Amended in Assembly May 6, 2013

Amended in Assembly April 3, 2013

California Legislature—2013–14 Regular Session

Assembly BillNo. 88


Introduced by Assembly Member Buchanan

January 10, 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, 60851, 63000, 63001, and 64000, of, to amend the heading of Article 4 (commencing with Section 2570) of Chapter 12 of Part 2 of Division 1 of Title 1, and Article 7 (commencing with Section 60117) of Chapter 1 of Part 33 of Division 4 of Title 2 of, to amend and repeal Section 14022.5 of, to add Sections 35736.5, 42238.02, 42238.03, 42238.04, 42238.05, 42238.051, 42238.052, 42238.053, 46207, and 46208, to, to add Article 2 (commencing with Section 2574) to Chapter 12 of Part 2 of Division 1 of Title 1 and Article 3.8 (commencing with Section 52060) to Chapter 6.1 of Part 28 of Division 4 of Title 2 of, to repeal Sections 315.5, 316.5, 317, 1242, 1242.5, 1982, 1982.3, 1982.5, 1983.5, 14002.3, 14002.5, 14004, 14035, 14041.1, 14041.65, 14401.1, 17583, 17584, 17584.1, 17584.2, 17584.3, 17585, 17586, 17587, 17588, 17592, 32285, 35735.2, 35735.3, 35735.4, 39809.5, 41300, 41301, 41376, 41378, 41400, 41401, 41402, 41403, 41404, 41406, 41407, 41976, 41976.1, 41976.2, 41976.5, 42238, 42238.1, 42238.2, 42238.3, 42238.4, 42238.41, 42238.42, 42238.43, 42238.44, 42238.445, 42238.45, 42238.46, 42238.48, 42238.485, 42238.49, 42238.5, 42238.51, 42238.52, 42238.53, 42238.6, 42238.7, 42238.75, 42238.8, 42238.9, 42238.95, 42238.11, 42238.12, 42238.13, 42238.14, 42238.145, 42238.146, 42238.17, 42238.18, 42238.23, 42238.24, 42239, 42240, 42240.1, 42241.3, 42241.7, 42242, 42245, 42243.7, 42244, 42245, 42251, 42282.1, 42283.1, 42283.2, 42285.1, 42285.4, 42289, 42289.1, 42289.2, 42289.3, 42289.4, 42289.5, 42289.6, 42604, 42605, 42606, 45037, 46010.2, 46013, 46013.7, 46140.5, 46144, 46201.1, 46201.3, 46201.6, 46203, 46204, 46306, 46606, 47612.7, 47613.2, 47630.5, 47632.5, 47633, 47634.1, 47664, 48200.7, 48660.2, 48663, 48664, 49452.8, 51056, 52051, 52052.2, 52301.3, 52324.5, 52335.1, 52335.2, 52335.3, 52335.4, 52335.5, 52335.6, 54693, 60117, 60118, 62002, 62002.5, 62003, 62004, 62005, and 62005.5, of, to repeal Article 9 (commencing with Section 1780), Article 10 (commencing with Section 1790), Article 11 (commending with Section 1830), Article 14.5 (commencing with Section 1900), Article 14.7 (commencing with Section 1915), and Article 17 (commencing with Section 1940) of Chapter 6 of Part 2 of Division 1 of Title 1, Article 1 (commencing with Section 2509), Article 3 (commencing with Section 2550), and Article 3.5 (commencing with Section 2560) of Chapter 12 of Part 2 of Division 1 of Title 1, Article 3 (commencing with Section 8070), Article 4 (commencing with Section 8080), and Article 8 (commencing with Section 8150) of Chapter 1 of Part 6 of Division 1 of Title 1, Article 3.6 (commencing with Section 32228) of Chapter 2 of Part 19 of Division 1 of Title 1, Article 10.4 (commencing with Section 35294.10) of Chapter 2 of Part 21 of Division 3 of Title 2, Article 4 (commencing with Section 37252) of Chapter 2 of Part 22 of Division 3 of Title 2, Article 2 (commencing with Section 39820) of Chapter 1 of Part 23.5 of Division 3 of Title 2, Article 9 (commencing with Section 41840), Article 10 (commencing with Section 41850), Article 10.5 (commencing with Section 41860), Article 11 (commencing with Section 41880), and Article 13 (commencing with Section 41920) of Chapter 5 of Part 24 of Division 3 of Title 2, Article 3 (commencing with Section 42260) of Chapter 7 of Part 24 of Division 3 of Title 2, Article 4.5 (commencing with Section 42290) and Article 4.7 (commencing with Section 42300) of Chapter 7 of Part 24 of Division 3 of Title 2, Article 11 (commencing with Section 44380), Article 12 (commencing with Section 44390), and Article 13 (commencing with Section 44395) of Chapter 2 of Part 25 of Division 3 of Title 2, Article 4.5 (commencing with Section 44500), Article 5 (commencing with Section 44520), Article 6 (commencing with Section 44560), Article 7 (commencing with Section 44570), Article 8 (commencing with Section 44580), Article 10 (commencing with Section 44630), Article 10.5 (commencing with Section 44645), and Article 10.6 (commencing with Section 44650) of Chapter 3 of Part 25 of Division 3 of Title 2, Article 3 (commencing with Section 44681) of Chapter 3.1 of Part 25 of Division 3 of Title 2, Article 8.5 (commencing with Section 45370) of Chapter 5 of Part 25 of Division 3 of Title 2, Article 7 (commencing with Section 46190) of Chapter 2 of Part 26 of Division 4 of Title 2, Article 5 (commencing with Section 46351) of Chapter 3 of Part 26 of Division 4 of Title 2, Article 2 (commencing with Section 48640) of Chapter 4 of Part 27 of Division 4 of Title 2, Article 15 (commencing with Section 51870) of Chapter 5 of Part 28 of Division 4 of Title 2, Article 3 (commencing with Section 52053), Article 3.5 (commencing with Section 52055.600), and Article 4 (commencing with Section 52056) of Chapter 6.1 of Part 28 of Division 4 of Title 2, Article 1.7 (commencing with Section 52336), Article 2 (commencing with Section 52340), Article 3 (commencing with Section 52350), Article 4 (commencing with Section 52370), Article 4.5 (commencing with Section 52378), Article 5 (commencing with Section 52381), Article 7 (commencing with Section 52450), Article 7.5 (commencing with Section 52460), Article 8 (commencing with Section 52480), and Article 9 (commencing with Section 52485) of Chapter 9 of Part 28 of Division 4 of Title 2, Article 1 (commencing with Section 52500), Article 3 (commencing with Section 52540), Article 4 (commencing with Section 52550), Article 5 (commencing with Section 52570), and Article 6 (commencing with Section 52610) of Chapter 10 of Part 28 of Division 4 of Title 2, Article 4 (commencing with Section 52750) of Chapter 11 of Part 28 of Division 4 of Title 2, Article 1 (commencing with Section 52800) of Chapter 12 of Part 28 of Division 4 of Title 2, Article 7.1 (commencing with Section 54740) and Article 7.7 (commencing with Section 54760) of Chapter 9 of Part 29 of Division 4 of Title 2, and Article 3 (commencing with Section 60240) and Article 7 (commencing with Section 60350) of Chapter 2 of Part 33 of Division 4 of Title 2, of, to repeal Chapter 3 (commencing with Section 8500), Chapter 5.1 (commencing with Section 8820), and Chapter 9 (commencing with Section 8980) of Part 6 of Division 1 of Title 1 of, Chapter 13 (commencing with Section 11200) and Chapter 17 (commencing with Section 11600) of Part 7 of Division 1 of Title 1, Chapter 2.5 (commencing with Section 37300) of Part 22 of Division 3 of Title 2, Chapter 3.2 (commencing with Section 41500) of Part 24 of Division 3 of Title 2, Chapter 11.3 (commencing with Section 42920), Chapter 11.5 (commencing with Section 42950), and Chapter 12 (commencing with Section 43001.5) of Part 24 of Division 3 of Title 2, Chapter 3.3 (commencing with Section 44700), Chapter 3.33 (commencing with Section 44720), Chapter 3.34 (commencing with Section 44730), Chapter 3.36 (commencing with Section 44735), Chapter 3.45 (commencing with Section 44755), and Chapter 3.5 (commencing with Section 44760) of Part 25 of Division 3 of Title 2, Chapter 6.8 (commencing with Section 52080), Chapter 6.9 (commencing with Section 52100), Chapter 6.10 (commencing with Section 52120), Chapter 7 (commencing with Section 52130), Chapter 8 (commencing with Section 52200), Chapter 8.3 (commencing with Section 52240), Chapter 8.5 (commencing with Section 52250), and Chapter 8.6 (commencing with Section 52270) of Part 28 of Division 4 of Title 2, Chapter 10.5 (commencing with Section 52651), Chapter 12.5 (commencing with Section 52920), Chapter 13 (commencing with Section 52910), and Chapter 17 (commencing with Section 53080) of Part 28 of Division 4 of Title 2, Chapter 1 (commencing with Section 54000) and Chapter 2 (commencing with Section 54100) of Part 29 of Division 4 of Title 2, and Chapter 3.1 (commencing with Section 58520), Chapter 5 (commencing with Section 58700), Chapter 6 (commencing with Section 58800) of Part 31 of Division 4 of Title 2, and Chapter 4 (commencing with Section 60500) of Part 33 of Division 4 of Title 2 of, and to repeal Part 10.7 (commencing with Section 17910) of Division 1 of Title 1 of, the Education Code, to amend Sections 7906 and 50286 of the Government Code, to amend Sections 33492.78, 33607.5, and 33684 of the Health and Safety Code, to amend Sections 95 and 196.4 of the Revenue and Taxation Code, and to amend Section 903.7 of the Welfare and Institutions Code, relating to school finance,begin delete andend delete making an appropriation thereforbegin insert, and declaring the urgency thereof, to take effect immediatelyend insert.

LEGISLATIVE COUNSEL’S DIGEST

AB 88, as amended, Buchanan. 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.

begin insert

(8) This bill would declare that it is to take effect immediately as an urgency statute.

end insert

Vote: begin deletemajority end deletebegin insert23end insert. Appropriation: yes. Fiscal committee: yes. State-mandated local program: yes.

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

P7    1

SECTION 1.  

Section 315.5 of the Education Code is repealed.

2

SEC. 2.  

Section 316.5 of the Education Code is repealed.

3

SEC. 3.  

Section 317 of the Education Code is repealed.

4

SEC. 4.  

Section 1240 of the Education Code is amended to
5read:

6

1240.  

The county superintendent of schools shall do all of the
7following:

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

9(b) Maintain responsibility for the fiscal oversight of each school
10district in his or her county pursuant to the authority granted by
11this code.

12(c) (1) Visit and examine each school in his or her county at
13reasonable intervals to observe its operation and to learn of its
14problems. He or she annually may present a report of the state of
15the schools in his or her county, and of his or her office, including,
16but not limited to, his or her observations while visiting the schools,
17to the board of education and the board of supervisors of his or
18her county.

19(2) (A) For fiscal years 2004-05 to 2006-07, inclusive, to the
20extent that funds are appropriated for purposes of this paragraph,
21the county superintendent, or his or her designee, annually shall
22submit a report, at a regularly scheduled November board meeting,
23to the governing board of each school district under his or her
24jurisdiction, the county board of education of his or her county,
25and the board of supervisors of his or her county describing the
26state of the schools in the county or of his or her office that are
27ranked in deciles 1 to 3, inclusive, of the 2003 base Academic
28Performance Index (API), as described in subdivision (b) of Section
2917592.70, and shall include, among other things, his or her
30observations while visiting the schools and his or her
31determinations for each school regarding the status of all of the
32circumstances listed in subparagraph (I) and teacher
33 misassignments and teacher vacancies. As a condition for receipt
P8    1of funds, the county superintendent, or his or her designee, shall
2use a standardized template to report the circumstances listed in
3subparagraph (I) and teacher misassignments and teacher vacancies,
4unless the current annual report being used by the county
5superintendent, or his or her designee, already includes those details
6for each school.

7(B) Commencing with the 2007-08 fiscal year, to the extent
8that funds are appropriated for purposes of this paragraph, the
9county superintendent, or his or her designee, annually shall submit
10a report, at a regularly scheduled November board meeting, to the
11governing board of each school district under his or her jurisdiction,
12the county board of education of his or her county, and the board
13of supervisors of his or her county describing the state of the
14schools in the county or of his or her office that are ranked in
15deciles 1 to 3, inclusive, of the 2006 base API, pursuant to Section
1652056. As a condition for the receipt of funds, the annual report
17shall include the determinations for each school made by the county
18superintendent, or his or her designee, regarding the status of all
19of the circumstances listed in subparagraph (I) and teacher
20misassignments and teacher vacancies, and the county
21superintendent, or his or her designee, shall use a standardized
22template to report the circumstances listed in subparagraph (I) and
23teacher misassignments and teacher vacancies, unless the current
24annual report being used by the county superintendent, or his or
25her designee, already includes those details with the same level of
26specificity that is otherwise required by this subdivision. For
27purposes of this section, schools ranked in deciles 1 to 3, inclusive,
28on the 2006 base API shall include schools determined by the
29department to meet either of the following:

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

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

32(II) Is operating in fiscal year 2007-08 and was operating in
33fiscal year 2006-07 during the Standardized Testing and Reporting
34(STAR) Program testing period.

35(III) Has a valid base API score for 2005 that was ranked in
36deciles 1 to 3, inclusive, in that year.

37(ii) The school has an estimated base API score for 2006 that
38would be in deciles 1 to 3, inclusive.

39(C) The department shall estimate an API score for any school
40meeting the criteria of subclauses (I) and (II) of clause (i) of
P9    1subparagraph (B) and not meeting the criteria of subclause (III)
2of clause (i) of subparagraph (B), using available test scores and
3weighting or corrective factors it deems appropriate. The
4department shall post the API scores on its Internet Web site on
5or before May 1.

6(D) For purposes of this section, references to schools ranked
7in deciles 1 to 3, inclusive, on the 2006 base API shall exclude
8schools operated by county offices of education pursuant to Section
956140, as determined by the department.

10(E) (i) Commencing with the 2010-11 fiscal year and every
11third year thereafter, the Superintendent shall identify a list of
12schools ranked in deciles 1 to 3, inclusive, of the API for which
13the county superintendent, or his or her designee, annually shall
14submit a report, at a regularly scheduled November board meeting,
15to the governing board of each school district under his or her
16jurisdiction, the county board of education of his or her county,
17and the board of supervisors of his or her county that describes the
18state of the schools in the county or of his or her office that are
19ranked in deciles 1 to 3, inclusive, of the base API as defined in
20clause (ii).

21(ii) For the 2010-11 fiscal year, the list of schools ranked in
22deciles 1 to 3, inclusive, of the base API shall be updated using
23the criteria set forth in clauses (i) and (ii) of subparagraph (B),
24subparagraph (C), and subparagraph (D), as applied to the 2009
25base API and thereafter shall be updated every third year using
26the criteria set forth in clauses (i) and (ii) of subparagraph (B),
27subparagraph (C), and subparagraph (D), as applied to the base
28API of the year preceding the third year consistent with clause (i).

29(iii) As a condition for the receipt of funds, the annual report
30shall include the determinations for each school made by the county
31superintendent, or his or her designee, regarding the status of all
32of the circumstances listed in subparagraph (I) and teacher
33misassignments and teacher vacancies, and the county
34superintendent, or his or her designee, shall use a standardized
35template to report the circumstances listed in subparagraph (I) and
36teacher misassignments and teacher vacancies, unless the current
37annual report being used by the county superintendent, or his or
38her designee, already includes those details with the same level of
39specificity that is otherwise required by this subdivision.

P10   1(F) The county superintendent of the Counties of Alpine,
2Amador, Del Norte, Mariposa, Plumas, and Sierra, and the City
3and County of San Francisco shall contract with another county
4office of education or an independent auditor to conduct the
5required visits and make all reports required by this paragraph.

6(G) On a quarterly basis, the county superintendent, or his or
7 her designee, shall report the results of the visits and reviews
8conducted that quarter to the governing board of the school district
9at a regularly scheduled meeting held in accordance with public
10notification requirements. The results of the visits and reviews
11shall include the determinations of the county superintendent, or
12his or her designee, for each school regarding the status of all of
13the circumstances listed in subparagraph (I) and teacher
14misassignments and teacher vacancies. If the county
15superintendent, or his or her designee, conducts no visits or reviews
16in a quarter, the quarterly report shall report that fact.

17(H) The visits made pursuant to this paragraph shall be
18conducted at least annually and shall meet the following criteria:

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

20(ii) Be performed by individuals who meet the requirements of
21Section 45125.1.

22(iii) Consist of not less than 25 percent unannounced visits in
23each county. During unannounced visits in each county, the county
24superintendent shall not demand access to documents or specific
25school personnel. Unannounced visits shall only be used to observe
26the condition of school repair and maintenance, and the sufficiency
27of instructional materials, as defined by Section 60119.

28(I) The priority objective of the visits made pursuant to this
29paragraph shall be to determine the status of all of the following
30circumstances:

31(i) Sufficient textbooks as defined in Section 60119 and as
32specified in subdivision (i).

33(ii) The condition of a facility that poses an emergency or urgent
34 threat to the health or safety of pupils or staff as defined in district
35policy or paragraph (1) of subdivision (c) of Section 17592.72.

36(iii) The accuracy of data reported on the school accountability
37report card with respect to the availability of sufficient textbooks
38and instructional materials, as defined by Section 60119, and the
39safety, cleanliness, and adequacy of school facilities, including
P11   1good repair as required by Sections 17014, 17032.5, 17070.75,
2and 17089.

3(J) The county superintendent may make the status
4determinations described in subparagraph (I) during a single visit
5or multiple visits. In determining whether to make a single visit
6or multiple visits for this purpose, the county superintendent shall
7take into consideration factors such as cost-effectiveness, disruption
8to the schoolsite, deadlines, and the availability of qualified
9reviewers.

10(K) If the county superintendent determines that the condition
11of a facility poses an emergency or urgent threat to the health or
12safety of pupils or staff as described in school district policy or
13paragraph (1) of subdivision (c) of Section 17592.72, or is not in
14good repair, as specified in subdivision (d) of Section 17002 and
15required by Sections 17014, 17032.5, 17070.75, and 17089, the
16county superintendent, among other things, may do any of the
17following:

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

19(ii) Prepare a report that specifically identifies and documents
20the areas or instances of noncompliance if the school district has
21not provided evidence of successful repairs within 30 days of the
22visit of the county superintendent or, for major projects, has not
23provided evidence that the repairs will be conducted in a timely
24manner. The report may be provided to the governing board of the
25school district. If the report is provided to the school district, it
26shall be presented at a regularly scheduled meeting held in
27accordance with public notification requirements. The county
28superintendent shall post the report on his or her Internet Web site.
29The report shall be removed from the Internet Web site when the
30county superintendent verifies the repairs have been completed.

31(d) Distribute all laws, reports, circulars, instructions, and blanks
32that he or she may receive for the use of the school officers.

33(e) Annually, on or before August 15, present a report to the
34governing board of the school district and the Superintendent
35regarding the fiscal solvency of a school district with a disapproved
36budget, qualified interim certification, or a negative interim
37certification, or that is determined to be in a position of fiscal
38uncertainty pursuant to Section 42127.6.

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

P12   1(g) Keep a record of his or her official acts, and of all the
2proceedings of the county board of education, including a record
3of the standing, in each study, of all applicants for certificates who
4have been examined, which shall be open to the inspection of an
5applicant or his or her authorized agent.

6(h) Enforce the course of study.

7(i) (1) Enforce the use of state textbooks and instructional
8materials and of high school textbooks and instructional materials
9regularly adopted by the proper authority in accordance with
10Section 51050.

11(2) For purposes of this subdivision, sufficient textbooks or
12instructional materials has the same meaning as in subdivision (c)
13of Section 60119.

14(3) (A) Commencing with the 2005-06 school year, if a school
15is ranked in any of deciles 1 to 3, inclusive, of the base API, as
16specified in paragraph (2) of subdivision (c), and not currently
17under review pursuant to a state or federal intervention program,
18the county superintendent specifically shall review that school at
19least annually as a priority school. A review conducted for purposes
20of this paragraph shall be completed by the fourth week of the
21school year. For the 2004-05 fiscal year only, the county
22superintendent shall make a diligent effort to conduct a visit to
23each school pursuant to this paragraph within 120 days of receipt
24of funds for this purpose.

25(B) In order to facilitate the review of instructional materials
26before the fourth week of the school year, the county superintendent
27in a county with 200 or more schools that are ranked in any of
28deciles 1 to 3, inclusive, of the base API, as specified in paragraph
29(2) of subdivision (c), may utilize a combination of visits and
30written surveys of teachers for the purpose of determining
31sufficiency of textbooks and instructional materials in accordance
32with subparagraph (A) of paragraph (1) of subdivision (a) of
33Section 60119 and as defined in subdivision (c) of Section 60119.
34If a county superintendent elects to conduct written surveys of
35teachers, the county superintendent shall visit the schools surveyed
36within the same academic year to verify the accuracy of the
37information reported on the surveys. If a county superintendent
38surveys teachers at a school in which the county superintendent
39has found sufficient textbooks and instructional materials for the
40previous two consecutive years and determines that the school
P13   1does not have sufficient textbooks or instructional materials, the
2county superintendent shall within 10 business days provide a copy
3of the insufficiency report to the school district as set forth in
4paragraph (4).

5(C) For purposes of this paragraph, “written surveys” may
6include paper and electronic or online surveys.

7(4) If the county superintendent of schools determines that a
8school does not have sufficient textbooks or instructional materials
9in accordance with subparagraph (A) of paragraph (1) of
10subdivision (a) of Section 60119 and as defined by subdivision (c)
11of Section 60119, the county superintendent shall do all of the
12following:

13(A) Prepare a report that specifically identifies and documents
14the areas or instances of noncompliance.

15(B) Provide within five business days of the review, a copy of
16the report to the school district, as provided in subdivision (c), or,
17if applicable, provide a copy of the report to the school district
18within 10 business days pursuant to subparagraph (B) of paragraph
19(3).

20(C) Provide the school district with the opportunity to remedy
21the deficiency. The county superintendent shall ensure remediation
22of the deficiency no later than the second month of the school term.

23(D) If the deficiency is not remedied as required pursuant to
24subparagraph (C), the county superintendent shall request the
25department to purchase the textbooks or instructional materials
26necessary to comply with the sufficiency requirement of this
27subdivision. If the department purchases textbooks or instructional
28materials for the school district, the department shall issue a public
29statement at the first regularly scheduled meeting of the state board
30occurring immediately after the department receives the request
31of the county superintendent and that meets the applicable public
32notice requirements, indicating that the district superintendent and
33the governing board of the school district failed to provide pupils
34with sufficient textbooks or instructional materials as required by
35this subdivision. Before purchasing the textbooks or instructional
36materials, the department shall consult with the school district to
37determine which textbooks or instructional materials to purchase.
38The amount of funds necessary for the purchase of the textbooks
39and materials is a loan to the school district receiving the textbooks
40or instructional materials. Unless the school district repays the
P14   1amount owed based upon an agreed-upon repayment schedule with
2the Superintendent, the Superintendent shall notify the Controller
3and the Controller shall deduct an amount equal to the total amount
4used to purchase the textbooks and materials from the next
5principal apportionment of the school district or from another
6apportionment of state funds.

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

8(k) Deliver to his or her successor, at the close of his or her
9official term, all records, books, documents, and papers belonging
10to the office, taking a receipt for them, which shall be filed with
11the department.

12(l) (1) Submit two reports during the fiscal year to the county
13board of education in accordance with the following:

14(A) The first report shall cover the financial and budgetary status
15of the county office of education for the period ending October
1631. The second report shall cover the period ending January 31.
17Both reports shall be reviewed by the county board of education
18and approved by the county superintendent no later than 45 days
19after the close of the period being reported.

20(B) As part of each report, the county superintendent shall certify
21in writing whether or not the county office of education is able to
22meet its financial obligations for the remainder of the fiscal year
23and, based on current forecasts, for two subsequent fiscal years.
24The certifications shall be classified as positive, qualified, or
25negative, pursuant to standards prescribed by the Superintendent,
26for purposes of determining subsequent state agency actions
27pursuant to Section 1240.1. For purposes of this subdivision, a
28negative certification shall be assigned to a county office of
29education that, based upon current projections, will not meet its
30financial obligations for the remainder of the fiscal year or for the
31subsequent fiscal year. A qualified certification shall be assigned
32to a county office of education that may not meet its financial
33obligations for the current fiscal year or two subsequent fiscal
34years. A positive certification shall be assigned to a county office
35of education that will meet its financial obligations for the current
36fiscal year and subsequent two fiscal years. In accordance with
37those standards, the Superintendent may reclassify a certification.
38If a county office of education receives a negative certification,
39the Superintendent, or his or her designee, may exercise the
40authority set forth in subdivision (c) of Section 1630. Copies of
P15   1each certification, and of the report containing that certification,
2shall be sent to the Superintendent at the time the certification is
3submitted to the county board of education. Copies of each
4qualified or negative certification and the report containing that
5certification shall be sent to the Controller at the time the
6certification is submitted to the county board of education.

7(i) For the 2011-12 fiscal year, notwithstanding any of the
8standards and criteria adopted by the state board pursuant to Section
933127, each county office of education budget shall project the
10same level of revenue per unit of average daily attendance as it
11received in the 2010-11 fiscal year and shall maintain staffing and
12program levels commensurate with that level.

13(ii) For the 2011-12 fiscal year, the county superintendent shall
14not be required to certify in writing whether or not the county
15office of education is able to meet its financial obligations for the
16two subsequent fiscal years.

17(iii) For the 2011-12 fiscal year, notwithstanding any of the
18standards and criteria adopted by the state board pursuant to Section
1933127, the Superintendent, as a condition on approval of a county
20office of education budget, shall not require a county office of
21education to project a lower level of revenue per unit of average
22daily attendance than it received in the 2010-11 fiscal year nor
23require the county superintendent to certify in writing whether or
24not the county office of education is able to meet its financial
25obligations for the two subsequent fiscal years.

26(2) All reports and certifications required under this subdivision
27shall be in a format or on forms prescribed by the Superintendent,
28and shall be based on standards and criteria for fiscal stability
29adopted by the state board pursuant to Section 33127. The reports
30and supporting data shall be made available by the county
31superintendent to an interested party upon request.

32(3) This subdivision does not preclude the submission of
33additional budgetary or financial reports by the county
34superintendent to the county board of education or to the
35Superintendent.

36(4) The county superintendent is not responsible for the fiscal
37oversight of the community colleges in the county, however, he
38or she may perform financial services on behalf of those
39community colleges.

P16   1(m) If requested, act as agent for the purchase of supplies for
2the city and high school districts of his or her county.

3(n) For purposes of Section 44421.5, report to the Commission
4on Teacher Credentialing the identity of a certificated person who
5knowingly and willingly reports false fiscal expenditure data
6relative to the conduct of an educational program. This requirement
7applies only if, in the course of his or her normal duties, the county
8superintendent discovers information that gives him or her
9reasonable cause to believe that false fiscal expenditure data
10relative to the conduct of an educational program has been reported.

11

SEC. 5.  

Section 1242 of the Education Code is repealed.

12

SEC. 6.  

Section 1242.5 of the Education Code is repealed.

13

SEC. 7.  

Section 1622 of the Education Code is amended to
14read:

15

1622.  

(a) On or before July 1 of each fiscal year, the county
16board of education shall adopt an annual budget for the budget
17year and, for the 2014-15 fiscal year and each fiscal year thereafter,
18take action on a local control and accountability plan pursuant to
19Sections 52062 and 52064 and shall file the budget and local
20control and accountability plan with the Superintendent, the county
21board of supervisors, and the county auditor. The budget, the local
22control and accountability plan, and supporting data, shall be
23maintained and made available for public review. The budget shall
24indicate the date, time, and location at which the county board of
25education held the public hearing required under Section 1620.
26For the 2014-15 fiscal year and each fiscal year thereafter, the
27county board of education shall not adopt a budget before the
28 county board of education adopts a local control and accountability
29plan or approves an update to an existing local control and
30accountability plan. The county board of education shall not adopt
31a budget that does not align with the local control and
32accountability plan that applies to the subsequent fiscal year.

33(b) (1) The Superintendent shall examine the budget to
34determine if it (1) complies with the standards and criteria adopted
35by the state board pursuant to Section 33127 for application to
36final local educational agency budgets, (2) allows the county office
37of education to meet its financial obligations during the fiscal year,
38and (3) is consistent with a financial plan that will enable the
39county office of education to satisfy its multiyear financial
40commitments. In addition, the Superintendent shall identify any
P17   1technical corrections to the budget that must be made. On or before
2August 15, the Superintendent shall approve or disapprove the
3budget and, in the event of a disapproval, transmit to the county
4office of education in writing his or her recommendations regarding
5revision of the budget and the reasons for those recommendations.

6(2) For the 2011-12 fiscal year, notwithstanding any of the
7standards and criteria adopted by the state board pursuant to Section
833127, the Superintendent, as a condition on approval of a county
9office of education budget, shall not require a county office of
10education to project a lower level of revenue per unit of average
11daily attendance than it received in the 2010-11 fiscal year nor
12require the county superintendent to certify in writing whether or
13not the county office of education is able to meet its financial
14obligations for the two subsequent fiscal years.

15(3) For the 2014-15 fiscal year and each fiscal year thereafter,
16the Superintendent shall disapprove a budget if any of the following
17occur:

18(A) The county board of education does not file a local control
19and accountability plan with the Superintendent pursuant to
20Sections 52062 and 52064.

21(B) If the Superintendent determines that a local control and
22accountability plan filed does not adhere to the template adopted
23by the state board pursuant to Section 52066.

24(C) If the Superintendent determines that a local control and
25accountability plan filed does not include all of the components
26identified in subdivision (a) of Section 52064.

27(D) If the Superintendent determines that the expenditures
28included in the budget do not reflect the costs necessary to
29implement the local control and accountability plan.

30(c) On or before September 8, the county board of education
31shall revise the county office of education budget to reflect changes
32in projected income or expenditures subsequent to July 1, and to
33include any response to the recommendations of the
34Superintendent, shall adopt the revised budget, and shall file the
35revised budget with the Superintendent, the county board of
36supervisors, and the county auditor. Before revising the budget,
37the county board of education shall hold a public hearing regarding
38the proposed revisions, which shall be made available for public
39inspection not less than three working days before the hearing.
40The agenda for that hearing shall be posted at least 72 hours before
P18   1the public hearing and shall include the location where the budget
2will be available for public inspection. The revised budget, and
3supporting data, shall be maintained and made available for public
4review.

5(d) The Superintendent shall examine the revised budget to
6determine whether it complies with the standards and criteria
7adopted by the state board pursuant to Section 33127 for
8application to final local educational agency budgets and, no later
9than October 8, shall approve or disapprove the revised budget.
10For the 2014-15 fiscal year and each fiscal year thereafter, the
11Superintendent shall disapprove a revised budget if the
12Superintendent determines that the expenditures included in the
13budget do not reflect the costs necessary to implement the local
14control and accountability plan adopted by a county board of
15education pursuant to Sections 52062 and 52064. If the
16Superintendent disapproves the budget, he or she shall call for the
17formation of a budget review committee pursuant to Section 1623.
18For the 2011-12 fiscal year, notwithstanding any of the standards
19and criteria adopted by the state board pursuant to Section 33127,
20the Superintendent, as a condition on approval of a county office
21of education budget, shall not require a county office of education
22to project a lower level of revenue per unit of average daily
23attendance than it received in the 2010-11 fiscal year nor require
24the county superintendent to certify in writing whether or not the
25county office of education is able to meet its financial obligations
26for the two subsequent fiscal years.

27(e) Notwithstanding any other provision of this section, the
28budget review for a county office of education shall be governed
29by paragraphs (1), (2), and (3) of this subdivision, rather than by
30subdivisions (c) and (d), if the county board of education so elects,
31and notifies the Superintendent in writing of that decision, no later
32than October 31 of the immediately preceding calendar year.

33(1) In the event of the disapproval of the budget of a county
34office of education pursuant to subdivision (b), on or before
35September 8, the county superintendent of schools and the county
36board of education shall review the recommendations of the
37Superintendent at a regularly scheduled meeting of the county
38board of education and respond to those recommendations. That
39response shall include the proposed actions to be taken, if any, as
40a result of those recommendations.

P19   1(2) No later than October 8, after receiving the response required
2under paragraph (1), the Superintendent shall review that response
3and either approve or disapprove the budget of the county office
4of education. For the 2014-15 fiscal year and each fiscal year
5thereafter, the Superintendent shall disapprove a budget if a county
6board of education does not file a local control and accountability
7plan with the Superintendent or if the Superintendent determines
8that the expenditures included in the budget adopted by the county
9board of education do not reflect the costs necessary to implement
10the local control and accountability plan. If the Superintendent
11disapproves the budget, he or she shall call for the formation of a
12budget review committee pursuant to Section 1623.

13(3) Not later than 45 days after the Governor signs the annual
14Budget Act, the county office of education shall make available
15for public review any revisions in revenues and expenditures that
16it has made to its budget to reflect the funding made available by
17that Budget Act.

18

SEC. 8.  

Section 1630 of the Education Code is amended to
19read:

20

1630.  

(a) The Superintendent shall review and consider studies,
21reports, evaluations, or audits of the county office of education
22that contain evidence that the county office of education is
23demonstrating fiscal distress according to the standards and criteria
24developed pursuant to Section 33127, or that contain a finding by
25an external reviewer that more than 3 of the 15 most common
26predictors of school agencies needing intervention, as determined
27by the County Office Fiscal Crisis and Management Assistance
28Team, are present. If those findings are made, the Superintendent
29shall investigate the financial condition of the county office of
30education and determine if the county office of education may be
31unable to meet its financial obligations for the current or two
32subsequent fiscal years, or should receive a qualified or negative
33 interim financial certification pursuant to Section 1240.

34(b) If at any time during the fiscal year the Superintendent
35determines that the county office of education may be unable to
36meet its financial obligations for the current or two subsequent
37fiscal years, or if the county office of education has a qualified
38certification pursuant to Section 1240, he or she shall notify the
39county board of education and the county superintendent in writing
40of that determination and the basis for the determination. The
P20   1notification shall include the assumptions used in making the
2determination and shall be available to the public. The
3Superintendent shall do the following, as necessary, to ensure that
4the county office meets its financial obligations:

5(1) Assign a fiscal expert, paid for by the Superintendent, to
6advise the county office of education on its financial problems.

7(2) Conduct a study of the financial and budgetary conditions
8of the county office of education. If, in the course of this review,
9the Superintendent determines that his or her office requires
10analytical assistance or expertise that is not available through the
11county office of education, he or she may employ, at county office
12of education expense, on a short-term basis, staff, including
13certified public accountants, to provide the assistance and expertise.

14(3) Direct the county office of education to submit a financial
15projection of all fund and cash balances of the county office of
16education as of June 30 of the current year and subsequent fiscal
17years as he or she requires.

18(4) Require the county office of education to encumber all
19contracts and other obligations, to prepare appropriate cashflow
20analyses and monthly or quarterly budget revisions, and to
21appropriately record all receivables and payables.

22(5) Direct the county office of education to submit a proposal
23for addressing the fiscal conditions that resulted in the
24determination that the county office of education may not be able
25to meet its financial obligations.

26(6) Withhold compensation of the county board of education
27and the county superintendent for failure to provide requested
28financial information.

29(c) If, after taking the actions identified in subdivision (a), the
30Superintendent determines that a county office of education will
31be unable to meet its financial obligations for the current or
32subsequent fiscal year, he or she shall notify the county board of
33education and the county superintendent in writing of that
34determination and the basis for that determination. The notification
35shall include the assumptions used in making the determination
36and shall be available to the public.

37(d) If the Superintendent makes that determination, or if the
38county office of education has a negative certification pursuant to
39Section 1240, the Superintendent, shall, as necessary to enable the
P21   1county office of education to meet its financial obligations, do one
2or more of the following:

3(1) Develop and impose, in consultation with the county board
4of education and the county superintendent, a budget that will
5enable the county office of education to meet its financial
6obligations.

7(2) Stay or rescind an action that is determined to be inconsistent
8with the ability of the county office of education to meet its
9obligations for the current or subsequent fiscal year and may, as
10 necessary, appoint a fiscal adviser to perform some or all of the
11duties prescribed by this paragraph on his or her behalf. This
12includes actions up to the point that the subsequent year’s budget
13is approved by the Superintendent. The Superintendent shall inform
14the county board of education in writing of his or her justification
15for an exercise of authority under this paragraph.

16(3) Assist in developing, in consultation with the county board
17of education and the county superintendent, a financial plan that
18will enable the county office of education to meet its future
19obligations.

20(4) Assist in developing, in consultation with the county board
21of education and the county superintendent, a budget for the
22subsequent fiscal year. If necessary, the Superintendent shall
23continue to work with the county board of education and the county
24superintendent until the budget for the subsequent year is adopted.

25(e) Actions taken by the Superintendent pursuant to paragraph
26(1) or (2) of subdivision (d) shall be accompanied by a notification
27that includes the actions to be taken, the reasons for the actions,
28and the assumptions used to support the necessity for those actions.
29That notification shall be available to the public.

30(f) This section does not authorize the Superintendent to
31abrogate a provision of a collective bargaining agreement that was
32entered into by a county office of education before the date upon
33which the Superintendent assumed authority pursuant to
34subdivision (d).

35(g) The county office of education shall pay reasonable fees
36charged by the Superintendent for administrative expenses incurred
37pursuant to subdivision (d) or costs associated with improving the
38office’s financial management practices.

39(h) Notwithstanding any other law, a county treasurer shall not
40honor a warrant when the Superintendent, as appropriate, has
P22   1disapproved that warrant, or has disapproved the order on county
2office of education funds for which a warrant was prepared.

3(i) For all purposes of errors and liability insurance policies, a
4fiscal expert appointed pursuant to this section shall be deemed to
5be an employee of the county office of education. The
6Superintendent may require that the fiscal adviser be placed on
7the county office of education payroll for purposes of remuneration,
8benefits, and payroll deductions.

9(j) If staff persons are hired pursuant to paragraph (2) of
10subdivision (b), the Superintendent may certify to the Controller
11an amount to be transferred to the state department, from the funds
12that otherwise would be apportioned to the county office of
13education pursuant to Section 2575, for the purpose of paying all
14costs incurred by that staff in performing their respective services.
15The Controller, upon receipt of that certification, shall transfer that
16amount.

17(k) To facilitate the appointment of a county office of education
18fiscal officer and the employment of additional staff pursuant to
19paragraphs (1) and (2), respectively, of subdivision (b), for the
20purposes of those paragraphs, the Superintendent is exempt from
21the requirements of Article 6 (commencing with Section 999) of
22Chapter 6 of Division 4 of the Military and Veterans Code and
23Part 2 (commencing with Section 10100) of Division 2 of the
24Public Contract Code.

25

SEC. 9.  

Article 9 (commencing with Section 1780) of Chapter
266 of Part 2 of Division 1 of Title 1 of the Education Code is
27repealed.

28

SEC. 10.  

Article 10 (commencing with Section 1790) of
29Chapter 6 of Part 2 of Division 1 of Title 1 of the Education Code
30 is repealed.

31

SEC. 11.  

Article 11 (commencing with Section 1830) of
32Chapter 6 of Part 2 of Division 1 of Title 1 of the Education Code
33 is repealed.

34

SEC. 12.  

Article 14.5 (commencing with Section 1900) of
35Chapter 6 of Part 2 of Division 1 of Title 1 of the Education Code
36 is repealed.

37

SEC. 13.  

Article 14.7 (commencing with Section 1915) of
38Chapter 6 of Part 2 of Division 1 of Title 1 of the Education Code
39 is repealed.

P23   1

SEC. 14.  

Article 17 (commencing with Section 1940) of
2Chapter 6 of Part 2 of Division 1 of Title 1 of the Education Code
3 is repealed.

4

SEC. 15.  

Section 1982 of the Education Code is repealed.

5

SEC. 16.  

Section 1982.3 of the Education Code is repealed.

6

SEC. 17.  

Section 1982.5 of the Education Code is repealed.

7

SEC. 18.  

Section 1983.5 of the Education Code is repealed.

8

SEC. 19.  

Article 1 (commencing with Section 2509) of Chapter
912 of Part 2 of Division 1 of Title 1 of the Education Code is
10repealed.

11

SEC. 20.  

Article 3 (commencing with Section 2550) of Chapter
1212 of Part 2 of Division 1 of Title 1 of the Education Code is
13repealed.

14

SEC. 21.  

Article 3.5 (commencing with Section 2560) of
15Chapter 12 of Part 2 of Division 1 of Title 1 of the Education Code
16 is repealed.

17

SEC. 22.  

The heading of Article 4 (commencing with Section
182570) of Chapter 12 of Part 2 of Division 1 of Title 1 of the 19Education Code is amended and renumbered to read:

20 

21Article 1.  Allocation of Property Tax Revenues
22

 

23

SEC. 23.  

Section 2573 of the Education Code is amended to
24read:

25

2573.  

The remainder computed pursuant to subdivision (d) of
26Section 2571 is the amount of property tax revenues to be allocated
27for programs funded pursuant to Section 2575.

28

SEC. 24.  

Article 2 (commencing with Section 2574) is added
29to Chapter 12 of Part 2 of Division 1 of Title 1 of the Education
30Code
, to read:

31 

32Article 2.  County Local Control Funding Formula
33

 

34

2574.  

For the 2013-14 fiscal year and for each fiscal year
35thereafter, the Superintendent annually shall calculate the County
36Local Control Funding Formula for each county superintendent
37of schools as follows:

38(a) Compute a county office of education operations grant equal
39to the sum of each of the following amounts:

P24   1(1) Six hundred fifty-five thousand nine hundred twenty dollars
2($655,920).

3(2) One hundred nine thousand three hundred twenty dollars
4($109,320) multiplied by the number of school districts for which
5the county superintendent of schools has jurisdiction pursuant to
6Section 1253.

7(3) (A) Seventy dollars ($70) multiplied by the number of units
8of countywide average daily attendance, up to a maximum of
930,000 units. For purposes of this section, countywide average
10daily attendance means the aggregate number of annual units of
11average daily attendance within the county attributable to all school
12districts for which the county superintendent of schools has
13jurisdiction pursuant to Section 1253, charter schools within the
14county, and the schools operated by the county superintendent of
15schools.

16(B) Sixty dollars ($60) multiplied by the number of units of
17countywide average daily attendance for the portion of countywide
18average daily attendance, if any, above 30,000 units, up to a
19maximum of 60,000 units.

20(C) Fifty dollars ($50) multiplied by the number of units of
21countywide average daily attendance for the portion of countywide
22average daily attendance, if any, above 60,000, up to a maximum
23of 140,000 units.

24(D) Forty dollars ($40) multiplied by the number of units of
25countywide average daily attendance for the portion of countywide
26average daily attendance, if any, above 140,000 units.

27(4) For the 2014-15 fiscal year and each fiscal year thereafter,
28adjust each of the amounts provided in the prior year pursuant to
29paragraphs (1), (2), and (3) by the percentage change in the annual
30average value of the Implicit Price Deflator for State and Local
31Government Purchases of Goods and Services for the United States,
32as published by the United States Department of Commerce for
33the 12-month period ending in the third quarter of the prior fiscal
34year. This percentage change shall be determined using the latest
35data available as of May 10 of the preceding fiscal year compared
36with the annual average value of the same deflator for the 12-month
37period ending in the third quarter of the second preceding fiscal
38year, using the latest data available as of May 10 of the preceding
39fiscal year, as reported by the Department of Finance.

P25   1(b) Divide the enrollment of unduplicated pupils in all schools
2operated by a county superintendent of schools by the total
3enrollment in those schools.

4(1) For purposes of this section, an “unduplicated pupil” is a
5pupil who is classified as an English learner pursuant to Section
652164, as that section read on January 1, 2013; eligible to receive
7a free or reduced-price meal pursuant to Section 49552, as that
8section read on January 1, 2013; or a foster child pursuant to
9Sections 300 and 601 of the Welfare and Institutions Code. A pupil
10shall be counted only once for purposes of this section if any of
11the following apply:

12(A) The pupil is classified as an English learner and is eligible
13for a free or reduced-price meal.

14(B) The pupil is classified as an English learner and is a foster
15child.

16(C) The pupil is classified as a foster child and is eligible for a
17free or reduced-price meal.

18(D) The pupil is classified as an English learner, is eligible for
19a free or reduced-price meal, and is a foster child.

20(2) For purposes of this section, a pupil shall not be classified
21as an English learner for a total of more than five school years by
22any school district, charter school, or county office of education.

23(3) For purposes of this subdivision, a pupil enrolled in a
24juvenile court school operated by a county superintendent of
25schools shall not be included in any enrollment counts.

26(4) Commencing with the 2013-14 fiscal year, a county
27superintendent of schools annually shall report the enrollment of
28unduplicated pupils, pupils classified as English learners, pupils
29eligible for free and reduced-price meals, and foster children in
30schools operated by the county superintendent of schools to the
31Superintendent using the California Longitudinal Pupil
32Achievement Data System. The Superintendent shall make the
33calculations pursuant to this section using the California
34Longitudinal Pupil Achievement Data System.

35(c) Compute an alternative education grant equal to the sum of
36the following:

37(1) For the 2013-14 fiscal year, a base grant of eleven thousand
38forty-five dollars ($11,045). For the 2014-15 fiscal year and each
39fiscal year thereafter, adjust the base grant provided in the prior
40year by the percentage change in the annual average value of the
P26   1Implicit Price Deflator for State and Local Government Purchases
2of Goods and Services for the United States, as published by the
3United States Department of Commerce for the 12-month period
4ending in the third quarter of the prior fiscal year. This percentage
5change shall be determined using the latest data available as of
6May 10 of the preceding fiscal year compared with the annual
7average value of the same deflator for the 12-month period ending
8in the third quarter of the second preceding fiscal year, using the
9latest data available as of May 10 of the preceding fiscal year, as
10reported by the Department of Finance.

11(2) A supplemental grant equal to 35 percent of the base grant
12defined in paragraph (1) multiplied by the percentage calculated
13in subdivision (b).

14(3) A concentration grant equal to 35 percent of the base grant
15defined in paragraph (1) multiplied by the greater of either of the
16following:

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

18(B) Zero.

19(4) (A) Multiply the sum of paragraphs (1), (2), and (3) by the
20total number of units of average daily attendance for pupils
21attending schools operated by a county office of education,
22excluding units of average daily attendance for pupils attending a
23juvenile court school, who are any of the following:

24(i) Probation-referred pursuant to Sections 300, 601, 602, and
25654 of the Welfare and Institutions Code.

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

27(iii) Expelled for any of the reasons specified in subdivision (a)
28or (c) of Section 48915.

29(B) Multiply the number of units of average daily attendance
30for pupils attending a juvenile court school by the sum of the base
31grant calculated in paragraph (1), a supplemental grant equal to
3235 percent of the base grant pursuant to paragraph (1), and a
33concentration grant equal to 17.5 percent of the base grant pursuant
34to paragraph (1).

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

36(d) Add the amount calculated in subdivision (a) to the amount
37calculated in subparagraph (C) of paragraph (4) of subdivision (c).

38(e) Add all of the following to the amount calculated in
39subdivision (d):

P27   1(1) The amount of funding a county superintendent of schools
2received for the 2012-13 fiscal year from funds allocated pursuant
3to the Targeted Instructional Improvement Block Grant program,
4as set forth in Article 6 (commencing with Section 41540) of
5Chapter 3.2 of Part 24 of Division 3 of Title 2, as that article read
6on January 1, 2013.

7(2) The amount of funding a county superintendent of schools
8received for the 2012-13 fiscal year from funds allocated pursuant
9to the Home to School Transportation program, as set forth in
10Article 2 (commencing with Section 39820) of Chapter 1 of Part
1123.5 of Division 3 of Title 2, and Article 10 (commencing with
12Section 41850) of Chapter 5 of Part 24 of Division 3 of Title 2, as
13those articles read on January 1, 2013.

14

2575.  

Commencing with the 2013-14 budget year and for each
15fiscal year thereafter, the Superintendent shall distribute the
16appropriations in Section 14002 to each county superintendent of
17schools according to the following formula:

18(a) Calculate a prior year amount of funding for each county
19superintendent of schools equal to the sum of all of the following:

20(1) Entitlements for revenue limits in the 2012-13 fiscal year
21pursuant to Article 3 (commencing with Section 2550) of Chapter
2212, as that article read on January 1, 2013, adjusted only for
23changes in average daily attendance claimed by the county
24superintendent of schools for pupils identified in clauses (i), (ii)
25and (iii) of subparagraph (A) of paragraph (4) of subdivision (c)
26of Section 2574 and of pupils attending juvenile court schools. All
27other average daily attendance claimed by the county
28superintendent of schools and any other average daily attendance
29used for purposes of calculating revenue limits pursuant to Article
303 (commencing with Section 2550) of Chapter 12, as that article
31read on January 1, 2013, shall be considered final for purposes of
32this section as of the annual apportionment for the 2012-13 fiscal
33year, as calculated for purposes of the certification required on or
34before February 20, 2014, pursuant to Section 41332.

35(2) The amount of funding received from appropriations
36contained in Section 2.00 of the Budget Act of 2012, as adjusted
37by Section 12.42, in the following items: 6110-104-0001,
386110-105-0001, 6110-107-0001, 6110-108-0001, 6110-111-0001,
396110-119-0001, 6110-122-0001, 6110-124-0001, 6110-128-0001,
406110-137-0001, 6110-144-0001, 6110-156-0001, 6110-158-0001,
P28   16110-166-0001, 6110-167-0001, 6110-181-0001, 6110-188-0001,
26110-189-0001, 6110-190-0001, 6110-193-0001, 6110-195-0001,
36110-198-0001, 6110-204-0001, 6110-208-0001, 6110-209-0001,
46110-211-0001, 6110-212-0001, 6110-227-0001, 6110-228-0001,
56110-232-0001, 6110-234-0001, 6110-240-0001, 6110-242-0001,
66110-243-0001, 6110-244-0001, 6110-245-0001, 6110-246-0001,
76110-247-0001, 6110-248-0001, 6110-260-0001, 6110-265-0001,
86110-266-0001, 6110-267-0001, 6110-268-0001, and
96360-101-0001, and 2012-13 fiscal year funding for the Class
10Size Reduction Program pursuant to Chapter 6.10 (commencing
11with Section 52120) of Part 28 of Division 4 of Title 2, as it read
12on January 1, 2013.

13(3) For the 2014-15 fiscal year and for each fiscal year
14thereafter, the amounts calculated pursuant to paragraph (3) of
15subdivision (b) in all prior years.

16(b) Calculate an adjustment to the amount in subdivision (a) as
17follows:

18(1) Subtract the amount in subdivision (a) from the amount
19computed in subdivision (e) of Section 2574. A difference of less
20than zero shall be deemed to be zero.

21(2) Divide the difference for the county superintendent of
22schools calculated in paragraph (1) by the total of the differences
23for all county superintendents of schools calculated pursuant to
24paragraph (1).

25(3) (A) Multiply the proportion calculated in paragraph (2) by
26the amount of funding appropriated for purposes of this section.
27The amount calculated shall not exceed the difference for the
28county superintendent of schools calculated in paragraph (1).

29(B) Add the amount calculated in subparagraph (A) to the
30allocation to the county superintendent of schools as calculated
31pursuant to subdivision (a).

32(c) Subtract from the amount calculated in subparagraph (B) of
33paragraph (3) of subdivision (b) the sum of each of the following:

34(1) Local property tax revenues received pursuant to Section
352573 in the then current fiscal year.

36(2) Any amounts that the county superintendent of schools was
37required to maintain as restricted and not available for expenditure
38in the 1978-79 fiscal year as specified in the second paragraph of
39subdivision (c) of Section 6 of Chapter 292 of the Statutes of 1978,
40as amended by Chapter 51 of the Statutes of 1979.

P29   1(3) The amount received pursuant to subparagraph (C) of
2paragraph (3) of subdivision (a) of Section 33607.5 of the Health
3and Safety Code that is considered property taxes pursuant to that
4section.

5(4) The amount, if any, received pursuant to Sections 34177,
634179.5, 34179.6, and 34188 of the Health and Safety Code.

7(5) (A) The amount, if any, received pursuant to subparagraph
8(B) of paragraph (3) of subdivision (e) of Section 36 of Article
9XIII of the California Constitution.

10(B) The amount in subparagraph (A) shall only offset the amount
11included in paragraph (1) of subdivision (a).

12(d) (1) The Superintendent shall apportion to the county
13superintendent of schools either of the following:

14(A) If the calculation in paragraph (1) of subdivision (b) is
15positive, the amount calculated in subdivision (c).

16(B) (i) If the calculation in paragraph (1) of subdivision (b) is
17equal to zero or is negative, the sum of the amounts in paragraphs
18(1) and (2) of subdivision (a), less the sum of the amounts included
19in paragraphs (1) to (5), inclusive, of subdivision (c).

20(ii) For the first fiscal year in which the amount calculated in
21subdivision (e) of Section 2574 is greater than the sum of the
22amounts in paragraphs (1) and (2) of subdivision (a) and for each
23fiscal year thereafter, the Superintendent shall apportion to the
24county superintendent of schools the amount calculated in
25subdivision (e) of Section 2574, less the sum of the amounts
26included in paragraphs (1) to (5), inclusive, of subdivision (c).

27(2) If the amount determined pursuant to paragraph (1) is
28negative, state aid shall not be apportioned to the county
29superintendent of schools pursuant to paragraph (1). An amount
30of funds of that county superintendent of schools equal to that
31negative amount shall be deemed restricted and not available for
32expenditure during the fiscal year in which subdivision (d) applies.
33In the following fiscal year, that amount shall be considered local
34property tax revenue for purposes of paragraph (1) of subdivision
35(c).

36(3) Commencing with the 2013-14 fiscal year, the
37Superintendent shall apportion to the county superintendent of
38schools an amount of state aid of no less than the amount calculated
39in paragraph (2) of subdivision (a), including any amount
40apportioned pursuant to paragraph (1).

P30   1(e) (1) Funds apportioned pursuant to this section shall be
2available for any locally determined educational purpose.

3(2) Funds apportioned for purposes of a supplemental grant or
4concentration grant, pursuant to paragraphs (2) and (3), and
5subparagraph (B) of paragraph (4) of subdivision (c) of Section
62754, shall be available for any locally determined educational
7purpose that benefits the pupils that generated those funds pursuant
8to a local control and accountability plan adopted by the county
9board of education.

10(3) Commencing with the 2013-14 fiscal year, unless otherwise
11required by federal law, any requirements associated with the items
12listed in paragraph (2) of subdivision (a) shall not apply.

13

2576.  

(a) If a county superintendent of schools enrolls in a
14school operated by the county superintendent of schools a pupil
15not funded pursuant to clause (i), (ii), or (iii) of subparagraph (A)
16of paragraph (4) of subdivision (c) of Section 2574, any attendance
17generated by that pupil shall be credited to the school district of
18residence. That school district shall pay to the county
19superintendent of schools the entire entitlement generated for each
20unit of average daily attendance by that pupil.

21(b) For purposes of this section, the school district of residence
22for a homeless child, as defined in Section 1981.2, shall be deemed
23to be the school district that last provided educational services to
24that child or, if it is not possible to determine that school district,
25the largest school district in the county.

26

2577.  

Notwithstanding any other law, revenue limit funding
27for county superintendents of schools for the 2012-13 fiscal year
28and prior fiscal years shall continue to be adjusted pursuant to
29Article 3 (commencing with Section 2550) of Chapter 12, as that
30section read on January 1, 2013.

31

SEC. 25.  

Article 3 (commencing with Section 8070) of Chapter
321 of Part 6 of Division 1 of Title 1 of the Education Code is
33repealed.

34

SEC. 26.  

Article 4 (commencing with Section 8080) of Chapter
351 of Part 6 of Division 1 of Title 1 of the Education Code is
36repealed.

37

SEC. 27.  

Section 8092 of the Education Code is amended to
38read:

39

8092.  

(a) A school district or districts, a county superintendent
40or superintendents, or the governing body of any agency
P31   1maintaining a regional occupational center or program may contract
2with a private postsecondary school that is authorized or approved
3pursuant to Chapter 8 (commencing with Section 94800) of Part
459 of Division 10 of Title 3 and that has been in operation not less
5than two full calendar years before the effective date of the
6contract, to provide career technical skill training authorized by
7this code. A school district, community college district, or county
8superintendent of schools may contract with an activity center,
9work activity center, or sheltered workshop to provide career
10technical skill training authorized by this code in an adult education
11program for adults with disabilities operated pursuant to
12subdivision (a) of Section 41976.

13(b) A contract between a public entity and a private
14postsecondary school entered into pursuant to this section, or an
15activity center, work activity center, or sheltered workshop, shall
16do both of the following:

17(1) Provide that the amount contracted for per student shall not
18exceed the total direct and indirect costs to provide the same
19training in the public schools or the tuition the private
20postsecondary school charges its private students, whichever is
21lower.

22(2) Provide that all programs, courses, and classes of instruction
23shall meet the standards set forth in the California State Plan for
24Career Technical Education, or is a course of study for adult
25schools approved by the department.

26(c) The students who attend a private postsecondary school or
27an activity center, work activity center, or sheltered workshop
28pursuant to a contract under this section shall be enrollees of the
29public entity and the career technical instruction provided pursuant
30to that contract shall be under the exclusive control and
31management of the governing body of the contracting public entity.

