expelled pupils pursuant to
31Section 48926.

32(c) A local control and accountability plan shall include an
33analysis of both the following:

34(1) Pupil achievement of those pupils enrolled in schools in a
35school district or schools operated by a county superintendent of
36schools at the time the plan is adopted by the governing board of
37the school district or the county board of education.

38(2) If a governing board of a school district or a county board
39of education previously has adopted a local control and
40accountability plan, progress made in implementing the goals
P317  1identified in the plan in effect immediately before the adoption of
2a new plan by the governing board of the school district or the
3county board of education.

4(d) For purposes of conducting the analysis required by
5subdivision (c), a governing board of a school district or a county
6superintendent of schools may consider qualitative information,
7including reviews conducted by panels of experts during visits to
8schools in the school district or schools operated by the county
9office of education.

10(e) Data reported in a local control and accountability plan
11shall be consistent with information reported on school
12accountability report cards for schools in a school district or
13schools operated by a county superintendent of schools.

14(f) A local control and accountability plan shall include
15projections of the costs of implementing the specific actions and
16strategies included in the plan. Expenditures that reflect these cost
17projections shall be included in the budget adopted by the
18governing board of the school district pursuant to Section 42127.

19(g) A local control and accountability plan adopted by a
20governing board of a school district shall document all of the
21following:

22(1) For those fiscal years in which it is anticipated that the
23school district will receive less funding than is calculated under
24the local control funding formula pursuant to Section 42238.02,
25as implemented by Section 42238.03, a projection of the total
26funding required for the specific actions the school district will
27take and strategies that will be used to implement paragraph (6)
28of subdivision (a), divided by the average daily attendance of the
29pupils for whom any of the definitions included in paragraph (6)
30of subdivision (a) apply. This amount of funding shall not be less
31than the total expenditures from the sources included in paragraphs
32(1) to (3), inclusive, of subdivision (i) of Section 42238.02 during
33the 2012-13 fiscal year for services for pupils for whom any of
34the definitions included in paragraph (6) of subdivision (a) applied
35during the 2012-13 fiscal year, divided by the average daily
36attendance of these students during the 2012-13 fiscal year.

37(2) For those fiscal years in which it is anticipated that the
38school district will receive funding equal to or greater than the
39amount calculated under the local control funding formula
40pursuant to Section 42238.02, as implemented by Section 42238.03,
P318  1a projection of the total funding required for the specific actions
2the school district will take and strategies that will be used to
3implement paragraph (6) of subdivision (a), divided by the average
4daily attendance of the pupils for which any of the definitions
5included in paragraph (6) of subdivision (a). This funding shall
6not be less than the supplemental grants and concentration grants
7the governing board of the school district projects receiving
8pursuant to subdivisions (e) and (f) of Section 42238.02, divided
9by the average daily attendance of the pupils for which any of the
10definitions included in paragraph (6) of subdivision (a) apply.

11(h) A local control and accountability plan adopted by a county
12board of education shall document all of the following:

13(1) For those fiscal years in which it is anticipated that the
14county office of education will receive less funding than is
15calculated under the county local control funding formula pursuant
16to Section 2574, a projection of the total funding required for the
17specific actions the county superintendent of schools will take and
18strategies that will be used to implement paragraph (6) of
19subdivision (a), divided by the average daily attendance of the
20pupils for whom any of the definitions included in paragraph (6)
21of subdivision (a) apply. This amount of funding shall not be less
22than the total expenditures from the sources included in paragraphs
23(1) and (2) of subdivision (g) of Section 2574 during the 2012-13
24fiscal year for services for pupils for whom any of the definitions
25included in paragraph (6) of subdivision (a) applied during the
262012-13 fiscal year, divided by the average daily attendance of
27these pupils during the 2012-13 fiscal year.

28(2) For those fiscal years in which it is anticipated that the
29county office of education will receive funding equal to or greater
30than the amount calculated under the county local control funding
31formula pursuant to Section 2574, a projection of the total funding
32required for the specific actions the county superintendent of
33schools will take and strategies that will be used to implement
34paragraph (6) of subdivision (a), divided by the average daily
35attendance of the pupils for which any of the definitions included
36in paragraph (6) of subdivision (a) apply. This funding shall not
37be less than the supplemental grants and concentration grants the
38county board of education projects receiving pursuant to
39subdivisions (b) and (c) of Section 2574, divided by the average
P319  1daily attendance of the pupils for which any of the definitions
2included in paragraph (6) of subdivision (a) apply.

3(i) A local control and accountability plan shall account for the
4funds provided to charter schools that elect to receive funding
5through the school district or the county office of education
6pursuant to Section 47651.

7

begin insert52065.end insert  

(a) The governing body of a charter school that elects
8to receive its funding directly, pursuant to Section 47651, shall
9adopt a local control and accountability plan using a template
10adopted by the state board.

11(b) Notwithstanding Section 52064, a local control and
12accountability plan adopted by the governing body of a charter
13school shall identify specific steps the charter school will take and
14strategies that will be used to accomplish the goals identified in
15the charter petition granted pursuant to Sections 47605, 47605.5,
1647605.6, 47605.8, and 47606.

17(c) A local control and accountability plan adopted by a
18governing body of a charter school shall be effective for a period
19 of at least one year but no longer than five years. If the governing
20body of the charter school adopts a plan that would be effective
21for a period longer than one year, the governing body of the
22charter school must approve an update to the existing plan at least
23annually.

24(d) On or before July 1 of each fiscal year, a governing body
25of a charter school shall take action on a local control and
26accountability plan for the subsequent fiscal year, either by
27adopting a new local control and accountability plan or by
28approving an update to a plan the charter school has previously
29adopted. The plan shall be submitted to the charter school’s
30chartering authority and the county superintendent of schools, or
31only to the county superintendent of schools if the county board
32of education is the chartering authority, on the same day that the
33charter school submits its preliminary budget pursuant to
34paragraph (1) of subdivision (a) of Section 47604.33.

35

begin insert52066.end insert  

(a) The state board shall adopt a template for use by
36school districts and a separate template for use by county
37superintendents of schools that includes the elements identified in
38Section 52064.

39(b) The state board shall also adopt a template for use by charter
40schools to satisfy the requirements of Section 52065.

P320  1(c) The templates developed by the state board shall allow a
2school district, county superintendent of schools, or charter school
3to complete a single local control and accountability plan to meet
4the requirements of this article and the requirements of the federal
5Elementary and Secondary Act related to local educational agency
6plans pursuant to Section 1112 of Subpart 1 of Part A of Title I of
7Public Law 107-110. The state board shall also take steps to
8minimize duplication of effort at the local level to the greatest
9extent possible.

10(d) If possible, the template identified in subdivision (a) for use
11by county superintendents of schools shall allow a county
12superintendent of schools to develop a single local control and
13accountability plan that would also satisfy the requirements of
14Section 48926.

15(e) The state board shall approve the templates identified in
16subdivisions (a) and (b) by January 30, 2014. Revisions to the
17templates shall be approved by the state board by January 1 before
18the fiscal year during which a template is to be used by a school
19district, county superintendent of schools, or charter school.

20(f) The adoption of a template by the state board shall not create
21a requirement for a governing board of a school district, a county
22board of education, or a governing body of a charter school to
23submit a local control and accountability plan to the state board,
24unless otherwise required by federal law. The Superintendent shall
25not require a local control and accountability plan to be submitted
26by a governing board of a school district or the governing body
27of a charter school. The state board may adopt a template that
28would authorize a school district or a charter school to submit to
29the state board only the sections of the local control and
30accountability plan required by federal law.

31(g) The state board may adopt emergency regulations for
32purposes of implementing this section.

end insert
33begin insert

begin insertSEC. 324.end insert  

end insert

begin insertChapter 6.8 (commencing with Section 52080) of
34Part 28 of Division 4 of Title 2 of the end insert
begin insertEducation Codeend insertbegin insert is repealed.end insert

35begin insert

begin insertSEC. 325.end insert  

end insert

begin insertChapter 6.9 (commencing with Section 52100) of
36Part 28 of Division 4 of Title 2 of the end insert
begin insertEducation Codeend insertbegin insert is repealed.end insert

37begin insert

begin insertSEC. 326.end insert  

end insert

begin insertChapter 6.10 (commencing with Section 52120) of
38Part 28 of Division 4 of Title 2 of the end insert
begin insertEducation Codeend insertbegin insert is repealed.end insert

39begin insert

begin insertSEC. 327.end insert  

end insert

begin insertChapter 7 (commencing with Section 52130) of Part
4028 of Division 4 of Title 2 of the end insert
begin insertEducation Codeend insertbegin insert is repealed.end insert

P321  1begin insert

begin insertSEC. 328.end insert  

end insert

begin insertChapter 8 (commencing with Section 52200) of Part
228 of Division 4 of Title 2 of the end insert
begin insertEducation Codeend insertbegin insert is repealed.end insert

3begin insert

begin insertSEC. 329.end insert  

end insert

begin insertChapter 8.3 (commencing with Section 52240) of
4Part 28 of Division 4 of Title 2 of the end insert
begin insertEducation Codeend insertbegin insert is repealed.end insert

5begin insert

begin insertSEC. 330.end insert  

end insert

begin insertChapter 8.5 (commencing with Section 52250) of
6Part 28 of Division 4 of Title 2 of the end insert
begin insertEducation Codeend insertbegin insert is repealed.end insert

7begin insert

begin insertSEC. 331.end insert  

end insert

begin insertChapter 8.6 (commencing with Section 52270) of
8Part 28 of Division 4 of Title 2 of the end insert
begin insertEducation Codeend insertbegin insert is repealed.end insert

9begin insert

begin insertSEC. 332.end insert  

end insert

begin insertSection 52301 of the end insertbegin insertEducation Codeend insertbegin insert is amended
10to read:end insert

11

52301.  

(a) begin delete(1)end deletebegin deleteend deleteThe county superintendent of schools of each
12countybegin delete, with the consent of the state board,end delete may establish and
13maintain, or with one or more counties may establish and maintain,
14a regional occupational center, or regional occupational program,
15in the county to provide education and training in career technical
16courses. The governing boards of any school districts maintaining
17high schools in the county may, with the consent ofbegin delete the state board
18and ofend delete
the county superintendent of schools, cooperate in the
19establishment and maintenance of a regional occupational center
20or program, except that if a school district also maintains 500 or
21more schools,begin delete itsend deletebegin insert theend insert governing boardbegin insert of the school districtend insert may
22establish and maintain one or more regional occupational centers
23or programs, without those restrictions. A regional occupational
24center or program may be established by two or more school
25districts maintaining high schools through the use of the staff and
26facilities of a community college or community colleges serving
27the same geographic area as the school districts maintaining the
28high schools, with the consent ofbegin delete the state board andend delete the county
29superintendent of schools.

begin delete

30(2)

end delete

31begin insert(b)end insert The establishment and maintenance of a regional
32occupational center or program, by two or more school districts
33may be undertaken pursuant to Article 1 (commencing with Section
346500) of Chapter 5 of Division 7 of Title 1 of the Government
35Code. In a regional occupational center or program, the functions
36of the county auditor undertaken pursuant to Article 1
37(commencing with Section 6500) of Chapter 5 of Division 7 of
38Title 1 of the Government Code shall be performed by the county
39superintendent of schools in a county in which the board of
40supervisors has transferred educational functions from the county
P322  1auditor to the county superintendent of schools pursuant to Sections
242649, as added by Chapter 533 of the Statutes of 1977, and
385265.5. If a school district or school districts establish and
4maintain a regional occupational center or program, pursuant to
5this chapter, the county superintendent of schools maybegin delete, with the
6consent of the state board,end delete
establish and maintain a separate
7regional occupational center or centers or program or programs.

begin delete

8(b) Notwithstanding other provisions of this section, a single
9school district located in a class 1 county, as defined in Section
101205, and having an average daily attendance of 50,000 or more,
11or a single school district located in a class 2 county, as defined
12in Section 1205, and having an average daily attendance of 100,000
13or more, may apply to the state board through the county
14superintendent of schools for permission to establish a regional
15occupational center or program. Except as provided in subdivision
16(c), the state board shall, within 90 days of receipt of an application,
17prescribe a procedure whereby the school district may establish a
18center or program in accordance with its application and in
19compliance with the provisions of the State Plan for Career
20Technical Education. The county superintendent of schools may
21supervise establishment of the center or program.

22(c) (1) The state board may disapprove a waiver application
23submitted by a single school district pursuant to Article 3
24(commencing with Section 33050) of Chapter 1 of Part 20 for
25permission to establish a regional occupational center or program
26which does not meet the requirements of this section if the state
27board determines that the establishment of the center or program
28would have an adverse effect upon existing regional occupational
29centers or programs located in school districts which are contiguous
30to the applicant school district.

31(2) The state board shall establish criteria to measure adverse
32effect. The criteria shall include, but not be limited to, hardship
33on (A) school districts operating regional occupational centers or
34programs which are contiguous to the applicant school district and
35(B) students of school districts operating regional occupational
36centers or programs that are contiguous to the applicant school
37district.

end delete

begin delete38(d) Notwithstanding any other provision of law, any regional
39occupational center or program operated by a single school district
40under Section 33050 shall be granted permanent status if the single
P323  1school district has previously been granted two waivers from the
2state board to operate a single school district regional occupational
3center or program and the single school district maintains at least
4three but not more than five comprehensive high schools within
5the school district. The revenue limit for a regional occupational
6center or program established under this subdivision shall be the
7lower of either: (1) the revenue limit under which the center or
8program operates as of January 1, 1985, or (2) the revenue limit
9of the school district as of January 1, 1985, except that this revenue
10limit shall be subject to annual percentage cost-of-living
11adjustments provided for regional occupational centers and
12programs. end delete
The governing board of the school district shall retain
13authority to decide whether or not to operate the regional
14occupational center or programbegin delete under this subdivisionend delete.

15begin insert

begin insertSEC. 333.end insert  

end insert

begin insertSection 52301.3 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
16

52301.3.  

Notwithstanding subdivision (d) of Section 52301,
17the State Board of Education may grant permanent status to the
18Kern Union High School District to operate a single district
19regional occupational center or program, if that status is requested
20in writing by the county superintendent of schools of Kern County
21and the governing board of the Kern Union High School District.

end delete
22begin insert

begin insertSEC. 334.end insert  

end insert

begin insertSection 52302 of the end insertbegin insertEducation Codeend insertbegin insert is amended
23to read:end insert

24

52302.  

(a) begin deleteOn or before July 1, 2010, the end deletebegin insertThe end insertgoverning board
25of each regional occupational center or program shall ensure that
26at least 90 percent of all state-funded courses offered by the center
27or program, in occupational areas in which both the program or
28center and the community college offer instruction, are part of
29occupational course sequences that target comprehensive skills.
30Each occupational sequence shall do all of the following:

31(1) Result in an occupational skill certificate developed in
32cooperation with the appropriate employer advisory board created
33under Section 52302.2.

34(2) Provide prerequisite courses that are needed to enter
35apprenticeship or postsecondary vocational certificate or degree
36programs. Where possible, sequenced courses shall be linked to
37certificate and degree programs in the region.

38(3) Focus on occupations requiring comprehensive skills leading
39to high entry-level wages or the possibility of significant wage
40increases after a few years on the job, or both.

P324  1(4) Offer as many courses as possible that have been approved
2by the University of California as courses meeting the “A-G”
3admissions requirements.

4(b) (1) begin deleteOn or before July 1, 2008, the end deletebegin insertThe end insertgoverning board of
5each regional occupational center or program shall develop a plan
6for establishing sequences of courses, and certify to the department,
7that those sequences have been developed, as described in
8subdivision (a). The board shall consult with the superintendents
9of the school districts served by the center or program and
10presidents of community colleges in the area during the
11development of the plan.

12(2) The plan shall be presented at a public hearing by the
13governing board of each school district served by the regional
14occupational center or program and by the county board of
15education.

16(3) Community college boards with identified articulated
17programs shall also review the plans in a public session.

18(4) In developing the plan, each regional occupational program
19or center shall consult with school districts and community college
20districts located within the region served by the program or center
21and with the relevant occupational advisers and local workforce
22investment board to ensure the plan meets the vocational education
23needs of high school pupils in the region by providing sequences
24of courses that begin with middle or high school introductory
25courses, including, but not limited to, occupational skill courses
26provided by high schools or regional occupational programs or
27centers.

28(5) The plan shall maximize the use of local, state, and federal
29resources in helping high school pupils enter comprehensive skill
30occupations or apprenticeship programs, or continue education in
31college, or all of these, after graduating from high school.

32(6) The plan shall include strategies for filling gaps in courses
33or other services needed to make the sequences effective in meeting
34the needs of pupils in developing skills and attending community
35college upon graduation from high school.

36(7) begin deleteEach end deletebegin insertCommencing September 1, 2008, each end insertcenter or
37program shall submit a copy of thebegin delete approvedend delete plan to the appropriate
38community college or colleges in the region and the Superintendent
39begin delete on or before September 1, 2008end delete. Every four years after this date,
40on or before July 1, each center and program shall submit an update
P325  1to the plan to the local community college or collegesbegin delete and the
2Superintendentend delete
.

3(c) As a condition of receiving federal funds provided under
4the Carl D. Perkins Vocational and Applied Technology Education
5Act of 1998 (20 U.S.C. Sec. 2301 et seq.), or a successor of that
6act, and to the extent permitted by federal law, school districts,
7regional occupational centers or programs, and community college
8districts shall do all of the following:

9(1) Develop course sequences that meet the requirements of this
10sectionbegin delete according to the schedule set forth in this paragraph.end deletebegin insert, as
11follows:end insert

12(A)  begin deleteOn or before July 1, 2008, school end delete begin insertSchool end insertdistricts, regional
13occupational centers or programs, and community college districts
14shall have adopted an approved plan as required under this section.

15(B)  begin deleteOn or before July 1, 2009, school end delete begin insertSchool end insertdistricts, regional
16occupational centers or programs, and community college districts
17shall have established course sequences as required under this
18section that include at least one-third of the courses offered by the
19regional occupational center or program in occupational areas in
20which both the program or center and the community college offer
21instruction.

22(C) begin deleteOn or before July 1, 2010, school end deletebegin insertSchool end insertdistricts, regional
23occupational centers or programs, and community college districts
24shall have established course sequences as required under this
25section that include at least two-thirds of the courses offered by
26the regional occupational center or program in occupational areas
27in which both the program or center and the community college
28offer instruction.

29(2) Provide pupils who are participating in vocational sequences
30with information and experiences designed to increase their
31postgraduation work and school options, including, but not limited
32to, all of the following:

33(A) Information about the admissions requirements of the
34University of California and California State University.

35(B) Information about the placement requirements of the local
36community college or colleges.

37(C) Information about higher education options related to the
38interests of the pupil.

P326  1(D) Encourage visits to local colleges and universities offering
2programs that allow pupils to gain additional skills and degrees in
3related occupations.

4(E) Information and referrals to employers for internships,
5summer employment opportunities, and employment after
6graduation from high school.

7(3) School districts, regional occupational centers or programs,
8and community college districts that do not develop course
9sequences on or before the dates established under this subdivisionbegin delete,
10and have not received a waiver under subdivision (d),end delete
shall enter
11into a corrective action plan with the department and shall meet
12any timelines established by the Superintendent.

13(d) (1) The department, with the assistance of the Office of the
14Chancellor of the California Community Colleges, shall meet with
15each program or center and the community college or colleges in
16the regionbegin delete no later than the 2009-10 fiscal yearend delete to validate that
17course sequences meeting the requirements of this section have
18been developed. These meetings shall be conducted using the
19existing resources of the department and shall be consistent with
20the standards developed pursuant to Section 51226.

21(2) The department and the office of the chancellor shall provide
22technical assistance to programs or centers and community colleges
23that have developed articulated sequences for less than half of the
24courses offered by the program or center.

begin delete

25(3) The Superintendent may waive the requirements of
26subdivision (a) for programs or centers and community colleges
27located in rural areas of the state if the Superintendent finds that
28 development of sequences is infeasible because of the distance,
29travel time, or safety between the center or program and the
30community college.

end delete
31begin insert

begin insertSEC. 335.end insert  

end insert

begin insertSection 52302.2 of the end insertbegin insertEducation Codeend insertbegin insert is amended
32to read:end insert

33

52302.2.  

(a) The governing board of each regional occupational
34center or program shall establish and maintain an employer
35advisory board or boards pursuant to guidelines developed by the
36department. The advisory board shall do all of the following:

37(1) Assist in the development of skill certificates that identify
38the skills and knowledge that pupils completing an occupational
39course sequence are expected to acquire upon completing the
40sequence. The advisory board also shall recommend the measures
P327  1and criteria, and methods to evaluate whether pupils actually
2acquired the identified skills and knowledge.

3(2) Review at least once a year whether pupils who are assessed
4as having met the requirements for a skill certificate possess the
5skills needed for success in employment in that occupation.

6(3) Review the specific occupational sequences offered by the
7regional occupational center or program to train pupils for jobs
8that are in demand and offer high beginning salaries or the potential
9for significant wage increase after several years on the job.

10(4) Assist the regional occupational center or program in
11developing internships, paid summer employment, and
12postgraduation employment opportunities for pupils participating
13in the course sequences.

14(5) Assist the regional occupational center or program in
15identifying and creating college scholarships for pupils
16participating in the course sequences.

17(b) Employer advisory boards shall be composed of
18 representatives of trade organizations and businesses or government
19agencies that hire a significant number of employees each year
20and require the skills and knowledge that are taught in the course
21sequence or sequences in that occupational area, as well as at least
22one representative from a school district career technical
23educational advisory committee. The department shall develop
24regulations guiding the establishment of these boards.

25(c) Regional occupational centers or programs operated in a
26rural county begin delete of the sixth, seventh, or eighth classend delete may designate a
27local business or industry organization as the advisory board and
28consult with the leadership of the local business or industry
29organization to determine skill needs in the region and emerging
30job market needs. For purposes of this section, the local business
31organization may be designated as the advisory board for the
32regional occupational center or program.

33begin insert

begin insertSEC. 336.end insert  

end insert

begin insertSection 52302.8 of the end insertbegin insertEducation Codeend insertbegin insert is amended
34to read:end insert

35

52302.8.  

(a) The Legislature hereby finds and declares that
36vocational training resources that are provided through regional
37occupational centers and programs are an essential component of
38the state’s secondary school system and the local system of
39providing occupational skills training to high school pupils. For
40this reason, the Legislature finds and declares that these resources
P328  1should be focused primarily on the needs of pupils enrolled in high
2school.

begin delete

3(b) For the 2008-09 fiscal year, a regional occupational center
4or program may claim no more than 50 percent of the state-funded
5average daily attendance for which the center or program is eligible,
6for services provided to students who are not enrolled in grades 9
7to 12, inclusive.

8(c) For the 2009-10 fiscal year, a regional occupational center
9or program may claim no more than 30 percent of the state-funded
10average daily attendance for which the center or program is eligible,
11for services provided to students who are not enrolled in grades 9
12to 12, inclusive.

