BILL NUMBER: AB 88	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 6, 2013
	AMENDED IN ASSEMBLY  APRIL 3, 2013

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, and
 making an appropriation therefor  , and declaring the
urgency thereof, to take effect immediately  .


	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. 
   (8) This bill would declare that it is to take effect immediately
as an urgency statute. 
   Vote:  majority   2/3  . Appropriation:
yes. Fiscal committee: yes. State-mandated local program: yes.


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

  SECTION 1.  Section 315.5 of the Education Code is repealed.
  SEC. 2.  Section 316.5 of the Education Code is repealed.
  SEC. 3.  Section 317 of the Education Code is repealed.
  SEC. 4.  Section 1240 of the Education Code is amended to read:
   1240.  The county superintendent of schools shall do all of the
following:
   (a) Superintend the schools of his or her county.
   (b) Maintain responsibility for the fiscal oversight of each
school district in his or her county pursuant to the authority
granted by this code.
   (c) (1) Visit and examine each school in his or her county at
reasonable intervals to observe its operation and to learn of its
problems. He or she annually may present a report of the state of the
schools in his or her county, and of his or her office, including,
but not limited to, his or her observations while visiting the
schools, to the board of education and the board of supervisors of
his or her county.
   (2) (A) For fiscal years 2004-05 to 2006-07, inclusive, to the
extent that funds are appropriated for purposes of this paragraph,
the county superintendent, or his or her designee, annually shall
submit a report, at a regularly scheduled November board meeting, to
the governing board of each school district under his or her
jurisdiction, the county board of education of his or her county, and
the board of supervisors of his or her county describing the state
of the schools in the county or of his or her office that are ranked
in deciles 1 to 3, inclusive, of the 2003 base Academic Performance
Index (API), as described in subdivision (b) of Section 17592.70, and
shall include, among other things, his or her observations while
visiting the schools and his or her determinations for each school
regarding the status of all of the circumstances listed in
subparagraph (I) and teacher misassignments and teacher vacancies. As
a condition for receipt of funds, the county superintendent, or his
or her designee, shall use a standardized template to report the
circumstances listed in subparagraph (I) and teacher misassignments
and teacher vacancies, unless the current annual report being used by
the county superintendent, or his or her designee, already includes
those details for each school.
   (B) Commencing with the 2007-08 fiscal year, to the extent that
funds are appropriated for purposes of this paragraph, the county
superintendent, or his or her designee, annually shall submit a
report, at a regularly scheduled November board meeting, to the
governing board of each school district under his or her
jurisdiction, the county board of education of his or her county, and
the board of supervisors of his or her county describing the state
of the schools in the county or of his or her office that are ranked
in deciles 1 to 3, inclusive, of the 2006 base API, pursuant to
Section 52056. As a condition for the receipt of funds, the annual
report shall include the determinations for each school made by the
county superintendent, or his or her designee, regarding the status
of all of the circumstances listed in subparagraph (I) and teacher
misassignments and teacher vacancies, and the county superintendent,
or his or her designee, shall use a standardized template to report
the circumstances listed in subparagraph (I) and teacher
misassignments and teacher vacancies, unless the current annual
report being used by the county superintendent, or his or her
designee, already includes those details with the same level of
specificity that is otherwise required by this subdivision. For
purposes of this section, schools ranked in deciles 1 to 3,
inclusive, on the 2006 base API shall include schools determined by
the department to meet either of the following:
   (i) The school meets all of the following criteria:
   (I) Does not have a valid base API score for 2006.
   (II) Is operating in fiscal year 2007-08 and was operating in
fiscal year 2006-07 during the Standardized Testing and Reporting
(STAR) Program testing period.
   (III) Has a valid base API score for 2005 that was ranked in
deciles 1 to 3, inclusive, in that year.
   (ii) The school has an estimated base API score for 2006 that
would be in deciles 1 to 3, inclusive.
   (C) The department shall estimate an API score for any school
meeting the criteria of subclauses (I) and (II) of clause (i) of
subparagraph (B) and not meeting the criteria of subclause (III) of
clause (i) of subparagraph (B), using available test scores and
weighting or corrective factors it deems appropriate. The department
shall post the API scores on its Internet Web site on or before May
1.
   (D) For purposes of this section, references to schools ranked in
deciles 1 to 3, inclusive, on the 2006 base API shall exclude schools
operated by county offices of education pursuant to Section 56140,
as determined by the department.
   (E) (i) Commencing with the 2010-11 fiscal year and every third
year thereafter, the Superintendent shall identify a list of schools
ranked in deciles 1 to 3, inclusive, of the API for which the county
superintendent, or his or her designee, annually shall submit a
report, at a regularly scheduled November board meeting, to the
governing board of each school district under his or her
jurisdiction, the county board of education of his or her county, and
the board of supervisors of his or her county that describes the
state of the schools in the county or of his or her office that are
ranked in deciles 1 to 3, inclusive, of the base API as defined in
clause (ii).
   (ii) For the 2010-11 fiscal year, the list of schools ranked in
deciles 1 to 3, inclusive, of the base API shall be updated using the
criteria set forth in clauses (i) and (ii) of subparagraph (B),
subparagraph (C), and subparagraph (D), as applied to the 2009 base
API and thereafter shall be updated every third year using the
criteria set forth in clauses (i) and (ii) of subparagraph (B),
subparagraph (C), and subparagraph (D), as applied to the base API of
the year preceding the third year consistent with clause (i).
   (iii) As a condition for the receipt of funds, the annual report
shall include the determinations for each school made by the county
superintendent, or his or her designee, regarding the status of all
of the circumstances listed in subparagraph (I) and teacher
misassignments and teacher vacancies, and the county superintendent,
or his or her designee, shall use a standardized template to report
the circumstances listed in subparagraph (I) and teacher
misassignments and teacher vacancies, unless the current annual
report being used by the county superintendent, or his or her
designee, already includes those details with the same level of
specificity that is otherwise required by this subdivision.
   (F) The county superintendent of the Counties of Alpine, Amador,
Del Norte, Mariposa, Plumas, and Sierra, and the City and County of
San Francisco shall contract with another county office of education
or an independent auditor to conduct the required visits and make all
reports required by this paragraph.
   (G) On a quarterly basis, the county superintendent, or his or her
designee, shall report the results of the visits and reviews
conducted that quarter to the governing board of the school district
at a regularly scheduled meeting held in accordance with public
notification requirements. The results of the visits and reviews
shall include the determinations of the county superintendent, or his
or her designee, for each school regarding the status of all of the
circumstances listed in subparagraph (I) and teacher misassignments
and teacher vacancies. If the county superintendent, or his or her
designee, conducts no visits or reviews in a quarter, the quarterly
report shall report that fact.
   (H) The visits made pursuant to this paragraph shall be conducted
at least annually and shall meet the following criteria:
   (i) Minimize disruption to the operation of the school.
   (ii) Be performed by individuals who meet the requirements of
Section 45125.1.
   (iii) Consist of not less than 25 percent unannounced visits in
each county. During unannounced visits in each county, the county
superintendent shall not demand access to documents or specific
school personnel. Unannounced visits shall only be used to observe
the condition of school repair and maintenance, and the sufficiency
of instructional materials, as defined by Section 60119.
   (I) The priority objective of the visits made pursuant to this
paragraph shall be to determine the status of all of the following
circumstances:
   (i) Sufficient textbooks as defined in Section 60119 and as
specified in subdivision (i).
   (ii) The condition of a facility that poses an emergency or urgent
threat to the health or safety of pupils or staff as defined in
district policy or paragraph (1) of subdivision (c) of Section
17592.72.
   (iii) The accuracy of data reported on the school accountability
report card with respect to the availability of sufficient textbooks
and instructional materials, as defined by Section 60119, and the
safety, cleanliness, and adequacy of school facilities, including
good repair as required by Sections 17014, 17032.5, 17070.75, and
17089.
   (J) The county superintendent may make the status determinations
described in subparagraph (I) during a single visit or multiple
visits. In determining whether to make a single visit or multiple
visits for this purpose, the county superintendent shall take into
consideration factors such as cost-effectiveness, disruption to the
schoolsite, deadlines, and the availability of qualified reviewers.
   (K) If the county superintendent determines that the condition of
a facility poses an emergency or urgent threat to the health or
safety of pupils or staff as described in school district policy or
paragraph (1) of subdivision (c) of Section 17592.72, or is not in
good repair, as specified in subdivision (d) of Section 17002 and
required by Sections 17014, 17032.5, 17070.75, and 17089, the county
superintendent, among other things, may do any of the following:
   (i) Return to the school to verify repairs.
   (ii) Prepare a report that specifically identifies and documents
the areas or instances of noncompliance if the school district has
not provided evidence of successful repairs within 30 days of the
visit of the county superintendent or, for major projects, has not
provided evidence that the repairs will be conducted in a timely
manner. The report may be provided to the governing board of the
school district. If the report is provided to the school district, it
shall be presented at a regularly scheduled meeting held in
accordance with public notification requirements. The county
superintendent shall post the report on his or her Internet Web site.
The report shall be removed from the Internet Web site when the
county superintendent verifies the repairs have been completed.
   (d) Distribute all laws, reports, circulars, instructions, and
blanks that he or she may receive for the use of the school officers.

   (e) Annually, on or before August 15, present a report to the
governing board of the school district and the Superintendent
regarding the fiscal solvency of a school district with a disapproved
budget, qualified interim certification, or a negative interim
certification, or that is determined to be in a position of fiscal
uncertainty pursuant to Section 42127.6.
   (f) Keep in his or her office the reports of the Superintendent.
   (g) Keep a record of his or her official acts, and of all the
proceedings of the county board of education, including a record of
the standing, in each study, of all applicants for certificates who
have been examined, which shall be open to the inspection of an
applicant or his or her authorized agent.
   (h) Enforce the course of study.
   (i) (1) Enforce the use of state textbooks and instructional
materials and of high school textbooks and instructional materials
regularly adopted by the proper authority in accordance with Section
51050.
   (2) For purposes of this subdivision, sufficient textbooks or
instructional materials has the same meaning as in subdivision (c) of
Section 60119.
   (3) (A) Commencing with the 2005-06 school year, if a school is
ranked in any of deciles 1 to 3, inclusive, of the base API, as
specified in paragraph (2) of subdivision (c), and not currently
under review pursuant to a state or federal intervention program, the
county superintendent specifically shall review that school at least
annually as a priority school. A review conducted for purposes of
this paragraph shall be completed by the fourth week of the school
year. For the 2004-05 fiscal year only, the county superintendent
shall make a diligent effort to conduct a visit to each school
pursuant to this paragraph within 120 days of receipt of funds for
this purpose.
   (B) In order to facilitate the review of instructional materials
before the fourth week of the school year, the county superintendent
in a county with 200 or more schools that are ranked in any of
deciles 1 to 3, inclusive, of the base API, as specified in paragraph
(2) of subdivision (c), may utilize a combination of visits and
written surveys of teachers for the purpose of determining
sufficiency of textbooks and instructional materials in accordance
with subparagraph (A) of paragraph (1) of subdivision (a) of Section
60119 and as defined in subdivision (c) of Section 60119. If a county
superintendent elects to conduct written surveys of teachers, the
county superintendent shall visit the schools surveyed within the
same academic year to verify the accuracy of the information reported
on the surveys. If a county superintendent surveys teachers at a
school in which the county superintendent has found sufficient
textbooks and instructional materials for the previous two
consecutive years and determines that the school does not have
sufficient textbooks or instructional materials, the county
superintendent shall within 10 business days provide a copy of the
insufficiency report to the school district as set forth in paragraph
(4).
   (C) For purposes of this paragraph, "written surveys" may include
paper and electronic or online surveys.
   (4) If the county superintendent of schools determines that a
school does not have sufficient textbooks or instructional materials
in accordance with subparagraph (A) of paragraph (1) of subdivision
(a) of Section 60119 and as defined by subdivision (c) of Section
60119, the county superintendent shall do all of the following:
   (A) Prepare a report that specifically identifies and documents
the areas or instances of noncompliance.
   (B) Provide within five business days of the review, a copy of the
report to the school district, as provided in subdivision (c), or,
if applicable, provide a copy of the report to the school district
within 10 business days pursuant to subparagraph (B) of paragraph
(3).
   (C) Provide the school district with the opportunity to remedy the
deficiency. The county superintendent shall ensure remediation of
the deficiency no later than the second month of the school term.
   (D) If the deficiency is not remedied as required pursuant to
subparagraph (C), the county superintendent shall request the
department to purchase the textbooks or instructional materials
necessary to comply with the sufficiency requirement of this
subdivision. If the department purchases textbooks or instructional
materials for the school district, the department shall issue a
public statement at the first regularly scheduled meeting of the
state board occurring immediately after the department receives the
request of the county superintendent and that meets the applicable
public notice requirements, indicating that the district
superintendent and the governing board of the school district failed
to provide pupils with sufficient textbooks or instructional
materials as required by this subdivision. Before purchasing the
textbooks or instructional materials, the department shall consult
with the school district to determine which textbooks or
instructional materials to purchase. The amount of funds necessary
for the purchase of the textbooks and materials is a loan to the
school district receiving the textbooks or instructional materials.
Unless the school district repays the amount owed based upon an
agreed-upon repayment schedule with the Superintendent, the
Superintendent shall notify the Controller and the Controller shall
deduct an amount equal to the total amount used to purchase the
textbooks and materials from the next principal apportionment of the
school district or from another apportionment of state funds.
   (j) Preserve carefully all reports of school officers and
teachers.
   (k) Deliver to his or her successor, at the close of his or her
official term, all records, books, documents, and papers belonging to
the office, taking a receipt for them, which shall be filed with the
department.
   (l) (1) Submit two reports during the fiscal year to the county
board of education in accordance with the following:
   (A) The first report shall cover the financial and budgetary
status of the county office of education for the period ending
October 31. The second report shall cover the period ending January
31. Both reports shall be reviewed by the county board of education
and approved by the county superintendent no later than 45 days after
the close of the period being reported.
   (B) As part of each report, the county superintendent shall
certify in writing whether or not the county office of education is
able to meet its financial obligations for the remainder of the
fiscal year and, based on current forecasts, for two subsequent
fiscal years. The certifications shall be classified as positive,
qualified, or negative, pursuant to standards prescribed by the
Superintendent, for purposes of determining subsequent state agency
actions pursuant to Section 1240.1. For purposes of this subdivision,
a negative certification shall be assigned to a county office of
education that, based upon current projections, will not meet its
financial obligations for the remainder of the fiscal year or for the
subsequent fiscal year. A qualified certification shall be assigned
to a county office of education that may not meet its financial
obligations for the current fiscal year or two subsequent fiscal
years. A positive certification shall be assigned to a county office
of education that will meet its financial obligations for the current
fiscal year and subsequent two fiscal years. In accordance with
those standards, the Superintendent may reclassify a certification.
If a county office of education receives a negative certification,
the Superintendent, or his or her designee, may exercise the
authority set forth in subdivision (c) of Section 1630. Copies of
each certification, and of the report containing that certification,
shall be sent to the Superintendent at the time the certification is
submitted to the county board of education. Copies of each qualified
or negative certification and the report containing that
certification shall be sent to the Controller at the time the
certification is submitted to the county board of education.
   (i) For the 2011-12 fiscal year, notwithstanding any of the
standards and criteria adopted by the state board pursuant to Section
33127, each county office of education budget shall project the same
level of revenue per unit of average daily attendance as it received
in the 2010-11 fiscal year and shall maintain staffing and program
levels commensurate with that level.
   (ii) For the 2011-12 fiscal year, the county superintendent shall
not be required to certify in writing whether or not the county
office of education is able to meet its financial obligations for the
two subsequent fiscal years.
   (iii) For the 2011-12 fiscal year, notwithstanding any of the
standards and criteria adopted by the state board pursuant to Section
33127, the Superintendent, as a condition on approval of a county
office of education budget, shall not require a county office of
education to project a lower level of revenue per unit of average
daily attendance than it received in the 2010-11 fiscal year nor
require the county superintendent to certify in writing whether or
not the county office of education is able to meet its financial
obligations for the two subsequent fiscal years.
   (2) All reports and certifications required under this subdivision
shall be in a format or on forms prescribed by the Superintendent,
and shall be based on standards and criteria for fiscal stability
adopted by the state board pursuant to Section 33127. The reports and
supporting data shall be made available by the county superintendent
to an interested party upon request.
   (3) This subdivision does not preclude the submission of
additional budgetary or financial reports by the county
superintendent to the county board of education or to the
Superintendent.
   (4) The county superintendent is not responsible for the fiscal
oversight of the community colleges in the county, however, he or she
may perform financial services on behalf of those community
colleges.
   (m) If requested, act as agent for the purchase of supplies for
the city and high school districts of his or her county.
   (n) For purposes of Section 44421.5, report to the Commission on
Teacher Credentialing the identity of a certificated person who
knowingly and willingly reports false fiscal expenditure data
relative to the conduct of an educational program. This requirement
applies only if, in the course of his or her normal duties, the
county superintendent discovers information that gives him or her
reasonable cause to believe that false fiscal expenditure data
relative to the conduct of an educational program has been reported.
  SEC. 5.  Section 1242 of the Education Code is repealed.
  SEC. 6.  Section 1242.5 of the Education Code is repealed.
  SEC. 7.  Section 1622 of the Education Code is amended to read:
   1622.  (a) On or before July 1 of each fiscal year, the county
board of education shall adopt an annual budget for the budget year
and, for the 2014-15 fiscal year and each fiscal year thereafter,
take action on a local control and accountability plan pursuant to
Sections 52062 and 52064 and shall file the budget and local control
and accountability plan with the Superintendent, the county board of
supervisors, and the county auditor. The budget, the local control
and accountability plan, and supporting data, shall be maintained and
made available for public review. The budget shall indicate the
date, time, and location at which the county board of education held
the public hearing required under Section 1620. For the 2014-15
fiscal year and each fiscal year thereafter, the county board of
education shall not adopt a budget before the county board of
education adopts a local control and accountability plan or approves
an update to an existing local control and accountability plan. The
county board of education shall not adopt a budget that does not
align with the local control and accountability plan that applies to
the subsequent fiscal year.
   (b) (1) The Superintendent shall examine the budget to determine
if it (1) complies with the standards and criteria adopted by the
state board pursuant to Section 33127 for application to final local
educational agency budgets, (2) allows the county office of education
to meet its financial obligations during the fiscal year, and (3) is
consistent with a financial plan that will enable the county office
of education to satisfy its multiyear financial commitments. In
addition, the Superintendent shall identify any technical corrections
to the budget that must be made. On or before August 15, the
Superintendent shall approve or disapprove the budget and, in the
event of a disapproval, transmit to the county office of education in
writing his or her recommendations regarding revision of the budget
and the reasons for those recommendations.
   (2) For the 2011-12 fiscal year, notwithstanding any of the
standards and criteria adopted by the state board pursuant to Section
33127, the Superintendent, as a condition on approval of a county
office of education budget, shall not require a county office of
education to project a lower level of revenue per unit of average
daily attendance than it received in the 2010-11 fiscal year nor
require the county superintendent to certify in writing whether or
not the county office of education is able to meet its financial
obligations for the two subsequent fiscal years.
   (3) For the 2014-15 fiscal year and each fiscal year thereafter,
the Superintendent shall disapprove a budget if any of the following
occur:
   (A) The county board of education does not file a local control
and accountability plan with the Superintendent pursuant to Sections
52062 and 52064.
   (B) If the Superintendent determines that a local control and
accountability plan filed does not adhere to the template adopted by
the state board pursuant to Section 52066.
   (C) If the Superintendent determines that a local control and
accountability plan filed does not include all of the components
identified in subdivision (a) of Section 52064.
   (D) If the Superintendent determines that the expenditures
included in the budget do not reflect the costs necessary to
implement the local control and accountability plan.
   (c) On or before September 8, the county board of education shall
revise the county office of education budget to reflect changes in
projected income or expenditures subsequent to July 1, and to include
any response to the recommendations of the Superintendent, shall
adopt the revised budget, and shall file the revised budget with the
Superintendent, the county board of supervisors, and the county
auditor. Before revising the budget, the county board of education
shall hold a public hearing regarding the proposed revisions, which
shall be made available for public inspection not less than three
working days before the hearing. The agenda for that hearing shall be
posted at least 72 hours before the public hearing and shall include
the location where the budget will be available for public
inspection. The revised budget, and supporting data, shall be
maintained and made available for public review.
   (d) The Superintendent shall examine the revised budget to
determine whether it complies with the standards and criteria adopted
by the state board pursuant to Section 33127 for application to
final local educational agency budgets and, no later than October 8,
shall approve or disapprove the revised budget. For the 2014-15
fiscal year and each fiscal year thereafter, the Superintendent shall
disapprove a revised budget if the Superintendent determines that
the expenditures included in the budget do not reflect the costs
                                           necessary to implement the
local control and accountability plan adopted by a county board of
education pursuant to Sections 52062 and 52064. If the Superintendent
disapproves the budget, he or she shall call for the formation of a
budget review committee pursuant to Section 1623. For the 2011-12
fiscal year, notwithstanding any of the standards and criteria
adopted by the state board pursuant to Section 33127, the
Superintendent, as a condition on approval of a county office of
education budget, shall not require a county office of education to
project a lower level of revenue per unit of average daily attendance
than it received in the 2010-11 fiscal year nor require the county
superintendent to certify in writing whether or not the county office
of education is able to meet its financial obligations for the two
subsequent fiscal years.
   (e) Notwithstanding any other provision of this section, the
budget review for a county office of education shall be governed by
paragraphs (1), (2), and (3) of this subdivision, rather than by
subdivisions (c) and (d), if the county board of education so elects,
and notifies the Superintendent in writing of that decision, no
later than October 31 of the immediately preceding calendar year.
   (1) In the event of the disapproval of the budget of a county
office of education pursuant to subdivision (b), on or before
September 8, the county superintendent of schools and the county
board of education shall review the recommendations of the
Superintendent at a regularly scheduled meeting of the county board
of education and respond to those recommendations. That response
shall include the proposed actions to be taken, if any, as a result
of those recommendations.
   (2) No later than October 8, after receiving the response required
under paragraph (1), the Superintendent shall review that response
and either approve or disapprove the budget of the county office of
education. For the 2014-15 fiscal year and each fiscal year
thereafter, the Superintendent shall disapprove a budget if a county
board of education does not file a local control and accountability
plan with the Superintendent or if the Superintendent determines that
the expenditures included in the budget adopted by the county board
of education do not reflect the costs necessary to implement the
local control and accountability plan. If the Superintendent
disapproves the budget, he or she shall call for the formation of a
budget review committee pursuant to Section 1623.
   (3) Not later than 45 days after the Governor signs the annual
Budget Act, the county office of education shall make available for
public review any revisions in revenues and expenditures that it has
made to its budget to reflect the funding made available by that
Budget Act.
  SEC. 8.  Section 1630 of the Education Code is amended to read:
   1630.  (a) The Superintendent shall review and consider studies,
reports, evaluations, or audits of the county office of education
that contain evidence that the county office of education is
demonstrating fiscal distress according to the standards and criteria
developed pursuant to Section 33127, or that contain a finding by an
external reviewer that more than 3 of the 15 most common predictors
of school agencies needing intervention, as determined by the County
Office Fiscal Crisis and Management Assistance Team, are present. If
those findings are made, the Superintendent shall investigate the
financial condition of the county office of education and determine
if the county office of education may be unable to meet its financial
obligations for the current or two subsequent fiscal years, or
should receive a qualified or negative interim financial
certification pursuant to Section 1240.
   (b) If at any time during the fiscal year the Superintendent
determines that the county office of education may be unable to meet
its financial obligations for the current or two subsequent fiscal
years, or if the county office of education has a qualified
certification pursuant to Section 1240, he or she shall notify the
county board of education and the county superintendent in writing of
that determination and the basis for the determination. The
notification shall include the assumptions used in making the
determination and shall be available to the public. The
Superintendent shall do the following, as necessary, to ensure that
the county office meets its financial obligations:
   (1) Assign a fiscal expert, paid for by the Superintendent, to
advise the county office of education on its financial problems.
   (2) Conduct a study of the financial and budgetary conditions of
the county office of education. If, in the course of this review, the
Superintendent determines that his or her office requires analytical
assistance or expertise that is not available through the county
office of education, he or she may employ, at county office of
education expense, on a short-term basis, staff, including certified
public accountants, to provide the assistance and expertise.
   (3) Direct the county office of education to submit a financial
projection of all fund and cash balances of the county office of
education as of June 30 of the current year and subsequent fiscal
years as he or she requires.
   (4) Require the county office of education to encumber all
contracts and other obligations, to prepare appropriate cashflow
analyses and monthly or quarterly budget revisions, and to
appropriately record all receivables and payables.
   (5) Direct the county office of education to submit a proposal for
addressing the fiscal conditions that resulted in the determination
that the county office of education may not be able to meet its
financial obligations.
   (6) Withhold compensation of the county board of education and the
county superintendent for failure to provide requested financial
information.
   (c) If, after taking the actions identified in subdivision (a),
the Superintendent determines that a county office of education will
be unable to meet its financial obligations for the current or
subsequent fiscal year, he or she shall notify the county board of
education and the county superintendent in writing of that
determination and the basis for that determination. The notification
shall include the assumptions used in making the determination and
shall be available to the public.
   (d) If the Superintendent makes that determination, or if the
county office of education has a negative certification pursuant to
Section 1240, the Superintendent, shall, as necessary to enable the
county office of education to meet its financial obligations, do one
or more of the following:
   (1) Develop and impose, in consultation with the county board of
education and the county superintendent, a budget that will enable
the county office of education to meet its financial obligations.
   (2) Stay or rescind an action that is determined to be
inconsistent with the ability of the county office of education to
meet its obligations for the current or subsequent fiscal year and
may, as necessary, appoint a fiscal adviser to perform some or all of
the duties prescribed by this paragraph on his or her behalf. This
includes actions up to the point that the subsequent year's budget is
approved by the Superintendent. The Superintendent shall inform the
county board of education in writing of his or her justification for
an exercise of authority under this paragraph.
   (3) Assist in developing, in consultation with the county board of
education and the county superintendent, a financial plan that will
enable the county office of education to meet its future obligations.

   (4) Assist in developing, in consultation with the county board of
education and the county superintendent, a budget for the subsequent
fiscal year. If necessary, the Superintendent shall continue to work
with the county board of education and the county superintendent
until the budget for the subsequent year is adopted.
   (e) Actions taken by the Superintendent pursuant to paragraph (1)
or (2) of subdivision (d) shall be accompanied by a notification that
includes the actions to be taken, the reasons for the actions, and
the assumptions used to support the necessity for those actions. That
notification shall be available to the public.
   (f) This section does not authorize the Superintendent to abrogate
a provision of a collective bargaining agreement that was entered
into by a county office of education before the date upon which the
Superintendent assumed authority pursuant to subdivision (d).
   (g) The county office of education shall pay reasonable fees
charged by the Superintendent for administrative expenses incurred
pursuant to subdivision (d) or costs associated with improving the
office's financial management practices.
   (h) Notwithstanding any other law, a county treasurer shall not
honor a warrant when the Superintendent, as appropriate, has
disapproved that warrant, or has disapproved the order on county
office of education funds for which a warrant was prepared.
   (i) For all purposes of errors and liability insurance policies, a
fiscal expert appointed pursuant to this section shall be deemed to
be an employee of the county office of education. The Superintendent
may require that the fiscal adviser be placed on the county office of
education payroll for purposes of remuneration, benefits, and
payroll deductions.
   (j) If staff persons are hired pursuant to paragraph (2) of
subdivision (b), the Superintendent may certify to the Controller an
amount to be transferred to the state department, from the funds that
otherwise would be apportioned to the county office of education
pursuant to Section 2575, for the purpose of paying all costs
incurred by that staff in performing their respective services. The
Controller, upon receipt of that certification, shall transfer that
amount.
   (k) To facilitate the appointment of a county office of education
fiscal officer and the employment of additional staff pursuant to
paragraphs (1) and (2), respectively, of subdivision (b), for the
purposes of those paragraphs, the Superintendent is exempt from the
requirements of Article 6 (commencing with Section 999) of Chapter 6
of Division 4 of the Military and Veterans Code and Part 2
(commencing with Section 10100) of Division 2 of the Public Contract
Code.
  SEC. 9.  Article 9 (commencing with Section 1780) of Chapter 6 of
Part 2 of Division 1 of Title 1 of the Education Code is repealed.
  SEC. 10.  Article 10 (commencing with Section 1790) of Chapter 6 of
Part 2 of Division 1 of Title 1 of the Education Code is repealed.
  SEC. 11.  Article 11 (commencing with Section 1830) of Chapter 6 of
Part 2 of Division 1 of Title 1 of the Education Code is repealed.
  SEC. 12.  Article 14.5 (commencing with Section 1900) of Chapter 6
of Part 2 of Division 1 of Title 1 of the Education Code is repealed.

  SEC. 13.  Article 14.7 (commencing with Section 1915) of Chapter 6
of Part 2 of Division 1 of Title 1 of the Education Code is repealed.

  SEC. 14.  Article 17 (commencing with Section 1940) of Chapter 6 of
Part 2 of Division 1 of Title 1 of the Education Code is repealed.
  SEC. 15.  Section 1982 of the Education Code is repealed.
  SEC. 16.  Section 1982.3 of the Education Code is repealed.
  SEC. 17.  Section 1982.5 of the Education Code is repealed.
  SEC. 18.  Section 1983.5 of the Education Code is repealed.
  SEC. 19.  Article 1 (commencing with Section 2509) of Chapter 12 of
Part 2 of Division 1 of Title 1 of the Education Code is repealed.
  SEC. 20.  Article 3 (commencing with Section 2550) of Chapter 12 of
Part 2 of Division 1 of Title 1 of the Education Code is repealed.
  SEC. 21.  Article 3.5 (commencing with Section 2560) of Chapter 12
of Part 2 of Division 1 of Title 1 of the Education Code is repealed.

  SEC. 22.  The heading of Article 4 (commencing with Section 2570)
of Chapter 12 of Part 2 of Division 1 of Title 1 of the Education
Code is amended and renumbered to read:

      Article 1.  Allocation of Property Tax Revenues


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

      Article 2.  County Local Control Funding Formula


   2574.  For the 2013-14 fiscal year and for each fiscal year
thereafter, the Superintendent annually shall calculate the County
Local Control Funding Formula for each county superintendent of
schools as follows:
   (a) Compute a county office of education operations grant equal to
the sum of each of the following amounts:
   (1) Six hundred fifty-five thousand nine hundred twenty dollars
($655,920).
   (2) One hundred nine thousand three hundred twenty dollars
($109,320) multiplied by the number of school districts for which the
county superintendent of schools has jurisdiction pursuant to
Section 1253.
   (3) (A) Seventy dollars ($70) multiplied by the number of units of
countywide average daily attendance, up to a maximum of 30,000
units. For purposes of this section, countywide average daily
attendance means the aggregate number of annual units of average
daily attendance within the county attributable to all school
districts for which the county superintendent of schools has
jurisdiction pursuant to Section 1253, charter schools within the
county, and the schools operated by the county superintendent of
schools.
   (B) Sixty dollars ($60) multiplied by the number of units of
countywide average daily attendance for the portion of countywide
average daily attendance, if any, above 30,000 units, up to a maximum
of 60,000 units.
   (C) Fifty dollars ($50) multiplied by the number of units of
countywide average daily attendance for the portion of countywide
average daily attendance, if any, above 60,000, up to a maximum of
140,000 units.
   (D) Forty dollars ($40) multiplied by the number of units of
countywide average daily attendance for the portion of countywide
average daily attendance, if any, above 140,000 units.
   (4) For the 2014-15 fiscal year and each fiscal year thereafter,
adjust each of the amounts provided in the prior year pursuant to
paragraphs (1), (2), and (3) by the percentage change in the annual
average value of the Implicit Price Deflator for State and Local
Government Purchases of Goods and Services for the United States, as
published by the United States Department of Commerce for the
12-month period ending in the third quarter of the prior fiscal year.
This percentage change shall be determined using the latest data
available as of May 10 of the preceding fiscal year compared with the
annual average value of the same deflator for the 12-month period
ending in the third quarter of the second preceding fiscal year,
using the latest data available as of May 10 of the preceding fiscal
year, as reported by the Department of Finance.
   (b) Divide the enrollment of unduplicated pupils in all schools
operated by a county superintendent of schools by the total
enrollment in those schools.
   (1) For purposes of this section, an "unduplicated pupil" is a
pupil who is classified as an English learner pursuant to Section
52164, as that section read on January 1, 2013; eligible to receive a
free or reduced-price meal pursuant to Section 49552, as that
section read on January 1, 2013; or a foster child pursuant to
Sections 300 and 601 of the Welfare and Institutions Code. A pupil
shall be counted only once for purposes of this section if any of the
following apply:
   (A) The pupil is classified as an English learner and is eligible
for a free or reduced-price meal.
   (B) The pupil is classified as an English learner and is a foster
child.
   (C) The pupil is classified as a foster child and is eligible for
a free or reduced-price meal.
   (D) The pupil is classified as an English learner, is eligible for
a free or reduced-price meal, and is a foster child.
   (2) For purposes of this section, a pupil shall not be classified
as an English learner for a total of more than five school years by
any school district, charter school, or county office of education.
   (3) For purposes of this subdivision, a pupil enrolled in a
juvenile court school operated by a county superintendent of schools
shall not be included in any enrollment counts.
   (4) Commencing with the 2013-14 fiscal year, a county
superintendent of schools annually shall report the enrollment of
unduplicated pupils, pupils classified as English learners, pupils
eligible for free and reduced-price meals, and foster children in
schools operated by the county superintendent of schools to the
Superintendent using the California Longitudinal Pupil Achievement
Data System. The Superintendent shall make the calculations pursuant
to this section using the California Longitudinal Pupil Achievement
Data System.
   (c) Compute an alternative education grant equal to the sum of the
following:
   (1) For the 2013-14 fiscal year, a base grant of eleven thousand
forty-five dollars ($11,045). For the 2014-15 fiscal year and each
fiscal year thereafter, adjust the base grant provided in the prior
year by the percentage change in the annual average value of the
Implicit Price Deflator for State and Local Government Purchases of
Goods and Services for the United States, as published by the United
States Department of Commerce for the 12-month period ending in the
third quarter of the prior fiscal year. This percentage change shall
be determined using the latest data available as of May 10 of the
preceding fiscal year compared with the annual average value of the
same deflator for the 12-month period ending in the third quarter of
the second preceding fiscal year, using the latest data available as
of May 10 of the preceding fiscal year, as reported by the Department
of Finance.
   (2) A supplemental grant equal to 35 percent of the base grant
defined in paragraph (1) multiplied by the percentage calculated in
subdivision (b).
   (3) A concentration grant equal to 35 percent of the base grant
defined in paragraph (1) multiplied by the greater of either of the
following:
   (A) The percentage calculated in subdivision (b) less 50 percent.
   (B) Zero.
   (4) (A) Multiply the sum of paragraphs (1), (2), and (3) by the
total number of units of average daily attendance for pupils
attending schools operated by a county office of education, excluding
units of average daily attendance for pupils attending a juvenile
court school, who are any of the following:
   (i) Probation-referred pursuant to Sections 300, 601, 602, and 654
of the Welfare and Institutions Code.
   (ii) On probation or parole and not in attendance in a school.
   (iii) Expelled for any of the reasons specified in subdivision (a)
or (c) of Section 48915.
   (B) Multiply the number of units of average daily attendance for
pupils attending a juvenile court school by the sum of the base grant
calculated in paragraph (1), a supplemental grant equal to 35
percent of the base grant pursuant to paragraph (1), and a
concentration grant equal to 17.5 percent of the base grant pursuant
to paragraph (1).
   (C) Add the amounts calculated in subparagraphs (A) and (B).
   (d) Add the amount calculated in subdivision (a) to the amount
calculated in subparagraph (C) of paragraph (4) of subdivision (c).
   (e) Add all of the following to the amount calculated in
subdivision (d):
   (1) The amount of funding a county superintendent of schools
received for the 2012-13 fiscal year from funds allocated pursuant to
the Targeted Instructional Improvement Block Grant program, as set
forth in Article 6 (commencing with Section 41540) of Chapter 3.2 of
Part 24 of Division 3 of Title 2, as that article read on January 1,
2013.
   (2) The amount of funding a county superintendent of schools
received for the 2012-13 fiscal year from funds allocated pursuant to
the Home to School Transportation program, as set forth in Article 2
(commencing with Section 39820) of Chapter 1 of Part 23.5 of
Division 3 of Title 2, and Article 10 (commencing with Section 41850)
of Chapter 5 of Part 24 of Division 3 of Title 2, as those articles
read on January 1, 2013.
   2575.  Commencing with the 2013-14 budget year and for each fiscal
year thereafter, the Superintendent shall distribute the
appropriations in Section 14002 to each county superintendent of
schools according to the following formula:
   (a) Calculate a prior year amount of funding for each county
superintendent of schools equal to the sum of all of the following:
   (1) Entitlements for revenue limits in the 2012-13 fiscal year
pursuant to Article 3 (commencing with Section 2550) of Chapter 12,
as that article read on January 1, 2013, adjusted only for changes in
average daily attendance claimed by the county superintendent of
schools for pupils identified in clauses (i), (ii) and (iii) of
subparagraph (A) of paragraph (4) of subdivision (c) of Section 2574
and of pupils attending juvenile court schools. All other average
daily attendance claimed by the county superintendent of schools and
any other average daily attendance used for purposes of calculating
revenue limits pursuant to Article 3 (commencing with Section 2550)
of Chapter 12, as that article read on January 1, 2013, shall be
considered final for purposes of this section as of the annual
apportionment for the 2012-13 fiscal year, as calculated for purposes
of the certification required on or before February 20, 2014,
pursuant to Section 41332.
   (2) The amount of funding received from appropriations contained
in Section 2.00 of the Budget Act of 2012, as adjusted by Section
12.42, in the following items: 6110-104-0001, 6110-105-0001,
6110-107-0001, 6110-108-0001, 6110-111-0001, 6110-119-0001,
6110-122-0001, 6110-124-0001, 6110-128-0001, 6110-137-0001,
6110-144-0001, 6110-156-0001, 6110-158-0001, 6110-166-0001,
6110-167-0001, 6110-181-0001, 6110-188-0001, 6110-189-0001,
6110-190-0001, 6110-193-0001, 6110-195-0001, 6110-198-0001,
6110-204-0001, 6110-208-0001, 6110-209-0001, 6110-211-0001,
6110-212-0001, 6110-227-0001, 6110-228-0001, 6110-232-0001,
6110-234-0001, 6110-240-0001, 6110-242-0001, 6110-243-0001,
6110-244-0001, 6110-245-0001, 6110-246-0001, 6110-247-0001,
6110-248-0001, 6110-260-0001, 6110-265-0001, 6110-266-0001,
6110-267-0001, 6110-268-0001, and 6360-101-0001, and 2012-13 fiscal
year funding for the Class Size Reduction Program pursuant to Chapter
6.10 (commencing with Section 52120) of Part 28 of Division 4 of
Title 2, as it read on January 1, 2013.
   (3) For the 2014-15 fiscal year and for each fiscal year
thereafter, the amounts calculated pursuant to paragraph (3) of
subdivision (b) in all prior years.
   (b) Calculate an adjustment to the amount in subdivision (a) as
follows:
   (1) Subtract the amount in subdivision (a) from the amount
computed in subdivision (e) of Section 2574. A difference of less
than zero shall be deemed to be zero.
   (2) Divide the difference for the county superintendent of schools
calculated in paragraph (1) by the total of the differences for all
county superintendents of schools calculated pursuant to paragraph
(1).
   (3) (A) Multiply the proportion calculated in paragraph (2) by the
amount of funding appropriated for purposes of this section. The
amount calculated shall not exceed the difference for the county
superintendent of schools calculated in paragraph (1).
   (B) Add the amount calculated in subparagraph (A) to the
allocation to the county superintendent of schools as calculated
pursuant to subdivision (a).
   (c) Subtract from the amount calculated in subparagraph (B) of
paragraph (3) of subdivision (b) the sum of each of the following:
   (1) Local property tax revenues received pursuant to Section 2573
in the then current fiscal year.
   (2) Any amounts that the county superintendent of schools was
required to maintain as restricted and not available for expenditure
in the 1978-79 fiscal year as specified in the second paragraph of
subdivision (c) of Section 6 of Chapter 292 of the Statutes of 1978,
as amended by Chapter 51 of the Statutes of 1979.
   (3) The amount received pursuant to subparagraph (C) of paragraph
(3) of subdivision (a) of Section 33607.5 of the Health and Safety
Code that is considered property taxes pursuant to that section.
   (4) The amount, if any, received pursuant to Sections 34177,
34179.5, 34179.6, and 34188 of the Health and Safety Code.
   (5) (A) The amount, if any, received pursuant to subparagraph (B)
of paragraph (3) of subdivision (e) of Section 36 of Article XIII of
the California Constitution.
   (B) The amount in subparagraph (A) shall only offset the amount
included in paragraph (1) of subdivision (a).
   (d) (1) The Superintendent shall apportion to the county
superintendent of schools either of the following:
   (A) If the calculation in paragraph (1) of subdivision (b) is
positive, the amount calculated in subdivision (c).
   (B) (i) If the calculation in paragraph (1) of subdivision (b) is
equal to zero or is negative, the sum of the amounts in paragraphs
(1) and (2) of subdivision (a), less the sum of the amounts included
in paragraphs (1) to (5), inclusive, of subdivision (c).
   (ii) For the first fiscal year in which the amount calculated in
subdivision (e) of Section 2574 is greater than the sum of the
amounts in paragraphs (1) and (2) of subdivision (a) and for each
fiscal year thereafter, the Superintendent shall apportion to the
county superintendent of schools the amount calculated in subdivision
(e) of Section 2574, less the sum of the amounts included in
paragraphs (1) to (5), inclusive, of subdivision (c).
   (2) If the amount determined pursuant to paragraph (1) is
negative, state aid shall not be apportioned to the county
superintendent of schools pursuant to paragraph (1). An amount of
funds of that county superintendent of schools equal to that negative
amount shall be deemed restricted and not available for expenditure
during the fiscal year in which subdivision (d) applies. In the
following fiscal year, that amount shall be considered local property
tax revenue for purposes of paragraph (1) of subdivision (c).
   (3) Commencing with the 2013-14 fiscal year, the Superintendent
shall apportion to the county superintendent of schools an amount of
state aid of no less than the amount calculated in paragraph (2) of
subdivision (a), including any amount apportioned pursuant to
paragraph (1).
   (e) (1) Funds apportioned pursuant to this section shall be
available for any locally determined educational purpose.
                        (2) Funds apportioned for purposes of a
supplemental grant or concentration grant, pursuant to paragraphs (2)
and (3), and subparagraph (B) of paragraph (4) of subdivision (c) of
Section 2754, shall be available for any locally determined
educational purpose that benefits the pupils that generated those
funds pursuant to a local control and accountability plan adopted by
the county board of education.
   (3) Commencing with the 2013-14 fiscal year, unless otherwise
required by federal law, any requirements associated with the items
listed in paragraph (2) of subdivision (a) shall not apply.
   2576.  (a) If a county superintendent of schools enrolls in a
school operated by the county superintendent of schools a pupil not
funded pursuant to clause (i), (ii), or (iii) of subparagraph (A) of
paragraph (4) of subdivision (c) of Section 2574, any attendance
generated by that pupil shall be credited to the school district of
residence. That school district shall pay to the county
superintendent of schools the entire entitlement generated for each
unit of average daily attendance by that pupil.
   (b) For purposes of this section, the school district of residence
for a homeless child, as defined in Section 1981.2, shall be deemed
to be the school district that last provided educational services to
that child or, if it is not possible to determine that school
district, the largest school district in the county.
   2577.  Notwithstanding any other law, revenue limit funding for
county superintendents of schools for the 2012-13 fiscal year and
prior fiscal years shall continue to be adjusted pursuant to Article
3 (commencing with Section 2550) of Chapter 12, as that section read
on January 1, 2013.
  SEC. 25.  Article 3 (commencing with Section 8070) of Chapter 1 of
Part 6 of Division 1 of Title 1 of the Education Code is repealed.
  SEC. 26.  Article 4 (commencing with Section 8080) of Chapter 1 of
Part 6 of Division 1 of Title 1 of the Education Code is repealed.
  SEC. 27.  Section 8092 of the Education Code is amended to read:
   8092.  (a) A school district or districts, a county superintendent
or superintendents, or the governing body of any agency maintaining
a regional occupational center or program may contract with a private
postsecondary school that is authorized or approved pursuant to
Chapter 8 (commencing with Section 94800) of Part 59 of Division 10
of Title 3 and that has been in operation not less than two full
calendar years before the effective date of the contract, to provide
career technical skill training authorized by this code. A school
district, community college district, or county superintendent of
schools may contract with an activity center, work activity center,
or sheltered workshop to provide career technical skill training
authorized by this code in an adult education program for adults with
disabilities operated pursuant to subdivision (a) of Section 41976.
   (b) A contract between a public entity and a private postsecondary
school entered into pursuant to this section, or an activity center,
work activity center, or sheltered workshop, shall do both of the
following:
   (1) Provide that the amount contracted for per student shall not
exceed the total direct and indirect costs to provide the same
training in the public schools or the tuition the private
postsecondary school charges its private students, whichever is
lower.
   (2) Provide that all programs, courses, and classes of instruction
shall meet the standards set forth in the California State Plan for
Career Technical Education, or is a course of study for adult schools
approved by the department.
   (c) The students who attend a private postsecondary school or an
activity center, work activity center, or sheltered workshop pursuant
to a contract under this section shall be enrollees of the public
entity and the career technical instruction provided pursuant to that
contract shall be under the exclusive control and management of the
governing body of the contracting public entity.
   (d) The Department of Finance and the state department may audit
the accounts of both the public entity and the private party involved
in these contracts to the extent necessary to ensure the integrity
of the public funds involved.
  SEC. 28.  Article 8 (commencing with Section 8150) of Chapter 1 of
Part 6 of Division 1 of Title 1 of the Education Code is repealed.
  SEC. 29.  Chapter 3 (commencing with Section 8500) of Part 6 of
Division 1 of Title 1 of the Education Code is repealed.
  SEC. 30.  Chapter 5.1 (commencing with Section 8820) of Part 6 of
Division 1 of Title 1 of the Education Code is repealed.
  SEC. 31.  Chapter 9 (commencing with Section 8980) of Part 6 of
Division 1 of Title 1 of the Education Code is repealed.
  SEC. 32.  Section 10554 of the Education Code is amended to read:
   10554.  (a) In order for the governing board to carry out its
responsibilities pursuant to this chapter, there is hereby
established the Educational Telecommunication Fund. The amount of
moneys to be deposited in the fund shall be the amount of any offset
made to the principal apportionments made pursuant to Sections 2575,
42238.02, as implemented by Section 42238.03, 52616, Article 1.5
(commencing with Section 52335) of Chapter 9 of Part 28 of Division 4
of Title 2, and Chapter 7.2 (commencing with Section 56836) of Part
30 of Division 4 of Title 2, based on a finding that these
apportionments were not in accordance with law. The maximum amount
that may be annually deposited in the fund from the offset is fifteen
million dollars ($15,000,000). The Controller shall establish an
account to receive and expend moneys in the fund. The placement of
the moneys in the fund shall occur only upon a finding by the
Superintendent and the Director of Finance that the principal
apportionments made pursuant to Sections 2575, 42238.02, as
implemented by Section 42238.03, 52616, and Article 1.5 (commencing
with Section 52335) of Chapter 9 of Part 28 of Division 4 of Title 2,
and Chapter 7.2 (commencing with Section 56836) of Part 30 of
Division 4 of Title 2 were not in accordance with existing law and
were so identified pursuant to Sections 1624, 14506, 41020, 41020.2,
41320, 42127.2, and 42127.3, or an independent audit that was
approved by the department.
   (b) Moneys in the fund established pursuant to subdivision (a)
shall only be available for expenditure upon appropriation by the
Legislature in the Budget Act.
   (c) The moneys in the fund established pursuant to subdivision (a)
may be expended by the governing board to carry out the purposes of
this chapter, including for the following purposes:
   (1) To support the activities of the team established pursuant to
subdivision (c) of Section 10551.
   (2) To assist the school districts and county superintendents of
schools in purchasing both hardware and software to allow school
districts, county superintendents of schools, and the department to
be linked for school business and administrative purposes. The
governing board shall establish a matching share requirement that
applicant school districts and county superintendents of schools must
fulfill to receive those funds. It is the intent of the Legislature
to encourage the distribution of grants to school districts and
county superintendents of schools to the widest extent possible.
   (3) To provide technical assistance through county offices of
education to school districts in implementing the standards
established pursuant to subdivision (a) of Section 10552.
  SEC. 33.  Chapter 13 (commencing with Section 11200) of Part 7 of
Division 1 of Title 1 of the Education Code is repealed.
  SEC. 34.  Chapter 17 (commencing with Section 11600) of Part 7 of
Division 1 of Title 1 of the Education Code is repealed.
  SEC. 35.  Section 14002 of the Education Code is amended to read:
   14002.  (a) Notwithstanding any other law, upon certification of
the Superintendent, the Controller shall transfer from the General
Fund to Section A of the State School Fund during each fiscal year
the amount of moneys required to meet the actual computed
apportionments for the fiscal year for the purposes set forth in
Sections 2575, 42238.02, and 42238.03.
   (b) The Controller shall also transfer to Section A of the State
School Fund any additional amounts appropriated thereto by the
Legislature in augmentation of any of the amounts for any of the
purposes set forth in Sections 2575, 42238.02, and 42238.03 and such
additional amounts shall be allowed and apportioned by the
Superintendent and warrants therefor drawn by the Controller in the
manner provided in Sections 41050 and 46304, and in this article,
Article 2 (commencing with Section 14040), Article 3 (commencing with
Section 41330) of Chapter 3 of Part 24 of Division 3 of Title 2, and
Article 1 (commencing with Section 41600) of Chapter 4 of Part 24 of
Division 3 of Title 2.
  SEC. 36.  Section 14002.1 of the Education Code is amended to read:

   14002.1.  Notwithstanding any other law, for purposes of
determining the amounts to be certified pursuant to subdivision (a)
of Section 14002, the Superintendent shall use the property tax
estimates received from county auditors pursuant to Section 75.70 of
the Revenue and Taxation Code.
  SEC. 37.  Section 14002.3 of the Education Code is repealed.
  SEC. 38.  Section 14002.5 of the Education Code is repealed.
  SEC. 39.  Section 14003 of the Education Code is amended to read:
   14003.  (a) Commencing with the 2010-11 fiscal year, on March 28
of each fiscal year in which the percentage growth in per capita
General Fund revenues exceeds the percentage growth in California per
capita personal income, the Controller shall transfer from the
General Fund to Sections A and B of the State School Fund, as set
forth in subdivision (c), the amount determined pursuant to paragraph
(1) minus the amount determined pursuant to paragraph (2).
   (1) The product of General Fund revenues from proceeds of taxes
and one-half of the difference between the percentage growth in per
capita General Fund revenues from proceeds of taxes and in California
per capita personal income.
   (2) The amount of the maintenance factor certified pursuant to
Section 41207.2 that is allocated in the current year pursuant to
subdivision (e) of Section 8 of Article XVI of the California
Constitution.
   (b) The amount transferred pursuant to subdivision (a) shall be in
addition to amounts required to be allocated pursuant to subdivision
(b) of Section 8 of Article XVI of the California Constitution.
   (c) (1) Of the amount determined pursuant to subdivision (a), the
Controller shall transfer 92 percent to Section A of the State School
Fund. The Superintendent shall allocate the funds transferred
pursuant to this paragraph in the following priority order:
   (A) Such amounts as necessary to implement the local control
funding formula pursuant to Section 42238.02, as implemented by
Section 42238.03, and the county local control funding formula,
pursuant to Section 2575.
   (B) Any remaining amounts transferred pursuant to this paragraph
shall be allocated pursuant to Sections 2575 and 42238.02, as
implemented by Section 42238.03.
   (2) Of the amount determined pursuant to subdivision (a), the
Controller shall transfer 8 percent to Section B of the State School
Fund. The Chancellor of the Community Colleges shall allocate the
funds transferred pursuant to this paragraph in equal amounts for the
following purposes:
   (A) For purposes of career and technical education pursuant to
Chapter 352 of the Statutes of 2005.
   (B) As a proportionate increase in general purpose apportionments
for community college districts.
   (d) For purposes of determining the amount required pursuant to
paragraph (2) or (3), as applicable, of subdivision (b) of Section 8
of Article XVI of the California Constitution for the following
fiscal year, all amounts transferred in the prior fiscal year
pursuant to this section shall be deemed allocations to school
districts and community college districts from General Fund proceeds
of taxes appropriated pursuant to Article XIII B for that prior
fiscal year.
   (e) The sum of the amounts transferred pursuant to this section
plus the sum of the amounts of the maintenance factor certified
pursuant to Section 41207.2 that is allocated pursuant to subdivision
(e) of Section 8 of Article XVI of the California Constitution shall
not exceed the total amount of eleven billion two hundred twelve
million nine hundred nine thousand dollars ($11,212,909,000) less any
maintenance factor amount that is allocated for the 2009-10 fiscal
year.
  SEC. 40.  Section 14004 of the Education Code is repealed.
  SEC. 41.  Section 14022.3 of the Education Code is amended to read:

   14022.3.  (a) For purposes of calculating "increases in enrollment"
pursuant to paragraph (2) or (3) of subdivision (b) of Section 8 of
Article XVI of the California Constitution, the term "enrollment" for
school districts, community college districts, and state agencies
providing direct elementary and secondary level instructional
services means the sum of the following:
   (1) Second principal apportionment regular average daily
attendance for kindergarten and grades 1 to 12, inclusive, as defined
in subdivision (b) of Section 42238.05, and as adjusted for any
average daily attendance audit findings.
   (2) Annual average daily attendance for county offices of
education, as calculated pursuant to subdivision (c) of Section
41601, and as adjusted for any average daily attendance audit
findings.
   (b) Any determination or computation of enrollment for purposes of
this section shall be based upon actual data from prior years. For
the next succeeding year, any determination or computation of
enrollment for purposes of this section shall be the estimated
enrollment, adjusted as actual data become available.
  SEC. 42.  Section 14022.5 of the Education Code, as added by
Section 2 of Chapter 82 of the Statutes of 1989, is repealed.
  SEC. 43.  Section 14022.5 of the Education Code, as amended by
Section 1 of Chapter 92 of the Statutes of 1989, is amended to read:
   14022.5.  (a) For purposes of Section 8.5 of Article XVI of the
California Constitution, the term "enrollment" shall have the
following meaning for school districts, community college districts,
and state agencies providing direct elementary and secondary level
instructional services:
   (1) In school districts:
   (A) The average daily attendance of each school district reported
for the second principal apportionment pursuant to Section 41601.
   (B) (i) The annual average daily attendance for children enrolled
in a state preschool program under the Child Care and Development
Services Act (Chapter 2 (commencing with Section 8200) of Part 6),
except that one unit of average daily attendance, for purposes of
this clause, shall equal 700 hours of preschool services.
   (ii) The annual average daily attendance for children enrolled in
any other program under the Child Care and Development Services Act
(Chapter 2 (commencing with Section 8200) of Part 6), except that one
unit of average daily attendance, for purposes of this clause, shall
equal 250 days of services. For purposes of this clause, less than
four hours per day of services shall be defined as one-half day, from
four up to six and one-half hours per day shall be defined as
three-fourths day, and six and one-half hours or more per day shall
be defined as one full day.
   (C) The annual average daily attendance for pupils enrolled in an
educational program offered by a county office of education, as
determined pursuant to subdivisions (b) and (c) of Section 41601.
   (2) In community college districts:
   (A) The annual average daily attendance of a community college
district computed pursuant to Chapter 4 (commencing with Section
84500) of Part 50 of Division 7 of Title 3, until Section 84750.5
becomes operative, and thereafter the number of full-time equivalent
students as computed pursuant to Section 84750.5.
   (B) The annual average daily attendance for evening community
college programs designated as adult schools pursuant to Section
78401.
   (C) The annual average daily attendance of apprentices enrolled in
any class, except that one unit of average daily attendance, for
purposes of this paragraph, shall equal 525 hours of apprenticeship
instruction in an apprenticeship program operated pursuant to Chapter
4 (commencing with Section 3070) of Division 3 of the Labor Code.
   (3) In state agencies that provide direct elementary and secondary
level instructional services:
   (A) The annual average daily attendance equivalent for pupils
enrolled in the State Schools for the Handicapped pursuant to Part 32
(commencing with Section 59000) of Division 4 of Title 2.
   (B) The annual average daily attendance equivalent for pupils
attending an educational program administered by the Department of
the Youth Authority pursuant to Article 6 (commencing with Section
1120) and Article 10 (commencing with Section 1250) of Part 1 of
Division 2 of Chapter 3 of the Welfare and Institutions Code.
   (C) The annual average daily attendance equivalent for pupils in
the state hospitals operated by the State Department of Developmental
Services pursuant to Chapter 8 (commencing with Section 56850) of
Part 30 of Division 4 of Title 2.
   (b) Any determination or computation of enrollment for purposes of
this section shall be based upon actual data from prior years. For
the next succeeding year, any determination or computation of
enrollment for purposes of this section shall be the estimated
enrollment, adjusted as actual data become available.
  SEC. 44.  Section 14035 of the Education Code is repealed.
  SEC. 45.  Section 14041 of the Education Code is amended to read:
   14041.  (a) The Controller shall draw warrants on the State
Treasury in favor of the county treasurer of each county in each
month of each year in the amounts and manner prescribed in this
section so as to provide in each warrant a portion of the total
amount certified by the Superintendent as apportioned under the
provisions of Sections 41330 to 41343, inclusive, and Chapter 4
(commencing with Section 41600) and Chapter 5 (commencing with
Section 41760.2) and Article 2 (commencing with Section 42238.02) of
Chapter 7 of Part 24 of Division 3 of Title 2, during the fiscal year
from the State School Fund to the school districts under the
jurisdiction of the county superintendent of schools of the county,
to the county school service fund, and to the county school tuition
fund of the county.
   (1) Warrants for amounts allowed to county school service funds
under subdivisions (a) and (b) of Section 14054 shall be for amounts
equal to 5 percent in July, 5 percent in August, and 9 percent in
each remaining month of the fiscal year of the amounts certified by
the Superintendent as a part of the advance apportionment.
   (2) Warrants for amounts apportioned to school districts and
county school service funds for classes maintained by county
superintendents of schools and to the county school tuition funds
shall be for amounts equal to 5 percent in July, 5 percent in August,
and 9 percent in September, October, November, December, and
January, of the amounts certified by the Superintendent as a part of
the advance apportionment.
   (3) Warrants in the months of February to May, inclusive, shall be
for amounts equal to one-fifth of the difference between the amounts
certified by the Superintendent for school districts and county
school service funds for classes maintained by county superintendents
of schools and county school tuition funds as the first principal
apportionment and the amounts required by paragraph (2).
   (4) Warrants for the month of June shall be for amounts equal to
the difference between the amounts certified by the Superintendent
for school districts and county school service funds for classes
maintained by county superintendents of schools and county school
tuition funds as the second principal apportionment and the amounts
required by paragraphs (2) and (3).
   (5) Warrants in the months of July and August shall include 5
percent of the estimated total amounts of the special purpose
apportionment, as determined by the Superintendent. Warrants in the
months of September to November, inclusive, shall include 9 percent
of the estimated total amounts of the special purpose apportionment,
as determined by the Superintendent. Warrants in December shall
include 9 percent of the amounts certified by the Superintendent as
the special purpose apportionment, as adjusted, if necessary, to
correct excesses or deficiencies in the estimates made for purposes
of the warrants in the months of September to November, inclusive. An
additional 9 percent of the amounts of the special purpose
apportionment shall be included in the warrants for the months from
January to June, inclusive.
   (6) Warrants in June shall include the total amounts certified by
the Superintendent as the final apportionment.
   (7) Notwithstanding paragraph (2) to the contrary, for school
districts that reported less than 5,000 units of average daily
attendance in the 1979-80 fiscal year and that received 39 percent or
more, but less than 75 percent, of their total revenue limits from
local property taxes in that fiscal year, warrants for amounts
apportioned to the school districts shall be for amounts equal to 15
percent in July, August, September, and October; zero percent in
November and December; and 6 percent in January of the amounts
certified by the Superintendent as a part of the advance
apportionment. Warrants for amounts apportioned to the school
districts for the months of February to May, inclusive, shall be in
accordance with paragraph (3), and for the month of June, shall be in
accordance with paragraph (4).
   (8) Notwithstanding paragraph (2) or (7) to the contrary, for
school districts which reported less than 5,000 units of average
daily attendance in the 1979-80 fiscal year and which received 75
percent or more of their total revenue limits from local property
taxes in that fiscal year, warrants for amounts apportioned to the
school districts shall be for amounts equal to 15 percent in July; 30
percent in August and September; 15 percent in October; zero percent
in November and December; 6 percent in January; and zero percent in
February, March, April, and May, of the amounts certified by the
Superintendent as a part of the advance apportionment. Warrants for
the month of June shall be in accordance with paragraph (4).
   (9) (A) Notwithstanding any other law, for the 2012-13 fiscal year
only, for purposes of warrants drawn on the State Treasury pursuant
to this section, the amount certified by the Superintendent as the
advance apportionment and first principal apportionment shall include
the following reduction:
   (i) The Superintendent shall multiply six billion nine hundred
twenty-one million five hundred twenty-two thousand dollars
($6,921,522,000) by the ratio of the revenue limit or charter school
general purposes funding for each county office of education, school
district, or charter school, to the statewide total of revenue limit
and charter school general purpose funding.
   (ii) For each county office of education, school district, or
charter school, the Superintendent shall subtract the amount
calculated in clause (i) from the apportionments calculated pursuant
to Sections 2558, 42238, and 47633, as those sections read on June
30, 2013.
   (B) Notwithstanding any other law, for the 2012-13 fiscal year,
the Superintendent shall delay the second principal apportionment
calculated pursuant to Section 41335 from July 2, 2013, to July 15,
2013, to account for all revenues remitted to school districts and
county offices of education pursuant to subparagraph (B) of paragraph
(3) of subdivision (e) of Section 36 of Article XIII of the
California Constitution. The Superintendent shall ensure that the
second principal apportionment calculated pursuant to Section 41335
accounts for the difference between the amount distributed pursuant
to subparagraph (B) of paragraph (3) of subdivision (e) of Section 36
of Article XIII of the California Constitution and the offsets
listed in subparagraph (A). Nothing in this section shall delay the
payment of warrants to school districts and county offices of
education 10 days before the close of the state's fiscal year
pursuant to subparagraph (B) of paragraph (3) of subdivision (e) of
Section 36 of Article XIII of the California Constitution.
   (10) Notwithstanding paragraph (1), (3), or (7), for the 2012-13
fiscal year only, the Superintendent shall reduce the June warrants
for any amounts received pursuant to Sections 34179.5 and 34179.6 of
the Health and Safety Code. This reduction shall constitute the
entire amount distributed pursuant to Sections 34179.5 and 34179.6 of
the Health and Safety Code and offset pursuant to subparagraph (B)
of paragraph (6) of subdivision (h) of Section 42238, paragraph (6)
of subdivision (c) of Section 2558, and Section 56836.08, as those
sections read on June 30, 2013.
   (b) The drawing of the warrants required to be drawn during any
one of the months mentioned may be postponed by the Controller for
not to exceed 30 days, but the total amounts due the several counties
during any fiscal year shall be paid within the fiscal year. The
warrants shall be paid by the Treasurer from the State School Fund
and are not subject to Section 925.6 of the Government Code.
  SEC. 46.  Section 14041.1 of the Education Code is repealed.
  SEC. 47.  Section 14041.6 of the Education Code is amended to read:

   14041.6.  (a) Notwithstanding subdivision (a) of Section 14041, or
any other law, for the 2008-09 fiscal year warrants for the
principal apportionments for the month of February in the amount of
two billion dollars ($2,000,000,000) instead shall be drawn in July
of the same calendar year pursuant to the certification made pursuant
to Section 41339.
   (b) Notwithstanding subdivision (a) of Section 14041 or any other
law, for the 2009-10 fiscal year warrants for the principal
apportionments for the month of February in the amount of two billion
dollars ($2,000,000,000) instead shall be drawn in July of the same
calendar year, and warrants for the month of April in the amount of
six hundred seventy-eight million six hundred eleven thousand dollars
($678,611,000) and for the month of May in the amount of one billion
dollars ($1,000,000,000) instead shall be drawn in August of the
same calendar year pursuant to the certification made pursuant to
Section 41339.
   (c) Notwithstanding subdivision (a) of Section 14041 or any other
law, for the 2010-11 fiscal year, warrants for the principal
apportionments for the month
      of February in the amount of two billion dollars
($2,000,000,000), for the month of April in the amount of four
hundred nineteen million twenty thousand dollars ($419,020,000), for
the month of May in the amount of eight hundred million dollars
($800,000,000), and for the month of June in the amount of five
hundred million dollars ($500,000,000) instead shall be drawn in July
of the same calendar year and warrants for the month of April in the
amount of six hundred seventy-eight million six hundred eleven
thousand dollars ($678,611,000) and for the month of May in the
amount of one billion dollars ($1,000,000,000) instead shall be drawn
in August pursuant to the certification made pursuant to Section
41339.
   (d) Notwithstanding subdivision (a) of Section 14041 or any other
law, for the 2011-12 fiscal year, warrants for the principal
apportionments for the month of February in the amount of two billion
dollars ($2,000,000,000), for the month of April in the amount of
four hundred nineteen million twenty thousand dollars ($419,020,000),
for the month of May in the amount of eight hundred million dollars
($800,000,000), and for the month of June in the amount of five
hundred million dollars ($500,000,000) instead shall be drawn in July
of the same calendar year and warrants for the month of March in the
amount of one billion three hundred million dollars
($1,300,000,000), for the month of April in the amount of one billion
four hundred forty-two million four hundred five thousand dollars
($1,442,405,000), and for the month of May in the amount of one
billion dollars ($1,000,000,000) instead shall be drawn in August of
the same calendar year pursuant to the certification made pursuant to
Section 41339.
   (e) Notwithstanding subdivision (a) of Section 14041, or any other
law, for the 2012-13 fiscal year warrants for the principal
apportionments for the month of February in the amount of five
hundred thirty-one million seven hundred twenty thousand dollars
($531,720,000), for the month of April in the amount of five hundred
ninety-four million seven hundred forty-eight thousand dollars
($594,748,000), for the month of May in the amount of one billion
nine hundred seventy-six million seven hundred one thousand dollars
($1,976,701,000), and for the month of June in the amount of five
hundred million dollars ($500,000,000) instead shall be drawn in July
of the same calendar year and warrants for the month of March in the
amount of one billion twenty-nine million four hundred ninety-three
thousand dollars ($1,029,493,000) and for the month of April in the
amount of seven hundred sixty-three million seven hundred ninety-four
thousand dollars ($763,794,000) instead shall be drawn in August
pursuant to the certification made pursuant to Section 41339.
   (f) Notwithstanding subdivision (a) of Section 14041, or any other
law, commencing with the 2013-14 fiscal year warrants for the
principal apportionments for the month of April in the amount of
three hundred ninety million nine hundred thirty-nine thousand
dollars ($390,939,000), for the month of May in the amount of one
billion nine hundred seventy-six million seven hundred one thousand
dollars ($1,976,701,000), and for the month of June in the amount of
five hundred million dollars ($500,000,000) instead shall be drawn in
July of the same calendar year and warrants for the month of April
in the amount of seven hundred sixty-three million seven hundred
ninety-four thousand dollars ($763,794,000) instead shall be drawn in
August pursuant to the certification made pursuant to Section 41339.

   (g) Notwithstanding subdivision (a) of Section 14041 or any other
law, commencing with the 2013-14 fiscal year, warrants for the
principal apportionments for the month of May in the amount of two
hundred million dollars ($200,000,000) and for the month of June in
the amount of six hundred ninety-nine million four hundred
seventy-three thousand dollars ($699,473,000) instead shall be drawn
in July of the same calendar year pursuant to the certification made
pursuant to Section 41339. The Superintendent shall allocate this
deferred amount and repayment to local educational agencies based on
their proportionate share of funding appropriated to local
educational agencies pursuant to Section 92 of Chapter 38 of the
Statutes of 2012.
   (h) Except as provided in subdivisions (c) and (e) of Section
41202, for purposes of making the computations required by Section 8
of Article XVI of the California Constitution, the warrants drawn
pursuant to subdivisions (a) to (g), inclusive, shall be deemed to be
"General Fund revenues appropriated for school districts," as
defined in subdivision (c) of Section 41202, for the fiscal year in
which the warrants are drawn and included within the "total
allocations to school districts and community college districts from
General Fund proceeds of taxes appropriated pursuant to Article XIII
B," as defined in subdivision (e) of Section 41202, for the fiscal
year in which the warrants are drawn.
  SEC. 48.  Section 14041.65 of the Education Code is repealed.
  SEC. 49.  Section 14401.1 of the Education Code is repealed.
  SEC. 50.  Section 14501 of the Education Code is amended to read:
   14501.  (a) As used in this chapter, "financial and compliance
audit" shall be consistent with the definition provided in the
"Standards for Audits of Governmental Organizations, Programs,
Activities, and Functions" promulgated by the Comptroller General of
the United States. Financial and compliance audits conducted under
this chapter shall fulfill federal single audit requirements.
   (b) As used in this chapter, "compliance audit" means an audit
that ascertains and verifies whether or not funds provided through
apportionment, contract, or grant, either federal or state, have been
properly disbursed and expended as required by law or regulation or
both and includes the verification of each of the following:
   (1) Expenditure of these funds in accordance with the local
control and accountability plan adopted by the governing board of the
school district pursuant to Sections 52060 and 52064 or the county
board of education pursuant to Sections 52062 and 52064.
   (2) The reporting requirements for the sufficiency of textbooks or
instructional materials, or both, as defined in Section 60119.
   (3) Teacher misassignments pursuant to Section 44258.9.
   (4) The accuracy of information reported on the School
Accountability Report Card required by Section 33126. The
requirements set forth in paragraphs (1) and (2) and this paragraph
shall be added to the audit guide requirements pursuant to
subdivision (b) of Section 14502.1.
  SEC. 51.  Section 17005.3 of the Education Code is amended to read:

   17005.3.  (a) A school district with an average daily attendance
of less than 2,501 pupils may apply to the board for a loan to cover
the project activities of the first or second phase, as those phases
were defined on July 1, 1993, of a project funded under this chapter.
The loan shall not be used for the purchase of real property and
shall be repaid by the school district either through a dedication of
fees or charges levied pursuant to Section 17620 until the loan is
repaid or upon receiving the project funding at the construction
phase, but, in any event, the loan shall be repaid within five years
from the date on which the board makes the loan. In addition to the
other methods of repayment specified in this subdivision, the board
may also notify the Controller if a school district is 90 days late
in making loan repayments, in which case the Controller shall reduce
the apportionments to which the school district is otherwise entitled
under Section 42238, as that section read on June 30, 2013, and
Section 42238.02, as implemented pursuant to Section 42238.03, as
necessary to recover past due payments and any current payments.
   (b) The board may make loans under this section to the extent that
the board determines that funds are available for that purpose. The
total annual maximum funds that may be loaned under this section is
ten million dollars ($10,000,000) per fiscal year.
   (c) The board may make loans under this section only for those
projects and phases that have met all of the eligibility standards of
the board and receive approval for an apportionment, but for which
apportionment funds are not available. In any event, the amount of
the loan shall not exceed the amount that would have been eligible
for apportionment.
  SEC. 52.  Section 17008.3 of the Education Code is amended to read:

   17008.3.  (a) The board may establish a revolving loan account
within the State School Building Lease-Purchase Fund, and may
allocate from the fund to that account those amounts it determines to
be necessary for purposes of this section.
   (b) The board may apportion to a school district that submits to
the board a statement of its intent to subsequently file a project
application under this chapter, a loan for the purpose of advance
planning and related administrative costs pursuant to the preparation
of that application. The loan amount shall not exceed 3 percent of
the estimated project cost, as determined pursuant to the building
cost standards established under this chapter.
   (c) If, within a period of 24 months following the receipt of any
loan amounts under this section, the project for which those advance
planning funds were provided has not been found by the board to be
qualified for funding under this chapter, the board shall so notify
the Controller, who shall reduce the apportionments to which the
school district is otherwise entitled under Section 42238, as that
section read on June 30, 2013, and Section 42238.02, as implemented
pursuant to Section 42238.03, as necessary to repay the amount of all
loans provided under this section, over such period of time as the
board finds to be reasonable. The Controller shall transfer the
amount of all apportionment reductions imposed under this subdivision
to the revolving loan account established under this section.
   (d) The repayment of loan amounts received under this section by
school districts other than those described under subdivision (c)
shall be accomplished by the withholding, as determined by the board,
of apportionment funds that would be available to the school
district for purposes of the project for which the school district
received funding approval under this chapter.
  SEC. 53.  Section 17193.5 of the Education Code is amended to read:

   17193.5.  (a) For purposes of this section, "public credit
provider" means any financial institution or combination of financial
institutions, that consists either solely, or has as a member or
participant, a public retirement system. Notwithstanding any other
law, a public credit provider, in connection with providing credit
enhancement for bonds, notes, certificates of participation, or other
evidences of indebtedness of a participating party, may require the
participating party to agree to the following conditions:
   (1) If a participating party adopts a resolution by a majority
vote of its board to participate under this section, it shall provide
notice to the Controller of that election. The notice shall include
a schedule for the repayment of principal and interest on the bonds,
notes, certificates of participation, or other evidence of
indebtedness and identify the public credit provider that provided
credit enhancement. The notice shall be provided not later than the
date of issuance of the bonds.
   (2) If, for any reason a public credit provider is required to
make principal or interest payments or both pursuant to a credit
enhancement agreement, the public credit provider shall immediately
notify the Controller of that fact and of the amount paid out by the
public credit provider.
   (3) Upon receipt of the notice required by paragraph (2), the
Controller shall make an apportionment to the public credit provider
in the amount of the payments made by the public credit provider for
the purpose of reimbursing the public credit provider for its
expenditures made pursuant to the credit enhancement agreement. The
Controller shall make that apportionment only from moneys designated
for apportionments to a participating party, provided that such
moneys are from one or more of the following:
   (A) Any funding apportioned for purposes of revenue limits or the
local control funding formula pursuant to Section 42238.02, as
implemented by Section 42238.03, to a school district or county
office of education without regard to the specific funding source of
the apportionment.
   (B) Any general apportionments to a community college district
without regard to the specific funding source of the apportionment.
   (C) Any funding apportioned for purposes of the charter school
block grant or the local control funding formula pursuant to Section
42238.02, as implemented by Section 42238.03, to a charter school
without regard to the specific funding source of the apportionment.
   (b) The amount apportioned for a participating party pursuant to
this section shall be deemed to be an allocation to the participating
party and shall be included in the computation of allocation, limit,
entitlement, or apportionment for the participating party. The
participating party and its creditors do not have a claim to funds
apportioned or anticipated to be apportioned to the trustee by the
Controller pursuant to paragraph (3) of subdivision (a).
  SEC. 54.  Section 17199.4 of the Education Code is amended to read:

   17199.4.  (a) Notwithstanding any other law, any participating
party, in connection with securing financing or refinancing of
projects, or working capital pursuant to this chapter, may elect to
guarantee or provide for payment of the bonds and related obligations
in accordance with the following conditions:
   (1) If a participating party adopts a resolution by a majority
vote of its board to participate under this section, it shall provide
notice to the Controller of that election. The notice shall include
a schedule for the repayment of principal and interest on the bonds,
and any other costs necessary or incidental to financing pursuant to
this chapter, and identify a trustee appointed by the participating
party or the authority for purposes of this section. If payment of
all or a portion of the principal and interest on the bond is secured
by a letter of credit or other instrument of direct payment, the
notice may provide for reimbursements to the provider of the
instrument in lieu of payment of that portion of the principal and
interest of the bonds. The notice shall be provided not later than
the date of issuance of the bonds or 60 days before the next payment,
whichever date is later. The participating party shall update the
notice at least annually if there is a change in the required payment
for any reason, including, but not limited to, providing for new or
increased costs necessary or incidental to the financing.
   (2) If, for any reason, the participating party will not make a
payment at the time the payment is required, the participating party
shall notify the trustee of that fact and of the amount of the
deficiency. If the trustee receives this notice from the
participating party, or does not receive any payment by the date that
payment becomes due, the trustee shall immediately communicate that
information to the Controller.
   (3) Upon receipt of the notice required by paragraph (2), the
Controller shall make an apportionment to the trustee on the date
shown in the schedule in the amount of the deficiency for the purpose
of making the required payment. The Controller shall make that
apportionment only from moneys designated for apportionment to a
participating party, provided that such moneys are from one or more
of the following:
   (A) Any funding apportioned for purposes of revenue limits or the
local control funding formula pursuant to Section 42238.02, as
implemented by Section 42238.03, to a school district or county
office of education without regard to the specific funding source of
the apportionment.
   (B) Any funding apportioned for purposes of the charter school
block grant or the local control funding formula pursuant to Section
42238.02, as implemented by Section 42238.03, to a charter school
without regard to the specific funding source of the apportionment.
   (4) As an alternative to the procedures set forth in paragraphs
(2) and (3), the participating party may provide a transfer schedule
in its notice to the Controller of its election to participate under
this section. The transfer schedule shall set forth amounts to be
transferred to the trustee and the date for the transfers. The
Controller, subject to the limitation in paragraph (3), shall make
apportionments to the trustee of those amounts on the specified date
for the purpose of making those transfers. The authority may require
a participating party to proceed under this subdivision.
   (b)  The amount apportioned for a participating party pursuant to
this section shall be deemed to be an allocation to the participating
party and shall be included in the computation of allocation, limit,
entitlement, or apportionment for the participating party.
   The participating party and its creditors do not have a claim to
funds apportioned or anticipated to be apportioned to the trustee by
the Controller pursuant to paragraph (3) and (4) of subdivision (a),
or to the funds apportioned to by the Controller to the trustee under
any other provision of this section.
   (c) (1)  Participating parties that elect to participate under
this section shall apply to the authority. The authority shall
consider each of the following priorities in making funds available:
   (A) First priority shall be given to school districts, charter
schools, or county offices of education that apply for funding for
instructional classroom space.
   (B) Second priority shall be given to school districts, charter
schools, or county offices of education that apply for funding of
modernization of instructional classroom space.
   (C) Third priority shall be given to all other eligible costs, as
defined in Section 17173.
   (2) The authority shall prioritize applications at appropriate
intervals.
   (3) A school district electing to participate under this section
that has applied for revenue bond moneys for purposes of joint
venture school facilities construction projects, pursuant to Article
5 (commencing with Section 17060) of Chapter 12, shall not be subject
to the priorities set forth in paragraph (1).
   (d) This section shall not be construed to make the State of
California liable for any payments within the meaning of Section 1 of
Article XVI of the California Constitution or otherwise, except as
expressly provided in this section.
   (e) A school district that has a qualified or negative
certification pursuant to Section 42131, or a county office of
education that has a qualified or negative certification pursuant to
Section 1240, may not participate under this section.
  SEC. 55.  Section 17582 of the Education Code is amended to read:
   17582.  (a) The governing board of a school district may establish
a restricted fund to be known as the "district deferred maintenance
fund" for purposes of major repair or replacement of plumbing,
heating, air conditioning, electrical, roofing, and floor systems,
the exterior and interior painting of school buildings, the
inspection, sampling, and analysis of building materials to determine
the presence of asbestos-containing materials, the encapsulation or
removal of asbestos-containing materials, the inspection,
identification, sampling, and analysis of building materials to
determine the presence of lead-containing materials, the control,
management, and removal of lead-containing materials, and any other
items of maintenance approved by the State Allocation Board. Funds
deposited in the district deferred maintenance fund may be received
from any source whatsoever, and shall be accounted for separately
from all other funds and accounts and retained in the district
deferred maintenance fund for purposes of this section. The term
"school building" as used in this article includes a facility that a
county office of education is authorized to use pursuant to Article 3
(commencing with Section 17280) of Chapter 3.
   (b) Funds deposited in the district deferred maintenance fund
shall only be expended for maintenance purposes as provided pursuant
to subdivision (a).
   (c) The governing board of each school district shall have
complete control over the funds and earnings of funds once deposited
in the district deferred maintenance fund.
  SEC. 56.  Section 17583 of the Education Code is repealed.
  SEC. 57.  Section 17584 of the Education Code is repealed.
  SEC. 58.  Section 17584.1 of the Education Code, as amended by
Section 18 of Chapter 7 of the Statutes of 2011, is repealed.
  SEC. 59.  Section 17584.1 of the Education Code, as amended by
Section 19 of Chapter 7 of the Statutes of 2011, is repealed.
  SEC. 60.  Section 17584.2 of the Education Code is repealed.
  SEC. 61.  Section 17584.3 of the Education Code is repealed.
  SEC. 62.  Section 17585 of the Education Code is repealed.
  SEC. 63.  Section 17586 of the Education Code is repealed.
  SEC. 64.  Section 17587 of the Education Code is repealed.
  SEC. 65.  Section 17588 of the Education Code is repealed.
  SEC. 66.  Section 17592 of the Education Code is repealed.
  SEC. 67.  Section 17592.74 of the Education Code is amended to
read:
   17592.74.  Notwithstanding any other law, the funds provided to
school districts from the School Facilities Emergency Repair Account
pursuant to this article for the purpose of emergency repair grants
shall not be deposited into a school district deferred maintenance
fund for purposes established pursuant to Section 17582.
  SEC. 68.  Part 10.7 (commencing with Section 17910) of Division 1
of Title 1 of the Education Code is repealed.
  SEC. 69.  Article 3.6 (commencing with Section 32228) of Chapter 2
of Part 19 of Division 1 of Title 1 of the Education Code is
repealed.
  SEC. 70.  Section 32282 of the Education Code is amended to read:
   32282.  (a) The comprehensive school safety plan shall include,
but not be limited to, both of the following:
   (1) Assessing the current status of school crime committed on
school campuses and at school-related functions.
   (2) Identifying appropriate strategies and programs that will
provide or maintain a high level of school safety and address the
school's procedures for complying with existing laws related to
school safety, which shall include the development of all of the
following:
   (A) Child abuse reporting procedures consistent with Article 2.5
(commencing with Section 11164) of Chapter 2 of Title 1 of Part 4 of
the Penal Code.
   (B) Disaster procedures, routine and emergency, including
adaptations for pupils with disabilities in accordance with the
federal Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12101
et seq.). The disaster procedures shall also include, but not be
limited to, both of the following:
   (i) Establishing an earthquake emergency procedure system in every
public school building having an occupant capacity of 50 or more
pupils or more than one classroom. A school district or county office
of education may work with the California Emergency Management
Agency and the Seismic Safety Commission to develop and establish the
earthquake emergency procedure system. The system shall include, but
not be limited to, all of the following:
   (I) A school building disaster plan, ready for implementation at
any time, for maintaining the safety and care of pupils and staff.
   (II) A drop procedure whereby each pupil and staff member takes
cover under a table or desk, dropping to his or her knees, with the
head protected by the arms, and the back to the windows. A drop
procedure practice shall be held at least once each school quarter in
elementary schools and at least once a semester in secondary
schools.
   (III) Protective measures to be taken before, during, and
following an earthquake.
   (IV) A program to ensure that pupils and both the certificated and
classified staff are aware of, and properly trained in, the
earthquake emergency procedure system.
   (ii) Establishing a procedure to allow a public agency, including
the American Red Cross, to use school buildings, grounds, and
equipment for mass care and welfare shelters during disasters or
other emergencies affecting the public health and welfare. The school
district or county office of education shall cooperate with the
public agency in furnishing and maintaining the services as the
school district or county office of education may deem necessary to
meet the needs of the community.
   (C) Policies pursuant to subdivision (d) of Section 48915 for
pupils who committed an act listed in subdivision (c) of Section
48915 and other school-designated serious acts which would lead to
suspension, expulsion, or mandatory expulsion recommendations
pursuant to Article 1 (commencing with Section 48900) of Chapter 6 of
Part 27 of Division 4 of Title 2.
   (D) Procedures to notify teachers of dangerous pupils pursuant to
Section 49079.
   (E) A discrimination and harassment policy consistent with the
prohibition against discrimination contained in Chapter 2 (commencing
with Section 200) of Part 1.
   (F) The provisions of any schoolwide dress code, pursuant to
Section 35183, that prohibits pupils from wearing "gang-related
apparel," if the school has adopted that type of a dress code. For
those purposes, the comprehensive school safety plan shall define
"gang-related apparel." The definition shall be limited to apparel
that, if worn or displayed on a school campus, reasonably could be
determined to threaten the health and safety of the school
environment. Any schoolwide dress code established pursuant to this
section and Section 35183 shall be enforced on the school campus and
at any school-sponsored activity by the principal of the school or
the person designated by the principal. For purposes of this
paragraph, "gang-related apparel" shall not be considered a protected
form of speech pursuant to Section 48950.
   (G) Procedures for safe ingress and egress of pupils, parents, and
school employees to and from school.
   (H) A safe and orderly environment conducive to learning at the
school.
   (I) The rules and procedures on school discipline adopted pursuant
to Sections 35291 and 35291.5.
   (b) It is the intent of the Legislature that schools develop
comprehensive school safety plans using existing resources, including
the materials and services of the partnership, pursuant to this
chapter. It is also the intent of the Legislature that schools use
the handbook developed and
distributed by the School/Law Enforcement Partnership Program
entitled "Safe Schools: A Planning Guide for Action" in conjunction
with developing their plan for school safety.
   (c) Each schoolsite council or school safety planning committee in
developing and updating a comprehensive school safety plan shall,
where practical, consult, cooperate, and coordinate with other
schoolsite councils or school safety planning committees.
   (d) The comprehensive school safety plan may be evaluated and
amended, as needed, by the school safety planning committee, but
shall be evaluated at least once a year, to ensure that the
comprehensive school safety plan is properly implemented. An updated
file of all safety-related plans and materials shall be readily
available for inspection by the public.
   (e) As comprehensive school safety plans are reviewed and updated,
the Legislature encourages all plans, to the extent that resources
are available, to include policies and procedures aimed at the
prevention of bullying.
   (f) The comprehensive school safety plan, as written and updated
by the schoolsite council or school safety planning committee, shall
be submitted for approval under subdivision (a) of Section 32288.
  SEC. 71.  Section 32285 of the Education Code is repealed.
  SEC. 72.  Section 33127 of the Education Code is amended to read:
   33127.  (a) The Superintendent, the Controller, and the Director
of the Department of Finance shall develop, on or before March 1,
1989, standards and criteria to be reviewed and adopted by the state
board, and to be used by local educational agencies in the
development of annual budgets and the management of subsequent
expenditures from that budget. During the development of the
standards and criteria, the Superintendent shall convene a committee
composed of representatives from school districts, county offices of
education, state agencies, the Legislature, and appropriate labor and
professional organizations. The committee may review and comment on
the proposal standards and criteria prior to their adoption. In
addition, the standards and criteria shall be used to monitor the
fiscal stability of local educational agencies as provided for in
Sections 1240.1, 1240.2, 1621, 1623, 33131, 42127, and 42127.1.
   (b) The Superintendent, the Controller, and the Director of the
Department of Finance shall update the standards and criteria
developed pursuant to subdivision (a) on or before September 1, 2005.
The updated standards and criteria shall be reviewed and adopted
pursuant to the procedure established by subdivision (a) and are
applicable to local educational agency budgets commencing with the
2006-07 fiscal year and each fiscal year thereafter.
   (c) The Superintendent, the Controller, and the Director of the
Department of Finance shall update the standards and criteria
developed pursuant to subdivision (a) on or before January 1, 2014.
Standards and criteria related to the requirements of Article 3.8
(commencing with Section 52060) of Chapter 6.1 of Part 28 of Title 2
shall be included. The updated standards and criteria shall be
reviewed and adopted pursuant to the procedure established by
subdivision (a) and are applicable to local educational agency
budgets commencing with the 2014-15 fiscal year and each fiscal year
thereafter.
   (d) After January 1, 2014, to the extent necessary, any revisions
or updates to the standards and criteria shall be developed by the
Superintendent, the Controller, and the Director of the Department of
Finance pursuant the procedures established by subdivision (a). The
revisions or updates shall specify the fiscal year in which the
revisions or updates are applicable.
  SEC. 73.  Section 35186 of the Education Code is amended to read:
   35186.  (a) A school district shall use the uniform complaint
process it has adopted as required by Chapter 5.1 (commencing with
Section 4600) of Division 1 of Title 5 of the California Code of
Regulations, with modifications, as necessary, to help identify and
resolve any deficiencies related to instructional materials,
emergency or urgent facilities conditions that pose a threat to the
health and safety of pupils or staff, and teacher vacancy or
misassignment.
   (1) A complaint may be filed anonymously. A complainant who
identifies himself or herself is entitled to a response if he or she
indicates that a response is requested. A complaint form shall
include a space to mark to indicate whether a response is requested.
If Section 48985 is otherwise applicable, the response, if requested,
and report shall be written in English and the primary language in
which the complaint was filed. All complaints and responses are
public records.
   (2) The complaint form shall specify the location for filing a
complaint. A complainant may add as much text to explain the
complaint as he or she wishes.
   (3) Except as provided pursuant to paragraph (4), a complaint
shall be filed with the principal of the school or his or her
designee. A complaint about problems beyond the authority of the
school principal shall be forwarded in a timely manner but not to
exceed 10 working days to the appropriate school district official
for resolution.
   (b) The principal or the designee of the district superintendent,
as applicable, shall make all reasonable efforts to investigate any
problem within his or her authority. The principal or designee of the
district superintendent shall remedy a valid complaint within a
reasonable time period but not to exceed 30 working days from the
date the complaint was received. The principal or designee of the
district superintendent shall report to the complainant the
resolution of the complaint within 45 working days of the initial
filing. If the principal makes this report, the principal shall also
report the same information in the same timeframe to the designee of
the district superintendent.
   (c) A complainant not satisfied with the resolution of the
principal or the designee of the district superintendent has the
right to describe the complaint to the governing board of the school
district at a regularly scheduled hearing of the governing board of
the school district. As to complaints involving a condition of a
facility that poses an emergency or urgent threat, as defined in
paragraph (1) of subdivision (c) of Section 17592.72, a complainant
who is not satisfied with the resolution proffered by the principal
or the designee of the district superintendent has the right to file
an appeal to the Superintendent, who shall provide a written report
to the state board describing the basis for the complaint and, as
appropriate, a proposed remedy for the issue described in the
complaint.
   (d) A school district shall report summarized data on the nature
and resolution of all complaints on a quarterly basis to the county
superintendent of schools and the governing board of the school
district. The summaries shall be publicly reported on a quarterly
basis at a regularly scheduled meeting of the governing board of the
school district. The report shall include the number of complaints by
general subject area with the number of resolved and unresolved
complaints. The complaints and written responses shall be available
as public records.
   (e) The procedure required pursuant to this section is intended to
address all of the following:
   (1) A complaint related to instructional materials as follows:
   (A) A pupil, including an English learner, does not have
standards-aligned textbooks or instructional materials or
state-adopted or district-adopted textbooks or other required
instructional material to use in class.
   (B) A pupil does not have access to instructional materials to use
at home or after school.
   (C) Textbooks or instructional materials are in poor or unusable
condition, have missing pages, or are unreadable due to damage.
   (2) A complaint related to teacher vacancy or misassignment as
follows:
   (A) A semester begins and a teacher vacancy exists.
   (B) A teacher who lacks credentials or training to teach English
learners is assigned to teach a class with more than 20-percent
English learner pupils in the class. This subparagraph does not
relieve a school district from complying with state or federal law
regarding teachers of English learners.
   (C) A teacher is assigned to teach a class for which the teacher
lacks subject matter competency.
   (3) A complaint related to the condition of facilities that pose
an emergency or urgent threat to the health or safety of pupils or
staff as defined in paragraph (1) of subdivision (c) of Section
17592.72 and any other emergency conditions the school district
determines appropriate and the requirements established pursuant to
subdivision (a) of Section 35292.5.
   (f) In order to identify appropriate subjects of complaint, a
notice shall be posted in each classroom in each school in the school
district notifying parents, guardians, pupils, and teachers of the
following:
   (1) There should be sufficient textbooks and instructional
materials. For there to be sufficient textbooks and instructional
materials each pupil, including English learners, must have a
textbook or instructional materials, or both, to use in class and to
take home.
   (2) School facilities must be clean, safe, and maintained in good
repair.
   (3) There should be no teacher vacancies or misassignments as
defined in paragraphs (2) and (3) of subdivision (h).
   (4) The location at which to obtain a form to file a complaint in
case of a shortage. Posting a notice downloadable from the Internet
Web site of the department shall satisfy this requirement.
   (g) A local educational agency shall establish local policies and
procedures, post notices, and implement this section on or before
January 1, 2005.
   (h) For purposes of this section, the following definitions apply:

   (1) "Good repair" has the same meaning as specified in subdivision
(d) of Section 17002.
   (2) "Misassignment" means the placement of a certificated employee
in a teaching or services position for which the employee does not
hold a legally recognized certificate or credential or the placement
of a certificated employee in a teaching or services position that
the employee is not otherwise authorized by statute to hold.
   (3) "Teacher vacancy" means a position to which a single
designated certificated employee has not been assigned at the
beginning of the year for an entire year or, if the position is for a
one-semester course, a position to which a single designated
certificated employee has not been assigned at the beginning of a
semester for an entire semester.
  SEC. 74.  Section 35292.5 of the Education Code is amended to read:

   35292.5.  (a) Every public and private school maintaining any
combination of classes from kindergarten to grade 12, inclusive,
shall comply with all of the following:
   (1) Every restroom shall at all times be maintained and cleaned
regularly, fully operational and stocked at all times with toilet
paper, soap, and paper towels or functional hand dryers.
   (2) The school shall keep all restrooms open during school hours
when pupils are not in classes, and shall keep a sufficient number of
restrooms open during school hours when pupils are in classes.
   (b) Notwithstanding subdivision (a), a school may temporarily
close a restroom as necessary for pupil safety or as necessary to
repair the facility.
  SEC. 75.  Article 10.4 (commencing with Section 35294.10) of
Chapter 2 of Part 21 of Division 3 of Title 2 of the Education Code
is repealed.
  SEC. 76.  Section 35735 of the Education Code is amended to read:
   35735.  (a) Each proposal for the reorganization of school
districts shall include a computation of the current and projected
local control funding formula allocation pursuant to Section
42238.02, as implemented by Section 42238.03, per unit of average
daily attendance for the school districts. That computation shall be
an integral part of the proposal and shall not be considered
separately from the proposal. The computation of the local control
funding formula allocation pursuant to Section 42238.02, as
implemented by Section 42238.03, for the newly organized school
districts shall be based on the current information available for
each affected school district for the second principal apportionment
period for the fiscal year before the fiscal year in which the
reorganization is to become effective, unless subdivision (f)
applies, in which case the computation for the newly organized school
districts shall be based on the local control funding formula grant
pursuant to Section 42238.02, as implemented by Section 42238.03. For
purposes of this article "affected school district" means a school
district affected by a reorganization because all or a portion of its
average daily attendance is to be included in the newly organized
school districts.
   (b) The county superintendent of schools shall compute the local
control funding formula allocation pursuant to Section 42238.02, as
implemented by Section 42238.03, per unit of average daily attendance
pursuant to Section 35735.1 for a school district involved in an
action to reorganize and in an action to transfer territory.
   (c) The department shall use information provided pursuant to
subdivision (a) by the county superintendent of schools in each
county that has a school district affected by an action to unify or
by an appeal of a transfer of territory to compute the local control
funding formula allocation pursuant to Section 42238.02, as
implemented by Section 42238.03, per unit of average daily attendance
for a newly organized school district pursuant to Section 35735.1.
   (d) This section shall only apply to any reorganization proposal
approved by the state board subsequent to July 1, 2013.
   (e) Any costs incurred by the county superintendent of schools in
preparing reports pursuant to this section may be billed to the
affected school districts on a proportionate basis.
   (f) Upon a determination that all school districts or charter
schools equal or exceed the local control funding formula target
computed pursuant to Section 42238.02 as determined by the
calculation of a zero difference pursuant to paragraph (1) of
subdivision (b) of Section 42238.03 for all school districts and
charter schools, a reorganizing school district shall compute a per
unit of average daily attendance funding level pursuant to the local
control funding formula pursuant to Section 42238.02.
  SEC. 77.  Section 35735.1 of the Education Code is amended to read:

   35735.1.  (a) The local control funding formula allocation per
unit of average daily attendance for newly organized school districts
shall be equal to the total of the amount of the local control
funding formula allocation pursuant to Section 42238.02, as
implemented by Section 42238.03, per unit of average daily attendance
of the affected school districts computed pursuant to paragraph (1).
The following computations shall be made to determine the local
control funding formula allocation pursuant to Section 42238.02, as
implemented by Section 42238.03, per unit of average daily attendance
for the newly organized school districts:
   (1) Perform the following computation to arrive at the blended
local control funding formula pursuant to Section 42238.02, as
implemented by Section 42238.03:
   (A) Based on the current information available for each affected
school district for the second principal apportionment period for the
fiscal year before the fiscal year in which the reorganization is to
become effective, multiply the local control funding formula
allocation pursuant to Section 42238.02, as implemented by Section
42238.03, per unit of average daily attendance for that school
district by the number of units of average daily attendance for that
school district that the county superintendent of schools determines
will be included in the proposed school district.
   (B) Add the amounts calculated pursuant to subparagraph (A) and
divide that sum by the number of units of average daily attendance in
the newly organized school districts.
   (b) The amount determined pursuant to subdivision (a) shall be the
local control funding formula allocation pursuant to Section
42238.02, as implemented by Section 42238.03, per unit of average
daily attendance for the newly organized school districts.
   (c) The average daily attendance of a newly organized school
district, for purposes of Sections 42238.02 and 42238.03, shall be
the average daily attendance that is attributable to the area
reorganized for the fiscal year before the fiscal year in which the
new school district becomes effective for all purposes.
   (d) Notwithstanding this section, commencing with the 2013-14
fiscal year, a newly reorganized school district shall receive
state-aid funding pursuant to paragraph (3) of subdivision (b) of
Section 42238.03 of at least the total combined funding amount
received by each school district pursuant to paragraphs (1) and (2)
of subdivision (a) of Section 42238.03 for the fiscal year before the
fiscal year in which the new school district becomes effective for
all purposes.
   (e) Notwithstanding any other law, this section shall not be
subject to waiver by the state board pursuant to Section 33050 or by
the Superintendent.
   (f) Upon a determination that all school districts or charter
schools equal or exceed the local control funding formula target
computed pursuant to Section 42238.02 as determined by the
calculation of a zero difference pursuant to paragraph (1) of
subdivision (b) of Section 42238.03, for all school districts and
charter schools, this section shall not apply and the newly
reorganized school district shall receive an allocation equal to the
amount calculated under Section 42238.02 in that fiscal year and
future fiscal years.
  SEC. 78.  Section 35735.2 of the Education Code is repealed.
  SEC. 79.  Section 35735.3 of the Education Code is repealed.
  SEC. 80.  Section 35735.4 of the Education Code is repealed.
  SEC. 81.  Section 35736 of the Education Code is amended to read:
   35736.  Plans and recommendations may include a proposal for
dividing the property, other than real property, and obligations of
any school district proposed to be divided between two or more school
districts, or proposed to be partially included in one or more
school districts. As used in this section, "property" includes funds,
cash on hand, and moneys due but uncollected on the date
reorganization becomes effective for all purposes, and state
apportionments based on average daily attendance earned in the year
immediately preceding the date reorganization becomes effective for
all purposes. In providing for this division, the plans and
recommendations may consider the assessed valuation of each portion
of the school district, the local control funding formula allocation
pursuant to Section 42238.02, as implemented by Section 42238.03, per
pupil in each school district, the number of children of school age
residing in each portion of the school district, the value and
location of the school property, and such other matters as may be
deemed pertinent and equitable. Any such proposal shall be an
integral part of the proposal and not a separate proposition.
  SEC. 82.  Section 35736.5 is added to the Education Code, to read:
   35736.5.  Sections 35735 to 35736, inclusive, shall only apply to
school district reorganizations undertaken after July 1, 2013.
Reorganizations occurring before July 1, 2013, shall occur pursuant
to Sections 35735 to 35736, inclusive, as those sections read on
January 1, 2013.
  SEC. 83.  Article 4 (commencing with Section 37252) of Chapter 2 of
Part 22 of Division 3 of Title 2 of the Education Code is repealed.
  SEC. 84.  Chapter 2.5 (commencing with Section 37300) of Part 22 of
Division 3 of Title 2 of the Education Code is repealed.
  SEC. 85.  Section 37700 of the Education Code is amended to read:
   37700.  (a) Notwithstanding any other law, the Pacific Unified
School District, the Leggett Valley Unified School District, and the
Reeds Creek Elementary School District may operate one or more
schools in their respective districts on a four-day school week, if
the district complies with the instructional time requirements
specified in Section 37701 and the other requirements of this
chapter.
   (b) If a school district operates one or more schools on a
four-day week pursuant to this section and the program for the school
year provides less than the 180 days of instruction required under
Section 46200, as it read on January 1, 2013, the Superintendent
shall reduce the local control funding formula allocation pursuant to
Section 42238.02, as implemented pursuant to Section 42238.03, per
unit of average daily attendance for that fiscal year by the amount
the school district would have received for the increase received
pursuant to subdivision (a) of Section 46200, as it read on January
1, 2013, as adjusted in fiscal years subsequent to the 1984-85 fiscal
year. If a school district operates one or more schools on a
four-day school week pursuant to this section and the program
provides less than the minimum instructional minutes required under
Section 46201, as it read on January 1, 2013, the Superintendent
shall reduce the local control funding formula allocation pursuant to
Section 42238.02, as implemented pursuant to Section 42238.03, per
unit of average daily attendance for that fiscal year in which the
reduction occurs by the amount the school district would have
received for the increase in the 1987-88 fiscal year base revenue
limit per unit of average daily attendance pursuant to paragraph (6)
of subdivision (b) of Section 42238, as it read on June 30, 2013, as
adjusted from the 1987-88 fiscal year to the 2012-13 fiscal year,
inclusive, and, commencing with the 2013-14 fiscal year, pursuant to
the local control funding formula allocation pursuant to Section
42238.02, as implemented pursuant to Section 42238.03, per unit of
average daily attendance.
   (c) A school district with an exclusive bargaining representative
may operate a school on a four-day school week pursuant to this
section only if the school district and the representative of each
bargaining unit of school district employees mutually agree to that
operation in a memorandum of understanding.
   (d) Notwithstanding this section, upon a determination that a
school district identified in subdivision (a) equals or exceeds its
local control funding formula target computed pursuant to Section
42238.02 as determined by the calculation of a zero difference
pursuant to paragraph (1) of subdivision (b) of Section 42238.03, the
school district, as a condition of apportionment pursuant to Section
42238.02, as implemented pursuant to Section 42238.03, shall offer
180 days or more of instruction per school year, and meet the minimum
minute requirements pursuant to paragraph (1) of subdivision (a) of
Section 46207.
  SEC. 86.  Section 37710.3 of the Education Code is amended to read:

   37710.3.  (a) Beginning in the 2010-11 fiscal year, the Alpaugh
Unified School District may operate one or more schools in the school
district on a four-day school week if the district complies with the
instructional time requirements in Section 37701 and the other
requirements of this chapter. The state board may waive
five-consecutive-day operating requirements for any of the following
programs that operate on a four-day school week pursuant to this
section, provided that the district meets the minimum time
requirement for each program:
   (1) Preschools.
   (2) Before and after school programs.
   (3) Independent study programs.
   (4) Child nutrition and food service programs.
   (5) Community day schools.
   (6) Regional occupational centers or programs.
   (7) Continuation high schools.
   (b) If the school district operates one or more schools on a
four-day school week pursuant to this section, and the program for
the school year provides fewer than the 180 days of instruction
required under Section 46200, as it read on January 1, 2013, the
Superintendent shall reduce the local control funding formula
allocation pursuant to Section 42238.02, as implemented pursuant to
Section 42238.03, per unit of average daily attendance for that
fiscal year by the amount the school district would have received for
the increase received pursuant to subdivision (a) of Section 46200,
as it read on January 1, 2013, as adjusted in fiscal years subsequent
to the 1984-85 fiscal year. If the school district operates one or
more schools on a four-day school week pursuant to this section, and
the program provides fewer than the minimum instructional minutes
required under Section 46201, as it read on January 1, 2013, the
Superintendent shall reduce the local control funding formula
allocation pursuant to Section 42238.02, as implemented pursuant to
Section 42238.03, per unit of average daily attendance for that
fiscal year in which the reduction occurs by the amount the school
district would have received for the increase in the base revenue
limit per unit of average daily attendance pursuant to subdivision
(a) of Section 46201, as it read on January 1, 2013, as adjusted from
the 1987-88 fiscal year to the 2012-13 fiscal year, inclusive, and,
commencing with the 2013-14 fiscal year, pursuant to the local
control funding formula allocation pursuant to Section 42238.02, as
implemented pursuant to Section 42238.03, per unit of average daily
attendance.
   (c) Notwithstanding Section 37710, if a small school having
between 11 and 99 valid Standardized Testing and Reporting Program
test scores operating on a four-day school week fails to achieve its
Academic Performance Index growth target pursuant to Section 52052
for two consecutive years, the authority of that school to operate on
a four-day school week shall be permanently revoked commencing with
the school year following the second consecutive year the school
failed to achieve its Academic Performance Index growth rate.
   (d) If the school district operates one or more schools on a
four-day school week pursuant to this section, the school district
shall submit a report to the department, the Senate Committee on
Education, and the Assembly Committee on Education on or before
January 15, 2015. The report shall include, but not necessarily be
limited to, information on all of the following:
   (1) Programs the district offered on the fifth schoolday and their
participation rates.
   (2) Whether the four-day school week schedule resulted in any
fiscal savings.
   (3) Impact on overall attendance of the schools operating a
four-day school week.
   (4) Programs for which the state board waived minimum time and
five-consecutive-day requirements and the operational and educational
effects                                             of the programs
if they operated at less time than required.
   (5) The impact of the four-day school week on crime statistics,
especially on the day on which school would otherwise be in session.
   (6) Information on the Academic Performance Index, pursuant to
Section 52052, for every year a school in the district operated on a
four-day school week. The information shall include, but not
necessarily be limited to, the base and growth Academic Performance
Index of each school that operated on a four-day school week and
whether that school met the Academic Performance growth targets.
   (e) Notwithstanding this section, upon a determination that a
school district identified in subdivision (a) equals or exceeds its
local control funding formula target computed pursuant to Section
42238.02 as determined by the calculation of a zero difference
pursuant to paragraph (1) of subdivision (b) of Section 42238.03, the
school district, as a condition of apportionment pursuant to Section
42238.02, as implemented pursuant to Section 42238.03, shall offer
180 days or more of instruction per school year, and meet the minimum
minute requirements pursuant to paragraph (1) of subdivision (a) of
Section 46207.
   (f) This section shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or extends
that date.
  SEC. 87.  Section 37710.5 of the Education Code is amended to read:

   37710.5.  (a) Beginning in the 2009-10 fiscal year, the Potter
Valley Community Unified School District may operate one or more
schools in the school district on a four-day school week if the
school district complies with the instructional time requirements
specified in Section 37701 and the other requirements of this
chapter. The state board may waive five-consecutive-day operating
requirements for any of the following programs that operate on a
four-day week pursuant to this section, provided that the school
district meets the minimum time requirement for each program:
   (1) Preschools.
   (2) Before and after school programs.
   (3) Independent study programs.
   (4) Child nutrition and food service programs.
   (5) Community day schools.
   (6) Regional occupational centers or programs.
   (7) Continuation high schools.
   (b) If the school district operates one or more schools on a
four-day week pursuant to this section, and the program for the
school year provides fewer than the 180 days of instruction required
under Section 46200, as it read on January 1, 2013, the
Superintendent shall reduce the local control funding formula
allocation pursuant to Section 42238.02, as implemented pursuant to
Section 42238.03, per unit of average daily attendance for that
fiscal year by the amount the school district would have received for
the increase received pursuant to subdivision (a) of Section 46200,
as it read on January 1, 2013, as adjusted in fiscal years subsequent
to the 1984-85 fiscal year. If the school district operates one or
more schools on a four-day school week pursuant to this section, and
the program provides fewer than the minimum instructional minutes
required under Section 46201, as it read on January 1, 2013, the
Superintendent shall reduce the local control funding formula
allocation pursuant to Section 42238.02, as implemented pursuant to
Section 42238.03, per unit of average daily attendance for that
fiscal year in which the reduction occurs by the amount the school
district would have received for the increase in the base revenue
limit per unit of average daily attendance pursuant to subdivision
(a) of Section 46201, as it read on January 1, 2013, as adjusted from
the 1987-88 fiscal year to the 2012-13 fiscal year, inclusive, and,
commencing with the 2013-14 fiscal year, pursuant to Section
42238.02, as implemented pursuant to Section 42238.03, per unit of
average daily attendance.
   (c) If the school district operates one or more schools on a
four-day school week pursuant to this section, the school district
shall submit a report to the department, the Senate Committee on
Education and the Assembly Committee on Education on January 15,
2014. The report shall include, but not necessarily be limited to,
information on the following:
   (1) Programs the district offered on the fifth day and their
participation rates.
   (2) Whether the four-day school week schedule resulted in any
fiscal savings.
   (3) Impact on overall attendance of the schools operating a
four-day school week.
   (4) Programs for which the Superintendent waived minimum time and
five-consecutive-day requirements and the operational and educational
effect of the programs if they operated at less time than required.
   (d) Notwithstanding this section, upon a determination that a
school district identified in subdivision (a) equals or exceeds its
local control funding formula target computed pursuant to Section
42238.02 as determined by the calculation of a zero difference
pursuant to paragraph (1) of subdivision (b) of Section 42238.03, the
school district, as a condition of apportionment pursuant to Section
42238.02, as implemented pursuant to Section 42238.03, shall offer
180 days or more of instruction per school year, and meet the minimum
minute requirements pursuant to paragraph (1) of subdivision (a) of
Section 46207.
   (e) This section shall remain in effect only until January 1,
2015, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2015, deletes or extends
that date.
  SEC. 88.  Section 38101 of the Education Code is amended to read:
   38101.  (a) The governing board of a school district may authorize
expenditures from the cafeteria fund or cafeteria account only for
those charges from that fund or account that are defined in the
California School Accounting Manual.
   (b) A food service program shall not be charged more than once for
expenditures for the same service. If a food service program is
being charged for a service as a direct cost, the school district
shall not also allocate that cost as a direct support cost or
indirect cost.
   (c) For purposes of this section, an "indirect cost" shall be
limited to the lesser of the school district's prior year indirect
cost rate as approved by the department or the statewide average
approved indirect cost for the second prior fiscal year.
   (d) Charges to, or transfers from, a food service program shall
indicate when the charge or transfer was made and shall be
accompanied by a written explanation of the purpose of, and basis
for, the expenditure.
   (e) This section does not authorize a school district to charge a
food service program any charges prohibited by state or federal law
or regulation.
   (f) If the department and the Department of Finance concur that a
school district has violated this section, the Superintendent shall
direct that school district to transfer double the amount improperly
transferred to the general fund of the school district from that fund
to the cafeteria fund of the school district or cafeteria account
for the subsequent fiscal year which is then to be used for the
improvement of the food service program of the school district. If
the school district fails to make that transfer as directed, the
Superintendent shall reduce the regular apportionment of the school
district determined pursuant to Section 42238, as it read on January
1, 2013, or the local control funding formula allocation pursuant to
Section 42238.02, as implemented pursuant to Section 42238.03, and
increase the child nutrition allowance of the school district
determined pursuant to Section 41350 by double the amount improperly
transferred to the general fund of the school district and that
amount is then to be used for improvement of the food service
program.
   (g) It is the intent of the Legislature in enacting this section
that responsible school district officials be held fully accountable
for the accounting and reporting of food service programs and that
minor and inadvertent instances of noncompliance be resolved in a
fair and equitable manner to the satisfaction of the Superintendent
and the Department of Finance.
   (h) The Superintendent, with the approval of the Department of
Finance, may waive up to the full transfer amount in subdivision (f)
if he or she determines that the noncompliance involved is minor or
inadvertent, or both.
  SEC. 89.  Section 39809.5 of the Education Code is repealed.
  SEC. 90.  Article 2 (commencing with Section 39820) of Chapter 1 of
Part 23.5 of Division 3 of Title 2 of the Education Code is
repealed.
  SEC. 91.  Section 41003.3 of the Education Code is amended to read:

   41003.3.  (a) Consistent with the provisions of Article 4
(commencing with Section 17455) of Chapter 4 of Part 10.5 of Division
1 of Title 1, from July 1, 2008, to June 30, 2010, inclusive, the
Dixon Unified School District may sell surplus real property
previously used as the school farm on Sievers Road, located five
miles outside of the city and which is not feasible for future school
construction, together with any personal property located thereon,
purchased entirely with local funds. The proceeds of the sale shall
be deposited into the general fund of the school district in order to
reestablish a 3-percent reserve. The remainder of the proceeds from
the sale of the property that are not utilized to reestablish the
3-percent reserve shall be deposited into the capital outlay fund of
the school district.
   (b) In order to expend funds pursuant to subdivision (a), the
school district shall meet all of the following conditions:
   (1) The school district shall not be eligible for new construction
funding for 10 years from the date that funds are deposited into the
general fund of the school district pursuant to subdivision (a),
except that the school district may apply for new construction funds
if both of the following conditions are met:
   (A) At least five years have elapsed since the date upon which the
sale was executed pursuant to subdivision (a).
   (B) The State Allocation Board determines that the school district
has demonstrated enrollment growth or a need for additional sites or
building construction that the school district could not have easily
anticipated at the time the sale was executed pursuant to
subdivision (a).
   (2) The governing board of the school district shall complete a
governance training program focusing on fiscal management provided by
the County Office Fiscal Crisis and Management Assistance Team
(FCMAT).
   (3) Any remaining funds from the sale of the property shall be
exhausted for capital outlay purposes before a request for
modernization funding.
   (4) Notwithstanding any other provision of law, the Dixon Unified
School District, from July 1, 2008, to June 30, 2010, inclusive,
shall not be eligible to receive financial hardship assistance
pursuant to Article 8 (commencing with Section 17075.10) of Chapter
12.5 of Part 10 of Division 1 of Title 1.
   (5) The governing board of the school district shall certify all
of the following to the State Allocation Board:
   (A) The school district has no major deferred maintenance
requirements that cannot be completed with existing capital outlay
resources.
   (B) The sale of the real property pursuant to this section does
not violate any provisions of a local general obligation bond act.
   (C) The real property sold pursuant to this section is not
suitable to meet any projected school construction need for the next
10 years.
   (6) Before exercising the authority granted by this section, the
governing board of the school district, at a regularly scheduled
meeting, shall present a plan for expending one-time resources
pursuant to this section. The plan shall identify the source and use
of the funds, and describe how the proposed use of funds, in
combination with budget reductions, will address the school district'
s deficit spending and restore the ongoing fiscal solvency of the
school district.
   (7) No later than 10 years after the date of the sale of surplus
property pursuant to subdivision (a), the school district shall
deposit into its capital outlay fund an amount equal to the amount of
the proceeds from the sale of the property that is deposited into
the school district's general fund as needed to establish the
3-percent reserve in accordance with subdivision (a).
   (c) This section shall remain in effect only until January 1,
2021, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2021, deletes or extends
that date.
  SEC. 92.  Section 41012 of the Education Code is amended to read:
   41012.  For purposes of determining apportionments pursuant to
Chapter 5 (commencing with Section 56500) and Chapter 6 (commencing
with Section 56600) of Part 30 of Division 4, the Superintendent
shall require the use of a uniform cost accounting procedure, as set
forth in the California School Accounting Manual.
  SEC. 93.  Section 41020 of the Education Code is amended to read:
   41020.  (a) It is the intent of the Legislature to encourage sound
fiscal management practices among local educational agencies for the
most efficient and effective use of public funds for the education
of children in California by strengthening fiscal accountability at
the school district, county, and state levels.
   (b) (1) Not later than the first day of May of each fiscal year,
each county superintendent of schools shall provide for an audit of
all funds under his or her jurisdiction and control and the governing
board of each local educational agency shall either provide for an
audit of the books and accounts of the local educational agency,
including an audit of income and expenditures by source of funds, or
make arrangements with the county superintendent of schools having
jurisdiction over the local educational agency to provide for that
auditing.
   (2) A contract to perform the audit of a local educational agency
that has a disapproved budget or has received a negative
certification on any budget or interim financial report during the
current fiscal year or either of the two preceding fiscal years, or
for which the county superintendent of schools has otherwise
determined that a lack of going concern exists, is not valid unless
approved by the responsible county superintendent of schools and the
governing board.
   (3) If the governing board of a local educational agency has not
provided for an audit of the books and accounts of the local
educational agency by April 1, the county superintendent of schools
having jurisdiction over the local educational agency shall provide
for the audit of each local educational agency.
   (4) An audit conducted pursuant to this section shall comply fully
with the Government Auditing Standards issued by the Comptroller
General of the United States.
   (5) For purposes of this section, "local educational agency" does
not include community colleges.
   (c) Each audit conducted in accordance with this section shall
include all funds of the local educational agency, including the
student body and cafeteria funds and accounts and any other funds
under the control or jurisdiction of the local educational agency.
Each audit shall also include an audit of pupil attendance
procedures. Each audit shall include a determination of whether funds
were expended in accordance with a local control and accountability
plan pursuant to Article 3.8 (commencing with Section 52060) of
Chapter 6.1 of Part 28 of Division 3.
   (d) All audit reports for each fiscal year shall be developed and
reported using a format established by the Controller after
consultation with the Superintendent and the Director of Finance.
   (e) (1) The cost of the audits provided for by the county
superintendent of schools shall be paid from the county school
service fund and the county superintendent of schools shall transfer
the pro rata share of the cost chargeable to each school district
from school district funds.
   (2) The cost of the audit provided for by a governing board shall
be paid from local educational agency funds. The audit of the funds
under the jurisdiction and control of the county superintendent of
schools shall be paid from the county school service fund.
   (f) (1) The audits shall be made by a certified public accountant
or a public accountant, licensed by the California Board of
Accountancy, and selected by the local educational agency, as
applicable, from a directory of certified public accountants and
public accountants deemed by the Controller as qualified to conduct
audits of local educational agencies, which shall be published by the
Controller not later than December 31 of each year.
   (2) Commencing with the 2003-04 fiscal year and except as provided
in subdivision (d) of Section 41320.1, it is unlawful for a public
accounting firm to provide audit services to a local educational
agency if the lead audit partner, or coordinating audit partner,
having primary responsibility for the audit, or the audit partner
responsible for reviewing the audit, has performed audit services for
that local educational agency in each of the six previous fiscal
years. The Education Audits Appeal Panel may waive this requirement
if the panel finds that no otherwise eligible auditor is available to
perform the audit.
   (3) It is the intent of the Legislature that, notwithstanding
paragraph (2), the rotation within public accounting firms conform to
provisions of the federal Sarbanes-Oxley Act of 2002 (Public Law
107-204; 15 U.S.C. Sec. 7201 et seq.), and upon release of the report
required by the act of the Comptroller General of the United States
addressing the mandatory rotation of registered public accounting
firms, the Legislature intends to reconsider the provisions of
paragraph (2). In determining which certified public accountants and
public accountants shall be included in the directory, the Controller
shall use the following criteria:
   (A) The certified public accountants or public accountants shall
be in good standing as certified by the Board of Accountancy.
   (B) The certified public accountants or public accountants, as a
result of a quality control review conducted by the Controller
pursuant to Section 14504.2, shall not have been found to have
conducted an audit in a manner constituting noncompliance with
subdivision (a) of Section 14503.
   (g) (1) The auditor's report shall include each of the following:
   (A) A statement that the audit was conducted pursuant to standards
and procedures developed in accordance with Chapter 3 (commencing
with Section 14500) of Part 9 of Division 1 of Title 1.
   (B) A summary of audit exceptions and management improvement
recommendations.
   (C) Each audit of a local educational agency shall include an
evaluation by the auditor on whether there is substantial doubt about
the ability of the local educational agency to continue as a going
concern for a reasonable period of time. This evaluation shall be
based on the Statement on Auditing Standards (SAS) No. 59, as issued
by the AICPA regarding disclosure requirements relating to the
ability of the entity to continue as a going concern.
   (2) To the extent possible, a description of correction or plan of
correction shall be incorporated in the audit report, describing the
specific actions that are planned to be taken, or that have been
taken, to correct the problem identified by the auditor. The
descriptions of specific actions to be taken or that have been taken
shall not solely consist of general comments such as "will implement,"
"accepted the recommendation," or "will discuss at a later date."
   (h) Not later than December 15, a report of each local educational
agency audit for the preceding fiscal year shall be filed with the
county superintendent of schools of the county in which the local
educational agency is located, the department, and the Controller.
The Superintendent shall make any adjustments necessary in future
apportionments of all state funds, to correct any audit exceptions
revealed by those audit reports.
   (i) (1) Commencing with the 2002-03 audit of local educational
agencies pursuant to this section and subdivision (d) of Section
41320.1, each county superintendent of schools shall be responsible
for reviewing the audit exceptions contained in an audit of a local
educational agency under his or her jurisdiction related to
attendance, inventory of equipment, internal control, and any
miscellaneous items, and determining whether the exceptions have been
either corrected or an acceptable plan of correction has been
developed.
   (2) Commencing with the 2004-05 audit of local educational
agencies pursuant to this section and subdivision (d) of Section
41320.1, each county superintendent of schools shall include in the
review of audit exceptions performed pursuant to this subdivision
those audit exceptions related to use of instructional materials
program funds, teacher misassignments pursuant to Section 44258.9,
information reported on the school accountability report card
required pursuant to Section 33126 and shall determine whether the
exceptions are either corrected or an acceptable plan of correction
has been developed.
   (j) Upon submission of the final audit report to the governing
board of each local educational agency and subsequent receipt of the
audit by the county superintendent of schools having jurisdiction
over the local educational agency, the county office of education
shall do all of the following:
   (1) Review audit exceptions related to attendance, inventory of
equipment, internal control, and other miscellaneous exceptions.
Attendance exceptions or issues shall include, but not be limited to,
those related to local control funding formula allocations pursuant
to Section 42238.02, as implemented by Section 42238.03, and
independent study.
   (2) If a description of the correction or plan of correction has
not been provided as part of the audit required by this section, then
the county superintendent of schools shall notify the local
educational agency and request the governing board of the local
educational agency to provide to the county superintendent of schools
a description of the corrections or plan of correction by March 15.
   (3) Review the description of correction or plan of correction and
determine its adequacy. If the description of the correction or plan
of correction is not adequate, the county superintendent of schools
shall require the local educational agency to resubmit that portion
of its response that is inadequate.
   (k) Each county superintendent of schools shall certify to the
Superintendent and the Controller, not later than May 15, that his or
her staff has reviewed all audits of local educational agencies
under his or her jurisdiction for the prior fiscal year, that all
exceptions that the county superintendent was required to review were
reviewed, and that all of those exceptions, except as otherwise
noted in the certification, have been corrected by the local
educational agency or that an acceptable plan of correction has been
submitted to the county superintendent of schools. In addition, the
county superintendent shall identify, by local educational agency,
any attendance-related audit exception or exceptions involving state
funds, and require the local educational agency to which the audit
exceptions were directed to submit appropriate reporting forms for
processing by the Superintendent.
   (  l  ) In the audit of a local educational agency for a
subsequent year, the auditor shall review the correction or plan or
plans of correction submitted by the local educational agency to
determine if the exceptions have been resolved. If not, the auditor
shall immediately notify the appropriate county office of education
and the department and restate the exception in the audit report.
After receiving that notification, the department shall either
consult with the local educational agency to resolve the exception or
require the county superintendent of schools to follow up with the
local educational agency.
   (m) (1) The Superintendent shall be responsible for ensuring that
local educational agencies have either corrected or developed plans
of correction for any one or more of the following:
   (A) All federal and state compliance audit exceptions identified
in the audit.
   (B) Any exceptions that the county superintendent certifies as of
May 15 have not been corrected.
   (C) Any repeat audit exceptions that are not assigned to a county
superintendent to correct.
   (2) In addition, the Superintendent shall be responsible for
ensuring that county superintendents of schools and each county board
of education that serves as the governing board of a local
educational agency either correct all audit exceptions identified in
the audits of county superintendents of schools and of the local
educational agencies for which the county boards of education serve
as the governing boards or develop acceptable plans of correction for
those exceptions.
   (3) The Superintendent shall report annually to the Controller on
his or her actions to ensure that school districts, county
superintendents of schools, and each county board of education that
serves as the governing board of a school district have either
corrected or developed plans of correction for any of the exceptions
noted pursuant to paragraph (1).
   (n) To facilitate correction of the exceptions identified by the
audits issued pursuant to this section, commencing with 2002-03
audits pursuant to this section, the Controller shall require
auditors to categorize audit exceptions in each audit report in a
manner that will make it clear to both the county superintendent of
schools and the Superintendent which exceptions they are responsible
for ensuring the correction of by a local educational agency. In
addition, the Controller annually shall select a sampling of county
superintendents of schools and perform a followup of the audit
resolution process of those county superintendents of schools and
report the results of that followup to the Superintendent and the
county superintendents of schools that were reviewed.
   (o) County superintendents of schools shall adjust subsequent
local property tax requirements to correct audit exceptions relating
to local educational agency tax rates and tax revenues.
   (p) If a governing board or county superintendent of schools fails
or is unable to make satisfactory arrangements for the audit
pursuant to this section, the Controller shall make arrangements for
the audit and the cost of the audit shall be paid from local
educational agency funds or the county school service fund, as the
case may be.
                                                   (q) This section
does not authorize examination of, or reports on, the curriculum used
or provided for in any local educational agency.
   (r) Notwithstanding any other law, a nonauditing, management, or
other consulting service to be provided to a local educational agency
by a certified public accounting firm while the certified public
accounting firm is performing an audit of the agency pursuant to this
section must be in accord with Government Accounting Standards,
Amendment No. 3, as published by the United States General Accounting
Office.
  SEC. 94.  Section 41202 of the Education Code is amended to read:
   41202.  The words and phrases set forth in subdivision (b) of
Section 8 of Article XVI of the Constitution of the State of
California shall have the following meanings:
   (a) "Moneys to be applied by the State," as used in subdivision
(b) of Section 8 of Article XVI of the California Constitution, means
appropriations from the General Fund that are made for allocation to
school districts, as defined, or community college districts. An
appropriation that is withheld, impounded, or made without provisions
for its allocation to school districts or community college
districts, shall not be considered to be "moneys to be applied by the
State."
   (b) "General Fund revenues which may be appropriated pursuant to
Article XIII B," as used in paragraph (1) of subdivision (b) of
Section 8 of Article XVI, means General Fund revenues that are the
proceeds of taxes as defined by subdivision (c) of Section 8 of
Article XIII B of the California Constitution, including, for the
1986-87 fiscal year only, any revenues that are determined to be in
excess of the appropriations limit established pursuant to Article
XIII B for the fiscal year in which they are received. General Fund
revenues for a fiscal year to which paragraph (1) of subdivision (b)
is being applied shall include, in that computation, only General
Fund revenues for that fiscal year that are the proceeds of taxes, as
defined in subdivision (c) of Section 8 of Article XIII B of the
California Constitution, and shall not include prior fiscal year
revenues. Commencing with the 1995-96 fiscal year, and each fiscal
year thereafter, "General Fund revenues that are the proceeds of
taxes," as defined in subdivision (c) of Section 8 of Article XIII B
of the California Constitution, includes any portion of the proceeds
of taxes received from the state sales tax that are transferred to
the counties pursuant to, and only if, legislation is enacted during
the 1995-96 fiscal year the purpose of which is to realign children's
programs. The amount of the proceeds of taxes shall be computed for
any fiscal year in a manner consistent with the manner in which the
amount of the proceeds of taxes was computed by the Department of
Finance for purposes of the Governor's Budget for the Budget Act of
1986.
   (c) "General Fund revenues appropriated for school districts," as
used in paragraph (1) of subdivision (b) of Section 8 of Article XVI
of the California Constitution, means the sum of appropriations made
that are for allocation to school districts, as defined in Section
41302.5, regardless of whether those appropriations were made from
the General Fund to the Superintendent, to the Controller, or to any
other fund or state agency for the purpose of allocation to school
districts. The full amount of any appropriation shall be included in
the calculation of the percentage required by paragraph (1) of
subdivision (b) of Article XVI, without regard to any unexpended
balance of any appropriation. Any reappropriation of funds
appropriated in any prior year shall not be included in the sum of
appropriations.
   (d) "General Fund revenues appropriated for community college
districts," as used in paragraph (1) of subdivision (b) of Section 8
of Article XVI of the California Constitution, means the sum of
appropriations made that are for allocation to community college
districts, regardless of whether those appropriations were made from
the General Fund to the Controller, to the Chancellor of the
California Community Colleges, or to any other fund or state agency
for the purpose of allocation to community college districts. The
full amount of any appropriation shall be included in the calculation
of the percentage required by paragraph (1) of subdivision (b) of
Article XVI, without regard to any unexpended balance of any
appropriation. Any reappropriation of funds appropriated in any prior
year shall not be included in the sum of appropriations.
   (e) "Total allocations to school districts and community college
districts from General Fund proceeds of taxes appropriated pursuant
to Article XIII B," as used in paragraph (2) or (3) of subdivision
(b) of Section 8 of Article XVI of the California Constitution, means
the sum of appropriations made that are for allocation to school
districts, as defined in Section 41302.5, and community college
districts, regardless of whether those appropriations were made from
the General Fund to the Controller, to the Superintendent, to the
Chancellor of the California Community Colleges, or to any other fund
or state agency for the purpose of allocation to school districts
and community college districts. The full amount of any appropriation
shall be included in the calculation of the percentage required by
paragraph (2) or (3) of subdivision (b) of Section 8 of Article XVI,
without regard to any unexpended balance of any appropriation. Any
reappropriation of funds appropriated in any prior year shall not be
included in the sum of appropriations.
   (f) "General Fund revenues appropriated for school districts and
community college districts, respectively" and "moneys to be applied
by the state for the support of school districts and community
college districts," as used in Section 8 of Article XVI of the
California Constitution, shall include funds appropriated for
part-day California state preschool programs under Article 7
(commencing with Section 8235) of Chapter 2 of Part 6 of Division 1
of Title 1, and the After School Education and Safety Program
established pursuant to Article 22.5 (commencing with Section 8482)
of Chapter 2 of Part 6 of Division 1 of Title 1, and shall not
include any of the following:
   (1) Any appropriation that is not made for allocation to a school
district, as defined in Section 41302.5, or to a community college
district, regardless of whether the appropriation is made for any
purpose that may be considered to be for the benefit to a school
district, as defined in Section 41302.5, or a community college
district. This paragraph shall not be construed to exclude any
funding appropriated for part-day California state preschool programs
under Article 7 (commencing with Section 8235) of Chapter 2 of Part
6 of Division 1 of Title 1 or the After School Education and Safety
Program established pursuant to Article 22.5 (commencing with Section
8482) of Chapter 2 of Part 6 of Division 1 of Title 1.
   (2) Any appropriation made to the Teachers' Retirement Fund or to
the Public Employees' Retirement Fund except those appropriations for
reimbursable state mandates imposed on or before January 1, 1988.
   (3) Any appropriation made to service any public debt approved by
the voters of this state.
   (4) With the exception of the programs identified in paragraph
(1), commencing with the 2011-12 fiscal year, any funds appropriated
for the Child Care and Development Services Act, pursuant to Chapter
2 (commencing with Section 8200) of Part 6 of Division 1 of Title 1.
   (g) "Allocated local proceeds of taxes," as used in paragraph (2)
or (3) of subdivision (b) of Section 8 of Article XVI of the
California Constitution, means, for school districts as defined,
those local revenues, except revenues identified pursuant to
paragraph (5) of subdivision (j) of Section 42238.02, that are used
to offset state aid for school districts in calculations performed
pursuant to Sections 2575, 42238.02, and Chapter 7.2 (commencing with
Section 56836) of Part 30 of Division 4.
   (h) "Allocated local proceeds of taxes," as used in paragraph (2)
or (3) of subdivision (b) of Section 8 of Article XVI of the
California Constitution, means, for community college districts,
those local revenues that are used to offset state aid for community
college districts. In no event shall the revenues or receipts derived
from student fees be considered "allocated local proceeds of taxes."

   (i) For purposes of calculating the 4-percent entitlement pursuant
to subdivision (a) of Section 8.5 of Article XVI of the California
Constitution, "the total amount required pursuant to Section 8(b)"
shall mean the General Fund aid required for schools pursuant to
subdivision (b) of Section 8 of Article XVI of the California
Constitution, and shall not include allocated local proceeds of
taxes.
  SEC. 95.  Section 41300 of the Education Code is repealed.
  SEC. 96.  Section 41301 of the Education Code is repealed.
  SEC. 97.  Section 41303 of the Education Code is amended to read:
   41303.  The Superintendent shall report to the Controller, on or
before the 20th day of October of each year, the total average daily
attendance during the preceding fiscal year credited to all
kindergarten, including average daily attendance for transitional
kindergarten, elementary, and high schools in the state and to county
school tuition funds.
  SEC. 98.  Section 41320.1 of the Education Code is amended to read:

   41320.1.  Acceptance by the school district of the apportionments
made pursuant to Section 41320 constitutes the agreement by the
school district to all of the following conditions:
   (a) The Superintendent shall appoint a trustee who has recognized
expertise in management and finance and may employ, on a short-term
basis, staff necessary to assist the trustee, including, but not
limited to, certified public accountants, as follows:
   (1) The expenses incurred by the trustee and necessary staff shall
be borne by the school district.
   (2) The Superintendent shall establish the terms and conditions of
the employment, including the remuneration of the trustee. The
trustee shall serve at the pleasure of, and report directly to, the
Superintendent.
   (3) The trustee, and necessary staff, shall serve until the school
district has adequate fiscal systems and controls in place, the
Superintendent has determined that the school district's future
compliance with the fiscal plan approved for the school district
under Section 41320 is probable, and the Superintendent decides to
terminate the trustee's appointment, but in no event, for less than
three years. The Superintendent shall notify the county
superintendent of schools, the Legislature, the Department of
Finance, and the Controller no less than 60 days before the time that
the Superintendent expects these conditions to be met.
   (4) Before the school district repays the loan, including
interest, the recipient of the loan shall select an auditor from a
list established by the Superintendent and the Controller to conduct
an audit of its fiscal systems. If the fiscal systems are deemed to
be inadequate, the Superintendent may retain the trustee until the
deficiencies are corrected. The cost of this audit and any additional
cost of the trustee shall be borne by the school district.
   (5) Notwithstanding any other law, all reports submitted to the
trustee are public records.
   (6) To facilitate the appointment of the trustee and the
employment of necessary staff, for purposes of this section, the
Superintendent is exempt from the requirements of Article 6
(commencing with Section 999) of Chapter 6 of Division 4 of the
Military and Veterans Code and Part 2 (commencing with Section 10100)
of Division 2 of the Public Contract Code.
   (7) Notwithstanding any other law, the Superintendent may appoint
an employee of the department to act as trustee for up to the
duration of the trusteeship. The salary and benefits of that employee
shall be established by the Superintendent and paid by the school
district. During the time of appointment, the employee is an employee
of the school district, but shall remain in the same retirement
system under the same plan as if the employee had remained in the
department. Upon the expiration or termination of the appointment,
the employee shall have the right to return to his or her former
position, or to a position at substantially the same level as that
position, with the department. The time served in the appointment
shall be counted for all purposes as if the employee had served that
time in his or her former position with the department.
   (b) (1) The trustee appointed by the Superintendent shall monitor
and review the operation of the school district. During the period of
his or her service, the trustee may stay or rescind an action of the
governing board of the school district that, in the judgment of the
trustee, may affect the financial condition of the school district.
   (2) After the trustee's period of service, and until the loan is
repaid, the county superintendent of schools that has jurisdiction
over the school district may stay or rescind an action of the
governing board of the school district that, in his or her judgment,
may affect the financial condition of the school district. The county
superintendent of schools shall notify the Superintendent, within
five business days, if he or she stays or rescinds an action of the
governing board of the school district. The notice shall include, but
not be limited to, both of the following:
   (A) A description of the governing board of the school district's
intended action and its financial implications.
   (B) The rationale and findings that support the county
superintendent of school's decision to stay or rescind the action of
the governing board of the school district.
   (3) If the Superintendent is notified by the county superintendent
of schools pursuant to paragraph (2), the Superintendent shall
report to the Legislature, on or before December 30 of every year,
whether the school district is complying with the fiscal plan
approved for the school district.
   (4) The Superintendent may establish timelines and prescribe
formats for reports and other materials to be used by the trustee to
monitor and review the operations of the school district. The trustee
shall approve or reject all reports and other materials required
from the school district as a condition of receiving the
apportionment. The Superintendent, upon the recommendation of the
trustee, may reduce an apportionment to the school district in an
amount up to two hundred dollars ($200) per day for each late or
unacceptable report or other material required under this part, and
shall report to the Legislature a failure of the school district to
comply with the requirements of this section. If the Superintendent
determines, at any time, that the fiscal plan approved for the school
district under Section 41320 is unsatisfactory, he or she may modify
the plan as necessary, and the school district shall comply with the
plan as modified.
   (c) At the request of the Superintendent, the Controller shall
transfer to the department, from an apportionment to which the school
district would otherwise have been entitled pursuant to Section
42238.02, as implemented pursuant to Section 42238.03, the amount
necessary to pay the expenses incurred by the trustee and associated
costs incurred by the county superintendent of schools.
   (d) For the fiscal year in which the apportionments are disbursed
and every year thereafter, the Controller, or his or her designee,
shall cause an audit to be conducted of the books and accounts of the
school district, in lieu of the audit required by Section 41020. At
the Controller's discretion, the audit may be conducted by the
Controller, his or her designee, or an auditor selected by the school
district and approved by the Controller. The costs of these audits
shall be borne by the school district. These audits shall be required
until the Controller determines, in consultation with the
Superintendent, that the school district is financially solvent, but
in no event earlier than one year following the implementation of the
plan or later than the time the apportionment made is repaid,
including interest. In addition, the Controller shall conduct quality
control reviews pursuant to subdivision (c) of Section 14504.2.
   (e) For purposes of errors and omissions liability insurance
policies, the trustee appointed pursuant to this section is an
employee of the local educational agency to which he or she is
assigned. For purposes of workers' compensation benefits, the trustee
is an employee of the local educational agency to which he or she is
assigned, except that a trustee appointed pursuant to paragraph (7)
of subdivision (a) is an employee of the department for that purpose.

   (f) Except for an individual appointed by the Superintendent as
trustee pursuant to paragraph (7) of subdivision (a), the
state-appointed trustee is a member of the State Teachers' Retirement
System, if qualified, for the period of service as trustee, unless
the trustee elects in writing not to become a member. A person who is
a member or retirant of the State Teachers' Retirement System at the
time of appointment shall continue to be a member or retirant of the
system for the duration of the appointment. If the trustee chooses
to become a member or is already a member, the trustee shall be
placed on the payroll of the school district for purposes of
providing appropriate contributions to the system. The Superintendent
may also require that an individual appointed as trustee pursuant to
paragraph (7) of subdivision (a) be placed on the payroll of the
school district for purposes of remuneration, other benefits, and
payroll deductions. For purposes of workers' compensation benefits,
the state-appointed trustee is deemed an employee of the local
educational agency to which he or she is assigned, except that a
trustee who is appointed pursuant to paragraph (7) of subdivision (a)
is an employee of the department for that purpose.
  SEC. 99.  Section 41329.55 of the Education Code is amended to
read:
   41329.55.  (a) Simultaneous with the execution of the lease
financing authorized pursuant to Section 41329.52, the bank shall
provide to the Controller and the school district a notification of
its lease financing. The notice shall include a schedule of rent
payments to become due to the bank from the school district and the
bond trustee. The Controller shall make the apportionment to the bond
trustee of those amounts on the dates shown on the schedule. The
bank may further authorize the apportionments to be used to pay or
reimburse the provider of any credit enhancement of bonds and other
ongoing or periodic ancillary costs of the bond financing issued by
the bank in connection with this article. If the amount of rent
payments vary from the schedule as a result of variable interest
rates on the bonds, early redemptions, or changes in expenses, the
bank shall amend or supplement the schedule accordingly.
   (b) Except where financing is for a community college district,
the Controller shall make the apportionment only from moneys in
Section A of the State School Fund or any local control funding
formula allocations pursuant to Section 42238.02, as implemented by
Section 42238.03, designated for apportionment to the school district
and an apportionment authorized pursuant to this subdivision shall
constitute a lien senior to any other apportionment or payment of
State School Fund moneys to or for that school district not made
pursuant to this subdivision.
   (c) If financing is for the Compton Community College District,
the Controller shall make the apportionment only from moneys in
Section B of the State School Fund. An apportionment authorized
pursuant to this subdivision shall constitute a lien senior to any
other apportionment or payment of Section B State School Fund moneys.