32(d) The Department of Finance and the state department may
33audit the accounts of both the public entity and the private party
34involved in these contracts to the extent necessary to ensure the
35integrity of the public funds involved.

36

SEC. 28.  

Article 8 (commencing with Section 8150) of Chapter
371 of Part 6 of Division 1 of Title 1 of the Education Code is
38repealed.

39

SEC. 29.  

Chapter 3 (commencing with Section 8500) of Part
406 of Division 1 of Title 1 of the Education Code is repealed.

P32   1

SEC. 30.  

Chapter 5.1 (commencing with Section 8820) of Part
26 of Division 1 of Title 1 of the Education Code is repealed.

3

SEC. 31.  

Chapter 9 (commencing with Section 8980) of Part
46 of Division 1 of Title 1 of the Education Code is repealed.

5

SEC. 32.  

Section 10554 of the Education Code is amended to
6read:

7

10554.  

(a) In order for the governing board to carry out its
8responsibilities pursuant to this chapter, there is hereby established
9the Educational Telecommunication Fund. The amount of moneys
10to be deposited in the fund shall be the amount of any offset made
11to the principal apportionments made pursuant to Sections 2575,
1242238.02, as implemented by Section 42238.03, 52616, Article
131.5 (commencing with Section 52335) of Chapter 9 of Part 28 of
14Division 4 of Title 2, and Chapter 7.2 (commencing with Section
1556836) of Part 30 of Division 4 of Title 2, based on a finding that
16these apportionments were not in accordance with law. The
17maximum amount that may be annually deposited in the fund from
18the offset is fifteen million dollars ($15,000,000). The Controller
19shall establish an account to receive and expend moneys in the
20fund. The placement of the moneys in the fund shall occur only
21upon a finding by the Superintendent and the Director of Finance
22that the principal apportionments made pursuant to Sections 2575,
2342238.02, as implemented by Section 42238.03, 52616, and Article
241.5 (commencing with Section 52335) of Chapter 9 of Part 28 of
25Division 4 of Title 2, and Chapter 7.2 (commencing with Section
2656836) of Part 30 of Division 4 of Title 2 were not in accordance
27with existing law and were so identified pursuant to Sections 1624,
2814506, 41020, 41020.2, 41320, 42127.2, and 42127.3, or an
29independent audit that was approved by the department.

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

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

36(1) To support the activities of the team established pursuant to
37subdivision (c) of Section 10551.

38(2) To assist the school districts and county superintendents of
39schools in purchasing both hardware and software to allow school
40districts, county superintendents of schools, and the department
P33   1to be linked for school business and administrative purposes. The
2governing board shall establish a matching share requirement that
3applicant school districts and county superintendents of schools
4must fulfill to receive those funds. It is the intent of the Legislature
5to encourage the distribution of grants to school districts and county
6superintendents of schools to the widest extent possible.

7(3) To provide technical assistance through county offices of
8education to school districts in implementing the standards
9established pursuant to subdivision (a) of Section 10552.

10

SEC. 33.  

Chapter 13 (commencing with Section 11200) of Part
117 of Division 1 of Title 1 of the Education Code is repealed.

12

SEC. 34.  

Chapter 17 (commencing with Section 11600) of Part
137 of Division 1 of Title 1 of the Education Code is repealed.

14

SEC. 35.  

Section 14002 of the Education Code is amended to
15read:

16

14002.  

(a) Notwithstanding any other law, upon certification
17of the Superintendent, the Controller shall transfer from the General
18Fund to Section A of the State School Fund during each fiscal year
19the amount of moneys required to meet the actual computed
20apportionments for the fiscal year for the purposes set forth in
21Sections 2575, 42238.02, and 42238.03.

22(b) The Controller shall also transfer to Section A of the State
23School Fund any additional amounts appropriated thereto by the
24Legislature in augmentation of any of the amounts for any of the
25purposes set forth in Sections 2575, 42238.02, and 42238.03 and
26such additional amounts shall be allowed and apportioned by the
27Superintendent and warrants therefor drawn by the Controller in
28the manner provided in Sections 41050 and 46304, and in this
29article, Article 2 (commencing with Section 14040), Article 3
30(commencing with Section 41330) of Chapter 3 of Part 24 of
31Division 3 of Title 2, and Article 1 (commencing with Section
3241600) of Chapter 4 of Part 24 of Division 3 of Title 2.

33

SEC. 36.  

Section 14002.1 of the Education Code is amended
34to read:

35

14002.1.  

Notwithstanding any other law, for purposes of
36determining the amounts to be certified pursuant to subdivision
37(a) of Section 14002, the Superintendent shall use the property tax
38estimates received from county auditors pursuant to Section 75.70
39of the Revenue and Taxation Code.

40

SEC. 37.  

Section 14002.3 of the Education Code is repealed.

P34   1

SEC. 38.  

Section 14002.5 of the Education Code is repealed.

2

SEC. 39.  

Section 14003 of the Education Code is amended to
3read:

4

14003.  

(a) Commencing with the 2010-11 fiscal year, on
5March 28 of each fiscal year in which the percentage growth in
6per capita General Fund revenues exceeds the percentage growth
7in California per capita personal income, the Controller shall
8transfer from the General Fund to Sections A and B of the State
9School Fund, as set forth in subdivision (c), the amount determined
10pursuant to paragraph (1) minus the amount determined pursuant
11to paragraph (2).

12(1) The product of General Fund revenues from proceeds of
13taxes and one-half of the difference between the percentage growth
14in per capita General Fund revenues from proceeds of taxes and
15in California per capita personal income.

16(2) The amount of the maintenance factor certified pursuant to
17Section 41207.2 that is allocated in the current year pursuant to
18subdivision (e) of Section 8 of Article XVI of the California
19Constitution.

20(b) The amount transferred pursuant to subdivision (a) shall be
21in addition to amounts required to be allocated pursuant to
22subdivision (b) of Section 8 of Article XVI of the California
23Constitution.

24(c) (1) Of the amount determined pursuant to subdivision (a),
25the Controller shall transfer 92 percent to Section A of the State
26School Fund. The Superintendent shall allocate the funds
27transferred pursuant to this paragraph in the following priority
28order:

29(A) Such amounts as necessary to implement the local control
30funding formula pursuant to Section 42238.02, as implemented
31by Section 42238.03, and the county local control funding formula,
32pursuant to Section 2575.

33(B) Any remaining amounts transferred pursuant to this
34paragraph shall be allocated pursuant to Sections 2575 and
3542238.02, as implemented by Section 42238.03.

36(2) Of the amount determined pursuant to subdivision (a), the
37Controller shall transfer 8 percent to Section B of the State School
38Fund. The Chancellor of the Community Colleges shall allocate
39the funds transferred pursuant to this paragraph in equal amounts
40for the following purposes:

P35   1(A) For purposes of career and technical education pursuant to
2Chapter 352 of the Statutes of 2005.

3(B) As a proportionate increase in general purpose
4apportionments for community college districts.

5(d) For purposes of determining the amount required pursuant
6to paragraph (2) or (3), as applicable, of subdivision (b) of Section
78 of Article XVI of the California Constitution for the following
8fiscal year, all amounts transferred in the prior fiscal year pursuant
9to this section shall be deemed allocations to school districts and
10community college districts from General Fund proceeds of taxes
11appropriated pursuant to Article XIII B for that prior fiscal year.

12(e) The sum of the amounts transferred pursuant to this section
13plus the sum of the amounts of the maintenance factor certified
14pursuant to Section 41207.2 that is allocated pursuant to
15subdivision (e) of Section 8 of Article XVI of the California
16Constitution shall not exceed the total amount of eleven billion
17two hundred twelve million nine hundred nine thousand dollars
18($11,212,909,000) less any maintenance factor amount that is
19allocated for the 2009-10 fiscal year.

20

SEC. 40.  

Section 14004 of the Education Code is repealed.

21

SEC. 41.  

Section 14022.3 of the Education Code is amended
22to read:

23

14022.3.  

(a) For purposes of calculating “increases in
24enrollment” pursuant to paragraph (2) or (3) of subdivision (b) of
25Section 8 of Article XVI of the California Constitution, the term
26“enrollment” for school districts, community college districts, and
27state agencies providing direct elementary and secondary level
28instructional services means the sum of the following:

29(1) Second principal apportionment regular average daily
30attendance for kindergarten and grades 1 to 12, inclusive, as defined
31in subdivision (b) of Section 42238.05, and as adjusted for any
32average daily attendance audit findings.

33(2) Annual average daily attendance for county offices of
34education, as calculated pursuant to subdivision (c) of Section
3541601, and as adjusted for any average daily attendance audit
36findings.

37(b) Any determination or computation of enrollment for purposes
38of this section shall be based upon actual data from prior years.
39For the next succeeding year, any determination or computation
P36   1of enrollment for purposes of this section shall be the estimated
2enrollment, adjusted as actual data become available.

3

SEC. 42.  

Section 14022.5 of the Education Code, as added by
4Section 2 of Chapter 82 of the Statutes of 1989, is repealed.

5

SEC. 43.  

Section 14022.5 of the Education Code, as amended
6by Section 1 of Chapter 92 of the Statutes of 1989, is amended to
7read:

8

14022.5.  

(a) For purposes of Section 8.5 of Article XVI of the
9California Constitution, the term “enrollment” shall have the
10following meaning for school districts, community college districts,
11and state agencies providing direct elementary and secondary level
12instructional services:

13(1) In school districts:

14(A) The average daily attendance of each school district reported
15for the second principal apportionment pursuant to Section 41601.

16(B) (i) The annual average daily attendance for children enrolled
17 in a state preschool program under the Child Care and Development
18Services Act (Chapter 2 (commencing with Section 8200) of Part
196), except that one unit of average daily attendance, for purposes
20of this clause, shall equal 700 hours of preschool services.

21(ii) The annual average daily attendance for children enrolled
22in any other program under the Child Care and Development
23Services Act (Chapter 2 (commencing with Section 8200) of Part
246), except that one unit of average daily attendance, for purposes
25of this clause, shall equal 250 days of services. For purposes of
26this clause, less than four hours per day of services shall be defined
27as one-half day, from four up to six and one-half hours per day
28shall be defined as three-fourths day, and six and one-half hours
29or more per day shall be defined as one full day.

30(C) The annual average daily attendance for pupils enrolled in
31an educational program offered by a county office of education,
32as determined pursuant to subdivisions (b) and (c) of Section
3341601.

34(2) In community college districts:

35(A) The annual average daily attendance of a community college
36district computed pursuant to Chapter 4 (commencing with Section
3784500) of Part 50 of Division 7 of Title 3, until Section 84750.5
38becomes operative, and thereafter the number of full-time
39equivalent students as computed pursuant to Section 84750.5.

P37   1(B) The annual average daily attendance for evening community
2college programs designated as adult schools pursuant to Section
378401.

4(C) The annual average daily attendance of apprentices enrolled
5in any class, except that one unit of average daily attendance, for
6purposes of this paragraph, shall equal 525 hours of apprenticeship
7instruction in an apprenticeship program operated pursuant to
8Chapter 4 (commencing with Section 3070) of Division 3 of the
9Labor Code.

10(3) In state agencies that provide direct elementary and
11secondary level instructional services:

12(A) The annual average daily attendance equivalent for pupils
13enrolled in the State Schools for the Handicapped pursuant to Part
1432 (commencing with Section 59000) of Division 4 of Title 2.

15(B) The annual average daily attendance equivalent for pupils
16attending an educational program administered by the Department
17of the Youth Authority pursuant to Article 6 (commencing with
18Section 1120) and Article 10 (commencing with Section 1250) of
19Part 1 of Division 2 of Chapter 3 of the Welfare and Institutions
20Code.

21(C) The annual average daily attendance equivalent for pupils
22in the state hospitals operated by the State Department of
23Developmental Services pursuant to Chapter 8 (commencing with
24Section 56850) of Part 30 of Division 4 of Title 2.

25(b) Any determination or computation of enrollment for purposes
26of this section shall be based upon actual data from prior years.
27For the next succeeding year, any determination or computation
28of enrollment for purposes of this section shall be the estimated
29enrollment, adjusted as actual data become available.

30

SEC. 44.  

Section 14035 of the Education Code is repealed.

31

SEC. 45.  

Section 14041 of the Education Code is amended to
32read:

33

14041.  

(a) The Controller shall draw warrants on the State
34Treasury in favor of the county treasurer of each county in each
35month of each year in the amounts and manner prescribed in this
36section so as to provide in each warrant a portion of the total
37amount certified by the Superintendent as apportioned under the
38provisions of Sections 41330 to 41343, inclusive, and Chapter 4
39(commencing with Section 41600) and Chapter 5 (commencing
40with Section 41760.2) and Article 2 (commencing with Section
P38   142238.02) of Chapter 7 of Part 24 of Division 3 of Title 2, during
2the fiscal year from the State School Fund to the school districts
3under the jurisdiction of the county superintendent of schools of
4the county, to the county school service fund, and to the county
5school tuition fund of the county.

6(1) Warrants for amounts allowed to county school service funds
7under subdivisions (a) and (b) of Section 14054 shall be for
8amounts equal to 5 percent in July, 5 percent in August, and 9
9percent in each remaining month of the fiscal year of the amounts
10certified by the Superintendent as a part of the advance
11apportionment.

12(2) Warrants for amounts apportioned to school districts and
13county school service funds for classes maintained by county
14superintendents of schools and to the county school tuition funds
15shall be for amounts equal to 5 percent in July, 5 percent in August,
16and 9 percent in September, October, November, December, and
17January, of the amounts certified by the Superintendent as a part
18of the advance apportionment.

19(3) Warrants in the months of February to May, inclusive, shall
20be for amounts equal to one-fifth of the difference between the
21amounts certified by the Superintendent for school districts and
22county school service funds for classes maintained by county
23superintendents of schools and county school tuition funds as the
24first principal apportionment and the amounts required by
25paragraph (2).

26(4) Warrants for the month of June shall be for amounts equal
27to the difference between the amounts certified by the
28Superintendent for school districts and county school service funds
29for classes maintained by county superintendents of schools and
30county school tuition funds as the second principal apportionment
31 and the amounts required by paragraphs (2) and (3).

32(5) Warrants in the months of July and August shall include 5
33percent of the estimated total amounts of the special purpose
34apportionment, as determined by the Superintendent. Warrants in
35the months of September to November, inclusive, shall include 9
36percent of the estimated total amounts of the special purpose
37apportionment, as determined by the Superintendent. Warrants in
38December shall include 9 percent of the amounts certified by the
39Superintendent as the special purpose apportionment, as adjusted,
40if necessary, to correct excesses or deficiencies in the estimates
P39   1made for purposes of the warrants in the months of September to
2November, inclusive. An additional 9 percent of the amounts of
3the special purpose apportionment shall be included in the warrants
4for the months from January to June, inclusive.

5(6) Warrants in June shall include the total amounts certified
6by the Superintendent as the final apportionment.

7(7) Notwithstanding paragraph (2) to the contrary, for school
8districts that reported less than 5,000 units of average daily
9attendance in the 1979-80 fiscal year and that received 39 percent
10or more, but less than 75 percent, of their total revenue limits from
11local property taxes in that fiscal year, warrants for amounts
12apportioned to the school districts shall be for amounts equal to
1315 percent in July, August, September, and October; zero percent
14in November and December; and 6 percent in January of the
15amounts certified by the Superintendent as a part of the advance
16apportionment. Warrants for amounts apportioned to the school
17districts for the months of February to May, inclusive, shall be in
18accordance with paragraph (3), and for the month of June, shall
19be in accordance with paragraph (4).

20(8) Notwithstanding paragraph (2) or (7) to the contrary, for
21school districts which reported less than 5,000 units of average
22daily attendance in the 1979-80 fiscal year and which received 75
23percent or more of their total revenue limits from local property
24taxes in that fiscal year, warrants for amounts apportioned to the
25school districts shall be for amounts equal to 15 percent in July;
2630 percent in August and September; 15 percent in October; zero
27percent in November and December; 6 percent in January; and
28zero percent in February, March, April, and May, of the amounts
29certified by the Superintendent as a part of the advance
30apportionment. Warrants for the month of June shall be in
31accordance with paragraph (4).

32(9) (A) Notwithstanding any other law, for the 2012-13 fiscal
33year only, for purposes of warrants drawn on the State Treasury
34pursuant to this section, the amount certified by the Superintendent
35as the advance apportionment and first principal apportionment
36shall include the following reduction:

37(i) The Superintendent shall multiply six billion nine hundred
38twenty-one million five hundred twenty-two thousand dollars
39($6,921,522,000) by the ratio of the revenue limit or charter school
40general purposes funding for each county office of education,
P40   1school district, or charter school, to the statewide total of revenue
2limit and charter school general purpose funding.

3(ii) For each county office of education, school district, or
4charter school, the Superintendent shall subtract the amount
5calculated in clause (i) from the apportionments calculated pursuant
6to Sections 2558, 42238, and 47633, as those sections read on June
730, 2013.

8(B) Notwithstanding any other law, for the 2012-13 fiscal year,
9the Superintendent shall delay the second principal apportionment
10calculated pursuant to Section 41335 from July 2, 2013, to July
1115, 2013, to account for all revenues remitted to school districts
12and county offices of education pursuant to subparagraph (B) of
13paragraph (3) of subdivision (e) of Section 36 of Article XIII of
14the California Constitution. The Superintendent shall ensure that
15the second principal apportionment calculated pursuant to Section
1641335 accounts for the difference between the amount distributed
17pursuant to subparagraph (B) of paragraph (3) of subdivision (e)
18of Section 36 of Article XIII of the California Constitution and
19the offsets listed in subparagraph (A). Nothing in this section shall
20delay the payment of warrants to school districts and county offices
21of education 10 days before the close of the state’s fiscal year
22pursuant to subparagraph (B) of paragraph (3) of subdivision (e)
23of Section 36 of Article XIII of the California Constitution.

24(10) Notwithstanding paragraph (1), (3), or (7), for the 2012-13
25fiscal year only, the Superintendent shall reduce the June warrants
26for any amounts received pursuant to Sections 34179.5 and 34179.6
27of the Health and Safety Code. This reduction shall constitute the
28entire amount distributed pursuant to Sections 34179.5 and 34179.6
29of the Health and Safety Code and offset pursuant to subparagraph
30(B) of paragraph (6) of subdivision (h) of Section 42238, paragraph
31(6) of subdivision (c) of Section 2558, and Section 56836.08, as
32those sections read on June 30, 2013.

33(b) The drawing of the warrants required to be drawn during
34any one of the months mentioned may be postponed by the
35Controller for not to exceed 30 days, but the total amounts due the
36several counties during any fiscal year shall be paid within the
37fiscal year. The warrants shall be paid by the Treasurer from the
38State School Fund and are not subject to Section 925.6 of the
39Government Code.

40

SEC. 46.  

Section 14041.1 of the Education Code is repealed.

P41   1

SEC. 47.  

Section 14041.6 of the Education Code is amended
2to read:

3

14041.6.  

(a) Notwithstanding subdivision (a) of Section 14041,
4or any other law, for the 2008-09 fiscal year warrants for the
5principal apportionments for the month of February in the amount
6of two billion dollars ($2,000,000,000) instead shall be drawn in
7July of the same calendar year pursuant to the certification made
8pursuant to Section 41339.

9(b) Notwithstanding subdivision (a) of Section 14041 or any
10other law, for the 2009-10 fiscal year warrants for the principal
11apportionments for the month of February in the amount of two
12billion dollars ($2,000,000,000) instead shall be drawn in July of
13the same calendar year, and warrants for the month of April in the
14amount of six hundred seventy-eight million six hundred eleven
15thousand dollars ($678,611,000) and for the month of May in the
16amount of one billion dollars ($1,000,000,000) instead shall be
17drawn in August of the same calendar year pursuant to the
18certification made pursuant to Section 41339.

19(c) Notwithstanding subdivision (a) of Section 14041 or any
20other law, for the 2010-11 fiscal year, warrants for the principal
21apportionments for the month of February in the amount of two
22billion dollars ($2,000,000,000), for the month of April in the
23amount of four hundred nineteen million twenty thousand dollars
24($419,020,000), for the month of May in the amount of eight
25hundred million dollars ($800,000,000), and for the month of June
26in the amount of five hundred million dollars ($500,000,000)
27instead shall be drawn in July of the same calendar year and
28warrants for the month of April in the amount of six hundred
29seventy-eight million six hundred eleven thousand dollars
30($678,611,000) and for the month of May in the amount of one
31billion dollars ($1,000,000,000) instead shall be drawn in August
32pursuant to the certification made pursuant to Section 41339.

33(d) Notwithstanding subdivision (a) of Section 14041 or any
34other law, for the 2011-12 fiscal year, warrants for the principal
35apportionments for the month of February in the amount of two
36billion dollars ($2,000,000,000), for the month of April in the
37amount of four hundred nineteen million twenty thousand dollars
38($419,020,000), for the month of May in the amount of eight
39hundred million dollars ($800,000,000), and for the month of June
40in the amount of five hundred million dollars ($500,000,000)
P42   1instead shall be drawn in July of the same calendar year and
2warrants for the month of March in the amount of one billion three
3hundred million dollars ($1,300,000,000), for the month of April
4in the amount of one billion four hundred forty-two million four
5hundred five thousand dollars ($1,442,405,000), and for the month
6of May in the amount of one billion dollars ($1,000,000,000)
7instead shall be drawn in August of the same calendar year pursuant
8to the certification made pursuant to Section 41339.

9(e) Notwithstanding subdivision (a) of Section 14041, or any
10other law, for the 2012-13 fiscal year warrants for the principal
11apportionments for the month of February in the amount of five
12hundred thirty-one million seven hundred twenty thousand dollars
13($531,720,000), for the month of April in the amount of five
14hundred ninety-four million seven hundred forty-eight thousand
15dollars ($594,748,000), for the month of May in the amount of
16one billion nine hundred seventy-six million seven hundred one
17thousand dollars ($1,976,701,000), and for the month of June in
18the amount of five hundred million dollars ($500,000,000) instead
19shall be drawn in July of the same calendar year and warrants for
20the month of March in the amount of one billion twenty-nine
21million four hundred ninety-three thousand dollars
22($1,029,493,000) and for the month of April in the amount of seven
23hundred sixty-three million seven hundred ninety-four thousand
24dollars ($763,794,000) instead shall be drawn in August pursuant
25to the certification made pursuant to Section 41339.

26(f) Notwithstanding subdivision (a) of Section 14041, or any
27other law, commencing with the 2013-14 fiscal year warrants for
28the principal apportionments for the month of April in the amount
29of three hundred ninety million nine hundred thirty-nine thousand
30dollars ($390,939,000), for the month of May in the amount of
31one billion nine hundred seventy-six million seven hundred one
32thousand dollars ($1,976,701,000), and for the month of June in
33the amount of five hundred million dollars ($500,000,000) instead
34shall be drawn in July of the same calendar year and warrants for
35the month of April in the amount of seven hundred sixty-three
36million seven hundred ninety-four thousand dollars ($763,794,000)
37instead shall be drawn in August pursuant to the certification made
38pursuant to Section 41339.

39(g) Notwithstanding subdivision (a) of Section 14041 or any
40other law, commencing with the 2013-14 fiscal year, warrants for
P43   1the principal apportionments for the month of May in the amount
2of two hundred million dollars ($200,000,000) and for the month
3of June in the amount of six hundred ninety-nine million four
4hundred seventy-three thousand dollars ($699,473,000) instead
5shall be drawn in July of the same calendar year pursuant to the
6certification made pursuant to Section 41339. The Superintendent
7shall allocate this deferred amount and repayment to local
8educational agencies based on their proportionate share of funding
9appropriated to local educational agencies pursuant to Section 92
10of Chapter 38 of the Statutes of 2012.

11(h) Except as provided in subdivisions (c) and (e) of Section
1241202, for purposes of making the computations required by
13Section 8 of Article XVI of the California Constitution, the
14warrants drawn pursuant to subdivisions (a) to (g), inclusive, shall
15be deemed to be “General Fund revenues appropriated for school
16districts,” as defined in subdivision (c) of Section 41202, for the
17fiscal year in which the warrants are drawn and included within
18the “total allocations to school districts and community college
19districts from General Fund proceeds of taxes appropriated pursuant
20to Article XIII B,” as defined in subdivision (e) of Section 41202,
21for the fiscal year in which the warrants are drawn.

22

SEC. 48.  

Section 14041.65 of the Education Code is repealed.

23

SEC. 49.  

Section 14401.1 of the Education Code is repealed.

24

SEC. 50.  

Section 14501 of the Education Code is amended to
25read:

26

14501.  

(a) As used in this chapter, “financial and compliance
27audit” shall be consistent with the definition provided in the
28“Standards for Audits of Governmental Organizations, Programs,
29Activities, and Functions” promulgated by the Comptroller General
30of the United States. Financial and compliance audits conducted
31under this chapter shall fulfill federal single audit requirements.

32(b) As used in this chapter, “compliance audit” means an audit
33that ascertains and verifies whether or not funds provided through
34apportionment, contract, or grant, either federal or state, have been
35properly disbursed and expended as required by law or regulation
36or both and includes the verification of each of the following:

37(1) Expenditure of these funds in accordance with the local
38control and accountability plan adopted by the governing board
39of the school district pursuant to Sections 52060 and 52064 or the
40county board of education pursuant to Sections 52062 and 52064.

P44   1(2) The reporting requirements for the sufficiency of textbooks
2or instructional materials, or both, as defined in Section 60119.

3(3) Teacher misassignments pursuant to Section 44258.9.

4(4) The accuracy of information reported on the School
5Accountability Report Card required by Section 33126. The
6requirements set forth in paragraphs (1) and (2) and this paragraph
7shall be added to the audit guide requirements pursuant to
8subdivision (b) of Section 14502.1.

9

SEC. 51.  

Section 17005.3 of the Education Code is amended
10to read:

11

17005.3.  

(a) A school district with an average daily attendance
12of less than 2,501 pupils may apply to the board for a loan to cover
13the project activities of the first or second phase, as those phases
14were defined on July 1, 1993, of a project funded under this
15chapter. The loan shall not be used for the purchase of real property
16and shall be repaid by the school district either through a dedication
17of fees or charges levied pursuant to Section 17620 until the loan
18is repaid or upon receiving the project funding at the construction
19phase, but, in any event, the loan shall be repaid within five years
20from the date on which the board makes the loan. In addition to
21the other methods of repayment specified in this subdivision, the
22board may also notify the Controller if a school district is 90 days
23late in making loan repayments, in which case the Controller shall
24reduce the apportionments to which the school district is otherwise
25entitled under Section 42238, as that section read on June 30, 2013,
26and Section 42238.02, as implemented pursuant to Section
2742238.03, as necessary to recover past due payments and any
28current payments.

29(b) The board may make loans under this section to the extent
30that the board determines that funds are available for that purpose.
31The total annual maximum funds that may be loaned under this
32section is ten million dollars ($10,000,000) per fiscal year.

33(c) The board may make loans under this section only for those
34projects and phases that have met all of the eligibility standards
35of the board and receive approval for an apportionment, but for
36which apportionment funds are not available. In any event, the
37amount of the loan shall not exceed the amount that would have
38been eligible for apportionment.

39

SEC. 52.  

Section 17008.3 of the Education Code is amended
40to read:

P45   1

17008.3.  

(a) The board may establish a revolving loan account
2within the State School Building Lease-Purchase Fund, and may
3allocate from the fund to that account those amounts it determines
4to be necessary for purposes of this section.

5(b) The board may apportion to a school district that submits to
6the board a statement of its intent to subsequently file a project
7application under this chapter, a loan for the purpose of advance
8planning and related administrative costs pursuant to the
9preparation of that application. The loan amount shall not exceed
103 percent of the estimated project cost, as determined pursuant to
11the building cost standards established under this chapter.

12(c) If, within a period of 24 months following the receipt of any
13loan amounts under this section, the project for which those
14advance planning funds were provided has not been found by the
15board to be qualified for funding under this chapter, the board shall
16so notify the Controller, who shall reduce the apportionments to
17which the school district is otherwise entitled under Section 42238,
18as that section read on June 30, 2013, and Section 42238.02, as
19implemented pursuant to Section 42238.03, as necessary to repay
20the amount of all loans provided under this section, over such
21period of time as the board finds to be reasonable. The Controller
22shall transfer the amount of all apportionment reductions imposed
23under this subdivision to the revolving loan account established
24under this section.

25(d) The repayment of loan amounts received under this section
26by school districts other than those described under subdivision
27(c) shall be accomplished by the withholding, as determined by
28the board, of apportionment funds that would be available to the
29school district for purposes of the project for which the school
30district received funding approval under this chapter.

31

SEC. 53.  

Section 17193.5 of the Education Code is amended
32to read:

33

17193.5.  

(a) For purposes of this section, “public credit
34provider” means any financial institution or combination of
35financial institutions, that consists either solely, or has as a member
36or participant, a public retirement system. Notwithstanding any
37other law, a public credit provider, in connection with providing
38credit enhancement for bonds, notes, certificates of participation,
39or other evidences of indebtedness of a participating party, may
40require the participating party to agree to the following conditions:

P46   1(1) If a participating party adopts a resolution by a majority vote
2of its board to participate under this section, it shall provide notice
3to the Controller of that election. The notice shall include a
4schedule for the repayment of principal and interest on the bonds,
5notes, certificates of participation, or other evidence of
6indebtedness and identify the public credit provider that provided
7credit enhancement. The notice shall be provided not later than
8the date of issuance of the bonds.

9(2) If, for any reason a public credit provider is required to make
10principal or interest payments or both pursuant to a credit
11enhancement agreement, the public credit provider shall
12immediately notify the Controller of that fact and of the amount
13paid out by the public credit provider.

14(3) Upon receipt of the notice required by paragraph (2), the
15Controller shall make an apportionment to the public credit
16provider in the amount of the payments made by the public credit
17provider for the purpose of reimbursing the public credit provider
18for its expenditures made pursuant to the credit enhancement
19agreement. The Controller shall make that apportionment only
20from moneys designated for apportionments to a participating
21party, provided that such moneys are from one or more of the
22following:

23(A) Any funding apportioned for purposes of revenue limits or
24the local control funding formula pursuant to Section 42238.02,
25as implemented by Section 42238.03, to a school district or county
26office of education without regard to the specific funding source
27of the apportionment.

28(B) Any general apportionments to a community college district
29without regard to the specific funding source of the apportionment.

30(C) Any funding apportioned for purposes of the charter school
31block grant or the local control funding formula pursuant to Section
3242238.02, as implemented by Section 42238.03, to a charter school
33without regard to the specific funding source of the apportionment.

34(b) The amount apportioned for a participating party pursuant
35to this section shall be deemed to be an allocation to the
36participating party and shall be included in the computation of
37allocation, limit, entitlement, or apportionment for the participating
38party. The participating party and its creditors do not have a claim
39to funds apportioned or anticipated to be apportioned to the trustee
40by the Controller pursuant to paragraph (3) of subdivision (a).

P47   1

SEC. 54.  

Section 17199.4 of the Education Code is amended
2to read:

3

17199.4.  

(a) Notwithstanding any other law, any participating
4party, in connection with securing financing or refinancing of
5projects, or working capital pursuant to this chapter, may elect to
6guarantee or provide for payment of the bonds and related
7obligations in accordance with the following conditions:

8(1) If a participating party adopts a resolution by a majority vote
9of its board to participate under this section, it shall provide notice
10to the Controller of that election. The notice shall include a
11schedule for the repayment of principal and interest on the bonds,
12and any other costs necessary or incidental to financing pursuant
13to this chapter, and identify a trustee appointed by the participating
14party or the authority for purposes of this section. If payment of
15 all or a portion of the principal and interest on the bond is secured
16by a letter of credit or other instrument of direct payment, the
17notice may provide for reimbursements to the provider of the
18instrument in lieu of payment of that portion of the principal and
19interest of the bonds. The notice shall be provided not later than
20the date of issuance of the bonds or 60 days before the next
21payment, whichever date is later. The participating party shall
22update the notice at least annually if there is a change in the
23required payment for any reason, including, but not limited to,
24providing for new or increased costs necessary or incidental to the
25financing.

26(2) If, for any reason, the participating party will not make a
27payment at the time the payment is required, the participating party
28shall notify the trustee of that fact and of the amount of the
29deficiency. If the trustee receives this notice from the participating
30party, or does not receive any payment by the date that payment
31becomes due, the trustee shall immediately communicate that
32information to the Controller.

33(3) Upon receipt of the notice required by paragraph (2), the
34Controller shall make an apportionment to the trustee on the date
35shown in the schedule in the amount of the deficiency for the
36purpose of making the required payment. The Controller shall
37make that apportionment only from moneys designated for
38apportionment to a participating party, provided that such moneys
39are from one or more of the following:

P48   1(A) Any funding apportioned for purposes of revenue limits or
2the local control funding formula pursuant to Section 42238.02,
3as implemented by Section 42238.03, to a school district or county
4office of education without regard to the specific funding source
5of the apportionment.

6(B) Any funding apportioned for purposes of the charter school
7block grant or the local control funding formula pursuant to Section
842238.02, as implemented by Section 42238.03, to a charter school
9without regard to the specific funding source of the apportionment.

10(4) As an alternative to the procedures set forth in paragraphs
11(2) and (3), the participating party may provide a transfer schedule
12in its notice to the Controller of its election to participate under
13this section. The transfer schedule shall set forth amounts to be
14transferred to the trustee and the date for the transfers. The
15Controller, subject to the limitation in paragraph (3), shall make
16apportionments to the trustee of those amounts on the specified
17date for the purpose of making those transfers. The authority may
18require a participating party to proceed under this subdivision.

19(b)  The amount apportioned for a participating party pursuant
20to this section shall be deemed to be an allocation to the
21participating party and shall be included in the computation of
22allocation, limit, entitlement, or apportionment for the participating
23party.

24The participating party and its creditors do not have a claim to
25funds apportioned or anticipated to be apportioned to the trustee
26by the Controller pursuant to paragraph (3) and (4) of subdivision
27(a), or to the funds apportioned to by the Controller to the trustee
28under any other provision of this section.

29(c) (1)  Participating parties that elect to participate under this
30section shall apply to the authority. The authority shall consider
31each of the following priorities in making funds available:

32(A) First priority shall be given to school districts, charter
33schools, or county offices of education that apply for funding for
34instructional classroom space.

35(B) Second priority shall be given to school districts, charter
36schools, or county offices of education that apply for funding of
37modernization of instructional classroom space.

38(C) Third priority shall be given to all other eligible costs, as
39defined in Section 17173.

P49   1(2) The authority shall prioritize applications at appropriate
2intervals.

3(3) A school district electing to participate under this section
4that has applied for revenue bond moneys for purposes of joint
5venture school facilities construction projects, pursuant to Article
65 (commencing with Section 17060) of Chapter 12, shall not be
7subject to the priorities set forth in paragraph (1).

8(d) This section shall not be construed to make the State of
9California liable for any payments within the meaning of Section
101 of Article XVI of the California Constitution or otherwise, except
11as expressly provided in this section.

12(e) A school district that has a qualified or negative certification
13pursuant to Section 42131, or a county office of education that has
14a qualified or negative certification pursuant to Section 1240, may
15not participate under this section.

16

SEC. 55.  

Section 17582 of the Education Code is amended to
17read:

18

17582.  

(a) The governing board of a school district may
19establish a restricted fund to be known as the “district deferred
20maintenance fund” for purposes of major repair or replacement of
21plumbing, heating, air conditioning, electrical, roofing, and floor
22systems, the exterior and interior painting of school buildings, the
23inspection, sampling, and analysis of building materials to
24determine the presence of asbestos-containing materials, the
25encapsulation or removal of asbestos-containing materials, the
26inspection, identification, sampling, and analysis of building
27materials to determine the presence of lead-containing materials,
28the control, management, and removal of lead-containing materials,
29and any other items of maintenance approved by the State
30Allocation Board. Funds deposited in the district deferred
31maintenance fund may be received from any source whatsoever,
32and shall be accounted for separately from all other funds and
33accounts and retained in the district deferred maintenance fund for
34purposes of this section. The term “school building” as used in
35this article includes a facility that a county office of education is
36authorized to use pursuant to Article 3 (commencing with Section
3717280) of Chapter 3.

38(b) Funds deposited in the district deferred maintenance fund
39shall only be expended for maintenance purposes as provided
40pursuant to subdivision (a).

P50   1(c) The governing board of each school district shall have
2complete control over the funds and earnings of funds once
3deposited in the district deferred maintenance fund.

4

SEC. 56.  

Section 17583 of the Education Code is repealed.

5

SEC. 57.  

Section 17584 of the Education Code is repealed.

6

SEC. 58.  

Section 17584.1 of the Education Code, as amended
7by Section 18 of Chapter 7 of the Statutes of 2011, is repealed.

8

SEC. 59.  

Section 17584.1 of the Education Code, as amended
9by Section 19 of Chapter 7 of the Statutes of 2011, is repealed.

10

SEC. 60.  

Section 17584.2 of the Education Code is repealed.

11

SEC. 61.  

Section 17584.3 of the Education Code is repealed.

12

SEC. 62.  

Section 17585 of the Education Code is repealed.

13

SEC. 63.  

Section 17586 of the Education Code is repealed.

14

SEC. 64.  

Section 17587 of the Education Code is repealed.

15

SEC. 65.  

Section 17588 of the Education Code is repealed.

16

SEC. 66.  

Section 17592 of the Education Code is repealed.

17

SEC. 67.  

Section 17592.74 of the Education Code is amended
18to read:

19

17592.74.  

Notwithstanding any other law, the funds provided
20to school districts from the School Facilities Emergency Repair
21Account pursuant to this article for the purpose of emergency repair
22grants shall not be deposited into a school district deferred
23maintenance fund for purposes established pursuant to Section
2417582.

25

SEC. 68.  

Part 10.7 (commencing with Section 17910) of
26Division 1 of Title 1 of the Education Code is repealed.

27

SEC. 69.  

Article 3.6 (commencing with Section 32228) of
28Chapter 2 of Part 19 of Division 1 of Title 1 of the Education Code
29 is repealed.

30

SEC. 70.  

Section 32282 of the Education Code is amended to
31read:

32

32282.  

(a) The comprehensive school safety plan shall include,
33but not be limited to, both of the following:

34(1) Assessing the current status of school crime committed on
35school campuses and at school-related functions.

36(2) Identifying appropriate strategies and programs that will
37provide or maintain a high level of school safety and address the
38school’s procedures for complying with existing laws related to
39school safety, which shall include the development of all of the
40following:

P51   1(A) Child abuse reporting procedures consistent with Article
22.5 (commencing with Section 11164) of Chapter 2 of Title 1 of
3Part 4 of the Penal Code.

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

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

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

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

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

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

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

38(C) Policies pursuant to subdivision (d) of Section 48915 for
39pupils who committed an act listed in subdivision (c) of Section
4048915 and other school-designated serious acts which would lead
P52   1to suspension, expulsion, or mandatory expulsion recommendations
2pursuant to Article 1 (commencing with Section 48900) of Chapter
36 of Part 27 of Division 4 of Title 2.

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

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

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

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

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

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

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

36(c) Each schoolsite council or school safety planning committee
37in developing and updating a comprehensive school safety plan
38shall, where practical, consult, cooperate, and coordinate with
39other schoolsite councils or school safety planning committees.

P53   1(d) The comprehensive school safety plan may be evaluated
2and amended, as needed, by the school safety planning committee,
3but shall be evaluated at least once a year, to ensure that the
4comprehensive school safety plan is properly implemented. An
5updated file of all safety-related plans and materials shall be readily
6available for inspection by the public.

7(e) As comprehensive school safety plans are reviewed and
8updated, the Legislature encourages all plans, to the extent that
9resources are available, to include policies and procedures aimed
10at the prevention of bullying.

11(f) The comprehensive school safety plan, as written and updated
12by the schoolsite council or school safety planning committee,
13shall be submitted for approval under subdivision (a) of Section
1432288.

15

SEC. 71.  

Section 32285 of the Education Code is repealed.

16

SEC. 72.  

Section 33127 of the Education Code is amended to
17read:

18

33127.  

(a) The Superintendent, the Controller, and the Director
19of the Department of Finance shall develop, on or before March
201, 1989, standards and criteria to be reviewed and adopted by the
21state board, and to be used by local educational agencies in the
22development of annual budgets and the management of subsequent
23expenditures from that budget. During the development of the
24standards and criteria, the Superintendent shall convene a
25committee composed of representatives from school districts,
26county offices of education, state agencies, the Legislature, and
27appropriate labor and professional organizations. The committee
28may review and comment on the proposal standards and criteria
29prior to their adoption. In addition, the standards and criteria shall
30be used to monitor the fiscal stability of local educational agencies
31as provided for in Sections 1240.1, 1240.2, 1621, 1623, 33131,
3242127, and 42127.1.

33(b) The Superintendent, the Controller, and the Director of the
34Department of Finance shall update the standards and criteria
35developed pursuant to subdivision (a) on or before September 1,
362005. The updated standards and criteria shall be reviewed and
37adopted pursuant to the procedure established by subdivision (a)
38and are applicable to local educational agency budgets commencing
39with the 2006-07 fiscal year and each fiscal year thereafter.

P54   1(c) The Superintendent, the Controller, and the Director of the
2Department of Finance shall update the standards and criteria
3developed pursuant to subdivision (a) on or before January 1, 2014.
4Standards and criteria related to the requirements of Article 3.8
5(commencing with Section 52060) of Chapter 6.1 of Part 28 of
6Title 2 shall be included. The updated standards and criteria shall
7be reviewed and adopted pursuant to the procedure established by
8subdivision (a) and are applicable to local educational agency
9budgets commencing with the 2014-15 fiscal year and each fiscal
10year thereafter.

11(d) After January 1, 2014, to the extent necessary, any revisions
12or updates to the standards and criteria shall be developed by the
13Superintendent, the Controller, and the Director of the Department
14of Finance pursuant the procedures established by subdivision (a).
15The revisions or updates shall specify the fiscal year in which the
16revisions or updates are applicable.

17

SEC. 73.  

Section 35186 of the Education Code is amended to
18read:

19

35186.  

(a) A school district shall use the uniform complaint
20process it has adopted as required by Chapter 5.1 (commencing
21with Section 4600) of Division 1 of Title 5 of the California Code
22of Regulations, with modifications, as necessary, to help identify
23and resolve any deficiencies related to instructional materials,
24emergency or urgent facilities conditions that pose a threat to the
25health and safety of pupils or staff, and teacher vacancy or
26misassignment.

27(1) A complaint may be filed anonymously. A complainant who
28identifies himself or herself is entitled to a response if he or she
29indicates that a response is requested. A complaint form shall
30include a space to mark to indicate whether a response is requested.
31If Section 48985 is otherwise applicable, the response, if requested,
32and report shall be written in English and the primary language in
33which the complaint was filed. All complaints and responses are
34public records.

35(2) The complaint form shall specify the location for filing a
36complaint. A complainant may add as much text to explain the
37complaint as he or she wishes.

38(3) Except as provided pursuant to paragraph (4), a complaint
39shall be filed with the principal of the school or his or her designee.
40A complaint about problems beyond the authority of the school
P55   1principal shall be forwarded in a timely manner but not to exceed
210 working days to the appropriate school district official for
3resolution.

4(b) The principal or the designee of the district superintendent,
5as applicable, shall make all reasonable efforts to investigate any
6problem within his or her authority. The principal or designee of
7the district superintendent shall remedy a valid complaint within
8a reasonable time period but not to exceed 30 working days from
9the date the complaint was received. The principal or designee of
10the district superintendent shall report to the complainant the
11resolution of the complaint within 45 working days of the initial
12filing. If the principal makes this report, the principal shall also
13report the same information in the same timeframe to the designee
14of the district superintendent.

15(c) A complainant not satisfied with the resolution of the
16principal or the designee of the district superintendent has the right
17to describe the complaint to the governing board of the school
18district at a regularly scheduled hearing of the governing board of
19the school district. As to complaints involving a condition of a
20facility that poses an emergency or urgent threat, as defined in
21 paragraph (1) of subdivision (c) of Section 17592.72, a complainant
22who is not satisfied with the resolution proffered by the principal
23or the designee of the district superintendent has the right to file
24an appeal to the Superintendent, who shall provide a written report
25to the state board describing the basis for the complaint and, as
26appropriate, a proposed remedy for the issue described in the
27complaint.

28(d) A school district shall report summarized data on the nature
29and resolution of all complaints on a quarterly basis to the county
30superintendent of schools and the governing board of the school
31district. The summaries shall be publicly reported on a quarterly
32basis at a regularly scheduled meeting of the governing board of
33the school district. The report shall include the number of
34complaints by general subject area with the number of resolved
35and unresolved complaints. The complaints and written responses
36shall be available as public records.

37(e) The procedure required pursuant to this section is intended
38to address all of the following:

39(1) A complaint related to instructional materials as follows:

P56   1(A) A pupil, including an English learner, does not have
2standards-aligned textbooks or instructional materials or
3state-adopted or district-adopted textbooks or other required
4instructional material to use in class.

5(B) A pupil does not have access to instructional materials to
6use at home or after school.

7(C) Textbooks or instructional materials are in poor or unusable
8condition, have missing pages, or are unreadable due to damage.

9(2) A complaint related to teacher vacancy or misassignment
10as follows:

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

12(B) A teacher who lacks credentials or training to teach English
13learners is assigned to teach a class with more than 20-percent
14English learner pupils in the class. This subparagraph does not
15relieve a school district from complying with state or federal law
16regarding teachers of English learners.

17(C) A teacher is assigned to teach a class for which the teacher
18lacks subject matter competency.

19(3) A complaint related to the condition of facilities that pose
20an emergency or urgent threat to the health or safety of pupils or
21staff as defined in paragraph (1) of subdivision (c) of Section
2217592.72 and any other emergency conditions the school district
23 determines appropriate and the requirements established pursuant
24to subdivision (a) of Section 35292.5.

25(f) In order to identify appropriate subjects of complaint, a notice
26shall be posted in each classroom in each school in the school
27district notifying parents, guardians, pupils, and teachers of the
28following:

29(1) There should be sufficient textbooks and instructional
30materials. For there to be sufficient textbooks and instructional
31materials each pupil, including English learners, must have a
32textbook or instructional materials, or both, to use in class and to
33take home.

34(2) School facilities must be clean, safe, and maintained in good
35repair.

36(3) There should be no teacher vacancies or misassignments as
37defined in paragraphs (2) and (3) of subdivision (h).

38(4) The location at which to obtain a form to file a complaint
39in case of a shortage. Posting a notice downloadable from the
40Internet Web site of the department shall satisfy this requirement.

P57   1(g) A local educational agency shall establish local policies and
2procedures, post notices, and implement this section on or before
3January 1, 2005.

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

5(1) “Good repair” has the same meaning as specified in
6subdivision (d) of Section 17002.

7(2) “Misassignment” means the placement of a certificated
8employee in a teaching or services position for which the employee
9does not hold a legally recognized certificate or credential or the
10placement of a certificated employee in a teaching or services
11position that the employee is not otherwise authorized by statute
12to hold.

13(3) “Teacher vacancy” means a position to which a single
14designated certificated employee has not been assigned at the
15beginning of the year for an entire year or, if the position is for a
16one-semester course, a position to which a single designated
17certificated employee has not been assigned at the beginning of a
18semester for an entire semester.

19

SEC. 74.  

Section 35292.5 of the Education Code is amended
20to read:

21

35292.5.  

(a) Every public and private school maintaining any
22combination of classes from kindergarten to grade 12, inclusive,
23shall comply with all of the following:

24(1) Every restroom shall at all times be maintained and cleaned
25regularly, fully operational and stocked at all times with toilet
26paper, soap, and paper towels or functional hand dryers.

27(2) The school shall keep all restrooms open during school hours
28when pupils are not in classes, and shall keep a sufficient number
29of restrooms open during school hours when pupils are in classes.

30(b) Notwithstanding subdivision (a), a school may temporarily
31 close a restroom as necessary for pupil safety or as necessary to
32repair the facility.

33

SEC. 75.  

Article 10.4 (commencing with Section 35294.10)
34of Chapter 2 of Part 21 of Division 3 of Title 2 of the Education
35Code
is repealed.

36

SEC. 76.  

Section 35735 of the Education Code is amended to
37read:

38

35735.  

(a) Each proposal for the reorganization of school
39districts shall include a computation of the current and projected
40local control funding formula allocation pursuant to Section
P58   142238.02, as implemented by Section 42238.03, per unit of average
2daily attendance for the school districts. That computation shall
3be an integral part of the proposal and shall not be considered
4separately from the proposal. The computation of the local control
5funding formula allocation pursuant to Section 42238.02, as
6implemented by Section 42238.03, for the newly organized school
7districts shall be based on the current information available for
8each affected school district for the second principal apportionment
9period for the fiscal year before the fiscal year in which the
10reorganization is to become effective, unless subdivision (f) applies,
11in which case the computation for the newly organized school
12districts shall be based on the local control funding formula grant
13pursuant to Section 42238.02, as implemented by Section 42238.03.
14For purposes of this article “affected school district” means a
15school district affected by a reorganization because all or a portion
16of its average daily attendance is to be included in the newly
17organized school districts.

18(b) The county superintendent of schools shall compute the
19local control funding formula allocation pursuant to Section
2042238.02, as implemented by Section 42238.03, per unit of average
21daily attendance pursuant to Section 35735.1 for a school district
22involved in an action to reorganize and in an action to transfer
23territory.

24(c) The department shall use information provided pursuant to
25subdivision (a) by the county superintendent of schools in each
26county that has a school district affected by an action to unify or
27by an appeal of a transfer of territory to compute the local control
28funding formula allocation pursuant to Section 42238.02, as
29implemented by Section 42238.03, per unit of average daily
30attendance for a newly organized school district pursuant to Section
3135735.1.

32(d) This section shall only apply to any reorganization proposal
33approved by the state board subsequent to July 1, 2013.

34(e) Any costs incurred by the county superintendent of schools
35in preparing reports pursuant to this section may be billed to the
36affected school districts on a proportionate basis.

37(f) Upon a determination that all school districts or charter
38schools equal or exceed the local control funding formula target
39computed pursuant to Section 42238.02 as determined by the
40calculation of a zero difference pursuant to paragraph (1) of
P59   1subdivision (b) of Section 42238.03 for all school districts and
2charter schools, a reorganizing school district shall compute a per
3unit of average daily attendance funding level pursuant to the local
4control funding formula pursuant to Section 42238.02.

5

SEC. 77.  

Section 35735.1 of the Education Code is amended
6to read:

7

35735.1.  

(a) The local control funding formula allocation per
8unit of average daily attendance for newly organized school
9districts shall be equal to the total of the amount of the local control
10funding formula allocation pursuant to Section 42238.02, as
11implemented by Section 42238.03, per unit of average daily
12attendance of the affected school districts computed pursuant to
13paragraph (1). The following computations shall be made to
14determine the local control funding formula allocation pursuant
15to Section 42238.02, as implemented by Section 42238.03, per
16unit of average daily attendance for the newly organized school
17districts:

18(1) Perform the following computation to arrive at the blended
19local control funding formula pursuant to Section 42238.02, as
20implemented by Section 42238.03:

21(A) Based on the current information available for each affected
22school district for the second principal apportionment period for
23the fiscal year before the fiscal year in which the reorganization
24is to become effective, multiply the local control funding formula
25allocation pursuant to Section 42238.02, as implemented by Section
2642238.03, per unit of average daily attendance for that school
27district by the number of units of average daily attendance for that
28school district that the county superintendent of schools determines
29will be included in the proposed school district.

30(B) Add the amounts calculated pursuant to subparagraph (A)
31and divide that sum by the number of units of average daily
32attendance in the newly organized school districts.

33(b) The amount determined pursuant to subdivision (a) shall be
34the local control funding formula allocation pursuant to Section
3542238.02, as implemented by Section 42238.03, per unit of average
36daily attendance for the newly organized school districts.

37(c) The average daily attendance of a newly organized school
38district, for purposes of Sections 42238.02 and 42238.03, shall be
39the average daily attendance that is attributable to the area
P60   1reorganized for the fiscal year before the fiscal year in which the
2new school district becomes effective for all purposes.

3(d) Notwithstanding this section, commencing with the 2013-14
4fiscal year, a newly reorganized school district shall receive
5state-aid funding pursuant to paragraph (3) of subdivision (b) of
6Section 42238.03 of at least the total combined funding amount
7received by each school district pursuant to paragraphs (1) and (2)
8of subdivision (a) of Section 42238.03 for the fiscal year before
9the fiscal year in which the new school district becomes effective
10for all purposes.

11(e) Notwithstanding any other law, this section shall not be
12subject to waiver by the state board pursuant to Section 33050 or
13by the Superintendent.

14(f) Upon a determination that all school districts or charter
15schools equal or exceed the local control funding formula target
16computed pursuant to Section 42238.02 as determined by the
17calculation of a zero difference pursuant to paragraph (1) of
18subdivision (b) of Section 42238.03, for all school districts and
19charter schools, this section shall not apply and the newly
20reorganized school district shall receive an allocation equal to the
21amount calculated under Section 42238.02 in that fiscal year and
22future fiscal years.

23

SEC. 78.  

Section 35735.2 of the Education Code is repealed.

24

SEC. 79.  

Section 35735.3 of the Education Code is repealed.

25

SEC. 80.  

Section 35735.4 of the Education Code is repealed.

26

SEC. 81.  

Section 35736 of the Education Code is amended to
27read:

28

35736.  

Plans and recommendations may include a proposal
29for dividing the property, other than real property, and obligations
30of any school district proposed to be divided between two or more
31school districts, or proposed to be partially included in one or more
32school districts. As used in this section, “property” includes funds,
33cash on hand, and moneys due but uncollected on the date
34reorganization becomes effective for all purposes, and state
35apportionments based on average daily attendance earned in the
36year immediately preceding the date reorganization becomes
37effective for all purposes. In providing for this division, the plans
38and recommendations may consider the assessed valuation of each
39portion of the school district, the local control funding formula
40allocation pursuant to Section 42238.02, as implemented by Section
P61   142238.03, per pupil in each school district, the number of children
2of school age residing in each portion of the school district, the
3value and location of the school property, and such other matters
4as may be deemed pertinent and equitable. Any such proposal shall
5be an integral part of the proposal and not a separate proposition.

6

SEC. 82.  

Section 35736.5 is added to the Education Code, to
7read:

8

35736.5.  

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

13

SEC. 83.  

Article 4 (commencing with Section 37252) of
14Chapter 2 of Part 22 of Division 3 of Title 2 of the Education Code
15 is repealed.

16

SEC. 84.  

Chapter 2.5 (commencing with Section 37300) of
17Part 22 of Division 3 of Title 2 of the Education Code is repealed.

18

SEC. 85.  

Section 37700 of the Education Code is amended to
19read:

20

37700.  

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

27(b) If a school district operates one or more schools on a
28four-day week pursuant to this section and the program for the
29school year provides less than the 180 days of instruction required
30under Section 46200, as it read on January 1, 2013, the
31Superintendent shall reduce the local control funding formula
32allocation pursuant to Section 42238.02, as implemented pursuant
33to Section 42238.03, per unit of average daily attendance for that
34fiscal year by the amount the school district would have received
35for the increase received pursuant to subdivision (a) of Section
3646200, as it read on January 1, 2013, as adjusted in fiscal years
37subsequent to the 1984-85 fiscal year. If a school district operates
38one or more schools on a four-day school week pursuant to this
39section and the program provides less than the minimum
40instructional minutes required under Section 46201, as it read on
P62   1January 1, 2013, the Superintendent shall reduce the local control
2funding formula allocation pursuant to Section 42238.02, as
3implemented pursuant to Section 42238.03, per unit of average
4daily attendance for that fiscal year in which the reduction occurs
5by the amount the school district would have received for the
6increase in the 1987-88 fiscal year base revenue limit per unit of
7average daily attendance pursuant to paragraph (6) of subdivision
8(b) of Section 42238, as it read on June 30, 2013, as adjusted from
9the 1987-88 fiscal year to the 2012-13 fiscal year, inclusive, and,
10commencing with the 2013-14 fiscal year, pursuant to the local
11control funding formula allocation pursuant to Section 42238.02,
12as implemented pursuant to Section 42238.03, per unit of average
13daily attendance.

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

19(d) Notwithstanding this section, upon a determination that a
20school district identified in subdivision (a) equals or exceeds its
21local control funding formula target computed pursuant to Section
2242238.02 as determined by the calculation of a zero difference
23pursuant to paragraph (1) of subdivision (b) of Section 42238.03,
24the school district, as a condition of apportionment pursuant to
25Section 42238.02, as implemented pursuant to Section 42238.03,
26shall offer 180 days or more of instruction per school year, and
27meet the minimum minute requirements pursuant to paragraph (1)
28of subdivision (a) of Section 46207.

29

SEC. 86.  

Section 37710.3 of the Education Code is amended
30to read:

31

37710.3.  

(a) Beginning in the 2010-11 fiscal year, the Alpaugh
32Unified School District may operate one or more schools in the
33school district on a four-day school week if the district complies
34with the instructional time requirements in Section 37701 and the
35other requirements of this chapter. The state board may waive
36five-consecutive-day operating requirements for any of the
37following programs that operate on a four-day school week
38pursuant to this section, provided that the district meets the
39minimum time requirement for each program:

40(1) Preschools.

P63   1(2) Before and after school programs.

