BILL NUMBER: AB 948	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 19, 2014
	AMENDED IN ASSEMBLY  MAY 24, 2013
	AMENDED IN ASSEMBLY  MAY 7, 2013

INTRODUCED BY   Assembly Member Olsen
    (   Principal coauthor:   Senator 
 Galgiani   ) 

                        FEBRUARY 22, 2013

   An act to amend Section 47614.5 of the Education Code, relating to
charter schools.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 948, as amended, Olsen. Charter schools: school facilities:
Charter School Facility Grant Program.
   Existing law requires the  State Department of Education
  California School Finance Authority  to
administer the Charter School Facility Grant  Program,
  Program and  provides that the grant program is
intended to provide assistance with facilities rent and lease costs
for pupils in charter  schools, and states the intent of the
Legislature that not less than $18,000,000 annually be appropriated
for purposes of the grant program. Existing law requires, subject to
the annual Budget Act, eligible schools to receive an amount up to
$750 per unit of average daily attendance, as specified, to provide
an amount of up to, but not more than, 75% of the annual facilities
rent and lease costs for the charter school.   schools.
 Existing law requires the  department,  
authority,  among other requirements, to inform charter schools
of the grant program and to determine grant program eligibility based
on specified factors, including, among other factors, a charter
school's preference in admissions, the geographic location of the
charter schoolsite, and pupil eligibility for free and reduced-price
meals, as specified.  Existing law prohibits funds
appropriated for purposes of the grant program from being apportioned
for units of average daily attendance generated through
nonclassroom-based instruction, as defined, requires that funds
appropriated for purposes of the grant program be used for costs
associated with facilities rents and leases, and requires an existing
charter school that is relocating to give an admissions preference
to pupils who reside in the elementary attendance area into which the
charter school is relocating in specified circumstances. 
   This bill would require eligibility for the grant program to be
expanded, as specified, if funds remain after charter schools that
meet the existing free and reduced-price meals threshold are funded.
 The bill would repeal the Legislature's statement of intent
that not less than $18,000,000 annually be appropriated for purposes
of the grant program.  The bill would provide that, with
respect to this  grant  program, charter schools would be
subject to the provision that generally imposes the requirement of an
annual audit on local educational agencies.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

   SECTION 1.    Section 47614.5 of the  
Education Code   is amended to read: 
   47614.5.  (a) The Charter School Facility Grant Program is hereby
established,  and, commencing with the 2013-14 fiscal year,
  and  shall be administered by the California
School Finance Authority. The grant program is intended to provide
assistance with facilities rent and lease costs for pupils in charter
schools.
   (b) Subject to the annual Budget Act, eligible  charter 
schools shall receive an amount of up to, but not more than, seven
hundred fifty dollars ($750) per unit of average daily attendance, as
certified at the second principal apportionment, to provide an
amount of up to, but not more than, 75 percent of the annual
facilities rent and lease costs for the charter school. In any fiscal
year, if the funds appropriated for  the  purposes
of this section by the annual Budget Act are insufficient to 
fully  fund the approved amounts  fully,  
amounts,  the California School Finance Authority shall
apportion the available funds on a pro rata basis.
   (c) For purposes of this section, the California School Finance
Authority shall do all of the following:
   (1) Inform charter schools of the grant program.
   (2) Upon application by a charter school, determine eligibility,
based on the geographic location of the charter schoolsite, pupil
eligibility for free or reduced-price meals, and a preference in
admissions, as appropriate. Eligibility for funding shall not be
limited to the grade level or levels served by the school whose
attendance area is used to determine eligibility.  Charter
schoolsite are   A charter schoolsite is  eligible
for funding pursuant to this section if the charter schoolsite meets
either of the following conditions:
   (A) The charter schoolsite is physically located in the attendance
area of a public elementary school in which 70 percent or more of
the pupil enrollment is eligible for free or reduced-price meals and
the  charter  schoolsite gives a preference in admissions to
pupils who are currently enrolled in that public elementary school
and to pupils who reside in the elementary school attendance area
where the charter schoolsite is located.
   (B) Seventy percent or more of the pupil enrollment at the charter
schoolsite is eligible for free or reduced-price meals. 
   (C) In any year in which additional funds remain after state and
federal funds have been allocated to applicants that meet the
eligibility criteria in subparagraph (A) or (B), the California
School Finance Authority shall expand eligibility to additional
charter schools that are eligible pursuant to subparagraph (B) by
reducing the free and reduced-price meals threshold one percentage
point at a time, but in no case below 60 percent.
   (3) Inform charter schools of their grant eligibility.