   (d) The amount apportioned for a school district pursuant to this
section is an allocation to the school district for purposes of
subdivision (b) of Section 8 of Article XVI of the California
Constitution. For purposes of computing apportionments for local
control funding formula allocations pursuant to Section 42238.02, as
implemented pursuant to Section 42238.03, for any school district,
the local control funding formula allocations pursuant to Section
42238.02, as implemented pursuant to Section 42238.03, for any fiscal
year in which funds are apportioned for the school district pursuant
to this section shall include any amounts apportioned by the
Controller pursuant to subdivisions (a), (b), and (c), as well as
Section 41329.57.
   (e) No party, including the school district or any of its
creditors, shall have any claim to the money apportioned or to be
apportioned to the bond trustee by the Controller pursuant to this
section.
  SEC. 100.  Section 41332 of the Education Code is amended to read:
   41332.  The Superintendent shall, on or before February 20th of
each year, apportion to each elementary school district, high school
district, county school service fund, and county school tuition fund
the total amounts allowed to them under Sections 14054, 14057, 14058,
41790, 41800, 41950, 41970, and 41971, whichever are in effect. This
apportionment shall be called the first principal apportionment.
  SEC. 101.  Section 41334 of the Education Code is amended to read:
   41334.  The Superintendent shall on or before December 10th of
each year apportion:
   (a) To each elementary, high school, and county school service
fund the total of amounts allowed to them under Article 14
(commencing with Section 41930) of Chapter 5.
   (b) To each school district maintaining a high school or high
schools, each county superintendent of schools, the Division of
Juvenile Justice and the department the total of amounts allowed to
them under Sections 41900 to 41912, inclusive.
   This apportionment shall be called the special purpose
apportionment.
  SEC. 102.  Section 41335 of the Education Code is amended to read:
   41335.  (a) The Superintendent shall on or before July 2 of each
year apportion to each elementary school district, high school
district, county school service fund, and county school tuition fund
the total amounts allowed to each respective district or fund, as
would have been apportioned on June 25 of the fiscal year of the
apportionment pursuant to Section 41335 as it read on May 30, 2003,
under Sections 14054, 14057, 14058, 41790, 41800, 41950, 41970, and
41971, whichever are in effect. This apportionment shall be called
the second principal apportionment.
   (b) This section shall become operative on June 1, 2003.
  SEC. 103.  Section 41341 of the Education Code is amended to read:
   41341.  (a) (1) If, during any fiscal year, the amount apportioned
to a school district or to any fund from Section A of the State
School Fund differs either positively or negatively from the amount
to which the district or fund was entitled by an amount equal to
revenue limit funding through the 2012-13 fiscal year, and,
commencing with the 2013-14 fiscal year, local control funding
formula entitlements pursuant to Section 42238.02, as implemented
pursuant to Section 42238.03, for one unit of average daily
attendance, the Superintendent, in accordance with regulations that
he or she is hereby authorized to adopt, not later than the first
succeeding fiscal year from the fiscal year in which the
computational error was made, shall withhold from, or add to, the
apportionment made during that fiscal year, the amount of the excess
or deficiency, as the case may be. Notwithstanding any other
provision of this code to the contrary, excesses withheld or
deficiencies added by the Superintendent under this subdivision shall
be added to or allowed from any portion of the State School Fund.
   (2) Notwithstanding paragraph (1), excesses may be withheld or
deficiencies added to apportionments on account of audit exceptions
in any fiscal year in which they are certified by the Superintendent.

   (b) If, during any fiscal year, the amount apportioned to a
community college district or to any fund from Section B of the State
School Fund differs either positively or negatively from the amount
to which the community college district or fund was entitled, by an
amount equal to the funding of one full-time equivalent student, the
Chancellor of the California Community Colleges, in accordance with
regulations that he or she is hereby authorized to adopt, not later
than the first succeeding fiscal year from the fiscal year in which
the computational error was made, shall withhold from, or add to, the
apportionment made during that fiscal year, the amount of the excess
or deficiency, as the case may be. Notwithstanding any other
provision of this code to the contrary, excesses withheld or
deficiencies added by the Chancellor of the California Community
Colleges under this subdivision shall be added to or allowed from any
portion of the State School Fund.
  SEC. 104.  Section 41344 of the Education Code is amended to read:
   41344.  (a) If, as the result of an audit or review, a local
educational agency is required to repay an apportionment significant
audit exception or to pay a penalty arising from an audit exception,
the Superintendent and the Director of Finance, or their designees,
jointly shall establish a plan for repayment of state school funds
that the local educational agency received on the basis of average
daily attendance, or other data, that did not comply with statutory
or regulatory requirements that were conditions of the
apportionments, or for payment of a penalty arising from an audit
exception. A local educational agency shall request a plan within 90
days of receiving the final audit report or review, within 30 days of
withdrawing or receiving a final determination regarding an appeal
pursuant to subdivision (d), or, in the absence of an appeal pursuant
to subdivision (d), within 30 days of withdrawing or receiving a
determination of a summary review pursuant to subdivision (d) of
Section 41344.1. At the time the local educational agency is
notified, the Controller also shall be notified of the plan. The plan
shall be established in accordance with the following:
   (1) The Controller shall withhold the disallowed or penalty amount
at the next principal apportionment or pursuant to paragraph (2),
unless subdivision (d) of this section or subdivision (d) of Section
41344.1 applies, in which case the disallowed or penalty amount shall
be withheld, at the next principal apportionment or pursuant to
paragraph (2) following the determination regarding the appeal or
summary appeal. In calculating a disallowed amount, the Controller
shall determine                                            the total
amount of overpayment received by the local educational agency on the
basis of average daily attendance, or other data, reported by the
local educational agency that did not comply with one or more
statutory or regulatory requirements that are conditions of
apportionment.
   (2) If the Superintendent and the Director of Finance concur that
repayment of the full liability or payment of the penalty in the
current fiscal year would constitute a severe financial hardship for
the local educational agency, they may approve a plan of equal annual
payments over a period of up to eight years. The plan shall include
interest on each year's outstanding balance at the rate earned on the
state's Pooled Money Investment Account during that year. The
Superintendent and the Director of Finance jointly shall establish
this plan. The Controller shall withhold amounts pursuant to the
plan.
   (3) If the Superintendent and the Director of Finance do not
jointly establish a plan, the Controller shall withhold the entire
disallowed amount determined pursuant to paragraph (1), or the
penalty amount, at the next principal apportionment.
   (b) (1) For purposes of computing average daily attendance
pursuant to Section 42238.5, as it read on January 1, 2013, and
Section 42238.05, a local educational agency's prior fiscal year
average daily attendance shall be reduced by an amount equal to any
average daily attendance disallowed in the current year, by an audit
or review, as defined in subdivision (e).
   (2) Commencing with the 1999-2000 fiscal year, this subdivision
may not result in a local educational agency repaying more than the
value of the average daily attendance disallowed in the audit
exception plus interest and other penalties or reductions in
apportionments as provided by existing law.
   (c) Notwithstanding any other law, this section may not be waived
under any authority set forth in this code except as provided in this
section or Section 41344.1.
   (d) Within 60 days of the date on which a local educational agency
receives a final audit report resulting from an audit or review of
all or any part of the operations of the local educational agency, or
within 30 days of receiving a determination of a summary review
pursuant to subdivision (d) of Section 41344.1, a local educational
agency may appeal a finding contained in the final report, pursuant
to Section 41344.1. Within 90 days of the date on which the appeal is
received by the panel, a hearing shall be held at which the local
educational agency may present evidence or arguments if the local
educational agency believes that the final report contains any
finding that was based on errors of fact or interpretation of law, or
if the local educational agency believes in good faith that it was
in substantial compliance with all legal requirements. A repayment
schedule may not commence until the panel reaches a determination
regarding the appeal. If the panel determines that the local
educational agency is correct in its assertion, in whole or in part,
the allowable portion of any apportionment payment that was withheld
shall be paid at the next principal apportionment.
   (e) (1) As used in this section, "audit or review" means an audit
conducted by the Controller's office, an annual audit conducted by a
certified public accountant or a public accounting firm pursuant to
Section 41020, and an audit or review conducted by a governmental
agency that provided the local educational agency with an opportunity
to provide a written response.
   (2) As used in this section, "local educational agency" includes a
charter school.
  SEC. 105.  Section 41376 of the Education Code is repealed.
  SEC. 106.  Section 41378 of the Education Code is repealed.
  SEC. 107.  Section 41400 of the Education Code is repealed.
  SEC. 108.  Section 41401 of the Education Code is repealed.
  SEC. 109.  Section 41402 of the Education Code is repealed.
  SEC. 110.  Section 41403 of the Education Code is repealed.
  SEC. 111.  Section 41404 of the Education Code is repealed.
  SEC. 112.  Section 41406 of the Education Code is repealed.
  SEC. 113.  Section 41407 of the Education Code is repealed.
  SEC. 114.  Chapter 3.2 (commencing with Section 41500) of Part 24
of Division 3 of Title 2 of the Education Code is repealed.
  SEC. 115.  Section 41601 of the Education Code is amended to read:
   41601.  For purposes of this chapter, the governing board of each
school district shall report to the Superintendent during each fiscal
year the average daily attendance of the school district for all
full school months during (1) the period between July 1 and December
31, inclusive, to be known as the "first period" report for the first
principal apportionment, and (2) the period between July 1 and April
15, inclusive, to be known as the "second period" report for the
second principal apportionment. Each county superintendent of schools
shall report the average daily attendance for the schools and
classes maintained by him or her and the average daily attendance for
the county school tuition fund.
   Each report shall be prepared in accordance with instructions on
forms prescribed and furnished by the Superintendent. Average daily
attendance shall be computed in the following manner:
   (a) The average daily attendance in the regular elementary,
middle, and high schools, including continuation schools and classes,
opportunity schools and classes, and special day classes, maintained
by the school districts shall be determined by dividing the total
number of days of attendance allowed in all full school months in
each period by the number of days the schools are actually taught in
all full school months in each period, exclusive of Saturdays or
Sundays and exclusive of weekend makeup classes pursuant to Section
37223.
   (b) The attendance for schools and classes maintained by a county
superintendent of schools and the county school tuition fund shall be
reported in the same manner as reported by school districts. The
average daily attendance in special education classes operated by
county superintendents of schools shall be determined in the same
manner as all other attendance under subdivision (a). For attendance
in special classes pursuant to Section 56364.2, the average daily
attendance shall be reported by the county superintendents of
schools, but credited for revenue limit purposes to the district in
which the pupil resides.
  SEC. 116.  Section 41601.5 of the Education Code is amended to
read:
   41601.5.  For any fiscal year, a school district with an increase
in the number of units of average daily attendance from the second
principal apportionment to the annual apportionment may request the
county superintendent of schools to adjust the school district's
local control funding formula allocations pursuant to Section
42238.02, as implemented by Section 42238.03, by using the units of
average daily attendance for the annual apportionment in lieu of the
units of average daily attendance for the second principal
apportionment. To qualify for this adjustment, the increase in the
units of average daily attendance between the two periods shall meet
the following requirements:
   (a) The increase shall be equal to either paragraph (1) or (2):
   (1) Equal to or greater than 2 percent.
   (2) For the 1984-85 fiscal year and each fiscal year thereafter,
for school districts with less than 2,501 units of average daily
attendance, equal to or greater than 10 units of average daily
attendance.
   (b) The increase shall be attributable to pupils of migrant
agricultural workers.
  SEC. 117.  Section 41601.7 of the Education Code is amended to
read:
   41601.7.  A school district with an increase or decrease in the
number of units of average daily attendance at a necessary small high
school from the second principal apportionment to the annual
apportionment may request the county superintendent of schools to
adjust the district's local control funding formula allocations
pursuant to Section 42238.02, as implemented by Section 42238.03, by
using the units of average daily attendance for the annual
apportionment for the necessary small high school in lieu of the
units of average daily attendance for the second principal
apportionment. To qualify for this adjustment, the following
conditions shall be met:
   (1) The increase or decrease in the units of average daily
attendance between the two periods at the necessary small high school
shall be equal to or greater than 15 percent and such increase or
decrease shall be attributable to pupils attending a necessary small
high school which provides a program of education with individualized
instruction in a residential setting at an institution for pupils
who have been placed in foster care for rehabilitation purposes
pursuant to Chapter 2 (commencing with Section 200) of Part 1 of
Division 2 of the Welfare and Institutions Code.
   (2) The school district reimburses the county superintendent of
schools for the administrative costs of making the adjustment
prescribed by this section.
  SEC. 118.  Section 41800 of the Education Code is amended to read:
   41800.  (a) The Superintendent shall allow to each high school
district one hundred twenty dollars ($120) for each unit of average
daily attendance in the school district during the fiscal year as
computed under subdivision (a) of Section 41601, subject to the
provisions of Section 41608, but not less than two thousand four
hundred dollars ($2,400) shall be allowed to any high school
district, to be known as basic state aid.
    (b) The Superintendent shall exclude from the computation of
allowances provided by this section the average daily attendance
during the fiscal year of adults.
   (c) As used in this section, "adult" means a person 18 years of
age or older or a person who is not concurrently enrolled in a
regular high school program. However, a person 18 years of age or
older who is concurrently enrolled in a regular high school program
is not an adult for purposes of this section.
  SEC. 119.  Article 9 (commencing with Section 41840) of Chapter 5
of Part 24 of Division 3 of Title 2 of the Education Code is
repealed.
  SEC. 120.  Article 10 (commencing with Section 41850) of Chapter 5
of Part 24 of Division 3 of Title 2 of the Education Code is
repealed.
  SEC. 121.  Article 10.5 (commencing with Section 41860) of Chapter
5 of Part 24 of Division 3 of Title 2 of the Education Code is
repealed.
  SEC. 122.  Article 11 (commencing with Section 41880) of Chapter 5
of Part 24 of Division 3 of Title 2 of the Education Code is
repealed.
  SEC. 123.  Article 13 (commencing with Section 41920) of Chapter 5
of Part 24 of Division 3 of Title 2 of the Education Code is
repealed.
  SEC. 124.  Section 41972 of the Education Code is amended to read:
   41972.  (a) Balances available from any appropriation for
apportionments from Section A of the State School Fund and funds
provided by subdivision (b) of Section 14002, or provided by any
other law in lieu of those sections, shall be used to restore any
reductions in apportionments to elementary, high, and unified school
districts and county superintendents of schools as follows:
   (1) First, for revenue limits computed pursuant to Sections 2575
and 42238.02, as implemented by Section 42238.03.
   (2) Second, for special education computed pursuant to Chapter 7.2
(commencing with Section 56836) of Part 30 of Division 4.
   (b) Any remaining balances otherwise transferable under
subdivision (b) of Section 14002 shall revert to the General Fund.
  SEC. 125.  Section 41975 of the Education Code is amended to read:
   41975.  (a) Apportionments and allowances to a school district
from Section A of the State School Fund in a fiscal year may not be
less than the product of one hundred twenty dollars ($120) multiplied
by the average daily attendance of the district in the preceding
fiscal year, or two thousand four hundred dollars ($2,400), whichever
amount is the greater.
   (b) State funds apportioned to each school district for
categorical education programs, or other state funds apportioned to
each school district from the State School Fund, shall be applied to
meet the requirement of Section 6 of Article IX of the California
Constitution to provide a minimum of one hundred twenty dollars
($120) of state aid per pupil or two thousand four hundred dollars
($2,400) per school district.
   (c) Notwithstanding any other law, the Superintendent shall not
increase the local control funding formula pursuant to Section
42238.02, as implemented by Section 42238.03, apportionment of a
school district to provide basic state aid pursuant to Section 6 of
Article IX of the California Constitution or any other law, unless
that school district has not received the greater amount of one
hundred twenty dollars ($120) per pupil or two thousand four hundred
dollars ($2,400) from all state funds, including funds for
categorical education programs. If a school district receives less
than the amount specified in this subdivision, the Superintendent
shall allocate the difference between the amount of state funds
received and the constitutional minimum of the greater amount of one
hundred twenty dollars ($120) per pupil or two thousand four hundred
dollars ($2,400) per school district.
  SEC. 126.  Section 41976 of the Education Code is repealed.
  SEC. 127.  Section 41976.1 of the Education Code is repealed.
  SEC. 128.  Section 41976.2 of the Education Code is repealed.
  SEC. 129.  Section 41976.5 of the Education Code is repealed.
  SEC. 130.  Section 42127 of the Education Code is amended to read:
   42127.  (a) On or before July 1 of each year, the governing board
of each school district shall accomplish the following:
   (1) Hold a public hearing on the budget to be adopted for the
subsequent fiscal year. The budget to be adopted shall be prepared in
accordance with Section 42126. The agenda for that hearing shall be
posted at least 72 hours before the public hearing and shall include
the location where the budget will be available for public
inspection.
   (A) For the 2011-12 fiscal year, notwithstanding any of the
standards and criteria adopted by the state board pursuant to Section
33127, each school district budget shall project the same level of
revenue per unit of average daily attendance as it received in the
2010-11 fiscal year and shall maintain staffing and program levels
commensurate with that level.
   (B) For the 2011-12 fiscal year, the school district shall not be
required to demonstrate that it is able to meet its financial
obligations for the two subsequent fiscal years.
   (2) Adopt a budget and take action on a local control and
accountability plan pursuant to Sections 52060 and 52064. Not later
than five days after that adoption or by July 1, whichever occurs
first, the governing board of the school district shall file that
budget with the county superintendent of schools. The budget, the
local control and accountability plan, and supporting data shall be
maintained and made available for public review. If the governing
board of the school district does not want all or a portion of the
property tax requirement levied for the purpose of making payments
for the interest and redemption charges on indebtedness as described
in paragraph (1) or (2) of subdivision (b) of Section 1 of Article
XIII A of the California Constitution, the budget shall include a
statement of the amount or portion for which a levy shall not be
made. For the 2014-15 fiscal year and each fiscal year thereafter,
the governing board of the school district shall not adopt a budget
before the governing board of the school district adopts a local
control and accountability plan or approves an update to an existing
local control and accountability plan pursuant to Sections 52060 and
52064. The governing board of a school district shall not adopt a
budget that does not align with the local control and accountability
plan that applies to the subsequent fiscal year.
   (b) The county superintendent of schools may accept changes in any
statement included in the budget, pursuant to subdivision (a), of
the amount or portion for which a property tax levy shall not be
made. The county superintendent of schools or the county auditor
shall compute the actual amounts to be levied on the property tax
rolls of the school district for purposes that exceed apportionments
to the school district pursuant to Chapter 6 (commencing with Section
95) of Part 0.5 of Division 1 of the Revenue and Taxation Code. Each
school district shall provide all data needed by the county
superintendent of schools or the county auditor to compute the
amounts. On or before August 15, the county superintendent of schools
shall transmit the amounts computed to the county auditor who shall
compute the tax rates necessary to produce the amounts. On or before
September 1, the county auditor shall submit the rate computed to the
board of supervisors for adoption.
   (c) The county superintendent of schools shall do all of the
following:
   (1) Examine the adopted budget to determine whether it complies
with the standards and criteria adopted by the state board pursuant
to Section 33127 for application to final local educational agency
budgets. The county superintendent of schools shall identify, if
necessary, technical corrections that are required to be made to
bring the budget into compliance with those standards and criteria.
   (2) Determine whether the adopted budget will allow the school
district to meet its financial obligations during the fiscal year and
is consistent with a financial plan that will enable the school
district to satisfy its multiyear financial commitments. In addition
to his or her own analysis of the budget of each school district, the
county superintendent of schools shall review and consider studies,
reports, evaluations, or audits of the school district that were
commissioned by the school district, the county superintendent of
schools, the Superintendent, and state control agencies and that
contain evidence that the school district is showing fiscal distress
under the standards and criteria adopted in Section 33127 or that
contain a finding by an external reviewer that more than three of the
15 most common predictors of a school district needing intervention,
as determined by the County Office Fiscal Crisis and Management
Assistance Team, are present. The county superintendent of schools
shall either conditionally approve or disapprove a budget that does
not provide adequate assurance that the school district will meet its
current and future obligations and resolve any problems identified
in studies, reports, evaluations, or audits described in this
paragraph.
   (3) Determine whether the adopted budget will allow the school
district to implement the specific actions and strategies included in
the local control and accountability plan adopted by the governing
board of the school district pursuant to Section 52060 and 52064.
   (d) On or before August 15, the county superintendent of schools
shall approve, conditionally approve, or disapprove the adopted
budget for each school district. For the 2014-15 fiscal year and each
fiscal year thereafter, the county superintendent of schools shall
disapprove a budget if a school district does not file a local
control and accountability plan with the county superintendent of
schools, if the Superintendent determines that a local control and
accountability plan filed does not adhere to the template adopted by
the state board pursuant to Section 52066 or does not include all of
the components identified in subdivision (a) of Section 52064, or if
the county superintendent of schools determines that the expenditures
included in the budget do not reflect the costs necessary to
implement the plan. If a school district does not submit a budget to
the county superintendent of schools, the county superintendent of
schools shall develop, at school district expense, a budget for that
school district by September 15 and transmit that budget to the
governing board of the school district. The budget prepared by the
county superintendent of schools shall be deemed adopted, unless the
county superintendent of schools approves any modifications made by
the governing board of the school district. The approved budget shall
be used as a guide for the school district's priorities. The
Superintendent shall review and certify the budget approved by the
county. If, pursuant to the review conducted pursuant to subdivision
(c), the county superintendent of schools determines that the adopted
budget for a school district does not satisfy paragraph (1) or (2)
of that subdivision, he or she shall conditionally approve or
disapprove the budget and, not later than August 15, transmit to the
governing board of the school district, in writing, his or her
recommendations regarding revision of the budget and the reasons for
those recommendations, including, but not limited to, the amounts of
any budget adjustments needed before he or she can approve that
budget. The county superintendent of schools may assign a fiscal
adviser to assist the school district to develop a budget in
compliance with those revisions. In addition, the county
superintendent of schools may appoint a committee to examine and
comment on the superintendent's review and recommendations, subject
to the requirement that the committee report its findings to the
county superintendent of schools no later than August 20. For the
2011-12 fiscal year, notwithstanding any of the standards and
criteria adopted by the state board pursuant to Section 33127, the
county superintendent of schools, as a condition on approval of a
school district budget, shall not require a school district to
project a lower level of revenue per unit of average daily attendance
than it received in the 2010-11 fiscal year nor require the school
district to demonstrate that it is able to meet its financial
obligations for the two subsequent fiscal years.
   (e) On or before September 8, the governing board of the school
district shall revise the adopted budget to reflect changes in
projected income or expenditures subsequent to July 1, and to include
any response to the recommendations of the county superintendent of
schools, shall adopt the revised budget, and shall file the revised
budget with the county superintendent of schools. Before revising the
budget, the governing board of the school district shall hold a
public hearing regarding the proposed revisions, to be conducted in
accordance with Section 42103. In addition, if the adopted budget is
disapproved pursuant to subdivision (d), the governing board of the
school district and the county superintendent of schools shall review
the disapproval and the recommendations of the county superintendent
of schools regarding revision of the budget at the public hearing.
The revised budget and supporting data shall be maintained and made
available for public review.
   (1) For the 2011-12 fiscal year, notwithstanding any of the
standards and criteria adopted by the state board pursuant to Section
33127, each school district budget shall project the same level of
revenue per unit of average daily attendance as it received in the
2010-11 fiscal year and shall maintain staffing and program levels
commensurate with that level.
   (2) For the 2011-12 fiscal year, the school district shall not be
required to demonstrate that it is able to meet its financial
obligations for the two subsequent fiscal years.
   (f) On or before September 22, the county superintendent of
schools shall provide a list to the Superintendent identifying all
school districts for which budgets may be disapproved.
   (g) The county superintendent of schools shall examine the revised
budget to determine whether it (1) complies with the standards and
criteria adopted by the state board pursuant to Section 33127 for
application to final local educational agency budgets, (2) allows the
school district to meet its financial obligations during the fiscal
year, (3) satisfies all conditions established by the county
superintendent of schools in the case of a conditionally approved
budget, and (4) is consistent with a financial plan that will enable
the school district to satisfy its multiyear financial commitments,
and, not later than October 8, shall approve or disapprove the
revised budget. If the county superintendent of schools disapproves
the budget, he or she shall call for the formation of a budget review
committee pursuant to Section 42127.1, unless the governing board of
the school district and the county superintendent of schools agree
to waive the requirement that a budget review committee be formed and
the department approves the waiver after determining that a budget
review committee is not necessary. Upon the grant of a waiver, the
county superintendent of schools immediately has the authority and
responsibility provided in Section 42127.3. Upon approving a waiver
of the budget review committee, the department shall ensure that a
balanced budget is adopted for the school district by November 30. If
no budget is adopted by November 30, the Superintendent may adopt a
budget for the school district. The Superintendent shall report to
the Legislature and the Director of Finance by December 10 if any
school district, including a school district that has received a
waiver of the budget review committee process, does not have an
adopted budget by November 30. This report shall include the reasons
why a budget has not been adopted by the deadline, the steps being
taken to finalize budget adoption, the date the adopted budget is
anticipated, and whether the Superintendent has or will exercise his
or her authority to adopt a budget for the school district. For the
2011-12 fiscal year, notwithstanding any of the standards and
criteria adopted by the state board pursuant to Section 33127, the
county superintendent of schools, as a condition on approval of a
school district budget, shall not require a school district to
project a lower level of revenue per unit of average daily attendance
than it received in the 2010-11 fiscal year nor require the school
district to demonstrate that it is able to meet its financial
obligations for the two subsequent fiscal years.
   (h) Not later than October 8, the county superintendent of schools
shall submit a report to the Superintendent identifying all school
districts for which budgets have been disapproved or budget review
committees waived. The report shall include a copy of the written
response transmitted to each of those school districts pursuant to
subdivision (d).
   (i) Notwithstanding any other provision of this section, the
budget review for a school district shall be governed by paragraphs
(1), (2), and (3), rather than
          by subdivisions (e) and (g), if the governing board of the
school district so elects and notifies the county superintendent of
schools in writing of that decision, not later than October 31 of the
immediately preceding calendar year. On or before July 1, the
governing board of a school district for which the budget review is
governed by this subdivision, rather than by subdivisions (e) and
(g), shall conduct a public hearing regarding its proposed budget in
accordance with Section 42103.
   (1) If the adopted budget of a school district is disapproved
pursuant to subdivision (d), on or before September 8, the governing
board of the school district, in conjunction with the county
superintendent of schools, shall review the superintendent's
recommendations at a regular meeting of the governing board of the
school district and respond to those recommendations. The response
shall include any revisions to the adopted budget and other proposed
actions to be taken, if any, as a result of those recommendations.
   (2) On or before September 22, the county superintendent of
schools shall provide a list to the Superintendent identifying all
school districts for which a budget may be tentatively disapproved.
   (3) Not later than October 8, after receiving the response
required under paragraph (1), the county superintendent of schools
shall review that response and either approve or disapprove the
budget. If the county superintendent of schools disapproves the
budget, he or she shall call for the formation of a budget review
committee pursuant to Section 42127.1, unless the governing board of
the school district and the county superintendent of schools agree to
waive the requirement that a budget review committee be formed and
the department approves the waiver after determining that a budget
review committee is not necessary. Upon the grant of a waiver, the
county superintendent has the authority and responsibility provided
to a budget review committee in Section 42127.3. Upon approving a
waiver of the budget review committee, the department shall ensure
that a balanced budget is adopted for the school district by November
30. The Superintendent shall report to the Legislature and the
Director of Finance by December 10 if any school district, including
a school district that has received a waiver of the budget review
committee process, does not have an adopted budget by November 30.
This report shall include the reasons why a budget has not been
adopted by the deadline, the steps being taken to finalize budget
adoption, and the date the adopted budget is anticipated. For the
2011-12 fiscal year, notwithstanding any of the standards and
criteria adopted by the state board pursuant to Section 33127, the
county superintendent of schools, as a condition on approval of a
school district budget, shall not require a school district to
project a lower level of revenue per unit of average daily attendance
than it received in the 2010-11 fiscal year nor require the school
district to demonstrate that it is able to meet its financial
obligations for the two subsequent fiscal years.
   (4) Not later than 45 days after the Governor signs the annual
Budget Act, the school district shall make available for public
review any revisions in revenues and expenditures that it has made to
its budget to reflect the funding made available by that Budget Act.

   (j) Any school district for which the county board of education
serves as the governing board of the school district is not subject
to subdivisions (c) to (h), inclusive, but is governed instead by the
budget procedures set forth in Section 1622.
  SEC. 131.  Section 42127.8 of the Education Code is amended to
read:
   42127.8.  (a) The governing board provided for in subdivision (b)
shall establish a unit to be known as the County Office Fiscal Crisis
and Management Assistance Team. The team shall consist of persons
having extensive experience in school district budgeting, accounting,
data processing, telecommunications, risk management, food services,
pupil transportation, purchasing and warehousing, facilities
maintenance and operation, and personnel administration,
organization, and staffing. The Superintendent may appoint one
employee of the department to serve on the unit. The unit shall be
operated under the immediate direction of an appropriate county
office of education selected jointly, in response to an application
process, by the Superintendent and the president of the state board
or his or her designee.
   (b) The unit established under subdivision (a) shall be selected
and governed by a 25-member governing board consisting of one
representative chosen by the California County Superintendents
Educational Services Association from each of the 11 county service
regions designated by the association, 11 superintendents of school
districts chosen by the Association of California School
Administrators from each of the 11 county service regions, one
representative from the department chosen by the Superintendent, the
Chancellor of the California Community Colleges or his or her
designee, and one member of a community college district governing
board chosen by the chancellor. The governing board of the County
Office Fiscal Crisis and Management Assistance Team shall select a
county superintendent of schools to chair the unit.
   (c) (1) The Superintendent may request the unit to provide the
assistance described in subdivision (b) of Section 1624, Section
1630, subdivision (b) of Section 42127.3, subdivision (c) of Section
42127.6, Section 42127.9, and subdivision (a) of Section 42238.051,
and to review the fiscal and administrative condition of any county
office of education, school district, or charter school.
   (2) A county superintendent of schools may request the unit to
review the fiscal or administrative condition of a school district or
charter school under his or her jurisdiction.
   (3) The Board of Governors of the California Community Colleges
may request the unit to provide the assistance described in Section
84041.
   (d) In addition to the functions described in subdivision (c), the
unit shall do all of the following:
   (1) Provide fiscal management assistance, at the request of any
school district, charter school, or county office of education, or,
pursuant to subdivision (g) of Section 84041, at the request of any
community college district. Each school district, charter school, or
county office of education receiving that assistance shall be
required to pay the onsite personnel costs and travel costs incurred
by the unit for that purpose, pursuant to rates determined by the
governing board established under subdivision (b). The governing
board annually shall distribute rate information to each school
district, charter school, and county office of education.
   (2) Facilitate training for members of the governing board of the
school district, district and county superintendents, chief financial
officers within the district, and schoolsite personnel whose primary
responsibility is to address fiscal issues. Training services shall
emphasize efforts to improve fiscal accountability and expand the
fiscal competency of local agencies. The unit shall use state
professional associations, private organizations, and public agencies
to provide guidance, support, and the delivery of any training
services.
   (3) Facilitate fiscal management training through the 11 county
service regions to county office of education staff to ensure that
they develop the technical skills necessary to perform their
fiduciary duties. The governing board established pursuant to
subdivision (b) shall determine the extent of the training that is
necessary to comply with this paragraph.
   (4) Produce a training calendar, to be disseminated semiannually
to each county service region, that publicizes all of the fiscal
training services that are being offered at the local, regional, and
state levels.
   (e) The governing board shall reserve not less than 25 percent,
nor more than 50 percent, of its revenues each year for expenditure
for the costs of contracts and professional services as management
assistance to school districts or county superintendents of schools
in which the board determines that a fiscal emergency exists.
   (f) The governing board established under subdivision (b) may levy
an annual assessment against each county office of education that
elects to participate under this section in an amount not to exceed
twenty cents ($0.20) per unit of total average daily attendance for
all school districts within the county. The revenues collected
pursuant to that assessment shall be applied to the expenses of the
unit.
   (g) The governing board established under subdivision (b) may pay
to the department, from any available funds, a reasonable amount to
reimburse the department for actual administrative expenses incurred
in the review of the budgets and fiscal conditions of school
districts, charter schools, and county superintendents of schools.
   (h) When employed as a fiscal adviser by the department pursuant
to Section 1630, employees of the unit established pursuant to
subdivision (a) shall be considered employees of the department for
purposes of errors and omissions liability insurance.
   (i) (1) The unit shall request and review applications to
establish regional teams of education finance experts throughout the
state.
   (2) To the extent that funding is provided for purposes of this
subdivision in the annual Budget Act or through another
appropriation, regional teams selected by the Superintendent, in
consultation with the unit, shall provide training and technical
expertise to school districts, charter schools, and county offices of
education facing fiscal difficulties.
   (3) The regional teams shall follow the standards and guidelines
of and remain under the general supervision of the governing board
established under subdivision (b).
   (4) It is the intent of the Legislature that, to the extent
possible, the regional teams be distributed geographically throughout
the various regions of the state in order to provide timely,
cost-effective expertise to school districts, charter schools, county
offices of education, and community college districts throughout the
state.
  SEC. 132.  Section 42238 of the Education Code is repealed.
  SEC. 133.  Section 42238.02 is added to the Education Code, to
read:
   42238.02.  (a) The amount computed pursuant to this section shall
be known as the school district and charter school local control
funding formula.
   (b) (1) For purposes of this section "unduplicated pupil" means a
pupil enrolled in a school district or a charter school who is either
classified as an English learner pursuant to Section 52164, as that
section read on January 1, 2013, eligible to receive a free or
reduced-price meal pursuant to Section 49552, as that section read on
January 1, 2013, or is a foster youth pursuant to Sections 300 and
601 of the Welfare and Institutions Code. A pupil shall be counted
only once for purposes of this section if any of the following apply:

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

   (e) (1) For purposes of this section, commencing with the 2013-14
fiscal year and until all school districts and charter schools equal
or exceed their local control funding formula target computed
pursuant to Section 42238.02 as determined by the calculation of a
zero difference pursuant to paragraph (1) of subdivision (b), a newly
operational charter school shall be determined to have a prior year
per average daily attendance funding amount equal to the lesser of:
   (A) The prior year funding amount per average daily attendance for
the school district in which the charter school is physically
located. The Superintendent shall calculate the per average daily
attendance amount for this purpose by dividing the total local
control funding formula entitlement received by that school district
in the prior year by prior year average daily attendance of that
school district. For purposes of this paragraph, a charter school
that is physically located in more than one school district, shall
use the calculated per average daily attendance local control funding
entitlement of the school district with the highest prior year per
average daily attendance funding amount.
   (B) The charter school's local control funding formula rate
computed pursuant to subdivisions (c) to (i), inclusive, of Section
42238.02.
   (2) For charter schools funded pursuant to paragraph (1), the
charter school shall be eligible to receive growth funding pursuant
to subdivision (b) toward meeting the newly operational charter
school's local control funding formula target.
   (3) Upon a determination that all school districts or charter
schools equal or exceed the local control funding formula target
computed pursuant to Section 42238.02 as determined by the
calculation of a zero difference pursuant to paragraph (1) of
subdivision (b) for all school districts and charter schools, this
subdivision shall not apply and the charter school shall receive an
allocation equal to the amount calculated under Section 42238.02 in
that fiscal year and future fiscal years.
  SEC. 135.  Section 42238.04 is added to the Education Code, to
read:
   42238.04.  Notwithstanding any other law, revenue limit funding
for school districts and charter school block grant funding for
charter schools for the 2012-13 fiscal year and prior fiscal years
shall continue to be adjusted pursuant to Article 2 (commencing with
Section 42238), and Article 2 (commencing with Section 47633) of
Chapter 6 of Part 26.8 of Division 4, as those articles read on June
30, 2013.
  SEC. 136.  Section 42238.05 is added to the Education Code, to
read:
   42238.05.  (a) For purposes of Sections 42238.02 and 42238.03, the
fiscal year average daily attendance shall be computed pursuant to
paragraphs (1) or (2).
   (1) The second principal apportionment regular average daily
attendance for either the current or prior fiscal year, whichever is
greater. However, prior fiscal year average daily attendance shall be
adjusted for any loss or gain of average daily attendance due to a
reorganization or transfer of territory.
   (2) A school district that elects to receive funding pursuant to
Article 4 (commencing with Section 42280) shall compute its units of
average daily attendance for purposes of Section 42238.02 by
subtracting the amount determined in subparagraph (B) from the amount
determined in subparagraph (A).
   (A) The units of average daily attendance computed pursuant to
paragraph (1).
   (B) The units of average daily attendance resulting from pupils
attending schools funded pursuant to Article 4 (commencing with
Section 42280).
   (b) For purposes of this article, regular average daily attendance
shall be the base grant average daily attendance.
   (c) For purposes of this section, the Superintendent shall
distribute total ungraded enrollment and average daily attendance
among kindergarten and each of grades 1 to 12, inclusive, in
proportion to the amounts of graded enrollment and average daily
attendance, respectively, in each of these grades.
   (d) For purposes of this section, the Superintendent shall
distribute average daily attendance generated by the difference
between prior year average daily attendance and current year average
daily attendance, if positive, among kindergarten and each of grades
1 to 12, inclusive, in proportion to the amounts of graded average
daily attendance, respectively, in each of these grades.
   (e) This section shall only apply to average daily attendance
generated by school districts and shall not apply average daily
attendance generated by charter schools.
   (f) A pupil shall not be counted more than once for purposes of
calculating average daily attendance pursuant to this section.
  SEC. 137.  Section 42238.051 is added to the Education Code, to
read:
   42238.051.  (a) For purposes of paragraph (1) of subdivision (a)
of Section 42238.05, a sponsoring school district's average daily
attendance shall be computed as follows:
   (1) Compute the sponsoring school district's regular average daily
attendance in the current year, excluding the attendance of pupils
in charter schools.
   (2) (A) Compute the regular average daily attendance used to
calculate the second principal apportionment of the school district
for the prior year, excluding the attendance of pupils in charter
schools.
   (B) Compute the attendance of pupils who attended one or more
noncharter schools of the school district between July 1, and the
last day of the second period, inclusive, in the prior year, and who
attended a charter school sponsored by the school district between
July 1, and the last day of the second period, inclusive, in the
current year. For purposes of this subparagraph, a pupil enrolled in
a grade at a charter school sponsored by the school district shall
not be counted if the school district does not offer classes for
pupils enrolled in that grade. The amount of the attendance counted
for any pupil for the purpose of this subparagraph may not be greater
than the attendance claimed for that pupil by the charter school in
the current year.
   (C) Compute the attendance of pupils who attended a charter school
sponsored by the school district in the prior year and who attended
one or more noncharter schools of the school district in the current
year. The amount of the attendance counted for any pupil for the
purpose of this subparagraph may not be greater than the attendance
claimed for that pupil by the school district in the current year.
   (D) From the amount determined pursuant to subparagraph (B),
subtract the amount determined pursuant to subparagraph (C). If the
result is less than zero, the amount shall be deemed to be zero.
   (E) The prior year average daily attendance determined pursuant to
subparagraph (A) shall be reduced by the amount determined pursuant
to subparagraph (D).
   (3) To the greater of the amounts computed pursuant to paragraphs
(1) and (2), add the regular average daily attendance in the current
year of all pupils attending charter schools sponsored by the school
district that are not funded through the charter schools local
control funding formula allocation pursuant to Section 42238.02, as
implemented by Section 42238.03.
   (b) For purposes of this section, a "sponsoring school district"
shall mean a "sponsoring local educational agency," as defined in
Section 47632, as that section read on January 1, 2013.
  SEC. 138.  Section 42238.052 is added to the Education Code, to
read:
   42238.052.  (a) Notwithstanding any other law, the prior year
average daily attendance for a school district determined pursuant to
subdivision (a) of Section 42238.051 shall be increased by the prior
year second principal apportionment average daily attendance of a
school district only for a school that meets the following
description:
   (1) The school was a district noncharter school in any year before
the prior year.
   (2) The school was operated as a district-approved charter school
in the prior year.
   (3) The school is again operated as a district noncharter school
in the current year.
   (b) An adjustment to prior year average daily attendance pursuant
to this section may not be made for the attendance of pupils who were
not residents of the school district in the prior year.
  SEC. 139.  Section 42238.053 is added to the Education Code, to
read:
   42238.053.  (a) The fiscal year average daily attendance computed
under Section 42238.05 shall be increased, for each school district
that operates a school that meets the eligibility requirements set
forth in subdivision (b), by the number of days of attendance of
pupils enrolled in eligible schools in the school district who are
currently migratory children, as defined by Section 54441, and who
are residing in state-operated migrant housing projects between the
second principal apportionment and the end of the regular school
year, divided by the number of days school was actually taught in the
regular day schools of the district, excluding Saturdays and
Sundays.
   (b) For a school district to be eligible for purposes of this
section, the following conditions shall apply:
   (1) One or more state-operated migrant housing projects are
located within the attendance area of the school.
   (2) The maximum number of pupils enrolled in the school in the
relevant fiscal year who are currently migratory children, as
calculated under subdivision (a), constitutes not less than one-third
of the total pupil enrollment of the school.
   (c) The Superintendent shall establish rules and regulations for
the implementation of this section.
  SEC. 140.  Section 42238.1 of the Education Code is repealed.
  SEC. 141.  Section 42238.2 of the Education Code is repealed.
  SEC. 142.  Section 42238.3 of the Education Code is repealed.
  SEC. 143.  Section 42238.4 of the Education Code is repealed.
  SEC. 144.  Section 42238.41 of the Education Code is repealed.
  SEC. 145.  Section 42238.42 of the Education Code is repealed.
  SEC. 146.  Section 42238.43 of the Education Code is repealed.
  SEC. 147.  Section 42238.44 of the Education Code is repealed.
  SEC. 148.  Section 42238.445 of the Education Code is repealed.
  SEC. 149.  Section 42238.45 of the Education Code is repealed.
  SEC. 150.  Section 42238.46 of the Education Code is repealed.
  SEC. 151.  Section 42238.48 of the Education Code is repealed.
  SEC. 152.  Section 42238.485 of the Education Code is repealed.
  SEC. 153.  Section 42238.49 of the Education Code is repealed.
  SEC. 154.  Section 42238.5 of the Education Code is repealed.
  SEC. 155.  Section 42238.51 of the Education Code is repealed.
  SEC. 156.  Section 42238.52 of the Education Code is repealed.
  SEC. 157.  Section 42238.53 of the Education Code is repealed.
  SEC. 158.  Section 42238.6 of the Education Code is repealed.
  SEC. 159.  Section 42238.7 of the Education Code is repealed.
  SEC. 160.  Section 42238.75 of the Education Code is repealed.
  SEC. 161.  Section 42238.8 of the Education Code is repealed.
  SEC. 162.  Section 42238.9 of the Education Code is repealed.
  SEC. 163.  Section 42238.95 of the Education Code is repealed.
  SEC. 164.  Section 42238.11 of the Education Code is repealed.
  SEC. 165.  Section 42238.12 of the Education Code is repealed.
  SEC. 166.  Section 42238.13 of the Education Code is repealed.
  SEC. 167.  Section 42238.14 of the Education Code is repealed.
  SEC. 168.  Section 42238.145 of the Education Code is repealed.
  SEC. 169.  Section 42238.146 of the Education Code is repealed.
  SEC. 170.  Section 42238.15 of the Education Code is amended to
read:
   42238.15.  (a) Notwithstanding any other law, and in lieu of any
inflation or cost-of-living adjustment otherwise authorized for any
of the programs enumerated in subdivision (b), state funding for the
programs enumerated in subdivision (b) shall be increased annually by
the product of the following:
   (1) The sum of 1.0 plus the percentage change determined under
paragraph (2) of subdivision (d) of Section 42238.02.
   (2) The sum of 1.0 plus the percentage of increase, from the prior
fiscal year to the current fiscal year, in each of the workload
factors described in subdivision (b).
   (b) The programs for which annual state funding increases are
determined under this section, and the factors used to measure
workload for each of those programs, are as follows:
   (1) Special education programs and services, as measured by the
regular second principal apportionment average daily attendance for
kindergarten and grades 1 to 12, inclusive.
   (2) Child care and development programs, and preschool programs,
as measured by the state population of children up to and including
four years of age.
   (c) Notwithstanding any other law, child care and development
programs shall not receive a cost-of-living adjustment in the
2012-13, 2013-14, and 2014-15 fiscal years.
  SEC. 171.  Section 42238.17 of the Education Code is repealed.
  SEC. 172.  Section 42238.18 of the Education Code is repealed.
  SEC. 173.  Section 42238.20 of the Education Code is amended to
read:
   42238.20.  (a) Notwithstanding any other law, commencing in the
2013-14 fiscal year, the minimum schoolday for a pupil concurrently
enrolled in regular secondary school classes and classes operating
pursuant to a joint powers agreement that became effective before
January 1, 2008, is 180 minutes. These regular secondary school
classes constitute regular school classes for the purposes of Section
46010.3.
   (b) Notwithstanding any other law, for purposes of computing the
average daily attendance of a pupil described in subdivision (a), the
180-minute minimum schoolday permitted by this section shall be
computed and reported as attendance for three-quarters of the full
240-minute minimum schoolday prescribed by Section 46141.
   (c) For a pupil described in subdivision (a), the average daily
attendance shall be included as school district average daily
attendance computed pursuant to Section 42238.05.
   (d) (1) Commencing with the 2013-14 fiscal year, the
Superintendent shall compute funding for each pupil enrolled in
classes as described in subdivision (a), for the period of time each
day during which the pupil attends classes pursuant to a joint powers
agreement, by multiplying the annual clock hours of attendance, up
to a maximum of three clock hours per schoolday, by the rate
described in subdivision (e), as applicable.
   (2) The Superintendent shall add the amount computed pursuant to
paragraph (1) to the local control funding formula calculated
pursuant to Section 42238.02, as implemented by Section 42238.03, for
the school district of attendance of the pupil.
   (3) A pupil shall not generate apportionment credit pursuant to
this subdivision for more than 540 hours in any school year.
   (e) The hourly rate for the 2012-13 fiscal year shall be
determined as follows:
   (1) Subtract 73.3 percent of the school district local control
funding formula allocation funding per unit of average daily
attendance computed pursuant to Section 42238.02, as implemented by
Section 42238.03, for the 2013-14 fiscal year for the school
districts that entered into the joint powers agreement from the
statewide average local control funding formula allocation pursuant
to Section 42238.02, as implemented by Section 42238.03, funding per
unit of average daily attendance.
   (2) Divide the amount computed in paragraph (1) by 540.
   (f) For purposes of computing attendance pursuant to Section 46300
or any other law, immediate supervision and control of pupils while
attending classes pursuant to a joint powers agreement described in
subdivision (a) is deemed satisfied regardless of the school district
employing the certificated employee providing the supervision and
control, provided the school district is a party to the joint powers
agreement.
   (g) The auditor who conducts the annual audit pursuant to Section
41020 shall verify compliance with this section by each school
district that is a party to the joint powers agreement as described
in subdivision (a). An instance of noncompliance shall be reported as
an audit exception. If the noncompliance is a condition of
eligibility for the receipt of funds, the audit report shall include
a statement of the number of units of average daily attendance or
hours, if any, that were inappropriately reported for apportionment.
   (h) Notwithstanding any other law, the number of hours of
instruction at regional occupational centers or programs that are
claimed for funding pursuant to subdivision (d) shall be used, in
addition to the hourly rate determined pursuant to subdivision (e) or
(f), whichever subdivision is applicable, in the computation of the
average daily attendance of the regional occupational center or
program.
  SEC. 174.  Section 42238.23 of the Education Code is repealed.
  SEC. 175.  Section 42238.24 of the Education Code is repealed.
  SEC. 176.  Section 42239 of the Education Code is repealed.
  SEC. 177.  Section 42240 of the Education Code is repealed.
  SEC. 178.  Section 42240.1 of the Education Code is repealed.
  SEC. 179.  Section 42241.3 of the Education Code is repealed.
  SEC. 180.  Section 42241.7 of the Education Code is repealed.
  SEC. 181.  Section 42242 of the Education Code is repealed.
  SEC. 182.  Section 42243.7 of the Education Code is repealed.
  SEC. 183.  Section 42244 of the Education Code is repealed.
  SEC. 184.  Section 42245 of the Education Code is repealed.
  SEC. 185.  Section 42251 of the Education Code is repealed.
  SEC. 186.  Article 3 (commencing with Section 42260) of Chapter 7
of Part 24 of Division 3 of Title 2 of the Education Code is
repealed.
  SEC. 187.  Section 42280 of the Education Code is amended to read:
   42280.  (a) For each school district that meets, in the current or
prior fiscal year, the conditions specified in Section 42281, 42282,
or 42284 the Superintendent shall compute, for each qualifying
school in the school district, an amount pursuant to this article.
   (b) For each school district that is a countywide unified school
district that had fewer than 2,501 units of average daily attendance
in the 1990-91 fiscal year, the Superintendent shall compute an
amount pursuant to this article for those schools that meet the
conditions specified in Sections 42283 and 42285 in the current or
prior fiscal year. This subdivision is only applicable to those
schools funded pursuant to this article in the 1990-91 fiscal year
and, in subsequent years, if the school district has no more than
3,000 units of average daily attendance.
  SEC. 188.  Section 42281 of the Education Code is amended to read:
   42281.  Except as specified in paragraph (4), for each elementary
school district that maintains only one school with a second
principal apportionment average daily attendance of less than 101,
the Superintendent shall make one of the following computations,
whichever provides the lesser amount:
   (a) For each small school that has an average daily attendance
during the fiscal year of less than 24, exclusive of pupils attending
the 7th and 8th grades of a junior high school, and for which school
at least one teacher was hired full time, the Superintendent shall
compute for the school district fifty-two thousand nine hundred
twenty-five dollars ($52,925).
   (b) For each small school that has an average daily attendance
during the fiscal year of 25 or more and less than 48, exclusive of
pupils attending the 7th and 8th grades of a junior high school, and
for which school at least two teachers were hired full time for more
than one-half of the days schools were maintained, the Superintendent
shall compute for the school district one hundred five thousand
eight hundred fifty dollars ($105,850).
   (c) For each small school that has an average daily attendance
during the fiscal year of 49 or more but less than 72, exclusive of
pupils attending the 7th and 8th grades of a junior high school, and
for which school three teachers were hired full time for more than
one-half of the days schools were maintained, the Superintendent
shall compute for the school district one hundred fifty-eight
thousand seven hundred seventy-five dollars ($158,775).
   (d) For each small school that has an average daily attendance
during the fiscal year of 73 or more and less than 96, exclusive of
pupils attending the 7th and 8th grades of a junior high school, and
for which school four teachers were hired full time for more than
one-half of the days schools were maintained, the Superintendent
shall compute for the school district two hundred eleven thousand
seven hundred dollars ($211,700). A school district that qualifies
under this subdivision may use this funding calculation until the
local control funding formula allocation pursuant to Section
42238.02, as implemented by Section 42238.03, per unit of average
daily attendance multiplied by the average daily attendance produces
state aid equal to the small school funding formula.
  SEC. 189.  Section 42282 of the Education Code is amended to read:
   42282.  For each district with fewer than 2,501 units of second
principal apportionment average daily attendance, on account of each
necessary small school, the Superintendent shall make the following
computations:
   (a) For each necessary small school which has an average daily
attendance during the fiscal year of less than 24, exclusive of
pupils attending the 7th and 8th grades of a junior high school, and
for which school at least one teacher was hired full time, the
Superintendent shall compute for the school district fifty-two
thousand nine hundred twenty-five dollars ($52,925).
   (b) For each necessary small school which has an average daily
attendance during the fiscal year of 25 or more and less than 48,
exclusive of pupils attending the 7th and 8th grades of a junior high
school, and for which school at least two teachers were hired full
time for more than one-half of the days schools were maintained, the
Superintendent shall compute for the school district one hundred five
thousand eight hundred fifty dollars ($105,850).
   (c) For each necessary small school which has an average daily
attendance during the fiscal year of 49 or more, but less than 72,
exclusive of pupils attending the 7th and 8th grades of a junior high
school, and for which school three teachers were hired full time for
more than one-half of the days schools were maintained, the
Superintendent shall compute for the school district one hundred
fifty-eight thousand seven hundred seventy-five dollars ($158,775).
   (d) For each necessary small school which has an average daily
attendance during the fiscal year of 73 or more and less than 96,
exclusive of pupils attending the 7th and 8th grades of a junior high
school, and for which school four teachers were hired full time for
more than one-half of the days schools were maintained, the
Superintendent shall compute for the school district two hundred
eleven thousand seven hundred dollars ($211,700).
   (e) A school district that qualifies under this section may use
this funding                                          calculation
until the local control funding formula allocation pursuant to
Section 42238.02, as implemented by Section 42238.03, per unit of
average daily attendance multiplied by the average daily attendance
produces state aid equal to the small school funding formula.
  SEC. 190.  Section 42282.1 of the Education Code is repealed.
  SEC. 191.  Section 42283 of the Education Code is amended to read:
   42283.  (a) For purposes of Sections 42281 and 42282, a "necessary
small school" is an elementary school with an average daily
attendance of less than 101, exclusive of pupils attending the 7th
and 8th grades of a junior high school, maintained by a school
district to which school any of the following conditions apply:
   (1) If as many as five pupils residing in the school district and
attending kindergarten and grades 1 to 8, inclusive, exclusive of
pupils attending the 7th and 8th grades of a junior high school in
the elementary school with an average daily attendance of less than
101 would be required to travel more than 10 miles one way from a
point on a well-traveled road nearest their home to the nearest other
public elementary school.
   (2) If as many as 15 pupils residing in the school district and
attending kindergarten and grades 1 to 8, inclusive, exclusive of
pupils attending the 7th and 8th grades of a junior high school in
the elementary school with an average daily attendance of less than
101 would be required to travel more than five miles one way from a
point on a well-traveled road nearest their home to the nearest other
public elementary school.
   (3) If topographical or other conditions exist in a school
district which would impose unusual hardships if the number of miles
specified in paragraph (1) or (2) were required to be traveled, or if
during the fiscal year the roads which would be traveled have been
impassable for more than an average of two weeks per year for the
preceding five years, the governing board of the school district may,
on or before April 1, request the Superintendent, in writing, for an
exemption from these requirements or for a reduction in the miles
required. The request shall be accompanied by a statement of the
conditions upon which the request is based, giving the information in
a form required by the Superintendent. The Superintendent shall
cause an investigation to be made, and shall either grant the request
to the extent he or she deems necessary, or deny the request.
   (b) For purposes of this section, "other public elementary school"
is a public school, including a charter school, that serves
kindergarten or any of grades 1 to 8, inclusive, exclusive of grades
7 and 8 of a junior high school.
  SEC. 192.  Section 42283.1 of the Education Code is repealed.
  SEC. 193.  Section 42283.2 of the Education Code is repealed.
  SEC. 194.  Section 42284 of the Education Code is amended to read:
   42284.  (a) For each district with fewer than 2,501 units of
average daily attendance, on account of each necessary small high
school, the Superintendent shall make one of the following
computations selected with regard only to the number of certificated
employees employed or average daily attendance, whichever provides
the lesser amount:
                        Minimum
                         number
Average                   of           Amount to
daily                certificated          be
attendance            employees         computed
    1-19 ........     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


