BILL NUMBER: AB 88	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 3, 2013

INTRODUCED BY    Committee on Budget   (
  Blumenfield (Chair), Bloom, Bonilla, Chesbro,
Daly, Dickinson, Gordon, Jones-Sawyer, Mitchell, Mullin, Muratsuchi,
Nazarian, Rendon, Stone, and Ting   )  
Assembly Member   Buchanan 

                        JANUARY 10, 2013

    An act relating to the Budget Act of 2013.  
An 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, 608 
 51, 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 1
  830), 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
(comme   ncing 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 Gove   rnment 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,


	LEGISLATIVE COUNSEL'S DIGEST


   AB 88, as amended,  Committee on Budget 
 Buchanan  .  Budget Act of 2013.  
School finance: new pupil funding formula.  
   (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.  
   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. 

   This bill would also change the funding calculations for necessary
small schools and make other changes related to shifting financial
responsibilities.  
   (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.  
   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.  
   (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.  
   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.
 
   (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.  
   (5) This bill would make conforming changes, correct
cross-references, and make other nonsubstantive changes.  
   (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.  
   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.  
   (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.  
   This bill would express the intent of the Legislature to enact
statutory changes relating to the Budget Act of 2013. 
   Vote: majority. Appropriation:  no   yes
 . Fiscal committee:  no   yes  .
State-mandated local program:  no   yes  .


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

   SECTION 1.    Section 315.5 of the  
Education Code   is repealed.  
   315.5.  (a) In furtherance of its constitutional and legal
requirement to offer special language assistance to children coming
from backgrounds of limited English proficiency, the state shall
encourage family members and others to provide personal English
language tutoring to those children, and support these efforts by
raising the general level of English language knowledge in the
community.
   (b) Programs funded under this section shall be provided through
schools or community organizations.
   (c) Funding for programs authorized under this section shall be
provided pursuant to an appropriation in the annual Budget Act. Funds
shall be apportioned to the Superintendent for disbursement to
school districts for the purpose of providing funding under this
section for free or subsidized programs of adult English language
instruction to parents or other members of the community who pledge
to provide personal English language tutoring to improve the English
language proficiency of California school children with limited
English proficiency. 
   SEC. 2.    Section 316.5 of the   Education
Code   is repealed.  
   316.5.  (a) The Legislature finds and declares all of the
following:
   (1) The more a parent or guardian is involved in the education of
his or her child the better the child will perform in school.
   (2) English language proficiency is critical to academic success.
   (b) As a condition for receiving funding under Section 315.5 for
the 2007-08 fiscal year, each school district shall develop a plan,
to be approved by the governing board of the school district,
certifying that it will do all of the following:
   (1) Emphasize English language acquisition and tutoring skills for
parents whose primary language is not English.
   (2) Whenever possible, operate Community-Based English Tutoring
(CBET) Programs at neighborhood schoolsites in order to provide full
articulation between CBET Programs and instructional programs for
school-aged English language learners.
   (3) Describe in its plan how the program will encourage the
following:
   (A) Opportunities for parent-child tutoring activities.
   (B) Opportunities for the parent to become involved at the school
that his or her child attends.
   (4) Describe how the program will document the following:
   (A) Literacy training for adults that leads to English fluency and
the ability to provide educational support for children.
   (B) Development of tutoring skills.
   (5) Describe the projected goals of the program with respect to
participant educational achievement and the manner in which the
agency will measure and report progress in meeting its goals.
   (6) Describe the manner in which the program will leverage
available funding from federal, state, and local sources in the area
proposed to be served by the agency.
   (7) Include a program to recruit parents of K-12 English language
learners, especially parents of pupils enrolled in K-12 schools that
are eligible to participate in the High Priority Schools Grant
Program established under Article 3.5 (commencing with Section
52055.600) of Chapter 6.1 of Part 28.
   (8) The plan shall demonstrate that the CBET Program meets the
following objectives in order to ensure that adult students in the
CBET Program provide the best possible tutoring to K-12 English
language learners:
   (A) The adult students participating in the CBET Program shall
make measurable English language learning progress.
   (B) The CBET Program shall be administered in accordance with
research-based strategies for teaching English language learners.
   (C) The data collected under Section 317 shall be used by CBET
administrators and staff to inform curriculum, instruction,
assessment, research, and in-service staff development.
   (c) As a condition for receiving funding under Section 315.5 for
the 2008-09 fiscal year and for each fiscal year thereafter, the
governing board of the school district shall review, revise as
necessary, and approve the plan. The plan shall be reviewed, and
revised as necessary, not less than once every three years. During
its review, the governing board shall consider the data collected
under Section 317.
   (d) For the purposes of this section, the term "parent" includes a
parent, legal guardian, primary caregiver, or an individual in loco
parentis. 
   SEC. 3.    Section 317 of the   Education
Code   is repealed.  
   317.  (a) As a condition for receiving funds under Section 315.5
in any fiscal year, a school district shall collect the following
data for use in updating its plans and to make available to the state
as requested:
   (1) Improvement in adult English-as-a-second-language literacy
skill levels in reading, writing, and speaking the English language,
numeracy, problemsolving, and other literacy skills.
   (2) Improvements in the attendance of pupils with
limited-English-language proficiency who have received tutoring from
adults who have been identified as participants in programs
established pursuant to Sections 315, 315.5, 316, and 316.5.
   (b) A school district that receives funding under Section 315.5
shall provide a pretest and a posttest of reading achievement for
adult English-as-a-second-language pupils.
   (c) The district shall review individual K-12 pupil data from the
English language development test administered under Section 60810
and the Standardized Testing and Reporting (STAR) Program set forth
in Article 4 (commencing with Section 60640) of Chapter 5 of Part 33,
in order to determine whether there has been achievement progress
made by K-12 pupils who were tutored by Community-Based English
Tutoring (CBET) Program students. 
   SEC. 4.    Section 1240 of the   Education
Code   is amended to read: 
   1240.  The county superintendent of schools shall do all of the
following:
   (a) Superintend the schools of his or her county.
   (b) Maintain responsibility for the fiscal oversight of each
school district in his or her county pursuant to the authority
granted by this code.
   (c) (1) Visit and examine each school in his or her county at
reasonable intervals to observe its operation and to learn of its
problems. He or she annually may present a report of the state of the
schools in his or her county, and of his or her office, including,
but not limited to, his or her observations while visiting the
schools, to the board of education and the board of supervisors of
his or her county.
   (2) (A) For fiscal years 2004-05 to 2006-07, inclusive, to the
extent that funds are appropriated for purposes of this paragraph,
the county superintendent, or his or her designee, annually shall
submit a report, at a regularly scheduled November board meeting, to
the governing board of each school district under his or her
jurisdiction, the county board of education of his or her county, and
the board of supervisors of his or her county describing the state
of the schools in the county or of his or her office that are ranked
in deciles 1 to 3, inclusive, of the 2003 base Academic Performance
Index (API), as  defined   described  in
subdivision (b) of Section 17592.70, and shall include, among other
things, his or her observations while visiting the schools and his or
her determinations for each school regarding the status of all of
the circumstances listed in subparagraph  (J)  
(I)  and teacher misassignments and teacher vacancies. As a
condition for receipt of funds, the county superintendent, or his or
her designee, shall use a standardized template to report the
circumstances listed in subparagraph  (J)   (I)
 and teacher misassignments and teacher vacancies, unless the
current annual report being used by the county superintendent, or his
or her designee, already includes those details for each school.
   (B) Commencing with the 2007-08 fiscal year, to the extent that
funds are appropriated for purposes of this paragraph, the county
superintendent, or his or her designee, annually shall submit a
report, at a regularly scheduled November board meeting, to the
governing board of each school district under his or her
jurisdiction, the county board of education of his or her county, and
the board of supervisors of his or her county describing the state
of the schools in the county or of his or her office that are ranked
in deciles 1 to 3, inclusive, of the 2006 base API, pursuant to
Section 52056. As a condition for the receipt of funds, the annual
report shall include the determinations for each school made by the
county superintendent, or his or her designee, regarding the status
of all of the circumstances listed in subparagraph  (J)
  (I)  and teacher misassignments and teacher
vacancies, and the county superintendent, or his or her designee,
shall use a standardized template to report the circumstances listed
in subparagraph  (J)   (I)  and teacher
misassignments and teacher vacancies, unless the current annual
report being used by the county superintendent, or his or her
designee, already includes those details with the same level of
specificity that is otherwise required by this subdivision. For
purposes of this section, schools ranked in deciles 1 to 3,
inclusive, on the 2006 base API shall include schools determined by
the department to meet either of the following:
   (i) The school meets all of the following criteria:
   (I) Does not have a valid base API score for 2006.
   (II) Is operating in fiscal year 2007-08 and was operating in
fiscal year 2006-07 during the Standardized Testing and Reporting
(STAR) Program testing period.
   (III) Has a valid base API score for 2005 that was ranked in
deciles 1 to 3, inclusive, in that year.
   (ii) The school has an estimated base API score for 2006 that
would be in deciles 1 to 3, inclusive.
   (C) The department shall estimate an API score for any school
meeting the criteria of subclauses (I) and (II) of clause (i) of
subparagraph (B) and not meeting the criteria of subclause (III) of
clause (i) of subparagraph (B), using available test scores and
weighting or corrective factors it deems appropriate. The department
shall post the API scores on its Internet Web site on or before May
1.
   (D) For purposes of this section, references to schools ranked in
deciles 1 to 3, inclusive, on the 2006 base API shall exclude schools
operated by county offices of education pursuant to Section 56140,
as determined by the department. 
   (E) In addition to the requirements above, the county
superintendent, or his or her designee, annually shall verify both of
the following:  
   (i) That pupils who have not passed the high school exit
examination by the end of grade 12 are informed that they are
entitled to receive intensive instruction and services for up to two
consecutive academic years after completion of grade 12 or until the
pupil has passed both parts of the high school exit examination,
whichever comes first, pursuant to paragraphs (4) and (5) of
subdivision (d) of Section 37254.  
   (ii) That pupils who have elected to receive intensive instruction
and services, pursuant to paragraphs (4) and (5) of subdivision (d)
of Section 37254, are being served.  
   (F) 
    (E)  (i) Commencing with the 2010-11 fiscal year and
every third year thereafter, the Superintendent shall identify a list
of schools ranked in deciles 1 to 3, inclusive, of the API for which
the county superintendent, or his or her designee, annually shall
submit a report, at a regularly scheduled November board meeting, to
the governing board of each school district under his or her
jurisdiction, the county board of education of his or her county, and
the board of supervisors of his or her county that describes the
state of the schools in the county or of his or her office that are
ranked in deciles 1 to 3, inclusive, of the base API as defined in
clause (ii).
   (ii) For the 2010-11 fiscal year, the list of schools ranked in
deciles 1 to 3, inclusive, of the base API shall be updated using the
criteria set forth in clauses (i) and (ii) of subparagraph (B),
subparagraph (C), and subparagraph (D), as applied to the 2009 base
API and thereafter shall be updated every third year using the
criteria set forth in clauses (i) and (ii) of subparagraph (B),
subparagraph (C), and subparagraph (D), as applied to the base API of
the year preceding the third year consistent with clause (i).
   (iii) As a condition for the receipt of funds, the annual report
shall include the determinations for each school made by the county
superintendent, or his or her designee, regarding the status of all
of the circumstances listed in subparagraph  (J) 
 (I)  and teacher misassignments and teacher vacancies, and
the county superintendent, or his or her designee, shall use a
standardized template to report the circumstances listed in
subparagraph  (J)   (I) and teacher
misassignments and teacher vacancies, unless the current annual
report being used by the county superintendent, or his or her
designee, already includes those details with the same level of
specificity that is otherwise required by this subdivision. 
   (G) 
    (F)  The county superintendent of the Counties of
Alpine, Amador, Del Norte, Mariposa, Plumas, and Sierra, and the City
and County of San Francisco shall contract with another county
office of education or an independent auditor to conduct the required
visits and make all reports required by this paragraph. 
   (H) 
    (G)  On a quarterly basis, the county superintendent, or
his or her designee, shall report the results of the visits and
reviews conducted that quarter to the governing board of the school
district at a regularly scheduled meeting held in accordance with
public notification requirements. The results of the visits and
reviews shall include the determinations of the county
superintendent, or his or her designee, for each school regarding the
status of all of the circumstances listed in subparagraph 
(J)   (I)  and teacher misassignments and teacher
vacancies. If the county superintendent, or his or her designee,
conducts no visits or reviews in a quarter, the quarterly report
shall report that fact. 
   (I) 
    (H)  The visits made pursuant to this paragraph shall be
conducted at least annually and shall meet the following criteria:
   (i) Minimize disruption to the operation of the school.
   (ii) Be performed by individuals who meet the requirements of
Section 45125.1.
   (iii) Consist of not less than 25 percent unannounced visits in
each county. During unannounced visits in each county, the county
superintendent shall not demand access to documents or specific
school personnel. Unannounced visits shall only be used to observe
the condition of school repair and maintenance, and the sufficiency
of instructional materials, as defined by Section 60119. 
   (J) 
    (I)  The priority objective of the visits made pursuant
to this paragraph shall be to determine the status of all of the
following circumstances:
   (i) Sufficient textbooks as defined in Section 60119 and as
specified in subdivision (i).
   (ii) The condition of a facility that poses an emergency or urgent
threat to the health or safety of pupils or staff as defined in
district policy or paragraph (1) of subdivision (c) of Section
17592.72.
   (iii) The accuracy of data reported on the school accountability
report card with respect to the availability of sufficient textbooks
and instructional materials, as defined by Section 60119, and the
safety, cleanliness, and adequacy of school facilities, including
good repair as required by Sections 17014, 17032.5, 17070.75, and
17089. 
   (iv) The extent to which pupils who have not passed the high
school exit examination by the end of grade 12 are informed that they
are entitled to receive intensive instruction and services for up to
two consecutive academic years after completion of grade 12 or until
the pupil has passed both parts of the high school exit examination,
whichever comes first, pursuant to paragraphs (4) and (5) of
subdivision (d) of Section 37254.  
   (v) The extent to which pupils who have elected to receive
intensive instruction and services, pursuant to paragraphs (4) and
(5) of subdivision (d) of Section 37254, are being served. 

   (K) 
    (J)  The county superintendent may make the status
determinations described in subparagraph  (J)  
(I)  during a single visit or multiple visits. In determining
whether to make a single visit or multiple visits for this purpose,
the county superintendent shall take into consideration factors such
as cost-effectiveness, disruption to the schoolsite, deadlines, and
the availability of qualified reviewers. 
   (L) 
    (K)  If the county superintendent determines that the
condition of a facility poses an emergency or urgent threat to the
health or safety of pupils or staff as  defined in 
 described in school  district policy or paragraph (1) of
subdivision (c) of Section 17592.72, or is not in good repair, as
specified in subdivision (d) of Section 17002 and required by
Sections 17014, 17032.5, 17070.75, and 17089, the county
superintendent, among other things, may do any of the following:
   (i) Return to the school to verify repairs.
   (ii) Prepare a report that specifically identifies and documents
the areas or instances of noncompliance if the  school 
district has not provided evidence of successful repairs within 30
days of the visit of the county superintendent or, for major
projects, has not provided evidence that the repairs will be
conducted in a timely manner. The report may be provided to the
governing board of the school district. If the report is provided to
the school district, it shall be presented at a regularly scheduled
meeting held in accordance with public notification requirements. The
county superintendent shall post the report on his or her Internet
Web site. The report shall be removed from the Internet Web site when
the county superintendent verifies the repairs have been completed.
   (d) Distribute all laws, reports, circulars, instructions, and
blanks that he or she may receive for the use of the school officers.

   (e) Annually, on or before August 15, present a report to the
governing board of the school district and the Superintendent
regarding the fiscal solvency of a school district with a disapproved
budget, qualified interim certification, or a negative interim
certification, or that is determined to be in a position of fiscal
uncertainty pursuant to Section 42127.6.
   (f) Keep in his or her office the reports of the Superintendent.
   (g) Keep a record of his or her official acts, and of all the
proceedings of the county board of education, including a record of
the standing, in each study, of all applicants for certificates who
have been examined, which shall be open to the inspection of an
applicant or his or her authorized agent.
   (h) Enforce the course of study.
   (i) (1) Enforce the use of state textbooks and instructional
materials and of high school textbooks and instructional materials
regularly adopted by the proper authority in accordance with Section
51050.
   (2) For purposes of this subdivision, sufficient textbooks or
instructional materials has the same meaning as in subdivision (c) of
Section 60119.
   (3) (A) Commencing with the 2005-06 school year, if a school is
ranked in any of deciles 1 to 3, inclusive, of the base API, as
specified in paragraph (2) of subdivision (c), and not currently
under review pursuant to a state or federal intervention program, the
county superintendent specifically shall review that school at least
annually as a priority school. A review conducted for purposes of
this paragraph shall be completed by the fourth week of the school
year. For the 2004-05 fiscal year only, the county superintendent
shall make a diligent effort to conduct a visit to each school
pursuant to this paragraph within 120 days of receipt of funds for
this purpose.
   (B) In order to facilitate the review of instructional materials
before the fourth week of the school year, the county superintendent
in a county with 200 or more schools that are ranked in any of
deciles 1 to 3, inclusive, of the base API, as specified in paragraph
(2) of subdivision (c), may utilize a combination of visits and
written surveys of teachers for the purpose of determining
sufficiency of textbooks and instructional materials in accordance
with subparagraph (A) of paragraph (1) of subdivision (a) of Section
60119 and as defined in subdivision (c) of Section 60119. If a county
superintendent elects to conduct written surveys of teachers, the
county superintendent shall visit the schools surveyed within the
same academic year to verify the accuracy of the information reported
on the surveys. If a county superintendent surveys teachers at a
school in which the county superintendent has found sufficient
textbooks and instructional materials for the previous two
consecutive years and determines that the school does not have
sufficient textbooks or instructional materials, the county
superintendent shall within 10 business days provide a copy of the
insufficiency report to the school district as set forth in paragraph
(4).
   (C) For purposes of this paragraph, "written surveys" may include
paper and electronic or online surveys.
   (4) If the county superintendent  of schools  determines
that a school does not have sufficient textbooks or instructional
materials in accordance with subparagraph (A) of paragraph (1) of
subdivision (a) of Section 60119 and as defined by subdivision (c) of
Section 60119, the county superintendent shall do all of the
following:
   (A) Prepare a report that specifically identifies and documents
the areas or instances of noncompliance.
   (B) Provide within five business days of the review, a copy of the
report to the school district, as provided in subdivision (c), or,
if applicable, provide a copy of the report to the school district
within 10 business days pursuant to subparagraph (B) of paragraph
(3).
   (C) Provide the school district with the opportunity to remedy the
deficiency. The county superintendent shall ensure remediation of
the deficiency no later than the second month of the school term.
   (D) If the deficiency is not remedied as required pursuant to
subparagraph (C), the county superintendent shall request the
department to purchase the textbooks or instructional materials
necessary to comply with the sufficiency requirement of this
subdivision. If the department purchases textbooks or instructional
materials for the school district, the department shall issue a
public statement at the first regularly scheduled meeting of the
state board occurring immediately after the department receives the
request of the county superintendent and that meets the applicable
public notice requirements, indicating that the district
superintendent and the governing board of the school district failed
to provide pupils with sufficient textbooks or instructional
materials as required by this subdivision. Before purchasing the
textbooks or instructional materials, the department shall consult
with the  school  district to determine which textbooks or
instructional materials to purchase.  All purchases of
textbooks or instructional materials shall comply with Chapter 3.25
(commencing with Section 60420) of Part 33.  The amount of
funds necessary for the purchase of the textbooks and materials is a
loan to the school district receiving the textbooks or instructional
materials. Unless the school district repays the amount owed based
upon an agreed-upon repayment schedule with the Superintendent, the
Superintendent shall notify the Controller and the Controller shall
deduct an amount equal to the total amount used to purchase the
textbooks and materials from the next principal apportionment of the
 school  district or from another apportionment of state
funds.
   (j) Preserve carefully all reports of school officers and
teachers.
   (k) Deliver to his or her successor, at the close of his or her
official term, all records, books, documents, and papers belonging to
the office, taking a receipt for them, which shall be filed with the
department.
   (l) (1) Submit two reports during the fiscal year to the county
board of education in accordance with the following:
   (A) The first report shall cover the financial and budgetary
status of the county office of education for the period ending
October 31. The second report shall cover the period ending January
31. Both reports shall be reviewed by the county board of education
and approved by the county superintendent no later than 45 days after
the close of the period being reported.
   (B) As part of each report, the county superintendent shall
certify in writing whether or not the county office of education is
able to meet its financial obligations for the remainder of the
fiscal year and, based on current forecasts, for two subsequent
fiscal years. The certifications shall be classified as positive,
qualified, or negative, pursuant to standards prescribed by the
Superintendent, for  the  purposes of determining
subsequent state agency actions pursuant to Section 1240.1. For
purposes of this subdivision, a negative certification shall be
assigned to a county office of education that, based upon current
projections, will not meet its financial obligations for the
remainder of the fiscal year or for the subsequent fiscal year. A
qualified certification shall be assigned to a county office of
education that may not meet its financial obligations for the current
fiscal year or two subsequent fiscal years. A positive certification
shall be assigned to a county office of education that will meet its
financial                                              obligations
for the current fiscal year and subsequent two fiscal years. In
accordance with those standards, the Superintendent may reclassify a
certification. If a county office of education receives a negative
certification, the Superintendent, or his or her designee, may
exercise the authority set forth in subdivision (c) of Section 1630.
Copies of each certification, and of the report containing that
certification, shall be sent to the Superintendent at the time the
certification is submitted to the county board of education. Copies
of each qualified or negative certification and the report containing
that certification shall be sent to the Controller at the time the
certification is submitted to the county board of education.
   (i) For the 2011-12 fiscal year, notwithstanding any of the
standards and criteria adopted by the state board pursuant to Section
33127, each county office of education budget shall project the same
level of revenue per unit of average daily attendance as it received
in the 2010-11 fiscal year and shall maintain staffing and program
levels commensurate with that level.
   (ii) For the 2011-12 fiscal year, the county superintendent shall
not be required to certify in writing whether or not the county
office of education is able to meet its financial obligations for the
two subsequent fiscal years.
   (iii) For the 2011-12 fiscal year, notwithstanding any of the
standards and criteria adopted by the state board pursuant to Section
33127, the Superintendent, as a condition on approval of a county
office of education budget, shall not require a county office of
education to project a lower level of revenue per unit of average
daily attendance than it received in the 2010-11 fiscal year nor
require the county superintendent to certify in writing whether or
not the county office of education is able to meet its financial
obligations for the two subsequent fiscal years.
   (2) All reports and certifications required under this subdivision
shall be in a format or on forms prescribed by the Superintendent,
and shall be based on standards and criteria for fiscal stability
adopted by the state board pursuant to Section 33127. The reports and
supporting data shall be made available by the county superintendent
to an interested party upon request.
   (3) This subdivision does not preclude the submission of
additional budgetary or financial reports by the county
superintendent to the county board of education or to the
Superintendent.
   (4) The county superintendent is not responsible for the fiscal
oversight of the community colleges in the county, however, he or she
may perform financial services on behalf of those community
colleges.
   (m) If requested, act as agent for the purchase of supplies for
the city and high school districts of his or her county.
   (n) For purposes of Section 44421.5, report to the Commission on
Teacher Credentialing the identity of a certificated person who
knowingly and willingly reports false fiscal expenditure data
relative to the conduct of an educational program. This requirement
applies only if, in the course of his or her normal duties, the
county superintendent discovers information that gives him or her
reasonable cause to believe that false fiscal expenditure data
relative to the conduct of an educational program has been reported.
   SEC. 5.    Section 1242 of the   Education
Code   is repealed.  
   1242.  (a) Commencing with the 2006-07 fiscal year, funds
appropriated pursuant to Item 6110-266-0001 of Section 2.0 of Chapter
47 of the Statutes of 2006 to county offices of education for site
visits conducted pursuant to Section 1240, shall be allocated as
follows:
   (1) Two thousand five hundred dollars ($2,500) for each elementary
school.
   (2) Three thousand five hundred dollars ($3,500) for each middle
or junior high school.
   (3) Five thousand dollars ($5,000) for each high school.
   (b) In addition to the funds described in subdivision (a), county
offices of education shall receive additional funding for sites whose
enrollment in the prior year is 20 percent greater than the average
enrollment of all sites for the prior year as follows:
   (1) Two dollars and fifty cents ($2.50) for each pupil that
exceeds a total elementary school enrollment of 856 pupils.
   (2) Three dollars and fifty cents ($3.50) for each pupil that
exceeds a total middle school or junior high school enrollment of
1,427 pupils.
   (3) Five dollars ($5.00) for each pupil that exceeds a total high
school enrollment of 2,296 pupils.
   (c) County offices of education that are responsible for visiting
more than 150 schoolsites shall receive an additional allocation of
one dollar ($1.00) per pupil for the total prior year enrollment of
all sites visited.
   (d) The minimum amount for allocation pursuant to this section to
county offices of education shall be ten thousand dollars ($10,000).

   SEC. 6.    Section 1242.5 of the   Education
Code   is repealed.  
   1242.5.  On or before March 31, 2007, the department shall review
the actual costs of 2005-06 fiscal year site visits conducted
pursuant to Section 1240. If the department determines that a county
office of education did not expend the funds allocated for this
purpose during the 2005-06 fiscal year, the amount that exceeds the
amount spent shall revert to the extraordinary cost pool created by
Chapter 710 of the Statutes of 2005 and shall be available to cover
the extraordinary costs incurred by county offices of education as a
result of the reviews conducted pursuant to Section 1240. Based on a
determination by the department and the Department of Finance that it
was necessary for a county office of education to incur
extraordinary costs to conduct the site visits, funds in the amount
necessary to cover these costs shall be allocated to the county
office of education by June 30, 2007. 
   SEC. 7.    Section 1622 of the   Education
Code   is amended to read: 
   1622.  (a) On or before July 1 of each fiscal year, the county
board of education shall adopt an annual budget for the budget year
 and, for the 2014-15 fiscal year and each fiscal year
thereafter, take action on a local control and accountability plan
pursuant to Sections 52062 and 52064  and shall file 
that   the  budget  and local control and
accountability plan  with the Superintendent  of Public
Instruction  , the county board of supervisors, and the
county auditor. The budget,  the local control and accountability
plan,  and supporting data, shall be maintained and made
available for public review. The budget shall indicate the date,
time, and location at which the county board of education held the
public hearing required under Section 1620.  For the 2014-15
fiscal year and each fiscal year thereafter, the county board of
education shall not adopt a budget before the county board of
education adopts a local control and accountability plan or approves
an update to an existing local control and accountability plan. The
county board of education shall not adopt a budget that does not
align with the local control and accountability plan that applies to
the subsequent fiscal year. 
   (b)  (1)    The Superintendent  of
Public Instruction  shall examine the budget to determine
 whether   if  it (1) complies with the
standards and criteria adopted by the  State Board of
Education   state board  pursuant to Section 33127
for application to final local educational agency budgets, (2) allows
the county office of education to meet its financial obligations
during the fiscal year, and (3) is consistent with a financial plan
that will enable the county office of education to satisfy its
multiyear financial commitments. In addition, the Superintendent
shall identify any technical corrections to the budget that must be
made. On or before August 15, the Superintendent  of Public
Instruction  shall approve or disapprove the budget and, in
the event of a disapproval, transmit to the county office of
education in writing his or her recommendations regarding revision of
the budget and the reasons for those recommendations.  For

    (2)     For  the 2011-12 fiscal year,
notwithstanding any of the standards and criteria adopted by the
state board pursuant to Section 33127, the Superintendent, as a
condition on approval of a county office of education budget, shall
not require a county office of education to project a lower level of
revenue per unit of average daily attendance than it received in the
2010-11 fiscal year nor require the county superintendent to certify
in writing whether or not the county office of education is able to
meet its financial obligations for the two subsequent fiscal years.

   (3) For the 2014-15 fiscal year and each fiscal year thereafter,
the Superintendent shall disapprove a budget if any of the following
occur:  
   (A) The county board of education does not file a local control
and accountability plan with the Superintendent pursuant to Sections
52062 and 52064.  
   (B) If the Superintendent determines that a local control and
accountability plan filed does not adhere to the template adopted by
the state board pursuant to Section 52066.  
   (C) If the Superintendent determines that a local control and
accountability plan filed does not include all of the components
identified in subdivision (a) of Section 52064.  
   (D) If the Superintendent determines that the expenditures
included in the budget do not reflect the costs necessary to
implement the local control and accountability plan. 
   (c) On or before September 8, the county board of education shall
revise the county office of education budget to reflect changes in
projected income or expenditures subsequent to July 1, and to include
any response to the recommendations of the Superintendent 
of Public Instruction  , shall adopt the revised budget, and
shall file the revised budget with the Superintendent  of
Public Instruction  , the county board of supervisors, and
the county auditor.  Prior to   Before 
revising the budget, the county board of education shall hold a
public hearing regarding the proposed revisions, which shall be made
available for public inspection not less than three working days
 prior to   before  the hearing. The agenda
for that hearing shall be posted at least 72 hours  prior to
  before  the public hearing and shall include the
location where the budget will be available for public inspection.
The revised budget, and supporting data, shall be maintained and made
available for public review.
   (d) The Superintendent  of Public Instruction 
shall examine the revised budget to determine whether it complies
with the standards and criteria adopted by the  State Board
of Education   state board  pursuant to Section
33127 for application to final local educational agency budgets and,
no later than October 8, shall approve or disapprove the revised
budget.  For the 2014-15 fiscal year and each fiscal year
thereafter, the Superintendent shall disapprove a revised budget if
the Superintendent determines that the expenditures included in the
budget do not reflect the costs necessary to implement the local
control and accountability plan adopted by a county board of
education pursuant to Sections 52062 and 52064.  If the
Superintendent  of Public Instruction  disapproves
the budget, he or she shall call for the formation of a budget review
committee pursuant to Section 1623. For the 2011-12 fiscal year,
notwithstanding any of the standards and criteria adopted by the
state board pursuant to Section 33127, the Superintendent, as a
condition on approval of a county office of education budget, shall
not require a county office of education to project a lower level of
revenue per unit of average daily attendance than it received in the
2010-11 fiscal year nor require the county superintendent to certify
in writing whether or not the county office of education is able to
meet its financial obligations for the two subsequent fiscal years.
   (e) Notwithstanding any other provision of this section, the
budget review for a county office of education shall be governed by
paragraphs (1), (2), and (3) of this subdivision, rather than by
subdivisions (c) and (d), if the county board of education so elects,
and notifies the Superintendent  of Public Instruction
 in writing of that decision, no later than October 31 of
the immediately preceding calendar year.
   (1) In the event of the disapproval of the budget of a county
office of education pursuant to subdivision (b), on or before
September 8, the county superintendent of schools and the county
board of education shall review the recommendations of the
Superintendent  of Public Instruction  at a
regularly scheduled meeting of the county board of education and
respond to those recommendations. That response shall include the
proposed actions to be taken, if any, as a result of those
recommendations.
   (2) No later than October 8, after receiving the response required
under paragraph (1), the Superintendent  of Public
Instruction  shall review that response and either approve
or disapprove the budget of the county office of education.  For
the 2014-15 fiscal year and each fiscal year thereafter, the
Superintendent shall disapprove a budget if a county board of
education does not file a local control and accountability plan with
the Superintendent or if the Superintendent determines that the
expenditures included in the budget adopted by the county board of
education do not reflect the costs necessary to implement the local
control and accountability plan.  If the Superintendent 
of Public Instruction  disapproves the budget, he or she
shall call for the formation of a budget review committee pursuant to
Section 1623.
   (3) Not later than 45 days after the Governor signs the annual
Budget Act, the county office of education shall make available for
public review any revisions in revenues and expenditures that it has
made to its budget to reflect the funding made available by that
Budget Act.
   SEC. 8.    Section 1630 of the   Education
Code   is amended to read: 
   1630.  (a) The Superintendent shall review and consider studies,
reports, evaluations, or audits of the county office of education
that contain evidence that the county office of education is
demonstrating fiscal distress according to the standards and criteria
developed pursuant to Section 33127, or that contain a finding by an
external reviewer that more than 3 of the 15 most common predictors
of school agencies needing intervention, as determined by the County
Office Fiscal Crisis and Management Assistance Team, are present. If
those findings are made, the Superintendent shall investigate the
financial condition of the county office of education and determine
if the county office of education may be unable to meet its financial
obligations for the current or two subsequent fiscal years, or
should receive a qualified or negative interim financial
certification pursuant to Section 1240.
   (b) If at any time during the fiscal year the Superintendent
determines that the county office of education may be unable to meet
its financial obligations for the current or two subsequent fiscal
years, or if the county office  of education  has a
qualified certification pursuant to Section 1240, he or she shall
notify the county board of education and the county superintendent in
writing of that determination and the basis for the determination.
The notification shall include the assumptions used in making the
determination and shall be available to the public. The
Superintendent shall do the following, as necessary, to ensure that
the county office meets its financial obligations:
   (1) Assign a fiscal expert, paid for by the Superintendent, to
advise the county office  of education  on its financial
problems.
   (2) Conduct a study of the financial and budgetary conditions of
the county office  of education  . If, in the course of this
review, the Superintendent determines that his or her office
requires analytical assistance or expertise that is not available
through the county office  of education , he or she may
employ, at county office  of education  expense, on a
short-term basis, staff, including certified public accountants, to
provide the assistance and expertise.
   (3) Direct the county office  of education  to submit a
financial projection of all fund and cash balances of the county
office  of education  as of June 30 of the current year and
subsequent fiscal years as he or she requires.
   (4) Require the county office  of education  to encumber
all contracts and other obligations, to prepare appropriate cashflow
analyses and monthly or quarterly budget revisions, and to
appropriately record all receivables and payables.
   (5) Direct the county office  of education  to submit a
proposal for addressing the fiscal conditions that resulted in the
determination that the county office  of education  may not
be able to meet its financial obligations.
   (6) Withhold compensation of the county board of education and the
county superintendent for failure to provide requested financial
information.
   (c) If, after taking the actions identified in subdivision (a),
the Superintendent determines that a county office  of education
 will be unable to meet its financial obligations for the
current or subsequent fiscal year, he or she shall notify the county
board of education and the county superintendent in writing of that
determination and the basis for that determination. The notification
shall include the assumptions used in making the determination and
shall be available to the public.
   (d) If the Superintendent  of Public Instruction 
makes that determination, or if the county office  of education
 has a negative certification pursuant to Section 1240, the
Superintendent, shall, as necessary to enable the county office 
of education  to meet its financial obligations, do one or more
of the following:
   (1) Develop and impose, in consultation with the county board of
education and the county superintendent, a budget that will enable
the county  office of education  to meet its financial
obligations.
   (2) Stay or rescind an action that is determined to be
inconsistent with the ability of the county office  of education
 to meet its obligations for the current or subsequent fiscal
year and may, as necessary, appoint a fiscal adviser to perform some
or all of the duties prescribed by this paragraph on his or her
behalf. This includes actions up to the point that the subsequent
year's budget is approved by the Superintendent. The Superintendent
shall inform the county board of education in writing of his or her
justification for an exercise of authority under this paragraph.
   (3) Assist in developing, in consultation with the county board of
education and the county superintendent, a financial plan that will
enable the county office  of education  to meet its future
obligations.
   (4) Assist in developing, in consultation with the county board of
education and the county superintendent, a budget for the subsequent
fiscal year. If necessary, the Superintendent shall continue to work
with the county board of education and the county superintendent
until the budget for the subsequent year is adopted.
   (e) Actions taken by the Superintendent pursuant to paragraph (1)
or (2) of subdivision (d) shall be accompanied by a notification that
includes the actions to be taken, the reasons for the actions, and
the assumptions used to support the necessity for those actions. That
notification shall be available to the public.
   (f) This section does not authorize the Superintendent to abrogate
a provision of a collective bargaining agreement that was entered
into by a county office  prior to   of education
before  the date upon which the Superintendent assumed
authority pursuant to subdivision (d).
   (g) The county office  of education  shall pay reasonable
fees charged by the Superintendent for administrative expenses
incurred pursuant to subdivision (d) or costs associated with
improving the office's financial management practices.
   (h) Notwithstanding any other  provision of  law,
a county treasurer shall not honor a warrant when the
Superintendent, as appropriate, has disapproved that warrant, or has
disapproved the order on county office  of education  funds
for which a warrant was prepared.
   (i) For all purposes of errors and liability insurance policies, a
fiscal expert appointed pursuant to this section shall be deemed to
be an employee of the county office of education. The Superintendent
may require that the fiscal adviser be placed on the county office of
education payroll for  the purposes of
remuneration, benefits, and payroll deductions.
   (j) If staff persons are hired pursuant to paragraph (2) of
subdivision (b), the Superintendent may certify to the Controller an
amount to be transferred to the  State Department of
Education,   state department,  from the funds that
otherwise would be apportioned to the county office of education
pursuant to Section  2558,   2575,  for the
purpose of paying all costs incurred by that staff in performing
their respective services. The Controller, upon receipt of that
certification, shall transfer that amount.
   (k) To facilitate the appointment of a county office  of
education  fiscal officer and the employment of additional staff
pursuant to paragraphs (1) and (2), respectively, of subdivision
(b), for the purposes of those paragraphs, the Superintendent
 of Public Instruction  is exempt from the
requirements of Article 6 (commencing with Section 999) of Chapter 6
of Division 4 of the Military and Veterans Code and Part 2
(commencing with Section 10100) of Division 2 of the Public Contract
Code.
   SEC. 9.    Article 9 (commencing with Section 1780)
of Chapter 6 of Part 2 of Division 1 of   Title 1 of the
  Education Code   is repealed. 
   SEC. 10.    Article 10 (commencing with Section 1790)
of Chapter 6 of Part 2 of Division 1 of   Title 1 of the
  Education Code   is repealed. 
  SEC. 11.    Article 11 (commencing with Section 1830)
of Chapter 6 of Part 2 of Division 1 of   Title 1 of the
  Education Code   is repealed. 
   SEC. 12.    Article 14.5 (commencing with Section
1900) of Chapter 6 of Part 2 of Division 1   of Title 1 of
the   Education Code   is repealed. 
   SEC. 13.    Article 14.7 (commencing with Section
1915) of Chapter 6 of Part 2 of Division 1   of Title 1 of
the   Education Code   is repealed. 
   SEC. 14.    Article 17 (commencing with Section 1940)
of Chapter 6 of Part 2 of Division 1 of   Title 1 of the
  Education Code   is repealed. 
   SEC. 15.    Section 1982 of the   Education
Code   is repealed.  
   1982.  (a) County community schools shall be administered by the
county superintendent of schools.
   For purposes of making apportionments from the State School Fund
and the levying of local taxes, any attendance generated by pupils in
county community schools in kindergarten or any of grades 1 to 12,
inclusive, who are enrolled pursuant to subdivisions (a), (b), and
(d) of Section 1981 as well as any attendance generated by pupils in
county community schools in kindergarten or any of grades 1 to 6,
inclusive, who are enrolled pursuant to paragraph (1) or (2) of
subdivision (c) of Section 1981 shall be credited to the district of
residence. School districts shall pay to the county for the purposes
of the community schools the entire revenue limit for each average
daily attendance credited pursuant to this section. No funds
generated by average daily attendance credited pursuant to this
section shall be retained by the district of residence. The county
superintendent of schools may use funds derived from existing tax
revenues to provide additional funding per pupil enrolled in county
community schools but not to exceed the difference between the amount
derived per pupil from the district and the amount available per
pupil enrolled in juvenile court schools.
   (b) For the purposes of making apportionments from the State
School Fund, pupils enrolled in county community schools pursuant to
subdivision (c) of Section 1981 shall be deemed to be enrolled in a
county juvenile hall or camp except pupils enrolled in kindergarten
or any of grades 1 to 6, inclusive, who are enrolled pursuant to
paragraph (1) or (2) of subdivision (c) of Section 1981.
   (c) For the purposes of this section, the county superintendent of
schools providing educational services to homeless children shall be
deemed to be the district of residence of those children. 
   SEC. 16.    Section 1982.3 of the  
Education Code   is repealed.  
   1982.3.  Any amounts received by a county superintendent of
schools for revenue limit purposes that are derived from the average
daily attendance generated by pupils enrolled in a community school
shall be expended only for the purposes specified in subdivision (b)
of Section 42238.18. 
   SEC. 17.    Section 1982.5 of the  
Education Code   is repealed.  
   1982.5.  Notwithstanding subdivision (b) of Section 1982, for
purposes of making apportionments from the State School Fund, pupils
enrolled in juvenile court schools because they were expelled
pursuant to subdivision (a) of Section 48915 shall be deemed the same
as pupils enrolled in county community schools pursuant to
subdivision (a), (b), or (d) of Section 1981. 
                                                        SEC. 18.
   Section 1983.5 of the   Education Code 
 is repealed.  
   1983.5.  Notwithstanding any other provision of law,
apportionments claimed by a county office of education for units of
average daily attendance for pupils enrolled pursuant to subdivision
(c) of Section 1981 in excess of the number claimed by that county
office in the 1991-92 fiscal year shall be funded at the statewide
average revenue limit per unit of average daily attendance for that
category of enrollment. This section does not apply to pupils
enrolled in kindergarten or any of grades 1 to 6, inclusive, pursuant
to paragraphs (1) or (2) of subdivision (c) of Section 1981.

   SEC. 19.    Article 1 (commencing with Section 2509)
of Chapter 12 of Part 2 of Division 1 of   Title 1 of the
  Education Code   is repealed. 
   SEC. 20.    Article 3 (commencing with Section 2550)
of Chapter 12 of Part 2 of Division 1 of   Title 1 of the
  Education Code   is repealed. 
   SEC. 21.    Article 3.5 (commencing with Section
2560) of Chapter 12 of Part 2 of Division 1   of Title 1 of
the   Education Code   is repealed. 
   SEC. 22.    The heading of Article 4 (commencing with
Section 2570) of Chapter   12 of Part 2 of Division 1 of
Title 1 of the   Education Code   is amended and
renumbered to read: 

      Article  4.   1.   Allocation of
Property Tax Revenues


   SEC. 23.    Section 2573 of the   Education
Code   is amended to read: 
   2573.  The remainder computed pursuant to subdivision (d) of
Section 2571 is the amount of property tax revenues to be allocated
for programs funded pursuant to Section  2558.  
2575. 
   SEC. 24.    Article 2 (commencing with Section 2574)
is added to Chapter 12 of Part 2 of Division   1 of Title 1
of the   Education Code   , to read:  

      Article 2.  County Local Control Funding Formula


   2574.  For the 2013-14 fiscal year and for each fiscal year
thereafter, the Superintendent annually shall calculate the County
Local Control Funding Formula for each county superintendent of
schools as follows:
   (a) Compute a county office of education operations grant equal to
the sum of each of the following amounts:
   (1) Six hundred fifty-five thousand nine hundred twenty dollars
($655,920).
   (2) One hundred nine thousand three hundred twenty dollars
($109,320) multiplied by the number of school districts for which the
county superintendent of schools has jurisdiction pursuant to
Section 1253.
   (3) (A) Seventy dollars ($70) multiplied by the number of units of
countywide average daily attendance, up to a maximum of 30,000
units. For purposes of this section, countywide average daily
attendance means the aggregate number of annual units of average
daily attendance within the county attributable to all school
districts for which the county superintendent of schools has
jurisdiction pursuant to Section 1253, charter schools within the
county, and the schools operated by the county superintendent of
schools.
   (B) Sixty dollars ($60) multiplied by the number of units of
countywide average daily attendance for the portion of countywide
average daily attendance, if any, above 30,000 units, up to a maximum
of 60,000 units.
   (C) Fifty dollars ($50) multiplied by the number of units of
countywide average daily attendance for the portion of countywide
average daily attendance, if any, above 60,000, up to a maximum of
140,000 units.
   (D) Forty dollars ($40) multiplied by the number of units of
countywide average daily attendance for the portion of countywide
average daily attendance, if any, above 140,000 units.
   (4) For the 2014-15 fiscal year and each fiscal year thereafter,
adjust each of the amounts provided in the prior year pursuant to
paragraphs (1), (2), and (3) by the percentage change in the annual
average value of the Implicit Price Deflator for State and Local
Government Purchases of Goods and Services for the United States, as
published by the United States Department of Commerce for the
12-month period ending in the third quarter of the prior fiscal year.
This percentage change shall be determined using the latest data
available as of May 10 of the preceding fiscal year compared with the
annual average value of the same deflator for the 12-month period
ending in the third quarter of the second preceding fiscal year,
using the latest data available as of May 10 of the preceding fiscal
year, as reported by the Department of Finance.
   (b) Divide the enrollment of unduplicated pupils in all schools
operated by a county superintendent of schools by the total
enrollment in those schools.
   (1) For purposes of this section, an "unduplicated pupil" is a
pupil who is classified as an English learner pursuant to Section
52164, as that section read on January 1, 2013; eligible to receive a
free or reduced-price meal pursuant to Section 49552, as that
section read on January 1, 2013; or a foster child pursuant to
Sections 300 and 601 of the Welfare and Institutions Code. A pupil
shall be counted only once for purposes of this section if any of the
following apply:
   (A) The pupil is classified as an English learner and is eligible
for a free or reduced-price meal.
   (B) The pupil is classified as an English learner and is a foster
child.
   (C) The pupil is classified as a foster child and is eligible for
a free or reduced-price meal.
   (D) The pupil is classified as an English learner, is eligible for
a free or reduced-price meal, and is a foster child.
   (2) For purposes of this section, a pupil shall not be classified
as an English learner for a total of more than five school years by
any school district, charter school, or county office of education.
   (3) For purposes of this subdivision, a pupil enrolled in a
juvenile court school operated by a county superintendent of schools
shall not be included in any enrollment counts.
   (4) Commencing with the 2013-14 fiscal year, a county
superintendent of schools annually shall report the enrollment of
unduplicated pupils, pupils classified as English learners, pupils
eligible for free and reduced-price meals, and foster children in
schools operated by the county superintendent of schools to the
Superintendent using the California Longitudinal Pupil Achievement
Data System. The Superintendent shall make the calculations pursuant
to this section using the California Longitudinal Pupil Achievement
Data System.
   (c) Compute an alternative education grant equal to the sum of the
following:
   (1) For the 2013-14 fiscal year, a base grant of eleven thousand
forty-five dollars ($11,045). For the 2014-15 fiscal year and each
fiscal year thereafter, adjust the base grant provided in the prior
year by the percentage change in the annual average value of the
Implicit Price Deflator for State and Local Government Purchases of
Goods and Services for the United States, as published by the United
States Department of Commerce for the 12-month period ending in the
third quarter of the prior fiscal year. This percentage change shall
be determined using the latest data available as of May 10 of the
preceding fiscal year compared with the annual average value of the
same deflator for the 12-month period ending in the third quarter of
the second preceding fiscal year, using the latest data available as
of May 10 of the preceding fiscal year, as reported by the Department
of Finance.
   (2) A supplemental grant equal to 35 percent of the base grant
defined in paragraph (1) multiplied by the percentage calculated in
subdivision (b).
   (3) A concentration grant equal to 35 percent of the base grant
defined in paragraph (1) multiplied by the greater of either of the
following:
   (A) The percentage calculated in subdivision (b) less 50 percent.
   (B) Zero.
   (4) (A) Multiply the sum of paragraphs (1), (2), and (3) by the
total number of units of average daily attendance for pupils
attending schools operated by a county office of education, excluding
units of average daily attendance for pupils attending a juvenile
court school, who are any of the following:
   (i) Probation-referred pursuant to Sections 300, 601, 602, and 654
of the Welfare and Institutions Code.
   (ii) On probation or parole and not in attendance in a school.
   (iii) Expelled for any of the reasons specified in subdivision (a)
or (c) of Section 48915.
   (B) Multiply the number of units of average daily attendance for
pupils attending a juvenile court school by the sum of the base grant
calculated in paragraph (1), a supplemental grant equal to 35
percent of the base grant pursuant to paragraph (1), and a
concentration grant equal to 17.5 percent of the base grant pursuant
to paragraph (1).
   (C) Add the amounts calculated in subparagraphs (A) and (B).
   (d) Add the amount calculated in subdivision (a) to the amount
calculated in subparagraph (C) of paragraph (4) of subdivision (c).
   (e) Add all of the following to the amount calculated in
subdivision (d):
   (1) The amount of funding a county superintendent of schools
received for the 2012-13 fiscal year from funds allocated pursuant to
the Targeted Instructional Improvement Block Grant program, as set
forth in Article 6 (commencing with Section 41540) of Chapter 3.2 of
Part 24 of Division 3 of Title 2, as that article read on January 1,
2013.
   (2) The amount of funding a county superintendent of schools
received for the 2012-13 fiscal year from funds allocated pursuant to
the Home to School Transportation program, as set forth in Article 2
(commencing with Section 39820) of Chapter 1 of Part 23.5 of
Division 3 of Title 2, and Article 10 (commencing with Section 41850)
of Chapter 5 of Part 24 of Division 3 of Title 2, as those articles
read on January 1, 2013.
   2575.  Commencing with the 2013-14 budget year and for each fiscal
year thereafter, the Superintendent shall distribute the
appropriations in Section 14002 to each county superintendent of
schools according to the following formula:
   (a) Calculate a prior year amount of funding for each county
superintendent of schools equal to the sum of all of the following:
   (1) Entitlements for revenue limits in the 2012-13 fiscal year
pursuant to Article 3 (commencing with Section 2550) of Chapter 12,
as that article read on January 1, 2013, adjusted only for changes in
average daily attendance claimed by the county superintendent of
schools for pupils identified in clauses (i), (ii) and (iii) of
subparagraph (A) of paragraph (4) of subdivision (c) of Section 2574
and of pupils attending juvenile court schools. All other average
daily attendance claimed by the county superintendent of schools and
any other average daily attendance used for purposes of calculating
revenue limits pursuant to Article 3 (commencing with Section 2550)
of Chapter 12, as that article read on January 1, 2013, shall be
considered final for purposes of this section as of the annual
apportionment for the 2012-13 fiscal year, as calculated for purposes
of the certification required on or before February 20, 2014,
pursuant to Section 41332.
   (2) The amount of funding received from appropriations contained
in Section 2.00 of the Budget Act of 2012, as adjusted by Section
12.42, in the following items: 6110-104-0001, 6110-105-0001,
6110-107-0001, 6110-108-0001, 6110-111-0001, 6110-119-0001,
6110-122-0001, 6110-124-0001, 6110-128-0001, 6110-137-0001,
6110-144-0001, 6110-156-0001, 6110-158-0001, 6110-166-0001,
6110-167-0001, 6110-181-0001, 6110-188-0001, 6110-189-0001,
6110-190-0001, 6110-193-0001, 6110-195-0001, 6110-198-0001,
6110-204-0001, 6110-208-0001, 6110-209-0001, 6110-211-0001,
6110-212-0001, 6110-227-0001, 6110-228-0001, 6110-232-0001,
6110-234-0001, 6110-240-0001, 6110-242-0001, 6110-243-0001,
6110-244-0001, 6110-245-0001, 6110-246-0001, 6110-247-0001,
6110-248-0001, 6110-260-0001, 6110-265-0001, 6110-266-0001,
6110-267-0001, 6110-268-0001, and 6360-101-0001, and 2012-13 fiscal
year funding for the Class Size Reduction Program pursuant to Chapter
6.10 (commencing with Section 52120) of Part 28 of Division 4 of
Title 2, as it read on January 1, 2013.
   (3) For the 2014-15 fiscal year and for each fiscal year
thereafter, the amounts calculated pursuant to paragraph (3) of
subdivision (b) in all prior years.
   (b) Calculate an adjustment to the amount in subdivision (a) as
follows:
   (1) Subtract the amount in subdivision (a) from the amount
computed in subdivision (e) of Section 2574. A difference of less
than zero shall be deemed to be zero.
   (2) Divide the difference for the county superintendent of schools
calculated in paragraph (1) by the total of the differences for all
county superintendents of schools calculated pursuant to paragraph
(1).
   (3) (A) Multiply the proportion calculated in paragraph (2) by the
amount of funding appropriated for purposes of this section. The
amount calculated shall not exceed the difference for the county
superintendent of schools calculated in paragraph (1).
   (B) Add the amount calculated in subparagraph (A) to the
allocation to the county superintendent of schools as calculated
pursuant to subdivision (a).
   (c) Subtract from the amount calculated in subparagraph (B) of
paragraph (3) of subdivision (b) the sum of each of the following:
   (1) Local property tax revenues received pursuant to Section 2573
in the then current fiscal year.
   (2) Any amounts that the county superintendent of schools was
required to maintain as restricted and not available for expenditure
in the 1978-79 fiscal year as specified in the second paragraph of
subdivision (c) of Section 6 of Chapter 292 of the Statutes of 1978,
as amended by Chapter 51 of the Statutes of 1979.
   (3) The amount received pursuant to subparagraph (C) of paragraph
(3) of subdivision (a) of Section 33607.5 of the Health and Safety
Code that is considered property taxes pursuant to that section.
   (4) The amount, if any, received pursuant to Sections 34177,
34179.5, 34179.6, and 34188 of the Health and Safety Code.
   (5) (A) The amount, if any, received pursuant to subparagraph (B)
of paragraph (3) of subdivision (e) of Section 36 of Article XIII of
the California Constitution.
   (B) The amount in subparagraph (A) shall only offset the amount
included in paragraph (1) of subdivision (a).
   (d) (1) The Superintendent shall apportion to the county
superintendent of schools either of the following:
   (A) If the calculation in paragraph (1) of subdivision (b) is
positive, the amount calculated in subdivision (c).
   (B) (i) If the calculation in paragraph (1) of subdivision (b) is
equal to zero or is negative, the sum of the amounts in paragraphs
(1) and (2) of subdivision (a), less the sum of the amounts included
in paragraphs (1) to (5), inclusive, of subdivision (c).
   (ii) For the first fiscal year in which the amount calculated in
subdivision (e) of Section 2574 is greater than the sum of the
amounts in paragraphs (1) and (2) of subdivision (a) and for each
fiscal year thereafter, the Superintendent shall apportion to the
county superintendent of schools the amount calculated in subdivision
(e) of Section 2574, less the sum of the amounts included in
paragraphs (1) to (5), inclusive, of subdivision (c).
   (2) If the amount determined pursuant to paragraph (1) is
negative, state aid shall not be apportioned to the county
superintendent of schools pursuant to paragraph (1). An amount of
funds of that county superintendent of schools equal to that negative
amount shall be deemed restricted and not available for expenditure
during the fiscal year in which subdivision (d) applies. In the
following fiscal year, that amount shall be considered local property
tax revenue for purposes of paragraph (1) of subdivision (c).
   (3) Commencing with the 2013-14 fiscal year, the Superintendent
shall apportion to the county superintendent of schools an amount of
state aid of no less than the amount calculated in paragraph (2) of
subdivision (a), including any amount apportioned pursuant to
paragraph (1).
   (e) (1) Funds apportioned pursuant to this section shall be
available for any locally determined educational purpose.
   (2) Funds apportioned for purposes of a supplemental grant or
concentration grant, pursuant to paragraphs (2) and (3), and
subparagraph (B) of paragraph (4) of subdivision (c) of Section 2754,
shall be available for any locally determined educational purpose
that benefits the pupils that generated those funds pursuant to a
local control and accountability plan adopted by the county board of
education.
   (3) Commencing with the 2013-14 fiscal year, unless otherwise
required by federal law, any requirements associated with the items
listed in paragraph (2) of subdivision (a) shall not apply.
   2576.  (a) If a county superintendent of schools enrolls in a
school operated by the county superintendent of schools a pupil not
funded pursuant to clause (i), (ii), or (iii) of subparagraph (A) of
paragraph (4) of subdivision (c) of Section 2574, any attendance
generated by that pupil shall be credited to the school district of
residence. That school district shall pay to the county
superintendent of schools the entire entitlement generated for each
unit of average daily attendance by that pupil.
   (b) For purposes of this section, the school district of residence
for a homeless child, as defined in Section 1981.2, shall be deemed
to be the school district that last provided educational services to
that child or, if it is not possible to determine that school
district, the largest school district in the county.
   2577.  Notwithstanding any other law, revenue limit funding for
county superintendents of schools for the 2012-13 fiscal year and
prior fiscal years shall continue to be adjusted pursuant to Article
3 (commencing with Section 2550) of Chapter 12, as that section read
on January 1, 2013. 
   SEC. 25.    Article 3 (commencing with Section 8070)
of Chapter 1 of Part 6 of Division 1 of   Title 1 of the
  Education Code   is repealed. 
   SEC. 26.    Article 4 (commencing with Section 8080)
of Chapter 1 of Part 6 of Division 1 of   Title 1 of the
  Education Code   is repealed. 
   SEC. 27.    Section 8092 of the   Education
Code   is amended to read: 
   8092.  (a) A school district or districts, a county superintendent
or superintendents, or the governing body of any agency maintaining
a regional occupational center or program may contract with a private
postsecondary school that is authorized or approved pursuant to
Chapter  3   8  (commencing with Section
 94300)   94800)  of Part 59  of 
 Division 10 of Title 3  and that has been in operation not
less than two full calendar years  prior to  
before  the effective date of the contract, to provide career
technical skill training authorized by this code. A school district,
community college district, or county superintendent of schools may
contract with an activity center, work activity center, or sheltered
workshop to provide career technical skill training authorized by
this code in an adult education program for adults with disabilities
operated pursuant to subdivision (a) of Section 41976.
   (b) A contract between a public entity and a private postsecondary
school entered into pursuant to this section, or an activity center,
work activity center, or sheltered workshop, shall do  all
  both  of the following:
   (1) Provide that the amount contracted for per student shall not
exceed the total direct and indirect costs to provide the same
training in the public schools or the tuition the private
postsecondary school charges its private students, whichever is
lower. 
   (2) Provide that the public school receiving training in a private
postsecondary school, or an activity center, work activity center,
or sheltered workshop pursuant to that contract may not be charged
additional tuition for any training included in the contract. The
attendance of those students pursuant to a contract authorized by
this section shall be credited to the public entity for the purposes
of apportionments from the State School Fund.  
   (3) 
    (2)  Provide that all programs, courses, and classes of
instruction shall meet the standards set forth in the California
State Plan for Career Technical Education, or is a course of study
for adult schools approved by the department  under Section
51056  .
   (c) The students who attend a private postsecondary school or an
activity center, work activity center, or sheltered workshop pursuant
to a contract under this section shall be enrollees of the public
entity and the career technical instruction provided pursuant to that
contract shall be under the exclusive control and management of the
governing body of the contracting public entity.
   (d) The Department of Finance and the  State Department of
Education   state department  may audit the
accounts of both the public entity and the private party involved in
these contracts to the extent necessary to ensure the integrity of
the public funds involved.
   SEC. 28.    Article 8 (commencing with Section 8150)
of Chapter 1 of Part 6 of Division 1 of   Title 1 of the
  Education Code   is repealed. 
   SEC. 29.    Chapter 3 (commencing with Section 8500)
of Part 6 of Division 1 of Title 1 of the   Education Code
  is repealed.
   SEC. 30.    Chapter 5.1 (commencing with Section
8820) of Part 6 of Division 1 of Title 1 of the   Education
Code   is repealed. 
  SEC. 31.    Chapter 9 (commencing with Section 8980)
of Part 6 of Division 1 of Title 1 of the   Education Code
  is repealed. 
   SEC. 32.    Section 10554 of the   Education
Code   is amended to read: 
   10554.  (a) In order for the governing board to carry out its
responsibilities pursuant to this chapter, there is hereby
established the Educational Telecommunication Fund. The amount of
moneys to be deposited in the fund shall be the amount of any offset
made to the principal apportionments made pursuant to Sections
 1909, 2558, 42238,   2575, 42238.02, as
implemented by Section 42238.03,  52616, Article 1.5 (commencing
with Section 52335) of Chapter 9 of Part 28  of Division 4 of
Title 2  , and Chapter 7.2 (commencing with Section 56836) of
Part 30  of Division 4 of Title 2  , based on a finding that
these apportionments were not in accordance with law. The maximum
amount that may be annually deposited in the fund from the offset is
fifteen million dollars ($15,000,000). The Controller shall establish
an account to receive and expend moneys in the fund. The placement
of the moneys in the fund shall occur only upon a finding by the
Superintendent  of Public Instruction  and the
Director of Finance that the principal apportionments made pursuant
to Sections  1909, 2558, 42238,  2575, 42238.02,
as implemented by Section 42238.03,  52616, and Article 1.5
(commencing with Section 52335) of Chapter 9 of Part 28  of
Division 4 of Title 2  , and Chapter 7.2 (commencing with
Section 56836) of Part 30  of Division 4 of Title 2  were
not in accordance with existing law and were so identified pursuant
to Sections 1624, 14506, 41020, 41020.2, 41320, 42127.2, and 42127.3,
or an independent audit that was approved by the department.
   (b) Moneys in the fund established pursuant to subdivision (a)
shall only be available for expenditure upon appropriation by the
Legislature in the Budget Act.
   (c) The moneys in the fund established pursuant to subdivision (a)
may be expended by the governing board to carry out the purposes of
this chapter, including for the following purposes:
   (1) To support the activities of the team established pursuant to
subdivision (c) of Section 10551.
   (2) To assist the school districts and county superintendents of
schools in purchasing both hardware and software to allow school
districts, county superintendents of schools, and the department to
be linked for school
business and administrative purposes. The governing board shall
establish a matching share requirement that applicant school
districts and county superintendents of schools must fulfill to
receive those funds. It is the intent of the Legislature to encourage
the distribution of grants to school districts and county
superintendents of schools to the widest extent possible.
   (3) To provide technical assistance through county offices of
education to school districts in implementing the standards
established pursuant to subdivision (a) of Section 10552.
   SEC. 33.    Chapter 13 (commencing with Section
11200) of Part 7 of Division 1 of Title 1 of the   Education
Code   is repealed. 
   SEC. 34.    Chapter 17 (commencing with Section
11600) of Part 7 of Division 1 of Title 1 of the   Education
Code   is repealed. 
   SEC. 35.    Section 14002 of the   Education
Code   is amended to read:  
   14002.  (a) The Controller shall during each fiscal year
commencing with the 1980-81 fiscal year, transfer from the General
Fund of the state to that portion of the State School Fund restricted
for elementary and high school purposes, hereinafter called Section
A of the State School Fund such sums, in addition to the sums
accruing from other sources, as shall provide in Section A of the
State School Fund for apportionment during the fiscal year a total
amount per pupil in average daily attendance during the preceding
fiscal year credited to all elementary, high, and unified school
districts and to all county superintendents of schools in the state,
as certified by the Superintendent of Public Instruction, of one
hundred eighty dollars ($180).
   (b) The Controller shall also transfer, as needed during each
fiscal year commencing with the 1980-81 fiscal year, such additional
amounts from the General Fund to Section A of the State School Fund
as are certified from time to time by the Superintendent of Public
Instruction to be necessary to meet actual computed apportionments
from Section A of the State School Fund for the purposes set forth in
Section 41301; provided that the total of such additional amounts
transferred in a fiscal year shall not exceed, except pursuant to
subdivision (c) of this section, one thousand two hundred sixty-eight
dollars ($1,268) for the 1980-81 fiscal year and fiscal years
thereafter, per pupil in average daily attendance during the
preceding fiscal year credited to all elementary, high, and unified
school districts and to all county superintendents of schools in the
state, as certified by the Superintendent of Public Instruction.
   (c) In addition to the amounts authorized to be transferred to
Section A of the State School Fund under subdivisions (a) and (b),
the Controller shall transfer from the General Fund to Section A of
the State School Fund during the fiscal year, upon certification of
the Superintendent of Public Instruction, if necessary to meet actual
computed apportionments for the fiscal year for the purposes set
forth in Sections 41300 and 41301, an amount not to exceed the lesser
of: (1) 1 percent of the total apportionment from Section A of the
State School Fund in the preceding fiscal year for the purposes set
forth in Sections 41300 and 41301, or (2) the net amount, if any, by
which the total amounts authorized to be transferred from the General
Fund to Section A of the State School Fund under subdivisions (a)
and (b) in prior fiscal years have exceeded the total amounts
actually apportioned in prior fiscal years for the purposes set forth
in Sections 41300 and 41301. 
    14002.    (a) Notwithstanding any other law, upon
certification of the Superintendent, the Controller shall transfer
from the General Fund to Section A of the State School Fund during
each fiscal year the amount of moneys required to meet the actual
computed apportionments for the fiscal year for the purposes set
forth in Sections 2575, 42238.02, and 42238.03.  
   (d) 
    (b)  The Controller shall also transfer to Section A of
the State School Fund any additional amounts appropriated thereto by
the Legislature in augmentation of any of the amounts for any of the
purposes set forth in Sections  41300 and 41301 
 2575, 42238.02, and 42238.03  and such additional amounts
shall be allowed and apportioned by the Superintendent  of
Public Instruction  and warrants therefor drawn by the
Controller in the manner provided in Sections 41050  ,
  and  46304,  and 84503  and in
this article, Article 2 (commencing with Section 14040), Article 3
(commencing with Section 41330) of Chapter 3  of Part 24 of
Division 3 of Title 2  , and Article 1 (commencing with Section
41600) of Chapter 4 of Part 24  of Division 3 of Title 2 .

   (e) The amounts transferred under subdivisions (a) and (b) of this
section shall be cumulatively increased by the following amounts:
 
   (1) In the 1981-82 fiscal year, by 7 percent.  
   (2) In the 1982-83 fiscal year and each fiscal year thereafter, by
6 percent.  
   (f) This section shall become operative on July 1, 2002. 

   SEC. 36.    Section 14002.1 of the  
Education Code   is amended to read:
   14002.1.  Notwithstanding any other law, for purposes of
determining  (a)  the amounts to be certified
pursuant to  Sections   subdivision (a) of
Section  14002  and 14004, (b) allocations made pursuant
to Section 41301, (c) the apportionments required to be made
pursuant to Sections 41330, 41332, and 41335, (d) revenue limits for
school districts pursuant to Section 42238, as adjusted pursuant to
Sections 42238.14, 42238.145, and 42238.146, and (e) revenue limits
for county offices of education pursuant to Section 2558, as adjusted
pursuant to Sections 2558.4, 2558.45, and 2558.46  , the
Superintendent  of Public Instruction  shall use the
property tax estimates received from county auditors pursuant to
Section 75.70 of the Revenue and Taxation Code.
   SEC. 37.    Section 14002.3 of the   
 Education Code   is repealed.  
   14002.3.  Notwithstanding any other law, for purposes of Sections
14002, 14004, and 41301, for the 2000-01 fiscal year and each fiscal
year thereafter, the Superintendent of Public Instruction shall
certify to the Controller amounts that do not exceed the amounts
needed to fund the revenue limits of school districts, as determined
pursuant to Section 42238, the revenue limits of county
superintendents of schools, as determined pursuant to Section 2558,
warrants issued pursuant to Section 41329.57, and the revenue limit
portion of charter school operational funding, as determined pursuant
to Section 47633. 
   SEC. 38.    Section 14002.5 of the   
 Education Code   is repealed.  
   14002.5.  In making the computation prescribed by subdivision (b)
of Section 14002, the Controller shall cumulatively increase the
seventy-nine cents ($0.79) amount prescribed by that subdivision by 6
percent annually, and shall cumulatively increase the twenty-one
dollar and fifty cents ($21.50) amount prescribed by that subdivision
by 6 percent annually. 
   SEC. 39.    Section 14003 of the   Education
Code   is amended to read: 
   14003.  (a) Commencing with the 2010-11 fiscal year, on March 28
of each fiscal year in which the percentage growth in per capita
General Fund revenues exceeds the percentage growth in California per
capita personal income, the Controller shall transfer from the
General Fund to Sections A and B of the State School Fund, as set
forth in subdivision (c), the amount determined pursuant to paragraph
(1) minus the amount determined pursuant to paragraph (2).
   (1) The product of General Fund revenues from proceeds of taxes
and one-half of the difference between the percentage growth in per
capita General Fund revenues from proceeds of taxes and in California
per capita personal income.
   (2) The amount of the maintenance factor certified pursuant to
Section 41207.2 that is allocated in the current year pursuant to
subdivision (e) of Section 8 of Article XVI of the California
Constitution.
   (b) The amount transferred pursuant to subdivision (a) shall be in
addition to amounts required to be allocated pursuant to subdivision
(b) of Section 8 of Article XVI of the California Constitution.
   (c) (1) Of the amount determined pursuant to subdivision (a), the
Controller shall transfer 92 percent to Section A of the State School
Fund. The Superintendent shall allocate the funds transferred
pursuant to this paragraph in the following priority order: 
   (A) An amount not to exceed two hundred million dollars
($200,000,000) for the purposes of revenue limit equalization in a
manner consistent with Section 42238.49 for the first fiscal year in
which funds are transferred pursuant to this paragraph. 

   (B) 
    (A)  Such amounts as necessary to  reduce the
revenue limit deficit factors set forth in Sections 2558.46 and
42238.146 until the deficit factors are reduced to zero 
implement the local control funding formula pursuant to Section
42238.02, as implemented by Section 42238.03, and the county local
control funding formula, pursuant to Section 2575  . 
   (C) 
    (B)  Any remaining amounts transferred pursuant to this
paragraph shall be allocated  as an equal increase per unit
of average daily attendance in general purpose apportionments for
purposes of Sections 2558, 42238, and 47633   pursuant
to Sections 2575 and 42238.02, as implemented by Section 42238.03
 .
   (2) Of the amount determined pursuant to subdivision (a), the
Controller shall transfer 8 percent to Section B of the State School
Fund. The Chancellor of the Community Colleges shall allocate the
funds transferred pursuant to this paragraph in equal amounts for the
following purposes:
   (A) For purposes of career and technical education pursuant to
Chapter 352 of the Statutes of 2005.
   (B) As a proportionate increase in general purpose apportionments
for community college districts.
   (d) For purposes of determining the amount required pursuant to
paragraph (2) or (3), as applicable, of subdivision (b) of Section 8
of Article XVI of the California Constitution for the following
fiscal year, all amounts transferred in the prior fiscal year
pursuant to this section shall be deemed allocations to school
districts and community college districts from General Fund proceeds
of taxes appropriated pursuant to Article XIII B for that prior
fiscal year.
   (e) The sum of the amounts transferred pursuant to this section
plus the sum of the amounts of the maintenance factor certified
pursuant to Section 41207.2 that is allocated pursuant to subdivision
(e) of Section 8 of Article XVI of the California Constitution shall
not exceed the total amount of eleven billion two hundred twelve
million nine hundred nine thousand dollars ($11,212,909,000) less any
maintenance factor amount that is allocated for the 2009-10 fiscal
year.
   SEC. 40.    Section 14004 of the   Education
Code   is repealed.  
   14004.  In addition to all other funds appropriated and
transferred to Section A of the State School Fund, the Controller
shall annually transfer from the General Fund to Section A of this
State School Fund for apportionment during the fiscal year a total
amount per pupil in average daily attendance during the preceding
fiscal year credited to all elementary, high, and unified school
districts and to all county superintendents of schools in the state
as certified by the Superintendent of Public Instruction of fourteen
cents ($0.14). 
   SEC. 41.    Section 14022.3 of the  
Education Code   is amended to read: 
   14022.3.  (a) For purposes of calculating "increases in enrollment"
pursuant to paragraph (2) or (3) of subdivision (b) of Section 8 of
Article XVI of the California Constitution, the term "enrollment" for
school districts, community college districts, and state agencies
providing direct elementary and secondary level instructional
services means the sum of the following:
   (1) Second principal apportionment regular average daily
attendance for kindergarten and grades 1 to 12, inclusive, as defined
in subdivision (b) of Section  42238.5,  
42238.05,  and as adjusted for any average daily attendance
audit findings.
   (2) Annual average daily attendance for county offices of
education, as calculated pursuant to subdivision (c) of Section
41601, and as adjusted for any average daily attendance audit
findings.
   (b) Any determination or computation of enrollment for purposes of
this section shall be based upon actual data from prior years. For
the next succeeding year, any determination or computation of
enrollment for purposes of this section shall be the estimated
enrollment, adjusted as actual data become available.
   SEC. 42.    Section   14022.5 of the 
 Education Code   , as added by Section 2 of Chapter 82
of the Statutes of 1989, is repealed.  
   14022.5.  (a) For purposes of Section 8.5 of Article XVI of the
California Constitution, the term "enrollment" shall have the
following meaning for school districts, community college districts,
and state agencies providing direct elementary and secondary level
instructional services:
   (1) In school districts:
   (A) The average daily attendance of each school district reported
for the second principal apportionment pursuant to Section 41601.
   (B) The annual average daily attendance for adult education
programs and classes, as determined under subdivision (d) of Section
41601.
   (C) The annual average daily attendance for regional occupational
centers and programs, as determined under subdivision (d) of Section
41601.
   (D) The average daily attendance of apprentices enrolled in any
class and reported pursuant to Section 8150, except that one unit of
average daily attendance, for purposes of this paragraph, shall equal
525 hours of apprenticeship instruction in an apprenticeship program
operated pursuant to Chapter 4 (commencing with Section 3070) of
Division 3 of the Labor Code.
   (E) (i) The annual average daily attendance for children enrolled
in a state preschool program under the Child Care and Development
Services Act (Chapter 2 (commencing with Section 8200) of Part 6),
except that one unit of average daily attendance, for purposes of
this clause, shall equal 700 hours of child care or preschool
services.
   (ii) The annual average daily attendance for children enrolled in
any other program under the Child Care and Development Services Act
(Chapter 2 (commencing with Section 8200) of Part 6), except that one
unit of average daily attendance, for purposes of this clause, shall
equal 250 days of child care services. For the purposes of this
clause, less than four hours per day of child care services shall be
defined as one-half day, from four up to six and one-half hours per
day shall be defined as three-fourths day, and six and one-half hours
or more per day shall be defined as one full day.
   (F) The annual average daily attendance of pupils enrolled in
summer school, computed pursuant to Section 42239, except that one
unit of average daily attendance shall equal 700 hours of summer
school instruction in an approved summer school program.
   (G) The annual average daily attendance for pupils enrolled in an
educational program offered by a county office of education, as
determined pursuant to subdivisions (b) and (c) of Section 41601.
   (2) In community college districts:
   (A) The annual average daily attendance of a community college
district computed pursuant to Chapter 4 (commencing with Section
84500) of Part 50, until Section 84750 becomes operative, and
thereafter the number of full-time equivalent students as computed
pursuant to Section 84750.
   (B) The annual average daily attendance for evening community
college programs designated as adult schools pursuant to Section
78401, as determined pursuant to Section 78405.
   (C) The annual average daily attendance of apprentices enrolled in
any class and reported pursuant to Section 8150, except that one
unit of average daily attendance, for purposes of this paragraph,
shall equal 525 hours of apprenticeship instruction in an
apprenticeship program operated pursuant to Chapter 4 (commencing
with Section 3070) of Division 3 of the Labor Code.
   (3) In state agencies that provide direct elementary and secondary
level instructional services:
   (A) The annual average daily attendance equivalent for pupils
enrolled in the State Schools for the Handicapped pursuant to Part 32
(commencing with Section 59000).
   (B) The annual average daily attendance equivalent for pupils
attending an educational program administered by the Department of
the Youth Authority pursuant to Article 6 (commencing with Section
1120) and Article 10 (commencing with Section 1250) of Part 1 of
Division 2 of Chapter 3 of the Welfare and Institutions Code.
   (C) The annual average daily attendance equivalent for pupils in
the state hospitals operated by the State Department of Developmental
Services pursuant to Chapter 8 (commencing with Section 56850) of
Part 30.
   (b) Any determination or computation of enrollment for purposes of
this section shall be based upon actual data from prior years. For
the next succeeding year, any determination or computation of
enrollment for purposes of this section shall be the estimated
enrollment, adjusted as actual data become available.
   (c) This section shall remain in effect only until July 1, 1990,
and as of that date is repealed, unless Senate Constitutional
Amendment No. 1 is ratified by the voters at the statewide election
to be held on June 5, 1990. 
   SEC. 43.    Section   14022.5 of the 
 Education Code   , as amended by Section 1 o  
f Chapter 92 of the Statutes of 1989, is amended to read: 
   14022.5.  (a) For purposes of Section 8.5 of Article XVI of the
California Constitution, the term "enrollment" shall have the
following meaning for school districts, community college districts,
and state agencies providing direct elementary and secondary level
instructional services:
   (1) In school districts:
   (A) The average daily attendance of each school district reported
for the second principal apportionment pursuant to Section 41601.

   (B) The annual average daily attendance for adult education
programs and classes, as determined under subdivision (d) of Section
41601.  
   (C) The annual average daily attendance for regional occupational
centers and programs, as determined under subdivision (d) of Section
41601.  
   (D) The average daily attendance of apprentices enrolled in any
class and reported pursuant to Section 8150, except that one unit of
average daily attendance, for purposes of this paragraph, shall equal
525 hours of apprenticeship instruction in an apprenticeship program
operated pursuant to Chapter 4 (commencing with Section 3070) of
Division 3 of the Labor Code.  
   (E) 
    (B)  (i) The annual average daily attendance for
children enrolled in a state preschool program under the Child Care
and Development Services Act (Chapter 2 (commencing with Section
8200) of Part 6), except that one unit of average daily attendance,
for purposes of this clause, shall equal 700 hours of preschool
services.
   (ii) The annual average daily attendance for children enrolled in
any other program under the Child Care and Development Services Act
(Chapter 2 (commencing with Section 8200) of Part 6), except that one
unit of average daily attendance, for purposes of this clause, shall
equal 250 days of services. For  the  purposes of
this clause, less than four hours per day of services shall be
defined as one-half day, from four up to six and one-half hours per
day shall be defined as three-fourths day, and six and one-half hours
or more per day shall be defined as one full day. 
   (F) The annual average daily attendance of pupils enrolled in
summer school, computed pursuant to Section 42239, except that one
unit of average daily attendance shall equal 700 hours of summer
school instruction in an approved summer school program. 

   (G) 
    (C)  The annual average daily attendance for pupils
enrolled in an educational program offered by a county office of
education, as determined pursuant to subdivisions (b) and (c) of
Section 41601.
   (2) In community college districts:
   (A) The annual average daily attendance of a community college
district computed pursuant to Chapter 4 (commencing with Section
84500) of Part 50  of Division 7 of Title 3  , until Section
 84750   84750.5  becomes operative, and
thereafter the number of full-time equivalent students as computed
pursuant to Section  84750   84750.5  .
   (B) The annual average daily attendance for evening community
college programs designated as adult schools pursuant to Section
78401  , as determined pursuant to Section 78405  .
   (C) The annual average daily attendance of apprentices enrolled in
any class  and reported pursuant to Section 8150  ,
except that one unit of average daily attendance, for purposes of
this paragraph, shall equal 525 hours of apprenticeship instruction
in an apprenticeship program operated pursuant to Chapter 4
(commencing with Section 3070) of Division 3 of the Labor Code.
   (3) In state agencies that provide direct elementary and secondary
level instructional services:
   (A) The annual average daily attendance equivalent for pupils
enrolled in the State Schools for the Handicapped pursuant to Part 32
(commencing with Section 59000)  of Division 4 of Title 2 
.
   (B) The annual average daily attendance equivalent for pupils
attending an educational program administered by the Department of
the Youth Authority pursuant to Article 6 (commencing with Section
1120) and Article 10 (commencing with Section 1250) of Part 1 of
Division 2 of Chapter 3 of the Welfare and Institutions Code.
   (C) The annual average daily attendance equivalent for pupils in
the state hospitals operated by the State Department of Developmental
Services pursuant to Chapter 8 (commencing with Section 56850) of
Part 30  of Division 4 of Title 2  .
   (b) Any determination or computation of enrollment for purposes of
this section shall be based upon actual data from prior years. For
the next succeeding year, any determination or computation of
enrollment for purposes of this section shall be the estimated
enrollment, adjusted as actual data become available. 
   (c) This section shall remain in effect only until July 1, 1990,
and as of that date is repealed, unless Senate Constitutional
Amendment No. 1 is ratified by the voters at the statewide election
to be held on June 5, 1990. 
   SEC. 44.    Section 14035 of the   Education
Code   is repealed.  
   14035.  (a) The county school service fund contingency account is
hereby established in the General Fund. In each fiscal year the
amount credited to the account shall be one hundred thousand dollars
($100,000). Notwithstanding any provision of Section 14002 to the
contrary, the amount to be credited to the county school service fund
contingency account each fiscal year shall not be transferred from
the General Fund as required or authorized to be transferred by
Section 14002, but the amounts required or authorized to be
transferred by Section 14002 shall be reduced by the amount to be
credited to the contingency account and shall remain in the General
Fund to the credit of the contingency account.
   (b) The moneys in the General Fund to the credit of the
contingency account shall be transferred by the Controller to the
State School Fund in amounts as are certified from time to time by
the Superintendent of Public Instruction to be necessary to meet
actual costs to reimburse county superintendents of schools for
expenses incurred in providing emergency education to pupils and
making financial grants to school districts pursuant to Section 1602,
to reimburse county superintendents of schools for the actual and
necessary travel expenses incurred in connection with cooperative
county publication projects by the county superintendent of schools
or members of his or her staff, and to reimburse county
superintendents of schools for expenses incurred in making emergency
financial grants to school districts.
   (c) The amount credited, pursuant to this section, in each fiscal
year to the county school service fund contingency account in the
General Fund shall be reduced by the amount of the balance remaining
to the account on June 30 of the preceding fiscal year and an equal
reduction shall be made in the amount of the reduction in the amounts
required or authorized to be transferred under Section 14002 in
                                      accordance with this section.

   SEC. 45.    Section 14041 of the   Education
Code   is amended to read: 
   14041.  (a) The Controller shall draw warrants on the State
Treasury in favor of the county treasurer of each county in each
month of each year in the amounts and manner prescribed in this
section so as to provide in each warrant a portion of the total
amount certified by the Superintendent as apportioned under the
provisions of Sections 41330 to 41343, inclusive, and Chapter 4
(commencing with Section 41600) and Chapter 5 (commencing with
Section 41760.2) and Article 2 (commencing with Section 
42238)   42238.02)  of Chapter 7 of Part 24 of
Division 3 of Title 2, during the fiscal year from the State School
Fund to the school districts under the jurisdiction of the county
superintendent of schools of the county, to the county school service
fund, and to the county school tuition fund of the county.
   (1) Warrants for amounts allowed to county school service funds
under subdivisions (a) and (b) of Section 14054 shall be for amounts
equal to 5 percent in July, 5 percent in August, and 9 percent in
each remaining month of the fiscal year of the amounts certified by
the Superintendent as a part of the advance apportionment.
   (2) Warrants for amounts apportioned to school districts and
county school service funds for classes maintained by county
superintendents of schools and to the county school tuition funds
shall be for amounts equal to 5 percent in July, 5 percent in August,
and 9 percent in September, October, November, December, and
January, of the amounts certified by the Superintendent as a part of
the advance apportionment.
   (3) Warrants in the months of February to May, inclusive, shall be
for amounts equal to one-fifth of the difference between the amounts
certified by the Superintendent for school districts and county
school service funds for classes maintained by county superintendents
of schools and county school tuition funds as the first principal
apportionment and the amounts required by paragraph (2).
   (4) Warrants for the month of June shall be for amounts equal to
the difference between the amounts certified by the Superintendent
for school districts and county school service funds for classes
maintained by county superintendents of schools and county school
tuition funds as the second principal apportionment and the amounts
required by paragraphs (2) and (3).
   (5) Warrants in the months of July and August shall include 5
percent of the estimated total amounts of the special purpose
apportionment, as determined by the Superintendent. Warrants in the
months of September to November, inclusive, shall include 9 percent
of the estimated total amounts of the special purpose apportionment,
as determined by the Superintendent. Warrants in December shall
include 9 percent of the amounts certified by the Superintendent as
the special purpose apportionment, as adjusted, if necessary, to
correct excesses or deficiencies in the estimates made for purposes
of the warrants in the months of September to November, inclusive. An
additional 9 percent of the amounts of the special purpose
apportionment shall be included in the warrants for the months from
January to June, inclusive.
   (6) Warrants in June shall include the total amounts certified by
the Superintendent as the final apportionment.
   (7) Notwithstanding paragraph (2) to the contrary, for school
districts that reported less than 5,000 units of average daily
attendance in the 1979-80 fiscal year and that received 39 percent or
more, but less than 75 percent, of their total revenue limits from
local property taxes in that fiscal year, warrants for amounts
apportioned to the school districts shall be for amounts equal to 15
percent in July, August, September, and October; zero percent in
November and December; and 6 percent in January of the amounts
certified by the Superintendent as a part of the advance
apportionment. Warrants for amounts apportioned to the school
districts for the months of February to May, inclusive, shall be in
accordance with paragraph (3), and for the month of June, shall be in
accordance with paragraph (4).
   (8) Notwithstanding paragraph (2) or (7) to the contrary, for
school districts which reported less than 5,000 units of average
daily attendance in the 1979-80 fiscal year and which received 75
percent or more of their total revenue limits from local property
taxes in that fiscal year, warrants for amounts apportioned to the
school districts shall be for amounts equal to 15 percent in July; 30
percent in August and September; 15 percent in October; zero percent
in November and December; 6 percent in January; and zero percent in
February, March, April, and May, of the amounts certified by the
Superintendent as a part of the advance apportionment. Warrants for
the month of June shall be in accordance with paragraph (4).
   (9) (A) Notwithstanding any other law, for the 2012-13 fiscal year
only, for purposes of warrants drawn on the State Treasury pursuant
to this section, the amount certified by the Superintendent as the
advance apportionment and first principal apportionment shall include
the following reduction:
   (i) The Superintendent shall multiply six billion nine hundred
twenty-one million five hundred twenty-two thousand dollars
($6,921,522,000) by the ratio of the revenue limit or charter school
general purposes funding for each county office of education, school
district, or charter school, to the statewide total of revenue limit
and charter school general purpose funding.
   (ii) For each county office of education, school district, or
charter school, the Superintendent shall subtract the amount
calculated in clause (i) from the apportionments calculated pursuant
to Sections 2558, 42238, and 47633  , as those sections read on
June 30, 2013  .
   (B) Notwithstanding any other law, for the 2012-13 fiscal year,
the Superintendent shall delay the second principal apportionment
calculated pursuant to Section 41335 from July 2, 2013, to July 15,
2013, to account for all revenues remitted to school districts and
county offices of education pursuant to subparagraph (B) of paragraph
(3) of subdivision (e) of Section 36 of Article XIII of the
California Constitution. The Superintendent shall ensure that the
second principal apportionment calculated pursuant to Section 41335
accounts for the difference between the amount distributed pursuant
to subparagraph (B) of paragraph (3) of subdivision (e) of Section 36
of Article XIII of the California Constitution and the offsets
listed in subparagraph (A). Nothing in this section shall delay the
payment of warrants to school districts and county offices of
education 10 days before the close of the state's fiscal year
pursuant to subparagraph (B) of paragraph (3) of subdivision (e) of
Section 36 of Article XIII of the California Constitution.
   (10) Notwithstanding paragraph (1), (3), or (7), for the 2012-13
fiscal year only, the Superintendent shall reduce the June warrants
for any amounts received pursuant to Sections 34179.5 and 34179.6 of
the Health and Safety Code. This reduction shall constitute the
entire amount distributed pursuant to Sections 34179.5 and 34179.6 of
the Health and Safety Code and offset pursuant to subparagraph (B)
of paragraph (6) of subdivision (h) of Section 42238, paragraph (6)
of subdivision (c) of Section 2558, and Section 56836.08  , as
those sections read on June 30, 2013  .
   (b) The drawing of the warrants required to be drawn during any
one of the months mentioned may be postponed by the Controller for
not to exceed 30 days, but the total amounts due the several counties
during any fiscal year shall be paid within the fiscal year. The
warrants shall be paid by the Treasurer from the State School Fund
and are not subject to Section 925.6 of the Government Code. 

   (c) This section shall become inoperative on December 15, 2012,
and, as of January 1, 2013, is repealed, only if the Schools and
Local Public Safety Protection Act of 2012 (Attorney General
reference number 12-0009) is not approved by the voters at the
November 6, 2012, statewide general election, or if the provisions of
that act that modify personal income tax rates do not become
operative due to a conflict with another initiative measure that is
approved at the same election and receives a greater number of
affirmative votes. 
   SEC. 46.    Section 14041.1 of the   
 Education Code   is repealed.  
   14041.1.  (a) Except as provided pursuant to subdivision (b),
notwithstanding paragraphs (1) and (2) of subdivision (a) and
subdivision (b) of Section 14041, for the 2008-09 fiscal year only:
   (1) Warrants for amounts allowed to the county school service
funds under subdivisions (a) and (b) of Section 14054 shall be for
amounts equal to 0.9 percent in July, 12 percent in August, 15.1
percent in September, and 8 percent in each remaining month of the
fiscal year of the amounts certified by the Superintendent as a part
of the advance apportionment.
   (2) Warrants for amounts apportioned to school districts and
county school service funds for classes maintained by county
superintendents of schools and to the county school tuition funds
shall be for amounts equal to 0.9 percent in July, 12 percent in
August, 13.1 percent in September, and 8 percent in October,
November, December, and January, of the amounts certified by the
Superintendent as a part of the advance apportionment.
   (b) Notwithstanding subdivision (a) and subject to the approval of
the Director of Finance, the Controller shall issue warrants
pursuant to Section 14041 that include the full amount of the
apportionment payments for the month of July for a local educational
agency for which the county superintendent of schools certifies to
the Superintendent of Public Instruction and to the Director of
Finance on or before May 15, 2008, that the deferral of warrants
pursuant to subdivision (a) will result in qualifying the local
educational agency for an emergency apportionment pursuant to Article
2 (commencing with Section 41320) of Chapter 3 of Part 24 of
Division 3 of Title 2. 
   SEC. 47.    Section 14041.6 of the 
Education Code   is amended to read: 
   14041.6.  (a) Notwithstanding subdivision (a) of Section 14041, or
any other law,  from   for  the 2008-09
fiscal year  to the 2011-12 fiscal year, inclusive, 
warrants for the principal apportionments for the month of February
in the amount of two billion dollars ($2,000,000,000) instead shall
be drawn in July of the same calendar year pursuant to the
certification made pursuant to Section 41339.  Commencing
with the 2012-13 fiscal year, warrants for the principal
apportionments for the month of February in the amount of five
hundred thirty-one million seven hundred twenty thousand dollars
($531,720,000) instead shall be drawn in July of the same calendar
year pursuant to the certification made pursuant to Section 41339.