   (4)  Commencing with the 2013-14 fiscal year, make
  Make  apportionments to a charter school for
eligible expenditures according to the following schedule:
   (A) An initial apportionment by August 31 of each fiscal year or
30 days after enactment of the annual Budget Act, whichever is later,
provided the charter school has submitted a timely application for
funding, as determined by the California School Finance Authority.
The initial apportionment shall be 50 percent of the  charter
 school's estimated annual entitlement as determined by this
section.
   (B) A second apportionment by March 1 of each fiscal year. This
apportionment shall be 75 percent of the charter school's estimated
annual entitlement, as adjusted for any revisions in cost,
enrollment, and other data relevant to computing the charter school's
annual entitlement, less any funding already apportioned to the
charter school.
   (C) A third apportionment within 30 days of the end of each fiscal
year or 30 days after receiving the data and documentation needed to
compute the charter school's total annual entitlement, whichever is
later. This apportionment shall be the charter school's total annual
entitlement less any funding already apportioned to the charter
school.
   (D) Notwithstanding subparagraph (A), the initial apportionment in
the 2013-14 fiscal year shall be made by October 15, 2013, or 105
days after enactment of the Budget Act of 2013, whichever is later.
   (d) For  the  purposes of this section:
   (1) The California School Finance Authority shall use prior year
data on pupil eligibility for free or reduced-price meals for the
charter schoolsite and prior year rent or lease costs provided by
charter schools to determine eligibility for the grant program until
current year data and actual rent or lease costs become known or
until June 30 of each fiscal year.
   (2) If prior year rent or lease costs are unavailable, and the
current year lease and rent costs are not immediately available, the
California School Finance Authority shall use rent or lease cost
estimates provided by the charter school.
   (3) The California School Finance Authority shall verify that the
grant amount awarded to each charter school is consistent with
eligibility requirements as specified in this section and in
regulations adopted by the authority. If it is determined by the
California School Finance Authority that a charter school did not
receive the proper grant award amount, either the charter school
shall transfer funds back to the authority as necessary within 60
days of being notified by the authority, or the authority shall
provide an additional apportionment as necessary to the charter
school within 60 days of notifying the charter school, subject to the
availability of funds.
   (e) Funds appropriated for purposes of this section shall not be
apportioned for any of the following:
   (1) Units of average daily attendance generated through
nonclassroom-based instruction as defined by paragraph (2) of
subdivision  (d)   (e)  of Section 47612.5
or that does not comply with conditions or limitations set forth in
regulations adopted by the state board pursuant to this section.
   (2) Charter schools occupying existing school district or county
office of education facilities, except that charter schools shall be
eligible for the portions of their facilities that are not existing
school district or county office of education facilities.
   (3) Charter schools receiving reasonably equivalent facilities
from their chartering authorities pursuant to Section 47614, except
that charter schools shall be eligible for the portions of their
facilities that are not reasonably equivalent facilities received
from their chartering authorities.
   (f) Funds appropriated for purposes of this section shall be used
for costs associated with facilities rents and leases, consistent
with the definitions used in the California School Accounting Manual
or regulations adopted by the California School Finance Authority.
These funds also may be used for costs, including, but not limited
to, costs associated with remodeling buildings, deferred maintenance,
initially installing or extending service systems and other built-in
equipment, and improving sites.
   (g) If an existing charter school located in an elementary
attendance area in which less than 50 percent of pupil enrollment is
eligible for free or reduced-price meals relocates to an attendance
area identified in paragraph (2) of subdivision (c), admissions
preference shall be given to pupils who reside in the elementary
school attendance area into which the charter school is relocating.
   (h) The California School Finance Authority annually shall report
to the department and the Director of Finance, and post information
on its Internet Web site, regarding the use of funds that have been
made available during the fiscal year to each charter school pursuant
to the grant program.
   (i) The California School Finance  Authority, commencing
with the 2013-14 fiscal year,   Authority  shall
annually allocate the facilities grants to eligible charter schools
according to the schedule in paragraph (4) of subdivision (c) for the
current school year rent and lease costs. However, the California
School Finance Authority shall first use the funding appropriated for
this program to reimburse eligible charter schools for unreimbursed
rent or lease costs for the prior school year.
   (j) It is the intent of the Legislature that the funding level for
the Charter School Facility Grant Program for the 2012-13 fiscal
year be considered the base level of funding for subsequent fiscal
years.
   (k) The Controller shall include instructions appropriate to the
enforcement of this section in the audit guide required by
subdivision (a) of Section 14502.1.