   (b) For purposes of this section, a "certificated employee" means
an equivalent full-time position of an individual holding a
credential authorizing service and providing service in grades 9 to
12, inclusive, in any secondary school. Any fraction of an equivalent
full-time position remaining after all equivalent full-time
positions for certificated employees within the district have been
calculated shall be deemed to be a full-time position.
   (c) A school district that qualifies under this section may use
the funding calculation as provided in this section until the local
control funding formula allocation pursuant to Section 42238.02, as
implemented by Section 42238.03, per unit of average daily attendance
multiplied by the average daily attendance produces state aid equal
to the funding provided under this section.
  SEC. 195.  Section 42285 of the Education Code is amended to read:
   42285.  (a) For purposes of Section 42284, a necessary small high
school is a high school with an average daily attendance of less than
301 that comes within any of the following conditions:
   (1) The projection of its future enrollment on the basis of the
enrollment of the elementary schools in the district shows that
within eight years the enrollment in high school in grades 9 to 12,
inclusive, will exceed 300 pupils.
   (2) Any one of the following combinations of distance and units of
average daily attendance applies:
   (A) The high school had an average daily attendance of less than
100 in grades 9 to 12, inclusive, during the preceding fiscal year
and is more than 15 miles by well-traveled road from the nearest
other public high school and either 90 percent of the pupils would be
required to travel 20 miles or 25 percent of the pupils would be
required to travel 30 miles one way from a point on a well-traveled
road nearest their homes to the nearest other public high school.
   (B) The high school had an average daily attendance of 100 or more
and less than 150 in grades 9 to 12, inclusive, during the preceding
fiscal year and is more than 10 miles by well-traveled road from the
nearest other public high school and either 90 percent of the pupils
would be required to travel 18 miles or 25 percent of the pupils
would be required to travel 25 miles one way from a point on a
well-traveled road nearest their homes to the nearest other public
high school.
   (C) The high school had an average daily attendance of 150 or more
and less than 200 in grades 9 to 12, inclusive, during the preceding
fiscal year and is more than 71/2 miles by well-traveled road from
the nearest other public high school and either 90 percent of the
pupils would be required to travel 15 miles or 25 percent of the
pupils would be required to travel 20 miles one way from a point on a
well-traveled road nearest their homes to the nearest other public
high school.
   (D) The high school had an average daily attendance of 200 or more
and less than 301 in grades 9 to 12, inclusive, during the preceding
fiscal year and is more than five miles by well-traveled road from
the nearest other public high school and either 90 percent of the
pupils would be required to travel 10 miles or 25 percent of the
pupils would be required to travel 15 miles to the nearest other
public high school.
   (3) Topographical or other conditions exist in the school district
which would impose unusual hardships on the pupils if the number of
miles specified above were required to be traveled. In these cases,
the Superintendent may, when requested, and after investigation,
grant exceptions from the distance requirements.
   (4) The Superintendent has approved the recommendation of a county
committee on school district organization designating one of two or
more schools as necessary isolated schools in a situation where the
schools are operated by two or more school districts and the average
daily attendance of each of the schools is less than 301 in grades 9
to 12, inclusive.
   (b) For purposes of Section 42284, a necessary small high school
also includes a high school maintained by a school district for the
exclusive purpose of educating juvenile hall pupils or pupils with
exceptional needs.
   (c) For purposes of Section 42284, a necessary small high school
does not include a continuation school.
   (d) For purposes of this section, "other public high school" is a
public school, including a charter school, that serves any of grades
9 to 12, inclusive, or grades 7 and 8 in a junior high school.
  SEC. 196.  Section 42285.1 of the Education Code is repealed.
  SEC. 197.  Section 42285.4 of the Education Code is repealed.
  SEC. 198.  Section 42285.5 of the Education Code is amended to
read:
   42285.5.  (a) For purposes of subdivision (a) of Section 42284 and
Section 42285, a school district may include average daily
attendance in grades 7 and 8 and the instructors of grade 7 and 8
pupils in the calculation of average daily attendance and number of
certificated employees employed.
   (b) Notwithstanding Sections 42284 and 42285, for purposes of this
section, with respect to a school district eligible to utilize
subdivision (a), any references to grades 9 to 12, inclusive, in
Sections 42284 and 42285 shall be deemed instead to be references to
grades 7 to 12, inclusive.
  SEC. 199.  Section 42286 of the Education Code is amended to read:
   42286.  (a) Except as required under subdivision (b), if a high
school is determined to be a necessary small high school under
Section 42285, that status shall not be changed except as a review of
the determinative factors made every two years following the date of
the determination indicates that the determination should be
changed.
   (b) If a high school is determined to be a necessary small high
school under paragraph (3) of subdivision (b) of Section 42285, that
status shall not be changed except as a review of the determinative
factors made every two years following the date of the determination
indicates that the determination should be changed.
   (c) A high school that has not been determined to be a necessary
small high school under Section 42285, may be determined to be a
necessary small high school at the beginning of a fiscal year if it
meets the criteria specified in Section 42285.
  SEC. 200.  Section 42287 of the Education Code is amended to read:
   42287.  Commencing with the 2013-14 fiscal year, the
Superintendent shall increase the funding amounts specified in
Sections 42281, 42282, and 42284 by an amount proportionate to the
increase in the statewide average local control funding formula
allocations pursuant to Section 42238.02, as implemented by Section
42238.03, for the then current fiscal year. For the 1984-85 fiscal
year to the 2012-13 fiscal year, inclusive, the Superintendent shall
increase the funding amounts specified in Sections 42281, 42282, and
42284 by an amount proportionate to the increase applied to the
statewide average revenue limit for unified school districts for the
then current fiscal year.
  SEC. 201.  Section 42289 of the Education Code is repealed.
  SEC. 202.  Section 42289.1 of the Education Code is repealed.
  SEC. 203.  Section 42289.2 of the Education Code is repealed.
  SEC. 204.  Section 42289.3 of the Education Code is repealed.
  SEC. 205.  Section 42289.4 of the Education Code is repealed.
  SEC. 206.  Section 42289.5 of the Education Code is repealed.
  SEC. 207.  Section 42289.6 of the Education Code is repealed.
  SEC. 208.  Article 4.5 (commencing with Section 42290) of Chapter 7
of Part 24 of Division 3 of Title 2 of the Education Code is
repealed.
  SEC. 209.  Article 4.7 (commencing with Section 42300) of Chapter 7
of Part 24 of Division 3 of Title 2 of the Education Code is
repealed.
  SEC. 210.  Section 42401 of the Education Code is amended to read:
   42401.  (a) Revenues from any transactions and use tax imposed
pursuant to Chapter 3.5 (commencing with Section 7288.1) of Part 1.7
of Division 2 of the Revenue and Taxation Code shall not be
considered "allocated local proceeds of taxes" pursuant to Section
41202 of the Education Code or paragraph (2) of subdivision (b) of
Section 8 of Article XVI of the California Constitution.
   (b) Revenues derived from any transactions and use tax imposed
pursuant to Chapter 3.5 (commencing with Section 7288.1) of Part 1.7
of Division 2 of the Revenue and Taxation Code shall supplement, and
shall not be offset against, the allocations made pursuant to Section
2575 or 42238.02, as implemented pursuant to Section 42238.03, of
the Education Code.
  SEC. 211.  Section 42604 of the Education Code is repealed.
  SEC. 212.  Section 42605 of the Education Code is repealed.
  SEC. 213.  Section 42606 of the Education Code is repealed.
  SEC. 214.  Section 42800 of the Education Code is amended to read:
   42800.  (a) The governing board of a school district may, with the
consent of the county superintendent of schools, establish a
revolving cash fund for the use of the chief accounting officer of
the school district, by adopting a resolution setting forth the
necessity for the revolving cash fund, the officer for whom and the
purposes for which the revolving cash fund shall be available, and
the amount of the fund. The purposes for which the revolving cash
fund shall be available shall include the purposes specified in
Section 45167. Three certified copies of the resolution shall be
transmitted to the county superintendent of schools. If he approves
the establishment of the fund, the county superintendent shall
endorse his consent on the resolution and return one copy to the
governing body of the school district, and transmit one copy to the
county auditor.
   (b) The maximum amount allowed for revolving cash funds
established pursuant to subdivision (a) shall be the lesser of:
   (1) Two percent of the district's estimated expenditures for the
current fiscal year, or
   (2) A dollar amount limit of seventy-five thousand dollars
($75,000) for any elementary school or high school district and one
hundred fifty thousand dollars ($150,000) for any unified school
district for fiscal year 1990-91. The dollar amount limit for each
school district shall thereafter be increased annually by the
percentage increase in the school district's local control funding
formula allocation established pursuant to Section 42238.02, as
implemented pursuant to Section 42238.03.
  SEC. 215.  Chapter 11.3 (commencing with Section 42920) of Part 24
of Division 3 of Title 2 of the Education Code is repealed.
  SEC. 216.  Chapter 11.5 (commencing with Section 42950) of Part 24
of Division 3 of Title 2 of the Education Code is repealed.
  SEC. 217.  Chapter 12 (commencing with Section 43001.5) of Part 24
of Division 3 of Title 2 of the Education Code is repealed.
  SEC. 218.  Section 44279.2 of the Education Code is amended to
read:
   44279.2.  (a) The Superintendent and the commission shall jointly
administer the California Beginning Teacher Support and Assessment
System pursuant to this chapter. In administering this section, the
Superintendent and the commission shall provide or contract for the
provision of all of the following:
   (1) Establishing requirements for reviewing and approving teacher
induction programs.
   (2) Developing and administering a system for ensuring teacher
induction program quality and effectiveness. For purposes of this
section, "program effectiveness" means producing excellent program
outcomes in relation to the purposes defined in subdivision (b) of
Section 44279.1. For purposes of this section, "program quality"
means excellence with respect to program factors, including, but not
limited to, all of the following:
   (A) Program goals.
   (B) Design resources.
   (C) Management, evaluation, and improvement of the program.
   (D) School context and working conditions.
   (E) Support and assessment services to each beginning teacher.
   (3) Developing purposes and functions for reviewing and approving
supplemental grants and standards for program clusters and program
consultants, as defined pursuant to Section 44279.7.
   (4) Improving and refining the formative assessment system.
   (5) Improving and refining professional development materials and
strategies for all personnel involved in implementing induction
programs.
   (6) Conducting and tracking research related to beginning teacher
induction.
   (7) Periodically evaluating the validity of the California
Standards for the Teaching Profession adopted by the commission and
the Standards of Quality and Effectiveness for Beginning Teacher
Support and Assessment Program adopted by the commission and making
changes to those documents, as necessary.
   (b) As part of the California Beginning Teacher Support and
Assessment System, the commission and the Superintendent shall
establish requirements for local teacher induction programs.
   (c) A school district or consortium of school districts may
establish a local teacher induction program pursuant to this section
that shall, at a minimum, meet all of the following requirements:
   (1) Develop, implement, and evaluate teacher induction programs
that meet the Quality and Effectiveness for Beginning Teacher
Induction Program Standards adopted by the commission.
   (2) Support beginning teachers in meeting the competencies
described in the California Standards for the Teaching Profession
adopted by the commission.
   (3) Meet criteria for the cost-effective delivery of program
services.
  SEC. 219.  Section 44279.25 of the Education Code is amended to
read:
   44279.25.  (a) In consultation with the Superintendent, the
commission shall revise the formative assessment system for beginning
teachers, as necessary to ensure that related tasks and activities
are aligned to the revised standards adopted pursuant to subdivision
(c).
   (b) The Superintendent and the commission shall identify effective
practices and techniques and provide for the dissemination of these
to local induction program providers.
   (c) Immediately following the adoption by the commission of
revised standards the commission shall review induction programs to
determine whether local teacher induction programs are meeting
standards of quality and effectiveness and to assure greater program
quality and consistency. The commission shall schedule regular
reviews following the initial review of programs pursuant to this
subdivision.
   (d) The Superintendent and the commission shall ensure that
teacher credential candidates are notified of the opportunity to
choose an early completion option pursuant to Section 44468.
  SEC. 220.  Section 44279.7 of the Education Code is amended to
read:
   44279.7.  (a) The Superintendent and the commission shall
designate each school district and consortium of school districts
participating in the Beginning Teacher Support and Assessment System
established pursuant to Section 44279.2 as belonging to a cluster
according to the criteria established pursuant to this subdivision.
For purposes of this section "cluster" means a cluster of school
districts or consortium of school districts established pursuant this
section. The Superintendent and the commission shall establish
criteria for the formation of school districts or consortiums of
school district teacher induction program clusters based upon, but
not necessarily be limited to, all of the following:
   (1) Geographic proximity.
   (2) Program size.
   (3) The number of beginning teachers served.
   (4) The similarity of teacher characteristics and pupil
populations in each school district.
   (b) School districts and consortiums of school districts may
identify a teacher induction program consultant to assist the school
district or consortiums of school districts forming a cluster. The
Superintendent and the commission shall identify the purpose and
functions of each consultant. Those purposes and functions shall
include, but not necessarily be limited to, all the following:
   (1) Assisting in designing, implementing, refining, and evaluating
their teacher induction programs.
   (2) Assisting in building the capacity to provide professional
development for all personnel involved in the implementation of
teacher induction programs, including, but not limited to, beginning
teachers, support providers, and administrators.
   (3) Disseminating information on teacher induction programs to all
interested participants within the cluster and collaborating with
other consultants statewide and with state administrative agency
staff to ensure ongoing program improvement.
  SEC. 221.  Section 44320 of the Education Code is amended to read:
   44320.  (a) Professional preparation, including student teaching,
shall be made available in the upper division course offerings at all
California public institutions of higher learning, except the
California Maritime Academy and the Hastings College of the Law. No
more than nine semester units, or the equivalent, of professional
education courses may be designated as prerequisites for purposes of
admission to student teaching, except that, to satisfy the English
language requirement as set forth in paragraph (3) of subdivision (b)
of Section 44259, candidates may be required to take 12 semester
units, or the equivalent, as professional education prerequisites to
student teaching.
   (b) The commission shall encourage postsecondary institutions that
offer programs of professional preparation to collaborate with
school districts, county offices of education, and professional
organizations in the design and delivery of local programs to
function as part of the California beginning teacher support and
assessment program pursuant to Section 44279.2. If local educational
agencies and institutions of higher education voluntarily agree to
implement the program, the following provisions shall apply to each
collaborative effort:
   (1) Postsecondary institutions and local education agencies shall
coordinate and articulate the program of professional preparation and
the beginning teacher support and assessment program, so the two
programs provide continuity in the preparation, support, and
assessment of beginning teachers.
   (2) At the discretion of a postsecondary institution that
participates in a collaborative effort, the program of professional
preparation may be submitted to the commission for approval as a
program of preparation, support, and assessment that is at least two
years long.
   (3) In each program of preparation, support, and assessment, the
postsecondary institution shall make it possible for each candidate
to complete all requirements for a valid teaching credential in the
equivalent of one year of full-time study.
   (4) A postsecondary institution that participates in a
collaborative effort may, at its discretion, determine that
successful completion of the support and assessment components of an
articulated program of professional preparation, support, and
assessment fulfills some or all of the requirements of subdivision
(c) of Section 44259, and may accordingly recommend applicants for
the professional teaching credential. The standards and criteria for
making these determinations and recommendations shall be included in
the institution's proposal for a program.
   (5) A local educational agency that collaborates, at its own
discretion, with a postsecondary education institution in the design
and delivery of an articulated program of professional preparation,
support, and assessment that meets the standards and criteria
pursuant to subdivision (c) of Section 44279.2, may contract with the
postsecondary institution to pay the institution's costs of
designing and delivering the support and assessment components of the
program.
   (c) Local educational agencies that are approved by the commission
to provide programs of personalized preparation to candidates for
designated subjects teaching credentials are encouraged to
participate in the design and delivery of local programs under the
California beginning teacher support and assessment program pursuant
to Article 4.5 (commencing with Section 44279.2), in a manner
consistent with subdivision (b).
   (d) Before admission to either student teaching under any
professional preparation program approved by the commission, or
participation in a field experience program as described in Section
44324, a candidate for a credential shall obtain a certificate of
clearance from the commission which shall be issued when the
commission has verified the candidate's personal identification and
health status. The fee for the certificate of clearance shall not
exceed one-half of the regular fee for a credential and shall be
deducted from the fee for the initial credential applied for by the
certificate holder.
  SEC. 222.  Section 44328 of the Education Code is amended to read:
   44328.  (a) Unless the commission determines that substantial
evidence exists that a person is unqualified to teach, upon the
completion of successful service as a district intern pursuant to
subdivision (b) of Section 44325, and upon the recommendation of the
school district governing board, the commission shall award
preliminary credentials to district interns in the same manner as
applicants recommended for credentials by institutions that operate
approved programs of professional preparation.
   (b) Notwithstanding paragraphs (1) and (2) of subdivision (a) of
Section 44225, paragraphs (3), (4), (5), and (6) of subdivision (b)
of Section 44259, paragraphs (1), (2), (3), and (4) of subdivision
(c) of Section 44259, and Sections 44261, 44265, and 44335, upon
recommendation by the governing board, district interns shall be
issued preliminary credentials, upon the completion of successful
service as a teacher pursuant to subdivision (b) of Section 44325,
unless the governing board recommends, and the commission finds
substantial evidence, that the person is not qualified to teach. A
school district may require a district intern who is pursuing a clear
credential to complete an approved induction program if funds are
available or approved coursework in accordance with paragraph (5) of
subdivision (c) of Section 44259.
   (c) Notwithstanding Section 44261, the preliminary credential
awarded to any district intern holding a district intern credential
to teach bilingual education classes shall be a basic teaching
credential with a bilingual-crosscultural language and academic
development emphasis. Notwithstanding Section 44265, the preliminary
credential awarded to any district intern who holds a district intern
credential to teach special education pupils shall be a special
education specialist instruction credential
                 that authorizes the holder to teach special
education pupils.
   (d) It is the intent of the Legislature that institutions of
higher education that operate approved programs of professional
preparation work cooperatively with school districts that offer
district intern programs for a special education specialist
credential to apply the regular education coursework and fieldwork
from the special education district intern program toward earning a
multiple or single subject teaching credential through the
institution.
  SEC. 223.  Article 11 (commencing with Section 44380) of Chapter 2
of Part 25 of Division 3 of Title 2 of the Education Code is
repealed.
  SEC. 224.  Article 12 (commencing with Section 44390) of Chapter 2
of Part 25 of Division 3 of Title 2 of the Education Code is
repealed.
  SEC. 225.  Article 13 (commencing with Section 44395) of Chapter 2
of Part 25 of Division 3 of Title 2 of the Education Code is
repealed.
  SEC. 226.  Article 4.5 (commencing with Section 44500) of Chapter 3
of Part 25 of Division 3 of Title 2 of the Education Code is
repealed.
  SEC. 227.  Article 5 (commencing with Section 44520) of Chapter 3
of Part 25 of Division 3 of Title 2 of the Education Code is
repealed.
  SEC. 228.  Article 6 (commencing with Section 44560) of Chapter 3
of Part 25 of Division 3 of Title 2 of the Education Code is
repealed.
  SEC. 229.  Article 7 (commencing with Section 44570) of Chapter 3
of Part 25 of Division 3 of Title 2 of the Education Code is
repealed.
  SEC. 230.  Article 8 (commencing with Section 44580) of Chapter 3
of Part 25 of Division 3 of Title 2 of the Education Code is
repealed.
  SEC. 231.  Article 10 (commencing with Section 44630) of Chapter 3
of Part 25 of Division 3 of Title 2 of the Education Code is
repealed.
  SEC. 232.  Article 10.5 (commencing with Section 44645) of Chapter
3 of Part 25 of Division 3 of Title 2 of the Education Code is
repealed.
  SEC. 233.  Article 10.6 (commencing with Section 44650) of Chapter
3 of Part 25 of Division 3 of Title 2 of the Education Code is
repealed.
  SEC. 234.  Article 3 (commencing with Section 44681) of Chapter 3.1
of Part 25 of Division 3 of Title 2 of the Education Code is
repealed.
  SEC. 235.  Chapter 3.3 (commencing with Section 44700) of Part 25
of Division 3 of Title 2 of the Education Code is repealed.
  SEC. 236.  Chapter 3.33 (commencing with Section 44720) of Part 25
of Division 3 of Title 2 of the Education Code is repealed.
  SEC. 237.  Chapter 3.34 (commencing with Section 44730) of Part 25
of Division 3 of Title 2 of the Education Code is repealed.
  SEC. 238.  Chapter 3.36 (commencing with Section 44735) of Part 25
of Division 3 of Title 2 of the Education Code is repealed.
  SEC. 239.  Chapter 3.45 (commencing with Section 44755) of Part 25
of Division 3 of Title 2 of the Education Code is repealed.
  SEC. 240.  Chapter 3.5 (commencing with Section 44760) of Part 25
of Division 3 of Title 2 of the Education Code is repealed.
  SEC. 241.  Section 44944 of the Education Code is amended to read:
   44944.  (a) (1) In a dismissal or suspension proceeding initiated
pursuant to Section 44934, if a hearing is requested by the employee,
the hearing shall be commenced within 60 days from the date of the
employee's demand for a hearing. The hearing shall be initiated,
conducted, and a decision made in accordance with Chapter 5
(commencing with Section 11500) of Part 1 of Division 3 of Title 2 of
the Government Code. However, the hearing date shall be established
after consultation with the employee and the governing board of the
school district, or their representatives, and the Commission on
Professional Competence shall have all of the power granted to an
agency in that chapter, except that the right of discovery of the
parties shall not be limited to those matters set forth in Section
11507.6 of the Government Code but shall include the rights and
duties of any party in a civil action brought in a superior court
under Title 4 (commencing with Section 2016.010) of Part 4 of the
Code of Civil Procedure. Notwithstanding any provision to the
contrary, and except for the taking of oral depositions, no discovery
shall occur later than 30 calendar days after the employee is served
with a copy of the accusation pursuant to Section 11505 of the
Government Code. In all cases, discovery shall be completed before
seven calendar days before the date upon which the hearing commences.
If a continuance is granted pursuant to Section 11524 of the
Government Code, the time limitation for commencement of the hearing
as provided in this subdivision shall be extended for a period of
time equal to the continuance. However, the extension shall not
include that period of time attributable to an unlawful refusal by
either party to allow the discovery provided for in this section.
   (2) If the right of discovery granted under paragraph (1) is
denied by either the employee or the governing board of the school
district, all of the remedies in Chapter 7 (commencing with Section
2023.010) of Title 4 of Part 4 of the Code of Civil Procedure shall
be available to the party seeking discovery and the court of proper
jurisdiction, to entertain his or her motion, shall be the superior
court of the county in which the hearing will be held.
   (3) The time periods in this section and of Chapter 5 (commencing
with Section 11500) of Part 1 of Division 3 of Title 2 of the
Government Code and of Title 4 (commencing with Section 2016.010) of
Part 4 of the Code of Civil Procedure shall not be applied so as to
deny discovery in a hearing conducted pursuant to this section.
   (4) The superior court of the county in which the hearing will be
held may, upon motion of the party seeking discovery, suspend the
hearing so as to comply with the requirement of the preceding
paragraph.
   (5) No witness shall be permitted to testify at the hearing except
upon oath or affirmation. No testimony shall be given or evidence
introduced relating to matters that occurred more than four years
before the date of the filing of the notice. Evidence of records
regularly kept by the governing board of the school district
concerning the employee may be introduced, but no decision relating
to the dismissal or suspension of an employee shall be made based on
charges or evidence of a nature relating to matters occurring more
than four years before the filing of the notice.
   (b) (1) The hearing provided for in this section shall be
conducted by a Commission on Professional Competence. One member of
the commission shall be selected by the employee, one member shall be
selected by the governing board of the school district, and one
member shall be an administrative law judge of the Office of
Administrative Hearings who shall be chairperson and a voting member
of the commission and shall be responsible for assuring that the
legal rights of the parties are protected at the hearing. If either
the governing board of the school district or the employee for any
reason fails to select a commission member at least seven calendar
days before the date of the hearing, the failure shall constitute a
waiver of the right to selection, and the county board of education
or its specific designee shall immediately make the selection. If the
county board of education is also the governing board of the school
district or has by statute been granted the powers of a governing
board of a school district, the selection shall be made by the
Superintendent, who shall be reimbursed by the school district for
all costs incident to the selection.
   (2) The member selected by the governing board of the school
district and the member selected by the employee shall not be related
to the employee and shall not be employees of the school district
initiating the dismissal or suspension and shall hold a currently
valid credential and have at least five years' experience within the
past 10 years in the discipline of the employee.
   (c) (1) The decision of the Commission on Professional Competence
shall be made by a majority vote, and the commission shall prepare a
written decision containing findings of fact, determinations of
issues, and a disposition that shall be, solely, one of the
following:
   (A) That the employee should be dismissed.
   (B) That the employee should be suspended for a specific period of
time without pay.
   (C) That the employee should not be dismissed or suspended.
   (2) The decision of the Commission on Professional Competence that
the employee should not be dismissed or suspended shall not be based
on nonsubstantive procedural errors committed by the school district
or governing board of the school district unless the errors are
prejudicial errors.
   (3) The commission shall not have the power to dispose of the
charge of dismissal by imposing probation or other alternative
sanctions. The imposition of suspension pursuant to subparagraph (B)
of paragraph (1) shall be available only in a suspension proceeding
authorized pursuant to subdivision (b) of Section 44932 or Section
44933.
   (4) The decision of the Commission on Professional Competence
shall be deemed to be the final decision of the governing board of
the school district.
   (5) The board may adopt from time to time rules and procedures not
inconsistent with this section as may be necessary to effectuate
this section.
   (6) The governing board of the school district and the employee
shall have the right to be represented by counsel.
   (d) (1) If the member selected by the governing board of the
school district or the member selected by the employee is employed by
a school district in this state, the member shall, during any
service on a Commission on Professional Competence, continue to
receive salary, fringe benefits, accumulated sick leave, and other
leaves and benefits from the school district in which the member is
employed, but shall receive no additional compensation or honorariums
for service on the commission.
   (2) If service on a Commission on Professional Competence occurs
during summer recess or vacation periods, the member shall receive
compensation proportionate to that received during the current or
immediately preceding contract period from the member's employing
school district, whichever amount is greater.
   (e) (1) If the Commission on Professional Competence determines
that the employee should be dismissed or suspended, the governing
board of the school district and the employee shall share equally the
expenses of the hearing, including the cost of the administrative
law judge. The employee and the governing board of the school
district shall pay their own attorney's fees.
   (2) If the Commission on Professional Competence determines that
the employee should not be dismissed or suspended, the governing
board of the school district shall pay the expenses of the hearing,
including the cost of the administrative law judge, any costs
incurred under paragraph (2) of subdivision (d), the reasonable
expenses, as determined by the administrative law judge, of the
member selected by the governing board of the school district and the
member selected by the employee, including, but not limited to,
payments or obligations incurred for travel, meals, and lodging, the
cost of the substitute or substitutes, if any, for the member
selected by the governing board of the school district and the member
selected by the employee, and reasonable attorney's fees incurred by
the employee.
   (3) As used in this section, "reasonable expenses" shall not be
deemed "compensation" within the meaning of subdivision (d).
   (4) If either the governing board of the school district or the
employee petitions a court of competent jurisdiction for review of
the decision of the commission, the payment of expenses to members of
the commission required by this subdivision shall not be stayed.
   (5) If the decision of the commission is finally reversed or
vacated by a court of competent jurisdiction, either the employee,
having paid a portion of the expenses of the hearing, including the
cost of the administrative law judge, shall be entitled to
reimbursement from the governing board of the school district for the
expenses, or the governing board of the school district, having paid
its portion and the employee's portion of the expenses of the
hearing, including the cost of the administrative law judge, shall be
entitled to reimbursement from the employee for that portion of the
expenses.
   (f) The hearing provided for in this section shall be conducted in
a place selected by agreement among the members of the commission.
In the absence of agreement, the place shall be selected by the
administrative law judge.
  SEC. 242.  Section 44955.5 of the Education Code is amended to
read:
   44955.5.  (a) During the time period between five days after the
enactment of the Budget Act and August 15 of the fiscal year to which
that Budget Act applies, if the governing board of a school district
determines that its total local control funding formula allocation
pursuant to Section 42238.02, as implemented by Section 42238.03, per
unit of average daily attendance for the fiscal year of that Budget
Act has not increased by at least 2 percent, and if in the opinion of
the governing board of the school district it is therefore necessary
to decrease the number of permanent employees in the school
district, the governing board of the school district may terminate
the services of permanent or probationary certificated employees of
the school district, including employees holding a position that
requires an administrative or supervisory credential. The termination
shall be pursuant to Sections 44951 and 44955 but, notwithstanding
anything to the contrary in Sections 44951 and 44955, in accordance
with a schedule of notice and hearing adopted by the governing board
of the school district.
   (b) This section is inoperative from July 1, 2002, to July 1,
2003, inclusive, and from July 1, 2011, to July 1, 2012, inclusive.
  SEC. 243.  Section 45037 of the Education Code is repealed.
  SEC. 244.  Article 8.5 (commencing with Section 45370) of Chapter 5
of Part 25 of Division 3 of Title 2 of the Education Code is
repealed.
  SEC. 245.  Section 46010.2 of the Education Code is repealed.
  SEC. 246.  Section 46013 of the Education Code is repealed.
  SEC. 247.  Section 46013.7 of the Education Code is repealed.
  SEC. 248.  Section 46140 of the Education Code is amended to read:
   46140.  A pupil in a high school, other than a pupil enrolled in
an evening high school, continuation high school, or continuation
education class, shall not be credited with more than one day of
attendance in any calendar day and nothing in this article shall be
construed to the contrary.
  SEC. 249.  Section 46140.5 of the Education Code is repealed.
  SEC. 250.  Section 46141 of the Education Code is amended to read:
   46141.  The minimum schoolday in a high school is 240 minutes,
except in an evening high school, an early college high school, a
middle college high school, a continuation high school, in
continuation education classes, in late afternoon or Saturday
occupationally organized vocational training programs conducted under
a federally approved plan for vocational education, and for students
enrolled in a work experience education program approved under the
provisions of Article 7 (commencing with Section 51760) of Chapter 5
of Part 28.
  SEC. 251.  Section 46144 of the Education Code is repealed.
  SEC. 252.  Section 46145 of the Education Code is amended to read:
   46145.  Commencing with the first semester or quarter that begins
after January 1, 1984, pupils in grade 12 shall be enrolled in at
least five courses each semester or the equivalent number of courses
per quarter. If a pupil in grade 12 is required by medical
prescription to attend school for less than five courses during the
semester or the equivalent number of courses during the quarter, the
average daily attendance allowed for that pupil's attendance shall
bear the same proportion to one day of attendance as the number of
courses in which the pupil is enrolled bears to five or the
equivalent number for the quarter system.
   However, this requirement shall not apply to pupils enrolled in
courses at accredited postsecondary educational institutions,
independent study, special education programs where the pupil's
individualized education program establishes a different number of
courses, continuation education classes, work experience education
programs approved under the provisions of Article 7 (commencing with
Section 51760) of Chapter 5 of Part 28, or any other course of study
authorized by the governing board of the school district which is
equivalent to the approved high school course of study.
  SEC. 253.  Article 7 (commencing with Section 46190) of Chapter 2
of Part 26 of Division 4 of Title 2 of the Education Code is
repealed.
  SEC. 254.  Section 46200 of the Education Code is amended to read:
   46200.  For a school district that received an apportionment
pursuant to subdivision (a) of this section, as it read on January 1,
2013, and that offers less than 180 days of instruction or, in
multitrack year-round schools, fewer than the number of days required
in subdivision (a) of this section, as it read on January 1, 2013,
for multitrack year-round schools, in the 2013-14 fiscal year, or any
fiscal year thereafter, the Superintendent shall withhold from the
school district's local control funding formula grant apportionment
pursuant to Section 42238.02, as implemented by Section 42238.03, for
the average daily attendance of each affected grade level the sum of
0.0056 multiplied by that apportionment, for each day less than 180,
or, in multitrack year-round schools, for each day less than the
number of days required in subdivision (a) for year-round schools
that the school district offered.
  SEC. 255.  Section 46201 of the Education Code is amended to read:
   46201.  (a) For each school district that received an
apportionment pursuant to subdivision (a) of this section, as it read
on January 1, 2013, and that reduces the amount of instructional
time offered below the minimum amounts specified in subdivision (b),
the Superintendent shall withhold from the school district's local
control funding formula grant apportionment pursuant to Section
42238.02, as implemented by Section 42238.03, for the average daily
attendance of each affected grade level, the sum of that
apportionment multiplied by the percentage of the minimum offered
minutes at that grade level that the school district failed to offer.

   (b) Commencing with the 2013-14 fiscal year:
   (1) Thirty-six thousand minutes in kindergarten.
   (2) Fifty thousand four hundred minutes in grades 1 to 3,
inclusive.
   (3) Fifty-four thousand minutes in grades 4 to 8, inclusive.
   (4) Sixty-four thousand eight hundred minutes in grades 9 to 12,
inclusive.
  SEC. 256.  Section 46201.1 of the Education Code is repealed.
  SEC. 257.  Section 46201.2 of the Education Code is amended to
read:
   46201.2.  (a) Commencing with the 2009-10 school year and
continuing through the 2012-13 school year, a school district, county
office of education, or charter school may reduce the equivalent of
up to five days of instruction or the equivalent number of
instructional minutes without incurring the penalties set forth in
Sections 41420, 46200, 46200.5, 46201, 46201.5, 46202, and 47612.5,
as those sections read on January 1, 2013. A school district, county
office of education, or charter school shall receive revenue limit
funding based on the adjustments prescribed pursuant to Section
42238.146, as it read on January 1, 2013, whether or not it reduces
the number of schooldays or instructional minutes.
   (b) For the 2013-14 and 2014-15 school years, a school district,
county office of education, or charter school may reduce the
equivalent of up to five days of instruction or the equivalent number
of instructional minutes without incurring the penalties set forth
in Sections 41420, 46200, 46200.5, 46201, 46201.5, 46202, and
47612.5.
   (c) This section shall become inoperative on July 1, 2015, and, as
of January 1, 2016, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2016, deletes or
extends the dates on which it becomes inoperative and is repealed.
  SEC. 258.  Section 46201.3 of the Education Code is repealed.
  SEC. 259.  Section 46201.6 of the Education Code is repealed.
  SEC. 260.  Section 46202 of the Education Code is amended to read:
   46202.  If a school district that does not participate in the
program set forth in Sections 46200 to 46206, inclusive, as those
sections read on January 1, 2013, offers less instructional time in a
fiscal year than the amount of instructional time fixed for the
1982-83 fiscal year, the Superintendent shall withhold for that
fiscal year, from the school district's local control funding formula
grant apportionment pursuant to Section 42238.03, as implemented by
Section 42238.03, for the average daily attendance of each affected
grade level, the amount of that apportionment multiplied by the
percentage of instructional minutes fixed in the 1982-83 school year,
at that grade level, that the school district failed to offer.
  SEC. 261.  Section 46203 of the Education Code is repealed.
  SEC. 262.  Section 46204 of the Education Code is repealed.
  SEC. 263.  Section 46207 is added to the Education Code, to read:
   46207.  (a) Notwithstanding Sections 46200 to 46205, inclusive,
upon a determination that a school district equals or exceeds its
local control funding formula target computed pursuant to Section
42238.02 as determined by the calculation of a zero difference
pursuant to paragraph (1) of subdivision (b) of Section 42238.03,
each school district, as a condition of apportionment pursuant to
Section 42238.02, as implemented pursuant to Section 42238.03, shall,
for each fiscal year, offer, at a minimum, the following number of
minutes of instruction:
   (1) To pupils in kindergarten, 36,000 minutes.
   (2) To pupils in grades 1 to 3, inclusive, 50,400 minutes.
   (3) To pupils in grades 4 to 8, inclusive, 54,000 minutes.
   (4) To pupils in grades 9 to 12, inclusive, 64,800 minutes.
   (b) For a school district that has met its local control funding
formula target that reduces the amount of instructional time offered
below the minimum amounts specified in subdivision (a), the
Superintendent shall withhold from the school district's local
control funding formula apportionment for the average daily
attendance of each affected grade level, the sum of that
apportionment multiplied by the percentage of the minimum offered
minutes at that grade level that the school district failed to offer.