13(d) For the 2011-12 fiscal year and every fiscal year thereafter,
14a regional occupational center or program may claim no more than
1510 percent of the state-funded average daily attendance for which
16the center or program is eligible, for services provided to students
17who are not enrolled in grades 9 to 12, inclusive, and up to an
18additional 5 percent for CalWORKs, Temporary Assistance
19Program, or Job Corps participants and participants under the
20federal Workforce Investment Act of 1998 (29 U.S.C. Sec. 2810
21et seq.) who are enrolled in Intensive Training services.

end delete
begin delete

22(e)

end delete

23begin insert(b)end insert Pupils who are CalWORKs, Temporary Assistance Program,
24or Job Corps participants shall have priority for servicebegin delete within the
25percentage limits established under subdivision (d)end delete
.

begin delete

26(f) Notwithstanding subdivision (d), a regional occupational
27center or program may claim more than 15 percent of its average
28daily attendance for students who are not enrolled in grades 9 to
2912, inclusive, if all of the students who are not enrolled in grades
309 to 12, inclusive, are CalWORKs, Temporary Assistance Program,
31or Job Corps participants, and if the governing board of the regional
32occupational center or program does all of the following:

33(1) Meets with local human services directors, and
34representatives of adult education programs, community colleges
35and other institutions of higher education, to assess the needs of
36CalWORKs, Temporary Assistance Program, or, Job Corps and
37federal Workforce Investment Act participants to identify
38alternative ways to meet the needs of these adult students.

39(2) Enters into a transition plan, approved by the Superintendent,
40to become in compliance with subdivision (d) in accordance with
P329  1benchmarks and timelines established in the transition plan.
2Transition plans shall be established pursuant to guidelines issued
3by the department, in consultation with the State Department of
4Social Services, and shall be resubmitted and reviewed annually.

5(g) Notwithstanding subdivisions (b), (c), and (d), a regional
6occupational center or program that claims more than 40 percent
7of its students are not enrolled in grades 9 to 12, inclusive, on
8January 1, 2007, shall submit a letter to the Superintendent by July
91 of each year until it complies with this subdivision, outlining the
10goals of the regional occupational center or program to reduce the
11number of adult students in order to comply with subdivision (d)
12on or before July 1, 2013.

13(h) Regional occupational centers and programs operated in a
14rural county of the sixth, seventh, or eighth class may exceed the
15number of adults by an additional 10 percent of the limits
16established in subdivisions (b), (c), and (d).

17(i) (1) For purposes of this calculation, adult average daily
18attendance attributable to continuously enrolled grade 12 pupils
19who have not passed the high school exit examination pursuant to
20Section 60851 is excluded from the calculation under this section.
21Amounts that may become available from reductions resulting
22from the enactment of this section shall be redirected to other
23regional occupational centers or programs to serve additional
24secondary pupils.

25(2) Adult average daily attendance funding for a regional
26occupational center or program that has entered into a corrective
27action plan pursuant to subdivision (k) shall not be redirected to
28other regional occupational centers or programs to serve additional
29secondary pupils for up to three years while the regional
30occupational center or program is in corrective action.

end delete
begin delete

31(j)

end delete

32begin insert(c)end insert The governing boards of a community college district and
33a regional occupational center or program may enter into
34contractual agreements under which the center or program provides
35services to adult students of the community college district affected
36by this section ifbegin delete both of the following are satisfied:end deletebegin insert the end insertbegin insertagreements
37conform to state regulations and audit requirements jointly
38developed by the Chancellor of the Office of the California
39Community Colleges and the State Department of Education, in
P330  1consultation with, and subject to approval by, the Department of
2 Finance.end insert

begin delete

3(1) The agreements conform to state regulations and audit
4requirements jointly developed by the Chancellor of the Office of
5the California Community Colleges and the State Department of
6Education, in consultation with, and subject to approval by, the
7Department of Finance.

end delete
begin delete

8(2) A course offered for adults pursuant to an agreement entered
9into pursuant to this subdivision is limited to the same cost per
10student to the state as if the course were offered at the regional
11occupational center or program. This subdivision does not authorize
12the apportionment of funds for community colleges for adult
13students in excess of the revenue limit for regional occupational
14centers or programs if a course is deemed eligible for college credit.

end delete
begin delete

15(k) A regional occupational center or program that fails to meet
16a timeline established under subdivision (c), (d), or (g) shall meet
17with the community college, adult education program, or other
18adult service to identify alternative means of meeting the needs of
19adult students and shall enter into a corrective action plan
20administered by the department. The corrective action plan shall
21be established pursuant to guidelines issued by the department and
22shall be submitted to the department annually for review.

end delete
23begin insert

begin insertSEC. 337.end insert  

end insert

begin insertSection 52302.9 of the end insertbegin insertEducation Codeend insertbegin insert is amended
24to read:end insert

25

52302.9.  

Regional occupational centers and programs may
26jointly establish, operate, and share the enrollments and costs of
27career technical education instruction with adult education
28programs offered by school districts serving the same geographic
29area. These programs shall be approved bybegin delete the State Board of
30Education andend delete
the county superintendent of schools and shall be
31subject to guidelines established by the Superintendentbegin delete of Public
32Instruction. These programs shall also be funded at the adult
33revenue limit amount provided pursuant to Section 42238end delete
.

34begin insert

begin insertSEC. 338.end insert  

end insert

begin insertSection 52306 of the end insertbegin insertEducation Codeend insertbegin insert is amended
35to read:end insert

36

52306.  

(a) Any business, commercial, trade, manufacturing,
37or construction activity referred to in subdivision (c) of Section
3852305 may be undertaken as part of a regional occupational center
39or program provided all the following conditions have been
40complied with:

P331  1(1) Any facility or program operated pursuant to this section
2shall be only for the education or training of students enrolled in
3a regional occupational center or program.

4(2) The facility or program shall be operated on a nonprofit
5basis, with all revenues restricted in their use to cover instructional
6and operating costs.

7(3) Notwithstanding any other provision of law, the facility or
8program initially shall obtain the approval of the appropriate trade
9associations concerned with the activity proposed and the approval
10of the county labor council in the county in which the facility or
11program is located.

12(b) An activity conducted by a regional occupational center or
13program, as described in subdivision (a), may be conducted without
14the need to apply for or obtain local business licenses or permits,
15nor shall the activity be subject to payment of local business taxes.

16Notwithstanding any otherbegin delete provision ofend delete law, proceeds from
17business activities authorized in this section may, subject to the
18approval of the governing board, be deposited in a checking
19account or accounts by each regional occupational center or
20program and disbursed for the necessary expenses of those business
21activities. The account shall be established by the regional
22occupational center or program and be in the custody of the
23principal or other administrative official designated by the
24governing board or the county superintendent of schools, as the
25case may be. The principal or administrative official shall be
26responsible for all expenditures therefrom, subject to regulations
27prescribed for this purpose by the governing board or the county
28superintendent of schools, as the case may be. An exact accounting
29of receipts and disbursements shall be made to the district or county
30accounting office within a reasonable period of time. The governing
31board or the county superintendent of schools, as the case may be,
32shall provide for an audit of these accounts on a regular basis.

begin delete

33(c) Attendance of students in any business, commercial, trade,
34manufacturing, or construction activity referred to in subdivision
35(c) of Section 52305, at any regional occupational center or regional
36occupational program, shall be credited to that facility or program
37for the purposes of apportionments from the State School Fund.

end delete
38begin insert

begin insertSEC. 339.end insert  

end insert

begin insertSection 52309 of the end insertbegin insertEducation Codeend insertbegin insert is amended
39to read:end insert

P332  1

52309.  

(a) The curriculum initially provided by a regional
2occupational center or regional occupational program upon
3commencing operation shall be subject to the approval of the
4department and shall comply with all requirements and standards
5set forth in the State Plan for Career Technical Education.begin delete The
6department shall approve regional occupational centers only after
7giving due consideration to career technical education opportunities
8offered by community colleges serving the same geographical
9area. The State Board of Educationend delete
begin insert The state boardend insert shall adopt
10rules and regulations establishing guidelines and criteria for
11differentiating between courses appropriate for regional
12occupational centers or regional occupational programs and those
13appropriate for high schools.

14(b) The Superintendentbegin delete of Public Instructionend delete shall prepare and
15distribute by April 1, 1977, and thereafter maintain, a detailed
16handbook for use by the local educational agencies and regional
17councilsbegin delete established pursuant to Section 8020end delete. The handbook shall
18contain course approval criteria, job market study criteria,
19implementation plans for administrative regulations, and
20procedures for securing course and program approvals.

21(c) Notwithstanding subdivision (a), the curriculum provided
22by a regional occupational center or program shall not be subject
23 to the approval of the department as to any curriculum that is
24certified, by resolution of the governing body of the regional
25occupational center or program, to comply with the course approval
26criteria set forth in the handbook described in subdivision (b).

27begin insert

begin insertSEC. 340.end insert  

end insert

begin insertSection 52314 of the end insertbegin insertEducation Codeend insertbegin insert is amended
28to read:end insert

29

52314.  

(a) (1) Except as provided in subdivision (b),begin delete anyend deletebegin insert aend insert
30 pupil eligible to attend a high school or adult school in a school
31district subject to the jurisdiction of a county superintendent of
32schools operating a regional occupational center or regional
33occupational program, and who resides in a school district which
34by itself or in cooperation with other school districts, has not
35established a regional occupational center, or regional occupational
36program, is eligible to attend a regional occupational center or
37regional occupational program maintained by the county
38superintendent of schools.begin delete Anyend deletebegin insert Aend insert school district which in
39cooperation with other school districts maintains a regional
40occupational centerbegin delete,end delete or regional occupational program, orbegin delete anyend delete
P333  1 cooperating school districtsbegin insert,end insert may admit to the center, or program,
2 any pupil, otherwise eligible, who resides in thebegin insert schoolend insert district or
3in any of the cooperatingbegin insert schoolend insert districts.begin delete Anyend deletebegin insert Aend insert school district
4which by itself maintains a regional occupational center, or regional
5occupational program, may admit to the center, or program, any
6pupil, otherwise eligible, who resides in thebegin insert schoolend insert district.begin delete Noend deletebegin insert Aend insert
7 pupil, includingbegin delete adults under Section 52610end deletebegin insert a person 18 years of
8age or older or a person who is not concurrently enrolled in a
9regular high school program,end insert
shallbegin insert notend insert be admitted to a regional
10occupational center, or regional occupational program, unless the
11county superintendent of schools or governing board of thebegin insert schoolend insert
12 district orbegin insert schoolend insert districts maintaining the center, or program, as
13the case may be, determines that the pupil will benefit therefrom
14and approves of his or her admission to the regional occupational
15center or regional occupational program.

16(2) Adult students shall not be enrolled in regional occupational
17center or program courses during the school day on a high school
18campus unless specifically authorized by the policy of the
19governing board of the school district.

20(3) A pupil may be admitted on a full-time or part-time basis,
21as determined by the county superintendent of schools or governing
22board of the school district or districts maintaining the center, or
23program, as the case may be.

24(b) A pupil is not eligible to be admitted to a regional
25occupational center or program, and his or her attendance shall
26not be credited to a regional occupational center or program, until
27he or she has attained the age of 16 years, unless the pupil meets
28one or more of the following conditions:

29(1) The pupil is enrolled in grade 11 or a higher grade.

30(2) The pupil received a referral and all of the following
31conditions are met:

32(A) The pupil is referred to a regional occupational center or
33program as part of a comprehensive high school plan that has been
34approved by a school counselor or school administrator. The
35approval of the pupil’s parents or guardian may be sought but is
36not required.

37(B) The pupil’s comprehensive high school plan requires referral
38to a regional occupational center or program as part of a sequence
39of vocational courses that allows the pupil to learn a comprehensive
P334  1skill occupation that culminates in earning a postsecondary
2vocational certificate or diploma or its equivalent.

3(C) The pupil is enrolled in a school that maintains any of grades
49 to 12, inclusive.

5(3) The individualized education program of a pupil adopted
6pursuant to the requirements of Chapter 4 (commencing with
7Section 56300) of Part 30 prescribes occupational training for
8which his or her enrollment in a regional occupational center or
9program is deemed appropriate.

10(4) The pupil is enrolled in grade 10 and has a comprehensive
11high school plan that has been approved by a school counselor,
12and the admission of that pupil will not result in the denial of
13admission or displacement of pupils in grades 11 and 12 that would
14otherwise participate in the regional occupational center or
15program.

begin delete

16(c) Each school district, county superintendent of schools, or
17joint powers agency that maintains a regional occupational center
18or regional occupational program shall submit to the department,
19at the time and in the manner prescribed by the Superintendent,
20the enrollment and average daily attendance for each grade level
21and the enrollment and average daily attendance for each exemption
22set forth in subdivision (b).

end delete
23begin insert

begin insertSEC. 341.end insert  

end insert

begin insertSection 52315 of the end insertbegin insertEducation Codeend insertbegin insert is amended
24to read:end insert

25

52315.  

(a) begin deleteAny end deletebegin insertA end insertvisually impaired, orthopedically impaired,
26or deaf person who is not enrolled in a regular high school or
27community college program may attend a regional occupational
28center or regional occupational program pursuant to the
29requirements described in Section 52314.5. Additional special
30instruction and support services shall be provided to these persons.

31(b) If the Superintendent determines that there would be a
32duplication of effort to these impaired persons if a regional
33 occupational center or regional occupational program provided
34services to them, in that other programs exist that are available to
35them, the Superintendent may disapprove of the curriculum to
36provide programs to these impaired persons pursuant to Section
3752309begin delete and of any state funding made available pursuant to Section
3841897 for these purposesend delete
.

39begin insert

begin insertSEC. 342.end insert  

end insert

begin insertSection 52319 of the end insertbegin insertEducation Codeend insertbegin insert is amended
40to read:end insert

P335  1

52319.  

begin insert(a)end insertbegin insertend insert Whenever the establishment and maintenance of
2a regional occupational center by two or more school districts has
3been undertaken pursuant to an agreement entered into in
4accordance with the provisions of Article 1 (commencing with
5Section 6500) of Chapter 5 of Division 7 of Title 1 of the
6Government Code, and the terms of the agreement so authorize,
7provision may be made for the issuance of bonds for construction
8and other capital expenditure for the regional occupational center.
9An election shall be called, held, and conducted in the manner
10provided in Chapter 3 (commencing with Section 5300) of Part 4
11of Division 1 of Title 1 on the question of the approval of the
12issuance of such bonds. If, at the election, the requisite number of
13voters cast their ballots in favor of the issuance of bonds, the bonds
14shall be issued and sold in the manner provided by law for the
15issuance and sale of bonds of a high school district. The issuance
16and sale of such bonds shall be deemed to be an act of the
17governing board of a high school district.

begin delete

18The

end delete

19begin insert(b)end insertbegin insertend insertbegin insertThe end inserttotal amount of bonds issued shall not exceed one-half
20of 1 percent of the taxable property of the area served by the
21regional occupational center as shown by the last equalized
22assessment roll of the county or counties which the center servesbegin delete,
23and as modified pursuant to Section 41201end delete
.

begin delete

24Bonds

end delete

25begin insert(c)end insertbegin insertend insertbegin insertBonds end insertissued and sold pursuant to this section shall be retired
26from proceeds of the tax under the provisions of Section 52317.

27begin insert

begin insertSEC. 343.end insert  

end insert

begin insertSection 52321 of the end insertbegin insertEducation Codeend insertbegin insert is amended
28to read:end insert

begin delete
29

52321.  

(a) (1) Commencing in the 2009-10 fiscal year, a
30regional occupational center or program established and maintained
31by school districts or joint powers agencies pursuant to Section
3252301 shall receive in annual operating funds directly from the
33county office of education in which it is located an amount per
34unit of average daily attendance equal to the revenue limit received
35by each of the participating school districts for each unit of average
36daily attendance generated in the regional occupational center or
37program by each participating school district.

38(2) A regional occupational center or program established and
39maintained by a county superintendent of schools pursuant to
40Section 52301 shall receive funding pursuant to Section 2550. A
P336  1county superintendent of schools shall report average daily
2attendance to the Superintendent for that funding.

3(b)

end delete
4begin insert

begin insert52321.end insert  

end insert

begin insert(a)end insert A regional occupational center or program may
5budget and accumulate an amount necessary to meet the cashflow
6needs of the regional occupational center or program known as a
7general reserve, and also may budget and accumulate amounts
8known as the designated fund balance and as the unappropriated
9fund balance. Alternatively, a regional occupational center or
10program may budget and accumulate amounts necessary to meet
11its long-term program needs in a separate account known as the
12capital outlay and equipment replacement reserve account, and
13this account shall be part of the designated fund balance. At the
14end of each school year, the ending balance in the regional
15occupational center or program account may be distributed to any
16of the general reserve, designated fund balance, and unappropriated
17fund balance accounts, provided that the combined total distributed
18does not exceed 15 percent of the expenditures for the current
19school year.

20(1) The general reserve, the designated fund balance, including
21the capital outlay and equipment replacement reserve account, and
22the unappropriated fund balance shall be available for appropriation
23only after approval by a majority vote of the governing body of
24the regional occupational center or program.

25(2) Funds of a regional occupational center or program shall be
26distributed to the capital outlay and equipment replacement reserve
27account only upon adoption by the governing board of a resolution
28specifying the general use to which each appropriation from the
29account would be put.

begin delete

30(c)

end delete

31begin insert(b)end insert (1) At the end of each school year, the combined ending
32balances of the general reserve, the designated fund balance, except
33the capital outlay and equipment replacement reserve account, and
34the unappropriated fund balance shall not exceed 15 percent of the
35expenditures for the current fiscal year.

36(2) A regional occupational center or program may accumulate,
37over a period of two or more school years, an ending balance in
38the capital outlay and equipment replacement reserve account of
39more than 15 percent of the expenditures for the current fiscal
P337  1year, under provisions of a resolution of the governing board
2pursuant to paragraph (2) of subdivisionbegin delete (b)end deletebegin insert (a)end insert.

begin delete

3(d)

end delete

4begin insert(c)end insert Funds placed in either the general reserve, the designated
5fund balance, including the capital outlay and equipment
6replacement reserve account, or the unappropriated fund balance
7shall be expended only for regional occupational center or program
8educational purposes.

begin delete

9(e) Commencing in the 2007-08 fiscal year, the Superintendent
10shall require an annual certification by school districts, county
11superintendents of schools, and joint powers agencies that the
12regional occupational center or program funds have been expended
13as provided in this section. The Superintendent shall withhold from
14the apportionment of a subsequent fiscal year, any ending fund
15balance in excess of 15 percent of the expenditures for the year,
16except those funds specifically set aside by the governing board
17in the capital outlay and equipment replacement reserve account.

end delete
18begin insert

begin insertSEC. 344.end insert  

end insert

begin insertSection 52324 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
19

52324.  

Units of average daily attendance in the regional
20occupational centers or regional occupational programs of a county
21for a fiscal year are the quotient arising from dividing the total
22number of days of pupil’s attendance in the centers, or programs,
23during the fiscal year by 175.

24Attendance in regional occupational centers, or regional
25occupational programs, operated under subdivision (a) of Section
2652305 shall be considered pupil’s attendance under this section,
27but attendance in regional occupational centers, or regional
28occupational programs, under subdivision (b) of Section 52305
29shall not be so considered.

30As used in this section, “school district” includes each of those
31districts which are cooperating in the maintenance of the center
32or program, with the approval of the county superintendent of
33schools, pursuant to Section 52301; and units of average daily
34attendance of pupils residing in the school district shall be credited
35to the school district.

end delete
36begin insert

begin insertSEC. 345.end insert  

end insert

begin insertSection 52324.5 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
37

52324.5.  

For the purpose of crediting attendance for
38apportionments from Section A of the State School Fund during
39the fiscal year, any person who is concurrently enrolled in a
40nonpublic high school and in a regional occupational center or
P338  1program operated under subdivision (a) of Section 52305 and
2maintained by a district or districts shall be classified as a regular
3student enrolled in a regular high school program, notwithstanding
4Section 52610.

5For the purposes of this section, a nonpublic high school is a
6school which satisfies the requirements of Section 48222 if such
7school is exempt from taxation under Section 214 of the Revenue
8and Taxation Code, and if instruction in such school is given
9through grade 12.

end delete
10begin insert

begin insertSEC. 346.end insert  

end insert

begin insertSection 52327 of the end insertbegin insertEducation Codeend insertbegin insert is amended
11to read:end insert

12

52327.  

The governing board ofbegin delete anyend deletebegin insert a schoolend insert district
13maintaining a regional occupational center may establish a
14bookstore onbegin insert schoolend insert district property for the purpose of offering
15for sale textbooks, workbooks, supplementary textbooks and
16workbooks, school supplies, stationery supplies, confectionary
17items, and related auxiliary school supplies and services.

18The governing boardbegin insert of the school districtend insert may establish a
19bookstore fund into which the proceeds derived from the operation
20of a regional occupational center bookstore may be transferred.
21Moneys in a bookstore fund shall be deposited or invested in one
22or more of the following ways:

23(a) Deposits in a bank or banks, or other institution, whose
24accounts are federally insured.

25(b) Investment certificates or withdrawable shares in
26state-chartered savings and loan associations and savings accounts
27of federal savings and loan associations, provided the associations
28are doing business in this state and have their accounts insured by
29the Federal Savings and Loan Insurance Corporation.

30(c) Purchase of United States securities pursuant to subdivision
31(a) of Section 16430 of the Government Code.

32The governing boardbegin insert of the school districtend insert shall designate an
33employee or official of thebegin insert schoolend insert district to act as trustee for funds
34derived from the operation of a regional occupational center
35bookstore and to receive those funds in accordance with procedures
36established by the board.

37All necessary expenses, including salaries, wages and costs of
38capital improvements may be deducted from the revenue of a
39regional occupational center bookstore. Net proceeds from the
40operation of a regional occupational center bookstore shall be used
P339  1for the general benefit of the student body as determined by the
2governing boardbegin insert of the school districtend insert. Income from a regional
3occupational center bookstore shall not be included in the begin insertschool end insert
4districtbegin delete revenue limitend deletebegin insert funding allocationend insert. Funds derived from the
5operation of a regional occupational center bookstore shall be
6subject to audit pursuant to Section 41020.

7begin insert

begin insertSEC. 347.end insert  

end insert

begin insertSection 52327.5 of the end insertbegin insertEducation Codeend insertbegin insert is amended
8to read:end insert

9

52327.5.  

Each governing board establishing or maintaining a
10regional occupational center or program pursuant to Section
1152310.5 shall meet the requirements set forth in Sections 35145,
1241010, 41011, 41015, 41020, 42103, 51040, 51041,begin insert andend insert 51050begin delete,
13and 51056end delete
.

14begin insert

begin insertSEC. 348.end insert  

end insert

begin insertSection 52328 of the end insertbegin insertEducation Codeend insertbegin insert is amended
15to read:end insert

16

52328.  

begin delete(a)end deletebegin deleteend deletebegin deleteAny end deletebegin insertA end insertschool district, located in whole or in part
17in a county contiguous with the Republic of Mexico, or any county
18superintendent of schools of a county contiguous with the Republic
19of Mexico, which maintains a regional occupational center may
20enter into a student exchange agreement with a trade and technical
21training school located in the Republic of Mexico. Such student
22exchange agreement shall permit Mexicanbegin delete studentsend deletebegin insert pupilsend insert to take
23all or part of their occupational training in the regional occupational
24center and shall permit United Statesbegin delete studentsend deletebegin insert pupilsend insert to take all or
25part of their occupational training in the Mexican trade and
26technical school.

begin delete

27(b) In computing the average daily attendance of the regional
28occupational center, the Superintendent of Public Instruction shall
29include any Mexican students in attendance if all of the following
30conditions are met:

end delete
begin delete

31(1) The student exchange agreement provides as nearly as
32practicable for the exchange of students on a one-for-one basis
33between the regional occupational center and the trade and
34technical school.

end delete
begin delete

35(2) The educational services provided the United States students
36in Mexico are at least equivalent in quality to the services provided
37in the regional occupational center.

end delete
begin delete

38(3) The student exchange agreement has been approved by the
39Superintendent of Public Instruction prior to its operative date.

end delete
begin delete

P340  1(c) No average daily attendance shall be credited to the regional
2occupational center for the United States students while in
3attendance at the Mexican trade and technical school.

end delete
4begin insert

begin insertSEC. 349.end insert  

end insert

begin insertSection 52329 of the end insertbegin insertEducation Codeend insertbegin insert is amended
5to read:end insert

6

52329.  