2(3) Independent study programs.

3(4) Child nutrition and food service programs.

4(5) Community day schools.

5(6) Regional occupational centers or programs.

6(7) Continuation high schools.

7(b) If the school district operates one or more schools on a
8four-day school week pursuant to this section, and the program
9for the school year provides fewer than the 180 days of instruction
10required under Section 46200, as it read on January 1, 2013, the
11Superintendent shall reduce the local control funding formula
12allocation pursuant to Section 42238.02, as implemented pursuant
13to Section 42238.03, per unit of average daily attendance for that
14fiscal year by the amount the school district would have received
15for the increase received pursuant to subdivision (a) of Section
1646200, as it read on January 1, 2013, as adjusted in fiscal years
17subsequent to the 1984-85 fiscal year. If the school district operates
18one or more schools on a four-day school week pursuant to this
19section, and the program provides fewer than the minimum
20instructional minutes required under Section 46201, as it read on
21January 1, 2013, the Superintendent shall reduce the local control
22funding formula allocation pursuant to Section 42238.02, as
23implemented pursuant to Section 42238.03, per unit of average
24daily attendance for that fiscal year in which the reduction occurs
25by the amount the school district would have received for the
26increase in the base revenue limit per unit of average daily
27attendance pursuant to subdivision (a) of Section 46201, as it read
28on January 1, 2013, as adjusted from the 1987-88 fiscal year to
29the 2012-13 fiscal year, inclusive, and, commencing with the
302013-14 fiscal year, pursuant to the local control funding formula
31allocation pursuant to Section 42238.02, as implemented pursuant
32to Section 42238.03, per unit of average daily attendance.

33(c) Notwithstanding Section 37710, if a small school having
34between 11 and 99 valid Standardized Testing and Reporting
35Program test scores operating on a four-day school week fails to
36achieve its Academic Performance Index growth target pursuant
37to Section 52052 for two consecutive years, the authority of that
38school to operate on a four-day school week shall be permanently
39revoked commencing with the school year following the second
P64   1consecutive year the school failed to achieve its Academic
2Performance Index growth rate.

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

9(1) Programs the district offered on the fifth schoolday and their
10participation rates.

11(2) Whether the four-day school week schedule resulted in any
12fiscal savings.

13(3) Impact on overall attendance of the schools operating a
14four-day school week.

15(4) Programs for which the state board waived minimum time
16and five-consecutive-day requirements and the operational and
17educational effects of the programs if they operated at less time
18than required.

19(5) The impact of the four-day school week on crime statistics,
20especially on the day on which school would otherwise be in
21 session.

22(6) Information on the Academic Performance Index, pursuant
23to Section 52052, for every year a school in the district operated
24on a four-day school week. The information shall include, but not
25necessarily be limited to, the base and growth Academic
26Performance Index of each school that operated on a four-day
27school week and whether that school met the Academic
28Performance growth targets.

29(e) Notwithstanding this section, upon a determination that a
30school district identified in subdivision (a) equals or exceeds its
31local control funding formula target computed pursuant to Section
3242238.02 as determined by the calculation of a zero difference
33pursuant to paragraph (1) of subdivision (b) of Section 42238.03,
34the school district, as a condition of apportionment pursuant to
35Section 42238.02, as implemented pursuant to Section 42238.03,
36shall offer 180 days or more of instruction per school year, and
37meet the minimum minute requirements pursuant to paragraph (1)
38of subdivision (a) of Section 46207.

P65   1(f) This section shall remain in effect only until January 1, 2016,
2and as of that date is repealed, unless a later enacted statute, that
3is enacted before January 1, 2016, deletes or extends that date.

4

SEC. 87.  

Section 37710.5 of the Education Code is amended
5to read:

6

37710.5.  

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

15(1) Preschools.

16(2) Before and after school programs.

17(3) Independent study programs.

18(4) Child nutrition and food service programs.

19(5) Community day schools.

20(6) Regional occupational centers or programs.

21(7) Continuation high schools.

22(b) If the school district operates one or more schools on a
23four-day week pursuant to this section, and the program for the
24school year provides fewer than the 180 days of instruction required
25under Section 46200, as it read on January 1, 2013, the
26Superintendent shall reduce the local control funding formula
27allocation pursuant to Section 42238.02, as implemented pursuant
28to Section 42238.03, per unit of average daily attendance for that
29fiscal year by the amount the school district would have received
30for the increase received pursuant to subdivision (a) of Section
3146200, as it read on January 1, 2013, as adjusted in fiscal years
32subsequent to the 1984-85 fiscal year. If the school district operates
33one or more schools on a four-day school week pursuant to this
34section, and the program provides fewer than the minimum
35instructional minutes required under Section 46201, as it read on
36January 1, 2013, the Superintendent shall reduce the local control
37funding formula allocation pursuant to Section 42238.02, as
38implemented pursuant to Section 42238.03, per unit of average
39daily attendance for that fiscal year in which the reduction occurs
40by the amount the school district would have received for the
P66   1increase in the base revenue limit per unit of average daily
2attendance pursuant to subdivision (a) of Section 46201, as it read
3on January 1, 2013, as adjusted from the 1987-88 fiscal year to
4the 2012-13 fiscal year, inclusive, and, commencing with the
52013-14 fiscal year, pursuant to Section 42238.02, as implemented
6pursuant to Section 42238.03, per unit of average daily attendance.

7(c) If the school district operates one or more schools on a
8four-day school week pursuant to this section, the school district
9shall submit a report to the department, the Senate Committee on
10Education and the Assembly Committee on Education on January
1115, 2014. The report shall include, but not necessarily be limited
12to, information on the following:

13(1) Programs the district offered on the fifth day and their
14participation rates.

15(2) Whether the four-day school week schedule resulted in any
16fiscal savings.

17(3) Impact on overall attendance of the schools operating a
18four-day school week.

19(4) Programs for which the Superintendent waived minimum
20time and five-consecutive-day requirements and the operational
21and educational effect of the programs if they operated at less time
22than required.

23(d) Notwithstanding this section, upon a determination that a
24school district identified in subdivision (a) equals or exceeds its
25local control funding formula target computed pursuant to Section
2642238.02 as determined by the calculation of a zero difference
27pursuant to paragraph (1) of subdivision (b) of Section 42238.03,
28the school district, as a condition of apportionment pursuant to
29Section 42238.02, as implemented pursuant to Section 42238.03,
30shall offer 180 days or more of instruction per school year, and
31meet the minimum minute requirements pursuant to paragraph (1)
32of subdivision (a) of Section 46207.

33(e) This section shall remain in effect only until January 1, 2015,
34and as of that date is repealed, unless a later enacted statute, that
35is enacted before January 1, 2015, deletes or extends that date.

36

SEC. 88.  

Section 38101 of the Education Code is amended to
37read:

38

38101.  

(a) The governing board of a school district may
39authorize expenditures from the cafeteria fund or cafeteria account
P67   1only for those charges from that fund or account that are defined
2in the California School Accounting Manual.

3(b) A food service program shall not be charged more than once
4for expenditures for the same service. If a food service program
5is being charged for a service as a direct cost, the school district
6shall not also allocate that cost as a direct support cost or indirect
7cost.

8(c) For purposes of this section, an “indirect cost” shall be
9limited to the lesser of the school district’s prior year indirect cost
10rate as approved by the department or the statewide average
11approved indirect cost for the second prior fiscal year.

12(d) Charges to, or transfers from, a food service program shall
13indicate when the charge or transfer was made and shall be
14accompanied by a written explanation of the purpose of, and basis
15for, the expenditure.

16(e) This section does not authorize a school district to charge a
17food service program any charges prohibited by state or federal
18law or regulation.

19(f) If the department and the Department of Finance concur that
20a school district has violated this section, the Superintendent shall
21direct that school district to transfer double the amount improperly
22transferred to the general fund of the school district from that fund
23to the cafeteria fund of the school district or cafeteria account for
24the subsequent fiscal year which is then to be used for the
25improvement of the food service program of the school district. If
26the school district fails to make that transfer as directed, the
27Superintendent shall reduce the regular apportionment of the school
28district determined pursuant to Section 42238, as it read on January
291, 2013, or the local control funding formula allocation pursuant
30to Section 42238.02, as implemented pursuant to Section 42238.03,
31and increase the child nutrition allowance of the school district
32determined pursuant to Section 41350 by double the amount
33improperly transferred to the general fund of the school district
34and that amount is then to be used for improvement of the food
35service program.

36(g) It is the intent of the Legislature in enacting this section that
37responsible school district officials be held fully accountable for
38the accounting and reporting of food service programs and that
39minor and inadvertent instances of noncompliance be resolved in
P68   1a fair and equitable manner to the satisfaction of the Superintendent
2and the Department of Finance.

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

7

SEC. 89.  

Section 39809.5 of the Education Code is repealed.

8

SEC. 90.  

Article 2 (commencing with Section 39820) of
9Chapter 1 of Part 23.5 of Division 3 of Title 2 of the Education
10Code
is repealed.

11

SEC. 91.  

Section 41003.3 of the Education Code is amended
12to read:

13

41003.3.  

(a) Consistent with the provisions of Article 4
14(commencing with Section 17455) of Chapter 4 of Part 10.5 of
15Division 1 of Title 1, from July 1, 2008, to June 30, 2010, inclusive,
16the Dixon Unified School District may sell surplus real property
17previously used as the school farm on Sievers Road, located five
18miles outside of the city and which is not feasible for future school
19construction, together with any personal property located thereon,
20purchased entirely with local funds. The proceeds of the sale shall
21be deposited into the general fund of the school district in order
22to reestablish a 3-percent reserve. The remainder of the proceeds
23from the sale of the property that are not utilized to reestablish the
243-percent reserve shall be deposited into the capital outlay fund
25of the school district.

26(b) In order to expend funds pursuant to subdivision (a), the
27school district shall meet all of the following conditions:

28(1) The school district shall not be eligible for new construction
29funding for 10 years from the date that funds are deposited into
30the general fund of the school district pursuant to subdivision (a),
31except that the school district may apply for new construction
32funds if both of the following conditions are met:

33(A) At least five years have elapsed since the date upon which
34the sale was executed pursuant to subdivision (a).

35(B) The State Allocation Board determines that the school
36district has demonstrated enrollment growth or a need for additional
37sites or building construction that the school district could not have
38easily anticipated at the time the sale was executed pursuant to
39subdivision (a).

P69   1(2) The governing board of the school district shall complete a
2governance training program focusing on fiscal management
3provided by the County Office Fiscal Crisis and Management
4Assistance Team (FCMAT).

5(3) Any remaining funds from the sale of the property shall be
6exhausted for capital outlay purposes before a request for
7modernization funding.

8(4) Notwithstanding any other provision of law, the Dixon
9Unified School District, from July 1, 2008, to June 30, 2010,
10inclusive, shall not be eligible to receive financial hardship
11assistance pursuant to Article 8 (commencing with Section
1217075.10) of Chapter 12.5 of Part 10 of Division 1 of Title 1.

13(5) The governing board of the school district shall certify all
14of the following to the State Allocation Board:

15(A) The school district has no major deferred maintenance
16requirements that cannot be completed with existing capital outlay
17resources.

18(B) The sale of the real property pursuant to this section does
19not violate any provisions of a local general obligation bond act.

20(C) The real property sold pursuant to this section is not suitable
21to meet any projected school construction need for the next 10
22years.

23(6) Before exercising the authority granted by this section, the
24governing board of the school district, at a regularly scheduled
25meeting, shall present a plan for expending one-time resources
26pursuant to this section. The plan shall identify the source and use
27of the funds, and describe how the proposed use of funds, in
28combination with budget reductions, will address the school
29district’s deficit spending and restore the ongoing fiscal solvency
30of the school district.

31(7) No later than 10 years after the date of the sale of surplus
32property pursuant to subdivision (a), the school district shall deposit
33into its capital outlay fund an amount equal to the amount of the
34proceeds from the sale of the property that is deposited into the
35school district’s general fund as needed to establish the 3-percent
36reserve in accordance with subdivision (a).

37(c) This section shall remain in effect only until January 1, 2021,
38and as of that date is repealed, unless a later enacted statute, that
39is enacted before January 1, 2021, deletes or extends that date.

P70   1

SEC. 92.  

Section 41012 of the Education Code is amended to
2read:

3

41012.  

For purposes of determining apportionments pursuant
4to Chapter 5 (commencing with Section 56500) and Chapter 6
5(commencing with Section 56600) of Part 30 of Division 4, the
6Superintendent shall require the use of a uniform cost accounting
7procedure, as set forth in the California School Accounting Manual.

8

SEC. 93.  

Section 41020 of the Education Code is amended to
9read:

10

41020.  

(a) It is the intent of the Legislature to encourage sound
11fiscal management practices among local educational agencies for
12the most efficient and effective use of public funds for the
13education of children in California by strengthening fiscal
14accountability at the school district, county, and state levels.

15(b) (1) Not later than the first day of May of each fiscal year,
16each county superintendent of schools shall provide for an audit
17of all funds under his or her jurisdiction and control and the
18governing board of each local educational agency shall either
19provide for an audit of the books and accounts of the local
20educational agency, including an audit of income and expenditures
21by source of funds, or make arrangements with the county
22superintendent of schools having jurisdiction over the local
23educational agency to provide for that auditing.

24(2) A contract to perform the audit of a local educational agency
25that has a disapproved budget or has received a negative
26certification on any budget or interim financial report during the
27current fiscal year or either of the two preceding fiscal years, or
28for which the county superintendent of schools has otherwise
29determined that a lack of going concern exists, is not valid unless
30approved by the responsible county superintendent of schools and
31the governing board.

32(3) If the governing board of a local educational agency has not
33provided for an audit of the books and accounts of the local
34educational agency by April 1, the county superintendent of schools
35having jurisdiction over the local educational agency shall provide
36for the audit of each local educational agency.

37(4) An audit conducted pursuant to this section shall comply
38fully with the Government Auditing Standards issued by the
39Comptroller General of the United States.

P71   1(5) For purposes of this section, “local educational agency” does
2not include community colleges.

3(c) Each audit conducted in accordance with this section shall
4include all funds of the local educational agency, including the
5student body and cafeteria funds and accounts and any other funds
6under the control or jurisdiction of the local educational agency.
7Each audit shall also include an audit of pupil attendance
8procedures. Each audit shall include a determination of whether
9funds were expended in accordance with a local control and
10accountability plan pursuant to Article 3.8 (commencing with
11Section 52060) of Chapter 6.1 of Part 28 of Division 3.

12(d) All audit reports for each fiscal year shall be developed and
13reported using a format established by the Controller after
14consultation with the Superintendent and the Director of Finance.

15(e) (1) The cost of the audits provided for by the county
16superintendent of schools shall be paid from the county school
17service fund and the county superintendent of schools shall transfer
18the pro rata share of the cost chargeable to each school district
19from school district funds.

20(2) The cost of the audit provided for by a governing board shall
21be paid from local educational agency funds. The audit of the funds
22under the jurisdiction and control of the county superintendent of
23schools shall be paid from the county school service fund.

24(f) (1) The audits shall be made by a certified public accountant
25or a public accountant, licensed by the California Board of
26Accountancy, and selected by the local educational agency, as
27applicable, from a directory of certified public accountants and
28public accountants deemed by the Controller as qualified to conduct
29audits of local educational agencies, which shall be published by
30the Controller not later than December 31 of each year.

31(2) Commencing with the 2003-04 fiscal year and except as
32provided in subdivision (d) of Section 41320.1, it is unlawful for
33a public accounting firm to provide audit services to a local
34educational agency if the lead audit partner, or coordinating audit
35partner, having primary responsibility for the audit, or the audit
36partner responsible for reviewing the audit, has performed audit
37services for that local educational agency in each of the six previous
38fiscal years. The Education Audits Appeal Panel may waive this
39requirement if the panel finds that no otherwise eligible auditor is
40available to perform the audit.

P72   1(3) It is the intent of the Legislature that, notwithstanding
2paragraph (2), the rotation within public accounting firms conform
3to provisions of the federal Sarbanes-Oxley Act of 2002 (Public
4Law 107-204; 15 U.S.C. Sec. 7201 et seq.), and upon release of
5the report required by the act of the Comptroller General of the
6United States addressing the mandatory rotation of registered
7public accounting firms, the Legislature intends to reconsider the
8provisions of paragraph (2). In determining which certified public
9accountants and public accountants shall be included in the
10directory, the Controller shall use the following criteria:

11(A) The certified public accountants or public accountants shall
12be in good standing as certified by the Board of Accountancy.

13(B) The certified public accountants or public accountants, as
14a result of a quality control review conducted by the Controller
15pursuant to Section 14504.2, shall not have been found to have
16conducted an audit in a manner constituting noncompliance with
17subdivision (a) of Section 14503.

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

19(A) A statement that the audit was conducted pursuant to
20standards and procedures developed in accordance with Chapter
213 (commencing with Section 14500) of Part 9 of Division 1 of
22Title 1.

23(B) A summary of audit exceptions and management
24improvement recommendations.

25(C) Each audit of a local educational agency shall include an
26evaluation by the auditor on whether there is substantial doubt
27about the ability of the local educational agency to continue as a
28going concern for a reasonable period of time. This evaluation
29shall be based on the Statement on Auditing Standards (SAS) No.
3059, as issued by the AICPA regarding disclosure requirements
31relating to the ability of the entity to continue as a going concern.

32(2) To the extent possible, a description of correction or plan
33of correction shall be incorporated in the audit report, describing
34the specific actions that are planned to be taken, or that have been
35taken, to correct the problem identified by the auditor. The
36descriptions of specific actions to be taken or that have been taken
37shall not solely consist of general comments such as “will
38implement,” “accepted the recommendation,” or “will discuss at
39a later date.”

P73   1(h) Not later than December 15, a report of each local
2educational agency audit for the preceding fiscal year shall be filed
3with the county superintendent of schools of the county in which
4the local educational agency is located, the department, and the
5Controller. The Superintendent shall make any adjustments
6necessary in future apportionments of all state funds, to correct
7any audit exceptions revealed by those audit reports.

8(i) (1) Commencing with the 2002-03 audit of local educational
9agencies pursuant to this section and subdivision (d) of Section
1041320.1, each county superintendent of schools shall be responsible
11for reviewing the audit exceptions contained in an audit of a local
12educational agency under his or her jurisdiction related to
13attendance, inventory of equipment, internal control, and any
14miscellaneous items, and determining whether the exceptions have
15been either corrected or an acceptable plan of correction has been
16developed.

17(2) Commencing with the 2004-05 audit of local educational
18agencies pursuant to this section and subdivision (d) of Section
1941320.1, each county superintendent of schools shall include in
20the review of audit exceptions performed pursuant to this
21subdivision those audit exceptions related to use of instructional
22materials program funds, teacher misassignments pursuant to
23Section 44258.9, information reported on the school accountability
24report card required pursuant to Section 33126 and shall determine
25whether the exceptions are either corrected or an acceptable plan
26of correction has been developed.

27(j) Upon submission of the final audit report to the governing
28board of each local educational agency and subsequent receipt of
29the audit by the county superintendent of schools having
30 jurisdiction over the local educational agency, the county office
31of education shall do all of the following:

32(1) Review audit exceptions related to attendance, inventory of
33equipment, internal control, and other miscellaneous exceptions.
34Attendance exceptions or issues shall include, but not be limited
35to, those related to local control funding formula allocations
36pursuant to Section 42238.02, as implemented by Section 42238.03,
37and independent study.

38(2) If a description of the correction or plan of correction has
39not been provided as part of the audit required by this section, then
40the county superintendent of schools shall notify the local
P74   1educational agency and request the governing board of the local
2educational agency to provide to the county superintendent of
3schools a description of the corrections or plan of correction by
4March 15.

5(3) Review the description of correction or plan of correction
6and determine its adequacy. If the description of the correction or
7plan of correction is not adequate, the county superintendent of
8schools shall require the local educational agency to resubmit that
9portion of its response that is inadequate.

10(k) Each county superintendent of schools shall certify to the
11Superintendent and the Controller, not later than May 15, that his
12or her staff has reviewed all audits of local educational agencies
13under his or her jurisdiction for the prior fiscal year, that all
14exceptions that the county superintendent was required to review
15were reviewed, and that all of those exceptions, except as otherwise
16noted in the certification, have been corrected by the local
17educational agency or that an acceptable plan of correction has
18been submitted to the county superintendent of schools. In addition,
19the county superintendent shall identify, by local educational
20agency, any attendance-related audit exception or exceptions
21involving state funds, and require the local educational agency to
22which the audit exceptions were directed to submit appropriate
23reporting forms for processing by the Superintendent.

24(l) In the audit of a local educational agency for a subsequent
25year, the auditor shall review the correction or plan or plans of
26correction submitted by the local educational agency to determine
27if the exceptions have been resolved. If not, the auditor shall
28immediately notify the appropriate county office of education and
29the department and restate the exception in the audit report. After
30receiving that notification, the department shall either consult with
31the local educational agency to resolve the exception or require
32the county superintendent of schools to follow up with the local
33educational agency.

34(m) (1) The Superintendent shall be responsible for ensuring
35that local educational agencies have either corrected or developed
36plans of correction for any one or more of the following:

37(A) All federal and state compliance audit exceptions identified
38in the audit.

39(B) Any exceptions that the county superintendent certifies as
40of May 15 have not been corrected.

P75   1(C) Any repeat audit exceptions that are not assigned to a county
2superintendent to correct.

3(2) In addition, the Superintendent shall be responsible for
4ensuring that county superintendents of schools and each county
5board of education that serves as the governing board of a local
6educational agency either correct all audit exceptions identified in
7the audits of county superintendents of schools and of the local
8educational agencies for which the county boards of education
9serve as the governing boards or develop acceptable plans of
10correction for those exceptions.

11(3) The Superintendent shall report annually to the Controller
12on his or her actions to ensure that school districts, county
13superintendents of schools, and each county board of education
14that serves as the governing board of a school district have either
15corrected or developed plans of correction for any of the exceptions
16noted pursuant to paragraph (1).

17(n) To facilitate correction of the exceptions identified by the
18audits issued pursuant to this section, commencing with 2002-03
19audits pursuant to this section, the Controller shall require auditors
20to categorize audit exceptions in each audit report in a manner that
21will make it clear to both the county superintendent of schools and
22the Superintendent which exceptions they are responsible for
23ensuring the correction of by a local educational agency. In
24addition, the Controller annually shall select a sampling of county
25superintendents of schools and perform a followup of the audit
26resolution process of those county superintendents of schools and
27report the results of that followup to the Superintendent and the
28county superintendents of schools that were reviewed.

29(o) County superintendents of schools shall adjust subsequent
30local property tax requirements to correct audit exceptions relating
31to local educational agency tax rates and tax revenues.

32(p) If a governing board or county superintendent of schools
33fails or is unable to make satisfactory arrangements for the audit
34pursuant to this section, the Controller shall make arrangements
35for the audit and the cost of the audit shall be paid from local
36educational agency funds or the county school service fund, as the
37case may be.

38(q) This section does not authorize examination of, or reports
39on, the curriculum used or provided for in any local educational
40agency.

P76   1(r) Notwithstanding any other law, a nonauditing, management,
2or other consulting service to be provided to a local educational
3agency by a certified public accounting firm while the certified
4public accounting firm is performing an audit of the agency
5pursuant to this section must be in accord with Government
6Accounting Standards, Amendment No. 3, as published by the
7United States General Accounting Office.

8

SEC. 94.  

Section 41202 of the Education Code is amended to
9read:

10

41202.  

The words and phrases set forth in subdivision (b) of
11Section 8 of Article XVI of the Constitution of the State of
12California shall have the following meanings:

13(a) “Moneys to be applied by the State,” as used in subdivision
14(b) of Section 8 of Article XVI of the California Constitution,
15means appropriations from the General Fund that are made for
16allocation to school districts, as defined, or community college
17districts. An appropriation that is withheld, impounded, or made
18without provisions for its allocation to school districts or
19community college districts, shall not be considered to be “moneys
20to be applied by the State.”

21(b) “General Fund revenues which may be appropriated pursuant
22to Article XIII B,” as used in paragraph (1) of subdivision (b) of
23Section 8 of Article XVI, means General Fund revenues that are
24the proceeds of taxes as defined by subdivision (c) of Section 8 of
25Article XIII B of the California Constitution, including, for the
261986-87 fiscal year only, any revenues that are determined to be
27in excess of the appropriations limit established pursuant to Article
28XIII B for the fiscal year in which they are received. General Fund
29revenues for a fiscal year to which paragraph (1) of subdivision
30(b) is being applied shall include, in that computation, only General
31Fund revenues for that fiscal year that are the proceeds of taxes,
32as defined in subdivision (c) of Section 8 of Article XIII B of the
33California Constitution, and shall not include prior fiscal year
34revenues. Commencing with the 1995-96 fiscal year, and each
35fiscal year thereafter, “General Fund revenues that are the proceeds
36of taxes,” as defined in subdivision (c) of Section 8 of Article
37XIII B of the California Constitution, includes any portion of the
38proceeds of taxes received from the state sales tax that are
39transferred to the counties pursuant to, and only if, legislation is
40enacted during the 1995-96 fiscal year the purpose of which is to
P77   1realign children’s programs. The amount of the proceeds of taxes
2shall be computed for any fiscal year in a manner consistent with
3the manner in which the amount of the proceeds of taxes was
4computed by the Department of Finance for purposes of the
5Governor’s Budget for the Budget Act of 1986.

6(c) “General Fund revenues appropriated for school districts,”
7as used in paragraph (1) of subdivision (b) of Section 8 of Article
8XVI of the California Constitution, means the sum of
9appropriations made that are for allocation to school districts, as
10defined in Section 41302.5, regardless of whether those
11appropriations were made from the General Fund to the
12Superintendent, to the Controller, or to any other fund or state
13agency for the purpose of allocation to school districts. The full
14amount of any appropriation shall be included in the calculation
15of the percentage required by paragraph (1) of subdivision (b) of
16Article XVI, without regard to any unexpended balance of any
17appropriation. Any reappropriation of funds appropriated in any
18prior year shall not be included in the sum of appropriations.

19(d) “General Fund revenues appropriated for community college
20districts,” as used in paragraph (1) of subdivision (b) of Section 8
21of Article XVI of the California Constitution, means the sum of
22appropriations made that are for allocation to community college
23districts, regardless of whether those appropriations were made
24from the General Fund to the Controller, to the Chancellor of the
25California Community Colleges, or to any other fund or state
26agency for the purpose of allocation to community college districts.
27The full amount of any appropriation shall be included in the
28calculation of the percentage required by paragraph (1) of
29subdivision (b) of Article XVI, without regard to any unexpended
30balance of any appropriation. Any reappropriation of funds
31appropriated in any prior year shall not be included in the sum of
32appropriations.

33(e) “Total allocations to school districts and community college
34districts from General Fund proceeds of taxes appropriated pursuant
35to Article XIII B,” as used in paragraph (2) or (3) of subdivision
36(b) of Section 8 of Article XVI of the California Constitution,
37means the sum of appropriations made that are for allocation to
38school districts, as defined in Section 41302.5, and community
39college districts, regardless of whether those appropriations were
40made from the General Fund to the Controller, to the
P78   1Superintendent, to the Chancellor of the California Community
2Colleges, or to any other fund or state agency for the purpose of
3allocation to school districts and community college districts. The
4full amount of any appropriation shall be included in the calculation
5of the percentage required by paragraph (2) or (3) of subdivision
6(b) of Section 8 of Article XVI, without regard to any unexpended
7balance of any appropriation. Any reappropriation of funds
8appropriated in any prior year shall not be included in the sum of
9appropriations.

10(f) “General Fund revenues appropriated for school districts
11and community college districts, respectively” and “moneys to be
12applied by the state for the support of school districts and
13community college districts,” as used in Section 8 of Article XVI
14of the California Constitution, shall include funds appropriated for
15part-day California state preschool programs under Article 7
16(commencing with Section 8235) of Chapter 2 of Part 6 of Division
171 of Title 1, and the After School Education and Safety Program
18established pursuant to Article 22.5 (commencing with Section
198482) of Chapter 2 of Part 6 of Division 1 of Title 1, and shall not
20include any of the following:

21(1) Any appropriation that is not made for allocation to a school
22district, as defined in Section 41302.5, or to a community college
23district, regardless of whether the appropriation is made for any
24purpose that may be considered to be for the benefit to a school
25district, as defined in Section 41302.5, or a community college
26district. This paragraph shall not be construed to exclude any
27funding appropriated for part-day California state preschool
28programs under Article 7 (commencing with Section 8235) of
29Chapter 2 of Part 6 of Division 1 of Title 1 or the After School
30Education and Safety Program established pursuant to Article 22.5
31(commencing with Section 8482) of Chapter 2 of Part 6 of Division
321 of Title 1.

33(2) Any appropriation made to the Teachers’ Retirement Fund
34or to the Public Employees’ Retirement Fund except those
35appropriations for reimbursable state mandates imposed on or
36before January 1, 1988.

37(3) Any appropriation made to service any public debt approved
38by the voters of this state.

39(4) With the exception of the programs identified in paragraph
40(1), commencing with the 2011-12 fiscal year, any funds
P79   1appropriated for the Child Care and Development Services Act,
2pursuant to Chapter 2 (commencing with Section 8200) of Part 6
3of Division 1 of Title 1.

4(g) “Allocated local proceeds of taxes,” as used in paragraph
5(2) or (3) of subdivision (b) of Section 8 of Article XVI of the
6California Constitution, means, for school districts as defined,
7those local revenues, except revenues identified pursuant to
8paragraph (5) of subdivision (j) of Section 42238.02, that are used
9to offset state aid for school districts in calculations performed
10pursuant to Sections 2575, 42238.02, and Chapter 7.2 (commencing
11with Section 56836) of Part 30 of Division 4.

12(h) “Allocated local proceeds of taxes,” as used in paragraph
13(2) or (3) of subdivision (b) of Section 8 of Article XVI of the
14California Constitution, means, for community college districts,
15those local revenues that are used to offset state aid for community
16college districts. In no event shall the revenues or receipts derived
17from student fees be considered “allocated local proceeds of taxes.”

18(i) For purposes of calculating the 4-percent entitlement pursuant
19to subdivision (a) of Section 8.5 of Article XVI of the California
20Constitution, “the total amount required pursuant to Section 8(b)”
21shall mean the General Fund aid required for schools pursuant to
22subdivision (b) of Section 8 of Article XVI of the California
23Constitution, and shall not include allocated local proceeds of
24taxes.

25

SEC. 95.  

Section 41300 of the Education Code is repealed.

26

SEC. 96.  

Section 41301 of the Education Code is repealed.

27

SEC. 97.  

Section 41303 of the Education Code is amended to
28read:

29

41303.  

The Superintendent shall report to the Controller, on
30or before the 20th day of October of each year, the total average
31daily attendance during the preceding fiscal year credited to all
32kindergarten, including average daily attendance for transitional
33kindergarten, elementary, and high schools in the state and to
34county school tuition funds.

35

SEC. 98.  

Section 41320.1 of the Education Code is amended
36to read:

37

41320.1.  

Acceptance by the school district of the
38apportionments made pursuant to Section 41320 constitutes the
39agreement by the school district to all of the following conditions:

P80   1(a) The Superintendent shall appoint a trustee who has
2recognized expertise in management and finance and may employ,
3on a short-term basis, staff necessary to assist the trustee, including,
4but not limited to, certified public accountants, as follows:

5(1) The expenses incurred by the trustee and necessary staff
6shall be borne by the school district.

7(2) The Superintendent shall establish the terms and conditions
8of the employment, including the remuneration of the trustee. The
9trustee shall serve at the pleasure of, and report directly to, the
10Superintendent.

11(3) The trustee, and necessary staff, shall serve until the school
12district has adequate fiscal systems and controls in place, the
13Superintendent has determined that the school district’s future
14compliance with the fiscal plan approved for the school district
15under Section 41320 is probable, and the Superintendent decides
16to terminate the trustee’s appointment, but in no event, for less
17than three years. The Superintendent shall notify the county
18superintendent of schools, the Legislature, the Department of
19Finance, and the Controller no less than 60 days before the time
20that the Superintendent expects these conditions to be met.

21(4) Before the school district repays the loan, including interest,
22the recipient of the loan shall select an auditor from a list
23established by the Superintendent and the Controller to conduct
24an audit of its fiscal systems. If the fiscal systems are deemed to
25be inadequate, the Superintendent may retain the trustee until the
26deficiencies are corrected. The cost of this audit and any additional
27cost of the trustee shall be borne by the school district.

28(5) Notwithstanding any other law, all reports submitted to the
29trustee are public records.

30(6) To facilitate the appointment of the trustee and the
31employment of necessary staff, for purposes of this section, the
32Superintendent is exempt from the requirements of Article 6
33(commencing with Section 999) of Chapter 6 of Division 4 of the
34Military and Veterans Code and Part 2 (commencing with Section
3510100) of Division 2 of the Public Contract Code.

36(7) Notwithstanding any other law, the Superintendent may
37appoint an employee of the department to act as trustee for up to
38the duration of the trusteeship. The salary and benefits of that
39employee shall be established by the Superintendent and paid by
40the school district. During the time of appointment, the employee
P81   1is an employee of the school district, but shall remain in the same
2retirement system under the same plan as if the employee had
3remained in the department. Upon the expiration or termination
4of the appointment, the employee shall have the right to return to
5his or her former position, or to a position at substantially the same
6level as that position, with the department. The time served in the
7appointment shall be counted for all purposes as if the employee
8had served that time in his or her former position with the
9department.

10(b) (1) The trustee appointed by the Superintendent shall
11monitor and review the operation of the school district. During the
12period of his or her service, the trustee may stay or rescind an
13action of the governing board of the school district that, in the
14judgment of the trustee, may affect the financial condition of the
15school district.

16(2) After the trustee’s period of service, and until the loan is
17repaid, the county superintendent of schools that has jurisdiction
18over the school district may stay or rescind an action of the
19governing board of the school district that, in his or her judgment,
20may affect the financial condition of the school district. The county
21superintendent of schools shall notify the Superintendent, within
22five business days, if he or she stays or rescinds an action of the
23governing board of the school district. The notice shall include,
24but not be limited to, both of the following:

25(A) A description of the governing board of the school district’s
26intended action and its financial implications.

27(B) The rationale and findings that support the county
28superintendent of school’s decision to stay or rescind the action
29of the governing board of the school district.

30(3) If the Superintendent is notified by the county superintendent
31of schools pursuant to paragraph (2), the Superintendent shall
32report to the Legislature, on or before December 30 of every year,
33whether the school district is complying with the fiscal plan
34approved for the school district.

35(4) The Superintendent may establish timelines and prescribe
36formats for reports and other materials to be used by the trustee to
37monitor and review the operations of the school district. The trustee
38shall approve or reject all reports and other materials required from
39the school district as a condition of receiving the apportionment.
40The Superintendent, upon the recommendation of the trustee, may
P82   1reduce an apportionment to the school district in an amount up to
2two hundred dollars ($200) per day for each late or unacceptable
3report or other material required under this part, and shall report
4to the Legislature a failure of the school district to comply with
5the requirements of this section. If the Superintendent determines,
6at any time, that the fiscal plan approved for the school district
7under Section 41320 is unsatisfactory, he or she may modify the
8plan as necessary, and the school district shall comply with the
9plan as modified.

10(c) At the request of the Superintendent, the Controller shall
11transfer to the department, from an apportionment to which the
12school district would otherwise have been entitled pursuant to
13Section 42238.02, as implemented pursuant to Section 42238.03,
14the amount necessary to pay the expenses incurred by the trustee
15and associated costs incurred by the county superintendent of
16schools.

17(d) For the fiscal year in which the apportionments are disbursed
18and every year thereafter, the Controller, or his or her designee,
19shall cause an audit to be conducted of the books and accounts of
20the school district, in lieu of the audit required by Section 41020.
21At the Controller’s discretion, the audit may be conducted by the
22Controller, his or her designee, or an auditor selected by the school
23district and approved by the Controller. The costs of these audits
24shall be borne by the school district. These audits shall be required
25until the Controller determines, in consultation with the
26Superintendent, that the school district is financially solvent, but
27in no event earlier than one year following the implementation of
28the plan or later than the time the apportionment made is repaid,
29including interest. In addition, the Controller shall conduct quality
30control reviews pursuant to subdivision (c) of Section 14504.2.

31(e) For purposes of errors and omissions liability insurance
32policies, the trustee appointed pursuant to this section is an
33employee of the local educational agency to which he or she is
34assigned. For purposes of workers’ compensation benefits, the
35trustee is an employee of the local educational agency to which
36he or she is assigned, except that a trustee appointed pursuant to
37paragraph (7) of subdivision (a) is an employee of the department
38for that purpose.

39(f) Except for an individual appointed by the Superintendent as
40trustee pursuant to paragraph (7) of subdivision (a), the
P83   1state-appointed trustee is a member of the State Teachers’
2Retirement System, if qualified, for the period of service as trustee,
3unless the trustee elects in writing not to become a member. A
4person who is a member or retirant of the State Teachers’
5Retirement System at the time of appointment shall continue to
6be a member or retirant of the system for the duration of the
7appointment. If the trustee chooses to become a member or is
8already a member, the trustee shall be placed on the payroll of the
9school district for purposes of providing appropriate contributions
10to the system. The Superintendent may also require that an
11individual appointed as trustee pursuant to paragraph (7) of
12subdivision (a) be placed on the payroll of the school district for
13purposes of remuneration, other benefits, and payroll deductions.
14For purposes of workers’ compensation benefits, the
15state-appointed trustee is deemed an employee of the local
16educational agency to which he or she is assigned, except that a
17trustee who is appointed pursuant to paragraph (7) of subdivision
18(a) is an employee of the department for that purpose.

19

SEC. 99.  

Section 41329.55 of the Education Code is amended
20to read:

21

41329.55.  

(a) Simultaneous with the execution of the lease
22financing authorized pursuant to Section 41329.52, the bank shall
23provide to the Controller and the school district a notification of
24its lease financing. The notice shall include a schedule of rent
25payments to become due to the bank from the school district and
26the bond trustee. The Controller shall make the apportionment to
27the bond trustee of those amounts on the dates shown on the
28schedule. The bank may further authorize the apportionments to
29be used to pay or reimburse the provider of any credit enhancement
30of bonds and other ongoing or periodic ancillary costs of the bond
31financing issued by the bank in connection with this article. If the
32amount of rent payments vary from the schedule as a result of
33variable interest rates on the bonds, early redemptions, or changes
34in expenses, the bank shall amend or supplement the schedule
35accordingly.

36(b) Except where financing is for a community college district,
37the Controller shall make the apportionment only from moneys in
38Section A of the State School Fund or any local control funding
39formula allocations pursuant to Section 42238.02, as implemented
40by Section 42238.03, designated for apportionment to the school
P84   1district and an apportionment authorized pursuant to this
2subdivision shall constitute a lien senior to any other apportionment
3or payment of State School Fund moneys to or for that school
4district not made pursuant to this subdivision.

5(c) If financing is for the Compton Community College District,
6the Controller shall make the apportionment only from moneys in
7Section B of the State School Fund. An apportionment authorized
8pursuant to this subdivision shall constitute a lien senior to any
9other apportionment or payment of Section B State School Fund
10moneys.

11(d) The amount apportioned for a school district pursuant to
12this section is an allocation to the school district for purposes of
13subdivision (b) of Section 8 of Article XVI of the California
14Constitution. For purposes of computing apportionments for local
15control funding formula allocations pursuant to Section 42238.02,
16as implemented pursuant to Section 42238.03, for any school
17district, the local control funding formula allocations pursuant to
18Section 42238.02, as implemented pursuant to Section 42238.03,
19for any fiscal year in which funds are apportioned for the school
20district pursuant to this section shall include any amounts
21apportioned by the Controller pursuant to subdivisions (a), (b),
22and (c), as well as Section 41329.57.

23(e) No party, including the school district or any of its creditors,
24shall have any claim to the money apportioned or to be apportioned
25to the bond trustee by the Controller pursuant to this section.

26

SEC. 100.  

Section 41332 of the Education Code is amended
27to read:

28

41332.  

The Superintendent shall, on or before February 20th
29of each year, apportion to each elementary school district, high
30school district, county school service fund, and county school
31tuition fund the total amounts allowed to them under Sections
3214054, 14057, 14058, 41790, 41800, 41950, 41970, and 41971,
33whichever are in effect. This apportionment shall be called the
34first principal apportionment.

35

SEC. 101.  

Section 41334 of the Education Code is amended
36to read:

37

41334.  

The Superintendent shall on or before December 10th
38of each year apportion:

P85   1(a) To each elementary, high school, and county school service
2fund the total of amounts allowed to them under Article 14
3(commencing with Section 41930) of Chapter 5.

4(b) To each school district maintaining a high school or high
5schools, each county superintendent of schools, the Division of
6Juvenile Justice and the department the total of amounts allowed
7to them under Sections 41900 to 41912, inclusive.

8This apportionment shall be called the special purpose
9apportionment.

10

SEC. 102.  

Section 41335 of the Education Code is amended
11to read:

12

41335.  

(a) The Superintendent shall on or before July 2 of
13each year apportion to each elementary school district, high school
14district, county school service fund, and county school tuition fund
15the total amounts allowed to each respective district or fund, as
16would have been apportioned on June 25 of the fiscal year of the
17apportionment pursuant to Section 41335 as it read on May 30,
182003, under Sections 14054, 14057, 14058, 41790, 41800, 41950,
1941970, and 41971, whichever are in effect. This apportionment
20 shall be called the second principal apportionment.

21(b) This section shall become operative on June 1, 2003.

22

SEC. 103.  

Section 41341 of the Education Code is amended
23to read:

24

41341.  

(a) (1) If, during any fiscal year, the amount
25apportioned to a school district or to any fund from Section A of
26the State School Fund differs either positively or negatively from
27the amount to which the district or fund was entitled by an amount
28equal to revenue limit funding through the 2012-13 fiscal year,
29and, commencing with the 2013-14 fiscal year, local control
30funding formula entitlements pursuant to Section 42238.02, as
31implemented pursuant to Section 42238.03, for one unit of average
32daily attendance, the Superintendent, in accordance with
33regulations that he or she is hereby authorized to adopt, not later
34than the first succeeding fiscal year from the fiscal year in which
35the computational error was made, shall withhold from, or add to,
36the apportionment made during that fiscal year, the amount of the
37excess or deficiency, as the case may be. Notwithstanding any
38other provision of this code to the contrary, excesses withheld or
39deficiencies added by the Superintendent under this subdivision
P86   1shall be added to or allowed from any portion of the State School
2Fund.

3(2) Notwithstanding paragraph (1), excesses may be withheld
4or deficiencies added to apportionments on account of audit
5exceptions in any fiscal year in which they are certified by the
6Superintendent.

7(b) If, during any fiscal year, the amount apportioned to a
8community college district or to any fund from Section B of the
9State School Fund differs either positively or negatively from the
10amount to which the community college district or fund was
11entitled, by an amount equal to the funding of one full-time
12equivalent student, the Chancellor of the California Community
13 Colleges, in accordance with regulations that he or she is hereby
14authorized to adopt, not later than the first succeeding fiscal year
15from the fiscal year in which the computational error was made,
16shall withhold from, or add to, the apportionment made during
17that fiscal year, the amount of the excess or deficiency, as the case
18may be. Notwithstanding any other provision of this code to the
19contrary, excesses withheld or deficiencies added by the Chancellor
20of the California Community Colleges under this subdivision shall
21be added to or allowed from any portion of the State School Fund.

22

SEC. 104.  

Section 41344 of the Education Code is amended
23to read:

24

41344.  

(a) If, as the result of an audit or review, a local
25educational agency is required to repay an apportionment
26significant audit exception or to pay a penalty arising from an audit
27exception, the Superintendent and the Director of Finance, or their
28designees, jointly shall establish a plan for repayment of state
29school funds that the local educational agency received on the
30basis of average daily attendance, or other data, that did not comply
31with statutory or regulatory requirements that were conditions of
32the apportionments, or for payment of a penalty arising from an
33audit exception. A local educational agency shall request a plan
34within 90 days of receiving the final audit report or review, within
3530 days of withdrawing or receiving a final determination regarding
36an appeal pursuant to subdivision (d), or, in the absence of an
37 appeal pursuant to subdivision (d), within 30 days of withdrawing
38or receiving a determination of a summary review pursuant to
39subdivision (d) of Section 41344.1. At the time the local
40educational agency is notified, the Controller also shall be notified
P87   1of the plan. The plan shall be established in accordance with the
2following:

3(1) The Controller shall withhold the disallowed or penalty
4amount at the next principal apportionment or pursuant to
5paragraph (2), unless subdivision (d) of this section or subdivision
6(d) of Section 41344.1 applies, in which case the disallowed or
7penalty amount shall be withheld, at the next principal
8apportionment or pursuant to paragraph (2) following the
9determination regarding the appeal or summary appeal. In
10calculating a disallowed amount, the Controller shall determine
11the total amount of overpayment received by the local educational
12agency on the basis of average daily attendance, or other data,
13reported by the local educational agency that did not comply with
14one or more statutory or regulatory requirements that are conditions
15of apportionment.

16(2) If the Superintendent and the Director of Finance concur
17that repayment of the full liability or payment of the penalty in the
18current fiscal year would constitute a severe financial hardship for
19the local educational agency, they may approve a plan of equal
20annual payments over a period of up to eight years. The plan shall
21include interest on each year’s outstanding balance at the rate
22earned on the state’s Pooled Money Investment Account during
23that year. The Superintendent and the Director of Finance jointly
24shall establish this plan. The Controller shall withhold amounts
25pursuant to the plan.

26(3) If the Superintendent and the Director of Finance do not
27jointly establish a plan, the Controller shall withhold the entire
28disallowed amount determined pursuant to paragraph (1), or the
29penalty amount, at the next principal apportionment.

30(b) (1) For purposes of computing average daily attendance
31pursuant to Section 42238.5, as it read on January 1, 2013, and
32Section 42238.05, a local educational agency’s prior fiscal year
33average daily attendance shall be reduced by an amount equal to
34any average daily attendance disallowed in the current year, by an
35audit or review, as defined in subdivision (e).

36(2) Commencing with the 1999-2000 fiscal year, this
37subdivision may not result in a local educational agency repaying
38more than the value of the average daily attendance disallowed in
39the audit exception plus interest and other penalties or reductions
40in apportionments as provided by existing law.

P88   1(c) Notwithstanding any other law, this section may not be
2waived under any authority set forth in this code except as provided
3in this section or Section 41344.1.

4(d) Within 60 days of the date on which a local educational
5agency receives a final audit report resulting from an audit or
6review of all or any part of the operations of the local educational
7agency, or within 30 days of receiving a determination of a
8summary review pursuant to subdivision (d) of Section 41344.1,
9a local educational agency may appeal a finding contained in the
10final report, pursuant to Section 41344.1. Within 90 days of the
11date on which the appeal is received by the panel, a hearing shall
12be held at which the local educational agency may present evidence
13or arguments if the local educational agency believes that the final
14report contains any finding that was based on errors of fact or
15interpretation of law, or if the local educational agency believes
16in good faith that it was in substantial compliance with all legal
17requirements. A repayment schedule may not commence until the
18panel reaches a determination regarding the appeal. If the panel
19determines that the local educational agency is correct in its
20assertion, in whole or in part, the allowable portion of any
21apportionment payment that was withheld shall be paid at the next
22principal apportionment.

23(e) (1) As used in this section, “audit or review” means an audit
24conducted by the Controller’s office, an annual audit conducted
25by a certified public accountant or a public accounting firm
26pursuant to Section 41020, and an audit or review conducted by a
27governmental agency that provided the local educational agency
28with an opportunity to provide a written response.

29(2) As used in this section, “local educational agency” includes
30a charter school.

31

SEC. 105.  

Section 41376 of the Education Code is repealed.

32

SEC. 106.  

Section 41378 of the Education Code is repealed.

33

SEC. 107.  

Section 41400 of the Education Code is repealed.

34

SEC. 108.  

Section 41401 of the Education Code is repealed.

35

SEC. 109.  

Section 41402 of the Education Code is repealed.

36

SEC. 110.  

Section 41403 of the Education Code is repealed.

37

SEC. 111.  

Section 41404 of the Education Code is repealed.

38

SEC. 112.  

Section 41406 of the Education Code is repealed.

39

SEC. 113.  

Section 41407 of the Education Code is repealed.

P89   1

SEC. 114.  

Chapter 3.2 (commencing with Section 41500) of
2Part 24 of Division 3 of Title 2 of the Education Code is repealed.

3

SEC. 115.  

Section 41601 of the Education Code is amended
4to read:

5

41601.  

For purposes of this chapter, the governing board of
6each school district shall report to the Superintendent during each
7fiscal year the average daily attendance of the school district for
8all full school months during (1) the period between July 1 and
9December 31, inclusive, to be known as the “first period” report
10for the first principal apportionment, and (2) the period between
11July 1 and April 15, inclusive, to be known as the “second period”
12report for the second principal apportionment. Each county
13superintendent of schools shall report the average daily attendance
14for the schools and classes maintained by him or her and the
15average daily attendance for the county school tuition fund.

16Each report shall be prepared in accordance with instructions
17on forms prescribed and furnished by the Superintendent. Average
18daily attendance shall be computed in the following manner:

19(a) The average daily attendance in the regular elementary,
20middle, and high schools, including continuation schools and
21classes, opportunity schools and classes, and special day classes,
22maintained by the school districts shall be determined by dividing
23the total number of days of attendance allowed in all full school
24months in each period by the number of days the schools are
25actually taught in all full school months in each period, exclusive
26of Saturdays or Sundays and exclusive of weekend makeup classes
27pursuant to Section 37223.

28(b) The attendance for schools and classes maintained by a
29county superintendent of schools and the county school tuition
30fund shall be reported in the same manner as reported by school
31districts. The average daily attendance in special education classes
32operated by county superintendents of schools shall be determined
33in the same manner as all other attendance under subdivision (a).
34For attendance in special classes pursuant to Section 56364.2, the
35average daily attendance shall be reported by the county
36superintendents of schools, but credited for revenue limit purposes
37to the district in which the pupil resides.

38

SEC. 116.  

Section 41601.5 of the Education Code is amended
39to read:

P90   1

41601.5.  

For any fiscal year, a school district with an increase
2in the number of units of average daily attendance from the second
3principal apportionment to the annual apportionment may request
4the county superintendent of schools to adjust the school district’s
5local control funding formula allocations pursuant to Section
642238.02, as implemented by Section 42238.03, by using the units
7of average daily attendance for the annual apportionment in lieu
8of the units of average daily attendance for the second principal
9apportionment. To qualify for this adjustment, the increase in the
10units of average daily attendance between the two periods shall
11meet the following requirements:

12(a) The increase shall be equal to either paragraph (1) or (2):

13(1) Equal to or greater than 2 percent.

14(2) For the 1984-85 fiscal year and each fiscal year thereafter,
15for school districts with less than 2,501 units of average daily
16attendance, equal to or greater than 10 units of average daily
17attendance.

18(b) The increase shall be attributable to pupils of migrant
19agricultural workers.

20

SEC. 117.  

Section 41601.7 of the Education Code is amended
21to read:

22

41601.7.  

A school district with an increase or decrease in the
23number of units of average daily attendance at a necessary small
24high school from the second principal apportionment to the annual
25apportionment may request the county superintendent of schools
26to adjust the district’s local control funding formula allocations
27pursuant to Section 42238.02, as implemented by Section 42238.03,
28by using the units of average daily attendance for the annual
29apportionment for the necessary small high school in lieu of the
30units of average daily attendance for the second principal
31apportionment. To qualify for this adjustment, the following
32conditions shall be met:

33(1) The increase or decrease in the units of average daily
34attendance between the two periods at the necessary small high
35school shall be equal to or greater than 15 percent and such increase
36or decrease shall be attributable to pupils attending a necessary
37small high school which provides a program of education with
38individualized instruction in a residential setting at an institution
39for pupils who have been placed in foster care for rehabilitation
P91   1purposes pursuant to Chapter 2 (commencing with Section 200)
2of Part 1 of Division 2 of the Welfare and Institutions Code.

3(2) The school district reimburses the county superintendent of
4schools for the administrative costs of making the adjustment
5prescribed by this section.

6

SEC. 118.  

Section 41800 of the Education Code is amended
7to read:

8

41800.  

(a) The Superintendent shall allow to each high school
9district one hundred twenty dollars ($120) for each unit of average
10daily attendance in the school district during the fiscal year as
11computed under subdivision (a) of Section 41601, subject to the
12provisions of Section 41608, but not less than two thousand four
13hundred dollars ($2,400) shall be allowed to any high school
14district, to be known as basic state aid.

15 (b) The Superintendent shall exclude from the computation of
16allowances provided by this section the average daily attendance
17during the fiscal year of adults.

18(c) As used in this section, “adult” means a person 18 years of
19age or older or a person who is not concurrently enrolled in a
20regular high school program. However, a person 18 years of age
21or older who is concurrently enrolled in a regular high school
22program is not an adult for purposes of this section.

23

SEC. 119.  

Article 9 (commencing with Section 41840) of
24Chapter 5 of Part 24 of Division 3 of Title 2 of the Education Code
25 is repealed.

26

SEC. 120.  

Article 10 (commencing with Section 41850) of
27Chapter 5 of Part 24 of Division 3 of Title 2 of the Education Code
28 is repealed.

29

SEC. 121.  

Article 10.5 (commencing with Section 41860) of
30Chapter 5 of Part 24 of Division 3 of Title 2 of the Education Code
31 is repealed.

32

SEC. 122.  

Article 11 (commencing with Section 41880) of
33Chapter 5 of Part 24 of Division 3 of Title 2 of the Education Code
34 is repealed.

35

SEC. 123.  

Article 13 (commencing with Section 41920) of
36Chapter 5 of Part 24 of Division 3 of Title 2 of the Education Code
37 is repealed.

38

SEC. 124.  

Section 41972 of the Education Code is amended
39to read:

P92   1

41972.  

(a) Balances available from any appropriation for
2apportionments from Section A of the State School Fund and funds
3provided by subdivision (b) of Section 14002, or provided by any
4other law in lieu of those sections, shall be used to restore any
5reductions in apportionments to elementary, high, and unified
6school districts and county superintendents of schools as follows:

7(1) First, for revenue limits computed pursuant to Sections 2575
8and 42238.02, as implemented by Section 42238.03.

9(2) Second, for special education computed pursuant to Chapter
107.2 (commencing with Section 56836) of Part 30 of Division 4.

11(b) Any remaining balances otherwise transferable under
12subdivision (b) of Section 14002 shall revert to the General Fund.

13

SEC. 125.  

Section 41975 of the Education Code is amended
14to read:

15

41975.  

(a) Apportionments and allowances to a school district
16from Section A of the State School Fund in a fiscal year may not
17be less than the product of one hundred twenty dollars ($120)
18multiplied by the average daily attendance of the district in the
19preceding fiscal year, or two thousand four hundred dollars
20($2,400), whichever amount is the greater.

21(b) State funds apportioned to each school district for categorical
22education programs, or other state funds apportioned to each school
23district from the State School Fund, shall be applied to meet the
24requirement of Section 6 of Article IX of the California
25Constitution to provide a minimum of one hundred twenty dollars
26($120) of state aid per pupil or two thousand four hundred dollars
27($2,400) per school district.

28(c) Notwithstanding any other law, the Superintendent shall not
29increase the local control funding formula pursuant to Section
3042238.02, as implemented by Section 42238.03, apportionment
31of a school district to provide basic state aid pursuant to Section
326 of Article IX of the California Constitution or any other law,
33unless that school district has not received the greater amount of
34one hundred twenty dollars ($120) per pupil or two thousand four
35hundred dollars ($2,400) from all state funds, including funds for
36categorical education programs. If a school district receives less
37than the amount specified in this subdivision, the Superintendent
38shall allocate the difference between the amount of state funds
39received and the constitutional minimum of the greater amount of
P93   1one hundred twenty dollars ($120) per pupil or two thousand four
2hundred dollars ($2,400) per school district.

3

SEC. 126.  

Section 41976 of the Education Code is repealed.

4

SEC. 127.  

Section 41976.1 of the Education Code is repealed.

5

SEC. 128.  

Section 41976.2 of the Education Code is repealed.

6

SEC. 129.  

Section 41976.5 of the Education Code is repealed.

7

SEC. 130.  

Section 42127 of the Education Code is amended
8to read:

9

42127.  

(a) On or before July 1 of each year, the governing
10board of each school district shall accomplish the following:

11(1) Hold a public hearing on the budget to be adopted for the
12subsequent fiscal year. The budget to be adopted shall be prepared
13in accordance with Section 42126. The agenda for that hearing
14shall be posted at least 72 hours before the public hearing and shall
15include the location where the budget will be available for public
16inspection.

17(A) For the 2011-12 fiscal year, notwithstanding any of the
18standards and criteria adopted by the state board pursuant to Section
1933127, each school district budget shall project the same level of
20revenue per unit of average daily attendance as it received in the
212010-11 fiscal year and shall maintain staffing and program levels
22commensurate with that level.

23(B) For the 2011-12 fiscal year, the school district shall not be
24required to demonstrate that it is able to meet its financial
25obligations for the two subsequent fiscal years.