   (b) Notwithstanding subdivision (a) of Section 14041 or any other
law,  from   for  the 2009-10 fiscal year
 to the 2011-12 fiscal year, inclusive,  warrants
for the principal apportionments  for the month   of
February in the amount of two billion dollars ($2,000,000,000)
instead shall be drawn in July of the same   calendar year,
and warrants  for the month of April in the amount of six
hundred seventy-eight million six hundred eleven thousand dollars
($678,611,000) and for the month of May in the amount of one billion
dollars ($1,000,000,000) instead shall be drawn in August of the same
calendar year pursuant to the certification made pursuant to Section
41339.  Commencing with the 2012-13 fiscal year, warrants
for the principal apportionments for the month of April in the amount
of one hundred seventy-five million seven hundred twenty-eight
thousand dollars ($175,728,000) and for the month of May in the
amount of one billion one hundred seventy-six million seven hundred
one thousand dollars ($1,176,701,000) instead shall be drawn in July
of the same calendar year pursuant to the certification made pursuant
to Section 41339. 
   (c) Notwithstanding subdivision (a) of Section 14041 or any other
law,  commencing with   for  the 2010-11
fiscal year, warrants for the principal apportionments  for the
month of February in the amount of two billion dollars
($2,000,000,000),  for the month of April in the amount of four
hundred nineteen million twenty thousand dollars ($419,020,000), for
the month of May in the amount of eight hundred million dollars
($800,000,000), and for the month of June in the amount of five
hundred million dollars ($500,000,000) instead shall be drawn in July
of the same calendar year  and warrants for the month of April
in the amount of six hundred seventy-eight million six hundred eleven
thousand dollars ($678,611,000) and for the month of May in the
amount of one billion dollars ($1,000,000,000) instead shall be drawn
in August  pursuant to the certification made pursuant to
Section 41339.
   (d) Notwithstanding subdivision (a) of Section 14041 or any other
law,  in   for  the 2011-12 fiscal year,
 warrants for the principal apportionments for the month of
February in the amount of two billion dollars ($2,000,000,000), for
the month of April in the amount of four hundred nineteen million
twenty thousand dollars ($419,020,000), for the month of May in the
amount of eight hundred million dollars ($800,000,000), and for the
month of June in the amount of five hundred million dollars
($500,000,000) instead shall be drawn in July of the same calendar
year and  warrants for  the principal apportionments for
 the month of March in the amount of one billion three
hundred million dollars ($1,300,000,000)  and  
,  for the month of April in the amount of  seven
hundred sixty-three million seven hundred ninety-four thousand
dollars ($763,794,000)   one billion four hundred
forty-two million four hundred  five thousand dollars
($1,442,405,000), and for the month of May in the amount of one
billion dollars ($1,000,000,000)  instead shall be drawn in
August of the same calendar year pursuant to the certification made
pursuant to Section 41339.  Commencing with the 2012-13
fiscal year, warrants for the principal apportionments for the month
of March in the amount of one billion twenty-nine million four
hundred ninety-three thousand dollars ($1,029,493,000) and for the
month of April in the amount of seven hundred sixty-three million
seven hundred ninety-four thousand dollars ($763,794,000) instead
shall be drawn in August of the same calendar year pursuant to the
certification made pursuant to Section 41339.  
   (e) Notwithstanding subdivision (a) of Section 14041, or any other
law, for the 2012-13 fiscal year warrants for the principal
apportionments for the month of February in the amount of five
hundred thirty-one million seven hundred twenty thousand dollars
($531,720,000), for the month of April in the amount of five hundred
ninety-four million seven hundred forty-eight thousand dollars
($594,748,000), for the month of May in the amount of one billion
nine hundred seventy-six million seven hundred one thousand dollars
($1,976,701,000), and for the month of June in the amount of five
hundred million dollars ($500,000,000) instead shall be drawn in July
of the same calendar year and warrants for the month of March in the
amount of one billion twenty-nine million four hundred ninety-three
thousand dollars ($1,029,493,000) and for the month of April in the
amount of seven hundred sixty-three million seven hundred ninety-four
thousand dollars ($763,794,000) instead shall be drawn in August
pursuant to the certification made pursuant to Section 41339. 

   (f) Notwithstanding subdivision (a) of Section 14041, or any other
law, commencing with the 2013-14 fiscal year warrants for the
principal apportionments for the month of April in the amount of
three hundred ninety million nine hundred thirty-nine thousand
dollars ($390,939,000), for the month of May in the amount of one
billion nine hundred seventy-six million seven hundred one thousand
dollars ($1,976,701,000), and for the month of June in the amount of
five hundred million dollars ($500,000,000) instead shall be drawn in
July of the same calendar year and warrants for the month of April
in the amount of seven hundred sixty-three million seven hundred
ninety-four thousand dollars ($763,794,000) instead shall be drawn in
August pursuant to the certification made pursuant to Section 41339.
 
   (g) Notwithstanding subdivision (a) of Section 14041 or any other
law, commencing with the 2013-14 fiscal year, warrants for the
principal apportionments for the month of May in the amount of two
hundred million ($200,000,000) and for the month of June in the
amount of six hundred ninety-nine million four hundred seventy-three
thousand dollars ($699,473,000) instead shall be drawn in July of the
same calendar year pursuant to the certification made pursuant to
Section 41339. The Superintendent shall allocate this deferred amount
and repayment to local educational agencies based on their
proportionate share of funding appropriated to local educational
agencies pursuant to Section 92 of Chapter 38 of the Statutes of
2012.  
   (e) 
    (h)  Except as provided in subdivisions (c) and (e) of
Section 41202, for purposes of making the computations required by
Section 8 of Article XVI of the California Constitution, the warrants
drawn pursuant to subdivisions (a)  , (b), (c), and (d)
  to (g), inclusive,  shall be deemed to be
"General Fund revenues appropriated for school districts," as defined
in subdivision (c) of Section 41202, for the fiscal year in which
the warrants are drawn and included within the "total allocations to
school districts and community college districts from General Fund
proceeds of taxes appropriated pursuant to Article XIII B," as
defined in subdivision (e) of Section 41202, for the fiscal year in
which the warrants are drawn. 
   (f) This section shall become inoperative on December 15, 2012,
and, as of January 1, 2013, is repealed, only if the Schools and
Local Public Safety Protection Act of 2012 (Attorney General
reference number 12-0009) is not approved by the voters at the
November 6, 2012, statewide general election, or if the provisions of
that act that modify personal income tax rates do not become
operative due to a conflict with another initiative measure that is
approved at the same election and receives a greater number of
affirmative votes. 
   SEC. 48.    Section 14041.65 of the   
 Education Code   is repealed.  
   14041.65.  (a) Notwithstanding subdivision (a) of Section 14041.6,
for the 2010-11 fiscal year only, warrants for the principal
apportionments for the month of February in the amount of twenty-four
million seven hundred thousand dollars ($24,700,000) instead shall
be drawn in July of the same calendar year pursuant to the
certification made pursuant to Section 41339.
   (b) Notwithstanding subdivision (a) of Section 14041.6, for the
2010-11 fiscal year only, warrants for the principal apportionments
for the month of February in the amount of one billion four hundred
five million five hundred thousand dollars ($1,405,500,000) instead
shall be drawn in August of the same calendar year pursuant to the
certification made pursuant to Section 41339.
   (c) Notwithstanding subdivision (a) of Section 14041.6, for the
2010-11 fiscal year only, warrants for the principal apportionments
for the month of February in the amount of five hundred sixty-nine
million eight hundred thousand dollars ($569,800,000) instead shall
be drawn in September of the same calendar year pursuant to the
certification made pursuant to Section 41339.
   (d) Notwithstanding subdivision (c) of Section 14041.6, for the
2010-11 fiscal year only, warrants for the principal apportionments
for the month of April in the amount of four hundred nineteen million
twenty thousand dollars ($419,020,000) instead shall be drawn in
September of the same calendar year pursuant to the certification
made pursuant to Section 41339.
   (e) Notwithstanding subdivision (c) of Section 14041.6, for the
2010-11 fiscal year only, warrants for the principal apportionments
for the month of May in the amount of eight hundred million dollars
($800,000,000) instead shall be drawn in September of the same
calendar year pursuant to the certification made pursuant to Section
41339. 
   SEC. 49.    Section 14401.1 of the   
 Education Code   is repealed.  
   14401.1.  Of the amounts appropriated in the items listed in
paragraph (2) of subdivision (a) of Section 42605 that are contained
in the annual Budget Act, payments equal to 5 percent of the total
amount appropriated in those items shall be made for the months of
July and August. Payments for the months of September to June,
inclusive, shall be equal to 9 percent of the total amount
appropriated in those items. 
   SEC. 50.    Section 14501 of the   Education
Code   is amended to read: 
   14501.  (a) As used in this chapter, "financial and compliance
audit" shall be consistent with the definition provided in the
"Standards for Audits of Governmental Organizations, Programs,
Activities, and Functions" promulgated by the Comptroller General of
the United States. Financial and compliance audits conducted under
this chapter shall fulfill federal single audit requirements.
   (b) As used in this chapter, "compliance audit" means an audit
that ascertains and verifies whether or not funds provided through
apportionment, contract, or grant, either federal or state, have been
properly disbursed and expended as required by law or regulation or
both and includes the verification of each of the following: 
   (1) Expenditure of these funds in accordance with the local
control and accountability plan adopted by the governing board of the
school district pursuant to Sections 52060 and 52064 or the county
board of education pursuant to Sections 52062 and 52064. 

   (1) 
    (2)  The reporting requirements for the sufficiency of
textbooks or instructional materials, or both, as defined in Section
60119. 
   (2) 
    (3   )  Teacher misassignments pursuant to
Section 44258.9. 
   (3) 
    (4)  The accuracy of information reported on the School
Accountability Report Card required by Section 33126. The
requirements set forth in paragraphs (1) and (2) and this paragraph
shall be added to the audit guide requirements pursuant to
subdivision (b) of Section 14502.1.
   SEC. 51.    Section 17005.3 of the   
 Education Code   is amended to read: 
   17005.3.  (a)  Any   A  school district
with an average daily attendance of less than 2,501 pupils may apply
to the board for a loan to cover the project activities of the first
or second phase, as those phases were defined on July 1, 1993, of a
project funded under this chapter. The loan shall not be 
utilized   used  for the purchase of real property
and shall be repaid by the school district either through a
dedication of fees or charges levied pursuant to Section 17620 until
the loan is repaid or upon receiving the project funding at the
construction phase, but, in any event, the loan shall be repaid
within five years from the date on which the board makes the loan. In
addition to the other methods of repayment specified in this
subdivision, the board may also notify the Controller if a school
district is 90 days late in making loan repayments, in which case the
Controller shall reduce the apportionments to which the school
district is otherwise entitled under Section 42238  , as that
section read on June 30, 2013, and Section 42238.02, as implemented
pursuant to Section 42238.03,  as necessary to recover past due
payments and any current payments.
   (b) The board may make loans under this section to the extent that
the board determines that funds are available for that purpose. The
total annual maximum funds that may be loaned under this section is
ten million dollars ($10,000,000) per fiscal year.
   (c) The board may make loans under this section only for those
projects and phases that have met all of the eligibility standards of
the board and receive approval for an apportionment, but for which
apportionment funds are not available. In any event, the amount of
the loan shall not exceed the amount that would have been eligible
for apportionment.
   SEC. 52.    Section 17008.3 of the   
 Education Code   is amended to read: 
   17008.3.  (a) The board may establish a revolving loan account
within the State School Building Lease-Purchase Fund, and may
allocate from the fund to that account those amounts it determines to
be necessary for  the  purposes of this section.
   (b) The board may apportion to  any   a 
school district that submits to the board a statement of its intent
to subsequently file a project application under this chapter, a loan
for the purpose of advance planning and related administrative costs
pursuant to the preparation of that application. The loan amount
shall not exceed 3 percent of the estimated project cost, as
determined pursuant to the building cost standards established
                                      under this chapter.
   (c) If, within a period of 24 months following the receipt of any
loan amounts under this section, the project for which those advance
planning funds were provided has not been found by the board to be
qualified for funding under this chapter, the board shall so notify
the Controller, who shall reduce the apportionments to which the 
school  district is otherwise entitled under Section 42238 
, as that section read on June 30, 2013, and Section 42238.02, as
implemented pursuant to Section 42238.03,  as necessary to repay
the amount of all loans provided under this section, over such
period of time as the board finds to be reasonable. The Controller
shall transfer the amount of all apportionment reductions imposed
under this subdivision to the revolving loan account established
under this section.
   (d) The repayment of loan amounts received under this section by
school districts other than those described under subdivision (c)
shall be accomplished by the withholding, as determined by the board,
of apportionment funds that would be available to the  school
 district for purposes of the project for which the  school
 district received funding approval under this chapter.
   SEC. 53.    Section 17193.5 of the 
Education Code   is amended to read: 
   17193.5.  (a) For purposes of this section, "public credit
provider" means any financial institution or combination of financial
institutions, that consists either solely, or has as a member or
participant, a public retirement system. Notwithstanding any other
law, a public credit provider, in connection with providing credit
enhancement for bonds, notes, certificates of participation, or other
evidences of indebtedness of a participating party, may require the
participating party to agree to the following conditions:
   (1) If a participating party adopts a resolution by a majority
vote of its board to participate under this section, it shall provide
notice to the Controller of that election. The notice shall include
a schedule for the repayment of principal and interest on the bonds,
notes, certificates of participation, or other evidence of
indebtedness and identify the public credit provider that provided
credit enhancement. The notice shall be provided not later than the
date of issuance of the bonds.
   (2) If, for any reason a public credit provider is required to
make principal or interest payments or both pursuant to a credit
enhancement agreement, the public credit provider shall immediately
notify the Controller of that fact and of the amount paid out by the
public credit provider.
   (3) Upon receipt of the notice required by paragraph (2), the
Controller shall make an apportionment to the public credit provider
in the amount of the payments made by the public credit provider for
the purpose of reimbursing the public credit provider for its
expenditures made pursuant to the credit enhancement agreement. The
Controller shall make that apportionment only from moneys designated
for apportionments to a participating party, provided that such
moneys are from one or more of the following:
   (A) Any  revenue limit apportionments  
funding apportioned for purposes of revenue limits or the local
control funding formula pursuant to Section 42238.02, as implemented
by Section 42238.03,  to a school district or county office of
education without regard to the specific funding source of the
apportionment.
   (B) Any general apportionments to a community college district
without regard to the specific funding source of the apportionment.
   (C) Any  charter school block grant apportionments
  funding apportioned for purposes of the charter school
block grant or the local control funding formula pursuant to Section
42238.02, as implemented by Section 42238.03,  to a charter
school without regard to the specific funding source of the
apportionment. 
   (D) Any charter school categorical block grant apportionments to a
charter school without regard to the specific funding source of the
apportionment. 
   (b) The amount apportioned for a participating party pursuant to
this section shall be deemed to be an allocation to the participating
party and shall be included in the computation of allocation, limit,
entitlement, or apportionment for the participating party. The
participating party and its creditors do not have a claim to funds
apportioned or anticipated to be apportioned to the trustee by the
Controller pursuant to paragraph (3) of subdivision (a).
   SEC. 54.    Section 17199.4 of the  
Education Code   is amended to read: 
   17199.4.  (a) Notwithstanding any other law, any participating
party, in connection with securing financing or refinancing of
projects, or working capital pursuant to this chapter, may elect to
guarantee or provide for payment of the bonds and related obligations
in accordance with the following conditions:
   (1) If a participating party adopts a resolution by a majority
vote of its board to participate under this section, it shall provide
notice to the Controller of that election. The notice shall include
a schedule for the repayment of principal and interest on the bonds,
and any other costs necessary or incidental to financing pursuant to
this chapter, and identify a trustee appointed by the participating
party or the authority for purposes of this section. If payment of
all or a portion of the principal and interest on the bond is secured
by a letter of credit or other instrument of direct payment, the
notice may provide for reimbursements to the provider of the
instrument in lieu of payment of that portion of the principal and
interest of the bonds. The notice shall be provided not later than
the date of issuance of the bonds or 60 days before the next payment,
whichever date is later. The participating party shall update the
notice at least annually if there is a change in the required payment
for any reason, including, but not limited to, providing for new or
increased costs necessary or incidental to the financing.
   (2) If, for any reason, the participating party will not make a
payment at the time the payment is required, the participating party
shall notify the trustee of that fact and of the amount of the
deficiency. If the trustee receives this notice from the
participating party, or does not receive any payment by the date that
payment becomes due, the trustee shall immediately communicate that
information to the Controller.
   (3) Upon receipt of the notice required by paragraph (2), the
Controller shall make an apportionment to the trustee on the date
shown in the schedule in the amount of the deficiency for the purpose
of making the required payment. The Controller shall make that
apportionment only from moneys designated for apportionment to a
participating party, provided that such moneys are from one or more
of the following:
   (A) Any  revenue limit apportionments  
funding apportioned for purposes of revenue limits or the local
control funding formula pursuant to Section 42238.02, as implemented
by Section   42238.03,  to a school district or county
office of education without regard to the specific funding source of
the apportionment.
   (B) Any  charter school block grant apportionments
  funding apportioned for purposes of the charter school
block grant or the local control funding formula pursuant to Section
42238.02, as implemented by Section 42238.03,  to a charter
school without regard to the specific funding source of the
apportionment. 
   (C) Any charter school categorical block grant apportionments to a
charter school without regard to the specific funding source of the
apportionment. 
   (4) As an alternative to the procedures set forth in paragraphs
(2) and (3), the participating party may provide a transfer schedule
in its notice to the Controller of its election to participate under
this section. The transfer schedule shall set forth amounts to be
transferred to the trustee and the date for the transfers. The
Controller, subject to the limitation in paragraph (3), shall make
apportionments to the trustee of those amounts on the specified date
for the purpose of making those transfers. The authority may require
a participating party to proceed under this subdivision.
   (b)  The amount apportioned for a participating party pursuant to
this section shall be deemed to be an allocation to the participating
party and shall be included in the computation of allocation, limit,
entitlement, or apportionment for the participating party.
   The participating party and its creditors do not have a claim to
funds apportioned or anticipated to be apportioned to the trustee by
the Controller pursuant to paragraph (3) and (4) of subdivision (a),
or to the funds apportioned to by the Controller to the trustee under
any other provision of this section.
   (c) (1)  Participating parties that elect to participate under
this section shall apply to the authority. The authority shall
consider each of the following priorities in making funds available:
   (A) First priority shall be given to school districts, charter
schools, or county offices of education that apply for funding for
instructional classroom space.
   (B) Second priority shall be given to school districts, charter
schools, or county offices of education that apply for funding of
modernization of instructional classroom space.
   (C) Third priority shall be given to all other eligible costs, as
defined in Section 17173.
   (2) The authority shall prioritize applications at appropriate
intervals.
   (3) A school district electing to participate under this section
that has applied for revenue bond moneys for purposes of joint
venture school facilities construction projects, pursuant to Article
5 (commencing with Section 17060) of Chapter 12, shall not be subject
to the priorities set forth in paragraph (1).
   (d) This section shall not be construed to make the State of
California liable for any payments within the meaning of Section 1 of
Article XVI of the California Constitution or otherwise, except as
expressly provided in this section.
   (e) A school district that has a qualified or negative
certification pursuant to Section 42131, or a county office of
education that has a qualified or negative certification pursuant to
Section 1240, may not participate under this section.
   SEC. 55.    Section 17582 of the   Education
Code   is amended to read: 
   17582.  (a) The governing board of  each   a
 school district may establish a restricted fund to be known as
the "district deferred maintenance fund" for  the purpose
  purposes  of major repair or replacement of
plumbing, heating, air conditioning, electrical, roofing, and floor
systems, the exterior and interior painting of school buildings, the
inspection, sampling, and analysis of building materials to determine
the presence of asbestos-containing materials, the encapsulation or
removal of asbestos-containing materials, the inspection,
identification, sampling, and analysis of building materials to
determine the presence of lead-containing materials, the control,
management, and removal of lead-containing materials, and any other
items of maintenance approved by the State Allocation Board. Funds
deposited in the district deferred maintenance fund may be received
from any source whatsoever, and shall be accounted for separately
from all other funds and accounts and retained in the district
deferred maintenance fund for purposes of this section. The term
"school building" as used in this article includes a facility that a
county office of education is authorized to use pursuant to Article 3
(commencing with Section 17280) of Chapter 3.
   (b) Funds deposited in the district deferred maintenance fund
shall only be expended for maintenance purposes as provided pursuant
to subdivision (a).
   (c) The governing board of each school district shall have
complete control over the funds and earnings of funds once deposited
in the district deferred maintenance fund  , provided that no
funds deposited in the district deferred maintenance fund pursuant
to subdivision (a) or (b) of Section 17584 may be expended by the
governing board for any purpose except those specified in subdivision
(a) of this section  .
   SEC. 56.    Section 17583 of the   Education
Code   is repealed.  
   17583.  Notwithstanding Section 17582, whenever the state funds
provided pursuant to Sections 17584 and 17585 are insufficient to
fully match the local funds deposited in the deferred maintenance
fund, the governing board of each school district may transfer the
excess local funds deposited in that fund to any other expenditure
classifications in other funds of the district. A resolution
providing for the transfer shall be approved by a two-thirds vote of
the governing board members and filed with the county superintendent
of schools and the county auditor. 
   SEC. 57.    Section 17584 of   the 
 Education Code   is repealed.  
   17584.  (a) Each fiscal year, the State Allocation Board shall
apportion, from the State School Deferred Maintenance Fund, to school
districts an amount equal to one dollar ($1) for each one dollar
($1) of local funds up to a maximum of1/2 percent of the district's
second prior fiscal year revenue limit average daily attendance
multiplied by the average, per unit of second prior fiscal year
average daily attendance, of the total expenditures and ending fund
balances of the total general funds and adult education funds for
districts of similar size and type, as defined in subdivision (b) of
Section 42238.4, for the second prior fiscal year, exclusive of any
amounts expended for capital outlay, debt service, or revenues that
are passed through to other local education agencies, to the extent
of funds available.
   (b) In order to be eligible to receive state aid pursuant to
subdivision (a), no district shall be required to budget from local
district funds an amount greater than 1/2 percent of the district's
second prior fiscal year revenue limit average daily attendance,
multiplied by the average, per unit of second prior fiscal year
average daily attendance, of the total expenditures and ending fund
balances of the total general funds and adult education funds for
districts of similar size and type, as defined in subdivision (b) of
Section 42238.4 for the second prior fiscal year, exclusive of any
amounts expended for capital outlay, debt service, or revenues that
are passed through to other local educational agencies. 
   SEC. 58.    Section 17584.1 of the  
Education Code   , as amended by Section 18 of Chapter 7 of
the Statutes of 2011, is repealed.  
   17584.1.  (a) The governing board of a school district shall
discuss proposals and plans for expenditure of funds for the deferred
maintenance of school district facilities at a regularly scheduled
public hearing.
   (b) The purposes of this section are to inform the public
regarding the local decisionmaking process relating to the deferred
maintenance of school facilities and to provide a foundation for
local accountability in that regard.
   (c) This section shall become inoperative on July 1, 2015, and, as
of January 1, 2016, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2016, deletes or
extends the dates on which it becomes inoperative and is repealed.

   SEC. 59.    Section 17584.1 of the  
Education Code   , as amended by Section 19 of Chapter 7 of
the Statutes of 2011, is repealed.  
   17584.1.  (a) The governing board of a school district shall
discuss proposals and plans for expenditure of funds for the deferred
maintenance of school district facilities at a regularly scheduled
public hearing.
   (b) In any fiscal year that the school district does not set aside
0.5 percent of its current-year revenue limit average daily
attendance for deferred maintenance, the governing board of a school
district shall submit a report to the Legislature by March 1 of that
year, with copies to the Superintendent, the state board, the
Department of Finance, and the State Allocation Board.
   (c) The report required pursuant to subdivision (b) shall include
all of the following:
   (1) A schedule of the complete school facilities deferred
maintenance needs of the school district for the current fiscal year,
including a schedule of costs per schoolsite and total costs.
   (2) A detailed description of the school district's spending
priorities for the current fiscal year and an explanation of why
those priorities, or any other considerations, have prevented the
school district from setting aside sufficient local funds so as to
permit it to fully fund its deferred maintenance program and, if
eligible, to participate in the state deferred maintenance funding
program as set forth in Section 17584.
   (3) An explanation of the manner in which the governing board of a
school district plans to meet its current-year facilities deferred
maintenance needs without setting aside the funds set forth in
Section 17584.
   (d) Copies of the report shall be made available at each
schoolsite within the school district, and shall be provided to the
public upon request.
   (e) The purposes of this section are to inform the public
regarding the local decisionmaking process relating to the deferred
maintenance of school facilities and to provide a foundation for
local accountability in that regard.
   (f) This section shall become operative on July 1, 2015. 

   SEC. 60.    Section 17584.2 of the   
 Education Code   is repealed.  
   17584.2.  At the public hearing required pursuant to Section
17584.1, the governing board of the school district shall also
address the use of deferred maintenance funds for the inspection,
identification, sampling, and analysis of building materials to
determine the presence of lead-containing materials and the control,
management, and removal of lead-containing materials. 
   SEC. 61.   Section 17584.3 of the   
 Education Code   is repealed.  
   17584.3.  (a) A priority for use of funds appropriated pursuant to
Section 17584 shall be to ensure that facilities, including, but not
limited to, restroom facilities for pupils, are functional and that
they meet local hygiene standards generally applicable to public
facilities.
   (b) This section does not authorize the use of funds apportioned
pursuant to Section 17584 for regular operational and maintenance
costs of restrooms and other facilities. The funds apportioned
pursuant to Section 17584 may only be used for the deferred
maintenance of those facilities consistent with subdivision (a) of
Section 17582. 
   SEC. 62.   Section 17585 of the   Education
Code   is repealed.  
   17585.  (a) School districts may submit applications to the State
Allocation Board for deferred maintenance funding in addition to the
amounts specified in Section 17584. In order to be eligible for an
additional apportionment, a school district shall do all of the
following:
   (1) Certify that if an additional apportionment is provided, the
district will have matched the additional apportionment amount with
an equal amount of district funds that have not been previously used
as a match for state aid.
   (2) Certify an additional claim of not greater than one-half of 1
percent of the district's current-year revenue limit average daily
attendance, multiplied by the average, per unit of average daily
attendance, of the total general funds and adult education funds
budgeted by districts of similar size and type, as defined in Section
42238.4 for the prior fiscal year, excluding any amounts budgeted
for capital outlay or debt service, but including adult education
funds.
   (3) Certify that any additional funds will be used to meet
deferred maintenance identified in the district's five-year deferred
maintenance plan.
   (b) The State Allocation Board shall establish rules and
regulations regarding the formulas used to apportion additional funds
pursuant to this section.
   (c) It is the intent of the Legislature that state funds for
deferred maintenance be drawn first from excess bond repayments by
school districts, revenues pursuant to subdivision (f) of Section
6217 of the Public Resources Code, and proceeds from existing general
obligation bonds. 
   SEC. 63.    Section 17586 of the   Education
Code   is repealed.  
   17586.  Notwithstanding any limitations imposed as a result of
actions taken by the State Allocation Board pursuant to Section
17462, a school district shall be eligible to receive an
apportionment pursuant to subdivision (b) of Section 17584, if it
meets all of the following criteria:
   (a) There are excess revenues that resulted from the sale of
surplus sites upon which there was no encumbrance to the board.
   (b) The Superintendent of Public Instruction has verified all of
the following:
   (1) The district had a fiscal emergency in any one or both of the
1987-88 and 1988-89 fiscal years.
   (2) The fiscal emergency was caused primarily by required
expenditures.
   (3) The district has taken reasonable steps to address the fiscal
emergency. 
   SEC. 64.    Section 17587 of the   Education
Code   is repealed.  
   17587.  (a) Notwithstanding the limitations of Section 17584, the
State Allocation Board may each year reserve an amount not to exceed
10 percent of the funds transferred from any source to the State
School Deferred Maintenance Fund for apportionments to school
districts, in instances of extreme hardship. The apportionment shall
be in addition to the apportionments made pursuant to Section 17584.
Not less than one-half of all funds made available by this section
shall be apportioned to school districts that had an average daily
attendance, excluding summer session attendance, of less than 2,501
during the prior fiscal year.
   An extreme hardship shall exist in a school district if the State
Allocation Board determines the existence of all of the following:
   (1) That the district has deposited in its deferred maintenance
fund an amount equal to at least 0.5 percent of the total general
funds and adult education funds budgeted by the district for the
fiscal year, exclusive of any amounts budgeted for capital outlay or
debt service.
   (2) That the district has a critical project on its five-year plan
which, if not completed in one year, could result in serious damage
to the remainder of the facility or would result in a serious hazard
to the health and safety of the pupils attending the facility.
   (3) That the total funds deposited by the district and the state
pursuant to Section 17584 are insufficient to complete the project.
   (b) If a determination is made that a hardship exists pursuant to
subdivision (a), the State Allocation Board may increase the
apportionment to a school district by the amount it determines
necessary to complete the critical project.
   (c) Notwithstanding subdivision (a), in any fiscal year in which
the State Allocation Board has apportioned all funding from the State
School Deferred Maintenance Fund for which school districts have
qualified under Section 17584, the board may apportion any amount
remaining in that fund for the purposes of this section.
   (d) This section shall become operative on July 1, 2015. 

   SEC. 65.    Section 17588 of the   Education
Code   is repealed.  
   17588.  As a result of the determination made in Section 17587,
the State Allocation Board may do any of the following:
   (a) Increase the apportionment to an eligible school district by
the amount it determines necessary to complete the critical project,
and require a contribution by the district.
   (b) Waive repayment by the district, in whole or in part.
   (c) Reduce state apportionments pursuant to Section 17584 in
future years to offset the increased apportionment.
   The State Allocation Board shall develop and adopt regulations for
the application of subdivisions (a), (b), and (c). The regulations
may give consideration to a school district's financial resources,
ongoing deferred maintenance needs, and the nature of the project for
which the hardship apportionment is requested.
   The waiver authorized in subdivision (b) may be applied by the
board to any repayment otherwise required by law, regardless of
apportionment date. 
   SEC. 66.    Section 17592 of the   Education
Code   is repealed.  
   17592.  From any moneys in the State School Deferred Maintenance
Fund, the board shall make available to the Director of General
Services such amounts as it determines necessary to provide the
assistance, pursuant to this chapter, required by Section 15504 of
the Government Code. 
          SEC. 67.    Section 17592.74 of the  
  Education Code   is amended to read: 
   17592.74.  Notwithstanding any other law, the funds provided to
school districts from the School Facilities Emergency Repair Account
pursuant to this article for the purpose of emergency repair grants
shall not be  used to do either of the following: 
 deposited into a school district deferred maintenance fund for
purposes established pursuant to Section 17582.  
   (a) Supplant funds provided to local educational agencies for the
deferred maintenance of school facilities pursuant to Sections 17584
and 17587.  
   (b) Be deposited into a school district deferred maintenance fund
for the purposes established pursuant to Section 17582. 
   SEC. 68.    Part 10.7 (commencing with Section 17910)
of Division 1 of Title 1 of the   Education Code  
is repealed. 
   SEC. 69.    Article 3.6 (commencing with Section
32228) of Chapter 2 of Part 19 of Division   1 of Title 1 of
the   Education Code   is repealed. 
   SEC. 70.    Section 32282 of the   Education
Code   is amended to read: 
   32282.  (a) The comprehensive school safety plan shall include,
but not be limited to, both of the following:
   (1) Assessing the current status of school crime committed on
school campuses and at school-related functions.
   (2) Identifying appropriate strategies and programs that will
provide or maintain a high level of school safety and address the
school's procedures for complying with existing laws related to
school safety, which shall include the development of all of the
following:
   (A) Child abuse reporting procedures consistent with Article 2.5
(commencing with Section 11164) of Chapter 2 of Title 1 of Part 4 of
the Penal Code.
   (B) Disaster procedures, routine and emergency, including
adaptations for pupils with disabilities in accordance with the
federal Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12101
et seq.). The disaster procedures shall also include, but not be
limited to, both of the following:
   (i) Establishing an earthquake emergency procedure system in every
public school building having an occupant capacity of 50 or more
pupils or more than one classroom. A  school  district or
county office  of education  may work with the California
Emergency Management Agency and the Seismic Safety Commission to
develop and establish the earthquake emergency procedure system. The
system shall include, but not be limited to, all of the following:
   (I) A school building disaster plan, ready for implementation at
any time, for maintaining the safety and care of pupils and staff.
   (II) A drop procedure whereby each pupil and staff member takes
cover under a table or desk, dropping to his or her knees, with the
head protected by the arms, and the back to the windows. A drop
procedure practice shall be held at least once each school quarter in
elementary schools and at least once a semester in secondary
schools.
   (III) Protective measures to be taken before, during, and
following an earthquake.
   (IV) A program to ensure that pupils and both the certificated and
classified staff are aware of, and properly trained in, the
earthquake emergency procedure system.
   (ii) Establishing a procedure to allow a public agency, including
the American Red Cross, to use school buildings, grounds, and
equipment for mass care and welfare shelters during disasters or
other emergencies affecting the public health and welfare. The
school  district or county office  of education  shall
cooperate with the public agency in furnishing and maintaining the
services as the  school  district or county office  of
education  may deem necessary to meet the needs of the
community.
   (C) Policies pursuant to subdivision (d) of Section 48915 for
pupils who committed an act listed in subdivision (c) of Section
48915 and other school-designated serious acts which would lead to
suspension, expulsion, or mandatory expulsion recommendations
pursuant to Article 1 (commencing with Section 48900) of Chapter 6 of
Part 27 of Division 4 of Title 2.
   (D) Procedures to notify teachers of dangerous pupils pursuant to
Section 49079.
   (E) A discrimination and harassment policy consistent with the
prohibition against discrimination contained in Chapter 2 (commencing
with Section 200) of Part 1.
   (F) The provisions of any schoolwide dress code, pursuant to
Section 35183, that prohibits pupils from wearing "gang-related
apparel," if the school has adopted that type of a dress code. For
those purposes, the comprehensive school safety plan shall define
"gang-related apparel." The definition shall be limited to apparel
that, if worn or displayed on a school campus, reasonably could be
determined to threaten the health and safety of the school
environment. Any schoolwide dress code established pursuant to this
section and Section 35183 shall be enforced on the school campus and
at any school-sponsored activity by the principal of the school or
the person designated by the principal. For purposes of this
paragraph, "gang-related apparel" shall not be considered a protected
form of speech pursuant to Section 48950.
   (G) Procedures for safe ingress and egress of pupils, parents, and
school employees to and from school.
   (H) A safe and orderly environment conducive to learning at the
school.
   (I) The rules and procedures on school discipline adopted pursuant
to Sections 35291 and 35291.5.
   (b) It is the intent of the Legislature that schools develop
comprehensive school safety plans using existing resources, including
the materials and services of the partnership, pursuant to this
chapter. It is also the intent of the Legislature that schools use
the handbook developed and distributed by the School/Law Enforcement
Partnership Program entitled "Safe Schools: A Planning Guide for
Action" in conjunction with developing their plan for school safety.

   (c) Grants to assist schools in implementing their comprehensive
school safety plan shall be made available through the partnership as
authorized by Section 32285.  
   (d) 
    (c)  Each schoolsite council or school safety planning
committee in developing and updating a comprehensive school safety
plan shall, where practical, consult, cooperate, and coordinate with
other schoolsite councils or school safety planning committees.

   (e) 
    (d)  The comprehensive school safety plan may be
evaluated and amended, as needed, by the school safety planning
committee, but shall be evaluated at least once a year, to ensure
that the comprehensive school safety plan is properly implemented. An
updated file of all safety-related plans and materials shall be
readily available for inspection by the public. 
   (f) 
    (e)  As comprehensive school safety plans are reviewed
and updated, the Legislature encourages all plans, to the extent that
resources are available, to include policies and procedures aimed at
the prevention of bullying. 
   (g) 
    (f)  The comprehensive school safety plan, as written
and updated by the schoolsite council or school safety planning
committee, shall be submitted for approval under subdivision (a) of
Section 32288.
   SEC. 71.    Section 32285 of the   Education
Code   is repealed.  
   32285.  (a) The governing board of a school district, on behalf of
one or more schools within the district that have developed a school
safety plan, may apply to the Superintendent of Public Instruction
for a grant to implement school safety plans. The partnership shall
award grants for school safety plans that include, but are not
limited to, the following criteria:
   (1) Assessment of the recent incidence of crime committed on the
school campus.
   (2) Identification of appropriate strategies and programs that
will provide or maintain a high level of school safety.
   (3) Development of an action plan, in conjunction with local law
enforcement agencies, for implementing appropriate safety strategies
and programs, and determining the fiscal impact of executing the
strategies and programs. The action plan shall identify available
resources which will provide for implementation of the plan.
   (b) The Superintendent of Public Instruction shall award grants
pursuant to this section to school districts for the implementation
of individual school safety plans in an amount not to exceed five
thousand dollars ($5,000) for each school. No grant shall be made
unless the school district makes available, for purposes of
implementing the school safety plans, an amount of funds equal to the
amount of the grant. Grants should be awarded through a competitive
process, based upon criteria including, but not limited to, the merit
of the proposal and the need for imposing school safety, based on
school crime rates.
   (c) Any school receiving a grant under this section shall submit
to the Superintendent of Public Instruction verified copies of its
schoolsite crime report annually for three consecutive years
following the receipt of the grant to study the impact of the
implementation of the school safety plan on the incidence of crime on
the campus of the school. 
   SEC. 72.    Section 33127 of the   Education
Code   is amended to read: 
   33127.  (a) The Superintendent  of Public Instruction
 , the Controller, and the Director of the Department of
Finance shall develop, on or before March 1, 1989, standards and
criteria to be reviewed and adopted by the  State Board of
Education,   state board,  and to be used by local
educational agencies in the development of annual budgets and the
management of subsequent expenditures from that budget. During the
development of the standards and criteria, the Superintendent
 of Public Instruction  shall convene a committee
composed of representatives from school districts, county offices of
education, state agencies, the Legislature, and appropriate labor and
professional organizations. The committee may review and comment on
the proposal standards and criteria prior to their adoption. In
addition, the standards and criteria shall be used to monitor the
fiscal stability of local educational agencies as provided for in
Sections 1240.1, 1240.2, 1621, 1623, 33131, 42127, and 42127.1.
   (b) The Superintendent  of Public Instruction  ,
the Controller, and the Director of the Department of Finance shall
update the standards and criteria developed pursuant to subdivision
(a) on or before September 1, 2005. The updated standards and
criteria shall be reviewed and adopted pursuant to the procedure
established by subdivision (a) and are applicable to local
educational agency budgets commencing with the 2006-07 fiscal year
and each fiscal year thereafter. 
   (c) The Superintendent, the Controller, and the Director of the
Department of Finance shall update the standards and criteria
developed pursuant to subdivision (a) on or before January 1, 2014.
Standards and criteria related to the requirements of Article 3.8
(commencing with Section 52060) of Chapter 6.1 of Part 28 of Title 2
shall be included. The updated standards and criteria shall be
reviewed and adopted pursuant to the procedure established by
subdivision (a) and are applicable to local educational agency
budgets commencing with the 2014-15 fiscal year and each fiscal year
thereafter.  
   (c) 
    (d)  After  September 1, 2005,  
January 1, 2014,  to the extent necessary, any revisions or
updates to the standards and criteria shall be developed by the
Superintendent  of Public Instruction  , the
Controller, and the Director of the Department of Finance pursuant
the procedures established by subdivision (a). The revisions or
updates shall specify the fiscal year in which the revisions or
updates are applicable.
   SEC. 73.    Section 35186 of the   Education
Code   is amended to read: 
   35186.  (a) A school district shall use the uniform complaint
process it has adopted as required by Chapter 5.1 (commencing with
Section 4600)  of Division 1  of Title 5 of the California
Code of Regulations, with modifications, as necessary, to help
identify and resolve any deficiencies related to instructional
materials, emergency or urgent facilities conditions that pose a
threat to the health and safety of pupils or staff,  and 
teacher vacancy or misassignment  , and intensive instruction
and services provided pursuant to Section 37254 to pupils who have
not passed one or both parts of the high school exit examination
after the completion of grade 12  .
   (1) A complaint may be filed anonymously. A complainant who
identifies himself or herself is entitled to a response if he or she
indicates that a response is requested. A complaint form shall
include a space to mark to indicate whether a response is requested.
If Section 48985 is otherwise applicable, the response, if requested,
and report shall be written in English and the primary language in
which the complaint was filed. All complaints and responses are
public records.
   (2) The complaint form shall specify the location for filing a
complaint. A complainant may add as much text to explain the
complaint as he or she wishes.
   (3) Except as provided pursuant to paragraph (4), a complaint
shall be filed with the principal of the school or his or her
designee. A complaint about problems beyond the authority of the
school principal shall be forwarded in a timely manner but not to
exceed 10 working days to the appropriate school district official
for resolution. 
   (4) A complaint regarding any deficiencies related to intensive
instruction and services provided pursuant to Section 37254 to pupils
who have not passed one or both parts of the high school exit
examination after the completion of grade 12 shall be submitted to
the district official designated by the district superintendent. A
complaint may be filed at the school district office, or it may be
filed at the schoolsite and shall be immediately forwarded to the
designee of the district superintendent. 
   (b) The principal or the designee of the district superintendent,
as applicable, shall make all reasonable efforts to investigate any
problem within his or her authority. The principal or designee of the
district superintendent shall remedy a valid complaint within a
reasonable time period but not to exceed 30 working days from the
date the complaint was received. The principal or designee of the
district superintendent shall report to the complainant the
resolution of the complaint within 45 working days of the initial
filing. If the principal makes this report, the principal shall also
report the same information in the same timeframe to the designee of
the district superintendent.
   (c) A complainant not satisfied with the resolution of the
principal or the designee of the district superintendent has the
right to describe the complaint to the governing board of the school
district at a regularly scheduled hearing of the governing board 
of the school   district  . As to complaints involving
a condition of a facility that poses an emergency or urgent threat,
as defined in paragraph (1) of subdivision (c) of Section 17592.72, a
complainant who is not satisfied with the resolution proffered by
the principal or the designee of the district superintendent has the
right to file an appeal to the Superintendent, who shall provide a
written report to the state board describing the basis for the
complaint and, as appropriate, a proposed remedy for the issue
described in the complaint.
   (d) A school district shall report summarized data on the nature
and resolution of all complaints on a quarterly basis to the county
superintendent of schools and the governing board of the school
district. The summaries shall be publicly reported on a quarterly
basis at a regularly scheduled meeting of the governing board of the
school district. The report shall include the number of complaints by
general subject area with the number of resolved and unresolved
complaints. The complaints and written responses shall be available
as public records.
   (e) The procedure required pursuant to this section is intended to
address all of the following:
   (1) A complaint related to instructional materials as follows:
   (A) A pupil, including an English learner, does not have
standards-aligned textbooks or instructional materials or
state-adopted or district-adopted textbooks or other required
instructional material to use in class.
   (B) A pupil does not have access to instructional materials to use
at home or after school.
   (C) Textbooks or instructional materials are in poor or unusable
condition, have missing pages, or are unreadable due to damage.
   (2) A complaint related to teacher vacancy or misassignment as
follows:
   (A) A semester begins and a teacher vacancy exists.
   (B) A teacher who lacks credentials or training to teach English
learners is assigned to teach a class with more than 20-percent
English learner pupils in the class. This subparagraph does not
relieve a school district from complying with state or federal law
regarding teachers of English learners.
   (C) A teacher is assigned to teach a class for which the teacher
lacks subject matter competency.
   (3) A complaint related to the condition of facilities that pose
an emergency or urgent threat to the health or safety of pupils or
staff as defined in paragraph (1) of subdivision (c) of Section
17592.72 and any other emergency conditions the school district
determines appropriate and the requirements established pursuant to
subdivision (a) of Section 35292.5. 
   (4) A complaint related to the provision of intensive instruction
and services pursuant to paragraphs (4) and (5) of subdivision (d) of
Section 37254. 
   (f) In order to identify appropriate subjects of complaint, a
notice shall be posted in each classroom in each school in the school
district notifying parents, guardians, pupils, and teachers of the
following:
   (1) There should be sufficient textbooks and instructional
materials. For there to be sufficient textbooks and instructional
materials each pupil, including English learners, must have a
textbook or instructional materials, or both, to use in class and to
take home.
   (2) School facilities must be clean, safe, and maintained in good
repair.
   (3) There should be no teacher vacancies or misassignments as
defined in paragraphs (2) and (3) of subdivision (h). 
   (4) Pupils who have not passed the high school exit examination by
the end of grade 12 are entitled to receive intensive instruction
and services for up to two consecutive academic years after
completion of grade 12 or until the pupil has passed both parts of
the high school exit examination, whichever comes first, pursuant to
paragraphs (4) and (5) of subdivision (d) of Section 37254. The
information in this paragraph, which is to be included in the notice
required pursuant to this subdivision, shall only be included in
notices posted in classrooms in schools with grades 10 to 12,
inclusive.  
   (5) 
    (4)  The location at which to obtain a form to file a
complaint in case of a shortage. Posting a notice downloadable from
the Internet Web site of the department shall satisfy this
requirement.
   (g) A local educational agency shall establish local policies and
procedures, post notices, and implement this section on or before
January 1, 2005.
   (h) For purposes of this section, the following definitions apply:

   (1) "Good repair" has the same meaning as specified in subdivision
(d) of Section 17002.
   (2) "Misassignment" means the placement of a certificated employee
in a teaching or services position for which the employee does not
hold a legally recognized certificate or credential or the placement
of a certificated employee in a teaching or services position that
the employee is not otherwise authorized by statute to hold.
   (3) "Teacher vacancy" means a position to which a single
designated certificated employee has not been assigned at the
beginning of the year for an entire year or, if the position is for a
one-semester course, a position to which a single designated
certificated employee has not been assigned at the beginning of a
semester for an entire semester.
   SEC. 74.    Section 35292.5 of the   
 Education Code   is amended to read: 
   35292.5.  (a) Every public and private school maintaining any
combination of classes from kindergarten to grade 12, inclusive,
shall comply with all of the following:
   (1) Every restroom shall at all times be maintained and cleaned
regularly, fully operational and stocked at all times with toilet
paper, soap, and paper towels or functional hand dryers.
   (2) The school shall keep all restrooms open during school hours
when pupils are not in classes, and shall keep a sufficient number of
restrooms open during school hours when pupils are in classes.
   (b) Notwithstanding subdivision (a), a school may temporarily
close  any   a  restroom as necessary for
pupil safety or as necessary to repair the facility. 
   (c) Any school district that operates a public school that is in
violation of this section as determined by the State Allocation
Board, is ineligible for state deferred maintenance fund matching
apportionments pursuant to Section 17584 if the school district has
not corrected the violation within 30 days after receipt of a written
notice of the violation from the board. Prior to determining that
the school district is ineligible, the board shall provide the school
district with a reasonable opportunity to cure the violation. The
board shall notify the Superintendent of Public Instruction regarding
a school district found to be in violation of this section. The
Superintendent of Public Instruction shall notify the Controller to
withhold apportionments otherwise due the school district under
Section 17584. 
   SEC. 75.    Article 10.4 (commencing with Section
35294.10) of Chapter 2 of Part 21 of   Division 3 of Title 2
of the   Education Code   is repealed. 
   SEC. 76.    Section 35735 of the   Education
Code   is amended to read: 
   35735.  (a) Each proposal for the reorganization of school
districts shall include a computation of the  base revenue
limit   current and projected local control funding
formula allocation pursuant to Section 42238.02, as implemented by
Section 42238.03,  per unit of average daily attendance for the
 school  districts. That computation shall be an integral
part of the proposal and shall not be considered separately from the
proposal. The computation of the  base revenue limit
  local control funding formula allocation pursuant to
Section 42238.02, as implemented by Section 42238.03,  for the
newly organized school districts shall be based on the current
information available for each affected school district for the
second principal apportionment period for the fiscal year 
two years prior to   before  the fiscal year in
which the reorganization is to become effective  , unless
subdivision (f) applies, in which case the computation for the newly
organized school districts shall be based on the local control
funding formula grant pursuant to Section 42238.02, as implemented by
Section 42238.03  .  The computation of any adjustments
for employee salaries and benefits shall be based on information
from the fiscal year two years prior to the fiscal year in which the
reorganization is to become effective.  For  the
 purposes of this article "affected school district" means a
school district affected by a reorganization because all or a
portion of its average daily attendance is to be included in the
newly organized school districts.
   (b) The county superintendent of schools shall compute the
 base revenue limit   local control funding
formula allocation pursuant to Section 42238.02, as implemented by
Section 42238.03,  per unit of average daily attendance pursuant
to Section 35735.1 for a school district involved in an action to
reorganize and in an action to transfer territory.
   (c) The  State Department of Education  
department  shall use information provided pursuant to
subdivision (a) by the county superintendent of schools in each
county that has a school district affected by an action to unify or
by an appeal of a transfer of territory to compute the base
revenue limit   local control funding formula allocation
pursuant to Section 42238.02, as implemented by Section 42238.03,
 per unit of average daily attendance for a newly organized
school district pursuant to Section 35735.1.
   (d) This section shall  not   only 
apply to any reorganization proposal approved by the  State
Board of Education prior to January 1, 1995   state
board subsequent to July 1, 2013  .
   (e) Any costs incurred by the county superintendent of schools in
preparing reports pursuant to this section  or Section
35735.1 or 35735.2  may be billed to the affected school
districts on a proportionate basis. 
   (f) Upon a determination that all school districts or charter
schools equal or exceed the local control funding formula target
computed pursuant to Section 42238.02 as determined by the
calculation of a zero difference pursuant to paragraph (1) of
subdivision (b) of Section 42238.03 for all school districts and
charter schools, a reorganizing school district shall compute a per
unit of average daily attendance funding level pursuant to the local
control funding formula pursuant to Section 42238.02. 
   SEC. 77.    Section 35735.1 of the   
 Education Code   is amended to read: 
   35735.1.  (a) The  base revenue limit   local
control funding formula allocation  per unit of average daily
attendance for newly organized school districts shall be equal to the
total of the                                          amount of
 blended revenue limit   the local control
funding formula allocation pursuant to Section 42238.02, as
implemented by Section 42238.03,  per unit of average daily
attendance of the affected school districts computed pursuant to
paragraph (1)  , the amount based on salaries and benefits of
classified employees computed pursuant to paragraph (2), the amount
based on salaries and benefits of certificated employees calculated
pursuant to paragraph (3), and the amount of the inflation adjustment
calculated pursuant to paragraph (4)  . The following
computations shall be made to determine the  base revenue
limit   local control funding formula allocation
pursuant to Section 42238.02, as implemented by Section 42238.03,
 per unit of average daily attendance for the newly organized
school districts:
   (1) Perform the following computation to arrive at the blended
 revenue limit:   local control funding formula
pursuant to Section 42238.02, as implemented by Section 42238.03:

   (A) Based on the current information available for each affected
school district for the second principal apportionment period for the
fiscal year  , two years prior to   before
 the fiscal year in which the reorganization is to become
effective, multiply the  base revenue limit  
local control funding formula allocation pursuant to Section
42238.02, as implemented by Section 42238.03,  per unit of
average daily attendance for that school district by the number of
units of average daily attendance for that school district that the
county superintendent of schools determines will be included in the
proposed school district.
   (B) Add the amounts calculated pursuant to subparagraph (A) 
and divide that sum by the number of units of average daily
attendance in the newly organized school districts  . 
   (2) For each affected school district in the newly organized
school districts, the following computation shall be made to
determine the amount to be included in the base revenue limit per
unit of average daily attendance for the newly organized school
districts that is based on the salaries and benefits of full-time
equivalent classified employees:  
   (A) For each of those school districts, make the following
computation to arrive at the highest average amount expended for
salaries and benefits for classified full-time employees by the
districts:  
   (i) Add the amount of all salaries and benefits for classified
employees of the district, including both part-time and full-time
employees.  
   (ii) Divide the amount computed in clause (i) by the total number
of full-time equivalent classified employees in the district.
 
   (B) Among those school districts that will make up 25 percent or
more of the average daily attendance of the resulting newly organized
school district, compare the amounts determined for each of those
school districts pursuant to subparagraph (A) and identify the
highest average amount expended for salaries and benefits for
classified employees.  
   (C) For each of the school districts with salaries and benefits
that are below the highest average amount identified in subparagraph
(B) and that are included, in whole or in part, in the newly
organized district, subtract the amount determined for the district
pursuant to subparagraph (A) from the amount identified pursuant to
subparagraph (B).  
   (D) For each of those school districts, multiply the amount
determined for the district pursuant to subparagraph (C) by the
number of full-time equivalent classified employees employed by the
district, and then multiply by the percentage of the district's
average daily attendance to be included in the new district.
 
   (E) Add the amounts computed for each school district pursuant to
subparagraph (D).  
   (3) For each affected school district in the newly organized
school districts, the following computation shall be made to
determine the amount to be included in the base revenue limit per
unit of average daily attendance for the newly organized school
districts that is based on the salaries and benefits of full-time
equivalent certificated employees:  
   (A) For each of those school districts, make the following
computation to determine the highest average amount expended for
salaries and benefits for certificated full-time employees: 

   (i) Add the amount of all salaries and benefits for certificated
employees, including both part-time and full-time employees.
 
   (ii) Divide the amount determined in clause (i) by the total
number of full-time equivalent certificated employees in the
district.  
   (B) Among those school districts that will make up 25 percent or
more of the average daily attendance of the resulting newly organized
school district, compare the amounts determined for each school
district pursuant to subparagraph (A) and identify the highest
average amount expended for salaries and benefits for certificated
employees.  
   (C) For each of the school districts with salaries and benefits
that are below the highest average amount identified in subparagraph
(B) and that are included, in whole or in part, in the newly
organized school district, subtract the amount determined for the
district pursuant to subparagraph (A) from the amount identified
pursuant to subparagraph (B).  
   (D) For each of those school districts, multiply the amount
determined for the district pursuant to subparagraph (C) by the
number of full-time equivalent certificated employees of the school
district, and then multiply by the percentage of the district's
average daily attendance to be included in the new district.
 
   (E) Add the amount calculated for each school district identified
pursuant to subparagraph (D).  
   (4) The base revenue limit per unit of average daily attendance
shall be adjusted for inflation as follows:  
   (A) Add the amounts determined pursuant to subparagraph (B) of
paragraph (1), subparagraph (E) of paragraph (2), and subparagraph
(E) of paragraph (3), and divide that sum by the number of units of
average daily attendance in the newly organized school districts. The
amount determined pursuant to this subparagraph shall not exceed 110
percent of the blended revenue limit per unit of average daily
attendance calculated pursuant to paragraph (1).  
   (B) (i) Increase the amount determined pursuant to subparagraph
(A) by the amount of the inflation adjustment calculated and used for
apportionment purposes pursuant to Section 42238.1 for the fiscal
year immediately preceding the year in which the reorganization
becomes effective.  
   (ii) With respect to a school district that unifies effective July
1, 1997, and that has an average daily attendance in the 1996-97
fiscal year of more than 1,500 units, increase the amount determined
pursuant to subparagraph (A) by an amount calculated as follows:
 
   (I) For each component district of the newly unified district,
multiply the amount of revenue limit equalization aid per unit of
average daily attendance determined pursuant to Sections 42238.41,
42238.42, and 42238.43, or any other sections of law, for the 1996-97
fiscal year by the 1996-97 second principal apportionment units of
average daily attendance determined pursuant to Section 42238.5 for
that component district.  
   (II) Add the results for all component districts, and divide this
amount by the sum of the 1996-97 second principal apportionment units
of average daily attendance determined pursuant to Section 42238.5
for all component districts.  
   (C) Increase the amount determined pursuant to subparagraph (B) by
the amount of the inflation adjustment calculated and used for
apportionment purposes pursuant to Section 42238.1 for the fiscal
year in which the reorganization becomes effective for all purposes.
 
   (D) Increase the amount determined pursuant to subparagraph (C) by
any other adjustments to the base revenue limit per unit of average
daily attendance that the newly organized school districts would have
been eligible to receive had they been reorganized in the fiscal
year two years prior to the year in which the reorganization becomes
effective for all purposes. 
   (b) The amount determined pursuant to  subparagraph (D) of
paragraph (4) of  subdivision (a) shall be the 
base revenue limit   local control funding formula
allocation pursuant to Section 42238.02, as implemented by Section
42238.03,  per unit of average daily attendance for the newly
organized school districts.
   (c) The  base revenue limit per unit of  average
daily attendance  for the   of a  newly
organized school district  shall not be greater than the
amount set forth in the proposal for reorganization that is approved
by the state board. The Superintendent may make adjustments to base
revenue limit apportionments to a newly organized school district, if
necessary to cause those apportionments to be consistent with this
section.   , for purposes of Sections 42238.02 and
42238.03, shall be the average daily attendance that is attributable
to the area reorganized for the fiscal year before the fiscal year in
which the new school district becomes effective for all purposes.
 
   (d) If the territorial jurisdiction of any school district was
revised pursuant to a unification, consolidation, or other
reorganization, occurring on or before July 1, 1989, that resulted in
a school district having a larger territorial jurisdiction than the
original school district prior to the reorganization, and a
reorganization of school districts occurs on or after the effective
date of the act that added this subdivision that results in a school
district having a territorial jurisdiction that is substantially the
same, as determined by the state board, as the territorial
jurisdiction of that original school district prior to the most
recent reorganization occurring on or before July 1, 1989, the
revenue limit of the school district resulting from the subsequent
reorganization shall be the same, notwithstanding subdivision (b), as
the revenue limit that was determined for the original school
district prior to the most recent reorganization occurring on or
before July 1, 1989.  
   (e) The average daily attendance of a newly organized school
district, for purposes of subdivision (d) of Section 42238, shall be
the average daily attendance that is attributable to the area
reorganized for the fiscal year two years prior to the fiscal year in
which the new district becomes effective for all purposes. 

   (f) For purposes of computing average daily attendance pursuant to
subdivision (d) of Section 42238 for each school district that
exists prior to the reorganization and whose average daily attendance
is directly affected by the reorganization, the following
calculation shall apply for the fiscal year two years prior to the
fiscal year in which the newly reorganized school district becomes
effective:  
   (1) Divide the 1982-83 fiscal year average daily attendance,
computed pursuant to subdivision (d) of Section 42238, by the total
average daily attendance of the district pursuant to Section 42238.5.
 
   (2) Multiply the percentage computed pursuant to paragraph (1) by
the total average daily attendance of the district calculated
pursuant to Section 42238.5, excluding the average daily attendance
of pupils attributable to the area reorganized.  
   (g) This section shall not apply to any reorganization proposal
approved by the state board prior to January 1, 1995.  
   (d) Notwithstanding this section, commencing with the 2013-14
fiscal year, a newly reorganized school district shall receive
state-aid funding pursuant to paragraph (3) of subdivision (b) of
Section 42238.03 of at least the total combined funding amount
received by each school district pursuant to paragraphs (1) and (2)
of subdivision (a) of Section 42238.03 for the fiscal year before the
fiscal year in which the new school district becomes effective for
all purposes.  
   (h) 
    (e)  Notwithstanding any other  provision of
 law, this section shall not be subject to waiver by the
state board pursuant to Section 33050 or by the Superintendent. 
   (f) Upon a determination that all school districts or charter
schools equal or exceed the local control funding formula target
computed pursuant to Section 42238.02 as determined by the
calculation of a zero difference pursuant to paragraph (1) of
subdivision (b) of Section 42238.03, for all school districts and
charter schools, this section shall not apply and the newly
reorganized school district shall receive an allocation equal to the
amount calculated under Section 42238.02 in that fiscal year and
future fiscal years. 
   SEC. 78.    Section 35735.2 of the   
 Education Code   is repealed.  
   35735.2.  (a) If a newly organized school district is unable to
provide the school facilities necessary to provide instructional
services by employees of the district to all of the pupils who are
residents of that district during the fiscal year in which the
reorganization becomes effective for all purposes, the base revenue
limit per unit of average daily attendance of the newly organized
district shall be the blended revenue limit arrived at pursuant to
paragraph (1) of subdivision (a) of Section 35735.1 as adjusted by
the calculations made pursuant to subparagraphs (B), (C), and (D) of
paragraph (4) of subdivision (a) of Section 35735.1 and subdivision
(b) of Section 35735.1. As the newly organized school district
obtains the school facilities necessary to provide instructional
services by employees of the district to all or a portion of those
pupils, the following adjustment shall be made to the base revenue
limit per unit of average daily attendance of the district each
fiscal year subsequent to the fiscal year in which the reorganization
becomes effective until the fiscal year in which the district
provides the facilities necessary to provide those services for all
of those pupils:
   (1) Determine the total number of pupils who are residents of the
district to whom the district was unable to provide school facilities
necessary to provide that instruction during the fiscal year in
which the reorganization becomes effective for all purposes.
   (2) Determine the total number of pupils identified in paragraph
(1) that will attend school in school facilities located in, and
receive instructional services provided by employees of, that
district in the current fiscal year.
   (3) Divide the number determined pursuant to paragraph (2) by the
number determined pursuant to paragraph (1) to determine the
percentage of pupils identified in paragraph (1) who will attend
school in school facilities located in, and receive instructional
services provided by employees of, that district in the current
fiscal year.
   (4) Multiply the numbers determined pursuant to paragraphs (2) and
(3) of subdivision (a) of Section 35735.1 by the percentage
determined pursuant to paragraph (3) for that fiscal year, and total
the amounts. Divide that sum by the number of units of average daily
attendance residing in the proposed district in the current fiscal
year.
   (5) Increase the base revenue limit calculated pursuant to
subdivision (a) of this section for the school district by the amount
arrived at pursuant to paragraph (4) as adjusted by the calculations
pursuant to subparagraphs (B), (C), and (D) of paragraph (4) of
subdivision (a) of Section 35735.1. In no event shall the amount
determined pursuant to this paragraph exceed that amount that would
otherwise be calculated pursuant to subdivision (a) of Section
35735.1.
   (b) For the purposes of making the adjustments described in
subdivision (a), the annual audit of the school district required
pursuant to Section 41020 shall include an audit of the average daily
attendance of pupils by grade level and the numbers of certificated
and classified employees on which the adjustments to the base revenue
limit of the district were made pursuant to paragraphs (1), (2), and
(3) of subdivision (a) of Section 35735.1. Until the newly organized
school district provides the school facilities necessary to provide
instructional services by employees of the district to pupils who are
residents of the district in the manner and in the timeframes set
forth in the proposal to reorganize that was approved by the State
Board of Education, the county superintendent of schools shall, for
each fiscal year, inform the Superintendent of Public Instruction of
the extent to which the district is providing those facilities to
those pupils. The county superintendent of schools may charge the
school district for the cost of preparation of the report. Based on
that information, the superintendent shall make base revenue limit
apportionments to the school district in a manner consistent with
subdivision (a).
   (c) If the newly organized school district is unable to provide
the school facilities necessary to provide instructional services by
employees of the district to all of the pupils who are residents of
the district five years from the date on which the reorganization
becomes effective for all purposes, the State Department of Education
shall recommend to the State Board of Education whether or not the
district should be lapsed pursuant to Article 5 (commencing with
Section 35780). The State Department of Education shall make that
recommendation for each fiscal year until either the school district
provides the school facilities necessary to provide instructional
services by employees of the district to all of the pupils who are
residents of the district or the district is lapsed. Upon
recommendation by the State Department of Education, the State Board
of Education may direct the county committee on school district
organization to lapse the school district according to the procedures
set forth in Article 5 (commencing with Section 35780).
   (d) This section shall not apply to any reorganization proposal
approved by the State Board of Education prior to January 1, 1995.

   SEC. 79.    Section 35735.3 of the   
 Education Code   is repealed.  
   35735.3.  The transfer of seventh and eighth grade pupils between
an elementary school district and a high school district triggers the
recomputation, pursuant to Section 35735.1, of the base revenue
limit per unit of average daily attendance of the district receiving
the 7th and 8th grade pupils, except that the computations described
in paragraphs (2) and (3) of subdivision (a) of Section 35735.1 shall
not apply to a recomputation performed pursuant to this section.

   SEC. 80.    Section 35735.4 of the   
 Education Code   is repealed.  
   35735.4.  Notwithstanding paragraphs (2) and (3) of subdivision
(a) of Section 35735.1, as it read on June 30, 1998, a school
district that was reorganized in the 1998-99 fiscal year, had an
enrollment of fewer than 2,000 pupils in the second fiscal year prior
to the fiscal year of reorganization, was wholly located within a
county of the 20th class, as defined pursuant to Section 28041 of the
Government Code, and for which the criteria specified in paragraph
(2) or (3), or both, of subdivision (a) of Section 35735.1, as it
read on June 30, 1998, would have been met had pupils on
interdistrict transfers in the second fiscal year prior to the fiscal
year of reorganization attended their district of residence, may
include the calculations set forth in paragraphs (2) and (3) of
subdivision (a) of Section 35735.1, as it read on June 30, 1998, in
the calculation of its base revenue limit per unit of average daily
attendance. 
   SEC. 81.    Section 35736 of the   Education
Code   is amended to read: 
   35736.  Plans and recommendations may include a proposal for
dividing the property, other than real property, and obligations of
any school district proposed to be divided between two or more school
districts, or proposed to be partially included in one or more
school districts. As used in this section, "property" includes funds,
cash on hand, and moneys due but uncollected on the date
reorganization becomes effective for all purposes, and state
apportionments based on average daily attendance earned in the year
immediately preceding the date reorganization becomes effective for
all purposes. In providing for this division, the plans and
recommendations may consider the assessed valuation of each portion
of the  school  district, the  revenue limit
  local control funding formula allocation pursuant to
Section 42238.02, as implemented by Section 42238.03,  per pupil
in each  school  district, the number of children of school
age residing in each portion of the  school  district, the
value and location of the school property, and such other matters as
may be deemed pertinent and equitable. Any such proposal shall be an
integral part of the proposal and not a separate proposition.
   SEC. 82.    Section 35736.5 is added to the 
 Education Code   , to read:  
   35736.5.  Sections 35735 to 35736, inclusive, shall only apply to
school district reorganizations undertaken after July 1, 2013.
Reorganizations occurring before July 1, 2013, shall occur pursuant
to Sections 35735 to 35736, inclusive, as those sections read on
January 1, 2013. 
   SEC. 83.    Article 4 (commencing with Section 37252)
of Chapter 2 of P   art 22 of Division 3   of
Title 2 of the   Education Code   is repealed.

   SEC. 84.    Chapter 2.5 (commencing with Section
37300) of Part 22 of Division 3 of Title 2 of the  
Education Code   is repealed. 
   SEC. 85.   Section 37700 of the   Education
Code   is amended to read: 
   37700.  (a) Notwithstanding any other law, the Pacific Unified
School District, the Leggett Valley Unified School District, and the
Reeds Creek Elementary School District may operate one or more
schools in their respective districts on a four-day school week, if
the district complies with the instructional time requirements
specified in Section 37701 and the other requirements of this
chapter.
   (b) If a school district operates one or more schools on a
four-day week pursuant to this section and the program for the school
year provides less than the 180 days of instruction required under
Section 46200,  as it read on January 1, 2013,  the
Superintendent  of Public Instruction  shall reduce
the  base revenue limit   local control funding
formula allocation pursuant to Section 42238.02, as implemented
pursuant to Section 42238.03,  per unit of average daily
attendance for that fiscal year by the amount the school district
would have received for the increase received pursuant to subdivision
(a) of Section 46200,  as it read on January 1, 2013,  as
adjusted in fiscal years subsequent to the 1984-85 fiscal year. If a
school district operates one or more schools on a four-day school
week pursuant to this section and the program provides less than the
minimum instructional minutes required under Section 46201,  as
it read on January 1, 2013,  the Superintendent  of
Public Instruction  shall reduce the  base revenue
limit   local control funding formula allocation
pursuant to Section 42238.02, as implemented pursuant to Section
42238.03,  per unit of average daily attendance for that fiscal
year in which the reduction occurs by the amount the school district
would have received for the increase in the 1987-88 fiscal year base
revenue limit per unit of average daily attendance pursuant to
paragraph (6) of subdivision (b) of Section 42238,  as it read on
June 30, 2013,  as adjusted  in   from
 the 1987-88 fiscal year  and fiscal years thereafter
  to the 2012-13 fiscal year, inclusive, and, commencing
with the 2013-14 fiscal year, pursuant to the local control funding
formula allocation pursuant to Section 42238.02, as implemented
pursuant to Section 42238.03, per unit of average daily attendance
 .
                                                         (c) A school
district with an exclusive bargaining representative may operate a
school on a four-day school week pursuant to this section only if the
 school  district and the representative of each bargaining
unit of  school  district employees mutually agree to that
operation in a memorandum of understanding. 
   (d) Notwithstanding this section, upon a determination that a
school district identified in subdivision (a) equals or exceeds its
local control funding formula target computed pursuant to Section
42238.02 as determined by the calculation of a zero difference
pursuant to paragraph (1) of subdivision (b) of Section 42238.03, the
school district, as a condition of apportionment pursuant to Section
42238.02, as implemented pursuant to Section 42238.03, shall offer
180 days or more of instruction per school year, and meet the minimum
minute requirements pursuant to paragraph (1) of subdivision (a) of
Section 46207. 
   SEC. 86.    Section 37710.3 of the  
Education Code   is amended to read: 
   37710.3.  (a) Beginning in the 2010-11 fiscal year, the Alpaugh
Unified School District may operate one or more schools in the school
district on a four-day school week if the district complies with the
instructional time requirements in Section 37701 and the other
requirements of this chapter. The state board may waive
five-consecutive-day operating requirements for any of the following
programs that operate on a four-day school week pursuant to this
section, provided that the district meets the minimum time
requirement for each program:
   (1) Preschools.
   (2) Before and after school programs.
   (3) Independent study programs.
   (4) Child nutrition and food service programs.
   (5) Community day schools.
   (6) Regional occupational centers or programs.
   (7) Continuation high schools.
   (b) If the school district operates one or more schools on a
four-day school week pursuant to this section, and the program for
the school year provides fewer than the 180 days of instruction
required under Section 46200,  as it read on J   anuary
1, 2013,  the Superintendent shall reduce the  base
revenue limit   local control funding formula allocation
pursuant to Section 42238.02, as implemented pursuant to Section
42238.03,  per unit of average daily attendance for that fiscal
year by the amount the school district would have received for the
increase received pursuant to subdivision (a) of Section 46200, 
as it read on January 1, 2013,  as adjusted in fiscal years
subsequent to the 1984-85 fiscal year. If the school district
operates one or more schools on a four-day school week pursuant to
this section, and the program provides fewer than the minimum
instructional minutes required under Section 46201,  as it read
on January 1, 2013,  the Superintendent shall reduce the
 base revenue limit   local control funding
formula allocation pursuant to Section 42238.02, as implemented
pursuant to Section 42238.03,  per unit of average daily
attendance for that fiscal year in which the reduction occurs by the
amount the school district would have received for the increase in
the base revenue limit per unit of average daily attendance pursuant
to subdivision (a) of Section 46201,  as it read on January 1,
2013,  as adjusted  in   from  the
1987-88 fiscal year  and fiscal years thereafter 
 to the 2012-13 fiscal   year, inclusive, and,
commencing with the 2013-14 fiscal year, pursuant to the local
control funding formula allocation pursuant to Section 42238.02, as
implemented pursuant to Section 42238.03, per unit of average daily
attendance  .
   (c) Notwithstanding Section 37710, if a small school having
between 11 and 99 valid Standardized Testing and Reporting Program
test scores operating on a four-day school week fails to achieve its
Academic Performance Index growth target pursuant to Section 52052
for two consecutive years, the authority of that school to operate on
a four-day school week shall be permanently revoked commencing with
the school year following the second consecutive year the school
failed to achieve its Academic Performance Index growth rate.
   (d) If the school district operates one or more schools on a
four-day school week pursuant to this section, the school district
shall submit a report to the department, the Senate Committee on
Education, and the Assembly Committee on Education on or before
January 15, 2015. The report shall include, but not necessarily be
limited to, information on all of the following:
   (1) Programs the district offered on the fifth schoolday and their
participation rates.
   (2) Whether the four-day school week schedule resulted in any
fiscal savings.
   (3) Impact on overall attendance of the schools operating a
four-day school week.
   (4) Programs for which the state board waived minimum time and
five-consecutive-day requirements and the operational and educational
effects of the programs if they operated at less time than required.

   (5) The impact of the four-day school week on crime statistics,
especially on the day on which school would otherwise be in session.
   (6) Information on the Academic Performance Index, pursuant to
Section 52052, for every year a school in the district operated on a
four-day school week. The information shall include, but not
necessarily be limited to, the base and growth Academic Performance
Index of each school that operated on a four-day school week and
whether that school met the Academic Performance growth targets. 

   (e) Notwithstanding this section, upon a determination that a
school district identified in subdivision (a) equals or exceeds its
local control funding formula target computed pursuant to Section
42238.02 as determined by the calculation of a zero difference
pursuant to paragraph (1) of subdivision (b) of Section 42238.03, the
school district, as a condition of apportionment pursuant to Section
42238.02, as implemented pursuant to Section 42238.03, shall offer
180 days or more of instruction per school year, and meet the minimum
minute requirements pursuant to paragraph (1) of subdivision (a) of
Section 46207.  
   (e) 
    (f)  This section shall remain in effect only until
January 1, 2016, and as of that date is repealed, unless a later
enacted statute, that is enacted before January 1, 2016, deletes or
extends that date.
   SEC. 87.    Section 37710.5 of the  
Education Code   is amended to read: 
   37710.5.  (a) Beginning in the 2009-10 fiscal year, the Potter
Valley Community Unified School District may operate one or more
schools in the school district on a four-day school week if the 
school  district complies with the instructional time
requirements specified in Section 37701 and the other requirements of
this chapter. The  State Board of Education 
state board  may waive five-consecutive-day operating
requirements for any of the following programs that operate on a
four-day week pursuant to this section, provided that the  school
 district meets the minimum time requirement for each program:
   (1) Preschools.
   (2) Before and after school programs.
   (3) Independent study programs.
   (4) Child nutrition and food service programs.
   (5) Community day schools.
   (6) Regional occupational centers or programs.
   (7) Continuation high schools.
   (b) If the school district operates one or more schools on a
four-day week pursuant to this section, and the program for the
school year provides fewer than the 180 days of instruction required
under Section 46200,  as it read on January 1, 2013,  the
Superintendent shall reduce the  base revenue limit 
 local control funding formula allocation pursuant to Section
42238.02, as implemented pursuant to Section 42238.03,  per unit
of average daily attendance for that fiscal year by the amount the
school district would have received for the increase received
pursuant to subdivision (a) of Section 46200,  as it read on
January 1,   2013,  as adjusted in fiscal years
subsequent to the 1984-85 fiscal year. If the school district
operates one or more schools on a four-day school week pursuant to
this section, and the program provides fewer than the minimum
instructional minutes required under Section 46201,  as it read
on January 1, 2013,  the Superintendent shall reduce the
 base revenue limit   local control funding
formula allocation pursuant to Section 42238.02, as implemented
pursuant to Section 42238.03,  per unit of average daily
attendance for that fiscal year in which the reduction occurs by the
amount the school district would have received for the increase in
the base revenue limit per unit of average daily attendance pursuant
to subdivision (a) of Section 46201,  as it read on January 1,
2013,  as adjusted  in   from  the
1987-88 fiscal year  and fiscal years thereafter 
 to the 2012-13 fiscal   year, inclusive, and,
commencing with the 2013-14 fiscal year, pursuant to Section
42238.02, as implemented pursuant to Section 42238.03, per unit of
average daily attendance  .
   (c) If the school district operates one or more schools on a
four-day school week pursuant to this section, the school district
shall submit a report to the department, the Senate Committee on
Education and the Assembly Committee on Education on January 15,
2014. The report shall include, but not necessarily be limited to,
information on the following:
   (1) Programs the district offered on the fifth day and their
participation rates.
   (2) Whether the four-day school week schedule resulted in any
fiscal savings.
   (3) Impact on overall attendance of the schools operating a
four-day school week.
   (4) Programs for which the Superintendent waived minimum time and
five-consecutive-day requirements and the operational and educational
effect of the programs if they operated at less time than required.

   (d) Notwithstanding this section, upon a determination that a
school district identified in subdivision (a) equals or exceeds its
local control funding formula target computed pursuant to Section
42238.02 as determined by the calculation of a zero difference
pursuant to paragraph (1) of subdivision (b) of Section 42238.03, the
school district, as a condition of apportionment pursuant to Section
42238.02, as implemented pursuant to Section 42238.03, shall offer
180 days or more of instruction per school year, and meet the minimum
minute requirements pursuant to paragraph (1) of subdivision (a) of
Section 46207.  
   (d) 
    (e)  This section shall remain in effect only until
January 1, 2015, and as of that date is repealed, unless a later
enacted statute, that is enacted before January 1, 2015, deletes or
extends that date.
   SEC. 88.    Section 38101 of the   Education
Code   is amended to read: 
   38101.  (a) The governing board of a school district may authorize
expenditures from the cafeteria fund or cafeteria account only for
those charges from that fund or account that are defined in the
California School Accounting Manual.
   (b) A food service program shall not be charged more than once for
expenditures for the same service. If a food service program is
being charged for a service as a direct cost, the school district
shall not also allocate that cost as a direct support cost or
indirect cost.
   (c) For purposes of this section, an "indirect cost" shall be
limited to the lesser of the school district's prior year indirect
cost rate as approved by the department or the statewide average
approved indirect cost for the second prior fiscal year.
   (d) Charges to, or transfers from, a food service program shall
indicate when the charge or transfer was made and shall be
accompanied by a written explanation of the purpose of, and basis
for, the expenditure.
   (e) This section does not authorize a school district to charge a
food service program any charges prohibited by state or federal law
or regulation.
   (f) If the department and the Department of Finance concur that a
school district has violated this section, the Superintendent shall
direct that school district to transfer double the amount improperly
transferred to the general fund of the school district from that fund
to the cafeteria fund of the school district or cafeteria account
for the subsequent fiscal year which is then to be used for the
improvement of the food service program of the school district. If
the school district fails to make that transfer as directed, the
Superintendent shall reduce the regular apportionment of the school
district determined pursuant to Section 42238  , as it read on
January 1, 2013, or the local control funding formula allocation
pursuant to Section 42238.02, as implemented pursuant to Section
42238.03,  and increase the child nutrition allowance of the
school district determined pursuant to Section 41350 by double the
amount improperly transferred to the general fund of the school
district and that amount is then to be used for improvement of the
food service program.
   (g) It is the intent of the Legislature in enacting this section
that responsible school district officials be held fully accountable
for the accounting and reporting of food service programs and that
minor and inadvertent instances of noncompliance be resolved in a
fair and equitable manner to the satisfaction of the Superintendent
and the Department of Finance.
   (h) The Superintendent, with the approval of the Department of
Finance, may waive up to the full transfer amount in subdivision (f)
if he or she determines that the noncompliance involved is minor or
inadvertent, or both.
   SEC. 89.    Section 39809.5 of the   
 Education Code   is repealed.  
   39809.5.  (a) The sum of the state aid received and the parent
fees collected in a fiscal year may not exceed actual operating cost
of home-to-school transportation in that fiscal year.
   (b) If excess fees are collected due to errors in estimated costs,
fees shall be reduced in succeeding years.
   (c) The governing board shall certify to the county superintendent
that districts have levied fees in accordance with law, and that
fees have been reduced and excess fee revenue eliminated whenever
excess fees have been charged. 
   SEC. 90.    Article 2 (commencing with Section 39820)
of Chapter 1 of Part 23.5 of Division   3 of Title 2 of the
  Education Code   is repealed. 
   SEC. 91.    Section 41003.3 of the   
 Education Code   is amended to read: 
   41003.3.  (a) Consistent with the provisions of Article 4
(commencing with Section 17455) of Chapter 4 of Part 10.5 of Division
1 of Title 1, from July 1, 2008, to June 30, 2010, inclusive, the
Dixon Unified School District may sell surplus real property
previously used as the school farm on Sievers Road, located five
miles outside of the city and which is not feasible for future school
construction, together with any personal property located thereon,
purchased entirely with local funds. The proceeds of the sale shall
be deposited into the general fund of the school district in order to
reestablish a 3-percent reserve. The remainder of the proceeds from
the sale of the property that are not utilized to reestablish the
3-percent reserve shall be deposited into the capital outlay fund of
the school district.
   (b) In order to expend funds pursuant to subdivision (a), the 
school  district shall meet all of the following conditions:
   (1) The  school  district shall not be eligible for new
construction funding for 10 years from the date that funds are
deposited into the general fund of the school district pursuant to
subdivision (a), except that the  school  district may apply
for new construction funds if both of the following conditions are
met:
   (A) At least five years have elapsed since the date upon which the
sale was executed pursuant to subdivision (a).
   (B) The State Allocation Board determines that the  school
 district has demonstrated enrollment growth or a need for
additional sites or building construction that the  school 
district could not have easily anticipated at the time the sale was
executed pursuant to subdivision (a).
   (2) The governing board of the  school  district shall
complete a governance training program focusing on fiscal management
provided by the County Office Fiscal Crisis and Management Assistance
Team (FCMAT).
   (3) Any remaining funds from the sale of the property shall be
exhausted for capital outlay purposes  prior to any 
 before a  request for modernization funding.
   (4) Notwithstanding any other provision of law, the Dixon Unified
School District, from July 1, 2008, to June 30, 2010, inclusive,
shall not be eligible to receive financial hardship assistance
pursuant to Article 8 (commencing with Section 17075.10) of Chapter
12.5 of Part 10 of Division 1 of Title 1. 
   (5) The district shall not be eligible to receive hardship funding
from the State School Deferred Maintenance Fund pursuant to Section
17587 until all remaining funds from the sale of the property
identified in, and pursuant to, subdivision (a) are exhausted for
deferred maintenance or capital outlay purposes.  
   (6) 
    (5)  The governing board of the  school 
district shall certify all of the following to the State Allocation
Board:
   (A) The  school  district has no major deferred
maintenance requirements that cannot be completed with existing
capital outlay resources.
   (B) The sale of the real property pursuant to this section does
not violate any provisions of a local general obligation bond act.
   (C) The real property sold pursuant to this section is not
suitable to meet any projected school construction need for the next
10 years. 
   (7) 
    (6)  Before exercising the authority granted by this
section, the governing board of the  school  district, at a
regularly scheduled meeting  of that board  , shall
present a plan for expending one-time resources pursuant to this
section. The plan shall identify the source and use of the funds, and
describe how the proposed use of funds, in combination with budget
reductions, will address the  school  district's deficit
spending and restore the ongoing fiscal solvency of the  school
 district. 
   (8) 
    (7)  No later than 10 years after the date of the sale
of surplus property pursuant to subdivision (a), the  school
 district shall deposit into its capital outlay fund an amount
equal to the amount of the proceeds from the sale of the property
that is deposited into the  school  district's general fund
as needed to establish the 3-percent reserve in accordance with
subdivision (a).
   (c) This section shall remain in effect only until January 1,
2021, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2021, deletes or extends
that date.
   SEC. 92.    Section 41012 of the   Education
Code   is amended to read: 
   41012.  For purposes of determining  allowances 
 apportionments  pursuant to  Chapter 8 (commencing
with Section 52200) of Part 28, and  Chapter  3
  5  (commencing with Section 56500) and Chapter
 4   6  (commencing with Section 56600) of
Part 30  of Division 4  , the Superintendent  of
Public Instruction  shall require the use of a uniform cost
accounting procedure, as set forth in the California School
Accounting Manual.
   SEC. 93.    Section 41020 of the   Education
Code   is amended to read: 
   41020.  (a) It is the intent of the Legislature to encourage sound
fiscal management practices among local educational agencies for the
most efficient and effective use of public funds for the education
of children in California by strengthening fiscal accountability at
the  school  district, county, and state levels.
   (b) (1) Not later than the first day of May of each fiscal year,
each county superintendent of schools shall provide for an audit of
all funds under his or her jurisdiction and control and the governing
board of each local educational agency shall either provide for an
audit of the books and accounts of the local educational agency,
including an audit of income and expenditures by source of funds, or
make arrangements with the county superintendent of schools having
jurisdiction over the local educational agency to provide for that
auditing.
   (2) A contract to perform the audit of a local educational agency
that has a disapproved budget or has received a negative
certification on any budget or interim financial report during the
current fiscal year or either of the two preceding fiscal years, or
for which the county superintendent of schools has otherwise
determined that a lack of going concern exists, is not valid unless
approved by the responsible county superintendent of schools and the
governing board.
   (3) If the governing board of a local educational agency has not
provided for an audit of the books and accounts of the local
educational agency by April 1, the county superintendent of schools
having jurisdiction over the local educational agency shall provide
for the audit of each local educational agency.
   (4) An audit conducted pursuant to this section shall comply fully
with the Government Auditing Standards issued by the Comptroller
General of the United States.
   (5) For purposes of this section, "local educational agency" does
not include community colleges.
   (c) Each audit conducted in accordance with this section shall
include all funds of the local educational agency, including the
student body and cafeteria funds and accounts and any other funds
under the control or jurisdiction of the local educational agency.
Each audit shall also include an audit of pupil attendance
procedures.  Each   audit shall include a determination
of whether funds were expended in accordance with a local control and
accountability plan pursuant to Article 3.8 (commencing with Section
52060) of Chapter 6.1 of Part 28 of Division 3. 
   (d) All audit reports for each fiscal year shall be developed and
reported using a format established by the Controller after
consultation with the Superintendent and the Director of Finance.
   (e) (1) The cost of the audits provided for by the county
superintendent of schools shall be paid from the county school
service fund and the county superintendent of schools shall transfer
the pro rata share of the cost chargeable to each  school 
district from  school  district funds.
   (2) The cost of the audit provided for by a governing board shall
be paid from local educational agency funds. The audit of the funds
under the jurisdiction and control of the county superintendent of
schools shall be paid from the county school service fund.
   (f) (1) The audits shall be made by a certified public accountant
or a public accountant, licensed by the California Board of
Accountancy, and selected by the local educational agency, as
applicable, from a directory of certified public accountants and
public accountants deemed by the Controller as qualified to conduct
audits of local educational agencies, which shall be published by the
Controller not later than December 31 of each year.
   (2) Commencing with the 2003-04 fiscal year and except as provided
in subdivision (d) of Section 41320.1, it is unlawful for a public
accounting firm to provide audit services to a local educational
agency if the lead audit partner, or coordinating audit partner,
having primary responsibility for the audit, or the audit partner
responsible for reviewing the audit, has performed audit services for
that local educational agency in each of the six previous fiscal
years. The Education Audits Appeal Panel may waive this requirement
if the panel finds that no otherwise eligible auditor is available to
perform the audit.
   (3) It is the intent of the Legislature that, notwithstanding
paragraph (2), the rotation within public accounting firms conform to
provisions of the federal Sarbanes-Oxley Act of 2002  (P.L.
  (Public   Law  107-204; 15 U.S.C. Sec.
7201 et seq.), and upon release of the report required by the act of
the Comptroller General of the United States addressing the mandatory
rotation of registered public accounting firms, the Legislature
intends to reconsider the provisions of paragraph (2). In determining
which certified public accountants and public accountants shall be
included in the directory, the Controller shall use the following
criteria:
   (A) The certified public accountants or public accountants shall
be in good standing as certified by the Board of Accountancy.
   (B) The certified public accountants or public accountants, as a
result of a quality control review conducted by the Controller
pursuant to Section 14504.2, shall not have been found to have
conducted an audit in a manner constituting noncompliance with
subdivision (a) of Section 14503.
   (g) (1) The auditor's report shall include each of the following:
   (A) A statement that the audit was conducted pursuant to standards
and procedures developed in accordance with Chapter 3 (commencing
with Section 14500) of Part 9 of Division 1 of Title 1.
   (B) A summary of audit exceptions and management improvement
recommendations.
   (C) Each audit of a local educational agency shall include an
evaluation by the auditor on whether there is substantial doubt about
the ability of the local educational agency to continue as a going
concern for a reasonable period of time. This evaluation shall be
based on the Statement  of   on  Auditing
Standards (SAS) No. 59, as issued by the AICPA regarding disclosure
requirements relating to the ability of the entity to continue as a
going concern.
   (2) To the extent possible, a description of correction or plan of
correction shall be incorporated in the audit report, describing the
specific actions that are planned to be taken, or that have been
taken, to correct the problem identified by the auditor. The
descriptions of specific actions to be taken or that have been taken
shall not solely consist of general comments such as "will implement,"
"accepted the recommendation," or "will discuss at a later date."