The governing board of a school district located in a
7county, or the county superintendent of schools maintaining a
8regional occupational program in a county, any of the boundaries
9of which are contiguous to the State of Arizona, may enter into an
10agreement with a public or private educational agency located in
11begin delete that stateend deletebegin insert the State of Arizonaend insert to provide tobegin delete studentsend deletebegin insert pupilsend insert living
12in thebegin insert schoolend insert district and enrolled in a regional occupational
13program, career technical or technical training which, due to
14geographical isolation, is not otherwise available to thesebegin delete studentsend delete
15begin insert pupilsend insert.

16The program of training at the public or private educational
17agencybegin delete shall be approved by the Superintendent of Public
18Instruction of California andend delete
shall conform to the California State
19Plan for Career Technical Education.

begin delete

20The attendance of pupils receiving career technical or technical
21training at a public or private educational agency as authorized by
22this section shall be included in the computation of average daily
23attendance as prescribed by Sections 52324 and 52325, and shall
24be credited to the county school service fund of the county of
25residence. In no event, however, shall the county school service
26fund be credited with more than one unit of average daily
27attendance per calendar year on account of a pupil participating
28in a program authorized by this section.

end delete
29begin insert

begin insertSEC. 350.end insert  

end insert

begin insertSection 52334 of the end insertbegin insertEducation Codeend insertbegin insert is amended
30to read:end insert

31

52334.  

begin insert(a)end insertbegin insertend insert Indirect costs charged to regional occupational
32centers and programs may not exceedbegin delete that ofend delete the school district or
33county office of education, as appropriate, prior year indirect cost
34rate as approved by thebegin delete State Department of Educationend deletebegin insert departmentend insert.

begin delete

35The

end delete

36begin insert(b)end insertbegin insertend insertbegin insertThe end insertindirect costs charged by county offices of education
37and school districts that provide regional occupational centers and
38programs services on behalf of the county office of education or
39joint powers authority, when added together, may not exceed the
40indirect cost rate approved by thebegin delete State Department of Educationend delete
P341  1begin insert departmentend insert for the county office of education or the school district,
2whichever is higher.

begin delete

3Revenue limit funds apportioned to a county office of education
4or school district for regional occupational centers and programs
5must be expended on programs and services offered by the regional
6occupational centers and programs.

end delete
7begin insert

begin insertSEC. 351.end insert  

end insert

begin insertSection 52335 of the end insertbegin insertEducation Codeend insertbegin insert is amended
8to read:end insert

begin delete
9

52335.  

Commencing with the 1988-89 fiscal year, funds for
10regional occupational centers and programs shall be apportioned
11in accordance with this article.

12For

end delete
13begin insert

begin insert52335.end insert  

end insert

begin insertForend insert purposes of this article, “ROC/P” means regional
14occupational center or program.

15begin insert

begin insertSEC. 352.end insert  

end insert

begin insertSection 52335.1 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
16

52335.1.  

From funds appropriated in the annual Budget Act
17for that purpose, the Superintendent of Public Instruction shall
18apportion funds for ROC/Ps according to the following priorities:

19(a) Apportionments for necessary small ROC/Ps pursuant to
20Section 52324.6.

21(b) Apportionments for ROC/P revenue limits pursuant to
22Section 52335.2.

end delete
23begin insert

begin insertSEC. 353.end insert  

end insert

begin insertSection 52335.2 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
24

52335.2.  

The Superintendent of Public Instruction shall
25calculate a revenue limit for each ROC/P in the following manner:

26(a) Calculate a base revenue limit per unit of average attendance
27for the current fiscal year as follows:

28(1) Divide the revenue limit for the prior year computed pursuant
29to this section by the annual units of average daily attendance
30funded in the prior year pursuant to subdivisions (c) and (d).

31(2) Increase the amount computed in paragraph (1) by the
32percentage inflation adjustment specified in the Budget Act for
33the current fiscal year multiplied by the statewide average ROC/P
34revenue limit per unit of average daily attendance for the prior
35fiscal year.

36(b) Calculate a revenue limit per unit of average daily attendance
37for program growth by increasing the revenue limit per unit of
38average daily attendance for program growth computed pursuant
39to this subdivision for the prior fiscal year by the percentage
P342  1inflation adjustment specified in the Budget Act for the current
2fiscal year.

3(c) Multiply the amount computed pursuant to subdivision (a)
4by the lesser of the ROC/P’s annual units of average daily
5attendance for the current fiscal year or the ROC/P’s annual units
6of funded average daily attendance for the prior fiscal year.

7(d) Subtract the ROC/P’s annual units of funded average daily
8attendance for the prior fiscal year from the ROC/P’s annual units
9of average daily attendance for the current fiscal year and multiply
10the difference by the amount computed pursuant to subdivision
11(b). If the product computed pursuant to this subdivision is
12negative, it shall be deemed to be zero.

13(e) Except as provided in Section 52335.3, the Superintendent
14of Public Instruction shall apportion to the ROC/P the sum of the
15amounts computed pursuant to subdivisions (c) and (d).

16(f) The average daily attendance used for purposes of this section
17shall not include the average daily attendance in schools receiving
18funding pursuant to Section 52324.6.

19(g) Any state funds made available as a result of local property
20tax revenues deducted pursuant to Section 52335.3 shall be
21allocated to each ROC/P in an equal amount per unit of funded
22average daily attendance and shall not be included in the calculation
23of the base revenue limit made pursuant to subdivision (a) for the
24subsequent fiscal year.

25(h) Before making the calculations described in subdivisions
26(c) and (d) to determine the amount to be apportioned to each
27ROC/P pursuant to subdivision (e) for the 1998-99 fiscal year,
28average daily attendance for the 1997-98 fiscal year shall be
29adjusted by a factor equal to the number one minus the quotient
30of the number of units of that ROC/P’s 1996-97 average daily
31attendance for absences excused pursuant to subdivision (b) of
32Section 46010, as that subdivision read on July 1, 1996, divided
33by that ROC/P’s total 1996-97 average daily attendance.

end delete
34begin insert

begin insertSEC. 354.end insert  

end insert

begin insertSection 52335.3 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
35

52335.3.  

The Superintendent of Public Instruction shall deduct
36from the amount computed pursuant to subdivision (e) of Section
3752335.2 for each ROC/P operated by a county office of education
38any local revenue that would otherwise be deemed restricted and
39not available for expenditure in the current fiscal year pursuant to
P343  1subdivision (e) of Section 2558. Any local revenue so deducted
2shall be used by the county office for support of the ROC/P.

end delete
3begin insert

begin insertSEC. 355.end insert  

end insert

begin insertSection 52335.4 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
4

52335.4.  

The Superintendent of Public Instruction shall
5determine each ROC/P’s share of funded growth average daily
6attendance by computing the sum of subdivisions (a), (b), and (c):

7(a) Subtract the ROC/P’s annual units of funded average daily
8attendance for the prior year from the ROC/P’s annual units of
9funded average daily attendance for the second prior year. If the
10amount computed pursuant to this subdivision is negative, it shall
11be deemed to be zero.

12(b) Allocate 25 percent of the allowable growth average daily
13attendance funded in the Budget Act to low participation ROC/P’s,
14pursuant to criteria established by the Superintendent of Public
15Instruction.

16(c) (1) Subtract the statewide sum of the growth average daily
17attendance computed pursuant to subdivisions (a) and (b) from the
18allowable growth in average daily attendance funded in the Budget
19Act. If the amount computed is negative, it shall be deemed to be
20zero.

21(2) (A) Calculate the ROC/P’s pro rata share of the funded
22growth average daily attendance calculated pursuant to paragraph
23(1), based on the prior year average daily attendance in grades 9
24to 12, inclusive, for the school districts served by the ROC/P in
25relation to the total statewide prior year average daily attendance
26in grades 9 to 12, inclusive. For purposes of the calculation required
27by this paragraph, the Superintendent of Public Instruction shall
28use the average daily attendance reported for the second principal
29apportionment of the prior year.

30(B) In calculating the pro rata share of funded growth average
31daily attendance, the Superintendent of Public Instruction shall
32ensure that each ROC/P is provided at least 10 units of allowed
33growth average daily attendance pursuant to subdivisions (b) and
34(c).

35(d) (1) It is the intent of the Legislature that each ROC/P use
36its share of funded growth average daily attendance provided
37pursuant to this section to serve pupils in grades 9 to 12, inclusive,
38unless the governing board or governing boards of the school
39district or districts overseeing the ROC/P determine that the needs
40of pupils in grades 9 to 12, inclusive, have been met.

P344  1(2) It is the intent of the Legislature that, if a determination is
2made pursuant to paragraph (1) that the needs of pupils in grades
39 to 12, inclusive, have been met, then the governing board or
4governing boards of the school district or districts overseeing the
5ROC/P may authorize the ROC/P to use its share of funded growth
6average daily attendance provided pursuant to this section to serve
7adults.

end delete
8begin insert

begin insertSEC. 356.end insert  

end insert

begin insertSection 52335.5 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
9

52335.5.  

In the event that the funds appropriated for purposes
10of this article are insufficient to fully fund the apportionments
11herein authorized, the Superintendent of Public Instruction shall
12reduce the amounts computed pursuant to Section 52335.2 for
13each ROC/P based on equal amounts per unit of average daily
14attendance, consistent with the following priorities:

15(a) First priority shall be given to fully funding average daily
16attendance that is less than or equal to the average daily attendance
17funded in the prior fiscal year.

18(b) Second priority shall be given to fully funding each ROC/P’s
19share of funded growth average daily attendance determined
20pursuant to Section 52335.4.

21(c) Third priority shall be given to funding current year annual
22average daily attendance that exceeds the sum of the average daily
23attendance specified in subdivisions (a) and (b).

end delete
24begin insert

begin insertSEC. 357.end insert  

end insert

begin insertSection 52335.6 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
25

52335.6.  

For purposes of allocating allowable growth average
26daily attendance to low participation ROC/Ps, the Superintendent
27of Public Instruction shall:

28(a) Calculate for each ROC/P the prior year average daily
29attendance in grades 9 to 12, inclusive, for the school districts
30served by the ROC/P.

31(b) Divide the funded average daily attendance of the ROC/P
32for the prior year by the amount calculated in subdivision (a).

33(c) Divide the statewide funded ROC/P average daily attendance
34for the prior year by the prior year statewide average daily
35attendance in grades 9 to 12, inclusive.

36(d) For each ROC/P where the amount calculated in subdivision
37(b) is less than the amount calculated in subdivision (c), calculate
38the ROC/P’s pro rata share of allowable growth daily attendance
39for low participation ROC/Ps, based on the average daily
40attendance needed by the ROC/P to be at the percentage of
P345  1participation calculated in subdivision (c) in relation to the total
2of average daily attendance needed by low participation ROC/Ps
3for each ROC/P to be at the percentage of participation calculated
4in subdivision (c).

end delete
5begin insert

begin insertSEC. 358.end insert  

end insert

begin insertSection 52335.12 of the end insertbegin insertEducation Codeend insertbegin insert is amended
6to read:end insert

7

52335.12.  

(a) As a condition of receivingbegin delete additional funding
8based on average daily attendance,end delete
begin insert state or federal funds,end insert the
9regional occupational center or program shall report annually to
10the department the academic and workforce preparation progress
11of the secondary pupils enrolled in the center or program. Indicators
12to measure that progress shall include, but are not limited to, the
13Standardized Testing and Reporting (STAR) Program, pursuant
14to Article 4 (commencing with Section 60640) of Chapter 5 of
15Part 33; the high school exit examination, pursuant to Chapter 9
16(commencing with 60850) of Part 33; and other indicators of
17academic and workforce preparation success, such as reduced
18dropout rates, workforce preparation, increased matriculation into
19postsecondary educational institutions, and other measures as
20determined by the department.

21(b) This section shall become effective only when the
22longitudinal data on pupils enrolled in regional occupational centers
23and programs can be disaggregated from the California longitudinal
24pupil achievement data systembegin delete (CALPADs)end delete database, established
25pursuant to Chapter 10 (commencing with Section 60900) of Part
2633.

begin delete

27(c) On or before October 1, 2007, the department shall submit
28to the Department of Finance a detailed proposal for the
29implementation of the outcome reports required in subdivision (a).
30The proposal shall identify the specific data elements to be
31collected and the costs associated with the data collection and
32preparation of the report. The department shall consult with the
33Department of Finance and the office of the Legislative Analyst
34during the development of this proposal.

end delete
35begin insert

begin insertSEC. 359.end insert  

end insert

begin insertArticle 1.7 (commencing with Section 52336) of
36Chapter 9 of Part 28 of Division 4 of Title 2 of the end insert
begin insertEducation Codeend insert
37begin insert is repealed.end insert

38begin insert

begin insertSEC. 360.end insert  

end insert

begin insertArticle 2 (commencing with Section 52340) of
39Chapter 9 of Part 28 of Division 4 of Title 2 of the end insert
begin insertEducation Codeend insert
40begin insert is repealed.end insert

P346  1begin insert

begin insertSEC. 361.end insert  

end insert

begin insertArticle 3 (commencing with Section 52350) of
2Chapter 9 of Part 28 of Division 4 of Title 2 of the end insert
begin insertEducation Codeend insert
3begin insert is repealed.end insert

4begin insert

begin insertSEC. 362.end insert  

end insert

begin insertArticle 4 (commencing with Section 52370) of
5Chapter 9 of Part 28 of Division 4 of Title 2 of the end insert
begin insertEducation Codeend insert
6begin insert is repealed.end insert

7begin insert

begin insertSEC. 363.end insert  

end insert

begin insertArticle 4.5 (commencing with Section 52378) of
8Chapter 9 of Part 28 of Division 4 of Title 2 of the end insert
begin insertEducation Codeend insert
9begin insert is repealed.end insert

10begin insert

begin insertSEC. 364.end insert  

end insert

begin insertArticle 5 (commencing with Section 52381) of
11Chapter 9 of Part 28 of Division 4 of Title 2 of the end insert
begin insertEducation Codeend insert
12begin insert is repealed.end insert

13begin insert

begin insertSEC. 365.end insert  

end insert

begin insertArticle 7 (commencing with Section 52450) of
14Chapter 9 of Part 28 of Division 4 of Title 2 of the end insert
begin insertEducation Codeend insert
15begin insert is repealed.end insert

16begin insert

begin insertSEC. 366.end insert  

end insert

begin insertArticle 7.5 (commencing with Section 52460) of
17Chapter 9 of Part 28 of Division 4 of Title 2 of the end insert
begin insertEducation Codeend insert
18begin insert is repealed.end insert

19begin insert

begin insertSEC. 367.end insert  

end insert

begin insertArticle 8 (commencing with Section 52480) of
20Chapter 9 of Part 28 of Division 4 of Title 2 of the end insert
begin insertEducation Codeend insert
21begin insert is repealed.end insert

22begin insert

begin insertSEC. 368.end insert  

end insert

begin insertArticle 9 (commencing with Section 52485) of
23Chapter 9 of Part 28 of Division 4 of Title 2 of the end insert
begin insertEducation Codeend insert
24begin insert is repealed.end insert

25begin insert

begin insertSEC. 369.end insert  

end insert

begin insertArticle 1 (commencing with Section 52500) of
26Chapter 10 of Part 28 of Division 4 of Title 2 of the end insert
begin insertEducation
27Code
end insert
begin insert is repealed.end insert

28begin insert

begin insertSEC. 370.end insert  

end insert

begin insertArticle 3 (commencing with Section 52540) of
29Chapter 10 of Part 28 of Division 4 of Title 2 of the end insert
begin insertEducation
30Code
end insert
begin insert is repealed.end insert

31begin insert

begin insertSEC. 371.end insert  

end insert

begin insertArticle 4 (commencing with Section 52550) of
32Chapter 10 of Part 28 of Division 4 of Title 2 of the end insert
begin insertEducation
33Code
end insert
begin insert is repealed.end insert

34begin insert

begin insertSEC. 372.end insert  

end insert

begin insertArticle 5 (commencing with Section 52570) of
35Chapter 10 of Part 28 of Division 4 of Title 2 of the end insert
begin insertEducation
36Code
end insert
begin insert is repealed.end insert

37begin insert

begin insertSEC. 373.end insert  

end insert

begin insertArticle 6 (commencing with Section 52610) of
38Chapter 10 of Part 28 of Division 4 of Title 2 of the end insert
begin insertEducation
39Code
end insert
begin insert is repealed.end insert

P347  1begin insert

begin insertSEC. 374.end insert  

end insert

begin insertChapter 10.5 (commencing with Section 52651) of
2Part 28 of Division 4 of Title 2 of the end insert
begin insertEducation Codeend insertbegin insert is repealed.end insert

3begin insert

begin insertSEC. 375.end insert  

end insert

begin insertArticle 4 (commencing with Section 52750) of
4Chapter 11 of Part 28 of Division 4 of Title 2 of the end insert
begin insertEducation
5Code
end insert
begin insert is repealed.end insert

6begin insert

begin insertSEC. 376.end insert  

end insert

begin insertArticle 1 (commencing with Section 52800) of
7Chapter 12 of Part 28 of Division 4 of Title 2 of the end insert
begin insertEducation
8Code
end insert
begin insert is repealed.end insert

9begin insert

begin insertSEC. 377.end insert  

end insert

begin insertChapter 13 (commencing with Section 52910) of
10Part 28 of Division 4 of Title 2 of the end insert
begin insertEducation Codeend insertbegin insert is repealed.end insert

11begin insert

begin insertSEC. 378.end insert  

end insert

begin insertChapter 12.5 (commencing with Section 52920) of
12Part 28 of Division 4 of Title 2 of the end insert
begin insertEducation Codeend insertbegin insert is repealed.end insert

13begin insert

begin insertSEC. 379.end insert  

end insert

begin insertChapter 17 (commencing with Section 53080) of
14Part 28 of Division 4 of Title 2 of the end insert
begin insertEducation Codeend insertbegin insert is repealed.end insert

15begin insert

begin insertSEC. 380.end insert  

end insert

begin insertChapter 1 (commencing with Section 54000) of Part
1629 of Division 4 of Title 2 of the end insert
begin insertEducation Codeend insertbegin insert is repealed.end insert

17begin insert

begin insertSEC. 381.end insert  

end insert

begin insertChapter 2 (commencing with Section 54100) of Part
1829 of Division 4 of Title 2 of the end insert
begin insertEducation Codeend insertbegin insert is repealed.end insert

19begin insert

begin insertSEC. 382.end insert  

end insert

begin insertSection 54690 of the end insertbegin insertEducation Codeend insertbegin insert is amended
20to read:end insert

21

54690.  

(a) The Legislature hereby finds and declares that the
22partnership academies program has proven to be a highly effective
23state-school-private sector partnership, providing combined
24academic and occupational training to high school pupils who
25present a high risk of dropping out of school, and motivating those
26pupils to stay in school and graduate. Partnership academies are
27functioning in high schools across the state, with occupational
28education and skills development successfully offered in
29California’s 15 different industry sectors, including electronics,
30computer technology, finance, agribusiness, alternative energy,
31environmental design and construction, graphic arts and printing,
32international business, and space. Partnership academies have been
33honored with national awards for excellence, and the California
34partnership academies have been given high accolades in various
35textbooks and studies addressing career technical education
36programs.

37(b) The Legislature finds the partnership academies are in the
38forefront of school efforts to integrate academic and career
39technical education and that they can be effective in providing an
40integrated learning program and high motivation toward pursuing
P348  1skilled occupational fields to pupils at risk of dropping out of
2school and to pupils not motivated by the regular educational
3curriculum. Further, the Legislature finds the partnership academies
4can make a very positive contribution towards meeting the needs
5of the state for a highly skilled and educated workforce in the 21st
6century.

7(c) Therefore, the Legislature hereby states its intent to expand
8the number of partnership academies in this state’s high schools,
9hereafter to be known as California Partnership Academies; to
10broaden the availability of these learning experiences to interested
11pupils who do not meet the criteria of “at-risk” pupils; and to
12encourage the establishment of academies whose occupational
13fields address the needs of developing technologies.

14(d) For purposes of this article, an “at-risk” pupil means a pupil
15enrolled in high school who is at risk of dropping out of school,
16as indicated by at least three of the following criteria:

17(1) Past record of irregular attendance. For purposes of this
18section, “irregular attendance” means absence from school 20
19percent or more of the school year.

20(2) Past record of underachievement in which the pupil is at
21least one-third of a year behind the coursework for the respective
22grade level, or as demonstrated by credits achieved.

23(3) Past record of low motivation or a disinterest in the regular
24school program.

25(4) Disadvantaged economically.

26(5) Scoring below basic or far below basic in mathematics or
27English language arts on the standardized test administered
28pursuant to Article 4 (commencing with Section 60640) of Chapter
295 of Part 33.

30(6) Maintaining a grade point average of 2.2 or below, or the
31equivalent of a C minus.

32(e) Up to one-half of the pupils enrolled at a partnership
33academy may be pupils who do not meet the criteria of “at-risk”
34pupils.

begin delete

35(f) The department may expend no more than 5 percent of the
36funds received to carry out this article on administrative expenses.

end delete
37begin insert

begin insertSEC. 383.end insert  

end insert

begin insertSection 54691 of the end insertbegin insertEducation Codeend insertbegin insert is amended
38to read:end insert

begin delete
39

54691.  

Commencing with the 1993-94 fiscal year, from the
40funds appropriated for that purpose, the Superintendent shall issue
P349  1grants to school districts maintaining high schools that meet the
2specifications of Section 54692, for purposes of planning,
3establishing, and maintaining academies, as follows:

4(a) The Superintendent may issue planning grants for purposes
5of planning partnership academies. The Superintendent shall ensure
6that the planning grants are equitably distributed among
7high-wealth and low-wealth school districts in urban, rural, and
8suburban areas. Each planning grant shall be in the amount of
9fifteen thousand dollars ($15,000).

10(b) For the 1993-94 fiscal year, and each fiscal year thereafter,
11the Superintendent may issue grants for the implementation and
12maintenance of existing academies or academies planned pursuant
13to subdivision (a). Implementation and maintenance grants shall
14be calculated in accordance with the following schedule:

15(1) Districts operating academies may receive one thousand
16four hundred dollars ($1,400) per year for each qualified pupil
17enrolled in an academy during the first year of that academy’s
18operation, provided that no more than forty-two thousand dollars
19($42,000) may be granted to any one academy for the initial year.

20(2) Districts operating academies may receive one thousand two
21hundred dollars ($1,200) for each qualified pupil enrolled in an
22academy during the second year of that academy’s operation,
23provided that no more than seventy-two thousand dollars ($72,000)
24may be granted to any one academy for the second year.

25(3) Districts operating academies may receive nine hundred
26dollars ($900) for each qualified pupil enrolled in an academy
27during the third and following years of that academy’s operation,
28provided that no more than eighty-one thousand dollars ($81,000)
29may be granted to any one academy for each fiscal year.

30(c) For purposes of this section, a qualified pupil

end delete
31begin insert

begin insert54691.end insert  

end insert

begin insert(a)end insertbegin insertend insertbegin insertAn academy pupil end insertis a pupil who is enrolled in a
32partnership academy for the 10th, 11th, or 12th grade, obtains 90
33percent of the credits each academic year in courses that are
34required for graduation, and does any of the following:

35(1) Successfully completes a school year during the 10th grade
36with an attendance record of no less than 80 percent.