   (l) The California School Finance Authority, effective with the
2013-14 fiscal year, shall be considered the senior creditor for
purposes of satisfying audit findings pursuant to the audit
instructions to be developed pursuant to subdivision (k).
   (m) The California School Finance Authority may adopt regulations
to implement this section. Any regulations adopted pursuant to this
section may be adopted as emergency regulations in accordance with
the Administrative Procedure Act (Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of the Title 2 of the
Government Code). The adoption of these regulations shall be deemed
to be an emergency and necessary for the immediate preservation of
the public peace, health and safety, or general welfare. 
   (n) Notwithstanding any other law, a charter school shall be
subject, with regard to this section, to audit conducted pursuant to
Section 41020.  
  SECTION 1.    Section 47614.5 of the Education
Code is amended to read:
   47614.5.  (a) The Charter School Facility Grant Program is hereby
established, and shall be administered by the department. The grant
program is intended to provide assistance with facilities rent and
lease costs for pupils in charter schools.
   (b) Subject to the annual Budget Act, eligible schools shall
receive an amount of up to, but not more than, seven hundred fifty
dollars ($750) per unit of average daily attendance, as certified at
the second principal apportionment, to provide an amount of up to,
but not more than, 75 percent of the annual facilities rent and lease
costs for the charter school. In any fiscal year, if the funds
appropriated for the purposes of this section by the annual Budget
Act are insufficient to fully fund the approved amounts, the
Superintendent shall apportion the available funds on a pro rata
basis.
   (c) For purposes of this section, the department shall do all of
the following:
   (1) Inform charter schools of the grant program.
   (2) Upon application by a charter school, determine eligibility,
based on the geographic location of the charter schoolsite, pupil
eligibility for free or reduced price meals, and a preference in
admissions, as appropriate. Eligibility for funding shall not be
limited to the grade level or levels served by the school whose
attendance area is used to determine eligibility. Charter schoolsites
are eligible for funding pursuant to this section if the charter
schoolsite meets either of the following conditions:
   (A) The charter schoolsite is physically located in the attendance
area of a public elementary school in which 70 percent or more of
the pupil enrollment is eligible for free or reduced priced meals and
the schoolsite gives a preference in admissions to pupils who are
currently enrolled in that public elementary school and to pupils who
reside in the elementary school attendance area where the charter
schoolsite is located.
   (B) Seventy percent or more of the pupil enrollment at the charter
schoolsite is eligible for free or reduced price meals.
   (C) In any year in which additional funds remain after state and
federal funds have been allocated to applicants that meet the
eligibility criteria in subparagraph (A) or (B), the department shall
expand eligibility to additional schools that are eligible pursuant
to subparagraph (B) by reducing the free and reduced-price meals
threshold one percentage point at a time, but in no case below 60
percent.
   (3) Inform charter schools of their grant eligibility.
   (4) Allocate funding to charter schools for eligible expenditures
in a timely manner.
   (d) Funds appropriated for purposes of this section shall not be
apportioned for any of the following:
   (1) Units of average daily attendance generated through
nonclassroom-based instruction as defined by paragraph (2) of
subdivision (d) of Section 47612.5 or that does not comply with
conditions or limitations set forth in regulations adopted by the
state board pursuant to this section.
   (2) Charter schools occupying existing school district or county
office of education facilities.
   (3) Charter schools receiving reasonably equivalent facilities
from their chartering authority pursuant to Section 47614.
   (e) Funds appropriated for purposes of this section shall be used
for costs associated with facilities rents and leases, consistent
with the definitions used in the California School Accounting Manual.
These funds also may be used for costs, including, but not limited
to, costs associated with remodeling buildings, deferred maintenance,
initially installing or extending service systems and other built-in
equipment, and improving sites.
   (f) If an existing charter school located in an elementary
attendance area in which less than 50 percent of pupil enrollment is
eligible for free or reduced price meals relocates to an attendance
area identified in paragraph (2) of subdivision (c), admissions
preference shall be given to pupils who reside in the elementary
school attendance area into which the charter school is relocating.
   (g) The Superintendent annually shall report to the state board
regarding the use of funds that have been made available during the
fiscal year to each charter school pursuant to the grant program.
   (h) The Superintendent shall annually allocate the facilities
grants to eligible charter schools no later than October 1 of each
fiscal year or 90 days after enactment of the annual Budget Act,
whichever is later, for the current school year rent and lease costs.
However, the department shall first use the funding appropriated for
this program to reimburse eligible charter schools for unreimbursed
rent or lease costs for the prior school year.
   (i) Notwithstanding any other law, a charter school shall be
subject, with regard to this section, to audits conducted pursuant to
Section 41020.