   (c) Notwithstanding subdivision (a), for the 2013-14 and 2014-15
school years, a school district that equals or exceeds its computed
local control funding formula target may reduce the equivalent of up
to five days of instruction or the equivalent number of instructional
minutes without incurring the penalties set forth in this section.
  SEC. 264.  Section 46208 is added to the Education Code, to read:
   46208.  (a) Notwithstanding Sections 46200 to 46205, inclusive,
upon a determination that a school district equals or exceeds its
local control funding formula target computed pursuant to Section
42238.02 as determined by the calculation of a zero difference
pursuant to paragraph (1) of subdivision (b) of Section 42238.03,
each school district, as a condition of apportionment pursuant to
Section 42238.02, as implemented pursuant to Section 42238.03, shall
offer 180 days or more of instruction per school year. A school
operating a multitrack year-round school shall be deemed to be in
compliance with the 180-day requirement if it certifies to the
Superintendent that it is a multitrack year-round school and
maintains its school for a minimum of 163 schooldays.
   (b) Notwithstanding subdivision (a), for the 2013-14 and 2014-15
school years, a school district that equals or exceeds its computed
local control funding formula target may reduce the equivalent of up
to five days of instruction or the equivalent number of instructional
minutes without incurring the penalties set forth in this section.
  SEC. 265.  Section 46300 of the Education Code is amended to read:
   46300.  (a) In computing average daily attendance of a school
district or county office of education, there shall be included the
attendance of pupils while engaged in educational activities required
of those pupils and under the immediate supervision and control of
an employee of the school district or county office of education who
possessed a valid certification document, registered as required by
law.
   (b) (1) For purposes of a work experience education program in a
secondary school that meets the standards of the California State
Plan for Career Technical Education, "immediate supervision," in the
context of off-campus work training stations, means pupil
participation in on-the-job training as outlined under a training
agreement, coordinated by the school district under a state-approved
plan, wherein the employer and certificated school personnel share
the responsibility for on-the-job supervision.
   (2) A pupil enrolled in a work experience program shall not be
credited with more than one day of attendance per calendar day, and
shall be a full-time pupil enrolled in regular classes that meet the
requirements of Section 46141 or 46144.
   (c) (1) For purposes of the rehabilitative schools, classes, or
programs described in Section 48917 that require immediate
supervision, "immediate supervision" means that the person to whom
the pupil is required to report for training, counseling, tutoring,
or other prescribed activity shares the responsibility for the
supervision of the pupils in the rehabilitative activities with
certificated personnel of the school district.
   (2) A pupil enrolled in a rehabilitative school, class, or program
shall not be credited with more than one day of attendance per
calendar day.
   (d) (1) In computing the average daily attendance of a school
district, there shall also be included the attendance of pupils
participating in independent study conducted pursuant to Article 5.5
(commencing with Section 51745) of Chapter 5 of Part 28 for five or
more consecutive schooldays.
   (2) A pupil participating in independent study shall not be
credited with more than one day of attendance per calendar day.
   (e) (1) In computing the average daily attendance of a school
district, there shall be included the attendance of pupils in
kindergarten after they have completed one school year in
kindergarten or pupils in a transitional kindergarten program after
they have completed one year in that
              program if one of the following conditions is met:
   (A) The school district has on file for each of those pupils an
agreement made pursuant to Section 48011, approved in form and
content by the department and signed by the pupil's parent or
guardian, that the pupil may continue in kindergarten for not more
than one additional school year.
   (B) The pupils participated in a transitional kindergarten program
pursuant to subdivision (c) of Section 48000.
   (2) A school district may not include for apportionment purposes
the attendance of any pupil for more than two years in kindergarten
or for more than two years in a combination of transitional
kindergarten and kindergarten.
  SEC. 266.  Section 46300.1 of the Education Code is amended to
read:
   46300.1.  Commencing July 1, 1993, a school district shall not
receive school district apportionments pursuant to Section 42238.02
for independent study by pupils 21 years of age or older or by pupils
19 years of age or older who have not been continuously enrolled in
kindergarten or any of grades 1 to 12, inclusive, since their 18th
birthday.
  SEC. 267.  Section 46300.7 of the Education Code is amended to
read:
   46300.7.  Notwithstanding any other law, a school district or
county office of education shall not receive apportionments for a
pupil in independent study unless that entity receives written
permission from the parent or guardian of the pupil before the
commencement of independent study by that pupil consistent with the
requirements for independent study pursuant to Section 51747.
  SEC. 268.  Section 46306 of the Education Code is repealed.
  SEC. 269.  Article 5 (commencing with Section 46351) of Chapter 3
of Part 26 of Division 4 of Title 2 of the Education Code is
repealed.
  SEC. 270.  Section 46392 of the Education Code is amended to read:
   46392.  (a) Whenever the average daily attendance of a school
district or county office of education, during a fiscal year has been
materially decreased during a fiscal year because of any of the
following, the fact shall be established to the satisfaction of the
Superintendent by affidavits of the members of the governing board of
the school district or county office of education, and the county
superintendent of schools:
   (1) Fire.
   (2) Flood.
   (3) Impassable roads.
   (4) An epidemic.
   (5) An earthquake.
   (6) The imminence of a major safety hazard as determined by the
local law enforcement agency.
   (7) A strike involving transportation services to pupils provided
by a nonschool entity.
   (8) An order provided for in Section 41422.
   (b) In the event a state of emergency is declared by the Governor
in a county, a decrease in average daily attendance in the county
below the approximate total average daily attendance that would have
been credited to a school district or county office of education had
the state of emergency not occurred shall be deemed material. The
Superintendent shall determine the length of the period during which
average daily attendance has been reduced by the state of emergency.
This period which is determined by the Superintendent shall not
extend into the next fiscal year following the declaration of the
state of emergency by the Governor, except upon a showing by a school
district or county office of education, to the satisfaction of the
Superintendent, that extending the period into the next fiscal year
is essential to alleviate continued reductions in average daily
attendance attributable to the state of emergency.
   (c) The average daily attendance of the school district or county
office of education for the fiscal year shall be estimated by the
Superintendent in a manner that credits to the school district or
county office of education for determining the apportionments to be
made to the school district or county office of education from the
State School Fund approximately the total average daily attendance
that would have been credited to the school district or county office
of education had the emergency not occurred or had the order not
been issued.
   (d) This section applies to any average daily attendance that
occurs during any part of a school year.
  SEC. 271.  Section 46602 of the Education Code is amended to read:
   46602.  If the county board of education determines that the pupil
should be permitted to attend in the school district in which he or
she desires to attend, the pupil shall be admitted to school in the
school district without delay and the attendance may be counted by
the school district of attendance for local control funding formula
allocations pursuant to Section 42238.02, as implemented by Section
42238.03, state apportionment purposes.
   Written notice of the decision by the county board of education
shall be delivered to the pupil and the parent or guardian, or person
having custody of him or her, and to the governing boards of the
school districts.
  SEC. 272.  Section 46603 of the Education Code is amended to read:
   46603.  For a period not to exceed two school months, the
governing board of a school district may provisionally admit to the
schools of the school district a pupil who resides in another school
district, pending a decision of the two governing boards of the
school districts, or by the county board of education upon appeal,
regarding the interdistrict attendance.
   Regardless of whether the decision on interdistrict attendance is
allowed, the provisional attendance may be counted by the school
district of attendance for local control funding formula allocations
pursuant to Section 42238.02, as implemented by Section 42238.03, and
state apportionment purposes.
  SEC. 273.  Section 46606 of the Education Code is repealed.
  SEC. 274.  Section 46607 of the Education Code is amended to read:
   46607.  (a) Except as provided in subdivision (b), the average
daily attendance for attendance of pupils from another school
district shall be credited to the school district of attendance for
purposes of determining state apportionments and the local control
funding formula allocations pursuant to Section 42238.02, as
implemented by Section 42238.03.
   (b) For a school district that would have a reduction of 25
percent or more in its federal grant pursuant to Public Law 81-874 if
the average daily attendance of pupils residing within the school
district were credited to the school district of attendance, then the
average daily attendance resulting from an interdistrict attendance
agreement shall be credited to the school district of residence and
the school district of residence shall pay a tuition to the school
district of attendance no later than the next August 31, after the
close of the fiscal year pursuant to subdivision (c).
   (c) For attendance in regular day schools and summer schools the
tuition per unit of average daily attendance, if any, shall not
exceed the actual cost per unit of average daily attendance for the
grade level or program less any income, other than tuition, received
by the school district of attendance on account of such attendance.
  SEC. 275.  Section 46610 of the Education Code is amended to read:
   46610.  Notwithstanding any other law, the Fallbrook Union High
School District shall enter into an interdistrict attendance
agreement with the Capistrano Unified School District to allow any
pupil, at the request of his or her parent or guardian, to attend
schools of the Capistrano Unified School District when the pupil
resides in the San Onofre housing area of the Marine Corps Base, Camp
Joseph H. Pendleton. No more than 150 pupils from the Fallbrook
Union High School District may attend school in the Capistrano
Unified School District pursuant to this interdistrict attendance
agreement.
   The Fallbrook Union High School District shall be credited with
the average daily attendance of these pupils for the purpose of
determining state apportionments and local control funding formula
allocations pursuant to Section 42238.02, as implemented by Section
42238.03, and for the purpose of receiving federal grants pursuant to
Public Law 81-874.
   The Fallbrook Union High School District shall pay tuition to the
Capistrano Unified School District for the attendance of these pupils
only in the amount of the state apportionments paid to the Fallbrook
Union High School District for the attendance of these pupils, plus
an amount computed as follows:
   (a) Divide the amount of funds paid pursuant to Section 3 of
Public Law 81-874 (20 U.S.C. 238) to the Fallbrook Union High School
District in the current fiscal year by the average daily attendance
of the school district in the current fiscal year.
   (b) Multiply the amount in subdivision (a) by the average daily
attendance, for the year of attendance for secondary school pupils
attending the schools of the Capistrano Unified School District
pursuant to Section 46610.
  SEC. 276.  Section 47604.33 of the Education Code is amended to
read:
   47604.33.  (a) Each charter school shall annually prepare and
submit the following reports to its chartering authority and the
county superintendent of schools, or only to the county
superintendent of schools if the county board of education is the
chartering authority:
   (1) On or before July 1, a preliminary budget and a local control
and accountability plan adopted pursuant to Section 52065. For a
charter school in its first year of operation, the information
submitted pursuant to subdivision (g) of Section 47605 satisfies this
requirement.
   (2) On or before December 15, an interim financial report. This
report shall reflect changes through October 31.
   (3) On or before March 15, a second interim financial report. This
report shall reflect changes through January 31.
   (4) On or before September 15, a final unaudited report for the
full prior year.
   (b) The chartering authority shall use any financial information
it obtains from the charter school, including, but not limited to,
the reports required by this section, to assess the fiscal condition
of the charter school pursuant to subdivision (d) of Section
47604.32.
   (c) The cost of performing the duties required by this section
shall be funded with supervisorial oversight fees collected pursuant
to Section 47613.
  SEC. 277.  Section 47610 of the Education Code is amended to read:
   47610.  A charter school shall comply with this part and all of
the provisions set forth in its charter, but is otherwise exempt from
the laws governing school districts, except all of the following:
   (a) As specified in Section 47611.
   (b) As specified in Section 41365.
   (c) As specified in Section 52065.
   (d) All laws establishing minimum age for public school
attendance.
   (e) The California Building Standards Code (Part 2 (commencing
with Section 101) of Title 24 of the California Code of Regulations),
as adopted and enforced by the local building enforcement agency
with jurisdiction over the area in which the charter school is
located.
   (f) Charter school facilities shall comply with subdivision (d) by
January 1, 2007.
  SEC. 278.  Section 47612.7 of the Education Code is repealed.
  SEC. 279.  Section 47613 of the Education Code is amended to read:
   47613.  (a) Except as set forth in subdivision (b), a chartering
authority may charge for the actual costs of supervisorial oversight
of a charter school not to exceed 1 percent of the revenue of the
charter school.
   (b) A chartering authority may charge for the actual costs of
supervisorial oversight of a charter school not to exceed 3 percent
of the revenue of the charter school if the charter school is able to
obtain substantially rent free facilities from the chartering
authority.
   (c) A local agency that is given the responsibility for
supervisorial oversight of a charter school, pursuant to paragraph
(1) of subdivision (k) of Section 47605, may charge for the actual
costs of supervisorial oversight, and administrative costs necessary
to secure charter school funding. A charter school that is charged
for costs under this subdivision may not be charged pursuant to
subdivision (a) or (b).
   (d) This section does not prevent the charter school from
separately purchasing administrative or other services from the
chartering authority or any other source.
   (e) For purposes of this section, a chartering authority means a
school district, county board of education, or the state board, that
granted the charter to the charter school.
   (f) For purposes of this section, "revenue of the charter school"
means the local control funding formula allocation pursuant to
Section 42238.02, as implemented by Section 42238.03.
   (g) (1) The California Research Bureau of the California State
Library shall prepare and submit to the Legislature on or before
January 8, 2009, a report on the key elements and actual costs of
charter school oversight. For purposes of the report, the bureau
shall define fiscal and academic oversight and shall include any
financial relationship between a charter school and its chartering
authority that has the effect of furthering the operations of the
charter school and that may provide opportunities to oversee the
charter school. The report, at a minimum, shall address all of the
following issues:
   (A) The range of annual activities that entities providing
supervisorial oversight of charter schools are expected to perform.
   (B) Staff time spent on reviewing charter petitions measured by
the size of school districts and the number of charter petitions
reviewed.
   (C) Staff time spent on oversight responsibilities measured by the
size of school districts and the number of charter schools.
   (D) Best practices for charter school oversight measured by
efficiency and effectiveness. A cost analysis of those best practices
after being measured by efficiency and effectiveness.
   (E) Comparison of school district costs and revenues attributable
to charter school oversight.
   (F) Administrative services provided to a charter school by a
chartering authority, such as human resources, that may be useful in
the oversight of the charter school and chartering authority revenues
attributable to those services.
   (G) Length of time required to review a single charter petition.
   (H) Recommendations for structuring charter school oversight and
accountability in California, including an assessment of whether or
not the associated costs specified in subdivisions (a) and (b) and
subparagraph (F) are adequate to support appropriate supervisorial
oversight.
   (2) In preparing its report, the California Research Bureau shall
consult with an advisory panel to ensure technical accuracy.
  SEC. 280.  Section 47613.1 of the Education Code is amended to
read:
   47613.1.  The Superintendent shall make both of the following
apportionments on behalf of a charter school in a school district in
which all schools have been converted to charter schools pursuant to
Section 47606 :
   (a) For each pupil enrolled in the charter school who is entitled
to special education services, the state and federal funds for
special education services for that pupil that would have been
apportioned for that pupil to the school district to which the
charter petition was submitted.
   (b) Funds for the programs described in Sections 63000 and 64000,
to the extent that any pupil enrolled in the charter school is
eligible to participate.
  SEC. 281.  Section 47613.2 of the Education Code is repealed.
  SEC. 282.  Section 47630 of the Education Code is amended to read:
   47630.  It is the intent of the Legislature that each charter
school be provided with operational funding that is equal to the
total funding that would be available to a similar school district
serving a similar pupil population, except that a charter school may
not be funded as a necessary small school or a necessary small high
school.
  SEC. 283.  Section 47630.5 of the Education Code is repealed.
  SEC. 284.  Section 47631 of the Education Code is amended to read:
   47631.  (a) Article 3 (commencing with Section 47636) shall not
apply to a charter granted pursuant to Section 47605.5.
   (b) Notwithstanding subdivision (a), a pupil attending a
county-sponsored charter school who is eligible to attend that school
solely as a result of parental request pursuant to subdivision (b)
of Section 1981 shall be funded pursuant to the local control funding
formula pursuant to Section 42238.02, as implemented by Section
42238.03.
  SEC. 285.  Section 47632 of the Education Code is amended to read:
   47632.  For purposes of this chapter, the following terms shall be
defined as follows:
   (a) "General-purpose entitlement" means an amount computed by the
local control funding formula pursuant to Section 42238.02, as
implemented by Section 42238.03.
   (b) "General-purpose funding" means those funds that consist of
state aid, local property taxes, and other revenues applied toward a
school district's local control funding formula, pursuant to Section
42238.02, as implemented by Section 42238.03.
   (c) "Categorical aid" means aid that consists of state or
federally funded programs, or both, which are apportioned for
specific purposes set forth in statute or regulation.
   (d) "Educationally disadvantaged pupils" means those pupils who
are eligible for subsidized meals pursuant to Section 49552 or are
identified as English learners pursuant to subdivision (a) of Section
306, or both.
   (e) "Operational funding" means all funding except funding for
capital outlay.
   (f) "School district of a similar type" means a school district
that is serving similar grade levels.
   (g) "Similar pupil population" means similar numbers of pupils by
grade level, with a similar proportion of educationally disadvantaged
pupils.
   (h) "Sponsoring local educational agency" means the following:
   (1) If a charter school is granted by a school district, the
sponsoring local educational agency is the school district.
   (2) If a charter is granted by a county office of education after
having been previously denied by a school district, the sponsoring
local educational agency means the school district that initially
denied the charter petition.
   (3) If a charter is granted by the state board after having been
previously denied by a local educational agency, the sponsoring local
educational agency means the local educational agency designated by
the state board pursuant to paragraph (1) of subdivision (k) of
Section 47605 or if a local educational agency is not designated, the
local educational agency that initially denied the charter petition.

   (4) For pupils attending county-sponsored charter schools who are
eligible to attend those schools solely as a result of parental
request pursuant to subdivision (b) of Section 1981, the sponsoring
local educational agency means the pupils' school district of
residence.
   (5) For pupils attending countywide charter schools pursuant to
Section 47605.6 who reside in a basic aid school district, the
sponsoring local educational agency means the school district of
residence of the pupil. For purposes of this paragraph, "basic aid
school district" means a school district that does not receive an
apportionment of state funds as described in subdivision (o) of
Section 42238.02.
  SEC. 286.  Section 47632.5 of the Education Code is repealed.
  SEC. 287.  Section 47633 of the Education Code is repealed.
  SEC. 288.  Section 47634.1 of the Education Code, as amended by
Section 23 of Chapter 2 of the 4th Extraordinary Session of the
Statutes of 2009, is repealed.
  SEC. 289.  Section 47634.1 of the Education Code, as added by
Section 24 of Chapter 2 of the 4th Extraordinary Session of the
Statutes of 2009, is repealed.
  SEC. 290.  Section 47634.3 of the Education Code is amended to
read:
   47634.3.  For purposes of Sections 42238.02 and 42238.03, the
Superintendent shall compute average daily attendance in each of
grades 1 through 12, respectively, as follows:
   (a) Distribute statewide total ungraded enrollment and average
daily attendance among kindergarten and each of grades 1 through 12,
inclusive, in proportion to the amounts of graded enrollment and
average daily attendance, respectively, in each of these grades.
   (b) Multiply enrollment in each of grades 1 through 12,
respectively, by the ratio of average daily attendance to enrollment
in the applicable grade range: 1 through 3, inclusive, 4 through 6,
inclusive; 7 and 8; and 9 through 12, inclusive.
  SEC. 291.  Section 47634.4 of the Education Code is amended to
read:
   47634.4.  (a) A charter school that elects to receive its funding
directly, pursuant to Section 47651, may apply individually for
federal and state categorical programs, not excluded in this section,
but only to the extent it is eligible for funding and meets the
provisions of the program. For purposes of determining eligibility
for, and allocation of, state or federal categorical aid, a charter
school that applies individually shall be deemed to be a school
district, except as otherwise provided in this chapter.
   (b) A charter school that does not elect to receive its funding
directly, pursuant to Section 47651, may, in cooperation with its
chartering authority, apply for federal and state categorical
programs not specified in this section, but only to the extent it is
eligible for funding and meets the provisions of the program.
   (c) Notwithstanding any other law, for the 2006-07 fiscal year and
each fiscal year thereafter, a charter school may not apply directly
for categorical programs for which services are exclusively or
almost exclusively provided by a county office of education.
   (d) Consistent with subdivision (c), a charter school may not
receive direct funding for any of the following county-administered
categorical programs:
   (1) American Indian Education Centers.
   (2) County Office Fiscal Crisis and Management Assistance Team.
   (3) The K-12 High Speed Network.
   (e) A charter school may apply separately for district-level or
school-level grants associated with any of the categorical programs
specified in subdivision (d).
  SEC. 292.  Section 47635 of the Education Code is amended to read:
   47635.  (a) A sponsoring local educational agency shall annually
transfer to each of its charter schools funding in lieu of property
taxes equal to the lesser of the following two amounts:
   (1) The average amount of property taxes per unit of average daily
attendance, including average daily attendance attributable to
charter schools, received by the local educational agency, multiplied
by the charter school's average daily attendance.
   (2) The statewide average local control funding formula grant
funding pursuant to Section 42238.02, as implemented by Section
42238.03, per unit of average daily attendance received by school
districts, as determined by the department, multiplied by the charter
school's average daily attendance in each of the four corresponding
grade level ranges: kindergarten and grades 1, 2, and 3; grades 4, 5,
and 6; grades 7 and 8; and grades 9 to 12, inclusive.
   (b) The sponsoring local educational agency shall transfer funding
in lieu of property taxes to the charter school in monthly
installments, by no later than the 15th of each month.
   (1) For the months of August to February, inclusive, a charter
school's funding in lieu of property taxes shall be computed based on
the amount of property taxes received by the sponsoring local
educational agency during the preceding fiscal year, as reported to
the Superintendent for purposes of the second principal
apportionment. A sponsoring local educational agency shall transfer
to the charter school the charter school's estimated annual
entitlement to funding in lieu of property taxes as follows:
   (A) Six percent in August.
   (B) Twelve percent in September.
   (C) Eight percent each month in October, November, December,
January, and February.
   (2) For the months of March to June, inclusive, a charter school's
funding in lieu of property taxes shall be computed based on the
amount of property taxes estimated to be received by the sponsoring
local educational agency during the fiscal year, as reported to the
Superintendent for purposes of the first principal apportionment. A
sponsoring local educational agency shall transfer to each of its
charter schools an amount equal to one-sixth of the difference
between the school's estimated annual entitlement to funding in lieu
of property taxes and the amounts provided pursuant to paragraph (1).
An additional one-sixth of this difference shall be included in the
amount transferred in the month of March.
   (3) For the month of July, a charter school's funding in lieu of
property taxes shall be computed based on the amount of property
taxes estimated to be received by the sponsoring local educational
agency during the prior fiscal year, as reported to the
Superintendent for purposes of the second principal apportionment. A
sponsoring local educational agency shall transfer to each of its
charter schools an amount equal to the remaining difference between
the school's estimated annual entitlement to funding in lieu of
property taxes and the amounts provided pursuant to paragraphs (1)
and (2).
   (4) Final adjustments to the amount of funding in lieu of property
taxes allocated to a charter school shall be made in February, in
conjunction with the final reconciliation of annual apportionments to
schools.
   (5) Subdivision (a) and paragraphs (1) to (4), inclusive, do not
apply for pupils who reside in, and are otherwise eligible to attend
a school in, a basic aid school district, but who attend a charter
school in a nonbasic aid school district. With regard to these
pupils, the sponsoring basic aid school district shall transfer to
the charter school an amount of funds equivalent to the local control
funding formula grant pursuant to Section 42238.02, as implemented
by Section 42238.03, earned through average daily attendance by the
charter school for each pupil's attendance, not to exceed the average
property tax share per unit of average daily attendance for pupils
residing and attending in the basic aid school district. The transfer
of funds shall be made in not fewer than two installments at the
request of the charter school, the first occurring not later than
February 1 and the second not later than June 1 of each school year.
Payments shall reflect the average daily attendance certified for the
time periods of the first and second principal apportionments,
respectively. The Superintendent may not apportion any funds for the
attendance of pupils described in this subdivision unless the amount
transferred by the basic aid school district is less than the local
control funding formula grant pursuant to Section 42238.02, as
implemented by Section
   42238.03, earned by the charter school, in which event the
Superintendent shall apportion the difference to the charter school
from state funds.
  SEC. 293.  Section 47636 of the Education Code is amended to read:
   47636.  (a) This chapter shall not prevent a charter school from
negotiating with a local educational agency for a share of
operational funding from sources not otherwise set forth in this
chapter including, but not limited to, all of the following:
   (1) Forest reserve revenues and other operational revenues
received due to harvesting or extraction of minerals or other natural
resources.
   (2) Sales and use taxes, to the extent that the associated
revenues are available for noncapital expenses of public schools.
   (3) Parcel taxes, to the extent that the associated revenues are
available for noncapital expenses of public schools.
   (4) Ad valorem property taxes received by a school district which
exceed its local control funding formula entitlement pursuant to
Section 42238.02, as implemented by Section 42238.03.
   (5) "Basic aid" received by a school district pursuant to Section
6 of Article IX of the California Constitution.
   (b) This section shall become operative July 1, 2006.
  SEC. 294.  Section 47650 of the Education Code is amended to read:
   47650.  A charter school shall be deemed to be a school district
for purposes of determining the manner in which warrants are drawn on
the State School Fund pursuant to Section 14041. For purposes of
Section 14041, a charter school's "total amount certified" means the
state aid portion of the charter school's total local control funding
formula allocation pursuant to Section 42238.02, as implemented by
Section 42238.03.
  SEC. 295.  Section 47651 of the Education Code is amended to read:
   47651.  (a) A charter school may receive the state aid portion of
the charter school's total local control funding formula allocation
pursuant to Section 42238.02, as implemented by Section 42238.03,
directly or through the local educational agency that either grants
its charter or was designated by the state board.
   (1) In the case of a charter school that elects to receive its
funding directly, the warrant shall be drawn in favor of the county
superintendent of schools of the county in which the local
educational agency that approved the charter or was designated by the
state board as the oversight agency pursuant to paragraph (1) of
subdivision (k) of Section 47605 is located, for deposit to the
appropriate funds or accounts of the charter school in the county
treasury. The county superintendent of schools is authorized to
establish appropriate funds or accounts in the county treasury for
each charter school.
   (2) In the case of a charter school that does not elect to receive
its funding directly pursuant to Section 47651, the warrant shall be
drawn in favor of the county superintendent of schools of the county
in which the local educational agency that granted the charter is
located or was designated the oversight agency by the state board
pursuant to paragraph (1) of subdivision (k) of Section 47605, for
deposit to the appropriate funds or accounts of the local educational
agency.
   (3) In the case of a charter school, the charter of which was
granted by the state board, but for which the state board has not
delegated oversight responsibilities pursuant to paragraph (1) of
subdivision (k) of Section 47605, the warrant shall be drawn in favor
of the county superintendent of schools in the county where the
local educational agency is located that initially denied the charter
that was later approved by the state board. The county
superintendent of schools is authorized to establish appropriate
funds or accounts in the county treasury for each charter school.
   (b) On or before June 1 of each year, a charter school electing to
receive its funding directly shall so notify the county
superintendent of schools of the county in which the local
educational agency that granted the charter is located or, in the
case of charters for which the state board has designated an
oversight agency pursuant to paragraph (1) of subdivision (k) of
Section 47605, the county superintendent of schools of the county in
which the designated oversight agency is located. An election to
receive funding directly shall apply to all funding that the charter
school is eligible to receive including, but not limited to, the
local control funding formula allocation pursuant to Section
42238.02, as implemented by Section 42238.03, other state and federal
categorical aid, and lottery funds.
  SEC. 296.  Section 47660 of the Education Code is amended to read:
   47660.  For purposes of computing eligibility for, and
entitlements to, general purpose funding and operational funding for
categorical programs, the enrollment and average daily attendance of
a sponsoring local educational agency shall exclude the enrollment
and attendance of pupils in its charter schools funded pursuant to
this chapter.
  SEC. 297.  Section 47662 of the Education Code is amended to read:
   47662.  For purposes of Section 42238.02, as implemented by
Section 42238.03, the property tax revenues received by a sponsoring
local educational agency pursuant to Chapter 3.5 (commencing with
Section 75) and Chapter 6 (commencing with Section 95) of Part 0.5 of
Division 1 of the Revenue and Taxation Code shall be reduced by the
amount of funding in lieu of property taxes allocated to a charter
school or schools pursuant to Section 47635.
  SEC. 298.  Section 47663 of the Education Code is amended to read:
   47663.  (a) For a pupil of a charter school sponsored by a basic
aid school district who resides in, and is otherwise eligible to
attend, a school district other than a basic aid school district, the
Superintendent shall apportion to the sponsoring school district an
amount equal to 70 percent of the local control funding formula
allocations pursuant to Section 42238.02, as implemented by Section
42238.03, per unit of average daily attendance that would have been
apportioned to the school district that the pupil resides in and
would otherwise have been eligible to attend.
   (b) A school district that loses basic aid status as a result of
transferring property taxes to a charter school or schools pursuant
to Section 47635 for pupils who reside in, and are otherwise eligible
to attend a school district other than the school district that
sponsors the charter school, shall be eligible to receive a pro rata
share of funding provided by subdivision (a), with the proration
factor calculated as the ratio of the following:
   (1) The amount of property taxes that the school district receives
in excess of its total base grant per unit of average daily
attendance calculated pursuant to Section 42238.02, as implemented by
Section 42238.03, before any transfers made pursuant to Section
47635, except for transfers of in lieu of taxes made for pupils who
reside in and would otherwise be eligible to attend a school of the
school district.
   (2) The total amount of in lieu of property taxes transferred
pursuant to Section 47635 to the charter school or schools that it
sponsors, except for transfer of in lieu of taxes made for pupils who
reside in and would otherwise be eligible to attend a school of the
school district.
   (c) In no event shall the amount provided pursuant to this section
exceed the amount of in lieu of property taxes transferred on behalf
of charter school pupils who do not reside in the school district,
less the proportionate amount of base grant state aid provided
pursuant to Section 42238.02, as implemented by Section 42238.03,
that is attributable to the charter school pupils who do not reside
in the school district.
   (d) The Superintendent shall not apportion funds for the
attendance of a pupil in a charter school of a nonbasic aid school
district who resides in, and is otherwise eligible to attend school
in, a basic aid school district unless the pupil is subject to the
exception set forth in paragraph (5) of subdivision (b) of Section
47635.
   (e) For purposes of this section, "basic aid school district"
means a school district that does not receive from the state, for any
fiscal year in which the subdivision is applied, an apportionment of
state funds as described in subdivision (o) of Section 42238.02.
  SEC. 299.  Section 47664 of the Education Code is repealed.
  SEC. 300.  Section 48200.7 of the Education Code is repealed.
  SEC. 301.  Section 48206.3 of the Education Code is amended to
read:
   48206.3.  (a) Except for those pupils receiving individual
instruction provided pursuant to Section 48206.5, a pupil with a
temporary disability which makes attendance in the regular day
classes or alternative education program in which the pupil is
enrolled impossible or inadvisable shall receive individual
instruction provided by the school district in which the pupil is
deemed to reside.
   (b) For purposes of this section and Sections 48206.5, 48207, and
48208, the following terms have the following meanings:
   (1) "Individual instruction" means instruction provided to an
individual pupil in the pupil's home, in a hospital or other
residential health facility, excluding state hospitals, or under
other circumstances prescribed by regulations adopted for that
purpose by the state board.
   (2) "Temporary disability" means a physical, mental, or emotional
disability incurred while a pupil is enrolled in regular day classes
or an alternative education program, and after which the pupil can
reasonably be expected to return to regular day classes or the
alternative education program without special intervention. A
temporary disability shall not include a disability for which a pupil
is identified as an individual with exceptional needs pursuant to
Section 56026.
   (c) (1) For purposes of computing average daily attendance
pursuant to Section 42238.05, each clock hour of teaching time
devoted to individual instruction shall count as one day of
attendance.
   (2) A pupil shall not be credited with more than five days of
attendance per calendar week, or more than the total number of
calendar days that regular classes are maintained by the school
district in a fiscal year.
   (d) Notice of the availability of individualized instruction shall
be given pursuant to Section 48980.
  SEC. 302.  Section 48208 of the Education Code is amended to read:
   48208.  (a) It shall be the primary responsibility of the parent
or guardian of a pupil with a temporary disability to notify the
school district in which the pupil is deemed to reside pursuant to
Section 48207 of the pupil's presence in a qualifying hospital.
   (b) Upon receipt of notification pursuant to subdivision (a), a
school district shall do all of the following:
   (1) Within five working days of receipt of the notification,
determine whether the pupil will be able to receive individualized
instruction, and, if the determination is positive, when the
individualized instruction may commence. Individualized instruction
shall commence no later than five working days after the positive
determination has been rendered.
   (2) Provide the pupil with individualized instruction pursuant to
Section 48206.3. The school district may enter into an agreement with
the school district in which the pupil previously attended regular
day classes or an alternative education program, to have the school
district the pupil previously attended provide the pupil with
individualized instruction pursuant to Section 48206.3.
   (3) Within five working days of the commencement of individualized
instruction, provide the school district in which the pupil
previously attended regular day classes or an alternative education
program with written notice that the pupil shall not be counted by
that school district for purposes of computing average daily
attendance pursuant to Section 42238.05, effective the date on which
individualized instruction commenced.
  SEC. 303.  Section 48310 of the Education Code is amended to read:
   48310.  (a) The average daily attendance for pupils admitted by a
school district of choice pursuant to this article shall be credited
to that school district pursuant to Section 46607. The attendance
report for the school district of choice may include an
identification of the school district of residence.
   (b) Notwithstanding other provisions of law, state aid for
categorical education programs for pupils admitted under this article
shall be apportioned to the school district of choice.
   (c) For a school district of choice that is a basic aid school
district, the apportionment of state funds for average daily
attendance credited pursuant to this section shall be 70 percent of
the school district local control funding formula grant calculated
pursuant to Section 42238.02, as implemented by Section 42238.03,
that would have been apportioned to the school district of residence.
For purposes of this subdivision, the term "basic aid school
district" means a school district that does not receive from the
state, for a fiscal year in which the subdivision is applied, an
apportionment of state funds as described in subdivision (o) of
Section 42238.02.
   (d) The average daily attendance of pupils admitted by a school
district of choice pursuant to this article shall be credited to that
school district for purposes of any determination under Article 2
(commencing with Section 17010) of Chapter 12 of Part 10 of Division
1 of Title 1 that uses an average daily attendance calculation.
  SEC. 304.  Section 48359.5 of the Education Code is amended to
read:
   48359.5.  For a school district of enrollment that is a basic aid
school district, the apportionment of state funds for average daily
attendance credited pursuant to this article shall be 70 percent of
the school district local control funding formula grant that would
have been apportioned to the school district of residence pursuant to
Section 42238.02, as implemented by Section 42238.03. Apportionment
of these funds shall begin in the second consecutive year of
enrollment, and continue annually until the pupil graduates from, or
is no longer enrolled in, the school district of enrollment. For
purposes of this section, "basic aid school district" means a school
district that does not receive an apportionment of state funds as
described in subdivision (o) of Section 42238.02 for a fiscal year in
which this subdivision may apply.
  SEC. 305.  Article 2 (commencing with Section 48640) of Chapter 4
of Part 27 of Division 4 of Title 2 of the Education Code is
repealed.
  SEC. 306.  Section 48660 of the Education Code is amended to read:
   48660.  The governing board of a school district may establish one
or more community day schools for pupils who meet one or more of the
conditions described in subdivision (b) of Section 48662. A
community day school may serve pupils in any of kindergarten and
grades 1 to 6, inclusive, or any of grades 7 to 12, inclusive, or the
same or lesser included range of grades as may be found in an
individual middle or junior high school operated by the school
district. If a school district is organized as a school district that
serves kindergarten and grades 1 to 8, inclusive, but no higher
grades, the governing board of the school district may establish a
community day school for any kindergarten and grades 1 to 8,
inclusive, upon a two-thirds vote of the governing board of the
school district. It is the intent of the Legislature, that to the
extent possible, the governing board of a school district operating a
community day school for any of kindergarten and grades 1 to 8,
inclusive, separate younger pupils from older pupils within that
community day school.
  SEC. 307.  Section 48660.2 of the Education Code is repealed.
  SEC. 308.  Section 48663 of the Education Code is repealed.
  SEC. 309.  Section 48664 of the Education Code is repealed.
  SEC. 310.  Section 48667 of the Education Code is amended to read:
   48667.  For purposes of this article, each county office of
education shall be deemed to be a school district.
  SEC. 311.  Section 49430.5 of the Education Code is amended to
read:
   49430.5.  (a) The reimbursement a school receives for free and
reduced price meals sold or served to pupils in elementary, middle,
or high schools included within a school district, charter school, or
county office of education shall be specified in the annual Budget
Act.
   (b) To qualify for the reimbursement for free and reduced price
meals provided to pupils in elementary, middle, or high schools, a
school shall follow the Enhanced Food Based Meal Pattern, Nutrient
Standard Meal Planning, or Traditional Meal Pattern developed by the
United States Department of Agriculture or the SHAPE Menu Patterns
developed by the state.
   (c) The reimbursement rates specified in the annual Budget Act
shall be adjusted annually for increases in cost of living in the
same manner set forth in paragraph (2) of subdivision (d) of Section
42238.02.
  SEC. 312.  Section 49452.8 of the Education Code is repealed.
  SEC. 313.  Section 49536 of the Education Code is amended to read:
   49536.  (a) The department shall, before July 1 of each year,
prescribe an adjustment in the state meal contribution rates
established pursuant to this section for the forthcoming fiscal year.
The adjustments shall reflect the changes in the cost of operating a
school breakfast and lunch program and shall be made commencing on
July 1 of each year. The adjustment shall be the average of the
separate indices of the "Food Away From Home Index" for Los Angeles
and San Francisco as prepared by the United States Bureau of Labor
Statistics.
   (b) In giving effect to the cost-of-living provisions of this
section, the department shall use the same month for computation of
the percentage change in the cost of living after July 1, 1975. The
same month shall be used annually thereafter. The product of a
percentage increase or decrease in the average index and the per meal
reimbursement disbursement rate shall be adjusted by the amount of a
cost-of-living change currently in effect pursuant to the provisions
of this section.
   (c) Commencing with the 1990-91 fiscal year, the cost-of-living
adjustment shall be equal to the percentage change determined
pursuant to paragraph (2) of subdivision (d) of Section 42238.02.
  SEC. 314.  Section 51056 of the Education Code is repealed.
  SEC. 315.  Article 15 (commencing with Section 51870) of Chapter 5
of Part 28 of Division 4 of Title 2 of the Education Code is
repealed.
  SEC. 316.  Section 52051 of the Education Code is repealed.
  SEC. 317.  Section 52052.2 of the Education Code is repealed.
  SEC. 318.  Section 52052.5 of the Education Code is amended to
read:
   52052.5.  (a) The Superintendent shall establish a broadly
representative and diverse advisory committee to advise the
Superintendent and the state board on all appropriate matters
relative to the creation of the Academic Performance Index. Members
of the advisory committee shall serve without compensation for terms
not to exceed two years. The department shall provide staff to the
advisory panel.
   (b) By July 1, 2005, the advisory committee established pursuant
to this section shall make recommendations to the Superintendent on
the appropriateness and feasibility of a methodology for generating a
measurement of academic performance by using unique pupil
identifiers for pupils in kindergarten and any of grades 1 to 12,
inclusive, and annual academic achievement growth to provide a more
accurate measure of a school's growth over time. If appropriate and
feasible, the Superintendent, with the approval of the state board,
shall thereafter implement this measurement of academic performance.
   (c) By January 1, 2011, the Superintendent and the state board, in
consultation with the advisory committee established pursuant to
subdivision (a), shall make recommendations to the Legislature and
the Governor on each of the following:
   (1) Approaches to increasing the emphasis of science and
mathematics in the calculation of the Academic Performance Index or
any successor measure.
   (2) Methods to incorporate into the Academic Performance Index, or
into other aspects of the state's accountability system, a measure
of the degree to which pupils graduate from high school with the
skills and knowledge necessary to attain entry-level employment in
business or industry, as set forth in subdivision (b) of Section
51228.
   (3) Methods to incorporate into the Academic Performance Index, or
into other aspects of the state's accountability system, a measure
of the degree to which pupils graduate from high school with the
skills and knowledge necessary to succeed in postsecondary education.

   (d) By July 1, 2013, the Superintendent and the state board, in
consultation with the advisory committee established pursuant to
subdivision (a), shall make recommendations to the Legislature and
the Governor on the establishment of a methodology for generating a
measurement of group and individual academic performance growth by
utilizing individual pupil results from a longitudinally valid
achievement assessment system. These recommendations should also
address any interactions between the Academic Performance Index, or
any successor measure, and individual test scores from the state's
tests, as well as implications for the reauthorization of the state's
assessment system. This paragraph shall not be construed to
supersede the provisions of Chapter 273 of the Statutes of 2009.
  SEC. 319.  Article 3 (commencing with Section 52053) of Chapter 6.1
of Part 28 of Division 4 of Title 2 of the Education Code is
repealed.
  SEC. 320.  Article 3.5 (commencing with Section 52055.600) of
Chapter 6.1 of Part 28 of Division 4 of Title 2 of the Education Code
is repealed.
  SEC. 321.  Section 52055.750 of the Education Code is amended to
read:
   52055.750.  (a) A school district or chartering authority that
receives funding pursuant to this article shall agree to do all of
the following for each funded school within its jurisdiction:
   (1) Comply with the program requirements of this article and
require that each funded schoolsite complete and meet the criteria of
an academic review process that includes the elements of the school
assistance and intervention team review process described in Section
52055.51, as that section read on January 1, 2013.
   (2) Ensure that funded schools meet the requirements of this
article.
   (3) Ensure that each school administrator in a funded school is
confirmed to have exemplary qualifications and experience by the end
of the first full year of funding and in each year of funding
thereafter. Those qualifications shall include the ability to support
the success of all pupils by facilitating the development,
articulation, implementation, and stewardship of a vision of learning
that is shared and supported by the school community as well as the
ability to advocate, nurture, and sustain a school culture and
instructional program that is conducive to pupils learning and staff
professional growth. The school district or chartering authority
shall provide for high quality professional development for each
administrator through leadership training, coaching, and mentoring
and shall take all reasonable steps to maintain stable school
leadership in schools that receive funding pursuant to this article.
To the extent appropriate the professional development shall be
similar in quality and rigor to that provided pursuant to the
Administrator Training Program under Article 4.6 (commencing with
Section 44510) of Chapter 3 of Part 25, as that article read on
January 1, 2012.
   (4) Provide all fiscal and evaluation data requested by the
Superintendent for initial approval, annual reviews, and reports.
   (5) Comply with subdivisions (a) to (c), inclusive, of Section
52055.630, as that section read on January 1, 2013, and in the same
manner consult with the exclusive representative of classified
employees.
   (6) Assist eligible schools in developing and carrying out a plan
to implement the provisions of this article to ensure the school
district's plan supports the work of the school.
   (7) Agree to focus on conditions that improve instruction and
achievement in funded schools.
   (8) Express its full understanding that not meeting annual and
final program and academic achievement requirements under this
article will result in the termination of funding.
   (9) Ensure that the funds received on behalf of funded schools are
expended on that school, except that during the first partial year
of funding school districts may use funding under this article for
facilities necessary to meet the class size reduction requirements of
this article, if all funds are spent on funded schools within the
school district.
   (10) Use the uniform process recommended by the Superintendent
pursuant to subdivision (d) of Section 52055.730 to ensure that the
average teaching experience of the classroom teachers in funded
schools is equal to or greater than the average teaching experience
of classroom teachers in the school district as a whole.
   (b) If not expressly prohibited by federal law, a school district
or chartering authority on behalf of a funded school is exempt from
requirements imposed on the use of state categorical or federal funds
in the consolidated application, except those funds related to
economic impact aid, if those funds are identified in the revised
plan of Section 52055.755. Funded schools are exempt from all program
requirements associated with funds in the consolidated application,
except requirements regarding parent advisory committees, schoolsite
councils, and special education. Funds provided under the economic
aid program shall not be used to implement this program.
   (c) Each funded school shall ensure that each teacher in a
subject-specific classroom or teaching covered subjects participates
in professional development that is made available by the school
district or the schoolsite councils, is developed in a collaborative
process with interested parties, and is articulated in an improvement
plan. For purposes of this article, professional development
activities may include collaboration time for teachers to develop new
instructional lessons or analyze pupil data, mentoring projects for
new teachers, or extra support for teachers to improve practice. At a
minimum, appropriate professional development for the site shall be
part of a coherent plan that combines school activities within the
school, including, but not limited to, lesson study or coteaching,
and external learning opportunities that meet all of the following
criteria:
                                                             (1) Are
related to the academic subjects taught.
   (2) Provide time to meet and work with other teachers.
   (3) Support instruction and pupil learning to improve instruction
in a manner that is consistent with academic content standards.
   (4) Include an average of 40 hours per teacher per year.
   (d) At a minimum, professional development in a self-contained
classroom shall include content regarding mathematics, science,
English language arts, reading, and English language development.
Professional development for teachers teaching subject specific
courses shall include the specific subject and English language
development. To the extent appropriate the professional development
shall be similar in quality and rigor to the training provided under
the Mathematics and Reading Professional Development Program in
Article 3 (commencing with Section 99230) of Chapter 5 of Part 65, as
that article read on January 1, 2012.
   (e) On or before the end of the first three years of full funding,
funded schools shall do the following:
   (1) Increase actual pupil attendance, as compared with monthly
enrollment in the school.
   (2) For secondary schools, increase graduation rates as described
in Section 52055.640.
  SEC. 322.  Article 4 (commencing with Section 52056) of Chapter 6.1
of Part 28 of Division 4 of Title 2 of the Education Code is
repealed.
  SEC. 323.  Article 3.8 (commencing with Section 52060) is added to
Chapter 6.1 of Part 28 of Division 4 of Title 2 of the Education
Code, to read:

      Article 3.8.  Local Control and Accountability Plans


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

   (2) Increase the Academic Performance Index for each school and
for each numerically significant pupil subgroup pursuant to Section
52052 and reduce gaps in the Academic Performance Index and other
measures of pupil achievement between numerically significant pupil
subgroups.
   (3) Improve pupil achievement of the content standards adopted by
the state board pursuant to Sections 60605, 60605.2, 60605.3,
60605.8, and 60605.85, at all grade levels, as evidenced by the
results of statewide assessments pursuant to Article 4 (commencing
with Section 60640) of Chapter 5 of Part 33, other statewide
assessments, and appropriate local assessments.
   (4) Increase high school graduation rates, if a school district or
a county superintendent of schools enrolls high school pupils,
increase attendance rates, and reduce dropout rates.
   (5) Increase the percentage of pupils who have successfully
completed each of the following:
   (A) Courses that satisfy the requirements for entrance to the
University of California and the California State University.
   (B) Advanced placement courses.
   (C) Career technical education programs.
   (6) Identify and address needs of pupils, and schools
predominantly serving pupils, who meet any of the following
definitions:
   (A) Pupils who have been classified as an English learner pursuant
to Section 52164.
   (B) Pupils who qualify for the free and reduced-price meal program
pursuant to Section 49552.
   (C) Foster children as defined in Sections 300 and 601 of the
Welfare and Institutions Code.
   (D) Pupils enrolled in a juvenile court school operated by a
county superintendent of schools pursuant to subdivision (a) of
Section 48645.2, if applicable.
   (7) Remedy deficiencies in any school in the school district or
any school operated by the county board of education and improve
school conditions in any of the areas included in paragraphs (5),
(6), and (8) of subdivision (b) of Section 33126. This includes
ensuring access for each pupil to the following:
   (A) Sufficient textbooks and instructional materials.
   (B) Safe, clean, and adequate school facilities.
   (C) Qualified teachers.
   (8) Provide meaningful opportunities for parent involvement,
including, at a minimum, supporting effective schoolsite councils or
other structures at each school and advisory panels to the governing
board of the school district or the county board of education or, if
parents so choose, creating other processes or structures, such as
creating the role of an ombudsman for parents, to address complaints
and other issues raised by parents.
   (b) A local control and accountability plan developed by a county
superintendent of schools and approved by a county board of education
shall also include, in addition to the elements included in
subdivision (a), goals related to addressing countywide needs, and
describe specific actions and strategies to do all of the following:
   (1) Conduct effective oversight of school districts pursuant to
Article 2 (commencing with Section 1240) of Chapter 2 of Part 2 of
Division 1 of Title 1 and Chapter 6 (commencing with Section 42100)
of Part 24 of Division 3 of Title 2.
   (2) Provide support to school districts in the county, including
support related to school district operations, educational
technology, and professional development, and guidance to school
districts related to curriculum and instructional practices.
   (3) Coordinate instruction for expelled pupils pursuant to Section
48926.
   (c) A local control and accountability plan shall include an
analysis of both the following:
   (1) Pupil achievement of those pupils enrolled in schools in a
school district or schools operated by a county superintendent of
schools at the time the plan is adopted by the governing board of the
school district or the county board of education.
   (2) If a governing board of a school district or a county board of
education previously has adopted a local control and accountability
plan, progress made in implementing the goals identified in the plan
in effect immediately before the adoption of a new plan by the
governing board of the school district or the county board of
education.
   (d) For purposes of conducting the analysis required by
subdivision (c), a governing board of a school district or a county
superintendent of schools may consider qualitative information,
including reviews conducted by panels of experts during visits to
schools in the school district or schools operated by the county
office of education.
   (e) Data reported in a local control and accountability plan shall
be consistent with information reported on school accountability
report cards for schools in a school district or schools operated by
a county superintendent of schools.
   (f) A local control and accountability plan shall include
projections of the costs of implementing the specific actions and
strategies included in the plan. Expenditures that reflect these cost
projections shall be included in the budget adopted by the governing
board of the school district pursuant to Section 42127.
   (g) A local control and accountability plan adopted by a governing
board of a school district shall document all of the following:
   (1) For those fiscal years in which it is anticipated that the
school district will receive less funding than is calculated under
the local control funding formula pursuant to Section 42238.02, as
implemented by Section 42238.03, a projection of the total funding
required for the specific actions the school district will take and
strategies that will be used to implement paragraph (6) of
subdivision (a), divided by the average daily attendance of the
pupils for whom any of the definitions included in paragraph (6) of
subdivision (a) apply. This amount of funding shall not be less than
the total expenditures from the sources included in paragraphs (1) to
(3), inclusive, of subdivision (i) of Section 42238.02 during the
2012-13 fiscal year for services for pupils for whom any of the
definitions included in paragraph (6) of subdivision (a) applied
during the 2012-13 fiscal year, divided by the average daily
attendance of these students during the 2012-13 fiscal year.
   (2) For those fiscal years in which it is anticipated that the
school district will receive funding equal to or greater than the
amount calculated under the local control funding formula pursuant to
Section 42238.02, as implemented by Section 42238.03, a projection
of the total funding required for the specific actions the school
district will take and strategies that will be used to implement
paragraph (6) of subdivision (a), divided by the average daily
attendance of the pupils for which any of the definitions included in
paragraph (6) of subdivision (a). This funding shall not be less
than the supplemental grants and concentration grants the governing
board of the school district projects receiving pursuant to
subdivisions (e) and (f) of Section 42238.02, divided by the average
daily attendance of the pupils for which any of the definitions
included in paragraph (6) of subdivision (a) apply.
   (h) A local control and accountability plan adopted by a county
board of education shall document all of the following:
   (1) For those fiscal years in which it is anticipated that the
county office of education will receive less funding than is
calculated under the county local control funding formula pursuant to
Section 2574, a projection of the total funding required for the
specific actions the county superintendent of schools will take and
strategies that will be used to implement paragraph (6) of
subdivision (a), divided by the average daily attendance of the
pupils for whom any of the definitions included in paragraph (6) of
subdivision (a) apply. This amount of funding shall not be less than
the total expenditures from the sources included in paragraphs (1)
and (2) of subdivision (g) of Section 2574 during the 2012-13 fiscal
year for services for pupils for whom any of the definitions included
in paragraph (6) of subdivision (a) applied during the 2012-13
fiscal year, divided by the average daily attendance of these pupils
during the 2012-13 fiscal year.
   (2) For those fiscal years in which it is anticipated that the
county office of education will receive funding equal to or greater
than the amount calculated under the county local control funding
formula pursuant to Section 2574, a projection of the total funding
required for the specific actions the county superintendent of
schools will take and strategies that will be used to implement
paragraph (6) of subdivision (a), divided by the average daily
attendance of the pupils for which any of the definitions included in
paragraph (6) of subdivision (a) apply. This funding shall not be
less than the supplemental grants and concentration grants the county
board of education projects receiving pursuant to subdivisions (b)
and (c) of Section 2574, divided by the average daily attendance of
the pupils for which any of the definitions included in paragraph (6)
of subdivision (a) apply.
   (i) A local control and accountability plan shall account for the
funds provided to charter schools that elect to receive funding
through the school district or the county office of education
pursuant to Section 47651.
   52065.  (a) The governing body of a charter school that elects to
receive its funding directly, pursuant to Section 47651, shall adopt
a local control and accountability plan using a template adopted by
the state board.
   (b) Notwithstanding Section 52064, a local control and
accountability plan adopted by the governing body of a charter school
shall identify specific steps the charter school will take and
strategies that will be used to accomplish the goals identified in
the charter petition granted pursuant to Sections 47605, 47605.5,
47605.6, 47605.8, and 47606.
   (c) A local control and accountability plan adopted by a governing
body of a charter school shall be effective for a period of at least
one year but no longer than five years. If the governing body of the
charter school adopts a plan that would be effective for a period
longer than one year, the governing body of the charter school must
approve an update to the existing plan at least annually.
   (d) On or before July 1 of each fiscal year, a governing body of a
charter school shall take action on a local control and
accountability plan for the subsequent fiscal year, either by
adopting a new local control and accountability plan or by approving
an update to a plan the charter school has previously adopted. The
plan shall be submitted to the charter school's chartering authority
and the county superintendent of schools, or only to the county
superintendent of schools if the county board of education is the
chartering authority, on the same day that the charter school submits
its preliminary budget pursuant to paragraph (1) of subdivision (a)
of Section 47604.33.
   52066.  (a) The state board shall adopt a template for use by
school districts and a separate template for use by county
superintendents of schools that includes the elements identified in
Section 52064.
   (b) The state board shall also adopt a template for use by charter
schools to satisfy the requirements of Section 52065.
   (c) The templates developed by the state board shall allow a
school district, county superintendent of schools, or charter school
to complete a single local control and accountability plan to meet
the requirements of this article and the requirements of the federal
Elementary and Secondary Act related to local educational agency
plans pursuant to Section 1112 of Subpart 1 of Part A of Title I of
Public Law 107-110. The state board shall also take steps to minimize
duplication of effort at the local level to the greatest extent
possible.
   (d) If possible, the template identified in subdivision (a) for
use by county superintendents of schools shall allow a county
superintendent of schools to develop a single local control and
accountability plan that would also satisfy the requirements of
Section 48926.
   (e) The state board shall approve the templates identified in
subdivisions (a) and (b) by January 30, 2014. Revisions to the
templates shall be approved by the state board by January 1 before
the fiscal year during which a template is to be used by a school
district, county superintendent of schools, or charter school.
   (f) The adoption of a template by the state board shall not create
a requirement for a governing board of a school district, a county
board of education, or a governing body of a charter school to submit
a local control and accountability plan to the state board, unless
otherwise required by federal law. The Superintendent shall not
require a local control and accountability plan to be submitted by a
governing board of a school district or the governing body of a
charter school. The state board may adopt a template that would
authorize a school district or a charter school to submit to the
state board only the sections of the local control and accountability
plan required by federal law.
   (g) The state board may adopt emergency regulations for purposes
of implementing this section.
  SEC. 324.  Chapter 6.8 (commencing with Section 52080) of Part 28
of Division 4 of Title 2 of the Education Code is repealed.
  SEC. 325.  Chapter 6.9 (commencing with Section 52100) of Part 28
of Division 4 of Title 2 of the Education Code is repealed.
  SEC. 326.  Chapter 6.10 (commencing with Section 52120) of Part 28
of Division 4 of Title 2 of the Education Code is repealed.
  SEC. 327.  Chapter 7 (commencing with Section 52130) of Part 28 of
Division 4 of Title 2 of the Education Code is repealed.
  SEC. 328.  Chapter 8 (commencing with Section 52200) of Part 28 of
Division 4 of Title 2 of the Education Code is repealed.
  SEC. 329.  Chapter 8.3 (commencing with Section 52240) of Part 28
of Division 4 of Title 2 of the Education Code is repealed.
  SEC. 330.  Chapter 8.5 (commencing with Section 52250) of Part 28
of Division 4 of Title 2 of the Education Code is repealed.
  SEC. 331.  Chapter 8.6 (commencing with Section 52270) of Part 28
of Division 4 of Title 2 of the Education Code is repealed.
  SEC. 332.  Section 52301 of the Education Code is amended to read:
   52301.  (a) The county superintendent of schools of each county
may establish and maintain, or with one or more counties may
establish and maintain, a regional
          occupational center, or regional occupational program, in
the county to provide education and training in career technical
courses. The governing boards of any school districts maintaining
high schools in the county may, with the consent of the county
superintendent of schools, cooperate in the establishment and
maintenance of a regional occupational center or program, except that
if a school district also maintains 500 or more schools, the
governing board of the school district may establish and maintain one
or more regional occupational centers or programs, without those
restrictions. A regional occupational center or program may be
established by two or more school districts maintaining high schools
through the use of the staff and facilities of a community college or
community colleges serving the same geographic area as the school
districts maintaining the high schools, with the consent of the
county superintendent of schools.
   (b) The establishment and maintenance of a regional occupational
center or program, by two or more school districts may be undertaken
pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of
Division 7 of Title 1 of the Government Code. In a regional
occupational center or program, the functions of the county auditor
undertaken pursuant to Article 1 (commencing with Section 6500) of
Chapter 5 of Division 7 of Title 1 of the Government Code shall be
performed by the county superintendent of schools in a county in
which the board of supervisors has transferred educational functions
from the county auditor to the county superintendent of schools
pursuant to Sections 42649, as added by Chapter 533 of the Statutes
of 1977, and 85265.5. If a school district or school districts
establish and maintain a regional occupational center or program,
pursuant to this chapter, the county superintendent of schools may
establish and maintain a separate regional occupational center or
centers or program or programs.
   The governing board of the school district shall retain authority
to decide whether or not to operate the regional occupational center
or program.
  SEC. 333.  Section 52301.3 of the Education Code is repealed.
  SEC. 334.  Section 52302 of the Education Code is amended to read:
   52302.  (a) The governing board of each regional occupational
center or program shall ensure that at least 90 percent of all
state-funded courses offered by the center or program, in
occupational areas in which both the program or center and the
community college offer instruction, are part of occupational course
sequences that target comprehensive skills. Each occupational
sequence shall do all of the following:
   (1) Result in an occupational skill certificate developed in
cooperation with the appropriate employer advisory board created
under Section 52302.2.
   (2) Provide prerequisite courses that are needed to enter
apprenticeship or postsecondary vocational certificate or degree
programs. Where possible, sequenced courses shall be linked to
certificate and degree programs in the region.
   (3) Focus on occupations requiring comprehensive skills leading to
high entry-level wages or the possibility of significant wage
increases after a few years on the job, or both.
   (4) Offer as many courses as possible that have been approved by
the University of California as courses meeting the "A-G" admissions
requirements.
   (b) (1) The governing board of each regional occupational center
or program shall develop a plan for establishing sequences of
courses, and certify to the department, that those sequences have
been developed, as described in subdivision (a). The board shall
consult with the superintendents of the school districts served by
the center or program and presidents of community colleges in the
area during the development of the plan.
   (2) The plan shall be presented at a public hearing by the
governing board of each school district served by the regional
occupational center or program and by the county board of education.
   (3) Community college boards with identified articulated programs
shall also review the plans in a public session.
   (4) In developing the plan, each regional occupational program or
center shall consult with school districts and community college
districts located within the region served by the program or center
and with the relevant occupational advisers and local workforce
investment board to ensure the plan meets the vocational education
needs of high school pupils in the region by providing sequences of
courses that begin with middle or high school introductory courses,
including, but not limited to, occupational skill courses provided by
high schools or regional occupational programs or centers.
   (5) The plan shall maximize the use of local, state, and federal
resources in helping high school pupils enter comprehensive skill
occupations or apprenticeship programs, or continue education in
college, or all of these, after graduating from high school.
   (6) The plan shall include strategies for filling gaps in courses
or other services needed to make the sequences effective in meeting
the needs of pupils in developing skills and attending community
college upon graduation from high school.
   (7) Commencing September 1, 2008, each center or program shall
submit a copy of the plan to the appropriate community college or
colleges in the region and the Superintendent. Every four years after
this date, on or before July 1, each center and program shall submit
an update to the plan to the local community college or colleges.
   (c) As a condition of receiving federal funds provided under the
Carl D. Perkins Vocational and Applied Technology Education Act of
1998 (20 U.S.C. Sec. 2301 et seq.), or a successor of that act, and
to the extent permitted by federal law, school districts, regional
occupational centers or programs, and community college districts
shall do all of the following:
   (1) Develop course sequences that meet the requirements of this
section, as follows:
   (A) School districts, regional occupational centers or programs,
and community college districts shall have adopted an approved plan
as required under this section.
   (B) School districts, regional occupational centers or programs,
and community college districts shall have established course
sequences as required under this section that include at least
one-third of the courses offered by the regional occupational center
or program in occupational areas in which both the program or center
and the community college offer instruction.
   (C) School districts, regional occupational centers or programs,
and community college districts shall have established course
sequences as required under this section that include at least
two-thirds of the courses offered by the regional occupational center
or program in occupational areas in which both the program or center
and the community college offer instruction.
   (2) Provide pupils who are participating in vocational sequences
with information and experiences designed to increase their
postgraduation work and school options, including, but not limited
to, all of the following:
   (A) Information about the admissions requirements of the
University of California and California State University.
   (B) Information about the placement requirements of the local
community college or colleges.
   (C) Information about higher education options related to the
interests of the pupil.
   (D) Encourage visits to local colleges and universities offering
programs that allow pupils to gain additional skills and degrees in
related occupations.
   (E) Information and referrals to employers for internships, summer
employment opportunities, and employment after graduation from high
school.
   (3) School districts, regional occupational centers or programs,
and community college districts that do not develop course sequences
on or before the dates established under this subdivision shall enter
into a corrective action plan with the department and shall meet any
timelines established by the Superintendent.
   (d) (1) The department, with the assistance of the Office of the
Chancellor of the California Community Colleges, shall meet with each
program or center and the community college or colleges in the
region to validate that course sequences meeting the requirements of
this section have been developed. These meetings shall be conducted
using the existing resources of the department and shall be
consistent with the standards developed pursuant to Section 51226.
   (2) The department and the office of the chancellor shall provide
technical assistance to programs or centers and community colleges
that have developed articulated sequences for less than half of the
courses offered by the program or center.
  SEC. 335.  Section 52302.2 of the Education Code is amended to
read:
   52302.2.  (a) The governing board of each regional occupational
center or program shall establish and maintain an employer advisory
board or boards pursuant to guidelines developed by the department.
The advisory board shall do all of the following:
   (1) Assist in the development of skill certificates that identify
the skills and knowledge that pupils completing an occupational
course sequence are expected to acquire upon completing the sequence.
The advisory board also shall recommend the measures and criteria,
and methods to evaluate whether pupils actually acquired the
identified skills and knowledge.
   (2) Review at least once a year whether pupils who are assessed as
having met the requirements for a skill certificate possess the
skills needed for success in employment in that occupation.
   (3) Review the specific occupational sequences offered by the
regional occupational center or program to train pupils for jobs that
are in demand and offer high beginning salaries or the potential for
significant wage increase after several years on the job.
   (4) Assist the regional occupational center or program in
developing internships, paid summer employment, and postgraduation
employment opportunities for pupils participating in the course
sequences.
   (5) Assist the regional occupational center or program in
identifying and creating college scholarships for pupils
participating in the course sequences.
   (b) Employer advisory boards shall be composed of representatives
of trade organizations and businesses or government agencies that
hire a significant number of employees each year and require the
skills and knowledge that are taught in the course sequence or
sequences in that occupational area, as well as at least one
representative from a school district career technical educational
advisory committee. The department shall develop regulations guiding
the establishment of these boards.
   (c) Regional occupational centers or programs operated in a rural
county may designate a local business or industry organization as the
advisory board and consult with the leadership of the local business
or industry organization to determine skill needs in the region and
emerging job market needs. For purposes of this section, the local
business organization may be designated as the advisory board for the
regional occupational center or program.
  SEC. 336.  Section 52302.8 of the Education Code is amended to
read:
   52302.8.  (a) The Legislature hereby finds and declares that
vocational training resources that are provided through regional
occupational centers and programs are an essential component of the
state's secondary school system and the local system of providing
occupational skills training to high school pupils. For this reason,
the Legislature finds and declares that these resources should be
focused primarily on the needs of pupils enrolled in high school.
   (b) Pupils who are CalWORKs, Temporary Assistance Program, or Job
Corps participants shall have priority for service.
   (c) The governing boards of a community college district and a
regional occupational center or program may enter into contractual
agreements under which the center or program provides services to
adult students of the community college district affected by this
section if the agreements conform to state regulations and audit
requirements jointly developed by the Chancellor of the Office of the
California Community Colleges and the State Department of Education,
in consultation with, and subject to approval by, the Department of
Finance.
  SEC. 337.  Section 52302.9 of the Education Code is amended to
read:
   52302.9.  Regional occupational centers and programs may jointly
establish, operate, and share the enrollments and costs of career
technical education instruction with adult education programs offered
by school districts serving the same geographic area. These programs
shall be approved by the county superintendent of schools and shall
be subject to guidelines established by the Superintendent.
  SEC. 338.  Section 52306 of the Education Code is amended to read:
   52306.  (a) Any business, commercial, trade, manufacturing, or
construction activity referred to in subdivision (c) of Section 52305
may be undertaken as part of a regional occupational center or
program provided all the following conditions have been complied
with:
   (1) Any facility or program operated pursuant to this section
shall be only for the education or training of students enrolled in a
regional occupational center or program.
   (2) The facility or program shall be operated on a nonprofit
basis, with all revenues restricted in their use to cover
instructional and operating costs.
   (3) Notwithstanding any other provision of law, the facility or
program initially shall obtain the approval of the appropriate trade
associations concerned with the activity proposed and the approval of
the county labor council in the county in which the facility or
program is located.
   (b) An activity conducted by a regional occupational center or
program, as described in subdivision (a), may be conducted without
the need to apply for or obtain local business licenses or permits,
nor shall the activity be subject to payment of local business taxes.

   Notwithstanding any other law, proceeds from business activities
authorized in this section may, subject to the approval of the
governing board, be deposited in a checking account or accounts by
each regional occupational center or program and disbursed for the
necessary expenses of those business activities. The account shall be
established by the regional occupational center or program and be in
the custody of the principal or other administrative official
designated by the governing board or the county superintendent of
schools, as the case may be. The principal or administrative official
shall be responsible for all expenditures therefrom, subject to
regulations prescribed for this purpose by the governing board or the
county superintendent of schools, as the case may be. An exact
accounting of receipts and disbursements shall be made to the
district or county accounting office within a reasonable period of
time. The governing board or the county superintendent of schools, as
the case may be, shall provide for an audit of these accounts on a
regular basis.
  SEC. 339.  Section 52309 of the Education Code is amended to read:
   52309.  (a) The curriculum initially provided by a regional
occupational center or regional occupational program upon commencing
operation shall be subject to the approval of the department and
shall comply with all requirements and standards set forth in the
State Plan for Career Technical Education. The state board shall
adopt rules and regulations establishing guidelines and criteria for
differentiating between courses appropriate for regional occupational
centers or regional occupational programs and those appropriate for
high schools.
   (b) The Superintendent shall prepare and distribute by April 1,
1977, and thereafter maintain, a detailed handbook for use by the
local educational agencies and regional councils. The handbook shall
contain course approval criteria, job market study criteria,
implementation plans for administrative regulations, and procedures
for securing course and program approvals.
   (c) Notwithstanding subdivision (a), the curriculum provided by a
regional occupational center or program shall not be subject to the
approval of the department as to any curriculum that is certified, by
resolution of the governing body of the regional occupational center
or program, to comply with the course approval criteria set forth in
the handbook described in subdivision (b).
  SEC. 340.  Section 52314 of the Education Code is amended to read:
   52314.  (a) (1) Except as provided in subdivision (b), a pupil
eligible to attend a high school or adult school in a school district
subject to the jurisdiction of a county superintendent of schools
operating a regional occupational center or regional occupational
program, and who resides in a school district which by itself or in
cooperation with other school districts, has not established a
regional occupational center, or regional occupational program, is
eligible to attend a regional occupational center or regional
occupational program maintained by the county superintendent of
schools. A school district which in cooperation with other school
districts maintains a regional occupational center or regional
occupational program, or cooperating school districts, may admit to
the center, or program, any pupil, otherwise eligible, who resides in
the school district or in any of the cooperating school districts. A
school district which by itself maintains a regional occupational
center, or regional occupational program, may admit to the center, or
program, any pupil, otherwise eligible, who resides in the school
district. A pupil, including a person 18 years of age or older or a
person who is not concurrently enrolled in a regular high school
program, shall not be admitted to a regional occupational center, or
regional occupational program, unless the county superintendent of
schools or governing board of the school district or school districts
maintaining the center, or program, as the case may be, determines
that the pupil will benefit therefrom and approves of his or her
admission to the regional occupational center or regional
occupational program.
   (2) Adult students shall not be enrolled in regional occupational
center or program courses during the school day on a high school
campus unless specifically authorized by the policy of the governing
board of the school district.
   (3) A pupil may be admitted on a full-time or part-time basis, as
determined by the county superintendent of schools or governing board
of the school district or districts maintaining the center, or
program, as the case may be.
   (b) A pupil is not eligible to be admitted to a regional
occupational center or program, and his or her attendance shall not
be credited to a regional occupational center or program, until he or
she has attained the age of 16 years, unless the pupil meets one or
more of the following conditions:
   (1) The pupil is enrolled in grade 11 or a higher grade.
   (2) The pupil received a referral and all of the following
conditions are met:
   (A) The pupil is referred to a regional occupational center or
program as part of a comprehensive high school plan that has been
approved by a school counselor or school administrator. The approval
of the pupil's parents or guardian may be sought but is not required.

   (B) The pupil's comprehensive high school plan requires referral
to a regional occupational center or program as part of a sequence of
vocational courses that allows the pupil to learn a comprehensive
skill occupation that culminates in earning a postsecondary
vocational certificate or diploma or its equivalent.
   (C) The pupil is enrolled in a school that maintains any of grades
9 to 12, inclusive.
   (3) The individualized education program of a pupil adopted
pursuant to the requirements of Chapter 4 (commencing with Section
56300) of Part 30 prescribes occupational training for which his or
her enrollment in a regional occupational center or program is deemed
appropriate.
   (4) The pupil is enrolled in grade 10 and has a comprehensive high
school plan that has been approved by a school counselor, and the
admission of that pupil will not result in the denial of admission or
displacement of pupils in grades 11 and 12 that would otherwise
participate in the regional occupational center or program.
  SEC. 341.  Section 52315 of the Education Code is amended to read:
   52315.  (a) A visually impaired, orthopedically impaired, or deaf
person who is not enrolled in a regular high school or community
college program may attend a regional occupational center or regional
occupational program pursuant to the requirements described in
Section 52314.5. Additional special instruction and support services
shall be provided to these persons.
   (b) If the Superintendent determines that there would be a
duplication of effort to these impaired persons if a regional
occupational center or regional occupational program provided
services to them, in that other programs exist that are available to
them, the Superintendent may disapprove of the curriculum to provide
programs to these impaired persons pursuant to Section 52309.
  SEC. 342.  Section 52319 of the Education Code is amended to read:
   52319.  (a) Whenever the establishment and maintenance of a
regional occupational center by two or more school districts has been
undertaken pursuant to an agreement entered into in accordance with
the provisions of Article 1 (commencing with Section 6500) of Chapter
5 of Division 7 of Title 1 of the Government Code, and the terms of
the agreement so authorize, provision may be made for the issuance of
bonds for construction and other capital expenditure for the
regional occupational center. An election shall be called, held, and
conducted in the manner provided in Chapter 3 (commencing with
Section 5300) of Part 4 of Division 1 of Title 1 on the question of
the approval of the issuance of such bonds. If, at the election, the
requisite number of voters cast their ballots in favor of the
issuance of bonds, the bonds shall be issued and sold in the manner
provided by law for the issuance and sale of bonds of a high school
district. The issuance and sale of such bonds shall be deemed to be
an act of the governing board of a high school district.
   (b) The total amount of bonds issued shall not exceed one-half of
1 percent of the taxable property of the area served by the regional
occupational center as shown by the last equalized assessment roll of
the county or counties which the center serves.
   (c) Bonds issued and sold pursuant to this section shall be
retired from proceeds of the tax under the provisions of Section
52317.
  SEC. 343.  Section 52321 of the Education Code is amended to read:
   52321.  (a) A regional occupational center or program may budget
and accumulate an amount necessary to meet the cashflow needs of the
regional occupational center or program known as a general reserve,
and also may budget and accumulate amounts known as the designated
fund balance and as the unappropriated fund balance. Alternatively, a
regional occupational center or program may budget and accumulate
amounts necessary to meet its long-term program needs in a separate
account known as the capital outlay and equipment replacement reserve
account, and this account shall be part of the designated fund
balance. At the end of each school year, the ending balance in the
regional occupational center or program account may be distributed to
any of the general reserve, designated fund balance, and
unappropriated fund balance accounts, provided that the combined
total distributed does not exceed 15 percent of the expenditures for
the current school year.
   (1) The general reserve, the designated fund balance, including
the capital outlay and equipment replacement reserve account, and the
unappropriated fund balance shall be available for appropriation
only after approval by a majority vote of the governing body of the
regional occupational center or program.
   (2) Funds of a regional occupational center or program shall be
distributed to the capital outlay and equipment replacement reserve
account only upon adoption by the governing board of a resolution
specifying the general use to which each appropriation from the
account would be put.
   (b) (1) At the end of each school year, the combined ending
balances of the general reserve, the designated fund balance, except
the capital outlay and equipment replacement reserve account, and the
unappropriated fund balance shall not exceed 15 percent of the
expenditures for the current fiscal year.
   (2) A regional occupational center or program may accumulate, over
a period of two or more school years, an ending balance in the
capital outlay and equipment replacement reserve account of more than
15 percent of the expenditures for the current fiscal year, under
provisions of a resolution of the governing board pursuant to
paragraph (2) of subdivision (a).
   (c) Funds placed in either the general reserve, the designated
fund balance, including the capital outlay and equipment replacement
reserve account, or the unappropriated fund balance shall be expended
only for regional occupational center or program educational
purposes.
  SEC. 344.  Section 52324 of the Education Code is repealed.
  SEC. 345.  Section 52324.5 of the Education Code is repealed.
  SEC. 346.  Section 52327 of the Education Code is amended to read:
   52327.  The governing board of a school district maintaining a
regional occupational center may establish a bookstore on school
district property for the purpose of offering for sale textbooks,
workbooks, supplementary textbooks and workbooks, school supplies,
stationery supplies, confectionary items, and related auxiliary
school supplies and services.
   The governing board of the school district may establish a
bookstore fund into which the proceeds derived from the operation of
a regional occupational center bookstore may be transferred. Moneys
in a bookstore fund shall be deposited or invested in one or more of
the following ways:
   (a) Deposits in a bank or banks, or other institution, whose
accounts are federally insured.
   (b) Investment certificates or withdrawable shares in
state-chartered savings and loan associations and savings accounts of
federal savings and loan associations, provided the associations are
doing business in this state and have their accounts insured by the
Federal Savings and Loan Insurance Corporation.
   (c) Purchase of United States securities pursuant to subdivision
(a) of Section 16430 of the Government Code.

           The governing board of the school district shall designate
an employee or official of the school district to act as trustee for
funds derived from the operation of a regional occupational center
bookstore and to receive those funds in accordance with procedures
established by the board.
   All necessary expenses, including salaries, wages and costs of
capital improvements may be deducted from the revenue of a regional
occupational center bookstore. Net proceeds from the operation of a
regional occupational center bookstore shall be used for the general
benefit of the student body as determined by the governing board of
the school district. Income from a regional occupational center
bookstore shall not be included in the school district funding
allocation. Funds derived from the operation of a regional
occupational center bookstore shall be subject to audit pursuant to
Section 41020.
  SEC. 347.  Section 52327.5 of the Education Code is amended to
read:
   52327.5.  Each governing board establishing or maintaining a
regional occupational center or program pursuant to Section 52310.5
shall meet the requirements set forth in Sections 35145, 41010,
41011, 41015, 41020, 42103, 51040, 51041, and 51050.
  SEC. 348.  Section 52328 of the Education Code is amended to read:
   52328.  A school district, located in whole or in part in a county
contiguous with the Republic of Mexico, or any county superintendent
of schools of a county contiguous with the Republic of Mexico, which
maintains a regional occupational center may enter into a student
exchange agreement with a trade and technical training school located
in the Republic of Mexico. Such student exchange agreement shall
permit Mexican pupils to take all or part of their occupational
training in the regional occupational center and shall permit United
States pupils to take all or part of their occupational training in
the Mexican trade and technical school.
  SEC. 349.  Section 52329 of the Education Code is amended to read:
   52329.  The governing board of a school district located in a
county, or the county superintendent of schools maintaining a
regional occupational program in a county, any of the boundaries of
which are contiguous to the State of Arizona, may enter into an
agreement with a public or private educational agency located in the
State of Arizona to provide to pupils living in the school district
and enrolled in a regional occupational program, career technical or
technical training which, due to geographical isolation, is not
otherwise available to these pupils.
   The program of training at the public or private educational
agency shall conform to the California State Plan for Career
Technical Education.
  SEC. 350.  Section 52334 of the Education Code is amended to read:
   52334.  (a) Indirect costs charged to regional occupational
centers and programs may not exceed the school district or county
office of education, as appropriate, prior year indirect cost rate as
approved by the department.
   (b) The indirect costs charged by county offices of education and
school districts that provide regional occupational centers and
programs services on behalf of the county office of education or
joint powers authority, when added together, may not exceed the
indirect cost rate approved by the department for the county office
of education or the school district, whichever is higher.
  SEC. 351.  Section 52335 of the Education Code is amended to read:
   52335.  For purposes of this article, "ROC/P" means regional
occupational center or program.
  SEC. 352.  Section 52335.1 of the Education Code is repealed.
  SEC. 353.  Section 52335.2 of the Education Code is repealed.
  SEC. 354.  Section 52335.3 of the Education Code is repealed.
  SEC. 355.  Section 52335.4 of the Education Code is repealed.
  SEC. 356.  Section 52335.5 of the Education Code is repealed.
  SEC. 357.  Section 52335.6 of the Education Code is repealed.
  SEC. 358.  Section 52335.12 of the Education Code is amended to
read:
   52335.12.  (a) As a condition of receiving state or federal funds,
the regional occupational center or program shall report annually to
the department the academic and workforce preparation progress of
the secondary pupils enrolled in the center or program. Indicators to
measure that progress shall include, but are not limited to, the
Standardized Testing and Reporting (STAR) Program, pursuant to
Article 4 (commencing with Section 60640) of Chapter 5 of Part 33;
the high school exit examination, pursuant to Chapter 9 (commencing
with 60850) of Part 33; and other indicators of academic and
workforce preparation success, such as reduced dropout rates,
workforce preparation, increased matriculation into postsecondary
educational institutions, and other measures as determined by the
department.
   (b) This section shall become effective only when the longitudinal
data on pupils enrolled in regional occupational centers and
programs can be disaggregated from the California longitudinal pupil
achievement data system database, established pursuant to Chapter 10
(commencing with Section 60900) of Part 33.
  SEC. 359.  Article 1.7 (commencing with Section 52336) of Chapter 9
of Part 28 of Division 4 of Title 2 of the Education Code is
repealed.
  SEC. 360.  Article 2 (commencing with Section 52340) of Chapter 9
of Part 28 of Division 4 of Title 2 of the Education Code is
repealed.
  SEC. 361.  Article 3 (commencing with Section 52350) of Chapter 9
of Part 28 of Division 4 of Title 2 of the Education Code is
repealed.
  SEC. 362.  Article 4 (commencing with Section 52370) of Chapter 9
of Part 28 of Division 4 of Title 2 of the Education Code is
repealed.
  SEC. 363.  Article 4.5 (commencing with Section 52378) of Chapter 9
of Part 28 of Division 4 of Title 2 of the Education Code is
repealed.
  SEC. 364.  Article 5 (commencing with Section 52381) of Chapter 9
of Part 28 of Division 4 of Title 2 of the Education Code is
repealed.
  SEC. 365.  Article 7 (commencing with Section 52450) of Chapter 9
of Part 28 of Division 4 of Title 2 of the Education Code is
repealed.
  SEC. 366.  Article 7.5 (commencing with Section 52460) of Chapter 9
of Part 28 of Division 4 of Title 2 of the Education Code is
repealed.
  SEC. 367.  Article 8 (commencing with Section 52480) of Chapter 9
of Part 28 of Division 4 of Title 2 of the Education Code is
repealed.
  SEC. 368.  Article 9 (commencing with Section 52485) of Chapter 9
of Part 28 of Division 4 of Title 2 of the Education Code is
repealed.
  SEC. 369.  Article 1 (commencing with Section 52500) of Chapter 10
of Part 28 of Division 4 of Title 2 of the Education Code is
repealed.
  SEC. 370.  Article 3 (commencing with Section 52540) of Chapter 10
of Part 28 of Division 4 of Title 2 of the Education Code is
repealed.
  SEC. 371.  Article 4 (commencing with Section 52550) of Chapter 10
of Part 28 of Division 4 of Title 2 of the Education Code is
repealed.
  SEC. 372.  Article 5 (commencing with Section 52570) of Chapter 10
of Part 28 of Division 4 of Title 2 of the Education Code is
repealed.
  SEC. 373.  Article 6 (commencing with Section 52610) of Chapter 10
of Part 28 of Division 4 of Title 2 of the Education Code is
repealed.
  SEC. 374.  Chapter 10.5 (commencing with Section 52651) of Part 28
of Division 4 of Title 2 of the Education Code is repealed.
  SEC. 375.  Article 4 (commencing with Section 52750) of Chapter 11
of Part 28 of Division 4 of Title 2 of the Education Code is
repealed.
  SEC. 376.  Article 1 (commencing with Section 52800) of Chapter 12
of Part 28 of Division 4 of Title 2 of the Education Code is
repealed.
  SEC. 377.  Chapter 13 (commencing with Section 52910) of Part 28 of
Division 4 of Title 2 of the Education Code is repealed.
  SEC. 378.  Chapter 12.5 (commencing with Section 52920) of Part 28
of Division 4 of Title 2 of the Education Code is repealed.
  SEC. 379.  Chapter 17 (commencing with Section 53080) of Part 28 of
Division 4 of Title 2 of the Education Code is repealed.
  SEC. 380.  Chapter 1 (commencing with Section 54000) of Part 29 of
Division 4 of Title 2 of the Education Code is repealed.
  SEC. 381.  Chapter 2 (commencing with Section 54100) of Part 29 of
Division 4 of Title 2 of the Education Code is repealed.
  SEC. 382.  Section 54690 of the Education Code is amended to read:
   54690.  (a) The Legislature hereby finds and declares that the
partnership academies program has proven to be a highly effective
state-school-private sector partnership, providing combined academic
and occupational training to high school pupils who present a high
risk of dropping out of school, and motivating those pupils to stay
in school and graduate. Partnership academies are functioning in high
schools across the state, with occupational education and skills
development successfully offered in California's 15 different
industry sectors, including electronics, computer technology,
finance, agribusiness, alternative energy, environmental design and
construction, graphic arts and printing, international business, and
space. Partnership academies have been honored with national awards
for excellence, and the California partnership academies have been
given high accolades in various textbooks and studies addressing
career technical education programs.
   (b) The Legislature finds the partnership academies are in the
forefront of school efforts to integrate academic and career
technical education and that they can be effective in providing an
integrated learning program and high motivation toward pursuing
skilled occupational fields to pupils at risk of dropping out of
school and to pupils not motivated by the regular educational
curriculum. Further, the Legislature finds the partnership academies
can make a very positive contribution towards meeting the needs of
the state for a highly skilled and educated workforce in the 21st
century.
   (c) Therefore, the Legislature hereby states its intent to expand
the number of partnership academies in this state's high schools,
hereafter to be known as California Partnership Academies; to broaden
the availability of these learning experiences to interested pupils
who do not meet the criteria of "at-risk" pupils; and to encourage
the establishment of academies whose occupational fields address the
needs of developing technologies.
   (d) For purposes of this article, an "at-risk" pupil means a pupil
enrolled in high school who is at risk of dropping out of school, as
indicated by at least three of the following criteria:
   (1) Past record of irregular attendance. For purposes of this
section, "irregular attendance" means absence from school 20 percent
or more of the school year.
   (2) Past record of underachievement in which the pupil is at least
one-third of a year behind the coursework for the respective grade
level, or as demonstrated by credits achieved.
   (3) Past record of low motivation or a disinterest in the regular
school program.
   (4) Disadvantaged economically.
   (5) Scoring below basic or far below basic in mathematics or
English language arts on the standardized test administered pursuant
to Article 4 (commencing with Section 60640) of Chapter 5 of Part 33.