37(2) Successfully completes a school year during the 11th grade
38with an attendance record of no less than 80 percent.

39(3) Successfully graduates after the 12th grade.

P350  1A pupil enrolled in an academy who successfully completes only
2one semester with regard to enrollment, attendance, and credits
3within the school year is considered qualified for that semester begin delete4 and the district may receive one-half of the funds specified under
5subdivision (b) for that pupilend delete
.

begin delete

6(d)

end delete

7begin insert(b)end insert At the end of each school year, school districts thatbegin delete have
8been approvedend delete
begin insert chooseend insert to operatebegin delete academiesend deletebegin insert an academyend insert pursuant
9to this articlebegin delete shall certify theend deletebegin insert are encouraged to reportend insert following
10information to the Superintendent:

11(1) The operation of each academy in accordance with this
12article, including Sections 54692 and 54694.

13(2) The number of qualified pupils enrolled during the just
14completed school year, by grade level, for each academy operated
15by thebegin insert schoolend insert district.

16(3) The amount of matching funds and the dollar value of in-kind
17support made available to each academy in accordance with
18subdivisions (a) and (b) of Section 54692.

begin delete

19(e) The Superintendent shall adjust each school district’s grant
20in accordance with the certification made to him or her pursuant
21to subdivision (d) or in accordance with any discrepancies to the
22certification that may be revealed by audit. Notwithstanding the
23provisions of this section, the Superintendent may advance up to
2450 percent of the funds as he or she deems appropriate to districts
25that are approved to operate, or plan to operate partnership
26academies.

27(f) Funds granted to school districts pursuant to this article may
28be expended without regard to fiscal year. However, the funds
29must be expended for the maintenance and operation of academies.

end delete
30begin insert

begin insertSEC. 384.end insert  

end insert

begin insertSection 54692 of the end insertbegin insertEducation Codeend insertbegin insert is amended
31to read:end insert

begin delete
32

54692.  

In order to be eligible to receive funding pursuant to
33this article, a school district shall provide all of the following:

34(a) An amount equal to a 100 percent match of all funds received
35pursuant to this article in the form of direct and in-kind support
36provided by the district.

37(b) An amount equal to a 100 percent match of all funds received
38pursuant to this article in the form of direct and in-kind support
39provided by participating companies or other private sector
40organizations.

P351  1(c) An assurance that state funds provided by the partnership
2academies program shall be used only for the development,
3operation, and support of partnership academies.

4(d) An assurance that each

end delete
5begin insert

begin insert54692.end insert  

end insert
begin insert

A school district operating a partnership academy is
6encouraged to operate an academy as follows:

end insert

7begin insert(a)end insertbegin insertend insertbegin insertEstablish each end insertacademybegin delete will be establishedend delete as a “school
8within a school.” Academy teachers shall work as a team in
9planning, teaching, and troubleshooting program activities. Classes
10in the academy program shall be limited to academy pupils as
11specified in subdivision (e). Each participating school district shall
12establish an advisory committee consisting of individuals involved
13in academy operations, including school district and school
14administrators, lead teachers, and representatives of the private
15sector.

begin delete

16(e) Assurance that each

end delete

17begin insert(b)end insertbegin insertend insertbegin insertProvide each end insertacademy pupilbegin delete will be providedend delete with the
18following:

19(1) Instruction in at least three academic subjects each regular
20school term that prepares the pupil for a regular high school
21diploma, and, where possible and appropriate, to meet the subject
22requirements for admission to the California State University and
23the University of California. These subjects should contribute to
24an understanding of the occupational field of the academy.

25(2) Career technical education courses offered at each grade
26level at the academy that are part of an occupational course
27sequence that targets comprehensive skills and that does the
28following:

29(A) Provides career technical education in high skill occupations
30of regional and local economic need.

31(B) Focuses on occupations requiring comprehensive skills
32leading to higher than entry-level wages, or the possibility of
33significant wage increases after a few years on the job, or both.

34(C) Provides a sequence of courses that build upon each other
35in knowledge, skill development, and experience, and ends in a
36capstone course that includes an internship component.

37(D) Prepares pupils for employment and postsecondary
38education. Sequenced courses shall be linked to certificate and
39degree programs in the region, where possible.

P352  1(E) Whenever possible, prepares pupils for industry-recognized
2certifications.

3(F) Whenever possible and appropriate, offers career technical
4education courses that also meet the subject requirements for
5admission to the California State University and the University of
6California.

7(3) A class schedule that limits the attendance to the classes
8required in paragraphs (1) and (2) to pupils of the academy.
9Whenever possible, these classes should be block scheduled in a
10cluster to provide flexibility to academy teachers. During the 12th
11grade the number of academic classes may vary.

12(4) A mentor from the business community during the pupil’s
1311th grade year.

14(5) An employer-based internship or work experience that occurs
15in the summer following the 11th grade or during 12th grade year.

16(6) Additional motivational activities with private sector
17involvement to encourage academic and occupational preparation.

begin delete

18(f) Assurance that academy teachers have a

end delete

19begin insert(c)end insertbegin insertend insertbegin insertProvide academy teachers a end insertcommon planning period to
20interchange pupil and educational information. A second planning
21period should be provided for the lead teacher in addition to the
22normal planning period for full-time teachers and be supported as
23a part of the school district’s matching funds, whenever practical.

24begin insert

begin insertSEC. 385.end insert  

end insert

begin insertSection 54693 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
25

54693.  

The Superintendent of Public Instruction shall establish
26eligibility criteria for school districts that apply for grants pursuant
27to this article. When establishing criteria, the superintendent shall
28consider the commitment and need of the applicant district. The
29superintendent may consider district indicators of need such as the
30number or percent of pupils in poverty or with limited English
31proficiency, and the dropout rate.

end delete
32begin insert

begin insertSEC. 386.end insert  

end insert

begin insertSection 54695 of the end insertbegin insertEducation Codeend insertbegin insert is amended
33to read:end insert

34

54695.  

(a) The ninth grade teachers and counselors in schools
35maintained by school districtsbegin delete approved toend deletebegin insert thatend insert operate academies
36pursuant to this article shall identifybegin delete studentsend deletebegin insert pupilsend insert eligible to
37participate in an academy.

38(b) Teachers and counselors in schools maintained by school
39districtsbegin delete approved toend deletebegin insert thatend insert operate academies pursuant to this article,
40business representatives, and academybegin delete studentsend deletebegin insert pupilsend insert of academies
P353  1that are operating in the area shall be encouraged to make
2presentations to prospectivebegin delete studentsend deletebegin insert pupilsend insert and their parents.

3(c) The staff of each academy shall selectbegin delete studentsend deletebegin insert pupilsend insert from
4among those who have expressed an interest in the academy and
5whose parents or guardians have approved thebegin delete student’send deletebegin insert pupil’send insert
6 participation.

7begin insert

begin insertSEC. 387.end insert  

end insert

begin insertSection 54699 of the end insertbegin insertEducation Codeend insertbegin insert is amended
8to read:end insert

begin delete
9

54699.  

(a) (1) The Controller shall annually allocate the sum
10of eight million dollars ($8,000,000) from the Renewable Resource
11Trust Fund established pursuant to Section 25751 of the Public
12Resources Code or other related fund, upon appropriation by the
13Legislature, to the Superintendent for expenditure in the form of
14grants to school districts, that shall be allocated using the same
15criteria as provided in Article 5 (commencing with Section 54690),
16except as provided in subdivision (b) of Section 54691, and
17pursuant to the additional requirements of this article.

18(2) If sufficient funds are not available to fully meet the funding
19requirement of paragraph (1), for the 2010-11, 2011-12, and
202012-13 fiscal years, the Controller shall allocate the balance of
21funds required to meet the funding requirement from the
22Alternative and Renewable Fuel and Vehicle Technology Fund
23established pursuant to Section 44273 of the Health and Safety
24Code, upon appropriation by the Legislature, for expenditure in
25the form of grants to school districts, that shall be allocated using
26the same criteria as provided in Article 5 (commencing with
27Section 54690), except as provided in subdivision (b) of Section
2854691, and pursuant to the additional requirements of this article.

29(b) The Superintendent shall award grants pursuant to this article
30to school districts that do all of the following:

31(1) Meet the requirements specified in Article 5 (commencing
32with Section 54690).

33(2) Propose to implement

end delete
34begin insert

begin insert54699.end insert  

end insert

begin insert(a)end insertbegin insertend insertbegin insertSchool districts may implement end inserta partnership
35academy, orbegin delete toend delete maintain an existing academy, that focuses on
36employment in clean technology businesses or renewable energy
37businesses and provides skilled workforces for the products and
38services for energy or water conservation, or both, renewable
39energy, pollution reduction, or other technologies that improve the
40environment in furtherance of state environmental laws.

begin delete

P354  1(c) The Superintendent shall review grant applications submitted
2by school districts in consultation with the State Energy Resources
3Conservation and Development Commission.

4(d) The Superintendent, in consultation with the State Energy
5Resources Conservation and Development Commission, shall
6review ongoing programs to ensure that those programs comply
7with subdivision (b).

8(e) (1) No later than 60 days after the effective date of this
9article, and prior to the department issuing a request for grant
10 applications, the State

end delete

11begin insert(b)end insertbegin insertend insertbegin insertThe State end insertEnergy Resources Conservation and Development
12Commission, in consultation with the Superintendent, shall adopt
13guidelinesbegin delete to ensureend deletebegin insert soend insert that programsbegin delete receiving grantsend deletebegin insert mayend insert reflect
14current state energy policies and priorities as well as provide skills
15and education linked to the needs of relevant industries.

begin delete

16(2)

end delete

17begin insert(c)end insert Notwithstanding any other law, any guideline adopted
18pursuant to this section shall be exempt from the requirements of
19Chapter 3.5 (commencing with Section 11340) of Part 1 of Division
203 of Title 2 of the Government Code.

begin delete

21(f) (1) The Superintendent shall give priority for grants pursuant
22to this article according to the following:

end delete
begin delete

23(A) First, to school districts that propose

end delete

24begin insert(d)end insertbegin insertend insertbegin insertSchool districts are encouraged end insertto establish partnership
25academies that are consistent with the guidelines developed by the
26State Energy Resources Conservation and Development
27Commission pursuant to subdivisionbegin delete (e)end deletebegin insert (b)end insert.

begin delete

28(B) Second, to school districts that propose to establish a
29partnership academy at schoolsites that do not currently participate
30in the partnership academies program pursuant to Article 5
31(commencing with Section 54690).

32(C) Third, to school districts that would establish a partnership
33academy at schoolsites that do not currently participate in the green
34partnership academies program funded pursuant to Section 32 of
35Chapter 757 of the Statutes of 2008.

36(2) Notwithstanding subparagraphs (B) and (C) of paragraph
37(1), the Superintendent may assign a higher priority to a school
38district that has received a grant pursuant to the green partnership
39academies program funded pursuant to Section 32 of Chapter 757
40of the Statutes of 2008, subject to subdivision (d).

P355  1(3) The Superintendent shall award grants to a school district
2to establish or operate a partnership academy pursuant to this article
3in the following amounts:

4(A) A district operating a partnership academy may receive one
5thousand dollars ($1,000) per year for each qualified student
6enrolled in grade 9 in an academy during the first year of that
7academy’s operation, except that no more than forty-five thousand
8dollars ($45,000) may be granted to any one academy for the initial
9year.

10(B) A district operating a partnership academy may receive one
11thousand dollars ($1,000) per year for each qualified student
12enrolled in either grade 9 or 10 in an academy during the second
13year of that academy’s operation, except that no more than eighty
14thousand dollars ($80,000) may be granted to any one academy
15for the second year.

16(C) A district operating a partnership academy may receive one
17thousand dollars ($1,000) for each qualified student enrolled in
18any of grades 9 to 11, inclusive, in an academy during the third
19year of that academy’s operation, except that no more than one
20hundred twenty thousand dollars ($120,000) may be granted to
21any one academy for the third year.

22(D) A district operating a partnership academy may receive one
23thousand dollars ($1,000) for each qualified student enrolled in
24any of grades 9 to 12, inclusive, in an academy during the fourth
25and following years of that academy’s operation, except that no
26more than one hundred fifty thousand dollars ($150,000) may be
27granted to any one academy for each fiscal year.

28(4) For purposes of this section, “qualified student” has the same
29meaning as described in subdivision (c) of Section 54691, but shall
30also include a 9th grade pupil who meets the at-risk criteria
31specified in Section 54690, who is enrolled in an academy for the
329th grade, obtains 90 percent of the credits each academic year in
33courses that are required for graduation, and successfully completes
34a school year during the 9th grade with an attendance record of
35not less than 80 percent.

36(g) The Superintendent shall encourage a school district that
37receives a grant under this article to

end delete

38begin insert(e)end insertbegin insertend insertbegin insertSchool districts that operate a clean technology partnership
39academy are encouraged to end insert
work and coordinate with regional
P356  1occupational centers and programs for the required career technical
2education sequence of courses.

begin delete

3(h) A school district may apply for planning grants, in
4accordance with subdivision (a) of Section 54691, for
5implementing a partnership academy pursuant to this article.

end delete
begin delete

6(i)

end delete

7begin insert(f)end insert Commencing in 2014 and not later than January 1 of each
8year for which this article is operative, the Superintendent, in
9consultation with the State Energy Resources Conservation and
10Development Commission, shall provide a report to the Legislature
11that includes, but is not limited to, a description of the curriculum
12and substance of the programs fundedbegin delete by grants awardedend deletebegin insert operatedend insert
13 pursuant to this article. The first annual report shall include the
14identification of gaps in available curricula relating to clean
15technology and renewable energy that are consistent with current
16state energy policy and priorities, as well as the proportion of
17participating pupils who meet the at-risk criteria enumerated in
18subdivision (d) of Section 54690. The report also shall include
19begin insert availableend insert pupil participation databegin delete and data collected pursuant to
20subdivision (d) of Section 54691end delete
.

begin delete

21(j) Up to 5 percent of the funds transferred to the Superintendent
22pursuant to this article may be expended to pay the costs incurred
23in the administration of this article.

end delete
24begin insert

begin insertSEC. 388.end insert  

end insert

begin insertArticle 7.1 (commencing with Section 54740) of
25Chapter 9 of Part 29 of Division 4 of Title 2 of the end insert
begin insertEducation Codeend insert
26begin insert is repealed.end insert

27begin insert

begin insertSEC. 389.end insert  

end insert

begin insertSection 54750 of the end insertbegin insertEducation Codeend insertbegin insert is amended
28to read:end insert

29

54750.  

(a) begin deleteCommencing with the 2009-10 school year, when
30funds become available for additional partnership academies within
31the total number of grants available for all partnership academies
32pursuant to Section 54691, the Superintendent shall issue grants
33for the establishment of partnership academies and shall give
34priority to the establishment of end delete
begin insertSchool districts are encouraged to
35establish end insert
partnership academies dedicated to educating pupils in
36the emerging environmentally sound technologiesbegin delete until no less
37than one green technology partnership academy has been
38established in each of the nine economic regions established by
39the stateend delete
. The academies may include, but are not limited to,
40technologies that educate pupils in the following areas:

P357  1(1) Energy audits that include a determination of energy savings.

2(2) Retrofitting and weatherization activities that increase energy
3efficiency and conservation.

4(3) Energy-efficient and water-efficient buildings.

5(4) Retrofitting and installing energy-efficient household
6appliances, windows, doors, insulation, and lighting.

7(5) Retrofitting and installing water and energy conservation
8technologies in existing homes, industrial buildings, and
9commercial and public buildings, to improve efficiency, including
10the use of energy and water management technologies and control
11systems.

12(6) The design, construction, manufacture, sale, assembly,
13installation, and maintenance of energy-efficient technologies and
14renewable energy facilities, or the component parts of renewable
15energy technologies.

16(7) Energy-efficient technologies or practices and renewable
17energy production, or the component parts of renewable energy
18plants and energy distribution, including energy storage; energy
19infrastructure, including transmission; transportation, including
20logistics; and water and wastewater, including water conservation.

21(8) Performance and low-emission vehicle technology,
22automotive computer systems, mass transit fleet conversion, and
23the servicing and maintenance of those technologies.

24(9) Pollution prevention and hazardous and solid waste
25 reduction.

26(10) Ocean, soil, or water conservation, or forestation strategies
27to mitigate climate change impacts.

begin delete

28(b) (1) The selection of school districts to establish the green
29technology partnership academies and the planning and
30development of the green technology partnership academies shall
31be conducted pursuant to the procedures and requirements
32established in Section 54691 for all partnership academies. The
33planning grants shall be made available for academies pursuant to
34this article from the total number of grants established pursuant to
35Section 54691.

end delete
begin delete

36(2) In the event a school district applies to convert an existing
37school program to a partnership academy and meets all the criteria
38for a partnership academy pursuant to Section 54692 and paragraph
39(3), the department, in coordination with the Superintendent, may
P358  1provide that academy with first-year implementation funds, as
2appropriate.

end delete
begin delete

3(3) (A) In order to be eligible for funding pursuant to this article,
4the coursework and internship or preapprenticeship programs of
5the proposed academy shall focus on the use of environmentally
6sound technologies and practices. The proposed academy shall
7demonstrate this through its efforts to obtain input from
8environmental industry, utilities, and professional trade
9organizations.

end delete
begin delete

10(B) Staff

end delete

11begin insert(b)end insertbegin insertend insertbegin insertA school district operating green technology partnership
12academies is encouraged to provide staff end insert
development
13opportunitiesbegin delete also shall be included in the academy plansend delete to ensure
14that teaching staff has the opportunity to be educated in the use of
15emerging technologies and to become familiar with new materials
16and current practices in the field.

begin delete

17(c) The priority established in this section may be satisfied when
18the specified number of green technology partnership academies
19meeting the requirements of this article are funded by any of, or
20a combination of, funds appropriated for the establishment of
21partnership academies.

end delete
22begin insert

begin insertSEC. 390.end insert  

end insert

begin insertArticle 7.7 (commencing with Section 54760) of
23Chapter 9 of Part 29 of Division 4 of Title 2 of the end insert
begin insertEducation Codeend insert
24begin insert is repealed.end insert

25begin insert

begin insertSEC. 391.end insert  

end insert

begin insertSection 56365 of the end insertbegin insertEducation Codeend insertbegin insert is amended
26to read:end insert

27

56365.  

(a) Services provided by nonpublic, nonsectarian
28schools, as defined pursuant to Section 56034, and nonpublic,
29nonsectarian agencies, as defined pursuant to Section 56035, shall
30be made available. These services shall be provided pursuant to
31Section 56366, and in accordance with Section 300.146 of Title
3234 of the Code of Federal Regulations, under contract with the
33local educational agency to provide the appropriate special
34educational facilities, special education, or designated instruction
35and services required by the individual with exceptional needs if
36no appropriate public education program is available.

37(b) Pupils enrolled in nonpublic, nonsectarian schools and
38agencies under this section shall be deemed to be enrolled in public
39schools for all purposes of Chapter 4 (commencing with Section
4041600) of Part 24begin insert of Division 3end insert and Sectionbegin delete 42238end deletebegin insert 42238.02end insert. The
P359  1local educational agency shall be eligible to receive allowances
2under Articles 3 (commencing with Section 56836.165) and 4
3(commencing with Section 56836.20) of Chapter 7.2 for services
4that are provided to individuals with exceptional needs pursuant
5to the contract.

6(c) If the state participates in the federal program of assistance
7for state-operated or state-supported programs for individuals with
8exceptional needsbegin delete (P.L.end deletebegin insert (Public Lawend insert 89-313, Sec. 6), pupils
9enrolled in nonpublic, nonsectarian schools shall be deemed to be
10enrolled in state-supported institutions for all purposes of that
11program and shall be eligible to receive allowances under Chapter
127.2 (commencing with Section 56836) for supplemental services
13provided to individuals with exceptional needs pursuant to a
14contract with a local educational agency. In order to participate in
15the federal program, the state shall find that participation will not
16result in any additional expenditures from the General Fund.

17(d) The local educational agency shall pay to the nonpublic,
18nonsectarian school or agency the full amount of the tuition for
19individuals with exceptional needs that are enrolled in programs
20provided by the nonpublic, nonsectarian school pursuant to the
21contract.

22(e) Before contracting with a nonpublic, nonsectarian school or
23agency outside of this state, the local educational agency shall
24document its efforts to utilize public schools or to locate an
25appropriate nonpublic, nonsectarian school or agency program, or
26both, within the state.

27(f) If a local educational agency places a pupil with a nonpublic,
28nonsectarian school or agency outside of this state, the pupil’s
29individualized education program team shall submit a report to
30the Superintendent within 15 days of the placement decision. The
31report shall include information about the special education and
32related services provided by the out-of-state program placement
33and the costs of the special education and related services provided,
34and shall indicate the efforts of the local educational agency to
35locate an appropriate public school or nonpublic, nonsectarian
36school or agency, or a combination thereof, within the state. The
37Superintendent shall submit a report to the board on all placements
38made outside of this state.

39(g) If a local educational agency decides to place a pupil with
40a nonpublic, nonsectarian school or agency outside of this state,
P360  1that local educational agency shall indicate the anticipated date
2for the return of the pupil to a public or nonpublic, nonsectarian
3school or agency placement, or a combination thereof, located in
4the state and shall document efforts during the previous placement
5year to return the pupil.

6(h) In addition to meeting the requirements of Section 56366.1,
7a nonpublic, nonsectarian school or agency that operates a program
8outside of this state shall be certified or licensed by that state to
9provide, respectively, special education and related services and
10designated instruction and related services to pupils under the
11federal Individuals with Disabilities Education Act (20 U.S.C. Sec.
121400 et seq.).

13(i) A nonpublic, nonsectarian school or agency that is located
14outside of this state is eligible for certification pursuant to Section
1556366.1 only if a pupil is enrolled in a program operated by that
16school or agency pursuant to the recommendation of an
17individualized education program team in California, and if that
18pupil’s parents or guardians reside in California.

19(j) In accordance with Section 300.147(b) and (c) of Title 34 of
20the Code of Federal Regulations, the department shall disseminate
21copies of applicable standards to each nonpublic, nonsectarian
22school and nonpublic, nonsectarian agency to which a local
23educational agency has referred or placed an individual with
24exceptional needs and shall provide an opportunity for those
25nonpublic, nonsectarian schools and nonpublic, nonsectarian
26agencies to participate in the development and revision of state
27standards that apply to those entities.

28begin insert

begin insertSEC. 392.end insert  

end insert

begin insertSection 56366.1 of the end insertbegin insertEducation Codeend insertbegin insert is amended
29to read:end insert

30

56366.1.  

(a) A nonpublic, nonsectarian school or agency that
31seeks certification shall file an application with the Superintendent
32on forms provided by the department and include the following
33information on the application:

34(1) A description of the special education and designated
35instruction and services provided to individuals with exceptional
36needs if the application is for nonpublic, nonsectarian school
37certification.

38(2) A description of the designated instruction and services
39provided to individuals with exceptional needs if the application
40is for nonpublic, nonsectarian agency certification.

P361  1(3) A list of appropriately qualified staff, a description of the
2credential, license, or registration that qualifies each staff member
3rendering special education or designated instruction and services
4to do so, and copies of their credentials, licenses, or certificates of
5registration with the appropriate state or national organization that
6has established standards for the service rendered.

7(4) An annual operating budget.