   (h) Not later than December 15, a report of each local educational
agency audit for the preceding fiscal year shall be filed with the
county superintendent of schools of the county in which the local
educational agency is located, the department, and the Controller.
The Superintendent shall make any adjustments necessary in future
apportionments of all state funds, to correct any audit exceptions
revealed by those audit reports.
   (i) (1) Commencing with the 2002-03 audit of local educational
agencies pursuant to this section and subdivision (d) of Section
41320.1, each county superintendent of schools shall be responsible
for reviewing the audit exceptions contained in an audit of a local
educational agency under his or her jurisdiction related to
attendance, inventory of equipment, internal control, and any
miscellaneous items, and determining whether the exceptions have been
either corrected or an acceptable plan of correction has been
developed.
   (2) Commencing with the 2004-05 audit of local educational
agencies pursuant to this section and subdivision (d) of Section
41320.1, each county superintendent of schools shall include in the
review of audit exceptions performed pursuant to this subdivision
those audit exceptions related to use of instructional materials
program funds, teacher misassignments pursuant to Section 44258.9,
information reported on the school accountability report card
required pursuant to Section 33126 and shall determine whether the
exceptions are either corrected or an acceptable plan of correction
has been developed.
   (j) Upon submission of the final audit report to the governing
board of each local educational agency and subsequent receipt of the
audit by the county superintendent of schools having jurisdiction
over the local educational agency, the county office of education
shall do all of the following:
   (1) Review audit exceptions related to attendance, inventory of
equipment, internal control, and other miscellaneous exceptions.
Attendance exceptions or issues shall include, but not be limited to,
those related to  revenue limits, adult education, 
 local control funding formula allocations pursuant to Section
42238.02, as implemented by Section 42238.03,  and independent
study.
   (2) If a description of the correction or plan of correction has
not been provided as part of the audit required by this section, then
the county superintendent of schools shall notify the local
educational agency and request the governing board of the local
educational agency to provide to the county superintendent of schools
a description of the corrections or plan of correction by March 15.
   (3) Review the description of correction or plan of correction and
determine its adequacy. If the description of the correction or plan
of correction is not adequate, the county superintendent of schools
shall require the local educational agency to resubmit that portion
of its response that is inadequate.
   (k) Each county superintendent of schools shall certify to the
Superintendent and the Controller, not later than May 15, that his or
her staff has reviewed all audits of local educational agencies
under his or her jurisdiction for the prior fiscal year, that all
exceptions that the county superintendent was required to review were
reviewed, and that all of those exceptions, except as otherwise
noted in the certification, have been corrected by the local
educational agency or that an acceptable plan of correction has been
submitted to the county superintendent of schools. In addition, the
county superintendent shall identify, by local educational agency,
any attendance-related audit exception or exceptions involving state
funds, and require the local educational agency to which the audit
exceptions were directed to submit appropriate reporting forms for
processing by the Superintendent.
   (  l  ) In the audit of a local educational agency for a
subsequent year, the auditor shall review the correction or plan or
plans of correction submitted by the local educational agency to
determine if the exceptions have been resolved. If not, the auditor
shall immediately notify the appropriate county office of education
and the department and restate the exception in the audit report.
After receiving that notification, the department shall either
consult with the local educational agency to resolve the exception or
require the county superintendent of schools to follow up with the
local educational agency.
   (m) (1) The Superintendent shall be responsible for ensuring that
local educational agencies have either corrected or developed plans
of correction for any one or more of the following:
   (A) All federal and state compliance audit exceptions identified
in the audit.
   (B) Any exceptions that the county superintendent certifies as of
May 15 have not been corrected.
   (C) Any repeat audit exceptions that are not assigned to a county
superintendent to correct.
   (2) In addition, the Superintendent shall be responsible for
ensuring that county superintendents of schools and each county board
of education that serves as the governing board of a local
educational agency either correct all audit exceptions identified in
the audits of county superintendents of schools and of the local
educational agencies for which the county boards of education serve
as the governing boards or develop acceptable plans of correction for
those exceptions.
   (3) The Superintendent shall report annually to the Controller on
his or her actions to ensure that school districts, county
superintendents of schools, and each county board of education that
serves as the governing board of a school district have either
corrected or developed plans of correction for any of the exceptions
noted pursuant to paragraph (1).
   (n) To facilitate correction of the exceptions identified by the
audits issued pursuant to this section, commencing with 2002-03
audits pursuant to this section, the Controller shall require
auditors to categorize audit exceptions in each audit report in a
manner that will make it clear to both the county superintendent of
schools and the Superintendent which exceptions they are responsible
for ensuring the correction of by a local educational agency. In
addition, the Controller annually shall select a sampling of county
superintendents of schools and perform a followup of the audit
resolution process of those county superintendents of schools and
report the results of that followup to the Superintendent and the
county superintendents of schools that were reviewed.
   (o) County superintendents of schools shall adjust subsequent
local property tax requirements to correct audit exceptions relating
to local educational agency tax rates and tax revenues.
   (p) If a governing board or county superintendent of schools fails
or is unable to make satisfactory arrangements for the audit
pursuant to this section, the Controller shall make arrangements for
the audit and the cost of the audit shall be paid from local
educational agency funds or the county school service fund, as the
case may be. 
   (q) Audits of regional occupational centers and programs are
subject to the provisions of this section.  
   (r) 
    (q)  This section does not authorize examination of, or
reports on, the curriculum used or provided for in any local
educational agency. 
   (s)
    (r)  Notwithstanding any other  provision of
 law, a nonauditing, management, or other consulting service
to be provided to a local educational agency by a certified public
accounting firm while the certified public accounting firm is
performing an audit of the agency pursuant to this section must be in
accord with Government Accounting Standards, Amendment No. 3, as
published by the United States General Accounting Office.
   SEC. 94.    Section 41202 of the  Education
Code   is amended to read: 
   41202.  The words and phrases set forth in subdivision (b) of
Section 8 of Article XVI of the Constitution of the State of
California shall have the following meanings:
   (a) "Moneys to be applied by the State," as used in subdivision
(b) of Section 8 of Article XVI of the California Constitution, means
appropriations from the General Fund that are made for allocation to
school districts, as defined, or community college districts. An
appropriation that is withheld, impounded, or made without provisions
for its allocation to school districts or community college
districts, shall not be considered to be "moneys to be applied by the
State."
   (b) "General Fund revenues which may be appropriated pursuant to
Article XIII B," as used in paragraph (1) of subdivision (b) of
Section 8 of Article XVI, means General Fund revenues that are the
proceeds of taxes as defined by subdivision (c) of Section 8 of
Article XIII B of the California Constitution, including, for the
1986-87 fiscal year only, any revenues that are determined to be in
excess of the appropriations limit established pursuant to Article
XIII B for the fiscal year in which they are received. General Fund
revenues for a fiscal year to which paragraph (1) of subdivision (b)
is being applied shall include, in that computation, only General
Fund revenues for that fiscal year that are the proceeds of taxes, as
defined in subdivision (c) of Section 8 of Article XIII B of the
California Constitution, and shall not include prior fiscal year
revenues. Commencing with the 1995-96 fiscal year, and each fiscal
year thereafter, "General Fund revenues that are the proceeds of
taxes," as defined in subdivision (c) of Section 8 of Article XIII B
of the California Constitution, includes any portion of the proceeds
of taxes received from the state sales tax that are transferred to
the counties pursuant to, and only if, legislation is enacted during
the 1995-96 fiscal year the purpose of which is to realign children's
programs. The amount of the proceeds of taxes shall be computed for
any fiscal year in a manner consistent with the manner in which the
amount of the proceeds of taxes was computed by the Department of
Finance for purposes of the Governor's Budget for the Budget Act of
1986.
   (c) "General Fund revenues appropriated for school districts," as
used in paragraph (1) of subdivision (b) of Section 8 of Article XVI
of the California Constitution, means the sum of appropriations made
that are for allocation to school districts, as defined in Section
41302.5, regardless of whether those appropriations were made from
the General Fund to the Superintendent, to the Controller, or to any
other fund or state agency for the purpose of allocation to school
districts. The full amount of any appropriation shall be included in
the calculation of the percentage required by paragraph (1) of
subdivision (b) of Article XVI, without regard to any unexpended
balance of any appropriation. Any reappropriation of funds
appropriated in any prior year shall not be included in the sum of
appropriations.
   (d) "General Fund revenues appropriated for community college
districts," as used in paragraph (1) of subdivision (b) of Section 8
of Article XVI of the California Constitution, means the sum of
appropriations made that are for allocation to community college
districts, regardless of whether those appropriations were made from
the General Fund to the Controller, to the Chancellor of the
California Community Colleges, or to any other fund or state agency
for the purpose of allocation to community college districts. The
full amount of any appropriation shall be included in the calculation
of the percentage required by paragraph (1) of subdivision (b) of
Article XVI, without regard to any unexpended balance of any
appropriation. Any reappropriation of funds appropriated in any prior
year shall not be included in the sum of appropriations.
   (e) "Total allocations to school districts and community college
districts from General Fund proceeds of taxes appropriated pursuant
to Article XIII B," as used in paragraph (2) or (3) of subdivision
(b) of Section 8 of Article XVI of the California Constitution, means
the sum of appropriations made that are for allocation to school
districts, as defined in Section 41302.5, and community college
districts, regardless of whether those appropriations were made from
the General Fund to the Controller, to the Superintendent, to the
Chancellor of the California Community Colleges, or to any other fund
or state agency for the purpose of allocation to school districts
and community college districts. The full amount of any appropriation
shall be included in the calculation of the percentage required by
paragraph (2) or (3) of subdivision (b) of Section 8 of Article XVI,
without regard to any unexpended balance of any appropriation. Any
reappropriation of funds appropriated in any prior year shall not be
included in the sum of appropriations.
   (f) "General Fund revenues appropriated for school districts and
community college districts, respectively" and "moneys to be applied
by the state for the support of school districts and community
college districts," as used in Section 8 of Article XVI of the
California Constitution, shall include funds appropriated for
part-day California state preschool programs under Article 7
(commencing with Section 8235) of Chapter 2 of Part 6 of Division 1
of Title 1, and the After School Education and Safety Program
established pursuant to Article 22.5 (commencing with Section 8482)
of Chapter 2 of Part 6 of Division 1 of Title 1, and shall not
include any of the following:
   (1) Any appropriation that is not made for allocation to a school
district, as defined in Section 41302.5, or to a community college
district, regardless of whether the appropriation is made for any
purpose that may be considered to be for the benefit to a school
district, as defined in Section 41302.5, or a community college
district. This paragraph shall not be construed to exclude any
funding appropriated for part-day California state preschool programs
under Article 7 (commencing with Section 8235) of Chapter 2 of Part
6 of Division 1 of Title 1 or the After School Education and Safety
Program established pursuant to Article 22.5 (commencing with Section
8482) of Chapter 2 of Part 6 of Division 1 of Title 1.
   (2) Any appropriation made to the Teachers' Retirement Fund or to
the Public Employees' Retirement Fund except those appropriations for
reimbursable state mandates imposed on or before January 1, 1988.
   (3) Any appropriation made to service any public debt approved by
the voters of this state.
   (4) With the exception of the programs identified in paragraph
(1), commencing with the 2011-12 fiscal year, any funds appropriated
for the Child Care and Development Services Act, pursuant to Chapter
2 (commencing with Section 8200) of Part 6 of Division 1 of Title 1.
   (g) "Allocated local proceeds of taxes," as used in paragraph (2)
or (3) of subdivision (b) of Section 8 of Article XVI of the
California Constitution, means, for school districts as defined,
those local revenues, except revenues identified pursuant to
paragraph (5) of subdivision  (h)   (j)  of
Section  42238,   42238.02,  that are used
to offset state aid for school districts in calculations performed
pursuant to Sections  2558, 42238,   2575,
42238.02,  and Chapter 7.2 (commencing with Section 56836) of
Part 30  of Division 4  .
   (h) "Allocated local proceeds of taxes," as used in paragraph (2)
or (3) of subdivision (b) of Section 8 of Article XVI of the
California Constitution, means, for community college districts,
those local revenues that are used to offset state aid for community
college districts  in calculations performed pursuant to
Section 84700  . In no event shall the revenues or receipts
derived from student fees be considered "allocated local proceeds of
taxes."
   (i) For purposes of calculating the 4-percent entitlement pursuant
to subdivision (a) of Section 8.5 of Article XVI of the California
Constitution, "the total amount required pursuant to Section 8(b)"
shall mean the General Fund aid required for schools pursuant to
subdivision (b) of Section 8 of Article XVI of the California
Constitution, and shall not include allocated local proceeds of
taxes. 
   (j) This section shall become inoperative on December 15, 2012,
and, as of January 1, 2013, is repealed, only if the Schools and
Local Public Safety Protection Act of 2012 (Attorney General
reference number 12-0009) is not approved by the voters at the
November 6, 2012, statewide general election, or if the provisions of
that act that modify personal income tax rates do not become
operative due to a conflict with another initiative measure that is
approved at the same election and receives a greater number of
affirmative votes. 
   SEC. 95.    Section 41300 of the   Education
Code   is repealed.  
   41300.  Commencing with July 1, 1980, the amount transferred to
Section A of the State School Fund pursuant to subdivision (a) of
Section 14002 shall be expended for basic aid, equalization aid,
allowances for adults, and allowances to the county school tuition
funds to be apportioned on account of average daily attendance.

   SEC. 96.    Section 41301 of the   Education
Code   is repealed.  
   41301.  The amount transferred to Section A of the State School
Fund pursuant to Section 14002 and Section 14004 shall be expended in
accordance with the following schedule:
   (a) Twenty-six dollars and ninety-five cents ($26.95) multiplied
by the total average daily attendance credited during the preceding
school year to elementary school districts which during the preceding
school year had less than 901 units of average daily attendance, to
high school districts which during the preceding school year had less
than 301 units of average daily attendance, and to unified districts
which during the preceding school year had less than 1,501 units of
average daily attendance, but not to exceed an amount equal to
ninety-nine cents ($0.99) multiplied by the average daily attendance
credited during the preceding fiscal year to all elementary, high,
and unified school districts and to all county superintendents of
schools in the state, for allowance to county school service funds
pursuant to subdivision (a) of Section 14054.
   Commencing with the 1980-81 fiscal year, the amounts in this
subdivision shall be increased annually by the same percentage
prescribed by Section 14002.5.
   (b) Fourteen dollars and thirty-five cents ($14.35) multiplied by
the total average daily attendance credited to all elementary, high,
and unified school districts and to all county superintendents of
schools in the state, during the preceding school year for the
purposes of Article 10 (commencing with Section 41850) of Chapter 5
of this part.
   (c) Thirty-eight dollars and thirty cents ($38.30) multiplied by
the total average daily attendance credited to all elementary, high,
and unified school districts and to all county superintendents of
schools in the state, during the preceding school year, for the
purposes of Article 3 (commencing with Section 56030) of Chapter 1,
Chapter 3 (commencing with Section 56500), Chapter 5 (commencing with
Section 56700) of Part 30 of Division 4 of this title, and Sections
41863, 41866, 41892, and 41897.
   (d) Four dollars and fifty cents ($4.50) multiplied by the total
average daily attendance credited to all elementary, high, and
unified school districts and to all county superintendents of schools
in the state during the preceding school year for allowances to
county school service funds pursuant to subdivision (b) of Section
14054.
   Commencing with the 1980-81 fiscal year, the amount in this
subdivision shall be increased by the same percentage allowed in
Section 14002.5.
   (e) Three dollars and sixty-nine cents ($3.69) multiplied by the
average daily attendance during the preceding fiscal year credited to
all elementary, high, and unified school districts and to all county
superintendents of schools in the state for allowances to school
districts for the purposes of Section 52205. The amount in this
subdivision shall be annually increased by the percentage specified
in subdivision (e) of Section 14002.
   (f) One thousand three hundred sixty-four dollars and seventy-one
cents ($1,364.71) multiplied by the average daily attendance during
the preceding fiscal year credited to all elementary, high, and
unified school districts and to all county superintendents of schools
in the state during the preceding school year for basic aid,
equalization aid, allowances for adults, and allowances to the county
school tuition funds to be apportioned on account of average daily
attendance. The amount expended pursuant to this subdivision shall be
annually revised to reflect the adjustment prescribed by subdivision
(e) of Section 14002.
   (g) Twenty dollars and seventy cents ($20.70) multiplied by the
average daily attendance during the preceding school year credited to
all elementary, high, and unified school districts and to all county
superintendents of schools in the state for purposes of Chapter 4
(commencing with Section 56600) of Part 30 of Division 4 of this
title.
   (h) Ninety cents ($0.90) multiplied by the average daily
attendance during the preceding fiscal year credited to all
elementary, high, and unified school districts and to all county
superintendents of schools in the state for purposes of Article 8
(commencing with Section 8150) of Chapter 1 of Part 6. 
   SEC. 97.    Section 41303 of the   Education
Code   is amended to read: 
   41303.  The Superintendent  of Public Instruction
 shall report to the Controller, on or before the 20th day
of October of each year, the total average daily attendance during
the preceding fiscal year credited to all kindergarten, 
including average daily attendance for transitional kindergarten,
 elementary,  and  high  school, and adult
 schools in the state and to county school tuition funds.
   SEC. 98.    Section 41320.1 of the   
 Education Code   is amended to read: 
   41320.1.  Acceptance by the school district of the apportionments
made pursuant to Section 41320 constitutes the agreement by the
school district to all of the following conditions:
   (a) The Superintendent shall appoint a trustee who has recognized
expertise in management and finance and may employ, on a short-term
basis, staff necessary to assist the trustee, including, but not
limited to, certified public accountants, as follows:
   (1) The expenses incurred by the trustee and necessary staff shall
be borne by the school district.
   (2) The Superintendent shall establish the terms and conditions of
the employment, including the remuneration of the trustee. The
trustee shall serve at the pleasure of, and report directly to, the
Superintendent.
   (3) The trustee, and necessary staff, shall serve until the school
district has adequate fiscal systems and controls in place, the
Superintendent has determined that the school district's future
compliance with the fiscal plan approved for the school district
under Section 41320 is probable, and the Superintendent decides to
terminate the trustee's appointment, but in no event, for less than
three years. The Superintendent shall notify the county
superintendent of schools, the Legislature, the Department of
Finance, and the Controller no less than 60 days before the time that
the Superintendent expects these conditions to be met.
   (4) Before the school district repays the loan, including
interest, the recipient of the loan shall select an auditor from a
list established by the Superintendent and the Controller to conduct
an audit of its fiscal systems. If the fiscal systems are deemed to
be inadequate, the Superintendent may retain the trustee until the
deficiencies are corrected. The cost of this audit and any additional
cost of the trustee shall be borne by the school district.
   (5) Notwithstanding any other law, all reports submitted to the
trustee are public records.
   (6) To facilitate the appointment of the trustee and the
employment of necessary staff, for purposes of this section, the
Superintendent is exempt from the requirements of Article 6
(commencing with Section 999) of Chapter 6 of Division 4 of the
Military and Veterans Code and Part 2 (commencing with Section 10100)
of Division 2 of the Public Contract Code.
   (7) Notwithstanding any other law, the Superintendent may appoint
an employee of the department to act as trustee for up to the
duration of the trusteeship. The salary and benefits of that employee
shall be established by the Superintendent and paid by the school
district. During the time of appointment, the employee is an employee
of the school district, but shall remain in the same retirement
system under the same plan as if the employee had remained in the
department. Upon the expiration or termination of the appointment,
the employee shall have the right to return to his or her former
position, or to a position at substantially the same level as that
position, with the department. The time served in the appointment
shall be counted for all purposes as if the employee had served that
time in his or her former position with the department.
   (b) (1) The trustee appointed by the Superintendent shall monitor
and review the operation of the school district. During the period of
his or her service, the trustee may stay or rescind an action of the
governing board of the school district that, in the judgment of the
trustee, may affect the financial condition of the school district.
   (2) After the trustee's period of service, and until the loan is
repaid, the county superintendent of schools that has jurisdiction
over the school district may stay or rescind an action of the
governing board of the school district that, in his or her judgment,
may affect the financial condition of the school district. The county
superintendent of schools shall notify the Superintendent, within
five business days,                                          if he or
she stays or rescinds an action of the governing board of the school
district. The notice shall include, but not be limited to, both of
the following:
   (A) A description of the governing board of the school district's
intended action and its financial implications.
   (B) The rationale and findings that support the county
superintendent of school's decision to stay or rescind the action of
the governing board of the school district.
   (3) If the Superintendent is notified by the county superintendent
of schools pursuant to paragraph (2), the Superintendent shall
report to the Legislature, on or before December 30 of every year,
whether the school district is complying with the fiscal plan
approved for the school district.
   (4) The Superintendent may establish timelines and prescribe
formats for reports and other materials to be used by the trustee to
monitor and review the operations of the school district. The trustee
shall approve or reject all reports and other materials required
from the school district as a condition of receiving the
apportionment. The Superintendent, upon the recommendation of the
trustee, may reduce an apportionment to the school district in an
amount up to two hundred dollars ($200) per day for each late or
unacceptable report or other material required under this part, and
shall report to the Legislature a failure of the school district to
comply with the requirements of this section. If the Superintendent
determines, at any time, that the fiscal plan approved for the school
district under Section 41320 is unsatisfactory, he or she may modify
the plan as necessary, and the school district shall comply with the
plan as modified.
   (c) At the request of the Superintendent, the Controller shall
transfer to the department, from an apportionment to which the school
district would otherwise have been entitled pursuant to Section
 42238,   42238.02, as implemented pursuant to
Section 42238.03,  the amount necessary to pay the expenses
incurred by the trustee and associated costs incurred by the county
superintendent of schools.
   (d) For the fiscal year in which the apportionments are disbursed
and every year thereafter, the Controller, or his or her designee,
shall cause an audit to be conducted of the books and accounts of the
school district, in lieu of the audit required by Section 41020. At
the Controller's discretion, the audit may be conducted by the
Controller, his or her designee, or an auditor selected by the school
district and approved by the Controller. The costs of these audits
shall be borne by the school district. These audits shall be required
until the Controller determines, in consultation with the
Superintendent, that the school district is financially solvent, but
in no event earlier than one year following the implementation of the
plan or later than the time the apportionment made is repaid,
including interest. In addition, the Controller shall conduct quality
control reviews pursuant to subdivision (c) of Section 14504.2.
   (e) For purposes of errors and omissions liability insurance
policies, the trustee appointed pursuant to this section is an
employee of the local educational agency to which he or she is
assigned. For purposes of workers' compensation benefits, the trustee
is an employee of the local educational agency to which he or she is
assigned, except that a trustee appointed pursuant to paragraph (7)
of subdivision (a) is an employee of the department for that purpose.

   (f) Except for an individual appointed by the Superintendent as
trustee pursuant to paragraph (7) of subdivision (a), the
state-appointed trustee is a member of the State Teachers' Retirement
System, if qualified, for the period of service as trustee, unless
the trustee elects in writing not to become a member. A person who is
a member or retirant of the State Teachers' Retirement System at the
time of appointment shall continue to be a member or retirant of the
system for the duration of the appointment. If the trustee chooses
to become a member or is already a member, the trustee shall be
placed on the payroll of the school district for purposes of
providing appropriate contributions to the system. The Superintendent
may also require that an individual appointed as trustee pursuant to
paragraph (7) of subdivision (a) be placed on the payroll of the
school district for purposes of remuneration, other benefits, and
payroll deductions. For purposes of workers' compensation benefits,
the state-appointed trustee is deemed an employee of the local
educational agency to which he or she is assigned, except that a
trustee who is appointed pursuant to paragraph (7) of subdivision (a)
is an employee of the department for that purpose.
   SEC. 99.    Section 41329.55 of the   
 Education Code   is amended to read: 
   41329.55.  (a) Simultaneous with the execution of the lease
financing authorized pursuant to Section 41329.52, the bank shall
provide to the Controller and the school district a notification of
its lease financing. The notice shall include a schedule of rent
payments to become due to the bank from the school district and the
bond trustee. The Controller shall make the apportionment to the bond
trustee of those amounts on the dates shown on the schedule. The
bank may further authorize the apportionments to be used to pay or
reimburse the provider of any credit enhancement of bonds and other
ongoing or periodic ancillary costs of the bond financing issued by
the bank in connection with this article. If the amount of rent
payments vary from the schedule as a result of variable interest
rates on the bonds, early redemptions, or changes in expenses, the
bank shall amend or supplement the schedule accordingly.
   (b) Except where financing is for a community college district,
the Controller shall make the apportionment only from moneys in
Section A of the State School Fund  or any local control funding
formula allocations pursuant to Section 42238.02, as implemented by
Section 42238.03,  designated for apportionment to the 
school  district and  any   an 
apportionment authorized pursuant to this subdivision shall
constitute a lien senior to any other apportionment or payment of
State School Fund moneys to or for that  school  district
not made pursuant to this subdivision.
   (c) If financing is for the Compton Community College District,
the Controller shall make the apportionment only from moneys in
Section B of the State School Fund.  Any   An
 apportionment authorized pursuant to this subdivision shall
constitute a lien senior to any other apportionment or payment of
Section B State School Fund moneys.
   (d) The amount apportioned for a school district pursuant to this
section is an allocation to the  school  district for
purposes of subdivision (b) of Section 8 of Article XVI of the
California Constitution. For purposes of computing  revenue
limits pursuant to Section 42238   apportionments for
local control funding formula allocations pursuant to Section
42238.02, as implemented pursuant to Section 42238.03,  for any
school district, the  revenue limit   local
control funding formula allocations pursuant to Section 42238.02, as
implemented pursuant to Section 42238.03,  for any fiscal year
in which funds are apportioned for the  school  district
pursuant to this section shall include any amounts apportioned by the
Controller pursuant to subdivisions (a), (b), and (c), as well as
Section 41329.57.
   (e) No party, including the school district or any of its
creditors, shall have any claim to the money apportioned or to be
apportioned to the bond trustee by the Controller pursuant to this
section.
   SEC. 100.    Section 41332 of the  
Education Code   is amended to read: 
   41332.  The Superintendent  of Public Instruction
 shall, on or before February 20th of each year, apportion
to each elementary school district, high school district, county
school service fund, and county school tuition fund the total amounts
allowed to them under Sections 14054, 14057, 14058, 41790, 41800,
 41810, 41811, 41840, 41841, 41863, 41866, 41882, 41884,
41885, 41886, 41888,  41950, 41970,  and  41971,
 42004, 42005, 42054, 42055, 42056, and 52205, 
whichever are in effect. This apportionment shall be called the first
principal apportionment.
   SEC. 101.    Section 41334 of the  
Education Code   is amended to read: 
   41334.  The Superintendent  of Public Instruction
 shall on or before December 10th of each year apportion:
   (a) To each elementary, high school, and county school service
fund the total of amounts allowed to them under  Sections
41850 to 41862, inclusive, and Sections 41930 to 41936, inclusive,
and   Article 14 (commencing with Section 41930) of
Chapter 5. 
   (b) To each school district maintaining a high school or high
schools, each county superintendent of schools, the 
California Youth Authority   Division of Juvenile
Justice  and the  State Department of Education
  department  the total of amounts allowed to them
under Sections 41900 to 41912, inclusive.
   This apportionment shall be called the special purpose
apportionment.
   SEC. 102.    Section 41335 of the  
Education Code   is amended to read: 
   41335.  (a) The Superintendent  of Public Instruction
 shall on or before July 2 of each year apportion to each
elementary school district, high school district, county school
service fund, and county school tuition fund the total amounts
allowed to each respective district or fund, as would have been
apportioned on June 25 of the fiscal year of the apportionment
pursuant to Section 41335 as it read on May 30, 2003, under Sections
14054, 14057, 14058, 41790, 41800,  41810, 41811, 41840,
41841, 41863, 41866, 41882, 41884, 41885, 41886, 41888, 
41950, 41970,  and  41971,  42004, 42005, 42054,
42055, 42056, and 52205,  whichever are in effect. This
apportionment shall be called the second principal apportionment.
   (b) This section shall become operative on June 1, 2003.
   SEC. 103.   Section 41341 of the   Education
Code   is amended to read: 
   41341.  (a) (1) If, during any fiscal year, the amount apportioned
to a school district or to any fund from Section A of the State
School Fund differs either positively or negatively from the amount
to which the district or fund was entitled by an amount equal to
revenue limit funding  through the 2012-13 fiscal year, and,
commencing with the 2013-14 fiscal year, local control funding
formula entitlements pursuant to Section 42238.02, as implemented
pursuant to Section 42238.03,  for one unit of average daily
attendance, the Superintendent  of Public Instruction
 , in accordance with regulations that he or she is hereby
authorized to adopt, not later than the first succeeding fiscal year
from the fiscal year in which the computational error was made, shall
withhold from, or add to, the apportionment made during that fiscal
year, the amount of the excess or deficiency, as the case may be.
Notwithstanding any other provision of this code to the contrary,
excesses withheld or deficiencies added by the Superintendent
 of Public Instruction  under this subdivision shall
be added to or allowed from any portion of the State School Fund.
   (2) Notwithstanding paragraph (1), excesses may be withheld or
deficiencies added to apportionments on account of audit exceptions
in any fiscal year in which they are certified by the Superintendent
 of Public Instruction  .
   (b) If, during any fiscal year, the amount apportioned to a
community college district or to any fund from Section B of the State
School Fund differs either positively or negatively from the amount
to which the  community college  district or fund was
entitled, by an amount equal to the funding of one full-time
equivalent student, the Chancellor of the California Community
Colleges, in accordance with regulations that he or she is hereby
authorized to adopt, not later than the first succeeding fiscal year
from the fiscal year in which the computational error was made, shall
withhold from, or add to, the apportionment made during that fiscal
year, the amount of the excess or deficiency, as the case may be.
Notwithstanding any other provision of this code to the contrary,
excesses withheld or deficiencies added by the Chancellor of the
California Community Colleges under this subdivision shall be added
to or allowed from any portion of the State School Fund.
   SEC. 104.    Section 41344 of the  
Education Code   is amended to read: 
   41344.  (a) If, as the result of an audit or review, a local
educational agency is required to repay an apportionment significant
audit exception or to pay a penalty arising from an audit exception,
the Superintendent and the Director of Finance, or their designees,
jointly shall establish a plan for repayment of state school funds
that the local educational agency received on the basis of average
daily attendance, or other data, that did not comply with statutory
or regulatory requirements that were conditions of the
apportionments, or for payment of a penalty arising from an audit
exception. A local educational agency shall request a plan within 90
days of receiving the final audit report or review, within 30 days of
withdrawing or receiving a final determination regarding an appeal
pursuant to subdivision (d), or, in the absence of an appeal pursuant
to subdivision (d), within 30 days of withdrawing or receiving a
determination of a summary review pursuant to subdivision (d) of
Section 41344.1. At the time the local educational agency is
notified, the Controller also shall be notified of the plan. The plan
shall be established in accordance with the following:
   (1) The Controller shall withhold the disallowed or penalty amount
at the next principal apportionment or pursuant to paragraph (2),
unless subdivision (d) of this section or subdivision (d) of Section
41344.1 applies, in which case the disallowed or penalty amount shall
be withheld, at the next principal apportionment or pursuant to
paragraph (2) following the determination regarding the appeal or
summary appeal. In calculating a disallowed amount, the Controller
shall determine the total amount of overpayment received by the local
educational agency on the basis of average daily attendance, or
other data, reported by the local educational agency that did not
comply with one or more statutory or regulatory requirements that are
conditions of apportionment.
   (2) If the Superintendent and the Director of Finance concur that
repayment of the full liability or payment of the penalty in the
current fiscal year would constitute a severe financial hardship for
the local educational agency, they may approve a plan of equal annual
payments over a period of up to eight years. The plan shall include
interest on each year's outstanding balance at the rate earned on the
state's Pooled Money Investment Account during that year. The
Superintendent and the Director of Finance jointly shall establish
this plan. The Controller shall withhold amounts pursuant to the
plan.
   (3) If the Superintendent and the Director of Finance do not
jointly establish a plan, the Controller shall withhold the entire
disallowed amount determined pursuant to paragraph (1), or the
penalty amount, at the next principal apportionment.
   (b) (1) For purposes of computing average daily attendance
pursuant to Section 42238.5,  as it read on January 1, 2013, and
Section 42238.05,  a local educational agency's prior fiscal
year average daily attendance shall be reduced by an amount equal to
any average daily attendance disallowed in the current year, by an
audit or review, as defined in subdivision (e).
   (2) Commencing with the 1999-2000 fiscal year, this subdivision
may not result in a local educational agency repaying more than the
value of the average daily attendance disallowed in the audit
exception plus interest and other penalties or reductions in
apportionments as provided by existing law.
   (c) Notwithstanding any other law, this section may not be waived
under any authority set forth in this code except as provided in this
section or Section 41344.1.
   (d) Within 60 days of the date on which a local educational agency
receives a final audit report resulting from an audit or review of
all or any part of the operations of the local educational agency, or
within 30 days of receiving a determination of a summary review
pursuant to subdivision (d) of Section 41344.1, a local educational
agency may appeal a finding contained in the final report, pursuant
to Section 41344.1. Within 90 days of the date on which the appeal is
received by the panel, a hearing shall be held at which the local
educational agency may present evidence or arguments if the local
educational agency believes that the final report contains any
finding that was based on errors of fact or interpretation of law, or
if the local educational agency believes in good faith that it was
in substantial compliance with all legal requirements. A repayment
schedule may not commence until the panel reaches a determination
regarding the appeal. If the panel determines that the local
educational agency is correct in its assertion, in whole or in part,
the allowable portion of any apportionment payment that was withheld
shall be paid at the next principal apportionment.
   (e) (1) As used in this section, "audit or review" means an audit
conducted by the Controller's office, an annual audit conducted by a
certified public accountant or a public accounting firm pursuant to
Section 41020, and an audit or review conducted by a governmental
agency that provided the local educational agency with an opportunity
to provide a written response.
   (2) As used in this section, "local educational agency" includes a
charter school.
   SEC. 105.    Section 41376 of the  
Education Code   is repealed.  
   41376.  The Superintendent of Public Instruction, in computing
apportionments and allowances from the State School Fund for the
second principal apportionment, shall determine the following for the
regular day classes of the elementary schools maintained by each
school district:
   (a) For grades 1 to 3, inclusive, he shall determine the number of
classes, the number of pupils enrolled in each class, the total
enrollment in all such classes, the average number of pupils enrolled
per class, and the total of the numbers of pupils which are in
excess of thirty (30) in each class.
   For those districts which do not have any classes with an
enrollment in excess of 32 and whose average size for all the classes
is 30.0 or less, there shall be no excess declared. For those
districts which have one or more classes in excess of an enrollment
of 32 or whose average size for all the classes is more than 30, the
excess shall be the total of the number of pupils which are in excess
of 30 in each class having an enrollment of more than 30.
   (b) For grades 4 to 8, inclusive, he shall determine the total
number of pupils enrolled, the number of full-time equivalent
classroom teachers, and the average number of pupils per each
full-time equivalent classroom teacher. He shall also determine the
excess if any, of pupils enrolled in such grades in the following
manner:
   (1) Determine the number of pupils by which the average number of
pupils per each full-time equivalent classroom teacher for the
current fiscal year exceeds the greater of the average number of
pupils per each full-time equivalent classroom teacher in all the
appropriate districts of the state, as determined by the
Superintendent of Public Instruction, for October 30, 1964, or the
average number of pupils per each full-time equivalent classroom
teacher which existed in the district on either October 30, 1964 or
March 30, 1964, as selected by the governing board.
   (2) Multiply the number determined in (1) above by the number of
full-time equivalent classroom teachers of the current fiscal year.
   (3) Reduce the number determined in (2) above by the remainder
which results from dividing such number by the average number of
pupils per each full-time equivalent teacher for October 30, 1964, as
determined by the Superintendent of Public Instruction in (1) above.

   (c) He shall compute the product obtained by multiplying the
excess number of pupils, if any, under the provisions of subdivision
(a) of this section by ninety-seven hundredths (0.97), and shall
multiply the product so obtained by the ratio of statewide change in
average daily attendance to district change in average daily
attendance. Change in average daily attendance shall be determined by
dividing average daily attendance in grades 1, 2 and 3 reported for
purposes of the first principal apportionment of the current year by
that reported for purposes of the first principal apportionment of
the preceding year.
   (d) If the school district reports that it has maintained, during
the current fiscal year, any classes in which there were enrolled
pupils in excess of thirty (30) per class pursuant to subdivision (a)
of this section, and there is no excess number of pupils computed
pursuant to subdivision (b) of this section, he shall decrease the
average daily attendance reported under the provisions of Section
41601 by the product determined under subdivision (c) of this
section.
   (e) If the school district reports that it has maintained, during
the current fiscal year, no classes in which there were enrolled
pupils in excess of thirty (30) per class determined pursuant to
subdivision (a) of this section, and there is an excess number of
pupils computed pursuant to subdivision (b) of this section, he shall
make the following computation:
   He shall compute the product obtained by multiplying the excess
number of pupils computed pursuant to subdivision (b) of this section
by ninety-seven hundredths (0.97) and shall multiply the product so
obtained by the ratio of statewide change in average daily attendance
to the district change in average daily attendance. He shall
decrease the average daily attendance reported under the provisions
of Section 41601 by the resulting product.
   (f) If the school district reports that it has maintained, during
the current fiscal year, any classes in which there were enrolled
pupils in excess of thirty (30) per class determined pursuant to
subdivision (a) of this section, and there is an excess number of
pupils computed pursuant to subdivision (b) of this section, he shall
make the following computation:
   He shall add to the product determined under subdivision (c) of
this section, the product determined under subdivision (e) of this
section and decrease the average daily attendance reported under the
provisions of Section 41601 by this total amount.
   The governing board of each school district maintaining elementary
schools shall report for the fiscal year 1964-65 and each year
thereafter the information required for the determination to be made
by the Superintendent of Public Instruction under the provisions of
this section in accordance with instructions provided on forms
furnished and prescribed by the Superintendent of Public Instruction.
Such information shall be reported by the school district together
with, and at the same time as, the reports required to be filed for
the second principal apportionment of the State School Fund. The
forms on which the data and information is reported shall include a
certification by each school district superintendent or chief
administrative officer that the data is correct and accurate for the
period covered, according to his best information and belief.
   For purposes of this section, a "full-time equivalent classroom
teacher" means an employee of an elementary, high school, or unified
school district, employed in a position requiring certification
qualifications and whose duties require him to teach pupils in the
elementary schools of that district in regular day classes for the
full time for which he is employed during the regular schoolday. In
reporting the total number of full-time equivalent classroom
teachers, there shall be included, in addition to those employees
defined above, the full-time equivalent of all fractional time for
which employees in positions requiring certification qualifications
are required to devote to teaching pupils in the elementary schools
of the district in regular day classes during the regular schoolday.
   For purposes of this section, the number of pupils enrolled in
each class means the average of the active enrollment in that class
on the last teaching day of each school month which ends prior to
April 15th of each school year.
   The provisions of this section are not applicable to school
districts with less than 101 units of average daily attendance for
the current fiscal year.
   Although no decreases in average daily attendance shall be made
for the fiscal year 1964-65, reports are required to be filed under
the provisions of this section, and the Superintendent of Public
Instruction shall notify each school district the amount of the
decrease in state allowances which would have been effected had such
decrease in average daily attendance been applied.
   The Superintendent of Public Instruction shall adopt rules and
regulations which he may deem necessary for the effective
administration of this section. Such rules and regulations may
specify that no decrease in average daily attendance
                                  reported under the provisions of
Section 41601 shall be made for a school district on account of large
classes due to instructional television or team teaching, which may
necessarily involve class sizes at periods during the day larger than
the standard set forth in this section. 
   SEC. 106.    Section 41378 of the  
Education Code   is repealed.  
   41378.  The Superintendent of Public Instruction, in computing
apportionments and allowances from the State School Fund for the
second principal apportionment, shall determine the following for the
kindergarten classes maintained by each school district maintaining
kindergarten classes.
   (a) The number of pupils enrolled in each kindergarten class, the
total enrollment in all such classes, and the average number of
pupils enrolled per class.
   (b) The total number of pupils which are in excess of thirty-three
(33) in each class having an enrollment of more than thirty-three
(33).
   (c) The total number of pupils by which the average class size in
the district exceeds 31.
   (d) The greater number of pupils as determined in (b) or (c)
above.
   (e) He shall compute the product obtained by multiplying the
excess number of pupils computed pursuant to subdivision (d) of this
section by ninety-seven hundredths (0.97). He shall decrease the
average daily attendance reported under the provisions of Section
41601 by the resulting product. 
   SEC. 107.    Section 41400 of the  
Education Code   is repealed.  
   41400.  It is the intent and purpose of the Legislature to improve
public education in California by maximizing the allocation of
existing resources, to discourage the growth of bureaucracy in the
public schools, and to emphasize the importance and significance of
the classroom teacher. 
   SEC. 108.    Section 41401 of the  
Education Code   is repealed.  
   41401.  For the purposes of this article:
   (a) "Administrative employee" means an employee of a school
district, employed in a position requiring certification
qualifications, who does not come within the definition set forth in
subdivision (c) or (d).
   (b) "Classified employee" means an employee of a school district,
employed in a position not requiring certification qualifications.
   (c) "Pupil services employee" means an employee of a school
district, employed in a position requiring a standard designated
services credential, health and development credential, or a
librarian credential, who performs direct services to pupils. "Pupil
services employee" includes, but is not limited to, in-school
librarians, school nurses, assistant in-school librarians,
audiovisual personnel, counselors, psychologists, psychometrists,
guidance and welfare personnel, attendance personnel, school social
workers, and all other certificated personnel performing
pupil-personnel, health, or librarian services.
   (d) "Teacher" means an employee of a school district, employed in
a position requiring certification qualifications, whose duties
require him or her to provide direct instruction to pupils in the
schools of that district for the full time for which he or she is
employed. "Teacher" includes, but is not limited to, teachers of
special classes, teachers of exceptional children, teachers of pupils
with physical disabilities, teachers of minors with intellectual
disabilities, substitute teachers, instructional television teachers,
specialist mathematics teachers, specialist reading teachers, home
and hospital teachers, and learning disability group teachers.
Instructional preparation time shall be counted as part of the
teacher full-time equivalent, including, but not limited to, mentor
teacher or department chairperson time. 
   SEC. 109.    Section 41402 of the  
Education Code   is repealed.  
   41402.  The maximum ratios of administrative employees to each 100
teachers in the various types of school districts shall be as
follows:
   (a) In elementary school districts--9.
   (b) In unified school districts--8.
   (c) In high school districts--7.
   This section shall not apply to a school district that has one or
fewer administrators. 
   SEC. 110.    Section 41403 of the  
Education Code   is repealed.  
   41403.  The Superintendent of Public Instruction shall determine,
for each current fiscal year, for each school district in the state,
to two decimal points, the following:
   (a) The total number of administrative employees, except those
serving in positions that are supported by categorical grants from
any source and are in programs that require specific
teacher/administrator ratios, or that are supported by federal funds.
As to those serving in positions that are not supported completely
by these categorical grants from any source or completely by federal
funds, the number of employees reported shall include the full-time
equivalent of all fractional time attributable to that time not
supported by categorical grants or federal funds.
   (b) The total number of teachers except those serving in positions
that are supported by federal funds or by categorical grants from
any source and are in programs that require specific
teacher/administrator ratios. As to those serving in positions that
are not supported completely by these categorical grants from any
source or completely by federal funds, the number of employees
reported shall include the full-time equivalent of all fractional
time attributable to that time not supported by categorical grants or
federal funds. Substitute teachers may be counted as teachers only
if the employee for whom they are substituting is not counted. In no
event shall the number of full-time equivalent teachers reported be
greater than the number of full-time equivalent teaching positions in
the district.
   (c) The total maximum number of administrative employees that
should be employed by the district based upon the application of the
appropriate ratio prescribed by Section 41402 to the number of
teachers determined pursuant to subdivision (b).
   (d) The number of administrative employees in excess of the number
allowable without penalty as determined by subtracting the number
determined pursuant to subdivision (c) from the number determined
pursuant to subdivision (a).
   The number of employees reported pursuant to subdivisions (a),
(b), (c), and (d) shall include the full-time equivalent of all
fractional time of those employees.
   For purposes of determining the allowable ratio of administrative
employees to teachers for the San Diego City School District, the
number of employees and the full-time equivalent of all of the
fractional time of employees serving the district in positions
mandated as the result of the district's court-ordered integration
plan is excluded from the numbers identified pursuant to subdivisions
(a), (b), (c), and (d).
   No individual may be counted as more than one full-time equivalent
employee unless the individual is employed on a part-time basis in
adult education, driver education, or vocational education, or any
part-time or additional teaching assignment, in addition to his or
her regular full-time assignment. 
   SEC. 111.    Section 41404 of the  
Education Code   is repealed.  
   41404.  The Superintendent of Public Instruction shall determine
the reduction in state support resulting from excess administrative
employees identified in subdivision (d) of Section 41403 as follows:
   (a) Compute the ratio which total state support to the district
general fund bears to the total general fund income of the district.
   (b) Multiply the ratio determined pursuant to subdivision (a) by
the average salary of administrative employees.
   (c) Multiply the product of subdivision (b) by the number of
administrative employees converted to the nearest whole number in
excess of the maximum number specified in Section 41402.
   The amount of the second principal apportionment made to the
district for the current fiscal year pursuant to Section 41335 shall
be reduced by the product so produced. However, no reduction shall
reduce the final apportionment below the amount specified in Section
6 of Article IX of the California Constitution. 
   SEC. 112.    Section 41406 of the  
Education Code   is repealed.  
   41406.  Amounts allowable from the State School Fund but not
transferred thereto because of the operation of Section 41404 and the
provisions of subdivision (b) of Section 14002, shall be held in the
General Fund and shall be expended for public school purposes
pursuant to appropriations thereof enacted by the Legislature.

   SEC. 113.    Section 41407 of the  
Education Code   is repealed.  
   41407.  Notwithstanding any other provision of law, a school
district is subject, with regard to Section 41402, to audits
conducted pursuant to Section 41020. 
   SEC. 114.    Chapter 3.2 (commencing with Section
41500) of Part 24 of Division 3 of Title 2 of the  
Education Code   is repealed. 
   SEC. 115.    Section 41601 of the  
Education Code   is amended to read: 
   41601.  For  the  purposes of this chapter, the
governing board of each school district shall report to the
Superintendent  of Public Instruction  during each
fiscal year the average daily attendance of the  school 
district for all full school months during (1) the period between
July 1 and December 31, inclusive, to be known as the "first period"
report for the first principal apportionment, and (2) the period
between July 1 and April 15, inclusive, to be known as the "second
period" report for the second principal apportionment. Each county
superintendent of schools shall report the average daily attendance
for the schools and classes maintained by him or her and the average
daily attendance for the county school tuition fund.
   Each report shall be prepared in accordance with instructions on
forms prescribed and furnished by the Superintendent  of
Public Instruction  . Average daily attendance shall be
computed in the following manner:
   (a) The average daily attendance in the regular elementary,
middle, and high schools, including continuation schools and classes,
opportunity schools and classes, and special day classes, maintained
by the school districts shall be determined by dividing the total
number of days of attendance allowed in all full school months in
each period by the number of days the schools are actually taught in
all full school months in each period, exclusive of Saturdays or
Sundays and exclusive of weekend makeup classes pursuant to Section
37223.
   (b) The attendance for schools and classes maintained by a county
superintendent of schools and the county school tuition fund shall be
reported in the same manner as reported by school districts. The
average daily attendance in special education classes operated by
county superintendents of schools shall be determined in the same
manner as all other attendance under subdivision (a).  The
average daily attendance in all other schools and classes maintained
by the county superintendents of schools shall be determined by
dividing the total number of days of attendance in all full school
months in the first period by a divisor of 70, in the second period
by 135 and at annual time by 175.  For attendance in special
classes  and centers  pursuant to Section 
56364 or Section  56364.2,  as applicable, 
the average daily attendance shall be reported by the county
superintendents of schools, but credited for revenue limit purposes
to the district in which the pupil resides. 
   (c) The days of attendance in classes for adults and regional
occupational centers programs shall be reported in the same manner as
all other attendance under subdivision (a). The average daily
attendance in those schools and classes shall be determined by
dividing the total number of days of attendance in all full school
months in the first period by a divisor of 85 in the second period by
135 and at annual time by 175. 
   SEC. 116.    Section 41601.5 of the   
 Education Code   is amended to read: 
   41601.5.  For any fiscal year, a school district with an increase
in the number of units of average daily attendance from the second
principal apportionment to the annual apportionment may request the
county superintendent of schools to adjust the  school 
district's  revenue limit or block grant by utilizing
  local control funding formula allocations pursuant to
Section 42238.02, as implemented by Section 42238.03, by using 
the units of average daily attendance for the annual apportionment in
lieu of the units of average daily attendance for the second
principal apportionment. To qualify for this adjustment, the increase
in the units of average daily attendance between the two periods
shall meet the following requirements:
   (a) The increase shall be equal to either paragraph (1) or (2):
   (1) Equal to or greater than 2 percent.
   (2) For the 1984-85 fiscal year and each fiscal year thereafter,
for school districts with less than 2,501 units of average daily
attendance, equal to or greater than 10 units of average daily
attendance.
   (b) The increase shall be attributable to pupils of migrant
agricultural workers.
   SEC. 117.    Section 41601.7 of the   
 Education Code   is amended to read: 
   41601.7.  A school district with an increase or decrease in the
number of units of average daily attendance at a necessary small high
school from the second principal apportionment to the annual
apportionment may request the county superintendent of schools to
adjust the district's  revenue limit or block grant by
utilizing   local control funding formula allocations
pursuant to Section 42238.02, as implemented by Section 42238.03, by
using  the units of average daily attendance for the annual
apportionment for the necessary small high school in lieu of the
units of average daily attendance for the second principal
apportionment. To qualify for this adjustment, the following
conditions shall be met:
   (1) The increase or decrease in the units of average daily
attendance between the two periods at the necessary small high school
shall be equal to or greater than 15 percent and such increase or
decrease shall be attributable to pupils attending a necessary small
high school which provides a program of education with individualized
instruction in a residential setting at an institution for pupils
who have been placed in foster care for rehabilitation purposes
pursuant to Chapter 2 (commencing with Section 200) of Part 1 of
Division 2 of the Welfare and Institutions Code.
   (2) The school district reimburses the county superintendent of
schools for the administrative costs of making the adjustment
prescribed by this section.
   SEC. 118.    Section 41800 of the  
Education Code   is amended to read: 
   41800.   The Superintendent of Public Instruction
  (a)     The Superintendent 
shall allow to each high school district one hundred twenty dollars
($120) for each unit of average daily attendance in the  school
 district during the fiscal year as computed under subdivision
(a) of Section 41601, subject to the provisions of Section 41608, but
not less than two thousand four hundred dollars ($2,400) shall be
allowed to any high school district, to be known as basic state aid.

   The Superintendent of Public Instruction shall 
    (b)     The Superintendent shall 
exclude from the computation of allowances provided by this section
the average daily attendance during the fiscal year of adults
 , as adults are defined in Section 52610, and of inmates of
any state penal institution for adults or of any city, county, or
city and county jail, road camp or farm for adults  . 
   (c) As used in this section, "adult" means a person 18 years of
age or older or a person who is not concurrently enrolled in a
regular high school program. However, a person 18 years of age or
older who is concurrently enrolled in a regular high school program
is not an adult for purposes of this section. 
   SEC. 119.    Article 9 (commencing with Section 
 41840) of Chapter 5 of Part 24 of Division 3   of
Title 2 of the   Education Code   is repealed.

   SEC. 120.    Article 10 (commencing with Section
41850) of Chapter 5 of Part 24 of Division   3 of Title 2 of
the   Education Code   is repealed. 
   SEC. 121.    Article 10.5 (commencing with Section
41860) of Chapter 5 of Part 24 of   Division 3 of Title 2 of
the   Education Code   is repealed. 
   SEC. 122.    Article 11 (commencing with Section
41880) of Chapter 5 of Part 24 of Division   3 of Title 2 of
the   Education Code   is repealed. 
   SEC. 123.    Article 13 (commencing with Section
41920) of Chapter 5 of Part 24 of Division   3 of Title 2 of
the   Education Code   is repealed. 
   SEC. 124.    Section 41972 of the  
Education Code   is amended to read: 
   41972.   (a)    Balances available from any
appropriation for apportionments from Section A of the State School
Fund and funds provided by subdivision  (c)  
(b)  of Section 14002, or provided by any other 
provision of  law in lieu of those sections, shall be used
to restore any reductions in apportionments to elementary, high, and
unified school districts and county superintendents of schools as
follows: 
   (a) 
    (1)  First, for revenue limits computed pursuant to
Sections  2558 and 42238   2575 and 42238.02, as
implemented by Section 42238.03  . 
   (b) 
    (2) Second, for special education computed pursuant to
Chapter 7.2 (commencing with Section 56836) of Part 30  of
Division 4  . 
   (c) Third, for home-to-school transportation computed pursuant to
Section 41856 or, commencing with the 1984-85 fiscal year, Article 10
(commencing with Section 41850) of Chapter 8.  
   Any 
    (b)     Any  remaining balances
otherwise transferable under  subdivisions (b) and (c)
  subdivision (b)  of Section 14002 shall revert to
the General Fund.
   SEC. 125.    Section 41975 of the  
Education Code   is amended to read: 
   41975.  (a) Apportionments and allowances to a school district
from Section A of the State School Fund in a fiscal year may not be
less than the product of one hundred twenty dollars ($120) multiplied
by the average daily attendance of the district in the preceding
fiscal year, or two thousand four hundred dollars ($2,400), whichever
amount is the greater.
   (b) State funds apportioned to each school district for
categorical education programs, or other state funds apportioned to
each school district from the State School Fund, shall be applied to
meet the requirement of Section 6 of Article IX of the California
Constitution to provide a minimum of one hundred twenty dollars
($120) of state aid per pupil or two thousand four hundred dollars
($2,400) per school district.
   (c) Notwithstanding any other law, the Superintendent  of
Public Instruction may   shall  not increase the
 revenue limit   local control funding formula
pursuant to Section 42238.02, as implemented by Section 42238.03,
 apportionment of  any   a  school
district to provide basic state aid pursuant to Section 6 of Article
IX of the California Constitution or any other law, unless that
school district has not received the greater amount of one hundred
twenty dollars ($120) per pupil or two thousand four hundred dollars
($2,400) from all state funds, including funds for categorical
education programs. If a school district receives less than the
amount specified in this subdivision, the Superintendent  of
Public Instruction  shall allocate the difference between
the amount of state funds received and the constitutional minimum of
the greater amount of one hundred twenty dollars ($120) per pupil or
two thousand four hundred dollars ($2,400) per school district.
   SEC. 126.    Section 41976 of the  
Education Code   is repealed.  
   41976.  (a) For purposes of this chapter, the following classes
and courses are authorized to be offered by school districts and
county superintendents of schools for apportionment purposes from the
adult education fund:
   (1) Adult programs in parenting, including parent cooperative
preschools, and classes in child growth and development, parent-child
relationships, and parenting.
   (2) Adult programs in elementary and secondary basic skills and
other courses and classes required for the high school diploma.
Apportionments for these courses and classes may only be generated by
students who do not possess a high school diploma, except for
remedial academic courses or classes in reading, mathematics, and
language arts.
   (3) Adult education programs in English as a second language.
   (4) Adult education programs for immigrants eligible for
educational services in citizenship, English as a second language,
and workforce preparation classes in the basic skills of speaking,
listening, reading, writing, mathematics, decisionmaking and problem
solving skills, and other classes required for preparation to
participate in job specific technical training.
   (5) Adult education programs for adults with disabilities.
   (6) Adult short-term career technical education programs with high
employment potential. Any reference to "vocational" education or
programs in adult education means "career technical" education or
programs in adult education.
   (7) Adult programs for older adults.
   (8) Adult education programs for apprentices.
   (9) Adult programs in home economics.
   (10) Adult programs in health and safety education.
   (b) No state apportionment shall be made for any course or class
which is not set forth in subdivision (a). 
   SEC. 127.    Section 41976.1 of the  
Education Code   is repealed.  
   41976.1.  Notwithstanding Section 41976, any school district may
offer adult education courses and classes in the adult education
programs described in Section 41976 provided that district qualifies
for funding to begin those courses or classes pursuant to Section
52616.18. 
   SEC. 128.    Section 41976.2 of the  
Education Code   is repealed.  
   41976.2.  Notwithstanding Section 41976, a school district may
offer adult education courses and classes if the school district
received funding in the 1991-92 fiscal year to conduct programs
through independent study for persons 21 years of age or older and
persons 19 years of age or older who have not been continuously
enrolled in kindergarten, or any of grades 1 to 12, inclusive, since
their 18th birthday. 
   SEC. 129.    Section 41976.5 of the  
Education Code   is repealed.  
   41976.5.  (a) Each school district or county superintendent of
schools providing services in summer school programs for adults with
disabilities in the 1977-78 school year shall continue in the 1980-81
fiscal year and each fiscal year thereafter to offer these programs.

   (b) A school district or county superintendent of schools
receiving apportionments from Section A of the State School Fund
shall offer summer programs for graduating high school seniors in
need of courses for graduation. 
   SEC. 130.    Section 42127 of the  
Education Code   is amended to read: 
   42127.  (a) On or before July 1 of each year, the governing board
of each school district shall accomplish the following:
   (1) Hold a public hearing on the budget to be adopted for the
subsequent fiscal year. The budget to be adopted shall be prepared in
accordance with Section 42126. The agenda for that hearing shall be
posted at least 72 hours before the public hearing and shall include
the location where the budget will be available for public
inspection.
   (A) For the 2011-12 fiscal year, notwithstanding any of the
standards and criteria adopted by the state board pursuant to Section
33127, each school district budget shall project the same level of
revenue per unit of average daily attendance as it received in the
2010-11 fiscal year and shall maintain staffing and program levels
commensurate with that level.
   (B) For the 2011-12 fiscal year, the school district shall not be
required to demonstrate that it is able to meet its financial
obligations for the two subsequent fiscal years.
   (2) Adopt a budget  and take action on a local control and
accountability plan pursuant to Sections 52060 and 52064  . Not
later than five days after that adoption or by July 1, whichever
occurs first, the governing board of the school district shall file
that budget with the county superintendent of schools.  That
  The  budget  , the local control and
accountability plan,  and supporting data shall be maintained
and made available for public review. If the governing board of the
school district does not want all or a portion of the
                               property tax requirement levied for
the purpose of making payments for the interest and redemption
charges on indebtedness as described in paragraph (1) or (2) of
subdivision (b) of Section 1 of Article XIII A of the California
Constitution, the budget shall include a statement of the amount or
portion for which a levy shall not be made.  For the 2014-15
fiscal year and each fiscal year thereafter, the governing board of
the school district shall not adopt a budget before the governing
board of the school district adopts a local control and
accountability plan or approves   an update to an existing
local control and accountability plan pursuant to Sections 52060 and
52064. The governing board of a school district shall not adopt a
budget that does not align with the local control and accountability
plan that applies to the subsequent fiscal year. 
   (b) The county superintendent of schools may accept changes in any
statement included in the budget, pursuant to subdivision (a), of
the amount or portion for which a property tax levy shall not be
made. The county superintendent of schools or the county auditor
shall compute the actual amounts to be levied on the property tax
rolls of the school district for purposes that exceed apportionments
to the school district pursuant to Chapter 6 (commencing with Section
95) of Part 0.5 of Division 1 of the Revenue and Taxation Code. Each
school district shall provide all data needed by the county
superintendent of schools or the county auditor to compute the
amounts. On or before August 15, the county superintendent of schools
shall transmit the amounts computed to the county auditor who shall
compute the tax rates necessary to produce the amounts. On or before
September 1, the county auditor shall submit the rate computed to the
board of supervisors for adoption.
   (c) The county superintendent of schools shall do all of the
following:
   (1) Examine the adopted budget to determine whether it complies
with the standards and criteria adopted by the state board pursuant
to Section 33127 for application to final local educational agency
budgets. The county superintendent of schools shall identify, if
necessary, technical corrections that are required to be made to
bring the budget into compliance with those standards and criteria.
   (2) Determine whether the adopted budget will allow the school
district to meet its financial obligations during the fiscal year and
is consistent with a financial plan that will enable the school
district to satisfy its multiyear financial commitments. In addition
to his or her own analysis of the budget of each school district, the
county superintendent of schools shall review and consider studies,
reports, evaluations, or audits of the school district that were
commissioned by the school district, the county superintendent of
schools, the Superintendent, and state control agencies and that
contain evidence that the school district is showing fiscal distress
under the standards and criteria adopted in Section 33127 or that
contain a finding by an external reviewer that more than three of the
15 most common predictors of a school district needing intervention,
as determined by the County Office Fiscal Crisis and Management
Assistance Team, are present. The county superintendent of schools
shall either conditionally approve or disapprove a budget that does
not provide adequate assurance that the school district will meet its
current and future obligations and resolve any problems identified
in studies, reports, evaluations, or audits described in this
paragraph. 
   (3) Determine whether the adopted budget will allow the school
district to implement the specific actions and strategies included in
the local control and accountability plan adopted by the governing
board of the school district pursuant to Section 52060 and 52064.

   (d) On or before August 15, the county superintendent of schools
shall approve, conditionally approve, or disapprove the adopted
budget for each school district.  For the 2014-15 fiscal year and
each fiscal year   thereafter, the county superintendent of
schools shall disapprove a budget if a school district does not file
a local control and accountability plan with the county
superintendent of schools, if the Superintendent determines that a
local control and accountability plan filed does not adhere to the
template adopted by the state board pursuant to Section 52066 or does
not include all of the components identified in subdivision (a) of
Section 52064, or if the county superintendent of schools determines
that the expenditures included in the budget do not reflect the costs
necessary to implement the plan.  If a school district does not
submit a budget to the county superintendent of schools, the county
superintendent of schools shall develop, at school district expense,
a budget for that school district by September 15 and transmit that
budget to the governing board of the school district. The budget
prepared by the county superintendent of schools shall be deemed
adopted, unless the county superintendent of schools approves any
modifications made by the governing board of the school district. The
approved budget shall be used as a guide for the school district's
priorities. The Superintendent shall review and certify the budget
approved by the county. If, pursuant to the review conducted pursuant
to subdivision (c), the county superintendent of schools determines
that the adopted budget for a school district does not satisfy
paragraph (1) or (2) of that subdivision, he or she shall
conditionally approve or disapprove the budget and, not later than
August 15, transmit to the governing board of the school district, in
writing, his or her recommendations regarding revision of the budget
and the reasons for those recommendations, including, but not
limited to, the amounts of any budget adjustments needed before he or
she can approve that budget. The county superintendent of schools
may assign a fiscal adviser to assist the school district to develop
a budget in compliance with those revisions. In addition, the county
superintendent of schools may appoint a committee to examine and
comment on the superintendent's review and recommendations, subject
to the requirement that the committee report its findings to the
county superintendent of schools no later than August 20. For the
2011-12 fiscal year, notwithstanding any of the standards and
criteria adopted by the state board pursuant to Section 33127, the
county superintendent of schools, as a condition on approval of a
school district budget, shall not require a school district to
project a lower level of revenue per unit of average daily attendance
than it received in the 2010-11 fiscal year nor require the school
district to demonstrate that it is able to meet its financial
obligations for the two subsequent fiscal years.
   (e) On or before September 8, the governing board of the school
district shall revise the adopted budget to reflect changes in
projected income or expenditures subsequent to July 1, and to include
any response to the recommendations of the county superintendent of
schools, shall adopt the revised budget, and shall file the revised
budget with the county superintendent of schools. Before revising the
budget, the governing board of the school district shall hold a
public hearing regarding the proposed revisions, to be conducted in
accordance with Section 42103. In addition, if the adopted budget is
disapproved pursuant to subdivision (d), the governing board of the
school district and the county superintendent of schools shall review
the disapproval and the recommendations of the county superintendent
of schools regarding revision of the budget at the public hearing.
The revised budget and supporting data shall be maintained and made
available for public review.
   (1) For the 2011-12 fiscal year, notwithstanding any of the
standards and criteria adopted by the state board pursuant to Section
33127, each school district budget shall project the same level of
revenue per unit of average daily attendance as it received in the
2010-11 fiscal year and shall maintain staffing and program levels
commensurate with that level.
   (2) For the 2011-12 fiscal year, the school district shall not be
required to demonstrate that it is able to meet its financial
obligations for the two subsequent fiscal years.
   (f) On or before September 22, the county superintendent of
schools shall provide a list to the Superintendent identifying all
school districts for which budgets may be disapproved.
   (g) The county superintendent of schools shall examine the revised
budget to determine whether it (1) complies with the standards and
criteria adopted by the state board pursuant to Section 33127 for
application to final local educational agency budgets, (2) allows the
school district to meet its financial obligations during the fiscal
year, (3) satisfies all conditions established by the county
superintendent of schools in the case of a conditionally approved
budget, and (4) is consistent with a financial plan that will enable
the school district to satisfy its multiyear financial commitments,
and, not later than October 8, shall approve or disapprove the
revised budget. If the county superintendent of schools disapproves
the budget, he or she shall call for the formation of a budget review
committee pursuant to Section 42127.1, unless the governing board of
the school district and the county superintendent of schools agree
to waive the requirement that a budget review committee be formed and
the department approves the waiver after determining that a budget
review committee is not necessary. Upon the grant of a waiver, the
county superintendent of schools immediately has the authority and
responsibility provided in Section 42127.3. Upon approving a waiver
of the budget review committee, the department shall ensure that a
balanced budget is adopted for the school district by November 30. If
no budget is adopted by November 30, the Superintendent may adopt a
budget for the school district. The Superintendent shall report to
the Legislature and the Director of Finance by December 10 if any
school district, including a school district that has received a
waiver of the budget review committee process, does not have an
adopted budget by November 30. This report shall include the reasons
why a budget has not been adopted by the deadline, the steps being
taken to finalize budget adoption, the date the adopted budget is
anticipated, and whether the Superintendent has or will exercise his
or her authority to adopt a budget for the school district. For the
2011-12 fiscal year, notwithstanding any of the standards and
criteria adopted by the state board pursuant to Section 33127, the
county superintendent of schools, as a condition on approval of a
school district budget, shall not require a school district to
project a lower level of revenue per unit of average daily attendance
than it received in the 2010-11 fiscal year nor require the school
district to demonstrate that it is able to meet its financial
obligations for the two subsequent fiscal years.
   (h) Not later than October 8, the county superintendent of schools
shall submit a report to the Superintendent identifying all school
districts for which budgets have been disapproved or budget review
committees waived. The report shall include a copy of the written
response transmitted to each of those school districts pursuant to
subdivision (d).
   (i) Notwithstanding any other provision of this section, the
budget review for a school district shall be governed by paragraphs
(1), (2), and (3), rather than by subdivisions (e) and (g), if the
governing board of the school district so elects and notifies the
county superintendent of schools in writing of that decision, not
later than October 31 of the immediately preceding calendar year. On
or before July 1, the governing board of a school district for which
the budget review is governed by this subdivision, rather than by
subdivisions (e) and (g), shall conduct a public hearing regarding
its proposed budget in accordance with Section 42103.
   (1) If the adopted budget of a school district is disapproved
pursuant to subdivision (d), on or before September 8, the governing
board of the school district, in conjunction with the county
superintendent of schools, shall review the superintendent's
recommendations at a regular meeting of the governing board of the
school district and respond to those recommendations. The response
shall include any revisions to the adopted budget and other proposed
actions to be taken, if any, as a result of those recommendations.
   (2) On or before September 22, the county superintendent of
schools shall provide a list to the Superintendent identifying all
school districts for which a budget may be tentatively disapproved.
   (3) Not later than October 8, after receiving the response
required under paragraph (1), the county superintendent of schools
shall review that response and either approve or disapprove the
budget. If the county superintendent of schools disapproves the
budget, he or she shall call for the formation of a budget review
committee pursuant to Section 42127.1, unless the governing board of
the school district and the county superintendent of schools agree to
waive the requirement that a budget review committee be formed and
the department approves the waiver after determining that a budget
review committee is not necessary. Upon the grant of a waiver, the
county superintendent has the authority and responsibility provided
to a budget review committee in Section 42127.3. Upon approving a
waiver of the budget review committee, the department shall ensure
that a balanced budget is adopted for the school district by November
30. The Superintendent shall report to the Legislature and the
Director of Finance by December 10 if any school district, including
a school district that has received a waiver of the budget review
committee process, does not have an adopted budget by November 30.
This report shall include the reasons why a budget has not been
adopted by the deadline, the steps being taken to finalize budget
adoption, and the date the adopted budget is anticipated. For the
2011-12 fiscal year, notwithstanding any of the standards and
criteria adopted by the state board pursuant to Section 33127, the
county superintendent of schools, as a condition on approval of a
school district budget, shall not require a school district to
project a lower level of revenue per unit of average daily attendance
than it received in the 2010-11 fiscal year nor require the school
district to demonstrate that it is able to meet its financial
obligations for the two subsequent fiscal years.
   (4) Not later than 45 days after the Governor signs the annual
Budget Act, the school district shall make available for public
review any revisions in revenues and expenditures that it has made to
its budget to reflect the funding made available by that Budget Act.

   (j) Any school district for which the county board of education
serves as the governing board of the school district is not subject
to subdivisions (c) to (h), inclusive, but is governed instead by the
budget procedures set forth in Section 1622.
   SEC. 131.    Section 42127.8 of the   
 Education Code   is amended to read: 
   42127.8.  (a) The governing board provided for in subdivision (b)
shall establish a unit to be known as the County Office Fiscal Crisis
and Management Assistance Team. The team shall consist of persons
having extensive experience in school district budgeting, accounting,
data processing, telecommunications, risk management, food services,
pupil transportation, purchasing and warehousing, facilities
maintenance and operation, and personnel administration,
organization, and staffing. The Superintendent may appoint one
employee of the department to serve on the unit. The unit shall be
operated under the immediate direction of an appropriate county
office of education selected jointly, in response to an application
process, by the Superintendent and the president of the state board
or his or her designee.
   (b) The unit established under subdivision (a) shall be selected
and governed by a 25-member governing board consisting of one
representative chosen by the California County Superintendents
Educational Services Association from each of the 11 county service
regions designated by the association, 11 superintendents of school
districts chosen by the Association of California School
Administrators from each of the 11 county service regions, one
representative from the department chosen by the Superintendent, the
Chancellor of the California Community Colleges or his or her
designee, and one member of a community college district governing
board chosen by the chancellor. The governing board of the County
Office Fiscal Crisis and Management Assistance Team shall select a
county superintendent of schools to chair the unit.
   (c) (1) The Superintendent may request the unit to provide the
assistance described in subdivision (b) of Section 1624, Section
1630, subdivision (b) of Section 42127.3, subdivision (c) of Section
42127.6, Section 42127.9, and subdivision (a) of Section 
42238.2,   42238.051,  and to review the fiscal and
administrative condition of any county office of education, school
district, or charter school.
   (2) A county superintendent of schools may request the unit to
review the fiscal or administrative condition of a school district or
charter school under his or her jurisdiction.
   (3) The Board of Governors of the California Community Colleges
may request the unit to provide the assistance described in Section
84041.
   (d) In addition to the functions described in subdivision (c), the
unit shall do all of the following:
   (1) Provide fiscal management assistance, at the request of any
school district, charter school, or county office of education, or,
pursuant to subdivision (g) of Section 84041, at the request of any
community college district. Each school district, charter school, or
county office of education receiving that assistance shall be
required to pay the onsite personnel costs and travel costs incurred
by the unit for that purpose, pursuant to rates determined by the
governing board established under subdivision (b). The governing
board annually shall distribute rate information to each school
district, charter school, and county office of education.
   (2) Facilitate training for members of the governing board of the
school district, district and county superintendents, chief financial
officers within the district, and schoolsite personnel whose primary
responsibility is to address fiscal issues. Training services shall
emphasize efforts to improve fiscal accountability and expand the
fiscal competency of local agencies. The unit shall use state
professional associations, private organizations, and public agencies
to provide guidance, support, and the delivery of any training
services.
   (3) Facilitate fiscal management training through the 11 county
service regions to county office of education staff to ensure that
they develop the technical skills necessary to perform their
fiduciary duties. The governing board established pursuant to
subdivision (b) shall determine the extent of the training that is
necessary to comply with this paragraph.
   (4) Produce a training calendar, to be disseminated semiannually
to each county service region, that publicizes all of the fiscal
training services that are being offered at the local, regional, and
state levels.
   (e) The governing board shall reserve not less than 25 percent,
nor more than 50 percent, of its revenues each year for expenditure
for the costs of contracts and professional services as management
assistance to school districts or county superintendents of schools
in which the board determines that a fiscal emergency exists.
   (f) The governing board established under subdivision (b) may levy
an annual assessment against each county office of education that
elects to participate under this section in an amount not to exceed
twenty cents ($0.20) per unit of total average daily attendance for
all school districts within the county. The revenues collected
pursuant to that assessment shall be applied to the expenses of the
unit.
   (g) The governing board established under subdivision (b) may pay
to the department, from any available funds, a reasonable amount to
reimburse the department for actual administrative expenses incurred
in the review of the budgets and fiscal conditions of school
districts, charter schools, and county superintendents of schools.
   (h) When employed as a fiscal adviser by the department pursuant
to Section 1630, employees of the unit established pursuant to
subdivision (a) shall be considered employees of the department for
purposes of errors and omissions liability insurance.
   (i) (1) The unit shall request and review applications to
establish regional teams of education finance experts throughout the
state.
   (2) To the extent that funding is provided for purposes of this
subdivision in the annual Budget Act or through another
appropriation, regional teams selected by the Superintendent, in
consultation with the unit, shall provide training and technical
expertise to school districts, charter schools, and county offices of
education facing fiscal difficulties.
   (3) The regional teams shall follow the standards and guidelines
of and remain under the general supervision of the governing board
established under subdivision (b).
   (4) It is the intent of the Legislature that, to the extent
possible, the regional teams be distributed geographically throughout
the various regions of the state in order to provide timely,
cost-effective expertise to school districts, charter schools, county
offices of education, and community college districts throughout the
state.
   SEC. 132.    Section 42238 of the  
Education Code   is repealed.  
   42238.  (a) For the 1984-85 fiscal year and each fiscal year
thereafter, the county superintendent of schools shall determine a
revenue limit for each school district in the county pursuant to this
section.
   (b) The base revenue limit for a fiscal year shall be determined
by adding to the base revenue limit for the prior fiscal year the
following amounts:
   (1) The inflation adjustment specified in Section 42238.1.
   (2) For the 1995-96 fiscal year, the equalization adjustment
specified in Section 42238.4.
   (3) For the 1996-97 fiscal year, the equalization adjustments
specified in Sections 42238.41, 42238.42, and 42238.43.
   (4) For the 1985-86 fiscal year, the amount per unit of average
daily attendance received in the 1984-85 fiscal year pursuant to
Section 42238.7.
   (5) For the 1985-86, 1986-87, and 1987-88 fiscal years, the amount
per unit of average daily attendance received in the prior fiscal
year pursuant to Section 42238.8.
   (6) For the 2004-05 fiscal year, the equalization adjustment
specified in Section 42238.44.
   (7) For the 2006-07 fiscal year, the equalization adjustment
specified in Section 42238.48.
   (8) For the 2011-12 fiscal year, the equalization adjustment
specified in Section 42238.49.
   (c) (1) (A) For the 2010-11 fiscal year, the Superintendent shall
compute an add-on for each school district by adding the inflation
adjustment specified in Section 42238.1 to the adjustment specified
in Section 42238.485.
   (B) For the 2011-12 fiscal year and each fiscal year thereafter,
the Superintendent shall compute an add-on for each school district
by adding the inflation adjustment specified in Section 42238.1 to
the amount computed pursuant to this paragraph for the prior fiscal
year.
   (2) Commencing with the 2010-11 fiscal year, the Superintendent
shall compute an add-on for each school district by dividing each
school district's fiscal year average daily attendance computed
pursuant to Section 42238.5 by the total adjustments in funding for
each district made for the 2007-08 fiscal year pursuant to Section
42238.22 as it read on January 1, 2009.
   (d) The sum of the base revenue limit computed pursuant to
subdivision (b) and the add-on computed pursuant to subdivision (c)
shall be multiplied by the district average daily attendance computed
pursuant to Section 42238.5.
   (e) For districts electing to compute units of average daily
attendance pursuant to paragraph (2) of subdivision (a) of Section
42238.5, the amount computed pursuant to Article 4 (commencing with
Section 42280) shall be added to the amount computed in subdivision
(c) or (d), as appropriate.
   (f) For the 1984-85 fiscal year only, the county superintendent
shall reduce the total revenue limit computed in this section by the
amount of the decreased employer contributions to the Public
Employees' Retirement System resulting from enactment of Chapter 330
of the Statutes of 1982, offset by any increase in those
contributions, as of the 1983-84 fiscal year, resulting from
subsequent changes in employer contribution rates.
   (g) The reduction required by subdivision (f) shall be calculated
as follows:
   (1) Determine the amount of employer contributions that would have
been made in the 1983-84 fiscal year if the applicable Public
Employees' Retirement System employer contribution rate in effect
immediately before the enactment of Chapter 330 of the Statutes of
1982 was in effect during the 1983-84 fiscal year.
   (2) Subtract from the amount determined in paragraph (1) the
greater of subparagraph (A) or (B):
   (A) The amount of employer contributions that would have been made
in the 1983-84 fiscal year if the applicable Public Employees'
Retirement System employer contribution rate in effect immediately
after the enactment of Chapter 330 of the Statutes of 1982 was in
effect during the 1983-84 fiscal year.

(B) The actual amount of employer contributions made to the Public
Employees' Retirement System in the 1983-84 fiscal year.
   (3) For purposes of this subdivision, employer contributions to
the Public Employees' Retirement System for either of the following
shall be excluded from the calculation specified above:
   (A) Positions supported totally by federal funds that were subject
to supplanting restrictions.
   (B) Positions supported, to the extent of employer contributions
not exceeding twenty-five thousand dollars ($25,000) by a single
educational agency, from a revenue source determined on the basis of
equity to be properly excludable from the provisions of this
subdivision by the Superintendent with the approval of the Director
of Finance.
   (4) For accounting purposes, the reduction made by this
subdivision may be reflected as an expenditure from appropriate
sources of revenue as directed by the Superintendent.
   (h) The Superintendent shall apportion to each school district the
amount determined in this section less the sum of:
   (1) The district's property tax revenue received pursuant to
Chapter 3.5 (commencing with Section 75) and Chapter 6 (commencing
with Section 95) of Part 0.5 of Division 1 of the Revenue and
Taxation Code.
   (2) The amount, if any, received pursuant to Part 18.5 (commencing
with Section 38101) of Division 2 of the Revenue and Taxation Code.
   (3) The amount, if any, received pursuant to Chapter 3 (commencing
with Section 16140) of Part 1 of Division 4 of Title 2 of the
Government Code.
   (4) Prior years' taxes and taxes on the unsecured roll.
   (5) Fifty percent of the amount received pursuant to Section
41603.
   (6) (A) The amount, if any, received pursuant to the Community
Redevelopment Law (Part 1 (commencing with Section 33000) of Division
24 of the Health and Safety Code), except for any amount received
pursuant to Section 33401 or 33676 of the Health and Safety Code that
is used for land acquisition, facility construction, reconstruction,
or remodeling, or deferred maintenance, except for any amount
received pursuant to Section 33492.15 of, paragraph (4) of
subdivision (a) of Section 33607.5 of, or Section 33607.7 of, the
Health and Safety Code that is allocated exclusively for educational
facilities.
   (B) The amount, if any, received pursuant to Sections 34177,
34179.5, 34179.6, and 34188 of the Health and Safety Code.
   (C) The amount, if any, received pursuant to subparagraph (B) of
paragraph (3) of subdivision (e) of Section 36 of Article XIII of the
California Constitution.
   (7) For a unified school district, other than a unified school
district that has converted all of its schools to charter status
pursuant to Section 47606, the amount of statewide average
general-purpose funding per unit of average daily attendance received
by school districts for each of four grade level ranges, as computed
by the department pursuant to Section 47633, multiplied by the
average daily attendance, in corresponding grade level ranges, of any
pupils who attend charter schools funded pursuant to Chapter 6
(commencing with Section 47630) of Part 26.8 of Division 4 for which
the school district is the sponsoring local educational agency, as
defined in Section 47632, and who reside in and would otherwise have
been eligible to attend a noncharter school of the school district.
   (i) A transfer of pupils of grades 7 and 8 between an elementary
school district and a high school district shall not result in the
receiving school district receiving a revenue limit apportionment for
those pupils that exceeds 105 percent of the statewide average
revenue limit for the type and size of the receiving school district.

   SEC. 133.    Section 42238.02 is added to the 
 Education Code   , to read:  
   42238.02.  (a) The amount computed pursuant to this section shall
be known as the school district and charter school local control
funding formula.
   (b) (1) For purposes of this section "unduplicated pupil" means a
pupil enrolled in a school district or a charter school who is either
classified as an English learner pursuant to Section 52164, as that
section read on January 1, 2013, eligible to receive a free or
reduced-price meal pursuant to Section 49552, as that section read on
January 1, 2013, or is a foster youth pursuant to Sections 300 and
601 of the Welfare and Institutions Code. A pupil shall be counted
only once for purposes of this section if any of the following apply:

   (A) The pupil is classified as an English learner and is eligible
for a free or reduced-price meal.
   (B) The pupil is classified as an English learner and is a foster
youth.
   (C) The pupil is classified as a foster youth and is eligible for
a free or reduced-price meal.
   (D) The pupil is classified as an English learner, is eligible for
a free or reduced-price meal, and is a foster youth.
   (2) For purposes if this section, a pupil shall not be classified
as an English Learner for more than five school years in total.
   (3) Commencing with the 2013-14 fiscal year, a school district or
charter school shall annually report their enrolled unduplicated
pupil, free and reduced-price meal eligibility, foster youth, and
English learner pupil counts to the Superintendent.
   (4) Commencing with the 2013-14 fiscal year, a county office of
education shall review and validate reported English learner, foster
youth, and free or reduced-price meal eligible pupil data for school
districts and charter schools under their jurisdiction to ensure the
data is reported accurately.
   (5) The counts of unduplicated pupils shall be derived by the
Superintendent using the California Longitudinal Pupil Achievement
Data System.
   (6) The Superintendent shall calculate the percentage of
unduplicated pupils for each school district and charter school by
dividing the enrollment of unduplicated pupils in a school district
or charter school by the total enrollment in that school district or
charter school.
   (c) Commencing with the 2013-14 fiscal year and each fiscal year
thereafter, the Superintendent shall annually calculate a local
control funding formula grant for each school district and charter
school in the state pursuant to this section.
   (d) The Superintendent shall compute a grade span adjusted base
grant equal to the total of the following amounts:
   (1) For the 2013-14 fiscal year, a base grant of:
   (A) Seven thousand six hundred eighty dollars ($7,680) for average
daily attendance in grades 9 to 12, inclusive.
   (B) Six thousand six hundred twenty-eight dollars ($6,628) for
average daily attendance in grades 7 and 8.
   (C) Six thousand four hundred thirty-seven dollars ($6,437) for
average daily attendance in grades 4 to 6, inclusive.
   (D) Six thousand three hundred forty-two dollars ($6,342) for
average daily attendance in kindergarten and grades 1 to 3,
inclusive.
   (2) In each year the grade span adjusted base grants in paragraph
(1) shall be adjusted by the percentage change in the annual average
value of the Implicit Price Deflator for State and Local Government
Purchases of Goods and Services for the United States, as published
by the United States Department of Commerce for the 12-month period
ending in the third quarter of the prior fiscal year. This percentage
change shall be determined using the latest data available as of May
10 of the preceding fiscal year compared with the annual average
value of the same deflator for the 12-month period ending in the
third quarter of the second preceding fiscal year, using the latest
data available as of May 10 of the preceding fiscal year, as reported
by the Department of Finance.
   (3) (A) The Superintendent shall compute an additional adjustment
to the kindergarten and grades 1 to 3, inclusive, base grant as
adjusted for inflation pursuant to paragraph (2) equal to 11.23
percent. The additional grant shall be calculated by multiplying the
kindergarten and grades 1 to 3, inclusive, base grant as adjusted by
paragraph (2) by 11.23 percent.
   (B) Until paragraph (4) of subdivision (b) of Section 42238.03 is
effective, as a condition of the receipt of funds in this paragraph,
a school district shall make progress toward maintaining an annual
average class size of not more than 24 pupils for each classroom per
school site in kindergarten and grades 1 to 3, inclusive, unless a
collectively bargained alternative annual average class size for each
classroom per school site in those grades is agreed to by the school
district, pursuant to the following calculation:
   (i) Determine a school district's annual average class size for
each classroom per school site for kindergarten and grades 1 to 3,
inclusive, in the prior year. For the 2013-14 fiscal year, this
amount shall be the annual average class size for each classroom per
school site for kindergarten and grades 1 to 3, inclusive, in the
2012-13 fiscal year.
   (ii) Determine a school district's percentage of total need
pursuant to paragraph (2) of subdivision (b) of Section 42238.03.
   (iii) Determine the percentage of the need calculated in clause
(ii) that is met by funding provided to the school district pursuant
to paragraph (3) of subdivision (b) of Section 42238.03.
   (iv) Determine the difference between the amount computed pursuant
to clause (i) and an annual average class size of not more than 24
pupils for each classroom per school site.
   (v) Calculate a current year annual average class size adjustment
for each classroom per school site for kindergarten and grades 1 to
3, inclusive, equal to the adjustment calculated in clause (iv)
multiplied by one minus the percentage determined pursuant to clause
(iii).
   (C) School districts that have an annual average class size for
each classroom per school site for kindergarten and grades 1 to 3,
inclusive, of 24 pupils or less for each classroom per school site in
the 2012-13 fiscal year, shall be exempt from the requirements of
subparagraph (B) so long as the school district continues to maintain
an annual average class size for each classroom per school site for
kindergarten and grades 1 to 3, inclusive, of not more than 24 pupils
in each classroom, unless a collectively bargained alternative ratio
is agreed to by the school district.
   (D) Upon full implementation of the local control funding formula,
as a condition of the receipt of funds in this paragraph, all school
districts shall maintain an annual average class size for each
classroom per school site for kindergarten and grades 1 to 3,
inclusive, of not more than 24 pupils for each classroom per school
site in kindergarten and grades 1 to 3, inclusive, unless a
collectively bargained alternative ratio is agreed to by the school
district.
   (E) The annual average class size requirement for each classroom
per school site for kindergarten and grades 1 to 3, inclusive,
established pursuant to this paragraph shall not be subject to waiver
by the state board pursuant to Section 33050 or by the
Superintendent.
   (4) The Superintendent shall compute an additional adjustment to
the base grant for grades 9 to 12, inclusive, as adjusted for
inflation pursuant to paragraph (2), equal to 2.8 percent. The
additional grant shall be calculated by multiplying the base grant
for grades 9 to 12, inclusive, as adjusted by paragraph (2), by 2.8
percent.
   (e) The Superintendent shall compute a supplemental grant add-on
equal to 35 percent of the base grants as specified in subparagraphs
(A) to (D), inclusive, of paragraph (1) of subdivision (d), as
adjusted by paragraph (2) of subdivision (d), for each school
district or charter school percentage of unduplicated pupils. The
supplemental grant shall be calculated by multiplying the base grants
as specified in subparagraphs (A) to (D), inclusive, of paragraph
(1), as adjusted by paragraph (2) of subdivision (d), by 35 percent
and by the percentage of unduplicated pupils in that school district
or charter school.
   (f) The Superintendent shall compute a concentration grant add-on
equal to 35 percent of the base grants as specified in subparagraphs
(A) to (D), inclusive, of paragraph (1) of subdivision (d), as
adjusted by paragraph (2) of subdivision (d), for each school
district's or charter school's percentage of unduplicated pupils in
excess of 50 percent of the school district's or charter school's
total enrollment. The concentration grant shall be calculated by
multiplying the base grant as specified in subparagraphs (A) to (D),
inclusive, of paragraph (1) of subdivision (d), as adjusted by
paragraph (2) of subdivision (d), by 35 percent and by the percentage
of unduplicated pupils in excess of 50 percent of the total
enrollment in that school district or charter school. For a charter
school physically located in only one school district, the percentage
of unduplicated pupils in excess of 50 percent used to calculate
concentration grants shall not exceed the percentage of unduplicated
pupils in excess of 50 percent of the school district in which the
charter school is physically located. If the charter school is
physically located in more than one school district, the charter
school's percentage of unduplicated pupils in excess of 50 percent
used to calculate concentration grants shall not exceed that of the
school district with the highest percentage of unduplicated pupils in
excess of 50 percent within the charter school's physical location.
   (g) The Superintendent shall compute an add-on to the total sum of
a school district's or charter school's base, supplemental, and
concentration grants equal to the amount of funding a school district
or charter school received from funds allocated pursuant to the
Targeted Instructional Improvement Block Grant program, as set forth
in Article 6 (commencing with Section 41540) of Chapter 3.2, for the
2012-13 fiscal year, as that article read on January 1, 2013. A
school district or charter school shall not receive a total funding
amount from this add-on greater than the total amount of funding
received by the school district or charter school from that program
in the 2012-13 fiscal year.
   (h) The Superintendent shall compute an add-on to the total sum of
a school district's or charter school's base, supplemental, and
concentration grants equal to the amount of funding a school district
or charter school received from funds allocated pursuant to the
Home-to-School Transportation program, as set forth in former Article
2 (commencing with Section 39820) of Chapter 1 of Part 23.5 and
former Article 10 (commencing with Section 41850) of Chapter 5, for
the 2012-13 fiscal year. A school district or charter school shall
not receive a total funding amount from this add-on greater than the
total amount received by the school district or charter school for
that program in the 2012-13 fiscal year.
   (i) The sum of the local control funding formula rates computed
pursuant to subdivisions (c) to (f), inclusive, shall be multiplied
by:
   (1) For school districts, the average daily attendance of the
school district in the corresponding grade level ranges computed
pursuant to Section 42238.05.
   (2) For charter schools, the total current year average daily
attendance in the corresponding grade level ranges.
   (j) Notwithstanding any other law, the Superintendent shall adjust
the sum of each school district's or charter school's amount
determined in subdivisions (g) to (i), inclusive, pursuant to the
calculation specified in Section 42238.03, less the sum of the
following:
   (1) (A) For school districts, the property tax revenue received
pursuant to Chapter 3.5 (commencing with Section 75) and Chapter 6
(commencing with Section 95) of Part 0.5 of Division 1 of the Revenue
and Taxation Code.
   (B) For charter schools, the in-lieu property tax amount provided
to a charter school pursuant to Section 47635.
   (2) The amount, if any, received pursuant to Part 18.5 (commencing
with Section 38101) of Division 2 of the Revenue and Taxation Code.
   (3) The amount, if any, received pursuant to Chapter 3 (commencing
with Section 16140) of Part 1 of Division 4 of Title 2 of the
Government Code.
   (4) Prior years' taxes and taxes on the unsecured roll.
   (5) Fifty percent of the amount received pursuant to Section
41603.
   (6) The amount, if any, received pursuant to the Community
Redevelopment Law (Part 1 (commencing with Section 33000) of Division
24 of the Health and Safety Code), less any amount received pursuant
to Section 33401 or 33676 of the Health and Safety Code that is used
for land acquisition, facility construction, reconstruction, or
remodeling, or deferred maintenance and that is not an amount
received pursuant to Section 33492.15, or paragraph (4) of
subdivision (a) of Section 33607.5, or Section 33607.7 of the Health
and Safety Code that is allocated exclusively for educational
facilities.
   (7) The amount, if any, received pursuant to Sections 34183 and
34188 of the Health and Safety Code.
   (8) (A) Revenue received pursuant to subparagraph (B) of paragraph
(3) of subdivision (e) of Section 36 of Article XIII of the
California Constitution.
   (B) Subparagraph (A) shall only offset entitlements provided for
the purpose of paragraph (1) of subdivision (a) of Section 42238.03
as continued in subsequent years by paragraph (3) of subdivision (a)
of Section 42238.03.
   (k) A school district shall annually transfer to each of its
charter schools funding in lieu of property taxes pursuant to Section
47635.
   (l) (1) The funds apportioned pursuant to this section and Section
42238.03, shall be available to a school district or charter school
for any locally determined educational purpose.
   (2) School districts and charter schools that receive supplemental
or concentration grants, or both, pursuant to this section shall use
those funds for any locally determined educational purpose so long
as it substantially benefits the unduplicated pupils that generated
those funds as provided for in a school district's or charter school'
s local control and accountability plan.
   (m) Nothing in this section shall be interpreted to authorize a
school district that receives funding on behalf of a charter school
pursuant to Section 47651 to redirect this funding for another
purpose unless otherwise authorized in law or pursuant to an
agreement between a charter school and its chartering authority.
   (n) Any calculations in law that are used for purposes of
determining if a local educational agency is an excess tax school
entity or basic aid school district, including, but not limited to,
this section and Sections 42238.03, 41544, 47660, 47632, 47663,
48310, and 48359.5, and Section 95 of the Revenue and Taxation Code,
shall be made exclusive of the revenue received pursuant to
subparagraph (B) of paragraph (3) of subdivision (e) of Section 36 of
Article XIII of the California Constitution.
   (o) A school district that does not receive an apportionment of
state funds pursuant to this section as implemented pursuant to
Section 42238.03, excluding funds apportioned due to the requirements
of subdivision (d) of Section 42238.03 shall be considered a "basic
aid school district" or an "excess tax entity." 
   SEC. 134.    Section 42238.03 is added to the 
 Education Code   , to read:  
   42238.03.  Commencing with the 2013-14 fiscal year and each fiscal
year thereafter, the Superintendent shall allocate the
appropriations in Section 14002 to each charter school and school
district according to the following formula:
   (a) Calculate the prior year amount of funding for each school
district and charter school, as follows:
   (1) For the 2013-14 fiscal year, the prior year funding level
shall be the total of all of the following:
   (A) Entitlements for revenue limits in the 2012-13 fiscal year
pursuant to Article 2 (commencing with Section 42238) and Article 2
(commencing with Section 47633) of Chapter 6 of Part 26.8 of Division
4, as those articles read on June 30, 2013.
   (B) Notwithstanding subparagraph (A), entitlements for revenue
limits for fiscal years before June 30, 2013, shall be annually
adjusted, as necessary, for average daily attendance and revenue
offsets, as specified in paragraphs (1) to (7), inclusive, of
subdivision (h) of Section 42238, as that section read on June 30,
2013, and the in-lieu property tax amount provided to a charter
school pursuant to Section 47635, as that section read on June 30,
2013.
   (2) (A) Entitlements from items contained in Section 2.00, as
adjusted pursuant to Section 12.42, of the Budget Act of 2012 for
Items 6110-104-0001, 6110-105-0001, 6110-108-0001, 6110-111-0001,
6110-119-0001, 6110-122-0001, 6110-124-0001, 6110-128-0001,
6110-137-0001, 6110-144-0001, 6110-156-0001, 6110-158-0001,
6110-166-0001, 6110-167-0001, 6110-181-0001, 6110-188-0001,
6110-189-0001, 6110-190-0001, 6110-193-0001, 6110-195-0001,
6110-198-0001, 6110-204-0001, 6110-208-0001, 6110-209-0001,
6110-211-0001, 6110-212-0001, 6110-227-0001, 6110-228-0001,
6110-232-0001, 6110-240-0001, 6110-242-0001, 6110-243-0001,
6110-244-0001, 6110-245-0001, 6110-246-0001, 6110-247-0001,
6110-248-0001, 6110-260-0001, 6110-265-0001, 6110-267-0001,
6110-268-0001, 6360-101-0001, and 2012-13 fiscal year funding for the
Class Size Reduction Program pursuant to Chapter 6.10 (commencing
with Section 52120) of Part 28 of Division 4, as it read on January
1, 2013.
   (B) Entitlements pursuant to Section 47634.1, as that section read
on January 1, 2013, shall be adjusted for growth in average daily
attendance.
   (3) For the 2014-15 fiscal year and each fiscal year thereafter,
the prior year amount shall be the amount each school district or
charter school received in the prior year pursuant to this section.
   (b) Calculate an adjustment to the amount in subdivision (a) as
follows:
   (1) Subtract the amount in subdivision (a) from the amount
computed for each school district or charter school under the local
control funding formula entitlements in subdivision (j) of Section
42238.02. School districts and charter schools with a negative
difference shall be deemed to have a zero difference.
   (2) Each school district's and charter school's total need as
calculated pursuant to paragraph (1) shall be divided by the sum of
all school districts' and charter schools' total need to determine
the school district's or charter school's respective proportions of
total need.
   (3) Each school district's and charter school's proportion of
total need shall be multiplied by any available appropriations for
this purpose, and added to the school district's or charter school's
funding amounts as calculated pursuant to subdivision (a).
   (4) If the total amount of funds available for allocation pursuant
to this subdivision are sufficient to fully fund the amounts
computed pursuant to paragraph (1), the local control funding formula
grant computed pursuant to subdivision (c) of Section 42238.02 shall
be adjusted such that any available appropriations for this purpose
in that fiscal year are expended pursuant to the local control
funding formula.
   (c) Upon a determination that a school district or charter school
equals or exceeds the local control funding formula target
                                  computed pursuant to subdivision
(j) of Section 42238.02, as determined by the calculation of a zero
difference pursuant to paragraph (1) of subdivision (b) of this
section, this section shall not apply and the school district or
charter school shall receive an allocation equal to the amount
calculated under Section 42238.02 in that fiscal year and future
fiscal years.
   (d) Notwithstanding subdivisions (b) and (c), commencing with the
2013-14 fiscal year, a school district or charter school shall
receive state-aid funding pursuant to paragraph (3) of subdivision
(b) of no less than the funding the school district or charter school
received from programs in paragraphs (1) and (2) of subdivision (a).