26(2) Adopt a budget and take action on a local control and
27accountability plan pursuant to Sections 52060 and 52064. Not
28later than five days after that adoption or by July 1, whichever
29occurs first, the governing board of the school district shall file
30that budget with the county superintendent of schools. The budget,
31the local control and accountability plan, and supporting data shall
32be maintained and made available for public review. If the
33governing board of the school district does not want all or a portion
34of the property tax requirement levied for the purpose of making
35payments for the interest and redemption charges on indebtedness
36as described in paragraph (1) or (2) of subdivision (b) of Section
371 of Article XIII A of the California Constitution, the budget shall
38include a statement of the amount or portion for which a levy shall
39not be made. For the 2014-15 fiscal year and each fiscal year
40thereafter, the governing board of the school district shall not adopt
P94   1a budget before the governing board of the school district adopts
2a local control and accountability plan or approves an update to
3an existing local control and accountability plan pursuant to
4Sections 52060 and 52064. The governing board of a school district
5shall not adopt a budget that does not align with the local control
6and accountability plan that applies to the subsequent fiscal year.

7(b) The county superintendent of schools may accept changes
8in any statement included in the budget, pursuant to subdivision
9(a), of the amount or portion for which a property tax levy shall
10not be made. The county superintendent of schools or the county
11auditor shall compute the actual amounts to be levied on the
12property tax rolls of the school district for purposes that exceed
13apportionments to the school district pursuant to Chapter 6
14(commencing with Section 95) of Part 0.5 of Division 1 of the
15Revenue and Taxation Code. Each school district shall provide all
16data needed by the county superintendent of schools or the county
17auditor to compute the amounts. On or before August 15, the
18county superintendent of schools shall transmit the amounts
19computed to the county auditor who shall compute the tax rates
20necessary to produce the amounts. On or before September 1, the
21county auditor shall submit the rate computed to the board of
22supervisors for adoption.

23(c) The county superintendent of schools shall do all of the
24following:

25(1) Examine the adopted budget to determine whether it
26complies with the standards and criteria adopted by the state board
27pursuant to Section 33127 for application to final local educational
28agency budgets. The county superintendent of schools shall
29identify, if necessary, technical corrections that are required to be
30made to bring the budget into compliance with those standards
31and criteria.

32(2) Determine whether the adopted budget will allow the school
33district to meet its financial obligations during the fiscal year and
34is consistent with a financial plan that will enable the school district
35to satisfy its multiyear financial commitments. In addition to his
36or her own analysis of the budget of each school district, the county
37superintendent of schools shall review and consider studies, reports,
38evaluations, or audits of the school district that were commissioned
39by the school district, the county superintendent of schools, the
40Superintendent, and state control agencies and that contain
P95   1evidence that the school district is showing fiscal distress under
2the standards and criteria adopted in Section 33127 or that contain
3a finding by an external reviewer that more than three of the 15
4most common predictors of a school district needing intervention,
5as determined by the County Office Fiscal Crisis and Management
6Assistance Team, are present. The county superintendent of schools
7shall either conditionally approve or disapprove a budget that does
8not provide adequate assurance that the school district will meet
9its current and future obligations and resolve any problems
10identified in studies, reports, evaluations, or audits described in
11this paragraph.

12(3) Determine whether the adopted budget will allow the school
13district to implement the specific actions and strategies included
14in the local control and accountability plan adopted by the
15governing board of the school district pursuant to Section 52060
16and 52064.

17(d) On or before August 15, the county superintendent of schools
18shall approve, conditionally approve, or disapprove the adopted
19budget for each school district. For the 2014-15 fiscal year and
20each fiscal year thereafter, the county superintendent of schools
21shall disapprove a budget if a school district does not file a local
22control and accountability plan with the county superintendent of
23schools, if the Superintendent determines that a local control and
24accountability plan filed does not adhere to the template adopted
25by the state board pursuant to Section 52066 or does not include
26all of the components identified in subdivision (a) of Section
2752064, or if the county superintendent of schools determines that
28the expenditures included in the budget do not reflect the costs
29necessary to implement the plan. If a school district does not submit
30a budget to the county superintendent of schools, the county
31superintendent of schools shall develop, at school district expense,
32a budget for that school district by September 15 and transmit that
33budget to the governing board of the school district. The budget
34prepared by the county superintendent of schools shall be deemed
35adopted, unless the county superintendent of schools approves any
36modifications made by the governing board of the school district.
37The approved budget shall be used as a guide for the school
38district’s priorities. The Superintendent shall review and certify
39the budget approved by the county. If, pursuant to the review
40conducted pursuant to subdivision (c), the county superintendent
P96   1of schools determines that the adopted budget for a school district
2does not satisfy paragraph (1) or (2) of that subdivision, he or she
3shall conditionally approve or disapprove the budget and, not later
4than August 15, transmit to the governing board of the school
5district, in writing, his or her recommendations regarding revision
6of the budget and the reasons for those recommendations,
7including, but not limited to, the amounts of any budget
8adjustments needed before he or she can approve that budget. The
9county superintendent of schools may assign a fiscal adviser to
10assist the school district to develop a budget in compliance with
11those revisions. In addition, the county superintendent of schools
12may appoint a committee to examine and comment on the
13superintendent’s review and recommendations, subject to the
14requirement that the committee report its findings to the county
15superintendent of schools no later than August 20. For the 2011-12
16fiscal year, notwithstanding any of the standards and criteria
17adopted by the state board pursuant to Section 33127, the county
18superintendent of schools, as a condition on approval of a school
19district budget, shall not require a school district to project a lower
20level of revenue per unit of average daily attendance than it
21received in the 2010-11 fiscal year nor require the school district
22to demonstrate that it is able to meet its financial obligations for
23the two subsequent fiscal years.

24(e) On or before September 8, the governing board of the school
25district shall revise the adopted budget to reflect changes in
26projected income or expenditures subsequent to July 1, and to
27include any response to the recommendations of the county
28superintendent of schools, shall adopt the revised budget, and shall
29file the revised budget with the county superintendent of schools.
30Before revising the budget, the governing board of the school
31district shall hold a public hearing regarding the proposed revisions,
32to be conducted in accordance with Section 42103. In addition, if
33the adopted budget is disapproved pursuant to subdivision (d), the
34governing board of the school district and the county
35superintendent of schools shall review the disapproval and the
36recommendations of the county superintendent of schools regarding
37revision of the budget at the public hearing. The revised budget
38 and supporting data shall be maintained and made available for
39public review.

P97   1(1) For the 2011-12 fiscal year, notwithstanding any of the
2standards and criteria adopted by the state board pursuant to Section
333127, each school district budget shall project the same level of
4revenue per unit of average daily attendance as it received in the
52010-11 fiscal year and shall maintain staffing and program levels
6commensurate with that level.

7(2) For the 2011-12 fiscal year, the school district shall not be
8required to demonstrate that it is able to meet its financial
9obligations for the two subsequent fiscal years.

10(f) On or before September 22, the county superintendent of
11schools shall provide a list to the Superintendent identifying all
12school districts for which budgets may be disapproved.

13(g) The county superintendent of schools shall examine the
14revised budget to determine whether it (1) complies with the
15standards and criteria adopted by the state board pursuant to Section
1633127 for application to final local educational agency budgets,
17(2) allows the school district to meet its financial obligations during
18the fiscal year, (3) satisfies all conditions established by the county
19superintendent of schools in the case of a conditionally approved
20budget, and (4) is consistent with a financial plan that will enable
21the school district to satisfy its multiyear financial commitments,
22and, not later than October 8, shall approve or disapprove the
23revised budget. If the county superintendent of schools disapproves
24the budget, he or she shall call for the formation of a budget review
25committee pursuant to Section 42127.1, unless the governing board
26of the school district and the county superintendent of schools
27agree to waive the requirement that a budget review committee be
28formed and the department approves the waiver after determining
29that a budget review committee is not necessary. Upon the grant
30of a waiver, the county superintendent of schools immediately has
31the authority and responsibility provided in Section 42127.3. Upon
32approving a waiver of the budget review committee, the department
33shall ensure that a balanced budget is adopted for the school district
34by November 30. If no budget is adopted by November 30, the
35Superintendent may adopt a budget for the school district. The
36Superintendent shall report to the Legislature and the Director of
37Finance by December 10 if any school district, including a school
38district that has received a waiver of the budget review committee
39process, does not have an adopted budget by November 30. This
40report shall include the reasons why a budget has not been adopted
P98   1by the deadline, the steps being taken to finalize budget adoption,
2the date the adopted budget is anticipated, and whether the
3 Superintendent has or will exercise his or her authority to adopt a
4budget for the school district. For the 2011-12 fiscal year,
5notwithstanding any of the standards and criteria adopted by the
6state board pursuant to Section 33127, the county superintendent
7of schools, as a condition on approval of a school district budget,
8shall not require a school district to project a lower level of revenue
9per unit of average daily attendance than it received in the 2010-11
10fiscal year nor require the school district to demonstrate that it is
11able to meet its financial obligations for the two subsequent fiscal
12years.

13(h) Not later than October 8, the county superintendent of
14schools shall submit a report to the Superintendent identifying all
15school districts for which budgets have been disapproved or budget
16review committees waived. The report shall include a copy of the
17written response transmitted to each of those school districts
18pursuant to subdivision (d).

19(i) Notwithstanding any other provision of this section, the
20budget review for a school district shall be governed by paragraphs
21(1), (2), and (3), rather than by subdivisions (e) and (g), if the
22governing board of the school district so elects and notifies the
23county superintendent of schools in writing of that decision, not
24later than October 31 of the immediately preceding calendar year.
25On or before July 1, the governing board of a school district for
26which the budget review is governed by this subdivision, rather
27than by subdivisions (e) and (g), shall conduct a public hearing
28regarding its proposed budget in accordance with Section 42103.

29(1) If the adopted budget of a school district is disapproved
30pursuant to subdivision (d), on or before September 8, the
31governing board of the school district, in conjunction with the
32county superintendent of schools, shall review the superintendent’s
33recommendations at a regular meeting of the governing board of
34the school district and respond to those recommendations. The
35response shall include any revisions to the adopted budget and
36other proposed actions to be taken, if any, as a result of those
37recommendations.

38(2) On or before September 22, the county superintendent of
39schools shall provide a list to the Superintendent identifying all
40school districts for which a budget may be tentatively disapproved.

P99   1(3) Not later than October 8, after receiving the response
2required under paragraph (1), the county superintendent of schools
3shall review that response and either approve or disapprove the
4budget. If the county superintendent of schools disapproves the
5budget, he or she shall call for the formation of a budget review
6committee pursuant to Section 42127.1, unless the governing board
7of the school district and the county superintendent of schools
8agree to waive the requirement that a budget review committee be
9formed and the department approves the waiver after determining
10that a budget review committee is not necessary. Upon the grant
11of a waiver, the county superintendent has the authority and
12responsibility provided to a budget review committee in Section
1342127.3. Upon approving a waiver of the budget review committee,
14the department shall ensure that a balanced budget is adopted for
15the school district by November 30. The Superintendent shall
16report to the Legislature and the Director of Finance by December
1710 if any school district, including a school district that has received
18a waiver of the budget review committee process, does not have
19an adopted budget by November 30. This report shall include the
20reasons why a budget has not been adopted by the deadline, the
21steps being taken to finalize budget adoption, and the date the
22adopted budget is anticipated. For the 2011-12 fiscal year,
23 notwithstanding any of the standards and criteria adopted by the
24state board pursuant to Section 33127, the county superintendent
25of schools, as a condition on approval of a school district budget,
26shall not require a school district to project a lower level of revenue
27per unit of average daily attendance than it received in the 2010-11
28fiscal year nor require the school district to demonstrate that it is
29able to meet its financial obligations for the two subsequent fiscal
30years.

31(4) Not later than 45 days after the Governor signs the annual
32Budget Act, the school district shall make available for public
33review any revisions in revenues and expenditures that it has made
34to its budget to reflect the funding made available by that Budget
35Act.

36(j) Any school district for which the county board of education
37serves as the governing board of the school district is not subject
38to subdivisions (c) to (h), inclusive, but is governed instead by the
39budget procedures set forth in Section 1622.

P100  1

SEC. 131.  

Section 42127.8 of the Education Code is amended
2to read:

3

42127.8.  

(a) The governing board provided for in subdivision
4(b) shall establish a unit to be known as the County Office Fiscal
5Crisis and Management Assistance Team. The team shall consist
6of persons having extensive experience in school district budgeting,
7accounting, data processing, telecommunications, risk management,
8food services, pupil transportation, purchasing and warehousing,
9facilities maintenance and operation, and personnel administration,
10organization, and staffing. The Superintendent may appoint one
11employee of the department to serve on the unit. The unit shall be
12operated under the immediate direction of an appropriate county
13office of education selected jointly, in response to an application
14process, by the Superintendent and the president of the state board
15or his or her designee.

16(b) The unit established under subdivision (a) shall be selected
17and governed by a 25-member governing board consisting of one
18representative chosen by the California County Superintendents
19Educational Services Association from each of the 11 county
20service regions designated by the association, 11 superintendents
21of school districts chosen by the Association of California School
22Administrators from each of the 11 county service regions, one
23representative from the department chosen by the Superintendent,
24the Chancellor of the California Community Colleges or his or her
25designee, and one member of a community college district
26governing board chosen by the chancellor. The governing board
27of the County Office Fiscal Crisis and Management Assistance
28Team shall select a county superintendent of schools to chair the
29unit.

30(c) (1) The Superintendent may request the unit to provide the
31assistance described in subdivision (b) of Section 1624, Section
321630, subdivision (b) of Section 42127.3, subdivision (c) of Section
3342127.6, Section 42127.9, and subdivision (a) of Section
3442238.051, and to review the fiscal and administrative condition
35of any county office of education, school district, or charter school.

36(2) A county superintendent of schools may request the unit to
37review the fiscal or administrative condition of a school district
38or charter school under his or her jurisdiction.

P101  1(3) The Board of Governors of the California Community
2Colleges may request the unit to provide the assistance described
3in Section 84041.

4(d) In addition to the functions described in subdivision (c), the
5unit shall do all of the following:

6(1) Provide fiscal management assistance, at the request of any
7school district, charter school, or county office of education, or,
8pursuant to subdivision (g) of Section 84041, at the request of any
9community college district. Each school district, charter school,
10or county office of education receiving that assistance shall be
11required to pay the onsite personnel costs and travel costs incurred
12by the unit for that purpose, pursuant to rates determined by the
13governing board established under subdivision (b). The governing
14board annually shall distribute rate information to each school
15district, charter school, and county office of education.

16(2) Facilitate training for members of the governing board of
17the school district, district and county superintendents, chief
18financial officers within the district, and schoolsite personnel whose
19primary responsibility is to address fiscal issues. Training services
20shall emphasize efforts to improve fiscal accountability and expand
21the fiscal competency of local agencies. The unit shall use state
22professional associations, private organizations, and public agencies
23to provide guidance, support, and the delivery of any training
24services.

25(3) Facilitate fiscal management training through the 11 county
26service regions to county office of education staff to ensure that
27they develop the technical skills necessary to perform their
28fiduciary duties. The governing board established pursuant to
29subdivision (b) shall determine the extent of the training that is
30necessary to comply with this paragraph.

31(4) Produce a training calendar, to be disseminated semiannually
32to each county service region, that publicizes all of the fiscal
33training services that are being offered at the local, regional, and
34state levels.

35(e) The governing board shall reserve not less than 25 percent,
36nor more than 50 percent, of its revenues each year for expenditure
37for the costs of contracts and professional services as management
38assistance to school districts or county superintendents of schools
39in which the board determines that a fiscal emergency exists.

P102  1(f) The governing board established under subdivision (b) may
2levy an annual assessment against each county office of education
3that elects to participate under this section in an amount not to
4exceed twenty cents ($0.20) per unit of total average daily
5attendance for all school districts within the county. The revenues
6collected pursuant to that assessment shall be applied to the
7expenses of the unit.

8(g) The governing board established under subdivision (b) may
9pay to the department, from any available funds, a reasonable
10amount to reimburse the department for actual administrative
11expenses incurred in the review of the budgets and fiscal conditions
12of school districts, charter schools, and county superintendents of
13schools.

14(h) When employed as a fiscal adviser by the department
15pursuant to Section 1630, employees of the unit established
16pursuant to subdivision (a) shall be considered employees of the
17department for purposes of errors and omissions liability insurance.

18(i) (1) The unit shall request and review applications to establish
19regional teams of education finance experts throughout the state.

20(2) To the extent that funding is provided for purposes of this
21subdivision in the annual Budget Act or through another
22appropriation, regional teams selected by the Superintendent, in
23consultation with the unit, shall provide training and technical
24expertise to school districts, charter schools, and county offices of
25education facing fiscal difficulties.

26(3) The regional teams shall follow the standards and guidelines
27of and remain under the general supervision of the governing board
28established under subdivision (b).

29(4) It is the intent of the Legislature that, to the extent possible,
30the regional teams be distributed geographically throughout the
31various regions of the state in order to provide timely, cost-effective
32expertise to school districts, charter schools, county offices of
33education, and community college districts throughout the state.

34

SEC. 132.  

Section 42238 of the Education Code is repealed.

35

SEC. 133.  

Section 42238.02 is added to the Education Code,
36to read:

37

42238.02.  

(a) The amount computed pursuant to this section
38shall be known as the school district and charter school local
39control funding formula.

P103  1(b) (1) For purposes of this section “unduplicated pupil” means
2a pupil enrolled in a school district or a charter school who is either
3classified as an English learner pursuant to Section 52164, as that
4section read on January 1, 2013, eligible to receive a free or
5reduced-price meal pursuant to Section 49552, as that section read
6on January 1, 2013, or is a foster youth pursuant to Sections 300
7and 601 of the Welfare and Institutions Code. A pupil shall be
8counted only once for purposes of this section if any of the
9following apply:

10(A) The pupil is classified as an English learner and is eligible
11for a free or reduced-price meal.

12(B) The pupil is classified as an English learner and is a foster
13youth.

14(C) The pupil is classified as a foster youth and is eligible for
15a free or reduced-price meal.

16(D) The pupil is classified as an English learner, is eligible for
17a free or reduced-price meal, and is a foster youth.

18(2) For purposes if this section, a pupil shall not be classified
19as an English learner for more than five school years in total.

20(3) Commencing with the 2013-14 fiscal year, a school district
21or charter school shall annually report their enrolled unduplicated
22pupil, free and reduced-price meal eligibility, foster youth, and
23English learner pupil counts to the Superintendent.

24(4) Commencing with the 2013-14 fiscal year, a county office
25of education shall review and validate reported English learner,
26foster youth, and free or reduced-price meal eligible pupil data for
27 school districts and charter schools under their jurisdiction to
28ensure the data is reported accurately.

29(5) The counts of unduplicated pupils shall be derived by the
30Superintendent using the California Longitudinal Pupil
31Achievement Data System.

32(6) The Superintendent shall calculate the percentage of
33unduplicated pupils for each school district and charter school by
34dividing the enrollment of unduplicated pupils in a school district
35or charter school by the total enrollment in that school district or
36charter school.

37(c) Commencing with the 2013-14 fiscal year and each fiscal
38year thereafter, the Superintendent shall annually calculate a local
39control funding formula grant for each school district and charter
40school in the state pursuant to this section.

P104  1(d) The Superintendent shall compute a grade span adjusted
2base grant equal to the total of the following amounts:

3(1) For the 2013-14 fiscal year, a base grant of:

4(A) Seven thousand six hundred eighty dollars ($7,680) for
5average daily attendance in grades 9 to 12, inclusive.

6(B) Six thousand six hundred twenty-eight dollars ($6,628) for
7average daily attendance in grades 7 and 8.

8(C) Six thousand four hundred thirty-seven dollars ($6,437) for
9average daily attendance in grades 4 to 6, inclusive.

10(D) Six thousand three hundred forty-two dollars ($6,342) for
11average daily attendance in kindergarten and grades 1 to 3,
12inclusive.

13(2) In each year the grade span adjusted base grants in paragraph
14(1) shall be adjusted by the percentage change in the annual average
15value of the Implicit Price Deflator for State and Local Government
16Purchases of Goods and Services for the United States, as published
17by the United States Department of Commerce for the 12-month
18period ending in the third quarter of the prior fiscal year. This
19percentage change shall be determined using the latest data
20available as of May 10 of the preceding fiscal year compared with
21the annual average value of the same deflator for the 12-month
22period ending in the third quarter of the second preceding fiscal
23year, using the latest data available as of May 10 of the preceding
24fiscal year, as reported by the Department of Finance.

25(3) (A) The Superintendent shall compute an additional
26adjustment to the kindergarten and grades 1 to 3, inclusive, base
27grant as adjusted for inflation pursuant to paragraph (2) equal to
2811.23 percent. The additional grant shall be calculated by
29multiplying the kindergarten and grades 1 to 3, inclusive, base
30grant as adjusted by paragraph (2) by 11.23 percent.

31(B) Until paragraph (4) of subdivision (b) of Section 42238.03
32is effective, as a condition of the receipt of funds in this paragraph,
33a school district shall make progress toward maintaining an annual
34average class size of not more than 24 pupils for each classroom
35per school site in kindergarten and grades 1 to 3, inclusive, unless
36a collectively bargained alternative annual average class size for
37each classroom per school site in those grades is agreed to by the
38school district, pursuant to the following calculation:

39(i) Determine a school district’s annual average class size for
40each classroom per school site for kindergarten and grades 1 to 3,
P105  1inclusive, in the prior year. For the 2013-14 fiscal year, this amount
2shall be the annual average class size for each classroom per school
3site for kindergarten and grades 1 to 3, inclusive, in the 2012-13
4fiscal year.

5(ii) Determine a school district’s percentage of total need
6pursuant to paragraph (2) of subdivision (b) of Section 42238.03.

7(iii) Determine the percentage of the need calculated in clause
8(ii) that is met by funding provided to the school district pursuant
9to paragraph (3) of subdivision (b) of Section 42238.03.

10(iv) Determine the difference between the amount computed
11pursuant to clause (i) and an annual average class size of not more
12than 24 pupils for each classroom per school site.

13(v) Calculate a current year annual average class size adjustment
14for each classroom per school site for kindergarten and grades 1
15to 3, inclusive, equal to the adjustment calculated in clause (iv)
16multiplied by one minus the percentage determined pursuant to
17clause (iii).

18(C) School districts that have an annual average class size for
19each classroom per school site for kindergarten and grades 1 to 3,
20inclusive, of 24 pupils or less for each classroom per school site
21in the 2012-13 fiscal year, shall be exempt from the requirements
22of subparagraph (B) so long as the school district continues to
23maintain an annual average class size for each classroom per school
24site for kindergarten and grades 1 to 3, inclusive, of not more than
2524 pupils in each classroom, unless a collectively bargained
26alternative ratio is agreed to by the school district.

27(D) Upon full implementation of the local control funding
28formula, as a condition of the receipt of funds in this paragraph,
29all school districts shall maintain an annual average class size for
30each classroom per school site for kindergarten and grades 1 to 3,
31inclusive, of not more than 24 pupils for each classroom per school
32site in kindergarten and grades 1 to 3, inclusive, unless a
33collectively bargained alternative ratio is agreed to by the school
34district.

35(E) The annual average class size requirement for each
36classroom per school site for kindergarten and grades 1 to 3,
37inclusive, established pursuant to this paragraph shall not be subject
38to waiver by the state board pursuant to Section 33050 or by the
39Superintendent.

P106  1(4) The Superintendent shall compute an additional adjustment
2to the base grant for grades 9 to 12, inclusive, as adjusted for
3inflation pursuant to paragraph (2), equal to 2.8 percent. The
4additional grant shall be calculated by multiplying the base grant
5for grades 9 to 12, inclusive, as adjusted by paragraph (2), by 2.8
6percent.

7(e) The Superintendent shall compute a supplemental grant
8add-on equal to 35 percent of the base grants as specified in
9subparagraphs (A) to (D), inclusive, of paragraph (1) of subdivision
10(d), as adjusted by paragraph (2) of subdivision (d), for each school
11district or charter school percentage of unduplicated pupils. The
12supplemental grant shall be calculated by multiplying the base
13grants as specified in subparagraphs (A) to (D), inclusive, of
14paragraph (1), as adjusted by paragraph (2) of subdivision (d), by
1535 percent and by the percentage of unduplicated pupils in that
16school district or charter school.

17(f) The Superintendent shall compute a concentration grant
18add-on equal to 35 percent of the base grants as specified in
19subparagraphs (A) to (D), inclusive, of paragraph (1) of subdivision
20(d), as adjusted by paragraph (2) of subdivision (d), for each school
21district’s or charter school’s percentage of unduplicated pupils in
22excess of 50 percent of the school district’s or charter school’s
23total enrollment. The concentration grant shall be calculated by
24multiplying the base grant as specified in subparagraphs (A) to
25(D), inclusive, of paragraph (1) of subdivision (d), as adjusted by
26paragraph (2) of subdivision (d), by 35 percent and by the
27percentage of unduplicated pupils in excess of 50 percent of the
28total enrollment in that school district or charter school. For a
29charter school physically located in only one school district, the
30percentage of unduplicated pupils in excess of 50 percent used to
31calculate concentration grants shall not exceed the percentage of
32unduplicated pupils in excess of 50 percent of the school district
33in which the charter school is physically located. If the charter
34school is physically located in more than one school district, the
35charter school’s percentage of unduplicated pupils in excess of 50
36percent used to calculate concentration grants shall not exceed that
37of the school district with the highest percentage of unduplicated
38pupils in excess of 50 percent within the charter school’s physical
39location.

P107  1(g) The Superintendent shall compute an add-on to the total
2sum of a school district’s or charter school’s base, supplemental,
3and concentration grants equal to the amount of funding a school
4district or charter school received from funds allocated pursuant
5to the Targeted Instructional Improvement Block Grant program,
6as set forth in Article 6 (commencing with Section 41540) of
7Chapter 3.2, for the 2012-13 fiscal year, as that article read on
8January 1, 2013. A school district or charter school shall not receive
9a total funding amount from this add-on greater than the total
10amount of funding received by the school district or charter school
11from that program in the 2012-13 fiscal year.

12(h) The Superintendent shall compute an add-on to the total
13sum of a school district’s or charter school’s base, supplemental,
14and concentration grants equal to the amount of funding a school
15district or charter school received from funds allocated pursuant
16to the Home-to-School Transportation program, as set forth in
17former Article 2 (commencing with Section 39820) of Chapter 1
18of Part 23.5 and former Article 10 (commencing with Section
1941850) of Chapter 5, for the 2012-13 fiscal year. A school district
20or charter school shall not receive a total funding amount from
21this add-on greater than the total amount received by the school
22district or charter school for that program in the 2012-13 fiscal
23year.

24(i) The sum of the local control funding formula rates computed
25pursuant to subdivisions (c) to (f), inclusive, shall be multiplied
26by:

27(1) For school districts, the average daily attendance of the
28school district in the corresponding grade level ranges computed
29pursuant to Section 42238.05.

30(2) For charter schools, the total current year average daily
31attendance in the corresponding grade level ranges.

32(j) Notwithstanding any other law, the Superintendent shall
33adjust the sum of each school district’s or charter school’s amount
34determined in subdivisions (g) to (i), inclusive, pursuant to the
35calculation specified in Section 42238.03, less the sum of the
36following:

37(1) (A) For school districts, the property tax revenue received
38pursuant to Chapter 3.5 (commencing with Section 75) and Chapter
396 (commencing with Section 95) of Part 0.5 of Division 1 of the
40Revenue and Taxation Code.

P108  1(B) For charter schools, the in-lieu property tax amount provided
2to a charter school pursuant to Section 47635.

3(2) The amount, if any, received pursuant to Part 18.5
4(commencing with Section 38101) of Division 2 of the Revenue
5and Taxation Code.

6(3) The amount, if any, received pursuant to Chapter 3
7(commencing with Section 16140) of Part 1 of Division 4 of Title
82 of the Government Code.

9(4) Prior years’ taxes and taxes on the unsecured roll.

10(5) Fifty percent of the amount received pursuant to Section
1141603.

12(6) The amount, if any, received pursuant to the Community
13Redevelopment Law (Part 1 (commencing with Section 33000)
14of Division 24 of the Health and Safety Code), less any amount
15received pursuant to Section 33401 or 33676 of the Health and
16Safety Code that is used for land acquisition, facility construction,
17reconstruction, or remodeling, or deferred maintenance and that
18is not an amount received pursuant to Section 33492.15, or
19paragraph (4) of subdivision (a) of Section 33607.5, or Section
2033607.7 of the Health and Safety Code that is allocated exclusively
21for educational facilities.

22(7) The amount, if any, received pursuant to Sections 34183
23and 34188 of the Health and Safety Code.

24(8) (A) Revenue received pursuant to subparagraph (B) of
25paragraph (3) of subdivision (e) of Section 36 of Article XIII of
26the California Constitution.

27(B) Subparagraph (A) shall only offset entitlements provided
28for the purpose of paragraph (1) of subdivision (a) of Section
2942238.03 as continued in subsequent years by paragraph (3) of
30subdivision (a) of Section 42238.03.

31(k) A school district shall annually transfer to each of its charter
32schools funding in lieu of property taxes pursuant to Section 47635.

33(l) (1) The funds apportioned pursuant to this section and
34Section 42238.03, shall be available to a school district or charter
35school for any locally determined educational purpose.

36(2) School districts and charter schools that receive supplemental
37or concentration grants, or both, pursuant to this section shall use
38those funds for any locally determined educational purpose so long
39as it substantially benefits the unduplicated pupils that generated
P109  1those funds as provided for in a school district’s or charter school’s
2local control and accountability plan.

3(m) Nothing in this section shall be interpreted to authorize a
4school district that receives funding on behalf of a charter school
5pursuant to Section 47651 to redirect this funding for another
6purpose unless otherwise authorized in law or pursuant to an
7agreement between a charter school and its chartering authority.

8(n) Any calculations in law that are used for purposes of
9determining if a local educational agency is an excess tax school
10 entity or basic aid school district, including, but not limited to, this
11section and Sections 42238.03, 41544, 47660, 47632, 47663,
1248310, and 48359.5, and Section 95 of the Revenue and Taxation
13Code, shall be made exclusive of the revenue received pursuant
14to subparagraph (B) of paragraph (3) of subdivision (e) of Section
1536 of Article XIII of the California Constitution.

16(o) A school district that does not receive an apportionment of
17state funds pursuant to this section as implemented pursuant to
18Section 42238.03, excluding funds apportioned due to the
19requirements of subdivision (d) of Section 42238.03 shall be
20considered a “basic aid school district” or an “excess tax entity.”

21

SEC. 134.  

Section 42238.03 is added to the Education Code,
22to read:

23

42238.03.  

Commencing with the 2013-14 fiscal year and each
24fiscal year thereafter, the Superintendent shall allocate the
25appropriations in Section 14002 to each charter school and school
26district according to the following formula:

27(a) Calculate the prior year amount of funding for each school
28district and charter school, as follows:

29(1) For the 2013-14 fiscal year, the prior year funding level
30shall be the total of all of the following:

31(A) Entitlements for revenue limits in the 2012-13 fiscal year
32pursuant to Article 2 (commencing with Section 42238) and Article
332 (commencing with Section 47633) of Chapter 6 of Part 26.8 of
34Division 4, as those articles read on June 30, 2013.

35(B) Notwithstanding subparagraph (A), entitlements for revenue
36limits for fiscal years before June 30, 2013, shall be annually
37adjusted, as necessary, for average daily attendance and revenue
38offsets, as specified in paragraphs (1) to (7), inclusive, of
39subdivision (h) of Section 42238, as that section read on June 30,
402013, and the in-lieu property tax amount provided to a charter
P110  1school pursuant to Section 47635, as that section read on June 30,
22013.

3(2) (A) Entitlements from items contained in Section 2.00, as
4adjusted pursuant to Section 12.42, of the Budget Act of 2012 for
5Items 6110-104-0001, 6110-105-0001, 6110-108-0001,
66110-111-0001, 6110-119-0001, 6110-122-0001, 6110-124-0001,
76110-128-0001, 6110-137-0001, 6110-144-0001, 6110-156-0001,
86110-158-0001, 6110-166-0001, 6110-167-0001, 6110-181-0001,
96110-188-0001, 6110-189-0001, 6110-190-0001, 6110-193-0001,
106110-195-0001, 6110-198-0001, 6110-204-0001, 6110-208-0001,
116110-209-0001, 6110-211-0001, 6110-212-0001, 6110-227-0001,
126110-228-0001, 6110-232-0001, 6110-240-0001, 6110-242-0001,
136110-243-0001, 6110-244-0001, 6110-245-0001, 6110-246-0001,
146110-247-0001, 6110-248-0001, 6110-260-0001, 6110-265-0001,
156110-267-0001, 6110-268-0001, 6360-101-0001, and 2012-13
16fiscal year funding for the Class Size Reduction Program pursuant
17to Chapter 6.10 (commencing with Section 52120) of Part 28 of
18Division 4, as it read on January 1, 2013.

19(B) Entitlements pursuant to Section 47634.1, as that section
20read on January 1, 2013, shall be adjusted for growth in average
21daily attendance.

22(3) For the 2014-15 fiscal year and each fiscal year thereafter,
23the prior year amount shall be the amount each school district or
24charter school received in the prior year pursuant to this section.

25(b) Calculate an adjustment to the amount in subdivision (a) as
26follows:

27(1) Subtract the amount in subdivision (a) from the amount
28computed for each school district or charter school under the local
29control funding formula entitlements in subdivision (j) of Section
3042238.02. School districts and charter schools with a negative
31difference shall be deemed to have a zero difference.

32(2) Each school district’s and charter school’s total need as
33calculated pursuant to paragraph (1) shall be divided by the sum
34of all school districts’ and charter schools’ total need to determine
35the school district’s or charter school’s respective proportions of
36total need.

37(3) Each school district’s and charter school’s proportion of
38total need shall be multiplied by any available appropriations for
39this purpose, and added to the school district’s or charter school’s
40funding amounts as calculated pursuant to subdivision (a).

P111  1(4) If the total amount of funds available for allocation pursuant
2to this subdivision are sufficient to fully fund the amounts
3computed pursuant to paragraph (1), the local control funding
4formula grant computed pursuant to subdivision (c) of Section
542238.02 shall be adjusted such that any available appropriations
6for this purpose in that fiscal year are expended pursuant to the
7local control funding formula.

8(c) Upon a determination that a school district or charter school
9equals or exceeds the local control funding formula target
10computed pursuant to subdivision (j) of Section 42238.02, as
11determined by the calculation of a zero difference pursuant to
12paragraph (1) of subdivision (b) of this section, this section shall
13not apply and the school district or charter school shall receive an
14allocation equal to the amount calculated under Section 42238.02
15in that fiscal year and future fiscal years.

16(d) Notwithstanding subdivisions (b) and (c), commencing with
17the 2013-14 fiscal year, a school district or charter school shall
18receive state-aid funding pursuant to paragraph (3) of subdivision
19(b) of no less than the funding the school district or charter school
20received from programs in paragraphs (1) and (2) of subdivision
21(a).

22(e) (1) For purposes of this section, commencing with the
232013-14 fiscal year and until all school districts and charter schools
24equal or exceed their local control funding formula target computed
25pursuant to Section 42238.02 as determined by the calculation of
26a zero difference pursuant to paragraph (1) of subdivision (b), a
27 newly operational charter school shall be determined to have a
28prior year per average daily attendance funding amount equal to
29the lesser of:

30(A) The prior year funding amount per average daily attendance
31for the school district in which the charter school is physically
32located. The Superintendent shall calculate the per average daily
33attendance amount for this purpose by dividing the total local
34control funding formula entitlement received by that school district
35in the prior year by prior year average daily attendance of that
36school district. For purposes of this paragraph, a charter school
37that is physically located in more than one school district, shall
38use the calculated per average daily attendance local control
39funding entitlement of the school district with the highest prior
40year per average daily attendance funding amount.

P112  1(B) The charter school’s local control funding formula rate
2computed pursuant to subdivisions (c) to (i), inclusive, of Section
342238.02.

4(2) For charter schools funded pursuant to paragraph (1), the
5charter school shall be eligible to receive growth funding pursuant
6to subdivision (b) toward meeting the newly operational charter
7school’s local control funding formula target.

8(3) Upon a determination that all school districts or charter
9schools equal or exceed the local control funding formula target
10computed pursuant to Section 42238.02 as determined by the
11calculation of a zero difference pursuant to paragraph (1) of
12subdivision (b) for all school districts and charter schools, this
13subdivision shall not apply and the charter school shall receive an
14allocation equal to the amount calculated under Section 42238.02
15in that fiscal year and future fiscal years.

16

SEC. 135.  

Section 42238.04 is added to the Education Code,
17to read:

18

42238.04.  

Notwithstanding any other law, revenue limit funding
19for school districts and charter school block grant funding for
20charter schools for the 2012-13 fiscal year and prior fiscal years
21shall continue to be adjusted pursuant to Article 2 (commencing
22with Section 42238), and Article 2 (commencing with Section
2347633) of Chapter 6 of Part 26.8 of Division 4, as those articles
24read on June 30, 2013.

25

SEC. 136.  

Section 42238.05 is added to the Education Code,
26to read:

27

42238.05.  

(a) For purposes of Sections 42238.02 and 42238.03,
28the fiscal year average daily attendance shall be computed pursuant
29to paragraphs (1) or (2).

30(1) The second principal apportionment regular average daily
31attendance for either the current or prior fiscal year, whichever is
32greater. However, prior fiscal year average daily attendance shall
33be adjusted for any loss or gain of average daily attendance due
34to a reorganization or transfer of territory.

35(2) A school district that elects to receive funding pursuant to
36Article 4 (commencing with Section 42280) shall compute its units
37of average daily attendance for purposes of Section 42238.02 by
38subtracting the amount determined in subparagraph (B) from the
39amount determined in subparagraph (A).

P113  1(A) The units of average daily attendance computed pursuant
2to paragraph (1).

3(B) The units of average daily attendance resulting from pupils
4attending schools funded pursuant to Article 4 (commencing with
5Section 42280).

6(b) For purposes of this article, regular average daily attendance
7shall be the base grant average daily attendance.

8(c) For purposes of this section, the Superintendent shall
9distribute total ungraded enrollment and average daily attendance
10among kindergarten and each of grades 1 to 12, inclusive, in
11proportion to the amounts of graded enrollment and average daily
12attendance, respectively, in each of these grades.

13(d) For purposes of this section, the Superintendent shall
14distribute average daily attendance generated by the difference
15between prior year average daily attendance and current year
16average daily attendance, if positive, among kindergarten and each
17of grades 1 to 12, inclusive, in proportion to the amounts of graded
18average daily attendance, respectively, in each of these grades.

19(e) This section shall only apply to average daily attendance
20generated by school districts and shall not apply average daily
21attendance generated by charter schools.

22(f) A pupil shall not be counted more than once for purposes of
23calculating average daily attendance pursuant to this section.

24

SEC. 137.  

Section 42238.051 is added to the Education Code,
25to read:

26

42238.051.  

(a) For purposes of paragraph (1) of subdivision
27(a) of Section 42238.05, a sponsoring school district’s average
28daily attendance shall be computed as follows:

29(1) Compute the sponsoring school district’s regular average
30daily attendance in the current year, excluding the attendance of
31pupils in charter schools.

32(2) (A) Compute the regular average daily attendance used to
33calculate the second principal apportionment of the school district
34for the prior year, excluding the attendance of pupils in charter
35schools.

36(B) Compute the attendance of pupils who attended one or more
37noncharter schools of the school district between July 1, and the
38last day of the second period, inclusive, in the prior year, and who
39attended a charter school sponsored by the school district between
40July 1, and the last day of the second period, inclusive, in the
P114  1current year. For purposes of this subparagraph, a pupil enrolled
2in a grade at a charter school sponsored by the school district shall
3not be counted if the school district does not offer classes for pupils
4enrolled in that grade. The amount of the attendance counted for
5any pupil for the purpose of this subparagraph may not be greater
6than the attendance claimed for that pupil by the charter school in
7the current year.

8(C) Compute the attendance of pupils who attended a charter
9school sponsored by the school district in the prior year and who
10attended one or more noncharter schools of the school district in
11the current year. The amount of the attendance counted for any
12pupil for the purpose of this subparagraph may not be greater than
13the attendance claimed for that pupil by the school district in the
14current year.

15(D) From the amount determined pursuant to subparagraph (B),
16subtract the amount determined pursuant to subparagraph (C). If
17the result is less than zero, the amount shall be deemed to be zero.

18(E) The prior year average daily attendance determined pursuant
19to subparagraph (A) shall be reduced by the amount determined
20pursuant to subparagraph (D).

21(3) To the greater of the amounts computed pursuant to
22paragraphs (1) and (2), add the regular average daily attendance
23in the current year of all pupils attending charter schools sponsored
24by the school district that are not funded through the charter schools
25local control funding formula allocation pursuant to Section
2642238.02, as implemented by Section 42238.03.

27(b) For purposes of this section, a “sponsoring school district”
28shall mean a “sponsoring local educational agency,” as defined in
29Section 47632, as that section read on January 1, 2013.

30

SEC. 138.  

Section 42238.052 is added to the Education Code,
31to read:

32

42238.052.  

(a) Notwithstanding any other law, the prior year
33average daily attendance for a school district determined pursuant
34to subdivision (a) of Section 42238.051 shall be increased by the
35prior year second principal apportionment average daily attendance
36of a school district only for a school that meets the following
37description:

38(1) The school was a district noncharter school in any year
39before the prior year.

P115  1(2) The school was operated as a district-approved charter school
2in the prior year.

3(3) The school is again operated as a district noncharter school
4in the current year.

5(b) An adjustment to prior year average daily attendance
6pursuant to this section may not be made for the attendance of
7pupils who were not residents of the school district in the prior
8year.

9

SEC. 139.  

Section 42238.053 is added to the Education Code,
10to read:

11

42238.053.  

(a) The fiscal year average daily attendance
12computed under Section 42238.05 shall be increased, for each
13school district that operates a school that meets the eligibility
14requirements set forth in subdivision (b), by the number of days
15of attendance of pupils enrolled in eligible schools in the school
16district who are currently migratory children, as defined by Section
1754441, and who are residing in state-operated migrant housing
18projects between the second principal apportionment and the end
19of the regular school year, divided by the number of days school
20was actually taught in the regular day schools of the district,
21excluding Saturdays and Sundays.

22(b) For a school district to be eligible for purposes of this
23section, the following conditions shall apply:

24(1) One or more state-operated migrant housing projects are
25located within the attendance area of the school.

26(2) The maximum number of pupils enrolled in the school in
27the relevant fiscal year who are currently migratory children, as
28calculated under subdivision (a), constitutes not less than one-third
29of the total pupil enrollment of the school.

30(c) The Superintendent shall establish rules and regulations for
31the implementation of this section.

32

SEC. 140.  

Section 42238.1 of the Education Code is repealed.

33

SEC. 141.  

Section 42238.2 of the Education Code is repealed.

34

SEC. 142.  

Section 42238.3 of the Education Code is repealed.

35

SEC. 143.  

Section 42238.4 of the Education Code is repealed.

36

SEC. 144.  

Section 42238.41 of the Education Code is repealed.

37

SEC. 145.  

Section 42238.42 of the Education Code is repealed.

38

SEC. 146.  

Section 42238.43 of the Education Code is repealed.

39

SEC. 147.  

Section 42238.44 of the Education Code is repealed.

P116  1

SEC. 148.  

Section 42238.445 of the Education Code is
2repealed.

3

SEC. 149.  

Section 42238.45 of the Education Code is repealed.

4

SEC. 150.  

Section 42238.46 of the Education Code is repealed.

5

SEC. 151.  

Section 42238.48 of the Education Code is repealed.

6

SEC. 152.  

Section 42238.485 of the Education Code is
7repealed.

8

SEC. 153.  

Section 42238.49 of the Education Code is repealed.

9

SEC. 154.  

Section 42238.5 of the Education Code is repealed.

10

SEC. 155.  

Section 42238.51 of the Education Code is repealed.

11

SEC. 156.  

Section 42238.52 of the Education Code is repealed.

12

SEC. 157.  

Section 42238.53 of the Education Code is repealed.

13

SEC. 158.  

Section 42238.6 of the Education Code is repealed.

14

SEC. 159.  

Section 42238.7 of the Education Code is repealed.

15

SEC. 160.  

Section 42238.75 of the Education Code is repealed.

16

SEC. 161.  

Section 42238.8 of the Education Code is repealed.

17

SEC. 162.  

Section 42238.9 of the Education Code is repealed.

18

SEC. 163.  

Section 42238.95 of the Education Code is repealed.

19

SEC. 164.  

Section 42238.11 of the Education Code is repealed.

20

SEC. 165.  

Section 42238.12 of the Education Code is repealed.

21

SEC. 166.  

Section 42238.13 of the Education Code is repealed.

22

SEC. 167.  

Section 42238.14 of the Education Code is repealed.

23

SEC. 168.  

Section 42238.145 of the Education Code is
24repealed.

25

SEC. 169.  

Section 42238.146 of the Education Code is
26repealed.

27

SEC. 170.  

Section 42238.15 of the Education Code is amended
28to read:

29

42238.15.  

(a) Notwithstanding any other law, and in lieu of
30any inflation or cost-of-living adjustment otherwise authorized for
31any of the programs enumerated in subdivision (b), state funding
32for the programs enumerated in subdivision (b) shall be increased
33annually by the product of the following:

34(1) The sum of 1.0 plus the percentage change determined under
35paragraph (2) of subdivision (d) of Section 42238.02.

36(2) The sum of 1.0 plus the percentage of increase, from the
37prior fiscal year to the current fiscal year, in each of the workload
38factors described in subdivision (b).

P117  1(b) The programs for which annual state funding increases are
2 determined under this section, and the factors used to measure
3workload for each of those programs, are as follows:

4(1) Special education programs and services, as measured by
5the regular second principal apportionment average daily
6attendance for kindergarten and grades 1 to 12, inclusive.

7(2) Child care and development programs, and preschool
8programs, as measured by the state population of children up to
9and including four years of age.

10(c) Notwithstanding any other law, child care and development
11programs shall not receive a cost-of-living adjustment in the
122012-13, 2013-14, and 2014-15 fiscal years.

13

SEC. 171.  

Section 42238.17 of the Education Code is repealed.

14

SEC. 172.  

Section 42238.18 of the Education Code is repealed.

15

SEC. 173.  

Section 42238.20 of the Education Code is amended
16to read:

17

42238.20.  

(a) Notwithstanding any other law, commencing in
18the 2013-14 fiscal year, the minimum schoolday for a pupil
19concurrently enrolled in regular secondary school classes and
20classes operating pursuant to a joint powers agreement that became
21effective before January 1, 2008, is 180 minutes. These regular
22secondary school classes constitute regular school classes for the
23purposes of Section 46010.3.

24(b) Notwithstanding any other law, for purposes of computing
25the average daily attendance of a pupil described in subdivision
26(a), the 180-minute minimum schoolday permitted by this section
27shall be computed and reported as attendance for three-quarters
28of the full 240-minute minimum schoolday prescribed by Section
2946141.

30(c) For a pupil described in subdivision (a), the average daily
31attendance shall be included as school district average daily
32attendance computed pursuant to Section 42238.05.

33(d) (1) Commencing with the 2013-14 fiscal year, the
34Superintendent shall compute funding for each pupil enrolled in
35classes as described in subdivision (a), for the period of time each
36day during which the pupil attends classes pursuant to a joint
37powers agreement, by multiplying the annual clock hours of
38attendance, up to a maximum of three clock hours per schoolday,
39by the rate described in subdivision (e), as applicable.

P118  1(2) The Superintendent shall add the amount computed pursuant
2to paragraph (1) to the local control funding formula calculated
3pursuant to Section 42238.02, as implemented by Section 42238.03,
4for the school district of attendance of the pupil.

5(3) A pupil shall not generate apportionment credit pursuant to
6this subdivision for more than 540 hours in any school year.

7(e) The hourly rate for the 2012-13 fiscal year shall be
8determined as follows:

9(1) Subtract 73.3 percent of the school district local control
10funding formula allocation funding per unit of average daily
11attendance computed pursuant to Section 42238.02, as implemented
12by Section 42238.03, for the 2013-14 fiscal year for the school
13districts that entered into the joint powers agreement from the
14statewide average local control funding formula allocation pursuant
15to Section 42238.02, as implemented by Section 42238.03, funding
16per unit of average daily attendance.

17(2) Divide the amount computed in paragraph (1) by 540.

18(f) For purposes of computing attendance pursuant to Section
1946300 or any other law, immediate supervision and control of
20pupils while attending classes pursuant to a joint powers agreement
21described in subdivision (a) is deemed satisfied regardless of the
22school district employing the certificated employee providing the
23supervision and control, provided the school district is a party to
24the joint powers agreement.

25(g) The auditor who conducts the annual audit pursuant to
26Section 41020 shall verify compliance with this section by each
27school district that is a party to the joint powers agreement as
28described in subdivision (a). An instance of noncompliance shall
29be reported as an audit exception. If the noncompliance is a
30condition of eligibility for the receipt of funds, the audit report
31shall include a statement of the number of units of average daily
32attendance or hours, if any, that were inappropriately reported for
33apportionment.

34(h) Notwithstanding any other law, the number of hours of
35instruction at regional occupational centers or programs that are
36claimed for funding pursuant to subdivision (d) shall be used, in
37addition to the hourly rate determined pursuant to subdivision (e)
38or (f), whichever subdivision is applicable, in the computation of
39the average daily attendance of the regional occupational center
40or program.

P119  1

SEC. 174.  

Section 42238.23 of the Education Code is repealed.

2

SEC. 175.  

Section 42238.24 of the Education Code is repealed.

3

SEC. 176.  

Section 42239 of the Education Code is repealed.

4

SEC. 177.  

Section 42240 of the Education Code is repealed.

5

SEC. 178.  

Section 42240.1 of the Education Code is repealed.

6

SEC. 179.  

Section 42241.3 of the Education Code is repealed.

7

SEC. 180.  

Section 42241.7 of the Education Code is repealed.

8

SEC. 181.  

Section 42242 of the Education Code is repealed.

9

SEC. 182.  

Section 42243.7 of the Education Code is repealed.

10

SEC. 183.  

Section 42244 of the Education Code is repealed.

11

SEC. 184.  

Section 42245 of the Education Code is repealed.

12

SEC. 185.  

Section 42251 of the Education Code is repealed.

13

SEC. 186.  

Article 3 (commencing with Section 42260) of
14Chapter 7 of Part 24 of Division 3 of Title 2 of the Education Code
15 is repealed.

16

SEC. 187.  

Section 42280 of the Education Code is amended
17to read:

18

42280.  

(a) For each school district that meets, in the current
19or prior fiscal year, the conditions specified in Section 42281,
2042282, or 42284 the Superintendent shall compute, for each
21qualifying school in the school district, an amount pursuant to this
22article.

23(b) For each school district that is a countywide unified school
24district that had fewer than 2,501 units of average daily attendance
25in the 1990-91 fiscal year, the Superintendent shall compute an
26amount pursuant to this article for those schools that meet the
27conditions specified in Sections 42283 and 42285 in the current
28or prior fiscal year. This subdivision is only applicable to those
29schools funded pursuant to this article in the 1990-91 fiscal year
30and, in subsequent years, if the school district has no more than
313,000 units of average daily attendance.

32

SEC. 188.  

Section 42281 of the Education Code is amended
33to read:

34

42281.  

Except as specified in paragraph (4), for each
35elementary school district that maintains only one school with a
36second principal apportionment average daily attendance of less
37than 101, the Superintendent shall make one of the following
38computations, whichever provides the lesser amount:

39(a) For each small school that has an average daily attendance
40during the fiscal year of less than 24, exclusive of pupils attending
P120  1the 7th and 8th grades of a junior high school, and for which school
2at least one teacher was hired full time, the Superintendent shall
3compute for the school district fifty-two thousand nine hundred
4twenty-five dollars ($52,925).

5(b) For each small school that has an average daily attendance
6during the fiscal year of 25 or more and less than 48, exclusive of
7pupils attending the 7th and 8th grades of a junior high school,
8and for which school at least two teachers were hired full time for
9more than one-half of the days schools were maintained, the
10Superintendent shall compute for the school district one hundred
11five thousand eight hundred fifty dollars ($105,850).

12(c) For each small school that has an average daily attendance
13during the fiscal year of 49 or more but less than 72, exclusive of
14pupils attending the 7th and 8th grades of a junior high school,
15and for which school three teachers were hired full time for more
16than one-half of the days schools were maintained, the
17Superintendent shall compute for the school district one hundred
18fifty-eight thousand seven hundred seventy-five dollars ($158,775).

19(d) For each small school that has an average daily attendance
20during the fiscal year of 73 or more and less than 96, exclusive of
21pupils attending the 7th and 8th grades of a junior high school,
22and for which school four teachers were hired full time for more
23than one-half of the days schools were maintained, the
24Superintendent shall compute for the school district two hundred
25eleven thousand seven hundred dollars ($211,700). A school district
26that qualifies under this subdivision may use this funding
27calculation until the local control funding formula allocation
28pursuant to Section 42238.02, as implemented by Section 42238.03,
29per unit of average daily attendance multiplied by the average daily
30attendance produces state aid equal to the small school funding
31formula.

32

SEC. 189.  

Section 42282 of the Education Code is amended
33to read:

34

42282.  

For each district with fewer than 2,501 units of second
35principal apportionment average daily attendance, on account of
36each necessary small school, the Superintendent shall make the
37following computations:

38(a) For each necessary small school which has an average daily
39attendance during the fiscal year of less than 24, exclusive of pupils
40attending the 7th and 8th grades of a junior high school, and for
P121  1which school at least one teacher was hired full time, the
2Superintendent shall compute for the school district fifty-two
3thousand nine hundred twenty-five dollars ($52,925).

4(b) For each necessary small school which has an average daily
5attendance during the fiscal year of 25 or more and less than 48,
6exclusive of pupils attending the 7th and 8th grades of a junior
7high school, and for which school at least two teachers were hired
8full time for more than one-half of the days schools were
9maintained, the Superintendent shall compute for the school district
10one hundred five thousand eight hundred fifty dollars ($105,850).

11(c) For each necessary small school which has an average daily
12attendance during the fiscal year of 49 or more, but less than 72,
13exclusive of pupils attending the 7th and 8th grades of a junior
14high school, and for which school three teachers were hired full
15time for more than one-half of the days schools were maintained,
16the Superintendent shall compute for the school district one
17hundred fifty-eight thousand seven hundred seventy-five dollars
18($158,775).

19(d) For each necessary small school which has an average daily
20attendance during the fiscal year of 73 or more and less than 96,
21exclusive of pupils attending the 7th and 8th grades of a junior
22high school, and for which school four teachers were hired full
23time for more than one-half of the days schools were maintained,
24the Superintendent shall compute for the school district two
25hundred eleven thousand seven hundred dollars ($211,700).

26(e) A school district that qualifies under this section may use
27this funding calculation until the local control funding formula
28allocation pursuant to Section 42238.02, as implemented by Section
2942238.03, per unit of average daily attendance multiplied by the
30average daily attendance produces state aid equal to the small
31school funding formula.

32

SEC. 190.  

Section 42282.1 of the Education Code is repealed.

33

SEC. 191.  

Section 42283 of the Education Code is amended
34to read:

35

42283.  

(a) For purposes of Sections 42281 and 42282, a
36“necessary small school” is an elementary school with an average
37daily attendance of less than 101, exclusive of pupils attending the
387th and 8th grades of a junior high school, maintained by a school
39district to which school any of the following conditions apply:

P122  1(1) If as many as five pupils residing in the school district and
2attending kindergarten and grades 1 to 8, inclusive, exclusive of
3pupils attending the 7th and 8th grades of a junior high school in
4the elementary school with an average daily attendance of less
5than 101 would be required to travel more than 10 miles one way
6 from a point on a well-traveled road nearest their home to the
7nearest other public elementary school.

8(2) If as many as 15 pupils residing in the school district and
9attending kindergarten and grades 1 to 8, inclusive, exclusive of
10pupils attending the 7th and 8th grades of a junior high school in
11the elementary school with an average daily attendance of less
12than 101 would be required to travel more than five miles one way
13from a point on a well-traveled road nearest their home to the
14nearest other public elementary school.

15(3) If topographical or other conditions exist in a school district
16which would impose unusual hardships if the number of miles
17specified in paragraph (1) or (2) were required to be traveled, or
18if during the fiscal year the roads which would be traveled have
19been impassable for more than an average of two weeks per year
20for the preceding five years, the governing board of the school
21district may, on or before April 1, request the Superintendent, in
22 writing, for an exemption from these requirements or for a
23reduction in the miles required. The request shall be accompanied
24by a statement of the conditions upon which the request is based,
25giving the information in a form required by the Superintendent.
26The Superintendent shall cause an investigation to be made, and
27shall either grant the request to the extent he or she deems
28necessary, or deny the request.

29(b) For purposes of this section, “other public elementary
30school” is a public school, including a charter school, that serves
31kindergarten or any of grades 1 to 8, inclusive, exclusive of grades
327 and 8 of a junior high school.

33

SEC. 192.  

Section 42283.1 of the Education Code is repealed.

34

SEC. 193.  

Section 42283.2 of the Education Code is repealed.

35

SEC. 194.  

Section 42284 of the Education Code is amended
36to read:

37

42284.  