8(5) Affidavits and assurances necessary to comply with all
9applicable federal, state, and local laws and regulations that include
10criminal record summaries required of all nonpublic, nonsectarian
11school or agency personnel having contact with minor children
12under Section 44237.

13(b) (1) The applicant shall provide the special education local
14plan area in which the applicant is located with the written
15notification of its intent to seek certification or renewal of its
16certification. The applicant shall submit on a form, developed by
17the department, a signed verification by local educational agency
18representatives that they have been notified of the intent to certify
19or renew certification. The verification shall include a statement
20that representatives of the local educational agency for the area in
21which the applicant is located have had the opportunity to review
22the application at least 60 calendar days prior to submission of an
23initial application to the Superintendent, or at least 30 calendar
24days prior to submission of a renewal application to the
25Superintendent. The signed verification shall provide assurances
26that local educational agency representatives have had the
27opportunity to provide input on all required components of the
28application.

29(2) If the applicant has not received a response from the local
30educational agency 60 calendar days from the date of the return
31receipt for initial applications or 30 calendar days from the date
32of the return receipt for renewal applications, the applicant may
33file the application with the Superintendent. A copy of the return
34receipt shall be included with the application as verification of
35notification efforts to the local educational agency.

36(3) The department shall mail renewal application materials to
37certified nonpublic, nonsectarian schools and agencies at least 120
38daysbegin delete prior toend deletebegin insert beforeend insert the date their current certification expires.

39(c) If the applicant operates a facility or program on more than
40one site, each site shall be certified.

P362  1(d) If the applicant is part of a larger program or facility on the
2same site, the Superintendent shall consider the effect of the total
3program on the applicant. A copy of the policies and standards for
4the nonpublic, nonsectarian school or agency and the larger
5program shall be available to the Superintendent.

6(e) begin deletePrior to end deletebegin insertBefore end insertcertification, the Superintendent shall conduct
7an onsite review of the facility and program for which the applicant
8seeks certification. The Superintendent may be assisted by
9representatives of the special education local plan area in which
10the applicant is located and a nonpublic, nonsectarian school or
11agency representative who does not have a conflict of interest with
12the applicant. The Superintendent shall conduct an additional onsite
13review of the facility and program within three years of the
14effective date of the certification, unless the Superintendent
15conditionally certifies the school or agency or unless the
16Superintendent receives a formal complaint against the school or
17agency. In the latter two cases, the Superintendent shall conduct
18an onsite review at least annually.

19(f) The Superintendent shall make a determination on an
20application within 120 days of receipt of the application and shall
21certify, conditionally certify, or deny certification to the applicant.
22If the Superintendent fails to take one of these actions within 120
23days, the applicant is automatically granted conditional certification
24for a period terminating on August 31 of the current school year.
25If certification is denied, the Superintendent shall provide reasons
26for the denial. The Superintendent may certify the school or agency
27for a period of not longer than one year.

28(g) Certification becomes effective on the date the nonpublic,
29nonsectarian school or agency meets all the application
30requirements and is approved by the Superintendent. Certification
31may be retroactive if the school or agency met all the requirements
32of this section on the date the retroactive certification is effective.
33Certification expires on December 31 of the terminating year.

34(h) The Superintendent annually shall review the certification
35of each nonpublic, nonsectarian school and agency. For this
36purpose, a certified school or agency annually shall update its
37application between August 1 and October 31, unless the board
38grants a waiver pursuant to Section 56101. The Superintendent
39may conduct an onsite review as part of the annual review.

P363  1(i) (1) The Superintendent shall conduct an investigation of a
2nonpublic, nonsectarian school or agency onsite at any time without
3prior notice if there is substantial reason to believe that there is an
4immediate danger to the health, safety, or welfare of a child. The
5Superintendent shall document the concern and submit it to the
6nonpublic, nonsectarian school or agency at the time of the onsite
7investigation. The Superintendent shall require a written response
8to any noncompliance or deficiency found.

9(2) With respect to a nonpublic, nonsectarian school, the
10Superintendent shall conduct an investigation, which may include
11an unannounced onsite visit, if the Superintendent receives
12evidence of a significant deficiency in the quality of educational
13services provided, a violation of Section 56366.9, or
14noncompliance with the policies expressed by subdivision (b) of
15Section 1501 of the Health and Safety Code by the nonpublic,
16 nonsectarian school. The Superintendent shall document the
17complaint and the results of the investigation and shall provide
18copies of the documentation to the complainant, the nonpublic,
19nonsectarian school, and the contracting local educational agency.

20(3) Violations or noncompliance documented pursuant to
21paragraph (1) or (2) shall be reflected in the status of the
22certification of the school, at the discretion of the Superintendent,
23pending an approved plan of correction by the nonpublic,
24nonsectarian school. The department shall retain for a period of
2510 years all violations pertaining to certification of the nonpublic,
26nonsectarian school or agency.

27(j) The Superintendent shall monitor the facilities, the
28educational environment, and the quality of the educational
29program, including the teaching staff, the credentials authorizing
30service, the standards-based core curriculum being employed, and
31the standard-focused instructional materials used, of an existing
32certified nonpublic, nonsectarian school or agency on a three-year
33cycle, as follows:

34(1) The nonpublic, nonsectarian school or agency shall complete
35a self-review in year one.

36(2) The Superintendent shall conduct an onsite review of the
37nonpublic, nonsectarian school or agency in year two.

38(3) The Superintendent shall conduct a followup visit to the
39nonpublic, nonsectarian school or agency in year three.

P364  1(k) (1) Notwithstanding any otherbegin delete provision ofend delete law, the
2Superintendent shall not certify a nonpublic, nonsectarian school
3or agency that proposes to initiate or expand services to pupils
4currently educated in the immediate prior fiscal year in a juvenile
5court program, community school pursuant to Section 56150, or
6other nonspecial education program, including independent study
7or adult school, or both, unless the nonpublic, nonsectarian school
8or agency notifies the county superintendent of schools and the
9special education local plan area in which the proposed new or
10expanded nonpublic, nonsectarian school or agency is located of
11its intent to seek certification.

12(2) The notification shall occur no later than the December 1
13begin delete prior toend deletebegin insert beforeend insert the new fiscal year in which the proposed or
14expanding school or agency intends to initiate services. The notice
15shall include the following:

16(A) The specific date upon which the proposed nonpublic,
17nonsectarian school or agency is to be established.

18(B) The location of the proposed program or facility.

19(C) The number of pupils proposed for services, the number of
20pupils currently served in the juvenile court, community school,
21or other nonspecial education program, the current school services
22including special education and related services provided for these
23pupils, and the specific program of special education and related
24services to be provided under the proposed program.

25(D) The reason for the proposed change in services.

26(E) The number of staff who will provide special education and
27designated instruction and services and hold a current valid
28California credential or license in the service rendered.

29(3) In addition to the requirements in subdivisions (a) to (f),
30inclusive, the Superintendent shall require and consider the
31following in determining whether to certify a nonpublic,
32nonsectarian school or agency as described in this subdivision:

33(A) A complete statement of the information required as part
34of the notice under paragraph (1).

35(B) Documentation of the steps taken in preparation for the
36conversion to a nonpublic, nonsectarian school or agency, including
37information related to changes in the population to be served and
38the services to be provided pursuant to each pupil’s individualized
39education program.

P365  1(4) Notwithstanding any otherbegin delete provision ofend delete law, the certification
2becomes effective no earlier than July 1 if the school or agency
3provided the notification required pursuant to paragraph (1).

4(l) (1) Notwithstanding any otherbegin delete provision ofend delete law, the
5Superintendent shall not certify or renew the certification of a
6nonpublic, nonsectarian school or agency, unless all of the
7following conditions are met:

8(A) The entity operating the nonpublic, nonsectarian school or
9agency maintains separate financial records for each entity that it
10operates, with each nonpublic, nonsectarian school or agency
11identified separately from any licensed children’s institution that
12it operates.

13(B) The entity submits an annual budget that identifies the
14 projected costs and revenues for each entity and demonstrates that
15the rates to be charged are reasonable to support the operation of
16the entity.

17(C) The entity submits an entitywide annual audit that identifies
18its costs and revenues, by entity, in accordance with generally
19accepted accounting and auditing principles. The audit shall clearly
20document the amount of moneys received and expended on the
21education program provided by the nonpublic, nonsectarian school.

22(D) The relationship between various entities operated by the
23same entity are documented, defining the responsibilities of the
24entities. The documentation shall clearly identify the services to
25be provided as part of each program, for example, the residential
26or medical program, the mental health program, or the educational
27program. The entity shall not seek funding from a public agency
28for a service, either separately or as part of a package of services,
29if the service is funded by another public agency, either separately
30or as part of a package of services.

31(2) For purposes of this section, “licensed children’s institution”
32has the same meaning as it is defined by Section 56155.5.

33(m) The school or agency shall be charged a reasonable fee for
34certification. The Superintendent may adjust the fee annually
35commensurate with the statewide average percentage inflation
36adjustment computed forbegin delete revenue limitsend deletebegin insert local control funding
37formula allocations pursuant to Section 42238.02, as implemented
38by Section 42238.03,end insert
of unified school districts with greater than
391,500 units of average daily attendance if the percentage increase
40is reflected in thebegin insert schoolend insert districtbegin delete revenue limitend deletebegin insert local control funding
P366  1formula allocation pursuant to Section 42238.02, as implemented
2by Section 42238.03,end insert
for inflation purposes. For purposes of this
3section, the base fee shall be the following:


4

 

(1)1-5 pupils   

$  300

(2)6-10 pupils   

500

(3)11-24 pupils   

1,000

(4)25-75 pupils   

1,500

(5)76 pupils and over   

2,000

P366 10

 

11The school or agency shall pay this fee when it applies for
12certification and when it updates its application for annual renewal
13by the Superintendent. The Superintendent shall use these fees to
14conduct onsite reviews, which may include field experts. No fee
15shall be refunded if the application is withdrawn or is denied by
16the Superintendent.

17(n) (1) Notwithstanding any otherbegin delete provision ofend delete law, only those
18nonpublic, nonsectarian schools and agencies that provide special
19education and designated instruction and services utilizing staff
20who hold a certificate, permit, or other document equivalent to
21that which staff in a public school are required to hold in the service
22rendered are eligible to receive certification. Only those nonpublic,
23nonsectarian schools or agencies located outside of California that
24employ staff who hold a current valid credential or license to render
25special education and related services as required by that state shall
26be eligible to be certified.

27(2) The board shall develop regulations to implement this
28subdivision.

29(o) In addition to meeting the standards adopted by the board,
30a nonpublic, nonsectarian school or agency shall provide written
31assurances that it meets all applicable standards relating to fire,
32health, sanitation, and building safety.

33begin insert

begin insertSEC. 393.end insert  

end insert

begin insertSection 56836.21 of the end insertbegin insertEducation Codeend insertbegin insert is amended
34to read:end insert

35

56836.21.  

(a) The department shall administer an extraordinary
36cost pool to protect special education local plan areas from the
37extraordinary costs associated with single placements as described
38in subdivision (d). Funds shall be appropriated for this purpose in
39the annual Budget Act. Special education local plan areas shall be
P367  1eligible for reimbursement from this pool in accordance with this
2section.

3(b) The threshold amount for claims under this section shall be
4the lesser of the following:

5(1) One percent of the allocation calculated pursuant to Section
656836.08 for the special education local plan area for the current
7fiscal year for any special education local plan area that meets the
8criteria in Section 56212.

9(2) The department shall calculate the average cost of a
10nonpublic, nonsectarian school placement in the 1997-98 fiscal
11year. This amount shall be multiplied by 2.5, then by one plus the
12inflation factor computed pursuant to Section 42238.1,begin insert as that
13section read on June 30, 2013,end insert
to obtain the alternative threshold
14amount for claims in the 1998-99 fiscal year. In subsequent fiscal
15years, the alternative threshold amount shall be the alternative
16threshold amount for the prior fiscal year multiplied by one plus
17the inflation factor computed pursuant to Section 42238.1begin insert, as that
18section read on June 30, 2013, through the 2012-13 fiscal year
19and commencing with the 2013-14 fiscal year, paragraph (2) of
20 subdivision (d) of Section 42238.02end insert
.

21(c) Special education local plan areas are eligible to submit
22claims for costs exceeding the threshold amount on forms
23developed by the department. All claims for a fiscal year shall be
24submitted by November 30 following the close of the fiscal year.
25If the total amount claimed by special education local plan areas
26exceeds the amount appropriated, the claims shall be prorated.

27(d) Special education local plan areas are eligible to submit
28claims for the costs of nonpublic, nonsectarian school placements
29in excess of those in existence in the 1997-98 fiscal year and of
30special education and related services for pupils who reside in
31licensed children’s institutions.

32begin insert

begin insertSEC. 394.end insert  

end insert

begin insertSection 56836.24 of the end insertbegin insertEducation Codeend insertbegin insert is amended
33to read:end insert

34

56836.24.  

Commencing with the 1998-99 fiscal year and each
35year thereafter, thebegin delete superintendentend deletebegin insert Superintendentend insert shall make the
36following computations to determine the amount of funding for
37the purposes specified in Section 56836.23 to apportion to each
38special education local plan area for the fiscal year in which the
39computation is made:

P368  1(a) For the 1998-99 fiscal year the superintendent shall make
2the following computations:

3(1) Multiply the total amount of state General Fund money
4allocated to the special education local plan areas in the 1997-98
5fiscal year, for the purposes of Article 9 (commencing with Section
656780) of Chapter 7, as that chapter existed on December 31, 1998,
7by one plus the inflation factor computed pursuant to subdivision
8(b) of Section 42238.1begin insert, as that section read on June 30, 2013,end insert for
9the 1998-99 fiscal year.

10(2) Divide the amount calculated in paragraph (1) by the units
11of average daily attendance, exclusive of average daily attendance
12for absences excused pursuant to subdivision (b) of Section 46010
13as that subdivision read on July 1, 1997, reported for the special
14education local plan area for the 1997-98 fiscal year.

15(3) To determine the amount to be allocated to each special
16education local plan area in the 1998-99 fiscal year, the
17 superintendent shall multiply the amount computed in paragraph
18(2) by the number of units of average daily attendance reported
19for the special education local plan area for the 1998-99 fiscal
20year, except that a special education local plan area designated as
21a necessary small special education local plan area in accordance
22with Section 56212 and reporting fewer than 15,000 units of
23average daily attendance for the 1998-99 fiscal year shall be
24deemed to have 15,000 units of average daily attendance, and no
25special education local plan area shall receive less than it received
26in the 1997-98 fiscal year.

27(b) For the 1999-2000 fiscal year and each fiscal year thereafter,
28thebegin delete superintendentend deletebegin insert Superintendentend insert shall make the following
29calculations:

30(1) Multiply the amount determined in paragraph (2) of
31subdivision (a) by one plus the inflation factor computed pursuant
32to subdivision (b) of Section 42238.1begin insert, as that section read on June
3330, 2013, and commencing with the 2013-14 fiscal year, paragraph
34(2) of subdivision (d) of Section 42238.02end insert
for the current fiscal
35year.

36(2) Multiply the amount determined in paragraph (1) by the
37number of units of average daily attendance reported for the special
38education local plan area for the current fiscal year, except that a
39special education local plan area designated as a necessary small
40special education local plan area in accordance with Section 56212
P369  1and reporting fewer than 15,000 units of average daily attendance
2for the current fiscal year shall be deemed to have 15,000 units of
3average daily attendance.

4begin insert

begin insertSEC. 395.end insert  

end insert

begin insertChapter 3.1 (commencing with Section 58520) of
5Part 31 of Division 4 of Title 2 of the end insert
begin insertEducation Codeend insertbegin insert is repealed.end insert

6begin insert

begin insertSEC. 396.end insert  

end insert

begin insertChapter 5 (commencing with Section 58700) of Part
731 of Division 4 of Title 2 of the end insert
begin insertEducation Codeend insertbegin insert is repealed.end insert

8begin insert

begin insertSEC. 397.end insert  

end insert

begin insertChapter 6 (commencing with Section 58800) of Part
931 of Division 4 of Title 2 of the end insert
begin insertEducation Codeend insertbegin insert is repealed.end insert

10begin insert

begin insertSEC. 398.end insert  

end insert

begin insertThe heading of Article 7 (commencing with Section
1160117) of Chapter 1 of Part 33 of Division 4 of Title 2 of the end insert
begin insert12Education Codeend insertbegin insert is amended to read:end insert

13 

14Article 7.  begin deletePupil Textbook and Instructional Materials Incentive
15Program end delete
begin insertSufficiency of Instructional Materialsend insert
16

 

17begin insert

begin insertSEC. 399.end insert  

end insert

begin insertSection 60117 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
18

60117.  

This article shall be known and may be cited as the
19Pupil Textbook and Instructional Materials Incentive Program Act.

end delete
20begin insert

begin insertSEC. 400.end insert  

end insert

begin insertSection 60118 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
21

60118.  

County offices of education may, at their option, be
22eligible to receive funds pursuant to this article. Allocations to
23county offices of education shall be based upon prior year average
24daily attendance in county operated educational programs and at
25the average amount allocated to school districts per unit of average
26daily attendance. For the purposes of this article, the terms
27“governing board of a school district” and “governing board” are
28deemed to include county boards of education.

end delete
29begin insert

begin insertSEC. 401.end insert  

end insert

begin insertSection 60119 of the end insertbegin insertEducation Codeend insertbegin insert is amended
30to read:end insert

31

60119.  

(a) begin deleteIn order to be eligible to receive funds available
32for purposes of this article, the end delete
begin insertThe end insertgoverning board of a school
33district shall take the following actions:

34(1) (A) The governing board of a school district shall hold a
35public hearing or hearings at which the governing boardbegin insert of the
36school districtend insert
shall encourage participation by parents, teachers,
37members of the community interested in the affairs of the school
38district, and bargaining unit leaders, and shall make a
39determination, through a resolution, as to whether each pupil in
40each school in the school district has sufficient textbooks or
P370  1instructional materials, or both, that are aligned to the content
2standards adopted pursuant to Section 60605 or 60605.8 in each
3of the following subjects, as appropriate, that are consistent with
4the content and cycles of the curriculum framework adopted by
5the state board:

6(i) Mathematics.

7(ii) Science.

8(iii) History-social science.

9(iv) English language arts, including the English language
10development component of an adopted program.

11(B) The public hearing shall take place on or before the end of
12the eighth week from the first day pupils attend school for that
13year. A school district that operates schools on a multitrack,
14year-round calendar shall hold the hearing on or before the end of
15the eighth week from the first day pupils attend school for that
16year on any tracks that begin a school year in August or September.
17For purposes of the 2004-05 fiscal year only, the governing board
18of a school district shall make a diligent effort to hold a public
19hearing pursuant to this section on or before December 1, 2004.

20(C) As part of the hearing required pursuant to this section, the
21governing board of a school district also shall make a written
22determination as to whether each pupil enrolled in a foreign
23language or health course has sufficient textbooks or instructional
24materials that are consistent with the content and cycles of the
25curriculum frameworks adopted by the state board for those
26subjects. The governing board of a school district also shall
27determine the availability of laboratory science equipment as
28applicable to science laboratory courses offered in grades 9 to 12,
29inclusive. The provision of the textbooks, instructional materials,
30or science equipment specified in this subparagraph is not a
31condition of receipt of funds provided by this subdivision.

32(2) (A) If the governing board of a school district determines
33that there are insufficient textbooks or instructional materials, or
34both, the governing boardbegin insert of the school districtend insert shall provide
35information to classroom teachers and to the public setting forth,
36in the resolution, for each school in which an insufficiency exists,
37the percentage of pupils who lack sufficient standards-aligned
38textbooks or instructional materials in each subject area and the
39reasons that each pupil does not have sufficient textbooks or
40instructional materials, or both, and take any action, except an
P371  1action that would require reimbursement by the Commission on
2State Mandates, to ensure that each pupil has sufficient textbooks
3or instructional materials, or both, within two months of the
4beginning of the school year in which the determination is made.

5(B) In carrying out subparagraph (A), the governing board of a
6school district may use moneys in any of the following funds:

7(i) Any funds available for textbooks or instructional materials,
8or both,begin delete from categorical programs, including any funds allocated
9to school districts that have been appropriated in the annual Budget
10Actend delete
begin insert including any funds received pursuant to Section 8880.5 of
11the Government Codeend insert
.

begin delete

12(ii) Any funds of the school district that are in excess of the
13amount available for each pupil during the prior fiscal year to
14purchase textbooks or instructional materials, or both.

end delete
begin delete

15(iii)

end delete

16begin insert(ii)end insert Any other funds available to the school district for textbooks
17or instructional materials, or both.

18(b) The governing board of a school district shall provide 10
19days’ notice of the public hearing or hearings set forth in
20subdivision (a). The notice shall contain the time, place, and
21purpose of the hearing and shall be posted in three public places
22in the school district. The hearing shall be held at a time that will
23encourage the attendance of teachers and parents and guardians
24of pupils who attend the schools in the school district and shall
25not take place during or immediately following school hours.

26(c) (1) For purposes of this section, “sufficient textbooks or
27instructional materials” means that each pupil, including English
28learners, has a standards-aligned textbook or instructional materials,
29or both, to use in class and to take home. This paragraph does not
30require two sets of textbooks or instructional materials for each
31pupil. The materials may be in a digital format as long as each
32pupil, at a minimum, has and can access the same materials in the
33class and to take home, as all other pupils in the same class or
34course in the school district and has the ability to use and access
35them at home.

36(2) Sufficient textbooks or instructional materials as defined in
37paragraph (1) do not include photocopied sheets from only a
38portion of a textbook or instructional materials copied to address
39a shortage.

P372  1(d) The governing board of a school district that receives funds
2for instructional materials from any state source is subject to the
3requirements of this section.

4(e) For the purpose of transitioning to instructional materials
5that are aligned with the common core academic content standards,
6it is the intent of the Legislature that textbooks, instructional
7materials, and supplemental instructional materials be deemed to
8be aligned with the content standards pursuant to subdivisions (a)
9and (c), and be deemed consistent with the content and cycles of
10the curriculum framework adopted by the state board pursuant to
11subdivision (a) if the textbooks, instructional materials,
12supplemental instructional materials, or a combination of any such
13materials are aligned to the content standards adopted pursuant to
14Section 60605 or 60605.8.

15begin insert

begin insertSEC. 402.end insert  

end insert

begin insertArticle 3 (commencing with Section 60240) of
16Chapter 2 of Part 33 of Division 4 of Title 2 of the end insert
begin insertEducation Codeend insert
17begin insert is repealed.end insert

18begin insert

begin insertSEC. 403.end insert  

end insert

begin insertArticle 7 (commencing with Section 60350) of
19Chapter 2 of Part 33 of Division 4 of Title 2 of the end insert
begin insertEducation Codeend insert
20begin insert is repealed.end insert

21begin insert

begin insertSEC. 404.end insert  

end insert

begin insertChapter 4 (commencing with Section 60500) of Part
2233 of Division 4 of Title 2 of the end insert
begin insertEducation Codeend insertbegin insert is repealed.end insert

23begin insert

begin insertSEC. 405.end insert  

end insert

begin insertSection 60851 of the end insertbegin insertEducation Codeend insertbegin insert is amended
24to read:end insert

25

60851.  

(a) Commencing with the 2003-04 school year and
26each school year thereafter, each pupil completing grade 12 shall
27successfully pass the high school exit examination as a condition
28of receiving a diploma of graduation or a condition of graduation
29from high school. Funding for the administration of the high school
30exit examination shall be provided for in the annual Budget Act.
31The Superintendent shall apportion funds appropriated for this
32purpose to enable school districts to meet the requirements of this
33subdivision and subdivisions (b), (c), and (d). The state board shall
34establish the amount of funding to be apportioned per test
35administered, based on a review of the cost per test.