   (e) (1) For purposes of this section, commencing with the 2013-14
fiscal year and until all school districts and charter schools equal
or exceed their local control funding formula target computed
pursuant to Section 42238.02 as determined by the calculation of a
zero difference pursuant to paragraph (1) of subdivision (b), a newly
operational charter school shall be determined to have a prior year
per average daily attendance funding amount equal to the lesser of:
   (A) The prior year funding amount per average daily attendance for
the school district in which the charter school is physically
located. The Superintendent shall calculate the per average daily
attendance amount for this purpose by dividing the total local
control funding formula entitlement received by that school district
in the prior year by prior year average daily attendance of that
school district. For purposes of this paragraph, a charter school
that is physically located in more than one school district, shall
use the calculated per average daily attendance local control funding
entitlement of the school district with the highest prior year per
average daily attendance funding amount.
   (B) The charter school's local control funding formula rate
computed pursuant to subdivisions (c) to (i), inclusive, of Section
42238.02.
   (2) For charter schools funded pursuant to paragraph (1), the
charter school shall be eligible to receive growth funding pursuant
to subdivision (b) toward meeting the newly operational charter
school's local control funding formula target.
   (3) Upon a determination that all school districts or charter
schools equal or exceed the local control funding formula target
computed pursuant to Section 42238.02 as determined by the
calculation of a zero difference pursuant to paragraph (1) of
subdivision (b) for all school districts and charter schools, this
subdivision shall not apply and the charter school shall receive an
allocation equal to the amount calculated under Section 42238.02 in
that fiscal year and future fiscal years. 
   SEC. 135.    Section 42238.04 is added to the 
 Education Code  , to read:  
   42238.04.  Notwithstanding any other law, revenue limit funding
for school districts and charter school block grant funding for
charter schools for the 2012-13 fiscal year and prior fiscal years
shall continue to be adjusted pursuant to Article 2 (commencing with
Section 42238), and Article 2 (commencing with Section 47633) of
Chapter 6 of Part 26.8 of Division 4, as those articles read on June
30, 2013. 
   SEC. 136.    Section 42238.05 is added to the 
 Education Code   , to read:  
   42238.05.  (a) For purposes of Sections 42238.02 and 42238.03, the
fiscal year average daily attendance shall be computed pursuant to
paragraphs (1) or (2).
   (1) The second principal apportionment regular average daily
attendance for either the current or prior fiscal year, whichever is
greater. However, prior fiscal year average daily attendance shall be
adjusted for any loss or gain of average daily attendance due to a
reorganization or transfer of territory.
   (2) A school district that elects to receive funding pursuant to
Article 4 (commencing with Section 42280) shall compute its units of
average daily attendance for purposes of Section 42238.02 by
subtracting the amount determined in subparagraph (B) from the amount
determined in subparagraph (A).
   (A) The units of average daily attendance computed pursuant to
paragraph (1).
   (B) The units of average daily attendance resulting from pupils
attending schools funded pursuant to Article 4 (commencing with
Section 42280).
   (b) For purposes of this article, regular average daily attendance
shall be the base grant average daily attendance.
   (c) For purposes of this section, the Superintendent shall
distribute total ungraded enrollment and average daily attendance
among kindergarten and each of grades 1 to 12, inclusive, in
proportion to the amounts of graded enrollment and average daily
attendance, respectively, in each of these grades.
   (d) For purposes of this section, the Superintendent shall
distribute average daily attendance generated by the difference
between prior year average daily attendance and current year average
daily attendance, if positive, among kindergarten and each of grades
1 to 12, inclusive, in proportion to the amounts of graded average
daily attendance, respectively, in each of these grades.
   (e) This section shall only apply to average daily attendance
generated by school districts and shall not apply average daily
attendance generated by charter schools.
   (f) A pupil shall not be counted more than once for purposes of
calculating average daily attendance pursuant to this section. 
   SEC. 137.   Section 42238.051 is added to the 
 Education Code   , to read:  
   42238.051.  (a) For purposes of paragraph (1) of subdivision (a)
of Section 42238.05, a sponsoring school district's average daily
attendance shall be computed as follows:
   (1) Compute the sponsoring school district's regular average daily
attendance in the current year, excluding the attendance of pupils
in charter schools.
   (2) (A) Compute the regular average daily attendance used to
calculate the second principal apportionment of the school district
for the prior year, excluding the attendance of pupils in charter
schools.
   (B) Compute the attendance of pupils who attended one or more
noncharter schools of the school district between July 1, and the
last day of the second period, inclusive, in the prior year, and who
attended a charter school sponsored by the school district between
July 1, and the last day of the second period, inclusive, in the
current year. For purposes of this subparagraph, a pupil enrolled in
a grade at a charter school sponsored by the school district shall
not be counted if the school district does not offer classes for
pupils enrolled in that grade. The amount of the attendance counted
for any pupil for the purpose of this subparagraph may not be greater
than the attendance claimed for that pupil by the charter school in
the current year.
   (C) Compute the attendance of pupils who attended a charter school
sponsored by the school district in the prior year and who attended
one or more noncharter schools of the school district in the current
year. The amount of the attendance counted for any pupil for the
purpose of this subparagraph may not be greater than the attendance
claimed for that pupil by the school district in the current year.
   (D) From the amount determined pursuant to subparagraph (B),
subtract the amount determined pursuant to subparagraph (C). If the
result is less than zero, the amount shall be deemed to be zero.
   (E) The prior year average daily attendance determined pursuant to
subparagraph (A) shall be reduced by the amount determined pursuant
to subparagraph (D).
   (3) To the greater of the amounts computed pursuant to paragraphs
(1) and (2), add the regular average daily attendance in the current
year of all pupils attending charter schools sponsored by the school
district that are not funded through the charter schools local
control funding formula allocation pursuant to Section 42238.02, as
implemented by Section 42238.03.
   (b) For purposes of this section, a "sponsoring school district"
shall mean a "sponsoring local educational agency," as defined in
Section 47632, as that section read on January 1, 2013. 
   SEC. 138.    Section 42238.052 is added to the 
 Education Code   , to read:  
   42238.052.  (a) Notwithstanding any other law, the prior year
average daily attendance for a school district determined pursuant to
subdivision (a) of Section 42238.051 shall be increased by the prior
year second principal apportionment average daily attendance of a
school district only for a school that meets the following
description:
   (1) The school was a district noncharter school in any year before
the prior year.
   (2) The school was operated as a district-approved charter school
in the prior year.
   (3) The school is again operated as a district noncharter school
in the current year.
   (b) An adjustment to prior year average daily attendance pursuant
to this section may not be made for the attendance of pupils who were
not residents of the school district in the prior year. 
   SEC. 139.    Section 42238.053 is add   ed
to the   Education Code   , to read:  
   42238.053.  (a) The fiscal year average daily attendance computed
under Section 42238.05 shall be increased, for each school district
that operates a school that meets the eligibility requirements set
forth in subdivision (b), by the number of days of attendance of
pupils enrolled in eligible schools in the school district who are
currently migratory children, as defined by Section 54441, and who
are residing in state-operated migrant housing projects between the
second principal apportionment and the end of the regular school
year, divided by the number of days school was actually taught in the
regular day schools of the district, excluding Saturdays and
Sundays.
   (b) For a school district to be eligible for purposes of this
section, the following conditions shall apply:
   (1) One or more state-operated migrant housing projects are
located within the attendance area of the school.
   (2) The maximum number of pupils enrolled in the school in the
relevant fiscal year who are currently migratory children, as
calculated under subdivision (a), constitutes not less than one-third
of the total pupil enrollment of the school.
   (c) The Superintendent shall establish rules and regulations for
the implementation of this section. 
   SEC. 140.    Section 42238.1 of the   
 Education Code  is repealed.  
   42238.1.  (a) For the 1986-87 fiscal year and each fiscal year up
to and including the 1998-99 fiscal year, the Superintendent of
Public Instruction shall compute an inflation adjustment equal to the
product of paragraphs (1) and (2):
   (1) Compute the sum of the following:
   (A) The statewide average base revenue limit per unit of average
daily attendance for the prior fiscal year for districts of similar
type.
   (B) The amount, if any, per unit of average daily attendance
received by the district pursuant to Article 8 (commencing with
Section 46200) of Chapter 2 of Part 26 for the prior fiscal year.
   (2) The percentage change in the annual average value of the
Implicit Price Deflator for State and Local Government Purchases of
Goods and Services for the United States, as published by the United
States Department of Commerce for the 12-month period ending in the
third quarter of the prior fiscal year. This percentage change shall
be determined using the latest data available as of May 1 of the
preceding fiscal year compared with the annual average value of the
same deflator for the 12-month period ending in the third quarter of
the second preceding fiscal year, using the latest data available as
of May 1 of the second preceding fiscal year, as reported by the
Department of Finance.
   (b) For the 1999-2000 fiscal year and each fiscal year thereafter,
the Superintendent of Public Instruction shall compute an inflation
adjustment equal to the product of paragraphs (1) and (2):
   (1) Compute the sum of the following:
   (A) The statewide average base revenue limit per unit of average
daily attendance for the prior fiscal year for districts of similar
type.
   (B) The amount, if any, per unit of average daily attendance
received by the district pursuant to Article 8 (commencing with
Section 46200) of Chapter 2 of Part 26 for the prior fiscal year.
   (2) The percentage change in the annual average value of the
Implicit Price Deflator for State and Local Government Purchases of
Goods and Services for the United States, as published by the United
States Department of Commerce for the 12-month period ending in the
third quarter of the prior fiscal year. This percentage change shall
be determined using the latest data available as of May 10 of the
preceding fiscal year compared with the annual average value of the
same deflator for the 12-month period ending in the third quarter of
the second preceding fiscal year, using the latest data available as
of May 10 of the preceding fiscal year, as report by the Department
of Finance.
   (c) This section shall become operative July 1, 1986. 
   SEC. 141.    Section 42238.2 of the   
 Education Code   is repeale   d. 

   42238.2.  (a) (1) Notwithstanding Section 42238.5 or any other
provision of law, a school district that meets any of the following
conditions shall be entitled to an adjustment to its units of average
daily attendance pursuant to this section:
   (A) The school district experiences a decline in the number of
units of average daily attendance in excess of 8 percent of its total
average daily attendance as a result of the closure of a facility
operated by a branch of the United States Armed Forces in the school
district's boundaries.
   (B) The school district experiences a decline in the number of
units of average daily attendance that is less than 8 percent but at
least 5 percent of its total average daily attendance as a result of
the closure of a facility operated by a branch of the United States
Armed Forces in that school district's boundaries, upon a finding by
both the Superintendent of Public Instruction and the Director of
Finance that both of the following conditions exist:
   (i) The school district demonstrates that at the end of a
three-year period the school district will experience a 10-percent
reduction in the amount of funding that the school district would
otherwise have received from state apportionments, funding received
pursuant to the California State Lottery Act of 1984 (Chapter 12.5
(commencing with Section 8880) of Division 1 of Title 2 of the
Government Code), and funding received pursuant to Title VIII of
Public Law 103-382, as a result of the loss of pupils related to the
closure of a facility operated by a branch of the United States Armed
Forces.
   (ii) The fiscal crisis and management assistance team established
pursuant to Section 42127.8 has reviewed the school district's
finances and has found that the school district has taken significant
steps to reduce expenditure.
   (C) The school district experiences a decline in the number of
units of average daily attendance in excess of 5 percent of its total
average daily attendance and the Director of Finance determines that
the school district is likely, within eight years of that decline,
to maintain a number of units of average daily attendance that is
equivalent to the number of units of average daily attendance
maintained by the school district prior to the decline.
Notwithstanding subdivision (b), loan repayments shall commence no
later than the fourth year after the base year or at a later time, as
determined by the Director of Finance.
   (2) For purposes of this section, the year preceding a decline
shall be the base year.
   (b) In the second year after the base year, the district average
daily attendance pursuant to Section 42238.5 may, if the district
chooses, be increased by 75 percent of the difference between the
base year units of average daily attendance and the units of average
daily attendance in the first year of decline. In the third year
after the base year, the district average daily attendance pursuant
to Section 42238.5 may, if the district chooses, be increased by 50
percent of the difference between the base year units of average
daily attendance and the units of average daily attendance in the
first year of decline. The amount of money represented by these
increases shall be considered a loan to the school district. Loan
repayments shall commence no later than the fourth year after the
base year.
   (c) (1) The Superintendent of Public Instruction, in consultation
with a school district subject to this section, shall determine a
schedule for repayment of the total amount loaned pursuant to this
section which may not exceed 10 years. Payments shall include
interest charged at a rate based on the most current investment rate
of the Pooled Money Investment Account in the General Fund as of the
date of the disbursement of funds to the school district.
   (2) Upon written notification by the Superintendent of Public
Instruction that the school district has not made one or more of the
payments required by the schedule established pursuant to paragraph
(1), the Controller shall withhold from Section A of the State School
Fund the defaulted payment which shall not exceed the amount of any
apportionment entitlement of the district to moneys in Section A of
the State School Fund. In that regard, the Controller shall withhold
the amount of any payment made under this subdivision, including
reimbursement of the Controller's administrative costs as determined
under a schedule approved by the California Debt Advisory Commission,
from subsequent apportionments to the school district from Section A
of the State School Fund.
   (3) Any apportionments made by the Controller pursuant to
paragraph (2) shall be deemed to be an allocation to the school
district for purposes of subdivision (b) of Section 8 of Article XVI
of the California Constitution, and for purposes of Chapter 2
(commencing with Section 41200) of Part 24.
   (d) In no event shall the adjustment provided by this section
cause the apportionment to a school district to exceed the amount
that would otherwise be calculated for apportionment to the district
pursuant to Sections 42238 and 42238.1.
   (e) This section does not apply to a school district that
experiences a decline in enrollment as a result of a school district
reorganization pursuant to Chapter 3 (commencing with Section 35500)
of Part 21 or any other law. 
   SEC. 142.    Section 42238.3 of the   
 Education Code   is repealed.  
   42238.3.  (a) For each year during the loan repayment period
provided for in Section 42238.2, any district utilizing the
adjustment pursuant to Section 42238.2 may adjust its revenue limit
computed pursuant to Section 42238 to the statewide average revenue
limit per unit of average daily attendance for its size and type of
district in proportion to the percentage of the loan that the school
district has repaid up to and including the year in which the revenue
limit adjustment is made.
   (b) This section does not apply to a school district that
experiences a decline in enrollment as a result of a school district
reorganization pursuant to Chapter 3 (commencing with Section 35500)
of Part 21 or any other law. 
   SEC. 143.    Section 42238.4 of the   
 Education Code   is repealed.  
   42238.4.  (a) For the 1995-96 fiscal year, the county
superintendent of schools shall compute an equalization adjustment
for each school district in the county, so that no district's base
revenue limit per unit of average daily attendance is less than the
prior fiscal year statewide average base revenue limit for the
appropriate size and type of district listed in subdivision (b) plus
the inflation adjustment specified in Section 42238.1 for the current
fiscal year for the appropriate type of district.
   For purposes of this section, the district base revenue limit and
the statewide average base revenue limit shall not include any
amounts attributable to Section 45023.4, 46200, or 46201.
   (b) Subdivision (a) shall apply to the following school districts,
which shall be grouped according to size and type as follows:
  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


   (c) The Superintendent shall compute a revenue limit equalization
adjustment for each school district's base revenue limit per unit of
average daily attendance as follows:
   (1) Add the products of the amount computed for each school
district by the county superintendent pursuant to subdivision (a) and
the average daily attendance used to calculate the district's
revenue limit for the current fiscal year as adjusted for the deficit
factor in Section 42238.145.
   (2) Divide the amount appropriated for purposes of this section
for the current fiscal year by the amount computed pursuant to
paragraph (1).
   (3) Multiply the amount computed for the school district pursuant
to subdivision (a) by the amount computed pursuant to paragraph (2).
   (d) For the purposes of this section, the 1994-95 statewide
average base revenue limits determined for the purposes of
subdivision (a) and the fraction computed pursuant to paragraph (2)
of subdivision (c) by the Superintendent for the 1995-96 second
principal apportionment shall be final, and shall not be calculated
as subsequent apportionments. In no event shall the fraction computed
pursuant to paragraph (2) of subdivision (c) exceed 1.00. For the
purposes of determining the size of a district used in subdivision
(b), the Superintendent shall use a school district's revenue limit
average daily attendance for the 1994-95 fiscal year determined
pursuant to Section 42238.5 and Article 4 (commencing with Section
42280).
   (e) This section shall only be operative if the Director of
Finance certifies that a settlement agreement in California Teachers
Association v. Gould (Sacramento County Superior Court Case CV
373415) is effective. No funds shall be disbursed under this section
for this purpose before August 1, 1996, and any apportionment or
allocation of funds appropriated for purposes of this section shall
be accounted for in the 1995-96 fiscal year.
   (f) Appropriations for the 1995-96 fiscal year as a result of the
implementation of this section shall be deemed "General Fund revenues
appropriated for school districts," as defined in subdivision (c) of
Section 41202, for the 1995-96 fiscal year and "total allocations to
school districts and community college districts from General Fund
proceeds of taxes appropriated to Article XIII B," as defined in
subdivision (e) of Section 41202, for that fiscal year, for purposes
of Section 8 of Article XVI of the California Constitution. 

   SEC. 144.    Section 42238.41 of the   
 Education Code   is repealed.  

  42238.41.  (a) For the 1996-97 fiscal year, the county
superintendent of schools, in conjunction with the Superintendent of
Public Instruction, shall compute an equalization adjustment for each
school district in the county, so that no district's 1995-96 base
revenue limit per unit of average daily attendance is less than the
1995-96 fiscal year statewide average base revenue limit for the
appropriate size and type of district listed in subdivision (b).
   For purposes of this section, the district base revenue limit and
the statewide average base revenue limit shall not include any
amounts attributable to Section 45023.4, 46200, or 46201.
   (b) Subdivision (a) shall apply to the following school districts,
which shall be grouped according to size and type as follows:
  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


   (c) The Superintendent of Public Instruction shall compute a
revenue limit equalization adjustment for each school district's base
revenue limit per unit of average daily attendance as follows:
   (1) Add the products of the amount computed for each school
district by the county superintendent pursuant to subdivision (a) and
the average daily attendance used to calculate the district's
revenue limit for the current fiscal year as adjusted for the deficit
factor in Section 42238.145.
   (2) Divide the amount appropriated for purposes of this section
for the current fiscal year by the amount computed pursuant to
paragraph (1).
   (3) Multiply the amount computed for the school district pursuant
to subdivision (a) by the amount computed pursuant to paragraph (2).
   (d) For the purposes of this section, the 1995-96 statewide
average base revenue limits determined for the purposes of
subdivision (a) and the fraction computed pursuant to paragraph (2)
of subdivision (c) by the Superintendent of Public Instruction for
the 1995-96 second principal apportionment shall be final, and shall
not be recalculated at subsequent apportionments. In no event shall
the fraction computed pursuant to paragraph (2) of subdivision (c)
exceed 1.00. For the purposes of determining the size of a district
used in subdivision (b), county superintendents of schools, in
conjunction with the Superintendent of Public Instruction, shall use
a school district's revenue limit average daily attendance for the
1995-96 fiscal year as determined pursuant to Section 42238.5 and
Article 4 (commencing with Section 42280). 
   SEC. 145.    Section 42238.42 of the   
 Education Code   is repealed.  
   42238.42.  (a) In the event that the amount required to be
appropriated for the purpose of the state's minimum funding
obligation to school districts and community college districts
pursuant to Section 8 of Article XVI of the California Constitution
for the 1996-97 fiscal year, as determined in paragraph (1) of
subdivision (b), exceeds the amount appropriated for that purpose for
the 1996-97 fiscal year, as determined pursuant to paragraph (2) of
subdivision (b), the amount computed pursuant to subdivision (d), is
hereby appropriated from the General Fund to the Superintendent of
Public Instruction for the purposes of equalizing the revenue limits
of school districts pursuant to subdivision (e) and Section 42238.43
and for the purpose of reducing the deficit factor applied to the
revenue limits of county superintendents of schools pursuant to
Section 2558.45 and reducing the deficit factor applied to the
revenue limits of the school districts pursuant to Section 42238.145.

   (b) To determine the amounts available for the purposes of this
section, the Department of Finance shall make the following
computations:
   (1) At the first principal apportionment for the 1997-98 fiscal
year, compute the level of General Fund revenues that meets the state'
s minimum funding obligation to school districts and community
college districts pursuant to Section 8 of Article XVI of the
California Constitution for the 1996-97 fiscal year based upon the
most current determination of data as defined in subdivision (a) of
Section 41206 of the Education Code.
   (2) Subtract from the amount determined in paragraph (1) an amount
equal to the total amount of General Fund revenues that have been
appropriated for the purpose of meeting the state's minimum funding
obligation for the 1996-97 fiscal year to school districts and
community college districts pursuant to Section 8 of Article XVI of
the California Constitution as of February 1, 1998.
   (3) If the amount computed in paragraph (2) is greater than zero,
that amount is the total amount available for the purposes of this
section.
   (c) To determine the portion of the amount computed in subdivision
(a) to set aside for community college districts pursuant to this
section, the Department of Finance shall make the following
computations:
   (1) Add the total General Fund allocations to school districts and
community college districts for the purposes of meeting the state's
minimum funding obligation to school districts and community college
districts pursuant to Section 8 of Article XVI of the California
Constitution for the 1996-97 fiscal year to the total statewide
amount of "allocated local proceeds of taxes," as defined in
subdivisions (g) and (h) of Section 41202, allocated to school
districts and community college districts for the 1996-97 fiscal
year.
   (2) Divide the sum of the General Fund allocations made to
community college districts for the purposes of meeting the state's
minimum funding obligation to community college districts pursuant to
Section 8 of Article XVI of the California Constitution for the
1996-97 fiscal year and the total statewide amount of "allocated
local proceeds of taxes," as defined in subdivision (h) of Section
41202, allocated to community college districts for the 1996-97
fiscal year by the sum computed pursuant to paragraph (1).
   (3) Multiply the amount computed pursuant to subdivision (b) by
the percentage determined in paragraph (2). Community college
districts shall be entitled to receive an amount equal to the amount
computed pursuant to this paragraph and that amount shall be set
aside from the General Fund for appropriation to community college
districts by the Legislature.
   (d) The amount of the appropriation made pursuant to subdivision
(a) of this section shall be computed by subtracting the amount
computed in paragraph (3) of subdivision (c) from the amount computed
pursuant to subdivision (b). The Director of the Department of
Finance shall certify to the Controller the amount of the
appropriation computed pursuant to this subdivision and under no
circumstances shall funds be released by the Controller for purposes
of this section before that certification is received by the
Controller.
   (e) The Superintendent of Public Instruction shall allocate 50
percent of the amount computed pursuant to subdivision (d) to school
districts for the purpose of making equalization adjustments to the
base revenue limit of school districts for the 1996-97 fiscal year,
as follows:
   (1) The Superintendent of Public Instruction shall perform the
computations set forth in Section 42238.43 for the purpose of
equalization adjustments to the base revenue limits of school
districts for the 1996-97 fiscal year to determine the amount to
allocate to each school district pursuant to this paragraph.
   (2) The Superintendent of Public Instruction shall repeat the
process of computing equalization adjustments to the base revenue
limits of school districts for the 1996-97 fiscal year pursuant to
Section 42238.43 until the total amount of funds available for that
purpose pursuant to this subdivision is allocated to school
districts.
   (3) If the total amount of funds available for allocation pursuant
to this subdivision is insufficient to fully fund the amounts
computed pursuant to paragraph (1) or the amount computed pursuant to
any of the iterations made pursuant to paragraph (2), the
allocations computed pursuant to those paragraphs shall be reduced
proportionately.
   (f) The Superintendent of Public Instruction shall allocate 50
percent of the amount computed pursuant to subdivision (d) to county
superintendents of schools for the purpose of reducing the 1996-97
and 1997-98 deficit factors applied to the revenue limits of county
superintendent of schools and school districts pursuant to Sections
2558.45 and 42238.145, respectively. The amount of the allocation
made to each school district and county superintendent of schools for
the purpose of reducing their respective deficit factors shall be
computed in proportion to their respective shares of the total
statewide amount of the revenue limits after adjustment for deficit
factors for school districts and county superintendents of schools.
   (g) In no event shall this section be construed to require an
appropriation that would cause the aggregate amount required to be
appropriated from the General Fund for the 1996-97 fiscal year
pursuant to Section 8 of Article XVI of the California Constitution
to be exceeded. 
   SEC. 146.    Section 42238.43 of the   
 Education Code   is repealed.  
   42238.43.  (a) (1) For the 1996-97 fiscal year, the county
superintendent of schools, in conjunction with the Superintendent of
Public Instruction, shall compute an equalization adjustment for each
school district in the county, so that no district's base revenue
limit per unit of average daily attendance is less than the 1996-97
fiscal year statewide average base revenue limit for the appropriate
size and type of district listed in subdivision (b).
   (2) For purposes of this section, the district base revenue limit
and the statewide average base revenue limit shall not include any
amounts attributable to Section 45023.4, 46200, or 46201.
   (b) Subdivision (a) shall apply to the following school districts,
which shall be grouped according to size and type as follows:
  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


   (c) The equalization adjustment computed pursuant to this section
shall only be funded from amounts appropriated for that purpose
pursuant to Section 42238.42.
   (d) (1) For the purposes of the computation made pursuant to
paragraph (1) of subdivision (e) of Section 42238.42, the 1996-97
statewide average base revenue limits determined for the purposes of
subdivision (a) and the fraction, if any, computed pursuant to
paragraph (3) of subdivision (e) of Section 42238.42 by the
Superintendent of Public Instruction for the 1996-97 second principal
apportionment shall be final, and shall not be calculated as
subsequent apportionments. In no event shall the fraction computed
pursuant to paragraph (3) of subdivision (e) of Section 42238.42
exceed 1.00. If any iterations are required pursuant to paragraph (2)
of Section 42238.42, the Superintendent of Public Instruction shall
recompute the 1996-97 statewide average base revenue limit to include
any adjustments made by the immediately preceding iteration.
   (2) (A) For the purposes of determining the size of a school
district under subdivision (b), the Superintendent of Public
Instruction shall use a school district's revenue limit average daily
attendance for the 1996-97 fiscal year as determined pursuant to
Section 42238.5 and Article 4 (commencing with Section 42280).
   (B) Notwithstanding subparagraph (A), for the purposes of
determining the size of a school district under subdivision (b) with
respect to any elementary, high, or unified school district that was
funded in the 1996-97 school year as a large elementary, high, or
unified school district, as determined pursuant to subdivision (a) of
Section 42238.5, the school district's actual revenue limit average
daily attendance for the 1996-97 school year may be used. The actual
revenue limit average daily attendance for the 1996-97 school year
shall be used to calculate the 1996-97 revenue limit of a school
district exercising the authority granted under this subparagraph.
The governing board of a school district to which this subparagraph
is applicable may exercise the authority granted under this
subparagraph by enacting a resolution to that effect and transmitting
a copy of that resolution to the Superintendent of Public
Instruction on or before a date designated by the Superintendent of
Public Instruction for that school year. After the Superintendent of
Public Instruction receives the resolution, the superintendent shall
make the necessary adjustments to the school district's revenue limit
calculation. 
   SEC. 147.    Section 42238.44 of the   
 Education Code   is repealed.  
   42238.44.  (a) This section shall be known and may be cited as,
the Fairness in Education Funding Act.
   (b) (1) For the 2004-05 fiscal year, the Superintendent of Public
Instruction shall compute an equalization adjustment for each school
district, so that the 2003-04 base revenue limit per unit of average
daily attendance of a district is not less than the 2003-04 base
revenue limit per unit of average daily attendance above which fall
not more than 10 percent of the total statewide units of average
daily attendance for each category of school district set forth in
subdivision (c).
   (2) For purposes of this section, the district base revenue limit
and the statewide average base revenue limit shall not include any
amounts attributable to Section 45023.4, 46200, or 46201.
   (c) Subdivision (b) shall apply to the following school districts,
which shall be grouped according to size and type as follows:
  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


   (d) The Superintendent of Public Instruction shall compute a
revenue limit equalization adjustment for each school district's base
revenue limit per unit of average daily attendance as follows:
   (1) Multiply the amount computed for each school district pursuant
to subdivision (b) by the average daily attendance used to calculate
the revenue limit for the 2004-05 fiscal year of a district.
   (2) Divide the amount appropriated for purposes of this section
for the 2004-05 fiscal year by the statewide sum of the amount
computed pursuant to paragraph (1).
   (3) Multiply the amount computed for the school district pursuant
to paragraph (1) of subdivision (b) by the amount computed pursuant
to paragraph (2).
   (e) (1) For the purposes of this section, the 2003-04 statewide
90th percentile base revenue limit determined pursuant to paragraph
(1) of subdivision (b), and the fraction computed pursuant to
paragraph (2) of subdivision (d) for the 2003-04 second principal
apportionment, shall be final, and shall not be recalculated at
subsequent apportionments. The fraction computed pursuant to
paragraph (2) of subdivision (d) shall not, under any circumstances,
exceed 1.00. For purposes of determining the size of a school
district pursuant to subdivision (c), county superintendents of
schools, in conjunction with the Superintendent of Public
Instruction, shall use school district revenue limit average daily
attendance for the 2003-04 fiscal year as determined pursuant to
Section 42238.5 and Article 4 (commencing with Section 42280).
   (2) For the purposes of calculating the size of a school district
pursuant to subdivision (c), the Superintendent of Public Instruction
shall include units of average daily attendance of any charter
school for which the school district is the chartering agency.
   (3) For the purposes of computing the target amounts pursuant to
subdivision (b), the Superintendent of Public Instruction shall count
all charter school average daily attendance toward the average daily
attendance of the school district that is the chartering agency.

   SEC. 148.    Section 42238.445 of the  
  Education Code   is repealed.  
   42238.445.  (a) (1) For the 2002-03 fiscal year, the
Superintendent of Public Instruction shall compute an equalization
adjustment for each school district by determining the amount that
would be necessary to assure that no district's 2001-02 base revenue
limit per unit of average daily attendance is less than the 2001-02
base revenue limit per unit of average daily attendance above which
fall not more than 10 percent of the total statewide units of average
daily attendance for each category of school district set forth in
subdivision (b).
   (2) For purposes of this section, the district base revenue limit
and the statewide average base revenue limit shall not include any
amounts attributable to Section 45023.4, 46200, or 46201.
   (b) Subdivision (a) shall apply to the following school districts,
which shall be grouped according to size and type as follows:
  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


   (c) The Superintendent of Public Instruction shall determine and
allocate, on a one-time basis, an amount for each school district as
follows:
   (1) Multiply the amount computed for each school district pursuant
to subdivision (a) by the average daily attendance used to calculate
the district's revenue limit for the 2002-03 fiscal year.
   (2) Divide forty-two million dollars ($42,000,000) appropriated
pursuant to Provision 2 of Item 6110-223-0001 of Section 2.00 of the
Budget Act of 2002 by the statewide sum of the amount computed
pursuant to paragraph (1).
   (3) Multiply the amount computed for the school district pursuant
to paragraph (1) by the amount computed pursuant to paragraph (2).
   (d) (1) For the purposes of this section, the 2001-02 statewide
90th percentile base revenue limit determined pursuant to paragraph
(1) of subdivision (a), and the fraction computed pursuant to
paragraph (2) of subdivision (c) for the 2001-02 second principal
apportionment, shall be final, and shall not be recalculated at
subsequent apportionments. The fraction computed pursuant to
paragraph (2) of subdivision (c) shall not, under any circumstances,
exceed 1.00. For purposes of determining the size of a school
district pursuant to subdivision (b), county superintendents of
schools, in conjunction with the Superintendent of Public
Instruction, shall use school district revenue limit average daily
attendance for the 2001-02 fiscal year as determined pursuant to
Section 42238.5 and Article 4 (commencing with Section 42280).
   (2) For the purposes of calculating the size of a school district
pursuant to subdivision (b), the Superintendent of Public Instruction
shall include units of average daily attendance of any charter
school for which the school district is the chartering agency.
   (3) For the purposes of computing the target amounts pursuant to
subdivision (a), the Superintendent of Public Instruction shall count
all charter school average daily attendance toward the average daily
attendance of the school district that is the chartering agency.
   (e) Allocations pursuant to this section do not represent
adjustments to school district base revenue limits. 
   SEC. 149.    Section 42238.45 of the   
 Education Code   is repealed.  
   42238.45.  (a) (1) For the 2001-02 fiscal year, the Superintendent
of Public Instruction shall compute an adjustment for each school
district, so that no district's 2000-01 base revenue limit per unit
of average daily attendance is less than the 2000-01 base revenue
limit per unit of average daily attendance above which fall not more
than 10 percent of the total statewide units of average daily
attendance for each category of school district set forth in
subdivision (b).
   (2) For purposes of this section, the district base revenue limit
and the statewide average base revenue limit shall not include any
amounts attributable to Section 45023.4, 46200, or 46201.
   (b) Subdivision (a) shall apply to the following school districts,
which shall be grouped according to size and type as follows:
  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


   (c) For the 2001-02 fiscal year, the Superintendent of Public
Instruction shall determine and allocate on a one-time basis for each
school district amounts as follows:
   (1) Multiply the amount computed for each school district pursuant
to subdivision (a) by the average daily attendance used to calculate
the district's revenue limit for the 2001-02 fiscal year.
   (2) Divide forty million dollars ($40,000,000) appropriated for
purposes of this section for the 2001-02 fiscal year by the statewide
sum of the amount computed pursuant to paragraph (1).
   (3) Multiply the amount computed for the school district pursuant
to paragraph (1) of subdivision (a) by the amount computed pursuant
to paragraph (2).
   (d) (1) For the purposes of calculating the size of a school
district pursuant to subdivision (b), the Superintendent of Public
Instruction shall include units of average daily attendance of any
charter school for which the school district is the chartering
agency.
   (2) For the purposes of computing the target amounts pursuant to
subdivision (a), the Superintendent of Public Instruction shall count
all charter school average daily attendance toward the average daily
attendance of the school district that is the chartering agency.
   (e) Allocations for purposes of this section do not represent
adjustments to school district base revenue limits. 
   SEC. 150.    Section 42238.46 of the   
 Education Code   is repealed.  
   42238.46.  (a) For the 2003-04 fiscal year, the Superintendent of
Public Instruction shall compute an equalization adjustment for each
school district so that no district's 2002-03 adjusted base revenue
limit per unit of average daily attendance is less than the 2002-03
fiscal year adjusted base revenue limit above which fall not more
that 8.25 percent of the total statewide units of average daily
attendance for the appropriate size and type of district listed in
subdivision (b).
   For purposes of this section, the district adjusted base revenue
limit and the statewide average adjusted base revenue limit may
                                     not include any amounts
attributable to Section 45023.4, 46200, or 46201.
   (b) Subdivision (a) applies to the following school districts,
which shall be grouped according to size and type as follows:
  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


   (c) The Superintendent of Public Instruction shall compute a
revenue limit equalization adjustment for each school district's
adjusted base revenue limit per unit of average daily attendance as
follows:
   (1) Add the products of the amount computed for each school
district by the county superintendent pursuant to subdivision (a) and
the average daily attendance used to calculate the district's
revenue limit for the current fiscal year.
   (2) Divide the amount appropriated for purposes of this section
for the current fiscal year by the amount computed pursuant to
paragraph (1).
   (3) Multiply the amount computed for the school district pursuant
to subdivision (a) by the amount computed pursuant to paragraph (2).
   (d) (1) For purposes of this section only, prior to computing the
equalization adjustment pursuant to this section, the Superintendent
of Public Instruction shall calculate an adjusted base revenue limit
for each district by revising the 2002-03 base revenue limit of the
district to eliminate that portion of the one-time adjustment to its
base revenue limit related to excused absences made pursuant to
Section 42238.8.
   (2) For the purposes of this section, the 2002-03 statewide
average adjusted base revenue limits determined for the purposes of
subdivision (a) and the fraction computed pursuant to paragraph (2)
of subdivision (c) by the Superintendent of Public Instruction for
the 2002-03 second principal apportionment shall be final, and shall
not be recalculated at subsequent apportionments. In no event shall
the fraction computed pursuant to paragraph (2) of subdivision (c)
exceed 1.00. For the purposes of determining the size of a district
used in subdivision (b), county superintendents of schools, in
conjunction with the Superintendent of Public Instruction, shall use
a school district's revenue limit average daily attendance for the
2002-03 fiscal year as determined pursuant to Section 42238.5 and
Article 4 (commencing with Section 42280).
   (3) For the purposes of calculating the size of a school district
pursuant to subdivision (b), the Superintendent of Public Instruction
shall include units of average daily attendance of any charter
school for which the school district is the chartering agency.
   (4) For the purposes of computing the target amounts pursuant to
subdivision (a), the Superintendent of Public Instruction shall count
all charter school average daily attendance towards the average
daily attendance of the school district that is the chartering
agency. 
   SEC. 1   51.    Section 42238.48 of the
    Education Code   is repealed. 

   42238.48.  (a) (1) For the 2006-07 fiscal year, the Superintendent
shall compute an equalization adjustment for each school district,
so that the 2005-06 base revenue limit per unit average daily
attendance of a school district is not less than the 2005-06 base
revenue limit per unit of average daily attendance above which fall
not more than 10 percent of the total statewide units of average
daily attendance for each category of school district set forth in
subdivision (b).
   (2) For purposes of this section, the base revenue limit shall not
include any amounts attributable to Section 45023.4, 46200, or
46201.
   (b) Subdivision (a) shall apply to the following school districts,
which shall be grouped according to size and type as follows:
  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


   (c) The Superintendent shall compute a revenue limit equalization
adjustment for each school district's base revenue limit per unit of
average daily attendance as follows:
   (1) Multiply the amount computed for each school district pursuant
to subdivision (a) by the average daily attendance used to calculate
the revenue limit for the 2006-07 fiscal year of a school district.
   (2) Divide the amount appropriated for purposes of this section
for the 2006-07 fiscal year by the statewide sum of the amount
computed pursuant to paragraph (1).
   (3) Multiply the amount computed for the school district pursuant
to paragraph (1) of subdivision (a) by the amount computed pursuant
to paragraph (2).
   (d) (1) For the purposes of this section, the 2005-06 statewide
90th percentile base revenue limit determined pursuant to paragraph
(1) of subdivision (a), and the fraction computed pursuant to
paragraph (2) of subdivision (c) for the 2005-06 second principal
apportionment, shall be final, and shall not be recalculated at
subsequent apportionments. The fraction computed pursuant to
paragraph (2) of subdivision (c) shall not exceed 1.00. For purposes
of determining the size of a school district pursuant to subdivision
(b), county superintendents of schools, in conjunction with the
Superintendent, shall use school district revenue limit average daily
attendance for the 2005-06 fiscal year as determined pursuant to
Section 42238.5 and Article 4 (commencing with Section 42280).
   (2) For the purposes of calculating the size of a school district
pursuant to subdivision (b), the Superintendent shall include units
of average daily attendance of any charter school for which the
school district is the sponsoring local educational agency.
   (3) For the purposes of computing the target amounts pursuant to
subdivision (a), the Superintendent shall count all charter school
average daily attendance toward the average daily attendance of the
school district that is the sponsoring local educational agency.

   SEC. 152.    Section 42238.485 of the  
 Education Code   is repealed.  
   42238.485.  (a) For the 2010-11 fiscal year, the Superintendent
shall compute an adjustment for each school district by dividing each
school district's 2007-08 fiscal year average daily attendance into
the sum of the following:
   (1) Funding for Meals for Needy Pupils programs received by the
school district for the 2007-08 fiscal year pursuant to Section
42241.2, as it read on January 1, 2009.
   (2) Funding incentives to increase beginning teachers' salaries
received by the school district for the 2007-08 fiscal year pursuant
to Sections 45023.1 and 45023.4, as those sections read on January 1,
2009.
   (b) For purposes of this section, average daily attendance shall
be computed pursuant to Section 42238.5.
   (c) Notwithstanding any other provision of this section, no
funding specified in this section shall be added to the adjustment
computed pursuant to subdivision (a) if that funding is currently
included in a school district's base revenue limit calculated
pursuant to Section 42238. 
   SEC. 153.    Section 42238.49 of the   
 Education Code   is repealed.  
   42238.49.  (a) (1) For the 2011-12 fiscal year, the Superintendent
shall compute an equalization adjustment for each school district,
so that the 2010-11 base revenue limit per unit of average daily
attendance of a school district is not less than the 2010-11 base
revenue limit per unit of average daily attendance above which fall
not more than 10 percent of the total statewide units of average
daily attendance for each category of school district set forth in
subdivision (b).
   (2) For purposes of this section, the base revenue limit shall not
include any amounts attributable to Section 45023.4, 46200, or
46201.
   (b) Subdivision (a) shall apply to the following school districts,
which shall be grouped according to size and type as follows:
  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


   (c) The Superintendent shall compute a revenue limit equalization
adjustment for each school district's base revenue limit per unit of
average daily attendance as follows:
   (1) Multiply the amount computed for each school district pursuant
to subdivision (a) by the average daily attendance used to calculate
the revenue limit for the 2011-12 fiscal year of a school district.
   (2) Divide the amount appropriated from the Supplemental Education
Payment Account for purposes of this section for the 2011-12 fiscal
year by the statewide sum of the amounts computed pursuant to
paragraph (1).
   (3) Multiply the amount computed for the school district pursuant
to paragraph (1) of subdivision (a) by the amount computed pursuant
to paragraph (2).
   (d) (1) For the purposes of this section, the 2010-11 statewide
90th percentile base revenue limit determined pursuant to paragraph
(1) of subdivision (a), and the fraction computed pursuant to
paragraph (2) of subdivision (c) for the 2010-11 second principal
apportionment, shall be final, and shall not be recalculated at
subsequent apportionments. The fraction computed pursuant to
paragraph (2) of subdivision (c) shall not exceed 1.00. For purposes
of determining the size of a school district pursuant to subdivision
(b), county superintendents of schools, in conjunction with the
Superintendent, shall use school district revenue limit average daily
attendance for the 2010-11 fiscal year as determined pursuant to
Section 42238.5 and Article 4 (commencing with Section 42280).
   (2) For the purposes of calculating the size of a school district
pursuant to subdivision (b), the Superintendent shall include units
of average daily attendance of any charter school for which the
school district is the sponsoring local educational agency.
   (3) For the purposes of computing the target amounts pursuant to
subdivision (a), the Superintendent shall count all charter school
average daily attendance toward the average daily attendance of the
school district that is the sponsoring local educational agency.

   SEC. 154.    Section 42238.5 of the   
 Education Code   is repealed.  
   42238.5.  (a) For purposes of Section 42238, the fiscal year
average daily attendance shall be computed pursuant to paragraph (1)
or (2).
   (1) The second principal apportionment regular average daily
attendance for either the current or prior fiscal year, whichever is
greater. However, prior fiscal year average daily attendance shall be
adjusted for any loss or gain of average daily attendance due to a
reorganization or transfer of territory, or, commencing in the
1993-94 fiscal year, and each fiscal year thereafter, for any change
in average daily attendance for pupils who are concurrently enrolled
in adult programs and classes pursuant to Section 52616.17.
   (2) Any school district that elects to receive funding pursuant to
Article 4 (commencing with Section 42280) shall compute its units of
average daily attendance for purposes of Section 42238 by
subtracting the amount determined in subparagraph (B) from the amount
determined in subparagraph (A).
   (A) The units of average daily attendance computed pursuant to
paragraph (1).
   (B) The units of average daily attendance resulting from pupils
attending schools funded pursuant to Article 4 (commencing with
Section 42280).
   (b) For purposes of this article, regular average daily attendance
shall be the base revenue limit average daily attendance, excluding
summer school average daily attendance.
   (c) For purposes of this section, for the 1998-99 fiscal year
only, the prior year average daily attendance shall be the 1997-98
regular average daily attendance, excluding absences excused pursuant
to subdivision (b) of Section 46010, as that subdivision read on
July 1, 1996. 
   SEC. 155.    Section 42238.51 of the   
 Education Code   is repealed.  
   42238.51.  (a) For purposes of paragraph (1) of subdivision (a) of
Section 42238.5, a sponsoring school district's average daily
attendance shall be computed as follows:
   (1) Compute the sponsoring school district's regular average daily
attendance in the current year, excluding the attendance of pupils
in charter schools.
   (2) (A) Compute the regular average daily attendance used to
calculate the second principal apportionment of the school district
for the prior year, excluding the attendance of pupils in charter
schools.
   (B) Compute the attendance of pupils who attended one or more
noncharter schools of the school district between July 1, and the
last day of the second period, inclusive, in the prior year, and who
attended a charter school sponsored by the school district between
July 1, and the last day of the second period, inclusive, in the
current year. For the purposes of this paragraph, a pupil enrolled in
a grade at a charter school sponsored by the school district shall
not be counted if the school district does not offer classes for
pupils enrolled in that grade. The amount of the attendance counted
for any pupil for the purpose of this subparagraph may not be greater
than the attendance claimed for that pupil by the charter school in
the current year.
   (C) Compute the attendance of pupils who attended a charter school
sponsored by the school district in the prior year and who attended
one or more noncharter schools of the school district in the current
year. The amount of the attendance counted for any pupil for the
purpose of this subparagraph may not be greater than the attendance
claimed for that pupil by the school district in the current year.
   (D) From the amount determined pursuant to subparagraph (B),
subtract the amount determined pursuant to subparagraph (C). If the
result is less than zero, the amount shall be deemed to be zero.
   (E) The prior year average daily attendance determined pursuant to
subparagraph (A) shall be reduced by the amount determined pursuant
to subparagraph (D).
   (3) To the greater of the amounts computed pursuant to paragraphs
(1) and (2), add the regular average daily attendance in the current
year of all pupils attending charter schools sponsored by the
district that are not funded pursuant to Article 2 (commencing with
Section 47633) of Chapter 6 of Part 26.
   (b) For the purposes of this section, a "sponsoring school
district" shall mean a "sponsoring local educational agency," as
defined in Section 47632.
   (c) This section shall become operative on July 1, 2007. 

   SEC. 156.    Section 42238.52 of the   
 Education Code   is repealed.  
   42238.52.  (a) Notwithstanding any other provision of law, the
prior year average daily attendance for a school district determined
pursuant to subdivision (b) of Section 42238.51 shall be increased by
the prior year second principal apportionment average daily
attendance of district residents only of any school that meets the
following description:
   (1) The school was a district noncharter school in any year prior
to the prior year.
   (2) The school was operated as a district-approved charter school
in the prior year.
   (3) The school is again operated as a district noncharter school
in the current year.
   (b) An adjustment to prior year average daily attendance pursuant
to this section may not be made for the attendance of pupils who were
not residents of the school district in the prior year.
   (c) This section applies to the 2000-01 fiscal year and subsequent
fiscal years. 
   SEC. 157.    Section 42238.53 of the   
 Education Code   is repealed.  
   42238.53.  (a) Sections 42238.51 and 42238.52 do not apply to
resident pupils in charter schools operating under the districtwide
charter of a district that has converted all of its schools to
charter status pursuant to Section 47606 and has elected not to be
funded pursuant to Article 2 (commencing with Section 47633) of
Chapter 6 of Part 26.
   (b) For the purposes of this section, "resident pupils" means
pupils who reside in, and are otherwise eligible to attend, a school
in the specified district. 
   SEC. 158.    Section 42238.6 of the   
 Education Code   is repealed.  
   42238.6.  (a) The fiscal year average daily attendance computed
under Section 42238.5 shall be increased, for each school district
that operates any school that meets the eligibility requirements set
forth in subdivision (b), by the number of child days of attendance
of pupils enrolled in eligible schools in the district who are
currently migratory children, as defined by Section 54441, and who
are residing in state-operated migrant housing projects between the
second principal apportionment and the end of the regular school
year, divided by the number of days school was actually taught in the
regular day schools of the district, excluding Saturdays and
Sundays.
   (b) For a school to be eligible for the purposes of this section,
the following conditions shall apply:
   (1) One or more state-operated migrant housing projects are
located within the attendance area of the school.
   (2) The maximum number of pupils enrolled in the school in the
relevant fiscal year who are currently migratory children, as
calculated under subdivision (a), constitutes not less than one-third
of the total pupil enrollment of the school.
   (c) The Superintendent of Public Instruction shall establish rules
and regulations for the implementation of this section. 
   SEC. 159.    Section 42238.7 of the   
 Education Code   is repealed.  
   42238.7.  The governing board of each school district, as a
condition of apportionment, shall report to the Superintendent of
Public Instruction, not later than May 1, 1998, and September 1,
1998, respectively, the portion of the attendance in the schools and
classes maintained by the district that was reported for each of the
1996-97 and 1997-98 school years pursuant to Section 41601 that
consisted of absences excused pursuant to subdivision (b) of Section
46010 and to Section 46015, as those sections read on July 1, 1996.

   SEC. 160.    Section 42238.75 of the   
 Education Code   is repealed.  
   42238.75.  Notwithstanding any other provision of law:
   (a) All completed audits, including those on appeal, of school
districts, charter schools, and county offices of education funded by
Item 8860-025-0001 of Section 2.00 of Chapter 50 of the Statutes of
1999, Item 8860-025-0001 of Section 2.00 of Chapter 52 of the
Statutes of 2000, and Item 8860-025-0001 of Section 2.00 of Chapter
106 of the Statutes of 2001, and any findings of those audits, are
withdrawn, and no loss of apportionment arising from the findings of
those audits shall be realized.
   (b) All audits funded by Item 8860-025-0001 of Section 2.00 of
Chapter 50 of the Statutes of 1999, Item 8860-025-0001 of Section
2.00 of Chapter 52 of the Statutes of 2000, and Item 8860-025-0001 of
Section 2.00 of Chapter 106 of the Statutes of 2001, shall be
discontinued.
   (c) The Controller shall notify all school districts, charter
schools, and county offices of education that it is no longer
necessary to retain records supporting pupil attendance and excused
absences used for purposes of calculating average daily attendance
during the 1996-97 fiscal year. 
   SEC. 161.    Section 42238.8 of the   
 Education Code   is repealed.  
   42238.8.  (a) Effective July 1, 1998, the Superintendent of Public
Instruction shall make a one-time adjustment to the revenue limit
per unit of average daily attendance of each school district. This
one-time adjustment shall apply for the 1998-99 fiscal year, and for
each fiscal year thereafter, but not for any year prior to 1998-99,
and shall be accomplished by revision of the prior fiscal year
revenue limit per unit of average daily attendance, as follows:
   (1) Determine a revised revenue limit per unit of average daily
attendance for the 1996-97 fiscal year as follows:
   (A) For each school district that had its revenue limit funding
for the 1996-97 fiscal year calculated on the basis of its 1996-97
average daily attendance pursuant to paragraph (1) of subdivision (a)
of Section 42238.5, the revised revenue limit per unit of average
daily attendance shall equal the adjusted total base revenue limit
determined pursuant to paragraph (2) divided by the adjusted average
daily attendance determined pursuant to subparagraph (A) of paragraph
(3).
   (B) For each school district that had its revenue limit funding
for the 1996-97 fiscal year calculated on the basis of its 1995-96
average daily attendance pursuant to paragraph (1) of subdivision (a)
of Section 42238.5, the revised revenue limit per unit of average
daily attendance shall equal the adjusted total base revenue limit
determined pursuant to paragraph (2) divided by the adjusted average
daily attendance determined pursuant to subparagraphs (B), (C), and
(D) of paragraph (3).
   (2) Determine the amount of the 1996-97 total base revenue limit
funding received pursuant to Section 42238 for growth and nongrowth
average daily attendance, including, as nongrowth average daily
attendance, attendance in necessary small schools in the year
determined to be the greater pursuant to paragraph (1) of subdivision
(a) of Section 42238.5 for the 1996-97 fiscal year, but excluding
attendance in nonpublic, nonsectarian schools, county office operated
special education, and county community school programs.
   (3) (A) Reduce the average daily attendance figure used to make
the determination set forth in paragraph (2) by the amount of average
daily attendance included in that figure for excused absences
pursuant to subdivision (b) of Section 46010 as that subdivision read
on July 1, 1996.
   (B) Determine the second principal apportionment average daily
attendance for the 1996-97 fiscal year, including attendance in
necessary small schools and attendance for excused absences pursuant
to subdivision (b) of Section 46010 as it read on July 1, 1996, but
excluding attendance, including attendance for excused absences, in
nonpublic, nonsectarian schools, county-operated special education
programs, and county community schools.
   (C) Determine the second principal apportionment average daily
attendance for the 1996-97 fiscal year, including attendance in
necessary small schools, but excluding attendance in nonpublic,
nonsectarian schools, county-operated special education programs, and
county community schools and for excused absences pursuant to
subdivision (b) of Section 46010 as it read on July 1, 1996.
   (D) Calculate the adjusted revenue limit average daily attendance
by multiplying the average daily attendance figure used to make the
determination set forth in paragraph (2) by the quotient of the
amount determined pursuant to subparagraph (C) divided by the amount
determined pursuant to subparagraph (B).
                                           (4) Recalculate the
1997-98 fiscal year revenue limit per unit of average daily
attendance to reflect the revision in the 1996-97 revenue limit per
unit of average daily attendance determined pursuant to paragraph
(1).
   (b) The calculations made pursuant to paragraphs (1) and (4) of
subdivision (a) shall not be used for apportionment purposes for
either of the fiscal years referred to in those paragraphs or for
adjustments for those years.
   (c) If the governing board of any school district demonstrates to
the satisfaction of the Superintendent of Public Instruction that,
because of extraordinary circumstances beyond the control of the
school district, the amount of absences excused in one or more
district programs in fiscal year 1996-97 pursuant to subdivision (b)
of Section 46010 as it read on July 1, 1996, was significantly lower
than it would ordinarily have been in comparison to the amount of
actual attendance in fiscal year 1996-97, the Superintendent of
Public Instruction shall make a compensating adjustment, consistent
with the provisions of Section 2 of the Education Code, in the
calculation set forth in this section. 
   SEC. 162.    Section 42238.9 of the   
 Education Code   is repealed.  
   42238.9.  The amount per unit of average daily attendance
subtracted pursuant to Section 56712 for revenue limits for pupils in
special classes and centers shall be the district's total revenue
limit for the current fiscal year computed pursuant to Section 42238,
including funds received pursuant to Article 4 (commencing with
Section 42280), but excluding the total amount of funds received
pursuant to Sections 46200 to 46206, inclusive, and Section 45023.4,
as that section read on July 1, 1986, divided by the district's
current year average daily attendance pursuant to Section 42238.5.
The amount per unit of average daily attendance that is excluded in
this calculation for each school district shall be increased for the
1998-99 fiscal year by the quotient for that district of the amount
determined pursuant to subparagraph (B) of paragraph (3) of
subdivision (a) of Section 42238.8 divided by the amount determined
pursuant to subparagraph (C) of paragraph (3) of subdivision (a) of
Section 42238.8. 
   SEC. 163.    Section 42238.95 of the   
Education Code   is repealed.  
   42238.95.  (a) The amount per unit of average daily attendance for
pupils in special classes and centers that shall be apportioned to
each county office of education shall be equal to the amount
determined for the district of residence pursuant to Section 42238.9,
increased by the quotient equal to the amount determined pursuant to
paragraph (1) divided by the amount determined pursuant to paragraph
(2). This subdivision only applies to average daily attendance
served by employees of the county office of education.
   (1) Determine the second principal apportionment average daily
attendance for special education for the county office of education
for the 1996-97 fiscal year, including attendance for excused
absences, divided by the corresponding average daily attendance
excluding attendance for excused absences pursuant to subdivision (b)
of Section 46010 as it read on July 1, 1996, reported pursuant to
Section 41601 for the 1996-97 fiscal year.
   (2) Determine the second principal apportionment average daily
attendance for the 1996-97 fiscal year, including attendance for
excused absences, for all of the school districts within the county,
excluding average daily attendance for county office special
education and county community school programs and nonpublic
nonsectarian schools, divided by the corresponding average daily
attendance, excluding attendance for excused absences determined
pursuant to subdivision (b) of Section 46010 as it read on July 1,
1996, and reported pursuant to Section 41601 for the 1996-97 fiscal
year.
   (b) A county office of education shall provide the data required
to perform the calculation specified in paragraph (1) of subdivision
(a) to the Superintendent of Public Instruction in order to be
eligible for the adjustment pursuant to subdivision (a). 
   SEC. 164.    Section 42238.11 of the   
 Education Code   is repealed.  
   42238.11.  Notwithstanding any other provision of law, for the
1994-95 fiscal year the county superintendent of schools shall reduce
the total revenue limit for each school district in the jurisdiction
of the county superintendent of schools by the amount of the
decreased employer contributions to the Public Employees' Retirement
System resulting from the enactment of Chapter 330 of the Statutes of
1982, adjusted for any changes in those contributions resulting from
subsequent changes in employer contribution rates, excluding rate
changes due to the direct transfer of the state-mandated portion of
the employer contributions to the Public Employees' Retirement
System, through the 1994-95 fiscal year. The reduction shall be
calculated for each school district as follows:
   (a) Determine the amount of employer contributions that would have
been made in the 1994-95 fiscal year if the applicable Public
Employees' Retirement System employer contribution rate in effect
immediately prior to the enactment of Chapter 330 of the Statutes of
1982 were in effect during the 1994-95 fiscal year.
   For purposes of this calculation, no school district shall have a
contribution rate higher than 13.020 percent.
   (b) Subtract from the amount determined in subdivision (a) the
actual amount of employer contributions made to the Public Employees'
Retirement System in the 1994-95 fiscal year.
   (c) For the purposes of this section, employer contributions to
the Public Employees' Retirement System for any of the following
positions shall be excluded from the calculation specified above:
   (1) Positions or portions of positions supported by federal funds
that are subject to supplanting restrictions.
   (2) Positions supported by funds received pursuant to Section
42243.6.
   (3) Positions supported, to the extent of employer contributions
not exceeding twenty-five thousand dollars ($25,000) by any single
educational agency, from a non-General Fund revenue source determined
to be properly excludable from this section by the Superintendent of
Public Instruction with the approval of the Director of Finance.
   (d) For accounting purposes, the reduction made by this provision
may be reflected as an expenditure from appropriate sources of
revenue as directed by the Superintendent of Public Instruction.
   (e) The amount of the reduction made by this section shall not be
adjusted by the deficit factor calculated pursuant to Section
42238.145.
   It is the intent of the Legislature to make adjustments to school
district revenue limits for the 1994-95 fiscal year to reflect
savings that these districts will realize in the contributions to the
Public Employees' Retirement System due to a reduced contribution
rate for the 1994-95 fiscal year. 
   SEC. 165.    Section 42238.12 of the   
 Education Code   is repealed.  
   42238.12.  (a) For the 1995-96 fiscal year and each fiscal year
thereafter, the county superintendent of schools shall adjust the
total revenue limit for each school district in the jurisdiction of
the county superintendent of schools by the amount of increased or
decreased employer contributions to the Public Employees' Retirement
System resulting from the enactment of Chapter 330 of the Statutes of
1982, adjusted for any changes in those contributions resulting from
subsequent changes in employer contribution rates, excluding rate
changes due to the direct transfer of the state-mandated portion of
the employer contributions to the Public Employees' Retirement
System, through the current fiscal year. The adjustment shall be
calculated for each school district, as follows:
   (1) (A) Determine the amount of employer contributions that would
have been made in the current fiscal year if the applicable Public
Employees' Retirement System employer contribution rate in effect
immediately before the enactment of Chapter 330 of the Statutes of
1982 were in effect during the current fiscal year.
   (B) For purposes of this calculation, no school district shall
have a contribution rate higher than 13.020 percent.
   (2) Determine the actual amount of employer contributions made to
the Public Employees' Retirement System in the current fiscal year.
   (3) If the amount determined in paragraph (1) for a school
district is greater than the amount determined in paragraph (2), the
total revenue limit computed for that school district shall be
decreased by the amount of the difference between those paragraphs;
or, if the amount determined in paragraph (1) for a school district
is less than the amount determined in paragraph (2), the total
revenue limit for that school district shall be increased by the
amount of the difference between those paragraphs.
   (4) For the purpose of this section, employer contributions to the
Public Employees' Retirement System for any of the following
positions shall be excluded from the calculation specified above:
   (A) Positions or portions of positions supported by federal funds
that are subject to supplanting restrictions.
   (B) Positions supported by funds received pursuant to Section
41540 that are established in order to satisfy court-ordered
desegregation requirements.
   (C) Positions supported, to the extent of employers' contributions
not exceeding twenty-five thousand dollars ($25,000) by any single
educational agency, from a non-General Fund revenue source determined
to be properly excludable from this section by the Superintendent
with the approval of the Director of Finance. Commencing in the
2002-03 fiscal year, only positions supported from a non-General Fund
revenue source determined to be properly excludable as identified
for a particular local educational agency or pursuant to a blanket
waiver by the Superintendent and the Director of Finance, before the
2002-03 fiscal year, may be excluded pursuant to this paragraph.
   (5) For accounting purposes, any reduction to school district
revenue limits made by this provision may be reflected as an
expenditure from appropriate sources of revenue as directed by the
Superintendent.
   (6) The amount of the increase or decrease to the revenue limits
of school districts computed pursuant to paragraph (3) for the
1995-96 to 2002-03 fiscal years, inclusive, may not be adjusted by
the deficit factor applied to the revenue limit of each school
district pursuant to Section 42238.145.
   (7) For the 2003-04 fiscal year and any fiscal year thereafter,
the revenue limit reduction specified in Section 42238.146 may not be
applied to the amount of the increase or decrease to the revenue
limits of school districts computed pursuant to paragraph (3).
   (b) The calculations set forth in paragraphs (1) to (3),
inclusive, of subdivision (a) exclude employer contributions for
employees of charter schools funded pursuant to Article 2 (commencing
with Section 47633) of Chapter 6 of Part 26.8.
   (c) Funding appropriated through the Budget Act of 2001 or
legislation amending the Budget Act of 2001 for the purpose of
limiting the reductions to revenue limits calculated pursuant to this
section and to Section 2558 for the 2001-02 fiscal year shall be
allocated on a one-time basis in the following manner:
   (1) Each school district and county office of education subject to
a reduced apportionment pursuant to this section or to Section 2558
shall receive a share of the amount described in paragraph (3) that
is proportionate to the reduction in their apportionment pursuant to
this section or to Section 2558 for the 2001-02 fiscal year as
compared to the statewide total reduction that would occur absent
this paragraph.
   (2) For the 2001-02 fiscal year, instead of the alternative
calculation authorized by paragraph (1), San Francisco Unified School
District shall receive an amount equal to five dollars and 57 cents
($5.57) multiplied by its second principal apportionment average
daily attendance for the 2001-02 fiscal year.
   (3) Notwithstanding any other law, total allocations pursuant to
this subdivision may not exceed thirty-five million dollars
($35,000,000).
   (d) Thirty-five million dollars ($35,000,000) is hereby
appropriated from the General Fund for transfer to Section A of the
State School Fund for local assistance for the purpose of limiting
the reductions to revenue limits calculated pursuant to this section
and to Section 2558 for the 2003-04 fiscal year. Funding from this
appropriation shall be allocated in the following manner:
   (1) Each school district and county office of education subject to
a reduced apportionment pursuant to this section or to Section 2558
shall receive a share of the amount appropriated in this subdivision
that is proportionate to the reduction in their apportionment
pursuant to this section or to Section 2558 for the 2003-04 fiscal
year as compared to the statewide total reduction that would occur
absent this paragraph.
   (2) For the 2003-04 fiscal year, instead of the alternative
calculation authorized by paragraph (1), the San Francisco Unified
School District shall receive an amount equal to five dollars and 57
cents ($5.57) multiplied by its second principal apportionment
average daily attendance for the 2003-04 fiscal year.
   (3) Notwithstanding any other law, total allocations pursuant to
this subdivision may not exceed thirty-five million dollars
($35,000,000) for the 2003-04 fiscal year.
   (4) For the purposes of making the computations required by
Section 8 of Article XVI of the California Constitution, the
appropriation made by this section shall be deemed to be "General
Fund revenues appropriated for school districts," as defined in
subdivision (c) of Section 41202, for the 2003-04 fiscal year and
included within the "total allocations to school districts and
community college districts from General Fund proceeds of taxes
appropriated pursuant to Article XIII B," as defined in subdivision
(e) of Section 41202, for the 2003-04 fiscal year.
   (e) For the 2004-05 fiscal year, and each fiscal year thereafter,
apportionment reductions pursuant to this section and to Section 2558
shall be limited as follows:
   (1) Each school district and county office of education subject to
a reduced apportionment pursuant to this section or to Section 2558
shall receive a share of the amount described in paragraph (3) that
is proportionate to the reduction in their apportionment pursuant to
this section or to Section 2558 for the 2004-05 fiscal year as
compared to the statewide total reduction as would occur absent this
paragraph.
   (2) Instead of the alternative calculation authorized by paragraph
(1), the San Francisco Unified School District shall receive funding
equal to the amount of funding per unit of average daily attendance
specified in paragraph (2) of subdivision (c) as increased annually
by cost-of-living adjustments specified in Section 42238.1,
multiplied by its second principal apportionment average daily
attendance for that fiscal year.
   (3) Notwithstanding any other law, total limitations pursuant to
this subdivision may not annually exceed thirty-five million dollars
($35,000,000) as annually increased by the cost-of-living adjustments
specified in Section 42238.1, multiplied by the annual statewide
percentage growth in total average daily attendance, measured at the
second principal apportionment. 
   SEC. 166.    Section 42238.13 of the   
 Education Code   is repealed.  
   42238.13.  (a) Notwithstanding any other provision of law, for any
elementary school district that meets all of the criteria specified
in subdivision (b), the base revenue limit for the 1988-89 fiscal
year and each subsequent fiscal year computed pursuant to Section
42238 shall be computed as though the 1987-88 base revenue limit per
unit of average daily attendance was two thousand nine hundred
sixty-five dollars ($2,965). The county superintendent shall compute
the revenue limit on that basis.
   (b) The revenue limit computation described in subdivision (a)
shall apply to any elementary school district that meets all of the
following criteria:
   (1) The minority enrollment in the district in the 1987-88 school
year was greater than 98 percent.
   (2) The AFDC enrollment in the district in the 1987-88 school year
was greater than 32 percent.
   (3) The district ranked in all of the following categories in the
1986-87 California Assessment Program as follows:
   (A) Lowest 3 percent for third grade reading.
   (B) Lowest 2 percent for sixth grade reading.
   (C) Lowest 1 percent for eighth grade reading.
   (D) Lowest 1 percent for sixth grade mathematics.
   (E) Lowest 1 percent for eighth grade mathematics.
   (F) Lowest 1 percent for history/social science.
   (G) Lowest 1 percent for science.
   (4) The district's 1987-88 base revenue limit was 2 percent below
the statewide average for elementary districts and 7 percent below
the county average for elementary districts.
   (5) The district is under a court order as of the effective date
of this act. 
   SEC. 167.    Section 42238.14 of the   
 Education Code   is repealed.  
   42238.14.  For the purposes of this article, the revenue limit for
the 1993-94 fiscal year for each school district determined pursuant
to this article and adjusted pursuant to Section 42238.16 shall be
reduced by a 8.14 percent deficit factor. 
   SEC. 168.    Section 42238.145 of the  
  Education Code   is repealed.  
   42238.145.  For the purposes of this article, the revenue limit
for each school district shall be reduced by a deficit factor, as
follows:
   (a) (1) For the 1994-95 fiscal year, the revenue limit for each
school district determined pursuant to this article shall be reduced
by an 11.01 percent deficit factor.
   (2) For the 1995-96 fiscal year, the revenue limit for each school
district determined pursuant to this article shall be reduced by a
10.12 percent deficit factor.
   (3) For the 1996-97 and 1997-98 fiscal years, the revenue limit
for each school district determined pursuant to this article shall be
reduced by a 9.967 percent deficit factor, as adjusted pursuant to
Section 42238.42.
   (4) For the 1999-2000 fiscal year, the revenue limit for each
school district determined pursuant to this article shall be reduced
by a 6.996 percent deficit factor.
   (b) (1) The revenue limit for the 1994-95 fiscal year for each
school district shall be determined as if the revenue limit for each
school district had been determined for the 1993-94 fiscal year
without being reduced by the deficit factor required pursuant to
Section 42238.14.
   (2) When computing the revenue limit for each school district for
the 1995-96 or any subsequent fiscal year pursuant to this article,
the revenue limit shall be determined as if the revenue limit for
that school district had been determined for the previous fiscal year
without being reduced by the deficit factor specified in this
section. 
   SEC. 169.    Section 42238.146 of the  
  Education Code   is repealed.  
   42238.146.  (a) (1) For the 2003-04 fiscal year, the revenue limit
for each school district determined pursuant to this article shall
be reduced by a 1.198 percent deficit factor.
   (2) For the 2004-05 fiscal year, the revenue limit for each school
district determined pursuant to this article shall be reduced by a
0.323 percent deficit factor.
   (3) For the 2003-04 and 2004-05 fiscal years, the revenue limit
for each school district determined pursuant to this article shall be
further reduced by a 1.826 percent deficit factor.
   (4) For the 2005-06 fiscal year, the revenue limit for each school
district determined pursuant to this article shall be reduced by a
0.892 percent deficit factor.
   (5) For the 2008-09 fiscal year, the revenue limit for each school
district determined pursuant to this article shall be reduced by a
7.844 percent deficit factor.
   (6) For the 2009-10 fiscal year, the revenue limit for each school
district determined pursuant to this article shall be reduced by a
18.355 percent deficit factor.
   (7) For the 2010-11 fiscal year, the revenue limit for each school
district determined pursuant to this article shall be reduced by a
17.963 percent deficit factor.
   (8) For the 2011-12 fiscal year, the revenue limit for each school
district determined pursuant to this article shall be reduced by a
20.404 percent deficit factor.
   (9) For the 2012-13 fiscal year, the revenue limit for each school
district determined pursuant to this article shall be reduced by a
22.272 percent deficit factor.
   (b) In computing the revenue limit for each school district for
the 2006-07 fiscal year pursuant to this article, the revenue limit
shall be determined as if the revenue limit for that school district
had been determined for the 2003-04, 2004-05, and 2005-06 fiscal
years without being reduced by the deficit factors specified in
subdivision (a).
   (c) In computing the revenue limit for each school district for
the 2010-11 fiscal year pursuant to this article, the revenue limit
shall be determined as if the revenue limit for that school district
had been determined for the 2009-10 fiscal year without being reduced
by the deficit factors specified in subdivision (a).
   (d) In computing the revenue limit for each school district for
the 2011-12 fiscal year pursuant to this article, the revenue limit
shall be determined as if the revenue limit for that school district
had been determined for the 2010-11 fiscal year without being reduced
by the deficit factors specified in subdivision (a).
   (e) In computing the revenue limit for each school district for
the 2012-13 fiscal year pursuant to this article, the revenue limit
shall be determined as if the revenue limit for that school district
had been determined for the 2011-12 fiscal year without being reduced
by the deficit factors specified in subdivision (a).
   (f) In computing the revenue limit for each school district for
the 2013-14 fiscal year pursuant to this article, the revenue limit
shall be determined as if the revenue limit for that school district
had been determined for the 2012-13 fiscal year without being reduced
by the deficit factors specified in subdivision (a). 
   SEC. 170.    Section 42238.15 of the   
 Education Code   is amended to read: 
   42238.15.  (a) Notwithstanding any other law, and in lieu of any
inflation or cost-of-living adjustment otherwise authorized for any
of the programs enumerated in subdivision (b), state funding for the
programs enumerated in subdivision (b) shall be increased annually by
the product of the following:
   (1) The sum of 1.0 plus the percentage change determined under
 paragraph (2) of  subdivision  (b)  
(d)  of Section  42238.1   42238.02  .

   (2) The sum of 1.0 plus the percentage of increase, from the prior
fiscal year to the current fiscal year, in each of the workload
factors described in subdivision (b).
   (b) The programs for which annual state funding increases are
determined under this section, and the factors used to measure
workload for each of those programs, are as follows:
   (1) Special education programs and services, as measured by the
regular second principal apportionment average daily attendance for
kindergarten and grades 1 to 12, inclusive.
              (2) Child care and development programs, and preschool
programs, as measured by the state population of children up to and
including four years of age. 
   (3) Instructional materials for kindergarten and grades 1 to 8,
inclusive, as measured by enrollment in kindergarten and grades 1 to
8, inclusive.  
   (4) Instructional materials for grades 9 to 12, inclusive, as
measured by enrollment in those grades.  
   (5) Regional occupational programs and centers, as measured by
enrollment in grades 11 and 12.  
   (6) School improvement programs in kindergarten and grades 1 to 6,
inclusive, as measured by enrollment in kindergarten and grades 1 to
6, inclusive.  
   (7) School improvement programs in grades 7 to 12, inclusive, as
measured by enrollment in those grades.  
   (8) Economic impact aid, as measured by the number of children of
ages 5 to 17 years, inclusive, from families that receive Aid to
Families with Dependent Children and the number of pupils of limited
English proficiency, as identified pursuant to Section 52163.
 
   (9) Staff development programs, as measured by enrollment in
kindergarten and grades 1 to 12, inclusive.  
   (10) Gifted and talented education programs, as measured by
enrollment in kindergarten and grades 1 to 12, inclusive. 
   (c) Notwithstanding any other law, child care and development
programs shall not receive a cost-of-living adjustment in the
2012-13, 2013-14, and 2014-15 fiscal years.
   SEC. 171.    Section 42238.17 of the   
Education Code   is repealed.  
   42238.17.  Notwithstanding any other provision of law, for any
school district that was reorganized effective July 1, 1992, as a
unified school district and that is congruent to a school district
that was reorganized as an elementary school district effective July
1, 1990, the Superintendent of Public Instruction shall compute
apportionments using the following data:
   (a) For the purposes of paragraph (1) of subdivision (d) of
Section 42238 for the 1990-91 and 1991-92 fiscal years, the
superintendent shall use the actual number of units of average daily
attendance for the 1990-91 fiscal year second principal
apportionments.
   (b) For the purposes of paragraph (1) of subdivision (d) of
Section 42238, for the 1992-93 fiscal year and each fiscal year
thereafter, the superintendent shall use the actual number of units
of average daily attendance for the 1992-93 fiscal year second
principal apportionment. 
   SEC. 172.    Section 42238.18 of the   
 Education Code   is repealed.  
   42238.18.  (a) Notwithstanding any other provision of law, only
those pupils enrolled in county office of education programs while
detained in a juvenile hall, juvenile home, day center, juvenile
ranch, juvenile camp, or regional youth educational facility
established pursuant to Article 23 (commencing with Section 850),
Article 24 (commencing with Section 880), and Article 24.5
(commencing with Section 894) of Chapter 2 of Part 1 of Division 2 of
the Welfare and Institutions Code shall be counted as juvenile court
school pupils. For purposes of apportionments, those pupils in a
group home housing 25 or more children placed pursuant to Sections
362, 727, and 730 of the Welfare and Institutions Code or in any
group home housing 25 or more children and operating one or more
additional sites under a central administration for children placed
pursuant to Section 362, 727, or 730 of the Welfare and Institutions
Code shall be reported as county group home and institutions pupils
to the Superintendent and shall be counted as juvenile court school
pupils for purposes of apportionments.
   (b) Notwithstanding any other provision of law, any county
superintendent of schools operating juvenile court schools, county
group home and institutions schools, or community schools, or any
combination of these schools shall maintain an account in their
general fund to be known as the juvenile court and community school
account, and shall deposit all funds derived from the operation of
juvenile court, county group home and institutions schools, and
community schools into that account. Expenditures from the juvenile
court and community school account shall be limited to the following:

   (1) Those expenditures defined as direct costs of instructional
programs by the California State School Accounting Manual, except
that facility costs, including the costs of renting, leasing,
purchasing, remodeling, constructing, or improving buildings and the
costs of purchasing or improving land, shall be allowed as an
instructional cost in the juvenile court and community school fund.
Deferred maintenance contributions made pursuant to Section 17584 may
also be allowed as an instructional cost of juvenile court and
county community school programs, provided the contribution does not
exceed the program's proportionate share of total county school
service fund expenditures as defined in Section 17584, and provided
the funds are used for deferred maintenance of juvenile court and
county community school facilities.
   (2) Expenditures that are defined as documented direct support
costs by the California State School Accounting Manual.
   (3) Expenditures that are defined as allocated direct support
costs by the California State School Accounting Manual.
   (4) Other expenditures for support and indirect charges. However,
these charges may not exceed 10 percent of the sum of the
expenditures in paragraphs (1), (2), and (3).
   Expenditures that represent contract payments to other agencies
for the operation of juvenile court and community school programs
shall be included in the juvenile court and community school account
and the contract costs distributed to the cost categories defined in
paragraphs (1), (2), (3), and (4). At the end of any given school
year the net ending balance in the juvenile court and community
school account may be distributed to a reserved account for economic
contingencies or to a reserved account for capital outlay, provided
that the combined total transferred does not exceed 15 percent of the
current year's authorized expenditures as specified above and also
provided that funds placed in the reserved accounts shall only be
expended for juvenile court, county group home and institutions, or
community school programs. The net ending balance, except for those
funds placed in a capital outlay fund, shall not exceed the greater
of 15 percent of the previous year's expenditures or twenty-five
thousand dollars ($25,000). A county may accumulate over a period of
two or more given school years a net ending balance in the capital
outlay reserved account of more than 15 percent of the current fiscal
year's expenditures under provisions of a resolution of the
governing board. Funds in the capital outlay reserve are to be used
for capital outlay only. The Superintendent shall require an annual
certification by county superintendents of schools beginning in the
1989-90 fiscal year that juvenile court, county group home and
institutions, and community school funds have been expended as
provided in this section and shall withhold from the subsequent year'
s apportionment an amount equal to any excess ending balance or
excess transfers, as provided in this subdivision, in the juvenile
court and community school account.
   (c) Notwithstanding any other provision of law, pupils who are
referred by the county probation department under Section 601 or 654
of the Welfare and Institutions Code, shall be enrolled and eligible
for apportionments in county community schools only after an
individualized review and certification of the appropriateness of
enrollment in the county group home and institution's school or
county community school. The individualized review shall include
representatives of the court, the county department of education, the
county probation department, and either the school district of
residence or, in cases in which the pupil resides in a group home or
institution, the school district in which the group home or
institution is located, and, in each case, the school district
representative shall agree to the appropriateness of the proposed
placement and pupils so placed shall have a probation officer
assigned to their case.
   (d) Regardless of the operative date of the amendments to this
section made during the 1997 portion of the 1997-98 Regular Session,
this section, as so amended, shall be implemented as though it had
been operative on July 1, 1996. For the purpose of implementing this
section for the entire 1996-97 fiscal year, the Superintendent and
other public officers shall take all necessary steps to effect the
required adjustments and shall have authority to adjust allowance
computations, apportionments, and disbursements ordered from Section
A of the State School Fund and other public funds. 
   SEC. 173.    Section 42238.20 of the   
 Education Code   is amended to read: 
   42238.20.  (a) Notwithstanding any other law, commencing in the
 2008-09   2013-14  fiscal year, the
minimum schoolday for a pupil concurrently enrolled in regular
secondary school classes and classes operating pursuant to a joint
powers agreement that became effective before January 1, 2008, is 180
minutes. These regular secondary school classes constitute regular
school classes for the purposes of Section 46010.3.
   (b) Notwithstanding any other law, for purposes of computing the
average daily attendance of a pupil described in subdivision (a), the
180-minute minimum schoolday permitted by this section shall be
computed and reported as attendance for three-quarters of the full
240-minute minimum schoolday prescribed by Section 46141.
   (c) For a pupil described in subdivision (a), the average daily
attendance shall be included as school district average daily
attendance computed pursuant to Section  42238.5 
 42238.05  .
   (d) (1) Commencing with the  2008-09  
2013-14  fiscal year, the Superintendent shall compute funding
for each pupil enrolled in classes as described in subdivision (a),
for the period of time each day during which the pupil attends
classes pursuant to a joint powers agreement, by multiplying the
annual clock hours of attendance, up to a maximum of three clock
hours per schoolday, by the rate described in subdivision (e)
 or (f)  , as applicable.
   (2) The Superintendent shall add the amount computed pursuant to
paragraph (1) to the  revenue limit calculated pursuant to
Section 42238   local control funding formula calculated
pursuant to Section 42238.02, as implemented by Section 42238.03,
 for the school district of attendance of the pupil.
   (3) A pupil shall not generate apportionment credit pursuant to
this subdivision for more than 540 hours in any school year.
   (e) The hourly rate for the  2008-09  
2012-13  fiscal year shall be determined as follows:
   (1) Subtract 73.3 percent of the school district  revenue
limit   local control funding formula allocation 
funding per unit of average daily attendance computed pursuant to
Section  42238 for the 2007-08   42238.02, as
implemented by Section 42238.03, for the 2013-14  fiscal year
for the school districts that entered into the joint powers agreement
from the statewide average  revenue limit  
local control funding formula allocation pursuant to Section
42238.02, as implemented by Section 42238.03,  funding per unit
of average daily attendance  received by high school
districts computed pursuant to paragraph (1) of subdivision (a) of
Section 47633 for the 2007-08 fiscal year  .
   (2) Divide the amount computed in paragraph (1) by 540. 
   (3) Multiply the amount in paragraph (2) by the cost of living,
deficit factor, and equalization adjustments applied to revenue
limits for the 2008-09 fiscal year.  
   (f) Commencing with the 2009-10 fiscal year, the hourly rate for
the current fiscal year shall be determined by multiplying the prior
year hourly rate by the cost of living, deficit factor, and
equalization adjustments applied to the current year revenue limit
computed pursuant to Section 42238.  
   (g) 
    (f)  For purposes of computing attendance pursuant to
Section 46300 or any other law, immediate supervision and control of
pupils while attending classes pursuant to a joint powers agreement
described in subdivision (a) is deemed satisfied regardless of the
school district employing the certificated employee providing the
supervision and control, provided the school district is a party to
the joint powers agreement. 
   (h) 
    (g)  The auditor who conducts the annual audit pursuant
to Section 41020 shall verify compliance with this section by each
school district that is a party to the joint powers agreement as
described in subdivision (a). An instance of noncompliance shall be
reported as an audit exception. If the noncompliance is a condition
of eligibility for the receipt of funds, the audit report shall
include a statement of the number of units of average daily
attendance or hours, if any, that were inappropriately reported for
apportionment. 
   (i) 
    (h)  Notwithstanding any other law, the number of hours
of instruction at regional occupational centers or programs that are
claimed for funding pursuant to subdivision (d) shall be used, in
addition to the hourly rate determined pursuant to subdivision (e) or
(f), whichever subdivision is applicable, in the computation of the
average daily attendance of the regional occupational center or
program. 
   (j) This section shall become inoperative on July 1, 2017, and, as
of January 1, 2018, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2018, deletes or
extends the dates on which it becomes inoperative and is repealed.

   SEC. 174.    Section 42238.23 of the   
 Education Code   is repealed.  
   42238.23.  Notwithstanding any other provision of law, persons
providing services to local education agencies through use of a joint
powers authority involving the local education agency who would, in
absence of the joint powers authority, otherwise be considered school
employees and subject to the Public Employees' Retirement System
rate reduction to revenue limits authorized in Section 42238, shall
not be excluded from the calculations of the Public Employees'
Retirement System reduction authorized in that section. 
   SEC. 175.    Section 42238.24 of the   
 Education Code   is repealed.  
   42238.24.  Costs related to the salaries and benefits of teachers
incurred by a school district or county office of education to
provide the courses specified in paragraph (1) of subdivision (a) of
Section 51225.3 shall be offset by the amount of state funding
apportioned to the district pursuant to this article, or in the case
of a county office of education pursuant to Article 2 (commencing
with Section 2550) of Chapter 12 of Part 2 of Division 1 of Title 1,
and the amount of state funding received from any of the items listed
in Section 42605 that are contained in the annual Budget Act. The
proportion of the school district's current expense of education that
is required to be expended for payment of the salaries of classroom
teachers pursuant to Section 41372 shall first be allocated to fund
the teacher salary costs incurred to provide the courses required by
the state. 
   SEC. 176.    Section 42239 of the  
Education Code   is repealed.  
   42239.  (a) For each fiscal year the Superintendent of Public
Instruction shall compute funding for supplemental instruction for
each school district or charter school by multiplying the number of
pupil hours of supplemental instruction claimed pursuant to Sections
37252 and 37252.2 by the pupil hour allowance specified in
subdivision (b) or by a pupil hour allowance specified in the annual
Budget Act in lieu of the amount computed in subdivision (b).
   (b) Hours of supplemental instruction shall be reimbursed at a
rate of three dollars and fifty-three cents ($3.53) per pupil hour,
adjusted in the 2005-06 fiscal year and subsequent fiscal years as
specified in this section, provided that a different reimbursement
rate may be specified for each fiscal year in the annual Budget Act
that appropriates funding for that fiscal year. This amount shall be
increased annually by the percentage increase pursuant to subdivision
(b) of Section 42238.1 granted to school districts or charter
schools for base revenue limit cost-of-living increases.
   (c) (1) If appropriated funding is insufficient to pay all claims
made in any fiscal year pursuant to Sections 37252 and 37252.2, the
superintendent shall use any available funding appropriated for the
purposes of reimbursing school districts pursuant to Section 37252 or
37252.2.
   (2) If appropriated funding is still insufficient to pay all
claims made in any fiscal year pursuant to Section 37252 or 37252.2,
the superintendent shall use any available funding appropriated for
the purposes of reimbursing school districts for supplemental
instruction in the prior fiscal year.
   (3) If appropriated funding is still insufficient to pay all
claims made in any fiscal year pursuant to Section 37252 or 37252.2,
the superintendent shall use any available funding appropriated for
the purposes of reimbursing school districts for supplemental
instruction in the current fiscal year.
   (4) The superintendent shall notify the Director of Finance that
there is an insufficiency of funding appropriated for the purposes of
Sections 37252 and 37252.2 only after the superintendent has
exhausted all available balances of appropriations made for the
current or prior fiscal years for the reimbursement of school
districts for supplemental instruction.
   (d) Notwithstanding any other provision of law, neither the State
Board of Education nor the Superintendent of Public Instruction may
waive any provision of this section. 
   SEC. 177.    Section 42240 of the  
Education Code   is repealed.  
   42240.  For the 1988-89 fiscal year, the Superintendent of Public
Instruction shall do the following:
   (a) Using the latest available data as of July 1, 1987, identify
each school district that meets all of the following criteria:
   (1) Has a second principal apportionment average daily attendance
of fewer than 2,501 for the prior fiscal year.
   (2) Has approved home-to-school transportation costs in excess of
3 percent of its general fund total expense of education in the prior
fiscal year.
   (b) For each school district identified pursuant to subdivision
(a), or that receives funding pursuant to Section 42240 or 42240.1 in
the prior fiscal year, the superintendent shall make the following
calculations:
   (1) Subtract from the approved home-to-school transportation costs
an amount equal to 3 percent of the general fund total expense of
education exclusive of lottery revenues.
   (2) Compare the amount determined in paragraph (1) to the amount
the district received in the 1987-88 fiscal year pursuant to Sections
42240 and 42240.1.
   (c) If the comparison results in an amount less than the amount
received in the 1987-88 fiscal year, the superintendent shall use
that amount, but in no case shall the superintendent use an amount
less than 95 percent of the amount received in the 1987-88 fiscal
year.
   (d) The superintendent shall calculate the net savings from the
comparison in subdivision (c).
   (e) If the comparison results in an amount greater than the amount
received in the 1987-88 fiscal year, the superintendent shall use
the amount calculated as the sum of the following:
   (1) The amount received in the 1987-88 fiscal year.
   (2) The amount determined by allocating the net savings calculated
in subdivision (d) on a pro rata basis to each district in
proportion to the amount by which comparison results in an amount
greater than the amount received in the 1987-88 fiscal year.
   (f) The superintendent shall divide the amount determined pursuant
to subdivision (c) or (e), whichever is appropriate, by the 1987-88
second principal apportionment average daily attendance.
   (g) The amount determined by subdivision (f) may be added to the
amount determined pursuant to subdivision (b) of Section 42238.
   (h) The amount determined pursuant to subdivision (c) or (e),
whichever is appropriate, may be added to the district's
transportation allowance under Section 41850.
   (i) Each school district eligible for funds may elect to have the
funds allocated pursuant to either subdivision (g) or (h).
   (j) The amounts added to subdivision (b) of Section 42238 pursuant
to subdivision (g) and the amount added to Section 41850 by
subdivision (h) shall be considered to be permanent adjustments to
the base revenue limit or transportation allowance as appropriate.

   SEC. 178.    Section 42240.1 of the   
 Education Code  is repealed.  
   42240.1.  Any elementary school district with less than 2,501
units of average daily attendance in grades kindergarten to 6,
inclusive, for the second principal apportionment in the 1978-79
fiscal year, whose 7th and 8th grade pupils were being educated by a
high school district pursuant to Article 5 (commencing with Section
37060) of Chapter 1 of Part 22 during the 1978-79 fiscal year, shall
be entitled to the revenue limit adjustment computed pursuant to
Section 42240 beginning with the 1981-82 fiscal year.
   This section shall become operative January 1, 1982. 
   SEC. 179.    Section 42241.3 of the   
 Education Code   is repealed.  
   42241.3.  (a) This section applies only to the funding generated
by the average daily attendance of pupils attending a charter school
that has operated as a charter school since prior to July 1, 2005, if
a unified school district has been the sponsoring local educational
agency as defined in subdivision (i) of Section 47632, and if the
unified school district was governed by Section 47660 as that section
read on December 31, 2005.
   (b) For the 2005-06 fiscal year only, the revenue limit funding of
a unified school district, other than a unified school district that
has converted all of its schools to charter status pursuant to
Section 47606 and is operating them as charter schools, shall be
increased or decreased to reflect half of the difference between the
funding provided for the base revenue limit per unit of average daily
attendance of the unified school district as set forth in Section
42238 and the general-purpose entitlement per unit of average daily
attendance of the charter school as set forth in Section 47633.

   SEC. 180.   Section 42241.7 of the   
 Education Code   is repealed.  
   42241.7.  (a) For the 1978-79 fiscal year, and each fiscal year
thereafter, the revenue limit of any elementary, high, or unified
school district authorized pursuant to Sections 42237 and 42238 may
be increased by an amount sufficient to provide additional revenue
equal to the expenditures estimated to be incurred by the district in
the budget year in complying with the following provisions of the
Unemployment Insurance Code: Sections 605 and 803, Article 6
(commencing with Section 821) of Chapter 3 of Part 1 of Division 1,
or Article 3 (commencing with Section 976) of Chapter 4 of Part 1 of
Division 1, less the actual expenditures incurred by the district in
the 1975-76 fiscal year in complying with the following provisions of
the Unemployment Insurance Code: Section 605.2 and Article 6
(commencing with Section 821) of Chapter 3 of Part 1 of Division 1.
   (b) If, at the end of any fiscal year, the actual expenditures of
the district specified in subdivision (a) are less than the revenue
derived from the increase in revenue limit provided in subdivision
(a) for that fiscal year, the difference shall be used in the
following fiscal year exclusively for expenditures required pursuant
to the Unemployment Insurance Code provisions specified in
subdivision (a).
                                           (c) If, at the end of any
fiscal year, the actual expenditures of the district specified in
subdivision (a) exceed the revenue derived from the increase in
revenue limit provided in subdivision (a) for that fiscal year, the
difference may be added to the increase in revenue limit, authorized
pursuant to this section, in the following fiscal year.
   (d) (1) For the 1994-95 to 2002-03 fiscal years, inclusive, the
adjustment computed pursuant to this section shall not be adjusted by
the deficit factor applied to the revenue limit of each school
district pursuant to Section 42238.145.
   (2) For the 2003-04 fiscal year and each fiscal year thereafter,
the revenue limit reduction specified in Section 42238.146 may not be
applied to the adjustment computed pursuant to this section.
   (e) Expenditures for employees of charter schools funded pursuant
to Article 2 (commencing with Section 47633) of Chapter 6 of Part
26.8 are excluded from the calculations set forth in this section.