(a) For each district with fewer than 2,501 units of
38average daily attendance, on account of each necessary small high
39school, the Superintendent shall make one of the following
40computations selected with regard only to the number of
P123  1certificated employees employed or average daily attendance,
2whichever provides the lesser amount:


3

 


Average daily
attendance

Minimum number
of certificated
employees

Amount to be
computed

   

1-19   

less than 3

$42,980

per teacher

1-19   

 3

191,340

20-38   

 4

234,320

39-57   

 5

277,300

58-71   

 6

320,280

72-86   

 7

363,260

87-100   

 8

406,240

101-114   

 9

449,220

115-129   

10

492,200

130-143   

11

535,180

144-171   

12

578,160

172-210   

13

621,140

211-248   

14

664,120

249-286   

15

707,100

P123 23

 

24(b) For purposes of this section, a “certificated employee” means
25an equivalent full-time position of an individual holding a
26credential authorizing service and providing service in grades 9
27to 12, inclusive, in any secondary school. Any fraction of an
28equivalent full-time position remaining after all equivalent full-time
29positions for certificated employees within the district have been
30calculated shall be deemed to be a full-time position.

31(c) A school district that qualifies under this section may use
32the funding calculation as provided in this section until the local
33control funding formula allocation pursuant to Section 42238.02,
34as implemented by Section 42238.03, per unit of average daily
35attendance multiplied by the average daily attendance produces
36state aid equal to the funding provided under this section.

37

SEC. 195.  

Section 42285 of the Education Code is amended
38to read:

P124  1

42285.  

(a) For purposes of Section 42284, a necessary small
2high school is a high school with an average daily attendance of
3less than 301 that comes within any of the following conditions:

4(1) The projection of its future enrollment on the basis of the
5enrollment of the elementary schools in the district shows that
6within eight years the enrollment in high school in grades 9 to 12,
7inclusive, will exceed 300 pupils.

8(2) Any one of the following combinations of distance and units
9of average daily attendance applies:

10(A) The high school had an average daily attendance of less
11than 100 in grades 9 to 12, inclusive, during the preceding fiscal
12year and is more than 15 miles by well-traveled road from the
13nearest other public high school and either 90 percent of the pupils
14would be required to travel 20 miles or 25 percent of the pupils
15would be required to travel 30 miles one way from a point on a
16well-traveled road nearest their homes to the nearest other public
17high school.

18(B) The high school had an average daily attendance of 100 or
19more and less than 150 in grades 9 to 12, inclusive, during the
20preceding fiscal year and is more than 10 miles by well-traveled
21road from the nearest other public high school and either 90 percent
22of the pupils would be required to travel 18 miles or 25 percent of
23the pupils would be required to travel 25 miles one way from a
24point on a well-traveled road nearest their homes to the nearest
25other public high school.

26(C) The high school had an average daily attendance of 150 or
27more and less than 200 in grades 9 to 12, inclusive, during the
28preceding fiscal year and is more than 712 miles by well-traveled
29road from the nearest other public high school and either 90 percent
30of the pupils would be required to travel 15 miles or 25 percent of
31the pupils would be required to travel 20 miles one way from a
32point on a well-traveled road nearest their homes to the nearest
33other public high school.

34(D) The high school had an average daily attendance of 200 or
35more and less than 301 in grades 9 to 12, inclusive, during the
36preceding fiscal year and is more than five miles by well-traveled
37road from the nearest other public high school and either 90 percent
38of the pupils would be required to travel 10 miles or 25 percent of
39the pupils would be required to travel 15 miles to the nearest other
40 public high school.

P125  1(3) Topographical or other conditions exist in the school district
2which would impose unusual hardships on the pupils if the number
3of miles specified above were required to be traveled. In these
4cases, the Superintendent may, when requested, and after
5investigation, grant exceptions from the distance requirements.

6(4) The Superintendent has approved the recommendation of a
7county committee on school district organization designating one
8of two or more schools as necessary isolated schools in a situation
9where the schools are operated by two or more school districts and
10the average daily attendance of each of the schools is less than 301
11in grades 9 to 12, inclusive.

12(b) For purposes of Section 42284, a necessary small high school
13also includes a high school maintained by a school district for the
14 exclusive purpose of educating juvenile hall pupils or pupils with
15exceptional needs.

16(c) For purposes of Section 42284, a necessary small high school
17does not include a continuation school.

18(d) For purposes of this section, “other public high school” is
19a public school, including a charter school, that serves any of
20grades 9 to 12, inclusive, or grades 7 and 8 in a junior high school.

21

SEC. 196.  

Section 42285.1 of the Education Code is repealed.

22

SEC. 197.  

Section 42285.4 of the Education Code is repealed.

23

SEC. 198.  

Section 42285.5 of the Education Code is amended
24to read:

25

42285.5.  

(a) For purposes of subdivision (a) of Section 42284
26and Section 42285, a school district may include average daily
27attendance in grades 7 and 8 and the instructors of grade 7 and 8
28pupils in the calculation of average daily attendance and number
29of certificated employees employed.

30(b) Notwithstanding Sections 42284 and 42285, for purposes
31of this section, with respect to a school district eligible to utilize
32subdivision (a), any references to grades 9 to 12, inclusive, in
33Sections 42284 and 42285 shall be deemed instead to be references
34to grades 7 to 12, inclusive.

35

SEC. 199.  

Section 42286 of the Education Code is amended
36to read:

37

42286.  

(a) Except as required under subdivision (b), if a high
38school is determined to be a necessary small high school under
39Section 42285, that status shall not be changed except as a review
40of the determinative factors made every two years following the
P126  1date of the determination indicates that the determination should
2be changed.

3(b) If a high school is determined to be a necessary small high
4school under paragraph (3) of subdivision (b) of Section 42285,
5that status shall not be changed except as a review of the
6determinative factors made every two years following the date of
7the determination indicates that the determination should be
8changed.

9(c) A high school that has not been determined to be a necessary
10small high school under Section 42285, may be determined to be
11a necessary small high school at the beginning of a fiscal year if
12it meets the criteria specified in Section 42285.

13

SEC. 200.  

Section 42287 of the Education Code is amended
14to read:

15

42287.  

Commencing with the 2013-14 fiscal year, the
16Superintendent shall increase the funding amounts specified in
17Sections 42281, 42282, and 42284 by an amount proportionate to
18the increase in the statewide average local control funding formula
19allocations pursuant to Section 42238.02, as implemented by
20Section 42238.03, for the then current fiscal year. For the 1984-85
21fiscal year to the 2012-13 fiscal year, inclusive, the Superintendent
22shall increase the funding amounts specified in Sections 42281,
2342282, and 42284 by an amount proportionate to the increase
24applied to the statewide average revenue limit for unified school
25districts for the then current fiscal year.

26

SEC. 201.  

Section 42289 of the Education Code is repealed.

27

SEC. 202.  

Section 42289.1 of the Education Code is repealed.

28

SEC. 203.  

Section 42289.2 of the Education Code is repealed.

29

SEC. 204.  

Section 42289.3 of the Education Code is repealed.

30

SEC. 205.  

Section 42289.4 of the Education Code is repealed.

31

SEC. 206.  

Section 42289.5 of the Education Code is repealed.

32

SEC. 207.  

Section 42289.6 of the Education Code is repealed.

33

SEC. 208.  

Article 4.5 (commencing with Section 42290) of
34Chapter 7 of Part 24 of Division 3 of Title 2 of the Education Code
35 is repealed.

36

SEC. 209.  

Article 4.7 (commencing with Section 42300) of
37Chapter 7 of Part 24 of Division 3 of Title 2 of the Education Code
38 is repealed.

39

SEC. 210.  

Section 42401 of the Education Code is amended
40to read:

P127  1

42401.  

(a) Revenues from any transactions and use tax
2imposed pursuant to Chapter 3.5 (commencing with Section
37288.1) of Part 1.7 of Division 2 of the Revenue and Taxation
4Code shall not be considered “allocated local proceeds of taxes”
5pursuant to Section 41202 of the Education Code or paragraph (2)
6of subdivision (b) of Section 8 of Article XVI of the California
7Constitution.

8(b) Revenues derived from any transactions and use tax imposed
9pursuant to Chapter 3.5 (commencing with Section 7288.1) of Part
101.7 of Division 2 of the Revenue and Taxation Code shall
11supplement, and shall not be offset against, the allocations made
12pursuant to Section 2575 or 42238.02, as implemented pursuant
13to Section 42238.03, of the Education Code.

14

SEC. 211.  

Section 42604 of the Education Code is repealed.

15

SEC. 212.  

Section 42605 of the Education Code is repealed.

16

SEC. 213.  

Section 42606 of the Education Code is repealed.

17

SEC. 214.  

Section 42800 of the Education Code is amended
18to read:

19

42800.  

(a) The governing board of a school district may, with
20the consent of the county superintendent of schools, establish a
21revolving cash fund for the use of the chief accounting officer of
22the school district, by adopting a resolution setting forth the
23necessity for the revolving cash fund, the officer for whom and
24the purposes for which the revolving cash fund shall be available,
25and the amount of the fund. The purposes for which the revolving
26cash fund shall be available shall include the purposes specified
27in Section 45167. Three certified copies of the resolution shall be
28transmitted to the county superintendent of schools. If he approves
29the establishment of the fund, the county superintendent shall
30endorse his consent on the resolution and return one copy to the
31governing body of the school district, and transmit one copy to the
32county auditor.

33(b) The maximum amount allowed for revolving cash funds
34established pursuant to subdivision (a) shall be the lesser of:

35(1) Two percent of the district’s estimated expenditures for the
36current fiscal year, or

37(2) A dollar amount limit of seventy-five thousand dollars
38($75,000) for any elementary school or high school district and
39one hundred fifty thousand dollars ($150,000) for any unified
40school district for fiscal year 1990-91. The dollar amount limit
P128  1for each school district shall thereafter be increased annually by
2the percentage increase in the school district’s local control funding
3formula allocation established pursuant to Section 42238.02, as
4implemented pursuant to Section 42238.03.

5

SEC. 215.  

Chapter 11.3 (commencing with Section 42920) of
6Part 24 of Division 3 of Title 2 of the Education Code is repealed.

7

SEC. 216.  

Chapter 11.5 (commencing with Section 42950) of
8Part 24 of Division 3 of Title 2 of the Education Code is repealed.

9

SEC. 217.  

Chapter 12 (commencing with Section 43001.5) of
10Part 24 of Division 3 of Title 2 of the Education Code is repealed.

11

SEC. 218.  

Section 44279.2 of the Education Code is amended
12to read:

13

44279.2.  

(a) The Superintendent and the commission shall
14jointly administer the California Beginning Teacher Support and
15Assessment System pursuant to this chapter. In administering this
16section, the Superintendent and the commission shall provide or
17contract for the provision of all of the following:

18(1) Establishing requirements for reviewing and approving
19teacher induction programs.

20(2) Developing and administering a system for ensuring teacher
21induction program quality and effectiveness. For purposes of this
22section, “program effectiveness” means producing excellent
23program outcomes in relation to the purposes defined in subdivision
24(b) of Section 44279.1. For purposes of this section, “program
25quality” means excellence with respect to program factors,
26including, but not limited to, all of the following:

27(A) Program goals.

28(B) Design resources.

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

30(D) School context and working conditions.

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

32(3) Developing purposes and functions for reviewing and
33approving supplemental grants and standards for program clusters
34and program consultants, as defined pursuant to Section 44279.7.

35(4) Improving and refining the formative assessment system.

36(5) Improving and refining professional development materials
37and strategies for all personnel involved in implementing induction
38programs.

39(6) Conducting and tracking research related to beginning
40teacher induction.

P129  1(7) Periodically evaluating the validity of the California
2Standards for the Teaching Profession adopted by the commission
3and the Standards of Quality and Effectiveness for Beginning
4Teacher Support and Assessment Program adopted by the
5commission and making changes to those documents, as necessary.

6(b) As part of the California Beginning Teacher Support and
7Assessment System, the commission and the Superintendent shall
8establish requirements for local teacher induction programs.

9(c) A school district or consortium of school districts may
10establish a local teacher induction program pursuant to this section
11that shall, at a minimum, meet all of the following requirements:

12(1) Develop, implement, and evaluate teacher induction
13programs that meet the Quality and Effectiveness for Beginning
14Teacher Induction Program Standards adopted by the commission.

15(2) Support beginning teachers in meeting the competencies
16described in the California Standards for the Teaching Profession
17adopted by the commission.

18(3) Meet criteria for the cost-effective delivery of program
19services.

20

SEC. 219.  

Section 44279.25 of the Education Code is amended
21to read:

22

44279.25.  

(a) In consultation with the Superintendent, the
23commission shall revise the formative assessment system for
24beginning teachers, as necessary to ensure that related tasks and
25activities are aligned to the revised standards adopted pursuant to
26subdivision (c).

27(b) The Superintendent and the commission shall identify
28effective practices and techniques and provide for the dissemination
29of these to local induction program providers.

30(c) Immediately following the adoption by the commission of
31revised standards the commission shall review induction programs
32to determine whether local teacher induction programs are meeting
33standards of quality and effectiveness and to assure greater program
34quality and consistency. The commission shall schedule regular
35reviews following the initial review of programs pursuant to this
36subdivision.

37(d) The Superintendent and the commission shall ensure that
38teacher credential candidates are notified of the opportunity to
39choose an early completion option pursuant to Section 44468.

P130  1

SEC. 220.  

Section 44279.7 of the Education Code is amended
2to read:

3

44279.7.  

(a) The Superintendent and the commission shall
4designate each school district and consortium of school districts
5participating in the Beginning Teacher Support and Assessment
6System established pursuant to Section 44279.2 as belonging to a
7cluster according to the criteria established pursuant to this
8subdivision. For purposes of this section “cluster” means a cluster
9of school districts or consortium of school districts established
10pursuant this section. The Superintendent and the commission
11shall establish criteria for the formation of school districts or
12consortiums of school district teacher induction program clusters
13based upon, but not necessarily be limited to, all of the following:

14(1) Geographic proximity.

15(2) Program size.

16(3) The number of beginning teachers served.

17(4) The similarity of teacher characteristics and pupil populations
18in each school district.

19(b) School districts and consortiums of school districts may
20identify a teacher induction program consultant to assist the school
21district or consortiums of school districts forming a cluster. The
22Superintendent and the commission shall identify the purpose and
23functions of each consultant. Those purposes and functions shall
24include, but not necessarily be limited to, all the following:

25(1) Assisting in designing, implementing, refining, and
26evaluating their teacher induction programs.

27(2) Assisting in building the capacity to provide professional
28development for all personnel involved in the implementation of
29teacher induction programs, including, but not limited to, beginning
30teachers, support providers, and administrators.

31(3) Disseminating information on teacher induction programs
32to all interested participants within the cluster and collaborating
33with other consultants statewide and with state administrative
34agency staff to ensure ongoing program improvement.

35

SEC. 221.  

Section 44320 of the Education Code is amended
36to read:

37

44320.  

(a) Professional preparation, including student teaching,
38shall be made available in the upper division course offerings at
39all California public institutions of higher learning, except the
40California Maritime Academy and the Hastings College of the
P131  1Law. No more than nine semester units, or the equivalent, of
2professional education courses may be designated as prerequisites
3for purposes of admission to student teaching, except that, to satisfy
4the English language requirement as set forth in paragraph (3) of
5subdivision (b) of Section 44259, candidates may be required to
6take 12 semester units, or the equivalent, as professional education
7prerequisites to student teaching.

8(b) The commission shall encourage postsecondary institutions
9that offer programs of professional preparation to collaborate with
10school districts, county offices of education, and professional
11organizations in the design and delivery of local programs to
12function as part of the California beginning teacher support and
13assessment program pursuant to Section 44279.2. If local
14educational agencies and institutions of higher education
15voluntarily agree to implement the program, the following
16provisions shall apply to each collaborative effort:

17(1) Postsecondary institutions and local education agencies shall
18coordinate and articulate the program of professional preparation
19and the beginning teacher support and assessment program, so the
20two programs provide continuity in the preparation, support, and
21assessment of beginning teachers.

22(2) At the discretion of a postsecondary institution that
23participates in a collaborative effort, the program of professional
24preparation may be submitted to the commission for approval as
25a program of preparation, support, and assessment that is at least
26two years long.

27(3) In each program of preparation, support, and assessment,
28the postsecondary institution shall make it possible for each
29candidate to complete all requirements for a valid teaching
30credential in the equivalent of one year of full-time study.

31(4) A postsecondary institution that participates in a
32collaborative effort may, at its discretion, determine that successful
33completion of the support and assessment components of an
34articulated program of professional preparation, support, and
35assessment fulfills some or all of the requirements of subdivision
36(c) of Section 44259, and may accordingly recommend applicants
37for the professional teaching credential. The standards and criteria
38for making these determinations and recommendations shall be
39included in the institution’s proposal for a program.

P132  1(5) A local educational agency that collaborates, at its own
2discretion, with a postsecondary education institution in the design
3and delivery of an articulated program of professional preparation,
4support, and assessment that meets the standards and criteria
5pursuant to subdivision (c) of Section 44279.2, may contract with
6the postsecondary institution to pay the institution’s costs of
7designing and delivering the support and assessment components
8of the program.

9(c) Local educational agencies that are approved by the
10commission to provide programs of personalized preparation to
11candidates for designated subjects teaching credentials are
12encouraged to participate in the design and delivery of local
13programs under the California beginning teacher support and
14assessment program pursuant to Article 4.5 (commencing with
15Section 44279.2), in a manner consistent with subdivision (b).

16(d) Before admission to either student teaching under any
17professional preparation program approved by the commission,
18or participation in a field experience program as described in
19Section 44324, a candidate for a credential shall obtain a certificate
20of clearance from the commission which shall be issued when the
21commission has verified the candidate’s personal identification
22and health status. The fee for the certificate of clearance shall not
23exceed one-half of the regular fee for a credential and shall be
24deducted from the fee for the initial credential applied for by the
25certificate holder.

26

SEC. 222.  

Section 44328 of the Education Code is amended
27to read:

28

44328.  

(a) Unless the commission determines that substantial
29evidence exists that a person is unqualified to teach, upon the
30completion of successful service as a district intern pursuant to
31subdivision (b) of Section 44325, and upon the recommendation
32of the school district governing board, the commission shall award
33preliminary credentials to district interns in the same manner as
34applicants recommended for credentials by institutions that operate
35approved programs of professional preparation.

36(b) Notwithstanding paragraphs (1) and (2) of subdivision (a)
37of Section 44225, paragraphs (3), (4), (5), and (6) of subdivision
38(b) of Section 44259, paragraphs (1), (2), (3), and (4) of subdivision
39(c) of Section 44259, and Sections 44261, 44265, and 44335, upon
40recommendation by the governing board, district interns shall be
P133  1issued preliminary credentials, upon the completion of successful
2service as a teacher pursuant to subdivision (b) of Section 44325,
3unless the governing board recommends, and the commission finds
4substantial evidence, that the person is not qualified to teach. A
5school district may require a district intern who is pursuing a clear
6credential to complete an approved induction program if funds are
7available or approved coursework in accordance with paragraph
8(5) of subdivision (c) of Section 44259.

9(c) Notwithstanding Section 44261, the preliminary credential
10awarded to any district intern holding a district intern credential
11to teach bilingual education classes shall be a basic teaching
12credential with a bilingual-crosscultural language and academic
13development emphasis. Notwithstanding Section 44265, the
14preliminary credential awarded to any district intern who holds a
15district intern credential to teach special education pupils shall be
16a special education specialist instruction credential that authorizes
17the holder to teach special education pupils.

18(d) It is the intent of the Legislature that institutions of higher
19education that operate approved programs of professional
20preparation work cooperatively with school districts that offer
21district intern programs for a special education specialist credential
22to apply the regular education coursework and fieldwork from the
23special education district intern program toward earning a multiple
24or single subject teaching credential through the institution.

25

SEC. 223.  

Article 11 (commencing with Section 44380) of
26Chapter 2 of Part 25 of Division 3 of Title 2 of the Education Code
27 is repealed.

28

SEC. 224.  

Article 12 (commencing with Section 44390) of
29Chapter 2 of Part 25 of Division 3 of Title 2 of the Education Code
30 is repealed.

31

SEC. 225.  

Article 13 (commencing with Section 44395) of
32Chapter 2 of Part 25 of Division 3 of Title 2 of the Education Code
33 is repealed.

34

SEC. 226.  

Article 4.5 (commencing with Section 44500) of
35Chapter 3 of Part 25 of Division 3 of Title 2 of the Education Code
36 is repealed.

37

SEC. 227.  

Article 5 (commencing with Section 44520) of
38Chapter 3 of Part 25 of Division 3 of Title 2 of the Education Code
39 is repealed.

P134  1

SEC. 228.  

Article 6 (commencing with Section 44560) of
2Chapter 3 of Part 25 of Division 3 of Title 2 of the Education Code
3 is repealed.

4

SEC. 229.  

Article 7 (commencing with Section 44570) of
5Chapter 3 of Part 25 of Division 3 of Title 2 of the Education Code
6 is repealed.

7

SEC. 230.  

Article 8 (commencing with Section 44580) of
8Chapter 3 of Part 25 of Division 3 of Title 2 of the Education Code
9 is repealed.

10

SEC. 231.  

Article 10 (commencing with Section 44630) of
11Chapter 3 of Part 25 of Division 3 of Title 2 of the Education Code
12 is repealed.

13

SEC. 232.  

Article 10.5 (commencing with Section 44645) of
14Chapter 3 of Part 25 of Division 3 of Title 2 of the Education Code
15 is repealed.

16

SEC. 233.  

Article 10.6 (commencing with Section 44650) of
17Chapter 3 of Part 25 of Division 3 of Title 2 of the Education Code
18 is repealed.

19

SEC. 234.  

Article 3 (commencing with Section 44681) of
20Chapter 3.1 of Part 25 of Division 3 of Title 2 of the Education
21Code
is repealed.

22

SEC. 235.  

Chapter 3.3 (commencing with Section 44700) of
23Part 25 of Division 3 of Title 2 of the Education Code is repealed.

24

SEC. 236.  

Chapter 3.33 (commencing with Section 44720) of
25Part 25 of Division 3 of Title 2 of the Education Code is repealed.

26

SEC. 237.  

Chapter 3.34 (commencing with Section 44730) of
27Part 25 of Division 3 of Title 2 of the Education Code is repealed.

28

SEC. 238.  

Chapter 3.36 (commencing with Section 44735) of
29Part 25 of Division 3 of Title 2 of the Education Code is repealed.

30

SEC. 239.  

Chapter 3.45 (commencing with Section 44755) of
31Part 25 of Division 3 of Title 2 of the Education Code is repealed.

32

SEC. 240.  

Chapter 3.5 (commencing with Section 44760) of
33Part 25 of Division 3 of Title 2 of the Education Code is repealed.

34

SEC. 241.  

Section 44944 of the Education Code is amended
35to read:

36

44944.  

(a) (1) In a dismissal or suspension proceeding initiated
37pursuant to Section 44934, if a hearing is requested by the
38employee, the hearing shall be commenced within 60 days from
39the date of the employee’s demand for a hearing. The hearing shall
40be initiated, conducted, and a decision made in accordance with
P135  1Chapter 5 (commencing with Section 11500) of Part 1 of Division
23 of Title 2 of the Government Code. However, the hearing date
3shall be established after consultation with the employee and the
4governing board of the school district, or their representatives, and
5the Commission on Professional Competence shall have all of the
6power granted to an agency in that chapter, except that the right
7of discovery of the parties shall not be limited to those matters set
8forth in Section 11507.6 of the Government Code but shall include
9the rights and duties of any party in a civil action brought in a
10superior court under Title 4 (commencing with Section 2016.010)
11of Part 4 of the Code of Civil Procedure. Notwithstanding any
12provision to the contrary, and except for the taking of oral
13depositions, no discovery shall occur later than 30 calendar days
14after the employee is served with a copy of the accusation pursuant
15to Section 11505 of the Government Code. In all cases, discovery
16shall be completed before seven calendar days before the date upon
17which the hearing commences. If a continuance is granted pursuant
18to Section 11524 of the Government Code, the time limitation for
19commencement of the hearing as provided in this subdivision shall
20be extended for a period of time equal to the continuance. However,
21the extension shall not include that period of time attributable to
22an unlawful refusal by either party to allow the discovery provided
23for in this section.

24(2) If the right of discovery granted under paragraph (1) is
25denied by either the employee or the governing board of the school
26district, all of the remedies in Chapter 7 (commencing with Section
272023.010) of Title 4 of Part 4 of the Code of Civil Procedure shall
28be available to the party seeking discovery and the court of proper
29jurisdiction, to entertain his or her motion, shall be the superior
30court of the county in which the hearing will be held.

31(3) The time periods in this section and of Chapter 5
32(commencing with Section 11500) of Part 1 of Division 3 of Title
332 of the Government Code and of Title 4 (commencing with
34Section 2016.010) of Part 4 of the Code of Civil Procedure shall
35not be applied so as to deny discovery in a hearing conducted
36pursuant to this section.

37(4) The superior court of the county in which the hearing will
38be held may, upon motion of the party seeking discovery, suspend
39the hearing so as to comply with the requirement of the preceding
40paragraph.

P136  1(5) No witness shall be permitted to testify at the hearing except
2upon oath or affirmation. No testimony shall be given or evidence
3introduced relating to matters that occurred more than four years
4before the date of the filing of the notice. Evidence of records
5regularly kept by the governing board of the school district
6concerning the employee may be introduced, but no decision
7relating to the dismissal or suspension of an employee shall be
8made based on charges or evidence of a nature relating to matters
9occurring more than four years before the filing of the notice.

10(b) (1) The hearing provided for in this section shall be
11conducted by a Commission on Professional Competence. One
12member of the commission shall be selected by the employee, one
13member shall be selected by the governing board of the school
14district, and one member shall be an administrative law judge of
15the Office of Administrative Hearings who shall be chairperson
16and a voting member of the commission and shall be responsible
17for assuring that the legal rights of the parties are protected at the
18hearing. If either the governing board of the school district or the
19employee for any reason fails to select a commission member at
20least seven calendar days before the date of the hearing, the failure
21shall constitute a waiver of the right to selection, and the county
22board of education or its specific designee shall immediately make
23the selection. If the county board of education is also the governing
24board of the school district or has by statute been granted the
25powers of a governing board of a school district, the selection shall
26be made by the Superintendent, who shall be reimbursed by the
27school district for all costs incident to the selection.

28(2) The member selected by the governing board of the school
29district and the member selected by the employee shall not be
30related to the employee and shall not be employees of the school
31district initiating the dismissal or suspension and shall hold a
32currently valid credential and have at least five years’ experience
33within the past 10 years in the discipline of the employee.

34(c) (1) The decision of the Commission on Professional
35Competence shall be made by a majority vote, and the commission
36shall prepare a written decision containing findings of fact,
37determinations of issues, and a disposition that shall be, solely,
38one of the following:

39(A) That the employee should be dismissed.

P137  1(B) That the employee should be suspended for a specific period
2of time without pay.

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

4(2) The decision of the Commission on Professional Competence
5that the employee should not be dismissed or suspended shall not
6be based on nonsubstantive procedural errors committed by the
7school district or governing board of the school district unless the
8errors are prejudicial errors.

9(3) The commission shall not have the power to dispose of the
10charge of dismissal by imposing probation or other alternative
11sanctions. The imposition of suspension pursuant to subparagraph
12(B) of paragraph (1) shall be available only in a suspension
13proceeding authorized pursuant to subdivision (b) of Section 44932
14or Section 44933.

15(4) The decision of the Commission on Professional Competence
16shall be deemed to be the final decision of the governing board of
17the school district.

18(5) The board may adopt from time to time rules and procedures
19not inconsistent with this section as may be necessary to effectuate
20this section.

21(6) The governing board of the school district and the employee
22shall have the right to be represented by counsel.

23(d) (1) If the member selected by the governing board of the
24school district or the member selected by the employee is employed
25by a school district in this state, the member shall, during any
26service on a Commission on Professional Competence, continue
27to receive salary, fringe benefits, accumulated sick leave, and other
28leaves and benefits from the school district in which the member
29is employed, but shall receive no additional compensation or
30honorariums for service on the commission.

31(2) If service on a Commission on Professional Competence
32occurs during summer recess or vacation periods, the member shall
33receive compensation proportionate to that received during the
34current or immediately preceding contract period from the
35member’s employing school district, whichever amount is greater.

36(e) (1) If the Commission on Professional Competence
37determines that the employee should be dismissed or suspended,
38the governing board of the school district and the employee shall
39share equally the expenses of the hearing, including the cost of the
P138  1administrative law judge. The employee and the governing board
2of the school district shall pay their own attorney’s fees.

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

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

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

23(5) If the decision of the commission is finally reversed or
24vacated by a court of competent jurisdiction, either the employee,
25having paid a portion of the expenses of the hearing, including the
26cost of the administrative law judge, shall be entitled to
27reimbursement from the governing board of the school district for
28the expenses, or the governing board of the school district, having
29paid its portion and the employee’s portion of the expenses of the
30hearing, including the cost of the administrative law judge, shall
31be entitled to reimbursement from the employee for that portion
32of the expenses.

33(f) The hearing provided for in this section shall be conducted
34in a place selected by agreement among the members of the
35commission. In the absence of agreement, the place shall be
36selected by the administrative law judge.

37

SEC. 242.  

Section 44955.5 of the Education Code is amended
38to read:

39

44955.5.  

(a) During the time period between five days after
40the enactment of the Budget Act and August 15 of the fiscal year
P139  1to which that Budget Act applies, if the governing board of a school
2district determines that its total local control funding formula
3allocation pursuant to Section 42238.02, as implemented by Section
442238.03, per unit of average daily attendance for the fiscal year
5of that Budget Act has not increased by at least 2 percent, and if
6in the opinion of the governing board of the school district it is
7therefore necessary to decrease the number of permanent
8employees in the school district, the governing board of the school
9district may terminate the services of permanent or probationary
10certificated employees of the school district, including employees
11holding a position that requires an administrative or supervisory
12 credential. The termination shall be pursuant to Sections 44951
13and 44955 but, notwithstanding anything to the contrary in Sections
1444951 and 44955, in accordance with a schedule of notice and
15hearing adopted by the governing board of the school district.

16(b) This section is inoperative from July 1, 2002, to July 1, 2003,
17inclusive, and from July 1, 2011, to July 1, 2012, inclusive.

18

SEC. 243.  

Section 45037 of the Education Code is repealed.

19

SEC. 244.  

Article 8.5 (commencing with Section 45370) of
20Chapter 5 of Part 25 of Division 3 of Title 2 of the Education Code
21 is repealed.

22

SEC. 245.  

Section 46010.2 of the Education Code is repealed.

23

SEC. 246.  

Section 46013 of the Education Code is repealed.

24

SEC. 247.  

Section 46013.7 of the Education Code is repealed.

25

SEC. 248.  

Section 46140 of the Education Code is amended
26to read:

27

46140.  

A pupil in a high school, other than a pupil enrolled in
28an evening high school, continuation high school, or continuation
29education class, shall not be credited with more than one day of
30attendance in any calendar day and nothing in this article shall be
31construed to the contrary.

32

SEC. 249.  

Section 46140.5 of the Education Code is repealed.

33

SEC. 250.  

Section 46141 of the Education Code is amended
34to read:

35

46141.  

The minimum schoolday in a high school is 240
36minutes, except in an evening high school, an early college high
37school, a middle college high school, a continuation high school,
38in continuation education classes, in late afternoon or Saturday
39occupationally organized vocational training programs conducted
40under a federally approved plan for vocational education, and for
P140  1students enrolled in a work experience education program approved
2under the provisions of Article 7 (commencing with Section 51760)
3of Chapter 5 of Part 28.

4

SEC. 251.  

Section 46144 of the Education Code is repealed.

5

SEC. 252.  

Section 46145 of the Education Code is amended
6to read:

7

46145.  

Commencing with the first semester or quarter that
8begins after January 1, 1984, pupils in grade 12 shall be enrolled
9in at least five courses each semester or the equivalent number of
10courses per quarter. If a pupil in grade 12 is required by medical
11prescription to attend school for less than five courses during the
12semester or the equivalent number of courses during the quarter,
13the average daily attendance allowed for that pupil’s attendance
14shall bear the same proportion to one day of attendance as the
15number of courses in which the pupil is enrolled bears to five or
16the equivalent number for the quarter system.

17However, this requirement shall not apply to pupils enrolled in
18courses at accredited postsecondary educational institutions,
19independent study, special education programs where the pupil’s
20individualized education program establishes a different number
21of courses, continuation education classes, work experience
22education programs approved under the provisions of Article 7
23(commencing with Section 51760) of Chapter 5 of Part 28, or any
24other course of study authorized by the governing board of the
25school district which is equivalent to the approved high school
26course of study.

27

SEC. 253.  

Article 7 (commencing with Section 46190) of
28Chapter 2 of Part 26 of Division 4 of Title 2 of the Education Code
29 is repealed.

30

SEC. 254.  

Section 46200 of the Education Code is amended
31to read:

32

46200.  

For a school district that received an apportionment
33pursuant to subdivision (a) of this section, as it read on January 1,
342013, and that offers less than 180 days of instruction or, in
35multitrack year-round schools, fewer than the number of days
36required in subdivision (a) of this section, as it read on January 1,
372013, for multitrack year-round schools, in the 2013-14 fiscal
38year, or any fiscal year thereafter, the Superintendent shall withhold
39from the school district’s local control funding formula grant
40apportionment pursuant to Section 42238.02, as implemented by
P141  1Section 42238.03, for the average daily attendance of each affected
2grade level the sum of 0.0056 multiplied by that apportionment,
3for each day less than 180, or, in multitrack year-round schools,
4for each day less than the number of days required in subdivision
5(a) for year-round schools that the school district offered.

6

SEC. 255.  

Section 46201 of the Education Code is amended
7to read:

8

46201.  

(a) For each school district that received an
9apportionment pursuant to subdivision (a) of this section, as it read
10on January 1, 2013, and that reduces the amount of instructional
11time offered below the minimum amounts specified in subdivision
12(b), the Superintendent shall withhold from the school district’s
13local control funding formula grant apportionment pursuant to
14Section 42238.02, as implemented by Section 42238.03, for the
15average daily attendance of each affected grade level, the sum of
16that apportionment multiplied by the percentage of the minimum
17offered minutes at that grade level that the school district failed to
18offer.

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

20(1) Thirty-six thousand minutes in kindergarten.

21(2) Fifty thousand four hundred minutes in grades 1 to 3,
22inclusive.

23(3) Fifty-four thousand minutes in grades 4 to 8, inclusive.

24(4) Sixty-four thousand eight hundred minutes in grades 9 to
2512, inclusive.

26

SEC. 256.  

Section 46201.1 of the Education Code is repealed.

27

SEC. 257.  

Section 46201.2 of the Education Code is amended
28to read:

29

46201.2.  

(a) Commencing with the 2009-10 school year and
30continuing through the 2012-13 school year, a school district,
31county office of education, or charter school may reduce the
32equivalent of up to five days of instruction or the equivalent
33number of instructional minutes without incurring the penalties
34set forth in Sections 41420, 46200, 46200.5, 46201, 46201.5,
3546202, and 47612.5, as those sections read on January 1, 2013. A
36school district, county office of education, or charter school shall
37receive revenue limit funding based on the adjustments prescribed
38pursuant to Section 42238.146, as it read on January 1, 2013,
39whether or not it reduces the number of schooldays or instructional
40minutes.

P142  1(b) For the 2013-14 and 2014-15 school years, a school district,
2county office of education, or charter school may reduce the
3equivalent of up to five days of instruction or the equivalent
4number of instructional minutes without incurring the penalties
5set forth in Sections 41420, 46200, 46200.5, 46201, 46201.5,
646202, and 47612.5.

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

11

SEC. 258.  

Section 46201.3 of the Education Code is repealed.

12

SEC. 259.  

Section 46201.6 of the Education Code is repealed.

13

SEC. 260.  

Section 46202 of the Education Code is amended
14to read:

15

46202.  

If a school district that does not participate in the
16program set forth in Sections 46200 to 46206, inclusive, as those
17sections read on January 1, 2013, offers less instructional time in
18a fiscal year than the amount of instructional time fixed for the
191982-83 fiscal year, the Superintendent shall withhold for that
20fiscal year, from the school district’s local control funding formula
21grant apportionment pursuant to Section 42238.03, as implemented
22by Section 42238.03, for the average daily attendance of each
23affected grade level, the amount of that apportionment multiplied
24by the percentage of instructional minutes fixed in the 1982-83
25school year, at that grade level, that the school district failed to
26offer.

27

SEC. 261.  

Section 46203 of the Education Code is repealed.

28

SEC. 262.  

Section 46204 of the Education Code is repealed.

29

SEC. 263.  

Section 46207 is added to the Education Code, to
30read:

31

46207.  

(a) Notwithstanding Sections 46200 to 46205,
32inclusive, upon a determination that a school district equals or
33exceeds its local control funding formula target computed pursuant
34to Section 42238.02 as determined by the calculation of a zero
35difference pursuant to paragraph (1) of subdivision (b) of Section
3642238.03, each school district, as a condition of apportionment
37pursuant to Section 42238.02, as implemented pursuant to Section
3842238.03, shall, for each fiscal year, offer, at a minimum, the
39following number of minutes of instruction:

40(1) To pupils in kindergarten, 36,000 minutes.

P143  1(2) To pupils in grades 1 to 3, inclusive, 50,400 minutes.

2(3) To pupils in grades 4 to 8, inclusive, 54,000 minutes.

3(4) To pupils in grades 9 to 12, inclusive, 64,800 minutes.

4(b) For a school district that has met its local control funding
5formula target that reduces the amount of instructional time offered
6below the minimum amounts specified in subdivision (a), the
7Superintendent shall withhold from the school district’s local
8control funding formula apportionment for the average daily
9attendance of each affected grade level, the sum of that
10apportionment multiplied by the percentage of the minimum
11offered minutes at that grade level that the school district failed to
12offer.

13(c) Notwithstanding subdivision (a), for the 2013-14 and
142014-15 school years, a school district that equals or exceeds its
15computed local control funding formula target may reduce the
16equivalent of up to five days of instruction or the equivalent
17number of instructional minutes without incurring the penalties
18set forth in this section.

19

SEC. 264.  

Section 46208 is added to the Education Code, to
20read:

21

46208.  

(a) Notwithstanding Sections 46200 to 46205,
22inclusive, upon a determination that a school district equals or
23exceeds its local control funding formula target computed pursuant
24to Section 42238.02 as determined by the calculation of a zero
25difference pursuant to paragraph (1) of subdivision (b) of Section
2642238.03, each school district, as a condition of apportionment
27pursuant to Section 42238.02, as implemented pursuant to Section
2842238.03, shall offer 180 days or more of instruction per school
29year. A school operating a multitrack year-round school shall be
30deemed to be in compliance with the 180-day requirement if it
31certifies to the Superintendent that it is a multitrack year-round
32school and maintains its school for a minimum of 163 schooldays.

33(b) Notwithstanding subdivision (a), for the 2013-14 and
342014-15 school years, a school district that equals or exceeds its
35computed local control funding formula target may reduce the
36equivalent of up to five days of instruction or the equivalent
37number of instructional minutes without incurring the penalties
38set forth in this section.

39

SEC. 265.  

Section 46300 of the Education Code is amended
40to read:

P144  1

46300.  

(a) In computing average daily attendance of a school
2district or county office of education, there shall be included the
3attendance of pupils while engaged in educational activities
4required of those pupils and under the immediate supervision and
5control of an employee of the school district or county office of
6education who possessed a valid certification document, registered
7as required by law.

8(b) (1) For purposes of a work experience education program
9in a secondary school that meets the standards of the California
10State Plan for Career Technical Education, “immediate
11supervision,” in the context of off-campus work training stations,
12means pupil participation in on-the-job training as outlined under
13a training agreement, coordinated by the school district under a
14state-approved plan, wherein the employer and certificated school
15personnel share the responsibility for on-the-job supervision.

16(2) A pupil enrolled in a work experience program shall not be
17credited with more than one day of attendance per calendar day,
18and shall be a full-time pupil enrolled in regular classes that meet
19the requirements of Section 46141 or 46144.

20(c) (1) For purposes of the rehabilitative schools, classes, or
21programs described in Section 48917 that require immediate
22supervision, “immediate supervision” means that the person to
23whom the pupil is required to report for training, counseling,
24tutoring, or other prescribed activity shares the responsibility for
25the supervision of the pupils in the rehabilitative activities with
26certificated personnel of the school district.

27(2) A pupil enrolled in a rehabilitative school, class, or program
28shall not be credited with more than one day of attendance per
29calendar day.

30(d) (1) In computing the average daily attendance of a school
31district, there shall also be included the attendance of pupils
32participating in independent study conducted pursuant to Article
335.5 (commencing with Section 51745) of Chapter 5 of Part 28 for
34five or more consecutive schooldays.

35(2) A pupil participating in independent study shall not be
36credited with more than one day of attendance per calendar day.

37(e) (1) In computing the average daily attendance of a school
38district, there shall be included the attendance of pupils in
39kindergarten after they have completed one school year in
40kindergarten or pupils in a transitional kindergarten program after
P145  1they have completed one year in that program if one of the
2following conditions is met:

3(A) The school district has on file for each of those pupils an
4agreement made pursuant to Section 48011, approved in form and
5content by the department and signed by the pupil’s parent or
6guardian, that the pupil may continue in kindergarten for not more
7than one additional school year.

8(B) The pupils participated in a transitional kindergarten
9program pursuant to subdivision (c) of Section 48000.

10(2) A school district may not include for apportionment purposes
11the attendance of any pupil for more than two years in kindergarten
12or for more than two years in a combination of transitional
13kindergarten and kindergarten.

14

SEC. 266.  

Section 46300.1 of the Education Code is amended
15to read:

16

46300.1.  

Commencing July 1, 1993, a school district shall not
17receive school district apportionments pursuant to Section 42238.02
18for independent study by pupils 21 years of age or older or by
19pupils 19 years of age or older who have not been continuously
20enrolled in kindergarten or any of grades 1 to 12, inclusive, since
21their 18th birthday.

22

SEC. 267.  

Section 46300.7 of the Education Code is amended
23to read:

24

46300.7.  

Notwithstanding any other law, a school district or
25county office of education shall not receive apportionments for a
26pupil in independent study unless that entity receives written
27permission from the parent or guardian of the pupil before the
28commencement of independent study by that pupil consistent with
29the requirements for independent study pursuant to Section 51747.

30

SEC. 268.  

Section 46306 of the Education Code is repealed.

31

SEC. 269.  

Article 5 (commencing with Section 46351) of
32Chapter 3 of Part 26 of Division 4 of Title 2 of the Education Code
33 is repealed.

34

SEC. 270.  

Section 46392 of the Education Code is amended
35to read:

36

46392.  

(a) Whenever the average daily attendance of a school
37district or county office of education, during a fiscal year has been
38materially decreased during a fiscal year because of any of the
39following, the fact shall be established to the satisfaction of the
40Superintendent by affidavits of the members of the governing
P146  1board of the school district or county office of education, and the
2county superintendent of schools:

3(1) Fire.

4(2) Flood.

5(3) Impassable roads.

6(4) An epidemic.

7(5) An earthquake.

8(6) The imminence of a major safety hazard as determined by
9the local law enforcement agency.

10(7) A strike involving transportation services to pupils provided
11by a nonschool entity.

12(8) An order provided for in Section 41422.

13(b) In the event a state of emergency is declared by the Governor
14in a county, a decrease in average daily attendance in the county
15below the approximate total average daily attendance that would
16have been credited to a school district or county office of education
17had the state of emergency not occurred shall be deemed material.
18The Superintendent shall determine the length of the period during
19which average daily attendance has been reduced by the state of
20emergency. This period which is determined by the Superintendent
21shall not extend into the next fiscal year following the declaration
22of the state of emergency by the Governor, except upon a showing
23by a school district or county office of education, to the satisfaction
24of the Superintendent, that extending the period into the next fiscal
25year is essential to alleviate continued reductions in average daily
26attendance attributable to the state of emergency.

27(c) The average daily attendance of the school district or county
28office of education for the fiscal year shall be estimated by the
29Superintendent in a manner that credits to the school district or
30county office of education for determining the apportionments to
31be made to the school district or county office of education from
32the State School Fund approximately the total average daily
33attendance that would have been credited to the school district or
34county office of education had the emergency not occurred or had
35the order not been issued.

36(d) This section applies to any average daily attendance that
37occurs during any part of a school year.

38

SEC. 271.  

Section 46602 of the Education Code is amended
39to read:

P147  1

46602.  

If the county board of education determines that the
2pupil should be permitted to attend in the school district in which
3he or she desires to attend, the pupil shall be admitted to school in
4the school district without delay and the attendance may be counted
5by the school district of attendance for local control funding
6formula allocations pursuant to Section 42238.02, as implemented
7by Section 42238.03, state apportionment purposes.

8Written notice of the decision by the county board of education
9shall be delivered to the pupil and the parent or guardian, or person
10having custody of him or her, and to the governing boards of the
11school districts.

12

SEC. 272.  

Section 46603 of the Education Code is amended
13to read:

14

46603.  

For a period not to exceed two school months, the
15governing board of a school district may provisionally admit to
16the schools of the school district a pupil who resides in another
17school district, pending a decision of the two governing boards of
18the school districts, or by the county board of education upon
19appeal, regarding the interdistrict attendance.

20Regardless of whether the decision on interdistrict attendance
21is allowed, the provisional attendance may be counted by the school
22district of attendance for local control funding formula allocations
23pursuant to Section 42238.02, as implemented by Section 42238.03,
24and state apportionment purposes.

25

SEC. 273.  

Section 46606 of the Education Code is repealed.

26

SEC. 274.  

Section 46607 of the Education Code is amended
27to read:

28

46607.  

(a) Except as provided in subdivision (b), the average
29daily attendance for attendance of pupils from another school
30district shall be credited to the school district of attendance for
31purposes of determining state apportionments and the local control
32funding formula allocations pursuant to Section 42238.02, as
33implemented by Section 42238.03.

34(b) For a school district that would have a reduction of 25
35percent or more in its federal grant pursuant to Public Law 81-874
36if the average daily attendance of pupils residing within the school
37district were credited to the school district of attendance, then the
38average daily attendance resulting from an interdistrict attendance
39agreement shall be credited to the school district of residence and
40the school district of residence shall pay a tuition to the school
P148  1district of attendance no later than the next August 31, after the
2close of the fiscal year pursuant to subdivision (c).

3(c) For attendance in regular day schools and summer schools
4the tuition per unit of average daily attendance, if any, shall not
5exceed the actual cost per unit of average daily attendance for the
6grade level or program less any income, other than tuition, received
7by the school district of attendance on account of such attendance.

8

SEC. 275.  

Section 46610 of the Education Code is amended
9to read:

10

46610.  

Notwithstanding any other law, the Fallbrook Union
11High School District shall enter into an interdistrict attendance
12agreement with the Capistrano Unified School District to allow
13any pupil, at the request of his or her parent or guardian, to attend
14schools of the Capistrano Unified School District when the pupil
15resides in the San Onofre housing area of the Marine Corps Base,
16Camp Joseph H. Pendleton. No more than 150 pupils from the
17Fallbrook Union High School District may attend school in the
18Capistrano Unified School District pursuant to this interdistrict
19attendance agreement.

20The Fallbrook Union High School District shall be credited with
21the average daily attendance of these pupils for the purpose of
22determining state apportionments and local control funding formula
23allocations pursuant to Section 42238.02, as implemented by
24Section 42238.03, and for the purpose of receiving federal grants
25pursuant to Public Law 81-874.

26The Fallbrook Union High School District shall pay tuition to
27the Capistrano Unified School District for the attendance of these
28pupils only in the amount of the state apportionments paid to the
29Fallbrook Union High School District for the attendance of these
30pupils, plus an amount computed as follows:

31(a) Divide the amount of funds paid pursuant to Section 3 of
32Public Law 81-874 (20 U.S.C. 238) to the Fallbrook Union High
33School District in the current fiscal year by the average daily
34attendance of the school district in the current fiscal year.

35(b) Multiply the amount in subdivision (a) by the average daily
36attendance, for the year of attendance for secondary school pupils
37 attending the schools of the Capistrano Unified School District
38pursuant to Section 46610.

39

SEC. 276.  

Section 47604.33 of the Education Code is amended
40to read:

P149  1

47604.33.  

(a) Each charter school shall annually prepare and
2submit the following reports to its chartering authority and the
3county superintendent of schools, or only to the county
4superintendent of schools if the county board of education is the
5chartering authority:

6(1) On or before July 1, a preliminary budget and a local control
7and accountability plan adopted pursuant to Section 52065. For a
8charter school in its first year of operation, the information
9submitted pursuant to subdivision (g) of Section 47605 satisfies
10this requirement.

11(2) On or before December 15, an interim financial report. This
12report shall reflect changes through October 31.

13(3) On or before March 15, a second interim financial report.
14This report shall reflect changes through January 31.

15(4) On or before September 15, a final unaudited report for the
16full prior year.

17(b) The chartering authority shall use any financial information
18it obtains from the charter school, including, but not limited to,
19the reports required by this section, to assess the fiscal condition
20of the charter school pursuant to subdivision (d) of Section
2147604.32.

22(c) The cost of performing the duties required by this section
23shall be funded with supervisorial oversight fees collected pursuant
24to Section 47613.

25

SEC. 277.  

Section 47610 of the Education Code is amended
26to read:

27

47610.  

A charter school shall comply with this part and all of
28the provisions set forth in its charter, but is otherwise exempt from
29the laws governing school districts, except all of the following:

30(a) As specified in Section 47611.

31(b) As specified in Section 41365.

32(c) As specified in Section 52065.

33(d) All laws establishing minimum age for public school
34attendance.

35(e) The California Building Standards Code (Part 2
36(commencing with Section 101) of Title 24 of the California Code
37of Regulations), as adopted and enforced by the local building
38enforcement agency with jurisdiction over the area in which the
39charter school is located.

P150  1(f) Charter school facilities shall comply with subdivision (d)
2by January 1, 2007.

3

SEC. 278.  

Section 47612.7 of the Education Code is repealed.

4

SEC. 279.  

Section 47613 of the Education Code is amended
5to read:

6

47613.  

(a) Except as set forth in subdivision (b), a chartering
7authority may charge for the actual costs of supervisorial oversight
8of a charter school not to exceed 1 percent of the revenue of the
9charter school.

10(b) A chartering authority may charge for the actual costs of
11supervisorial oversight of a charter school not to exceed 3 percent
12of the revenue of the charter school if the charter school is able to
13obtain substantially rent free facilities from the chartering authority.

14(c) A local agency that is given the responsibility for
15supervisorial oversight of a charter school, pursuant to paragraph
16(1) of subdivision (k) of Section 47605, may charge for the actual
17 costs of supervisorial oversight, and administrative costs necessary
18to secure charter school funding. A charter school that is charged
19for costs under this subdivision may not be charged pursuant to
20subdivision (a) or (b).

21(d) This section does not prevent the charter school from
22separately purchasing administrative or other services from the
23chartering authority or any other source.

24(e) For purposes of this section, a chartering authority means a
25school district, county board of education, or the state board, that
26granted the charter to the charter school.

27(f) For purposes of this section, “revenue of the charter school”
28means the local control funding formula allocation pursuant to
29Section 42238.02, as implemented by Section 42238.03.

30(g) (1) The California Research Bureau of the California State
31Library shall prepare and submit to the Legislature on or before
32January 8, 2009, a report on the key elements and actual costs of
33charter school oversight. For purposes of the report, the bureau
34shall define fiscal and academic oversight and shall include any
35financial relationship between a charter school and its chartering
36authority that has the effect of furthering the operations of the
37charter school and that may provide opportunities to oversee the
38charter school. The report, at a minimum, shall address all of the
39following issues:

P151  1(A) The range of annual activities that entities providing
2supervisorial oversight of charter schools are expected to perform.

3(B) Staff time spent on reviewing charter petitions measured
4by the size of school districts and the number of charter petitions
5reviewed.

6(C) Staff time spent on oversight responsibilities measured by
7the size of school districts and the number of charter schools.

8(D) Best practices for charter school oversight measured by
9efficiency and effectiveness. A cost analysis of those best practices
10after being measured by efficiency and effectiveness.

11(E) Comparison of school district costs and revenues attributable
12to charter school oversight.

13(F) Administrative services provided to a charter school by a
14chartering authority, such as human resources, that may be useful
15in the oversight of the charter school and chartering authority
16revenues attributable to those services.

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

18(H) Recommendations for structuring charter school oversight
19and accountability in California, including an assessment of
20whether or not the associated costs specified in subdivisions (a)
21and (b) and subparagraph (F) are adequate to support appropriate
22supervisorial oversight.

23(2) In preparing its report, the California Research Bureau shall
24consult with an advisory panel to ensure technical accuracy.

25

SEC. 280.  

Section 47613.1 of the Education Code is amended
26to read:

27

47613.1.  

The Superintendent shall make both of the following
28apportionments on behalf of a charter school in a school district
29in which all schools have been converted to charter schools
30pursuant to Section 47606 :

31(a) For each pupil enrolled in the charter school who is entitled
32to special education services, the state and federal funds for special
33education services for that pupil that would have been apportioned
34for that pupil to the school district to which the charter petition
35was submitted.

36(b) Funds for the programs described in Sections 63000 and
3764000, to the extent that any pupil enrolled in the charter school
38is eligible to participate.

39

SEC. 281.  

Section 47613.2 of the Education Code is repealed.

P152  1

SEC. 282.  

Section 47630 of the Education Code is amended
2to read:

3

47630.  

It is the intent of the Legislature that each charter school
4be provided with operational funding that is equal to the total
5funding that would be available to a similar school district serving
6a similar pupil population, except that a charter school may not be
7funded as a necessary small school or a necessary small high
8school.

9

SEC. 283.  

Section 47630.5 of the Education Code is repealed.

10

SEC. 284.  

Section 47631 of the Education Code is amended
11to read:

12

47631.  

(a) Article 3 (commencing with Section 47636) shall
13not apply to a charter granted pursuant to Section 47605.5.

14(b) Notwithstanding subdivision (a), a pupil attending a
15county-sponsored charter school who is eligible to attend that
16school solely as a result of parental request pursuant to subdivision
17(b) of Section 1981 shall be funded pursuant to the local control
18funding formula pursuant to Section 42238.02, as implemented
19by Section 42238.03.

20

SEC. 285.  

Section 47632 of the Education Code is amended
21to read:

22

47632.  

For purposes of this chapter, the following terms shall
23be defined as follows:

24(a) “General-purpose entitlement” means an amount computed
25by the local control funding formula pursuant to Section 42238.02,
26as implemented by Section 42238.03.

27(b) “General-purpose funding” means those funds that consist
28of state aid, local property taxes, and other revenues applied toward
29a school district’s local control funding formula, pursuant to
30Section 42238.02, as implemented by Section 42238.03.

31(c) “Categorical aid” means aid that consists of state or federally
32funded programs, or both, which are apportioned for specific
33purposes set forth in statute or regulation.

34(d) “Educationally disadvantaged pupils” means those pupils
35who are eligible for subsidized meals pursuant to Section 49552
36or are identified as English learners pursuant to subdivision (a) of
37Section 306, or both.

38(e) “Operational funding” means all funding except funding for
39capital outlay.

P153  1(f) “School district of a similar type” means a school district
2that is serving similar grade levels.

3(g) “Similar pupil population” means similar numbers of pupils
4by grade level, with a similar proportion of educationally
5disadvantaged pupils.

6(h) “Sponsoring local educational agency” means the following:

7(1) If a charter school is granted by a school district, the
8sponsoring local educational agency is the school district.

9(2) If a charter is granted by a county office of education after
10having been previously denied by a school district, the sponsoring
11local educational agency means the school district that initially
12denied the charter petition.

13(3) If a charter is granted by the state board after having been
14previously denied by a local educational agency, the sponsoring
15local educational agency means the local educational agency
16designated by the state board pursuant to paragraph (1) of
17subdivision (k) of Section 47605 or if a local educational agency
18is not designated, the local educational agency that initially denied
19the charter petition.

20(4) For pupils attending county-sponsored charter schools who
21are eligible to attend those schools solely as a result of parental
22request pursuant to subdivision (b) of Section 1981, the sponsoring
23local educational agency means the pupils’ school district of
24residence.

25(5) For pupils attending countywide charter schools pursuant
26to Section 47605.6 who reside in a basic aid school district, the
27sponsoring local educational agency means the school district of
28residence of the pupil. For purposes of this paragraph, “basic aid
29school district” means a school district that does not receive an
30apportionment of state funds as described in subdivision (o) of
31Section 42238.02.

32

SEC. 286.  

Section 47632.5 of the Education Code is repealed.

33

SEC. 287.  

Section 47633 of the Education Code is repealed.

34

SEC. 288.  

Section 47634.1 of the Education Code, as amended
35by Section 23 of Chapter 2 of the 4th Extraordinary Session of the
36Statutes of 2009, is repealed.

37

SEC. 289.  

Section 47634.1 of the Education Code, as added
38by Section 24 of Chapter 2 of the 4th Extraordinary Session of the
39Statutes of 2009, is repealed.

P154  1

SEC. 290.  

Section 47634.3 of the Education Code is amended
2to read:

3

47634.3.  

For purposes of Sections 42238.02 and 42238.03, the
4Superintendent shall compute average daily attendance in each of
5grades 1 through 12, respectively, as follows:

6(a) Distribute statewide total ungraded enrollment and average
7daily attendance among kindergarten and each of grades 1 through
812, inclusive, in proportion to the amounts of graded enrollment
9and average daily attendance, respectively, in each of these grades.

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

14

SEC. 291.  