36(b) Each pupil shall take the high school exit examination in
37grade 10 beginning in the 2001-02 school year and may take the
38examination during each subsequent administration, until each
39section of the examination has been passed.

P373  1(c) (1) At the parent or guardian’s request, a school principal
2shall submit a request for a waiver of the requirement to
3successfully pass the high school exit examination to the governing
4board of the school district for a pupil with a disability who has
5taken the high school exit examination with modifications that
6alter what the test measures and has received the equivalent of a
7passing score on one or both subject matter parts of the high school
8exit examination. A governing board of a school district may waive
9the requirement to successfully pass one or both subject matter
10parts of the high school exit examination for a pupil with a
11disability if the principal certifies to the governing board of the
12school district that the pupil has all of the following:

13(A) An individualized education program adopted pursuant to
14the federal Individuals with Disabilities Education Act (20 U.S.C.
15Sec. 1400 et seq.) or a plan adopted pursuant to Section 504 of the
16federal Rehabilitation Act of 1973 (29 U.S.C. Sec. 794(a)) in place
17that requires the accommodations or modifications to be provided
18to the pupil when taking the high school exit examination.

19(B) Sufficient high school level coursework either satisfactorily
20completed or in progress in a high school level curriculum
21sufficient to have attained the skills and knowledge otherwise
22needed to pass the high school exit examination.

23(C) An individual score report for the pupil showing that the
24pupil has received the equivalent of a passing score on the high
25school exit examination while using a modification that
26fundamentally alters what the high school exit examination
27measures as determined by the state board.

28(2) A school district shall report to the state board, in a manner
29and by a date determined by the Superintendent, the number and
30characteristics of waivers reviewed, granted, and denied under this
31subdivision and any additional information determined to be in
32furtherance of this subdivision.

33(d) The high school exit examination shall be offered in each
34public school and state special school that provides instruction in
35grades 10, 11, or 12, on the dates designated by the Superintendent.
36An exit examination may not be administered on any date other
37than those designated by the Superintendent as examination days
38or makeup days.

39(e) The results of the high school exit examination shall be
40provided to each pupil taking the examination within eight weeks
P374  1of the examination administration and in time for the pupil to take
2any section of the examination not passed at the next
3administration. A pupil shall take again only those parts of the
4examination he or she has not previously passed and may not retake
5any portion of the exit examination that he or she has previously
6passed.

7(f) Supplemental instruction shall be provided to any pupil who
8does not demonstrate sufficient progress toward passing the high
9school exit examination. To the extent that school districts have
10aligned their curriculum with the state academic content standards
11adopted by the state board, the curriculum for supplemental
12instruction shall reflect those standards and shall be designed to
13assist the pupils to succeed on the high school exit examination.
14This chapter does not require the provision of supplemental
15services using resources that are not regularly available to a school
16or school district, including summer school instructionbegin delete provided
17pursuant to Section 37252end delete
. In no event shall any action taken as a
18result of this subdivision cause or require reimbursement by the
19Commission on State Mandates. Sufficient progress shall be
20determined on the basis of either of the following:

21(1) The results of the assessments administered pursuant to
22Article 4 (commencing with Section 60640) of Chapter 5begin delete of Part
2333end delete
and the minimum levels of proficiency recommended by the
24state board pursuant to Section 60648.

25(2) The grades of the pupil and other indicators of academic
26achievement designated by the school district.

27begin insert

begin insertSEC. 406.end insert  

end insert

begin insertSection 62002 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
28

62002.  

If the Legislature does not enact legislation to continue
29a program listed in this part, the funding of that program shall
30continue for the general purposes of that program as specified in
31the provisions relating to the establishment and operation of the
32program. The funds shall be disbursed according to the
33identification criteria and allocation formulas for the program in
34effect on the date the program shall cease to be operative pursuant
35to this part both with regard to state-to-district and district-to-school
36disbursements. The funds shall be used for the intended purposes
37of the program, but all relevant statutes and regulations adopted
38thereto regarding the use of the funds shall not be operative, except
39as specified in Section 62002.5.

end delete
40begin insert

begin insertSEC. 407.end insert  

end insert

begin insertSection 62002.5 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
P375  1

62002.5.  

Parent advisory committees and school site councils
2which are in existence pursuant to statutes or regulations as of
3January 1, 1979, shall continue subsequent to the termination of
4funding for the programs sunsetted by this chapter. Any school
5receiving funds from Economic Impact Aid or Bilingual Education
6Aid subsequent to the sunsetting of these programs as provided in
7this chapter, shall establish a school site council in conformance
8with the requirements in Section 52012. The functions and
9responsibilities of such advisory committees and school site
10councils shall continue as prescribed by the appropriate law or
11regulation in effect as of January 1, 1979.

end delete
12begin insert

begin insertSEC. 408.end insert  

end insert

begin insertSection 62003 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
13

62003.  

The Department of Education shall apportion the funds
14specified in Section 62002 to school districts and shall audit the
15use of such funds to ensure that such funds are expended for
16eligible pupils according to the purposes for which the legislation
17was originally established for such programs.

end delete
18begin insert

begin insertSEC. 409.end insert  

end insert

begin insertSection 62004 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
19

62004.  

The State Auditor shall audit, on a sampling basis,
20school districts’ use of the funds specified in Section 62002.

end delete
21begin insert

begin insertSEC. 410.end insert  

end insert

begin insertSection 62005 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
22

62005.  

If the Superintendent of Public Instruction determines
23that a school district did not comply with the provisions of this
24chapter, any apportionment subsequently made pursuant to Section
2562003 shall be reduced by two times the amount the superintendent
26determines was not used in compliance with the provisions of this
27chapter.

end delete
28begin insert

begin insertSEC. 411.end insert  

end insert

begin insertSection 62005.5 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
29

62005.5.  

Notwithstanding Section 62005, if the Superintendent
30of Public Instruction determines that a school district or county
31superintendent of schools fails to comply with the purposes of the
32funds apportioned pursuant to Section 62003, the Superintendent
33of Public Instruction may terminate the funding to that district or
34county superintendent beginning with the next succeeding fiscal
35year.

end delete
36begin insert

begin insertSEC. 412.end insert  

end insert

begin insertSection 63000 of the end insertbegin insertEducation Codeend insertbegin insert is amended
37to read:end insert

38

63000.  

The provisions of this chapter shall apply to funds
39received forbegin delete the following categorical programs:end deletebegin insert child care and
P376  1development programs pursuant to Chapter 2 (commencing with
2Section 8200) of Part 6 of Division 1 of Title 1.end insert

begin delete

3(a) Child care and development programs pursuant to Chapter
42 (commencing with Section 8200) of Part 6.

end delete
begin delete

5(b) School and Library Improvement Block Grant pursuant to
6Article 7 (commencing with Section 41570) of Chapter 3.2 of Part
724.

end delete
begin delete

8(c) Bilingual education programs pursuant to Article 1
9(commencing with Section 52000) and Article 3 (commencing
10with Section 52160) of Chapter 7 of Part 28.

end delete
begin delete

11(d) Economic Impact Aid programs pursuant to Chapter 1
12(commencing with Section 54000) of Part 29.

end delete
begin delete

13(e) The Miller-Unruh Basic Reading Act of 1965 pursuant to
14Chapter 2 (commencing with Section 54100) of Part 29.

end delete
begin delete

15(f) Compensatory education programs pursuant to Chapter 4
16(commencing with Section 54400) of Part 29, except for programs
17for migrant children pursuant to Article 3 (commencing with
18Section 54440) of Chapter 4 of Part 29.

end delete
19begin insert

begin insertSEC. 413.end insert  

end insert

begin insertSection 63001 of the end insertbegin insertEducation Codeend insertbegin insert is amended
20to read:end insert

21

63001.  

begin deleteEach end deletebegin insertA end insertschool district that, inbegin delete anyend deletebegin insert aend insert fiscal year, receives
22begin delete anyend deletebegin insert anend insert apportionment forbegin delete anyend deletebegin insert aend insert program specified in Section 63000
23shallbegin delete utilizeend deletebegin insert useend insert no less than 85 percent of that apportionment at
24schoolsites for direct services to pupils.begin delete To the extent a school
25district chooses to transfer, pursuant to Section 41500, up to 15
26percent of School and Library Improvement Block Grant funds,
27apportioned pursuant to Article 7 (commencing with Section
2845170) of Chapter 3.2 of Part 24, a school district shall utilize no
29less than 85 percent of the amount remaining after the transfer for
30direct services to pupils.end delete

31begin insert

begin insertSEC. 414.end insert  

end insert

begin insertSection 64000 of the end insertbegin insertEducation Codeend insertbegin insert is amended
32to read:end insert

33

64000.  

(a) The provisions of this part shall apply to
34applications for funds under the following categorical programs:

begin delete

35(1) Bilingual education programs pursuant to Article 3
36(commencing with Section 52160) of Chapter 7 of Part 28.

end delete
begin delete

37(2) School-based coordinated categorical programs established
38pursuant to Chapter 12 (commencing with Section 52800) of Part
3928.

end delete
begin delete

P377  1(3) Economic Impact Aid programs established pursuant to
2Chapter 1 (commencing with Section 54000) of Part 29.

end delete
begin delete

3(4) The Miller-Unruh Basic Reading Act of 1965 pursuant to
4Chapter 2 (commencing with Section 54100) of Part 29.

end delete
begin delete

5(5) Compensatory education programs established pursuant to
6Chapter 4 (commencing with Section 54400) of Part 29, except
7for programs for migrant children pursuant to Article 3
8(commencing with Section 54440) of Chapter 4 of Part 29.

end delete
begin delete

9(6)

end delete

10begin insert(1)end insert Programs providing assistance to disadvantaged pupils under
11Section 6312 of Title 20 of the United States Code, and programs
12providing assistance for neglected or delinquent pupils who are at
13risk of dropping out of school, as funded by Section 6421 of Title
1420 of the United States Code.

begin delete

15(7) Capital expense funding, as provided by Title I of the
16Improving America’s Schools Act of 1994 (20 U.S.C. Sec. 1001
17et seq.).

end delete
begin delete

18(8) California Peer Assistance and Review Programs for
19Teachers established pursuant to Article 4.5 (commencing with
20Section 44500) of Chapter 3 of Part 25.

end delete
begin delete

21(9)

end delete

22begin insert(2)end insert Professional development programs established pursuant to
23Section 6601 of Title 20 of the United States Code.

begin delete

24(10) Innovative Program Strategies Programs established
25pursuant to Section 7303 of Title 20 of the United States Code.

end delete
begin delete

26(11) Programs established under the federal Class Size
27Reduction Initiative (P.L. 106-554).

end delete
begin delete

28(12)

end delete

29begin insert(3)end insert Programs for tobacco use prevention funded by Section 7115
30of Title 20 of the United States Code.

begin delete

31(13) School safety and violence prevention programs, established
32pursuant to Article 3.6 (commencing with Section 32228) of
33Chapter 2 of Part 19.

end delete
begin delete

34(14)

end delete

35begin insert(4)end insert Safe and Drug Free Schools and Communities programs
36established pursuant to Section 7113 of Title 20 of the United
37States Code.

begin delete

38(b) Each school district that elects to apply for any of these state
39funds shall submit to the department, for approval by the state
P378  1board, a single consolidated application for approval or continuance
2of those state categorical programs subject to this part.

end delete
begin delete

3(c) Each school

end delete

4begin insert(b)end insertbegin insertend insertbegin insertA school end insertdistrict that elects to apply for any of these federal
5funds may submit to the department for approval, by the state
6board, a single consolidated application for approval or continuance
7of those federal categorical programs subject to this part.

8begin insert

begin insertSEC. 415.end insert  

end insert

begin insertSection 7906 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
9to read:end insert

10

7906.  

For school districts:

11(a) “ADA” means a school district’s second principal
12apportionment units of average daily attendance as determined
13pursuant to Sectionbegin delete 42238.5end deletebegin insert 42238.05end insert of the Education Code,
14including average daily attendance in summer school, regional
15occupational centers and programs, and apprenticeship programs,
16and excluding average daily attendance in adult education
17programs. All other units of average daily attendance including,
18but not limited to, special day classes for special education pupils,
19shall be included.

begin delete

20(1) For purposes of this subdivision, the average daily attendance
21of summer school programs shall be determined pursuant to
22subparagraph (F) of paragraph (1) of subdivision (a) of Section
2314022.5 of the Education Code.

end delete
begin delete

24(2)

end delete

25begin insert(1)end insert For purposes of this subdivision, the average daily attendance
26of apprenticeship programs shall be determined pursuant to
27begin delete subparagraph (D) of paragraph (1) of subdivision (a) of Section
2814022.5end delete
begin insert Section 79149.1end insert of the Education Code.

begin delete

29(3) For the 2008-09, 2009-10, 2010-11, 2011-12, 2012-13,
302013-14, and 2014-15 fiscal years, the

end delete

31begin insert(2)end insertbegin insertend insertbegin insertFor the 2008-09 fiscal year and each fiscal year thereafter,
32the end insert
average daily attendance of public school districts, including
33county superintendents of schools, serving kindergarten and grades
341 to 12, inclusive, or any part thereof, shall include the same
35amount of average daily attendance for classes for supplemental
36instruction and regional occupational centers and programs that
37was used for purposes of this section for the 2007-08 fiscal year.

38(b) “Foundation program level” means:

39(1) For the 1978-79 fiscal year, one thousand two hundred
40forty-one dollars ($1,241) for elementary school districts, one
P379  1thousand three hundred twenty-two dollars ($1,322) for unified
2school districts, and one thousand four hundred twenty-seven
3dollars ($1,427) for high school districts.

4(2) For the 1979-80 fiscal year to the 1986-87 fiscal year,
5inclusive, the levels specified in paragraph (1) increased by the
6lesser of the change in cost of living or California per capita
7personal income for the preceding calendar year.

8(3) For the 1986-87 fiscal year, the levels specified in paragraph
9(2) increased by one hundred eighty dollars ($180) for elementary
10school districts, one hundred ninety-one dollars ($191) for unified
11school districts, and two hundred seven dollars ($207) for high
12school districts.

13(4) For the 1987-88 fiscal year, the levels specified in paragraph
14(3) increased by the lesser of the change in cost of living or
15California per capita personal income for the preceding calendar
16year.

17(5) For the 1988-89 fiscal year and each fiscal year thereafter,
18the foundation program level shall be the appropriations limit of
19the school district for the current fiscal year, plus amounts paid
20for any nonreimbursed court or federal mandates imposed on or
21after November 6, 1979, less the sum of the following:

22(A) Interest earned on the proceeds of taxes during the current
23fiscal year.

24(B) The 50 percent of miscellaneous funds received during the
25current fiscal year that are from the proceeds of taxes.

26(C) Locally voted taxes received during the current fiscal year,
27such as parcel taxes or square foot taxes, unless for voter-approved
28bonded debt.

29(D) Any other local proceeds of taxes received during the current
30fiscal year, other than local taxes which count towards the revenue
31limit, such as excess bond revenues transferred to a district’s
32general fund pursuant to Section 15234 of the Education Code.

33(c) “Proceeds of taxes” shall be deemed to include subventions
34received from the state only if those subventions are for one of the
35following two purposes:

36(1) Basic aid subventions of one hundred twenty dollars ($120)
37per ADA.

38(2) Additional apportionments that, when added to the district’s
39local revenues as defined in Section 42238 of the Education Code,
40do not exceed the foundation program level for that district. In no
P380  1case shall subventions received from the state for reimbursement
2of state mandates in accordance with the provisions of Section 6
3of Article XIII B of the California Constitution or of Section 17561
4or for reimbursement of court or federal mandates imposed on or
5after November 6, 1979, be considered “proceeds of taxes” for
6purposes of this section.

7(d) Proceeds of taxes for a fiscal year shall not include any
8proceeds of taxes within the district’s beginning balance or reserve,
9unless those funds were not appropriated in a prior fiscal year.
10Funds that were appropriated to a reserve or other fund referenced
11in Section 5 of Article XIII B of the California Constitution shall
12be deemed to be appropriated for the purpose of this paragraph.

13(e) The remainder of the state apportionments, including special
14purpose apportionments and categorical aid subventions shall not
15be considered proceeds of taxes for a school district.

16(f) Each school district shall report to the Superintendent of
17Public Instruction and to the Director of Finance at least annually
18its appropriations limit, its appropriations subject to limitation, the
19amount of its state aid apportionments and subventions included
20within the proceeds of taxes of the school district, and amounts
21excluded from its appropriations limit, at a time and in a manner
22prescribed by the Superintendent of Public Instruction and
23approved by the Director of Finance.

24(g) For the 1988-89 fiscal year and each fiscal year thereafter,
25nothing in paragraph (2) of subdivision (c) shall be so construed
26as to require that the amount determined pursuant to subdivision
27(b) be multiplied by the amount determined pursuant to subdivision
28(a) for purposes of determining the amount of state aid included
29in school district “proceeds of taxes” for purposes of this section.

30begin insert

begin insertSEC. 416.end insert  

end insert

begin insertSection 50286 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
31to read:end insert

32

50286.  

(a) If a contract is canceled under Section 50284, the
33owner shall pay a cancellation fee equal to 1212 percent of the
34current fair market value of the property , as determined by the
35county assessor as though the property were free of the contractual
36restriction.

37(b) The cancellation fee shall be paid to the county auditor, at
38the time and in the manner that the county auditor shall prescribe,
39and shall be allocated by the county auditor to each jurisdiction in
40the tax rate area in which the property is located in the same manner
P381  1as the auditor allocates the annual tax increment in that tax rate
2area in that fiscal year.

3(c) Notwithstanding any otherbegin delete provision ofend delete law, revenue received
4by a school district pursuant to this section shall be considered
5property tax revenue forbegin delete theend delete purposes of Sectionbegin delete 42238end deletebegin insert 42238.02
6of the Education Code, as implemented pursuant to Section
742238.03end insert
of the Education Code, and revenue received by a county
8superintendent of schools pursuant to this section shall be
9considered property tax revenue forbegin delete theend delete purposes of Articlebegin delete 3end deletebegin insert 4end insert
10 (commencing with Sectionbegin delete 2550)end deletebegin insert 2570)end insert of Chapter 12 of Part 2
11of Division 1 of Title 1 of the Education Code.

12begin insert

begin insertSEC. 417.end insert  

end insert

begin insertSection 33492.78 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
13amended to read:end insert

14

33492.78.  

(a) Section 33607.5 shall not apply to an agency
15created pursuant to this article. For purposes of Sectionsbegin delete 42238,
1684750,end delete
begin insert 42238.02, 84750.5,end insert and 84751 of the Education Code,
17funds allocated pursuant to this section shall be treated as if they
18were allocated pursuant to Section 33607.5.

19(1) This section shall apply to each redevelopment project area
20created pursuant to a redevelopment plan that contains the
21provisions required by Section 33670 and is created pursuant to
22this article. All the amounts calculated pursuant to this section
23shall be calculated after the amount required to be deposited in the
24Low and Moderate Income Housing Fund pursuant to Sections
2533334.2, 33334.3, and 33334.6, as modified by Section 33492.76,
26has been deducted from the total amount of tax-increment funds
27received by the agency in the applicable fiscal year.

28(2) The payments made pursuant to this section shall be in
29addition to any amounts the school district or districts and
30community college district or districts receive pursuant to
31subdivision (a) of Section 33670. The agency shall reduce its
32payments pursuant to this section to an affected school or
33community college district by any amount the agency has paid,
34directly or indirectly, pursuant to Section 33445, 33445.5, or 33446,
35or any provision of law other than this section for, or in connection
36with, a public facility owned or leased by that affected school or
37community college district.

38(3) (A) Of the total amount paid each year pursuant to this
39section to school districts, 43.9 percent shall be considered to be
40property taxes for the purposes of paragraph (1) of subdivisionbegin delete (h)end delete
P382  1begin insert (i)end insert of Sectionbegin delete 42238end deletebegin insert 42238.02end insert of the Education Code, and 56.1
2percent shall not be considered to be property taxes for the purposes
3of that section, and shall be available to be used for educational
4facilities.

5(B) Of the total amount paid each year pursuant to this section
6to community college districts, 47.5 percent shall be considered
7to be property taxes for the purposes of Sectionbegin delete 84750end deletebegin insert 84750.5end insert of
8the Education Code, and 52.5 percent shall not be considered to
9be property taxes for the purposes of that section, and shall be
10available to be used for educational facilities.

11(C) Of the total amount paid each year pursuant to this section
12to county offices of education, 19 percent shall be considered to
13be property taxes for the purposes of paragraph (1) of subdivision
14begin delete (h)end deletebegin insert (g)end insert of Sectionbegin delete 42238end deletebegin insert 2574end insert of the Education Code, and 81
15percent shall not be considered to be property taxes for the purposes
16of that section, and shall be available to be used for educational
17facilities.

18(D) Of the total amount paid each year pursuant to this section
19to special education, 19 percent shall be considered to be property
20taxes for the purposes of paragraph (1) of subdivisionbegin delete (h)end deletebegin insert (j)end insert of
21Sectionbegin delete 42238end deletebegin insert 42238.02end insert of the Education Code, and 81 percent
22shall not be considered to be property taxes for the purposes of
23that section, and shall be available to be used for educational
24facilities.

25(4) Local education agencies that use funds received pursuant
26to this section for educational facilities shall spend these funds at
27schools that are any one of the following:

28(A) Within the project area.

29(B) Attended by students from the project area.

30(C) Attended by students generated by projects that are assisted
31directly by the redevelopment agency.

32(D) Determined by a local education agency to be of benefit to
33the project area.

34(b) Commencing with the first fiscal year in which the agency
35receives tax increments, and continuing through the last fiscal year
36in which the agency receives tax increments, a redevelopment
37agency created pursuant to this article shall pay to each affected
38school and community college district an amount equal to the
39product of 25 percent times the percentage share of total property
40taxes collected that are allocated to each affected school or
P383  1community college district, including any amount allocated to each
2district pursuant to Sections 97.03 and 97.035 of the Revenue and
3Taxation Code times the total of the tax increments received by
4the agency after the amount required to be deposited in the Low
5and Moderate Income Housing Fund has been deducted.

6(c) Commencing with the 11th fiscal year in which the agency
7receives tax increments and continuing through the last fiscal year
8in which the agency receives tax increments, a redevelopment
9agency created pursuant to this article shall pay to each affected
10school and community college district, in addition to the amounts
11paid pursuant to subdivision (b), an amount equal to the product
12of 21 percent times the percentage share of total property taxes
13collected that are allocated to each affected school or community
14college district, including any amount allocated to each district
15pursuant to Sections 97.03 and 97.035 of the Revenue and Taxation
16Code times the total of the first adjusted tax increments received
17by the agency after the amount required to be deposited in the Low
18and Moderate Income Housing Fund has been deducted. The first
19adjusted tax increments received by the agency shall be calculated
20by applying the tax rate against the amount of assessed value by
21which the current year assessed value exceeds the first adjusted
22base year assessed value. The first adjusted base year assessed
23value is the assessed value of the project area in the 10th fiscal
24year in which the agency receives tax increment.