   SEC. 181.    Section 42242 of the  Education
Code   is repealed.  
   42242.  The Superintendent of Public Instruction shall determine
at the time of each apportionment the proposed receipts and
expenditures of funds under the provisions of the Individuals with
Disabilities Education Act (20 U.S.C. Sec. 1400 et seq.). In the
event that the proposed distribution of funds results in funds not
being expended, those funds are hereby reappropriated for
reallocation for local entitlements for special education.
   This section shall become operative July 1, 1984. 
   SEC. 182.    Section 42243.7 of the   
 Education Code   is repealed.  
   42243.7.  (a) For any school district that commenced operations on
or after June 30, 1978, or for any school district that receives
approval from the department for a new continuation education high
school for the 1979-80 fiscal year, or any fiscal year thereafter,
the Superintendent of Public Instruction shall compute an adjustment
to the district revenue limit pursuant to this section.
   (b) Determine the amount of foundation program that the district
would have been entitled to pursuant to subdivision (a) of Section
41711, as that section read on July 1, 1977, if the district had
operated during the 1977-78 fiscal year, utilizing the number of
units of average daily attendance attending high school in the
district in the fiscal year for which the revenue limit is being
computed.
   (c) Determine the amount of foundation program that the district
would have been entitled to pursuant to paragraph (1) of subdivision
(b) of Section 41711, as that section read on July 1, 1977, if the
district had operated during the 1977-78 fiscal year, utilizing the
same number of units of average daily attendance used in subdivision
(b) of this section.
   (d) Subtract the amount determined pursuant to subdivision (c)
from the amount computed pursuant to subdivision (b).
   (e) The amount computed pursuant to subdivision (d), if greater
than zero, shall be added to the revenue limit computed pursuant to
subdivision (c) of Section 42237 or pursuant to Section 42238. If the
amount in subdivision (d) is less than zero there is no adjustment.
   (f) The Superintendent of Public Instruction shall reduce by the
amount computed pursuant to subdivision (e) the revenue limit
computed pursuant to Section 42238 of any district discontinuing the
operation of a continuation education school approved pursuant to
subdivision (a).
   (g) (1) For the 1994-95 to 2002-03 fiscal years, inclusive, the
adjustment computed pursuant to this section may not be adjusted by
the deficit factor applied to the revenue limit of each school
district pursuant to Section 42238.145.
   (2) For the 2003-04 fiscal year and each fiscal year thereafter,
the revenue limit reduction specified in Section 42238.146 may not be
applied to the adjustment computed pursuant to this section.
   (h) The adjustment computed pursuant to this section for a new
continuation education high school may be applicable for any unified
school district that was not fully operational during the first year
of operation of the continuation education high school. The number of
units of average daily attendance to be used in computing the
adjustment shall be the number of units of average daily attendance
generated by the continuation education high school in the district
for the first year that the district is fully operational in all
grades.
   (i) In the 1998-99 fiscal year and each fiscal year thereafter,
the ranges of average daily attendance resulting from the calculation
set forth in this section pursuant to Section 41711, as that section
read on July 1, 1977, shall be reduced by the statewide average
percentage that absences excused pursuant to subdivision (b) of
Section 46010, as that section read on July 1, 1996, were of total
second principal apportionment regular average daily attendance for
high schools in 1996-97, with the reduced ranges then rounded to the
nearest integer.
   (j) Commencing with the 2005-06 fiscal year and notwithstanding
any provision of law, the amount of the adjustment calculated
pursuant to this section shall not be added to the revenue limit of a
school district, but shall be used in determining the amount of the
pupil retention block grant awarded a school district pursuant to
Article 1 (commencing with Section 41500) of Chapter 3.2. 
   SEC. 183.    Section 42244 of the  
Education Code   is repealed.  
   42244.  It is the intent of the Legislature that, in the event a
district increases its average daily attendance at a continuation
education school above the average daily attendance level approved
pursuant to subdivision (a) of Section 42243.7, the entire amount of
the revenues generated by the additional average daily attendance
shall be expended on the continuation education school program.

   SEC. 184.    Section 42245 of the  
Education Code   is repealed.  
   42245.  Whenever any computation required by this article results,
because of estimating or other errors, in a total revenue limit in
an amount more or less than actual data would have produced, the
revenue limit for the succeeding fiscal year shall be reduced by an
amount equal to the amount of the error if the total produced was
more, and may be increased by an amount up to the amount of the error
if the total produced was less. 
   SEC. 185.    Section 42251 of the  
Education Code   is repealed.  
   42251.  (a) The Superintendent shall make the following
calculations for the 2011-12 fiscal year:
   (1) Determine the amount of funds that will be restricted after
the Superintendent makes the deduction pursuant to Section 52335.3
for each county office of education pursuant to subdivision (e) of
Section 2558 as of June 30, 2012.
   (2) Divide fifty million dollars ($50,000,000) by the statewide
sum of the amounts determined pursuant to paragraph (1). If the
fraction is greater than one it shall be deemed to be one.
   (3) Multiply the fraction determined pursuant to paragraph (2) by
the amount determined pursuant to paragraph (1) for each county
office of education.
   (b) The auditor-controller of each county shall distribute the
amounts determined in paragraph (3) of subdivision (a) to the
Supplemental Revenue Augmentation Fund created within the county
pursuant to Section 100.06 of the Revenue and Taxation Code. The
aggregate amount of transfers required by this subdivision shall be
made in two equal shares, with the first share being transferred no
later than January 15, 2012, and the second share being transferred
after that date but no later than May 1, 2012.
   (c) The moneys transferred to the Supplemental Revenue
Augmentation Fund in the 2011-12 fiscal year shall be transferred by
the county office of education to the Controller, in amounts and for
those purposes as directed by the Director of Finance, exclusively to
reimburse the state for the costs of providing trial court services
and costs until those moneys are exhausted. 
   SEC. 186.    Article 3 (commencing with Section
42260) of Chapter 7 of Part 24 of Division 3   of Title 2 of
the   Education Code   is repealed. 
   SEC. 187.    Section 42280 of the  
Education Code   is amended to read: 
   42280.  (a) For each school district that meets, in the current or
prior fiscal year, the conditions specified in Section 42281, 42282,
or 42284 the  county superintendent of schools 
 Superintendent  shall compute, for each qualifying school
in the  school  district, an amount pursuant to this
article.
   (b) For each school district that is a countywide unified school
district that had fewer than 2,501 units of average daily attendance
in the 1990-91 fiscal year, the  county superintendent of
schools   Superintendent  shall compute an amount
pursuant to this article for those schools that meet the conditions
specified in Sections 42283 and 42285 in the current or prior fiscal
year. This subdivision is only applicable to those schools funded
pursuant to this article in the 1990-91 fiscal year and, in
subsequent years, if the school district has no more than 3,000 units
of average daily attendance. 
   (c) For the 1998-99 fiscal year, average daily attendance reported
pursuant to Section 41601 for the 1997-98 fiscal year, exclusive of
average daily attendance for absences excused pursuant to subdivision
(b) of Section 46010 as that subdivision read on July 1, 1996, shall
be used for the purpose of determining whether school districts meet
the conditions in Sections 42281, 42282, and 42284 for the prior
fiscal year. 
   SEC. 188.    Section 42281 of the  
Education Code   is amended to read: 
   42281.   (a)    Except as
specified in paragraph (4), for each elementary school district that
maintains only one school with a second principal apportionment
average daily attendance of less than 101, the  county
superintendent   Superintendent  shall make one of
the following computations, whichever provides the lesser amount:

   (1) 
    (a)  For each small school that has an average daily
attendance during the fiscal year of less than  26, 
 24,  exclusive of pupils attending the 7th and 8th grades
of a junior high school, and for which school at least one teacher
was hired full time, the  county superintendent 
 Superintendent  shall compute for the school 
district fifty-two thousand nine hundred twenty-five dollars
($52,925). 
   (2) 
    (b)  For each small school that has an average daily
attendance during the fiscal year of  26   25
 or more and less than  51,   48, 
exclusive of pupils attending the 7th and 8th grades of a junior high
school, and for which school at least two teachers were hired full
time for more than one-half of the days schools were maintained, the
 county superintendent   Superintendent 
shall compute for the  school  district one hundred five
thousand eight hundred fifty dollars ($105,850). 
   (3) 
    (c)  For each small school that has an average daily
attendance during the fiscal year of  51   49
 or more but less than  76,   72, 
exclusive of pupils attending the 7th and 8th grades of a junior high
school, and for which school three teachers were hired full time for
more than one-half of the days schools were maintained, the 
county superintendent   Superintendent  shall
compute for the  school  district one hundred fifty-eight
thousand seven hundred seventy-five dollars ($158,775). 
   (4) 
    (d)  For each small school that has an average daily
attendance during the fiscal year of  76   73
 or more and less than  101,   96, 
exclusive of pupils attending the 7th and 8th grades of a junior high
school, and for which school four teachers were hired full time for
more than one-half of the days schools were maintained, the 
county superintendent   Superintendent  shall
compute for the  school  district two hundred eleven
thousand seven hundred dollars ($211,700). A school district that
qualifies under this subdivision may use this funding calculation
until the  revenue limit   local control funding
formula allocation pursuant to Section   42238.02, as
implemented by Section 42238.03,  per unit of average daily
attendance multiplied by the average daily attendance produces state
aid equal to the small school funding formula. 
   (b) For the 1998-99 fiscal year and each fiscal year thereafter,
the average daily attendance figure of 101 specified in subdivision
(a) and the ranges of average daily attendance specified in
paragraphs (1) to (4), inclusive, shall be reduced by the statewide
average rate of excused absence reported for elementary school
districts for the 1996-97 fiscal year pursuant to Section 42238.7,
with the resultant figures and ranges rounded to the nearest integer.

   SEC. 189.    Section 42282 of the  
Education Code   is amended to read: 
   42282.  For each district with fewer than 2,501 units of second
principal apportionment average daily attendance, on account of each
necessary small school, the  county superintendent 
 Superintendent  shall make the following computations:
   (a) For each necessary small school which has an average daily
attendance during the fiscal year of less than  26, 
 24,  exclusive of pupils attending the 7th and 8th grades
of a junior high school, and for which school at least one teacher
was hired full time, the  county superintendent 
 Superintendent  shall compute for the  school 
district fifty-two thousand nine hundred twenty-five dollars
($52,925).
   (b) For each necessary small school which has an average daily
attendance during the fiscal year of  26   25
 or more and less than  51,   48, 
exclusive of pupils attending the 7th and 8th grades of a junior high
school, and for which school at least two teachers were hired full
time for more than one-half of the days schools were maintained, the
 county superintendent   Superintendent 
shall compute for the  school  district one hundred five
thousand eight hundred fifty dollars ($105,850).
   (c) For each necessary small school which has an average daily
attendance during the fiscal year of  51   49
 or more, but less than  76,   72, 
exclusive of pupils attending the 7th and 8th grades of a junior high
school, and for which school three teachers were hired full time for
more than one-half of the days schools were maintained, the 
county superintendent   Superintendent  shall
compute for the  school  district one hundred fifty-eight
thousand seven hundred seventy-five dollars ($158,775).
   (d) For each necessary small school which has an average daily
attendance during the fiscal year of  76   73
 or more and less than  101,   96, 
exclusive of pupils attending the 7th and 8th grades of a junior high
school, and for which school four teachers were hired full time for
more than one-half of the days schools were maintained, the 
county superintendent   Superintendent shall
compute for the  school  district two hundred eleven
thousand seven hundred dollars ($211,700).
   (e) A school district that qualifies under this section may use
this funding calculation until the  revenue limit 
 local control funding formula allocation pursuant to Section
42238.02, as implemented by Section 42238.03,  per unit of
average daily attendance multiplied by the average daily attendance
produces state aid equal to the small school funding formula.

   (f) For the 1998-99 fiscal year and each fiscal year thereafter,
the ranges of average daily attendance specified in subdivisions (a)
to (d), inclusive, shall be reduced by the statewide average rate of
excused absences reported for elementary school districts for the
1996-97 fiscal year pursuant to Section 42238.7, with the resultant
figures and ranges rounded to the nearest integer. 
   SEC. 190.    Section 42282.1 of the   
 Education Code   is repealed.  
   42282.1.  (a) Notwithstanding Section 42282, or any other
provision of law, each necessary small school in the Death Valley
Unified School District shall qualify for the apportionment specified
in subdivision (b) of Section 42282 if that school has an average
daily attendance of 21 or more and less than 51, exclusive of pupils
attending the 7th and 8th grades of a junior high school, and for
which school at least two teachers were hired full-time for more than
one-half of the days schools were maintained.
   (b) It is the intent of the Legislature not to provide a special
allowance to the Death Valley Unified School District for one of its
schools by future legislation if the average daily attendance at the
school is 18 or less. 
   SEC. 191.    Section 42283 of the  
Education Code   is amended to read: 
   42283.  (a) For  the  purposes of 
Section   Sections 42281 and  42282, a "necessary
small school" is an elementary school with an average daily
attendance of less than 101, exclusive of pupils attending the
seventh and eighth grades of a junior high school, maintained by a
school district  which maintains two or more schools and
 to which school any of the following conditions apply:
   (1) If as many as five pupils residing in the  school 
district and attending kindergarten and grades 1 to 8, inclusive,
exclusive of pupils attending the seventh and eighth grades of a
junior high school in the elementary school with an average daily
attendance of less than 101 would be required to travel more than 10
miles one way from a point on a well-traveled road nearest their home
to the nearest other public elementary school.
   (2) If as many as 15 pupils residing in the  school 
district and attending kindergarten and grades 1 to 8, inclusive,
exclusive of pupils attending the seventh and eighth grades of a
junior high school in the elementary school with an average daily
attendance of less than 101 would be required to travel more than
five miles one way from a point on a well-traveled road nearest their
home to the nearest other public elementary school.
   (3) If topographical or other conditions exist in a  school
 district which would impose unusual hardships if the number of
miles specified in paragraph (1) or (2) were required to be traveled,
or if during the fiscal year the roads which would be traveled have
been impassable for more than an average of two weeks per year for
the preceding five years, the governing board of the  school
 district may, on or before April 1, request the Superintendent
 of Public Instruction  , in writing, for an
exemption from these requirements or for a reduction in the miles
required. The request shall be accompanied by a statement of the
conditions upon which the request is based, giving the information in
a form required by the Superintendent  of Public Instruction
 . The Superintendent  of Public Instruction
 shall cause an investigation to be made, and shall either
grant the request to the extent he or she deems necessary, or deny
the request. 
   (b) For the 1998-99 fiscal year and each fiscal year thereafter, a
"necessary small school," as defined in subdivision (a), shall be an
elementary school with an average daily attendance of less than 101
reduced by the statewide average rate of excused absence reported for
elementary school districts for the 1996-97 fiscal year pursuant to
Section 42238.7, rounded to the nearest integer.  
   (b) For purposes of this section, "other public elementary school"
is a public school, including a charter school, that serves
kindergarten or any of grades 1 to 8, inclusive, exclusive of grades
7 and 8 of a junior high school. 
   SEC. 192.    Section 42283.1 of the   
 Education Code   is repealed.  
   42283.1.  (a) Notwithstanding any provision of this article or any
other provision of law, Mt. Hamilton Elementary School and Harney
Elementary School each shall be deemed a necessary small school, as
defined in Section 42283. In lieu of the amount calculated for
necessary small schools, and in addition to the amount per unit of
average daily attendance received by the districts, as calculated
pursuant to Article 2 (commencing with Section 42238), the Alum Rock
Union Elementary School District shall receive in each fiscal year,
commencing with the 1993-94 fiscal year, a twenty thousand dollar
($20,000) apportionment for Mt. Hamilton Elementary School and the
Patterson Joint Unified School District shall receive a twenty
thousand dollar ($20,000) apportionment for Harney Elementary School.

   (b) If either Mt. Hamilton Elementary School or Harney Elementary
School exceeds 20 units of average daily attendance in any fiscal
year, then that school shall no longer be entitled to receive the
apportionments set forth in subdivision (a). 
   SEC. 193.    Section 42283.2 of the   
 Education Code   is repealed.  
   42283.2.  (a)  Notwithstanding any other provision of law, the
Rand Elementary School shall be deemed a necessary small school, as
defined in Section 42283. Notwithstanding any other provision of law,
the Sierra Sands Unified School District is eligible to receive
apportionments for the Rand Elementary School pursuant to Section
42282.
   (b) If the amount of average daily attendance of the Rand
Elementary School exceeds 100, then that school shall no longer be
entitled to receive apportionments as a necessary small school.

   SEC. 194.    Section 42284 of the  
Education Code   is amended to read: 
   42284.  (a) For each district with fewer than 2,501 units of
average daily attendance, on account of each necessary small high
school, the  county superintendent of schools  
Superintendent  shall make one of the following computations
selected with regard only to the number of certificated employees
employed or average daily attendance, whichever provides the lesser
amount:
                        Minimum
                         number
Average                   of           Amount to
daily                certificated          be
attendance            employees         computed
    1-  20   19  .......     less than 3
     $42,980
                                       per teacher
    1-  20   19  .......           3
     191,340
   2  1   0  -  40  
38  .......           4
234,320
    41   39  -  60  
57  .......           5
277,300
    61   58 - 7  5   1
 .......           6
320,280
   7  6   2  -  90  
86  .......           7
363,260
    91-105 .......           8            406,240 
    87- 100 ......           8            406,240 
  10  6   1  -1  20  
14  .......           9
449,220
  1  2  1  5  -1  35  
29  .......          10
492,200
  13  6   0  -1  50  
43  .......          11
535,180
  1  51   44  -1  80  
71  .......          12
578,160
  1  81-   7  2  -  2  1 
0 .......          13
621,140
  2  2   1  1-2  60  
48  .......          14
664,120
  2  61   49  -  300  
286  .......          15
707,100


   (b) For purposes of this section, a "certificated employee" means
an equivalent full-time position of an individual holding a
credential authorizing service and providing service in grades 9 to
12, inclusive, in any secondary school. Any fraction of an equivalent
full-time position remaining after all equivalent full-time
positions for certificated employees within the district have been
calculated shall be deemed to be a full-time position.
   (c) A school district that qualifies under this section may use
the funding calculation as provided in this section until the
 revenue limit   local control funding formula
allocation pursuant to Section 42238.02, as implemented by Section
42238.03,  per unit of average daily attendance multiplied by
the average daily attendance produces state aid equal to the funding
provided under this section. 
   (d) For the 1998-99 fiscal year and each fiscal year thereafter,
the ranges of average daily attendance specified in the table in
subdivision (a) shall be reduced by the statewide average rate of
excused absence reported for high school districts for the 1996-97
fiscal year pursuant to Section 42238.7, with the resultant ranges
rounded to the nearest integer. 
   SEC. 195.    Section 42285 of the  
Education Code   is amended to read: 
   42285.  (a) For  the  purposes of Section 42284,
a necessary small high school is a high school with an average daily
attendance of less than 301 that comes within any of the following
conditions:
   (1) The projection of its future enrollment on the basis of the
enrollment of the elementary schools in the district shows that
within eight years the enrollment in high school in grades 9 to 12,
inclusive, will exceed 300 pupils.
   (2) Any one of the following combinations of distance and units of
average daily attendance applies:

            (A) The high school had an average daily attendance of
less than 100 in grades 9 to 12, inclusive, during the preceding
fiscal year and is more than 15 miles by well-traveled road from the
nearest other public high school and either 90 percent of the pupils
would be required to travel 20 miles or 25 percent of the pupils
would be required to travel 30 miles one way from a point on a
well-traveled road nearest their homes to the nearest other public
high school.
   (B) The high school had an average daily attendance of 100 or more
and less than 150 in grades 9 to 12, inclusive, during the preceding
fiscal year and is more than 10 miles by well-traveled road from the
nearest other public high school and either 90 percent of the pupils
would be required to travel 18 miles or 25 percent of the pupils
would be required to travel 25 miles one way from a point on a
well-traveled road nearest their homes to the nearest other public
high school.
   (C) The high school had an average daily attendance of 150 or more
and less than 200 in grades 9 to 12, inclusive, during the preceding
fiscal year and is more than 71/2 miles by well-traveled road from
the nearest other public high school and either 90 percent of the
pupils would be required to travel 15 miles or 25 percent of the
pupils would be required to travel 20 miles one way from a point on a
well-traveled road nearest their homes to the nearest other public
high school.
   (D) The high school had an average daily attendance of 200 or more
and less than 301 in grades 9 to 12, inclusive, during the preceding
fiscal year and is more than five miles by well-traveled road from
the nearest other public high school and either 90 percent of the
pupils would be required to travel 10 miles or 25 percent of the
pupils would be required to travel 15 miles to the nearest other
public high school.
   (3) Topographical or other conditions exist in the school
 district which would impose unusual hardships on the pupils if
the number of miles specified above were required to be traveled. In
these cases, the Superintendent may, when requested, and after
investigation, grant exceptions from the distance requirements.
   (4) The Superintendent has approved the recommendation of a county
committee on school district organization designating one of two or
more schools as necessary isolated schools in a situation where the
schools are operated by two or more  school  districts and
the average daily attendance of each of the schools is less than 301
in grades 9 to 12, inclusive.
   (b) For  the  purposes of Section 42284, a
necessary small high school also includes  any of the
following:   a high school maintained by a school
district for the exclusive purpose of educating juvenile hall pupils
or pupils with exceptional needs.  
   (1) The only high school maintained by a unified school district.
 
   (2) A high school maintained by a school district for the
exclusive purpose of educating juvenile hall pupils or pupils with
exceptional needs.  
   (3) (A) The Sea View Elementary School in the Coachella Valley
Unified School District, as long as the amount of average daily
attendance of that school is 286 or less.  
   (B) The West Shores High School in the Coachella Valley Unified
School District, as long as the amount of average daily attendance of
that school is 286 or less. 
   (c) For  the  purposes of Section 42284, a
necessary small high school does not include a continuation school.

   (d) For each fiscal year, the high school and junior high school
average daily attendance figures specified in subdivision (a) and the
ranges of average daily attendance specified in paragraph (2) of
subdivision (a) shall be reduced by the statewide average rate of
excused absence reported for high school districts for the 1996-97
fiscal year pursuant to Section 42238.7, with the resultant figures
and ranges rounded to the nearest integer.  
   (d) For purposes of this section, "other public high school" is a
public school, including a charter school, that serves any of grades
9 to 12, inclusive, or grades 7 and 8 in a junior high school. 
   SEC. 196.    Section 42285.1 of the   
 Education Code   is repealed.  
   42285.1.  (a) For purposes of Section 42285, a necessary small
high school includes the Boys Republic High School maintained by the
Chino Unified School District in which the majority of the pupils are
placed by court order and the enrollment of the school is less than
200 pupils. The total amount annually received by the Chino Unified
School District pursuant to this section for the 1988-89 fiscal year
and each fiscal year thereafter shall not exceed an amount equal to
the sum of one hundred eighty thousand dollars ($180,000) plus the
amount of revenue that the average daily attendance in the Boys
Republic High School would have generated pursuant to Section 42238
and paragraph (1) of subdivision (a) of Section 42238.5.
   (b) The Chino Unified School District shall submit an annual
report to the State Department of Education regarding the necessary
small high school as defined in this section. The report shall
include, but not be limited to, the number of pupils attending the
school, the number of teachers teaching in the school, the number of
days that classes were held in the school, and the type of program
provided by the district.
   (c) It is the intent of the Legislature that the Chino Unified
School District receive funding as provided by this section
commencing with the 1988-89 fiscal year and continuing in subsequent
fiscal years. 
   SEC. 197.    Section 42285.4 of the   
 Education Code   is repealed.  
   42285.4.  Notwithstanding any other provision of law, the River
Delta Unified School District is eligible to receive apportionments
pursuant to the schedule and criteria for small necessary high
schools set forth in Section 42284 if the school district has no more
than 3,000 units of average daily attendance. 
   SEC. 198.    Section 42285.5 of the   
 Education Code   is amended to read: 
   42285.5.  (a) For purposes of subdivision (a) of Section 42284 and
Section 42285, a school district may include average daily
attendance in grades 7 and 8 and the instructors of grade 7 and 8
pupils in the calculation of average daily attendance and number of
certificated employees employed  in the 2011-12 fiscal year
if the school district included average daily attendance in grades 7
and 8 and the instructors of grade 7 and 8 pupils in the calculation
of average daily attendance and certificated employees employed in
the 2010-11 fiscal year  .
   (b) Notwithstanding Sections 42284 and 42285, for purposes of this
section, with respect to a school district eligible to utilize
subdivision (a), any references to grades 9 to 12, inclusive, in
Sections 42284 and 42285 shall be deemed instead to be references to
grades 7 to 12, inclusive.
   SEC. 199.    Section 42286 of the  
Education Code   is amended to read: 
   42286.  (a) Except as required under subdivision (b), if a high
school is determined to be a necessary small high school under
Section 42285, that status shall not be changed except as a review of
the determinative factors made every  five  
two  years following the date of the determination indicates
that the determination should be changed.
   (b) If a high school is determined to be a necessary small high
school under paragraph (3) of subdivision (b) of Section 42285, that
status shall not be changed except as a review of the determinative
factors made every two years following the date of the determination
indicates that the determination should be changed.
   (c)  Any   A  high school that has not
been determined to be a necessary small high school under Section
42285, may be determined to be a necessary small high school at the
beginning of  any   a  fiscal year if it
meets the criteria specified in Section 42285.
   SEC. 200.    Section 42287 of the  
Education Code   is amended to read: 
   42287.   Commencing with the 2013-14 fiscal year, the
Superintendent shall increase the funding amounts specified in
Sections 42281, 42282, and 42284 by an amount proportionate to the
increase in the statewide average local control funding formula
allocations pursuant to Section 42238.02, as implemented by Section
42238.03, for the then current fiscal year.  For the 1984-85
fiscal year  and each fiscal year thereafter,  
to the 2012-13 fiscal year, inclusive,  the Superintendent
 of Public Instruction  shall increase the funding
amounts specified in Sections 42281, 42282, and 42284 by an amount
proportionate to the increase applied to the statewide average
revenue limit for unified school districts for the then current
fiscal year.
   SEC. 201.    Section 42289 of the  
Education Code   is repealed.  
   42289.  Notwithstanding any other provision of law, for each
fiscal year, prior to calculating the increase in funding amount
specified in Section 42287, the Superintendent of Public Instruction
shall increase the funding amounts specified in Sections 42281,
42282, and 42284, by the product of subdivisions (a) and (b):
   (a) The amount per unit of average daily attendance received by
the district pursuant to Section 46201 in the prior fiscal year.
   (b) The average daily attendance for each necessary small school
and necessary small high school for which the district received
funding in the prior fiscal year pursuant to Section 42281, 42282, or
42284, as appropriate. 
   SEC. 202.    Section 42289.1 of the   
 Education Code   is repealed.  
   42289.1.  (a) Notwithstanding any other provision of law, for the
1988-89 fiscal year and each fiscal year thereafter, after
calculating the increase in funding amounts specified in Section
42287, the Superintendent of Public Instruction shall increase the
funding amounts specified in Sections 42281, 42282, and 42284, by the
sum of paragraphs (1) and (2):
   (1) Compute the product of subparagraphs (A) and (B):
   (A) The amount per unit of average daily attendance computed
pursuant to subdivision (g) of Section 42240.
   (B) The average daily attendance for each necessary small school
and necessary small high school for which the district receives
funding in the current fiscal year pursuant to Section 42281, 42282,
or 42284, as appropriate.
   (2) Commencing in the 1990-91 fiscal year and each fiscal year
thereafter, the amount computed pursuant to paragraph (1) shall be
increased by the percentage cost-of-living increase given to school
district revenue limits for the then current fiscal year. 
   SEC. 203.    Section 42289.2 of the   
 Education Code  is repealed.  
   42289.2.  (a) Notwithstanding any other provision of law, for the
1989-90 fiscal year and each fiscal year thereafter, after
calculating the increase in funding amounts specified in Section
42287, the Superintendent of Public Instruction shall increase the
funding amounts specified in Sections 42281, 42282, and 42284, by the
sum of paragraphs (1) and (2):
   (1) Compute the product of subparagraphs (A) and (B):
   (A) The amount per unit of average daily attendance computed
pursuant to subdivision (e) of Section 54060.5.
   (B) The average daily attendance for each necessary small school
and necessary small high school for which the district receives
funding in the current fiscal year pursuant to Section 42281, 42282,
or 42284, as appropriate.
   (2) Commencing in the 1990-91 fiscal year and each fiscal year
thereafter, the amount computed pursuant to paragraph (1) shall be
increased by the percentage cost-of-living increase given to school
district revenue limits for the then current fiscal year. 
  SEC. 204.    Section 42289.3 of the   
 Education Code   is repealed.  
   42289.3.  (a) Notwithstanding any other provision of law, for the
1989-90 fiscal year and each fiscal year thereafter, after
calculating the increase in funding amounts specified in Section
42287, the Superintendent of Public Instruction shall increase the
funding amounts specified in Sections 42281, 42282, and 42284, by the
sum of paragraphs (1) and (2):
   (1) Compute the product of subparagraphs (A) and (B):
   (A) The amount per unit of average daily attendance computed
pursuant to subdivision (e) of Section 54060.6.
   (B) The average daily attendance for each necessary small school
and necessary small high school for which the district receives
funding in the current fiscal year pursuant to Section 42281, 42282,
or 42284, as appropriate.
   (2) Commencing in the 1990-91 fiscal year and each fiscal year
thereafter, the amount computed pursuant to paragraph (1) shall be
increased by the percentage cost-of-living increase given to school
district revenue limits for the then current fiscal year. 
   SEC. 205.    Section 42289.4 of the   
 Education Code   is   repealed.  

   42289.4.  (a) Notwithstanding any other provision of law, for the
1989-90 fiscal year and each fiscal year thereafter, after
calculating the increase in funding amounts specified in Section
42287, the Superintendent of Public Instruction shall increase the
funding amounts specified in Sections 42281, 42282, and 42284, by the
sum of paragraphs (1) and (2):
   (1) Compute the product of subparagraphs (A) and (B):
   (A) The amount per unit of average daily attendance computed
pursuant to subdivision (b) of Section 54060.7.
   (B) The average daily attendance for each necessary small school
and necessary small high school for which the district receives
funding in the current fiscal year pursuant to Section 42281, 42282,
or 42284, as appropriate.
   (2) Commencing in the 1990-91 fiscal year and each fiscal year
thereafter, the amount computed pursuant to paragraph (1) shall be
increased by the percentage cost-of-living increase given to school
district revenue limits for the then current fiscal year. 
   SEC. 206.    Section 42289.5 of the   
Education Code   is repealed.  
   42289.5.  Notwithstanding any other provision of law, the
increases determined pursuant to Sections 42289, 42289.1, 42289.3,
and 42289.4 shall be permanently increased for the 1998-99 fiscal
year by the quotient, for each district eligible for an increase, of
the amount determined pursuant to subparagraph (B) of paragraph (3)
of subdivision (a) of Section 42238.8 divided by the amount
determined pursuant to subparagraph (C) of paragraph (3) of
subdivision (a) of Section 42238.8. 
   SEC. 207.    Section 42289.6 of the  
 Education Code   is repealed.  
   42289.6.  (a) It is the intent of the Legislature that the Quality
Education Commission review the eligibility provisions for the
establishment of necessary small schools as specified in Sections
42280, 42282, 42283, 42284, and 42285, including the following:
   (1) The appropriate size for a necessary small elementary school,
a necessary small middle school, and a necessary small high school.
   (2) Whether mileage and other eligibility requirements are
appropriate or need to be modified.
   (b) It is further the intent of the Legislature that by January 1,
2006, the Quality Education Commission recommend to the Legislature
modifications regarding the size, eligibility requirements, and
funding of necessary small schools. 
   SEC. 208.    Article 4.5 (commencing with Section
42290) of Chapter 7 of Part 24 of   Division 3 of Title 2 of
the   Education Code   is repealed. 
   SEC. 209.    Article 4.7 (commencing with Section
42300) of Chapter 7 of Part 24 of   Division 3 of Title 2 of
the   Education Code   is repealed. 
   SEC. 210.    Section 42401 of the  
Education Code   is amended to read: 
   42401.  (a) Revenues from any transactions and use tax imposed
pursuant to Chapter 3.5 (commencing with Section 7288.1) of Part 1.7
of Division 2 of the Revenue and Taxation Code shall not be
considered "allocated local proceeds of taxes" pursuant to Section
41202 of the Education Code or paragraph (2) of subdivision (b) of
Section 8 of Article XVI of the California Constitution.
   (b) Revenues derived from any transactions and use tax imposed
pursuant to Chapter 3.5 (commencing with Section 7288.1) of Part 1.7
of Division 2 of the Revenue and Taxation Code shall supplement, and
shall not be offset against, the allocations made pursuant to
 Section 2558 or 42238   Section 2575 or
42238.02, as implemented pursuant to Section 42238.03,  of the
Education Code.
   SEC. 211.    Section 42604 of the  
Education Code   is repealed.  
   42604.  Notwithstanding any other provisions of law, the
computation of reimbursement for the costs of attendance specified in
contractual agreements through which educational services are
provided by other than the district or county in which a pupil
resides shall be based on the revenue per average daily attendance
received by the school district or county in which the pupil resides
rather than the computed revenue limit or foundation program per
average daily attendance of the district or county of residence.

   SEC. 212.    Section 42605 of the  
Education Code   is repealed.  
   42605.  (a) (1) Unless otherwise prohibited under federal law or
otherwise specified in subdivision (e), for the 2008-09 fiscal year
to the 2014-15 fiscal year, inclusive, recipients of funds from the
items listed in paragraph (2) may use funding received, pursuant to
subdivision (b), from any of these items listed in paragraph (2) that
are contained in Section 2.00 of the annual Budget Act, for any
educational purpose.
   (2) Items 6110-104-0001, 6110-105-0001, 6110-108-0001,
6110-122-0001, 6110-124-0001, 6110-137-0001, 6110-144-0001,
6110-150-0001, 6110-151-0001, 6110-156-0001, 6110-181-0001,
6110-188-0001, 6110-189-0001, 6110-190-0001, 6110-193-0001,
6110-195-0001, 6110-198-0001, 6110-204-0001, 6110-208-0001,
6110-209-0001, 6110-211-0001, 6110-227-0001, 6110-228-0001,
6110-232-0001, 6110-240-0001, 6110-242-0001, 6110-243-0001,
6110-244-0001, 6110-245-0001, 6110-246-0001, 6110-247-0001,
6110-248-0001, 6110-260-0001, 6110-265-0001, 6110-266-0001,
6110-267-0001, 6110-268-0001, and 6360-101-0001 of Section 2.00.
   (b) (1) For the 2009-10 fiscal year to the 2014-15 fiscal year,
inclusive, the Superintendent or other administering state agency, as
appropriate, shall apportion from the amounts provided in the annual
Budget Act for the items enumerated in paragraph (2) of subdivision
(a) an amount to recipients based on the same relative proportion
that the recipient received in the 2008-09 fiscal year for the
programs funded through the items enumerated in paragraph (2) of
subdivision (a).
   (2) This section and Section 42 of Chapter 12 of the Third
Extraordinary Session of the Statutes of 2009 do not authorize a
school district that receives funding on behalf of a charter school
pursuant to Sections 47634.1 and 47651 to redirect this funding for
another purpose unless otherwise authorized in law or pursuant to an
agreement between a charter school and its chartering authority.
Notwithstanding paragraph (1), for the 2008-09 fiscal year to the
2014-15 fiscal year, inclusive, a school district that receives
funding on behalf of a charter school pursuant to Sections 47634.1
and 47651 shall continue to distribute the funds to those charter
schools based on the relative proportion that the school district
distributed in the 2007-08 fiscal year, and shall adjust those
amounts to reflect changes in charter school attendance in the
district. The amounts allocated shall be adjusted for any greater or
lesser amount appropriated for the items enumerated in paragraph (2)
of subdivision (a). For a charter school that began operation in the
2008-09 fiscal year, if a school district received funding on behalf
of that charter school pursuant to Sections 47634.1 and 47651, the
school district shall continue to distribute the funds to that
charter school based on the relative proportion that the school
district distributed in the 2008-09 fiscal year and shall adjust the
amount of those funds to reflect changes in charter school attendance
in the district. The amounts allocated shall be adjusted for any
greater or lesser amount appropriated for the items enumerated in
paragraph (2) of subdivision (a).
   (3) Notwithstanding paragraph (1), for the 2008-09 fiscal year to
the 2014-15 fiscal year, inclusive, the Superintendent shall
apportion from the amounts appropriated by Item 6110-211-0001 of
Section 2.00 of the annual Budget Act an amount to a charter school
in accordance with the per-pupil methodology prescribed in
subdivision (c) of Section 47634.1.
   (4) Notwithstanding paragraph (1), for the 2008-09 fiscal year to
the 2014-15 fiscal year, inclusive, the Superintendent shall
apportion from the amounts provided in the annual Budget Act an
amount to a school district, charter school, and county office of
education based on the same relative proportion that the local
educational agency received in the 2007-08 fiscal year for the
programs funded through the following items contained in Section 2.00
of the annual Budget Act: 6110-104-0001, 6110-105-0001,
6110-156-0001, 6110-190-0001, Schedule (3) of 6110-193-0001,
6110-198-0001, 6110-232-0001, and Schedule (2) of 6110-240-0001.
   (5) For purposes of paragraph (4), if a direct-funded charter
school began operation in the 2008-09 fiscal year, the amount that
the charter school was entitled to receive from the items enumerated
in paragraph (4) for the 2008-09 fiscal year, as certified by the
Superintendent in March 2009, is deemed to have been received in the
2007-08 fiscal year.
   (c) (1) This section does not obligate the state to refund or
repay reductions made pursuant to this section. A decision by a
school district to reduce funding pursuant to this section for a
state-mandated local program shall constitute a waiver of the
subvention of funds that the school district is otherwise entitled to
pursuant to Section 6 of Article XIII B of the California
Constitution on the amount so reduced.
   (2) (A) As a condition of receipt of funds, the governing board of
the school district or governing board of the county office of
education, as appropriate, at a regularly scheduled open public
hearing shall take testimony from the public, discuss, approve or
disapprove the proposed use of funding, and make explicit for each of
the budget items in paragraph (2) of subdivision (a) the purposes
for which the funds will be used.
   (B) The regularly scheduled open public hearing held pursuant to
subparagraph (A) shall be held before and independent of a meeting
where the governing board of the school district or governing board
of the county office of education adopts a budget. If the governing
board intends to close a program funded by the items listed in
paragraph (2) of subdivision (a), the governing board shall identify,
in the notice of the agenda of the public hearing or at another
public hearing, the program or programs proposed to be closed.
   (3) Using the Standardized Account Code Structure reporting
process, a local educational agency shall report expenditures of
funds pursuant to the authority of this section by using the
appropriate function codes to indicate the activities for which these
funds are expended. The department shall collect and provide this
information to the Department of Finance and the appropriate policy
and budget committees of the Legislature by April 15, 2010, and
annually thereafter on April 15 until, and including, April 15, 2016.

   (d) For the 2008-09 fiscal year to the 2014-15 fiscal year,
inclusive, local educational agencies that use the flexibility
provision of this section shall be deemed to be in compliance with
the program and funding requirements contained in statutory,
regulatory, and provisional language, associated with the items
enumerated in subdivision (a).
   (e) Notwithstanding subdivision (d), the following requirements
shall continue to apply:
   (1) For Item 6110-105-0001 of Section 2.00 of the annual Budget
Act, the amount authorized for flexibility shall exclude the funding
provided to fund remedial educational services pursuant to Provision
                                         4. For Item 6110-156-0001 of
Section 2.00 of the annual Budget Act, the amount authorized for
flexibility shall exclude the funding provided for instruction of
CalWORKs-eligible students pursuant to Schedules (2) and (3) and
Provisions 2 and 4.
   (2) (A) Any instructional materials purchased by a local
educational agency for kindergarten and grades 1 to 8, inclusive, and
for grades 9 to 12, inclusive, shall be aligned with the state
standards adopted pursuant to Section 60605 or 60605.8, and shall
also meet the reporting and sufficiency requirements contained in
Section 60119.
   (B) For purposes of this section, "sufficiency" means that each
pupil has sufficient textbooks and instructional materials in the
four core areas as defined by Section 60119 and that all pupils
within the local educational agency who are enrolled in the same
course shall have identical textbooks and instructional materials, as
specified in Section 1240.3.
   (3) For Item 6110-195-0001 of Section 2.00 of the annual Budget
Act, the item shall exclude moneys that are required to fund awards
for teachers that have previously met the requirements necessary to
obtain these awards, until the award is paid in full.
   (4) For Item 6110-266-0001 of Section 2.00 of the annual Budget
Act, a county office of education shall conduct at least one site
visit to each of the required schoolsites pursuant to Section 1240
and shall fulfill all of the duties set forth in Sections 1240 and
44258.9.
   (5) For Item 6110-198-0001 of Section 2.00 of the annual Budget
Act, a school district or county office of education that operates
the child care component of the Cal-SAFE program shall comply with
paragraphs (5) and (6) of subdivision (c) of Section 54746.
   (f) This section does not invalidate any state law pertaining to
teacher credentialing requirements or the functions that require
credentials. 
   SEC. 213.    Section 42606 of the  
Education Code   is repealed.  
   42606.  (a) To the extent funds are provided, for the 2010-11 to
the 2014-15 fiscal years, inclusive, the Superintendent shall
allocate a supplemental categorical block grant to a charter school
that began operation during or after the 2008-09 fiscal year. These
supplemental categorical block grant funds may be used for any
educational purpose. Commencing in the 2011-12 fiscal year, a locally
or direct funded charter school that converted from a preexisting
school between the 2008-09 and 2014-15 fiscal years, inclusive, is
not eligible for funding specified in this section. A charter school
that receives funding pursuant to this subdivision shall not receive
additional funding for programs specified in paragraph (2) of
subdivision (a) of Section 42605, with the exception of the program
funded pursuant to Item 6110-211-0001 of Section 2.00 of the annual
Budget Act.
   (b) (1) For the 2010-11 fiscal year, the supplemental categorical
block grant shall equal one hundred twenty-seven dollars ($127) per
unit of charter school average daily attendance as determined at the
2010-11 second principal apportionment for charter schools commencing
operations during or after the 2008-09 fiscal year. A locally funded
charter school that converted from a preexisting school during or
after the 2008-09 fiscal year is not eligible for funding specified
in this section.
   (2) For the 2011-12 to the 2014-15 fiscal years, inclusive, the
supplemental categorical block grant shall equal one hundred
twenty-seven dollars ($127) per unit of charter school average daily
attendance as determined at the current year second principal
apportionment for charter schools commencing operations during or
after the 2008-09 fiscal year. In lieu of this supplemental grant, a
school district shall provide new conversion charter schools that
commenced operations within the district during or after the 2008-09
fiscal year, one hundred twenty-seven dollars ($127) per unit of
charter school average daily attendance as determined at the current
year second principal apportionment. This paragraph does not preclude
a school district and a new conversion charter school from
negotiating an alternative funding rate. Absent agreement from both
parties on an alternative rate, the school district shall be
obligated to provide funding at the one hundred twenty-seven dollars
($127) per average daily attendance rate. 
   SEC. 214.    Section 42800 of the  
Education Code   is amended to read: 
   42800.  (a) The governing board of  any   a
 school district may, with the consent of the county
superintendent of schools, establish a revolving cash fund for the
use of the chief accounting officer of the  school 
district, by adopting a resolution setting forth the necessity for
the revolving cash fund, the officer for whom and the purposes for
which the revolving cash fund shall be available, and the amount of
the fund. The purposes for which the revolving cash fund shall be
available shall include the purposes specified in Section 45167.
Three certified copies of the resolution shall be transmitted to the
county superintendent of schools. If he approves the establishment of
the fund, the county superintendent shall endorse his consent on the
resolution and return one copy to the governing body of the 
school  district, and transmit one copy to the county auditor.
   (b) The maximum amount allowed for revolving cash funds
established pursuant to subdivision (a) shall be the lesser of:
   (1) Two percent of the district's estimated expenditures for the
current fiscal year, or
   (2) A dollar amount limit of seventy-five thousand dollars
($75,000) for any elementary school or high school district and one
hundred fifty thousand dollars ($150,000) for any unified school
district for fiscal year 1990-91. The dollar amount limit for each
 school  district shall thereafter be increased annually by
the percentage increase in the  school  district's 
revenue limit established by Section 42238   local
control funding formula allocation established pursuant to Section
42238.02, as implemented pursuant to Section 42238.03  .
   SEC. 215.    Chapter 11.3 (commencing with Section
42920) of Part 24 of Division 3 of Title 2 of the  
Education Code   is repealed. 
   SEC. 216.    Chapter 11.5 (commencing with Section
42950) of Part 24 of Division 3 of Title 2 of the  
Education Code   is repealed. 
   SEC. 217.    Chapter 12 (commencing with Section
43001.5) of Part 24 of Division 3 of Title 2 of the  
Education Code   is repealed. 
   SEC. 218.    Section 44279.2 of the   
 Education Code   is amended to read: 
   44279.2.  (a) The Superintendent and the commission shall jointly
administer the California Beginning Teacher Support and Assessment
System pursuant to this chapter. In administering this section, the
Superintendent and the commission shall provide or contract for the
provision of all of the following:
   (1) Establishing requirements for reviewing and approving teacher
induction programs.
   (2) Developing and administering a system for ensuring teacher
induction program quality and effectiveness. For purposes of this
section, "program effectiveness" means producing excellent program
outcomes in relation to the purposes defined in subdivision (b) of
Section 44279.1. For purposes of this section, "program quality"
means excellence with respect to program factors, including, but not
limited to, all of the following:
   (A) Program goals.
   (B) Design resources.
   (C) Management, evaluation, and improvement of the program.
   (D) School context and working conditions.
   (E) Support and assessment services to each beginning teacher.
   (3) Developing purposes and functions for reviewing and approving
supplemental grants and standards for program clusters and program
consultants, as defined pursuant to Section 44279.7.
   (4) Improving and refining the formative assessment system.
   (5) Improving and refining professional development materials and
strategies for all personnel involved in implementing induction
programs.
   (6) Conducting and tracking research related to beginning teacher
induction.
   (7) Periodically evaluating the validity of the California
Standards for the Teaching Profession adopted by the commission and
the Standards of Quality and Effectiveness for Beginning Teacher
Support and Assessment Program adopted by the commission and making
changes to those documents, as necessary.
   (b) As part of the California Beginning Teacher Support and
Assessment System, the commission and the Superintendent shall
establish requirements for local teacher induction programs.
   (c) A school district or consortium of school districts may
 apply to the Superintendent for funding to 
establish a local teacher induction program pursuant to this section
 . From amounts appropriated for purposes of this section,
the Superintendent shall allocate three thousand dollars ($3,000) for
each beginning teacher participating in the program. That amount
shall be adjusted each fiscal year by the inflation factor set forth
in Section 42238.1. To be eligible to receive funding, a school
district or consortium of school districts   that 
shall, at a minimum, meet all of the following requirements:
   (1) Develop, implement, and evaluate teacher induction programs
that meet the Quality and Effectiveness for Beginning Teacher
Induction Program Standards adopted by the commission.
   (2) Support beginning teachers in meeting the competencies
described in the California Standards for the Teaching Profession
adopted by the commission.
   (3) Meet criteria for the cost-effective delivery of program
services. 
   (4) From amounts received from local, state, or resources
available for purposes of teacher induction programs, contribute not
less than two thousand dollars ($2,000) for the costs of each
beginning teacher served in the induction program.  

   (d) Teachers who have received their preliminary credential in a
district intern program pursuant to Article 7.5 (commencing with
Section 44325) or an intern program pursuant to Article 3 (commencing
with Section 44450) of Chapter 3 and who are participating in an
induction program pursuant to this section are not eligible for
funding pursuant to Article 11 (commencing with Section 44380) of
Chapter 2. 
   SEC. 219.    Section 44279.25 of the   
 Education Code   is amended to read:  
   44279.25.  (a) By December 1, 2007, the Superintendent and the
commission shall report to the Legislature and the Governor on the
current state of the Beginning Teacher Support and Assessment System.
The report shall review the articulation of teacher preparation
programs and teacher induction programs to eliminate duplicative
requirements and, at a minimum, do all of the following:
   (1) Recommend revisions to laws, regulations, or policies to
eliminate duplicative requirements between teacher preparation and
teacher induction programs, with particular attention paid to
eliminating duplication between induction requirements and
requirements for completion of state-approved alternative
certification programs.
   (2) Recommend revisions to the system to ensure that teacher
credential candidates achieve teaching competence and programs use
best practices to transition candidates from teacher preparation
programs to induction programs.
   (3) Recommend ways to ensure that beginning teachers receive
direct assistance from experienced teachers who are familiar with the
grade span, subject matter, and teaching and classroom management
techniques appropriate to the teaching assignment of each beginning
teacher.
   (b) By July 1, 2008, the Superintendent and the commission shall
review and revise, as necessary, the Standards of Quality and
Effectiveness for Professional Teacher Induction Programs of March
2002 to ensure that these standards address the application of
knowledge and skills previously acquired in a preliminary credential
program and to remove any requirements or activities that require
candidates to duplicate the acquisition of knowledge through
coursework. This review shall include, but need not be limited to,
all of the following:
   (1) A review of formative assessment systems in use to ensure that
the systems are appropriately flexible and may be adapted to reflect
progress of individual candidates.
   (2) A review of professional development provided to induction
participants to ensure that it is not duplicative of coursework
completed during teacher preparation.
   (3) A review of new teacher support to ensure that the focus is on
application and enhancement of skills and knowledge acquired in a
preliminary credential program.
   (4) Recommendations for program monitoring with respect to this
subdivision.
   (c) 
    44279.25.    (a)  In consultation with the
Superintendent, the commission shall revise the formative assessment
system for beginning teachers, as necessary to ensure that related
tasks and activities are aligned to the revised standards 
adopted pursuant to subdivision (c)  . 
   (d) 
    (b)  The Superintendent and the commission shall
identify effective practices and techniques and provide for the
dissemination of these to local induction program providers. 

   (e) 
    (c)  Immediately following the adoption  by the
commission  of revised standards  pursuant to
subdivision (b),  the commission shall review induction
programs to determine whether local teacher induction programs are
meeting standards of quality and effectiveness  adopted
pursuant to subdivision (b)  and to assure greater program
quality and consistency. The commission shall schedule regular
reviews following the initial review of programs pursuant to this
subdivision. 
   (f) 
    (d)  The Superintendent and the commission shall ensure
that teacher credential candidates are notified of the opportunity to
choose an early completion option pursuant to Section 44468.

   (g) It is the intent of the Legislature that funds appropriated in
Provision 44 of Item 6110-001-0890 of Section 2.00 of the Budget Act
of 2006 (Chapter 47 of the Statutes of 2006) be made available for
reviews and preparation of the reports required pursuant to
subdivisions (a) and (b), and that the implementation of
recommendations proceed immediately following the adoption of those
reviews and reports. 
   SEC. 220.    Section 44279.7 of the   
 Education Code   is amended to read:  
   44279.7.  (a) The superintendent and the commission shall award
supplemental grants on a competitive basis to Beginning Teacher
Support and Assessment System teacher induction programs established
pursuant to Section 44279.2 that are identified as having expertise
according to criteria established by the superintendent and the
commission. The supplemental grants received pursuant to this section
shall be expended to assist clusters of teacher induction programs
operated by school districts or consortiums of school districts.
   (b) 
    44279.7.    (a)  The  superintendent
  Superintendent  and the commission shall
designate each school district and consortium of school districts
participating in the Beginning Teacher Support and Assessment System
established pursuant to Section 44279.2 as belonging to a cluster
according to the criteria established pursuant to this subdivision.
For  the  purposes of this section "cluster" means a
cluster of school districts or consortium of school districts
established pursuant this section. The  superintendent
  Superintendent  and the commission shall
establish criteria for the formation of school districts or
consortiums of school district teacher induction program clusters
based upon, but not necessarily be limited to, all of the following:
   (1) Geographic proximity.
   (2) Program size.
   (3) The number of beginning teachers served.
   (4) The similarity of teacher characteristics and pupil
populations in each school district. 
   (c) 
    (b)  School districts and consortiums of school
districts  awarded supplemental grants pursuant to this
section shall   may  identify a teacher induction
program consultant to assist the school district or consortiums of
school districts forming a cluster. The  superintendent
  Superintendent  and the commission shall identify
the purpose and functions of each consultant. Those purposes and
functions shall include, but not necessarily be limited to, all the
following:
   (1) Assisting in designing, implementing, refining, and evaluating
their teacher induction programs.
   (2) Assisting in building the capacity to provide professional
development for all personnel involved in the implementation of
teacher induction programs, including, but not limited to, beginning
teachers, support providers, and administrators.
   (3) Disseminating information on teacher induction programs to all
interested participants within the cluster and collaborating with
other consultants statewide and with state administrative agency
staff to ensure ongoing program improvement. 
   (d) The superintendent and the commission shall ensure that each
grant awarded pursuant to this section supports the salary and
benefits and other related costs based on the prorated amount of time
dedicated to this function for a consultant to assist each cluster.

   SEC. 221.    Section 44320 of the  
Education Code   is amended to read: 
   44320.  (a) Professional preparation, including student teaching,
shall be made available in the upper division course offerings at all
California public institutions of higher learning, except the
California Maritime Academy and the Hastings College of the Law. No
more than nine semester units, or the equivalent, of professional
education courses may be designated as prerequisites for purposes of
admission to student teaching, except that, to satisfy the English
language requirement as set forth in paragraph (3) of subdivision (b)
of Section 44259, candidates may be required to take 12 semester
units, or the equivalent, as professional education prerequisites to
student teaching.
   (b) The commission shall encourage postsecondary institutions that
offer programs of professional preparation to collaborate with
school districts, county offices of education, and professional
organizations in the design and delivery of local programs to
function as part of the California beginning teacher support and
assessment program pursuant to Section 44279.2. If local educational
agencies and institutions of higher education voluntarily agree to
implement the program, the following provisions shall apply to each
collaborative effort:
   (1) Postsecondary institutions and local education agencies shall
coordinate and articulate the program of professional preparation and
the beginning teacher support and assessment program, so the two
programs provide continuity in the preparation, support, and
assessment of beginning teachers.
   (2) At the discretion of a postsecondary institution that
participates in a collaborative effort, the program of professional
preparation may be submitted to the commission for approval as a
program of preparation, support, and assessment that is at least two
years long.
   (3) In each program of preparation, support, and assessment, the
postsecondary institution shall make it possible for each candidate
to complete all requirements for a valid teaching credential in the
equivalent of one year of full-time study.
   (4) A postsecondary institution that participates in a
collaborative effort may, at its discretion, determine that
successful completion of the support and assessment components of an
articulated program of professional preparation, support, and
assessment fulfills some or all of the requirements of subdivision
(c) of Section 44259, and may accordingly recommend applicants for
the professional teaching credential. The standards and criteria for
making these determinations and recommendations shall be included in
the institution's proposal for a program.
   (5) A local educational agency that collaborates, at its own
discretion, with a postsecondary education institution in the design
and delivery of an articulated program of professional preparation,
support, and assessment that meets the standards and criteria
pursuant to subdivision (c) of Section 44279.2,  and that
receives funds pursuant to the annual Budget Act,  may
contract with the postsecondary institution to pay the institution's
costs of designing and delivering the support and assessment
components of the program.
   (c) Local educational agencies that are approved by the commission
to provide programs of personalized preparation to candidates for
designated subjects teaching credentials are encouraged to
participate in the design and delivery of local programs under the
California beginning teacher support and assessment program pursuant
to Article 4.5 (commencing with Section 44279.2), in a manner
consistent with subdivision (b).
   (d)  Prior to   Before  admission to
either student teaching under any professional preparation program
approved by the commission, or participation in a field experience
program as described in Section 44324, a candidate for a credential
shall obtain a certificate of clearance from the commission which
shall be issued when the commission has verified the candidate's
personal identification and health status. The fee for the
certificate of clearance shall not exceed one-half of the regular fee
for a credential and shall be deducted from the fee for the initial
credential applied for by the certificate holder.
   SEC. 222.    Section 44328 of the  
Education Code   is amended to read: 
   44328.  (a) Unless the commission determines that substantial
evidence exists that a person is unqualified to teach, upon the
completion of successful service as a district intern pursuant to
subdivision (b) of Section 44325, and upon the recommendation of the
school district governing board, the commission shall award
preliminary credentials to district interns in the same manner as
applicants recommended for credentials by institutions that operate
approved programs of professional preparation.
   (b) Notwithstanding paragraphs (1) and (2) of subdivision (a) of
Section 44225, paragraphs (3), (4), (5), and (6) of subdivision (b)
of Section 44259, paragraphs (1), (2), (3), and (4) of subdivision
(c) of Section 44259, and Sections 44261, 44265, and 44335, upon
recommendation by the governing board, district interns shall be
issued preliminary credentials, upon the completion of successful
service as a teacher pursuant to subdivision (b) of Section 44325,
unless the governing board recommends, and the commission finds
substantial evidence, that the person is not qualified to teach. A
school district may require a district intern who is pursuing a clear
credential to complete an approved induction program if funds are
available or approved coursework in accordance with paragraph (5) of
subdivision (c) of Section 44259.  Pursuant to Article 11
(commencing with Section 44380), teachers participating in an
induction program pursuant to Article 4.5 (commencing with Section
44279.1) are no longer eligible for funding under the district intern
program. 
   (c) Notwithstanding Section 44261, the preliminary credential
awarded to any district intern holding a district intern credential
to teach bilingual education classes shall be a basic teaching
credential with a bilingual-crosscultural language and academic
development emphasis. Notwithstanding Section 44265, the preliminary
credential awarded to any district intern who holds a district intern
credential to teach special education pupils shall be a special
education specialist instruction credential that authorizes the
holder to teach special education pupils.
   (d) It is the intent of the Legislature that institutions of
higher education that operate approved programs of professional
preparation work cooperatively with school districts that offer
district intern programs for a special education specialist
credential to apply the regular education coursework and fieldwork
from the special education district intern program toward earning a
multiple or single subject teaching credential through the
institution.
   SEC. 223.    Article 11 (commencing with Section
44380) of Chapter 2 of Part 25 of Division   3 of Title 2 of
the   Education Code   is repealed. 
   SEC. 224.    Article 12 (commencing with Section
44390) of Chapter 2 of Part 25 of Division   3 of Title 2 of
the   Education Code   is repealed. 
   SEC. 225.    Article 13 (commencing with Section
44395) of Chapter 2 of Part 25 of Division   3 of Title 2 of
the   Education Code   is repealed. 
   SEC. 226.    Article 4.5 (commencing with Section
44500) of Chapter 3 of Part 25 of   Division 3 of Title 2 of
the   Education Code   is repealed. 
   SEC. 227.    Article 5 (commencing with Section
44520) of Chapter 3 of Part 25 of Division 3   of Title 2 of
the   Education Code   is repealed. 
   SEC. 228.    Article 6 (commencing with Section
44560) of Chapter 3 of Part 25 of Division 3   of Title 2 of
the  Education Code   is repealed. 
                                                SEC. 229. 
 Article 7 (commencing with Section 44570) of Chapter 3 of Part
25 of Division 3   of Title 2 of the   Education
Code   is repealed. 
   SEC. 230.    Article 8 (commencing with Section
44580) of Chapter 3 of Part 25 of Division 3   of Title 2 of
the   Education Code   is repealed. 
   SEC. 231.    Article 10 (commencing with Section
44630) of Chapter 3 of Part 25 of Division   3 of Title 2 of
the   Education Code   is repealed. 
   SEC. 232.    Article 10.5 (commencing with Section
44645) of Chapter 3 of Part 25 of   Division 3 of Title 2 of
the   Education Code   is repealed. 
   SEC. 233.    Article 10.6 (commencing with Section
44650) of Chapter 3 of Part 25 of  Division 3 of Title 2 of
the   Education Code   is repealed. 
  SEC. 234.    Article 3 (commencing with Section 44681)
of Chapter 3.1 of Part 25 of   Division 3 of Title 2 of the
  Education Code   is repealed. 
   SEC. 235.    Chapter 3.3 (commencing with Section
44700) of Part 25 of Division 3 of Title 2 of the  
Education Code   is repealed. 
   SEC. 236.    Chapter 3.33 (commencing with Section
44720) of Part 25 of Division 3 of Title 2 of the  
Education Code   is repealed. 
   SEC. 237.    Chapter 3.34 (commencing with Section
44730) of Part 25 of Division 3 of Title 2 of the  
Education Code   is repealed. 
   SEC. 238.    Chapter 3.36 (commencing with Section
44735) of Part 25 of Division 3 of Title 2 of the  
Education Code   is repealed. 
   SEC. 239.    Chapter 3.45 (commencing with Section
44755) of Part 25 of Division 3 of Title 2 of the  
Education Code   is repealed. 
   SEC. 240.    Chapter 3.5 (commencing with Section
44760) of Part 25 of Division 3 of Title 2 of the  
Education Code   is repealed. 
   SEC. 241.    Section 44944 of the  
Education Code   is amended to read: 
   44944.  (a) (1) In a dismissal or suspension proceeding initiated
pursuant to Section 44934, if a hearing is requested by the employee,
the hearing shall be commenced within 60 days from the date of the
employee's demand for a hearing. The hearing shall be initiated,
conducted, and a decision made in accordance with Chapter 5
(commencing with Section 11500) of Part 1 of Division 3 of Title 2 of
the Government Code. However, the hearing date shall be established
after consultation with the employee and the governing board  of
the school district  , or their representatives, and the
Commission on Professional Competence shall have all of the power
granted to an agency in that chapter, except that the right of
discovery of the parties shall not be limited to those matters set
forth in Section 11507.6 of the Government Code but shall include the
rights and duties of any party in a civil action brought in a
superior court under Title 4 (commencing with Section 2016.010) of
Part 4 of the Code of Civil Procedure. Notwithstanding any provision
to the contrary, and except for the taking of oral depositions, no
discovery shall occur later than 30 calendar days after the employee
is served with a copy of the accusation pursuant to Section 11505 of
the Government Code. In all cases, discovery shall be completed
 prior to   before  seven calendar days
before the date upon which the hearing commences. If  any
  a  continuance is granted pursuant to Section
11524 of the Government Code, the time limitation for commencement of
the hearing as provided in this subdivision shall be extended for a
period of time equal to the continuance. However, the extension shall
not include that period of time attributable to an unlawful refusal
by either party to allow the discovery provided for in this section.
   (2) If the right of discovery granted under paragraph (1) is
denied by either the employee or the governing board  of the
school district  , all of the remedies in Chapter 7 (commencing
with Section 2023.010) of Title 4 of Part 4 of the Code of Civil
Procedure shall be available to the party seeking discovery and the
court of proper jurisdiction, to entertain his or her motion, shall
be the superior court of the county in which the hearing will be
held.
   (3) The time periods in this section and of Chapter 5 (commencing
with Section 11500) of Part 1 of Division 3 of Title 2 of the
Government Code and of Title 4 (commencing with Section 2016.010) of
Part 4 of the Code of Civil Procedure shall not be applied so as to
deny discovery in a hearing conducted pursuant to this section.
   (4) The superior court of the county in which the hearing will be
held may, upon motion of the party seeking discovery, suspend the
hearing so as to comply with the requirement of the preceding
paragraph.
   (5) No witness shall be permitted to testify at the hearing except
upon oath or affirmation. No testimony shall be given or evidence
introduced relating to matters that occurred more than four years
 prior to   before  the date of the filing
of the notice. Evidence of records regularly kept by the governing
board  of the school district  concerning the employee may
be introduced, but no decision relating to the dismissal or
suspension of  any   an  employee shall be
made based on charges or evidence of  any   a
 nature relating to matters occurring more than four years
 prior to  before  the filing of the
notice.
   (b) (1) The hearing provided for in this section shall be
conducted by a Commission on Professional Competence. One member of
the commission shall be selected by the employee, one member shall be
selected by the governing board  of the school district  ,
and one member shall be an administrative law judge of the Office of
Administrative Hearings who shall be chairperson and a voting member
of the commission and shall be responsible for assuring that the
legal rights of the parties are protected at the hearing. If either
the governing board  of the school district  or the employee
for any reason fails to select a commission member at least seven
calendar days  prior to   before  the date
of the hearing, the failure shall constitute a waiver of the right to
selection, and the county board of education or its specific
designee shall immediately make the selection. If the county board of
education is also the governing board of the school district or has
by statute been granted the powers of a governing board  of a
school district  , the selection shall be made by the
Superintendent, who shall be reimbursed by the school district for
all costs incident to the selection.
   (2) The member selected by the governing board  of the school
district  and the member selected by the employee shall not be
related to the employee and shall not be employees of the  school
 district initiating the dismissal or suspension and shall hold
a currently valid credential and have at least five years' experience
within the past 10 years in the discipline of the employee.
   (c) (1) The decision of the Commission on Professional Competence
shall be made by a majority vote, and the commission shall prepare a
written decision containing findings of fact, determinations of
issues, and a disposition that shall be, solely, one of the
following:
   (A) That the employee should be dismissed.
   (B) That the employee should be suspended for a specific period of
time without pay.
   (C) That the employee should not be dismissed or suspended.
   (2) The decision of the Commission on Professional Competence that
the employee should not be dismissed or suspended shall not be based
on nonsubstantive procedural errors committed by the school district
or governing board  of the school district  unless the
errors are prejudicial errors.
   (3) The commission shall not have the power to dispose of the
charge of dismissal by imposing probation or other alternative
sanctions. The imposition of suspension pursuant to subparagraph (B)
of paragraph (1) shall be available only in a suspension proceeding
authorized pursuant to subdivision (b) of Section 44932 or Section
44933.
   (4) The decision of the Commission on Professional Competence
shall be deemed to be the final decision of the governing board 
of the school district  .
   (5) The board may adopt from time to time rules and procedures not
inconsistent with this section as may be necessary to effectuate
this section.
   (6) The governing board  of the school district  and the
employee shall have the right to be represented by counsel.
   (d) (1) If the member selected by the governing board  of the
school district  or the member selected by the employee is
employed by  any   a  school district in
this state, the member shall, during any service on a Commission on
Professional Competence, continue to receive salary, fringe benefits,
accumulated sick leave, and other leaves and benefits from the 
school  district in which the member is employed, but shall
receive no additional compensation or honorariums for service on the
commission.
   (2) If service on a Commission on Professional Competence occurs
during summer recess or vacation periods, the member shall receive
compensation proportionate to that received during the current or
immediately preceding contract period from the member's employing
 school  district, whichever amount is greater.
   (e) (1) If the Commission on Professional Competence determines
that the employee should be dismissed or suspended, the governing
board  of the school district  and the employee shall share
equally the expenses of the hearing, including the cost of the
administrative law judge.  The state shall pay any costs
incurred under paragraph (2) of subdivision (d), the reasonable
expenses, as determined by the administrative law judge, of the
member selected by the governing board and the member selected by the
employee, including, but not limited to, payments or obligations
incurred for travel, meals, and lodging, and the cost of the
substitute or substitutes, if any, for the member selected by the
governing board and the member selected by the employee. The
Controller shall pay all claims submitted pursuant to this paragraph
from the General Fund, and may prescribe reasonable rules,
regulations, and forms for the submission of the claims. 
The employee and the governing board  of the school district
 shall pay their own attorney's fees.
   (2) If the Commission on Professional Competence determines that
the employee should not be dismissed or suspended, the governing
board  of the school district  shall pay the expenses of the
hearing, including the cost of the administrative law judge, any
costs incurred under paragraph (2) of subdivision (d), the reasonable
expenses, as determined by the administrative law judge, of the
member selected by the governing board  of the school district
 and the member selected by the employee, including, but not
limited to, payments or obligations incurred for travel, meals, and
lodging, the cost of the substitute or substitutes, if any, for the
member selected by the governing board  of the school district
 and the member selected by the employee, and reasonable
attorney's fees incurred by the employee.
   (3) As used in this section, "reasonable expenses" shall not be
deemed "compensation" within the meaning of subdivision (d).
   (4) If either the governing board  of the school district
 or the employee petitions a court of competent jurisdiction for
review of the decision of the commission, the payment of expenses to
members of the commission required by this subdivision shall not be
stayed. 
   (5) (A) If the decision of the commission is finally reversed or
vacated by a court of competent jurisdiction, either the state,
having paid the commission members' expenses, shall be entitled to
reimbursement from the governing board for those expenses, or the
governing board, having paid the expenses, shall be entitled to
reimbursement from the state.  
   (B) Additionally, 
    (5)     If the decision of the commission
is finally reversed or vacated by a court of competent jurisdiction,
 either the employee, having paid a portion of the expenses of
the hearing, including the cost of the administrative law judge,
shall be entitled to reimbursement from the governing board  of
the school district  for the expenses, or the governing board
 of the school district  , having paid its portion and the
employee's portion of the expenses of the hearing, including the cost
of the administrative law judge, shall be entitled to reimbursement
from the employee for that portion of the expenses.
   (f) The hearing provided for in this section shall be conducted in
a place selected by agreement among the members of the commission.
In the absence of agreement, the place shall be selected by the
administrative law judge.
   SEC. 242.    Section 44955.5 of the   
 Education Code   is amended to read: 
   44955.5.  (a) During the time period between five days after the
enactment of the Budget Act and August 15 of the fiscal year to which
that Budget Act applies, if the governing board of a school district
determines that its total  revenue limit  
local control funding formula allocation pursuant to Section
42238.02, as implemented by Section 42238.03,  per unit of
average daily attendance for the fiscal year of that Budget Act has
not increased by at least 2 percent, and if in the opinion of the
governing board  of the school district  it is therefore
necessary to decrease the number of permanent employees in the 
school  district, the governing board  of the school
district  may terminate the services of  any 
permanent or probationary certificated employees of the  school
 district, including employees holding a position that requires
an administrative or supervisory credential. The termination shall be
pursuant to Sections 44951 and 44955 but, notwithstanding anything
to the contrary in Sections 44951 and 44955, in accordance with a
schedule of notice and hearing adopted by the governing board  of
the school district  .
   (b) This section is inoperative from July 1, 2002, to July 1,
2003, inclusive, and from July 1, 2011, to July 1, 2012, inclusive.
   SEC. 243.    Section 45037 of the  
Education Code   is repealed.  
   45037.  (a) Except as provided in Section 45036, for the fiscal
year 2001-02 and for any fiscal year thereafter in which a person
renders service as a teacher in kindergarten or any of grades 1 to
12, inclusive, who does not have a valid certification document, the
school district or county office of education in which the person is
employed shall be assessed a penalty that shall be in lieu of any
loss of funding that would otherwise result under Chapter 6.10
(commencing with Section 52120) of Part 28. The penalty shall be
calculated as provided in subdivision (b) and withheld from state
funding otherwise due to the district or county office of education.
   (1) Notwithstanding Section 46300, the attendance of the
noncertificated person's pupils during the period of service shall be
included in the computation of average daily attendance.
   (2) The noncertificated person's period of service shall not be
excluded from the determination of eligibility for incentive funding
for a longer instructional day or year, or both, pursuant to Article
8 (commencing with Section 46200) of Chapter 2 of Part 26.
   (b) (1) For each person who rendered service in the employment of
the district or county office of education as a teacher in
kindergarten or any of grades 1 to 12, inclusive, during the fiscal
year, add the total number of schooldays on which the person rendered
any amount of the service.
   (2) For each person who rendered service in the employment of the
district or county office of education as a teacher in kindergarten
or any of grades 1 to 12, inclusive, during the fiscal year, for a
period of service during which the person did not have a valid
certification document, add the number of schooldays on which the
person rendered any amount of the service without a valid
certification document.
   (3) Divide the number determined in paragraph (2) by the number
determined in paragraph (1) and carry the result to four decimal
places.
   (4) Multiply a school district's revenue limit entitlement for the
fiscal year, calculated pursuant to Section 42238, or it's funding
amount calculated pursuant to Article 4 (commencing with Section
42280) of Chapter 7 of Part 24, as applicable, or a county office of
education's funding for the fiscal year, for the program in which the
noncertificated person rendered service by the number determined in
paragraph (3).
   (c) Beginning in 2002-03, if a county office of education releases
a warrant in favor of a person for whom a period of school district
service is included in the calculation set forth in paragraph (2) of
subdivision (b), and the warrant is either compensation for
employment as a teacher or for employment in some other capacity if
the county office of education has direct knowledge or is in
possession of information giving rise to a reasonable inference that
the person is rendering service as a teacher, the county office shall
be assessed a penalty. The penalty assessed to a county office for
any fiscal year in which one or more district teachers did not have a
valid certification document shall be equal to the lesser of three
amounts as follows:
   (1) Fifty percent of all penalties assessed for that fiscal year
to all school districts in the county office's jurisdiction pursuant
to subdivision (b).
   (2) One-half percent of the total expenditures for that fiscal
year from unrestricted resources, as defined in the California School
Accounting Manual, in the county office's county school service
fund, when two or fewer districts in the county office's jurisdiction
are subject to penalties pursuant to subdivision (b).
   (3) One percent of the total expenditures for that fiscal year
from unrestricted resources, as defined in the California School
Accounting Manual, in the county office's county school service fund,
when three or more districts in the county office's jurisdiction are
subject to penalties pursuant to subdivision (b).
   (d) Except as provided in Section 41344.1, nothing in this section
may be waived in whole or in part. 
   SEC. 244.    Article 8.5 (commencing with Section
45370) of Chapter 5 of Part 25 of   Division 3 of Title 2 of
the   Education Code   is repealed. 
   SEC. 245.    Section 46010.2 of the  
 Education Code   is repealed.  
   46010.2.  (a) For the purpose of determining "changes in
enrollment" pursuant to subdivision (b) of Section 8 of Article XVI
of the California Constitution, as required by subdivision (d) of
Section 41204, the total days of attendance by pupils in schools and
classes maintained by a school district shall, in the 1997-98 fiscal
year, be separately determined both as if subdivision (b) of Section
46010, as it read in the 1997-98 fiscal year, did and did not apply.
The days of attendance figure resulting from the application of
subdivision (b) of Section 46010 shall be used in calculating average
daily attendance for comparison with average daily attendance in the
1996-97 fiscal year. The days of attendance figure determined
without applying subdivision (b) of Section 46010 shall be used in
calculating average daily attendance for comparison with average
daily attendance in the 1998-99 fiscal year.
   (b) For the purpose of determining "changes in enrollment" for the
2008-09 fiscal year pursuant to subdivision (b) of Section 8 of
Article XVI of the California Constitution, as required by
subdivision (d) of Section 41204, the total days of attendance by
pupils in schools and classes maintained by a school district, in the
2007-08 fiscal year, shall be separately determined both as if the
California School Age Families Education Program (Cal-SAFE), as set
forth in Article 7.1 (commencing with Section 54740) of Chapter 9 of
Part 29, as it read on January 1, 2008, did and did not apply. The
days of attendance figure resulting from the application of the
Cal-SAFE program shall be used in calculating average daily
attendance for comparison with average daily attendance in the
2006-07 fiscal year. The days of attendance figure determined without
applying the Cal-SAFE program shall be used in calculating average
daily attendance for comparison with average daily attendance in the
2008-09 fiscal year. 
   SEC. 246.    Section 46013 of the  
Education Code   is repealed.  
   46013.  (a) If there is an increase in actual student attendance
of any school maintained by a school district to which Section
46013.7 has been made applicable, then an increase in the revenue
limit of a school district shall be calculated as follows:
   (1) The Superintendent of Public Instruction shall prescribe the
manner in which actual student attendance is calculated.
   (2) Divide the actual student attendance in the 1979-80 fiscal
year by total enrollment in the 1979-80 fiscal year.
   (3) Divide the actual student attendance in the current fiscal
year by total enrollment in the current fiscal year.
   (4) Subtract the quotient calculated pursuant to paragraph (2)
from the quotient calculated pursuant to paragraph (3).
   (5) Divide the difference calculated pursuant to paragraph (4) by
0.02.
   (6) If the quotient calculated pursuant to paragraph (5) is equal
to or greater than one, then divide that quotient by 100.
   (7) If the quotient calculated pursuant to paragraph (5) is less
than one, then the district shall not be affected by the provisions
of this section.
   (8) Multiply the quotient calculated pursuant to paragraph (6) by
the revenue limit per unit of average daily attendance in the current
fiscal year, and multiply that product by the total enrollment of
the school which generated the increased actual student attendance.
This is the amount by which revenue limit shall be increased.
   (b) The revenue limit increase calculated pursuant to subdivision
(a) shall be allocated as follows:
   (1) If the school receives funds pursuant to either Chapter 3.1
(commencing with Section 44670) of Part 25 or Chapter 6 (commencing
with Section 52000) of Part 28, then one-half of the increase shall
be added to such funds; the other half of the increase shall be added
to the general fund of the district.
   (2) If the school does not receive funds pursuant to either
Chapter 3.1 (commencing with Section 44670) of Part 25 or Chapter 6
(commencing with Section 52000) of Part 28, then one-half of the
increase shall be used to initiate a program pursuant to Chapter 6
(commencing with Section 52000) of Part 28 at the school; the other
half of the increase shall be added to the general fund of the
district. If a program is not initiated pursuant to Chapter 6
(commencing with Section 52000) of Part 28 within one year, then
those funds shall be deposited in the general fund of the district
and the apportionment of funds to the district from Section A of the
State School Fund for the then current fiscal year shall be reduced
by the same amount. 
   SEC. 247.    Section 46013.7 of the   
 Education Code   is repealed.  
   46013.7.  The Superintendent of Public Instruction may authorize
30 schools in 28 school districts to continue to use the attendance
accounting and reporting procedures prescribed by Section 46013 for
the 1985-86 school year through the 1993-94 school year, and shall
not require these districts to keep parallel attendance accounting
and reporting procedures as required under existing laws otherwise
applicable. Subsequent to the 1982-83 fiscal year, no school district
shall be eligible to receive a revenue limit increase pursuant to
Section 46013. 
   SEC. 248.    Section 46140 of the  
Education Code   is amended to read: 
   46140.   No   A  pupil in a high school,
other than a pupil enrolled in  a regional occupational
center or program,   an  evening high school,
continuation high school, or continuation education class, shall 
not  be credited with more than one day of attendance in any
calendar day and nothing in this article shall be construed to the
contrary.
  SEC. 249.    Section 46140.5 of the   
 Education Code   is repealed.  
   46140.5.  Any school district which was credited with attendance
of pupils pursuant to Section 46140 under a vocational education
program occupationally organized and conducted under federal approval
in 1976-77, other than a regional occupational program or regional
occupational center, may request the county superintendent of schools
to increase the district base revenue limit for fiscal year 1977-78
and fiscal years thereafter by the amount of revenue received on
account of such vocational education attendance in 1976-77. The
county superintendent, upon verification of such amounts,
                                shall adjust the district's base
revenue limit.
   As a clarification of the intent of the law, a district, which had
not submitted attendance documents of pupils pursuant to Section
46140 under a vocational education program occupationally organized
and conducted under federal approval in 1976-77, other than a
regional occupational program or regional occupational center, at the
time the attendance reports were originally due, shall not have the
right at a later date to submit amended attendance documents to have
credited this attendance. 
   SEC. 250.    Section 46141 of the  
Education Code   is amended to read: 
   46141.  The minimum schoolday in a high school is 240 minutes,
except in an evening high school, an early college high school, a
middle college high school,  a regional occupational center,
an opportunity school and in opportunity classes,  a
continuation high school, in continuation education classes, in late
afternoon or Saturday occupationally organized vocational training
programs conducted under a federally approved plan for vocational
education, and for students enrolled in a work experience education
program approved under the provisions of Article 7 (commencing with
Section 51760) of Chapter 5 of Part 28.
   SEC. 251.    Section 46144 of the  
Education Code   is repealed.  
   46144.  The minimum day in a special day or a Saturday vocational
training program and for a pupil enrolled in a work experience
education program approved under Article 7 (commencing with Section
51760) of Chapter 5 of Part 28, except for a pupil enrolled in a
continuation school or class pursuant to Section 48402, is four
periods totaling at least 180 minutes in duration, except that for a
pupil in an approved work experience program who attends a school,
other than a continuation school or class, in which the regularly
scheduled period is greater than 60 minutes in length, the minimum
day is one or more periods totaling at least 180 minutes in duration.

   SEC. 252.    Section 46145 of the  
Education Code   is amended to read: 
   46145.  Commencing with the first semester or quarter that begins
after January 1, 1984, pupils in grade 12 shall be enrolled in at
least five courses each semester or the equivalent number of courses
per quarter. If  any   a  pupil in grade 12
is required by medical prescription to attend school for less than
five courses during the semester or the equivalent number of courses
during the quarter, the average daily attendance allowed for that
pupil's attendance shall bear the same proportion to one day of
attendance as the number of courses in which the pupil is enrolled
bears to five or the equivalent number for the quarter system.
   However, this requirement shall not apply to pupils enrolled in
 regional occupational programs, regional occupational
centers,  courses at accredited postsecondary educational
institutions, independent study, special education programs where the
pupil's individualized education program establishes a different
number of courses, continuation education classes, work experience
education programs approved under the provisions of Article 7
(commencing with Section 51760) of Chapter 5 of Part 28, or any other
course of study authorized by the governing board  of the school
district  which is equivalent to the approved high school
course of study.
   SEC. 253.    Article 7 (commencing with Section
46190) of Chapter 2 of Part 26 of Division 4   of Title 2 of
the   Education Code   is repealed. 
   SEC. 254.    Section 46200 of the  
Education Code   is amended to read:  
   46200.  (a) In the 1984-85 fiscal year, for each school district
that certifies to the Superintendent of Public Instruction that it
offers 180 days or more of instruction per school year, the
Superintendent of Public Instruction shall apportion thirty-five
dollars ($35) per unit of average daily attendance, exclusive of
adult average daily attendance, the average daily attendance of
pupils while participating in regional occupation centers or
programs, and average daily attendance for pupils attending summer
school. A multitrack year-round school shall be deemed to be in
compliance with the 180-day requirement if it certifies to the
Superintendent of Public Instruction that it is a multitrack
year-round school and maintains its school for a minimum of 163
schooldays. Each school district that received an apportionment
pursuant to this subdivision in the 1984-85 fiscal year shall add
thirty-five dollars ($35) to the district's base revenue limit per
unit of average daily attendance for the 1985-86 fiscal year.
   (b) For any school district that received an apportionment
pursuant to subdivision (a) and that offered less than 180 days, or
offered less than the number of days required in subdivision (a) for
multitrack year-round schools, of instruction in the 1985-86 fiscal
year to the 2000-01 fiscal year, inclusive, and that does not provide
the minimum number of instructional minutes specified in subdivision
(a) of Section 46201 for that fiscal year, the Superintendent of
Public Instruction shall reduce the base revenue limit per unit of
average daily attendance for that fiscal year or years by an amount
attributable to the increase received pursuant to subdivision (a), as
adjusted in fiscal years subsequent to the 1984-85 fiscal year.


   (c) 
    46200.   For  any   a  school
district that received an apportionment pursuant to subdivision (a)
 of this section, as it read on January 1, 2013,  and that
offers less than 180 days of instruction or, in multitrack year-round
schools, fewer than the number of days required in subdivision (a)
 of this section, as it read on January 1, 2013,  for
multitrack year-round schools, in the  2001-02  
2013-14  fiscal year, or any fiscal year thereafter, the
Superintendent  of Public Instruction  shall
withhold from the  district's revenue limit apportionment
  school district's local control funding formula grant
apportionment pursuant to Section 42238.0  2, as implemented
by Section 42238.03,  for the average daily attendance of each
affected grade level the sum of 0.0056 multiplied by that
apportionment, for each day less than 180, or, in multitrack
year-round schools, for each day less than the number of days
required in subdivision (a) for year-round schools that the 
school  district offered. 
   (d) For any school district that received an apportionment
pursuant to subdivision (a) and that offered less than 180 days of
instruction as required in subdivision (a) in the 1985-86 fiscal
year, to either the end of the final year of the teacher bargaining
unit contract in force in that district on January 1, 2002,
inclusive, or, if no teacher bargaining unit contract was in force in
that district on January 1, 2002, to the end of the 2001-02 fiscal
year, inclusive, and that provided the minimum number of
instructional minutes in subdivision (a) of Section 46201 during all
of the period applicable to the district pursuant to this
subdivision, subdivision (c) shall not apply until the first fiscal
year following the end of the applicable period of years. 
   SEC. 255.    Section 46201 of the  
Education Code   is amended to read:  
   46201.  (a) In each of the 1984-85, 1985-86, and 1986-87 fiscal
years, for each school district that certifies to the Superintendent
of Public Instruction that it offers at least the amount of
instructional time specified in this subdivision at a grade level or
levels, the Superintendent of Public Instruction shall determine an
amount equal to twenty dollars ($20) per unit of current year second
principal apportionment regular average daily attendance in
kindergarten and grades 1 to 8, inclusive, and forty dollars ($40)
per unit of current year second principal apportionment regular
average daily attendance in grades 9 to 12, inclusive. This section
shall not apply to adult average daily attendance, the average daily
attendance for pupils attending summer schools, alternative schools,
regional occupational centers and programs, continuation high
schools, or opportunity schools, and the attendance of pupils while
participating in community college or independent study programs.
   (1) In the 1984-85 fiscal year, for kindergarten and each of
grades 1 to 12, inclusive, the sum of subparagraphs (A) and (B):
   (A) The number of instructional minutes offered at that grade
level in the 1982-83 fiscal year.
   (B) One-third of the difference between the number of minutes
specified for that grade level in paragraph (3) and the number of
instructional minutes offered at that grade level in the 1982-83
fiscal year.
   (2) In the 1985-86 fiscal year, for kindergarten and each of
grades 1 to 12, inclusive, the sum of subparagraphs (A) and (B):
   (A) The number of instructional minutes offered at that grade
level in the 1982-83 fiscal year.
   (B) Two-thirds of the difference between the number of minutes
specified for that grade level in paragraph (3) and the number of
instructional minutes offered at that grade level in the 1982-83
fiscal year.
   (3) In the 1986-87 fiscal year:
   (A) Thirty-six thousand minutes in kindergarten.
   (B) Fifty thousand four hundred minutes in grades 1 to 3,
inclusive.
   (C) Fifty-four thousand minutes in grades 4 to 8, inclusive.
   (D) Sixty-four thousand eight hundred minutes in grades 9 to 12,
inclusive.
   (4) In any fiscal year, each school district that receives an
apportionment pursuant to subdivision (a) for average daily
attendance in grades 9 to 12, inclusive, shall offer a program of
instruction that allows each student to receive at least 24 course
years of instruction, or the equivalent, during grades 9 to 12,
inclusive.
   (5) For any schoolsite at which programs are operated in more than
one of the grade levels enumerated in subparagraph (B) or (C) of
paragraph (3), the school district may calculate a weighted average
of minutes for those grade levels at that schoolsite for purposes of
making the certification authorized by this subdivision.
   (b) (1) If any of the amounts of instructional time specified in
paragraph (3) of subdivision (a) is a lesser number of minutes for
that grade level than actually provided by the district in the same
grade in the 1982-83 fiscal year, the 1982-83 fiscal year number of
minutes for that grade level, adjusted to comply with Section 46111,
shall instead be the requirement for the purposes of paragraphs (1),
(2), and (3) of subdivision (a). Commencing with the 1990-91 fiscal
year, and each fiscal year through the 1995-96 fiscal year, any
school district subject to this subdivision that does not maintain
the number of instructional minutes for a particular grade level that
the school district maintained for the 1982-83 fiscal year, adjusted
to comply with Section 46111, shall not be subject to paragraphs (1)
to (3), inclusive, of subdivision (c) if that school district
maintains at least the minimum number of instructional minutes for
each grade level set forth in paragraph (3) of subdivision (a) in the
1990-91 fiscal year and each fiscal year through the 1994-95 fiscal
year or the 1995-96 fiscal year for districts whose instructional
minutes were adjusted to comply with Section 46111, and thereafter
returns to the number of instructional minutes maintained for each
grade level in the 1982-83 fiscal year.
   (2) The Legislature finds and declares that the school districts
to which paragraph (1) is applicable have not offered any less
instructional time than is required of all other school districts and
therefore should not be forced to pay any penalty.
   (c) (1) For any school district that receives an apportionment
pursuant to subdivision (a) in the 1984-85 fiscal year and that
reduces the amount of instructional time offered below the minimum
amounts specified in paragraph (1) of subdivision (a) in the 1985-86
fiscal year or any fiscal year thereafter, up to and including the
2000-01 fiscal year, the Superintendent of Public Instruction shall
reduce the base revenue limit per unit of average daily attendance
for the fiscal year in which the reduction occurs by an amount
attributable to the increase in the 1985-86 fiscal year base revenue
limit per unit of average daily attendance pursuant to paragraph (4)
of subdivision (b) of Section 42238, as adjusted in the 1985-86
fiscal year and fiscal years thereafter.
   (2) For each school district that receives an apportionment
pursuant to subdivision (a) in the 1985-86 fiscal year and that
reduces the amount of instructional time offered below the minimum
amounts specified in paragraph (2) of subdivision (a) in the 1986-87
fiscal year or any fiscal year thereafter, up to and including the
2000-01 fiscal year, the Superintendent of Public Instruction shall
reduce the base revenue limit per unit of average daily attendance
for the fiscal year in which the reduction occurs by an amount
attributable to the increase in the 1986-87 fiscal year base revenue
limit per unit of average daily attendance pursuant to paragraph (4)
of subdivision (b) of Section 42238, as adjusted in the 1986-87
fiscal year and fiscal years thereafter.
   (3) For each school district that receives an apportionment
pursuant to subdivision (a) in the 1986-87 fiscal year and that
reduces the amount of instructional time offered below the minimum
amounts specified in paragraph (3) of subdivision (a) in the 1987-88
fiscal year or any fiscal year thereafter, up to and including the
2000-01 fiscal year, the Superintendent of Public Instruction shall
reduce the base revenue limit per unit of average daily attendance
for the fiscal year in which the reduction occurs by an amount
attributable to the increase in the 1987-88 fiscal year base revenue
limit per unit of average daily attendance pursuant to paragraph (4)
of subdivision (b) of Section 42238, as adjusted in the 1987-88
fiscal year and fiscal years thereafter.
   (d) 
    46201.    (a)  For each school district that
 receives   received  an apportionment
pursuant to subdivision (a)  in the 1986-87 fiscal year
  of this section, as it read on January 1, 2013, 
and that reduces the amount of instructional time offered below the
minimum amounts specified in  either paragraph (3) of
subdivision (a) or paragraph (1) of  subdivision (b),
 whichever is applicable, in the 2001-02 fiscal year, or any
fiscal year thereafter,  the Superintendent  of
Public Instruction  shall withhold from the 
district's revenue limit apportionment   school district'
s local control funding formula grant apportionment pursuant to
Section 42238.02, as implemented by Section 42238.03,  for the
average daily attendance of each affected grade level, the sum of
that apportionment multiplied by the percentage of the minimum
offered minutes at that grade level that the  school 
district failed to offer. 
   (b) Commencing with the 2013-14 fiscal year:  
   (1) Thirty-six thousand minutes in kindergarten.  
   (2) Fifty thousand four hundred minutes in grades 1 to 3,
inclusive.  
   (3) Fifty-four thousand minutes in grades 4 to 8, inclusive. 