Section 47634.4 of the Education Code is amended
15to read:

16

47634.4.  

(a) A charter school that elects to receive its funding
17directly, pursuant to Section 47651, may apply individually for
18federal and state categorical programs, not excluded in this section,
19but only to the extent it is eligible for funding and meets the
20provisions of the program. For purposes of determining eligibility
21for, and allocation of, state or federal categorical aid, a charter
22school that applies individually shall be deemed to be a school
23district, except as otherwise provided in this chapter.

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

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

33(d) Consistent with subdivision (c), a charter school may not
34receive direct funding for any of the following county-administered
35categorical programs:

36(1) American Indian Education Centers.

37(2) County Office Fiscal Crisis and Management Assistance
38Team.

39(3) The K-12 High Speed Network.

P155  1(e) A charter school may apply separately for district-level or
2school-level grants associated with any of the categorical programs
3specified in subdivision (d).

4

SEC. 292.  

Section 47635 of the Education Code is amended
5to read:

6

47635.  

(a) A sponsoring local educational agency shall
7annually transfer to each of its charter schools funding in lieu of
8property taxes equal to the lesser of the following two amounts:

9(1) The average amount of property taxes per unit of average
10daily attendance, including average daily attendance attributable
11to charter schools, received by the local educational agency,
12multiplied by the charter school’s average daily attendance.

13(2) The statewide average local control funding formula grant
14funding pursuant to Section 42238.02, as implemented by Section
1542238.03, per unit of average daily attendance received by school
16districts, as determined by the department, multiplied by the charter
17school’s average daily attendance in each of the four corresponding
18grade level ranges: kindergarten and grades 1, 2, and 3; grades 4,
195, and 6; grades 7 and 8; and grades 9 to 12, inclusive.

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

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

31(A) Six percent in August.

32(B) Twelve percent in September.

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

35(2) For the months of March to June, inclusive, a charter
36school’s funding in lieu of property taxes shall be computed based
37on the amount of property taxes estimated to be received by the
38sponsoring local educational agency during the fiscal year, as
39reported to the Superintendent for purposes of the first principal
40apportionment. A sponsoring local educational agency shall transfer
P156  1to each of its charter schools an amount equal to one-sixth of the
2difference between the school’s estimated annual entitlement to
3funding in lieu of property taxes and the amounts provided pursuant
4to paragraph (1). An additional one-sixth of this difference shall
5be included in the amount transferred in the month of March.

6(3) For the month of July, a charter school’s funding in lieu of
7property taxes shall be computed based on the amount of property
8taxes estimated to be received by the sponsoring local educational
9agency during the prior fiscal year, as reported to the
10Superintendent for purposes of the second principal apportionment.
11A sponsoring local educational agency shall transfer to each of its
12charter schools an amount equal to the remaining difference
13between the school’s estimated annual entitlement to funding in
14lieu of property taxes and the amounts provided pursuant to
15paragraphs (1) and (2).

16(4) Final adjustments to the amount of funding in lieu of
17property taxes allocated to a charter school shall be made in
18February, in conjunction with the final reconciliation of annual
19apportionments to schools.

20(5) Subdivision (a) and paragraphs (1) to (4), inclusive, do not
21apply for pupils who reside in, and are otherwise eligible to attend
22a school in, a basic aid school district, but who attend a charter
23school in a nonbasic aid school district. With regard to these pupils,
24the sponsoring basic aid school district shall transfer to the charter
25school an amount of funds equivalent to the local control funding
26formula grant pursuant to Section 42238.02, as implemented by
27Section 42238.03, earned through average daily attendance by the
28charter school for each pupil’s attendance, not to exceed the
29average property tax share per unit of average daily attendance for
30pupils residing and attending in the basic aid school district. The
31transfer of funds shall be made in not fewer than two installments
32at the request of the charter school, the first occurring not later
33than February 1 and the second not later than June 1 of each school
34year. Payments shall reflect the average daily attendance certified
35for the time periods of the first and second principal
36apportionments, respectively. The Superintendent may not
37apportion any funds for the attendance of pupils described in this
38subdivision unless the amount transferred by the basic aid school
39district is less than the local control funding formula grant pursuant
40to Section 42238.02, as implemented by Section 42238.03, earned
P157  1by the charter school, in which event the Superintendent shall
2apportion the difference to the charter school from state funds.

3

SEC. 293.  

Section 47636 of the Education Code is amended
4to read:

5

47636.  

(a) This chapter shall not prevent a charter school from
6negotiating with a local educational agency for a share of
7operational funding from sources not otherwise set forth in this
8chapter including, but not limited to, all of the following:

9(1) Forest reserve revenues and other operational revenues
10received due to harvesting or extraction of minerals or other natural
11resources.

12(2) Sales and use taxes, to the extent that the associated revenues
13are available for noncapital expenses of public schools.

14(3) Parcel taxes, to the extent that the associated revenues are
15available for noncapital expenses of public schools.

16(4) Ad valorem property taxes received by a school district
17which exceed its local control funding formula entitlement pursuant
18to Section 42238.02, as implemented by Section 42238.03.

19(5) “Basic aid” received by a school district pursuant to Section
206 of Article IX of the California Constitution.

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

22

SEC. 294.  

Section 47650 of the Education Code is amended
23to read:

24

47650.  

A charter school shall be deemed to be a school district
25for purposes of determining the manner in which warrants are
26drawn on the State School Fund pursuant to Section 14041. For
27purposes of Section 14041, a charter school’s “total amount
28certified” means the state aid portion of the charter school’s total
29local control funding formula allocation pursuant to Section
3042238.02, as implemented by Section 42238.03.

31

SEC. 295.  

Section 47651 of the Education Code is amended
32to read:

33

47651.  

(a) A charter school may receive the state aid portion
34of the charter school’s total local control funding formula allocation
35pursuant to Section 42238.02, as implemented by Section 42238.03,
36directly or through the local educational agency that either grants
37its charter or was designated by the state board.

38(1) In the case of a charter school that elects to receive its
39funding directly, the warrant shall be drawn in favor of the county
40superintendent of schools of the county in which the local
P158  1educational agency that approved the charter or was designated
2by the state board as the oversight agency pursuant to paragraph
3(1) of subdivision (k) of Section 47605 is located, for deposit to
4the appropriate funds or accounts of the charter school in the county
5treasury. The county superintendent of schools is authorized to
6establish appropriate funds or accounts in the county treasury for
7each charter school.

8(2) In the case of a charter school that does not elect to receive
9its funding directly pursuant to Section 47651, the warrant shall
10be drawn in favor of the county superintendent of schools of the
11county in which the local educational agency that granted the
12charter is located or was designated the oversight agency by the
13state board pursuant to paragraph (1) of subdivision (k) of Section
1447605, for deposit to the appropriate funds or accounts of the local
15educational agency.

16(3) In the case of a charter school, the charter of which was
17granted by the state board, but for which the state board has not
18delegated oversight responsibilities pursuant to paragraph (1) of
19subdivision (k) of Section 47605, the warrant shall be drawn in
20favor of the county superintendent of schools in the county where
21the local educational agency is located that initially denied the
22charter that was later approved by the state board. The county
23superintendent of schools is authorized to establish appropriate
24funds or accounts in the county treasury for each charter school.

25(b) On or before June 1 of each year, a charter school electing
26to receive its funding directly shall so notify the county
27superintendent of schools of the county in which the local
28educational agency that granted the charter is located or, in the
29case of charters for which the state board has designated an
30oversight agency pursuant to paragraph (1) of subdivision (k) of
31Section 47605, the county superintendent of schools of the county
32in which the designated oversight agency is located. An election
33to receive funding directly shall apply to all funding that the charter
34school is eligible to receive including, but not limited to, the local
35control funding formula allocation pursuant to Section 42238.02,
36as implemented by Section 42238.03, other state and federal
37categorical aid, and lottery funds.

38

SEC. 296.  

Section 47660 of the Education Code is amended
39to read:

P159  1

47660.  

For purposes of computing eligibility for, and
2entitlements to, general purpose funding and operational funding
3for categorical programs, the enrollment and average daily
4attendance of a sponsoring local educational agency shall exclude
5the enrollment and attendance of pupils in its charter schools
6funded pursuant to this chapter.

7

SEC. 297.  

Section 47662 of the Education Code is amended
8to read:

9

47662.  

For purposes of Section 42238.02, as implemented by
10Section 42238.03, the property tax revenues received by a
11sponsoring local educational agency pursuant to Chapter 3.5
12(commencing with Section 75) and Chapter 6 (commencing with
13Section 95) of Part 0.5 of Division 1 of the Revenue and Taxation
14Code shall be reduced by the amount of funding in lieu of property
15taxes allocated to a charter school or schools pursuant to Section
1647635.

17

SEC. 298.  

Section 47663 of the Education Code is amended
18to read:

19

47663.  

(a) For a pupil of a charter school sponsored by a basic
20aid school district who resides in, and is otherwise eligible to
21attend, a school district other than a basic aid school district, the
22Superintendent shall apportion to the sponsoring school district
23an amount equal to 70 percent of the local control funding formula
24allocations pursuant to Section 42238.02, as implemented by
25Section 42238.03, per unit of average daily attendance that would
26have been apportioned to the school district that the pupil resides
27in and would otherwise have been eligible to attend.

28(b) A school district that loses basic aid status as a result of
29transferring property taxes to a charter school or schools pursuant
30to Section 47635 for pupils who reside in, and are otherwise
31eligible to attend a school district other than the school district that
32sponsors the charter school, shall be eligible to receive a pro rata
33share of funding provided by subdivision (a), with the proration
34factor calculated as the ratio of the following:

35(1) The amount of property taxes that the school district receives
36in excess of its total base grant per unit of average daily attendance
37calculated pursuant to Section 42238.02, as implemented by
38Section 42238.03, before any transfers made pursuant to Section
3947635, except for transfers of in lieu of taxes made for pupils who
P160  1reside in and would otherwise be eligible to attend a school of the
2school district.

3(2) The total amount of in lieu of property taxes transferred
4pursuant to Section 47635 to the charter school or schools that it
5sponsors, except for transfer of in lieu of taxes made for pupils
6 who reside in and would otherwise be eligible to attend a school
7of the school district.

8(c) In no event shall the amount provided pursuant to this section
9exceed the amount of in lieu of property taxes transferred on behalf
10of charter school pupils who do not reside in the school district,
11less the proportionate amount of base grant state aid provided
12pursuant to Section 42238.02, as implemented by Section 42238.03,
13that is attributable to the charter school pupils who do not reside
14in the school district.

15(d) The Superintendent shall not apportion funds for the
16attendance of a pupil in a charter school of a nonbasic aid school
17district who resides in, and is otherwise eligible to attend school
18in, a basic aid school district unless the pupil is subject to the
19exception set forth in paragraph (5) of subdivision (b) of Section
2047635.

21(e) For purposes of this section, “basic aid school district” means
22a school district that does not receive from the state, for any fiscal
23year in which the subdivision is applied, an apportionment of state
24funds as described in subdivision (o) of Section 42238.02.

25

SEC. 299.  

Section 47664 of the Education Code is repealed.

26

SEC. 300.  

Section 48200.7 of the Education Code is repealed.

27

SEC. 301.  

Section 48206.3 of the Education Code is amended
28to read:

29

48206.3.  

(a) Except for those pupils receiving individual
30instruction provided pursuant to Section 48206.5, a pupil with a
31temporary disability which makes attendance in the regular day
32classes or alternative education program in which the pupil is
33enrolled impossible or inadvisable shall receive individual
34instruction provided by the school district in which the pupil is
35deemed to reside.

36(b) For purposes of this section and Sections 48206.5, 48207,
37and 48208, the following terms have the following meanings:

38(1) “Individual instruction” means instruction provided to an
39individual pupil in the pupil’s home, in a hospital or other
40residential health facility, excluding state hospitals, or under other
P161  1circumstances prescribed by regulations adopted for that purpose
2by the state board.

3(2) “Temporary disability” means a physical, mental, or
4emotional disability incurred while a pupil is enrolled in regular
5day classes or an alternative education program, and after which
6the pupil can reasonably be expected to return to regular day classes
7or the alternative education program without special intervention.
8A temporary disability shall not include a disability for which a
9pupil is identified as an individual with exceptional needs pursuant
10to Section 56026.

11(c) (1) For purposes of computing average daily attendance
12pursuant to Section 42238.05, each clock hour of teaching time
13devoted to individual instruction shall count as one day of
14attendance.

15(2) A pupil shall not be credited with more than five days of
16attendance per calendar week, or more than the total number of
17calendar days that regular classes are maintained by the school
18district in a fiscal year.

19(d) Notice of the availability of individualized instruction shall
20be given pursuant to Section 48980.

21

SEC. 302.  

Section 48208 of the Education Code is amended
22to read:

23

48208.  

(a) It shall be the primary responsibility of the parent
24or guardian of a pupil with a temporary disability to notify the
25school district in which the pupil is deemed to reside pursuant to
26Section 48207 of the pupil’s presence in a qualifying hospital.

27(b) Upon receipt of notification pursuant to subdivision (a), a
28school district shall do all of the following:

29(1) Within five working days of receipt of the notification,
30determine whether the pupil will be able to receive individualized
31instruction, and, if the determination is positive, when the
32individualized instruction may commence. Individualized
33instruction shall commence no later than five working days after
34the positive determination has been rendered.

35(2) Provide the pupil with individualized instruction pursuant
36to Section 48206.3. The school district may enter into an agreement
37with the school district in which the pupil previously attended
38regular day classes or an alternative education program, to have
39the school district the pupil previously attended provide the pupil
40with individualized instruction pursuant to Section 48206.3.

P162  1(3) Within five working days of the commencement of
2individualized instruction, provide the school district in which the
3pupil previously attended regular day classes or an alternative
4education program with written notice that the pupil shall not be
5counted by that school district for purposes of computing average
6daily attendance pursuant to Section 42238.05, effective the date
7on which individualized instruction commenced.

8

SEC. 303.  

Section 48310 of the Education Code is amended
9to read:

10

48310.  

(a) The average daily attendance for pupils admitted
11by a school district of choice pursuant to this article shall be
12credited to that school district pursuant to Section 46607. The
13attendance report for the school district of choice may include an
14identification of the school district of residence.

15(b) Notwithstanding other provisions of law, state aid for
16categorical education programs for pupils admitted under this
17article shall be apportioned to the school district of choice.

18(c) For a school district of choice that is a basic aid school
19district, the apportionment of state funds for average daily
20attendance credited pursuant to this section shall be 70 percent of
21the school district local control funding formula grant calculated
22pursuant to Section 42238.02, as implemented by Section 42238.03,
23that would have been apportioned to the school district of
24residence. For purposes of this subdivision, the term “basic aid
25school district” means a school district that does not receive from
26the state, for a fiscal year in which the subdivision is applied, an
27apportionment of state funds as described in subdivision (o) of
28Section 42238.02.

29(d) The average daily attendance of pupils admitted by a school
30district of choice pursuant to this article shall be credited to that
31school district for purposes of any determination under Article 2
32(commencing with Section 17010) of Chapter 12 of Part 10 of
33Division 1 of Title 1 that uses an average daily attendance
34calculation.

35

SEC. 304.  

Section 48359.5 of the Education Code is amended
36to read:

37

48359.5.  

For a school district of enrollment that is a basic aid
38school district, the apportionment of state funds for average daily
39attendance credited pursuant to this article shall be 70 percent of
40the school district local control funding formula grant that would
P163  1have been apportioned to the school district of residence pursuant
2to Section 42238.02, as implemented by Section 42238.03.
3Apportionment of these funds shall begin in the second consecutive
4year of enrollment, and continue annually until the pupil graduates
5from, or is no longer enrolled in, the school district of enrollment.
6For purposes of this section, “basic aid school district” means a
7school district that does not receive an apportionment of state funds
8as described in subdivision (o) of Section 42238.02 for a fiscal
9year in which this subdivision may apply.

10

SEC. 305.  

Article 2 (commencing with Section 48640) of
11Chapter 4 of Part 27 of Division 4 of Title 2 of the Education Code
12 is repealed.

13

SEC. 306.  

Section 48660 of the Education Code is amended
14to read:

15

48660.  

The governing board of a school district may establish
16one or more community day schools for pupils who meet one or
17more of the conditions described in subdivision (b) of Section
1848662. A community day school may serve pupils in any of
19kindergarten and grades 1 to 6, inclusive, or any of grades 7 to 12,
20inclusive, or the same or lesser included range of grades as may
21be found in an individual middle or junior high school operated
22by the school district. If a school district is organized as a school
23district that serves kindergarten and grades 1 to 8, inclusive, but
24no higher grades, the governing board of the school district may
25establish a community day school for any kindergarten and grades
261 to 8, inclusive, upon a two-thirds vote of the governing board of
27the school district. It is the intent of the Legislature, that to the
28extent possible, the governing board of a school district operating
29a community day school for any of kindergarten and grades 1 to
308, inclusive, separate younger pupils from older pupils within that
31community day school.

32

SEC. 307.  

Section 48660.2 of the Education Code is repealed.

33

SEC. 308.  

Section 48663 of the Education Code is repealed.

34

SEC. 309.  

Section 48664 of the Education Code is repealed.

35

SEC. 310.  

Section 48667 of the Education Code is amended
36to read:

37

48667.  

For purposes of this article, each county office of
38education shall be deemed to be a school district.

39

SEC. 311.  

Section 49430.5 of the Education Code is amended
40to read:

P164  1

49430.5.  

(a) The reimbursement a school receives for free and
2reduced price meals sold or served to pupils in elementary, middle,
3or high schools included within a school district, charter school,
4or county office of education shall be specified in the annual
5Budget Act.

6(b) To qualify for the reimbursement for free and reduced price
7meals provided to pupils in elementary, middle, or high schools,
8a school shall follow the Enhanced Food Based Meal Pattern,
9Nutrient Standard Meal Planning, or Traditional Meal Pattern
10developed by the United States Department of Agriculture or the
11SHAPE Menu Patterns developed by the state.

12(c) The reimbursement rates specified in the annual Budget Act
13shall be adjusted annually for increases in cost of living in the
14same manner set forth in paragraph (2) of subdivision (d) of Section
1542238.02.

16

SEC. 312.  

Section 49452.8 of the Education Code is repealed.

17

SEC. 313.  

Section 49536 of the Education Code is amended
18to read:

19

49536.  

(a) The department shall, before July 1 of each year,
20prescribe an adjustment in the state meal contribution rates
21established pursuant to this section for the forthcoming fiscal year.
22The adjustments shall reflect the changes in the cost of operating
23a school breakfast and lunch program and shall be made
24commencing on July 1 of each year. The adjustment shall be the
25average of the separate indices of the “Food Away From Home
26Index” for Los Angeles and San Francisco as prepared by the
27United States Bureau of Labor Statistics.

28(b) In giving effect to the cost-of-living provisions of this
29section, the department shall use the same month for computation
30of the percentage change in the cost of living after July 1, 1975.
31The same month shall be used annually thereafter. The product of
32a percentage increase or decrease in the average index and the per
33meal reimbursement disbursement rate shall be adjusted by the
34amount of a cost-of-living change currently in effect pursuant to
35the provisions of this section.

36(c) Commencing with the 1990-91 fiscal year, the cost-of-living
37adjustment shall be equal to the percentage change determined
38pursuant to paragraph (2) of subdivision (d) of Section 42238.02.

39

SEC. 314.  

Section 51056 of the Education Code is repealed.

P165  1

SEC. 315.  

Article 15 (commencing with Section 51870) of
2Chapter 5 of Part 28 of Division 4 of Title 2 of the Education Code
3 is repealed.

4

SEC. 316.  

Section 52051 of the Education Code is repealed.

5

SEC. 317.  

Section 52052.2 of the Education Code is repealed.

6

SEC. 318.  

Section 52052.5 of the Education Code is amended
7to read:

8

52052.5.  

(a) The Superintendent shall establish a broadly
9representative and diverse advisory committee to advise the
10Superintendent and the state board on all appropriate matters
11relative to the creation of the Academic Performance Index.
12Members of the advisory committee shall serve without
13compensation for terms not to exceed two years. The department
14shall provide staff to the advisory panel.

15(b) By July 1, 2005, the advisory committee established pursuant
16to this section shall make recommendations to the Superintendent
17on the appropriateness and feasibility of a methodology for
18generating a measurement of academic performance by using
19unique pupil identifiers for pupils in kindergarten and any of grades
201 to 12, inclusive, and annual academic achievement growth to
21 provide a more accurate measure of a school’s growth over time.
22If appropriate and feasible, the Superintendent, with the approval
23of the state board, shall thereafter implement this measurement of
24academic performance.

25(c) By January 1, 2011, the Superintendent and the state board,
26in consultation with the advisory committee established pursuant
27to subdivision (a), shall make recommendations to the Legislature
28and the Governor on each of the following:

29(1) Approaches to increasing the emphasis of science and
30mathematics in the calculation of the Academic Performance Index
31or any successor measure.

32(2) Methods to incorporate into the Academic Performance
33Index, or into other aspects of the state’s accountability system, a
34measure of the degree to which pupils graduate from high school
35with the skills and knowledge necessary to attain entry-level
36employment in business or industry, as set forth in subdivision (b)
37of Section 51228.

38(3) Methods to incorporate into the Academic Performance
39Index, or into other aspects of the state’s accountability system, a
40measure of the degree to which pupils graduate from high school
P166  1with the skills and knowledge necessary to succeed in
2postsecondary education.

3(d) By July 1, 2013, the Superintendent and the state board, in
4consultation with the advisory committee established pursuant to
5subdivision (a), shall make recommendations to the Legislature
6and the Governor on the establishment of a methodology for
7generating a measurement of group and individual academic
8performance growth by utilizing individual pupil results from a
9longitudinally valid achievement assessment system. These
10recommendations should also address any interactions between
11the Academic Performance Index, or any successor measure, and
12individual test scores from the state’s tests, as well as implications
13for the reauthorization of the state’s assessment system. This
14paragraph shall not be construed to supersede the provisions of
15Chapter 273 of the Statutes of 2009.

16

SEC. 319.  

Article 3 (commencing with Section 52053) of
17Chapter 6.1 of Part 28 of Division 4 of Title 2 of the Education
18Code
is repealed.

19

SEC. 320.  

Article 3.5 (commencing with Section 52055.600)
20of Chapter 6.1 of Part 28 of Division 4 of Title 2 of the Education
21Code
is repealed.

22

SEC. 321.  

Section 52055.750 of the Education Code is
23amended to read:

24

52055.750.  

(a) A school district or chartering authority that
25receives funding pursuant to this article shall agree to do all of the
26following for each funded school within its jurisdiction:

27(1) Comply with the program requirements of this article and
28require that each funded schoolsite complete and meet the criteria
29of an academic review process that includes the elements of the
30school assistance and intervention team review process described
31in Section 52055.51, as that section read on January 1, 2013.

32(2) Ensure that funded schools meet the requirements of this
33article.

34(3) Ensure that each school administrator in a funded school is
35confirmed to have exemplary qualifications and experience by the
36end of the first full year of funding and in each year of funding
37thereafter. Those qualifications shall include the ability to support
38the success of all pupils by facilitating the development,
39articulation, implementation, and stewardship of a vision of
40learning that is shared and supported by the school community as
P167  1well as the ability to advocate, nurture, and sustain a school culture
2and instructional program that is conducive to pupils learning and
3staff professional growth. The school district or chartering authority
4shall provide for high quality professional development for each
5administrator through leadership training, coaching, and mentoring
6and shall take all reasonable steps to maintain stable school
7leadership in schools that receive funding pursuant to this article.
8To the extent appropriate the professional development shall be
9similar in quality and rigor to that provided pursuant to the
10 Administrator Training Program under Article 4.6 (commencing
11with Section 44510) of Chapter 3 of Part 25, as that article read
12on January 1, 2012.

13(4) Provide all fiscal and evaluation data requested by the
14Superintendent for initial approval, annual reviews, and reports.

15(5) Comply with subdivisions (a) to (c), inclusive, of Section
1652055.630, as that section read on January 1, 2013, and in the same
17manner consult with the exclusive representative of classified
18employees.

19(6) Assist eligible schools in developing and carrying out a plan
20to implement the provisions of this article to ensure the school
21district’s plan supports the work of the school.

22(7) Agree to focus on conditions that improve instruction and
23achievement in funded schools.

24(8) Express its full understanding that not meeting annual and
25final program and academic achievement requirements under this
26article will result in the termination of funding.

27(9) Ensure that the funds received on behalf of funded schools
28are expended on that school, except that during the first partial
29year of funding school districts may use funding under this article
30for facilities necessary to meet the class size reduction requirements
31of this article, if all funds are spent on funded schools within the
32school district.

33(10) Use the uniform process recommended by the
34Superintendent pursuant to subdivision (d) of Section 52055.730
35to ensure that the average teaching experience of the classroom
36teachers in funded schools is equal to or greater than the average
37teaching experience of classroom teachers in the school district as
38a whole.

39(b) If not expressly prohibited by federal law, a school district
40or chartering authority on behalf of a funded school is exempt from
P168  1requirements imposed on the use of state categorical or federal
2funds in the consolidated application, except those funds related
3to economic impact aid, if those funds are identified in the revised
4plan of Section 52055.755. Funded schools are exempt from all
5program requirements associated with funds in the consolidated
6application, except requirements regarding parent advisory
7committees, schoolsite councils, and special education. Funds
8provided under the economic aid program shall not be used to
9implement this program.

10(c) Each funded school shall ensure that each teacher in a
11subject-specific classroom or teaching covered subjects participates
12in professional development that is made available by the school
13district or the schoolsite councils, is developed in a collaborative
14process with interested parties, and is articulated in an improvement
15plan. For purposes of this article, professional development
16activities may include collaboration time for teachers to develop
17new instructional lessons or analyze pupil data, mentoring projects
18for new teachers, or extra support for teachers to improve practice.
19At a minimum, appropriate professional development for the site
20shall be part of a coherent plan that combines school activities
21within the school, including, but not limited to, lesson study or
22coteaching, and external learning opportunities that meet all of the
23following criteria:

24(1) Are related to the academic subjects taught.

25(2) Provide time to meet and work with other teachers.

26(3) Support instruction and pupil learning to improve instruction
27in a manner that is consistent with academic content standards.

28(4) Include an average of 40 hours per teacher per year.

29(d) At a minimum, professional development in a self-contained
30classroom shall include content regarding mathematics, science,
31English language arts, reading, and English language development.
32Professional development for teachers teaching subject specific
33courses shall include the specific subject and English language
34development. To the extent appropriate the professional
35development shall be similar in quality and rigor to the training
36provided under the Mathematics and Reading Professional
37Development Program in Article 3 (commencing with Section
3899230) of Chapter 5 of Part 65, as that article read on January 1,
392012.

P169  1(e) On or before the end of the first three years of full funding,
2funded schools shall do the following:

3(1) Increase actual pupil attendance, as compared with monthly
4enrollment in the school.

5(2) For secondary schools, increase graduation rates as described
6in Section 52055.640.

7

SEC. 322.  

Article 4 (commencing with Section 52056) of
8Chapter 6.1 of Part 28 of Division 4 of Title 2 of the Education
9Code
is repealed.

10

SEC. 323.  

Article 3.8 (commencing with Section 52060) is
11added to Chapter 6.1 of Part 28 of Division 4 of Title 2 of the 12Education Code, to read:

13 

14Article 3.8.  Local Control and Accountability Plans
15

 

16

52060.  

(a) The governing board of each school district shall
17adopt a local control and accountability plan using a template
18adopted by the state board.

19(b) A local control and accountability plan adopted by a
20governing board of a school district shall be effective for a period
21of at least one year but no longer than five years. If a governing
22board of a school district adopts a plan that would be effective for
23a period longer than one year, the governing board must approve
24an update to the existing plan at least annually.

25(c) On or before July 1 of each fiscal year, a governing board
26of a school district shall take action on a local control and
27accountability plan for the subsequent fiscal year, either by
28adopting a new local control and accountability plan or by
29approving an update to a plan the governing board of the school
30district has previously adopted.

31(d) A governing board of a school district shall update the local
32control and accountability plan if the governing board of the school
33district determines that changes in the composition of the base
34Academic Performance Index require the school district to take
35specific actions and use strategies that are not already included in
36the plan to meet the Academic Performance Index growth target
37for each school in the school district. If the governing board of the
38school district determines that an update is necessary, the governing
39board of the school district shall approve the update by November
P170  11 of the year in which the new base Academic Performance Index
2is released.

3(e) A governing board of a school district shall demonstrate that
4a local control and accountability plan approved by the governing
5board of the school district was developed in consultation with
6teachers, principals, administrators, other school personnel, parents,
7and pupils.

8(f) A governing board of a school district shall ensure that a
9local control and accountability plan is consistent with all school
10plans submitted pursuant to Section 64001 by a school district for
11schools within the school district.

12(g) Before adopting a local control and accountability plan or
13approving an update to an existing plan, a governing board of a
14school district shall hold at least one public hearing to solicit
15recommendations and opinions of members of the public regarding
16specific actions and strategies that should be included in the plan.
17The agenda for the public hearing shall be posted at least 72 hours
18before the public hearing and shall include the location where the
19local control and accountability plan will be available for public
20inspection. This public hearing shall be held at the same meeting
21as the public hearing required by paragraph (1) of subdivision (a)
22of Section 42127.

23(h) A governing board of a school district shall notify members
24of the public, using the most efficient method possible, of the
25opportunity to submit written recommendations and opinions
26regarding specific actions and strategies that should be included
27in the local control and accountability plan. This subdivision shall
28not be interpreted to require a school district to produce printed
29notices or to send notices by mail.

30(i) A governing board of a school district shall adopt a local
31control and accountability plan in a public meeting. This meeting
32shall be held after, but not on the same day as, the public hearing
33held pursuant to subdivision (g). This meeting shall be the same
34meeting during which the governing board of the school district
35considers a budget pursuant to paragraph (2) of subdivision (a) of
36Section 42127.

37(j) A governing board of a school district may adopt a revised
38local control and accountability plan if the governing board of the
39school district is required to adopt a revised budget. A revised
P171  1local control and accountability plan shall be adopted at the same
2meeting that a revised budget is adopted.

3

52061.  

(a) Not later than five days after adoption of a local
4control and accountability plan or approval of an update to an
5existing plan pursuant to Section 52060, the governing board of a
6school district shall file the plan with the county superintendent
7of schools. The plan shall be filed on the same day that the
8governing board of the school district files the budget pursuant to
9paragraph (2) of subdivision (a) of Section 42127.

10(b) The county superintendent of schools shall do all of the
11following:

12(1) Examine if the plan adheres to the template adopted by the
13state board pursuant to Section 52066 and includes all of the
14components identified in subdivision (a) of Section 52064.

15(2) Determine if the budget for the subsequent fiscal year
16adopted by the governing board of the school district includes
17expenditures sufficient to implement the specific actions and
18strategies included in the local control and accountability plan
19adopted by the governing board of the school district, based on
20the projections of the costs included in the plan.

21(3) In making the determinations pursuant to paragraphs (1) and
22(2), consider input from teachers, principals, administrators, other
23school personnel, parents, and pupils from the school district.

24

52062.  

(a) Each county superintendent of schools shall
25develop, and each county board of education shall adopt, a local
26control and accountability plan using a template adopted by the
27state board.

28(b) A local control and accountability plan adopted by a county
29board of education shall be effective for a period of at least one
30year but no longer than five years. If a county board of education
31adopts a plan that would be effective for a period longer than one
32year, the county board of education must approve an update to the
33plan at least annually.

34(c) On or before July 1 of each fiscal year, a county board of
35education shall take action on a local control and accountability
36plan for the subsequent fiscal year, either by adopting a new local
37control and accountability plan or by approving an update to a plan
38the county board of education has previously adopted.

39(d) A county superintendent of schools shall update and present
40to the county board of education for approval the local control and
P172  1accountability plan if the county board of education determines
2that changes in the composition of the base Academic Performance
3Index require the county superintendent of schools to take specific
4actions and use strategies that are not already included in the plan
5to meet the Academic Performance Index growth target for each
6school operated by the county superintendent of schools. If the
7county board of education determines that an update is necessary,
8the county board of education shall approve the update by
9November 1 of the year in which the base Academic Performance
10Index is released.

11(e) A county superintendent of schools shall demonstrate that
12a local control and accountability plan was developed in
13consultation with teachers, principals, administrators, other school
14personnel, parents, and pupils. A county superintendent of schools
15also shall demonstrate that the superintendents of all school districts
16in the county were consulted in the development of the plan.

17(f) A local control and accountability plan shall be consistent
18with all school plans submitted pursuant to Section 64001 by the
19county superintendent of schools for schools operated by the county
20superintendent of schools.

21(g) Before adopting a local control and accountability plan or
22approving an update to an existing plan, a county board of
23education shall hold at least one public hearing to solicit
24recommendations and opinions of members of the public regarding
25specific actions and strategies that should be included in the plan.
26The agenda for that hearing shall be posted at least 72 hours before
27the public hearing and shall include the location where the local
28control and accountability plan will be available for public
29inspection. The public hearing shall be held at the same meeting
30as the public hearing required by Section 1620.

31(h) A county board of education shall notify members of the
32public, using the most efficient method possible, of the opportunity
33to submit written recommendations and opinions regarding specific
34actions and strategies that should be included in the local control
35and accountability plan. This subdivision shall not be interpreted
36to require a county board of education to produce printed notices
37or to send notices by mail.

38(i) A county board of education shall adopt a local control and
39accountability plan in a public meeting. This meeting shall be held
40 after, but not on the same day as, the public hearing held pursuant
P173  1to subdivision (g). The meeting shall be the same meeting during
2which a county board of education considers a budget pursuant to
3Section 1620.

4(j) A county board of education may adopt a revised local
5control and accountability plan if the county board of education
6is required to adopt a revised budget. A revised local control and
7accountability plan shall be adopted at the same meeting that a
8revised budget is adopted.

9

52063.  

(a) No later than five days after adoption of a local
10control and accountability plan or approval of an update to an
11existing plan pursuant to Section 52062 by a county board of
12education, the county superintendent of schools shall file the plan
13with the Superintendent, the county board of supervisors, and the
14county auditor. The plan shall be filed on the same day that the
15county superintendent of schools files the budget pursuant to
16subdivision (a) of Section 1622.

17(b) The Superintendent shall do all of the following:

18(1) Examine if the plan adheres to the template adopted by the
19state board pursuant to Section 52066 and includes all of the
20components identified in subdivision (a) of Section 52064.

21(2) Determine if the budget for the subsequent fiscal year
22adopted by the county board of education includes expenditures
23sufficient to implement the specific actions and strategies included
24in the local control and accountability plan adopted by the county
25board of education, based on the projections of the costs included
26in the plan.

27(3) In making the determinations pursuant to paragraphs (1) and
28(2), consider input from teachers, principals, administrators, other
29school personnel, parents, and pupils in the county.

30

52064.  

(a) A local control and accountability plan adopted by
31a governing board of a school district or a county board of
32education shall identify goals and describe the specific actions the
33school district or county superintendent of schools will take and
34strategies that will be used to achieve all of the following:

35(1) Implement, for all pupils, the content standards adopted by
36the state board pursuant to Sections 60605.8, 60605.10, and
3760605.11.

38(2) Increase the Academic Performance Index for each school
39and for each numerically significant pupil subgroup pursuant to
40Section 52052 and reduce gaps in the Academic Performance Index
P174  1and other measures of pupil achievement between numerically
2significant pupil subgroups.

3(3) Improve pupil achievement of the content standards adopted
4by the state board pursuant to Sections 60605, 60605.2, 60605.3,
560605.8, and 60605.85, at all grade levels, as evidenced by the
6results of statewide assessments pursuant to Article 4 (commencing
7with Section 60640) of Chapter 5 of Part 33, other statewide
8assessments, and appropriate local assessments.

9(4) Increase high school graduation rates, if a school district or
10a county superintendent of schools enrolls high school pupils,
11increase attendance rates, and reduce dropout rates.

12(5) Increase the percentage of pupils who have successfully
13completed each of the following:

14(A) Courses that satisfy the requirements for entrance to the
15University of California and the California State University.

16(B) Advanced placement courses.

17(C) Career technical education programs.

18(6) Identify and address needs of pupils, and schools
19predominantly serving pupils, who meet any of the following
20definitions:

21(A) Pupils who have been classified as an English learner
22pursuant to Section 52164.

23(B) Pupils who qualify for the free and reduced-price meal
24program pursuant to Section 49552.

25(C) Foster children as defined in Sections 300 and 601 of the
26Welfare and Institutions Code.

27(D) Pupils enrolled in a juvenile court school operated by a
28county superintendent of schools pursuant to subdivision (a) of
29Section 48645.2, if applicable.

30(7) Remedy deficiencies in any school in the school district or
31any school operated by the county board of education and improve
32school conditions in any of the areas included in paragraphs (5),
33(6), and (8) of subdivision (b) of Section 33126. This includes
34ensuring access for each pupil to the following:

35(A) Sufficient textbooks and instructional materials.

36(B) Safe, clean, and adequate school facilities.

37(C) Qualified teachers.

38(8) Provide meaningful opportunities for parent involvement,
39including, at a minimum, supporting effective schoolsite councils
40or other structures at each school and advisory panels to the
P175  1governing board of the school district or the county board of
2education or, if parents so choose, creating other processes or
3structures, such as creating the role of an ombudsman for parents,
4to address complaints and other issues raised by parents.

5(b) A local control and accountability plan developed by a
6county superintendent of schools and approved by a county board
7of education shall also include, in addition to the elements included
8in subdivision (a), goals related to addressing countywide needs,
9and describe specific actions and strategies to do all of the
10following:

11(1) Conduct effective oversight of school districts pursuant to
12Article 2 (commencing with Section 1240) of Chapter 2 of Part 2
13of Division 1 of Title 1 and Chapter 6 (commencing with Section
1442100) of Part 24 of Division 3 of Title 2.

15(2) Provide support to school districts in the county, including
16support related to school district operations, educational
17technology, and professional development, and guidance to school
18districts related to curriculum and instructional practices.

19(3) Coordinate instruction for expelled pupils pursuant to Section
2048926.

21(c) A local control and accountability plan shall include an
22analysis of both the following:

23(1) Pupil achievement of those pupils enrolled in schools in a
24school district or schools operated by a county superintendent of
25schools at the time the plan is adopted by the governing board of
26the school district or the county board of education.

27(2) If a governing board of a school district or a county board
28of education previously has adopted a local control and
29accountability plan, progress made in implementing the goals
30identified in the plan in effect immediately before the adoption of
31a new plan by the governing board of the school district or the
32county board of education.

33(d) For purposes of conducting the analysis required by
34subdivision (c), a governing board of a school district or a county
35superintendent of schools may consider qualitative information,
36including reviews conducted by panels of experts during visits to
37schools in the school district or schools operated by the county
38office of education.

39(e) Data reported in a local control and accountability plan shall
40be consistent with information reported on school accountability
P176  1report cards for schools in a school district or schools operated by
2a county superintendent of schools.

3(f) A local control and accountability plan shall include
4projections of the costs of implementing the specific actions and
5strategies included in the plan. Expenditures that reflect these cost
6projections shall be included in the budget adopted by the
7governing board of the school district pursuant to Section 42127.

8(g) A local control and accountability plan adopted by a
9governing board of a school district shall document all of the
10following:

11(1) For those fiscal years in which it is anticipated that the school
12district will receive less funding than is calculated under the local
13control funding formula pursuant to Section 42238.02, as
14implemented by Section 42238.03, a projection of the total funding
15required for the specific actions the school district will take and
16strategies that will be used to implement paragraph (6) of
17subdivision (a), divided by the average daily attendance of the
18pupils for whom any of the definitions included in paragraph (6)
19of subdivision (a) apply. This amount of funding shall not be less
20than the total expenditures from the sources included in paragraphs
21(1) to (3), inclusive, of subdivision (i) of Section 42238.02 during
22the 2012-13 fiscal year for services for pupils for whom any of
23the definitions included in paragraph (6) of subdivision (a) applied
24during the 2012-13 fiscal year, divided by the average daily
25attendance of these students during the 2012-13 fiscal year.

26(2) For those fiscal years in which it is anticipated that the school
27district will receive funding equal to or greater than the amount
28calculated under the local control funding formula pursuant to
29Section 42238.02, as implemented by Section 42238.03, a
30projection of the total funding required for the specific actions the
31school district will take and strategies that will be used to
32implement paragraph (6) of subdivision (a), divided by the average
33daily attendance of the pupils for which any of the definitions
34included in paragraph (6) of subdivision (a). This funding shall
35not be less than the supplemental grants and concentration grants
36the governing board of the school district projects receiving
37pursuant to subdivisions (e) and (f) of Section 42238.02, divided
38by the average daily attendance of the pupils for which any of the
39definitions included in paragraph (6) of subdivision (a) apply.

P177  1(h) A local control and accountability plan adopted by a county
2board of education shall document all of the following:

3(1) For those fiscal years in which it is anticipated that the
4county office of education will receive less funding than is
5calculated under the county local control funding formula pursuant
6to Section 2574, a projection of the total funding required for the
7specific actions the county superintendent of schools will take and
8strategies that will be used to implement paragraph (6) of
9subdivision (a), divided by the average daily attendance of the
10pupils for whom any of the definitions included in paragraph (6)
11of subdivision (a) apply. This amount of funding shall not be less
12than the total expenditures from the sources included in paragraphs
13(1) and (2) of subdivision (g) of Section 2574 during the 2012-13
14fiscal year for services for pupils for whom any of the definitions
15included in paragraph (6) of subdivision (a) applied during the
162012-13 fiscal year, divided by the average daily attendance of
17these pupils during the 2012-13 fiscal year.

18(2) For those fiscal years in which it is anticipated that the
19county office of education will receive funding equal to or greater
20than the amount calculated under the county local control funding
21formula pursuant to Section 2574, a projection of the total funding
22required for the specific actions the county superintendent of
23schools will take and strategies that will be used to implement
24paragraph (6) of subdivision (a), divided by the average daily
25attendance of the pupils for which any of the definitions included
26in paragraph (6) of subdivision (a) apply. This funding shall not
27be less than the supplemental grants and concentration grants the
28county board of education projects receiving pursuant to
29subdivisions (b) and (c) of Section 2574, divided by the average
30daily attendance of the pupils for which any of the definitions
31included in paragraph (6) of subdivision (a) apply.

32(i) A local control and accountability plan shall account for the
33funds provided to charter schools that elect to receive funding
34through the school district or the county office of education
35pursuant to Section 47651.

36

52065.  

(a) The governing body of a charter school that elects
37to receive its funding directly, pursuant to Section 47651, shall
38adopt a local control and accountability plan using a template
39adopted by the state board.

P178  1(b) Notwithstanding Section 52064, a local control and
2accountability plan adopted by the governing body of a charter
3school shall identify specific steps the charter school will take and
4strategies that will be used to accomplish the goals identified in
5the charter petition granted pursuant to Sections 47605, 47605.5,
647605.6, 47605.8, and 47606.

7(c) A local control and accountability plan adopted by a
8governing body of a charter school shall be effective for a period
9of at least one year but no longer than five years. If the governing
10body of the charter school adopts a plan that would be effective
11for a period longer than one year, the governing body of the charter
12school must approve an update to the existing plan at least annually.

13(d) On or before July 1 of each fiscal year, a governing body of
14a charter school shall take action on a local control and
15accountability plan for the subsequent fiscal year, either by
16adopting a new local control and accountability plan or by
17approving an update to a plan the charter school has previously
18adopted. The plan shall be submitted to the charter school’s
19chartering authority and the county superintendent of schools, or
20only to the county superintendent of schools if the county board
21of education is the chartering authority, on the same day that the
22charter school submits its preliminary budget pursuant to paragraph
23(1) of subdivision (a) of Section 47604.33.

24

52066.  

(a) The state board shall adopt a template for use by
25school districts and a separate template for use by county
26superintendents of schools that includes the elements identified in
27Section 52064.

28(b) The state board shall also adopt a template for use by charter
29schools to satisfy the requirements of Section 52065.

30(c) The templates developed by the state board shall allow a
31school district, county superintendent of schools, or charter school
32to complete a single local control and accountability plan to meet
33the requirements of this article and the requirements of the federal
34Elementary and Secondary Act related to local educational agency
35plans pursuant to Section 1112 of Subpart 1 of Part A of Title I of
36Public Law 107-110. The state board shall also take steps to
37minimize duplication of effort at the local level to the greatest
38extent possible.

39(d) If possible, the template identified in subdivision (a) for use
40by county superintendents of schools shall allow a county
P179  1superintendent of schools to develop a single local control and
2accountability plan that would also satisfy the requirements of
3Section 48926.

4(e) The state board shall approve the templates identified in
5subdivisions (a) and (b) by January 30, 2014. Revisions to the
6templates shall be approved by the state board by January 1 before
7the fiscal year during which a template is to be used by a school
8district, county superintendent of schools, or charter school.

9(f) The adoption of a template by the state board shall not create
10a requirement for a governing board of a school district, a county
11board of education, or a governing body of a charter school to
12submit a local control and accountability plan to the state board,
13unless otherwise required by federal law. The Superintendent shall
14not require a local control and accountability plan to be submitted
15by a governing board of a school district or the governing body of
16a charter school. The state board may adopt a template that would
17authorize a school district or a charter school to submit to the state
18board only the sections of the local control and accountability plan
19required by federal law.

20(g) The state board may adopt emergency regulations for
21purposes of implementing this section.

22

SEC. 324.  

Chapter 6.8 (commencing with Section 52080) of
23Part 28 of Division 4 of Title 2 of the Education Code is repealed.

24

SEC. 325.  

Chapter 6.9 (commencing with Section 52100) of
25Part 28 of Division 4 of Title 2 of the Education Code is repealed.

26

SEC. 326.  

Chapter 6.10 (commencing with Section 52120) of
27Part 28 of Division 4 of Title 2 of the Education Code is repealed.

28

SEC. 327.  

Chapter 7 (commencing with Section 52130) of Part
2928 of Division 4 of Title 2 of the Education Code is repealed.

30

SEC. 328.  

Chapter 8 (commencing with Section 52200) of Part
3128 of Division 4 of Title 2 of the Education Code is repealed.

32

SEC. 329.  

Chapter 8.3 (commencing with Section 52240) of
33Part 28 of Division 4 of Title 2 of the Education Code is repealed.

34

SEC. 330.  

Chapter 8.5 (commencing with Section 52250) of
35Part 28 of Division 4 of Title 2 of the Education Code is repealed.

36

SEC. 331.  

Chapter 8.6 (commencing with Section 52270) of
37Part 28 of Division 4 of Title 2 of the Education Code is repealed.

38

SEC. 332.  

Section 52301 of the Education Code is amended
39to read:

P180  1

52301.  

(a) The county superintendent of schools of each county
2may establish and maintain, or with one or more counties may
3establish and maintain, a regional occupational center, or regional
4occupational program, in the county to provide education and
5training in career technical courses. The governing boards of any
6school districts maintaining high schools in the county may, with
7the consent of the county superintendent of schools, cooperate in
8the establishment and maintenance of a regional occupational
9center or program, except that if a school district also maintains
10500 or more schools, the governing board of the school district
11may establish and maintain one or more regional occupational
12centers or programs, without those restrictions. A regional
13occupational center or program may be established by two or more
14school districts maintaining high schools through the use of the
15staff and facilities of a community college or community colleges
16serving the same geographic area as the school districts maintaining
17the high schools, with the consent of the county superintendent of
18schools.

19(b) The establishment and maintenance of a regional
20occupational center or program, by two or more school districts
21may be undertaken pursuant to Article 1 (commencing with Section
226500) of Chapter 5 of Division 7 of Title 1 of the Government
23Code. In a regional occupational center or program, the functions
24of the county auditor undertaken pursuant to Article 1
25(commencing with Section 6500) of Chapter 5 of Division 7 of
26Title 1 of the Government Code shall be performed by the county
27superintendent of schools in a county in which the board of
28supervisors has transferred educational functions from the county
29auditor to the county superintendent of schools pursuant to Sections
3042649, as added by Chapter 533 of the Statutes of 1977, and
3185265.5. If a school district or school districts establish and
32maintain a regional occupational center or program, pursuant to
33this chapter, the county superintendent of schools may establish
34and maintain a separate regional occupational center or centers or
35program or programs.

36The governing board of the school district shall retain authority
37to decide whether or not to operate the regional occupational center
38or program.

39

SEC. 333.  

Section 52301.3 of the Education Code is repealed.

P181  1

SEC. 334.  

Section 52302 of the Education Code is amended
2to read:

3

52302.  

(a) The governing board of each regional occupational
4center or program shall ensure that at least 90 percent of all
5state-funded courses offered by the center or program, in
6occupational areas in which both the program or center and the
7community college offer instruction, are part of occupational course
8sequences that target comprehensive skills. Each occupational
9sequence shall do all of the following:

10(1) Result in an occupational skill certificate developed in
11cooperation with the appropriate employer advisory board created
12under Section 52302.2.

13(2) Provide prerequisite courses that are needed to enter
14 apprenticeship or postsecondary vocational certificate or degree
15programs. Where possible, sequenced courses shall be linked to
16certificate and degree programs in the region.

17(3) Focus on occupations requiring comprehensive skills leading
18to high entry-level wages or the possibility of significant wage
19increases after a few years on the job, or both.

20(4) Offer as many courses as possible that have been approved
21by the University of California as courses meeting the “A-G”
22admissions requirements.

23(b) (1) The governing board of each regional occupational
24center or program shall develop a plan for establishing sequences
25of courses, and certify to the department, that those sequences have
26been developed, as described in subdivision (a). The board shall
27consult with the superintendents of the school districts served by
28the center or program and presidents of community colleges in the
29area during the development of the plan.

30(2) The plan shall be presented at a public hearing by the
31governing board of each school district served by the regional
32occupational center or program and by the county board of
33education.

34(3) Community college boards with identified articulated
35programs shall also review the plans in a public session.

36(4) In developing the plan, each regional occupational program
37or center shall consult with school districts and community college
38districts located within the region served by the program or center
39and with the relevant occupational advisers and local workforce
40investment board to ensure the plan meets the vocational education
P182  1needs of high school pupils in the region by providing sequences
2of courses that begin with middle or high school introductory
3courses, including, but not limited to, occupational skill courses
4provided by high schools or regional occupational programs or
5centers.

6(5) The plan shall maximize the use of local, state, and federal
7resources in helping high school pupils enter comprehensive skill
8occupations or apprenticeship programs, or continue education in
9college, or all of these, after graduating from high school.

10(6) The plan shall include strategies for filling gaps in courses
11or other services needed to make the sequences effective in meeting
12the needs of pupils in developing skills and attending community
13college upon graduation from high school.

14(7) Commencing September 1, 2008, each center or program
15shall submit a copy of the plan to the appropriate community
16college or colleges in the region and the Superintendent. Every
17four years after this date, on or before July 1, each center and
18program shall submit an update to the plan to the local community
19college or colleges.

20(c) As a condition of receiving federal funds provided under
21the Carl D. Perkins Vocational and Applied Technology Education
22Act of 1998 (20 U.S.C. Sec. 2301 et seq.), or a successor of that
23act, and to the extent permitted by federal law, school districts,
24regional occupational centers or programs, and community college
25districts shall do all of the following:

26(1) Develop course sequences that meet the requirements of this
27section, as follows:

28(A) School districts, regional occupational centers or programs,
29and community college districts shall have adopted an approved
30plan as required under this section.

31(B) School districts, regional occupational centers or programs,
32and community college districts shall have established course
33sequences as required under this section that include at least
34one-third of the courses offered by the regional occupational center
35or program in occupational areas in which both the program or
36center and the community college offer instruction.

37(C) School districts, regional occupational centers or programs,
38and community college districts shall have established course
39sequences as required under this section that include at least
40two-thirds of the courses offered by the regional occupational
P183  1center or program in occupational areas in which both the program
2or center and the community college offer instruction.

3(2) Provide pupils who are participating in vocational sequences
4with information and experiences designed to increase their
5postgraduation work and school options, including, but not limited
6to, all of the following:

7(A) Information about the admissions requirements of the
8University of California and California State University.

9(B) Information about the placement requirements of the local
10community college or colleges.

11(C) Information about higher education options related to the
12interests of the pupil.

13(D) Encourage visits to local colleges and universities offering
14programs that allow pupils to gain additional skills and degrees in
15related occupations.

16(E) Information and referrals to employers for internships,
17summer employment opportunities, and employment after
18graduation from high school.

19(3) School districts, regional occupational centers or programs,
20and community college districts that do not develop course
21sequences on or before the dates established under this subdivision
22shall enter into a corrective action plan with the department and
23shall meet any timelines established by the Superintendent.

24(d) (1) The department, with the assistance of the Office of the
25Chancellor of the California Community Colleges, shall meet with
26each program or center and the community college or colleges in
27the region to validate that course sequences meeting the
28requirements of this section have been developed. These meetings
29shall be conducted using the existing resources of the department
30and shall be consistent with the standards developed pursuant to
31Section 51226.

32(2) The department and the office of the chancellor shall provide
33technical assistance to programs or centers and community colleges
34that have developed articulated sequences for less than half of the
35courses offered by the program or center.

36

SEC. 335.  

Section 52302.2 of the Education Code is amended
37to read:

38

52302.2.  

(a) The governing board of each regional occupational
39center or program shall establish and maintain an employer
P184  1advisory board or boards pursuant to guidelines developed by the
2department. The advisory board shall do all of the following:

3(1) Assist in the development of skill certificates that identify
4the skills and knowledge that pupils completing an occupational
5course sequence are expected to acquire upon completing the
6sequence. The advisory board also shall recommend the measures
7and criteria, and methods to evaluate whether pupils actually
8acquired the identified skills and knowledge.

9(2) Review at least once a year whether pupils who are assessed
10as having met the requirements for a skill certificate possess the
11skills needed for success in employment in that occupation.

12(3) Review the specific occupational sequences offered by the
13regional occupational center or program to train pupils for jobs
14that are in demand and offer high beginning salaries or the potential
15for significant wage increase after several years on the job.

16(4) Assist the regional occupational center or program in
17developing internships, paid summer employment, and
18postgraduation employment opportunities for pupils participating
19in the course sequences.

20(5) Assist the regional occupational center or program in
21identifying and creating college scholarships for pupils
22participating in the course sequences.

23(b) Employer advisory boards shall be composed of
24representatives of trade organizations and businesses or government
25agencies that hire a significant number of employees each year
26and require the skills and knowledge that are taught in the course
27sequence or sequences in that occupational area, as well as at least
28one representative from a school district career technical
29educational advisory committee. The department shall develop
30regulations guiding the establishment of these boards.

31(c) Regional occupational centers or programs operated in a
32rural county may designate a local business or industry organization
33as the advisory board and consult with the leadership of the local
34business or industry organization to determine skill needs in the
35region and emerging job market needs. For purposes of this section,
36the local business organization may be designated as the advisory
37board for the regional occupational center or program.

38

SEC. 336.  

Section 52302.8 of the Education Code is amended
39to read:

P185  1

52302.8.  

(a) The Legislature hereby finds and declares that
2vocational training resources that are provided through regional
3occupational centers and programs are an essential component of
4the state’s secondary school system and the local system of
5providing occupational skills training to high school pupils. For
6this reason, the Legislature finds and declares that these resources
7should be focused primarily on the needs of pupils enrolled in high
8school.

9(b) Pupils who are CalWORKs, Temporary Assistance Program,
10or Job Corps participants shall have priority for service.

11(c) The governing boards of a community college district and
12a regional occupational center or program may enter into
13contractual agreements under which the center or program provides
14services to adult students of the community college district affected
15by this section if the agreements conform to state regulations and
16audit requirements jointly developed by the Chancellor of the
17Office of the California Community Colleges and the State
18Department of Education, in consultation with, and subject to
19approval by, the Department of Finance.

20

SEC. 337.  

Section 52302.9 of the Education Code is amended
21to read:

22

52302.9.  

Regional occupational centers and programs may
23jointly establish, operate, and share the enrollments and costs of
24career technical education instruction with adult education
25programs offered by school districts serving the same geographic
26area. These programs shall be approved by the county
27superintendent of schools and shall be subject to guidelines
28established by the Superintendent.

29

SEC. 338.  

Section 52306 of the Education Code is amended
30to read:

31

52306.  

(a) Any business, commercial, trade, manufacturing,
32or construction activity referred to in subdivision (c) of Section
3352305 may be undertaken as part of a regional occupational center
34or program provided all the following conditions have been
35complied with:

36(1) Any facility or program operated pursuant to this section
37shall be only for the education or training of students enrolled in
38a regional occupational center or program.

P186  1(2) The facility or program shall be operated on a nonprofit
2basis, with all revenues restricted in their use to cover instructional
3and operating costs.

4(3) Notwithstanding any other provision of law, the facility or
5program initially shall obtain the approval of the appropriate trade
6associations concerned with the activity proposed and the approval
7of the county labor council in the county in which the facility or
8program is located.

9(b) An activity conducted by a regional occupational center or
10program, as described in subdivision (a), may be conducted without
11the need to apply for or obtain local business licenses or permits,
12nor shall the activity be subject to payment of local business taxes.