25(d) Commencing with the 31st fiscal year in which the agency
26receives tax increments and continuing through the last fiscal year
27in which the agency receives tax increments, a redevelopment
28agency shall pay to the affected school and community college
29districts, in addition to the amounts paid pursuant to subdivisions
30(b) and (c), an amount equal to 14 percent times the percentage
31share of total property taxes collected that are allocated to each
32affected school or community college district, including any
33amount allocated to each district pursuant to Sections 97.03 and
3497.035 of the Revenue and Taxation Code times the total of the
35second adjusted tax increments received by the agency after the
36amount required to be deposited in the Low and Moderate Income
37Housing Fund has been deducted. The second adjusted tax
38increments received by the agency shall be calculated by applying
39the tax rate against the amount of assessed value by which the
40current year assessed value exceeds the second adjusted base year
P384  1assessed value. The second adjusted base year assessed value is
2the assessed value of the project area in the 30th fiscal year in
3which the agency receives tax increments.

4(e) (1) The Legislature finds and declares both of the following:

5(A) The payments made pursuant to this section are necessary
6in order to alleviate the financial burden and detriment that affected
7school and community college districts may incur as a result of
8the adoption of a redevelopment plan, and payments made pursuant
9to this section will benefit redevelopment project areas.

10(B) The payments made pursuant to this section are the exclusive
11payments that are required to be made by a redevelopment agency
12to affected school and community college districts during the term
13of a redevelopment plan.

14(2) Notwithstanding any other provision of law, a redevelopment
15agency shall not be required, either directly or indirectly, as a
16measure to mitigate a significant environmental effect or as part
17of any settlement agreement or judgment brought in any action to
18contest the validity of a redevelopment plan pursuant to Section
1933501, to make any other payments to affected school or
20community college districts, or to pay for public facilities that will
21be owned or leased to an affected school or community college
22district.

23(f) As used in this section, a “local education agency” includes
24a school district, a community college district, or a county office
25of education.

26begin insert

begin insertSEC. 418.end insert  

end insert

begin insertSection 33607.5 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
27amended to read:end insert

28

33607.5.  

(a) (1) This section shall apply to each
29redevelopment project area that, pursuant to a redevelopment plan
30which contains the provisions required by Section 33670, is either:
31(A) adopted on or after January 1, 1994, including later
32amendments to these redevelopment plans; or (B) adopted prior
33to January 1, 1994, but amended, after January 1, 1994, to include
34new territory. For plans amended after January 1, 1994, only the
35tax increments from territory added by the amendment shall be
36subject to this section. All the amounts calculated pursuant to this
37section shall be calculated after the amount required to be deposited
38in the Low and Moderate Income Housing Fund pursuant to
39Sections 33334.2, 33334.3, and 33334.6 has been deducted from
P385  1the total amount of tax increment funds received by the agency in
2 the applicable fiscal year.

3(2) The payments made pursuant to this section shall be in
4addition to any amounts the affected taxing entities receive
5pursuant to subdivision (a) of Section 33670. The payments made
6pursuant to this section to the affected taxing entities, including
7the community, shall be allocated among the affected taxing
8entities, including the community if the community elects to receive
9payments, in proportion to the percentage share of property taxes
10each affected taxing entity, including the community, receives
11during the fiscal year the funds are allocated, which percentage
12share shall be determined without regard to any amounts allocated
13to a city, a city and county, or a county pursuant to Sections 97.68
14and 97.70 of the Revenue and Taxation Code, and without regard
15to any allocation reductions to a city, a city and county, a county,
16a special district, or a redevelopment agency pursuant to Sections
1797.71, 97.72, and 97.73 of the Revenue and Taxation Code and
18Section 33681.12. The agency shall reduce its payments pursuant
19to this section to an affected taxing entity by any amount the agency
20has paid, directly or indirectly, pursuant to Section 33445, 33445.5,
2133445.6, 33446, or any other provision of law other than this
22section for, or in connection with, a public facility owned or leased
23by that affected taxing agency, except: (A)  any amounts the
24agency has paid directly or indirectly pursuant to an agreement
25with a taxing entity adopted prior to January 1, 1994; or (B)  any
26amounts that are unrelated to the specific project area or
27amendment governed by this section. The reduction in a payment
28by an agency to a school district, community college district, or
29county office of education, or for special education, shall be
30subtracted only from the amount that otherwise would be available
31for use by those entities for educational facilities pursuant to
32paragraph (4). If the amount of the reduction exceeds the amount
33that otherwise would have been available for use for educational
34facilities in any one year, the agency shall reduce its payment in
35more than one year.

36(3) If an agency reduces its payment to a school district,
37community college district, or county office of education, or for
38special education, the agency shall do all of the following:

39(A) Determine the amount of the total payment that would have
40been made without the reduction.

P386  1(B) Determine the amount of the total payment without the
2reduction which: (i) would have been considered property taxes;
3and (ii) would have been available to be used for educational
4facilities pursuant to paragraph (4).

5(C) Reduce the amount available to be used for educational
6 facilities.

7(D) Send the payment to the school district, community college
8district, or county office of education, or for special education,
9with a statement that the payment is being reduced and including
10the calculation required by this subdivision showing the amount
11to be considered property taxes and the amount, if any, available
12for educational facilities.

13(4) (A) Except as specified in subparagraph (E), of the total
14amount paid each year pursuant to this section to school districts,
1543.3 percent shall be considered to be property taxes for the
16purposes of paragraph (1) of subdivision (h) of Section 42238 of
17the Education Code,begin insert as it read on January 1, 2013, and paragraph
18(1) of subdivision (i) of Section 42238.02 of the Education Code,end insert

19 and 56.7 percent shall not be considered to be property taxes for
20the purposes of that section and shall be available to be used for
21educational facilities, including, in the case of amounts paid during
22the 2011-12 fiscal year through the 2015-16 fiscal year, inclusive,
23land acquisition, facility construction, reconstruction, remodeling,
24maintenance, or deferred maintenance.

25(B) Except as specified in subparagraph (E), of the total amount
26paid each year pursuant to this section to community college
27districts, 47.5 percent shall be considered to be property taxes for
28the purposes of Section 84751 of the Education Code, and 52.5
29percent shall not be considered to be property taxes for the purposes
30of that section and shall be available to be used for educational
31facilities, including, in the case of amounts paid during the 2011-12
32fiscal year through the 2015-16 fiscal year, inclusive, land
33acquisition, facility construction, reconstruction, remodeling,
34 maintenance, or deferred maintenance.

35(C) Except as specified in subparagraph (E), of the total amount
36paid each year pursuant to this section to county offices of
37education, 19 percent shall be considered to be property taxes for
38the purposes of Section 2558 of the Education Code,begin insert as it read on
39January 1, 2013, and Section 2574 of the Education Code,end insert
and 81
40percent shall not be considered to be property taxes for the purposes
P387  1of that section and shall be available to be used for educational
2facilities, including, in the case of amounts paid during the 2011-12
3fiscal year through the 2015-16 fiscal year, inclusive, land
4acquisition, facility construction, reconstruction, remodeling,
5maintenance, or deferred maintenance.

6(D) Except as specified in subparagraph (E), of the total amount
7paid each year pursuant to this section for special education, 19
8percent shall be considered to be property taxes for the purposes
9of Section 56712 of the Education Code, and 81 percent shall not
10be considered to be property taxes for the purposes of that section
11and shall be available to be used for education facilities, including,
12in the case of amounts paid during the 2011-12 fiscal year through
13 the 2015-16 fiscal year, inclusive, land acquisition, facility
14construction, reconstruction, remodeling, maintenance, or deferred
15maintenance.

16(E) If, pursuant to paragraphs (2) and (3), an agency reduces its
17payments to an educational entity, the calculation made by the
18agency pursuant to paragraph (3) shall determine the amount
19considered to be property taxes and the amount available to be
20used for educational facilities in the year the reduction was made.

21(5) Local education agencies that use funds received pursuant
22to this section for school facilities shall spend these funds at schools
23that are: (A) within the project area, (B) attended by students from
24the project area, (C) attended by students generated by projects
25that are assisted directly by the redevelopment agency, or (D)
26determined by the governing board of a local education agency to
27be of benefit to the project area.

28(b) Commencing with the first fiscal year in which the agency
29receives tax increments and continuing through the last fiscal year
30in which the agency receives tax increments, a redevelopment
31agency shall pay to the affected taxing entities, including the
32community if the community elects to receive a payment, an
33amount equal to 25 percent of the tax increments received by the
34agency after the amount required to be deposited in the Low and
35Moderate Income Housing Fund has been deducted. In any fiscal
36year in which the agency receives tax increments, the community
37that has adopted the redevelopment project area may elect to
38receive the amount authorized by this paragraph.

39(c) Commencing with the 11th fiscal year in which the agency
40receives tax increments and continuing through the last fiscal year
P388  1in which the agency receives tax increments, a redevelopment
2agency shall pay to the affected taxing entities, other than the
3community which has adopted the project, in addition to the
4amounts paid pursuant to subdivision (b) and after deducting the
5amount allocated to the Low and Moderate Income Housing Fund,
6an amount equal to 21 percent of the portion of tax increments
7received by the agency, which shall be calculated by applying the
8tax rate against the amount of assessed value by which the current
9year assessed value exceeds the first adjusted base year assessed
10value. The first adjusted base year assessed value is the assessed
11value of the project area in the 10th fiscal year in which the agency
12receives tax increment revenues.

13(d) Commencing with the 31st fiscal year in which the agency
14receives tax increments and continuing through the last fiscal year
15in which the agency receives tax increments, a redevelopment
16agency shall pay to the affected taxing entities, other than the
17community which has adopted the project, in addition to the
18amounts paid pursuant to subdivisions (b) and (c) and after
19deducting the amount allocated to the Low and Moderate Income
20Housing Fund, an amount equal to 14 percent of the portion of tax
21increments received by the agency, which shall be calculated by
22applying the tax rate against the amount of assessed value by which
23the current year assessed value exceeds the second adjusted base
24year assessed value. The second adjusted base year assessed value
25is the assessed value of the project area in the 30th fiscal year in
26which the agency receives tax increments.

27(e) (1) Prior to incurring any loans, bonds, or other
28indebtedness, except loans or advances from the community, the
29agency may subordinate to the loans, bonds, or other indebtedness
30the amount required to be paid to an affected taxing entity by this
31section, provided that the affected taxing entity has approved these
32subordinations pursuant to this subdivision.

33(2) At the time the agency requests an affected taxing entity to
34subordinate the amount to be paid to it, the agency shall provide
35the affected taxing entity with substantial evidence that sufficient
36funds will be available to pay both the debt service and the
37payments required by this section, when due.

38(3) Within 45 days after receipt of the agency’s request, the
39affected taxing entity shall approve or disapprove the request for
40subordination. An affected taxing entity may disapprove a request
P389  1for subordination only if it finds, based upon substantial evidence,
2that the agency will not be able to pay the debt payments and the
3amount required to be paid to the affected taxing entity. If the
4affected taxing entity does not act within 45 days after receipt of
5the agency’s request, the request to subordinate shall be deemed
6approved and shall be final and conclusive.

7(f) (1) The Legislature finds and declares both of the following:

8(A) The payments made pursuant to this section are necessary
9in order to alleviate the financial burden and detriment that affected
10taxing entities may incur as a result of the adoption of a
11redevelopment plan, and payments made pursuant to this section
12will benefit redevelopment project areas.

13(B) The payments made pursuant to this section are the exclusive
14payments that are required to be made by a redevelopment agency
15to affected taxing entities during the term of a redevelopment plan.

16(2) Notwithstanding any other provision of law, a redevelopment
17agency shall not be required, either directly or indirectly, as a
18measure to mitigate a significant environmental effect or as part
19of any settlement agreement or judgment brought in any action to
20contest the validity of a redevelopment plan pursuant to Section
2133501, to make any other payments to affected taxing entities, or
22to pay for public facilities that will be owned or leased to an
23affected taxing entity.

24(g) As used in this section, a “local education agency” is a school
25district, a community college district, or a county office of
26education.

27begin insert

begin insertSEC. 419.end insert  

end insert

begin insertSection 33684 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
28amended to read:end insert

29

33684.  

(a) (1) This section shall apply to each redevelopment
30project area that, pursuant to a redevelopment plan that contains
31the provisions required by Section 33670, meets any of the
32following:

33(A) Was adopted on or after January 1, 1994, including later
34amendments to these redevelopment plans.

35(B) Was adopted prior to January 1, 1994, but amended after
36January 1, 1994, to include new territory. For plans amended after
37January 1, 1994, only the tax increments from territory added by
38the amendment shall be subject to this section.

39(C) Was adopted prior to January 1, 1994, but amended after
40January 1, 1994, to increase the limitation on the number of dollars
P390  1to be allocated to the agency or that increased, or eliminated,
2pursuant to paragraph (1) of subdivision (e) of Section 33333.6,
3the time limit on the establishing of loans, advances, and
4indebtedness established pursuant to paragraphs (1) and (2) of
5subdivision (a) of Section 33333.6, as those paragraphs read on
6December 31, 2001, or that lengthened the period during which
7the redevelopment plan is effective if the redevelopment plan being
8amended contains the provisions required by subdivision (b) of
9Section 33670.

10(2) This section shall apply to passthrough payments, as required
11by Sections 33607.5 and 33607.7, for the 2003-04 to 2008-09,
12inclusive, fiscal years. For purposes of this section, a passthrough
13payment shall be considered the responsibility of an agency in the
14fiscal year the agency receives the tax increment revenue for which
15the passthrough payment is required.

16(3) For purposes of this section, “local educational agency” is
17a school district, a community college district, or a county office
18of education.

19(b) On or before October 1, 2008, each agency shall submit a
20report to the county auditor and to each affected taxing entity that
21describes each project area, including its location, purpose, date
22established, date or dates amended, and statutory and contractual
23passthrough requirements. The report shall specify, by year, for
24each project area all of the following:

25(1) Gross tax increment received between July 1, 2003, and
26June 30, 2008, that is subject to a passthrough payment pursuant
27to Sections 33607.5 and 33607.7, and accumulated gross tax
28increments through June 30, 2003.

29(2) Total passthrough payments to each taxing entity that the
30agency deferred pursuant to a subordination agreement approved
31by the taxing agency under subdivision (e) of Section 33607.5 and
32the dates these deferred payments will be made.

33(3) Total passthrough payments to each taxing entity that the
34agency was responsible to make between July 1, 2003, and June
3530, 2008, pursuant to Sections 33607.5 and 33607.7, excluding
36payments identified in paragraph (2).

37(4) Total passthrough payments that the agency disbursed to
38each taxing entity between July 1, 2003, and June 30, 2008,
39pursuant to Sections 33607.5 and 33607.7.

P391  1(5) Total sums reported in paragraph (4) for each local
2educational agency that are considered to be property taxes under
3the provisions of paragraph (4) of subdivision (a) of Section
433607.5 and Section 33607.7.

5(6) Total outstanding payment obligations to each taxing entity
6as of June 30, 2008. This amount shall be calculated by subtracting
7the amounts reported in paragraph (4) from paragraph (3) and
8reporting any positive difference.

9(7) Total outstanding overpayments to each taxing entity as of
10June 30, 2008. This amount shall be calculated by subtracting the
11amounts reported in paragraph (3) from paragraph (4) and reporting
12any positive difference.

13(8) The dates on which the agency made payments identified
14in paragraph (6) or intends to make the payments identified in
15paragraph (6).

16(9) A revised estimate of the agency’s total outstanding
17passthrough payment obligation to each taxing agency pursuant
18to paragraph (6) of subdivision (b) and paragraph (6) of subdivision
19(c) and the dates on which the agency intends to make these
20payments.

21(c) On or before October 1, 2009, each agency shall submit a
22report to the county auditor and to each affected taxing entity that
23describes each project area, including its location, purpose, date
24established, date or dates amended, and statutory and contractual
25passthrough requirements. The report shall specify, by year, for
26each project area all of the following:

27(1) Gross tax increment received between July 1, 2008, and
28June 30, 2009, that is subject to a passthrough payment pursuant
29to Sections 33607.5 and 33607.7.

30(2) Total passthrough payments to each taxing entity that the
31agency deferred pursuant to a subordination agreement approved
32by the taxing entity under subdivision (e) of Section 33607.5 and
33the dates these deferred payments will be made.

34(3) Total passthrough payments to each taxing entity that the
35agency was responsible to make between July 1, 2008, and June
3630, 2009, pursuant to Sections 33607.5 and 33607.7, excluding
37payments identified in paragraph (2).

38(4) Total passthrough payments that the agency disbursed to
39each taxing entity between July 1, 2008, and June 30, 2009,
40pursuant to Sections 33607.5 and 33607.7.

P392  1(5) Total sums reported in paragraph (4) for each local
2educational agency that are considered to be property taxes under
3the provisions of paragraph (4) of subdivision (a) of Sections
433607.5 and 33607.7.

5(6) Total outstanding payment obligations to each taxing entity
6as of June 30, 2009. This amount shall be calculated by subtracting
7the amounts reported in paragraph (4) from paragraph (3) and
8reporting any positive difference.

9(7) Total outstanding overpayments to each taxing entity as of
10June 30, 2009. This amount shall be calculated by subtracting the
11amounts reported in paragraph (3) from paragraph (4) and reporting
12any positive difference.

13(8) The dates on which the agency made payments identified
14in paragraph (6) or intends to make the payments identified in
15paragraph (6).

16(d) If an agency reports pursuant to paragraph (6) of subdivision
17(b) or paragraph (6) of subdivision (c) that it has an outstanding
18passthrough payment obligation to any taxing entity, the agency
19shall submit annual updates to the county auditor on October 1 of
20each year until such time as the county auditor notifies the agency
21in writing that the agency’s outstanding payment obligations have
22been fully satisfied. The report shall contain both of the following:

23(1) A list of payments to each taxing agency and to the
24Educational Revenue Augmentation Fund pursuant to subdivision
25(j) that the agency disbursed after the agency’s last update filed
26pursuant to this subdivision or, if no update has been filed, after
27the agency’s submission of the reports required pursuant to
28subdivisions (b) and (c). The list of payments shall include only
29those payments that address obligations identified pursuant to
30paragraph (6) of subdivision (b) and paragraph (6) of subdivision
31(c). The update shall specify the date on which each payment was
32disbursed.

33(2) A revised estimate of the agency’s total outstanding
34passthrough payment obligation to each taxing agency pursuant
35to paragraph (6) of subdivision (b) and paragraph (6) of subdivision
36(c) and the dates on which the agency intends to make these
37payments.

38(e) The county auditor shall review each agency’s reports
39submitted pursuant to subdivisions (b) and (c) and any other
P393  1relevant information to determine whether the county auditor
2concurs with the information included in the reports.

3(1) If the county auditor concurs with the information included
4in a report, the county auditor shall issue a finding of concurrence
5within 45 days.

6(2) If the county auditor does not concur with the information
7included in a report or considers the report to be incomplete, the
8county auditor shall return the report to the agency within 45 days
9with information identifying the elements of the report with which
10the county auditor does not concur or considers to be incomplete.
11The county auditor shall provide the agency at least 15 days to
12respond to concerns raised by the county auditor regarding the
13information contained in the report. An agency may revise a report
14that has not received a finding of concurrence and resubmit it to
15the county auditor.

16(3) If an agency and county auditor do not agree regarding the
17passthrough requirements of Sections 33607.5 and 33607.7, an
18agency may submit a report pursuant to subdivisions (b) and (c)
19and a statement of dispute identifying the issue needing resolution.

20(4) An agency may amend a report for which the county auditor
21has issued a finding of concurrence and resubmit the report
22pursuant to paragraphs (1), (2), and (3) if any of the following
23apply:

24(A) The county auditor and agency agree that an issue identified
25in the agency’s statement of dispute has been resolved and the
26agency proposes to modify the sections of the report to conform
27with the resolution of the statement of dispute.

28(B) The county auditor and agency agree that the amount of
29gross tax increment or the amount of a passthrough payment to a
30taxing entity included in the report is not accurate.

31(5) The Controller may revoke a finding of concurrence and
32direct the agency to resubmit a report to the county auditor pursuant
33to paragraphs (1), (2), and (3) if the Controller finds significant
34errors in a report.

35(f) On or before December 15, 2008, and annually thereafter
36through 2014, the county auditor shall submit a report to the
37Controller that includes all of the following:

38(1) The name of each redevelopment project area in the county
39for which an agency must submit a report pursuant to subdivision
P394  1 (b) or (c) and information as to whether the county auditor has
2issued a finding of concurrence regarding the report.

3(2) A list of the agencies for which the county auditor has issued
4a finding of concurrence for all project areas identified in paragraph
5(1).

6(3) A list of agencies for which the county auditor has not issued
7a finding of concurrence for all project areas identified in paragraph
8(1).

9(4) Using information applicable to agencies listed in paragraph
10(2), the county auditor shall report all of the following:

11(A) The total sums reported by each redevelopment agency
12related to each taxing entity pursuant to paragraphs (1) to (7),
13inclusive, of subdivision (b) and, on or after December 15, 2009,
14pursuant to paragraphs (1) to (7), inclusive, of subdivision (c).

15(B) The names of agencies that have outstanding passthrough
16payment obligations to a local educational agency that exceed the
17amount of outstanding passthrough payments to the local
18educational agency.

19(C) Summary information regarding agencies’ stated plans to
20pay the outstanding amounts identified in paragraph (6) of
21subdivision (b) and paragraph (6) of subdivision (c) and the actual
22amounts that have been deposited into the county Educational
23Revenue Augmentation Fund pursuant to subdivision (j).

24(D) All unresolved statements of dispute filed by agencies
25pursuant to paragraph (3) of subdivision (e) and the county
26auditor’s analyses supporting the county auditor’s conclusions
27regarding the issues under dispute.

28(g) (1) On or before February 1, 2009, and annually thereafter
29through 2015, the Controller shall submit a report to the Legislative
30Analyst’s Office and the Department of Finance and provide a
31copy to the Board of Governors of the California Community
32Colleges. The report shall provide information as follows:

33(A) Identify agencies for which the county auditor has issued
34a finding of concurrence for all reports required under subdivisions
35(b) and (c).

36(B) Identify agencies for which the county auditor has not issued
37a finding of concurrence for all reports required pursuant to
38subdivision (b) and all reports required pursuant to subdivision (c)
39or for which a finding of concurrence has been withdrawn by the
40Controller.

P395  1(C) Summarize the information reported in paragraph (4) of
2subdivision (f). This summary shall identify, by local educational
3agency and by year, the total amount of passthrough payments that
4each local educational agency received, was entitled to receive,
5subordinated, or that has not yet been paid, and the portion of these
6amounts that are considered to be property taxes for purposes of
7Sections 2558begin delete,end deletebegin insert andend insert 42238begin insert of the Education Code, as those sections
8read on January 1, 2013end insert
, andbegin insert Sectionend insert 84751 of the Education
9Code. The report shall identify, by agency, the amounts that have
10been deposited to the county Educational Revenue Augmentation
11Fund pursuant to subdivision (j).

12(D) Summarize the statements of dispute. The Controller shall
13specify the status of these disputes, including whether the
14Controller or other state entity has provided instructions as to how
15these disputes should be resolved.

16(E) Identify agencies that have outstanding passthrough payment
17liabilities to a local educational agency that exceed the amount of
18outstanding passthrough overpayments to the local educational
19agency.

20(2) On or before February 1, 2009, and annually thereafter
21through 2015, the Controller shall submit a report to the State
22Department of Education and the Board of Governors of the
23California Community Colleges. The report shall identify, by local
24educational agency and by year of receipt, the total amount of
25passthrough payments that the local educational agency received
26from redevelopment agencies listed in subparagraph (A) of
27paragraph (1).