   (4) Sixty-four thousand eight hundred minutes in grades 9 to 12,
inclusive. 
   SEC. 256.    Section 46201.1 of the   
 Education Code   is repealed.  
   46201.1.  (a) Notwithstanding paragraph (4) of subdivision (b) of
Section 42238, for each school district that received an
apportionment pursuant to subdivision (a) of Section 46201 in the
1985-86 fiscal year, the county superintendent shall, for the 1986-87
fiscal year, add to the district's base revenue limit per unit of
average daily attendance the amount received in the 1985-86 fiscal
year, pursuant to subdivision (a) of Section 46201 divided by the sum
of paragraphs (1) and (2).
   (1) The district's average daily attendance for the 1985-86 fiscal
year computed pursuant to Section 42238.5.
   (2) The units of average daily attendance in the 1985-86 fiscal
year resulting from pupils attending schools funded pursuant to
Article 4 (commencing with Section 42280).
   (b) Notwithstanding paragraph (4) of subdivision (b) of Section
42238, for each school district that received an apportionment
pursuant to subdivision (a) of Section 46201 in the 1984-85 fiscal
year, the county superintendent shall, for calculations or
recalculations of the district's 1985-86 base revenue limit per unit
of average daily attendance, add to the district's base revenue limit
per unit of average daily attendance the amount received in the
1984-85 fiscal year pursuant to subdivision (a) of Section 46201
divided by the sum of paragraphs (1) and (2).
   (1) The district's average daily attendance for the 1984-85 fiscal
year computed pursuant to Section 42238.5.
   (2) The units of average daily attendance in the 1984-85 fiscal
year resulting from pupils attending schools funded pursuant to
Article 4 (commencing with Section 42280).
   (c) Notwithstanding paragraph (3) of subdivision (b) of Section
42238, for each school district that received an apportionment
pursuant to subdivision (a) of Section 46200 in the 1984-85 fiscal
year, the county superintendent shall, for calculations or
recalculations of the district's 1985-86 base revenue limit per unit
of average daily attendance, add to the district's base revenue limit
per unit of average daily attendance the amount received in the
1984-85 fiscal year divided by the sum of paragraphs (1) and (2).
   (1) The district's average daily attendance for the 1984-85 fiscal
year computed pursuant to Section 42238.5.
   (2) The units of average daily attendance for the 1984-85 fiscal
year resulting from pupils attending schools funded pursuant to
Article 4 (commencing with Section 42280).
   (d) Notwithstanding subdivision (b) of Section 46200, for any
school district that received an apportionment pursuant to
subdivision (a) of Section 46200 that offers less than 180 days of
instruction in the 1986-87 fiscal year, the Superintendent of Public
Instruction shall reduce the base revenue limit per unit of average
daily attendance for the 1986-87 fiscal year by an amount
attributable to the increase received pursuant to subdivision (a) of
Section 46200, as adjusted. 
   SEC. 257.    Section 46201.2 of the   
 Education Code   is amended to read: 
   46201.2.  (a) Commencing with the 2009-10 school year and
continuing through the  2014-15   2012-13 
school year, a school district, county office of education, or
charter school may reduce the equivalent of up to five days of
instruction or the equivalent number of instructional minutes without
incurring the penalties set forth in Sections 41420, 46200, 46200.5,
46201, 46201.5, 46202, and 47612.5  , as those sections read on
January 1, 2013 . A school district, county office of education,
or charter school shall receive revenue limit funding based on the
adjustments prescribed pursuant to Section 42238.146  , as it
read on January 1, 2013,  whether or not it reduces the number
of schooldays or instructional minutes. 
   (b) For the 2013-14 and 2014-15 school years, a school district,
county office of education, or charter school may reduce the
equivalent of up to five days of instruction or the equivalent number
of instructional minutes without incurring the penalties set forth
in Sections 41420, 46200, 46200.5, 46201, 46201.5, 46202, and
47612.5.  
   (b) 
    (c)  This section shall become inoperative on July 1,
2015, and, as of January 1, 2016, is repealed, unless a later enacted
statute, that becomes operative on or before January 1, 2016,
deletes or extends the dates on which it becomes inoperative and is
repealed.
   SEC. 258.    Section 46201.3 of the   
 Education Code   is repealed.  
   46201.3.  (a) For the 2011-12 school year, the minimum number of
instructional days and minutes school districts, county offices of
education, and charter schools are required to offer as set forth in
Sections 41420, 46200, 46200.5, 46201, 46201.5, 46202, and 47612.5
shall be reduced by up to seven days.
   (b) Implementation of the reduction in the number of instructional
days offered by a school district, county office of education, and
charter school that is subject to collective bargaining pursuant to
Chapter 10.7 (commencing with Section 3540) of Division 4 of Title 1
of the Government Code shall be achieved through the bargaining
process, provided that the agreement has been completed and
reductions implemented no later than June 30, 2012.
   (c) The revenue limit for each school district, county office of
education, and charter school determined pursuant to Article 3
(commencing with Section 2550) of Chapter 12 of Part 2 of Division 1
of Title 1, Article 2 (commencing with Section 42238) of Chapter 7 of
Part 24 of Division 3, and Article 2 (commencing with Section 47633)
of Chapter 6 of Part 26.8 of Division 4 shall be reduced by the
product of 4 percent and the fraction determined pursuant to
paragraph (2).
   (1) Subtract the revenue forecast determined pursuant to
subdivision (a) of Section 3.94 of the Budget Act of 2011 from
eighty-six billion four hundred fifty-two million five hundred
thousand dollars ($86,452,500,000).
   (2) Divide the lesser of two billion dollars ($2,000,000,000) or
the amount calculated in paragraph (1) by two billion dollars
($2,000,000,000).
   (d) This section does not affect the number of instructional days
or instructional minutes that may be reduced pursuant to Section
46201.2.
   (e) The revenue limit reductions authorized by this section, when
combined with the reductions applied under subdivision (c) of Section
3.94 of the Budget Act of 2011, may not be applied so as to reduce
school funding below the requirements of Section 8 of Article XVI of
the California Constitution based on the applicable revenues
estimated by the Department of Finance pursuant to Section 3.94 of
the Budget Act of 2011.
   (f) This section shall be operative on February 1, 2012, only for
the 2011-12 school year and only if subdivision (c) of Section 3.94
of the Budget Act of 2011 is operative. 
   SEC. 259.    Section 46201.6 of the   
 Education Code   is repealed.  
   46201.6.  Any school district that elected not to participate in
either or both of the longer-day and longer-year incentive funding
programs set forth in this article may commence participation in, and
begin receiving funding for, either or both of those programs in the
1998-99 or 1999-2000 fiscal years, on the same basis as if it had
participated in the program or programs since July 1, 1984, if the
district meets the requirement of paragraph (3) of subdivision (a) of
Section 46201 in the fiscal year in which it commences participation
and each fiscal year thereafter. 
   SEC. 260.    Section 46202 of the  
Education Code   is amended to read:  
   46202.  (a) Except as otherwise provided in this section, in
fiscal year 2000-01 and prior, if the governing board of a school
district offers less instructional time than the amount of
instructional time fixed for the 1982-83 fiscal year, the
Superintendent of Public Instruction shall, in that fiscal year,
reduce that district's apportionment by the average percentage
increase in the base revenue limit for districts of similar type and
size multiplied by the district's units of average daily attendance.
   (b) Except as otherwise provided in this section, in fiscal year
2001-02 and any fiscal year thereafter, if 
    46202.    If  a school district that does not
participate in the program set forth in  this article
  Sections 46200 to 46206, inclusive, as those sections
read on January 1, 2013,  offers less instructional time  in
a fiscal year  than the amount of instructional time fixed for
the 1982-83 fiscal year, the Superintendent  of Public
Instruction  shall withhold for that fiscal year, from the
 district's
revenue limit apportionment   school district's local
control funding formula grant apportionment pursuant to Section
42238.03, as implemented by Section 42238.03,  for the average
daily attendance of each affected grade level, the amount of that
apportionment multiplied by the percentage of instructional minutes
fixed in the 1982-83 school year, at that grade level, that the 
school  district failed to offer. 
   (c) The Glendora Unified School District shall reinstate the sixth
period, which shall be equivalent to at least 50 minutes of
instruction, effective the start of the second semester of the
1983-84 fiscal year. 
   SEC. 261.    Section 46203 of the  
Education Code   is repealed.  
   46203.  Amounts apportioned to school districts pursuant to this
article shall supplement, and not supplant, apportionments received
pursuant to any other provision of law. 
   SEC. 262.    Section 46204 of the  
Education Code   is repealed.  
   46204.  The Superintendent of Public Instruction shall reduce the
time periods specified in Sections 46200 and 46201 to the extent that
the superintendent determines that insufficient funds are available
to fund the per pupil amounts prescribed by those sections. 

   SEC. 263.    Section 46207 is added to the  
Education Code   , to read:  
   46207.  (a) Notwithstanding Sections 46200 to 46205, inclusive,
upon a determination that a school district equals or exceeds its
local control funding formula target computed pursuant to Section
42238.02 as determined by the calculation of a zero difference
pursuant to paragraph (1) of subdivision (b) of Section 42238.03,
each school district, as a condition of apportionment pursuant to
Section 42238.02, as implemented pursuant to Section 42238.03, shall,
for each fiscal year, offer, at a minimum, the following number of
minutes of instruction:
   (1) To pupils in kindergarten, 36,000 minutes.
   (2) To pupils in grades 1 to 3, inclusive, 50,400 minutes.
   (3) To pupils in grades 4 to 8, inclusive, 54,000 minutes.
   (4) To pupils in grades 9 to 12, inclusive, 64,800 minutes.
   (b) For a school district that has met its local control funding
formula target that reduces the amount of instructional time offered
below the minimum amounts specified in subdivision (a), the
Superintendent shall withhold from the school district's local
control funding formula apportionment for the average daily
attendance of each affected grade level, the sum of that
apportionment multiplied by the percentage of the minimum offered
minutes at that grade level that the school district failed to offer.

   (c) Notwithstanding subdivision (a), for the 2013-14 and 2014-15
school years, a school district that equals or exceeds its computed
local control funding formula target may reduce the equivalent of up
to five days of instruction or the equivalent number of instructional
minutes without incurring the penalties set forth in this section.

   SEC. 264.    Section 46208 is added to the  
Education Code   , to read:  
   46208.  (a) Notwithstanding Sections 46200 to 46205, inclusive,
upon a determination that a school district equals or exceeds its
local control funding formula target computed pursuant to Section
42238.02 as determined by the calculation of a zero difference
pursuant to paragraph (1) of subdivision (b) of Section 42238.03,
each school district, as a condition of apportionment pursuant to
Section 42238.02, as implemented pursuant to Section 42238.03, shall
offer 180 days or more of instruction per school year. A school
operating a multitrack year-round school shall be deemed to be in
compliance with the 180-day requirement if it certifies to the
Superintendent that it is a multitrack year-round school and
maintains its school for a minimum of 163 schooldays.
   (b) Notwithstanding subdivision (a), for the 2013-14 and 2014-15
school years, a school district that equals or exceeds its computed
local control funding formula target may reduce the equivalent of up
to five days of instruction or the equivalent number of instructional
minutes without incurring the penalties set forth in this section.

   SEC. 265.    Section 46300 of the  
Education Code   is amended to read: 
   46300.  (a) In computing average daily attendance of a school
district or county office of education, there shall be included the
attendance of pupils while engaged in educational activities required
of those pupils and under the immediate supervision and control of
an employee of the  school  district or county office 
of education  who possessed a valid certification document,
registered as required by law.
   (b) (1) For purposes of a work experience education program in a
secondary school that meets the standards of the California State
Plan for Career Technical Education, "immediate supervision," in the
context of off-campus work training stations, means pupil
participation in on-the-job training as outlined under a training
agreement, coordinated by the school district under a state-approved
plan, wherein the employer and certificated school personnel share
the responsibility for on-the-job supervision. 
   (2) The pupil-teacher ratio in a work experience program shall not
exceed 125 pupils per full-time equivalent certificated teacher
coordinator. This ratio may be waived by the state board pursuant to
Article 3 (commencing with Section 33050) of Chapter 1 of Part 20 of
Division 2 under criteria developed by the state board. 

   (3) 
    (2)  A pupil enrolled in a work experience program shall
not be credited with more than one day of attendance per calendar
day, and shall be a full-time pupil enrolled in regular classes that
meet the requirements of Section 46141 or 46144.
   (c) (1) For purposes of the rehabilitative schools, classes, or
programs described in Section 48917 that require immediate
supervision, "immediate supervision" means that the person to whom
the pupil is required to report for training, counseling, tutoring,
or other prescribed activity shares the responsibility for the
supervision of the pupils in the rehabilitative activities with
certificated personnel of the  school  district.
   (2) A pupil enrolled in a rehabilitative school, class, or program
shall not be credited with more than one day of attendance per
calendar day. 
   (d) (1) For purposes of computing the average daily attendance of
pupils engaged in the educational activities required of high school
pupils who are also enrolled in a regional occupational center or
regional occupational program, the school district shall receive
proportional average daily attendance credit for those educational
activities that are less than the minimum schoolday, pursuant to
regulations adopted by the state board; however, none of that
attendance shall be counted for purposes of computing attendance
pursuant to Section 52324.  
   (2) A school district shall not receive proportional average daily
attendance credit pursuant to this subdivision for a pupil in
attendance for less than 145 minutes each day.  
   (3) The divisor for computing proportional average daily
attendance pursuant to this subdivision is 240, except that, in the
case of a pupil excused from physical education classes pursuant to
Section 52316, the divisor is 180.  
   (4) Notwithstanding any other provision of law, travel time of
pupils to attend a regional occupational center or regional
occupational program shall not be used in any manner in the
computation of average daily attendance.  
   (e) 
    (d)  (1) In computing the average daily attendance of a
school district, there shall also be included the attendance of
pupils participating in independent study conducted pursuant to
Article 5.5 (commencing with Section 51745) of Chapter 5 of Part 28
for five or more consecutive schooldays.
   (2) A pupil participating in independent study shall not be
credited with more than one day of attendance per calendar day.

   (f) For purposes of cooperative career technical education
programs and community classrooms described in Section 52372.1,
"immediate supervision" means pupil participation in paid and unpaid
on-the-job experiences, as outlined under a training agreement and
individualized training plans wherein the supervisor of the training
site and certificated school personnel share the responsibility for
the supervision of on-the-job experiences.  
   (g) 
    (e)  (1) In computing the average daily attendance of a
school district, there shall be included the attendance of pupils in
kindergarten after they have completed one school year in
kindergarten or pupils in a transitional kindergarten program after
they have completed one year in that program if one of the following
conditions is met:
   (A) The school district has on file for each of those pupils an
agreement made pursuant to Section 48011, approved in form and
content by the department and signed by the pupil's parent or
guardian, that the pupil may continue in kindergarten for not more
than one additional school year.
   (B) The pupils participated in a transitional kindergarten program
pursuant to subdivision (c) of Section 48000.
   (2) A school district may not include for apportionment purposes
the attendance of any pupil for more than two years in kindergarten
or for more than two years in a combination of transitional
kindergarten and kindergarten.
   SEC. 266.    Section 46300.1 of the   
 Education Code   is amended to read: 
   46300.1.  Commencing July 1, 1993,  no   a
 school district  may   shall not 
receive school district apportionments pursuant to Section 
42238   42238.02  for independent study by pupils
21 years of age or older or by pupils 19 years of age or older who
have not been continuously enrolled in kindergarten or any of grades
1 to 12, inclusive, since their 18th birthday.
   SEC. 267.    Section 46300.7 of the   
 Education Code   is amended to read: 
   46300.7.  Notwithstanding any other  provision of
 law,  no   a  school district or
county office of education shall  not  receive
apportionments for  any   a  pupil in
independent study unless that entity receives written permission from
the parent or guardian of the pupil  prior to  
before  the commencement of independent study by that pupil
 consistent with the requirements for independent study pursuant
to Section 51747  .  The written permission shall
specify the actual dates of participation, the methods of study and
evaluation, and the resources to be made available for the
independent study program for the pupil. 
   SEC. 268.    Section 46306 of the  
Education Code   is repealed.  
   46306.  Notwithstanding any other provision of law, the average
daily attendance of pupils enrolled in summer schools shall be
credited to the school district in the fiscal year in which the last
day of the summer school falls. 
   SEC. 269.    Article 5 (commencing with Section
46351) of Chapter 3 of Part 26 of Division 4   of Title 2 of
the   Education Code   is repealed. 
   SEC. 270.    Section 46392 of the  
Education Code   is amended to read: 
   46392.  (a) Whenever the average daily attendance of  any
  a  school district  ,   or
 county office of education,  or regional occupational
center or program  during  any   a
 fiscal year has been materially decreased during  any
  a  fiscal year because of any of the following,
the fact shall be established to the satisfaction of the
Superintendent  of Public Instruction  by affidavits
of the members of the governing board of the school district or
county office of education, and the county superintendent of schools:

   (1) Fire.
   (2) Flood.
   (3) Impassable roads.
   (4) An epidemic.
   (5) An earthquake.
   (6) The imminence of a major safety hazard as determined by the
local law enforcement agency.
   (7) A strike involving transportation services to pupils provided
by a nonschool entity.
   (8) An order provided for in Section 41422.
   (b) In the event a state of emergency is declared by the Governor
in a county,  any   a  decrease in average
daily attendance in the county below the approximate total average
daily attendance that would have been credited to a school district
 ,   or  county office of education
 , or regional occupational center or program  had
the state of emergency not occurred shall be deemed material. The
 superintendent   Superintendent  shall
determine the length of the period during which average daily
attendance has been reduced by the state of emergency. This period
which is determined by the  superintendent  
Superintendent  shall not extend into the next fiscal year
following the declaration of the state of emergency by the Governor,
except upon a showing by a school district  , 
or  county office of education,  or regional
occupational center or program,  to the satisfaction of the
 superintendent,   Superintendent,  that
extending the period into the next fiscal year is essential to
alleviate continued reductions in average daily attendance
attributable to the state of emergency.
   (c) The average daily attendance of the  school  district
 ,   or  county office of education
 , or regional occupational center or program  for
the fiscal year shall be estimated by the  superintendent
  Superintendent  in a manner that credits to the
school district  ,   or  county office of
education  , or regional occupational center or program
 for determining the apportionments to be made to the 
school  district  ,   or  county
office of education  , or regional occupational center or
program  from the State School Fund approximately the total
average daily attendance that would have been credited to the school
district  ,   or  county office of
education  , or regional occupational center or program
 had the emergency not occurred or had the order not been
issued.
   (d) This section applies to any average daily attendance that
occurs during any part of a school year.
   SEC. 271.    Section 46602 of the  
Education Code   is amended to read: 
   46602.  If the county board of education determines that the pupil
should be permitted to attend in the  school  district in
which he or she desires to attend, the pupil shall be admitted to
school in the  school  district without delay and the
attendance may be counted by the  school  district of
attendance for  revenue limit and   local 
 control funding formula allocations pursuant to Section
42238.02, as implemented by Section 42238.03,  state
apportionment purposes.
   Written notice of the decision by the county board of education
shall be delivered to the pupil and the parent or guardian, or person
having custody of him or her, and to the governing boards of the
 school  districts.
   SEC. 272.    Section 46603 of the  
Education Code   is amended to read: 
   46603.  For a period not to exceed two school months, the
governing board of a school district may provisionally admit to the
schools of the  school  district a pupil who resides in
another  school  district, pending a decision of the two
 governing boards  of the school districts  , or by
the county board of education upon appeal, regarding the
interdistrict attendance.
   Regardless of whether the decision on interdistrict attendance is
allowed, the provisional attendance may be counted by the  school
 district of attendance for  revenue limit 
 local control funding formula allocations pursuant to Section
42238.02, as implemented by Section 42238.03,  and state
apportionment purposes.
   SEC. 273.    Section 46606 of the  
Education Code   is repealed.  
   46606.  (a) A regional occupational program or regional
occupational center maintained by a school district, county
superintendent of schools, or a regional occupational program or
regional occupational center maintained by two or more school
districts pursuant to a joint powers or cooperative agreement, may
admit pupils who reside outside the attendance area of the regional
occupational program or regional occupational center.
   (b) The average daily attendance for attendance of pupils who
reside outside of the regional occupational center or program
attendance area and are enrolled in a regional occupational center or
program pursuant to Section 52317 shall be credited to the regional
occupational center or program that incurs the training costs for
purposes of determining state apportionments and the revenue limits.
   (c) For purposes of computing the revenue limits for pupils who
enroll in a regional occupational center or program outside their
district of residence, the regional occupational center or program
shall claim its own revenue limit.
   (d) The regional occupational center or program is not eligible
for state reimbursement for home-to-school transportation allowances
for pupils who are enrolled in the regional occupational center or
program pursuant to this section. 
   SEC. 274.    Section 46607 of the  
Education Code   is amended to read: 
   46607.  (a) Except as provided in subdivision (b)  or (c)
 , the average daily attendance for attendance of pupils
from another  school  district shall be credited to the 
school  district of attendance for purposes of determining
state apportionments and the  revenue limit pursuant to
Section 42237 or 42238   local control funding formula
  allocations pursuant to Section 42238.02, as implemented
by Section 42238.03  .
   (b) For  any   a school  district that
would have a reduction of 25 percent or more in its federal grant
pursuant to Public Law 81-874 if the average daily attendance of
pupils residing within the  school  district were credited
to the  school  district of attendance, then the average
daily attendance resulting from an interdistrict attendance agreement
shall be credited to the  school  district of residence and
the  school  district of residence shall pay a tuition to
the  school  district of attendance no later than the next
August 31, after the close of the fiscal year  as follows:
 pursuant to subdivision (c).  
   (1) 
    (c)  For attendance in regular day schools and summer
schools the tuition per unit of average daily attendance, if any,
shall not exceed the actual cost per unit of average daily attendance
for the grade level or program less any income, other than tuition,
received by the  school  district of attendance on account
of such attendance. 
   (2) The district in which the pupil resides shall reduce its total
revenue limit pursuant to Section 42238 by the total excess, if any,
of its revenue limit per unit of average daily attendance multiplied
by the total interdistrict attendance over the total tuition to be
paid to districts of attendance.  
   The district in which the pupil resides may increase its total
revenue limit pursuant to Section 42238 by the total excess, if any,
of the total tuition to be paid to districts of attendance over the
district of residence's revenue limit per unit of average daily
attendance multiplied by the total interdistrict average daily
attendance.  
   (c) For any consortium of school districts operating an adult
education and a regional occupational program serving four or more
school districts, the school districts may agree to claim the unit of
average daily attendance on the basis of the district of residence
and pay such interdistrict tuition to the district of attendance as
agreed to by the participating districts. 
   SEC. 275.    Section 46610 of the  
Education Code   is amended to read:
   46610.  Notwithstanding any other  provision of 
law, the Fallbrook Union High School District shall enter into an
interdistrict attendance agreement with the Capistrano Unified School
District to allow any pupil, at the request of his or her parent or
guardian, to attend schools of the Capistrano Unified School District
when the pupil resides in the San Onofre housing area of the Marine
Corps Base, Camp Joseph H. Pendleton. No more than 150 pupils from
the Fallbrook Union High School District may attend school in the
Capistrano Unified School District pursuant to this interdistrict
attendance agreement.
   The Fallbrook Union High School District shall be credited with
the average daily attendance of these pupils for the purpose of
determining state apportionments and  revenue limits
  local control funding formula allocations pursuant to
Section 42238.02, as implemented by Section 42238.03,  and for
the purpose of receiving federal grants pursuant to Public Law
81-874.
   The Fallbrook Union High School District shall pay tuition to the
Capistrano Unified School District for the attendance of these pupils
only in the amount of the state apportionments paid to the Fallbrook
Union High School District for the attendance of these pupils, plus
an amount computed as follows:
   (a) Divide the amount of funds paid pursuant to Section 3 of
Public Law 81-874 (20 U.S.C. 238) to the Fallbrook Union High School
District in the current fiscal year by the average daily attendance
of the  school  district in the current fiscal year.
   (b) Multiply the amount in subdivision (a) by the average daily
attendance, for the year of attendance for secondary school pupils
attending the schools of the Capistrano Unified School District
pursuant to Section 46610.
   SEC. 276.    Section 47604.33 of the  
Education Code   is amended to r   ead: 
   47604.33.  (a) Each charter school shall annually prepare and
submit the following reports to its chartering authority and the
county superintendent of schools, or only to the county
superintendent of schools if the county board of education is the
chartering authority:
   (1) On or before July 1, a preliminary budget  and a local
control and accountability plan adopted pursuant to Section 52065
 . For a charter school in its first year of operation, the
information submitted pursuant to subdivision (g) of Section 47605
satisfies this requirement.
   (2) On or before December 15, an interim financial report. This
report shall reflect changes through October 31.
   (3) On or before March 15, a second interim financial report. This
report shall reflect changes through January 31.
   (4) On or before September 15, a final unaudited report for the
full prior year.
   (b) The chartering authority shall use any financial information
it obtains from the charter school, including, but not limited to,
the reports required by this section, to assess the fiscal condition
of the charter school pursuant to subdivision (d) of Section
47604.32.
   (c) The cost of performing the duties required by this section
shall be funded with supervisorial oversight fees collected pursuant
to Section 47613.
   SEC. 277.    Section 47610 of the  
Education Code   is amended to read: 
   47610.  A charter school shall comply with this part and all of
the provisions set forth in its charter, but is otherwise exempt from
the laws governing school districts, except all of the following:
   (a) As specified in Section 47611.
   (b) As specified in Section 41365. 
   (c) As specified in Section 52065.  
   (c) 
    (d)  All laws establishing minimum age for public school
attendance. 
   (d) 
    (e)  The California Building Standards Code (Part 2
(commencing with Section 101) of Title 24 of the California Code of
Regulations), as adopted and enforced by the local building
enforcement agency with jurisdiction over the area in which the
charter school is located. 
   (e) 
    (f)  Charter school facilities shall comply with
subdivision (d) by January 1, 2007.
   SEC. 278.    Section 47612.7 of the  
Education Code   is repealed.  
   47612.7.  (a) Notwithstanding Section 47612.5 or any other law,
the Center for Advanced Research and Technology, operating pursuant
to a joint powers agreement between the Clovis Unified School
District and the Fresno Unified School District, is eligible to
receive general-purpose funding, as calculated pursuant to Section
47633, for the 2005-06 and 2006-07 fiscal years for a total average
daily attendance not to exceed the center's average daily attendance
as determined at the second principal apportionment for the 2005-06
and 2006-07 fiscal years, respectively, and for the 2007-08 fiscal
year for a total average daily attendance not to exceed the center's
average daily attendance as determined at the second principal
apportionment for the 2006-07 fiscal year.
   (b) Commencing with the 2008-09 fiscal year, the Center for
Advanced Research and Technology, as described in subdivision (a), is
not eligible to receive funding pursuant to Chapter 6 (commencing
with Section 47630).
   (c) This section shall become inoperative on July 1, 2017, and, as
of January 1, 2018, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2018, deletes or
extends the dates on which it becomes inoperative and is repealed.

   SEC. 279.    Section 47613 of the  
Education Code   is amended to read: 
   47613.  (a) Except as set forth in subdivision (b), a chartering
authority may charge for the actual costs of supervisorial oversight
of                                               a charter school not
to exceed 1 percent of the revenue of the charter school.
   (b) A chartering authority may charge for the actual costs of
supervisorial oversight of a charter school not to exceed 3 percent
of the revenue of the charter school if the charter school is able to
obtain substantially rent free facilities from the chartering
authority.
   (c) A local agency that is given the responsibility for
supervisorial oversight of a charter school, pursuant to paragraph
(1) of subdivision (k) of Section 47605, may charge for the actual
costs of supervisorial oversight, and administrative costs necessary
to secure charter school funding. A charter school that is charged
for costs under this subdivision may not be charged pursuant to
subdivision (a) or (b).
   (d) This section does not prevent the charter school from
separately purchasing administrative or other services from the
chartering authority or any other source.
   (e) For purposes of this section, a chartering authority means a
school district, county board of education, or the state board, that
granted the charter to the charter school.
   (f) For purposes of this section, "revenue of the charter school"
means the  general purpose entitlement and categorical block
grant, as defined in subdivisions (a) and (b) of Section 47632
  local control funding formula allocation pursuant to
Section 42238.02, as implemente   d by Section 42238.03
 .
   (g) (1) The California Research Bureau of the California State
Library shall prepare and submit to the Legislature on or before
January 8, 2009, a report on the key elements and actual costs of
charter school oversight. For purposes of the report, the bureau
shall define fiscal and academic oversight and shall include any
financial relationship between a charter school and its chartering
authority that has the effect of furthering the operations of the
charter school and that may provide opportunities to oversee the
charter school. The report, at a minimum, shall address all of the
following issues:
   (A) The range of annual activities that entities providing
supervisorial oversight of charter schools are expected to perform.
   (B) Staff time spent on reviewing charter petitions measured by
the size of school districts and the number of charter petitions
reviewed.
   (C) Staff time spent on oversight responsibilities measured by the
size of school districts and the number of charter schools.
   (D) Best practices for charter school oversight measured by
efficiency and effectiveness. A cost analysis of those best practices
after being measured by efficiency and effectiveness.
   (E) Comparison of school district costs and revenues attributable
to charter school oversight.
   (F) Administrative services provided to a charter school by a
chartering authority, such as human resources, that may be useful in
the oversight of the charter school and chartering authority revenues
attributable to those services.
   (G) Length of time required to review a single charter petition.
   (H) Recommendations for structuring charter school oversight and
accountability in California, including an assessment of whether or
not the associated costs specified in subdivisions (a) and (b) and
subparagraph (F) are adequate to support appropriate supervisorial
oversight.
   (2) In preparing its report, the California Research Bureau shall
consult with an advisory panel to ensure technical accuracy.
   SEC. 280.    Section 47613.1 of the  
Education Code   is amended to read: 
   47613.1.  The Superintendent  of Public Instruction
 shall make  all   both  of the
following apportionments on behalf of a charter school in a school
district in which all schools have been converted to charter schools
pursuant to Section 47606  , and that elects not to be funded
pursuant to the block grant funding model set forth in Section 47633
in each fiscal year that the charter school so elects  :

   (a) From funds appropriated to Section A of the State School Fund
for apportionment for that fiscal year pursuant to Article 2
(commencing with Section 42238) of Chapter 7 of Part 24, an amount
for each unit of current fiscal year regular average daily attendance
in the charter school that is equal to the current fiscal year base
revenue limit for the school district to which the charter petition
was submitted.  
   (b) 
    (a)  For each pupil enrolled in the charter school who
is entitled to special education services, the state and federal
funds for special education services for that pupil that would have
been apportioned for that pupil to the school district to which the
charter petition was submitted. 
   (c) 
    (b)  Funds for the programs described in  clause
(i) of subparagraph (B) of paragraph (1) of subdivision (a) of
Section 54761, and  Sections 63000 and 64000, to the extent
that any pupil enrolled in the charter school is eligible to
participate.
   SEC. 281.    Section 47613.2 of the  
Education Code   is repealed.  
   47613.2.  Notwithstanding Sections 47613.1 and 47661, for the
2000-01 fiscal year, the revenue limit of an elementary school
district may be determined using either the current or prior year
second principal apportionment average daily attendance, whichever is
greater, if all the schools in the district were converted to
charter schools in the 2000-01 fiscal year and the district continued
to be funded through the base revenue limit method. 
   SEC. 282.    Section 47630 of the  
Education Code   is amended to read: 
   47630.   (a)    It is the intent
of the Legislature that each charter school be provided with
operational funding that is equal to the total funding that would be
available to a similar school district serving a similar pupil
population, except that a charter school may not be funded as a
necessary small school or a necessary small high school  ,
nor receive revenue limit funding that exceeds the statewide average
for a school district of a similar type  . 
   (b) The Legislature finds and declares that the funding method
established by this chapter provides for simple and, at the option of
the charter school, local or direct allocation of funds to charter
schools in a manner that is consistent with state and federal law.

   SEC. 283.    Section 47630.5 of the   
 Education Code   is repealed.  
   47630.5.  (a) This chapter applies to the calculation of
operational funding for charter schools. Except as otherwise provided
in this chapter, this chapter shall apply to all charter schools
without regard to their sponsoring local education agency.
   (b) For the 1999-2000, 2000-01, and 2001-02 fiscal years in the
case of a charter school that was assigned a number by the State
Board of Education prior to June 1, 1999, the use of the charter
school funding method established by this chapter shall be at the
discretion of that charter school. A charter school that elects to
have its funding determined pursuant to the method established by
this chapter shall notify the State Department of Education by June 1
prior to the affected fiscal year. An election to be funded pursuant
to the method established by this chapter is irrevocable.
   (c) Additional legal or fiscal responsibilities on the part of a
county superintendent of schools are not imposed by this chapter,
except as specifically provided in this chapter. 
   SEC. 284.    Section 47631 of the  
Education Code   is amended to read: 
   47631.  (a)  Article 2 (commencing with Section 47633) and
 Article 3 (commencing with Section 47636)  may
  shall  not apply to a charter granted pursuant to
Section 47605.5.
   (b) Notwithstanding subdivision (a), a pupil attending a
county-sponsored charter school who is eligible to attend that school
solely as a result of parental request pursuant to subdivision (b)
of Section 1981 shall be funded pursuant to  this chapter
  the local control funding formula pursuant to Section
42238.02, as implemented by Section 42238.03  .
   SEC. 285.    Section 47632 of the  
Education Code   is amended to read: 
   47632.  For purposes of this chapter, the following terms shall be
defined as follows:
   (a) "General-purpose entitlement" means an amount computed by the
 formula set forth in Section 47633 beginning in the
1999-2000 fiscal year, which is based on the statewide average
amounts of general-purpose funding from those state and local sources
identified in Section 47633 received by school districts of similar
type and serving similar pupil populations   local
control funding formula pursuant to Section 42238.02, as implemented
by Section 42238.03  . 
   (b) "Categorical block grant" means an amount computed by the
formula set forth in Section 47634 beginning in the 1999-2000 fiscal
year, which is based on the statewide average amounts of categorical
aid from those sources identified in Section 47634 received by school
districts of similar type and serving similar pupil populations.
 
   (c) 
    (b)  "General-purpose funding" means those funds that
consist of state aid, local property taxes, and other revenues
applied toward a school district's  revenue limit, pursuant
to Section 42238   local control funding formula,
pursuant to Section 42238.02, as implemented by Section 42238.03
 . 
   (d) 
    (c)  "Categorical aid" means aid that consists of state
or federally funded programs, or both, which are apportioned for
specific purposes set forth in statute or regulation. 
   (e) "Economic impact aid-eligible pupils" means those pupils that
are included in the economic impact aid-eligible pupil count pursuant
to Section 54023. For purposes of applying Section 54023 to charter
schools, "economically disadvantaged pupils" means the pupils
described in paragraph (2) of subdivision (a) of Section 54026.
 
   (f) 
    (d)  "Educationally disadvantaged pupils" means those
pupils who are eligible for subsidized meals pursuant to Section
49552 or are identified as English learners pursuant to subdivision
(a) of Section 306, or both. 
   (g) 
    (e)  "Operational funding" means all funding except
funding for capital outlay. 
   (h) 
    (f)  "School district of a similar type" means a school
district that is serving similar grade levels. 
   (i) 
    (g)  "Similar pupil population" means similar numbers of
pupils by grade level, with a similar proportion of educationally
disadvantaged pupils. 
   (j) 
    (h)  "Sponsoring local educational agency" means the
following:
   (1) If a charter school is granted by a school district, the
sponsoring local educational agency is the school district.
   (2) If a charter is granted by a county office of education after
having been previously denied by a school district, the sponsoring
local educational agency means the school district that initially
denied the charter petition.
   (3) If a charter is granted by the state board after having been
previously denied by a local educational agency, the sponsoring local
educational agency means the local educational agency designated by
the state board pursuant to paragraph (1) of subdivision (k) of
Section 47605 or if a local educational agency is not designated, the
local educational agency that initially denied the charter petition.

   (4) For pupils attending county-sponsored charter schools who are
eligible to attend those schools solely as a result of parental
request pursuant to subdivision (b) of Section 1981, the sponsoring
local educational agency means the pupils' school district of
residence.
   (5) For pupils attending countywide charter schools pursuant to
Section 47605.6 who reside in a basic aid school district, the
sponsoring local educational agency means the school district of
residence of the pupil. For purposes of this paragraph, "basic aid
school district" means a school district that does not receive an
apportionment of state funds  pursuant to   as
described in  subdivision  (h)   (o) 
of Section  42238   42238.02  .
   SEC. 286.    Section 47632.5 of the   
 Education Code   is repealed.  
   47632.5.  A charter school that is established through the
conversion of an existing public school where the charter is granted
by a district other than the district in which the school is located
may not generate or receive revenue limit funding in excess of the
revenue limit of the school district in which the school was located
prior to the conversion to charter status. This limitation shall
apply whether the charter converts to charter status a single
existing public school or multiple existing public schools. 

   SEC. 287.    Section 47633 of the   
 Education Code   is repealed.  
   47633.  The Superintendent shall annually compute a
general-purpose entitlement, funded from a combination of state aid
and local funds, for each charter school as follows:
   (a) The Superintendent shall annually compute the statewide
average amount of general-purpose funding per unit of average daily
attendance received by school districts for each of four grade level
ranges: kindergarten and grades 1, 2, and 3; grades 4, 5, and 6;
grades 7 and 8; and, grades 9 to 12, inclusive. For purposes of
making these computations, both of the following conditions shall
apply:
   (1) Revenue limit funding attributable to pupils in kindergarten
and grades 1 to 5, inclusive, shall equal the statewide average
revenue limit funding per unit of average daily attendance received
by elementary school districts; revenue limit funding attributable to
pupils in grades 6, 7, and 8, shall equal the statewide average
revenue limit funding per unit of average daily attendance received
by unified school districts; and revenue limit funding attributable
to pupils in grades 9 to 12, inclusive, shall equal the statewide
average revenue limit funding per unit of average daily attendance
received by high school districts.
   (2) Revenue limit funding received by school districts shall
exclude the value of any benefit attributable to the presence of
necessary small schools or necessary small high schools within the
school district.
   (b) The Superintendent shall multiply each of the four amounts
computed in subdivision (a) by the charter school's average daily
attendance in the corresponding grade level ranges. The resulting
figure shall be the amount of the charter school's general-purpose
entitlement, which shall be funded through a combination of state aid
and local funds. From funds appropriated for this purpose pursuant
to Section 14002, the superintendent shall apportion to each charter
school this amount, less local funds allocated to the charter school
pursuant to Section 47635 and any amount received pursuant to
subparagraph (B) of paragraph (3) of subdivision (e) of Section 36 of
Article XIII of the California Constitution.
   (c) General-purpose entitlement funding may be used for any public
school purpose determined by the governing body of the charter
school. 
   SEC. 288.    Section   47634.1 of the 
 Education Code   , as amended by Section 23 of Chapter
2 of the 4th Extraordinary Session of the Statutes of 2009, is
repealed.  
   47634.1.  (a) Notwithstanding subdivision (a) of Section 47634, a
categorical block grant for charter schools for the 2005-06 fiscal
year shall be calculated as follows:
   (1) The Superintendent shall divide the total amount of funding
appropriated for the purpose of this block grant in the annual Budget
Act or another statute, less the total amount calculated in
paragraph (2), by the statewide total of charter school average daily
attendance, as determined at the second principal apportionment for
the 2005-06 fiscal year.
   (2) The statewide average amount, as computed by the
Superintendent, of funding per identified educationally disadvantaged
pupil received by school districts in the current fiscal year
pursuant to Article 2 (commencing with Section 54020) of Chapter 1 of
Part 29. This amount shall be multiplied by the number of
educationally disadvantaged pupils enrolled in the charter school.
The resulting amount, if greater than zero, may not be less than the
minimum amount of Economic Impact Aid funding to which a school
district of similar size would be entitled pursuant to Section 54022.
For purposes of this subdivision, a pupil who is eligible for
subsidized meals pursuant to Section 49552 and is identified as an
English learner pursuant to subdivision (a) of Section 306 shall
count as two pupils.
   (3) For each charter school, the Superintendent shall multiply the
amount calculated in paragraph (1) by the school's average daily
attendance as determined at the second principal apportionment for
the 2005-06 fiscal year.
   (4) The Superintendent shall add the amounts computed in
paragraphs (2) and (3). The resulting amount shall be the charter
school categorical block grant that the Superintendent shall
apportion to each charter school from funds appropriated for this
purpose in the annual Budget Act or another statute. The
Superintendent shall allocate an advance payment of this grant as
early as possible, but no later than October 31, 2005, based on prior
year average daily attendance as determined at the second principal
apportionment or, for a charter school in its first year of operation
that commences instruction on or before September 30, 2005, on
estimates of average daily attendance for the current fiscal year
determined pursuant to Section 47652.
   (b) (1) For the 2006-07 fiscal year, the categorical block grant
allocated by the Superintendent for charter schools shall be four
hundred dollars ($400) per unit of charter school average daily
attendance as determined at the second principal apportionment for
the 2006-07 fiscal year. This amount shall be supplemented by the
amount calculated in paragraph (2).
   (2) The statewide average amount, as computed by the
Superintendent, of funding per economic impact aid-eligible pupil
count received by school districts in the current fiscal year,
pursuant to Article 2 (commencing with Section 54020) of Chapter 1 of
Part 29, shall be multiplied by the number of economic impact
aid-eligible pupils enrolled in the charter school. The resulting
amount, if greater than zero, may not be less than the minimum amount
of Economic Impact Aid funding to which a school district of similar
size would be entitled pursuant to Section 54022.
   (c) (1) For the 2007-08 fiscal year, the categorical block grant
allocated by the Superintendent for charter schools shall be five
hundred dollars ($500) per unit of charter school average daily
attendance as determined at the second principal apportionment for
the 2007-08 fiscal year. For each fiscal year thereafter, this per
unit amount shall be adjusted for the cost-of-living adjustment, as
determined pursuant to Section 42238.1, for that fiscal year. This
amount shall be supplemented in the 2007-08 fiscal year and each
fiscal year thereafter by the amount calculated in paragraph (2).
   (2) The statewide average amount, as computed by the
Superintendent, of funding per economic impact aid-eligible pupil
count received by school districts in the current year, pursuant to
Article 2 (commencing with Section 54020) of Chapter 1 of Part 29,
shall be multiplied by the number of economic impact aid-eligible
pupils enrolled in the charter school. The resulting amount, if
greater than zero, may not be less than the minimum amount of
Economic Impact Aid funding to which a school district of similar
size would be entitled pursuant to Section 54022.
   (d) It is the intent of the Legislature to fully fund the
categorical block grant for charter schools as specified in this
section and to appropriate additional funding that may be needed in
order to compensate for unanticipated increases in average daily
attendance and counts of economic impact aid-eligible pupils,
pursuant to Article 2 (commencing with Section 54020) of Chapter 1 of
Part 29, in charter schools. In any fiscal year in which the
department identifies a deficiency in the categorical block grant,
the department shall identify the available balance for programs that
count towards meeting the requirements of Section 8 of Article XVI
of the California Constitution and have unobligated funds for the
year.
   (e) For the purposes of this section, a funding deficiency shall
be strictly limited to unanticipated increases in average daily
attendance and counts of economic impact aid-eligible pupils. In no
event shall additional funding be provided to restore reductions made
to categorical programs pursuant to Control Section 12.42 of an
annual Budget Act.
   (f) On or before July 1, the department shall provide the
Department of Finance with a list of those programs and their
available balances, and the amount of the deficiency, if any, in the
categorical block grant. Within 45 days of the receipt of a
notification of deficiency, the Director of Finance shall verify the
amount of the deficiency in the categorical block grant and direct
the Controller to transfer an amount, equal to the lesser of the
amount available or the amount needed to fully fund the categorical
block grant, from those programs to the categorical block grant. The
Department of Finance shall notify the Joint Legislative Budget
Committee within 30 days of any transfer made pursuant to this
section.
   (g) Commencing October 1, 2007, the Legislative Analyst's Office
shall triennially convene a work group to review, commencing with
appropriations proposed for the 2008-09 fiscal year, the
appropriateness of the funding level provided by the categorical
block grant established in this section.
   (h) Categorical block grant funding may be used for any purpose
determined by the governing body of the charter school.
   (i) This section shall become inoperative on July 1, 2013, and, as
of January 1, 2014, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2014, deletes or
extends the dates on which it becomes inoperative and is repealed.

   SEC. 289.    Section 47634.1 of the  
Education Code   , as added by Section 24 of Chapter 2 of
the 4th Extraordinary Session of the Statutes of 2009, is repealed.
 
   47634.1.  (a) Notwithstanding subdivision (a) of Section 47634, a
categorical block grant for charter schools for the 2005-06 fiscal
year shall be calculated as follows:
   (1) The Superintendent shall divide the total amount of funding
appropriated for the purpose of this block grant in the annual Budget
Act or another statute, less the total amount calculated in
paragraph (2), by the statewide total of charter school average daily
attendance, as determined at the second principal apportionment for
the 2005-06 fiscal year.
   (2) The statewide average amount, as computed by the
Superintendent, of funding per identified educationally disadvantaged
pupil received by school districts in the current fiscal year
pursuant to Article 2 (commencing with Section 54020) of Chapter 1 of
Part 29. This amount shall be multiplied by the number of
educationally disadvantaged pupils enrolled in the charter school.
The resulting amount, if greater than zero, shall not be less than
the minimum amount of Economic Impact Aid funding to which a school
district of similar size would be entitled pursuant to Section 54022.
For purposes of this subdivision, a pupil who is eligible for
subsidized meals pursuant to Section 49552 and is identified as an
English learner pursuant to subdivision (a) of Section 306 shall
count as two pupils.
   (3) For each charter school, the Superintendent shall multiply the
amount calculated in paragraph (1) by the school's average daily
attendance as determined at the second principal apportionment for
the 2005-06 fiscal year.
   (4) The Superintendent shall add the amounts computed in
paragraphs (2) and (3). The resulting amount shall be the charter
school categorical block grant that the Superintendent shall
apportion to each charter school from funds appropriated for this
purpose in the annual Budget Act or another statute. The
Superintendent shall allocate an advance payment of this grant as
early as possible, but no later than October 31, 2005, based on prior
year average daily attendance as determined at the second principal
apportionment or, for a charter school in its first year of
                                       operation that commences
instruction on or before September 30, 2005, on estimates of average
daily attendance for the current fiscal year determined pursuant to
Section 47652.
   (b) (1) For the 2006-07 fiscal year, the categorical block grant
allocated by the Superintendent for charter schools shall be four
hundred dollars ($400) per unit of charter school average daily
attendance as determined at the second principal apportionment for
the 2006-07 fiscal year. This amount shall be supplemented by the
amount calculated in paragraph (2).
   (2) The statewide average amount, as computed by the
Superintendent, of funding per economic impact aid-eligible pupil
count received by school districts in the current fiscal year,
pursuant to Article 2 (commencing with Section 54020) of Chapter 1 of
Part 29, shall be multiplied by the number of economic impact
aid-eligible pupils enrolled in the charter school. The resulting
amount, if greater than zero, shall not be less than the minimum
amount of Economic Impact Aid funding to which a school district of
similar size would be entitled pursuant to Section 54022.
   (c) (1) For the 2007-08 fiscal year, the categorical block grant
allocated by the Superintendent for charter schools shall be five
hundred dollars ($500) per unit of charter school average daily
attendance as determined at the second principal apportionment for
the 2007-08 fiscal year. For each fiscal year thereafter, this per
unit amount shall be adjusted for the cost-of-living adjustment, as
determined pursuant to Section 42238.1, for that fiscal year. This
amount shall be supplemented in the 2007-08 fiscal year and each
fiscal year thereafter by the amount calculated in paragraph (2).
   (2) The statewide average amount, as computed by the
Superintendent, of funding per economic impact aid-eligible pupil
count received by school districts in the current year, pursuant to
Article 2 (commencing with Section 54020) of Chapter 1 of Part 29,
shall be multiplied by the number of economic impact aid-eligible
pupils enrolled in the charter school. The resulting amount, if
greater than zero, shall not be less than the minimum amount of
Economic Impact Aid funding to which a school district of similar
size would be entitled pursuant to Section 54022.
   (d) It is the intent of the Legislature to fully fund the
categorical block grant for charter schools as specified in this
section and to appropriate additional funding that may be needed in
order to compensate for unanticipated increases in average daily
attendance and counts of economic impact aid-eligible pupils,
pursuant to Article 2 (commencing with Section 54020) of Chapter 1 of
Part 29, in charter schools. In any fiscal year in which the
department identifies a deficiency in the categorical block grant,
the department shall identify the available balance for programs that
count towards meeting the requirements of Section 8 of Article XVI
of the California Constitution and have unobligated funds for the
year. On or before July 1, the department shall provide the
Department of Finance with a list of those programs and their
available balances, and the amount of the deficiency, if any, in the
categorical block grant. Within 45 days of the receipt of a
notification of deficiency, the Director of Finance shall verify the
amount of the deficiency in the categorical block grant and direct
the Controller to transfer an amount, equal to the lesser of the
amount available or the amount needed to fully fund the categorical
block grant, from those programs to the categorical block grant. The
Department of Finance shall notify the Joint Legislative Budget
Committee within 30 days of any transfer made pursuant to this
section.
   (e) Commencing October 1, 2007, the Legislative Analyst's Office
shall triennially convene a work group to review, commencing with
appropriations proposed for the 2008-09 fiscal year, the
appropriateness of the funding level provided by the categorical
block grant established in this section.
   (f) Categorical block grant funding may be used for any purpose
determined by the governing body of the charter school.
   (g) This section shall become operative on July 1, 2013. 

   SEC. 290.    Section 47634.3 of the   
 Education Code   is amended to read: 
   47634.3.  For purposes of  Section 47633,  
Sections 42238.02 and 42238.03,  the Superintendent shall
compute average daily attendance in each of grades 1 through 12,
respectively, as follows:
   (a) Distribute statewide total ungraded enrollment and average
daily attendance among kindergarten and each of grades 1 through 12,
inclusive, in proportion to the amounts of graded enrollment and
average daily attendance, respectively, in each of these grades.
   (b) Multiply enrollment in each of grades 1 through 12,
respectively, by the ratio of average daily attendance to enrollment
in the applicable grade range: 1 through 3, inclusive, 4 through 6,
inclusive; 7 and 8; and 9 through 12, inclusive.
   SEC. 291.    Section 47634.4 of the   
 Education Code   is amended to read: 
   47634.4.  (a) A charter school that elects to receive its funding
directly, pursuant to Section 47651, may apply individually for
federal and state categorical programs, not excluded in this section,
but only to the extent it is eligible for funding and meets the
provisions of the program. For purposes of determining eligibility
for, and allocation of, state or federal categorical aid, a charter
school that applies individually shall be deemed to be a school
district, except as otherwise provided in this chapter.
   (b) A charter school that does not elect to receive its funding
directly, pursuant to Section 47651, may, in cooperation with its
chartering authority, apply for federal and state categorical
programs not specified in this section, but only to the extent it is
eligible for funding and meets the provisions of the program.
   (c) Notwithstanding any other  provision of  law,
for the 2006-07 fiscal year and each fiscal year thereafter, a
charter school may not apply directly for categorical programs for
which services are exclusively or almost exclusively provided by a
county office of education.
   (d) Consistent with subdivision (c), a charter school may not
receive direct funding for any of the following county-administered
categorical programs:
   (1) American Indian Education Centers. 
   (2) The California Association of Student Councils. 

   (3) California Technology Assistance Project established pursuant
to Article 15 (commencing with Section 51870) of Chapter 5 of Part
28.  
   (4) The Center for Civic Education.  
   (5) 
    (2)  County Office Fiscal Crisis and Management
Assistance Team. 
   (6) 
    (3)  The K-12 High Speed Network.
   (e) A charter school may apply separately for district-level or
school-level grants associated with any of the categorical programs
specified in subdivision (d). 
   (f) Notwithstanding any other provision of law, for the 2006-07
fiscal year and each fiscal year thereafter, in addition to the
programs listed in subdivision (d), a charter school may not apply
for any of the following categorical programs:  
   (1) Agricultural Career Technical Education Incentive Program, as
set forth in Article 7.5 (commencing with Section 52460) of Chapter 9
of Part 28.  
   (2) Bilingual Teacher Training Assistance Program, as set forth in
Article 4 (commencing with Section 52180) of Chapter 7 of Part 28.
 
   (3) California Peer Assistance and Review Program for Teachers, as
set forth in Article 4.5 (commencing with Section 44500) of Chapter
3 of Part 25.  
   (4) College preparation programs, as set forth in Chapter 12
(commencing with Section 11020) of Part 7, Chapter 8.3 (commencing
with Section 52240) of Part 28, and Chapter 8 (commencing with
Section 60830) of Part 33.  
   (5) Foster youth programs pursuant to Chapter 11.3 (commencing
with Section 42920) of Part 24.  
   (6) Gifted and talented pupil programs pursuant to Chapter 8
(commencing with Section 52200) of Part 28.  
   (7) Home-to-school transportation programs, as set forth in
Article 2 (commencing with Section 39820) of Chapter 1 of Part 23.5
and Article 10 (commencing with Section 41850) of Chapter 5 of Part
24.  
   (8) International Baccalaureate Diploma Program, as set forth in
Chapter 12.5 (commencing with Section 52920) of Part 28. 

   (9) Mathematics and Reading Professional Development Program, as
set forth in Article 3 (commencing with Section 99230) of Chapter 5
of Part 65.  
   (10) Principal Training Program, as set forth in Article 4.6
(commencing with Section 44510) of Chapter 3 of Part 25. 

   (11) Professional Development Block Grant, as set forth in Article
5 (commencing with Section 41530) of Chapter 3.2 of Part 24.
 
   (12) Program to Reduce Class Size in Two Courses in Grade 9
(formerly The Morgan-Hart Class Size Reduction Act of 1989), as set
forth in Chapter 6.8 (commencing with Section 52080) of Part 28.
 
   (13) Pupil Retention Block Grant, as set forth in Article 2
(commencing with Section 41505) of Chapter 3.2 of Part 24. 

   (14) Reader services for blind teachers, as set forth in Article
8.5 (commencing with Section 45370) of Chapter 5 of Part 25.
 
   (15) School and Library Improvement Block Grant, as set forth in
Article 7 (commencing with Section 41570) of Chapter 3.2 of Part 24.
 
   (16) School Safety Consolidated Competitive Grant, as set forth in
Article 3 (commencing with Section 41510) of Chapter 3.2 of Part 24.
 
   (17) School safety programs, as set forth in Article 3.6
(commencing with Section 32228) and Article 3.8 (commencing with
Section 32239.5) of Chapter 2 of Part 19.  
   (18) Specialized secondary schools pursuant to Chapter 6
(commencing with Section 58800) of Part 31.  
   (19) State Instructional Materials Fund, as set forth in Article 3
(commencing with Section 60240) of Chapter 2 of Part 33. 

   (20) Targeted Instructional Improvement Block Grant, as set forth
in Article 6 (commencing with Section 41540) of Chapter 3.2 of Part
24.  
   (21) Teacher dismissal apportionment, as set forth in Section
44944.  
   (22) The deferred maintenance program, as set forth in Article 1
(commencing with Section 17565) of Chapter 5 of Part 10.5. 

   (23) The General Fund contribution to the State Instructional
Materials Fund pursuant to Article 3 (commencing with Section 60240)
of Chapter 2 of Part 33.  
   (24) Year-Round School Grant Program, as set forth in Article 3
(commencing with Section 42260) of Chapter 7 of Part 24. 
   SEC. 292.    Section 47635 of the  
Education Code   is amended to read: 
   47635.  (a) A sponsoring local educational agency shall annually
transfer to each of its charter schools funding in lieu of property
taxes equal to the lesser of the following two amounts:
   (1) The average amount of property taxes per unit of average daily
attendance, including average daily attendance attributable to
charter schools, received by the local educational agency, multiplied
by the charter school's average daily attendance.
   (2) The statewide average  general-purpose funding
  local control   funding formula grant funding
pursuant to Section 42238.02, as implemented by Section 42238.03,
 per unit of average daily attendance received by school
districts, as determined by the  State Department of
Education,   department,  multiplied by the charter
school's average daily attendance in each of the four corresponding
grade level ranges: kindergarten and grades 1, 2, and 3; grades 4, 5,
and 6; grades 7 and 8; and grades 9 to 12, inclusive.
   (b) The sponsoring local educational agency shall transfer funding
in lieu of property taxes to the charter school in monthly
installments, by no later than the 15th of each month.
   (1) For the months of August to February, inclusive, a charter
school's funding in lieu of property taxes shall be computed based on
the amount of property taxes received by the sponsoring local
educational agency during the preceding fiscal year, as reported to
the Superintendent  of Public Instruction  for
purposes of the second principal apportionment. A sponsoring local
educational agency shall transfer to the charter school the charter
school's estimated annual entitlement to funding in lieu of property
taxes as follows:
   (A) Six percent in August.
   (B) Twelve percent in September.
   (C) Eight percent each month in October, November, December,
January, and February.
   (2) For the months of March to June, inclusive, a charter school's
funding in lieu of property taxes shall be computed based on the
amount of property taxes estimated to be received by the sponsoring
local educational agency during the fiscal year, as reported to the
Superintendent  of Public Instruction  for purposes
of the first principal apportionment. A sponsoring local educational
agency shall transfer to each of its charter schools an amount equal
to one-sixth of the difference between the school's estimated annual
entitlement to funding in lieu of property taxes and the amounts
provided pursuant to paragraph (1). An additional one-sixth of this
difference shall be included in the amount transferred in the month
of March.
   (3) For the month of July, a charter school's funding in lieu of
property taxes shall be computed based on the amount of property
taxes estimated to be received by the sponsoring local educational
agency during the prior fiscal year, as reported to the
Superintendent  of Public Instruction  for purposes
of the second principal apportionment. A sponsoring local educational
agency shall transfer to each of its charter schools an amount equal
to the remaining difference between the school's estimated annual
entitlement to funding in lieu of property taxes and the amounts
provided pursuant to paragraphs (1) and (2).
   (4) Final adjustments to the amount of funding in lieu of property
taxes allocated to a charter school shall be made in February, in
conjunction with the final reconciliation of annual apportionments to
schools.
   (5) Subdivision (a) and paragraphs (1) to (4), inclusive, 
of subdivision (b)  do not apply for pupils who reside in,
and are otherwise eligible to attend a school in, a basic aid school
district, but who attend a charter school in a nonbasic aid school
district. With regard to these pupils, the sponsoring basic aid 
school  district shall transfer to the charter school an amount
of funds equivalent to the  revenue limit  
local control funding formula grant pursuant to Section 42238.02, as
implemented by Section 42238.03,  earned through average daily
attendance by the charter school for each pupil's attendance, not to
exceed the average property tax share per unit of average daily
attendance for pupils residing and attending in the basic aid 
school  district. The transfer of funds shall be made in not
fewer than two installments at the request of the charter school, the
first occurring not later than February 1 and the second not later
than June 1 of each school year. Payments shall reflect the average
daily attendance certified for the time periods of the first and
second principal apportionments, respectively. The Superintendent
 of Public Instruction  may not apportion any funds
for the attendance of pupils described in this subdivision unless the
amount transferred by the basic aid  school  district is
less than the  revenue limit   local control
funding formula grant pursuant to Section 42238.02, as implemented by
Section 42238.03,  earned by the charter school, in which event
the Superintendent  of Public Instruction  shall
apportion the difference to the charter school from state funds.
   SEC. 293.    Section 4763   6 of the 
 Education Code   is amended to read: 
   47636.  (a) This chapter  does   shall 
not prevent a charter school from negotiating with a local
educational agency for a share of operational funding from sources
not otherwise set forth in this chapter including, but not limited
to, all of the following:
   (1) Forest reserve revenues and other operational revenues
received due to harvesting or extraction of minerals or other natural
resources.
   (2) Sales and use taxes, to the extent that the associated
revenues are available for noncapital expenses of public schools.
   (3) Parcel taxes, to the extent that the associated revenues are
available for noncapital expenses of public schools.
   (4) Ad valorem property taxes received by a school district which
exceed its  revenue limit entitlement   local
control funding formula entitlement pursuant to Section 42238.02, as
implemented by Section 42238.03  .
   (5) "Basic aid" received by a school district pursuant to Section
6 of Article IX of the California Constitution.
   (b) This section shall become operative July 1, 2006.
   SEC. 294.    Section 47650 of the  
Education Code   is amended to read: 
   47650.  A charter school shall be deemed to be a school district
for purposes of determining the manner in which warrants are drawn on
the State School Fund pursuant to Section 14041. For purposes of
Section 14041, a charter school's "total amount certified" means the
state aid portion of the charter school's total 
general-purpose entitlement and categorical block grant computed
pursuant to Sections 47633 and 47634   local control
funding formula allocation pursuant to Section 42238.02, as
implemented by Section 42238.03  .
   SEC. 295.    Section 47651 of the  
Education Code   is amended to read: 
   47651.  (a) A charter school may receive the state aid portion of
the charter school's total  general-purpose entitlement and
categorical block grant  local control funding formula
allocation pursuant to Section 42238.02, as implemented by Section
42238.03,  directly or through the local educational agency that
either grants its charter or was designated by the  State
Board of Education   state board  .
   (1) In the case of a charter school that elects to receive its
funding directly, the warrant shall be drawn in favor of the 
county  superintendent of schools of the county in which the
local educational agency that approved the charter or was designated
by the  State Board of Education   state board
 as the oversight agency pursuant to paragraph (1) of
subdivision (k) of Section 47605 is located, for deposit to the
appropriate funds or accounts of the charter school in the county
treasury. The county superintendent of schools is authorized to
establish appropriate funds or accounts in the county treasury for
each charter school.
   (2) In the case of a charter school that does not elect to receive
its funding directly pursuant to Section 47651, the warrant shall be
drawn in favor of the  county  superintendent of schools of
the county in which the local educational agency that granted the
charter is located or was designated the oversight agency by the 
state  board pursuant to paragraph (1) of subdivision (k) of
Section 47605, for deposit to the appropriate funds or accounts of
the local educational agency.
   (3) In the case of a charter school, the charter of which was
granted by the  State Board of Education,  
state board,  but for which the  state  board has not
delegated oversight responsibilities pursuant to paragraph (1) of
subdivision (k) of Section 47605, the warrant shall be drawn in favor
of the  county  superintendent of schools in the county
where the local educational agency is located that initially denied
the charter that was later approved by the  state  board.
The county superintendent of schools is authorized to establish
appropriate funds or accounts in the county treasury for each charter
school.
   (b) On or before June 1 of each year, a charter school electing to
receive its funding directly shall so notify the county
superintendent of schools of the county in which the local
educational agency that granted the charter is located or, in the
case of charters for which the  State Board of Education
  state board  has designated an oversight agency
pursuant to paragraph (1) of subdivision (k) of Section 47605, the
county superintendent of schools of the county in which the
designated oversight agency is located. An election to receive
funding directly shall apply to all funding that the charter school
is eligible to receive including, but not limited to, the 
charter general-purpose entitlements and the categorical block grant
computed pursuant to Sections 47633 and 47634,   local
control funding formula allocation pursuant to Section 42238.02, as
implemented by Section 42238.03,  other state and federal
categorical aid, and lottery funds.
   SEC. 296.    Section 47660 of the  
Education Code   is amended to read: 
   47660.   (a)    For purposes of
computing eligibility for, and entitlements to, general purpose
funding and operational funding for categorical programs, the
enrollment and average daily attendance of a sponsoring local
educational agency shall exclude the enrollment and attendance of
pupils in its charter schools funded pursuant to this chapter.

   (b) (1) Notwithstanding subdivision (a), and commencing with the
2005-06 fiscal year, for purposes of computing eligibility for, and
entitlements to, revenue limit funding, the average daily attendance
of a unified school district, other than a unified school district
that has converted all of its schools to charter status pursuant to
Section 47606, shall include all attendance of pupils who reside in
the unified school district and who would otherwise have been
eligible to attend a noncharter school of the school district, if the
school district was a basic aid school district in the prior fiscal
year, or if the pupils reside in the unified school district and
attended a charter school of that school district that converted to
charter status on or after July 1, 2005. Only the attendance of the
pupils described by this paragraph shall be included in the
calculation made pursuant to paragraph (7) of subdivision (h) of
Section 42238.  
   (2) Notwithstanding subdivision (a), for the 2005-06 fiscal year
only, for purposes of computing eligibility for, and entitlements to,
revenue limit funding, the average daily attendance of a unified
school district, other than a unified school district that has
converted all of its schools to charter status pursuant to Section
47606 and is operating them as charter schools, shall include all
attendance of pupils who reside in the unified school district and
who would otherwise have been eligible to attend a noncharter school
of the unified school district if the pupils attended a charter
school operating in the unified school district prior to July 1,
2005. Only the attendance of pupils described by this paragraph shall
be included in the calculation made pursuant to Section 42241.3. The
attendance of the pupils described by this paragraph shall be
included in the calculation made pursuant to paragraph (7) of
subdivision (h) of Section 42238.  
   (c) (1) For the attendance of pupils specified in subdivision (b),
the general-purpose entitlement for a charter school that is
established through the conversion of an existing public school
within a unified school district on or after July 1, 2005, but before
January 1, 2010, shall be determined using the following amount of
general-purpose funding per unit of average daily attendance, in lieu
of the amount calculated pursuant to subdivision (a) of Section
47633:  
   (A) The amount of the actual unrestricted revenues expended per
unit of average daily attendance for that school in the year prior to
its conversion to, and operation as, a charter school, adjusted for
the base revenue limit per pupil inflation increase adjustment set
forth in Section 42238.1, if this adjustment is provided, and also
adjusted for equalization, deficit reduction, and other state
general-purpose increases, if any, provided for the unified school
district in the year of conversion to, and operation as a charter
school.  
   (B) For a subsequent fiscal year, the general-purpose entitlement
shall be determined based on the amount per unit of average daily
attendance allocated in the prior fiscal year adjusted for the base
revenue limit per pupil inflation increase adjustment set forth in
Section 42238.1, if this adjustment is provided, and also adjusted
for equalization, deficit reduction, and other state general-purpose
increases, if any, provided for the unified school district in that
fiscal year.  
   (2) This subdivision shall not apply to a charter school that is
established through the conversion of an existing public school
within a unified school district on or after January 1, 2010, which
instead shall receive general-purpose funding  
                   pursuant to Section 47633. This paragraph does not
preclude a charter school or unified school district from agreeing
to an alternative funding formula.  
   (d) Commencing with the 2005-06 fiscal year, the general-purpose
funding per unit of average daily attendance specified for a unified
school district for purposes of paragraph (7) of subdivision (h) of
Section 42238 for a school within the unified school district that
converted to charter status on or after July 1, 2005, shall be deemed
to be the amount computed pursuant to subdivision (c). 

   (e) A unified school district that is the sponsoring local
educational agency as defined in subdivision (j) of Section 47632 of
a charter school that is subject to paragraphs (1) and (2) of
subdivision (c) shall certify to the Superintendent the amount
specified in paragraph (1) of subdivision (c) prior to the approval
of the charter petition by the governing board of the school
district. This amount may be based on estimates of the unrestricted
revenues expended in the fiscal year prior to the school's conversion
to charter status and the school's operation as a charter school,
provided that the amount is recertified when the actual data becomes
available.  
   (f) For the purposes of this section, "basic aid school district"
means a school district that does not receive from the state an
apportionment of state funds pursuant to subdivision (h) of Section
42238.  
   (g) A school district may use the existing Standardized Account
Code Structure and cost allocation methods, if appropriate, for an
accounting of the actual unrestricted revenues expended in support of
a school pursuant to subdivision (c).  
   (h) For purposes of this section and Section 42241.3, "operating"
means that pupils are attending and receiving instruction at the
charter school. 
   SEC. 297.    Section 47662 of the  
Education Code   is amended to read: 
   47662.  For purposes of Section  42238,  
42238.02, as implemented by Section 42238.03,  the property tax
revenues received by a sponsoring local educational agency pursuant
to Chapter 3.5 (commencing with Section 75) and Chapter 6 (commencing
with Section 95) of Part 0.5  of Division 1  of the Revenue
and Taxation Code shall be reduced by the amount of funding in lieu
of property taxes allocated to a charter school or schools pursuant
to Section 47635.
   SEC. 298.    Section 47663 of the  
Education Code   is amended to read: 
   47663.  (a) For a pupil of a charter school sponsored by a basic
aid school district who resides in, and is otherwise eligible to
attend, a school district other than a basic aid school district, the
Superintendent  of Public Instruction  shall
apportion to the sponsoring school district an amount equal to 70
percent of the  revenue limit   local control
funding formula allocations pursuant to Section 42238.02, as
implemented by Section 42238.03,  per unit of average daily
attendance that would have been apportioned to the school district
that the pupil resides in and would otherwise have been eligible to
attend.
   (b) A  school  district that loses basic aid status as a
result of transferring property taxes to a charter school or schools
pursuant to Section 47635  for pupils who reside in, and are
otherwise eligible to attend a school district other than the school
district that sponsors the charter school,  shall be eligible to
receive a pro rata share of funding provided by subdivision (a),
with the proration factor calculated as the ratio of the following:
   (1) The amount of property taxes that the  school 
district receives in excess of its total  revenue limit
guarantee, prior to   base grant per unit of average
daily attendance calculated pursuant to Section 42238.02, as
implemented by Section 42238.03, before  any transfers made
pursuant to Section 47635 , except for transfers of in lieu of
taxes made for pupils who reside in and wo   uld otherwise
be eligible to attend a school of the school district  .
   (2) The total amount of  in lieu of  property taxes
transferred pursuant to Section 47635 to the charter school or
schools that it sponsors  , except for transfer of in lieu of
taxes made for pupils who reside in and would otherwise be eligible
to attend a school of the school district  . 
   (c) In no event shall the amount provided pursuant to this section
exceed the amount of in lieu of property taxes transferred on behalf
of charter school pupils who do not reside in the school district,
less the proportionate amount of base grant state aid provided
pursuant to Section 42238.02, as implemented by Section 42238.03,
that is attributable to the charter school pupils who do not reside
in the school district.  
   (c) 
    (d)  The Superintendent  of Public Instruction
may   shall  not apportion funds for the attendance
of a pupil in a charter school of a nonbasic aid school district who
resides in, and is otherwise eligible to attend school in, a basic
aid school district unless the pupil is subject to the exception set
forth in paragraph (5) of subdivision (b) of Section 47635. 
   (d) 
    (e)  For purposes of this section, "basic aid school
district" means a school district that does not receive from the
state, for any fiscal year in which the subdivision is applied, an
apportionment of state funds  pursuant to   as
described in  subdivision  (h)   (o) 
of Section  42238   42238.02  .
   SEC. 299.    Section 47664 of the   
 Education Code   is repealed.  
   47664.  (a) A school district in which all schools have been
converted to charter schools pursuant to Section 47606, at the school
district's discretion, may use the funding method provided for by
this chapter. A school district that elects to have its funding
determined pursuant to the method provided for by this chapter shall
so notify the Superintendent of Public Instruction by June 1 prior to
the affected fiscal year. Once made, an election to be funded
pursuant to the method provided for by this chapter is irrevocable.
   (b) In the case of a school district in which all schools have
been converted to charter schools pursuant to Section 47606, and that
has not elected to be funded pursuant to the method provided for by
this chapter, any increase in district average daily attendance
attributable to pupils who reside in, and would otherwise be eligible
to attend, a district other than the district sponsoring the charter
school shall be funded at the lesser of the following:
   (1) The sponsoring district's own base revenue limit per unit of
average daily attendance.
   (2) The statewide average base revenue limit per unit of average
daily attendance for districts of a similar type. For purposes of
this paragraph, increases in average daily attendance shall be
measured relative to the 1998-99 fiscal year or the fiscal year in
which all schools in the district were converted to charter schools
pursuant to Section 47606, whichever fiscal year is later.
   (c) A school district in which all schools have been converted to
charter schools pursuant to Section 47606 and that is the sponsoring
entity for a charter school or schools that were previously funded
pursuant to the method provided pursuant to this chapter shall have
its base revenue limit computed as follows:
   (1) The average daily attendance of the charter school or schools
for the fiscal year prior to the fiscal year in which the conversion
is effective shall be multiplied by the statewide average base
revenue limit per unit of average daily attendance for districts of
similar type for the fiscal year in which the conversion is
effective.
   (2) The school district's remaining average daily attendance for
the fiscal year prior to the fiscal year in which the conversion is
effective shall be multiplied by the school district's base revenue
limit per unit of average daily attendance for the fiscal year in
which the conversion is effective.
   (3) The amounts computed in paragraphs (1) and (2) shall be added
and this total shall be divided by the district's total average daily
attendance, including average daily attendance in charter schools
for which it is the sponsoring entity, for the fiscal year prior to
the fiscal year in which the conversion is effective. 
   SEC. 300.    Section 48200.7 of the   
 Education Code   is repealed.  
   48200.7.  (a) The State Department of Education shall identify the
three lowest performing elementary schools in the Compton Unified
School District for purposes of extending the school year for pupils
enrolled in kindergarten or grades 1 and 2 and for those pupils in
any of grades 3 to 5, inclusive, who are performing in mathematics or
English language arts two or more grade levels below the grade in
which those pupils are enrolled as determined under subdivision (d).
   (b) Beginning with the 1998-99 school year, the Compton Unified
School District may identify schools of the district, in addition to
those identified pursuant to subdivision (a), that are among the
lowest performing schools in the district, and may provide extended
school year instruction pursuant to Section 41601.1 to any pupil
enrolled in kindergarten or any of grades 1 to 12, inclusive, in a
school identified pursuant to this subdivision who is performing in
mathematics or English language arts at a grade level that is two or
more grade levels below the grade in which that pupil is enrolled as
determined pursuant to subdivision (d).
   (c) Notwithstanding subdivision (b) of this section and Section
41601.1, the amount of funding claimed by the district for extended
year instruction shall not in any year exceed twice the amount
claimed pursuant to this section in the 1997-98 fiscal year as
adjusted each year by the inflation adjustment determined pursuant to
Section 42238.1.
   (d) The determination that a pupil is performing two or more grade
levels below the grade in which that pupil is enrolled shall be
based on any combination of the following:
   (1) The California Achievement Test-Form E.
   (2) The Spanish assessment of basic education.
   (3) Proficiency tests required for graduation.
   (4) District criterion reference tests based on state curriculum
guides.
   (5) The STAR test.
   (e) The Compton Unified School District shall test all pupils in
kindergarten and grades 1 to 12, inclusive, in its lowest performing
schools identified pursuant to subdivisions (a) and (b) prior to
those pupils beginning an extended school year program under this
section. At the end of the school year the school district shall
again test the pupils in kindergarten and grades 1 to 12, inclusive,
to determine the grade level at which those pupils are performing.
   (f) The department shall approve each of the following areas in
each elementary school identified as high-priority pursuant to
subdivision (a):
   (1) Curricula.
   (2) Testing instruments.
   (3) Schoolday length.
   (4) Teacher selection, teacher mentoring, and staff development
processes.
   (g) The department shall review teacher compensation, including
salary and benefits, in each elementary school identified as
high-priority pursuant to subdivision (a).
   (h) The department shall collect data as to each of the following
items for each school in subdivisions (a) and (b):
   (1) Instructional materials used by, and made available to, the
school.
   (2) Teacher capacity.
   (3) Any other baseline data deemed necessary by the department.
   (i) Instruction provided to pupils subject to this section during
schooldays in excess of schooldays offered to other pupils shall be
devoted to instruction in basic skills in mathematics and English
language arts.
   (j) In conjunction with the Legislative Analyst, the department
shall contract for an independent evaluation to determine the
effectiveness of the extended school year curriculum, instructional
program, and materials provided pursuant to this section and funded
pursuant to Section 41601.1 in improving pupil academic outcomes.
Testing and data collection conducted pursuant to this section shall
be administered under the oversight of the independent evaluator, who
shall be provided with copies of all test results. Results of the
evaluation shall be reported on or before January 1, 2002, to the
Superintendent of Public Instruction, the Legislative Analyst, the
Director of Finance, and the appropriate policy and fiscal committees
of the Legislature. The Compton Unified School District shall be
responsible for all costs incurred pursuant to this subdivision.
   (k) A percentage of funding appropriated for purposes of this
section, in an amount to be determined by the Superintendent of
Public Instruction, shall be used for purposes of testing and data
collecting pursuant to this section. 
   SEC. 301.    Section 48206.3 of the   
 Education Code   is amended to read: 
   48206.3.  (a) Except for those pupils receiving individual
instruction provided pursuant to Section 48206.5, a pupil with a
temporary disability which makes attendance in the regular day
classes or alternative education program in which the pupil is
enrolled impossible or inadvisable shall receive individual
instruction provided by the  school  district in which the
pupil is deemed to reside.
   (b) For purposes of this section and Sections 48206.5, 48207, and
48208, the following terms have the following meanings:
   (1) "Individual instruction" means instruction provided to an
individual pupil in the pupil's home, in a hospital or other
residential health facility, excluding state hospitals, or under
other circumstances prescribed by regulations adopted for that
purpose by the  State Board of Education   state
board  .
   (2) "Temporary disability" means a physical, mental, or emotional
disability incurred while a pupil is enrolled in regular day classes
or an alternative education program, and after which the pupil can
reasonably be expected to return to regular day classes or the
alternative education program without special intervention. A
temporary disability shall not include a disability for which a pupil
is identified as an individual with exceptional needs pursuant to
Section 56026.
   (c) (1) For purposes of computing average daily attendance
pursuant to Section  42238.5,   42238.05, 
each clock hour of teaching time devoted to individual instruction
shall count as one day of attendance.
   (2)  No   A  pupil shall  not 
be credited with more than five days of attendance per calendar week,
or more than the total number of calendar days that regular classes
are maintained by the  school  district in  any
  a  fiscal year.
   (d) Notice of the availability of individualized instruction shall
be given pursuant to Section 48980.
   SEC. 302.    Section 48208 of the  
Education Code   is amended to read: 
   48208.  (a) It shall be the primary responsibility of the parent
or guardian of a pupil with a temporary disability to notify the
school district in which the pupil is deemed to reside pursuant to
Section 48207 of the pupil's presence in a qualifying hospital.
   (b) Upon receipt of notification pursuant to subdivision (a), a
school district shall do all of the following:
   (1) Within five working days of receipt of the notification,
determine whether the pupil will be able to receive individualized
instruction, and, if the determination is positive, when the
individualized instruction may commence. Individualized instruction
shall commence no later than five working days after the positive
determination has been rendered.
   (2) Provide the pupil with individualized instruction pursuant to
Section 48206.3. The school district may enter into an agreement with
the school district in which the pupil previously attended regular
day classes or an alternative education program, to have the school
district the pupil previously attended provide the pupil with
individualized instruction pursuant to Section 48206.3.
   (3) Within five working days of the commencement of individualized
instruction, provide the school district in which the pupil
previously attended regular day classes or an alternative education
program with written notice that the pupil shall not be counted by
that  school  district for purposes of computing average
daily attendance pursuant to Section  42238.5,  
42238.05,  effective the date on which individualized
instruction commenced.
   SEC. 303.    Section 48310 of the  
Education Code   is amended to read: 
   48310.  (a) The average daily attendance for pupils admitted by a
school district of choice pursuant to this article shall be credited
to that  school  district pursuant to Section 46607. The
attendance report for the school district of choice may include an
identification of the school district of residence.
   (b) Notwithstanding other provisions of law, state aid for
categorical education programs for pupils admitted under this article
shall be apportioned to the school district of choice.
   (c) For  any   a  school district of
choice that is a basic aid  school  district, the
apportionment of state funds for  any  average daily
attendance credited pursuant to this section shall be 70 percent of
the  school  district  revenue limit  
local control funding formula grant  calculated pursuant to
Section  42238   42238.02, as implemented 
 by Section 42238.03,  that would have been apportioned to
the  school  district of residence. For purposes of this
subdivision, the term "basic aid  school  district" means a
school district that does not receive from the state, for 
any   a  fiscal year in which the subdivision is
applied, an apportionment of state funds  pursuant to
  as described in  subdivision  (h)
  (o)  of Section  42238  
42238.02  .
   (d) The average daily attendance of pupils admitted by a school
district of choice pursuant to this article shall be credited to that
school district for  the  purposes of any
determination under Article 2 (commencing with Section 17010) of
Chapter 12 of Part 10  of Division 1 of Title 1  that
 utilizes   uses  an average daily
attendance calculation.
   SEC. 304.    Section 48359.5 of the   
 Education Code   is amended to read: 
   48359.5.  For a school district of enrollment that is a basic aid
 school  district, the apportionment of state funds for
 any  average daily attendance credited pursuant to
this article shall be 70 percent of the  school  district
 revenue limit   local control funding formula
grant  that would have been apportioned to the school district
of residence  pursuant to Section 42238.02, as implemented by
Section 42238.03  . Apportionment of these funds shall begin in
the second consecutive year of enrollment, and continue annually
until the pupil graduates from, or is no longer enrolled in, the
school district of enrollment. For purposes of this section, "basic
aid school district" means a school district that does not receive an
apportionment of state funds  pursuant to   as
described in  subdivision  (h)   (o) 
of Section  42238   42238.02  for 
any   a  fiscal year in which this subdivision may
apply.
   SEC. 305.    Article 2 (commencing with Section
48640) of Chapter 4 of Part 27 of Division 4   of Title 2 of
the   Education Code   is repealed. 
   SEC. 306.    Section 48660 of the  
Education Code   is amended to read: 
   48660.  The governing board of a school district may establish one
or more community day schools for pupils who meet one or more of the
conditions described in subdivision (b) of Section 48662. A
community day school may serve pupils in any of kindergarten and
grades 1 to 6, inclusive, or any of grades 7 to 12, inclusive, or the
same or lesser included range of grades as may be found in 
any   an  individual middle or junior high school
operated by the  school  district. If a school district is
organized as a  school  district that serves kindergarten
and grades 1 to 8, inclusive, but no higher grades, the governing
board of the school district may establish a community day school for
any kindergarten and grades 1 to 8, inclusive, upon a two-thirds
vote of the  governing  board  of the school district
 . It is the intent of the Legislature, that to the extent
possible, the governing board of a school district operating a
community day school for any of kindergarten and grades 1 to 8,
inclusive, separate younger pupils from older pupils within that
community day school.  Except as provided in Section 47634, a
charter school may not receive funding as a community day school
unless it meets all the conditions of apportionment set forth in this
article. 
   SEC. 307.    Section 48660.2 of the   
 Education Code   is repealed.  
   48660.2.  (a) Notwithstanding any other provision of law, and as a
condition of receiving apportionments under this article, school
districts operating one or more community day schools shall annually
report to the Superintendent, on forms approved by the State Board of
Education, the direct instructional costs and documented support
costs of their community day schools, using definitions included in
the California School Accounting Manual, Part I, as it read on July
1, 1997, except that districts may include in these reports the costs
of rents and leases for facilities used by community day schools and
maintenance and operations costs for facilities used by community
day schools. Each school district that has received approval from the
department to use the standardized account code structure may
satisfy the requirement set forth in this subdivision by reporting
the direct costs of the community day school program, and shall
maintain documentation of all noninstructional costs charged to the
community day school program.
   (b) The Superintendent shall do each of the following:
   (1) Multiply the total of all funds received by each school
district on behalf of pupils while enrolled in community day schools
by 0.9.
   (2) Subtract the total of each school district's costs for
community day schools, as determined pursuant to subdivision (a),
from the amount determined pursuant to paragraph (1).
   (3) If the amount determined pursuant to paragraph (2) for a
school district is positive, the Superintendent shall subtract that
amount from the school district's next apportionment.
   (c) (1) For purposes of making the computation required by
paragraph (1) of subdivision (b) for the 2004-05 fiscal year, the
"total of all funds received" means the total of all funds received
in the 2002-03 to 2004-05 fiscal years, inclusive.
   (2) For purposes of making the computation required by paragraph
(2) of subdivision (b) for the 2004-05 fiscal year, the "school
district's costs" means the school district's costs incurred in the
2002-03 to 2004-05 fiscal years, inclusive. 
   SEC. 308.    Section 48663 of the  
Education Code   is repealed.  
   48663.  (a) The minimum schoolday in a community day school is 360
minutes of classroom instruction provided by a certificated employee
of the district reporting the attendance of the pupils for
apportionment funding.
   (b) A pupil enrolled in a community day school may not generate
more than one day of community day school attendance credit in a
schoolday for any purpose.
   (c) For the purposes of calculating the additional funding
provided to a school district pursuant to Section 48664, only
community day school attendance shall be reported in clock hours.
Attendance of less than five clock hours in a schoolday shall be
disregarded for purposes of Section 48664. Five clock hours of
attendance in one schoolday shall be deemed to be one-half day of
attendance, for purposes of additional funding pursuant to Section
48664. Six clock hours or more of attendance in one schoolday shall
be deemed to be one day of attendance, for purposes of additional
funding pursuant to Section 48664.
   (d) Independent study may not be utilized as a means of providing
any part of the minimum instructional day provided pursuant to
subdivision (a).
   (e) A community day school's academic programs shall be comparable
to those available to pupils of a similar age in the school
district. 
   SEC. 309.    Section 48664 of the  
Education Code   is repealed.  
   48664.  (a) (1) In addition to funds from all other sources, the
Superintendent of Public Instruction shall apportion to each school
district that operates a community day school four thousand dollars
($4,000) per year, and for each county office of education
                               that operates a community day school
three thousand dollars ($3,000) per year, for each unit of average
daily attendance reported at the annual apportionment for pupil
attendance at community day schools, adjusted annually commencing
with the 1999-2000 fiscal year for the inflation adjustment
calculated pursuant to subdivision (b) of Section 42238.1. Average
daily attendance reported for this program shall not exceed 0.375
percent of a district's prior year P2 average daily attendance in an
elementary school district, 0.5 percent of a district's prior year P2
average daily attendance in a unified school district, or 0.625
percent of a district's prior year P2 average daily attendance in a
high school district. The units of average daily attendance of a
community day school operated by a county office of education shall
not exceed the unused units of average daily attendance of the
community day schools operated by the school districts within the
jurisdiction of that county office of education.
   (2) The Superintendent of Public Instruction may reallocate to any
school district any unexpended balance of the appropriations made
for the purposes of this subdivision for actual pupil attendance in
excess of the percentage specified in this subdivision for the school
district in an amount not to exceed one-half of that percentage.
However, the average daily attendance generated by pupils expelled
pursuant to subdivision (d) of Section 48915, shall not be subject to
these percentage caps on average daily attendance.
   (b) The average daily attendance of a community day school shall
be determined by dividing the total number of days of attendance in
all full school months, by a divisor of 70 in the first period of
each fiscal year, by a divisor of 135 in the second period of each
fiscal year, and by a divisor of 180 at the annual time of each
fiscal year.
   (c) The Superintendent of Public Instruction shall apportion to
each school district that operates a community day school an amount
equal to four dollars ($4), adjusted annually commencing with the
1999-2000 fiscal year for inflation pursuant to subdivision (b) of
Section 42238.1, multiplied by the total of the number of hours each
schoolday, up to a maximum of two hours daily, that each community
day school pupil remains at the community day school under the
supervision of an employee of the school district, or a consortium of
school districts pursuant to Section 48916.1, reporting the
attendance of the pupils for apportionment funding following
completion of the full six-hour instructional day.
   (d) It is the intent of the Legislature that districts enter into
consortia, as feasible, for the purpose of providing community day
school programs. Any school district with fewer than 2,501 units of
average daily attendance may request a waiver for any fiscal year of
the funding limitations set forth in this section. The Superintendent
of Public Instruction shall approve a waiver if he or she deems it
necessary in order to permit the operation of a community day school
of reasonably comparable quality to those offered in a school
district with 2,501 or more units of average daily attendance. In no
event shall the amount allocated pursuant to a waiver exceed the
amount provided for one teacher pursuant to Section 42284, for pupils
enrolled in kindergarten and grades 1 to 6, inclusive, or the amount
provided for one teacher pursuant to Section 42284, for pupils
enrolled in grades 7 to 12, inclusive. The provisions of this act
shall not apply to any school district that applied for a waiver
within the funding limits established by this subdivision but was
denied funding or not fully funded.
   (e) The State Department of Education shall evaluate and report to
the appropriate legislative policy committees and budget committees
on or before October 1, 1998, and for two years thereafter the
following programmatic and fiscal issues:
   (1) The number of expulsions statewide.
   (2) The number of school districts operating community day
schools.
   (3) Status of the countywide plans as defined in Section 48926.
   (4) An evaluation of the community day school average daily
attendance funding percentage cap.
   (5) Number of small school districts requesting and the number
receiving a waiver under this section.
   (6) The effect of hourly accounting under Section 48663 for
purposes of receiving the additional funding under Section 48664.
   (7) The number of pupils and average daily attendance served in
community day programs, further identified as the number expelled
pursuant to subdivision (b) of Section 48915, subdivision (d) of
Section 48915, other expulsion criteria, or referred through a formal
district process.
   (8) Pupil outcome data and other data as required under Section
48916.1.
   (9) Other programmatic or fiscal matters as determined by the
State Department of Education.
   (f) The additional funds provided in subdivisions (a), (c), and
(d) shall only be allocated to the extent that funds are appropriated
for this purpose in the annual Budget Act or other legislation, or
both, except for pupils expelled pursuant to subdivision (d) of
Section 48915. For pupils expelled pursuant to subdivision (d) of
Section 48915, the funds apportioned under subdivision (a) are
continuously appropriated from the General Fund to Section A of the
State School Fund.
   (g) A one-time adjustment shall be made to the amount specified in
subdivision (a), for the 1998-99 fiscal year and subsequent fiscal
years, by increasing that amount by the statewide average quotient
resulting from dividing the average daily attendance specified in
subparagraph (B) of paragraph (3) of subdivision (a) of Section
42238.8 by the amount specified in subparagraph (C) of paragraph (3)
of subdivision (a) of Section 42238.8. 
   SEC. 310.    Section 48667 of the  
Education Code   is amended to read: 
   48667.   (a)    For  the
 purposes of this article, each county office of education
shall be deemed to be a school district. 
   (b) The Superintendent of Public Instruction shall use the revenue
limit per unit of average daily attendance of the statewide average
juvenile court school revenue limit per unit of average daily
attendance for a community day school operated by a county office of
education. 
   SEC. 311.    Section 49430.5 of the   
 Education Code   is amended to read: 
   49430.5.  (a) The reimbursement a school receives for free and
reduced price meals sold or served to pupils in elementary, middle,
or high schools included within a school district, charter school, or
county office of education shall be  twenty-one cents
($0.21)   specified in the annual   Budget
  Act  .
   (b) To qualify for the reimbursement for free and reduced price
meals provided to pupils in elementary, middle, or high schools, a
school shall follow the Enhanced Food Based Meal Pattern, Nutrient
Standard Meal Planning, or Traditional Meal Pattern developed by the
United States Department of Agriculture or the SHAPE Menu Patterns
developed by the state.
   (c) The reimbursement rates  set forth in this section
  specified in the annual Budget Act  shall be
adjusted annually for increases in cost of living in the same manner
set forth in  Section 42238.1   paragraph (2) of
subdivision (d) of Section 42238.02  .
   SEC. 312.    Section 49452.8 of the   
 Education Code   is repealed.  
   49452.8.  (a) A pupil, while enrolled in kindergarten in a public
school, or while enrolled in first grade in a public school if the
pupil was not previously enrolled in kindergarten in a public school,
no later than May 31 of the school year, shall present proof of
having received an oral health assessment by a licensed dentist, or
other licensed or registered dental health professional operating
within his or her scope of practice, that was performed no earlier
than 12 months prior to the date of the initial enrollment of the
pupil.
   (b) The parent or legal guardian of a pupil may be excused from
complying with subdivision (a) by indicating on the form described in
subdivision (d) that the oral health assessment could not be
completed because of one or more of the reasons provided in
subparagraphs (A) to (C), inclusive, of paragraph (2) of subdivision
(d).
   (c) A public school shall notify the parent or legal guardian of a
pupil described in subdivision (a) concerning the assessment
requirement. The notification, at a minimum, shall consist of a
letter that includes all of the following:
   (1) An explanation of the administrative requirements of this
section.
   (2) Information on the importance of primary teeth.
   (3) Information on the importance of oral health to overall health
and to learning.
   (4) A toll-free telephone number to request an application for
Healthy Families, Medi-Cal, or other government-subsidized health
insurance programs.
   (5) Contact information for county public health departments.
   (6) A statement of privacy applicable under state and federal laws
and regulations.
   (d) In order to ensure uniform data collection, the department, in
consultation with interested persons, shall develop and make
available on the Internet Web site of the department, a standardized
notification form as specified in subdivision (c) that shall be used
by each school district. The standardized form shall include all of
the following:
   (1) A section that can be used by the licensed dentist or other
licensed or registered dental health professional performing the
assessment to record information that is consistent with the
information collected on the oral health assessment form developed by
the Association of State and Territorial Dental Directors.
   (2) A section in which the parent or legal guardian of a pupil can
indicate the reason why an assessment could not be completed by
marking the box next to the appropriate reason. The reasons for not
completing an assessment shall include all of the following:
   (A) Completion of an assessment poses an undue financial burden on
the parent or legal guardian.
   (B) Lack of access by the parent or legal guardian to a licensed
dentist or other licensed or registered dental health professional.
   (C) The parent or legal guardian does not consent to an
assessment.
   (e) Upon receiving completed assessments, all school districts, by
December 31 of each year, shall submit a report to the county office
of education of the county in which the school district is located.
The report shall include all of the following:
   (1) The total number of pupils in the district, by school, who are
subject to the requirement to present proof of having received an
oral health assessment pursuant to subdivision (a).
   (2) The total number of pupils described in paragraph (1) who
present proof of an assessment.
   (3) The total number of pupils described in paragraph (1) who
could not complete an assessment due to financial burden.
   (4) The total number of pupils described in paragraph (1) who
could not complete an assessment due to lack of access to a licensed
dentist or other licensed or registered dental health professional.
   (5) The total number of pupils described in paragraph (1) who
could not complete an assessment because their parents or legal
guardians did not consent to their child receiving the assessment.
   (6) The total number of pupils described in paragraph (1) who are
assessed and found to have untreated decay.
   (7) The total number of pupils described in paragraph (1) who did
not return either the assessment form or the waiver request to the
school.
   (f) Each county office of education shall maintain the data
described in subdivision (e) in a manner that allows the county
office to release it upon request.
   (g) This section does not prohibit any of the following:
   (1) County offices of education from sharing aggregate data
collected pursuant to this section with other governmental agencies,
philanthropic organizations, or other nonprofit organizations for the
purpose of data analysis.
   (2) Use of assessment data that is compliant with the federal
Health Insurance Portability and Accountability Act of 1996 (P.L.
104-191) for purposes of conducting research and analysis on the oral
health status of public school pupils in California.
   (h) This section does not preclude a school district or county
office of education from developing a schoolsite-based oral health
assessment program to meet the requirements of this section.
   (i) The Office of Oral Health of the Chronic Disease Control
Branch of the State Department of Public Health shall conduct an
evaluation of the requirements imposed by this section and prepare
and submit a report to the Legislature by January 1, 2010, that
discusses improvements in the oral health of children resulting from
the imposition of those requirements. The Office of Oral Health may
receive private funds and contract with the University of California
to fulfill the duties described in this subdivision.
   (j) Funds appropriated in the annual Budget Act for the activities
required by this section shall first be used to offset reimbursement
provided to local educational agencies pursuant to Part 7
(commencing with Section 17500) of Division 4 of Title 2 of the
Government Code for state-mandated costs imposed by this section.