13Notwithstanding any other law, proceeds from business activities
14authorized in this section may, subject to the approval of the
15governing board, be deposited in a checking account or accounts
16by each regional occupational center or program and disbursed for
17the necessary expenses of those business activities. The account
18shall be established by the regional occupational center or program
19and be in the custody of the principal or other administrative
20official designated by the governing board or the county
21superintendent of schools, as the case may be. The principal or
22administrative official shall be responsible for all expenditures
23therefrom, subject to regulations prescribed for this purpose by
24the governing board or the county superintendent of schools, as
25the case may be. An exact accounting of receipts and disbursements
26shall be made to the district or county accounting office within a
27reasonable period of time. The governing board or the county
28superintendent of schools, as the case may be, shall provide for an
29audit of these accounts on a regular basis.

30

SEC. 339.  

Section 52309 of the Education Code is amended
31to read:

32

52309.  

(a) The curriculum initially provided by a regional
33occupational center or regional occupational program upon
34commencing operation shall be subject to the approval of the
35department and shall comply with all requirements and standards
36set forth in the State Plan for Career Technical Education. The
37state board shall adopt rules and regulations establishing guidelines
38and criteria for differentiating between courses appropriate for
39regional occupational centers or regional occupational programs
40and those appropriate for high schools.

P187  1(b) The Superintendent shall prepare and distribute by April 1,
21977, and thereafter maintain, a detailed handbook for use by the
3local educational agencies and regional councils. The handbook
4 shall contain course approval criteria, job market study criteria,
5implementation plans for administrative regulations, and
6procedures for securing course and program approvals.

7(c) Notwithstanding subdivision (a), the curriculum provided
8by a regional occupational center or program shall not be subject
9to the approval of the department as to any curriculum that is
10certified, by resolution of the governing body of the regional
11occupational center or program, to comply with the course approval
12criteria set forth in the handbook described in subdivision (b).

13

SEC. 340.  

Section 52314 of the Education Code is amended
14to read:

15

52314.  

(a) (1) Except as provided in subdivision (b), a pupil
16eligible to attend a high school or adult school in a school district
17subject to the jurisdiction of a county superintendent of schools
18operating a regional occupational center or regional occupational
19program, and who resides in a school district which by itself or in
20cooperation with other school districts, has not established a
21regional occupational center, or regional occupational program,
22is eligible to attend a regional occupational center or regional
23occupational program maintained by the county superintendent of
24schools. A school district which in cooperation with other school
25districts maintains a regional occupational center or regional
26occupational program, or cooperating school districts, may admit
27to the center, or program, any pupil, otherwise eligible, who resides
28in the school district or in any of the cooperating school districts.
29A school district which by itself maintains a regional occupational
30center, or regional occupational program, may admit to the center,
31or program, any pupil, otherwise eligible, who resides in the school
32district. A pupil, including a person 18 years of age or older or a
33person who is not concurrently enrolled in a regular high school
34program, shall not be admitted to a regional occupational center,
35or regional occupational program, unless the county superintendent
36of schools or governing board of the school district or school
37districts maintaining the center, or program, as the case may be,
38determines that the pupil will benefit therefrom and approves of
39his or her admission to the regional occupational center or regional
40occupational program.

P188  1(2) Adult students shall not be enrolled in regional occupational
2center or program courses during the school day on a high school
3campus unless specifically authorized by the policy of the
4governing board of the school district.

5(3) A pupil may be admitted on a full-time or part-time basis,
6as determined by the county superintendent of schools or governing
7board of the school district or districts maintaining the center, or
8program, as the case may be.

9(b) A pupil is not eligible to be admitted to a regional
10occupational center or program, and his or her attendance shall
11not be credited to a regional occupational center or program, until
12he or she has attained the age of 16 years, unless the pupil meets
13one or more of the following conditions:

14(1) The pupil is enrolled in grade 11 or a higher grade.

15(2) The pupil received a referral and all of the following
16conditions are met:

17(A) The pupil is referred to a regional occupational center or
18program as part of a comprehensive high school plan that has been
19approved by a school counselor or school administrator. The
20approval of the pupil’s parents or guardian may be sought but is
21not required.

22(B) The pupil’s comprehensive high school plan requires referral
23to a regional occupational center or program as part of a sequence
24of vocational courses that allows the pupil to learn a comprehensive
25skill occupation that culminates in earning a postsecondary
26vocational certificate or diploma or its equivalent.

27(C) The pupil is enrolled in a school that maintains any of grades
289 to 12, inclusive.

29(3) The individualized education program of a pupil adopted
30 pursuant to the requirements of Chapter 4 (commencing with
31Section 56300) of Part 30 prescribes occupational training for
32which his or her enrollment in a regional occupational center or
33program is deemed appropriate.

34(4) The pupil is enrolled in grade 10 and has a comprehensive
35high school plan that has been approved by a school counselor,
36and the admission of that pupil will not result in the denial of
37admission or displacement of pupils in grades 11 and 12 that would
38otherwise participate in the regional occupational center or
39program.

P189  1

SEC. 341.  

Section 52315 of the Education Code is amended
2to read:

3

52315.  

(a) A visually impaired, orthopedically impaired, or
4deaf person who is not enrolled in a regular high school or
5community college program may attend a regional occupational
6center or regional occupational program pursuant to the
7requirements described in Section 52314.5. Additional special
8instruction and support services shall be provided to these persons.

9(b) If the Superintendent determines that there would be a
10duplication of effort to these impaired persons if a regional
11occupational center or regional occupational program provided
12services to them, in that other programs exist that are available to
13them, the Superintendent may disapprove of the curriculum to
14provide programs to these impaired persons pursuant to Section
1552309.

16

SEC. 342.  

Section 52319 of the Education Code is amended
17to read:

18

52319.  

(a) Whenever the establishment and maintenance of a
19regional occupational center by two or more school districts has
20been undertaken pursuant to an agreement entered into in
21accordance with the provisions of Article 1 (commencing with
22Section 6500) of Chapter 5 of Division 7 of Title 1 of the
23Government Code, and the terms of the agreement so authorize,
24provision may be made for the issuance of bonds for construction
25and other capital expenditure for the regional occupational center.
26An election shall be called, held, and conducted in the manner
27provided in Chapter 3 (commencing with Section 5300) of Part 4
28of Division 1 of Title 1 on the question of the approval of the
29issuance of such bonds. If, at the election, the requisite number of
30voters cast their ballots in favor of the issuance of bonds, the bonds
31shall be issued and sold in the manner provided by law for the
32issuance and sale of bonds of a high school district. The issuance
33and sale of such bonds shall be deemed to be an act of the
34governing board of a high school district.

35(b) The total amount of bonds issued shall not exceed one-half
36of 1 percent of the taxable property of the area served by the
37regional occupational center as shown by the last equalized
38assessment roll of the county or counties which the center serves.

39(c) Bonds issued and sold pursuant to this section shall be retired
40from proceeds of the tax under the provisions of Section 52317.

P190  1

SEC. 343.  

Section 52321 of the Education Code is amended
2to read:

3

52321.  

(a) A regional occupational center or program may
4budget and accumulate an amount necessary to meet the cashflow
5needs of the regional occupational center or program known as a
6general reserve, and also may budget and accumulate amounts
7known as the designated fund balance and as the unappropriated
8fund balance. Alternatively, a regional occupational center or
9program may budget and accumulate amounts necessary to meet
10its long-term program needs in a separate account known as the
11capital outlay and equipment replacement reserve account, and
12this account shall be part of the designated fund balance. At the
13end of each school year, the ending balance in the regional
14occupational center or program account may be distributed to any
15of the general reserve, designated fund balance, and unappropriated
16fund balance accounts, provided that the combined total distributed
17does not exceed 15 percent of the expenditures for the current
18school year.

19(1) The general reserve, the designated fund balance, including
20the capital outlay and equipment replacement reserve account, and
21the unappropriated fund balance shall be available for appropriation
22only after approval by a majority vote of the governing body of
23the regional occupational center or program.

24(2) Funds of a regional occupational center or program shall be
25distributed to the capital outlay and equipment replacement reserve
26account only upon adoption by the governing board of a resolution
27specifying the general use to which each appropriation from the
28account would be put.

29(b) (1) At the end of each school year, the combined ending
30balances of the general reserve, the designated fund balance, except
31the capital outlay and equipment replacement reserve account, and
32the unappropriated fund balance shall not exceed 15 percent of the
33expenditures for the current fiscal year.

34(2) A regional occupational center or program may accumulate,
35over a period of two or more school years, an ending balance in
36the capital outlay and equipment replacement reserve account of
37more than 15 percent of the expenditures for the current fiscal
38year, under provisions of a resolution of the governing board
39pursuant to paragraph (2) of subdivision (a).

P191  1(c) Funds placed in either the general reserve, the designated
2fund balance, including the capital outlay and equipment
3replacement reserve account, or the unappropriated fund balance
4shall be expended only for regional occupational center or program
5educational purposes.

6

SEC. 344.  

Section 52324 of the Education Code is repealed.

7

SEC. 345.  

Section 52324.5 of the Education Code is repealed.

8

SEC. 346.  

Section 52327 of the Education Code is amended
9to read:

10

52327.  

The governing board of a school district maintaining
11a regional occupational center may establish a bookstore on school
12district property for the purpose of offering for sale textbooks,
13workbooks, supplementary textbooks and workbooks, school
14supplies, stationery supplies, confectionary items, and related
15auxiliary school supplies and services.

16The governing board of the school district may establish a
17bookstore fund into which the proceeds derived from the operation
18of a regional occupational center bookstore may be transferred.
19Moneys in a bookstore fund shall be deposited or invested in one
20or more of the following ways:

21(a) Deposits in a bank or banks, or other institution, whose
22accounts are federally insured.

23(b) Investment certificates or withdrawable shares in
24state-chartered savings and loan associations and savings accounts
25of federal savings and loan associations, provided the associations
26are doing business in this state and have their accounts insured by
27the Federal Savings and Loan Insurance Corporation.

28(c) Purchase of United States securities pursuant to subdivision
29(a) of Section 16430 of the Government Code.

30The governing board of the school district shall designate an
31employee or official of the school district to act as trustee for funds
32derived from the operation of a regional occupational center
33bookstore and to receive those funds in accordance with procedures
34established by the board.

35All necessary expenses, including salaries, wages and costs of
36capital improvements may be deducted from the revenue of a
37regional occupational center bookstore. Net proceeds from the
38operation of a regional occupational center bookstore shall be used
39for the general benefit of the student body as determined by the
40governing board of the school district. Income from a regional
P192  1occupational center bookstore shall not be included in the school
2district funding allocation. Funds derived from the operation of a
3regional occupational center bookstore shall be subject to audit
4pursuant to Section 41020.

5

SEC. 347.  

Section 52327.5 of the Education Code is amended
6to read:

7

52327.5.  

Each governing board establishing or maintaining a
8regional occupational center or program pursuant to Section
952310.5 shall meet the requirements set forth in Sections 35145,
1041010, 41011, 41015, 41020, 42103, 51040, 51041, and 51050.

11

SEC. 348.  

Section 52328 of the Education Code is amended
12to read:

13

52328.  

A school district, located in whole or in part in a county
14contiguous with the Republic of Mexico, or any county
15superintendent of schools of a county contiguous with the Republic
16of Mexico, which maintains a regional occupational center may
17enter into a student exchange agreement with a trade and technical
18training school located in the Republic of Mexico. Such student
19exchange agreement shall permit Mexican pupils to take all or part
20of their occupational training in the regional occupational center
21and shall permit United States pupils to take all or part of their
22occupational training in the Mexican trade and technical school.

23

SEC. 349.  

Section 52329 of the Education Code is amended
24to read:

25

52329.  

The governing board of a school district located in a
26county, or the county superintendent of schools maintaining a
27regional occupational program in a county, any of the boundaries
28of which are contiguous to the State of Arizona, may enter into an
29agreement with a public or private educational agency located in
30the State of Arizona to provide to pupils living in the school district
31and enrolled in a regional occupational program, career technical
32or technical training which, due to geographical isolation, is not
33otherwise available to these pupils.

34The program of training at the public or private educational
35agency shall conform to the California State Plan for Career
36Technical Education.

37

SEC. 350.  

Section 52334 of the Education Code is amended
38to read:

39

52334.  

(a) Indirect costs charged to regional occupational
40centers and programs may not exceed the school district or county
P193  1office of education, as appropriate, prior year indirect cost rate as
2approved by the department.

3(b) The indirect costs charged by county offices of education
4and school districts that provide regional occupational centers and
5programs services on behalf of the county office of education or
6joint powers authority, when added together, may not exceed the
7indirect cost rate approved by the department for the county office
8of education or the school district, whichever is higher.

9

SEC. 351.  

Section 52335 of the Education Code is amended
10to read:

11

52335.  

For purposes of this article, “ROC/P” means regional
12occupational center or program.

13

SEC. 352.  

Section 52335.1 of the Education Code is repealed.

14

SEC. 353.  

Section 52335.2 of the Education Code is repealed.

15

SEC. 354.  

Section 52335.3 of the Education Code is repealed.

16

SEC. 355.  

Section 52335.4 of the Education Code is repealed.

17

SEC. 356.  

Section 52335.5 of the Education Code is repealed.

18

SEC. 357.  

Section 52335.6 of the Education Code is repealed.

19

SEC. 358.  

Section 52335.12 of the Education Code is amended
20to read:

21

52335.12.  

(a) As a condition of receiving state or federal funds,
22the regional occupational center or program shall report annually
23to the department the academic and workforce preparation progress
24of the secondary pupils enrolled in the center or program. Indicators
25to measure that progress shall include, but are not limited to, the
26Standardized Testing and Reporting (STAR) Program, pursuant
27to Article 4 (commencing with Section 60640) of Chapter 5 of
28Part 33; the high school exit examination, pursuant to Chapter 9
29(commencing with 60850) of Part 33; and other indicators of
30academic and workforce preparation success, such as reduced
31dropout rates, workforce preparation, increased matriculation into
32postsecondary educational institutions, and other measures as
33determined by the department.

34(b) This section shall become effective only when the
35longitudinal data on pupils enrolled in regional occupational centers
36and programs can be disaggregated from the California longitudinal
37pupil achievement data system database, established pursuant to
38Chapter 10 (commencing with Section 60900) of Part 33.

P194  1

SEC. 359.  

Article 1.7 (commencing with Section 52336) of
2Chapter 9 of Part 28 of Division 4 of Title 2 of the Education Code
3 is repealed.

4

SEC. 360.  

Article 2 (commencing with Section 52340) of
5Chapter 9 of Part 28 of Division 4 of Title 2 of the Education Code
6 is repealed.

7

SEC. 361.  

Article 3 (commencing with Section 52350) of
8Chapter 9 of Part 28 of Division 4 of Title 2 of the Education Code
9 is repealed.

10

SEC. 362.  

Article 4 (commencing with Section 52370) of
11Chapter 9 of Part 28 of Division 4 of Title 2 of the Education Code
12 is repealed.

13

SEC. 363.  

Article 4.5 (commencing with Section 52378) of
14Chapter 9 of Part 28 of Division 4 of Title 2 of the Education Code
15 is repealed.

16

SEC. 364.  

Article 5 (commencing with Section 52381) of
17Chapter 9 of Part 28 of Division 4 of Title 2 of the Education Code
18 is repealed.

19

SEC. 365.  

Article 7 (commencing with Section 52450) of
20Chapter 9 of Part 28 of Division 4 of Title 2 of the Education Code
21 is repealed.

22

SEC. 366.  

Article 7.5 (commencing with Section 52460) of
23Chapter 9 of Part 28 of Division 4 of Title 2 of the Education Code
24 is repealed.

25

SEC. 367.  

Article 8 (commencing with Section 52480) of
26Chapter 9 of Part 28 of Division 4 of Title 2 of the Education Code
27 is repealed.

28

SEC. 368.  

Article 9 (commencing with Section 52485) of
29Chapter 9 of Part 28 of Division 4 of Title 2 of the Education Code
30 is repealed.

31

SEC. 369.  

Article 1 (commencing with Section 52500) of
32Chapter 10 of Part 28 of Division 4 of Title 2 of the Education
33Code
is repealed.

34

SEC. 370.  

Article 3 (commencing with Section 52540) of
35Chapter 10 of Part 28 of Division 4 of Title 2 of the Education
36Code
is repealed.

37

SEC. 371.  

Article 4 (commencing with Section 52550) of
38Chapter 10 of Part 28 of Division 4 of Title 2 of the Education
39Code
is repealed.

P195  1

SEC. 372.  

Article 5 (commencing with Section 52570) of
2Chapter 10 of Part 28 of Division 4 of Title 2 of the Education
3Code
is repealed.

4

SEC. 373.  

Article 6 (commencing with Section 52610) of
5Chapter 10 of Part 28 of Division 4 of Title 2 of the Education
6Code
is repealed.

7

SEC. 374.  

Chapter 10.5 (commencing with Section 52651) of
8Part 28 of Division 4 of Title 2 of the Education Code is repealed.

9

SEC. 375.  

Article 4 (commencing with Section 52750) of
10Chapter 11 of Part 28 of Division 4 of Title 2 of the Education
11Code
is repealed.

12

SEC. 376.  

Article 1 (commencing with Section 52800) of
13Chapter 12 of Part 28 of Division 4 of Title 2 of the Education
14Code
is repealed.

15

SEC. 377.  

Chapter 13 (commencing with Section 52910) of
16Part 28 of Division 4 of Title 2 of the Education Code is repealed.

17

SEC. 378.  

Chapter 12.5 (commencing with Section 52920) of
18Part 28 of Division 4 of Title 2 of the Education Code is repealed.

19

SEC. 379.  

Chapter 17 (commencing with Section 53080) of
20Part 28 of Division 4 of Title 2 of the Education Code is repealed.

21

SEC. 380.  

Chapter 1 (commencing with Section 54000) of Part
2229 of Division 4 of Title 2 of the Education Code is repealed.

23

SEC. 381.  

Chapter 2 (commencing with Section 54100) of Part
2429 of Division 4 of Title 2 of the Education Code is repealed.

25

SEC. 382.  

Section 54690 of the Education Code is amended
26to read:

27

54690.  

(a) The Legislature hereby finds and declares that the
28partnership academies program has proven to be a highly effective
29state-school-private sector partnership, providing combined
30academic and occupational training to high school pupils who
31present a high risk of dropping out of school, and motivating those
32pupils to stay in school and graduate. Partnership academies are
33functioning in high schools across the state, with occupational
34education and skills development successfully offered in
35California’s 15 different industry sectors, including electronics,
36computer technology, finance, agribusiness, alternative energy,
37environmental design and construction, graphic arts and printing,
38international business, and space. Partnership academies have been
39honored with national awards for excellence, and the California
40partnership academies have been given high accolades in various
P196  1textbooks and studies addressing career technical education
2programs.

3(b) The Legislature finds the partnership academies are in the
4forefront of school efforts to integrate academic and career
5technical education and that they can be effective in providing an
6integrated learning program and high motivation toward pursuing
7skilled occupational fields to pupils at risk of dropping out of
8school and to pupils not motivated by the regular educational
9curriculum. Further, the Legislature finds the partnership academies
10can make a very positive contribution towards meeting the needs
11of the state for a highly skilled and educated workforce in the 21st
12century.

13(c) Therefore, the Legislature hereby states its intent to expand
14the number of partnership academies in this state’s high schools,
15hereafter to be known as California Partnership Academies; to
16broaden the availability of these learning experiences to interested
17pupils who do not meet the criteria of “at-risk” pupils; and to
18encourage the establishment of academies whose occupational
19fields address the needs of developing technologies.

20(d) For purposes of this article, an “at-risk” pupil means a pupil
21enrolled in high school who is at risk of dropping out of school,
22as indicated by at least three of the following criteria:

23(1) Past record of irregular attendance. For purposes of this
24section, “irregular attendance” means absence from school 20
25percent or more of the school year.

26(2) Past record of underachievement in which the pupil is at
27least one-third of a year behind the coursework for the respective
28grade level, or as demonstrated by credits achieved.

29(3) Past record of low motivation or a disinterest in the regular
30school program.

31(4) Disadvantaged economically.

32(5) Scoring below basic or far below basic in mathematics or
33English language arts on the standardized test administered
34pursuant to Article 4 (commencing with Section 60640) of Chapter
355 of Part 33.

36(6) Maintaining a grade point average of 2.2 or below, or the
37equivalent of a C minus.

38(e) Up to one-half of the pupils enrolled at a partnership
39academy may be pupils who do not meet the criteria of “at-risk”
40pupils.

P197  1

SEC. 383.  

Section 54691 of the Education Code is amended
2to read:

3

54691.  

(a) An academy pupil is a pupil who is enrolled in a
4partnership academy for the 10th, 11th, or 12th grade, obtains 90
5percent of the credits each academic year in courses that are
6required for graduation, and does any of the following:

7(1) Successfully completes a school year during the 10th grade
8with an attendance record of no less than 80 percent.

9(2) Successfully completes a school year during the 11th grade
10with an attendance record of no less than 80 percent.

11(3) Successfully graduates after the 12th grade.

12A pupil enrolled in an academy who successfully completes only
13one semester with regard to enrollment, attendance, and credits
14within the school year is considered qualified for that semester.

15(b) At the end of each school year, school districts that choose
16to operate an academy pursuant to this article are encouraged to
17report following information to the Superintendent:

18(1) The operation of each academy in accordance with this
19article, including Sections 54692 and 54694.

20(2) The number of qualified pupils enrolled during the just
21completed school year, by grade level, for each academy operated
22by the school district.

23(3) The amount of matching funds and the dollar value of in-kind
24support made available to each academy in accordance with
25subdivisions (a) and (b) of Section 54692.

26

SEC. 384.  

Section 54692 of the Education Code is amended
27to read:

28

54692.  

A school district operating a partnership academy is
29encouraged to operate an academy as follows:

30(a) Establish each academy as a “school within a school.”
31Academy teachers shall work as a team in planning, teaching, and
32troubleshooting program activities. Classes in the academy program
33shall be limited to academy pupils as specified in subdivision (e).
34Each participating school district shall establish an advisory
35committee consisting of individuals involved in academy
36operations, including school district and school administrators,
37lead teachers, and representatives of the private sector.

38(b) Provide each academy pupil with the following:

39(1) Instruction in at least three academic subjects each regular
40school term that prepares the pupil for a regular high school
P198  1diploma, and, where possible and appropriate, to meet the subject
2requirements for admission to the California State University and
3the University of California. These subjects should contribute to
4an understanding of the occupational field of the academy.

5(2) Career technical education courses offered at each grade
6level at the academy that are part of an occupational course
7sequence that targets comprehensive skills and that does the
8following:

9(A) Provides career technical education in high skill occupations
10of regional and local economic need.

11(B) Focuses on occupations requiring comprehensive skills
12leading to higher than entry-level wages, or the possibility of
13significant wage increases after a few years on the job, or both.

14(C) Provides a sequence of courses that build upon each other
15in knowledge, skill development, and experience, and ends in a
16capstone course that includes an internship component.

17(D) Prepares pupils for employment and postsecondary
18education. Sequenced courses shall be linked to certificate and
19degree programs in the region, where possible.

20(E) Whenever possible, prepares pupils for industry-recognized
21certifications.

22(F) Whenever possible and appropriate, offers career technical
23education courses that also meet the subject requirements for
24admission to the California State University and the University of
25California.

26(3) A class schedule that limits the attendance to the classes
27required in paragraphs (1) and (2) to pupils of the academy.
28Whenever possible, these classes should be block scheduled in a
29cluster to provide flexibility to academy teachers. During the 12th
30grade the number of academic classes may vary.

31(4) A mentor from the business community during the pupil’s
3211th grade year.

33(5) An employer-based internship or work experience that occurs
34in the summer following the 11th grade or during 12th grade year.

35(6) Additional motivational activities with private sector
36involvement to encourage academic and occupational preparation.

37(c) Provide academy teachers a common planning period to
38interchange pupil and educational information. A second planning
39period should be provided for the lead teacher in addition to the
P199  1normal planning period for full-time teachers and be supported as
2a part of the school district’s matching funds, whenever practical.

3

SEC. 385.  

Section 54693 of the Education Code is repealed.

4

SEC. 386.  

Section 54695 of the Education Code is amended
5to read:

6

54695.  

(a) The 9th grade teachers and counselors in schools
7maintained by school districts that operate academies pursuant to
8this article shall identify pupils eligible to participate in an
9academy.

10(b) Teachers and counselors in schools maintained by school
11districts that operate academies pursuant to this article, business
12representatives, and academy pupils of academies that are operating
13in the area shall be encouraged to make presentations to prospective
14pupils and their parents.

15(c) The staff of each academy shall select pupils from among
16those who have expressed an interest in the academy and whose
17parents or guardians have approved the pupil’s participation.

18

SEC. 387.  

Section 54699 of the Education Code is amended
19to read:

20

54699.  

(a) School districts may implement a partnership
21academy, or maintain an existing academy, that focuses on
22employment in clean technology businesses or renewable energy
23businesses and provides skilled workforces for the products and
24services for energy or water conservation, or both, renewable
25energy, pollution reduction, or other technologies that improve the
26environment in furtherance of state environmental laws.

27(b) The State Energy Resources Conservation and Development
28Commission, in consultation with the Superintendent, shall adopt
29guidelines so that programs may reflect current state energy
30policies and priorities as well as provide skills and education linked
31to the needs of relevant industries.

32(c) Notwithstanding any other law, any guideline adopted
33pursuant to this section shall be exempt from the requirements of
34Chapter 3.5 (commencing with Section 11340) of Part 1 of Division
353 of Title 2 of the Government Code.

36(d) School districts are encouraged to establish partnership
37academies that are consistent with the guidelines developed by the
38State Energy Resources Conservation and Development
39Commission pursuant to subdivision (b).

P200  1(e) School districts that operate a clean technology partnership
2academy are encouraged to work and coordinate with regional
3occupational centers and programs for the required career technical
4education sequence of courses.

5(f) Commencing in 2014 and not later than January 1 of each
6year for which this article is operative, the Superintendent, in
7consultation with the State Energy Resources Conservation and
8Development Commission, shall provide a report to the Legislature
9that includes, but is not limited to, a description of the curriculum
10and substance of the programs funded operated pursuant to this
11article. The first annual report shall include the identification of
12gaps in available curricula relating to clean technology and
13renewable energy that are consistent with current state energy
14policy and priorities, as well as the proportion of participating
15pupils who meet the at-risk criteria enumerated in subdivision (d)
16of Section 54690. The report also shall include available pupil
17participation data.

18

SEC. 388.  

Article 7.1 (commencing with Section 54740) of
19Chapter 9 of Part 29 of Division 4 of Title 2 of the Education Code
20 is repealed.

21

SEC. 389.  

Section 54750 of the Education Code is amended
22to read:

23

54750.  

(a) School districts are encouraged to establish
24partnership academies dedicated to educating pupils in the
25emerging environmentally sound technologies. The academies
26may include, but are not limited to, technologies that educate pupils
27in the following areas:

28(1) Energy audits that include a determination of energy savings.

29(2) Retrofitting and weatherization activities that increase energy
30efficiency and conservation.

31(3) Energy-efficient and water-efficient buildings.

32(4) Retrofitting and installing energy-efficient household
33appliances, windows, doors, insulation, and lighting.

34(5) Retrofitting and installing water and energy conservation
35technologies in existing homes, industrial buildings, and
36commercial and public buildings, to improve efficiency, including
37the use of energy and water management technologies and control
38systems.

39(6) The design, construction, manufacture, sale, assembly,
40installation, and maintenance of energy-efficient technologies and
P201  1renewable energy facilities, or the component parts of renewable
2energy technologies.

3(7) Energy-efficient technologies or practices and renewable
4energy production, or the component parts of renewable energy
5plants and energy distribution, including energy storage; energy
6infrastructure, including transmission; transportation, including
7logistics; and water and wastewater, including water conservation.

8(8) Performance and low-emission vehicle technology,
9automotive computer systems, mass transit fleet conversion, and
10the servicing and maintenance of those technologies.

11(9) Pollution prevention and hazardous and solid waste
12reduction.

13(10) Ocean, soil, or water conservation, or forestation strategies
14to mitigate climate change impacts.

15(b) A school district operating green technology partnership
16academies is encouraged to provide staff development opportunities
17to ensure that teaching staff has the opportunity to be educated in
18the use of emerging technologies and to become familiar with new
19materials and current practices in the field.

20

SEC. 390.  

Article 7.7 (commencing with Section 54760) of
21Chapter 9 of Part 29 of Division 4 of Title 2 of the Education Code
22 is repealed.

23

SEC. 391.  

Section 56365 of the Education Code is amended
24to read:

25

56365.  

(a) Services provided by nonpublic, nonsectarian
26schools, as defined pursuant to Section 56034, and nonpublic,
27nonsectarian agencies, as defined pursuant to Section 56035, shall
28be made available. These services shall be provided pursuant to
29Section 56366, and in accordance with Section 300.146 of Title
3034 of the Code of Federal Regulations, under contract with the
31local educational agency to provide the appropriate special
32educational facilities, special education, or designated instruction
33and services required by the individual with exceptional needs if
34no appropriate public education program is available.

35(b) Pupils enrolled in nonpublic, nonsectarian schools and
36agencies under this section shall be deemed to be enrolled in public
37schools for all purposes of Chapter 4 (commencing with Section
3841600) of Part 24 of Division 3 and Section 42238.02. The local
39educational agency shall be eligible to receive allowances under
40Articles 3 (commencing with Section 56836.165) and 4
P202  1(commencing with Section 56836.20) of Chapter 7.2 for services
2that are provided to individuals with exceptional needs pursuant
3to the contract.

4(c) If the state participates in the federal program of assistance
5for state-operated or state-supported programs for individuals with
6exceptional needs (Public Law 89-313, Sec. 6), pupils enrolled in
7nonpublic, nonsectarian schools shall be deemed to be enrolled in
8state-supported institutions for all purposes of that program and
9shall be eligible to receive allowances under Chapter 7.2
10(commencing with Section 56836) for supplemental services
11provided to individuals with exceptional needs pursuant to a
12contract with a local educational agency. In order to participate in
13the federal program, the state shall find that participation will not
14result in any additional expenditures from the General Fund.

15(d) The local educational agency shall pay to the nonpublic,
16nonsectarian school or agency the full amount of the tuition for
17individuals with exceptional needs that are enrolled in programs
18provided by the nonpublic, nonsectarian school pursuant to the
19contract.

20(e) Before contracting with a nonpublic, nonsectarian school or
21agency outside of this state, the local educational agency shall
22document its efforts to utilize public schools or to locate an
23appropriate nonpublic, nonsectarian school or agency program, or
24both, within the state.

25(f) If a local educational agency places a pupil with a nonpublic,
26nonsectarian school or agency outside of this state, the pupil’s
27individualized education program team shall submit a report to
28the Superintendent within 15 days of the placement decision. The
29report shall include information about the special education and
30related services provided by the out-of-state program placement
31and the costs of the special education and related services provided,
32and shall indicate the efforts of the local educational agency to
33locate an appropriate public school or nonpublic, nonsectarian
34school or agency, or a combination thereof, within the state. The
35Superintendent shall submit a report to the board on all placements
36made outside of this state.

37(g) If a local educational agency decides to place a pupil with
38a nonpublic, nonsectarian school or agency outside of this state,
39that local educational agency shall indicate the anticipated date
40for the return of the pupil to a public or nonpublic, nonsectarian
P203  1school or agency placement, or a combination thereof, located in
2the state and shall document efforts during the previous placement
3year to return the pupil.

4(h) In addition to meeting the requirements of Section 56366.1,
5a nonpublic, nonsectarian school or agency that operates a program
6outside of this state shall be certified or licensed by that state to
7provide, respectively, special education and related services and
8designated instruction and related services to pupils under the
9federal Individuals with Disabilities Education Act (20 U.S.C. Sec.
101400 et seq.).

11(i) A nonpublic, nonsectarian school or agency that is located
12outside of this state is eligible for certification pursuant to Section
1356366.1 only if a pupil is enrolled in a program operated by that
14school or agency pursuant to the recommendation of an
15individualized education program team in California, and if that
16pupil’s parents or guardians reside in California.

17(j) In accordance with Section 300.147(b) and (c) of Title 34 of
18the Code of Federal Regulations, the department shall disseminate
19copies of applicable standards to each nonpublic, nonsectarian
20school and nonpublic, nonsectarian agency to which a local
21educational agency has referred or placed an individual with
22exceptional needs and shall provide an opportunity for those
23nonpublic, nonsectarian schools and nonpublic, nonsectarian
24agencies to participate in the development and revision of state
25standards that apply to those entities.

26

SEC. 392.  

Section 56366.1 of the Education Code is amended
27to read:

28

56366.1.  

(a) A nonpublic, nonsectarian school or agency that
29seeks certification shall file an application with the Superintendent
30on forms provided by the department and include the following
31information on the application:

32(1) A description of the special education and designated
33instruction and services provided to individuals with exceptional
34needs if the application is for nonpublic, nonsectarian school
35certification.

36(2) A description of the designated instruction and services
37provided to individuals with exceptional needs if the application
38is for nonpublic, nonsectarian agency certification.

39(3) A list of appropriately qualified staff, a description of the
40credential, license, or registration that qualifies each staff member
P204  1rendering special education or designated instruction and services
2to do so, and copies of their credentials, licenses, or certificates of
3registration with the appropriate state or national organization that
4has established standards for the service rendered.

5(4) An annual operating budget.

6(5) Affidavits and assurances necessary to comply with all
7applicable federal, state, and local laws and regulations that include
8criminal record summaries required of all nonpublic, nonsectarian
9school or agency personnel having contact with minor children
10under Section 44237.

11(b) (1) The applicant shall provide the special education local
12plan area in which the applicant is located with the written
13notification of its intent to seek certification or renewal of its
14certification. The applicant shall submit on a form, developed by
15the department, a signed verification by local educational agency
16representatives that they have been notified of the intent to certify
17or renew certification. The verification shall include a statement
18that representatives of the local educational agency for the area in
19which the applicant is located have had the opportunity to review
20the application at least 60 calendar days prior to submission of an
21initial application to the Superintendent, or at least 30 calendar
22days prior to submission of a renewal application to the
23Superintendent. The signed verification shall provide assurances
24that local educational agency representatives have had the
25opportunity to provide input on all required components of the
26application.

27(2) If the applicant has not received a response from the local
28 educational agency 60 calendar days from the date of the return
29receipt for initial applications or 30 calendar days from the date
30of the return receipt for renewal applications, the applicant may
31file the application with the Superintendent. A copy of the return
32receipt shall be included with the application as verification of
33notification efforts to the local educational agency.

34(3) The department shall mail renewal application materials to
35certified nonpublic, nonsectarian schools and agencies at least 120
36days before the date their current certification expires.

37(c) If the applicant operates a facility or program on more than
38one site, each site shall be certified.

39(d) If the applicant is part of a larger program or facility on the
40same site, the Superintendent shall consider the effect of the total
P205  1program on the applicant. A copy of the policies and standards for
2the nonpublic, nonsectarian school or agency and the larger
3program shall be available to the Superintendent.

4(e) Before certification, the Superintendent shall conduct an
5onsite review of the facility and program for which the applicant
6seeks certification. The Superintendent may be assisted by
7representatives of the special education local plan area in which
8the applicant is located and a nonpublic, nonsectarian school or
9agency representative who does not have a conflict of interest with
10the applicant. The Superintendent shall conduct an additional onsite
11review of the facility and program within three years of the
12effective date of the certification, unless the Superintendent
13conditionally certifies the school or agency or unless the
14Superintendent receives a formal complaint against the school or
15agency. In the latter two cases, the Superintendent shall conduct
16an onsite review at least annually.

17(f) The Superintendent shall make a determination on an
18application within 120 days of receipt of the application and shall
19certify, conditionally certify, or deny certification to the applicant.
20If the Superintendent fails to take one of these actions within 120
21days, the applicant is automatically granted conditional certification
22for a period terminating on August 31 of the current school year.
23If certification is denied, the Superintendent shall provide reasons
24for the denial. The Superintendent may certify the school or agency
25for a period of not longer than one year.

26(g) Certification becomes effective on the date the nonpublic,
27nonsectarian school or agency meets all the application
28requirements and is approved by the Superintendent. Certification
29may be retroactive if the school or agency met all the requirements
30of this section on the date the retroactive certification is effective.
31Certification expires on December 31 of the terminating year.

32(h) The Superintendent annually shall review the certification
33of each nonpublic, nonsectarian school and agency. For this
34purpose, a certified school or agency annually shall update its
35application between August 1 and October 31, unless the board
36grants a waiver pursuant to Section 56101. The Superintendent
37may conduct an onsite review as part of the annual review.

38(i) (1) The Superintendent shall conduct an investigation of a
39nonpublic, nonsectarian school or agency onsite at any time without
40prior notice if there is substantial reason to believe that there is an
P206  1immediate danger to the health, safety, or welfare of a child. The
2Superintendent shall document the concern and submit it to the
3nonpublic, nonsectarian school or agency at the time of the onsite
4 investigation. The Superintendent shall require a written response
5to any noncompliance or deficiency found.

6(2) With respect to a nonpublic, nonsectarian school, the
7Superintendent shall conduct an investigation, which may include
8an unannounced onsite visit, if the Superintendent receives
9evidence of a significant deficiency in the quality of educational
10services provided, a violation of Section 56366.9, or
11noncompliance with the policies expressed by subdivision (b) of
12Section 1501 of the Health and Safety Code by the nonpublic,
13nonsectarian school. The Superintendent shall document the
14complaint and the results of the investigation and shall provide
15copies of the documentation to the complainant, the nonpublic,
16nonsectarian school, and the contracting local educational agency.

17(3) Violations or noncompliance documented pursuant to
18paragraph (1) or (2) shall be reflected in the status of the
19certification of the school, at the discretion of the Superintendent,
20pending an approved plan of correction by the nonpublic,
21nonsectarian school. The department shall retain for a period of
2210 years all violations pertaining to certification of the nonpublic,
23nonsectarian school or agency.

24(j) The Superintendent shall monitor the facilities, the
25educational environment, and the quality of the educational
26program, including the teaching staff, the credentials authorizing
27service, the standards-based core curriculum being employed, and
28the standard-focused instructional materials used, of an existing
29certified nonpublic, nonsectarian school or agency on a three-year
30cycle, as follows:

31(1) The nonpublic, nonsectarian school or agency shall complete
32a self-review in year one.

33(2) The Superintendent shall conduct an onsite review of the
34nonpublic, nonsectarian school or agency in year two.

35(3) The Superintendent shall conduct a followup visit to the
36nonpublic, nonsectarian school or agency in year three.

37(k) (1) Notwithstanding any other law, the Superintendent shall
38not certify a nonpublic, nonsectarian school or agency that proposes
39to initiate or expand services to pupils currently educated in the
40immediate prior fiscal year in a juvenile court program, community
P207  1school pursuant to Section 56150, or other nonspecial education
2program, including independent study or adult school, or both,
3unless the nonpublic, nonsectarian school or agency notifies the
4county superintendent of schools and the special education local
5plan area in which the proposed new or expanded nonpublic,
6nonsectarian school or agency is located of its intent to seek
7certification.

8(2) The notification shall occur no later than the December 1
9before the new fiscal year in which the proposed or expanding
10school or agency intends to initiate services. The notice shall
11include the following:

12(A) The specific date upon which the proposed nonpublic,
13nonsectarian school or agency is to be established.

14(B) The location of the proposed program or facility.

15(C) The number of pupils proposed for services, the number of
16pupils currently served in the juvenile court, community school,
17or other nonspecial education program, the current school services
18including special education and related services provided for these
19pupils, and the specific program of special education and related
20services to be provided under the proposed program.

21(D) The reason for the proposed change in services.

22(E) The number of staff who will provide special education and
23designated instruction and services and hold a current valid
24California credential or license in the service rendered.

25(3) In addition to the requirements in subdivisions (a) to (f),
26inclusive, the Superintendent shall require and consider the
27following in determining whether to certify a nonpublic,
28nonsectarian school or agency as described in this subdivision:

29(A) A complete statement of the information required as part
30of the notice under paragraph (1).

31(B) Documentation of the steps taken in preparation for the
32conversion to a nonpublic, nonsectarian school or agency, including
33information related to changes in the population to be served and
34the services to be provided pursuant to each pupil’s individualized
35education program.

36(4) Notwithstanding any other law, the certification becomes
37effective no earlier than July 1 if the school or agency provided
38the notification required pursuant to paragraph (1).

P208  1(l) (1) Notwithstanding any other law, the Superintendent shall
2not certify or renew the certification of a nonpublic, nonsectarian
3school or agency, unless all of the following conditions are met:

4(A) The entity operating the nonpublic, nonsectarian school or
5agency maintains separate financial records for each entity that it
6operates, with each nonpublic, nonsectarian school or agency
7identified separately from any licensed children’s institution that
8it operates.

9(B) The entity submits an annual budget that identifies the
10projected costs and revenues for each entity and demonstrates that
11the rates to be charged are reasonable to support the operation of
12the entity.

13(C) The entity submits an entitywide annual audit that identifies
14its costs and revenues, by entity, in accordance with generally
15accepted accounting and auditing principles. The audit shall clearly
16document the amount of moneys received and expended on the
17education program provided by the nonpublic, nonsectarian school.

18(D) The relationship between various entities operated by the
19same entity are documented, defining the responsibilities of the
20entities. The documentation shall clearly identify the services to
21be provided as part of each program, for example, the residential
22or medical program, the mental health program, or the educational
23program. The entity shall not seek funding from a public agency
24for a service, either separately or as part of a package of services,
25if the service is funded by another public agency, either separately
26or as part of a package of services.

27(2) For purposes of this section, “licensed children’s institution”
28has the same meaning as it is defined by Section 56155.5.

29(m) The school or agency shall be charged a reasonable fee for
30certification. The Superintendent may adjust the fee annually
31commensurate with the statewide average percentage inflation
32adjustment computed for local control funding formula allocations
33pursuant to Section 42238.02, as implemented by Section 42238.03,
34of unified school districts with greater than 1,500 units of average
35daily attendance if the percentage increase is reflected in the school
36district local control funding formula allocation pursuant to Section
3742238.02, as implemented by Section 42238.03, for inflation
38purposes. For purposes of this section, the base fee shall be the
39following:


P209  6

 

(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

 

7The school or agency shall pay this fee when it applies for
8certification and when it updates its application for annual renewal
9by the Superintendent. The Superintendent shall use these fees to
10conduct onsite reviews, which may include field experts. No fee
11shall be refunded if the application is withdrawn or is denied by
12the Superintendent.

13(n) (1) Notwithstanding any other law, only those nonpublic,
14nonsectarian schools and agencies that provide special education
15and designated instruction and services utilizing staff who hold a
16certificate, permit, or other document equivalent to that which staff
17in a public school are required to hold in the service rendered are
18eligible to receive certification. Only those nonpublic, nonsectarian
19schools or agencies located outside of California that employ staff
20who hold a current valid credential or license to render special
21education and related services as required by that state shall be
22eligible to be certified.

23(2) The board shall develop regulations to implement this
24subdivision.

25(o) In addition to meeting the standards adopted by the board,
26a nonpublic, nonsectarian school or agency shall provide written
27assurances that it meets all applicable standards relating to fire,
28health, sanitation, and building safety.

29

SEC. 393.  

Section 56836.21 of the Education Code is amended
30to read:

31

56836.21.  

(a) The department shall administer an extraordinary
32cost pool to protect special education local plan areas from the
33extraordinary costs associated with single placements as described
34in subdivision (d). Funds shall be appropriated for this purpose in
35the annual Budget Act. Special education local plan areas shall be
36eligible for reimbursement from this pool in accordance with this
37section.

38(b) The threshold amount for claims under this section shall be
39the lesser of the following:

P210  1(1) One percent of the allocation calculated pursuant to Section
256836.08 for the special education local plan area for the current
3fiscal year for any special education local plan area that meets the
4criteria in Section 56212.

5(2) The department shall calculate the average cost of a
6nonpublic, nonsectarian school placement in the 1997-98 fiscal
7year. This amount shall be multiplied by 2.5, then by one plus the
8inflation factor computed pursuant to Section 42238.1, as that
9section read on June 30, 2013, to obtain the alternative threshold
10amount for claims in the 1998-99 fiscal year. In subsequent fiscal
11years, the alternative threshold amount shall be the alternative
12threshold amount for the prior fiscal year multiplied by one plus
13the inflation factor computed pursuant to Section 42238.1, as that
14section read on June 30, 2013, through the 2012-13 fiscal year
15and commencing with the 2013-14 fiscal year, paragraph (2) of
16subdivision (d) of Section 42238.02.

17(c) Special education local plan areas are eligible to submit
18claims for costs exceeding the threshold amount on forms
19developed by the department. All claims for a fiscal year shall be
20submitted by November 30 following the close of the fiscal year.
21If the total amount claimed by special education local plan areas
22exceeds the amount appropriated, the claims shall be prorated.

23(d) Special education local plan areas are eligible to submit
24claims for the costs of nonpublic, nonsectarian school placements
25in excess of those in existence in the 1997-98 fiscal year and of
26special education and related services for pupils who reside in
27licensed children’s institutions.

28

SEC. 394.  

Section 56836.24 of the Education Code is amended
29to read:

30

56836.24.  

Commencing with the 1998-99 fiscal year and each
31year thereafter, the Superintendent shall make the following
32computations to determine the amount of funding for the purposes
33specified in Section 56836.23 to apportion to each special education
34local plan area for the fiscal year in which the computation is made:

35(a) For the 1998-99 fiscal year the superintendent shall make
36the following computations:

37(1) Multiply the total amount of state General Fund money
38allocated to the special education local plan areas in the 1997-98
39fiscal year, for the purposes of Article 9 (commencing with Section
4056780) of Chapter 7, as that chapter existed on December 31, 1998,
P211  1by one plus the inflation factor computed pursuant to subdivision
2(b) of Section 42238.1, as that section read on June 30, 2013, for
3the 1998-99 fiscal year.

4(2) Divide the amount calculated in paragraph (1) by the units
5of average daily attendance, exclusive of average daily attendance
6for absences excused pursuant to subdivision (b) of Section 46010
7as that subdivision read on July 1, 1997, reported for the special
8education local plan area for the 1997-98 fiscal year.

9(3) To determine the amount to be allocated to each special
10education local plan area in the 1998-99 fiscal year, the
11superintendent shall multiply the amount computed in paragraph
12(2) by the number of units of average daily attendance reported
13for the special education local plan area for the 1998-99 fiscal
14year, except that a special education local plan area designated as
15a necessary small special education local plan area in accordance
16 with Section 56212 and reporting fewer than 15,000 units of
17average daily attendance for the 1998-99 fiscal year shall be
18deemed to have 15,000 units of average daily attendance, and no
19special education local plan area shall receive less than it received
20in the 1997-98 fiscal year.

21(b) For the 1999-2000 fiscal year and each fiscal year thereafter,
22the Superintendent shall make the following calculations:

23(1) Multiply the amount determined in paragraph (2) of
24subdivision (a) by one plus the inflation factor computed pursuant
25to subdivision (b) of Section 42238.1, as that section read on June
2630, 2013, and commencing with the 2013-14 fiscal year, paragraph
27(2) of subdivision (d) of Section 42238.02 for the current fiscal
28year.

29(2) Multiply the amount determined in paragraph (1) by the
30number of units of average daily attendance reported for the special
31education local plan area for the current fiscal year, except that a
32special education local plan area designated as a necessary small
33special education local plan area in accordance with Section 56212
34and reporting fewer than 15,000 units of average daily attendance
35for the current fiscal year shall be deemed to have 15,000 units of
36average daily attendance.

37

SEC. 395.  

Chapter 3.1 (commencing with Section 58520) of
38Part 31 of Division 4 of Title 2 of the Education Code is repealed.

39

SEC. 396.  

Chapter 5 (commencing with Section 58700) of Part
4031 of Division 4 of Title 2 of the Education Code is repealed.

P212  1

SEC. 397.  

Chapter 6 (commencing with Section 58800) of Part
231 of Division 4 of Title 2 of the Education Code is repealed.

3

SEC. 398.  

The heading of Article 7 (commencing with Section
460117) of Chapter 1 of Part 33 of Division 4 of Title 2 of the 5Education Code is amended to read:

6 

7Article 7.  Sufficiency of Instructional Materials
8

 

9

SEC. 399.  

Section 60117 of the Education Code is repealed.

10

SEC. 400.  

Section 60118 of the Education Code is repealed.

11

SEC. 401.  

Section 60119 of the Education Code is amended
12to read:

13

60119.  

(a) The governing board of a school district shall take
14the following actions:

15(1) (A) The governing board of a school district shall hold a
16public hearing or hearings at which the governing board of the
17school district shall encourage participation by parents, teachers,
18members of the community interested in the affairs of the school
19district, and bargaining unit leaders, and shall make a
20determination, through a resolution, as to whether each pupil in
21each school in the school district has sufficient textbooks or
22instructional materials, or both, that are aligned to the content
23standards adopted pursuant to Section 60605 or 60605.8 in each
24of the following subjects, as appropriate, that are consistent with
25the content and cycles of the curriculum framework adopted by
26the state board:

27(i) Mathematics.

28(ii) Science.

29(iii) History-social science.

30(iv) English language arts, including the English language
31development component of an adopted program.

32(B) The public hearing shall take place on or before the end of
33the eighth week from the first day pupils attend school for that
34year. A school district that operates schools on a multitrack,
35year-round calendar shall hold the hearing on or before the end of
36the eighth week from the first day pupils attend school for that
37year on any tracks that begin a school year in August or September.
38For purposes of the 2004-05 fiscal year only, the governing board
39of a school district shall make a diligent effort to hold a public
40hearing pursuant to this section on or before December 1, 2004.

P213  1(C) As part of the hearing required pursuant to this section, the
2governing board of a school district also shall make a written
3determination as to whether each pupil enrolled in a foreign
4language or health course has sufficient textbooks or instructional
5materials that are consistent with the content and cycles of the
6curriculum frameworks adopted by the state board for those
7subjects. The governing board of a school district also shall
8determine the availability of laboratory science equipment as
9applicable to science laboratory courses offered in grades 9 to 12,
10inclusive. The provision of the textbooks, instructional materials,
11or science equipment specified in this subparagraph is not a
12condition of receipt of funds provided by this subdivision.

13(2) (A) If the governing board of a school district determines
14that there are insufficient textbooks or instructional materials, or
15both, the governing board of the school district shall provide
16information to classroom teachers and to the public setting forth,
17in the resolution, for each school in which an insufficiency exists,
18the percentage of pupils who lack sufficient standards-aligned
19textbooks or instructional materials in each subject area and the
20reasons that each pupil does not have sufficient textbooks or
21instructional materials, or both, and take any action, except an
22action that would require reimbursement by the Commission on
23State Mandates, to ensure that each pupil has sufficient textbooks
24or instructional materials, or both, within two months of the
25beginning of the school year in which the determination is made.

26(B) In carrying out subparagraph (A), the governing board of a
27school district may use moneys in any of the following funds:

28(i) Any funds available for textbooks or instructional materials,
29or both, including any funds received pursuant to Section 8880.5
30of the Government Code.

31(ii) Any other funds available to the school district for textbooks
32or instructional materials, or both.

33(b) The governing board of a school district shall provide 10
34days’ notice of the public hearing or hearings set forth in
35subdivision (a). The notice shall contain the time, place, and
36purpose of the hearing and shall be posted in three public places
37in the school district. The hearing shall be held at a time that will
38encourage the attendance of teachers and parents and guardians
39of pupils who attend the schools in the school district and shall
40not take place during or immediately following school hours.

P214  1(c) (1) For purposes of this section, “sufficient textbooks or
2instructional materials” means that each pupil, including English
3learners, has a standards-aligned textbook or instructional materials,
4or both, to use in class and to take home. This paragraph does not
5require two sets of textbooks or instructional materials for each
6pupil. The materials may be in a digital format as long as each
7pupil, at a minimum, has and can access the same materials in the
8class and to take home, as all other pupils in the same class or
9course in the school district and has the ability to use and access
10them at home.

11(2) Sufficient textbooks or instructional materials as defined in
12paragraph (1) do not include photocopied sheets from only a
13portion of a textbook or instructional materials copied to address
14a shortage.

15(d) The governing board of a school district that receives funds
16for instructional materials from any state source is subject to the
17requirements of this section.

18(e) For the purpose of transitioning to instructional materials
19that are aligned with the common core academic content standards,
20it is the intent of the Legislature that textbooks, instructional
21materials, and supplemental instructional materials be deemed to
22be aligned with the content standards pursuant to subdivisions (a)
23and (c), and be deemed consistent with the content and cycles of
24the curriculum framework adopted by the state board pursuant to
25subdivision (a) if the textbooks, instructional materials,
26supplemental instructional materials, or a combination of any such
27materials are aligned to the content standards adopted pursuant to
28Section 60605 or 60605.8.

29

SEC. 402.  

Article 3 (commencing with Section 60240) of
30Chapter 2 of Part 33 of Division 4 of Title 2 of the Education Code
31 is repealed.

32

SEC. 403.  

Article 7 (commencing with Section 60350) of
33Chapter 2 of Part 33 of Division 4 of Title 2 of the Education Code
34 is repealed.

35

SEC. 404.  

Chapter 4 (commencing with Section 60500) of Part
3633 of Division 4 of Title 2 of the Education Code is repealed.

37

SEC. 405.  

Section 60851 of the Education Code is amended
38to read:

39

60851.  

(a) Commencing with the 2003-04 school year and
40each school year thereafter, each pupil completing grade 12 shall
P215  1successfully pass the high school exit examination as a condition
2of receiving a diploma of graduation or a condition of graduation
3from high school. Funding for the administration of the high school
4exit examination shall be provided for in the annual Budget Act.
5The Superintendent shall apportion funds appropriated for this
6purpose to enable school districts to meet the requirements of this
7subdivision and subdivisions (b), (c), and (d). The state board shall
8establish the amount of funding to be apportioned per test
9administered, based on a review of the cost per test.

10(b) Each pupil shall take the high school exit examination in
11grade 10 beginning in the 2001-02 school year and may take the
12examination during each subsequent administration, until each
13section of the examination has been passed.

14(c) (1) At the parent or guardian’s request, a school principal
15shall submit a request for a waiver of the requirement to
16successfully pass the high school exit examination to the governing
17board of the school district for a pupil with a disability who has
18taken the high school exit examination with modifications that
19alter what the test measures and has received the equivalent of a
20passing score on one or both subject matter parts of the high school
21exit examination. A governing board of a school district may waive
22the requirement to successfully pass one or both subject matter
23parts of the high school exit examination for a pupil with a
24disability if the principal certifies to the governing board of the
25school district that the pupil has all of the following:

26(A) An individualized education program adopted pursuant to
27the federal Individuals with Disabilities Education Act (20 U.S.C.
28Sec. 1400 et seq.) or a plan adopted pursuant to Section 504 of the
29federal Rehabilitation Act of 1973 (29 U.S.C. Sec. 794(a)) in place
30that requires the accommodations or modifications to be provided
31to the pupil when taking the high school exit examination.

32(B) Sufficient high school level coursework either satisfactorily
33completed or in progress in a high school level curriculum
34sufficient to have attained the skills and knowledge otherwise
35needed to pass the high school exit examination.

36(C) An individual score report for the pupil showing that the
37pupil has received the equivalent of a passing score on the high
38school exit examination while using a modification that
39fundamentally alters what the high school exit examination
40measures as determined by the state board.

P216  1(2) A school district shall report to the state board, in a manner
2and by a date determined by the Superintendent, the number and
3characteristics of waivers reviewed, granted, and denied under this
4subdivision and any additional information determined to be in
5furtherance of this subdivision.

6(d) The high school exit examination shall be offered in each
7public school and state special school that provides instruction in
8grades 10, 11, or 12, on the dates designated by the Superintendent.
9An exit examination may not be administered on any date other
10than those designated by the Superintendent as examination days
11or makeup days.

12(e) The results of the high school exit examination shall be
13provided to each pupil taking the examination within eight weeks
14of the examination administration and in time for the pupil to take
15any section of the examination not passed at the next
16administration. A pupil shall take again only those parts of the
17examination he or she has not previously passed and may not retake
18any portion of the exit examination that he or she has previously
19passed.

20(f) Supplemental instruction shall be provided to any pupil who
21does not demonstrate sufficient progress toward passing the high
22school exit examination. To the extent that school districts have
23aligned their curriculum with the state academic content standards
24adopted by the state board, the curriculum for supplemental
25instruction shall reflect those standards and shall be designed to
26assist the pupils to succeed on the high school exit examination.
27This chapter does not require the provision of supplemental
28services using resources that are not regularly available to a school
29or school district, including summer school instruction. In no event
30shall any action taken as a result of this subdivision cause or require
31reimbursement by the Commission on State Mandates. Sufficient
32progress shall be determined on the basis of either of the following:

33(1) The results of the assessments administered pursuant to
34Article 4 (commencing with Section 60640) of Chapter 5 and the
35minimum levels of proficiency recommended by the state board
36pursuant to Section 60648.

37(2) The grades of the pupil and other indicators of academic
38achievement designated by the school district.

39

SEC. 406.  

Section 62002 of the Education Code is repealed.

40

SEC. 407.  

Section 62002.5 of the Education Code is repealed.

P217  1

SEC. 408.  

Section 62003 of the Education Code is repealed.

2

SEC. 409.  

Section 62004 of the Education Code is repealed.

3

SEC. 410.  

Section 62005 of the Education Code is repealed.

4

SEC. 411.  

Section 62005.5 of the Education Code is repealed.

5

SEC. 412.  

Section 63000 of the Education Code is amended
6to read:

7

63000.  

The provisions of this chapter shall apply to funds
8received for child care and development programs pursuant to
9Chapter 2 (commencing with Section 8200) of Part 6 of Division
101 of Title 1.