   (6) Maintaining a grade point average of 2.2 or below, or the
equivalent of a C minus.
   (e) Up to one-half of the pupils enrolled at a partnership academy
may be pupils who do not meet the criteria of "at-risk" pupils.
  SEC. 383.  Section 54691 of the Education Code is amended to read:
   54691.  (a) An academy pupil is a pupil who is enrolled in a
partnership academy for the 10th, 11th, or 12th grade, obtains 90
percent of the credits each academic year in courses that are
required for graduation, and does any of the following:
   (1) Successfully completes a school year during the 10th grade
with an attendance record of no less than 80 percent.
   (2) Successfully completes a school year during the 11th grade
with an attendance record of no less than 80 percent.
   (3) Successfully graduates after the 12th grade.
   A pupil enrolled in an academy who successfully completes only one
semester with regard to enrollment, attendance, and credits within
the school year is considered qualified for that semester.
   (b) At the end of each school year, school districts that choose
to operate an academy pursuant to this article are encouraged to
report following information to the Superintendent:
   (1) The operation of each academy in accordance with this article,
including Sections 54692 and 54694.
   (2) The number of qualified pupils enrolled during the just
completed school year, by grade level, for each academy operated by
the school district.
   (3) The amount of matching funds and the dollar value of in-kind
support made available to each academy in accordance with
subdivisions (a) and (b) of Section 54692.
  SEC. 384.  Section 54692 of the Education Code is amended to read:
   54692.  A school district operating a partnership academy is
encouraged to operate an academy as follows:
   (a) Establish each academy as a "school within a school." Academy
teachers shall work as a team in planning, teaching, and
troubleshooting program activities. Classes in the academy program
shall be limited to academy pupils as specified in subdivision (e).
Each participating school district shall establish an advisory
committee consisting of individuals involved in academy operations,
including school district and school administrators, lead teachers,
and representatives of the private sector.
   (b) Provide each academy pupil with the following:
   (1) Instruction in at least three academic subjects each regular
school term that prepares the pupil for a regular high school
diploma, and, where possible and appropriate, to meet the subject
requirements for admission to the California State University and the
University of California. These subjects should contribute to an
understanding of the occupational field of the academy.
   (2) Career technical education courses offered at each grade level
at the academy that are part of an occupational course sequence that
targets comprehensive skills and that does the following:
   (A) Provides career technical education in high skill occupations
of regional and local economic need.
   (B) Focuses on occupations requiring comprehensive skills leading
to higher than entry-level wages, or the possibility of significant
wage increases after a few years on the job, or both.
   (C) Provides a sequence of courses that build upon each other in
knowledge, skill development, and experience, and ends in a capstone
course that includes an internship component.
   (D) Prepares pupils for employment and postsecondary education.
Sequenced courses shall be linked to certificate and degree programs
in the region, where possible.
   (E) Whenever possible, prepares pupils for industry-recognized
certifications.
   (F) Whenever possible and appropriate, offers career technical
education courses that also meet the subject requirements for
admission to the California State University and the University of
California.
   (3) A class schedule that limits the attendance to the classes
required in paragraphs (1) and (2) to pupils of the academy. Whenever
possible, these classes should be block scheduled in a cluster to
provide flexibility to academy teachers. During the 12th grade the
number of academic classes may vary.
   (4) A mentor from the business community during the pupil's 11th
grade year.
   (5) An employer-based internship or work experience that occurs in
the summer following the 11th grade or during 12th grade year.
   (6) Additional motivational activities with private sector
involvement to encourage academic and occupational preparation.
   (c) Provide academy teachers a common planning period to
interchange pupil and educational information. A second planning
period should be provided for the lead teacher in addition to the
normal planning period for full-time teachers and be supported as a
part of the school district's matching funds, whenever practical.
  SEC. 385.  Section 54693 of the Education Code is repealed.
  SEC. 386.  Section 54695 of the Education Code is amended to read:
   54695.  (a) The 9th grade teachers and counselors in schools
maintained by school districts that operate academies pursuant to
this article shall identify pupils eligible to participate in an
academy.
   (b) Teachers and counselors in schools maintained by school
districts that operate academies pursuant to this article, business
representatives, and academy pupils of academies that are operating
in the area shall be encouraged to make presentations to prospective
pupils and their parents.
   (c) The staff of each academy shall select pupils from among those
who have expressed an interest in the academy and whose parents or
guardians have approved the pupil's participation.
  SEC. 387.  Section 54699 of the Education Code is amended to read:
   54699.  (a) School districts may implement a partnership academy,
or maintain an existing academy, that focuses on employment in clean
technology businesses or renewable energy businesses and provides
skilled workforces for the products and services for energy or water
conservation, or both, renewable energy, pollution reduction, or
other technologies that improve the environment in furtherance of
state environmental laws.
   (b) The State Energy Resources Conservation and Development
Commission, in consultation with the Superintendent, shall adopt
guidelines so that programs may reflect current state energy policies
and priorities as well as provide skills and education linked to the
needs of relevant industries.
   (c) Notwithstanding any other law, any guideline adopted pursuant
to this section shall be exempt from the requirements of Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code.
   (d) School districts are encouraged to establish partnership
academies that are consistent with the guidelines developed by the
State Energy Resources Conservation and Development Commission
pursuant to subdivision (b).
   (e) School districts that operate a clean technology partnership
academy are encouraged to work and coordinate with regional
occupational centers and programs for the required career technical
education sequence of courses.
   (f) Commencing in 2014 and not later than January 1 of each year
for which this article is operative, the Superintendent, in
consultation with the State Energy Resources Conservation and
Development Commission, shall provide a report to the Legislature
that includes, but is not limited to, a description of the curriculum
and substance of the programs funded operated pursuant to this
article. The first annual report shall include the identification of
gaps in available curricula relating to clean technology and
renewable energy that are consistent with current state energy policy
and priorities, as well as the proportion of participating pupils
who meet the at-risk criteria enumerated in subdivision (d) of
Section 54690. The report also shall include available pupil
participation data.
  SEC. 388.  Article 7.1 (commencing with Section 54740) of Chapter 9
of Part 29 of Division 4 of Title 2 of the Education Code is
repealed.
  SEC. 389.  Section 54750 of the Education Code is amended to read:
   54750.  (a) School districts are encouraged to establish
partnership academies dedicated to educating pupils in the emerging
environmentally sound technologies. The academies may include, but
are not limited to, technologies that educate pupils in the following
areas:
   (1) Energy audits that include a determination of energy savings.
   (2) Retrofitting and weatherization activities that increase
energy efficiency and conservation.
   (3) Energy-efficient and water-efficient buildings.
   (4) Retrofitting and installing energy-efficient household
appliances, windows, doors, insulation, and lighting.
   (5) Retrofitting and installing water and energy conservation
technologies in existing homes, industrial buildings, and commercial
and public buildings, to improve efficiency, including the use of
energy and water management technologies and control systems.
   (6) The design, construction, manufacture, sale, assembly,
installation, and maintenance of energy-efficient technologies and
renewable energy facilities, or the component parts of renewable
energy technologies.
   (7) Energy-efficient technologies or practices and renewable
energy production, or the component parts of renewable energy plants
and energy distribution, including energy storage; energy
infrastructure, including transmission; transportation, including
logistics; and water and wastewater, including water conservation.
   (8) Performance and low-emission vehicle technology, automotive
computer systems, mass transit fleet conversion, and the servicing
and maintenance of those technologies.
   (9) Pollution prevention and hazardous and solid waste reduction.
   (10) Ocean, soil, or water conservation, or forestation strategies
to mitigate climate change impacts.
   (b) A school district operating green technology partnership
academies is encouraged to provide staff development opportunities to
ensure that teaching staff has the opportunity to be educated in the
use of emerging technologies and to become familiar with new
materials and current practices in the field.
  SEC. 390.  Article 7.7 (commencing with Section 54760) of Chapter 9
of Part 29 of Division 4 of Title 2 of the Education Code is
repealed.
  SEC. 391.  Section 56365 of the Education Code is amended to read:
   56365.  (a) Services provided by nonpublic, nonsectarian schools,
as defined pursuant to Section 56034, and nonpublic, nonsectarian
agencies, as defined pursuant to Section 56035, shall be made
available. These services shall be provided pursuant to Section
56366, and in accordance with Section 300.146 of Title 34 of the Code
of Federal Regulations, under contract with the local educational
agency to provide the appropriate special educational facilities,
special education, or designated instruction and services required by
the individual with exceptional needs if no appropriate public
education program is available.
   (b) Pupils enrolled in nonpublic, nonsectarian schools and
agencies under this section shall be deemed to be enrolled in public
schools for all purposes of Chapter 4 (commencing with Section 41600)
of Part 24 of Division 3 and Section 42238.02. The local educational
agency shall be eligible to receive allowances under Articles 3
(commencing with Section 56836.165) and 4 (commencing with Section
56836.20) of Chapter 7.2 for services that are provided to
individuals with exceptional needs pursuant to the contract.
   (c) If the state participates in the federal program of assistance
for state-operated or state-supported programs for individuals with
exceptional needs (Public Law 89-313, Sec. 6), pupils enrolled in
nonpublic, nonsectarian schools shall be deemed to be enrolled in
state-supported institutions for all purposes of that program and
shall be eligible to receive allowances under Chapter 7.2 (commencing
with Section 56836) for supplemental services provided to
individuals with exceptional needs pursuant to a contract with a
local educational agency. In order to participate in the federal
program, the state shall find that participation will not result in
any additional expenditures from the General Fund.
   (d) The local educational agency shall pay to the nonpublic,
nonsectarian school or agency the full amount of the tuition for
individuals with exceptional needs that are enrolled in programs
provided by the nonpublic, nonsectarian school pursuant to the
contract.
   (e) Before contracting with a nonpublic, nonsectarian school or
agency outside of this state, the local educational agency shall
document its efforts to utilize public schools or to locate an
appropriate nonpublic, nonsectarian school or agency program, or
both, within the state.
   (f) If a local educational agency places a pupil with a nonpublic,
nonsectarian school or agency outside of this state, the pupil's
individualized education program team shall submit a report to the
Superintendent within 15 days of the placement decision. The report
shall include information about the special education and related
services provided by the out-of-state program placement and the costs
of the special education and related services provided, and shall
indicate the efforts of the local educational agency to locate an
appropriate public school or nonpublic, nonsectarian school or
agency, or a combination thereof, within the state. The
Superintendent shall submit a report to the board on all placements
made outside of this state.
   (g) If a local educational agency decides to place a pupil with a
nonpublic, nonsectarian school or agency outside of this state, that
local educational agency shall indicate the anticipated date for the
return of the pupil to a public or nonpublic, nonsectarian school or
agency placement, or a combination thereof, located in the state and
shall document efforts during the previous placement year to return
the pupil.
   (h) In addition to meeting the requirements of Section 56366.1, a
nonpublic, nonsectarian school or agency that operates a program
outside of this state shall be certified or licensed by that state to
provide, respectively, special education and related services and
designated instruction and related services to pupils under the
federal Individuals with Disabilities Education Act (20 U.S.C. Sec.
1400 et seq.).
   (i) A nonpublic, nonsectarian school or agency that is located
outside of this state is eligible for certification pursuant to
Section 56366.1 only if a pupil is enrolled in a program operated by
that school or agency pursuant to the recommendation of an
individualized education program team in California, and if that
pupil's parents or guardians reside in California.
   (j) In accordance with Section 300.147(b) and (c) of Title 34 of
the Code of Federal Regulations, the department shall disseminate
copies of applicable standards to each nonpublic, nonsectarian school
and nonpublic, nonsectarian agency to which a local educational
agency has referred or placed an individual with exceptional needs
and shall provide an opportunity for those nonpublic, nonsectarian
schools and nonpublic, nonsectarian agencies to participate in the
development and revision of state standards that apply to those
entities.
  SEC. 392.  Section 56366.1 of the Education Code is amended to
read:
   56366.1.  (a) A nonpublic, nonsectarian school or agency that
seeks certification shall file an application with the Superintendent
on forms provided by the department and include the following
information                                            on the
application:
   (1) A description of the special education and designated
instruction and services provided to individuals with exceptional
needs if the application is for nonpublic, nonsectarian school
certification.
   (2) A description of the designated instruction and services
provided to individuals with exceptional needs if the application is
for nonpublic, nonsectarian agency certification.
   (3) A list of appropriately qualified staff, a description of the
credential, license, or registration that qualifies each staff member
rendering special education or designated instruction and services
to do so, and copies of their credentials, licenses, or certificates
of registration with the appropriate state or national organization
that has established standards for the service rendered.
   (4) An annual operating budget.
   (5) Affidavits and assurances necessary to comply with all
applicable federal, state, and local laws and regulations that
include criminal record summaries required of all nonpublic,
nonsectarian school or agency personnel having contact with minor
children under Section 44237.
   (b) (1) The applicant shall provide the special education local
plan area in which the applicant is located with the written
notification of its intent to seek certification or renewal of its
certification. The applicant shall submit on a form, developed by the
department, a signed verification by local educational agency
representatives that they have been notified of the intent to certify
or renew certification. The verification shall include a statement
that representatives of the local educational agency for the area in
which the applicant is located have had the opportunity to review the
application at least 60 calendar days prior to submission of an
initial application to the Superintendent, or at least 30 calendar
days prior to submission of a renewal application to the
Superintendent. The signed verification shall provide assurances that
local educational agency representatives have had the opportunity to
provide input on all required components of the application.
   (2) If the applicant has not received a response from the local
educational agency 60 calendar days from the date of the return
receipt for initial applications or 30 calendar days from the date of
the return receipt for renewal applications, the applicant may file
the application with the Superintendent. A copy of the return receipt
shall be included with the application as verification of
notification efforts to the local educational agency.
   (3) The department shall mail renewal application materials to
certified nonpublic, nonsectarian schools and agencies at least 120
days before the date their current certification expires.
   (c) If the applicant operates a facility or program on more than
one site, each site shall be certified.
   (d) If the applicant is part of a larger program or facility on
the same site, the Superintendent shall consider the effect of the
total program on the applicant. A copy of the policies and standards
for the nonpublic, nonsectarian school or agency and the larger
program shall be available to the Superintendent.
   (e) Before certification, the Superintendent shall conduct an
onsite review of the facility and program for which the applicant
seeks certification. The Superintendent may be assisted by
representatives of the special education local plan area in which the
applicant is located and a nonpublic, nonsectarian school or agency
representative who does not have a conflict of interest with the
applicant. The Superintendent shall conduct an additional onsite
review of the facility and program within three years of the
effective date of the certification, unless the Superintendent
conditionally certifies the school or agency or unless the
Superintendent receives a formal complaint against the school or
agency. In the latter two cases, the Superintendent shall conduct an
onsite review at least annually.
   (f) The Superintendent shall make a determination on an
application within 120 days of receipt of the application and shall
certify, conditionally certify, or deny certification to the
applicant. If the Superintendent fails to take one of these actions
within 120 days, the applicant is automatically granted conditional
certification for a period terminating on August 31 of the current
school year. If certification is denied, the Superintendent shall
provide reasons for the denial. The Superintendent may certify the
school or agency for a period of not longer than one year.
   (g) Certification becomes effective on the date the nonpublic,
nonsectarian school or agency meets all the application requirements
and is approved by the Superintendent. Certification may be
retroactive if the school or agency met all the requirements of this
section on the date the retroactive certification is effective.
Certification expires on December 31 of the terminating year.
   (h) The Superintendent annually shall review the certification of
each nonpublic, nonsectarian school and agency. For this purpose, a
certified school or agency annually shall update its application
between August 1 and October 31, unless the board grants a waiver
pursuant to Section 56101. The Superintendent may conduct an onsite
review as part of the annual review.
   (i) (1) The Superintendent shall conduct an investigation of a
nonpublic, nonsectarian school or agency onsite at any time without
prior notice if there is substantial reason to believe that there is
an immediate danger to the health, safety, or welfare of a child. The
Superintendent shall document the concern and submit it to the
nonpublic, nonsectarian school or agency at the time of the onsite
investigation. The Superintendent shall require a written response to
any noncompliance or deficiency found.
   (2) With respect to a nonpublic, nonsectarian school, the
Superintendent shall conduct an investigation, which may include an
unannounced onsite visit, if the Superintendent receives evidence of
a significant deficiency in the quality of educational services
provided, a violation of Section 56366.9, or noncompliance with the
policies expressed by subdivision (b) of Section 1501 of the Health
and Safety Code by the nonpublic, nonsectarian school. The
Superintendent shall document the complaint and the results of the
investigation and shall provide copies of the documentation to the
complainant, the nonpublic, nonsectarian school, and the contracting
local educational agency.
   (3) Violations or noncompliance documented pursuant to paragraph
(1) or (2) shall be reflected in the status of the certification of
the school, at the discretion of the Superintendent, pending an
approved plan of correction by the nonpublic, nonsectarian school.
The department shall retain for a period of 10 years all violations
pertaining to certification of the nonpublic, nonsectarian school or
agency.
   (j) The Superintendent shall monitor the facilities, the
educational environment, and the quality of the educational program,
including the teaching staff, the credentials authorizing service,
the standards-based core curriculum being employed, and the
standard-focused instructional materials used, of an existing
certified nonpublic, nonsectarian school or agency on a three-year
cycle, as follows:
   (1) The nonpublic, nonsectarian school or agency shall complete a
self-review in year one.
   (2) The Superintendent shall conduct an onsite review of the
nonpublic, nonsectarian school or agency in year two.
   (3) The Superintendent shall conduct a followup visit to the
nonpublic, nonsectarian school or agency in year three.
   (k) (1) Notwithstanding any other law, the Superintendent shall
not certify a nonpublic, nonsectarian school or agency that proposes
to initiate or expand services to pupils currently educated in the
immediate prior fiscal year in a juvenile court program, community
school pursuant to Section 56150, or other nonspecial education
program, including independent study or adult school, or both, unless
the nonpublic, nonsectarian school or agency notifies the county
superintendent of schools and the special education local plan area
in which the proposed new or expanded nonpublic, nonsectarian school
or agency is located of its intent to seek certification.
   (2) The notification shall occur no later than the December 1
before the new fiscal year in which the proposed or expanding school
or agency intends to initiate services. The notice shall include the
following:
   (A) The specific date upon which the proposed nonpublic,
nonsectarian school or agency is to be established.
   (B) The location of the proposed program or facility.
   (C) The number of pupils proposed for services, the number of
pupils currently served in the juvenile court, community school, or
other nonspecial education program, the current school services
including special education and related services provided for these
pupils, and the specific program of special education and related
services to be provided under the proposed program.
   (D) The reason for the proposed change in services.
   (E) The number of staff who will provide special education and
designated instruction and services and hold a current valid
California credential or license in the service rendered.
   (3) In addition to the requirements in subdivisions (a) to (f),
inclusive, the Superintendent shall require and consider the
following in determining whether to certify a nonpublic, nonsectarian
school or agency as described in this subdivision:
   (A) A complete statement of the information required as part of
the notice under paragraph (1).
   (B) Documentation of the steps taken in preparation for the
conversion to a nonpublic, nonsectarian school or agency, including
information related to changes in the population to be served and the
services to be provided pursuant to each pupil's individualized
education program.
   (4) Notwithstanding any other law, the certification becomes
effective no earlier than July 1 if the school or agency provided the
notification required pursuant to paragraph (1).
   (  l  ) (1) Notwithstanding any other law, the
Superintendent shall not certify or renew the certification of a
nonpublic, nonsectarian school or agency, unless all of the following
conditions are met:
   (A) The entity operating the nonpublic, nonsectarian school or
agency maintains separate financial records for each entity that it
operates, with each nonpublic, nonsectarian school or agency
identified separately from any licensed children's institution that
it operates.
   (B) The entity submits an annual budget that identifies the
projected costs and revenues for each entity and demonstrates that
the rates to be charged are reasonable to support the operation of
the entity.
   (C) The entity submits an entitywide annual audit that identifies
its costs and revenues, by entity, in accordance with generally
accepted accounting and auditing principles. The audit shall clearly
document the amount of moneys received and expended on the education
program provided by the nonpublic, nonsectarian school.
   (D) The relationship between various entities operated by the same
entity are documented, defining the responsibilities of the
entities. The documentation shall clearly identify the services to be
provided as part of each program, for example, the residential or
medical program, the mental health program, or the educational
program. The entity shall not seek funding from a public agency for a
service, either separately or as part of a package of services, if
the service is funded by another public agency, either separately or
as part of a package of services.
   (2) For purposes of this section, "licensed children's institution"
has the same meaning as it is defined by Section 56155.5.
   (m) The school or agency shall be charged a reasonable fee for
certification. The Superintendent may adjust the fee annually
commensurate with the statewide average percentage inflation
adjustment computed for local control funding formula allocations
pursuant to Section 42238.02, as implemented by Section 42238.03, of
unified school districts with greater than 1,500 units of average
daily attendance if the percentage increase is reflected in the
school district local control funding formula allocation pursuant to
Section 42238.02, as implemented by Section 42238.03, for inflation
purposes. For purposes of this section, the base fee shall be the
following:
(1) 1-5 pupils ...........................    $ 300
(2) 6-10 pupils ..........................      500
(3) 11-24 pupils .........................    1,000
(4) 25-75 pupils .........................    1,500
(5) 76 pupils and over ...................    2,000


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

      Article 7.  Sufficiency of Instructional Materials


  SEC. 399.  Section 60117 of the Education Code is repealed.
  SEC. 400.  Section 60118 of the Education Code is repealed.
  SEC. 401.  Section 60119 of the Education Code is amended to read:
   60119.  (a) The governing board of a school district shall take
the following actions:
   (1) (A) The governing board of a school district shall hold a
public hearing or hearings at which the governing board of the school
district shall encourage participation by parents, teachers, members
of the community interested in the affairs of the school district,
and bargaining unit leaders, and shall make a determination, through
a resolution, as to whether each pupil in each school in the school
district has sufficient textbooks or instructional materials, or
both, that are aligned to the content standards adopted pursuant to
Section 60605 or 60605.8 in each of the following subjects, as
appropriate, that are consistent with the content and cycles of the
curriculum framework adopted by the state board:
   (i) Mathematics.
   (ii) Science.
   (iii) History-social science.
   (iv) English language arts, including the English language
development component of an adopted program.
   (B) The public hearing shall take place on or before the end of
the eighth week from the first day pupils attend school for that
year. A school district that operates schools on a multitrack,
year-round calendar shall hold the hearing on or before the end of
the eighth week from the first day pupils attend school for that year
on any tracks that begin a school year in August or September. For
purposes of the 2004-05 fiscal year only, the governing board of a
school district shall make a diligent effort to hold a public hearing
pursuant to this section on or before December 1, 2004.
   (C) As part of the hearing required pursuant to this section, the
governing board of a school district also shall make a written
determination as to whether each pupil enrolled in a foreign language
or health course has sufficient textbooks or instructional materials
that are consistent with the content and cycles of the curriculum
frameworks adopted by the state board for those subjects. The
governing board of a school district also shall determine the
availability of laboratory science equipment as applicable to science
laboratory courses offered in grades 9 to 12, inclusive. The
provision of the textbooks, instructional materials, or science
equipment specified in this subparagraph is not a condition of
receipt of funds provided by this subdivision.
   (2) (A) If the governing board of a school district determines
that there are insufficient textbooks or instructional materials, or
both, the governing board of the school district shall provide
information to classroom teachers and to the public setting forth, in
the resolution, for each school in which an insufficiency exists,
the percentage of pupils who lack sufficient standards-aligned
textbooks or instructional materials in each subject area and the
reasons that each pupil does not have sufficient textbooks or
instructional materials, or both, and take any action, except an
action that would require reimbursement by the Commission on State
Mandates, to ensure that each pupil has sufficient textbooks or
instructional materials, or both, within two months of the beginning
of the school year in which the determination is made.
   (B) In carrying out subparagraph (A), the governing board of a
school district may use moneys in any of the following funds:
   (i) Any funds available for textbooks or instructional materials,
or both, including any funds received pursuant to Section 8880.5 of
the Government Code.
   (ii) Any other funds available to the school district for
textbooks or instructional materials, or both.
   (b) The governing board of a school district shall provide 10 days'
notice of the public hearing or hearings set forth in subdivision
(a). The notice shall contain the time, place, and purpose of the
hearing and shall be posted in three public places in the school
district. The hearing shall be held at a time that will encourage the
attendance of teachers and parents and guardians of pupils who
attend the schools in the school district and shall not take place
during or immediately following school hours.
   (c) (1) For purposes of this section, "sufficient textbooks or
instructional materials" means that each pupil, including English
learners, has a standards-aligned textbook or instructional
materials, or both, to use in class and to take home. This paragraph
does not require two sets of textbooks or instructional materials for
each pupil. The materials may be in a digital format as long as each
pupil, at a minimum, has and can access the same materials in the
class and to take home, as all other pupils in the same class or
course in the school district and has the ability to use and access
them at home.
   (2) Sufficient textbooks or instructional materials as defined in
paragraph (1) do not include photocopied sheets from only a portion
of a textbook or instructional materials copied to address a
shortage.
   (d) The governing board of a school district that receives funds
for instructional materials from any state source is subject to the
requirements of this section.
   (e) For the purpose of transitioning to instructional materials
that are aligned with the common core academic content standards, it
is the intent of the Legislature that textbooks, instructional
materials, and supplemental instructional materials be deemed to be
aligned with the content standards pursuant to subdivisions (a) and
(c), and be deemed consistent with the content and cycles of the
curriculum framework adopted by the state board pursuant to
subdivision (a) if the textbooks, instructional materials,
supplemental instructional materials, or a combination of any such
materials are aligned to the content standards adopted pursuant to
Section 60605 or 60605.8.
  SEC. 402.  Article 3 (commencing with Section 60240) of Chapter 2
of Part 33 of Division 4 of Title 2 of the Education Code is
repealed.
  SEC. 403.  Article 7 (commencing with Section 60350) of Chapter 2
of Part 33 of Division 4 of Title 2 of the Education Code is
repealed.
  SEC. 404.  Chapter 4 (commencing with Section 60500) of Part 33 of
Division 4 of Title 2 of the Education Code is repealed.
  SEC. 405.  Section 60851 of the Education Code is amended to read:
   60851.  (a) Commencing with the 2003-04 school year and each
school year thereafter, each pupil completing grade 12 shall
successfully pass the high school exit examination as a condition of
receiving a diploma of graduation or a condition of graduation from
high school. Funding for the administration of the high school exit
examination shall be provided for in the annual Budget Act. The
Superintendent shall apportion funds appropriated for this purpose to
enable school districts to meet the requirements of this subdivision
and subdivisions (b), (c), and (d). The state board shall establish
the amount of                                               funding
to be apportioned per test administered, based on a review of the
cost per test.
   (b) Each pupil shall take the high school exit examination in
grade 10 beginning in the 2001-02 school year and may take the
examination during each subsequent administration, until each section
of the examination has been passed.
   (c) (1) At the parent or guardian's request, a school principal
shall submit a request for a waiver of the requirement to
successfully pass the high school exit examination to the governing
board of the school district for a pupil with a disability who has
taken the high school exit examination with modifications that alter
what the test measures and has received the equivalent of a passing
score on one or both subject matter parts of the high school exit
examination. A governing board of a school district may waive the
requirement to successfully pass one or both subject matter parts of
the high school exit examination for a pupil with a disability if the
principal certifies to the governing board of the school district
that the pupil has all of the following:
   (A) An individualized education program adopted pursuant to the
federal Individuals with Disabilities Education Act (20 U.S.C. Sec.
1400 et seq.) or a plan adopted pursuant to Section 504 of the
federal Rehabilitation Act of 1973 (29 U.S.C. Sec. 794(a)) in place
that requires the accommodations or modifications to be provided to
the pupil when taking the high school exit examination.
   (B) Sufficient high school level coursework either satisfactorily
completed or in progress in a high school level curriculum sufficient
to have attained the skills and knowledge otherwise needed to pass
the high school exit examination.
   (C) An individual score report for the pupil showing that the
pupil has received the equivalent of a passing score on the high
school exit examination while using a modification that fundamentally
alters what the high school exit examination measures as determined
by the state board.
   (2) A school district shall report to the state board, in a manner
and by a date determined by the Superintendent, the number and
characteristics of waivers reviewed, granted, and denied under this
subdivision and any additional information determined to be in
furtherance of this subdivision.
   (d) The high school exit examination shall be offered in each
public school and state special school that provides instruction in
grades 10, 11, or 12, on the dates designated by the Superintendent.
An exit examination may not be administered on any date other than
those designated by the Superintendent as examination days or makeup
days.
   (e) The results of the high school exit examination shall be
provided to each pupil taking the examination within eight weeks of
the examination administration and in time for the pupil to take any
section of the examination not passed at the next administration. A
pupil shall take again only those parts of the examination he or she
has not previously passed and may not retake any portion of the exit
examination that he or she has previously passed.
   (f) Supplemental instruction shall be provided to any pupil who
does not demonstrate sufficient progress toward passing the high
school exit examination. To the extent that school districts have
aligned their curriculum with the state academic content standards
adopted by the state board, the curriculum for supplemental
instruction shall reflect those standards and shall be designed to
assist the pupils to succeed on the high school exit examination.
This chapter does not require the provision of supplemental services
using resources that are not regularly available to a school or
school district, including summer school instruction. In no event
shall any action taken as a result of this subdivision cause or
require reimbursement by the Commission on State Mandates. Sufficient
progress shall be determined on the basis of either of the
following:
   (1) The results of the assessments administered pursuant to
Article 4 (commencing with Section 60640) of Chapter 5 and the
minimum levels of proficiency recommended by the state board pursuant
to Section 60648.
   (2) The grades of the pupil and other indicators of academic
achievement designated by the school district.
  SEC. 406.  Section 62002 of the Education Code is repealed.
  SEC. 407.  Section 62002.5 of the Education Code is repealed.
  SEC. 408.  Section 62003 of the Education Code is repealed.
  SEC. 409.  Section 62004 of the Education Code is repealed.
  SEC. 410.  Section 62005 of the Education Code is repealed.
  SEC. 411.  Section 62005.5 of the Education Code is repealed.
  SEC. 412.  Section 63000 of the Education Code is amended to read:
   63000.  The provisions of this chapter shall apply to funds
received for child care and development programs pursuant to Chapter
2 (commencing with Section 8200) of Part 6 of Division 1 of Title 1.
  SEC. 413.  Section 63001 of the Education Code is amended to read:
   63001.  A school district that, in a fiscal year, receives an
apportionment for a program specified in Section 63000 shall use no
less than 85 percent of that apportionment at schoolsites for direct
services to pupils.
  SEC. 414.  Section 64000 of the Education Code is amended to read:
   64000.  (a) The provisions of this part shall apply to
applications for funds under the following categorical programs:
   (1) Programs providing assistance to disadvantaged pupils under
Section 6312 of Title 20 of the United States Code, and programs
providing assistance for neglected or delinquent pupils who are at
risk of dropping out of school, as funded by Section 6421 of Title 20
of the United States Code.
   (2) Professional development programs established pursuant to
Section 6601 of Title 20 of the United States Code.
   (3) Programs for tobacco use prevention funded by Section 7115 of
Title 20 of the United States Code.
   (4) Safe and Drug Free Schools and Communities programs
established pursuant to Section 7113 of Title 20 of the United States
Code.
   (b) A school district that elects to apply for any of these
federal funds may submit to the department for approval, by the state
board, a single consolidated application for approval or continuance
of those federal categorical programs subject to this part.
  SEC. 415.  Section 7906 of the Government Code is amended to read:
   7906.  For school districts:
   (a) "ADA" means a school district's second principal apportionment
units of average daily attendance as determined pursuant to Section
42238.05 of the Education Code, including average daily attendance in
summer school, regional occupational centers and programs, and
apprenticeship programs, and excluding average daily attendance in
adult education programs. All other units of average daily attendance
including, but not limited to, special day classes for special
education pupils, shall be included.
   (1) For purposes of this subdivision, the average daily attendance
of apprenticeship programs shall be determined pursuant to Section
79149.1 of the Education Code.
   (2) For the 2008-09 fiscal year and each fiscal year thereafter,
the average daily attendance of public school districts, including
county superintendents of schools, serving kindergarten and grades 1
to 12, inclusive, or any part thereof, shall include the same amount
of average daily attendance for classes for supplemental instruction
and regional occupational centers and programs that was used for
purposes of this section for the 2007-08 fiscal year.
   (b) "Foundation program level" means:
   (1) For the 1978-79 fiscal year, one thousand two hundred
forty-one dollars ($1,241) for elementary school districts, one
thousand three hundred twenty-two dollars ($1,322) for unified school
districts, and one thousand four hundred twenty-seven dollars
($1,427) for high school districts.
   (2) For the 1979-80 fiscal year to the 1986-87 fiscal year,
inclusive, the levels specified in paragraph (1) increased by the
lesser of the change in cost of living or California per capita
personal income for the preceding calendar year.
   (3) For the 1986-87 fiscal year, the levels specified in paragraph
(2) increased by one hundred eighty dollars ($180) for elementary
school districts, one hundred ninety-one dollars ($191) for unified
school districts, and two hundred seven dollars ($207) for high
school districts.
   (4) For the 1987-88 fiscal year, the levels specified in paragraph
(3) increased by the lesser of the change in cost of living or
California per capita personal income for the preceding calendar
year.
   (5) For the 1988-89 fiscal year and each fiscal year thereafter,
the foundation program level shall be the appropriations limit of the
school district for the current fiscal year, plus amounts paid for
any nonreimbursed court or federal mandates imposed on or after
November 6, 1979, less the sum of the following:
   (A) Interest earned on the proceeds of taxes during the current
fiscal year.
   (B) The 50 percent of miscellaneous funds received during the
current fiscal year that are from the proceeds of taxes.
   (C) Locally voted taxes received during the current fiscal year,
such as parcel taxes or square foot taxes, unless for voter-approved
bonded debt.
   (D) Any other local proceeds of taxes received during the current
fiscal year, other than local taxes which count towards the revenue
limit, such as excess bond revenues transferred to a district's
general fund pursuant to Section 15234 of the Education Code.
   (c) "Proceeds of taxes" shall be deemed to include subventions
received from the state only if those subventions are for one of the
following two purposes:
   (1) Basic aid subventions of one hundred twenty dollars ($120) per
ADA.
   (2) Additional apportionments that, when added to the district's
local revenues as defined in Section 42238 of the Education Code, do
not exceed the foundation program level for that district. In no case
shall subventions received from the state for reimbursement of state
mandates in accordance with the provisions of Section 6 of Article
XIII B of the California Constitution or of Section 17561 or for
reimbursement of court or federal mandates imposed on or after
November 6, 1979, be considered "proceeds of taxes" for purposes of
this section.
   (d) Proceeds of taxes for a fiscal year shall not include any
proceeds of taxes within the district's beginning balance or reserve,
unless those funds were not appropriated in a prior fiscal year.
Funds that were appropriated to a reserve or other fund referenced in
Section 5 of Article XIII B of the California Constitution shall be
deemed to be appropriated for the purpose of this paragraph.
   (e) The remainder of the state apportionments, including special
purpose apportionments and categorical aid subventions shall not be
considered proceeds of taxes for a school district.
   (f) Each school district shall report to the Superintendent of
Public Instruction and to the Director of Finance at least annually
its appropriations limit, its appropriations subject to limitation,
the amount of its state aid apportionments and subventions included
within the proceeds of taxes of the school district, and amounts
excluded from its appropriations limit, at a time and in a manner
prescribed by the Superintendent of Public Instruction and approved
by the Director of Finance.
   (g) For the 1988-89 fiscal year and each fiscal year thereafter,
nothing in paragraph (2) of subdivision (c) shall be so construed as
to require that the amount determined pursuant to subdivision (b) be
multiplied by the amount determined pursuant to subdivision (a) for
purposes of determining the amount of state aid included in school
district "proceeds of taxes" for purposes of this section.
  SEC. 416.  Section 50286 of the Government Code is amended to read:

   50286.  (a) If a contract is canceled under Section 50284, the
owner shall pay a cancellation fee equal to 121/2 percent of the
current fair market value of the property, as determined by the
county assessor as though the property were free of the contractual
restriction.
   (b) The cancellation fee shall be paid to the county auditor, at
the time and in the manner that the county auditor shall prescribe,
and shall be allocated by the county auditor to each jurisdiction in
the tax rate area in which the property is located in the same manner
as the auditor allocates the annual tax increment in that tax rate
area in that fiscal year.
   (c) Notwithstanding any other law, revenue received by a school
district pursuant to this section shall be considered property tax
revenue for purposes of Section 42238.02 of the Education Code, as
implemented pursuant to Section 42238.03 of the Education Code, and
revenue received by a county superintendent of schools pursuant to
this section shall be considered property tax revenue for purposes of
Article 4 (commencing with Section 2570) of Chapter 12 of Part 2 of
Division 1 of Title 1 of the Education Code.
  SEC. 417.  Section 33492.78 of the Health and Safety Code is
amended to read:
   33492.78.  (a) Section 33607.5 shall not apply to an agency
created pursuant to this article. For purposes of Sections 42238.02,
84750.5, and 84751 of the Education Code, funds allocated pursuant to
this section shall be treated as if they were allocated pursuant to
Section 33607.5.
   (1) This section shall apply to each redevelopment project area
created pursuant to a redevelopment plan that contains the provisions
required by Section 33670 and is created pursuant to this article.
All the amounts calculated pursuant to this section shall be
calculated after the amount required to be deposited in the Low and
Moderate Income Housing Fund pursuant to Sections 33334.2, 33334.3,
and 33334.6, as modified by Section 33492.76, has been deducted from
the total amount of tax-increment funds received by the agency in the
applicable fiscal year.
   (2) The payments made pursuant to this section shall be in
addition to any amounts the school district or districts and
community college district or districts receive pursuant to
subdivision (a) of Section 33670. The agency shall reduce its
payments pursuant to this section to an affected school or community
college district by any amount the agency has paid, directly or
indirectly, pursuant to Section 33445, 33445.5, or 33446, or any
provision of law other than this section for, or in connection with,
a public facility owned or leased by that affected school or
community college district.
   (3) (A) Of the total amount paid each year pursuant to this
section to school districts, 43.9 percent shall be considered to be
property taxes for the purposes of paragraph (1) of subdivision (i)
of Section 42238.02 of the Education Code, and 56.1 percent shall not
be considered to be property taxes for the purposes of that section,
and shall be available to be used for educational facilities.
   (B) Of the total amount paid each year pursuant to this section to
community college districts, 47.5 percent shall be considered to be
property taxes for the purposes of Section 84750.5 of the Education
Code, and 52.5 percent shall not be considered to be property taxes
for the purposes of that section, and shall be available to be used
for educational facilities.
   (C) Of the total amount paid each year pursuant to this section to
county offices of education, 19 percent shall be considered to be
property taxes for the purposes of paragraph (1) of subdivision (g)
of Section 2574 of the Education Code, and 81 percent shall not be
considered to be property taxes for the purposes of that section, and
shall be available to be used for educational facilities.
   (D) Of the total amount paid each year pursuant to this section to
special education, 19 percent shall be considered to be property
taxes for the purposes of paragraph (1) of subdivision (j) of Section
42238.02 of the Education Code, and 81 percent shall not be
considered to be property taxes for the purposes of that section, and
shall be available to be used for educational facilities.
   (4) Local education agencies that use funds received pursuant to
this section for educational facilities shall spend these funds at
schools that are any one of the following:
   (A) Within the project area.
   (B) Attended by students from the project area.
   (C) Attended by students generated by projects that are assisted
directly by the redevelopment agency.
   (D) Determined by a local education agency to be of benefit to the
project area.
   (b) Commencing with the first fiscal year in which the agency
receives tax increments, and continuing through the last fiscal year
in which the agency receives tax increments, a redevelopment agency
created pursuant to this article shall pay to each affected school
and community college district an amount equal to the product of 25
percent times the percentage share of total property taxes collected
that are allocated to each affected school or community college
district, including any amount allocated to each district pursuant to
Sections 97.03 and 97.035 of the Revenue and Taxation Code times the
total of the tax increments received by the agency after the amount
required to be deposited in the Low and Moderate Income Housing Fund
has been deducted.
   (c) Commencing with the 11th fiscal year in which the agency
receives tax increments and continuing through the last fiscal year
in which the agency receives tax increments, a redevelopment agency
created pursuant to this article shall pay to each affected school
and community college district, in addition to the amounts paid
pursuant to subdivision (b), an amount equal to the product of 21
percent times the percentage share of total property taxes collected
that are allocated to each affected school or community college
district, including any amount allocated to each district pursuant to
Sections 97.03 and 97.035 of the Revenue and Taxation Code times the
total of the first adjusted tax increments received by the agency
after the amount required to be deposited in the Low and Moderate
Income Housing Fund has been deducted. The first adjusted tax
increments received by the agency shall be calculated by applying the
tax rate against the amount of assessed value by which the current
year assessed value exceeds the first adjusted base year assessed
value. The first adjusted base year assessed value is the assessed
value of the project area in the 10th fiscal year in which the agency
receives tax increment.
   (d) Commencing with the 31st fiscal year in which the agency
receives tax increments and continuing through the last fiscal year
in which the agency receives tax increments, a redevelopment agency
shall pay to the affected school and community college districts, in
addition to the amounts paid pursuant to subdivisions (b) and (c), an
amount equal to 14 percent times the percentage share of total
property taxes collected that are allocated to each affected school
or community college district, including any amount allocated to each
district pursuant to Sections 97.03 and 97.035 of the Revenue and
Taxation Code times the total of the second adjusted tax increments
received by the agency after the amount required to be deposited in
the Low and Moderate Income Housing Fund has been deducted. The
second adjusted tax increments received by the agency shall be
calculated by applying the tax rate against the amount of assessed
value by which the current year assessed value exceeds the second
adjusted base year assessed value. The second adjusted base year
assessed value is the assessed value of the project area in the 30th
fiscal year in which the agency receives tax increments.
   (e) (1) The Legislature finds and declares both of the following:
   (A) The payments made pursuant to this section are necessary in
order to alleviate the financial burden and detriment that affected
school and community college districts may incur as a result of the
adoption of a redevelopment plan, and payments made pursuant to this
section will benefit redevelopment project areas.
   (B) The payments made pursuant to this section are the exclusive
payments that are required to be made by a redevelopment agency to
affected school and community college districts during the term of a
redevelopment plan.
   (2) Notwithstanding any other provision of law, a redevelopment
agency shall not be required, either directly or indirectly, as a
measure to mitigate a significant environmental effect or as part of
any settlement agreement or judgment brought in any action to contest
the validity of a redevelopment plan pursuant to Section 33501, to
make any other payments to affected school or community college
districts, or to pay for public facilities that will be owned or
leased to an affected school or community college district.
   (f) As used in this section, a "local education agency" includes a
school district, a community college district, or a county office of
education.
  SEC. 418.  Section 33607.5 of the Health and Safety Code is amended
to read:
   33607.5.  (a) (1) This section shall apply to each redevelopment
project area that, pursuant to a redevelopment plan which contains
the provisions required by Section 33670, is either: (A) adopted on
or after January 1, 1994, including later amendments to these
redevelopment plans; or (B) adopted prior to January 1, 1994, but
amended, after January 1, 1994, to include new territory. For plans
amended after January 1, 1994, only the tax increments from territory
added by the amendment shall be subject to this section. All the
amounts calculated pursuant to this section shall be calculated after
the amount required to be deposited in the Low and Moderate Income
Housing Fund pursuant to Sections 33334.2, 33334.3, and 33334.6 has
been deducted from the total amount of tax increment funds received
by the agency in the applicable fiscal year.
   (2) The payments made pursuant to this section shall be in
addition to any amounts the affected taxing entities receive pursuant
to subdivision (a) of Section 33670. The payments made pursuant to
this section to the affected taxing entities, including the
community, shall be allocated among the affected taxing entities,
including the community if the community elects to receive payments,
in proportion to the percentage share of property taxes each affected
taxing entity, including the community, receives during the fiscal
year the funds are allocated, which percentage share shall be
determined without regard to any amounts allocated to a city, a city
and county, or a county pursuant to Sections 97.68 and 97.70 of the
Revenue and Taxation Code, and without regard to any allocation
reductions to a city, a city and county, a county, a special
district, or a redevelopment agency pursuant to Sections 97.71,
97.72, and 97.73 of the Revenue and Taxation Code and Section
33681.12. The agency shall reduce its payments pursuant to this
section to an affected taxing entity by any amount the agency has
paid, directly or indirectly, pursuant to Section 33445, 33445.5,
33445.6, 33446, or any other provision of law other than this section
for, or in connection with, a public facility owned or leased by
that affected taxing agency, except: (A)  any amounts the agency has
paid directly or indirectly pursuant to an agreement with a taxing
entity adopted prior to January 1, 1994; or (B)  any amounts that are
unrelated to the specific project area or amendment governed by this
section. The reduction in a payment by an agency to a school
district, community college district, or county office of education,
or for special education, shall be subtracted only from the amount
that otherwise would be available for use by those entities for
educational facilities pursuant to paragraph (4). If the amount of
the reduction exceeds the amount that otherwise would have been
available for use for educational facilities in any one year, the
agency shall reduce its payment in more than one year.
   (3) If an agency reduces its payment to a school district,
community college district, or county office of education, or for
special education, the agency shall do all of the following:
   (A) Determine the amount of the total payment that would have been
made without the reduction.
   (B) Determine the amount of the total payment without the
reduction which: (i) would have been considered property taxes; and
(ii) would have been available to be used for educational facilities
pursuant to paragraph (4).
   (C) Reduce the amount available to be used for educational
facilities.
   (D) Send the payment to the school district, community college
district, or county office of education, or for special education,
with a statement that the payment is being reduced and including the
calculation required by this subdivision showing the amount to be
considered property taxes and the amount, if any, available for
educational facilities.
   (4) (A) Except as specified in subparagraph (E), of the total
amount paid each year pursuant to this section to school districts,
43.3 percent shall be considered to be property taxes for the
purposes of paragraph (1) of subdivision (h) of Section 42238 of the
Education Code, as it read on January 1, 2013, and paragraph (1) of
subdivision (i) of Section 42238.02 of the Education Code, and 56.7
percent shall not be considered to be property taxes for the purposes
of that section and shall be available to be used for educational
facilities, including, in the case of amounts paid during the 2011-12
fiscal year through the 2015-16 fiscal year, inclusive, land
acquisition, facility construction, reconstruction, remodeling,
maintenance, or deferred maintenance.
   (B) Except as specified in subparagraph (E), of the total amount
paid each year pursuant to this section to community college
districts, 47.5 percent shall be considered to be property taxes for
the purposes of Section 84751 of the Education Code, and 52.5 percent
shall not be considered to be property taxes for the purposes of
that section and shall be available to be used for educational
facilities, including, in the case of amounts paid during the 2011-12
fiscal year through the 2015-16 fiscal year, inclusive, land
acquisition, facility construction, reconstruction, remodeling,
maintenance, or deferred maintenance.
   (C) Except as specified in subparagraph (E), of the total amount
paid each year pursuant to this section to county offices of
education, 19 percent shall be considered to be property taxes for
the purposes of Section 2558 of the Education Code, as it read on
January 1, 2013, and Section 2574 of the Education Code, and 81
percent shall not be considered to be property taxes for the purposes
of that section and shall be
           available to be used for educational facilities,
including, in the case of amounts paid during the 2011-12 fiscal year
through the 2015-16 fiscal year, inclusive, land acquisition,
facility construction, reconstruction, remodeling, maintenance, or
deferred maintenance.
   (D) Except as specified in subparagraph (E), of the total amount
paid each year pursuant to this section for special education, 19
percent shall be considered to be property taxes for the purposes of
Section 56712 of the Education Code, and 81 percent shall not be
considered to be property taxes for the purposes of that section and
shall be available to be used for education facilities, including, in
the case of amounts paid during the 2011-12 fiscal year through the
2015-16 fiscal year, inclusive, land acquisition, facility
construction, reconstruction, remodeling, maintenance, or deferred
maintenance.
   (E) If, pursuant to paragraphs (2) and (3), an agency reduces its
payments to an educational entity, the calculation made by the agency
pursuant to paragraph (3) shall determine the amount considered to
be property taxes and the amount available to be used for educational
facilities in the year the reduction was made.
   (5) Local education agencies that use funds received pursuant to
this section for school facilities shall spend these funds at schools
that are: (A) within the project area, (B) attended by students from
the project area, (C) attended by students generated by projects
that are assisted directly by the redevelopment agency, or (D)
determined by the governing board of a local education agency to be
of benefit to the project area.
   (b) Commencing with the first fiscal year in which the agency
receives tax increments and continuing through the last fiscal year
in which the agency receives tax increments, a redevelopment agency
shall pay to the affected taxing entities, including the community if
the community elects to receive a payment, an amount equal to 25
percent of the tax increments received by the agency after the amount
required to be deposited in the Low and Moderate Income Housing Fund
has been deducted. In any fiscal year in which the agency receives
tax increments, the community that has adopted the redevelopment
project area may elect to receive the amount authorized by this
paragraph.
   (c) Commencing with the 11th fiscal year in which the agency
receives tax increments and continuing through the last fiscal year
in which the agency receives tax increments, a redevelopment agency
shall pay to the affected taxing entities, other than the community
which has adopted the project, in addition to the amounts paid
pursuant to subdivision (b) and after deducting the amount allocated
to the Low and Moderate Income Housing Fund, an amount equal to 21
percent of the portion of tax increments received by the agency,
which shall be calculated by applying the tax rate against the amount
of assessed value by which the current year assessed value exceeds
the first adjusted base year assessed value. The first adjusted base
year assessed value is the assessed value of the project area in the
10th fiscal year in which the agency receives tax increment revenues.

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

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

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

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

   (i) "City clerk" means the clerk of the governing body of a city
or city and county.
   (j) "Executive officer" means the executive officer of a local
agency formation commission.
   (k) "City" means any city whether general law or charter, except a
city and county.
   (l) "County" means any chartered or general law county. "County"
includes a city and county.
   (m) "Special district" means any agency of the state for the local
performance of governmental or proprietary functions within limited
boundaries. "Special district" includes a county service area, a
maintenance district or area, an improvement district or improvement
zone, or any other zone or area, formed for the purpose of
designating an area within which a property tax rate will be levied
to pay for a service or improvement benefiting that area. "Special
district" includes the Bay Area Air Quality Management District.
"Special district" does not include a city, a county, a school
district, or a community college district. "Special district" does
not include any agency that is not authorized by statute to levy a
property tax rate. However, any special district authorized to levy a
property tax by the statute under which the district was formed
shall be considered a special district. Additionally, a county free
library established pursuant to Article 1 (commencing with Section
19100) of Chapter 6 of Part 11 of Division 1 of Title 1 of the
Education Code, and for which a property tax was levied in the
1977-78 fiscal year, shall be considered a special district.
   (n) "Excess tax school entity" means an educational agency for
which the amount of the state funding entitlement determined under
Section 2575, 84750.5, or 84751 of the Education Code, as
appropriate, is zero, and as described in subdivision (o) of Section
42238.02 of the Education Code, as implemented by Section 42238.03 of
the Education Code.
  SEC. 421.  Section 196.4 of the Revenue and Taxation Code is
amended to read:
   196.4.  (a) In the 1991-92 fiscal year, the county auditor of an
eligible county, proclaimed by the Governor to be in a state of
disaster as a result of the Oakland/Berkeley Fire that occurred in
October 1991, shall certify to the Director of Finance an estimate of
the total amount of the reduction in property tax revenues on both
the regular secured roll and the supplemental roll for that fiscal
year resulting from the reassessment of eligible properties by the
county assessor pursuant to Section 170, except that the amount
certified shall not include any estimated property tax revenue
reductions to school districts (other than basic state aid school
districts), county offices of education, and community college
districts.
   (b) In the 1991-92 fiscal year, the county auditor of an eligible
county, proclaimed by the Governor to be in a state of disaster as a
result of the Painted Cave Fire that occurred in June 1990, shall
certify to the Director of Finance an estimate of the total amount of
the reduction in property tax revenues on both the regular secured
roll and the supplemental roll for the 1990-91 fiscal year resulting
from the reassessment of eligible properties by the county assessor
pursuant to Section 170, except that the amount certified shall not
include any estimated property tax revenue reductions to school
districts (other than basic aid school districts), county offices of
education, and community college districts.
   (c) For purposes of this section, "basic state aid school district"
means any school district that does not receive a state
apportionment pursuant to subdivision (h) of Section 42238 of the
Education Code, as it read on January 1, 2013, but receives from the
state only a basic apportionment pursuant to Section 6 of Article IX
of the California Constitution.
  SEC. 422.  Section 903.7 of the Welfare and Institutions Code is
amended to read:
   903.7.  (a) There is in the State Treasury the Foster Children and
Parent Training Fund. The moneys contained in the fund shall be used
exclusively for the purposes set forth in this section.
   (b) For each fiscal year beginning with the 1981-82 fiscal year,
except as provided in Sections 15200.1, 15200.2, 15200.3, 15200.8,
and 15200.81, and Section 17704 of the Family Code, the Department of
Child Support Services shall determine the amount equivalent to the
net state share of foster care collections attributable to the
enforcement of parental fiscal liability pursuant to Sections 903,
903.4, and 903.5. On July 1, 1982, and every three months thereafter,
the department shall notify the Chancellor of the Community
Colleges, the Department of Finance, and the Superintendent of Public
Instruction of the above-specified amount. The Department of Child
Support Services shall authorize the quarterly transfer of any
portion of this amount for any particular fiscal year exceeding three
million seven hundred fifty thousand dollars ($3,750,000) of the net
state share of foster care collections to the Treasurer for deposit
in the Foster Children and Parent Training Fund, except that,
commencing with the 2002-03 fiscal year, a total of not more than
three million dollars ($3,000,000) may be transferred to the fund in
any fiscal year.
   (c) (1) If sufficient moneys are available in the Foster Children
and Parent Training Fund, up to three million dollars ($3,000,000)
shall be allocated for the support of foster parent training programs
conducted in community colleges. The maximum amount authorized to be
allocated pursuant to this subdivision shall be adjusted annually by
a cost-of-living increase each year based on the percentage given to
discretionary education programs. Funds for the training program
shall be provided in a separate budget item in that portion of the
Budget Act pertaining to the Chancellor of the California Community
Colleges, to be deposited in a separate bank account by the
Chancellor of the California Community Colleges.
   (2) The chancellor shall use these funds exclusively for foster
parent training, as specified by the chancellor in consultation with
the California State Foster Parents Association and the State
Department of Social Services.
   (3) The plans for each foster parent training program shall
include the provision of training to facilitate the development of
foster family homes and small family homes to care for no more than
six children who have special mental, emotional, developmental, or
physical needs.
   (4) The State Department of Social Services shall facilitate the
participation of county welfare departments in the foster parent
training program. The California State Foster Parents Association, or
the local chapters thereof, and the State Department of Social
Services shall identify training participants and shall advise the
chancellor on the form, content, and methodology of the training
program. Funds shall be paid monthly to the foster parent training
program until the maximum amount of funds authorized to be expended
for that program is expended. No more than 10 percent or seventy-five
thousand dollars ($75,000) of these moneys, whichever is greater,
shall be used for administrative purposes; of the 10 percent or
seventy-five thousand dollars ($75,000), no more than ten thousand
dollars ($10,000) shall be expended to reimburse the State Department
of Social Services for its services pursuant to this paragraph.
   (d) (1) The Controller shall transfer moneys from the Foster
Children and Parent Training Fund to the Chancellor of the California
Community Colleges and the Superintendent of Public Instruction as
necessary to fulfill the requirements of subdivision (c).
   (2) After the maximum amount authorized in any fiscal year has
been transferred to the Chancellor of the California Community
Colleges and the Superintendent of Public Instruction, the Controller
shall transfer any remaining funds to the General Fund for
expenditure for any public purpose.
   (e) This section shall be operative until June 30, 2005, and
thereafter is operative only if specified in the annual Budget Act or
in another statute.
  SEC. 423.  (a) The sum of one billion six hundred thirty million
two hundred twenty-two thousand dollars ($1,630,222,000) is hereby
appropriated from the General Fund to the Superintendent of Public
Instruction.
   (b) (1) Of the amount appropriated in subdivision (a), one billion
six hundred two million two hundred one thousand dollars
($1,602,201,000) shall be allocated pursuant to the calculation in
subdivision (b) of Section 42238.03 of the Education Code.
   (2) Of the amount appropriated in subdivision (a), twenty-eight
million twenty-one thousand dollars ($28,021,000) shall be allocated
pursuant to the calculation in subdivision (d) of Section 2575.
   (c) For purposes of making the computations required by Section 8
of Article XVI of the California Constitution, the appropriations
made by subdivision (a) shall be deemed to be "General Fund revenues
appropriated for school districts," as defined in subdivision (c) of
Section 41202 of the Education Code, for the 2013-14 fiscal year, and
included within the "total allocations to school districts and
community college districts from General Fund proceeds of taxes
appropriated pursuant to Article XIII B," as defined in subdivision
(e) of Section 41202, for the 2013-14 fiscal year.
  SEC. 424.  If the Commission on State Mandates determines that this
act contains costs mandated by the state, reimbursement to local
agencies and school districts for those costs shall be made pursuant
to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of
the Government Code.
   SEC. 425.    This act is an urgency statute necessary
for the immediate preservation of the public peace, health, or
safety within the meaning of Article IV of the Constitution and shall
go into immediate effect. The facts constituting the necessity are:
 
   In order to more efficiently and equitably finance education at
the earliest possible time, it is necessary that this act take effect
immediately.