   SEC. 313.    Section 49536 of the  
Education Code   is amended to read: 
   49536.   The State Department of Education  
(a)     The department  shall,  prior
to   before  July 1 of each year, prescribe an
adjustment in the state meal contribution rates established pursuant
to this section for the forthcoming fiscal year. The adjustments
shall reflect the changes in the cost of operating a school breakfast
and lunch program and shall be made commencing on July 1 of each
year. The adjustment shall be the average of the separate indices of
the "Food Away From Home Index" for Los Angeles and San Francisco as
prepared by the United States Bureau of Labor Statistics. 
   In 
    (b)     In  giving effect to the
cost-of-living provisions of this section, the  Department of
Education   department  shall use the same month
for computation of the percentage change in the cost of living after
July 1, 1975. The same month shall be used annually thereafter. The
product of  any   a  percentage increase or
decrease in the average index and the per meal reimbursement
disbursement rate shall be adjusted by the amount of  any
  a  cost-of-living change currently in effect
pursuant to the provisions of this section. 
   Commencing 
    (c)     Commencing  with the 1990-91
fiscal year, the cost-of-living adjustment shall be equal to the
percentage change determined pursuant to  subdivision (b) of
Section 42238.1   paragraph (2) of subdivision (d) of
Section 42238.02  .
   SEC. 314.    Section 51056 of the  
Education Code   is repealed.  
   51056.  A course of study for each adult school shall be prepared
under the direction of the governing board of the district
maintaining the adult school and shall be subject to approval of the
Department of Education. 
   SEC. 315.    Article 15 (commencing with Section
51870) of Chapter 5 of Part 28 of Division   4 of Title 2 of
the   Education Code   is repealed. 
   SEC. 316.    Section 52051 of the   
 Education Code   is repealed.  
   52051.  The Public School Performance Accountability Program is
hereby established and shall consist of the following three component
parts:
   (a) The state Academic Performance Index, to be known as the API.
   (b) The Immediate Intervention/Underperforming Schools Program.
   (c) The Governor's High Achieving/Improving Schools Program.

   SEC. 317.    Section 52052.2 of the   
 Education Code   is repealed.  
   52052.2.  A school that receives an API score with an asterisk
shall be eligible for the Governor's Performance Awards Program, as
set forth in Section 52057 and for participation in the Immediate
Intervention/Underperforming Schools Program, as set forth in Section
52053. 
   SEC. 318.    Section 52052.5 of the   
 Education Code   is amended to read: 
   52052.5.  (a) The Superintendent shall establish a broadly
representative and diverse advisory committee to advise the
Superintendent  of Public Instruction  and the state
board on all appropriate matters relative to the creation of the
Academic Performance Index  and the implementation of the
Immediate Intervention/Underperforming Schools Program and the High
Achieving/Improving Schools Program  . Members of the
advisory committee shall serve without compensation for terms not to
exceed two years. The department shall provide staff to the advisory
panel.
   (b) By July 1, 2005, the advisory committee established pursuant
to this section shall make recommendations to the Superintendent on
the appropriateness and feasibility of a methodology for generating a
measurement of academic performance by  utilizing 
 using  unique pupil identifiers for pupils in kindergarten
and any of grades 1 to 12, inclusive, and annual academic achievement
growth to provide a more accurate measure of a school's growth over
time. If appropriate and feasible, the Superintendent, with the
approval of the state board, shall thereafter implement this
measurement of academic performance.
   (c) By January 1, 2011, the Superintendent and the state board, in
consultation with the advisory committee established pursuant to
subdivision (a), shall make recommendations to the Legislature and
the Governor on each of the following:
   (1) Approaches to increasing the emphasis of science and
mathematics in the calculation of the Academic Performance Index or
any successor measure.
   (2) Methods to incorporate into the Academic Performance Index, or
into other aspects of the state's accountability system, a measure
of the degree to which pupils graduate from high school with the
skills and knowledge necessary to attain entry-level employment in
business or industry, as set forth in subdivision (b) of Section
51228.
   (3) Methods to incorporate into the Academic Performance Index, or
into other aspects of the state's accountability system, a measure
of the degree to which pupils graduate from high school with the
skills and knowledge necessary to succeed in postsecondary education.

   (d) By July 1, 2013, the Superintendent and the state board, in
consultation with the advisory committee established pursuant to
subdivision (a), shall make recommendations to the Legislature and
the Governor on the establishment of a methodology for generating a
measurement of group and individual academic performance growth by
utilizing individual pupil results from a longitudinally valid
achievement assessment system. These recommendations should also
address any interactions between the Academic Performance Index, or
any successor measure, and individual test scores from the state's
tests, as well as implications for the reauthorization of the state's
assessment system. This paragraph shall not be construed to
supersede the provisions of Chapter 273 of the Statutes of 2009.
   SEC. 319.    Article 3 (commencing with Section
52053) of Chapter 6.1 of Part 28 of   Division 4 of Title 2
of the   Education Code   is repealed. 
   SEC. 320.    Article 3.5 (commencing with Section
52055.600) of Chapter 6.1 of Part   28 of Division 4 of
Title 2 of the   Education Code   is repealed.

   SEC. 321.    Section 52055.750 of the  
  Education Code   is amended to read:
   52055.750.  (a) A school district or chartering authority that
receives funding pursuant to this article shall agree to do all of
the following for each funded school within its jurisdiction:
   (1) Comply with the program requirements of this article and
require that each funded schoolsite complete and meet the criteria of
an academic review process that includes the elements of the school
assistance and intervention team review process described in Section
52055.51  , as that section read on January 1, 2013  .
   (2) Ensure that funded schools meet the requirements of this
article.
   (3) Ensure that each school administrator in a funded school is
confirmed to have exemplary qualifications and experience by the end
of the first full year of funding and in each year of funding
thereafter. Those qualifications shall include the ability to support
the success of all pupils by facilitating the development,
articulation, implementation, and stewardship of a vision of learning
that is shared and supported by the school community as well as the
ability to advocate, nurture, and sustain a school culture and
instructional program that is conducive to pupils learning and staff
professional growth. The school district or chartering authority
shall provide for high quality professional development for each
administrator through leadership training, coaching, and mentoring
and shall take all reasonable steps to maintain stable school
leadership in schools that receive funding pursuant to this article.
To the extent appropriate the professional development shall be
similar in quality and rigor to that provided pursuant to the
Administrator Training Program under Article 4.6 (commencing with
Section 44510) of Chapter 3 of Part 25  , as that article read on
January 1, 2012  .
   (4) Provide all fiscal and evaluation data requested by the
Superintendent for initial approval, annual reviews, and reports.
   (5) Comply with subdivisions (a) to (c), inclusive, of Section
52055.630,  as that section read on January 1, 2013,  and in
the same manner consult with the exclusive representative of
classified employees.
   (6) Assist eligible schools in developing and carrying out a plan
to implement the provisions of this article to ensure the  school
 district's plan supports the work of the school.
   (7) Agree to focus on conditions that improve instruction and
achievement in funded schools.
   (8) Express its full understanding that not meeting annual and
final program and academic achievement requirements under this
article will result in the termination of funding.
   (9) Ensure that the funds received on behalf of funded schools are
expended on that school, except that during the first partial year
of funding  school  districts may use funding under this
article for facilities necessary to meet the class size reduction
requirements of this article, if all funds are spent on funded
schools within the  school  district.
   (10) Use the uniform process recommended by the Superintendent
pursuant to subdivision (d) of Section 52055.730 to ensure that the
average teaching experience of the classroom teachers in funded
schools is equal to or greater than the average teaching experience
of classroom teachers in the school district as a whole.
   (b) If not expressly prohibited by federal law, a school district
or chartering authority on behalf of a funded school is exempt from
requirements imposed on the use of state categorical or federal funds
in the consolidated application, except those funds related to
economic impact aid, if those funds are identified in the revised
plan of Section 52055.755. Funded schools are exempt from all program
requirements associated with funds in the consolidated application,
except requirements regarding parent advisory committees, schoolsite
councils, and special education. Funds provided under the economic
aid program shall not be used to implement this program.
   (c) Each funded school shall ensure that each teacher in a
subject-specific classroom or teaching covered subjects participates
in professional development that is made available by the  school
 district or the schoolsite councils, is developed in a
collaborative process with interested parties, and is articulated in
an improvement plan. For purposes of this article, professional
development activities may include collaboration time for teachers to
develop new instructional lessons or analyze pupil data, mentoring
projects for new teachers, or extra support for teachers to improve
practice. At a minimum, appropriate professional development for the
site shall be part of a coherent plan that combines school activities
within the school, including, but not limited to, lesson study or
coteaching, and external learning opportunities that meet all of the
following criteria:
   (1) Are related to the academic subjects taught.
   (2) Provide time to meet and work with other teachers.
   (3) Support instruction and pupil learning to improve instruction
in a manner that is consistent with academic content standards.
    (4) Include an average of 40 hours per teacher per year.
   (d) At a minimum, professional development in a self-contained
classroom shall include content regarding mathematics, science,
English language arts, reading, and English language development.
Professional development for teachers teaching subject specific
courses shall include the specific subject and English language
development. To the extent appropriate the professional development
shall be similar in quality and rigor to the training provided under
the Mathematics and Reading Professional Development Program in
Article 3 (commencing with Section 99230) of Chapter 5 of Part 65
 , as that article read on January 1, 2012  .
   (e) On or before the end of the first three years of full funding,
funded schools shall do the following:
   (1) Increase actual pupil attendance, as compared with monthly
enrollment in the school.
   (2) For secondary schools, increase graduation rates as described
in Section 52055.640.
   SEC. 322.    Article 4 (commencing with Section
52056) of Chapter 6.1 of Part 28 of   Division 4 of Title 2
of the   Education Code   is repealed. 
   SEC. 323.    Article 3.8 (commencing with Section
52060) is added to Chapter 6.1 of Part 28   of Division 4 of
Title 2 of the   Education Code   , to read: 


      Article 3.8.  Local Control and Accountability Plans


   52060.  (a) The governing board of each school district shall
adopt a local control and accountability plan using a template
adopted by the state board.
   (b) A local control and accountability plan adopted by a governing
board of a school district shall be effective for a period of at
least one year but no longer than five years. If a governing board of
a school district adopts a plan that would be effective for a period
longer than one year, the governing board must approve an update to
the existing plan at least annually.
   (c) On or before July 1 of each fiscal year, a governing board of
a school district shall take action on a local control and
accountability plan for the subsequent fiscal year, either by
adopting a new local control and accountability plan or by approving
an update to a plan the governing board of the school district has
previously adopted.
   (d) A governing board of a school district shall update the local
control and accountability plan if the governing board of the school
district determines that changes in the composition of the base
Academic Performance Index require the school district to take
specific actions and use strategies that are not already included in
the plan to meet the Academic Performance Index growth target for
each school in the school district. If the governing board of the
school district determines that an update is necessary, the governing
board of the school district shall approve the update by November 1
of the year in which the new base Academic Performance Index is
released.
   (e) A governing board of a school district shall demonstrate that
a local control and accountability plan approved by the governing
board of the school district was developed in consultation with
teachers, principals, administrators, other school personnel,
parents, and pupils.
   (f) A governing board of a school district shall ensure that a
local control and accountability plan is consistent with all school
plans submitted pursuant to Section 64001 by a school district for
schools within the school district.
   (g) Before adopting a local control and accountability plan or
approving an update to an existing plan, a governing board of a
school district shall hold at least one public hearing to solicit
recommendations and opinions of members of the public regarding
specific actions and strategies that should be included in the plan.
The agenda for the public hearing shall be posted at least 72 hours
before the public hearing and shall include the location where the
local control and accountability plan will be available for public
inspection. This public hearing shall be held at the same meeting as
the public hearing required by paragraph (1) of subdivision (a) of
Section 42127.
   (h) A governing board of a school district shall notify members of
the public, using the most efficient method possible, of the
opportunity to submit written recommendations and opinions regarding
specific actions and strategies that should be included in the local
control and accountability plan. This subdivision shall not be
interpreted to require a school district to produce printed notices
or to send notices by mail.
   (i) A governing board of a school district shall adopt a local
control and accountability plan in a public meeting. This meeting
shall be held after, but not on the same day as, the public hearing
held pursuant to subdivision (g). This meeting shall be the same
meeting during which the governing board of the school district
considers a budget pursuant to paragraph (2) of subdivision (a) of
Section 42127.
   (j) A governing board of a school district may adopt a revised
local control and accountability plan if the governing board of the
school district is required to adopt a revised budget. A revised
local control and accountability plan shall be adopted at the same
meeting that a revised budget is adopted.
   52061.  (a) Not later than five days after adoption of a local
control and accountability plan or approval of an update to an
existing plan pursuant to Section 52060, the governing board of a
school district shall file the plan with the county superintendent of
schools. The plan shall be filed on the same day that the governing
board of the school district files the budget pursuant to paragraph
(2) of subdivision (a) of Section 42127.
   (b) The county superintendent of schools shall do all of the
following:
   (1) Examine if the plan adheres to the template adopted by the
state board pursuant to Section 52066 and includes all of the
components identified in subdivision (a) of Section 52064.
   (2) Determine if the budget for the subsequent fiscal year adopted
by the governing board of the school district includes expenditures
sufficient to implement the specific actions and strategies included
in the local control and accountability plan adopted by the governing
board of the school district, based on the projections of the costs
included in the plan.
   (3) In making the determinations pursuant to paragraphs (1) and
(2), consider input from teachers, principals, administrators, other
school personnel, parents, and pupils from the school district.
   52062.  (a) Each county superintendent of schools shall develop,
and each county board of education shall adopt, a local control and
accountability plan using a template adopted by the state board.
   (b) A local control and accountability plan adopted by a county
board of education shall be effective for a period of at least one
year but no longer than five years. If a county board of education
adopts a plan that would be effective for a period longer than one
year, the county board of education must approve an update to the
plan at least annually.
   (c) On or before July 1 of each fiscal year, a county board of
education shall take action on a local control and accountability
plan for the subsequent fiscal year, either by adopting a new local
control and accountability plan or by approving an update to a plan
the county board of education has previously adopted.
   (d) A county superintendent of schools shall update and present to
the county board of education for approval the local control and
accountability plan if the county board of education determines that
changes in the composition of the base Academic Performance Index
require the county superintendent of schools to take specific actions
and use strategies that are not already included in the plan to meet
the Academic Performance Index growth target for each school
operated by the county superintendent of schools. If the county board
of education determines that an update is necessary, the county
board of education shall approve the update by November 1 of the year
in which the base Academic Performance Index is released.
   (e) A county superintendent of schools shall demonstrate that a
local control and accountability plan was developed in consultation
with teachers, principals, administrators, other school personnel,
parents, and pupils. A county superintendent of schools also shall
demonstrate that the superintendents of all school districts in the
county were consulted in the development of the plan.
   (f) A local control and accountability plan shall be consistent
with all school plans submitted pursuant to Section 64001 by the
county superintendent of schools for schools operated by the county
superintendent of schools.
   (g) Before adopting a local control and accountability plan or
approving an update to an existing plan, a county board of education
shall hold at least one public hearing to solicit recommendations and
opinions of members of the public regarding specific actions and
strategies that should be included in the plan. The agenda for that
hearing shall be posted at least 72 hours before the public hearing
and shall include the location where the local control and
accountability plan will be available for public inspection. The
public hearing shall be held at the same meeting as the public
hearing required by Section 1620.
   (h) A county board of education shall notify members of the
public, using the most efficient method possible, of the opportunity
to submit written recommendations and opinions regarding specific
actions and strategies that should be included in the local control
and accountability plan. This subdivision shall not be interpreted to
require a county board of education to produce printed notices or to
send notices by mail.
   (i) A county board of education shall adopt a local control and
accountability plan in a public meeting. This meeting shall be held
after, but not on the same day as, the public hearing held pursuant
to subdivision (g). The meeting shall be the same meeting during
which a county board of education considers a budget pursuant to
Section 1620.
   (j) A county board of education may adopt a revised local control
and accountability plan if the county board of education is required
to adopt a revised budget. A revised local control and accountability
plan shall be adopted at the same meeting that a revised budget is
adopted.
   52063.  (a) No later than five days after adoption of a local
control and accountability plan or approval of an update to an
existing plan pursuant to Section 52062 by a county board of
education, the county superintendent of schools shall file the plan
with the Superintendent, the county board of supervisors, and the
county auditor. The plan shall be filed on the same day that the
county superintendent of schools files the budget pursuant to
subdivision (a) of Section 1622.
   (b) The Superintendent shall do all of the following:
   (1) Examine if the plan adheres to the template adopted by the
state board pursuant to Section 52066 and includes all of the
components identified in subdivision (a) of Section 52064.
   (2) Determine if the budget for the subsequent fiscal year adopted
by the county board of education includes expenditures sufficient to
implement the specific actions and strategies included in the local
control and accountability plan adopted by the county board of
education, based on the projections of the costs included in the
plan.
   (3) In making the determinations pursuant to paragraphs (1) and
(2), consider input from teachers, principals, administrators, other
school personnel, parents, and pupils in the county.
   52064.  (a) A local control and accountability plan adopted by a
governing board of a school district or a county board of education
shall identify goals and describe the specific actions the school
district or county superintendent of schools will take and strategies
that will be used to achieve all of the following:
   (1) Implement, for all pupils, the content standards adopted by
the state board pursuant to Sections 60605.8, 60605.10, and 60605.11.

   (2) Increase the Academic Performance Index for each school and
for each numerically significant pupil subgroup pursuant to Section
52052 and reduce gaps in the Academic Performance Index and other
measures of pupil achievement between numerically significant pupil
subgroups.
   (3) Improve pupil achievement of the content standards adopted by
the state board pursuant to Sections 60605, 60605.2, 60605.3,
60605.8, and 60605.85, at all grade levels, as evidenced by the
results of statewide assessments pursuant to Article 4 (commencing
with Section 60640) of Chapter 5 of Part 33, other statewide
assessments, and appropriate local assessments.
   (4) Increase high school graduation rates, if a school district or
a county superintendent of schools enrolls high school pupils,
increase attendance rates, and reduce dropout rates.
   (5) Increase the percentage of pupils who have successfully
completed each of the following:
   (A) Courses that satisfy the requirements for entrance to the
University of California and the California State University.
   (B) Advanced placement courses.
   (C) Career technical education programs.
   (6) Identify and address needs of pupils, and schools
predominantly serving pupils, who meet any of the following
definitions:
   (A) Pupils who have been classified as an English learner pursuant
to Section 52164.
   (B) Pupils who qualify for the free and reduced-price meal program
pursuant to Section 49552.
   (C) Foster children as defined in Sections 300 and 601 of the
Welfare and Institutions Code.
   (D) Pupils enrolled in a juvenile court school operated by a
county superintendent of schools pursuant to subdivision (a) of
Section 48645.2, if applicable.
   (7) Remedy deficiencies in any school in the school district or
any school operated by the county board of education and improve
school conditions in any of the areas included in paragraphs (5),
(6), and (8) of subdivision (b) of Section 33126. This includes
ensuring access for each pupil to the following:
   (A) Sufficient textbooks and instructional materials.
   (B) Safe, clean, and adequate school facilities.
   (C) Qualified teachers.
   (8) Provide meaningful opportunities for parent involvement,
including, at a minimum, supporting effective schoolsite councils or
other structures at each school and advisory panels to the governing
board of the school district or the county board of education or, if
parents so choose, creating other processes or structures, such as
creating the role of an ombudsman for parents, to address complaints
and other issues raised by parents.
   (b) A local control and accountability plan developed by a county
superintendent of schools and approved by a county board of education
shall also include, in addition to the elements included in
subdivision (a), goals related to addressing countywide needs, and
describe specific actions and strategies to do all of the following:
   (1) Conduct effective oversight of school districts pursuant to
Article 2 (commencing with Section 1240) of Chapter 2 of Part 2 of
Division 1 of Title 1 and Chapter 6 (commencing with Section 42100)
of Part 24 of Division 3 of Title 2.
   (2) Provide support to school districts in the county, including
support related to school district operations, educational
technology, and professional development, and guidance to school
districts related to curriculum and instructional practices.
   (3) Coordinate instruction for expelled pupils pursuant to Section
48926.
   (c) A local control and accountability plan shall include an
analysis of both the following:
   (1) Pupil achievement of those pupils enrolled in schools in a
school district or schools operated by a county superintendent of
schools at the time the plan is adopted by the governing board of the
school district or the county board of education.
   (2) If a governing board of a school district or a county board of
education previously has adopted a local control and accountability
plan, progress made in implementing the goals identified in the plan
in effect immediately before the adoption of a new plan by the
governing board of the school district or the county board of
education.
   (d) For purposes of conducting the analysis required by
subdivision (c), a governing board of a school district or a county
superintendent of schools may consider qualitative information,
including reviews conducted by panels of experts during visits to
schools in the school district or schools operated by the county
office of education.
   (e) Data reported in a local control and accountability plan shall
be consistent with information reported on school accountability
report cards for schools in a school district or schools operated by
a county superintendent of schools.
   (f) A local control and accountability plan shall include
projections of the costs of implementing the specific actions and
strategies included in the plan. Expenditures that reflect these cost
projections shall be included in the budget adopted by the governing
board of the school district pursuant to Section 42127.
   (g) A local control and accountability plan adopted by a governing
board of a school district shall document all of the following:
   (1) For those fiscal years in which it is anticipated that the
school district will receive less funding than is calculated under
the local control funding formula pursuant to Section 42238.02, as
implemented by Section 42238.03, a projection of the total funding
required for the specific actions the school district will take and
strategies that will be used to implement paragraph (6) of
subdivision (a), divided by the average daily attendance of the
pupils for whom any of the definitions included in paragraph (6) of
subdivision (a) apply. This amount of funding shall not be less than
the total expenditures from the sources included in paragraphs (1) to
(3), inclusive, of subdivision (i) of Section 42238.02 during the
2012-13 fiscal year for services for pupils for whom any of the
definitions included in paragraph (6) of subdivision (a) applied
during the 2012-13 fiscal year, divided by the average daily
attendance of these students during the 2012-13 fiscal year.
   (2) For those fiscal years in which it is anticipated that the
school district will receive funding equal to or greater than the
amount calculated under the local control funding formula pursuant to
Section 42238.02, as implemented by Section 42238.03, a projection
of the total funding required for the specific actions the school
district will take and strategies that will be used to implement
paragraph (6) of subdivision (a), divided by the average daily
attendance of the pupils for which any of the definitions included in
paragraph (6) of subdivision (a). This funding shall not be less
than the supplemental grants and concentration grants the governing
board of the school district projects receiving pursuant to
subdivisions (e) and (f) of Section 42238.02, divided by the average
daily attendance of the pupils for which any of the definitions
included in paragraph (6) of subdivision (a) apply.
   (h) A local control and accountability plan adopted by a county
board of education shall document all of the following:
   (1) For those fiscal years in which it is anticipated that the
county office of education will receive less funding than is
calculated under the county local control funding formula pursuant to
Section 2574, a projection of the total funding required for the
specific actions the county superintendent of schools will take and
strategies that will be used to implement paragraph (6) of
subdivision (a), divided by the average daily attendance of the
pupils for whom any of the definitions included in paragraph (6) of
subdivision (a) apply. This amount of funding shall not be less than
the total expenditures from the sources included in paragraphs (1)
and (2) of subdivision (g) of Section 2574 during the 2012-13 fiscal
year for services for pupils for whom any of the definitions included
in paragraph (6) of subdivision (a) applied during the 2012-13
fiscal year, divided by the average daily attendance of these pupils
during the 2012-13 fiscal year.
   (2) For those fiscal years in which it is anticipated that the
county office of education will receive funding equal to or greater
than the amount calculated under the county local control funding
formula pursuant to Section 2574, a projection of the total funding
required for the specific actions the county superintendent of
schools will take and strategies that will be used to implement
paragraph (6) of subdivision (a), divided by the average daily
attendance of the pupils for which any of the definitions included in
paragraph (6) of subdivision (a) apply. This funding shall not be
less than the supplemental grants and concentration grants the county
board of education projects receiving pursuant to subdivisions (b)
and (c) of Section 2574, divided by the average daily attendance of
the pupils for which any of the definitions included in paragraph (6)
of subdivision (a) apply.
   (i) A local control and accountability plan shall account for the
funds provided to charter schools that elect to receive funding
through the school district or the county office of education
pursuant to Section 47651.
   52065.  (a) The governing body of a charter school that elects to
receive its funding directly, pursuant to Section 47651, shall adopt
a local control and accountability plan using a template adopted by
the state board.
   (b) Notwithstanding Section 52064, a local control and
accountability plan adopted by the governing body of a charter school
shall identify specific steps the charter school will take and
strategies that will be used to accomplish the goals identified in
the charter petition granted pursuant to Sections 47605, 47605.5,
47605.6, 47605.8, and 47606.
   (c) A local control and accountability plan adopted by a governing
body of a charter school shall be effective for a period of at least
one year but no longer than five years. If the governing body of the
charter school adopts a plan that would be effective for a period
longer than one year, the governing body of the charter school must
approve an update to the existing plan at least annually.
   (d) On or before July 1 of each fiscal year, a governing body of a
charter school shall take action on a local control and
accountability plan for the subsequent fiscal year, either by
adopting a new local control and accountability plan or by approving
an update to a plan the charter school has previously adopted. The
plan shall be submitted to the charter school's chartering authority
and the county superintendent of schools, or only to the county
superintendent of schools if the county board of education is the
chartering authority, on the same day that the charter school submits
its preliminary budget pursuant to paragraph (1) of subdivision (a)
of Section 47604.33.
   52066.  (a) The state board shall adopt a template for use by
school districts and a separate template for use by county
superintendents of schools that includes the elements
                                  identified in Section 52064.
   (b) The state board shall also adopt a template for use by charter
schools to satisfy the requirements of Section 52065.
   (c) The templates developed by the state board shall allow a
school district, county superintendent of schools, or charter school
to complete a single local control and accountability plan to meet
the requirements of this article and the requirements of the federal
Elementary and Secondary Act related to local educational agency
plans pursuant to Section 1112 of Subpart 1 of Part A of Title I of
Public Law 107-110. The state board shall also take steps to minimize
duplication of effort at the local level to the greatest extent
possible.
   (d) If possible, the template identified in subdivision (a) for
use by county superintendents of schools shall allow a county
superintendent of schools to develop a single local control and
accountability plan that would also satisfy the requirements of
Section 48926.
   (e) The state board shall approve the templates identified in
subdivisions (a) and (b) by January 30, 2014. Revisions to the
templates shall be approved by the state board by January 1 before
the fiscal year during which a template is to be used by a school
district, county superintendent of schools, or charter school.
   (f) The adoption of a template by the state board shall not create
a requirement for a governing board of a school district, a county
board of education, or a governing body of a charter school to submit
a local control and accountability plan to the state board, unless
otherwise required by federal law. The Superintendent shall not
require a local control and accountability plan to be submitted by a
governing board of a school district or the governing body of a
charter school. The state board may adopt a template that would
authorize a school district or a charter school to submit to the
state board only the sections of the local control and accountability
plan required by federal law.
   (g) The state board may adopt emergency regulations for purposes
of implementing this section. 
   SEC. 324.    Chapter 6.8 (commencing with Section
52080) of Part 28 of Division 4 of Title 2 of the  
Education Code   is repealed. 
   SEC. 325.    Chapter 6.9 (commencing with Section
52100) of Part 28 of Division 4 of Title 2 of the  
Education Code   is repealed. 
   SEC. 326.    Chapter 6.10 (commencing with Section
52120) of Part 28 of Division 4 of Title 2 of the  
Education Code   is repealed. 
   SEC. 327.    Chapter 7 (commencing with Section
52130) of Part 28 of Division 4 of Title 2 of the  Education
Code   is repealed. 
   SEC. 328.    Chapter 8 (commencing with Section
52200) of Part 28 of Division 4 of Title 2 of the  
Education Code   is repealed. 
   SEC. 329.    Chapter 8.3 (commencing with Section
52240) of Part 28 of Division 4 of Title 2 of the  
Education Code   is repealed. 
   SEC. 330.    Chapter 8.5 (commencing with Section
52250) of Part 28 of Division 4 of Title 2 of the  
Education Code   is repealed. 
   SEC. 331.    Chapter 8.6 (commencing with Section
52270) of Part 28 of Division 4 of Title 2 of the  
Education Code   is repealed. 
   SEC. 332.    Section 52301 of the  
Education Code  is amended to read: 
   52301.  (a)  (1)    The county
superintendent of schools of each county  , with the consent
of the state board,  may establish and maintain, or with one
or more counties may establish and maintain, a regional occupational
center, or regional occupational program, in the county to provide
education and training in career technical courses. The governing
boards of any school districts maintaining high schools in the county
may, with the consent of  the state board and of 
the county superintendent of schools, cooperate in the establishment
and maintenance of a regional occupational center or program, except
that if a school district also maintains 500 or more schools,
 its   the  governing board  of the
school district  may establish and maintain one or more regional
occupational centers or programs, without those restrictions. A
regional occupational center or program may be established by two or
more school districts maintaining high schools through the use of the
staff and facilities of a community college or community colleges
serving the same geographic area as the school districts maintaining
the high schools, with the consent of  the state board and
 the county superintendent of schools. 
   (2) 
    (b)  The establishment and maintenance of a regional
occupational center or program, by two or more school districts may
be undertaken pursuant to Article 1 (commencing with Section 6500) of
Chapter 5 of Division 7 of Title 1 of the Government Code. In a
regional occupational center or program, the functions of the county
auditor undertaken pursuant to Article 1 (commencing with Section
6500) of Chapter 5 of Division 7 of Title 1 of the Government Code
shall be performed by the county superintendent of schools in a
county in which the board of supervisors has transferred educational
functions from the county auditor to the county superintendent of
schools pursuant to Sections 42649, as added by Chapter 533 of the
Statutes of 1977, and 85265.5. If a school district or school
districts establish and maintain a regional occupational center or
program, pursuant to this chapter, the county superintendent of
schools may  , with the consent of the state board, 
establish and maintain a separate regional occupational center or
centers or program or programs. 
   (b) Notwithstanding other provisions of this section, a single
school district located in a class 1 county, as defined in Section
1205, and having an average daily attendance of 50,000 or more, or a
single school district located in a class 2 county, as defined in
Section 1205, and having an average daily attendance of 100,000 or
more, may apply to the state board through the county superintendent
of schools for permission to establish a regional occupational center
or program. Except as provided in subdivision (c), the state board
shall, within 90 days of receipt of an application, prescribe a
procedure whereby the school district may establish a center or
program in accordance with its application and in compliance with the
provisions of the State Plan for Career Technical Education. The
county superintendent of schools may supervise establishment of the
center or program.  
   (c) (1) The state board may disapprove a waiver application
submitted by a single school district pursuant to Article 3
(commencing with Section 33050) of Chapter 1 of Part 20 for
permission to establish a regional occupational center or program
which does not meet the requirements of this section if the state
board determines that the establishment of the center or program
would have an adverse effect upon existing regional occupational
centers or programs located in school districts which are contiguous
to the applicant school district.  
   (2) The state board shall establish criteria to measure adverse
effect. The criteria shall include, but not be limited to, hardship
on (A) school districts operating regional occupational centers or
programs which are contiguous to the applicant school district and
(B) students of school districts operating regional occupational
centers or programs that are contiguous to the applicant school
district. 
    (d)     Notwithstanding
any other provision of law, any regional occupational center or
program operated by a single school district under Section 33050
shall be granted permanent status if the single school district has
previously been granted two waivers from the state board to operate a
single school district regional occupational center or program and
the single school district maintains at least three but not more than
five comprehensive high schools within the school district. The
revenue limit for a regional occupational center or program
established under this subdivision shall be the lower of either: (1)
the revenue limit under which the center or program operates as of
January 1, 1985, or (2) the revenue limit of the school district as
of January 1, 1985, except that this revenue limit shall be subject
to annual percentage cost-of-living adjustments provided for regional
occupational centers and programs.  The governing board of
the school district shall retain authority to decide whether or not
to operate the regional occupational center or program  under
this subdivision  .
   SEC. 333.    Section 52301.3 of the   
 Education Code   is repealed.  
   52301.3.  Notwithstanding subdivision (d) of Section 52301, the
State Board of Education may grant permanent status to the Kern Union
High School District to operate a single district regional
occupational center or program, if that status is requested in
writing by the county superintendent of schools of Kern County and
the governing board of the Kern Union High School District. 

   SEC. 334.    Section 52302 of the  
Education Code   is amended to read: 
   52302.  (a)  On or before July 1, 2010, the  
The  governing board of each regional occupational center or
program shall ensure that at least 90 percent of all state-funded
courses offered by the center or program, in occupational areas in
which both the program or center and the community college offer
instruction, are part of occupational course sequences that target
comprehensive skills. Each occupational sequence shall do all of the
following:
   (1) Result in an occupational skill certificate developed in
cooperation with the appropriate employer advisory board created
under Section 52302.2.
   (2) Provide prerequisite courses that are needed to enter
apprenticeship or postsecondary vocational certificate or degree
programs. Where possible, sequenced courses shall be linked to
certificate and degree programs in the region.
   (3) Focus on occupations requiring comprehensive skills leading to
high entry-level wages or the possibility of significant wage
increases after a few years on the job, or both.
   (4) Offer as many courses as possible that have been approved by
the University of California as courses meeting the "A-G" admissions
requirements.
   (b) (1)  On or before July 1, 2008, the   The
   governing board of each regional occupational
center or program shall develop a plan for establishing sequences of
courses, and certify to the department, that those sequences have
been developed, as described in subdivision (a). The board shall
consult with the superintendents of the school districts served by
the center or program and presidents of community colleges in the
area during the development of the plan.
   (2) The plan shall be presented at a public hearing by the
governing board of each school district served by the regional
occupational center or program and by the county board of education.
   (3) Community college boards with identified articulated programs
shall also review the plans in a public session.
   (4) In developing the plan, each regional occupational program or
center shall consult with school districts and community college
districts located within the region served by the program or center
and with the relevant occupational advisers and local workforce
investment board to ensure the plan meets the vocational education
needs of high school pupils in the region by providing sequences of
courses that begin with middle or high school introductory courses,
including, but not limited to, occupational skill courses provided by
high schools or regional occupational programs or centers.
   (5) The plan shall maximize the use of local, state, and federal
resources in helping high school pupils enter comprehensive skill
occupations or apprenticeship programs, or continue education in
college, or all of these, after graduating from high school.
   (6) The plan shall include strategies for filling gaps in courses
or other services needed to make the sequences effective in meeting
the needs of pupils in developing skills and attending community
college upon graduation from high school.
   (7)  Each   Commencing September 1, 2 
 008, each  center or program shall submit a copy of the
 approved  plan to the appropriate community college
or colleges in the region and the Superintendent  on or
before September 1, 2008  . Every four years after this
date, on or before July 1, each center and program shall submit an
update to the plan to the local community college or colleges
 and the Superintendent  .
   (c) As a condition of receiving federal funds provided under the
Carl D. Perkins Vocational and Applied Technology Education Act of
1998 (20 U.S.C. Sec. 2301 et seq.), or a successor of that act, and
to the extent permitted by federal law, school districts, regional
occupational centers or programs, and community college districts
shall do all of the following:
   (1) Develop course sequences that meet the requirements of this
section  according to the schedule set forth in this
paragraph.   , as follows: 
   (A)  On or before July 1, 2008, school  
School  districts, regional occupational centers or programs,
and community college districts shall have adopted an approved plan
as required under this section.
   (B)  On or before July 1, 2009, school  
School  districts, regional occupational centers or programs,
and community college districts shall have established course
sequences as required under this section that include at least
one-third of the courses offered by the regional occupational center
or program in occupational areas in which both the program or center
and the community college offer instruction.
   (C)  On or before July 1, 2010, school  
School  districts, regional occupational centers or programs,
and community college districts shall have established course
sequences as required under this section that include at least
two-thirds of the courses offered by the regional occupational center
or program in occupational areas in which both the program or center
and the community college offer instruction.
   (2) Provide pupils who are participating in vocational sequences
with information and experiences designed to increase their
postgraduation work and school options, including, but not limited
to, all of the following:
   (A) Information about the admissions requirements of the
University of California and California State University.
   (B) Information about the placement requirements of the local
community college or colleges.
   (C) Information about higher education options related to the
interests of the pupil.
   (D) Encourage visits to local colleges and universities offering
programs that allow pupils to gain additional skills and degrees in
related occupations.
   (E) Information and referrals to employers for internships, summer
employment opportunities, and employment after graduation from high
school.
   (3) School districts, regional occupational centers or programs,
and community college districts that do not develop course sequences
on or before the dates established under this subdivision  ,
and have not received a waiver under subdivision (d),  shall
enter into a corrective action plan with the department and shall
meet any timelines established by the Superintendent.
   (d) (1) The department, with the assistance of the Office of the
Chancellor of the California Community Colleges, shall meet with each
program or center and the community college or colleges in the
region  no later than the 2009-10 fiscal year  to
validate that course sequences meeting the requirements of this
section have been developed. These meetings shall be conducted using
the existing resources of the department and shall be consistent with
the standards developed pursuant to Section 51226.
   (2) The department and the office of the chancellor shall provide
technical assistance to programs or centers and community colleges
that have developed articulated sequences for less than half of the
courses offered by the program or center. 
   (3) The Superintendent may waive the requirements of subdivision
(a) for programs or centers and community colleges located in rural
areas of the state if the Superintendent finds that development of
sequences is infeasible because of the distance, travel time, or
safety between the center or program and the community college.

   SEC. 335.    Section 52302.2 of the   
 Education Code   is amended to read: 
   52302.2.  (a) The governing board of each regional occupational
center or program shall establish and maintain an employer advisory
board or boards pursuant to guidelines developed by the department.
The advisory board shall do all of the following:
   (1) Assist in the development of skill certificates that identify
the skills and knowledge that pupils completing an occupational
course sequence are expected to acquire upon completing the sequence.
The advisory board also shall recommend the measures and criteria,
and methods to evaluate whether pupils actually acquired the
identified skills and knowledge.
   (2) Review at least once a year whether pupils who are assessed as
having met the requirements for a skill certificate possess the
skills needed for success in employment in that occupation.
   (3) Review the specific occupational sequences offered by the
regional occupational center or program to train pupils for jobs that
are in demand and offer high beginning salaries or the potential for
significant wage increase after several years on the job.
   (4) Assist the regional occupational center or program in
developing internships, paid summer employment, and postgraduation
employment opportunities for pupils participating in the course
sequences.
   (5) Assist the regional occupational center or program in
identifying and creating college scholarships for pupils
participating in the course sequences.
   (b) Employer advisory boards shall be composed of representatives
of trade organizations and businesses or government agencies that
hire a significant number of employees each year and require the
skills and knowledge that are taught in the course sequence or
sequences in that occupational area, as well as at least one
representative from a school district career technical educational
advisory committee. The department shall develop regulations guiding
the establishment of these boards.
   (c) Regional occupational centers or programs operated in a rural
county  of the sixth, seventh, or eighth class  may
designate a local business or industry organization as the advisory
board and consult with the leadership of the local business or
industry organization to determine skill needs in the region and
emerging job market needs. For purposes of this section, the local
business organization may be designated as the advisory board for the
regional occupational center or program.
   SEC. 336.    Section 52302.8 of the   
 Education Code   is amended to read: 
   52302.8.  (a) The Legislature hereby finds and declares that
vocational training resources that are provided through regional
occupational centers and programs are an essential component of the
state's secondary school system and the local system of providing
occupational skills training to high school pupils. For this reason,
the Legislature finds and declares that these resources should be
focused primarily on the needs of pupils enrolled in high school.

   (b) For the 2008-09 fiscal year, a regional occupational center or
program may claim no more than 50 percent of the state-funded
average daily attendance for which the center or program is eligible,
for services provided to students who are not enrolled in grades 9
to 12, inclusive.  
   (c) For the 2009-10 fiscal year, a regional occupational center or
program may claim no more than 30 percent of the state-funded
average daily attendance for which the center or program is eligible,
for services provided to students who are not enrolled in grades 9
to 12, inclusive.  
   (d) For the 2011-12 fiscal year and every fiscal year thereafter,
a regional occupational center or program may claim no more than 10
percent of the state-funded average daily attendance for which the
center or program is eligible, for services provided to students who
are not enrolled in grades 9 to 12, inclusive, and up to an
additional 5 percent for CalWORKs, Temporary Assistance Program, or
Job Corps participants and participants under the federal Workforce
Investment Act of 1998 (29 U.S.C. Sec. 2810 et seq.) who are enrolled
in Intensive Training services.  
   (e) 
    (b)  Pupils who are CalWORKs, Temporary Assistance
Program, or Job Corps participants shall have priority for service
 within the percentage limits established under subdivision
(d)  . 
   (f) Notwithstanding subdivision (d), a regional occupational
center or program may claim more than 15 percent of its average daily
attendance for students who are not enrolled in grades 9 to 12,
inclusive, if all of the students who are not enrolled in grades 9 to
12, inclusive, are CalWORKs, Temporary Assistance Program, or Job
Corps participants, and if the governing board of the regional
occupational center or program does all of the following: 

   (1) Meets with local human services directors, and representatives
of adult education programs, community colleges and other
institutions of higher education, to assess the needs of CalWORKs,
Temporary Assistance Program, or, Job Corps and federal Workforce
Investment Act participants to identify alternative ways to meet the
needs of these adult students.  
   (2) Enters into a transition plan, approved by the Superintendent,
to become in compliance with subdivision (d) in accordance with
benchmarks and timelines established in the transition plan.
Transition plans shall be established pursuant to guidelines issued
by the department, in consultation with the State Department of
Social Services, and shall be resubmitted and reviewed annually.
 
   (g) Notwithstanding subdivisions (b), (c), and (d), a regional
occupational center or program that claims more than 40 percent of
its students are not enrolled in grades 9 to 12, inclusive, on
January 1, 2007, shall submit a letter to the Superintendent by July
1 of each year until it complies with this subdivision, outlining the
goals of the regional occupational center or program to reduce the
number of adult students in order to comply with subdivision (d) on
or before July 1, 2013.  
   (h) Regional occupational centers and programs operated in a rural
county of the sixth, seventh, or eighth class may exceed the number
of adults by an additional 10 percent of the limits established in
subdivisions (b), (c), and (d).  
   (i) (1) For purposes of this calculation, adult average daily
attendance attributable to continuously enrolled grade 12 pupils who
have not passed the high school exit examination pursuant to Section
60851 is excluded from the calculation under this section. Amounts
that may become available from reductions resulting from the
enactment of this section shall be redirected to other regional
occupational centers or programs to serve additional secondary
pupils.  
   (2) Adult average daily attendance funding for a regional
occupational center or program that has entered into a corrective
action plan pursuant to subdivision (k) shall not be redirected to
other regional occupational centers or programs to serve additional
secondary pupils for up to three years while the regional
occupational center or program is in corrective action. 

   (j) 
    (c)  The governing boards of a community college
district and a regional occupational center or program may enter into
contractual agreements under which the center or program provides
services to adult students of the community college district affected
by this section if  both of the following are satisfied:
  the   agreements conform to state regulations
and audit requirements jointly developed by the Chancellor of the
Office of the California Community Colleges and the State Department
of Education, in consultation with, and subject to approval by, the
Department of   Finance.  
   (1) The agreements conform to state regulations and audit
requirements jointly developed by the Chancellor of the Office of the
California Community Colleges and the State Department of Education,
in consultation with, and subject to approval by, the Department of
Finance.  
   (2) A course offered for adults pursuant to an agreement entered
into pursuant to this subdivision is limited to the same cost per
student to the state as if the course were offered at the regional
occupational center or program. This subdivision does not authorize
the apportionment of funds for community colleges for adult students
in excess of the revenue limit for regional occupational centers or
programs if a course is deemed eligible for college credit. 

                                                             (k) A
regional occupational center or program that fails to meet a timeline
established under subdivision (c), (d), or (g) shall meet with the
community college, adult education program, or other adult service to
identify alternative means of meeting the needs of adult students
and shall enter into a corrective action plan administered by the
department. The corrective action plan shall be established pursuant
to guidelines issued by the department and shall be submitted to the
department annually for review. 
   SEC. 337.    Section 52302.9 of the   
 Education Code   is amended to read: 
   52302.9.  Regional occupational centers and programs may jointly
establish, operate, and share the enrollments and costs of career
technical education instruction with adult education programs offered
by school districts serving the same geographic area. These programs
shall be approved by  the State Board of Education and
 the county superintendent of schools and shall be subject
to guidelines established by the Superintendent  of Public
Instruction. These programs shall also be funded at the adult revenue
limit amount provided pursuant to Section 42238 .
   SEC. 338.    Section 52306 of the  
Education Code   is amended to read: 
   52306.  (a) Any business, commercial, trade, manufacturing, or
construction activity referred to in subdivision (c) of Section 52305
may be undertaken as part of a regional occupational center or
program provided all the following conditions have been complied
with:
   (1) Any facility or program operated pursuant to this section
shall be only for the education or training of students enrolled in a
regional occupational center or program.
   (2) The facility or program shall be operated on a nonprofit
basis, with all revenues restricted in their use to cover
instructional and operating costs.
   (3) Notwithstanding any other provision of law, the facility or
program initially shall obtain the approval of the appropriate trade
associations concerned with the activity proposed and the approval of
the county labor council in the county in which the facility or
program is located.
   (b) An activity conducted by a regional occupational center or
program, as described in subdivision (a), may be conducted without
the need to apply for or obtain local business licenses or permits,
nor shall the activity be subject to payment of local business taxes.

   Notwithstanding any other  provision of  law,
proceeds from business activities authorized in this section may,
subject to the approval of the governing board, be deposited in a
checking account or accounts by each regional occupational center or
program and disbursed for the necessary expenses of those business
activities. The account shall be established by the regional
occupational center or program and be in the custody of the principal
or other administrative official designated by the governing board
or the county superintendent of schools, as the case may be. The
principal or administrative official shall be responsible for all
expenditures therefrom, subject to regulations prescribed for this
purpose by the governing board or the county superintendent of
schools, as the case may be. An exact accounting of receipts and
disbursements shall be made to the district or county accounting
office within a reasonable period of time. The governing board or the
county superintendent of schools, as the case may be, shall provide
for an audit of these accounts on a regular basis. 
   (c) Attendance of students in any business, commercial, trade,
manufacturing, or construction activity referred to in subdivision
(c) of Section 52305, at any regional occupational center or regional
occupational program, shall be credited to that facility or program
for the purposes of apportionments from the State School Fund.

   SEC. 339.    Section 52309 of the  
Education Code   is amended to read: 
   52309.  (a) The curriculum initially provided by a regional
occupational center or regional occupational program upon commencing
operation shall be subject to the approval of the department and
shall comply with all requirements and standards set forth in the
State Plan for Career Technical Education.  The department
shall approve regional occupational centers only after giving due
consideration to career technical education opportunities offered by
community colleges serving the same geographical area. The State
Board of Education   The state board  shall adopt
rules and regulations establishing guidelines and criteria for
differentiating between courses appropriate for regional occupational
centers or regional occupational programs and those appropriate for
high schools.
   (b) The Superintendent  of Public Instruction 
shall prepare and distribute by April 1, 1977, and thereafter
maintain, a detailed handbook for use by the local educational
agencies and regional councils  established pursuant to
Section 8020  . The handbook shall contain course approval
criteria, job market study criteria, implementation plans for
administrative regulations, and procedures for securing course and
program approvals.
   (c) Notwithstanding subdivision (a), the curriculum provided by a
regional occupational center or program shall not be subject to the
approval of the department as to any curriculum that is certified, by
resolution of the governing body of the regional occupational center
or program, to comply with the course approval criteria set forth in
the handbook described in subdivision (b).
   SEC. 340.    Section 52314 of the  
Education Code   is amended to read: 
   52314.  (a) (1) Except as provided in subdivision (b), 
any  a  pupil eligible to attend a high school or
adult school in a school district subject to the jurisdiction of a
county superintendent of schools operating a regional occupational
center or regional occupational program, and who resides in a school
district which by itself or in cooperation with other school
districts, has not established a regional occupational center, or
regional occupational program, is eligible to attend a regional
occupational center or regional occupational program maintained by
the county superintendent of schools.  Any   A
 school district which in cooperation with other school
districts maintains a regional occupational center  ,
 or regional occupational program, or  any 
cooperating school districts  ,  may admit to the center,
or program, any pupil, otherwise eligible, who resides in the 
school  district or in any of the cooperating  school 
districts.  Any   A  school district which
by itself maintains a regional occupational center, or regional
occupational program, may admit to the center, or program, any pupil,
otherwise eligible, who resides in the  school  district.
 No   A  pupil, including  adults
under Section 52610   a person 18 years of age or older
or a person who is not concurrently enrolled in a regular high school
program,  shall  not  be admitted to a regional
occupational center, or regional occupational program, unless the
county superintendent of schools or governing board of the 
school  district or  school  districts maintaining the
center, or program, as the case may be, determines that the pupil
will benefit therefrom and approves of his or her admission to the
regional occupational center or regional occupational program.
   (2) Adult students shall not be enrolled in regional occupational
center or program courses during the school day on a high school
campus unless specifically authorized by the policy of the governing
board of the school district.
   (3) A pupil may be admitted on a full-time or part-time basis, as
determined by the county superintendent of schools or governing board
of the school district or districts maintaining the center, or
program, as the case may be.
   (b) A pupil is not eligible to be admitted to a regional
occupational center or program, and his or her attendance shall not
be credited to a regional occupational center or program, until he or
she has attained the age of 16 years, unless the pupil meets one or
more of the following conditions:
   (1) The pupil is enrolled in grade 11 or a higher grade.
   (2) The pupil received a referral and all of the following
conditions are met:
   (A) The pupil is referred to a regional occupational center or
program as part of a comprehensive high school plan that has been
approved by a school counselor or school administrator. The approval
of the pupil's parents or guardian may be sought but is not required.

   (B) The pupil's comprehensive high school plan requires referral
to a regional occupational center or program as part of a sequence of
vocational courses that allows the pupil to learn a comprehensive
skill occupation that culminates in earning a postsecondary
vocational certificate or diploma or its equivalent.
   (C) The pupil is enrolled in a school that maintains any of grades
9 to 12, inclusive.
   (3) The individualized education program of a pupil adopted
pursuant to the requirements of Chapter 4 (commencing with Section
56300) of Part 30 prescribes occupational training for which his or
her enrollment in a regional occupational center or program is deemed
appropriate.
   (4) The pupil is enrolled in grade 10 and has a comprehensive high
school plan that has been approved by a school counselor, and the
admission of that pupil will not result in the denial of admission or
displacement of pupils in grades 11 and 12 that would otherwise
participate in the regional occupational center or program. 
   (c) Each school district, county superintendent of schools, or
joint powers agency that maintains a regional occupational center or
regional occupational program shall submit to the department, at the
time and in the manner prescribed by the Superintendent, the
enrollment and average daily attendance for each grade level and the
enrollment and average daily attendance for each exemption set forth
in subdivision (b). 
   SEC. 341.    Section 52315 of the  
Education Code   is amended to read: 
   52315.  (a)  Any   A  visually impaired,
orthopedically impaired, or deaf person who is not enrolled in a
regular high school or community college program may attend a
regional occupational center or regional occupational program
pursuant to the requirements described in Section 52314.5. Additional
special instruction and support services shall be provided to these
persons.
   (b) If the Superintendent determines that there would be a
duplication of effort to these impaired persons if a regional
occupational center or regional occupational program provided
services to them, in that other programs exist that are available to
them, the Superintendent may disapprove of the curriculum to provide
programs to these impaired persons pursuant to Section 52309 
and of any state funding made available pursuant to Section 41897
for these purposes  .
   SEC. 342.    Section 52319 of the  Education
Code   is amended to read: 
   52319.   (a)    Whenever the establishment and
maintenance of a regional occupational center by two or more school
districts has been undertaken pursuant to an agreement entered into
in accordance with the provisions of Article 1 (commencing with
Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government
Code, and the terms of the agreement so authorize, provision may be
made for the issuance of bonds for construction and other capital
expenditure for the regional occupational center. An election shall
be called, held, and conducted in the manner provided in Chapter 3
(commencing with Section 5300) of Part 4 of Division 1 of Title 1 on
the question of the approval of the issuance of such bonds. If, at
the election, the requisite number of voters cast their ballots in
favor of the issuance of bonds, the bonds shall be issued and sold in
the manner provided by law for the issuance and sale of bonds of a
high school district. The issuance and sale of such bonds shall be
deemed to be an act of the governing board of a high school district.

   The 
    (b)     The  total amount of bonds
issued shall not exceed one-half of 1 percent of the taxable property
of the area served by the regional occupational center as shown by
the last equalized assessment roll of the county or counties which
the center serves  , and as modified pursuant to Section
41201  . 
   Bonds 
    (c)     Bonds  issued and sold
pursuant to this section shall be retired from proceeds of the tax
under the provisions of Section 52317.
   SEC. 343.    Section 52321 of the  
Education Code   is amended to read:  
   52321.  (a) (1) Commencing in the 2009-10 fiscal year, a regional
occupational center or program established and maintained by school
districts or joint powers agencies pursuant to Section 52301 shall
receive in annual operating funds directly from the county office of
education in which it is located an amount per unit of average daily
attendance equal to the revenue limit received by each of the
participating school districts for each unit of average daily
attendance generated in the regional occupational center or program
by each participating school district.
   (2) A regional occupational center or program established and
maintained by a county superintendent of schools pursuant to Section
52301 shall receive funding pursuant to Section 2550. A county
superintendent of schools shall report average daily attendance to
the Superintendent for that funding.
   (b) 
    52321.    (a)  A regional occupational center
or program may budget and accumulate an amount necessary to meet the
cashflow needs of the regional occupational center or program known
as a general reserve, and also may budget and accumulate amounts
known as the designated fund balance and as the unappropriated fund
balance. Alternatively, a regional occupational center or program may
budget and accumulate amounts necessary to meet its long-term
program needs in a separate account known as the capital outlay and
equipment replacement reserve account, and this account shall be part
of the designated fund balance. At the end of each school year, the
ending balance in the regional occupational center or program account
may be distributed to any of the general reserve, designated fund
balance, and unappropriated fund balance accounts, provided that the
combined total distributed does not exceed 15 percent of the
expenditures for the current school year.
   (1) The general reserve, the designated fund balance, including
the capital outlay and equipment replacement reserve account, and the
unappropriated fund balance shall be available for appropriation
only after approval by a majority vote of the governing body of the
regional occupational center or program.
   (2) Funds of a regional occupational center or program shall be
distributed to the capital outlay and equipment replacement reserve
account only upon adoption by the governing board of a resolution
specifying the general use to which each appropriation from the
account would be put. 
   (c) 
    (b)  (1) At the end of each school year, the combined
ending balances of the general reserve, the designated fund balance,
except the capital outlay and equipment replacement reserve account,
and the unappropriated fund balance shall not exceed 15 percent of
the expenditures for the current fiscal year.
   (2) A regional occupational center or program may accumulate, over
a period of two or more school years, an ending balance in the
capital outlay and equipment replacement reserve account of more than
15 percent of the expenditures for the current fiscal year, under
provisions of a resolution of the governing board pursuant to
paragraph (2) of subdivision  (b)   (a)  .

   (d) 
    (c)  Funds placed in either the general reserve, the
designated fund balance, including the capital outlay and equipment
replacement reserve account, or the unappropriated fund balance shall
be expended only for regional occupational center or program
educational purposes. 
   (e) Commencing in the 2007-08 fiscal year, the Superintendent
shall require an annual certification by school districts, county
superintendents of schools, and joint powers agencies that the
regional occupational center or program funds have been expended as
provided in this section. The Superintendent shall withhold from the
apportionment of a subsequent fiscal year, any ending fund balance in
excess of 15 percent of the expenditures for the year, except those
funds specifically set aside by the governing board in the capital
outlay and equipment replacement reserve account. 
   SEC. 344.    Section 52324 of the  
Education Code   is repealed.  
   52324.  Units of average daily attendance in the regional
occupational centers or regional occupational programs of a county
for a fiscal year are the quotient arising from dividing the total
number of days of pupil's attendance in the centers, or programs,
during the fiscal year by 175.
   Attendance in regional occupational centers, or regional
occupational programs, operated under subdivision (a) of Section
52305 shall be considered pupil's attendance under this section, but
attendance in regional occupational centers, or regional occupational
programs, under subdivision (b) of Section 52305 shall not be so
considered.
   As used in this section, "school district" includes each of those
districts which are cooperating in the maintenance of the center or
program, with the approval of the county superintendent of schools,
pursuant to Section 52301; and units of average daily attendance of
pupils residing in the school district shall be credited to the
school district. 
   SEC. 345.    Section 52324.5 of the   
 Education Code   is repealed.  
   52324.5.  For the purpose of crediting attendance for
apportionments from Section A of the State School Fund during the
fiscal year, any person who is concurrently enrolled in a nonpublic
high school and in a regional occupational center or program operated
under subdivision (a) of Section 52305 and maintained by a district
or districts shall be classified as a regular student enrolled in a
regular high school program, notwithstanding Section 52610.
   For the purposes of this section, a nonpublic high school is a
school which satisfies the requirements of Section 48222 if such
school is exempt from taxation under Section 214 of the Revenue and
Taxation Code, and if instruction in such school is given through
grade 12. 
   SEC. 346.    Section 52327 of the  
Education Code   is amended to read: 
   52327.  The governing board of  any   a
school  district maintaining a regional occupational center may
establish a bookstore on  school  district property for the
purpose of offering for sale textbooks, workbooks, supplementary
textbooks and workbooks, school supplies, stationery supplies,
confectionary items, and related auxiliary school supplies and
services.
   The governing board  of the school   district 
may establish a bookstore fund into which the proceeds derived from
the operation of a regional occupational center bookstore may be
transferred. Moneys in a bookstore fund shall be deposited or
invested in one or more of the following ways:
   (a) Deposits in a bank or banks, or other institution, whose
accounts are federally insured.
   (b) Investment certificates or withdrawable shares in
state-chartered savings and loan associations and savings accounts of
federal savings and loan associations, provided the associations are
doing business in this state and have their accounts insured by the
Federal Savings and Loan Insurance Corporation.
   (c) Purchase of United States securities pursuant to subdivision
(a) of Section 16430 of the Government Code.
   The governing board  of the school district  shall
designate an employee or official of the  school  district
to act as trustee for funds derived from the operation of a regional
occupational center bookstore and to receive those funds in
accordance with procedures established by the board.
   All necessary expenses, including salaries, wages and costs of
capital improvements may be deducted from the revenue of a regional
occupational center bookstore. Net proceeds from the operation of a
regional occupational center bookstore shall be used for the general
benefit of the student body as determined by the governing board 
of the school district  . Income from a regional occupational
center bookstore shall not be included in the  school 
district  revenue limit   funding allocation
 . Funds derived from the operation of a regional occupational
center bookstore shall be subject to audit pursuant to Section 41020.

   SEC. 347.    Section 52327.5 of the   
 Education Code   is amended to read: 
   52327.5.  Each governing board establishing or maintaining a
regional occupational center or program pursuant to Section 52310.5
shall meet the requirements set forth in Sections 35145, 41010,
41011, 41015, 41020, 42103, 51040, 51041,  and  51050
 , and 51056  .
   SEC. 348.    Section 52328 of the  
Education Code   is amended to read: 
   52328.   (a)     Any
  A  school district, located in whole or in part
in a county contiguous with the Republic of Mexico, or any county
superintendent of schools of a county contiguous with the Republic of
Mexico, which maintains a regional occupational center may enter
into a student exchange agreement with a trade and technical training
school located in the Republic of Mexico. Such student exchange
agreement shall permit Mexican  students  
pupils  to take all or part of their occupational training in
the regional occupational center and shall permit United States
 students   pupils  to take all or part of
their occupational training in the Mexican trade and technical
school. 
   (b) In computing the average daily attendance of the regional
occupational center, the Superintendent of Public Instruction shall
include any Mexican students in attendance if all of the following
conditions are met:  
   (1) The student exchange agreement provides as nearly as
practicable for the exchange of students on a one-for-one basis
between the regional occupational center and the trade and technical
school.  
   (2) The educational services provided the United States students
in Mexico are at least equivalent in quality to the services provided
in the regional occupational center.  
   (3) The student exchange agreement has been approved by the
Superintendent of Public Instruction prior to its operative date.
 
   (c) No average daily attendance shall be credited to the regional
occupational center for the United States students while in
attendance at the Mexican trade and technical school. 
   SEC. 349.    Section 52329 of the  
Education Code   is amended to read: 
   52329.  The governing board of a school district located in a
county, or the county superintendent of schools maintaining a
regional occupational program in a county, any of the boundaries of
which are contiguous to the State of Arizona, may enter into an
agreement with a public or private educational agency located in
 that state   the State of Arizona  to
provide to  students   pupils  living in
the  school  district and enrolled in a regional
occupational program, career technical or technical training which,
due to geographical isolation, is not otherwise available to these
 students   pupils  .
   The program of training at the public or private educational
agency  shall be approved by the Superintendent of Public
Instruction of California and  shall conform to the
California State Plan for Career Technical Education. 
   The attendance of pupils receiving career technical or technical
training at a public or private educational agency as authorized by
this section shall be included in the computation of average daily
attendance as prescribed by Sections 52324 and 52325, and shall be
credited to the county school service fund of the county of
residence. In no event, however, shall the county school service fund
be credited with more than one unit of average daily attendance per
calendar year on account of a pupil participating in a program
authorized by this section. 
   SEC. 350.    Section 52334 of the  
Education Code   is amended to read: 
   52334.   (a)    Indirect costs charged to
regional occupational centers and programs may not exceed 
that of  the school district or county office of education,
as appropriate, prior year indirect cost rate as approved by the
 State Department of Education   department
 . 
   The 
    (b)     The  indirect costs charged by
county offices of education and school districts that provide
regional occupational centers and programs services on behalf of the
county office of education or joint powers authority, when added
together, may not exceed the indirect cost rate approved by the
 State Department of Education   department
 for the county office of education or the school district,
whichever is higher. 
   Revenue limit funds apportioned to a county office of education or
school district for regional occupational centers and programs must
be expended on programs and services offered by the regional
occupational centers and programs. 
   SEC. 351.    Section 52335 of the  
Education Code   is amended to read:  
   52335.  Commencing with the 1988-89 fiscal year, funds for
regional occupational centers and programs shall be apportioned in
accordance with this article.
   For 
    52335.    For  purposes of this article, "ROC/P"
means regional occupational center or program.
               SEC. 352.    Section 52335.1 of the 
   Education Code   is repealed. 

   52335.1.  From funds appropriated in the annual Budget Act for
that purpose, the Superintendent of Public Instruction shall
apportion funds for ROC/Ps according to the following priorities:
   (a) Apportionments for necessary small ROC/Ps pursuant to Section
52324.6.
   (b) Apportionments for ROC/P revenue limits pursuant to Section
52335.2. 
   SEC. 353.    Section 52335.2 of the   
 Education Code   is repealed.  
   52335.2.  The Superintendent of Public Instruction shall calculate
a revenue limit for each ROC/P in the following manner:
   (a) Calculate a base revenue limit per unit of average attendance
for the current fiscal year as follows:
   (1) Divide the revenue limit for the prior year computed pursuant
to this section by the annual units of average daily attendance
funded in the prior year pursuant to subdivisions (c) and (d).
   (2) Increase the amount computed in paragraph (1) by the
percentage inflation adjustment specified in the Budget Act for the
current fiscal year multiplied by the statewide average ROC/P revenue
limit per unit of average daily attendance for the prior fiscal
year.
   (b) Calculate a revenue limit per unit of average daily attendance
for program growth by increasing the revenue limit per unit of
average daily attendance for program growth computed pursuant to this
subdivision for the prior fiscal year by the percentage inflation
adjustment specified in the Budget Act for the current fiscal year.
   (c) Multiply the amount computed pursuant to subdivision (a) by
the lesser of the ROC/P's annual units of average daily attendance
for the current fiscal year or the ROC/P's annual units of funded
average daily attendance for the prior fiscal year.
   (d) Subtract the ROC/P's annual units of funded average daily
attendance for the prior fiscal year from the ROC/P's annual units of
average daily attendance for the current fiscal year and multiply
the difference by the amount computed pursuant to subdivision (b). If
the product computed pursuant to this subdivision is negative, it
shall be deemed to be zero.
   (e) Except as provided in Section 52335.3, the Superintendent of
Public Instruction shall apportion to the ROC/P the sum of the
amounts computed pursuant to subdivisions (c) and (d).
   (f) The average daily attendance used for purposes of this section
shall not include the average daily attendance in schools receiving
funding pursuant to Section 52324.6.
   (g) Any state funds made available as a result of local property
tax revenues deducted pursuant to Section 52335.3 shall be allocated
to each ROC/P in an equal amount per unit of funded average daily
attendance and shall not be included in the calculation of the base
revenue limit made pursuant to subdivision (a) for the subsequent
fiscal year.
   (h) Before making the calculations described in subdivisions (c)
and (d) to determine the amount to be apportioned to each ROC/P
pursuant to subdivision (e) for the 1998-99 fiscal year, average
daily attendance for the 1997-98 fiscal year shall be adjusted by a
factor equal to the number one minus the quotient of the number of
units of that ROC/P's 1996-97 average daily attendance for absences
excused pursuant to subdivision (b) of Section 46010, as that
subdivision read on July 1, 1996, divided by that ROC/P's total
1996-97 average daily attendance. 
   SEC. 354.    Section 52335.3 of the   
 Education Code   is repealed.  
   52335.3.  The Superintendent of Public Instruction shall deduct
from the amount computed pursuant to subdivision (e) of Section
52335.2 for each ROC/P operated by a county office of education any
local revenue that would otherwise be deemed restricted and not
available for expenditure in the current fiscal year pursuant to
subdivision (e) of Section 2558. Any local revenue so deducted shall
be used by the county office for support of the ROC/P. 
   SEC. 355.    Section 52335.4 of the   
 Education Code   is repealed.  
   52335.4.  The Superintendent of Public Instruction shall determine
each ROC/P's share of funded growth average daily attendance by
computing the sum of subdivisions (a), (b), and (c):
   (a) Subtract the ROC/P's annual units of funded average daily
attendance for the prior year from the ROC/P's annual units of funded
average daily attendance for the second prior year. If the amount
computed pursuant to this subdivision is negative, it shall be deemed
to be zero.
   (b) Allocate 25 percent of the allowable growth average daily
attendance funded in the Budget Act to low participation ROC/P's,
pursuant to criteria established by the Superintendent of Public
Instruction.
   (c) (1) Subtract the statewide sum of the growth average daily
attendance computed pursuant to subdivisions (a) and (b) from the
allowable growth in average daily attendance funded in the Budget
Act. If the amount computed is negative, it shall be deemed to be
zero.
   (2) (A) Calculate the ROC/P's pro rata share of the funded growth
average daily attendance calculated pursuant to paragraph (1), based
on the prior year average daily attendance in grades 9 to 12,
inclusive, for the school districts served by the ROC/P in relation
to the total statewide prior year average daily attendance in grades
9 to 12, inclusive. For purposes of the calculation required by this
paragraph, the Superintendent of Public Instruction shall use the
average daily attendance reported for the second principal
apportionment of the prior year.
   (B) In calculating the pro rata share of funded growth average
daily attendance, the Superintendent of Public Instruction shall
ensure that each ROC/P is provided at least 10 units of allowed
growth average daily attendance pursuant to subdivisions (b) and (c).

   (d) (1) It is the intent of the Legislature that each ROC/P use
its share of funded growth average daily attendance provided pursuant
to this section to serve pupils in grades 9 to 12, inclusive, unless
the governing board or governing boards of the school district or
districts overseeing the ROC/P determine that the needs of pupils in
grades 9 to 12, inclusive, have been met.
   (2) It is the intent of the Legislature that, if a determination
is made pursuant to paragraph (1) that the needs of pupils in grades
9 to 12, inclusive, have been met, then the governing board or
governing boards of the school district or districts overseeing the
ROC/P may authorize the ROC/P to use its share of funded growth
average daily attendance provided pursuant to this section to serve
adults. 
   SEC. 356.    Section 52335.5 of the   
 Education Code   is repealed.  
   52335.5.  In the event that the funds appropriated for purposes of
this article are insufficient to fully fund the apportionments
herein authorized, the Superintendent of Public Instruction shall
reduce the amounts computed pursuant to Section 52335.2 for each
ROC/P based on equal amounts per unit of average daily attendance,
consistent with the following priorities:
   (a) First priority shall be given to fully funding average daily
attendance that is less than or equal to the average daily attendance
funded in the prior fiscal year.
   (b) Second priority shall be given to fully funding each ROC/P's
share of funded growth average daily attendance determined pursuant
to Section 52335.4.
   (c) Third priority shall be given to funding current year annual
average daily attendance that exceeds the sum of the average daily
attendance specified in subdivisions (a) and (b). 
   SEC. 357.    Section 52335.6 of the  
 Education Code   is repealed.  
   52335.6.  For purposes of allocating allowable growth average
daily attendance to low participation ROC/Ps, the Superintendent of
Public Instruction shall:
   (a) Calculate for each ROC/P the prior year average daily
attendance in grades 9 to 12, inclusive, for the school districts
served by the ROC/P.
   (b) Divide the funded average daily attendance of the ROC/P for
the prior year by the amount calculated in subdivision (a).
   (c) Divide the statewide funded ROC/P average daily attendance for
the prior year by the prior year statewide average daily attendance
in grades 9 to 12, inclusive.
   (d) For each ROC/P where the amount calculated in subdivision (b)
is less than the amount calculated in subdivision (c), calculate the
ROC/P's pro rata share of allowable growth daily attendance for low
participation ROC/Ps, based on the average daily attendance needed by
the ROC/P to be at the percentage of participation calculated in
subdivision (c) in relation to the total of average daily attendance
needed by low participation ROC/Ps for each ROC/P to be at the
percentage of participation calculated in subdivision (c). 
  SEC. 358.    Section 52335.12 of the   
 Education Code   is amended to read: 
   52335.12.  (a) As a condition of receiving  additional
funding based on average daily attendance,   state or
federal funds,  the regional occupational center or program
shall report annually to the department the academic and workforce
preparation progress of the secondary pupils enrolled in the center
or program. Indicators to measure that progress shall include, but
are not limited to, the Standardized Testing and Reporting (STAR)
Program, pursuant to Article 4 (commencing with Section 60640) of
Chapter 5 of Part 33; the high school exit examination, pursuant to
Chapter 9 (commencing with 60850) of Part 33; and other indicators of
academic and workforce preparation success, such as reduced dropout
rates, workforce preparation, increased matriculation into
postsecondary educational institutions, and other measures as
determined by the department.
   (b) This section shall become effective only when the longitudinal
data on pupils enrolled in regional occupational centers and
programs can be disaggregated from the California longitudinal pupil
achievement data system  (CALPADs)  database,
established pursuant to Chapter 10 (commencing with Section 60900) of
Part 33. 
   (c) On or before October 1, 2007, the department shall submit to
the Department of Finance a detailed proposal for the implementation
of the outcome reports required in subdivision (a). The proposal
shall identify the specific data elements to be collected and the
costs associated with the data collection and preparation of the
report. The department shall consult with the Department of Finance
and the office of the Legislative Analyst during the development of
this proposal. 
   SEC. 359.    Article 1.7 (commencing with Section
52336) of Chapter 9 of Part 28 of   Division 4 of Title 2 of
the   Education Code   is repealed. 
   SEC. 360.    Article 2 (commencing with Section
52340) of Chapter 9 of Part 28 of Division 4   of Title 2 of
the   Education Code   is repealed. 
   SEC. 361.    Article 3 (commencing with Section
52350) of Chapter 9 of Part 28 of Division 4   of Title 2 of
the   Education Code   is repealed. 
   SEC. 362.    Article 4 (commencing with Section
52370) of Chapter 9 of Part 28 of Division 4   of Title 2 of
the   Education Code   is repealed. 
   SEC. 363.    Article 4.5 (commencing with Section
52378) of Chapter 9 of Part 28 of   Division 4 of Title 2 of
the   Education Code   is repealed. 
   SEC. 364.    Article 5 (commencing with Section
52381) of Chapter 9 of Part 28 of Division 4   of Title 2 of
the   Education Code   is repealed. 
   SEC. 365.    Article 7 (commencing with Section
52450) of Chapter 9 of Part 28 of Division 4   of Title 2 of
the   Education Code   is repealed. 
   SEC. 366.    Article 7.5 (commencing with Section
52460) of Chapter 9 of Part 28 of   Division 4 of Title 2 of
the   Education Code   is repealed. 
   SEC. 367.    Article 8 (commencing with Section
52480) of Chapter 9 of Part 28 of Division 4   of Title 2 of
the   Education Code   is repealed. 
   SEC. 368.    Article 9 (commencing with Section
52485) of Chapter 9 of Part 28 of Division 4   of Title 2 of
the   Education Code   is repealed. 
   SEC. 369.    Article 1 (commencing with Section
52500) of Chapter 10 of Part 28 of Division   4 of Title 2
of the   Education Code   is repealed. 
   SEC. 370.    Article 3 (commencing with Section
52540) of Chapter 10 of Part 28 of Division   4 of Title 2
of the   Education Code   is repealed. 
   SEC. 371.    Article 4 (commencing with Section
52550) of Chapter 10 of Part 28 of Division   4 of Title 2
of the   Education Code   is repealed. 
   SEC. 372.    Article 5 (commencing with Section
52570) of Chapter 10 of Part 28 of Division   4 of Title 2
of the   Education Code   is repealed. 
   SEC. 373.    Article 6 (commencing with Section
52610) of Chapter 10 of Part 28 of Division   4 of Title 2
of the   Education Code   is repealed. 
   SEC. 374.    Chapter 10.5 (commencing with Section
52651) of Part 28 of Division 4 of Title 2 of the  
Education Code   is repealed. 
   SEC. 375.    Article 4 (commencing with Section
52750) of Chapter 11 of  Part 28 of Division   4 of
Title 2 of the   Education Code   is repealed.

   SEC. 376.    Article 1 (commencing with Section
52800) of Chapter 12 of Part 28 of Division   4 of Title 2
of the   Education Code   is repealed. 
   SEC. 377.    Chapter 13 (commencing with Section
52910) of Part 28 of Division 4 of Title 2 of the  
Education Code  is repealed. 
   SEC. 378.    Chapter 12.5 (commencing with Section
52920) of Part 28 of Division 4 of Title 2 of the  
Education Code   is repealed. 
   SEC. 379.    Chapter 17 (commencing with Section
53080) of Part 28 of Division 4 of Title 2 of the  
Education Code   is repealed. 
   SEC. 380.    Chapter 1 (commencing with Section
54000) of Part 29 of Division 4 of Title 2 of the  
Education Code   is repealed. 
   SEC. 381.    Chapter 2 (commencing with Section
54100) of Part 29 of Division 4 of Title 2 of the  
Education Code   is repealed. 
   SEC. 382.    Section 54690 of the  
Education Code   is amended to read: 
   54690.  (a) The Legislature hereby finds and declares that the
partnership academies program has proven to be a highly effective
state-school-private sector partnership, providing combined academic
and occupational training to high school pupils who present a high
risk of dropping out of school, and motivating those pupils to stay
in school and graduate. Partnership academies are functioning in high
schools across the state, with occupational education and skills
development successfully offered in California's 15 different
industry sectors, including electronics, computer technology,
finance, agribusiness, alternative energy, environmental design and
construction, graphic arts and printing, international business, and
space. Partnership academies have been honored with national awards
for excellence, and the California partnership academies have been
given high accolades in various textbooks and studies addressing
career technical education programs.
   (b) The Legislature finds the partnership academies are in the
forefront of school efforts to integrate academic and career
technical education and that they can be effective in providing an
integrated learning program and high motivation toward pursuing
skilled occupational fields to pupils at risk of dropping out of
school and to pupils not motivated by the regular educational
curriculum. Further, the Legislature finds the partnership academies
can make a very positive contribution towards meeting the needs of
the state for a highly skilled and educated workforce in the 21st
century.
   (c) Therefore, the Legislature hereby states its intent to expand
the number of partnership academies in this state's high schools,
hereafter to be known as California Partnership Academies; to broaden
the availability of these learning experiences to interested pupils
who do not meet the criteria of "at-risk" pupils; and to encourage
the establishment of academies whose occupational fields address the
needs of developing technologies.
   (d) For purposes of this article, an "at-risk" pupil means a pupil
enrolled in high school who is at risk of dropping out of school, as
indicated by at least three of the following criteria:
   (1) Past record of irregular attendance. For purposes of this
section, "irregular attendance" means absence from school 20 percent
or more of the school year.
   (2) Past record of underachievement in which the pupil is at least
one-third of a year behind the coursework for the respective grade
level, or as demonstrated by credits achieved.
   (3) Past record of low motivation or a disinterest in the regular
school program.
   (4) Disadvantaged economically.
   (5) Scoring below basic or far below basic in mathematics or
English language arts on the standardized test administered pursuant
to Article 4 (commencing with Section 60640) of Chapter 5 of Part 33.

   (6) Maintaining a grade point average of 2.2 or below, or the
equivalent of a C minus.
   (e) Up to one-half of the pupils enrolled at a partnership academy
may be pupils who do not meet the criteria of "at-risk" pupils.

   (f) The department may expend no more than 5 percent of the funds
received to carry out this article on administrative expenses.

   SEC. 383.    Section 54691 of the  
Education Code   is amended to read: 
   54691.  Commencing with the 1993-94 fiscal year, from the funds
appropriated for that purpose, the Superintendent shall issue grants
to school districts maintaining high schools that meet the
specifications of Section 54692, for purposes of planning,
establishing, and maintaining academies, as follows:
   (a) The Superintendent may issue planning grants for purposes of
planning partnership academies. The Superintendent shall ensure that
the planning grants are equitably distributed among high-wealth and
low-wealth school districts in urban, rural, and suburban areas. Each
planning grant shall be in the amount of fifteen thousand dollars
($15,000).
   (b) For the 1993-94 fiscal year, and each fiscal year thereafter,
the Superintendent may issue grants for the implementation and
maintenance of existing academies or academies planned pursuant to
subdivision (a). Implementation and maintenance grants shall be
calculated in accordance with the following schedule:
   (1) Districts operating academies may receive one thousand four
hundred dollars ($1,400) per year for each qualified pupil enrolled
in an academy during the first year of that academy's operation,
provided that no more than forty-two thousand dollars ($42,000) may
be granted to any one academy for the initial year.
   (2) Districts operating academies may receive one thousand two
hundred dollars ($1,200) for each qualified pupil enrolled in an
academy during the second year of that academy's operation, provided
that no more than seventy-two thousand dollars ($72,000) may be
granted to any one academy for the second year.
   (3) Districts operating academies may receive nine hundred dollars
($900) for each qualified pupil enrolled in an academy during the
third and following years of that academy's operation, provided that
no more than eighty-one thousand dollars ($81,000) may be granted to
any one academy for each fiscal year.
   (c) For purposes of this section, a qualified pupil 
    54691.    (a)     An academy pupil
is a pupil who is enrolled in a partnership academy for the
10th, 11th, or 12th grade, obtains 90 percent of the credits each
academic year in courses that are required for graduation, and does
any of the following:
   (1) Successfully completes a school year during the 10th grade
with an attendance record of no less than 80 percent.
   (2) Successfully completes a school year during the 11th grade
with an attendance record of no less than 80 percent.
   (3) Successfully graduates after the 12th grade.
   A pupil enrolled in an academy who successfully completes only one
semester with regard to enrollment, attendance, and credits within
the school year is considered qualified for that semester 
and the district may receive one-half of the funds specified under
subdivision (b) for that pupil  . 
   (d) 
    (b)  At the end of each school year, school districts
that  have been approved   choose  to
operate  academies   an academy  pursuant
to this article  shall certify the   are
encouraged to report  following information to the
Superintendent:
   (1) The operation of each academy in accordance with this article,
including Sections 54692 and 54694.
   (2) The number of qualified pupils enrolled during the just
completed school year, by grade level, for each academy operated by
the  school  district.
   (3) The amount of matching funds and the dollar value of in-kind
support made available to each academy in accordance with
subdivisions (a) and (b) of Section 54692. 
   (e) The Superintendent shall adjust each school district's grant
in accordance with the certification made to him or her pursuant to
subdivision (d) or in accordance with any discrepancies to the
certification that may be revealed by audit. Notwithstanding the
provisions of this section, the Superintendent may advance up to 50
percent of the funds as he or she deems appropriate to districts that
are approved to operate, or plan to operate partnership academies.
 
   (f) Funds granted to school districts pursuant to this article may
be expended without regard to fiscal year. However, the funds must
be expended for the maintenance and operation of academies. 

   SEC. 384.    Section 54692 of the  
Education Code   is amended to read:  
   54692.  In order to be eligible to receive funding pursuant to
this article, a school district shall provide all of the following:
   (a) An amount equal to a 100 percent match of all funds received
pursuant to this article in the form of direct and in-kind support
provided by the district.
   (b) An amount equal to a 100 percent match of all funds received
pursuant to this article in the form of direct and in-kind support
provided by participating companies or other private sector
organizations.
   (c) An assurance that state funds provided by the partnership
academies program shall be used only for the development, operation,
and support of partnership academies.
   (d) An assurance that each 
    54692.    A school district operating a partnership
academy is encouraged to operate an academy as follows: 
    (a)     Establish each  academy
 will be established  as a "school within a school."
Academy teachers shall work as a team in planning, teaching, and
troubleshooting program activities. Classes in the academy program
shall be limited to academy pupils as specified in subdivision (e).
Each participating school district shall establish an advisory
committee consisting of individuals involved in academy operations,
including school district and school administrators, lead teachers,
and representatives of the private sector. 
   (e) Assurance that each 
    (b)     Provide each  academy pupil
 will be provided  with the following:
   (1) Instruction in at least three academic subjects each regular
school term that prepares the pupil for a regular high school
diploma, and, where possible and appropriate, to meet the subject
requirements for admission to the California State University and the
University of California. These subjects should contribute to an
understanding of the occupational field of the academy.
   (2) Career technical education courses offered at each grade level
at the academy that are part of an occupational course sequence that
targets comprehensive skills and that does the following:
   (A) Provides career technical education in high skill occupations
of regional and local economic need.
   (B) Focuses on occupations requiring comprehensive skills leading
to higher than entry-level wages, or the possibility of significant
wage increases after a few years on the job, or both.
   (C) Provides a sequence of courses that build upon each other in
knowledge, skill development, and experience, and ends in a capstone
course that includes an internship component.
   (D) Prepares pupils for employment and postsecondary education.
Sequenced courses shall be linked to certificate and degree programs
in the region, where possible.
                                   (E) Whenever possible, prepares
pupils for industry-recognized certifications.
   (F) Whenever possible and appropriate, offers career technical
education courses that also meet the subject requirements for
admission to the California State University and the University of
California.
   (3) A class schedule that limits the attendance to the classes
required in paragraphs (1) and (2) to pupils of the academy. Whenever
possible, these classes should be block scheduled in a cluster to
provide flexibility to academy teachers. During the 12th grade the
number of academic classes may vary.
   (4) A mentor from the business community during the pupil's 11th
grade year.
   (5) An employer-based internship or work experience that occurs in
the summer following the 11th grade or during 12th grade year.
   (6) Additional motivational activities with private sector
involvement to encourage academic and occupational preparation.

   (f) Assurance that academy teachers have a 
    (c)     Provide academy teachers a
common planning period to interchange pupil and educational
information. A second planning period should be provided for the lead
teacher in addition to the normal planning period for full-time
teachers and be supported as a part of the school district's matching
funds, whenever practical.
   SEC. 385.    Section 54693 of the  
Education Code   is repealed.  
   54693.  The Superintendent of Public Instruction shall establish
eligibility criteria for school districts that apply for grants
pursuant to this article. When establishing criteria, the
superintendent shall consider the commitment and need of the
applicant district. The superintendent may consider district
indicators of need such as the number or percent of pupils in poverty
or with limited English proficiency, and the dropout rate. 

   SEC. 386.    Section 54695 of the  
Education Code   is amended to read: 
   54695.  (a) The ninth grade teachers and counselors in schools
maintained by school districts  approved to  
that  operate academies pursuant to this article shall identify
 students   pupils  eligible to participate
in an academy.
   (b) Teachers and counselors in schools maintained by school
districts  approved to   that  operate
academies pursuant to this article, business representatives, and
academy  students   pupils  of academies
that are operating in the area shall be encouraged to make
presentations to prospective  students   pupils
 and their parents.
   (c) The staff of each academy shall select  students
  pupils  from among those who have expressed an
interest in the academy and whose parents or guardians have approved
the  student's   pupil's  participation.
   SEC. 387.    Section 54699 of the  
Education Code   is amended to read:  
   54699.  (a) (1) The Controller shall annually allocate the sum of
eight million dollars ($8,000,000) from the Renewable Resource Trust
Fund established pursuant to Section 25751 of the Public Resources
Code or other related fund, upon appropriation by the Legislature, to
the Superintendent for expenditure in the form of grants to school
districts, that shall be allocated using the same criteria as
provided in Article 5 (commencing with Section 54690), except as
provided in subdivision (b) of Section 54691, and pursuant to the
additional requirements of this article.
   (2) If sufficient funds are not available to fully meet the
funding requirement of paragraph (1), for the 2010-11, 2011-12, and
2012-13 fiscal years, the Controller shall allocate the balance of
funds required to meet the funding requirement from the Alternative
and Renewable Fuel and Vehicle Technology Fund established pursuant
to Section 44273 of the Health and Safety Code, upon appropriation by
the Legislature, for expenditure in the form of grants to school
districts, that shall be allocated using the same criteria as
provided in Article 5 (commencing with Section 54690), except as
provided in subdivision (b) of Section 54691, and pursuant to the
additional requirements of this article.
   (b) The Superintendent shall award grants pursuant to this article
to school districts that do all of the following:
   (1) Meet the requirements specified in Article 5 (commencing with
Section 54690).
   (2) Propose to implement 
    54699.    (a)     School districts
may implement  a partnership academy, or  to 
maintain an existing academy, that focuses on employment in clean
technology businesses or renewable energy businesses and provides
skilled workforces for the products and services for energy or water
conservation, or both, renewable energy, pollution reduction, or
other technologies that improve the environment in furtherance of
state environmental laws. 
   (c) The Superintendent shall review grant applications submitted
by school districts in consultation with the State Energy Resources
Conservation and Development Commission.  
   (d) The Superintendent, in consultation with the State Energy
Resources Conservation and Development Commission, shall review
ongoing programs to ensure that those programs comply with
subdivision (b).  
   (e) (1) No later than 60 days after the effective date of this
article, and prior to the department issuing a request for grant
applications, the State 
    (b)     The State  Energy Resources
Conservation and Development Commission, in consultation with the
Superintendent, shall adopt guidelines  to ensure 
 so  that programs  receiving grants  
may  reflect current state energy policies and priorities as
well as provide skills and education linked to the needs of relevant
industries. 
   (2) 
    (c)  Notwithstanding any other law, any guideline
adopted pursuant to this section shall be exempt from the
requirements of Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of Title 2 of the Government Code. 
   (f) (1) The Superintendent shall give priority for grants pursuant
to this article according to the following:  
   (A) First, to school districts that propose 
    (d)     School districts are encouraged
 to establish partnership academies that are consistent with the
guidelines developed by the State Energy Resources Conservation and
Development Commission pursuant to subdivision  (e) 
 (b)  . 
   (B) Second, to school districts that propose to establish a
partnership academy at schoolsites that do not currently participate
in the partnership academies program pursuant to Article 5
(commencing with Section 54690).  
   (C) Third, to school districts that would establish a partnership
academy at schoolsites that do not currently participate in the green
partnership academies program funded pursuant to Section 32 of
Chapter 757 of the Statutes of 2008.  
   (2) Notwithstanding subparagraphs (B) and (C) of paragraph (1),
the Superintendent may assign a higher priority to a school district
that has received a grant pursuant to the green partnership academies
program funded pursuant to Section 32 of Chapter 757 of the Statutes
of 2008, subject to subdivision (d).  
   (3) The Superintendent shall award grants to a school district to
establish or operate a partnership academy pursuant to this article
in the following amounts:  
   (A) A district operating a partnership academy may receive one
thousand dollars ($1,000) per year for each qualified student
enrolled in grade 9 in an academy during the first year of that
academy's operation, except that no more than forty-five thousand
dollars ($45,000) may be granted to any one academy for the initial
year.  
   (B) A district operating a partnership academy may receive one
thousand dollars ($1,000) per year for each qualified student
enrolled in either grade 9 or 10 in an academy during the second year
of that academy's operation, except that no more than eighty
thousand dollars ($80,000) may be granted to any one academy for the
second year.  
   (C) A district operating a partnership academy may receive one
thousand dollars ($1,000) for each qualified student enrolled in any
of grades 9 to 11, inclusive, in an academy during the third year of
that academy's operation, except that no more than one hundred twenty
thousand dollars ($120,000) may be granted to any one academy for
the third year.  
   (D) A district operating a partnership academy may receive one
thousand dollars ($1,000) for each qualified student enrolled in any
of grades 9 to 12, inclusive, in an academy during the fourth and
following years of that academy's operation, except that no more than
one hundred fifty thousand dollars ($150,000) may be granted to any
one academy for each fiscal year.  
   (4) For purposes of this section, "qualified student" has the same
meaning as described in subdivision (c) of Section 54691, but shall
also include a 9th grade pupil who meets the at-risk criteria
specified in Section 54690, who is enrolled in an academy for the 9th
grade, obtains 90 percent of the credits each academic year in
courses that are required for graduation, and successfully completes
a school year during the 9th grade with an attendance record of not
less than 80 percent.  
   (g) The Superintendent shall encourage a school district that
receives a grant under this article to 
    (e)     School districts that operate a
clean technology partnership academy are encouraged to  work and
coordinate with regional occupational centers and programs for the
required career technical education sequence of courses. 
   (h) A school district may apply for planning grants, in accordance
with subdivision (a) of Section 54691, for implementing a
partnership academy pursuant to this article.  
   (i) 
    (f)  Commencing in 2014 and not later than January 1 of
each year for which this article is operative, the Superintendent, in
consultation with the State Energy Resources Conservation and
Development Commission, shall provide a report to the Legislature
that includes, but is not limited to, a description of the curriculum
and substance of the programs funded  by grants awarded
  operated  pursuant to this article. The first
annual report shall include the identification of gaps in available
curricula relating to clean technology and renewable energy that are
consistent with current state energy policy and priorities, as well
as the proportion of participating pupils who meet the at-risk
criteria enumerated in subdivision (d) of Section 54690. The report
also shall include  available  pupil participation data
 and data collected pursuant to subdivision (d) of Section
54691  . 
   (j) Up to 5 percent of the funds transferred to the Superintendent
pursuant to this article may be expended to pay the costs incurred
in the administration of this article. 
   SEC. 388.    Article 7.1 (commencing with Section
54740) of Chapter 9 of Part 29 of   Division 4 of Title 2 of
the   Education Code   is repealed. 
   SEC. 389.    Section 54750 of the  
Education Code   is amended to read: 
   54750.  (a)  Commencing with the 2009-10 school year, when
funds become available for additional partnership academies within
the total number of grants available for all partnership academies
pursuant to Section 54691, the Superintendent shall issue grants for
the establishment of partnership academies and shall give priority to
the establishment of   School districts are encouraged
to establish  partnership academies dedicated to educating
pupils in the emerging environmentally sound technologies 
until no less than one green technology partnership academy has been
established in each of the nine economic regions established by the
state  . The academies may include, but are not limited to,
technologies that educate pupils in the following areas:
   (1) Energy audits that include a determination of energy savings.
   (2) Retrofitting and weatherization activities that increase
energy efficiency and conservation.
   (3) Energy-efficient and water-efficient buildings.
   (4) Retrofitting and installing energy-efficient household
appliances, windows, doors, insulation, and lighting.
   (5) Retrofitting and installing water and energy conservation
technologies in existing homes, industrial buildings, and commercial
and public buildings, to improve efficiency, including the use of
energy and water management technologies and control systems.
   (6) The design, construction, manufacture, sale, assembly,
installation, and maintenance of energy-efficient technologies and
renewable energy facilities, or the component parts of renewable
energy technologies.
   (7) Energy-efficient technologies or practices and renewable
energy production, or the component parts of renewable energy plants
and energy distribution, including energy storage; energy
infrastructure, including transmission; transportation, including
logistics; and water and wastewater, including water conservation.
   (8) Performance and low-emission vehicle technology, automotive
computer systems, mass transit fleet conversion, and the servicing
and maintenance of those technologies.
   (9) Pollution prevention and hazardous and solid waste reduction.
   (10) Ocean, soil, or water conservation, or forestation strategies
to mitigate climate change impacts. 
   (b) (1) The selection of school districts to establish the green
technology partnership academies and the planning and development of
the green technology partnership academies shall be conducted
pursuant to the procedures and requirements established in Section
54691 for all partnership academies. The planning grants shall be
made available for academies pursuant to this article from the total
number of grants established pursuant to Section 54691. 