11

SEC. 413.  

Section 63001 of the Education Code is amended
12to read:

13

63001.  

A school district that, in a fiscal year, receives an
14apportionment for a program specified in Section 63000 shall use
15no less than 85 percent of that apportionment at schoolsites for
16direct services to pupils.

17

SEC. 414.  

Section 64000 of the Education Code is amended
18to read:

19

64000.  

(a) The provisions of this part shall apply to
20applications for funds under the following categorical programs:

21(1) Programs providing assistance to disadvantaged pupils under
22Section 6312 of Title 20 of the United States Code, and programs
23providing assistance for neglected or delinquent pupils who are at
24risk of dropping out of school, as funded by Section 6421 of Title
2520 of the United States Code.

26(2) Professional development programs established pursuant to
27Section 6601 of Title 20 of the United States Code.

28(3) Programs for tobacco use prevention funded by Section 7115
29of Title 20 of the United States Code.

30(4) Safe and Drug Free Schools and Communities programs
31established pursuant to Section 7113 of Title 20 of the United
32States Code.

33(b) A school district that elects to apply for any of these federal
34funds may submit to the department for approval, by the state
35board, a single consolidated application for approval or continuance
36of those federal categorical programs subject to this part.

37

SEC. 415.  

Section 7906 of the Government Code is amended
38to read:

39

7906.  

For school districts:

P218  1(a) “ADA” means a school district’s second principal
2apportionment units of average daily attendance as determined
3pursuant to Section 42238.05 of the Education Code, including
4average daily attendance in summer school, regional occupational
5centers and programs, and apprenticeship programs, and excluding
6average daily attendance in adult education programs. All other
7units of average daily attendance including, but not limited to,
8special day classes for special education pupils, shall be included.

9(1) For purposes of this subdivision, the average daily attendance
10of apprenticeship programs shall be determined pursuant to Section
1179149.1 of the Education Code.

12(2) For the 2008-09 fiscal year and each fiscal year thereafter,
13the average daily attendance of public school districts, including
14county superintendents of schools, serving kindergarten and grades
151 to 12, inclusive, or any part thereof, shall include the same
16amount of average daily attendance for classes for supplemental
17instruction and regional occupational centers and programs that
18was used for purposes of this section for the 2007-08 fiscal year.

19(b) “Foundation program level” means:

20(1) For the 1978-79 fiscal year, one thousand two hundred
21forty-one dollars ($1,241) for elementary school districts, one
22thousand three hundred twenty-two dollars ($1,322) for unified
23school districts, and one thousand four hundred twenty-seven
24dollars ($1,427) for high school districts.

25(2) For the 1979-80 fiscal year to the 1986-87 fiscal year,
26inclusive, the levels specified in paragraph (1) increased by the
27lesser of the change in cost of living or California per capita
28personal income for the preceding calendar year.

29(3) For the 1986-87 fiscal year, the levels specified in paragraph
30(2) increased by one hundred eighty dollars ($180) for elementary
31school districts, one hundred ninety-one dollars ($191) for unified
32school districts, and two hundred seven dollars ($207) for high
33school districts.

34(4) For the 1987-88 fiscal year, the levels specified in paragraph
35(3) increased by the lesser of the change in cost of living or
36California per capita personal income for the preceding calendar
37year.

38(5) For the 1988-89 fiscal year and each fiscal year thereafter,
39the foundation program level shall be the appropriations limit of
40the school district for the current fiscal year, plus amounts paid
P219  1for any nonreimbursed court or federal mandates imposed on or
2after November 6, 1979, less the sum of the following:

3(A) Interest earned on the proceeds of taxes during the current
4fiscal year.

5(B) The 50 percent of miscellaneous funds received during the
6current fiscal year that are from the proceeds of taxes.

7(C) Locally voted taxes received during the current fiscal year,
8such as parcel taxes or square foot taxes, unless for voter-approved
9bonded debt.

10(D) Any other local proceeds of taxes received during the current
11fiscal year, other than local taxes which count towards the revenue
12limit, such as excess bond revenues transferred to a district’s
13general fund pursuant to Section 15234 of the Education Code.

14(c) “Proceeds of taxes” shall be deemed to include subventions
15received from the state only if those subventions are for one of the
16following two purposes:

17(1) Basic aid subventions of one hundred twenty dollars ($120)
18per ADA.

19(2) Additional apportionments that, when added to the district’s
20local revenues as defined in Section 42238 of the Education Code,
21do not exceed the foundation program level for that district. In no
22case shall subventions received from the state for reimbursement
23of state mandates in accordance with the provisions of Section 6
24of Article XIII B of the California Constitution or of Section 17561
25or for reimbursement of court or federal mandates imposed on or
26 after November 6, 1979, be considered “proceeds of taxes” for
27purposes of this section.

28(d) Proceeds of taxes for a fiscal year shall not include any
29proceeds of taxes within the district’s beginning balance or reserve,
30unless those funds were not appropriated in a prior fiscal year.
31Funds that were appropriated to a reserve or other fund referenced
32in Section 5 of Article XIII B of the California Constitution shall
33be deemed to be appropriated for the purpose of this paragraph.

34(e) The remainder of the state apportionments, including special
35purpose apportionments and categorical aid subventions shall not
36be considered proceeds of taxes for a school district.

37(f) Each school district shall report to the Superintendent of
38Public Instruction and to the Director of Finance at least annually
39its appropriations limit, its appropriations subject to limitation, the
40amount of its state aid apportionments and subventions included
P220  1within the proceeds of taxes of the school district, and amounts
2excluded from its appropriations limit, at a time and in a manner
3prescribed by the Superintendent of Public Instruction and
4approved by the Director of Finance.

5(g) For the 1988-89 fiscal year and each fiscal year thereafter,
6nothing in paragraph (2) of subdivision (c) shall be so construed
7as to require that the amount determined pursuant to subdivision
8(b) be multiplied by the amount determined pursuant to subdivision
9(a) for purposes of determining the amount of state aid included
10in school district “proceeds of taxes” for purposes of this section.

11

SEC. 416.  

Section 50286 of the Government Code is amended
12to read:

13

50286.  

(a) If a contract is canceled under Section 50284, the
14owner shall pay a cancellation fee equal to 1212 percent of the
15current fair market value of the property, as determined by the
16county assessor as though the property were free of the contractual
17restriction.

18(b) The cancellation fee shall be paid to the county auditor, at
19the time and in the manner that the county auditor shall prescribe,
20and shall be allocated by the county auditor to each jurisdiction in
21the tax rate area in which the property is located in the same manner
22as the auditor allocates the annual tax increment in that tax rate
23area in that fiscal year.

24(c) Notwithstanding any other law, revenue received by a school
25district pursuant to this section shall be considered property tax
26revenue for purposes of Section 42238.02 of the Education Code,
27as implemented pursuant to Section 42238.03 of the Education
28Code, and revenue received by a county superintendent of schools
29pursuant to this section shall be considered property tax revenue
30for purposes of Article 4 (commencing with Section 2570) of
31Chapter 12 of Part 2 of Division 1 of Title 1 of the Education Code.

32

SEC. 417.  

Section 33492.78 of the Health and Safety Code is
33amended to read:

34

33492.78.  

(a) Section 33607.5 shall not apply to an agency
35created pursuant to this article. For purposes of Sections 42238.02,
3684750.5, and 84751 of the Education Code, funds allocated
37pursuant to this section shall be treated as if they were allocated
38pursuant to Section 33607.5.

39(1) This section shall apply to each redevelopment project area
40created pursuant to a redevelopment plan that contains the
P221  1provisions required by Section 33670 and is created pursuant to
2this article. All the amounts calculated pursuant to this section
3shall be calculated after the amount required to be deposited in the
4Low and Moderate Income Housing Fund pursuant to Sections
533334.2, 33334.3, and 33334.6, as modified by Section 33492.76,
6has been deducted from the total amount of tax-increment funds
7received by the agency in the applicable fiscal year.

8(2) The payments made pursuant to this section shall be in
9addition to any amounts the school district or districts and
10community college district or districts receive pursuant to
11subdivision (a) of Section 33670. The agency shall reduce its
12payments pursuant to this section to an affected school or
13community college district by any amount the agency has paid,
14directly or indirectly, pursuant to Section 33445, 33445.5, or 33446,
15or any provision of law other than this section for, or in connection
16with, a public facility owned or leased by that affected school or
17community college district.

18(3) (A) Of the total amount paid each year pursuant to this
19section to school districts, 43.9 percent shall be considered to be
20property taxes for the purposes of paragraph (1) of subdivision (i)
21of Section 42238.02 of the Education Code, and 56.1 percent shall
22not be considered to be property taxes for the purposes of that
23section, and shall be available to be used for educational facilities.

24(B) Of the total amount paid each year pursuant to this section
25to community college districts, 47.5 percent shall be considered
26to be property taxes for the purposes of Section 84750.5 of the
27Education Code, and 52.5 percent shall not be considered to be
28property taxes for the purposes of that section, and shall be
29available to be used for educational facilities.

30(C) Of the total amount paid each year pursuant to this section
31to county offices of education, 19 percent shall be considered to
32be property taxes for the purposes of paragraph (1) of subdivision
33(g) of Section 2574 of the Education Code, and 81 percent shall
34not be considered to be property taxes for the purposes of that
35section, and shall be available to be used for educational facilities.

36(D) Of the total amount paid each year pursuant to this section
37to special education, 19 percent shall be considered to be property
38taxes for the purposes of paragraph (1) of subdivision (j) of Section
3942238.02 of the Education Code, and 81 percent shall not be
P222  1considered to be property taxes for the purposes of that section,
2and shall be available to be used for educational facilities.

3(4) Local education agencies that use funds received pursuant
4to this section for educational facilities shall spend these funds at
5schools that are any one of the following:

6(A) Within the project area.

7(B) Attended by students from the project area.

8(C) Attended by students generated by projects that are assisted
9directly by the redevelopment agency.

10(D) Determined by a local education agency to be of benefit to
11the project area.

12(b) Commencing with the first fiscal year in which the agency
13receives tax increments, and continuing through the last fiscal year
14in which the agency receives tax increments, a redevelopment
15agency created pursuant to this article shall pay to each affected
16school and community college district an amount equal to the
17product of 25 percent times the percentage share of total property
18taxes collected that are allocated to each affected school or
19community college district, including any amount allocated to each
20district pursuant to Sections 97.03 and 97.035 of the Revenue and
21Taxation Code times the total of the tax increments received by
22 the agency after the amount required to be deposited in the Low
23and Moderate Income Housing Fund has been deducted.

24(c) Commencing with the 11th fiscal year in which the agency
25receives tax increments and continuing through the last fiscal year
26in which the agency receives tax increments, a redevelopment
27agency created pursuant to this article shall pay to each affected
28school and community college district, in addition to the amounts
29paid pursuant to subdivision (b), an amount equal to the product
30of 21 percent times the percentage share of total property taxes
31collected that are allocated to each affected school or community
32college district, including any amount allocated to each district
33pursuant to Sections 97.03 and 97.035 of the Revenue and Taxation
34Code times the total of the first adjusted tax increments received
35by the agency after the amount required to be deposited in the Low
36and Moderate Income Housing Fund has been deducted. The first
37adjusted tax increments received by the agency shall be calculated
38by applying the tax rate against the amount of assessed value by
39which the current year assessed value exceeds the first adjusted
40base year assessed value. The first adjusted base year assessed
P223  1value is the assessed value of the project area in the 10th fiscal
2year in which the agency receives tax increment.

3(d) Commencing with the 31st fiscal year in which the agency
4receives tax increments and continuing through the last fiscal year
5in which the agency receives tax increments, a redevelopment
6agency shall pay to the affected school and community college
7districts, in addition to the amounts paid pursuant to subdivisions
8(b) and (c), an amount equal to 14 percent times the percentage
9share of total property taxes collected that are allocated to each
10affected school or community college district, including any
11amount allocated to each district pursuant to Sections 97.03 and
1297.035 of the Revenue and Taxation Code times the total of the
13second adjusted tax increments received by the agency after the
14amount required to be deposited in the Low and Moderate Income
15Housing Fund has been deducted. The second adjusted tax
16increments received by the agency shall be calculated by applying
17the tax rate against the amount of assessed value by which the
18current year assessed value exceeds the second adjusted base year
19assessed value. The second adjusted base year assessed value is
20the assessed value of the project area in the 30th fiscal year in
21which the agency receives tax increments.

22(e) (1) The Legislature finds and declares both of the following:

23(A) The payments made pursuant to this section are necessary
24in order to alleviate the financial burden and detriment that affected
25school and community college districts may incur as a result of
26the adoption of a redevelopment plan, and payments made pursuant
27to this section will benefit redevelopment project areas.

28(B) The payments made pursuant to this section are the exclusive
29payments that are required to be made by a redevelopment agency
30to affected school and community college districts during the term
31of a redevelopment plan.

32(2) Notwithstanding any other provision of law, a redevelopment
33agency shall not be required, either directly or indirectly, as a
34measure to mitigate a significant environmental effect or as part
35of any settlement agreement or judgment brought in any action to
36contest the validity of a redevelopment plan pursuant to Section
3733501, to make any other payments to affected school or
38community college districts, or to pay for public facilities that will
39be owned or leased to an affected school or community college
40district.

P224  1(f) As used in this section, a “local education agency” includes
2a school district, a community college district, or a county office
3of education.

4

SEC. 418.  

Section 33607.5 of the Health and Safety Code is
5amended to read:

6

33607.5.  

(a) (1) This section shall apply to each
7redevelopment project area that, pursuant to a redevelopment plan
8which contains the provisions required by Section 33670, is either:
9(A) adopted on or after January 1, 1994, including later
10amendments to these redevelopment plans; or (B) adopted prior
11to January 1, 1994, but amended, after January 1, 1994, to include
12new territory. For plans amended after January 1, 1994, only the
13tax increments from territory added by the amendment shall be
14subject to this section. All the amounts calculated pursuant to this
15section shall be calculated after the amount required to be deposited
16in the Low and Moderate Income Housing Fund pursuant to
17Sections 33334.2, 33334.3, and 33334.6 has been deducted from
18the total amount of tax increment funds received by the agency in
19the applicable fiscal year.

20(2) The payments made pursuant to this section shall be in
21addition to any amounts the affected taxing entities receive
22pursuant to subdivision (a) of Section 33670. The payments made
23pursuant to this section to the affected taxing entities, including
24the community, shall be allocated among the affected taxing
25entities, including the community if the community elects to receive
26payments, in proportion to the percentage share of property taxes
27each affected taxing entity, including the community, receives
28during the fiscal year the funds are allocated, which percentage
29share shall be determined without regard to any amounts allocated
30to a city, a city and county, or a county pursuant to Sections 97.68
31and 97.70 of the Revenue and Taxation Code, and without regard
32to any allocation reductions to a city, a city and county, a county,
33a special district, or a redevelopment agency pursuant to Sections
3497.71, 97.72, and 97.73 of the Revenue and Taxation Code and
35Section 33681.12. The agency shall reduce its payments pursuant
36to this section to an affected taxing entity by any amount the agency
37has paid, directly or indirectly, pursuant to Section 33445, 33445.5,
3833445.6, 33446, or any other provision of law other than this
39section for, or in connection with, a public facility owned or leased
40by that affected taxing agency, except: (A)  any amounts the
P225  1agency has paid directly or indirectly pursuant to an agreement
2with a taxing entity adopted prior to January 1, 1994; or (B)  any
3amounts that are unrelated to the specific project area or
4amendment governed by this section. The reduction in a payment
5by an agency to a school district, community college district, or
6county office of education, or for special education, shall be
7subtracted only from the amount that otherwise would be available
8for use by those entities for educational facilities pursuant to
9paragraph (4). If the amount of the reduction exceeds the amount
10that otherwise would have been available for use for educational
11facilities in any one year, the agency shall reduce its payment in
12more than one year.

13(3) If an agency reduces its payment to a school district,
14community college district, or county office of education, or for
15special education, the agency shall do all of the following:

16(A) Determine the amount of the total payment that would have
17been made without the reduction.

18(B) Determine the amount of the total payment without the
19reduction which: (i) would have been considered property taxes;
20and (ii) would have been available to be used for educational
21facilities pursuant to paragraph (4).

22(C) Reduce the amount available to be used for educational
23facilities.

24(D) Send the payment to the school district, community college
25district, or county office of education, or for special education,
26with a statement that the payment is being reduced and including
27the calculation required by this subdivision showing the amount
28to be considered property taxes and the amount, if any, available
29for educational facilities.

30(4) (A) Except as specified in subparagraph (E), of the total
31amount paid each year pursuant to this section to school districts,
3243.3 percent shall be considered to be property taxes for the
33purposes of paragraph (1) of subdivision (h) of Section 42238 of
34the Education Code, as it read on January 1, 2013, and paragraph
35(1) of subdivision (i) of Section 42238.02 of the Education Code,
36and 56.7 percent shall not be considered to be property taxes for
37the purposes of that section and shall be available to be used for
38 educational facilities, including, in the case of amounts paid during
39the 2011-12 fiscal year through the 2015-16 fiscal year, inclusive,
P226  1land acquisition, facility construction, reconstruction, remodeling,
2maintenance, or deferred maintenance.

3(B) Except as specified in subparagraph (E), of the total amount
4paid each year pursuant to this section to community college
5districts, 47.5 percent shall be considered to be property taxes for
6the purposes of Section 84751 of the Education Code, and 52.5
7percent shall not be considered to be property taxes for the purposes
8of that section and shall be available to be used for educational
9facilities, including, in the case of amounts paid during the 2011-12
10fiscal year through the 2015-16 fiscal year, inclusive, land
11acquisition, facility construction, reconstruction, remodeling,
12maintenance, or deferred maintenance.

13(C) Except as specified in subparagraph (E), of the total amount
14paid each year pursuant to this section to county offices of
15education, 19 percent shall be considered to be property taxes for
16the purposes of Section 2558 of the Education Code, as it read on
17January 1, 2013, and Section 2574 of the Education Code, and 81
18percent shall not be considered to be property taxes for the purposes
19of that section and shall be available to be used for educational
20facilities, including, in the case of amounts paid during the 2011-12
21fiscal year through the 2015-16 fiscal year, inclusive, land
22acquisition, facility construction, reconstruction, remodeling,
23maintenance, or deferred maintenance.

24(D) Except as specified in subparagraph (E), of the total amount
25paid each year pursuant to this section for special education, 19
26percent shall be considered to be property taxes for the purposes
27of Section 56712 of the Education Code, and 81 percent shall not
28be considered to be property taxes for the purposes of that section
29and shall be available to be used for education facilities, including,
30in the case of amounts paid during the 2011-12 fiscal year through
31the 2015-16 fiscal year, inclusive, land acquisition, facility
32construction, reconstruction, remodeling, maintenance, or deferred
33maintenance.

34(E) If, pursuant to paragraphs (2) and (3), an agency reduces its
35payments to an educational entity, the calculation made by the
36agency pursuant to paragraph (3) shall determine the amount
37considered to be property taxes and the amount available to be
38used for educational facilities in the year the reduction was made.

39(5) Local education agencies that use funds received pursuant
40to this section for school facilities shall spend these funds at schools
P227  1that are: (A) within the project area, (B) attended by students from
2the project area, (C) attended by students generated by projects
3that are assisted directly by the redevelopment agency, or (D)
4determined by the governing board of a local education agency to
5be of benefit to the project area.

6(b) Commencing with the first fiscal year in which the agency
7receives tax increments and continuing through the last fiscal year
8in which the agency receives tax increments, a redevelopment
9agency shall pay to the affected taxing entities, including the
10community if the community elects to receive a payment, an
11amount equal to 25 percent of the tax increments received by the
12agency after the amount required to be deposited in the Low and
13Moderate Income Housing Fund has been deducted. In any fiscal
14year in which the agency receives tax increments, the community
15that has adopted the redevelopment project area may elect to
16receive the amount authorized by this paragraph.

17(c) Commencing with the 11th fiscal year in which the agency
18receives tax increments and continuing through the last fiscal year
19in which the agency receives tax increments, a redevelopment
20agency shall pay to the affected taxing entities, other than the
21community which has adopted the project, in addition to the
22amounts paid pursuant to subdivision (b) and after deducting the
23amount allocated to the Low and Moderate Income Housing Fund,
24an amount equal to 21 percent of the portion of tax increments
25received by the agency, which shall be calculated by applying the
26tax rate against the amount of assessed value by which the current
27year assessed value exceeds the first adjusted base year assessed
28value. The first adjusted base year assessed value is the assessed
29value of the project area in the 10th fiscal year in which the agency
30receives tax increment revenues.

31(d) Commencing with the 31st fiscal year in which the agency
32receives tax increments and continuing through the last fiscal year
33in which the agency receives tax increments, a redevelopment
34agency shall pay to the affected taxing entities, other than the
35community which has adopted the project, in addition to the
36amounts paid pursuant to subdivisions (b) and (c) and after
37deducting the amount allocated to the Low and Moderate Income
38Housing Fund, an amount equal to 14 percent of the portion of tax
39increments received by the agency, which shall be calculated by
40applying the tax rate against the amount of assessed value by which
P228  1the current year assessed value exceeds the second adjusted base
2year assessed value. The second adjusted base year assessed value
3is the assessed value of the project area in the 30th fiscal year in
4which the agency receives tax increments.

5(e) (1) Prior to incurring any loans, bonds, or other
6indebtedness, except loans or advances from the community, the
7agency may subordinate to the loans, bonds, or other indebtedness
8the amount required to be paid to an affected taxing entity by this
9section, provided that the affected taxing entity has approved these
10subordinations pursuant to this subdivision.

11(2) At the time the agency requests an affected taxing entity to
12subordinate the amount to be paid to it, the agency shall provide
13the affected taxing entity with substantial evidence that sufficient
14funds will be available to pay both the debt service and the
15payments required by this section, when due.

16(3) Within 45 days after receipt of the agency’s request, the
17affected taxing entity shall approve or disapprove the request for
18subordination. An affected taxing entity may disapprove a request
19for subordination only if it finds, based upon substantial evidence,
20that the agency will not be able to pay the debt payments and the
21amount required to be paid to the affected taxing entity. If the
22affected taxing entity does not act within 45 days after receipt of
23the agency’s request, the request to subordinate shall be deemed
24approved and shall be final and conclusive.

25(f) (1) The Legislature finds and declares both of the following:

26(A) The payments made pursuant to this section are necessary
27in order to alleviate the financial burden and detriment that affected
28taxing entities may incur as a result of the adoption of a
29redevelopment plan, and payments made pursuant to this section
30will benefit redevelopment project areas.

31(B) The payments made pursuant to this section are the exclusive
32payments that are required to be made by a redevelopment agency
33to affected taxing entities during the term of a redevelopment plan.

34(2) Notwithstanding any other provision of law, a redevelopment
35agency shall not be required, either directly or indirectly, as a
36measure to mitigate a significant environmental effect or as part
37of any settlement agreement or judgment brought in any action to
38contest the validity of a redevelopment plan pursuant to Section
3933501, to make any other payments to affected taxing entities, or
P229  1to pay for public facilities that will be owned or leased to an
2affected taxing entity.

3(g) As used in this section, a “local education agency” is a school
4district, a community college district, or a county office of
5education.

6

SEC. 419.  

Section 33684 of the Health and Safety Code is
7amended to read:

8

33684.  

(a) (1) This section shall apply to each redevelopment
9project area that, pursuant to a redevelopment plan that contains
10the provisions required by Section 33670, meets any of the
11following:

12(A) Was adopted on or after January 1, 1994, including later
13amendments to these redevelopment plans.

14(B) Was adopted prior to January 1, 1994, but amended after
15January 1, 1994, to include new territory. For plans amended after
16January 1, 1994, only the tax increments from territory added by
17the amendment shall be subject to this section.

18(C) Was adopted prior to January 1, 1994, but amended after
19January 1, 1994, to increase the limitation on the number of dollars
20to be allocated to the agency or that increased, or eliminated,
21pursuant to paragraph (1) of subdivision (e) of Section 33333.6,
22the time limit on the establishing of loans, advances, and
23indebtedness established pursuant to paragraphs (1) and (2) of
24subdivision (a) of Section 33333.6, as those paragraphs read on
25December 31, 2001, or that lengthened the period during which
26the redevelopment plan is effective if the redevelopment plan being
27amended contains the provisions required by subdivision (b) of
28Section 33670.

29(2) This section shall apply to passthrough payments, as required
30by Sections 33607.5 and 33607.7, for the 2003-04 to 2008-09,
31inclusive, fiscal years. For purposes of this section, a passthrough
32payment shall be considered the responsibility of an agency in the
33fiscal year the agency receives the tax increment revenue for which
34the passthrough payment is required.

35(3) For purposes of this section, “local educational agency” is
36a school district, a community college district, or a county office
37of education.

38(b) On or before October 1, 2008, each agency shall submit a
39report to the county auditor and to each affected taxing entity that
40describes each project area, including its location, purpose, date
P230  1established, date or dates amended, and statutory and contractual
2passthrough requirements. The report shall specify, by year, for
3each project area all of the following:

4(1) Gross tax increment received between July 1, 2003, and
5June 30, 2008, that is subject to a passthrough payment pursuant
6to Sections 33607.5 and 33607.7, and accumulated gross tax
7increments through June 30, 2003.

8(2) Total passthrough payments to each taxing entity that the
9agency deferred pursuant to a subordination agreement approved
10by the taxing agency under subdivision (e) of Section 33607.5 and
11the dates these deferred payments will be made.

12(3) Total passthrough payments to each taxing entity that the
13agency was responsible to make between July 1, 2003, and June
1430, 2008, pursuant to Sections 33607.5 and 33607.7, excluding
15payments identified in paragraph (2).

16(4) Total passthrough payments that the agency disbursed to
17each taxing entity between July 1, 2003, and June 30, 2008,
18pursuant to Sections 33607.5 and 33607.7.

19(5) Total sums reported in paragraph (4) for each local
20educational agency that are considered to be property taxes under
21the provisions of paragraph (4) of subdivision (a) of Section
2233607.5 and Section 33607.7.

23(6) Total outstanding payment obligations to each taxing entity
24as of June 30, 2008. This amount shall be calculated by subtracting
25the amounts reported in paragraph (4) from paragraph (3) and
26reporting any positive difference.

27(7) Total outstanding overpayments to each taxing entity as of
28June 30, 2008. This amount shall be calculated by subtracting the
29amounts reported in paragraph (3) from paragraph (4) and reporting
30any positive difference.

31(8) The dates on which the agency made payments identified
32in paragraph (6) or intends to make the payments identified in
33paragraph (6).

34(9) A revised estimate of the agency’s total outstanding
35passthrough payment obligation to each taxing agency pursuant
36to paragraph (6) of subdivision (b) and paragraph (6) of subdivision
37(c) and the dates on which the agency intends to make these
38payments.

39(c) On or before October 1, 2009, each agency shall submit a
40report to the county auditor and to each affected taxing entity that
P231  1describes each project area, including its location, purpose, date
2established, date or dates amended, and statutory and contractual
3passthrough requirements. The report shall specify, by year, for
4each project area all of the following:

5(1) Gross tax increment received between July 1, 2008, and
6June 30, 2009, that is subject to a passthrough payment pursuant
7to Sections 33607.5 and 33607.7.

8(2) Total passthrough payments to each taxing entity that the
9agency deferred pursuant to a subordination agreement approved
10by the taxing entity under subdivision (e) of Section 33607.5 and
11the dates these deferred payments will be made.

12(3) Total passthrough payments to each taxing entity that the
13agency was responsible to make between July 1, 2008, and June
1430, 2009, pursuant to Sections 33607.5 and 33607.7, excluding
15payments identified in paragraph (2).

16(4) Total passthrough payments that the agency disbursed to
17each taxing entity between July 1, 2008, and June 30, 2009,
18pursuant to Sections 33607.5 and 33607.7.

19(5) Total sums reported in paragraph (4) for each local
20educational agency that are considered to be property taxes under
21the provisions of paragraph (4) of subdivision (a) of Sections
2233607.5 and 33607.7.

23(6) Total outstanding payment obligations to each taxing entity
24as of June 30, 2009. This amount shall be calculated by subtracting
25the amounts reported in paragraph (4) from paragraph (3) and
26reporting any positive difference.

27(7) Total outstanding overpayments to each taxing entity as of
28June 30, 2009. This amount shall be calculated by subtracting the
29amounts reported in paragraph (3) from paragraph (4) and reporting
30any positive difference.

31(8) The dates on which the agency made payments identified
32in paragraph (6) or intends to make the payments identified in
33paragraph (6).

34(d) If an agency reports pursuant to paragraph (6) of subdivision
35(b) or paragraph (6) of subdivision (c) that it has an outstanding
36passthrough payment obligation to any taxing entity, the agency
37shall submit annual updates to the county auditor on October 1 of
38each year until such time as the county auditor notifies the agency
39in writing that the agency’s outstanding payment obligations have
40been fully satisfied. The report shall contain both of the following:

P232  1(1) A list of payments to each taxing agency and to the
2Educational Revenue Augmentation Fund pursuant to subdivision
3(j) that the agency disbursed after the agency’s last update filed
4pursuant to this subdivision or, if no update has been filed, after
5the agency’s submission of the reports required pursuant to
6subdivisions (b) and (c). The list of payments shall include only
7those payments that address obligations identified pursuant to
8paragraph (6) of subdivision (b) and paragraph (6) of subdivision
9(c). The update shall specify the date on which each payment was
10disbursed.

11(2) A revised estimate of the agency’s total outstanding
12passthrough payment obligation to each taxing agency pursuant
13to paragraph (6) of subdivision (b) and paragraph (6) of subdivision
14(c) and the dates on which the agency intends to make these
15payments.

16(e) The county auditor shall review each agency’s reports
17submitted pursuant to subdivisions (b) and (c) and any other
18relevant information to determine whether the county auditor
19concurs with the information included in the reports.

20(1) If the county auditor concurs with the information included
21in a report, the county auditor shall issue a finding of concurrence
22within 45 days.

23(2) If the county auditor does not concur with the information
24included in a report or considers the report to be incomplete, the
25county auditor shall return the report to the agency within 45 days
26with information identifying the elements of the report with which
27the county auditor does not concur or considers to be incomplete.
28The county auditor shall provide the agency at least 15 days to
29respond to concerns raised by the county auditor regarding the
30information contained in the report. An agency may revise a report
31that has not received a finding of concurrence and resubmit it to
32the county auditor.

33(3) If an agency and county auditor do not agree regarding the
34passthrough requirements of Sections 33607.5 and 33607.7, an
35agency may submit a report pursuant to subdivisions (b) and (c)
36and a statement of dispute identifying the issue needing resolution.

37(4) An agency may amend a report for which the county auditor
38has issued a finding of concurrence and resubmit the report
39pursuant to paragraphs (1), (2), and (3) if any of the following
40apply:

P233  1(A) The county auditor and agency agree that an issue identified
2in the agency’s statement of dispute has been resolved and the
3agency proposes to modify the sections of the report to conform
4with the resolution of the statement of dispute.

5(B) The county auditor and agency agree that the amount of
6gross tax increment or the amount of a passthrough payment to a
7taxing entity included in the report is not accurate.

8(5) The Controller may revoke a finding of concurrence and
9direct the agency to resubmit a report to the county auditor pursuant
10to paragraphs (1), (2), and (3) if the Controller finds significant
11errors in a report.

12(f) On or before December 15, 2008, and annually thereafter
13through 2014, the county auditor shall submit a report to the
14Controller that includes all of the following:

15(1) The name of each redevelopment project area in the county
16for which an agency must submit a report pursuant to subdivision
17 (b) or (c) and information as to whether the county auditor has
18issued a finding of concurrence regarding the report.

19(2) A list of the agencies for which the county auditor has issued
20a finding of concurrence for all project areas identified in paragraph
21(1).

22(3) A list of agencies for which the county auditor has not issued
23a finding of concurrence for all project areas identified in paragraph
24(1).

25(4) Using information applicable to agencies listed in paragraph
26(2), the county auditor shall report all of the following:

27(A) The total sums reported by each redevelopment agency
28related to each taxing entity pursuant to paragraphs (1) to (7),
29inclusive, of subdivision (b) and, on or after December 15, 2009,
30pursuant to paragraphs (1) to (7), inclusive, of subdivision (c).

31(B) The names of agencies that have outstanding passthrough
32payment obligations to a local educational agency that exceed the
33amount of outstanding passthrough payments to the local
34educational agency.

35(C) Summary information regarding agencies’ stated plans to
36pay the outstanding amounts identified in paragraph (6) of
37subdivision (b) and paragraph (6) of subdivision (c) and the actual
38amounts that have been deposited into the county Educational
39Revenue Augmentation Fund pursuant to subdivision (j).

P234  1(D) All unresolved statements of dispute filed by agencies
2pursuant to paragraph (3) of subdivision (e) and the county
3auditor’s analyses supporting the county auditor’s conclusions
4regarding the issues under dispute.

5(g) (1) On or before February 1, 2009, and annually thereafter
6through 2015, the Controller shall submit a report to the Legislative
7Analyst’s Office and the Department of Finance and provide a
8copy to the Board of Governors of the California Community
9Colleges. The report shall provide information as follows:

10(A) Identify agencies for which the county auditor has issued
11a finding of concurrence for all reports required under subdivisions
12(b) and (c).

13(B) Identify agencies for which the county auditor has not issued
14a finding of concurrence for all reports required pursuant to
15subdivision (b) and all reports required pursuant to subdivision (c)
16or for which a finding of concurrence has been withdrawn by the
17Controller.

18(C) Summarize the information reported in paragraph (4) of
19subdivision (f). This summary shall identify, by local educational
20agency and by year, the total amount of passthrough payments that
21each local educational agency received, was entitled to receive,
22subordinated, or that has not yet been paid, and the portion of these
23amounts that are considered to be property taxes for purposes of
24Sections 2558 and 42238 of the Education Code, as those sections
25read on January 1, 2013, and Section 84751 of the Education Code.
26The report shall identify, by agency, the amounts that have been
27deposited to the county Educational Revenue Augmentation Fund
28pursuant to subdivision (j).

29(D) Summarize the statements of dispute. The Controller shall
30specify the status of these disputes, including whether the
31Controller or other state entity has provided instructions as to how
32these disputes should be resolved.

33(E) Identify agencies that have outstanding passthrough payment
34liabilities to a local educational agency that exceed the amount of
35outstanding passthrough overpayments to the local educational
36agency.

37(2) On or before February 1, 2009, and annually thereafter
38through 2015, the Controller shall submit a report to the State
39Department of Education and the Board of Governors of the
40California Community Colleges. The report shall identify, by local
P235  1educational agency and by year of receipt, the total amount of
2passthrough payments that the local educational agency received
3from redevelopment agencies listed in subparagraph (A) of
4paragraph (1).

5(h) (1) On or before April 1, 2009, and annually thereafter until
6April 1, 2015, the State Department of Education shall do all of
7the following:

8(A) Calculate for each school district for the 2003-04 to
92007-08, inclusive, fiscal years the difference between 43.3 percent
10of the amount reported pursuant to paragraph (2) of subdivision
11(g) and the amount subtracted from each school district’s
12apportionment pursuant to paragraph (6) of subdivision (h) of
13Section 42238 of the Education Code, as it read on January 1,
142013.

15(B) Calculate for each county superintendent of schools for the
162003-04 to 2007-08, inclusive, fiscal years the difference between
1719 percent of the amount reported pursuant to paragraph (2) of
18subdivision (g) and the amount received pursuant to Sections
1933607.5 and 33607.7 and subtracted from each county
20superintendent of schools apportionment pursuant to subdivision
21(c) of Section 2558 of the Education Code, as it read on January
221, 2013.

23(C) Notify each school district and county superintendent of
24schools for which any amount calculated in subparagraph (A) or
25(B) is nonzero as to the reported change and its resulting impact
26on apportionments. After April 1, 2009, however, the department
27shall not notify a school district or county superintendent of schools
28if the amount calculated in subparagraph (A) or (B) is the same
29amount as the department calculated in the preceding year.

30(2) On or before April 1, 2010, and annually thereafter until
31April 1, 2015, the State Department of Education shall do all of
32the following:

33(A) Calculate for each school district for the 2008-09 fiscal
34year the difference between 43.3 percent of the amount reported
35pursuant to paragraph (2) of subdivision (g) and the amount
36subtracted from each school district’s apportionment pursuant to
37paragraph (6) of subdivision (h) of Section 42238 of the Education
38Code, as it read on January 1, 2013.

39(B) Calculate for each county superintendent of schools for the
402008-09 fiscal year the difference between 19 percent of the
P236  1amount reported pursuant to paragraph (2) of subdivision (g) and
2the amount received pursuant to Sections 33607.5 and 33607.7
3and subtracted from each county superintendent of schools
4apportionment pursuant to subdivision (c) of Section 2558 of the
5Education Code, as it read on January 1, 2013.

6(C) Notify each school district and county superintendent of
7schools for which any amount calculated in subparagraph (A) or
8(B) is nonzero as to the reported change and its resulting impact
9on revenue limit apportionments. After April 1, 2010, however,
10the department shall not notify a school district or county
11superintendent of schools if the amount calculated in subparagraph
12(A) or (B) is the same amount as the department calculated in the
13preceding year.

14(3) For the purposes of Article 3 (commencing with Section
1541330) of Chapter 3 of Part 24 of Division 3 of Title 2 of the
16Education Code, the amounts reported to each school district and
17county superintendent of schools in the notification required
18pursuant to subparagraph (C) of paragraph (1) and subparagraph
19(C) of paragraph (2) shall be deemed to be apportionment
20significant audit exceptions and the date of receipt of that
21notification shall be deemed to be the date of receipt of the final
22audit report that includes those audit exceptions.

23(4) On or before March 1, 2009, and annually thereafter until
24March 1, 2015, the Board of Governors of the California
25Community Colleges shall do all of the following:

26(A) Calculate for each community college district for the
272003-04 to 2007-08, inclusive, fiscal years the difference between
2847.5 percent of the amount reported pursuant to paragraph (2) of
29subdivision (g) and the amount subtracted from each district’s total
30revenue owed pursuant to subdivision (d) of Section 84751 of the
31Education Code.

32(B) Notify each community college district for which any
33amount calculated in subparagraph (A) is nonzero as to the reported
34change and its resulting impact on apportionments. After March
351, 2009, however, the board shall not notify a school district or
36county superintendent of schools if the amount calculated in
37subparagraph (A) is the same amount as the board calculated in
38the preceding year.

P237  1(5) On or before March 1, 2010, and annually thereafter until
2March 1, 2015, the Board of Governors of the California
3Community Colleges shall do all of the following:

4(A) Calculate for each community college district for the
52003-04 to 2007-08, inclusive, fiscal years the difference between
647.5 percent of the amount reported pursuant to paragraph (2) of
7subdivision (g) and the amount subtracted from each district’s total
8revenue owed pursuant to subdivision (d) of Section 84751 of the
9Education Code.

10(B) Notify each community college district for which any
11amount calculated in subparagraph (A) is nonzero as to the reported
12change and its resulting impact on revenue apportionments. After
13March 1, 2010, however, the board shall not notify a community
14college district if the amount calculated in subparagraph (A) is the
15same amount as the board calculated in the preceding year.

16(6) A community college district may submit documentation to
17the Board of Governors of the California Community Colleges
18showing that all or part of the amount reported to the district
19pursuant to subparagraph (B) of paragraph (4) and subparagraph
20(B) of paragraph (5) was previously reported to the California
21Community Colleges for the purpose of the revenue level
22calculations made pursuant to Section 84751 of the Education
23Code. Upon acceptance of the documentation, the board shall
24adjust the amounts calculated in paragraphs (4) and (5) accordingly.

25(7) The Board of Governors of the California Community
26Colleges shall make corrections in any amounts allocated in any
27fiscal year to each community college district for which any amount
28calculated in paragraphs (4) and (5) is nonzero so as to account
29for the changes reported pursuant to paragraph (4) of subdivision
30(b) and paragraph (4) of subdivision (c). The board may make the
31corrections over a period of time, not to exceed five years.

32(i) (1) After February 1, 2009, for an agency listed on the most
33recent Controller’s report pursuant to subparagraph (B) or (E) of
34paragraph (1) of subdivision (g), all of the following shall apply:

35(A) The agency shall be prohibited from adding new project
36areas or expanding existing project areas. For purposes of this
37paragraph, “project area” has the same meaning as in Sections
3833320.1 to 33320.3, inclusive, and Section 33492.3.

39(B) The agency shall be prohibited from issuing new bonds,
40notes, interim certificates, debentures, or other obligations, whether
P238  1funded, refunded, assumed, or otherwise, pursuant to Article 5
2(commencing with Section 33640).

3(C) The agency shall be prohibited from encumbering any funds
4or expending any moneys derived from any source, except that
5the agency may encumber funds and expend funds to pay, if any,
6all of the following:

7(i) Bonds, notes, interim certificates, debentures, or other
8 obligations issued by an agency before the imposition of the
9prohibition in subparagraph (B) whether funded, refunded,
10assumed, or otherwise, pursuant to Article 5 (commencing with
11Section 33460).

12(ii) Loans or moneys advanced to the agency, including, but not
13limited to, loans from federal, state, local agencies, or a private
14entity.

15(iii) Contractual obligations that, if breached, could subject the
16agency to damages or other liabilities or remedies.

17(iv) Obligations incurred pursuant to Section 33445.

18(v) Indebtedness incurred pursuant to Section 33334.2 or
1933334.6.

20(vi) Obligations incurred pursuant to Section 33401.

21(vii) An amount, to be expended for the monthly operation and
22administration of the agency, that may not exceed 75 percent of
23the average monthly amount spent for those purposes in the fiscal
24year preceding the fiscal year in which the agency was first listed
25on the Controller’s report pursuant to subparagraph (B) or (E) of
26paragraph (1) of subdivision (g).

27(2) After February 1, 2009, an agency identified in subparagraph
28(B) or (E) of paragraph (1) of subdivision (g) shall incur interest
29charges on any passthrough payment that is made to a local
30educational agency more than 60 days after the close of the fiscal
31year in which the passthrough payment was required. Interest shall
32be charged at a rate equal to 150 percent of the current Pooled
33Money Investment Account earnings annual yield rate and shall
34be charged for the period beginning 60 days after the close of the
35fiscal year in which the passthrough payment was due through the
36 date that the payment is made.

37(3) The Controller, with the concurrence of the Director of
38Finance, may waive the provisions of paragraphs (1) and (2) for
39a period of up to 12 months if the Controller determines all of the
40following:

P239  1(A) The county auditor has identified the agency in its most
2recent report issued pursuant to paragraph (2) of subdivision (f)
3as an agency for which the auditor has issued a finding of
4concurrence for all reports required pursuant to subdivisions (b)
5and (c).

6(B) The agency has filed a statement of dispute on an issue or
7issues that, in the opinion of the Controller, are likely to be resolved
8in a manner consistent with the agency’s position.

9(C) The agency has made passthrough payments to local
10educational agencies and the county Educational Revenue
11Augmentation Fund, or has had funds previously withheld by the
12auditor, in amounts that would satisfy the agency’s passthrough
13payment requirements to local educational agencies if the issue or
14issues addressed in the statement of dispute were resolved in a
15manner consistent with the agency’s position.

16(D) The agency would sustain a fiscal hardship if it made
17passthrough payments to local educational agencies and the county
18Educational Revenue Augmentation Fund in the amounts estimated
19by the county auditor.

20(j) Notwithstanding any other provision of law, if an agency
21report submitted pursuant to subdivision (b) or (c) indicates
22outstanding payment obligations to a local educational agency,
23the agency shall make these outstanding payments as follows:

24(1) Of the outstanding payments owed to school districts,
25including any interest payments pursuant to paragraph (2) of
26subdivision (i), 43.3 percent shall be deposited in the county
27Educational Revenue Augmentation Fund and the remainder shall
28be allocated to the school district or districts.

29(2) Of the outstanding payments owed to community college
30districts, including any interest payments pursuant to paragraph
31(2) of subdivision (i), 47.5 percent shall be deposited in the county
32Educational Revenue Augmentation Fund and the remainder shall
33be allocated to the community college district or districts.

34(3) Of the outstanding payments owed to county offices of
35education, including any interest payments pursuant to paragraph
36(2) of subdivision (i), 19 percent shall be deposited in the county
37Educational Revenue Augmentation Fund and the remainder shall
38be allocated to the county office of education.

39(k) (1) This section shall not be construed to increase any
40allocations of excess, additional, or remaining funds that would
P240  1otherwise have been allocated to cities, counties, cities and
2counties, or special districts pursuant to clause (i) of subparagraph
3(B) of paragraph (4) of subdivision (d) of Section 97.2 of, clause
4(i) of subparagraph (B) of paragraph (4) of subdivision (d) of
5Section 97.3 of, or Article 4 (commencing with Section 98) of
6Chapter 6 of Part 0.5 of Division 1 of, the Revenue and Taxation
7Code had this section not been enacted.

8(2) Notwithstanding any other provision of law, no funds
9deposited in the county Educational Revenue Augmentation Fund
10pursuant to subdivision (j) shall be distributed to a community
11college district.

12(l) A county may require an agency to reimburse the county for
13any expenses incurred by the county in performing the services
14required by this section.

15

SEC. 420.  

Section 95 of the Revenue and Taxation Code is
16amended to read:

17

95.  

For purposes of this chapter:

18(a) “Local agency” means a city, county, and special district.

19(b) “Jurisdiction” means a local agency, school district,
20community college district, or county superintendent of schools.
21A jurisdiction as defined in this subdivision is a “district” for
22purposes of Section 1 of Article XIII A of the California
23Constitution.

24For jurisdictions located in more than one county, the county
25auditor of each county in which that jurisdiction is located shall,
26for the purposes of computing the amount for that jurisdiction
27pursuant to this chapter, treat the portion of the jurisdiction located
28within that county as a separate jurisdiction.

29(c) “Property tax revenue” includes the amount of state
30reimbursement for the homeowners’ exemption. “Property tax
31revenue” does not include the amount of property tax levied for
32the purpose of making payments for the interest and principal on
33either of the following:

34(1) General obligation bonds or other indebtedness approved
35by the voters prior to July 1, 1978, including tax rates levied
36pursuant to Part 10 (commencing with Section 15000) of Division
371 of, and Sections 39308 and 39311 and former Sections 81338
38and 81341 of the Education Code, and Section 26912.7 of the
39Government Code.

P241  1(2) Bonded indebtedness for the acquisition or improvement of
2real property approved by two-thirds of the voters on or after June
34, 1986.

4(d) “Taxable assessed value” means total assessed value minus
5all exemptions other than the homeowners’ and business inventory
6exemptions.

7(e) “Jurisdictional change” includes any change of organization,
8as defined in Section 56021 of the Government Code and a
9reorganization, as defined in Section 56073 of the Government
10Code. “Jurisdictional change” also includes any change in the
11boundary of those special districts that are not under the jurisdiction
12of a local agency formation commission.

13“Jurisdictional change” also includes a functional consolidation
14where two or more local agencies, except two or more counties,
15exchange or otherwise reassign functions and any change in the
16boundaries of a school district or community college district or
17county superintendent of schools.

18(f) “School entities” means school districts, community college
19districts, the Educational Revenue Augmentation Fund, and county
20superintendents of schools.

21(g) Except as otherwise provided in this subdivision, “tax rate
22area” means a specific geographic area all of which is within the
23jurisdiction of the same combination of local agencies and school
24entities for the current fiscal year.

25In the case of a jurisdictional change pursuant to Section 99, the
26area subject to the change shall constitute a new tax rate area,
27except that if the area subject to change is within the same
28combinations of local agencies and school entities as an existing
29tax rate area, the two tax rate areas may be combined into one tax
30rate area.

31Existing tax rate areas having the same combinations of local
32agencies and school entities may be combined into one tax rate
33area. For the combination of existing tax rate areas, the factors
34 used to allocate the annual tax increment pursuant to Section 98
35shall be determined by calculating a weighted average of the annual
36tax increment factors used in the tax rate areas being combined.

37(h) “State assistance payments” means:

38(1) For counties, amounts determined pursuant to subdivision
39(b) of Section 16260 of the Government Code, increased by the
40amount specified for each county pursuant to Section 94 of Chapter
P242  1282 of the Statutes of 1979, with the resultant sum reduced by an
2amount derived by the calculation made pursuant to Section 16713
3of the Welfare and Institutions Code.

4(2) For cities, 82.91 percent of the amounts determined pursuant
5to subdivisions (b) and (i) of Section 16250 of the Government
6Code, plus for any city an additional amount equal to one-half of
7the amount of any outstanding debt as of June 30, 1978, for
8“museums” as shown in the Controller’s “Annual Report of
9Financial Transactions of Cities for Fiscal Year 1977-78.”

10(3) For special districts, 95.24 percent of the amounts received
11pursuant to Chapter 3 (commencing with Section 16270) of Part
121.5 of Division 4 of Title 2 of the Government Code, Section 35.5
13of Chapter 332 of the Statutes of 1978, and Chapter 12 of the
14Statutes of 1979.

15(i) “City clerk” means the clerk of the governing body of a city
16or city and county.

17(j) “Executive officer” means the executive officer of a local
18agency formation commission.

19(k) “City” means any city whether general law or charter, except
20a city and county.

21(l) “County” means any chartered or general law county.
22“County” includes a city and county.

23(m) “Special district” means any agency of the state for the local
24performance of governmental or proprietary functions within
25limited boundaries. “Special district” includes a county service
26area, a maintenance district or area, an improvement district or
27improvement zone, or any other zone or area, formed for the
28purpose of designating an area within which a property tax rate
29will be levied to pay for a service or improvement benefiting that
30area. “Special district” includes the Bay Area Air Quality
31Management District. “Special district” does not include a city, a
32county, a school district, or a community college district. “Special
33district” does not include any agency that is not authorized by
34statute to levy a property tax rate. However, any special district
35authorized to levy a property tax by the statute under which the
36district was formed shall be considered a special district.
37Additionally, a county free library established pursuant to Article
381 (commencing with Section 19100) of Chapter 6 of Part 11 of
39Division 1 of Title 1 of the Education Code, and for which a
P243  1property tax was levied in the 1977-78 fiscal year, shall be
2considered a special district.

3(n) “Excess tax school entity” means an educational agency for
4which the amount of the state funding entitlement determined
5under Section 2575, 84750.5, or 84751 of the Education Code, as
6appropriate, is zero, and as described in subdivision (o) of Section
742238.02 of the Education Code, as implemented by Section
842238.03 of the Education Code.

9

SEC. 421.  

Section 196.4 of the Revenue and Taxation Code
10 is amended to read:

11

196.4.  

(a) In the 1991-92 fiscal year, the county auditor of an
12eligible county, proclaimed by the Governor to be in a state of
13disaster as a result of the Oakland/Berkeley Fire that occurred in
14October 1991, shall certify to the Director of Finance an estimate
15of the total amount of the reduction in property tax revenues on
16both the regular secured roll and the supplemental roll for that
17fiscal year resulting from the reassessment of eligible properties
18by the county assessor pursuant to Section 170, except that the
19amount certified shall not include any estimated property tax
20revenue reductions to school districts (other than basic state aid
21school districts), county offices of education, and community
22college districts.

23(b) In the 1991-92 fiscal year, the county auditor of an eligible
24county, proclaimed by the Governor to be in a state of disaster as
25a result of the Painted Cave Fire that occurred in June 1990, shall
26certify to the Director of Finance an estimate of the total amount
27of the reduction in property tax revenues on both the regular
28secured roll and the supplemental roll for the 1990-91 fiscal year
29resulting from the reassessment of eligible properties by the county
30assessor pursuant to Section 170, except that the amount certified
31shall not include any estimated property tax revenue reductions to
32school districts (other than basic aid school districts), county offices
33of education, and community college districts.

34(c) For purposes of this section, “basic state aid school district”
35means any school district that does not receive a state
36apportionment pursuant to subdivision (h) of Section 42238 of the
37Education Code, as it read on January 1, 2013, but receives from
38the state only a basic apportionment pursuant to Section 6 of Article
39IX of the California Constitution.

P244  1

SEC. 422.  

Section 903.7 of the Welfare and Institutions Code
2 is amended to read:

3

903.7.  

(a) There is in the State Treasury the Foster Children
4and Parent Training Fund. The moneys contained in the fund shall
5be used exclusively for the purposes set forth in this section.

6(b) For each fiscal year beginning with the 1981-82 fiscal year,
7except as provided in Sections 15200.1, 15200.2, 15200.3, 15200.8,
8and 15200.81, and Section 17704 of the Family Code, the
9Department of Child Support Services shall determine the amount
10equivalent to the net state share of foster care collections
11attributable to the enforcement of parental fiscal liability pursuant
12to Sections 903, 903.4, and 903.5. On July 1, 1982, and every three
13months thereafter, the department shall notify the Chancellor of
14the Community Colleges, the Department of Finance, and the
15Superintendent of Public Instruction of the above-specified amount.
16The Department of Child Support Services shall authorize the
17quarterly transfer of any portion of this amount for any particular
18fiscal year exceeding three million seven hundred fifty thousand
19dollars ($3,750,000) of the net state share of foster care collections
20to the Treasurer for deposit in the Foster Children and Parent
21Training Fund, except that, commencing with the 2002-03 fiscal
22year, a total of not more than three million dollars ($3,000,000)
23may be transferred to the fund in any fiscal year.

24(c) (1) If sufficient moneys are available in the Foster Children
25and Parent Training Fund, up to three million dollars ($3,000,000)
26shall be allocated for the support of foster parent training programs
27conducted in community colleges. The maximum amount
28authorized to be allocated pursuant to this subdivision shall be
29adjusted annually by a cost-of-living increase each year based on
30the percentage given to discretionary education programs. Funds
31for the training program shall be provided in a separate budget
32item in that portion of the Budget Act pertaining to the Chancellor
33of the California Community Colleges, to be deposited in a separate
34bank account by the Chancellor of the California Community
35Colleges.

36(2) The chancellor shall use these funds exclusively for foster
37parent training, as specified by the chancellor in consultation with
38the California State Foster Parents Association and the State
39Department of Social Services.

P245  1(3) The plans for each foster parent training program shall
2include the provision of training to facilitate the development of
3foster family homes and small family homes to care for no more
4than six children who have special mental, emotional,
5developmental, or physical needs.

6(4) The State Department of Social Services shall facilitate the
7participation of county welfare departments in the foster parent
8training program. The California State Foster Parents Association,
9or the local chapters thereof, and the State Department of Social
10Services shall identify training participants and shall advise the
11chancellor on the form, content, and methodology of the training
12program. Funds shall be paid monthly to the foster parent training
13program until the maximum amount of funds authorized to be
14expended for that program is expended. No more than 10 percent
15or seventy-five thousand dollars ($75,000) of these moneys,
16whichever is greater, shall be used for administrative purposes; of
17the 10 percent or seventy-five thousand dollars ($75,000), no more
18than ten thousand dollars ($10,000) shall be expended to reimburse
19the State Department of Social Services for its services pursuant
20to this paragraph.

21(d) (1) The Controller shall transfer moneys from the Foster
22Children and Parent Training Fund to the Chancellor of the
23California Community Colleges and the Superintendent of Public
24Instruction as necessary to fulfill the requirements of subdivision
25(c).

26(2) After the maximum amount authorized in any fiscal year
27has been transferred to the Chancellor of the California Community
28Colleges and the Superintendent of Public Instruction, the
29Controller shall transfer any remaining funds to the General Fund
30for expenditure for any public purpose.

31(e) This section shall be operative until June 30, 2005, and
32thereafter is operative only if specified in the annual Budget Act
33or in another statute.

34

SEC. 423.  

(a) The sum of one billion six hundred thirty million
35two hundred twenty-two thousand dollars ($1,630,222,000) is
36hereby appropriated from the General Fund to the Superintendent
37of Public Instruction.

38(b) (1) Of the amount appropriated in subdivision (a), one
39billion six hundred two million two hundred one thousand dollars
P246  1($1,602,201,000) shall be allocated pursuant to the calculation in
2subdivision (b) of Section 42238.03 of the Education Code.

3(2) Of the amount appropriated in subdivision (a), twenty-eight
4million twenty-one thousand dollars ($28,021,000) shall be
5allocated pursuant to the calculation in subdivision (d) of Section
62575.

7(c) For purposes of making the computations required by Section
88 of Article XVI of the California Constitution, the appropriations
9made by subdivision (a) shall be deemed to be “General Fund
10revenues appropriated for school districts,” as defined in
11subdivision (c) of Section 41202 of the Education Code, for the
122013-14 fiscal year, and included within the “total allocations to
13school districts and community college districts from General Fund
14proceeds of taxes appropriated pursuant to Article XIII B,” as
15defined in subdivision (e) of Section 41202, for the 2013-14 fiscal
16year.

17

SEC. 424.  

If the Commission on State Mandates determines
18that this act contains costs mandated by the state, reimbursement
19to local agencies and school districts for those costs shall be made
20pursuant to Part 7 (commencing with Section 17500) of Division
214 of Title 2 of the Government Code.

22begin insert

begin insertSEC. 425.end insert  

end insert
begin insert

This act is an urgency statute necessary for the
23immediate preservation of the public peace, health, or safety within
24the meaning of Article IV of the Constitution and shall go into
25immediate effect. The facts constituting the necessity are:

end insert
begin insert

26In order to more efficiently and equitably finance education at
27the earliest possible time, it is necessary that this act take effect
28immediately.

end insert


O

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