28(h) (1) On or before April 1, 2009, and annually thereafter until
29April 1, 2015, the State Department of Education shall do all of
30the following:

31(A) Calculate for each school district for the 2003-04 to
322007-08, inclusive, fiscal years the difference between 43.3 percent
33of the amount reported pursuant to paragraph (2) of subdivision
34(g) and the amount subtracted from each school district’s
35apportionment pursuant to paragraph (6) of subdivision (h) of
36Section 42238 of the Education Codebegin insert, as it read on January 1,
372013end insert
.

38(B) Calculate for each county superintendent of schools for the
392003-04 to 2007-08, inclusive, fiscal years the difference between
4019 percent of the amount reported pursuant to paragraph (2) of
P396  1subdivision (g) and the amount received pursuant to Sections
233607.5 and 33607.7 and subtracted from each county
3superintendent of schools apportionment pursuant to subdivision
4(c) of Section 2558 of the Education Codebegin insert, as it read on January
51, 2013end insert
.

6(C) Notify each school district and county superintendent of
7schools for which any amount calculated in subparagraph (A) or
8(B) is nonzero as to the reported change and its resulting impact
9on apportionments. After April 1, 2009, however, the department
10shall not notify a school district or county superintendent of schools
11if the amount calculated in subparagraph (A) or (B) is the same
12amount as the department calculated in the preceding year.

13(2) On or before April 1, 2010, and annually thereafter until
14April 1, 2015, the State Department of Education shall do all of
15the following:

16(A) Calculate for each school district for the 2008-09 fiscal
17year the difference between 43.3 percent of the amount reported
18pursuant to paragraph (2) of subdivision (g) and the amount
19subtracted from each school district’s apportionment pursuant to
20paragraph (6) of subdivision (h) of Section 42238 of the Education
21Codebegin insert, as it read on January 1, 2013end insert.

22(B) Calculate for each county superintendent of schools for the
23 2008-09 fiscal year the difference between 19 percent of the
24amount reported pursuant to paragraph (2) of subdivision (g) and
25the amount received pursuant to Sections 33607.5 and 33607.7
26and subtracted from each county superintendent of schools
27apportionment pursuant to subdivision (c) of Section 2558 of the
28Education Codebegin insert, as it read on January 1, 2013end insert.

29(C) Notify each school district and county superintendent of
30schools for which any amount calculated in subparagraph (A) or
31(B) is nonzero as to the reported change and its resulting impact
32on revenue limit apportionments. After April 1, 2010, however,
33the department shall not notify a school district or county
34superintendent of schools if the amount calculated in subparagraph
35(A) or (B) is the same amount as the department calculated in the
36preceding year.

37(3) For the purposes of Article 3 (commencing with Section
3841330) of Chapter 3 of Part 24 of Division 3 of Title 2 of the
39Education Code, the amounts reported to each school district and
40county superintendent of schools in the notification required
P397  1pursuant to subparagraph (C) of paragraph (1) and subparagraph
2(C) of paragraph (2) shall be deemed to be apportionment
3significant audit exceptions and the date of receipt of that
4notification shall be deemed to be the date of receipt of the final
5audit report that includes those audit exceptions.

6(4) On or before March 1, 2009, and annually thereafter until
7March 1, 2015, the Board of Governors of the California
8Community Colleges shall do all of the following:

9(A) Calculate for each community college district for the
102003-04 to 2007-08, inclusive, fiscal years the difference between
1147.5 percent of the amount reported pursuant to paragraph (2) of
12subdivision (g) and the amount subtracted from each district’s total
13revenue owed pursuant to subdivision (d) of Section 84751 of the
14Education Code.

15(B) Notify each community college district for which any
16amount calculated in subparagraph (A) is nonzero as to the reported
17change and its resulting impact on apportionments. After March
181, 2009, however, the board shall not notify a school district or
19county superintendent of schools if the amount calculated in
20subparagraph (A) is the same amount as the board calculated in
21the preceding year.

22(5) On or before March 1, 2010, and annually thereafter until
23March 1, 2015, the Board of Governors of the California
24Community Colleges shall do all of the following:

25(A) Calculate for each community college district for the
262003-04 to 2007-08, inclusive, fiscal years the difference between
2747.5 percent of the amount reported pursuant to paragraph (2) of
28subdivision (g) and the amount subtracted from each district’s total
29revenue owed pursuant to subdivision (d) of Section 84751 of the
30Education Code.

31(B) Notify each community college district for which any
32amount calculated in subparagraph (A) is nonzero as to the reported
33change and its resulting impact on revenue apportionments. After
34March 1, 2010, however, the board shall not notify a community
35college district if the amount calculated in subparagraph (A) is the
36same amount as the board calculated in the preceding year.

37(6) A community college district may submit documentation to
38the Board of Governors of the California Community Colleges
39showing that all or part of the amount reported to the district
40pursuant to subparagraph (B) of paragraph (4) and subparagraph
P398  1(B) of paragraph (5) was previously reported to the California
2Community Colleges for the purpose of the revenue level
3calculations made pursuant to Section 84751 of the Education
4Code. Upon acceptance of the documentation, the board shall
5adjust the amounts calculated in paragraphs (4) and (5) accordingly.

6(7) The Board of Governors of the California Community
7Colleges shall make corrections in any amounts allocated in any
8fiscal year to each community college district for which any amount
9calculated in paragraphs (4) and (5) is nonzero so as to account
10for the changes reported pursuant to paragraph (4) of subdivision
11(b) and paragraph (4) of subdivision (c). The board may make the
12corrections over a period of time, not to exceed five years.

13(i) (1) After February 1, 2009, for an agency listed on the most
14 recent Controller’s report pursuant to subparagraph (B) or (E) of
15paragraph (1) of subdivision (g), all of the following shall apply:

16(A) The agency shall be prohibited from adding new project
17areas or expanding existing project areas. For purposes of this
18paragraph, “project area” has the same meaning as in Sections
1933320.1 to 33320.3, inclusive, and Section 33492.3.

20(B) The agency shall be prohibited from issuing new bonds,
21notes, interim certificates, debentures, or other obligations, whether
22funded, refunded, assumed, or otherwise, pursuant to Article 5
23(commencing with Section 33640).

24(C) The agency shall be prohibited from encumbering any funds
25or expending any moneys derived from any source, except that
26the agency may encumber funds and expend funds to pay, if any,
27all of the following:

28(i) Bonds, notes, interim certificates, debentures, or other
29obligations issued by an agency before the imposition of the
30prohibition in subparagraph (B) whether funded, refunded,
31assumed, or otherwise, pursuant to Article 5 (commencing with
32Section 33460).

33(ii) Loans or moneys advanced to the agency, including, but not
34limited to, loans from federal, state, local agencies, or a private
35entity.

36(iii) Contractual obligations that, if breached, could subject the
37agency to damages or other liabilities or remedies.

38(iv) Obligations incurred pursuant to Section 33445.

39(v) Indebtedness incurred pursuant to Section 33334.2 or
4033334.6.

P399  1(vi) Obligations incurred pursuant to Section 33401.

2(vii) An amount, to be expended for the monthly operation and
3administration of the agency, that may not exceed 75 percent of
4the average monthly amount spent for those purposes in the fiscal
5year preceding the fiscal year in which the agency was first listed
6on the Controller’s report pursuant to subparagraph (B) or (E) of
7paragraph (1) of subdivision (g).

8(2) After February 1, 2009, an agency identified in subparagraph
9(B) or (E) of paragraph (1) of subdivision (g) shall incur interest
10charges on any passthrough payment that is made to a local
11educational agency more than 60 days after the close of the fiscal
12year in which the passthrough payment was required. Interest shall
13be charged at a rate equal to 150 percent of the current Pooled
14Money Investment Account earnings annual yield rate and shall
15be charged for the period beginning 60 days after the close of the
16fiscal year in which the passthrough payment was due through the
17date that the payment is made.

18(3) The Controller, with the concurrence of the Director of
19Finance, may waive the provisions of paragraphs (1) and (2) for
20a period of up to 12 months if the Controller determines all of the
21following:

22(A) The county auditor has identified the agency in its most
23recent report issued pursuant to paragraph (2) of subdivision (f)
24as an agency for which the auditor has issued a finding of
25concurrence for all reports required pursuant to subdivisions (b)
26and (c).

27(B) The agency has filed a statement of dispute on an issue or
28issues that, in the opinion of the Controller, are likely to be resolved
29in a manner consistent with the agency’s position.

30(C) The agency has made passthrough payments to local
31educational agencies and the county Educational Revenue
32Augmentation Fund, or has had funds previously withheld by the
33auditor, in amounts that would satisfy the agency’s passthrough
34payment requirements to local educational agencies if the issue or
35issues addressed in the statement of dispute were resolved in a
36manner consistent with the agency’s position.

37(D) The agency would sustain a fiscal hardship if it made
38passthrough payments to local educational agencies and the county
39Educational Revenue Augmentation Fund in the amounts estimated
40by the county auditor.

P400  1(j) Notwithstanding any other provision of law, if an agency
2report submitted pursuant to subdivision (b) or (c) indicates
3outstanding payment obligations to a local educational agency,
4the agency shall make these outstanding payments as follows:

5(1) Of the outstanding payments owed to school districts,
6including any interest payments pursuant to paragraph (2) of
7subdivision (i), 43.3 percent shall be deposited in the county
8Educational Revenue Augmentation Fund and the remainder shall
9be allocated to the school district or districts.

10(2) Of the outstanding payments owed to community college
11districts, including any interest payments pursuant to paragraph
12(2) of subdivision (i), 47.5 percent shall be deposited in the county
13Educational Revenue Augmentation Fund and the remainder shall
14be allocated to the community college district or districts.

15(3) Of the outstanding payments owed to county offices of
16education, including any interest payments pursuant to paragraph
17(2) of subdivision (i), 19 percent shall be deposited in the county
18Educational Revenue Augmentation Fund and the remainder shall
19be allocated to the county office of education.

20(k) (1) This section shall not be construed to increase any
21allocations of excess, additional, or remaining funds that would
22otherwise have been allocated to cities, counties, cities and
23counties, or special districts pursuant to clause (i) of subparagraph
24(B) of paragraph (4) of subdivision (d) of Section 97.2 of, clause
25(i) of subparagraph (B) of paragraph (4) of subdivision (d) of
26Section 97.3 of, or Article 4 (commencing with Section 98) of
27Chapter 6 of Part 0.5 of Division 1 of, the Revenue and Taxation
28Code had this section not been enacted.

29(2) Notwithstanding any other provision of law, no funds
30deposited in the county Educational Revenue Augmentation Fund
31pursuant to subdivision (j) shall be distributed to a community
32college district.

33(l) A county may require an agency to reimburse the county for
34any expenses incurred by the county in performing the services
35required by this section.

36begin insert

begin insertSEC. 420.end insert  

end insert

begin insertSection 95 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
37amended to read:end insert

38

95.  

Forbegin delete the purposeend deletebegin insert purposesend insert of this chapter:

39(a) “Local agency” means a city, county, and special district.

P401  1(b) “Jurisdiction” means a local agency, school district,
2community college district, or county superintendent of schools.
3A jurisdiction as defined in this subdivision is a “district” for
4purposes of Section 1 of Article XIII A of the California
5Constitution.

6For jurisdictions located in more than one county, the county
7 auditor of each county in which that jurisdiction is located shall,
8for the purposes of computing the amount for that jurisdiction
9pursuant to this chapter, treat the portion of the jurisdiction located
10within that county as a separate jurisdiction.

11(c) “Property tax revenue” includes the amount of state
12reimbursement for the homeowners’ exemption. “Property tax
13revenue” does not include the amount of property tax levied for
14the purpose of making payments for the interest and principal on
15either of the following:

16(1) General obligation bonds or other indebtedness approved
17by the voters prior to July 1, 1978, including tax rates levied
18pursuant to Part 10 (commencing with Section 15000) of Division
191 of, and Sections 39308 and 39311 and former Sections 81338
20and 81341 of the Education Code, and Section 26912.7 of the
21Government Code.

22(2) Bonded indebtedness for the acquisition or improvement of
23real property approved by two-thirds of the voters on or after June
244, 1986.

25(d) “Taxable assessed value” means total assessed value minus
26all exemptions other than the homeowners’ and business inventory
27exemptions.

28(e) “Jurisdictional change” includes any change of organization,
29as defined in Section 56021 of the Government Code and a
30reorganization, as defined in Section 56073 of the Government
31Code. “Jurisdictional change” also includes any change in the
32boundary of those special districts that are not under the jurisdiction
33of a local agency formation commission.

34“Jurisdictional change” also includes a functional consolidation
35where two or more local agencies, except two or more counties,
36exchange or otherwise reassign functions and any change in the
37boundaries of a school district or community college district or
38county superintendent of schools.

P402  1(f) “School entities” means school districts, community college
2districts, the Educational Revenue Augmentation Fund, and county
3superintendents of schools.

4(g) Except as otherwise provided in this subdivision, “tax rate
5area” means a specific geographic area all of which is within the
6jurisdiction of the same combination of local agencies and school
7entities for the current fiscal year.

8In the case of a jurisdictional change pursuant to Section 99, the
9area subject to the change shall constitute a new tax rate area,
10except that if the area subject to change is within the same
11combinations of local agencies and school entities as an existing
12tax rate area, the two tax rate areas may be combined into one tax
13rate area.

14Existing tax rate areas having the same combinations of local
15agencies and school entities may be combined into one tax rate
16area. For the combination of existing tax rate areas, the factors
17used to allocate the annual tax increment pursuant to Section 98
18shall be determined by calculating a weighted average of the annual
19tax increment factors used in the tax rate areas being combined.

20(h) “State assistance payments” means:

21(1) For counties, amounts determined pursuant to subdivision
22(b) of Section 16260 of the Government Code, increased by the
23amount specified for each county pursuant to Section 94 of Chapter
24282 of the Statutes of 1979, with the resultant sum reduced by an
25amount derived by the calculation made pursuant to Section 16713
26of the Welfare and Institutions Code.

27(2) For cities, 82.91 percent of the amounts determined pursuant
28to subdivisions (b) and (i) of Section 16250 of the Government
29Code, plus for any city an additional amount equal to one-half of
30the amount of any outstanding debt as of June 30, 1978, for
31“museums” as shown in the Controller’s “Annual Report of
32Financial Transactions of Cities for Fiscal Year 1977-78.”

33(3) For special districts, 95.24 percent of the amounts received
34pursuant to Chapter 3 (commencing with Section 16270) of Part
351.5 of Division 4 of Title 2 of the Government Code, Section 35.5
36of Chapter 332 of the Statutes of 1978, and Chapter 12 of the
37Statutes of 1979.

38(i) “City clerk” means the clerk of the governing body of a city
39or city and county.

P403  1(j) “Executive officer” means the executive officer of a local
2agency formation commission.

3(k) “City” means any city whether general law or charter, except
4a city and county.

5(l) “County” means any chartered or general law county.
6“County” includes a city and county.

7(m) “Special district” means any agency of the state for the local
8performance of governmental or proprietary functions within
9limited boundaries. “Special district” includes a county service
10area, a maintenance district or area, an improvement district or
11improvement zone, or any other zone or area, formed for the
12purpose of designating an area within which a property tax rate
13will be levied to pay for a service or improvement benefiting that
14area. “Special district” includes the Bay Area Air Quality
15Management District. “Special district” does not include a city, a
16county, a school district, or a community college district. “Special
17district” does not include any agency that is not authorized by
18statute to levy a property tax rate. However, any special district
19authorized to levy a property tax by the statute under which the
20district was formed shall be considered a special district.
21Additionally, a county free library established pursuant to Article
221 (commencing with Section 19100) of Chapter 6 of Part 11 of
23Division 1 of Title 1 of the Education Code, and for which a
24property tax was levied in the 1977-78 fiscal year, shall be
25considered a special district.

26(n) “Excess tax school entity” means an educational agency for
27which the amount of the state funding entitlement determined
28under Section begin delete 2558, 42238, 84750,end delete begin insert 2575, 84750.5,end insert or 84751 of
29the Education Code, as appropriate, is zerobegin insert, and as described inend insert
30begin insert subdivision (o) of Section 42238.02 of the Education Code, as
31implemented by Section 42238.03 of the Education Codeend insert
.

32begin insert

begin insertSEC. 421.end insert  

end insert

begin insertSection 196.4 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
33amended to read:end insert

34

196.4.  

(a) In the 1991-92 fiscal year, the county auditor of an
35eligible county, proclaimed by the Governor to be in a state of
36disaster as a result of the Oakland/Berkeley Fire that occurred in
37October 1991, shall certify to the Director of Finance an estimate
38of the total amount of the reduction in property tax revenues on
39both the regular secured roll and the supplemental roll for that
40fiscal year resulting from the reassessment of eligible properties
P404  1by the county assessor pursuant to Section 170, except that the
2amount certified shall not include any estimated property tax
3revenue reductions to school districts (other than basic state aid
4school districts), county offices of education, and community
5college districts.

6(b) In the 1991-92 fiscal year, the county auditor of an eligible
7county, proclaimed by the Governor to be in a state of disaster as
8a result of the Painted Cave Fire that occurred in June 1990, shall
9certify to the Director of Finance an estimate of the total amount
10of the reduction in property tax revenues on both the regular
11secured roll and the supplemental roll for the 1990-91 fiscal year
12resulting from the reassessment of eligible properties by the county
13assessor pursuant to Section 170, except that the amount certified
14shall not include any estimated property tax revenue reductions to
15school districts (other than basic aid school districts), county offices
16of education, and community college districts.

17(c) For purposes of this section, “basic state aid school district”
18means any school district that does not receive a state
19apportionment pursuant to subdivision (h) of Section 42238 of the
20Education Code,begin insert as it read on January 1, 2013,end insert but receives from
21the state only a basic apportionment pursuant to Section 6 of Article
22IX of the California Constitution.

23begin insert

begin insertSEC. 422.end insert  

end insert

begin insertSection 903.7 of the end insertbegin insertWelfare and Institutions Codeend insert
24begin insert is amended to read:end insert

25

903.7.  

(a) There is in the State Treasury the Foster Children
26and Parent Training Fund. The moneys contained in the fund shall
27be used exclusively for the purposes set forth in this section.

28(b) For each fiscal year beginning with the 1981-82 fiscal year,
29except as provided in Sections 15200.1, 15200.2, 15200.3, 15200.8,
30and 15200.81, and Section 17704 of the Family Code, the
31Department of Child Support Services shall determine the amount
32equivalent to the net state share of foster care collections
33attributable to the enforcement of parental fiscal liability pursuant
34to Sections 903, 903.4, and 903.5. On July 1, 1982, and every three
35months thereafter, the department shall notify the Chancellor of
36the Community Colleges, the Department of Finance, and the
37Superintendent of Public Instruction of the above-specified amount.
38The Department of Child Support Services shall authorize the
39quarterly transfer of any portion of this amount for any particular
40fiscal year exceeding three million seven hundred fifty thousand
P405  1dollars ($3,750,000) of the net state share of foster care collections
2to the Treasurer for deposit in the Foster Children and Parent
3Training Fund, except that, commencing with the 2002-03 fiscal
4year, a total of not more than three million dollars ($3,000,000)
5may be transferred to the fund in any fiscal year.

6(c) (1) If sufficient moneys are available in the Foster Children
7and Parent Training Fund, up to three million dollars ($3,000,000)
8shall be allocated for the support of foster parent training programs
9conducted in community colleges. The maximum amount
10authorized to be allocated pursuant to this subdivision shall be
11adjusted annually by a cost-of-living increase each year based on
12the percentage given to discretionary education programs. Funds
13for the training program shall be provided in a separate budget
14item in that portion of the Budget Act pertaining to the Chancellor
15of the California Community Colleges, to be deposited in a separate
16bank account by the Chancellor of the California Community
17Colleges.

18(2) The chancellor shall use these funds exclusively for foster
19parent training, as specified by the chancellor in consultation with
20the California State Foster Parents Association and the State
21Department of Social Services.

22(3) The plans for each foster parent training program shall
23include the provision of training to facilitate the development of
24foster family homes and small family homes to care for no more
25than six children who have special mental, emotional,
26developmental, or physical needs.

27(4) The State Department of Social Services shall facilitate the
28participation of county welfare departments in the foster parent
29training program. The California State Foster Parents Association,
30or the local chapters thereof, and the State Department of Social
31Services shall identify training participants and shall advise the
32chancellor on the form, content, and methodology of the training
33program. Funds shall be paid monthly to the foster parent training
34program until the maximum amount of funds authorized to be
35expended for that program is expended. No more than 10 percent
36or seventy-five thousand dollars ($75,000) of these moneys,
37whichever is greater, shall be used for administrative purposes; of
38the 10 percent or seventy-five thousand dollars ($75,000), no more
39than ten thousand dollars ($10,000) shall be expended to reimburse
P406  1the State Department of Social Services for its services pursuant
2to this paragraph.

begin delete

3(d) Beginning with the 1983-84 fiscal year, and each fiscal year
4thereafter, after all allocations for foster parent training in
5community colleges have been made, any moneys remaining in
6the Foster Children and Parent Training Fund may be allocated
7for foster children services programs pursuant to Chapter 11.3
8(commencing with Section 42920) of Part 24 of the Education
9Code.

end delete
begin delete

10(e)

end delete

11begin insert(d)end insert (1) The Controller shall transfer moneys from the Foster
12Children and Parent Training Fund to the Chancellor of the
13California Community Colleges and the Superintendent of Public
14Instruction as necessary to fulfill the requirements ofbegin delete subdivisionsend delete
15begin insert subdivisionend insert (c)begin delete and (d)end delete.

16(2) After the maximum amount authorized in any fiscal year
17has been transferred to the Chancellor of the California Community
18Colleges and the Superintendent of Public Instruction, the
19Controller shall transfer any remaining funds to the General Fund
20for expenditure for any public purpose.

begin delete

21(f)

end delete

22begin insert(e)end insert This section shall be operative until June 30, 2005, and
23thereafter is operative only if specified in the annual Budget Act
24or in another statute.

25begin insert

begin insertSEC. 423.end insert  

end insert
begin insert

(a) The sum of one billion six hundred thirty million
26two hundred twenty-two thousand dollars ($1,630,222,000) is
27hereby appropriated from the General Fund to the Superintendent
28of Public Instruction.

end insert
begin insert

29(b) (1) Of the amount appropriated in subdivision (a), one
30billion six hundred two million two hundred one thousand dollars
31($1,602,201,000) shall be allocated pursuant to the calculation in
32subdivision (b) of Section 42238.03 of the Education Code.

end insert
begin insert

33(2) Of the amount appropriated in subdivision (a), twenty-eight
34million twenty-one thousand dollars ($28,021,000) shall be
35allocated pursuant to the calculation in subdivision (d) of Section
362575.

end insert
begin insert

37(c) For purposes of making the computations required by Section
388 of Article XVI of the California Constitution, the appropriations
39made by subdivision (a) shall be deemed to be “General Fund
40revenues appropriated for school districts,” as defined in
P407  1subdivision (c) of Section 41202 of the Education Code, for the
22013-14 fiscal year, and included within the “total allocations to
3school districts and community college districts from General
4Fund proceeds of taxes appropriated pursuant to Article XIII B,”
5as defined in subdivision (e) of Section 41202, for the 2013-14
6fiscal year.

end insert
7begin insert

begin insertSEC. 424.end insert  

end insert
begin insert

If the Commission on State Mandates determines
8that this act contains costs mandated by the state, reimbursement
9to local agencies and school districts for those costs shall be made
10pursuant to Part 7 (commencing with Section 17500) of Division
114 of Title 2 of the Government Code.

end insert
begin delete
12

SECTION 1.  

It is the intent of the Legislature to enact statutory
13changes relating to the Budget Act of 2013.

end delete


O

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