   (2) In the event a school district applies to convert an existing
school program to a partnership academy and meets all the criteria
for a partnership academy pursuant to Section 54692 and paragraph
(3), the department, in coordination with the Superintendent, may
provide that academy with first-year implementation funds, as
appropriate.  
   (3) (A) In order to be eligible for funding pursuant to this
article, the coursework and internship or preapprenticeship programs
of the proposed academy shall focus on the use of environmentally
sound technologies and practices. The proposed academy shall
demonstrate this through its efforts to obtain input from
environmental industry, utilities, and professional trade
organizations.  
   (B) Staff 
    (b)     A school district operating green
technology partnership academies is encouraged to provide staff 
development opportunities  also shall be included in the
academy plans  to ensure that teaching staff has the
opportunity to be educated in the use of emerging technologies and to
become familiar with new materials and current practices in the
field. 
   (c) The priority established in this section may be satisfied when
the specified number of green technology partnership academies
meeting the requirements of this article are funded by any of, or a
combination of, funds appropriated for the establishment of
partnership academies. 
   SEC. 390.    Article 7.7 (commencing with Section
54760) of Chapter 9 of Part 29 of   Division 4 of Title 2 of
the   Education Code   is repealed. 
   SEC. 391.    Section 56365 of the  
Education Code   is amended to read: 
   56365.  (a) Services provided by nonpublic, nonsectarian schools,
as defined pursuant to Section 56034, and nonpublic, nonsectarian
agencies, as defined pursuant to Section 56035, shall be made
available. These services shall be provided pursuant to Section
56366, and in accordance with Section 300.146 of Title 34 of the Code
of Federal Regulations, under contract with the local educational
agency to provide the appropriate special educational facilities,
special education, or designated instruction and services required by
the individual with exceptional needs if no appropriate public
education program is available.
   (b) Pupils enrolled in nonpublic, nonsectarian schools and
agencies under this section shall be deemed to be enrolled in public
schools for all purposes of Chapter 4 (commencing with Section 41600)
of Part 24  of Division 3  and Section  42238
  42238.02  . The local educational agency shall be
eligible to receive allowances under Articles 3 (commencing with
Section 56836.165) and 4 (commencing with Section 56836.20) of
Chapter 7.2 for services that are provided to individuals with
exceptional needs pursuant to the contract.
   (c) If the state participates in the federal program of assistance
for state-operated or state-supported programs for individuals with
exceptional needs  (P.L.   (Public Law 
89-313, Sec. 6), pupils enrolled in nonpublic, nonsectarian schools
shall be deemed to be enrolled in state-supported institutions for
all purposes of that program and shall be eligible to receive
allowances under Chapter 7.2 (commencing with Section 56836) for
supplemental services provided to individuals with exceptional needs
pursuant to a contract with a local educational agency. In order to
participate in the federal program, the state shall find that
participation will not result in any additional expenditures from the
General Fund.
   (d) The local educational agency shall pay to the nonpublic,
nonsectarian school or agency the full amount of the tuition for
individuals with exceptional needs that are enrolled in programs
provided by the nonpublic, nonsectarian school pursuant to the
contract.
   (e) Before contracting with a nonpublic, nonsectarian school or
agency outside of this state, the local educational agency shall
document its efforts to utilize public schools or to locate an
appropriate nonpublic, nonsectarian school or agency program, or
both, within the state.
   (f) If a local educational agency places a pupil with a nonpublic,
nonsectarian school or agency outside of this state, the pupil's
individualized education program team shall submit a report to the
Superintendent within 15 days of the placement decision. The report
shall include information about the special education and related
services provided by the out-of-state program placement and the costs
of the special education and related services provided, and shall
indicate the efforts of the local educational agency to locate an
appropriate public school or nonpublic, nonsectarian school or
agency, or a combination thereof, within the state. The
Superintendent shall submit a report to the board on all placements
made outside of this state.
   (g) If a local educational agency decides to place a pupil with a
nonpublic, nonsectarian school or agency outside of this state, that
local educational agency shall indicate the anticipated date for the
return of the pupil to a public or nonpublic, nonsectarian school or
agency placement, or a combination thereof, located in the state and
shall document efforts during the previous placement year to return
the pupil.
   (h) In addition to meeting the requirements of Section 56366.1, a
nonpublic, nonsectarian school or agency that operates a program
outside of this state shall be certified or licensed by that state to
provide, respectively, special education and related services and
designated instruction and related services to pupils under the
federal Individuals with Disabilities Education Act (20 U.S.C. Sec.
1400 et seq.).
   (i) A nonpublic, nonsectarian school or agency that is located
outside of this state is eligible for certification pursuant to
Section 56366.1 only if a pupil is enrolled in a program operated by
that school or agency pursuant to the recommendation of an
individualized education program team in California, and if that
pupil's parents or guardians reside in California.
   (j) In accordance with Section 300.147(b) and (c) of Title 34 of
the Code of Federal Regulations, the department shall disseminate
copies of applicable standards to each nonpublic, nonsectarian school
and nonpublic, nonsectarian agency to which a local educational
agency has referred or placed an individual with exceptional needs
and shall provide an opportunity for those nonpublic, nonsectarian
schools and nonpublic, nonsectarian agencies to participate in the
development and revision of state standards that apply to those
entities.
   SEC. 392.    Section 56366.1 of the   
 Education Code  is amended to read: 
   56366.1.  (a) A nonpublic, nonsectarian school or agency that
seeks certification shall file an application with the Superintendent
on forms provided by the department and include the following
information on the application:
   (1) A description of the special education and designated
instruction and services provided to individuals with exceptional
needs if the application is for nonpublic, nonsectarian school
certification.
   (2) A description of the designated instruction and services
provided to individuals with exceptional needs if the application is
for nonpublic, nonsectarian agency certification.
   (3) A list of appropriately qualified staff, a description of the
credential, license, or registration that qualifies each staff member
rendering special education or designated instruction and services
to do so, and copies of their credentials, licenses, or certificates
of registration with the appropriate state or national organization
that has established standards for the service rendered.
   (4) An annual operating budget.
   (5) Affidavits and assurances necessary to comply with all
applicable federal, state, and local laws and regulations that
include criminal record summaries required of all nonpublic,
nonsectarian school or agency personnel having contact with minor
children under Section 44237.
   (b) (1) The applicant shall provide the special education local
plan area in which the applicant is located with the written
notification of its intent to seek certification or renewal of its
certification. The applicant shall submit on a form, developed by the
department, a signed verification by local educational agency
representatives that they have been notified of the intent to certify
or renew certification. The verification shall include a statement
that representatives of the local educational agency for the area in
which the applicant is located have had the opportunity to review the
application at least 60 calendar days prior to submission of an
initial application to the Superintendent, or at least 30 calendar
days prior to submission of a renewal application to the
Superintendent. The signed verification shall provide assurances that
local educational agency representatives have had the opportunity to
provide input on all required components of the application.
   (2) If the applicant has not received a response from the local
educational agency 60 calendar days from the date of the return
receipt for initial applications or 30 calendar days from the date of
the return receipt for renewal applications, the applicant may file
the application with the Superintendent. A copy of the return receipt
shall be included with the application as verification of
notification efforts to the local educational agency.
   (3) The department shall mail renewal application materials to
certified nonpublic, nonsectarian schools and agencies at least 120
days  prior to   before  the date their
current certification expires.
   (c) If the applicant operates a facility or program on more than
one site, each site shall be certified.
   (d) If the applicant is part of a larger program or facility on
the same site, the Superintendent shall consider the effect of the
total program on the applicant. A copy of the policies and standards
for the nonpublic, nonsectarian school or agency and the larger
program shall be available to the Superintendent.
   (e)  Prior to   Before  certification,
the Superintendent shall conduct an onsite review of the facility and
program for which the applicant seeks certification. The
Superintendent may be assisted by representatives of the special
education local plan area in which the applicant is located and a
nonpublic, nonsectarian school or agency representative who does not
have a conflict of interest with the applicant. The Superintendent
shall conduct an additional onsite review of the facility and program
within three years of the effective date of the certification,
unless the Superintendent conditionally certifies the school or
agency or unless the Superintendent receives a formal complaint
against the school or agency. In the latter two cases, the
Superintendent shall conduct an onsite review at least annually.
   (f) The Superintendent shall make a determination on an
application within 120 days of receipt of the application and shall
certify, conditionally certify, or deny certification to the
applicant. If the Superintendent fails to take one of these actions
within 120 days, the applicant is automatically granted conditional
certification for a period terminating on August 31 of the current
school year. If certification is denied, the Superintendent shall
provide reasons for the denial. The Superintendent may certify the
school or agency for a period of not longer than one year.
   (g) Certification becomes effective on the date the nonpublic,
nonsectarian school or agency meets all the application requirements
and is approved by the Superintendent. Certification may be
retroactive if the school or agency met all the requirements of this
section on the date the retroactive certification is effective.
Certification expires on December 31 of the terminating
                            year.
   (h) The Superintendent annually shall review the certification of
each nonpublic, nonsectarian school and agency. For this purpose, a
certified school or agency annually shall update its application
between August 1 and October 31, unless the board grants a waiver
pursuant to Section 56101. The Superintendent may conduct an onsite
review as part of the annual review.
   (i) (1) The Superintendent shall conduct an investigation of a
nonpublic, nonsectarian school or agency onsite at any time without
prior notice if there is substantial reason to believe that there is
an immediate danger to the health, safety, or welfare of a child. The
Superintendent shall document the concern and submit it to the
nonpublic, nonsectarian school or agency at the time of the onsite
investigation. The Superintendent shall require a written response to
any noncompliance or deficiency found.
   (2) With respect to a nonpublic, nonsectarian school, the
Superintendent shall conduct an investigation, which may include an
unannounced onsite visit, if the Superintendent receives evidence of
a significant deficiency in the quality of educational services
provided, a violation of Section 56366.9, or noncompliance with the
policies expressed by subdivision (b) of Section 1501 of the Health
and Safety Code by the nonpublic, nonsectarian school. The
Superintendent shall document the complaint and the results of the
investigation and shall provide copies of the documentation to the
complainant, the nonpublic, nonsectarian school, and the contracting
local educational agency.
   (3) Violations or noncompliance documented pursuant to paragraph
(1) or (2) shall be reflected in the status of the certification of
the school, at the discretion of the Superintendent, pending an
approved plan of correction by the nonpublic, nonsectarian school.
The department shall retain for a period of 10 years all violations
pertaining to certification of the nonpublic, nonsectarian school or
agency.
   (j) The Superintendent shall monitor the facilities, the
educational environment, and the quality of the educational program,
including the teaching staff, the credentials authorizing service,
the standards-based core curriculum being employed, and the
standard-focused instructional materials used, of an existing
certified nonpublic, nonsectarian school or agency on a three-year
cycle, as follows:
   (1) The nonpublic, nonsectarian school or agency shall complete a
self-review in year one.
   (2) The Superintendent shall conduct an onsite review of the
nonpublic, nonsectarian school or agency in year two.
   (3) The Superintendent shall conduct a followup visit to the
nonpublic, nonsectarian school or agency in year three.
   (k) (1) Notwithstanding any other  provision of 
law, the Superintendent shall not certify a nonpublic, nonsectarian
school or agency that proposes to initiate or expand services to
pupils currently educated in the immediate prior fiscal year in a
juvenile court program, community school pursuant to Section 56150,
or other nonspecial education program, including independent study or
adult school, or both, unless the nonpublic, nonsectarian school or
agency notifies the county superintendent of schools and the special
education local plan area in which the proposed new or expanded
nonpublic, nonsectarian school or agency is located of its intent to
seek certification.
   (2) The notification shall occur no later than the December 1
 prior to   before  the new fiscal year in
which the proposed or expanding school or agency intends to initiate
services. The notice shall include the following:
   (A) The specific date upon which the proposed nonpublic,
nonsectarian school or agency is to be established.
   (B) The location of the proposed program or facility.
   (C) The number of pupils proposed for services, the number of
pupils currently served in the juvenile court, community school, or
other nonspecial education program, the current school services
including special education and related services provided for these
pupils, and the specific program of special education and related
services to be provided under the proposed program.
   (D) The reason for the proposed change in services.
   (E) The number of staff who will provide special education and
designated instruction and services and hold a current valid
California credential or license in the service rendered.
   (3) In addition to the requirements in subdivisions (a) to (f),
inclusive, the Superintendent shall require and consider the
following in determining whether to certify a nonpublic, nonsectarian
school or agency as described in this subdivision:
   (A) A complete statement of the information required as part of
the notice under paragraph (1).
   (B) Documentation of the steps taken in preparation for the
conversion to a nonpublic, nonsectarian school or agency, including
information related to changes in the population to be served and the
services to be provided pursuant to each pupil's individualized
education program.
   (4) Notwithstanding any other  provision of  law,
the certification becomes effective no earlier than July 1 if the
school or agency provided the notification required pursuant to
paragraph (1).
   (  l  ) (1) Notwithstanding any other  provision
of  law, the Superintendent shall not certify or renew the
certification of a nonpublic, nonsectarian school or agency, unless
all of the following conditions are met:
   (A) The entity operating the nonpublic, nonsectarian school or
agency maintains separate financial records for each entity that it
operates, with each nonpublic, nonsectarian school or agency
identified separately from any licensed children's institution that
it operates.
   (B) The entity submits an annual budget that identifies the
projected costs and revenues for each entity and demonstrates that
the rates to be charged are reasonable to support the operation of
the entity.
   (C) The entity submits an entitywide annual audit that identifies
its costs and revenues, by entity, in accordance with generally
accepted accounting and auditing principles. The audit shall clearly
document the amount of moneys received and expended on the education
program provided by the nonpublic, nonsectarian school.
   (D) The relationship between various entities operated by the same
entity are documented, defining the responsibilities of the
entities. The documentation shall clearly identify the services to be
provided as part of each program, for example, the residential or
medical program, the mental health program, or the educational
program. The entity shall not seek funding from a public agency for a
service, either separately or as part of a package of services, if
the service is funded by another public agency, either separately or
as part of a package of services.
   (2) For purposes of this section, "licensed children's institution"
has the same meaning as it is defined by Section 56155.5.
   (m) The school or agency shall be charged a reasonable fee for
certification. The Superintendent may adjust the fee annually
commensurate with the statewide average percentage inflation
adjustment computed for  revenue limits   local
control funding formula allocations pursuant to Section 42238.02, as
implemented by Section 42238.03,  of unified school districts
with greater than 1,500 units of average daily attendance if the
percentage increase is reflected in the  school  district
 revenue limit   local control funding formula
allocation pursuant to Section 42238.02, as implemented by Section
42238.03,  for inflation purposes. For purposes of this section,
the base fee shall be the following:
(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


   The school or agency shall pay this fee when it applies for
certification and when it updates its application for annual renewal
by the Superintendent. The Superintendent shall use these fees to
conduct onsite reviews, which may include field experts. No fee shall
be refunded if the application is withdrawn or is denied by the
Superintendent.
   (n) (1) Notwithstanding any other  provision of 
law, only those nonpublic, nonsectarian schools and agencies that
provide special education and designated instruction and services
utilizing staff who hold a certificate, permit, or other document
equivalent to that which staff in a public school are required to
hold in the service rendered are eligible to receive certification.
Only those nonpublic, nonsectarian schools or agencies located
outside of California that employ staff who hold a current valid
credential or license to render special education and related
services as required by that state shall be eligible to be certified.

   (2) The board shall develop regulations to implement this
subdivision.
   (o) In addition to meeting the standards adopted by the board, a
nonpublic, nonsectarian school or agency shall provide written
assurances that it meets all applicable standards relating to fire,
health, sanitation, and building safety.
   SEC. 393.    Section 56836.21 of the   
 Education Code   is amended to read: 
   56836.21.  (a) The department shall administer an extraordinary
cost pool to protect special education local plan areas from the
extraordinary costs associated with single placements as described in
subdivision (d). Funds shall be appropriated for this purpose in the
annual Budget Act. Special education local plan areas shall be
eligible for reimbursement from this pool in accordance with this
section.
   (b) The threshold amount for claims under this section shall be
the lesser of the following:
   (1) One percent of the allocation calculated pursuant to Section
56836.08 for the special education local plan area for the current
fiscal year for any special education local plan area that meets the
criteria in Section 56212.
   (2) The department shall calculate the average cost of a
nonpublic, nonsectarian school placement in the 1997-98 fiscal year.
This amount shall be multiplied by 2.5, then by one plus the
inflation factor computed pursuant to Section 42238.1,  as that
section read on June 30, 2013,  to obtain the alternative
threshold amount for claims in the 1998-99 fiscal year. In subsequent
fiscal years, the alternative threshold amount shall be the
alternative threshold amount for the prior fiscal year multiplied by
one plus the inflation factor computed pursuant to Section 42238.1
 , as that section read on June 30, 2013, through the 2012-13
fiscal year and commencing with the 2013-14 fiscal year, paragraph
(2) of   subdivision (d) of Section 42238.02  .
   (c) Special education local plan areas are eligible to submit
claims for costs exceeding the threshold amount on forms developed by
the department. All claims for a fiscal year shall be submitted by
November 30 following the close of the fiscal year. If the total
amount claimed by special education local plan areas exceeds the
amount appropriated, the claims shall be prorated.
   (d) Special education local plan areas are eligible to submit
claims for the costs of nonpublic, nonsectarian school placements in
excess of those in existence in the 1997-98 fiscal year and of
special education and related services for pupils who reside in
licensed children's institutions.
   SEC. 394.    Section 56836.24 of the   
 Education Code   is amended to read: 
   56836.24.  Commencing with the 1998-99 fiscal year and each year
thereafter, the  superintendent   Superintendent
 shall make the following computations to determine the amount
of funding for the purposes specified in Section 56836.23 to
apportion to each special education local plan area for the fiscal
year in which the computation is made:
   (a) For the 1998-99 fiscal year the superintendent shall make the
following computations:
   (1) Multiply the total amount of state General Fund money
allocated to the special education local plan areas in the 1997-98
fiscal year, for the purposes of Article 9 (commencing with Section
56780) of Chapter 7, as that chapter existed on December 31, 1998, by
one plus the inflation factor computed pursuant to subdivision (b)
of Section 42238.1  , as that section read on June 30, 2013,
 for the 1998-99 fiscal year.
   (2) Divide the amount calculated in paragraph (1) by the units of
average daily attendance, exclusive of average daily attendance for
absences excused pursuant to subdivision (b) of Section 46010 as that
subdivision read on July 1, 1997, reported for the special education
local plan area for the 1997-98 fiscal year.
   (3) To determine the amount to be allocated to each special
education local plan area in the 1998-99 fiscal year, the
superintendent shall multiply the amount computed in paragraph (2) by
the number of units of average daily attendance reported for the
special education local plan area for the 1998-99 fiscal year, except
that a special education local plan area designated as a necessary
small special education local plan area in accordance with Section
56212 and reporting fewer than 15,000 units of average daily
attendance for the 1998-99 fiscal year shall be deemed to have 15,000
units of average daily attendance, and no special education local
plan area shall receive less than it received in the 1997-98 fiscal
year.
   (b) For the 1999-2000 fiscal year and each fiscal year thereafter,
the  superintendent   Superintendent 
shall make the following calculations:
   (1) Multiply the amount determined in paragraph (2) of subdivision
(a) by one plus the inflation factor computed pursuant to
subdivision (b) of Section 42238.1  , as that section read on
June 30, 2013, and commencing with the 2013-14 fiscal year, paragraph
(2) of subdivisio   n (d) of Section 42238.02  for the
current fiscal year.
   (2) Multiply the amount determined in paragraph (1) by the number
of units of average daily attendance reported for the special
education local plan area for the current fiscal year, except that a
special education local plan area designated as a necessary small
special education local plan area in accordance with Section 56212
and reporting fewer than 15,000 units of average daily attendance for
the current fiscal year shall be deemed to have 15,000 units of
average daily attendance.
   SEC. 395.    Chapter 3.1 (commencing with Section
58520) of Part 31 of Division 4 of Title 2 of the  
Education Code   is repealed. 
   SEC. 396.    Chapter 5 (commencing with Section
58700) of Part 31 of Division 4 of Title 2 of the  
Education Code   is repealed. 
   SEC. 397.    Chapter 6 (commencing with Section
58800) of Part 31 of Division 4 of Title 2 of the  
Education Code   is repealed. 
   SEC. 398.    The heading of Article 7 (commencing
with Section 60117) of Chapter 1 of Part 33   of Division 4
of Title 2 of the   Education Code   is amended to
read: 

      Article 7.   Pupil Textbook and Instructional Materials
Incentive Program   Sufficiency of Instructional
Materials 


   SEC. 399.    Section 60117 of the  
Education Code   is repealed.  
   60117.  This article shall be known and may be cited as the Pupil
Textbook and Instructional Materials Incentive Program Act. 

   SEC. 400.    Section 60118 of the  
Education Code   is repealed.  
   60118.  County offices of education may, at their option, be
eligible to receive funds pursuant to this article. Allocations to
county offices of education shall be based upon prior year average
daily attendance in county operated educational programs and at the
average amount allocated to school districts per unit of average
daily attendance. For the purposes of this article, the terms
"governing board of a school district" and "governing board" are
deemed to include county boards of education. 
   SEC. 401.    Section 60119 of the  
Education Code   is amended to read: 
   60119.  (a)  In order to be eligible to receive funds
available for purposes of this article, the   The 
governing board of a school district shall take the following
actions:
   (1) (A) The governing board of a school district shall hold a
public hearing or hearings at which the governing board  of the
school district  shall encourage participation by parents,
teachers, members of the community interested in the affairs of the
school district, and bargaining unit leaders, and shall make a
determination, through a resolution, as to whether each pupil in each
school in the school district has sufficient textbooks or
instructional materials, or both, that are aligned to the content
standards adopted pursuant to Section 60605 or 60605.8 in each of the
following subjects, as appropriate, that are consistent with the
content and cycles of the curriculum framework adopted by the state
board:
   (i) Mathematics.
   (ii) Science.
   (iii) History-social science.
   (iv) English language arts, including the English language
development component of an adopted program.
   (B) The public hearing shall take place on or before the end of
the eighth week from the first day pupils attend school for that
year. A school district that operates schools on a multitrack,
year-round calendar shall hold the hearing on or before the end of
the eighth week from the first day pupils attend school for that year
on any tracks that begin a school year in August or September. For
purposes of the 2004-05 fiscal year only, the governing board of a
school district shall make a diligent effort to hold a public hearing
pursuant to this section on or before December 1, 2004.
   (C) As part of the hearing required pursuant to this section, the
governing board of a school district also shall make a written
determination as to whether each pupil enrolled in a foreign language
or health course has sufficient textbooks or instructional materials
that are consistent with the content and cycles of the curriculum
frameworks adopted by the state board for those subjects. The
governing board of a school district also shall determine the
availability of laboratory science equipment as applicable to science
laboratory courses offered in grades 9 to 12, inclusive. The
provision of the textbooks, instructional materials, or science
equipment specified in this subparagraph is not a condition of
receipt of funds provided by this subdivision.
   (2) (A) If the governing board of a school district determines
that there are insufficient textbooks or instructional materials, or
both, the governing board  of the school district  shall
provide information to classroom teachers and to the public setting
forth, in the resolution, for each school in which an insufficiency
exists, the percentage of pupils who lack sufficient
standards-aligned textbooks or instructional materials in each
subject area and the reasons that each pupil does not have sufficient
textbooks or instructional materials, or both, and take any action,
except an action that would require reimbursement by the Commission
on State Mandates, to ensure that each pupil has sufficient textbooks
or instructional materials, or both, within two months of the
beginning of the school year in which the determination is made.
   (B) In carrying out subparagraph (A), the governing board of a
school district may use moneys in any of the following funds:
   (i) Any funds available for textbooks or instructional materials,
or both,  from categorical programs, including any funds
allocated to school districts that have been appropriated in the
annual Budget Act   including any funds received
pursuant to Section 8880.5 of the Government Code  . 
   (ii) Any funds of the school district that are in excess of the
amount available for each pupil during the prior fiscal year to
purchase textbooks or instructional materials, or both. 

   (iii) 
    (ii)  Any other funds available to the school district
for textbooks or instructional materials, or both.
   (b) The governing board of a school district shall provide 10 days'
notice of the public hearing or hearings set forth in subdivision
(a). The notice shall contain the time, place, and purpose of the
hearing and shall be posted in three public places in the school
district. The hearing shall be held at a time that will encourage the
attendance of teachers and parents and guardians of pupils who
attend the schools in the school district and shall not take place
during or immediately following school hours.
   (c) (1) For purposes of this section, "sufficient textbooks or
instructional materials" means that each pupil, including English
learners, has a standards-aligned textbook or instructional
materials, or both, to use in class and to take home. This paragraph
does not require two sets of textbooks or instructional materials for
each pupil. The materials may be in a digital format as long as each
pupil, at a minimum, has and can access the same materials in the
class and to take home, as all other pupils in the same class or
course in the school district and has the ability to use and access
them at home.
   (2) Sufficient textbooks or instructional materials as defined in
paragraph (1) do not include photocopied sheets from only a portion
of a textbook or instructional materials copied to address a
shortage.
   (d) The governing board of a school district that receives funds
for instructional materials from any state source is subject to the
requirements of this section.
   (e) For the purpose of transitioning to instructional materials
that are aligned with the common core academic content standards, it
is the intent of the Legislature that textbooks, instructional
materials, and supplemental instructional materials be deemed to be
aligned with the content standards pursuant to subdivisions (a) and
(c), and be deemed consistent with the content and cycles of the
curriculum framework adopted by the state board pursuant to
subdivision (a) if the textbooks, instructional materials,
supplemental instructional materials, or a combination of any such
materials are aligned to the content standards adopted pursuant to
Section 60605 or 60605.8.
   SEC. 402.    Article 3 (commencing with Section
60240) of Chapter 2 of Part 33 of Division 4   of Title 2 of
the   Education Code   is repealed. 
   SEC. 403.    Article 7 (commencing with Section
60350) of Chapter 2 of Part 33 of Division 4   of Title 2 of
the   Education Code   is repealed. 
   SEC. 404.    Chapter 4 (commencing with Section
60500) of Part 33 of Division 4 of Title 2 of the  
Education Code   is repealed. 
   SEC. 405.    Section 60851 of the  
Education Code   is amended to read: 
   60851.  (a) Commencing with the 2003-04 school year and each
school year thereafter, each pupil completing grade 12 shall
successfully pass the high school exit examination as a condition of
receiving a diploma of graduation or a condition of graduation from
high school. Funding for the administration of the high school exit
examination shall be provided for in the annual Budget Act. The
Superintendent shall apportion funds appropriated for this purpose to
enable school districts to meet the requirements of this subdivision
and subdivisions (b), (c), and (d). The state board shall establish
the amount of funding to be apportioned per test administered, based
on a review of the cost per test.
   (b) Each pupil shall take the high school exit examination in
grade 10 beginning in the 2001-02 school year and may take the
examination during each subsequent administration, until each section
of the examination has been passed.
   (c) (1) At the parent or guardian's request, a school principal
shall submit a request for a waiver of the requirement to
successfully pass the high school exit examination to the governing
board of the school district for a pupil with a disability who has
taken the high school exit examination with modifications that alter
what the test measures and has received the equivalent of a passing
score on one or both subject matter parts of the high school exit
examination. A governing board of a school district may waive the
requirement to successfully pass one or both subject matter parts of
the high school exit examination for a pupil with a disability if the
principal certifies to the governing board of the school district
that the pupil has all of the following:
   (A) An individualized education program adopted pursuant to the
federal Individuals with Disabilities Education Act (20 U.S.C. Sec.
1400 et seq.) or a plan adopted pursuant to Section 504 of the
federal Rehabilitation Act of 1973 (29 U.S.C. Sec. 794(a)) in place
that requires the accommodations or modifications to be provided to
the pupil when taking the high school exit examination.
   (B) Sufficient high school level coursework either satisfactorily
completed or in progress in a high school level curriculum sufficient
to have attained the skills and knowledge otherwise needed to pass
the high school exit examination.
   (C) An individual score report for the pupil showing that the
pupil has received the equivalent of a passing score on the high
school exit examination while using a modification that fundamentally
alters what the high school exit examination measures as determined
by the state board.
   (2) A school district shall report to the state board, in a manner
and by a date determined by the Superintendent, the number and
characteristics of waivers reviewed, granted, and denied under this
subdivision and any additional information determined to be in
furtherance of this subdivision.
   (d) The high school exit examination shall be offered in each
public school and state special school that provides instruction in
grades 10, 11, or 12, on the dates designated by the Superintendent.
An exit examination may not be administered on any date other than
those designated by the Superintendent as examination days or makeup
days.
   (e) The results of the high school exit examination shall be
provided to each pupil taking the examination within eight weeks of
the examination administration and in time for the pupil to take any
section of the examination not passed at the next administration. A
pupil shall take again only those parts of the examination he or she
has not previously passed and may not
              retake any portion of the exit examination that he or
she has previously passed.
   (f) Supplemental instruction shall be provided to any pupil who
does not demonstrate sufficient progress toward passing the high
school exit examination. To the extent that school districts have
aligned their curriculum with the state academic content standards
adopted by the state board, the curriculum for supplemental
instruction shall reflect those standards and shall be designed to
assist the pupils to succeed on the high school exit examination.
This chapter does not require the provision of supplemental services
using resources that are not regularly available to a school or
school district, including summer school instruction 
provided pursuant to Section 37252  . In no event shall any
action taken as a result of this subdivision cause or require
reimbursement by the Commission on State Mandates. Sufficient
progress shall be determined on the basis of either of the following:

   (1) The results of the assessments administered pursuant to
Article 4 (commencing with Section 60640) of Chapter 5  of
Part 33  and the minimum levels of proficiency recommended
by the state board pursuant to Section 60648.
   (2) The grades of the pupil and other indicators of academic
achievement designated by the school district.
   SEC. 406.    Section 62002 of the  
Education Code   is repealed.  
   62002.  If the Legislature does not enact legislation to continue
a program listed in this part, the funding of that program shall
continue for the general purposes of that program as specified in the
provisions relating to the establishment and operation of the
program. The funds shall be disbursed according to the identification
criteria and allocation formulas for the program in effect on the
date the program shall cease to be operative pursuant to this part
both with regard to state-to-district and district-to-school
disbursements. The funds shall be used for the intended purposes of
the program, but all relevant statutes and regulations adopted
thereto regarding the use of the funds shall not be operative, except
as specified in Section 62002.5. 
   SEC. 407.    Section 62002.5 of the  
Education Code   is repealed.  
   62002.5.  Parent advisory committees and school site councils
which are in existence pursuant to statutes or regulations as of
January 1, 1979, shall continue subsequent to the termination of
funding for the programs sunsetted by this chapter. Any school
receiving funds from Economic Impact Aid or Bilingual Education Aid
subsequent to the sunsetting of these programs as provided in this
chapter, shall establish a school site council in conformance with
the requirements in Section 52012. The functions and responsibilities
of such advisory committees and school site councils shall continue
as prescribed by the appropriate law or regulation in effect as of
January 1, 1979. 
   SEC. 408.    Section 62003 of the  
Education Code   is repealed.  
   62003.  The Department of Education shall apportion the funds
specified in Section 62002 to school districts and shall audit the
use of such funds to ensure that such funds are expended for eligible
pupils according to the purposes for which the legislation was
originally established for such programs.
   SEC. 409.    Section 62004 of the  
Education Code   is repealed.  
   62004.  The State Auditor shall audit, on a sampling basis, school
districts' use of the funds specified in Section 62002. 
   SEC. 410.    Section 62005 of the  
Education Code   is repealed.  
   62005.  If the Superintendent of Public Instruction determines
that a school district did not comply with the provisions of this
chapter, any apportionment subsequently made pursuant to Section
62003 shall be reduced by two times the amount the superintendent
determines was not used in compliance with the provisions of this
chapter. 
   SEC. 411.    Section 62005.5 of the  
Education Code   is repealed.  
   62005.5.  Notwithstanding Section 62005, if the Superintendent of
Public Instruction determines that a school district or county
superintendent of schools fails to comply with the purposes of the
funds apportioned pursuant to Section 62003, the Superintendent of
Public Instruction may terminate the funding to that district or
county superintendent beginning with the next succeeding fiscal year.

   SEC. 412.    Section 63000 of the  
Education Code   is amended to read: 
   63000.  The provisions of this chapter shall apply to funds
received for  the following categorical programs: 
 child care and development programs pursuant to Chapter 2
(commencing with Section 8200) of Part 6 of Division 1 of Title 1.
 
   (a) Child care and development programs pursuant to Chapter 2
(commencing with Section 8200) of Part 6.  
   (b) School and Library Improvement Block Grant pursuant to Article
7 (commencing with Section 41570) of Chapter 3.2 of Part 24.
 
   (c) Bilingual education programs pursuant to Article 1 (commencing
with Section 52000) and Article 3 (commencing with Section 52160) of
Chapter 7 of Part 28.  
   (d) Economic Impact Aid programs pursuant to Chapter 1 (commencing
with Section 54000) of Part 29.  
   (e) The Miller-Unruh Basic Reading Act of 1965 pursuant to Chapter
2 (commencing with Section 54100) of Part 29.  
   (f) Compensatory education programs pursuant to Chapter 4
(commencing with Section 54400) of Part 29, except for programs for
migrant children pursuant to Article 3 (commencing with Section
54440) of Chapter 4 of Part 29. 
   SEC. 413.    Section 63001 of the  
Education Code   is amended to read: 
   63001.   Each   A  school district that,
in  any   a  fiscal year, receives
 any   an  apportionment for  any
 a  program specified in Section 63000 shall
 utilize   use  no less than 85 percent of
that apportionment at schoolsites for direct services to pupils.
 To the extent a school district chooses to transfer,
pursuant to Section 41500, up to 15 percent of School and Library
Improvement Block Grant funds, apportioned pursuant to Article 7
(commencing with Section 45170) of Chapter 3.2 of Part 24, a school
district shall utilize no less than 85 percent of the amount
remaining after the transfer for direct services to pupils. 

   SEC. 414.    Section 64000 of the  
Education Code   is amended to read: 
   64000.  (a) The provisions of this part shall apply to
applications for funds under the following categorical programs:

   (1) Bilingual education programs pursuant to Article 3 (commencing
with Section 52160) of Chapter 7 of Part 28.  
   (2) School-based coordinated categorical programs established
pursuant to Chapter 12 (commencing with Section 52800) of Part 28.
 
   (3) Economic Impact Aid programs established pursuant to Chapter 1
(commencing with Section 54000) of Part 29.  
   (4) The Miller-Unruh Basic Reading Act of 1965 pursuant to Chapter
2 (commencing with Section 54100) of Part 29.  
   (5) Compensatory education programs established pursuant to
Chapter 4 (commencing with Section 54400) of Part 29, except for
programs for migrant children pursuant to Article 3 (commencing with
Section 54440) of Chapter 4 of Part 29.  
   (6) 
    (1)  Programs providing assistance to disadvantaged
pupils under Section 6312 of Title 20 of the United States Code, and
programs providing assistance for neglected or delinquent pupils who
are at risk of dropping out of school, as funded by Section 6421 of
Title 20 of the United States Code. 
   (7) Capital expense funding, as provided by Title I of the
Improving America's Schools Act of 1994 (20 U.S.C. Sec. 1001 et
seq.).  
   (8) California Peer Assistance and Review Programs for Teachers
established pursuant to Article 4.5 (commencing with Section 44500)
of Chapter 3 of Part 25.  
   (9) 
    (2)  Professional development programs established
pursuant to Section 6601 of Title 20 of the United States Code.

   (10) Innovative Program Strategies Programs established pursuant
to Section 7303 of Title 20 of the United States Code. 

   (11) Programs established under the federal Class Size Reduction
Initiative (P.L. 106-554).  
   (12) 
    (3)  Programs for tobacco use prevention funded by
Section 7115 of Title 20 of the United States Code. 
   (13) School safety and violence prevention programs, established
pursuant to Article 3.6 (commencing with Section 32228) of Chapter 2
of Part 19.  
   (14) 
    (4)  Safe and Drug Free Schools and Communities programs
established pursuant to Section 7113 of Title 20 of the United
States Code. 
   (b) Each school district that elects to apply for any of these
state funds shall submit to the department, for approval by the state
board, a single consolidated application for approval or continuance
of those state categorical programs subject to this part. 

   (c) Each school 
    (b)     A school  district that elects
to apply for any of these federal funds may submit to the department
for approval, by the state board, a single consolidated application
for approval or continuance of those federal categorical programs
subject to this part.
   SEC. 415.    Section 7906 of the  
Government Code   is amended to read: 
   7906.  For school districts:
   (a) "ADA" means a school district's second principal apportionment
units of average daily attendance as determined pursuant to Section
 42238.5  42238.05  of the Education Code,
including average daily attendance in summer school, regional
occupational centers and programs, and apprenticeship programs, and
excluding average daily attendance in adult education programs. All
other units of average daily attendance including, but not limited
to, special day classes for special education pupils, shall be
included. 
   (1) For purposes of this subdivision, the average daily attendance
of summer school programs shall be determined pursuant to
subparagraph (F) of paragraph (1) of subdivision (a) of Section
14022.5 of the Education Code.  
   (2) 
    (1)  For purposes of this subdivision, the average daily
attendance of apprenticeship programs shall be determined pursuant
to  subparagraph (D) of paragraph (1) of subdivision (a) of
Section 14022.5   Section 79149.1  of the Education
Code. 
   (3) For the 2008-09, 2009-10, 2010-11, 2011-12, 2012-13, 2013-14,
and 2014-15 fiscal years, the 
    (2)     For the 2008-09 fiscal year and
each fiscal year thereafter, the  average daily attendance of
public school districts, including county superintendents of schools,
serving kindergarten and grades 1 to 12, inclusive, or any part
thereof, shall include the same amount of average daily attendance
for classes for supplemental instruction and regional occupational
centers and programs that was used for purposes of this section for
the 2007-08 fiscal year.
   (b) "Foundation program level" means:
   (1) For the 1978-79 fiscal year, one thousand two hundred
forty-one dollars ($1,241) for elementary school districts, one
thousand three hundred twenty-two dollars ($1,322) for unified school
districts, and one thousand four hundred twenty-seven dollars
($1,427) for high school districts.
   (2) For the 1979-80 fiscal year to the 1986-87 fiscal year,
inclusive, the levels specified in paragraph (1) increased by the
lesser of the change in cost of living or California per capita
personal income for the preceding calendar year.
   (3) For the 1986-87 fiscal year, the levels specified in paragraph
(2) increased by one hundred eighty dollars ($180) for elementary
school districts, one hundred ninety-one dollars ($191) for unified
school districts, and two hundred seven dollars ($207) for high
school districts.
   (4) For the 1987-88 fiscal year, the levels specified in paragraph
(3) increased by the lesser of the change in cost of living or
California per capita personal income for the preceding calendar
year.
   (5) For the 1988-89 fiscal year and each fiscal year thereafter,
the foundation program level shall be the appropriations limit of the
school district for the current fiscal year, plus amounts paid for
any nonreimbursed court or federal mandates imposed on or after
November 6, 1979, less the sum of the following:
   (A) Interest earned on the proceeds of taxes during the current
fiscal year.
   (B) The 50 percent of miscellaneous funds received during the
current fiscal year that are from the proceeds of taxes.
   (C) Locally voted taxes received during the current fiscal year,
such as parcel taxes or square foot taxes, unless for voter-approved
bonded debt.
   (D) Any other local proceeds of taxes received during the current
fiscal year, other than local taxes which count towards the revenue
limit, such as excess bond revenues transferred to a district's
general fund pursuant to Section 15234 of the Education Code.
   (c) "Proceeds of taxes" shall be deemed to include subventions
received from the state only if those subventions are for one of the
following two purposes:
   (1) Basic aid subventions of one hundred twenty dollars ($120) per
ADA.
   (2) Additional apportionments that, when added to the district's
local revenues as defined in Section 42238 of the Education Code, do
not exceed the foundation program level for that district. In no case
shall subventions received from the state for reimbursement of state
mandates in accordance with the provisions of Section 6 of Article
XIII B of the California Constitution or of Section 17561 or for
reimbursement of court or federal mandates imposed on or after
November 6, 1979, be considered "proceeds of taxes" for purposes of
this section.
   (d) Proceeds of taxes for a fiscal year shall not include any
proceeds of taxes within the district's beginning balance or reserve,
unless those funds were not appropriated in a prior fiscal year.
Funds that were appropriated to a reserve or other fund referenced in
Section 5 of Article XIII B of the California Constitution shall be
deemed to be appropriated for the purpose of this paragraph.
   (e) The remainder of the state apportionments, including special
purpose apportionments and categorical aid subventions shall not be
considered proceeds of taxes for a school district.
   (f) Each school district shall report to the Superintendent of
Public Instruction and to the Director of Finance at least annually
its appropriations limit, its appropriations subject to limitation,
the amount of its state aid apportionments and subventions included
within the proceeds of taxes of the school district, and amounts
excluded from its appropriations limit, at a time and in a manner
prescribed by the Superintendent of Public Instruction and approved
by the Director of Finance.
   (g) For the 1988-89 fiscal year and each fiscal year thereafter,
nothing in paragraph (2) of subdivision (c) shall be so construed as
to require that the amount determined pursuant to subdivision (b) be
multiplied by the amount determined pursuant to subdivision (a) for
purposes of determining the amount of state aid included in school
district "proceeds of taxes" for purposes of this section.
   SEC. 416.    Section 50286 of the  
Government Code   is amended to read: 
   50286.  (a) If a contract is canceled under Section 50284, the
owner shall pay a cancellation fee equal to 121/2 percent of the
current fair market value of the property , as determined by the
county assessor as though the property were free of the contractual
restriction.
   (b) The cancellation fee shall be paid to the county auditor, at
the time and in the manner that the county auditor shall prescribe,
and shall be allocated by the county auditor to each jurisdiction in
the tax rate area in which the property is located in the same manner
as the auditor allocates the annual tax increment in that tax rate
area in that fiscal year.
   (c) Notwithstanding any other  provision of  law,
revenue received by a school district pursuant to this section shall
be considered property tax revenue for  the 
purposes of Section  42238   42238.02 of the
Education Code, as implemented pursuant to   Section
42238.03  of the Education Code, and revenue received by a
county superintendent of schools pursuant to this section shall be
considered property tax revenue for  the  purposes
of Article  3   4  (commencing with Section
 2550)   2570)  of Chapter 12 of Part 2 of
Division 1 of Title 1 of the Education Code.
   SEC. 417.    Section 33492.78 of the  
Health and Safety Code   is   amended to read:

   33492.78.  (a) Section 33607.5 shall not apply to an agency
created pursuant to this article. For purposes of Sections 
42238, 84750,  42238.02, 84750.5,  and 84751 of the
Education Code, funds allocated pursuant to this section shall be
treated as if they were allocated pursuant to Section 33607.5.
   (1) This section shall apply to each redevelopment project area
created pursuant to a redevelopment plan that contains the provisions
required by Section 33670 and is created pursuant to this article.
All the amounts calculated pursuant to this section shall be
calculated after the amount required to be deposited in the Low and
Moderate Income Housing Fund pursuant to Sections 33334.2, 33334.3,
and 33334.6, as modified by Section 33492.76, has been deducted from
the total amount of tax-increment funds received by the agency in the
applicable fiscal year.
   (2) The payments made pursuant to this section shall be in
addition to any amounts the school district or districts and
community college district or districts receive pursuant to
subdivision (a) of Section 33670. The agency shall reduce its
payments pursuant to this section to an affected school or community
college district by any amount the agency has paid, directly or
indirectly, pursuant to Section 33445, 33445.5, or 33446, or any
provision of law other than this section for, or in connection with,
a public facility owned or leased by that affected school or
community college district.
   (3) (A) Of the total amount paid each year pursuant to this
section to school districts, 43.9 percent shall be considered to be
property taxes for the purposes of paragraph (1) of subdivision
 (h)   (i)  of Section  42238
  42238.02  of the Education Code, and 56.1 percent
shall not be considered to be property taxes for the purposes of
that section, and shall be available to be used for educational
facilities.
   (B) Of the total amount paid each year pursuant to this section to
community college districts, 47.5 percent shall be considered to be
property taxes for the purposes of Section  84750 
 84750.5  of the Education Code, and 52.5 percent shall not
be considered to be property taxes for the purposes of that section,
and shall be available to be used for educational facilities.
   (C) Of the total amount paid each year pursuant to this section to
county offices of education, 19 percent shall be considered to be
property taxes for the purposes of paragraph (1) of subdivision
 (h)   (g)  of Section  42238
  2574  of the Education Code, and 81 percent shall
not be considered to be property taxes for the purposes of that
section, and shall be available to be used for educational
facilities.
   (D) Of the total amount paid each year pursuant to this section to
special education, 19 percent shall be considered to be property
taxes for the purposes of paragraph (1) of subdivision  (h)
  (j)  of Section  42238  
42238.02  of the Education Code, and 81 percent shall not be
considered to be property taxes for the purposes of that section, and
shall be available to be used for educational facilities.
   (4) Local education agencies that use funds received pursuant to
this section for educational facilities shall spend these funds at
schools that are any one of the following:
   (A) Within the project area.
   (B) Attended by students from the project area.
   (C) Attended by students generated by projects that are assisted
directly by the redevelopment agency.
   (D) Determined by a local education agency to be of benefit to the
project area.
   (b) Commencing with the first fiscal year in which the agency
receives tax increments, and continuing through the last fiscal year
in which the agency receives tax increments, a redevelopment agency
created pursuant to this article shall pay to each affected school
and community college district an amount equal to the product of 25
percent times the percentage share of total property taxes collected
that are allocated to each affected school or community college
district, including any amount allocated to each district pursuant to
Sections 97.03 and 97.035 of the Revenue and Taxation Code times the
total of the tax increments received by the agency after the amount
required to be deposited in the Low and Moderate Income Housing Fund
has been deducted.
   (c) Commencing with the 11th fiscal year in which the agency
receives tax increments and continuing through the last fiscal year
in which the agency receives tax increments, a redevelopment agency
created pursuant to this article shall pay to each affected school
and community college district, in addition to the amounts paid
pursuant to subdivision (b), an amount equal to the product of 21
percent times the percentage share of total property taxes collected
that are allocated to each affected school or community college
district, including any amount allocated to each district pursuant to
Sections 97.03 and 97.035 of the Revenue and Taxation Code times the
total of the first adjusted tax increments received by the agency
after the amount required to be deposited in the Low and Moderate
Income Housing Fund has been deducted. The first adjusted tax
increments received by the agency shall be calculated by applying the
tax rate against the amount of assessed value by which the current
year assessed value exceeds the first adjusted base year assessed
value. The first adjusted base year assessed value is the assessed
value of the project area in the 10th fiscal year in which the agency
receives tax increment.
   (d) Commencing with the 31st fiscal year in which the agency
receives tax increments and continuing through the last fiscal year
in which the agency receives tax increments, a redevelopment agency
shall pay to the affected school and community college districts, in
addition to the amounts paid pursuant to subdivisions (b) and (c), an
amount equal to 14 percent times the percentage share of total
property taxes collected that are allocated to each affected school
or community college district, including any amount allocated to each
district pursuant to Sections 97.03 and 97.035 of the Revenue and
Taxation Code times the total of the second adjusted tax increments
received by the agency after the amount required to be deposited in
the Low and Moderate Income Housing Fund has been deducted. The
second adjusted tax increments received by the agency shall be
calculated by applying the tax rate against the amount of assessed
value by which the current year assessed value exceeds the second
adjusted base year assessed value. The second adjusted base year
assessed value is the assessed value of the project area in the 30th
fiscal year in which the agency receives tax increments.
   (e) (1) The Legislature finds and declares both of the following:
   (A) The payments made pursuant to this section are necessary in
order to alleviate the financial burden and detriment that affected
school and community college districts may incur as a result of the
adoption of a redevelopment plan, and payments made pursuant to this
section will benefit redevelopment project areas.
   (B) The payments made pursuant to this section are the exclusive
payments that are required to be made by a redevelopment agency to
affected school and community college districts during the term of a
redevelopment plan.
   (2) Notwithstanding any other provision of law, a redevelopment
agency shall not be required, either directly or indirectly, as a
measure to mitigate a significant environmental effect or as part of
any settlement agreement or judgment brought in any action to contest
the validity of a redevelopment plan pursuant to Section 33501, to
make any other payments to affected school or community college
districts, or to pay for public facilities that will be owned or
leased to an affected school or community college district.
   (f) As used in this section, a "local education agency" includes a
school district, a community college district, or a county office of
education.
   SEC. 418.    Section 33607.5 of the   Health
and Safety Code   is amended to read: 
   33607.5.  (a) (1) This section shall apply to each redevelopment
project area that, pursuant to a redevelopment plan which contains
the provisions required by Section 33670, is either: (A) adopted on
or after January 1, 1994, including later amendments to these
redevelopment plans; or (B) adopted prior to January 1, 1994, but
amended, after January 1, 1994, to include new territory. For plans
amended after January 1, 1994, only the tax increments from territory
added by the amendment shall be subject to this section. All the
amounts calculated pursuant to this section shall be calculated after
the amount required to be deposited in the Low and Moderate Income
Housing Fund pursuant to Sections 33334.2, 33334.3, and 33334.6 has
been deducted from the total amount of tax increment funds received
by the agency in the applicable fiscal year.
   (2) The payments made pursuant to this section shall be in
addition to any amounts the affected taxing entities receive pursuant
to subdivision (a) of Section 33670. The payments made pursuant to
this section to the affected taxing entities, including the
community, shall be allocated among the affected taxing entities,
including the community if
         the community elects to receive payments, in proportion to
the percentage share of property taxes each affected taxing entity,
including the community, receives during the fiscal year the funds
are allocated, which percentage share shall be determined without
regard to any amounts allocated to a city, a city and county, or a
county pursuant to Sections 97.68 and 97.70 of the Revenue and
Taxation Code, and without regard to any allocation reductions to a
city, a city and county, a county, a special district, or a
redevelopment agency pursuant to Sections 97.71, 97.72, and 97.73 of
the Revenue and Taxation Code and Section 33681.12. The agency shall
reduce its payments pursuant to this section to an affected taxing
entity by any amount the agency has paid, directly or indirectly,
pursuant to Section 33445, 33445.5, 33445.6, 33446, or any other
provision of law other than this section for, or in connection with,
a public facility owned or leased by that affected taxing agency,
except: (A)  any amounts the agency has paid directly or indirectly
pursuant to an agreement with a taxing entity adopted prior to
January 1, 1994; or (B)  any amounts that are unrelated to the
specific project area or amendment governed by this section. The
reduction in a payment by an agency to a school district, community
college district, or county office of education, or for special
education, shall be subtracted only from the amount that otherwise
would be available for use by those entities for educational
facilities pursuant to paragraph (4). If the amount of the reduction
exceeds the amount that otherwise would have been available for use
for educational facilities in any one year, the agency shall reduce
its payment in more than one year.
   (3) If an agency reduces its payment to a school district,
community college district, or county office of education, or for
special education, the agency shall do all of the following:
   (A) Determine the amount of the total payment that would have been
made without the reduction.
   (B) Determine the amount of the total payment without the
reduction which: (i) would have been considered property taxes; and
(ii) would have been available to be used for educational facilities
pursuant to paragraph (4).
   (C) Reduce the amount available to be used for educational
facilities.
   (D) Send the payment to the school district, community college
district, or county office of education, or for special education,
with a statement that the payment is being reduced and including the
calculation required by this subdivision showing the amount to be
considered property taxes and the amount, if any, available for
educational facilities.
   (4) (A) Except as specified in subparagraph (E), of the total
amount paid each year pursuant to this section to school districts,
43.3 percent shall be considered to be property taxes for the
purposes of paragraph (1) of subdivision (h) of Section 42238 of the
Education Code,  as it read on January 1, 2013, and paragraph (1)
of subdivision (i) of Section 42238.02 of the Education Code, 
and 56.7 percent shall not be considered to be property taxes for the
purposes of that section and shall be available to be used for
educational facilities, including, in the case of amounts paid during
the 2011-12 fiscal year through the 2015-16 fiscal year, inclusive,
land acquisition, facility construction, reconstruction, remodeling,
maintenance, or deferred maintenance.
   (B) Except as specified in subparagraph (E), of the total amount
paid each year pursuant to this section to community college
districts, 47.5 percent shall be considered to be property taxes for
the purposes of Section 84751 of the Education Code, and 52.5 percent
shall not be considered to be property taxes for the purposes of
that section and shall be available to be used for educational
facilities, including, in the case of amounts paid during the 2011-12
fiscal year through the 2015-16 fiscal year, inclusive, land
acquisition, facility construction, reconstruction, remodeling,
maintenance, or deferred maintenance.
   (C) Except as specified in subparagraph (E), of the total amount
paid each year pursuant to this section to county offices of
education, 19 percent shall be considered to be property taxes for
the purposes of Section 2558 of the Education Code,  as it read
on January 1, 2013, and Section 2574 of the Education Code,  and
81 percent shall not be considered to be property taxes for the
purposes of that section and shall be available to be used for
educational facilities, including, in the case of amounts paid during
the 2011-12 fiscal year through the 2015-16 fiscal year, inclusive,
land acquisition, facility construction, reconstruction, remodeling,
maintenance, or deferred maintenance.
   (D) Except as specified in subparagraph (E), of the total amount
paid each year pursuant to this section for special education, 19
percent shall be considered to be property taxes for the purposes of
Section 56712 of the Education Code, and 81 percent shall not be
considered to be property taxes for the purposes of that section and
shall be available to be used for education facilities, including, in
the case of amounts paid during the 2011-12 fiscal year through the
2015-16 fiscal year, inclusive, land acquisition, facility
construction, reconstruction, remodeling, maintenance, or deferred
maintenance.
   (E) If, pursuant to paragraphs (2) and (3), an agency reduces its
payments to an educational entity, the calculation made by the agency
pursuant to paragraph (3) shall determine the amount considered to
be property taxes and the amount available to be used for educational
facilities in the year the reduction was made.
   (5) Local education agencies that use funds received pursuant to
this section for school facilities shall spend these funds at schools
that are: (A) within the project area, (B) attended by students from
the project area, (C) attended by students generated by projects
that are assisted directly by the redevelopment agency, or (D)
determined by the governing board of a local education agency to be
of benefit to the project area.
   (b) Commencing with the first fiscal year in which the agency
receives tax increments and continuing through the last fiscal year
in which the agency receives tax increments, a redevelopment agency
shall pay to the affected taxing entities, including the community if
the community elects to receive a payment, an amount equal to 25
percent of the tax increments received by the agency after the amount
required to be deposited in the Low and Moderate Income Housing Fund
has been deducted. In any fiscal year in which the agency receives
tax increments, the community that has adopted the redevelopment
project area may elect to receive the amount authorized by this
paragraph.
   (c) Commencing with the 11th fiscal year in which the agency
receives tax increments and continuing through the last fiscal year
in which the agency receives tax increments, a redevelopment agency
shall pay to the affected taxing entities, other than the community
which has adopted the project, in addition to the amounts paid
pursuant to subdivision (b) and after deducting the amount allocated
to the Low and Moderate Income Housing Fund, an amount equal to 21
percent of the portion of tax increments received by the agency,
which shall be calculated by applying the tax rate against the amount
of assessed value by which the current year assessed value exceeds
the first adjusted base year assessed value. The first adjusted base
year assessed value is the assessed value of the project area in the
10th fiscal year in which the agency receives tax increment revenues.

   (d) Commencing with the 31st fiscal year in which the agency
receives tax increments and continuing through the last fiscal year
in which the agency receives tax increments, a redevelopment agency
shall pay to the affected taxing entities, other than the community
which has adopted the project, in addition to the amounts paid
pursuant to subdivisions (b) and (c) and after deducting the amount
allocated to the Low and Moderate Income Housing Fund, an amount
equal to 14 percent of the portion of tax increments received by the
agency, which shall be calculated by applying the tax rate against
the amount of assessed value by which the current year assessed value
exceeds the second adjusted base year assessed value. The second
adjusted base year assessed value is the assessed value of the
project area in the 30th fiscal year in which the agency receives tax
increments.
   (e) (1) Prior to incurring any loans, bonds, or other
indebtedness, except loans or advances from the community, the agency
may subordinate to the loans, bonds, or other indebtedness the
amount required to be paid to an affected taxing entity by this
section, provided that the affected taxing entity has approved these
subordinations pursuant to this subdivision.
   (2) At the time the agency requests an affected taxing entity to
subordinate the amount to be paid to it, the agency shall provide the
affected taxing entity with substantial evidence that sufficient
funds will be available to pay both the debt service and the payments
required by this section, when due.
   (3) Within 45 days after receipt of the agency's request, the
affected taxing entity shall approve or disapprove the request for
subordination. An affected taxing entity may disapprove a request for
subordination only if it finds, based upon substantial evidence,
that the agency will not be able to pay the debt payments and the
amount required to be paid to the affected taxing entity. If the
affected taxing entity does not act within 45 days after receipt of
the agency's request, the request to subordinate shall be deemed
approved and shall be final and conclusive.
   (f) (1) The Legislature finds and declares both of the following:
   (A) The payments made pursuant to this section are necessary in
order to alleviate the financial burden and detriment that affected
taxing entities may incur as a result of the adoption of a
redevelopment plan, and payments made pursuant to this section will
benefit redevelopment project areas.
   (B) The payments made pursuant to this section are the exclusive
payments that are required to be made by a redevelopment agency to
affected taxing entities during the term of a redevelopment plan.
   (2) Notwithstanding any other provision of law, a redevelopment
agency shall not be required, either directly or indirectly, as a
measure to mitigate a significant environmental effect or as part of
any settlement agreement or judgment brought in any action to contest
the validity of a redevelopment plan pursuant to Section 33501, to
make any other payments to affected taxing entities, or to pay for
public facilities that will be owned or leased to an affected taxing
entity.
   (g) As used in this section, a "local education agency" is a
school district, a community college district, or a county office of
education.
   SEC. 419.    Section 33684 of the   Health
and Safety Code   is amended to read: 
   33684.  (a) (1) This section shall apply to each redevelopment
project area that, pursuant to a redevelopment plan that contains the
provisions required by Section 33670, meets any of the following:
   (A) Was adopted on or after January 1, 1994, including later
amendments to these redevelopment plans.
   (B) Was adopted prior to January 1, 1994, but amended after
January 1, 1994, to include new territory. For plans amended after
January 1, 1994, only the tax increments from territory added by the
amendment shall be subject to this section.
   (C) Was adopted prior to January 1, 1994, but amended after
January 1, 1994, to increase the limitation on the number of dollars
to be allocated to the agency or that increased, or eliminated,
pursuant to paragraph (1) of subdivision (e) of Section 33333.6, the
time limit on the establishing of loans, advances, and indebtedness
established pursuant to paragraphs (1) and (2) of subdivision (a) of
Section 33333.6, as those paragraphs read on December 31, 2001, or
that lengthened the period during which the redevelopment plan is
effective if the redevelopment plan being amended contains the
provisions required by subdivision (b) of Section 33670.
   (2) This section shall apply to passthrough payments, as required
by Sections 33607.5 and 33607.7, for the 2003-04 to 2008-09,
inclusive, fiscal years. For purposes of this section, a passthrough
payment shall be considered the responsibility of an agency in the
fiscal year the agency receives the tax increment revenue for which
the passthrough payment is required.
   (3) For purposes of this section, "local educational agency" is a
school district, a community college district, or a county office of
education.
   (b) On or before October 1, 2008, each agency shall submit a
report to the county auditor and to each affected taxing entity that
describes each project area, including its location, purpose, date
established, date or dates amended, and statutory and contractual
passthrough requirements. The report shall specify, by year, for each
project area all of the following:
   (1) Gross tax increment received between July 1, 2003, and June
30, 2008, that is subject to a passthrough payment pursuant to
Sections 33607.5 and 33607.7, and accumulated gross tax increments
through June 30, 2003.
   (2) Total passthrough payments to each taxing entity that the
agency deferred pursuant to a subordination agreement approved by the
taxing agency under subdivision (e) of Section 33607.5 and the dates
these deferred payments will be made.
   (3) Total passthrough payments to each taxing entity that the
agency was responsible to make between July 1, 2003, and June 30,
2008, pursuant to Sections 33607.5 and 33607.7, excluding payments
identified in paragraph (2).
   (4) Total passthrough payments that the agency disbursed to each
taxing entity between July 1, 2003, and June 30, 2008, pursuant to
Sections 33607.5 and 33607.7.
   (5) Total sums reported in paragraph (4) for each local
educational agency that are considered to be property taxes under the
provisions of paragraph (4) of subdivision (a) of Section 33607.5
and Section 33607.7.
   (6) Total outstanding payment obligations to each taxing entity as
of June 30, 2008. This amount shall be calculated by subtracting the
amounts reported in paragraph (4) from paragraph (3) and reporting
any positive difference.
   (7) Total outstanding overpayments to each taxing entity as of
June 30, 2008. This amount shall be calculated by subtracting the
amounts reported in paragraph (3) from paragraph (4) and reporting
any positive difference.
   (8) The dates on which the agency made payments identified in
paragraph (6) or intends to make the payments identified in paragraph
(6).
   (9) A revised estimate of the agency's total outstanding
passthrough payment obligation to each taxing agency pursuant to
paragraph (6) of subdivision (b) and paragraph (6) of subdivision (c)
and the dates on which the agency intends to make these payments.
   (c) On or before October 1, 2009, each agency shall submit a
report to the county auditor and to each affected taxing entity that
describes each project area, including its location, purpose, date
established, date or dates amended, and statutory and contractual
passthrough requirements. The report shall specify, by year, for each
project area all of the following:
   (1) Gross tax increment received between July 1, 2008, and June
30, 2009, that is subject to a passthrough payment pursuant to
Sections 33607.5 and 33607.7.
   (2) Total passthrough payments to each taxing entity that the
agency deferred pursuant to a subordination agreement approved by the
taxing entity under subdivision (e) of Section 33607.5 and the dates
these deferred payments will be made.
   (3) Total passthrough payments to each taxing entity that the
agency was responsible to make between July 1, 2008, and June 30,
2009, pursuant to Sections 33607.5 and 33607.7, excluding payments
identified in paragraph (2).
   (4) Total passthrough payments that the agency disbursed to each
taxing entity between July 1, 2008, and June 30, 2009, pursuant to
Sections 33607.5 and 33607.7.
   (5) Total sums reported in paragraph (4) for each local
educational agency that are considered to be property taxes under the
provisions of paragraph (4) of subdivision (a) of Sections 33607.5
and 33607.7.
   (6) Total outstanding payment obligations to each taxing entity as
of June 30, 2009. This amount shall be calculated by subtracting the
amounts reported in paragraph (4) from paragraph (3) and reporting
any positive difference.
   (7) Total outstanding overpayments to each taxing entity as of
June 30, 2009. This amount shall be calculated by subtracting the
amounts reported in paragraph (3) from paragraph (4) and reporting
any positive difference.
   (8) The dates on which the agency made payments identified in
paragraph (6) or intends to make the payments identified in paragraph
(6).
   (d) If an agency reports pursuant to paragraph (6) of subdivision
(b) or paragraph (6) of subdivision (c) that it has an outstanding
passthrough payment obligation to any taxing entity, the agency shall
submit annual updates to the county auditor on October 1 of each
year until such time as the county auditor notifies the agency in
writing that the agency's outstanding payment obligations have been
fully satisfied. The report shall contain both of the following:
   (1) A list of payments to each taxing agency and to the
Educational Revenue Augmentation Fund pursuant to subdivision (j)
that the agency disbursed after the agency's last update filed
pursuant to this subdivision or, if no update has been filed, after
the agency's submission of the reports required pursuant to
subdivisions (b) and (c). The list of payments shall include only
those payments that address obligations identified pursuant to
paragraph (6) of subdivision (b) and paragraph (6) of subdivision
(c). The update shall specify the date on which each payment was
disbursed.
   (2) A revised estimate of the agency's total outstanding
passthrough payment obligation to each taxing agency pursuant to
paragraph (6) of subdivision (b) and paragraph (6) of subdivision (c)
and the dates on which the agency intends to make these payments.
   (e) The county auditor shall review each agency's reports
submitted pursuant to subdivisions (b) and (c) and any other relevant
information to determine whether the county auditor concurs with the
information included in the reports.
   (1) If the county auditor concurs with the information included in
a report, the county auditor shall issue a finding of concurrence
within 45 days.
   (2) If the county auditor does not concur with the information
included in a report or considers the report to be incomplete, the
county auditor shall return the report to the agency within 45 days
with information identifying the elements of the report with which
the county auditor does not concur or considers to be incomplete. The
county auditor shall provide the agency at least 15 days to respond
to concerns raised by the county auditor regarding the information
contained in the report. An agency may revise a report that has not
received a finding of concurrence and resubmit it to the county
auditor.
   (3) If an agency and county auditor do not agree regarding the
passthrough requirements of Sections 33607.5 and 33607.7, an agency
may submit a report pursuant to subdivisions (b) and (c) and a
statement of dispute identifying the issue needing resolution.
   (4) An agency may amend a report for which the county auditor has
issued a finding of concurrence and resubmit the report pursuant to
paragraphs (1), (2), and (3) if any of the following apply:
   (A) The county auditor and agency agree that an issue identified
in the agency's statement of dispute has been resolved and the agency
proposes to modify the sections of the report to conform with the
resolution of the statement of dispute.
   (B) The county auditor and agency agree that the amount of gross
tax increment or the amount of a passthrough payment to a taxing
entity included in the report is not accurate.
   (5) The Controller may revoke a finding of concurrence and direct
the agency to resubmit a report to the county auditor pursuant to
paragraphs (1), (2), and (3) if the Controller finds significant
errors in a report.
   (f) On or before December 15, 2008, and annually thereafter
through 2014, the county auditor shall submit a report to the
Controller that includes all of the following:
   (1) The name of each redevelopment project area in the county for
which an agency must submit a report pursuant to subdivision (b) or
(c) and information as to whether the county auditor has issued a
finding of concurrence regarding the report.
   (2) A list of the agencies for which the county auditor has issued
a finding of concurrence for all project areas identified in
paragraph (1).
   (3) A list of agencies for which the county auditor has not issued
a finding of concurrence for all project areas identified in
paragraph (1).
   (4) Using information applicable to agencies listed in paragraph
(2), the county auditor shall report all of the following:
   (A) The total sums reported by each redevelopment agency related
to each taxing entity pursuant to paragraphs (1) to (7), inclusive,
of subdivision (b) and, on or after December 15, 2009, pursuant to
paragraphs (1) to (7), inclusive, of subdivision (c).
   (B) The names of agencies that have outstanding passthrough
payment obligations to a local educational agency that exceed the
amount of outstanding passthrough payments to the local educational
agency.
   (C) Summary information regarding agencies' stated plans to pay
the outstanding amounts identified in paragraph (6) of subdivision
(b) and paragraph (6) of subdivision (c) and the actual amounts that
have been deposited into the county Educational Revenue Augmentation
Fund pursuant to subdivision (j).
   (D) All unresolved statements of dispute filed by agencies
pursuant to paragraph (3) of subdivision (e) and the county auditor's
analyses supporting the county auditor's conclusions regarding the
issues under dispute.
   (g) (1) On or before February 1, 2009, and annually thereafter
through 2015, the Controller shall submit a report to the Legislative
Analyst's Office and the Department of Finance and provide a copy to
the Board of Governors of the California Community Colleges. The
report shall provide information as follows:
   (A) Identify agencies for which the county auditor has issued a
finding of concurrence for all reports required under subdivisions
(b) and (c).
   (B) Identify agencies for which the county auditor has not issued
a finding of concurrence for all reports required pursuant to
subdivision (b) and all reports required pursuant to subdivision (c)
or for which a finding of concurrence has been withdrawn by the
Controller.
   (C) Summarize the information reported in paragraph (4) of
subdivision (f). This summary shall identify, by local educational
agency and by year, the total amount of passthrough payments that
each local educational agency received, was entitled to receive,
subordinated, or that has not yet been paid, and the portion of these
amounts that are considered to be property taxes for purposes of
Sections 2558  ,   and  42238  of the
Education Code, as those sections read on January 1, 2013  , and
 Section  84751 of the Education Code. The report shall
identify, by agency, the amounts that have been deposited to the
county Educational Revenue Augmentation Fund pursuant to subdivision
(j).
   (D) Summarize the statements of dispute. The Controller shall
specify the status of these disputes, including whether the
Controller or other state entity has provided instructions as to how
these disputes should be resolved.
   (E) Identify agencies that have outstanding passthrough payment
liabilities to a local educational agency that exceed the amount of
outstanding passthrough overpayments to the local educational agency.

   (2) On or before February 1, 2009, and annually thereafter through
2015, the Controller shall submit a report to the State Department
of Education and the Board of Governors of the California Community
Colleges. The report shall identify, by local educational agency and
by year of receipt, the total amount of passthrough payments that the
local educational agency received from redevelopment agencies listed
in subparagraph (A) of paragraph (1).
   (h) (1) On or before April 1, 2009, and annually thereafter until
April 1, 2015, the State Department of Education shall do all of the
following:
   (A) Calculate for each school district for the 2003-04 to 2007-08,
inclusive, fiscal years the difference between 43.3 percent of the
amount reported pursuant to paragraph (2) of subdivision (g) and the
amount subtracted from each school district's apportionment pursuant
to paragraph (6) of subdivision (h) of Section 42238 of the Education
Code  , as it read   on January 1, 2013  .
   (B) Calculate for each county superintendent of schools for the
2003-04 to 2007-08, inclusive, fiscal years the difference between 19
percent of the amount reported pursuant to paragraph (2) of
subdivision (g) and the amount received pursuant to Sections 33607.5
and 33607.7 and subtracted from each county superintendent of schools
apportionment pursuant to subdivision (c) of Section 2558 of the
Education Code  , as it read on January 1, 2013  .
   (C) Notify each school district and county superintendent of
schools for which any amount calculated in subparagraph (A) or (B) is
nonzero as to the reported change and its resulting impact on
apportionments. After April 1, 2009, however, the department shall
not notify a school district or county superintendent of schools if
the amount calculated in subparagraph (A) or (B) is the same amount
as the department calculated in the preceding year.
   (2) On or before April 1, 2010, and annually thereafter until
April 1, 2015, the State Department of Education shall do all of the
following:
   (A) Calculate for each school district for the 2008-09 fiscal year
the difference between 43.3 percent of the amount reported pursuant
to paragraph (2) of subdivision (g) and the amount subtracted from
each school district's apportionment pursuant to paragraph (6) of
subdivision (h) of Section 42238 of the Education Code  , as it
read on January 1, 2013  .
   (B) Calculate for each county superintendent of schools for the
2008-09 fiscal year the difference between 19 percent of the amount
reported pursuant to paragraph (2) of subdivision (g) and the amount
                                              received pursuant to
Sections 33607.5 and 33607.7 and subtracted from each county
superintendent of schools apportionment pursuant to subdivision (c)
of Section 2558 of the Education Code  , as it read on January 1,
2013  .
   (C) Notify each school district and county superintendent of
schools for which any amount calculated in subparagraph (A) or (B) is
nonzero as to the reported change and its resulting impact on
revenue limit apportionments. After April 1, 2010, however, the
department shall not notify a school district or county
superintendent of schools if the amount calculated in subparagraph
(A) or (B) is the same amount as the department calculated in the
preceding year.
   (3) For the purposes of Article 3 (commencing with Section 41330)
of Chapter 3 of Part 24 of Division 3 of Title 2 of the Education
Code, the amounts reported to each school district and county
superintendent of schools in the notification required pursuant to
subparagraph (C) of paragraph (1) and subparagraph (C) of paragraph
(2) shall be deemed to be apportionment significant audit exceptions
and the date of receipt of that notification shall be deemed to be
the date of receipt of the final audit report that includes those
audit exceptions.
   (4) On or before March 1, 2009, and annually thereafter until
March 1, 2015, the Board of Governors of the California Community
Colleges shall do all of the following:
   (A) Calculate for each community college district for the 2003-04
to 2007-08, inclusive, fiscal years the difference between 47.5
percent of the amount reported pursuant to paragraph (2) of
subdivision (g) and the amount subtracted from each district's total
revenue owed pursuant to subdivision (d) of Section 84751 of the
Education Code.
   (B) Notify each community college district for which any amount
calculated in subparagraph (A) is nonzero as to the reported change
and its resulting impact on apportionments. After March 1, 2009,
however, the board shall not notify a school district or county
superintendent of schools if the amount calculated in subparagraph
(A) is the same amount as the board calculated in the preceding year.

   (5) On or before March 1, 2010, and annually thereafter until
March 1, 2015, the Board of Governors of the California Community
Colleges shall do all of the following:
   (A) Calculate for each community college district for the 2003-04
to 2007-08, inclusive, fiscal years the difference between 47.5
percent of the amount reported pursuant to paragraph (2) of
subdivision (g) and the amount subtracted from each district's total
revenue owed pursuant to subdivision (d) of Section 84751 of the
Education Code.
   (B) Notify each community college district for which any amount
calculated in subparagraph (A) is nonzero as to the reported change
and its resulting impact on revenue apportionments. After March 1,
2010, however, the board shall not notify a community college
district if the amount calculated in subparagraph (A) is the same
amount as the board calculated in the preceding year.
   (6) A community college district may submit documentation to the
Board of Governors of the California Community Colleges showing that
all or part of the amount reported to the district pursuant to
subparagraph (B) of paragraph (4) and subparagraph (B) of paragraph
(5) was previously reported to the California Community Colleges for
the purpose of the revenue level calculations made pursuant to
Section 84751 of the Education Code. Upon acceptance of the
documentation, the board shall adjust the amounts calculated in
paragraphs (4) and (5) accordingly.
   (7) The Board of Governors of the California Community Colleges
shall make corrections in any amounts allocated in any fiscal year to
each community college district for which any amount calculated in
paragraphs (4) and (5) is nonzero so as to account for the changes
reported pursuant to paragraph (4) of subdivision (b) and paragraph
(4) of subdivision (c). The board may make the corrections over a
period of time, not to exceed five years.
   (i) (1) After February 1, 2009, for an agency listed on the most
recent Controller's report pursuant to subparagraph (B) or (E) of
paragraph (1) of subdivision (g), all of the following shall apply:
   (A) The agency shall be prohibited from adding new project areas
or expanding existing project areas. For purposes of this paragraph,
"project area" has the same meaning as in Sections 33320.1 to
33320.3, inclusive, and Section 33492.3.
   (B) The agency shall be prohibited from issuing new bonds, notes,
interim certificates, debentures, or other obligations, whether
funded, refunded, assumed, or otherwise, pursuant to Article 5
(commencing with Section 33640).
   (C) The agency shall be prohibited from encumbering any funds or
expending any moneys derived from any source, except that the agency
may encumber funds and expend funds to pay, if any, all of the
following:
   (i) Bonds, notes, interim certificates, debentures, or other
obligations issued by an agency before the imposition of the
prohibition in subparagraph (B) whether funded, refunded, assumed, or
otherwise, pursuant to Article 5 (commencing with Section 33460).
   (ii) Loans or moneys advanced to the agency, including, but not
limited to, loans from federal, state, local agencies, or a private
entity.
   (iii) Contractual obligations that, if breached, could subject the
agency to damages or other liabilities or remedies.
   (iv) Obligations incurred pursuant to Section 33445.
   (v) Indebtedness incurred pursuant to Section 33334.2 or 33334.6.
   (vi) Obligations incurred pursuant to Section 33401.
   (vii) An amount, to be expended for the monthly operation and
administration of the agency, that may not exceed 75 percent of the
average monthly amount spent for those purposes in the fiscal year
preceding the fiscal year in which the agency was first listed on the
Controller's report pursuant to subparagraph (B) or (E) of paragraph
(1) of subdivision (g).
   (2) After February 1, 2009, an agency identified in subparagraph
(B) or (E) of paragraph (1) of subdivision (g) shall incur interest
charges on any passthrough payment that is made to a local
educational agency more than 60 days after the close of the fiscal
year in which the passthrough payment was required. Interest shall be
charged at a rate equal to 150 percent of the current Pooled Money
Investment Account earnings annual yield rate and shall be charged
for the period beginning 60 days after the close of the fiscal year
in which the passthrough payment was due through the date that the
payment is made.
   (3) The Controller, with the concurrence of the Director of
Finance, may waive the provisions of paragraphs (1) and (2) for a
period of up to 12 months if the Controller determines all of the
following:
   (A) The county auditor has identified the agency in its most
recent report issued pursuant to paragraph (2) of subdivision (f) as
an agency for which the auditor has issued a finding of concurrence
for all reports required pursuant to subdivisions (b) and (c).
   (B) The agency has filed a statement of dispute on an issue or
issues that, in the opinion of the Controller, are likely to be
resolved in a manner consistent with the agency's position.
   (C) The agency has made passthrough payments to local educational
agencies and the county Educational Revenue Augmentation Fund, or has
had funds previously withheld by the auditor, in amounts that would
satisfy the agency's passthrough payment requirements to local
educational agencies if the issue or issues addressed in the
statement of dispute were resolved in a manner consistent with the
agency's position.
   (D) The agency would sustain a fiscal hardship if it made
passthrough payments to local educational agencies and the county
Educational Revenue Augmentation Fund in the amounts estimated by the
county auditor.
   (j) Notwithstanding any other provision of law, if an agency
report submitted pursuant to subdivision (b) or (c) indicates
outstanding payment obligations to a local educational agency, the
agency shall make these outstanding payments as follows:
   (1) Of the outstanding payments owed to school districts,
including any interest payments pursuant to paragraph (2) of
subdivision (i), 43.3 percent shall be deposited in the county
Educational Revenue Augmentation Fund and the remainder shall be
allocated to the school district or districts.
   (2) Of the outstanding payments owed to community college
districts, including any interest payments pursuant to paragraph (2)
of subdivision (i), 47.5 percent shall be deposited in the county
Educational Revenue Augmentation Fund and the remainder shall be
allocated to the community college district or districts.
   (3) Of the outstanding payments owed to county offices of
education, including any interest payments pursuant to paragraph (2)
of subdivision (i), 19 percent shall be deposited in the county
Educational Revenue Augmentation Fund and the remainder shall be
allocated to the county office of education.
   (k) (1) This section shall not be construed to increase any
allocations of excess, additional, or remaining funds that would
otherwise have been allocated to cities, counties, cities and
counties, or special districts pursuant to clause (i) of subparagraph
(B) of paragraph (4) of subdivision (d) of Section 97.2 of, clause
(i) of subparagraph (B) of paragraph (4) of subdivision (d) of
Section 97.3 of, or Article 4 (commencing with Section 98) of Chapter
6 of Part 0.5 of Division 1 of, the Revenue and Taxation Code had
this section not been enacted.
   (2) Notwithstanding any other provision of law, no funds deposited
in the county Educational Revenue Augmentation Fund pursuant to
subdivision (j) shall be distributed to a community college district.

   (l) A county may require an agency to reimburse the county for any
expenses incurred by the county in performing the services required
by this section.
   SEC. 420.    Section 95 of the   Revenue and
Taxation Code   is amended to read: 
   95.  For  the purpose   purposes  of
this chapter:
   (a) "Local agency" means a city, county, and special district.
   (b) "Jurisdiction" means a local agency, school district,
community college district, or county superintendent of schools. A
jurisdiction as defined in this subdivision is a "district" for
purposes of Section 1 of Article XIII A of the California
Constitution.
   For jurisdictions located in more than one county, the county
auditor of each county in which that jurisdiction is located shall,
for the purposes of computing the amount for that jurisdiction
pursuant to this chapter, treat the portion of the jurisdiction
located within that county as a separate jurisdiction.
   (c) "Property tax revenue" includes the amount of state
reimbursement for the homeowners' exemption. "Property tax revenue"
does not include the amount of property tax levied for the purpose of
making payments for the interest and principal on either of the
following:
   (1) General obligation bonds or other indebtedness approved by the
voters prior to July 1, 1978, including tax rates levied pursuant to
Part 10 (commencing with Section 15000) of Division 1 of, and
Sections 39308 and 39311 and former Sections 81338 and 81341 of the
Education Code, and Section 26912.7 of the Government Code.
   (2) Bonded indebtedness for the acquisition or improvement of real
property approved by two-thirds of the voters on or after June 4,
1986.
   (d) "Taxable assessed value" means total assessed value minus all
exemptions other than the homeowners' and business inventory
exemptions.
   (e) "Jurisdictional change" includes any change of organization,
as defined in Section 56021 of the Government Code and a
reorganization, as defined in Section 56073 of the Government Code.
"Jurisdictional change" also includes any change in the boundary of
those special districts that are not under the jurisdiction of a
local agency formation commission.
   "Jurisdictional change" also includes a functional consolidation
where two or more local agencies, except two or more counties,
exchange or otherwise reassign functions and any change in the
boundaries of a school district or community college district or
county superintendent of schools.
   (f) "School entities" means school districts, community college
districts, the Educational Revenue Augmentation Fund, and county
superintendents of schools.
   (g) Except as otherwise provided in this subdivision, "tax rate
area" means a specific geographic area all of which is within the
jurisdiction of the same combination of local agencies and school
entities for the current fiscal year.
   In the case of a jurisdictional change pursuant to Section 99, the
area subject to the change shall constitute a new tax rate area,
except that if the area subject to change is within the same
combinations of local agencies and school entities as an existing tax
rate area, the two tax rate areas may be combined into one tax rate
area.
   Existing tax rate areas having the same combinations of local
agencies and school entities may be combined into one tax rate area.
For the combination of existing tax rate areas, the factors used to
allocate the annual tax increment pursuant to Section 98 shall be
determined by calculating a weighted average of the annual tax
increment factors used in the tax rate areas being combined.
   (h) "State assistance payments" means:
   (1) For counties, amounts determined pursuant to subdivision (b)
of Section 16260 of the Government Code, increased by the amount
specified for each county pursuant to Section 94 of Chapter 282 of
the Statutes of 1979, with the resultant sum reduced by an amount
derived by the calculation made pursuant to Section 16713 of the
Welfare and Institutions Code.
   (2) For cities, 82.91 percent of the amounts determined pursuant
to subdivisions (b) and (i) of Section 16250 of the Government Code,
plus for any city an additional amount equal to one-half of the
amount of any outstanding debt as of June 30, 1978, for "museums" as
shown in the Controller's "Annual Report of Financial Transactions of
Cities for Fiscal Year 1977-78."
   (3) For special districts, 95.24 percent of the amounts received
pursuant to Chapter 3 (commencing with Section 16270) of Part 1.5 of
Division 4 of Title 2 of the Government Code, Section 35.5 of Chapter
332 of the Statutes of 1978, and Chapter 12 of the Statutes of 1979.

   (i) "City clerk" means the clerk of the governing body of a city
or city and county.
   (j) "Executive officer" means the executive officer of a local
agency formation commission.
   (k) "City" means any city whether general law or charter, except a
city and county.
   (l) "County" means any chartered or general law county. "County"
includes a city and county.
   (m) "Special district" means any agency of the state for the local
performance of governmental or proprietary functions within limited
boundaries. "Special district" includes a county service area, a
maintenance district or area, an improvement district or improvement
zone, or any other zone or area, formed for the purpose of
designating an area within which a property tax rate will be levied
to pay for a service or improvement benefiting that area. "Special
district" includes the Bay Area Air Quality Management District.
"Special district" does not include a city, a county, a school
district, or a community college district. "Special district" does
not include any agency that is not authorized by statute to levy a
property tax rate. However, any special district authorized to levy a
property tax by the statute under which the district was formed
shall be considered a special district. Additionally, a county free
library established pursuant to Article 1 (commencing with Section
19100) of Chapter 6 of Part 11 of Division 1 of Title 1 of the
Education Code, and for which a property tax was levied in the
1977-78 fiscal year, shall be considered a special district.
   (n) "Excess tax school entity" means an educational agency for
which the amount of the state funding entitlement determined under
Section  2558, 42238, 84750,   2575, 84750.5,
 or 84751 of the Education Code, as appropriate, is zero  ,
and as described in   subdivision (o) of Section 42238.02 of
the Education Code, as implemented by Section 42238.03 of the
Education Code  .
   SEC. 421.   Section 196.4 of the   Revenue
and Taxation Code   is amended to read: 
   196.4.  (a) In the 1991-92 fiscal year, the county auditor of an
eligible county, proclaimed by the Governor to be in a state of
disaster as a result of the Oakland/Berkeley Fire that occurred in
October 1991, shall certify to the Director of Finance an estimate of
the total amount of the reduction in property tax revenues on both
the regular secured roll and the supplemental roll for that fiscal
year resulting from the reassessment of eligible properties by the
county assessor pursuant to Section 170, except that the amount
certified shall not include any estimated property tax revenue
reductions to school districts (other than basic state aid school
districts), county offices of education, and community college
districts.
   (b) In the 1991-92 fiscal year, the county auditor of an eligible
county, proclaimed by the Governor to be in a state of disaster as a
result of the Painted Cave Fire that occurred in June 1990, shall
certify to the Director of Finance an estimate of the total amount of
the reduction in property tax revenues on both the regular secured
roll and the supplemental roll for the 1990-91 fiscal year resulting
from the reassessment of eligible properties by the county assessor
pursuant to Section 170, except that the amount certified shall not
include any estimated property tax revenue reductions to school
districts (other than basic aid school districts), county offices of
education, and community college districts.
   (c) For purposes of this section, "basic state aid school district"
means any school district that does not receive a state
apportionment pursuant to subdivision (h) of Section 42238 of the
Education Code,  as it read on January 1, 2013,  but
receives from the state only a basic apportionment pursuant to
Section 6 of Article IX of the California Constitution.
   SEC. 422.    Section 903.7 of the   Welfare
and Institutions Code   is amended to read: 
   903.7.  (a) There is in the State Treasury the Foster Children and
Parent Training Fund. The moneys contained in the fund shall be used
exclusively for the purposes set forth in this section.
   (b) For each fiscal year beginning with the 1981-82 fiscal year,
except as provided in Sections 15200.1, 15200.2, 15200.3, 15200.8,
and 15200.81, and Section 17704 of the Family Code, the Department of
Child Support Services shall determine the amount equivalent to the
net state share of foster care collections attributable to the
enforcement of parental fiscal liability pursuant to Sections 903,
903.4, and 903.5. On July 1, 1982, and every three months thereafter,
the department shall notify the Chancellor of the Community
Colleges, the Department of Finance, and the Superintendent of Public
Instruction of the above-specified amount. The Department of Child
Support Services shall authorize the quarterly transfer of any
portion of this amount for any particular fiscal year exceeding three
million seven hundred fifty thousand dollars ($3,750,000) of the net
state share of foster care collections to the Treasurer for deposit
in the Foster Children and Parent Training Fund, except that,
commencing with the 2002-03 fiscal year, a total of not more than
three million dollars ($3,000,000) may be transferred to the fund in
any fiscal year.
   (c) (1) If sufficient moneys are available in the Foster Children
and Parent Training Fund, up to three million dollars ($3,000,000)
shall be allocated for the support of foster parent training programs
conducted in community colleges. The maximum amount authorized to be
allocated pursuant to this subdivision shall be adjusted annually by
a cost-of-living increase each year based on the percentage given to
discretionary education programs. Funds for the training program
shall be provided in a separate budget item in that portion of the
Budget Act pertaining to the Chancellor of the California Community
Colleges, to be deposited in a separate bank account by the
Chancellor of the California Community Colleges.
   (2) The chancellor shall use these funds exclusively for foster
parent training, as specified by the chancellor in consultation with
the California State Foster Parents Association and the State
Department of Social Services.
   (3) The plans for each foster parent training program shall
include the provision of training to facilitate the development of
foster family homes and small family homes to care for no more than
six children who have special mental, emotional, developmental, or
physical needs.
   (4) The State Department of Social Services shall facilitate the
participation of county welfare departments in the foster parent
training program. The California State Foster Parents Association, or
the local chapters thereof, and the State Department of Social
Services shall identify training participants and shall advise the
chancellor on the form, content, and methodology of the training
program. Funds shall be paid monthly to the foster parent training
program until the maximum amount of funds authorized to be expended
for that program is expended. No more than 10 percent or seventy-five
thousand dollars ($75,000) of these moneys, whichever is greater,
shall be used for administrative purposes; of the 10 percent or
seventy-five thousand dollars ($75,000), no more than ten thousand
dollars ($10,000) shall be expended to reimburse the State Department
of Social Services for its services pursuant to this paragraph.

   (d) Beginning with the 1983-84 fiscal year, and each fiscal year
thereafter, after all allocations for foster parent training in
community colleges have been made, any moneys remaining in the Foster
Children and Parent Training Fund may be allocated for foster
children services programs pursuant to Chapter 11.3 (commencing with
Section 42920) of Part 24 of the Education Code.  
   (e) 
    (d)  (1) The Controller shall transfer moneys from the
Foster Children and Parent Training Fund to the Chancellor of the
California Community Colleges and the Superintendent of Public
Instruction as necessary to fulfill the requirements of 
subdivisions   subdivision  (c)  and (d)
 .
   (2) After the maximum amount authorized in any fiscal year has
been transferred to the Chancellor of the California Community
Colleges and the Superintendent of Public Instruction, the Controller
shall transfer any remaining funds to the General Fund for
expenditure for any public purpose. 
   (f) 
    (e)  This section shall be operative until June 30,
2005, and thereafter is operative only if specified in the annual
Budget Act or in another statute.
   SEC. 423.    (a) The sum of one billion six hundred
thirty million two hundred twenty-two thousand dollars
($1,630,222,000) is hereby appropriated from the General Fund to the
Superintendent of Public Instruction.  
   (b) (1) Of the amount appropriated in subdivision (a), one billion
six hundred two million two hundred one thousand dollars
($1,602,201,000) shall be allocated pursuant to the calculation in
subdivision (b) of Section 42238.03 of the Education Code.  

   (2) Of the amount appropriated in subdivision (a), twenty-eight
million twenty-one thousand dollars ($28,021,000) shall be allocated
pursuant to the calculation in subdivision (d) of Section 2575. 

   (c) For purposes of making the computations required by Section 8
of Article XVI of the California Constitution, the appropriations
made by subdivision (a) shall be deemed to be "General Fund revenues
appropriated for school districts," as defined in subdivision (c) of
Section 41202 of the Education Code, for the 2013-14 fiscal year, and
included within the "total allocations to school districts and
community college districts from General Fund proceeds of taxes
appropriated pursuant to Article XIII B," as defined in subdivision
(e) of Section 41202, for the 2013-14 fiscal year. 
   SEC. 424.    If the Commission on State Mandates
determines that this act contains costs mandated by the state,
reimbursement to local agencies and school districts for those costs
shall be made pursuant to Part 7 (commencing with Section 17500) of
Division 4 of Title 2 of the Government Code.  
  SECTION 1.    It is the intent of the Legislature
to enact statutory changes relating to the Budget Act of 2013.